download the xfinity stream app and watch all the shows you love. ♪ >> i'm taylor riggs where we are bringing you all the top stories from this we contact. china put some of its largest cities on lock over the coronavirus as global markets stumbled on the news. how investors are dealing with the uncertainty. plus a week -- the first earnings report and the first time google reported youtube and clout results. we will have details.

the ev makers tearing or 2020 despite a couple of tips. we will look at what's supercharging the stock up to this point. our top story about concerns over the coronavirus and dominated headlines as the death toll continues to rise. residents in the chinese city of wuhan have been quarantined in some flights in and out of the country have been suspended. this week saw the return of risk appetite. rebounded as investors so the global economy will be able to within the impact from the virus. the s&p back to record highs. amazon closed above the $1 trillion market cap for the first time joining the 13 digit class with shares surging. colleague were joined by michael of tal back capital.

>> there is no question the underlying trends of momentum for risk assets has been very strong. just to put some context on it. only a few months ago back in september women the bond market. sort of signaling a recession was coming in 2020. even though the bond market is clearly been very supported of this concept of a recession era post a masterly and further economic contraction overseas. you can check a lot of the list on boxes right now for sure and the fed has been there, the liquidity as many people have commented on. wanting -- the resilience of this rally is very strong. >> if anyone's own volatility it is you. what you make -- what do you make of it down from an 18 handle just yesterday. >> i think it's very flat.

we are not seeing given how strong the lift higher today, you might have expected to see a bigger contraction there. i think looking out into the future, the vix is at -- has a few things on its mind. one of which is the coronavirus news flow will ebb and flow. there is aso a view looming political risk as some of your colleagues were commenting on. what's coming out of iowa and so forth it's very hard to contextualize and price that risk. certainly that is coming. the other issue the vix market may be focusing on is the 3250 level on the s&p is interesting because that's a point where a lot of the investment banks have -- you might call it gamma pivot. if the market were to plunge many level there. so right now the market has been

very resilient here. majorea about seeing some real-life problems taking up here in the near term is going to be different it feels a lot different than january of 2018 in that respect. volatility,bject of we did equities selling off heavily with the markets reopening. but now offshore investors absolutely piling in buying those. this crisis isn't over yet. >> it is funny. my way of comparing these types -- the coronavirus, what it means for the market is a little bit similar to natural disasters that are very large scale or for that matter terrorist events. headlinese's a lot of

, a lot of fears about how that's going to impact the economy in the markets. what you've seen if you measure the stock market reaction to terrorist attack for example. it becomes increasingly resilient and increasingly capable of throwing the software we haven't had -- throwing us off. there is an analog their for viral outbreaks. there is a reasoned case you think we might. if so in the markets looking at this is a deferment of growth as opposed to anything that's really going to be permanently impairing economic growth. that seems to be what the narrative is, i have my own near-term concerns about the market but they probably have to do with the coronavirus. >> i will get you to expand on those. >> it is simply -- it is very simple. if you look at the trajectory of

the tech stocks, not just sow my's but the big cap text stocks. -- text oxford those have been leading and defining the rally. i've been structurally bullish on it for lots of reasons, but andt now given the strength in the rally that we had, i think physically they are overextended and some form of consolidation is inevitable. i was waiting for the big cap earnings to come in. i didn't expect them to be bad and nor did i think they would good, get it, they are these companies continue to generate very high quality. but that would be a trigger to start taking some gains here. corona wased just as sort of unfolding and so it's a little bit hard to measure. i would argue even if corona never happened that they would start being -- upward momentum

in the tech shares was really going to continue to fade. if you look at various technical signals on tech shares you will see a lot of the upper momentum is going. my question is do we have a horizontal consolidation or more of a vertical are price based consolidation over the next several weeks. toneed to -- the market need process those and adjust them. ,aylor: you talk about vertical a stock it's gone from parabolic vertical is tesla. we will talk about that in the next segment. from your position, do you by the underlying, do you put -- stay out of it because it's gone from parabolic to vertical. >> it has been unbelievable. the puts are very expensive. think the call skew inverted

