bloomberg editor at large cory johnson caught up with reinke signage and ask him about that decision and its associated cost figure. >> we built about 100 and $75 million -- $175 million in synergies into this deal. we were going to move our autonomous driving resources to israel where mobileye is centered. there is a lot of overlap between the two companies, and that will bring those synergies to that $175 million over time. cory: there was a lot of options trading in the days before this deal was announced, and i should say purchase of calls. expectations the stock was going to go higher and really soon. it seemed to be near record levels for mobileye. i wonder how long you have been working on this deal and if this concerns you at all? >> we have been working on this deal for a while, but we take a

bloomberg editor at large cory johnson joins us with more context. it seems to be on a knife edge. at happened? cory: the twins have been trying etf.eate this new eps -- it would give a lot more people access to trade this thing and put more money potentially into trading it but it would also put money into their pockets. of thending on the size offering and the change over time, they would have been able to go into the bitcoin market and acquire actual bitcoin as a backstop to the proxy. bitcoin trades around the clock and sold off at crazy. they are off about 23%. it was crazy trading, very actively trading. when it turned around, it is down by about 8% now. a big surprise for the bitcoin community. caroline: that shows what it has done anyone your basis. -- in a one-year basis. how much euphoria was bit into this asset about the etf? not so much about a fundamental belief in the value in terms of the data they are trading, it is very volatile. it is not a very deep market. when you blow through a couple of dollars in the market, you see the price drop a lot because that are for s

that wascaroline: james and our editor at large cory johnson.own and upstart restaurants getting in on the action. we have more on this story. reporter: the automation wave has arrived. mcdonald's is the latest fast food company to take advantage. the burger chain has begun ordering mobile payments. it says all this 14,000 national restaurants will be equipped to handle mobile preorders later this year. the creator of the big mac is a bit late to the party. other fast food chains have already adopted this technology to boost sales. dominoes, for example, is a leader here. at for the last five years, company has been emphasizing all the ways you can humanpizza with minimum contact. it has more ordering methods with facebook and twitter, complete with emojis. and since the end of 2008 when , itso's was threatened share price has increased 60 fold. it is now worth $9 billion. starbucks also an early adopter with mobile pay technology. however the company may be a victim of its own success. who order drinks and food on their phones are, in some case

cory johnson caught up with the c.e.o.nd asked why he is shelling out so much money for self-driving car technology now. >> we think combining allows us to have a singular platform for customers. but more importantly, if you look at where driverless is the car manufacturers are working on 2021 models. you have to build your platform today to be there in 2021 when the models will start hitting the road. cory: what has intel's approach been and how might that change? >> we are already in a large number of autonomous vehicles today. what this does is brings the best of both ends of the computing spectrum for driving together. think of it this way. the car will have two brains. one is a vision brand that will take the sensor fusion, the cameras and combine that and build a view of the world. there is another brain which is going to take that information and drive the car. this puts those brains together into one company and allows us to provide an intake platform for partners. cory: do you expect intel's other businesses to be

fitbit ceo james park and bloomberg's cory johnson.ing up will hear from one of the biggest players in online lending. ceo greg gibbs on his outlook for china and the tech industry. attentioning to your our interactive tv fun -- fortune. you can find it on tv go on the bloomberg are you -- you can watch his life and see interviews and dive into any securities or bloomberg functions we talk about. you can become part of the function -- conversation. send us messages. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪ caroline: greg gibbs, ceo, of one of the largest players of the online lending industry, says their company has benefited from regulation growing. >> the number of players in the industry, lease to talk about 2000, 3000. talking about 1000. the top 20 have got 50% of the market, the other 980 have the other 50%. we have seen in our case, our market share double roughly over the last year. facts this value at $18.5is valued million. goldman sachs upgraded the company to a buy from celebrati

caroline: that was fitbit ceo james park and bloomberg's cory johnson.on of out of this world, elon musk is no fan of the new federal law that authorizes $19.5 billion for nasa. president trump signed the bill and it included for the first time human exploration of mars, something musk has publicly championed. yet elon musk pointed out the law does not include additional funding for mars. he wrote "perhaps there will be some future bill that makes it different from ours, but this is not it." on monday, we hear from bill team. the nasa transition all episodes of bloomberg technology i live streaming on twitter. check us out at @bloombergtechtv. that is all for now. this is bloomberg. ♪ >> coming up, the stories that shaped the week in business around the world. a shocking attack rocks london. the health-care battle continues in washington. the u.k. and the european union set dates to deal with brexit, and the trump trade hits a speed bump. >> it is like someone flipped a switch that said hands off. >> explaining why he held out against a rate hike. >> the