on tesla just very rarely. we are richer than -- on aiming is everything shorting test. it was -- and i think some of your colleagues have commented on tesla and some of the dynamics and some of the options. i would say this. i think one of the things about tesla that i find intriguing is it is both sort of this technology component to it clearly and yet it is also a new fashion industrial company. when you have those business models that have some aspects of transformational nature, the ability for the cost of that capital seems to be mispriced is

very high. you are simply dealing with a different type of return on investment than say facebook or google or some of these other established tech giants are dealing with. so i think that is going to be one of these things where they are twice the market cap of general motors, ford and so forth. i can't help but wonder whether they will pull and aol time warner, the company with the richly priced stock at some point. flowshas established cash in 100 years of history. who knows. thesis the tesla short is one of those things where it is the ultimate investment stock so you have to be extraordinarily disciplined with shorting it even with all the good fundamental checks you can make our set. that was michael purves.

coming up we dive into the tech earnings, aspect shares wiped out their best gains from july after the company operating profits missed wall street estimates. we break down the numbers next. if you like bloomberg news, check us out on the radio. you can listen on the bloomberg gap, bloomberg.com and on sirius xm. this is bloomberg. ♪

>> tech earnings continued this week with alphabet kicking off the auction on monday. revenue from the key holiday quarter missed wall street estimates, suggesting the company's advertising business is struggling to maintain growth in the face of rising competition. we broke down the numbers with bloomberg technology's mark bergen. someone was like it the best call ever and these are

monumental disclosures justify their opening up with transparency. cfowe saw a lot from the and the ceo about cloud business in the optimism there and it grew 50%, last year they said this is largely the cloud storage with can sleep -- competes with aws. you saw a little enthusiasm for you to. they talked about growth -- youtube. they talked of the growth in markets as well as digital advertising and monetizing ways with subscriptions. you to add numbers fell below estimates. taylor: we got some comments from the ceo on youtube's growth. >> you may have seen a blog post about our work to remove misleading information about the upcoming 2020 elections. for example we are applying a informationsleading

about locations of the cents pass. we are pleased with youtube's growth in advertising and subscriptions. big as we youtube as thought it was? >> depends on where you were. there were some estimates that ad revenue, that -- the numbers they disclose were for advertising and they talk about a run rate for the subscription around 3 billion for 2019 ands earlier estimates had at much higher optimistic in the business was worth 300 billion bring those numbers are not there. the growth rate and certainly you talk a lot about how they have this big market with advertising and i think to his point there they still up to figure out on both regulation to make advertisers cost -- comfortable. taylor: that was mark bergen.

in the meantime, qualcomm came in with a strong sales forecast beating estimates. that is thanks to its belief in 5g network. the ceo says the first quarter will be flat. we discussed all of this with bloomberg technology's ian king. >> we had a nice report everything was up and positive. got on the call with the cfo and says we are not too sure about the third-quarter, that will be flat. really if you look to the what the analysts are expecting they weren't expect them to be linear throughout the rest of this year wasclearly that expectation confounded in the stock went down quickly. >> we were speaking with mike in the last hour. i was asking him about that. the third-quarter is flat relative to the second quarter. does the fourth quarter pick up enough to reverse some of the annual sales declines we've

seen? he seemed to think it was enough but is there some concern about getting that type of growth that the analysts are looking for. >> you've got the right context. we haven't had any growth, they have had several quarters where they haven't had any growth. when is this going to finally pay off. why don't we go see the old qualcomm come back. anything that causes a little bit of a concern about that is a major, you press a lot of the buttons the people been worried about for a while. when we see some new phones out there. some people start to get excited. price prior equity appears to be around 40%. when you consider 5g will be long-term growth for qualcomm, is this just a time to get along and hold on? >> are not in the business of giving investment advice but you

make a good point. tech companies in general have had a huge run up in their stocks. we have seen a lot of companies, trading at pretty high multiples. coming out ande reporting you better be saying something that at least meets expectations if you want to justify that. that was bloomberg technology's ian king. we also got reaction from my quality, the managing director -- >> i think the key take away from the call is how 5g will be benefit -- beneficial to qualcomm's model. for the march quarter guidance or their q2 guidance, the going into these 5g phones, that's going up 30% sequentially which is one of the biggest jumps we've seen in covering qualcomm.

stocks off a little bit in the aftermarket because the june quarter guidance was flat with march but if you look at the cadence of the smartphone market and the timing of qualcomm's second-generation modem, that starts shipping late in the june quarter. it indicates the expected another big step in the function revenue starting in the september quarter. >> so does the pickup in their fourth quarter even though the third-quarter is flat enough to take us out of what has been five straight years of negative sales growth? >> yes, i think you start to see positive sales growth. largeg driver, apple is a part of the smartphone market right behind samsung in terms of one of the leading smartphone vendors in terms of volume. qualcomm used a ship from them and they moved intel and that her qualcomm possibility to grow. now that it's moving back to

apple, that will return to growth. should see year over to your growth for qualcomm. even that flat june quarter begins much stronger and they hinted at a very strong fiscal 21 sues you go to the december quarter and beyond which is a full volume of apple you will see very strong re-acceleration of qualcomm's year-over-year growth. taylor: the earnings parade continues after the break with fourth-quarter results from uber. how the ride pricing and company's food delivery business are affecting the bottom line. twitter listss surprising results. this is bloomberg. ♪ ♪

taylor: it was a better-than-expected quarter for twitter. it beat estimates for revenue and the number of you new daily users. now has 152 million people logging in daily. that is 21% more than a year ago. i got details with the twitter cfo. pleased with our daily active user growth that we deliver this quarter. 21% growth means we are making it easier for people to find the things they are for. we are allowing them to follow topics, not just accounts. you don't know how asked you don't have to know who you want to follow, you want to know you want to follow the 49ers and then we do the work for you. there is so much more for us to improve on but we have 1700 topics to follow in about six languages of the end of the corridor. it's a great example of the work we've done but they're so much

more as well. taylor: what is been the biggest challenge by some of those product improvements? years,ou go back a few we were not good at moving fast and having the confidence to try new things, there were more sacred cows around the product and there are today. we are much more comfortable moving faster and trying things whether it's allowing people to move back and forth between a chronological and an algorithmic timeline or these changes we made to allow people to follow topics just getting better and moving faster. taylor: there was some concern getting alpha but -- alphabet and facebook, power you still getting the type of ad growth numbers you want to see? >> launching new products and services and connecting with what's happening are really resonating with advertisers. whether it's disney plus launching on twitter in the fourth quarter which we were so proud to be a part of their launch. there were 9 million tweets

about disney plus in the fourth quarter where people were talking about forming opinion about engaging around a new and really strategic service for an important partner for us. or the super bowl on sunday where 40 of 41 eligible advertisers who had ads on during the super bowl were also advertising on twitter at the same time. launching new products, connecting with what's happening. those resonated in the united states. taylor: within the ad business you are not participating in political ads but want to see engagement from that. how much incremental growth can we see given this is an election year even though you're not participating in political ads? time forons are great twitter and it's always an election year on twitter. 600 million people voting india last year. there were nationwide elections in japan multiple times in the u.k., many other places in the world. we are able to test and learn and apply those to other parts of the world all the time. we label the candidates so you

know who is tweeting, we are removing more suspicious behavior proactively. by standard reports found 27% when you do these things and organize these then people can trust what they see. they are a -- and improve audience. taylor: they said they are finally getting the type of investment they want to see that maybe you had underinvested, some of those under investments last quarter that led to personal data being used to target the ads. are you confident that is fixed and does it have an impact going forward? >> we have added settings that are not working as expected and we fixed it quickly. and announced it to people so they knew what had happened and then worked to remediate it. the remediation takes a few different forms. one is we shift in the fourth quarter, the share aggregated data with partners. but as we move past that, there

things much more important. one is continuing our work on a new mobile application promotion which is important because is an existing format but it's also important because it gives us a better path to more direct response advertising. second is to help people understand the benefits of a more personalized experience on twitter. we appropriately balanced our own principles and data privacy giving aparency with timeline quickly and a great experience on twitter over time. we think there is an opportunity for us to get more personalized experiences for people on twitter. taylor: your second straight year of turning a profit, are you planning any application acquisitions? >> we did eight acquisitions in 2019. we knew it is important for us to find great teams who can help accelerate our and bring to the company the retention of these teams for the last couple of years has been incredibly high. we hope we can do more of those