was fitbit ceo james park and bloomberg's cory johnson.tion of out of this world, elon musk is no fan of the new federal law that authorizes 19 point $5 billion for nasa. president trump signed the bill and it included for the first time human exploration of mars, something elon musk has publicly champion, yet elon musk pointed out the law does not include additional funding from ours. bewrote "perhaps there will some future bill that makes it different from ours, but this is not it." on monday, we hear from bill knight on his recommendations to president trump's national transition team. 5:00 p.m. neway york, 2:00 p.m. in san francisco. all episodes of bloomberg technology are live streaming on twitter at @bloombergtechtv. that is all for now. this is bloomberg. ♪ carol: welcome to "bloomberg businessweek". i am carol massar. oliver: i am oliver renick. one day trader who loves wearing a wire for the fbi. creator hasert strange and controversial viewpoints. carol: the shockingly bad safety record for auto-parts makers in the south. oliver

cory johnson recently spoke with the doppler labs ceo.d not say we are trying to solve a problem. we are trying to give people superhuman hearing, giving people the ability to hear the world, so you hear what you want to hear and don't hear what you don't want to hear. cory: so they are not headphones. guest: definitely not. they do stream music, but basically there was a predecessor product for this, and all it did was allow you to augment the outside world. in cnas?nd of like tri ten cans? 1 guest: i would say more like spectacles. we believe the future of computing will happen on the body. everybody is making bets on the eyes and wrists, and we need to bet on the ears. we believe putting a computer system in your e will be the will be -- in your ear the future of how we interact with technology. if you're just saying, hey, order me an uber, or hey, i want to go to dinner with you -- it's a more natural way to compute. and we see that happening with alexa and google play. guest: absolutely. google has seen some criticism from the likes

cory johnson joins us now to break it all down. signaling thes fourth quarter. ry: they are burning money like crazy, burning to hundreds of millions, nearly a billion in the last quarter. and he is buying a little bit of stock. he sold stock last year, so he is trading his own stock and that is an interesting thing. $1.2 billion is not a lot for a company that burned about $160 million last quarter. they have announced capital expenditure plans before july to spend another $2 billion and that is to get them to there. it is not a lot of money for a company that does not need a lot of money. and they might have to come back again. caroline: but the share price on the back of it, trading up 2%, what is the relief? that it is being announced and probably smaller? cory: it is a lifeline for a company that has enormous challenges ahead of it and needs money to get going. have at that they quarter, that is good, that is a start. they have a lot of what to do. and a lot of money they will need to spend. it looks like the results that we saw in the previous quarter, the

five years ago, cory johnson took a walk with the then private startup ceo james park. llion products so later, the two took another walk on the streets of san francisco. cory: when we talked five years ago, you said we are software guys making hardware. james: when we started, we did not think about the challenges we would encounter. we just went ahead and did it. we are really software guys. cory: five years later, james park is sticking to that claim, even though it is the companies hardware. james: two thirds of our engineers are hardware engineers, but it is about the combination of the two working well together that creates the magic. i don't think we can quickly classify ourselves as a hardware or software company. cory: hypergrowth might be hard to manage, but growing sales more slowly is difficult. james: we had a rocket ship of a company for quite some time. as you pointed out, we shipped our first product in 2009, about 5000 units. last year, we shipped over 20 million, so we have been stretched for growth, so now we are moving to a different environment, so i

caroline: fitbit ceo james park and bloomberg's cory johnson.g up, we will hear from one of the biggest players in online lending. ceo greg gibbs on his outlook for china and the tech industry. fintech industry. tv esting function, on the bloomberg. you can watch his life and see interviews and dive into any securities or bloomberg functions we talk about. you can become part of the conversation by sending us instant messages during the show. this is for bloomberg subscribers only am afraid. check it out at tv . this is bloomberg. ♪ caroline: greg gibbs, ceo of one of the largest players of the online lending industry, says the company has benefited from the decrease in peer-to-peer bands in china. >> the number of players in the industry, we used to talk about 2000, 3000. now we are talking about 1000. out of that thousand, the top 20 have got 50% of the market, the other 980 have the other 50%. we have seen in our case, our market share double roughly over the last year. caroline: lufax is valued at $18.5 million. eeye jumped after gol

joining us, cory johnson, and still with us, david kirkpatrick, tech economy ceo. y, to you first. how they are filtering these basically no eggheads , anymore is the idea. cory: i think the idea is there are people out there who send nasty things to people they don't know and, for whatever lack of bravery they exhibit in real life, they are quite brave online, saying horrible things to people. and it is a function of anyone who is on twitter. the more big you are on twitter, the more likely you are to encounter these trolls, and the company has not done enough to stop it. obviously they have had these tools at their disposal and chosen not to use them in the past. they have decided they can't put up with it anymore. caroline: david, too little, too late? david: i don't think it is too little, too late, but if mean tweets have become an entertainment feature on television, they have a problem to solve. i'm am really pleased to see them taking this step. i do think it is not irrelevant that mark centerburg put out zuckerberg put out that idealistic statement about al