and we are always thoughtful about where we can acquire to help us accelerate our objectives. taylor: jack dorsey has been talking about going to africa to do some work over there. are you the fact of ceo? >> there is no change in how we lead. our team is distributed around the country and world as we go out to work with our teams, speak with our partners, meet with stakeholders to execute the business. jack visited 30 of our offices last year. a bunch of us went on parts of that and so leading in a decentralized way is essential to us achieving our objectives and shouldn't be anything different for us. that was twitter cfo ned siegel. , -- bought out uber's business in southeast asia. we will hear from their president in an exclusive interview next. bloomberg technology is livestreaming on twitter, check

us out. be sure to follow our global breaking news network on twitter. this is bloomberg. ♪

♪ taylor: welcome back to the "best of bloomberg: technology." i'm taylor riggs in for emily chang. becoming a southeast asian super app is what grab wants with services ranging from ride-hailing to fintech. they acquired uber's business there in 2018 and have raised billions of dollars in funding from heavy hitters such as softbank and toyota. we spoke with grab president ming maa about the firm's expansion plan. ming: we are closely monitoring the situation.

it is a situation that is evolving, it seems, hour-by-hour. for us, unlike greater china, which has seen the brunt of the outbreak, southeast asia has been largely untouched by the outbreak. having said that, safety is of primary importance. we are working with the government and regulators to prepare contingency plans in the event we need to take action, so everything from contact tracing to notify the government of actions between drivers and passengers, to preparing enough facemasks for our population. taylor: i want to speak to the fundamentals of the business over there. you are trying to become a super app. what sort of opportunities do you see in that market? ming: thank you for the question. 2019 has been an amazing year for us. region's largest

super app. last year alone, we launched nine new services from on-demand video. today, we are the largest ridesharing platform. we have launched the first micro insurance products. the first numberless credit card. we launched the first bid for our partners. 2019 was a very, very busy year for us. in 2020, we were very focused on two priorities. the first is continuing our profitable growth we have seen in our core businesses. secondly, continuing to broaden out the portfolio products we offer in financial services. as a business, we are already profitable in some of our most mature verticals. the key is to continue pushing profitability and we do that through our platform.

the way that we think about restaurant partners is as an end to end partner. we are providing solutions and financing, advertising to help reach customers, and that engagement model is how we drive loyalty and engagement on our platform. >> i want to get more details on your plans and financial services. you are applying for one of singapore's digital banking licenses. but what's next? are you looking at applying for licenses in malaysia and indonesia as well? ming: first of all, it's important to understand the context. the first seven years of our company was about following the gap in transportation. we speak to the customers, you realize there is a large gap in wealth management and the ability to retire.

our customers work hard but many struggle to save for a comfortable retirement. so our acquisition was about reinventing wealth management, democratizing personal savings to the point where accessibility and affordability is no longer restricted to just the very wealthy. we think it is a large market opportunity. consumers in southeast asia hold over $2 trillion in investable assets. the challenge is, over 60% of that loses value over time because of inflation. we see the wealth management opportunity as an opportunity to create new products that are better than just keeping assets in cash, but this is a very similar opportunity. when you talk to our customers,

over 40% are unhappy with their current banking partners. weather it is very expensive , we want to fees make banking as simple as ordering a ride. we are very happy with our partners. between the two of us, our ecosystems, we have touched every consumer, every enterprise in the nation and we are confident we can develop the lowest-cost platform. taylor: that was grab president ming maa. uber has tackled regulatory agencies around the globe and faced criticism over its uber about its ability to turn a profit. we spoke to mike walsh shortly

after the company released fourth-quarter earnings on thursday. >> i am impressed by the fact that they are able to grow the numbers. one thing that was great to see if that they are closing businesses or selling businesses that are not number one or two in the industry. they are eliminating expenses while maintaining equity. taylor: they are also looking for full-year profitability by 2021. that is ahead of target. how much is the market demanding that? >> i think dara was under pressure and committed he was planning to get to profitability quickly. i think he has a great team behind him that has been able to meet those objectives. >> you were talking about growth targets a minute ago. are there limits to growth?

we have heard coming up in the call the law of large numbers. does that suggest uber is getting toward the ceiling of ride numbers. >> they still have a huge potential for market share. the numbers are still only 30% of internet users. they have got huge global potential for rides. >> you mentioned uber has been selling some parts of the business. we have just heard from the cfo, saying that they would lean in to an opportunity to take a bigger position in the market. does that suggest they are looking for things to buy? >> what i heard was that the company is going to double down in markets where they could be number one or two.

taylor: that was the structure capital managing partner mike walsh. later, we tell you more about the company that beat uber in china and the woman who spearheaded the world's second most valuable startup. and this week, we got the first real look at how disney's new streaming service is faring. we bring you the numbers next. this is bloomberg. ♪

taylor: we got our first indication of how disney's new

streaming service is faring on tuesday. subscribers of disney+ soared to 26.5 million, topping estimates and signaling a fast start as they challenge netflix. we spoke with lucas shaw in los angeles. lucas: they updated the numbers for the different disney streaming services this quarter, something netflix does not do. you know they have 28 million customers, espn has seven, hulu grew by the smallest amount. disney in just one year has become the second biggest player in tv streaming after netflix. you'd say amazon is bigger because of the number of prime customers, but netflix is still far and away the biggest. but disney has impressive viewership based on the data bob

popularity about the about different shows people were watching. >> how about the costs? it is expensive to make this wonderful new content. >> no question, it is a major investment. the losses from the direct to consumer unit rose north of $600 million in losses. but that is to be expected. i don't know that investors are going to be too worried about that. this is the game netflix has been playing for a long time. the bet is that this will work. one reason disney moved into streaming was because it needed to show investors that it had a growth opportunity. cable tv had been such a growth engine for this company and it needed to direct investors to a new area. the direct consumer business

to 4from 900 million billion. that is just staggering growth, almost as much as netflix grew overall. that is something bob iger can point to and say, this is the future. we don't know if it will be profitable. i think investors will give them a pass in the short term. taylor: wall street watchers have been scratching their heads over tesla shares. they closed at a high of $887 before pulling back later in the week. a portfolio manager told bloomberg this week that the recent run-up is inexplicable. >> everybody has a pain threshold. when a stock becomes unmoored

because of dynamic growth aspects, you just have to walk away. taylor: we also discussed recent moves with an analyst. investors might be worried about coronavirus. that is a short-term focus. researcht our latest on tesla. our expected value of the stock is 7000. it is the future of the auto market. what we have seen over the last year is traditional autos have struggled to produce ev on par with tesla scars and they are really just running away from the competition. >> 7000, that's a very impressive prediction and a long way from where we are now. does tesla really have that much

of a head start? >> in electric vehicles, they are the leader. they are riding down the battery cost decline curve. we have done a lot of work to predict the future declines of batteries. for every cumulative double in production, you get a corresponding reduction in cost. growth margins could go from 20% today to up to 40% and a best case scenario. they also have not lost share in the electric vehicle market. they are sitting around an 18% share. we think they are at least three years ahead of other automakers. that is dollar per range that you get out of the car. they are the only automaker collecting data from their vehicle and this gives them a massive advantage. taylor: besides the advantage,

how do you get to a fair value of $7,000 in the next few years? how do you get that share value number? >> we have devised a probability matrix. this is all on our website. we have looked at the past year and seeing what tesla has done in shanghai. they have knelt a factory in less than a year and they are now shipping cars. tesla has shown they can scale in a capital-efficient manner. we have set probabilities to each of those that help us arrive at that $7,000 mark. our bull case is really driven by autonomous driving. this will transform if they pull it off. this could be a huge opportunity for tesla that is totally going to be worth trillions of dollars globally. taylor: steve eisman told us the

stock is no longer trading on a valuation. he had to walk away from his short positions. what do you do with a stock like tesla when it no longer trades on valuation? >> tesla has been misinterpreted for a long time. we are only hearing this story in terms of what people are talking about for tesla. you can't valuate like a traditional automaker because the future of the auto industry is changing. electric vehicles will make this a more consolidated market. a lot of automakers will go out of business. tesla is in a position to take advantage and be the leader of the future. that means software-like multiples because they are getting software like margins off of that business. coming up, one of the

most powerful women in tech. how jean liu led didi chuxing to victory in china. we will have more. this is bloomberg. ♪

taylor: with a valuation over $50 billion, didi chuxing is one of the most high-profile companies in china. the president helped to drive uber out of china. we take a look at how their leader became successful in a country where women are not always seen. >> jean is the president of didi chuxing, a ride-hailing service completing up to 30 million rides per day, that is about 10 million more rides per day than uber. they are the most -- second-most

valuable startup. the valuation has been called into question following uber's disastrous ipo. they are said to be trading privately 40% lower than their peak. investors are starting to doubt if these companies can ever turn a profit. this is how jean liu took on uber and made them one of the most profitable companies in china. she was born into a prominent family in beijing in 1978. her father is a chinese tech icon, the founder of lenovo. >> part of her personality comes from the fact that her father is one of the most famous people in china and she has been trying to make a name for herself. >> she majored in computer science at harvard and spent 12 years managing investments at goldman sachs. a july of 2014, she joined two-year-old startup aiming to end china's traffic problems.

>> she came to my office and said she wanted to resign. i asked her why. she said, i can't work here if i get pregnant. the commute is killing me. she was spending three hours switching between buses and subways everyday. there are many like that in china. 800 million chinese who ride 1.4 billion times every day. >> she brought her financial expertise to the company and raised billions to compete against its largest local rival. she later brokered a merger with them. months after the completion of the deal, she was diagnosed with breast cancer. she survived and returned to work to face one of the biggest battles of her career. didi was facing uber, which was already big in the u.s. and starting to expand globally.

>> the money they brought in was bigger than our market cap. we were scared for a moment and there was this big decision. >> didi did not give in. fought an e company all-out battle against uber. they bought out drivers in an attempt to crush one another. gaining market share turned into a question of having money to burn. >> first of all, we worked really hard. we slept in the office and we rolled out for product lines. secondly, if we think we understand the market more. >> for example, many of china's cities restrict the use of cars to reduce pollution, so she focused on taxi hailing. they also had the support of china's two mobile paying giants. they helped smooth transactions

and help subsidize drivers. a year later, they both realized they had to stop the costly war and concentrate on building the business. in august 2016, they received billions in funding from apple, a deal largely brokered by jean liu. uber also acquired a small stake .n didi since then, they have started to dominate the domestic market. >> she was instrumental in brokering the apple deal. when she met tim cook, she was saying that didi's logo is an orange and apple being another fruit company, they were bound to do great things. 22 days later, they announced apple was investing billions into didi. >> they soon began competing globally in australia and japan.

they now complete an average of 4 million rides per day outside of china. they have also handled proxy operations for uber with grab and lyft. >> didi and uber have an interesting relationship. after the merger, they did have this short period of truth and were observers on each other's boards. that has come to a halt. didi did form strategic alliances with grab, lyft, but it has not been working as closely as people envisioned. , didi haske uber visions beyond ride-hailing. they are venturing into on-demand food delivery, bike sharing, city solutions, driverless cars, and the lucrative business she helped build. but those may be kept in check by year-long company overhauls triggered by the alleged murder of two female passengers.

the company's safety record was thrown into the spotlight as thousands of users publicly deleted the app. regulators cracked down on the drivers and cars allowed. >> [speaking mandarin] >> it was a huge setback for didi. they had to halt the carpooling service. it was very lucrative for the company, and after that, they went into a series of events. trying to step up security measures. they finally resumed the service last year. >> despite new success with the company, helping it grow to a massive start up with 13,000 staff, there are questions about the business. investors are doubting they could ever turn a profit.

they face stringent regulatory crackdowns and competition from regional operators, even after muscling uber out of china. the outbreak of the coronavirus could also dampen prospects as the government has imposed travel restrictions. >> it is another make or break year for didi. a lot of her legacy depends on whether she can prove didi can be profitable in the long run. taylor: that does it for this edition of the "best of bloomberg: technology." we will bring you all of the latest in tech throughout the week. tune in each day 5 p.m. new york, 2:00 p.m. in san francisco. and we are livestreaming on twitter. check us out @technology and follow our global breaking news network. this is bloomberg. ♪

♪ carol: welcome to "bloomberg businessweek." jason: we are bloomberg headquarters in new york. carol: this week, caucus chaos at thechnical glitch iowa primary. jason: and the unprecedented travel ban to and from the world's second-largest economy.