mark: great chat there, cory johnson. a look at european equities.r days of gains in what is a massive week for central banks around the globe. bloomberg markets continues. this is bloomberg. ♪ from bloomberg in washington dc, i am david gura. politicso bloomberg with a focus on politics and policy during president trump's first 100 days in office. hate -- a rate hike in president trump is ready to unveil his first budget. we speak with former federal -- federal vice chair. and then fired by the trump administration before for and mr.'s and for refusing to hand in his resignation. coming up, my conversation with a former director into the caa -- ca -- into the caa. president trump held a listening session on health care white house. lawmakers

joining us is bloomberg editor at-large cory johnson. .oday is all about demand about trying to grabthe tail. the revenue growth of snap has been interesting and strong. the user engagement is very impressive. you know, these crazy kids. consumer facing businesses, tech businesses, do ipo's, generate all of this -- the notion of having all of these people were there spending tons of time sharing lots of snap's is cool. is it cool, i don't know, yet. vonnie: spending tons of time and not spending tons of money. popularity of something so fleeting as a 10 second photograph would seem to suggest their appetites are very short-lived? richard: there is an old joke in the oil and gas industry of a guy drilling a well saying it will never get any better than this. snap is not generating its revenues from users. it is not growing users like it used to. they can start to read accelerate growth. snap is a camera company, but snap is a chat company, not about cameras. .he possibilities are endless the proof of what they have done -- is allt is not about what they could do for the future. the bu

caroline: that was cory johnson, speaking with intel's ceo. cory joins us now for more, along with navigation expert who has worked in location technology for over 20 years. you're quite the man to have. cory, let's kick off with you. they admitted they can grow this internally. cory: it sounds like they felt the product cycle would take them too long. he is really remaking intel into a different company and he recognizes pcs aren't at the center of everything anymore. it's all got to go back to the data center anyway, and they significantly left room for qualcomm. i think they really don't want that to happen in the car market. the question is are the margins going to be there? right now, for mobileye, they have small sales with good margins and free cash flow, but can that business be as profitable as it was for intel and the pc data center? caroline: mark, the premium is pretty hefty. the -- does it indicate premium when you are looking at what mobileye is building? the roadside experience management centers -- is this where it is at? >> tha

-- weked to cory johnson talked to cory johnson and alex. alex, i will start with you.y a few analyst with have gone out on a limb. investors are snapping up snap, but analysts are a bit lukewarm, if you look alex: at the analyst community, what i remember, this is anyone who was not an underwriter and there is a lot of talk about short-term euphoria. in the long term, there are these concerns we have been talking about around user growth, profitability, and morenuing to wean out engagement -- glean out more engagement out of the investor base here. vonnie: snap is still losing money for every person who comes online and start to use it. a businesst develop model that will make the money? cory: the comparisons of twitter and facebook are overwrought. there is a similarity, and that is to the fundamentals of the business model. need to add daily active users and add -- and charge more to advertisers for those users. those are the two streams of revenue. they have to keep more people on a charge more for them. their inability to charge users is the most worrisome thing ab

cory johnson to break it's all down. must've been putting his own cash at stake. >> their burning money like crazy. they are blowing through hundreds of millions of dollars is buyingteresting he a little here. he sold a bunch of stock last year so trading his own stock is an interesting thing. billion is not a lot 40 -- they announced expenditure plans before july. another $2 billion. that is to gets them to there. this is not a lot of money that a company that does not need a lots of money. they might have to come back again. corey: share price rises on the back of it about 2%. what do you think is the relief that they are finally being announced in some sort of way. all are than many -- a lifeline to a company that has enormous financial challenges ahead of it and needs money to keep going. it is a start but they have a lot of work to do. work -- aa lot to lots of money to have to spend. note phone number one of paying suppliers and stretching out payments as long as possible. they cannot pull that trick too many times

. ♪ cory: i'm cory johnson. this is "bloomberg technology."oming up, we go live to las vegas, nevada for the ibm internet conference. we talk about everything from the cloud to ibm's partnership with wanda. marc benioff says the window for acquisition is posing. firstll uber's board travis kalanick to resign? first, let's turn to the market selloff for u.s. equities. it biggest slide since october. let's bring in stocks reporter abigail doolittle. a big fella today. cap down -- a big selloff today. tech down 1.5%. reporter: indeed. it was a pretty bad selloff for major averages today. a dayw down the most from standpoint, the worst selloff since the beginning of september. some are saying this is a reversal of the reflation trade. now is the worst sector for the major averages, including the nasdaq. tech was down about 1.5% on the day, but relative to financials, not down as much. what really stands out about the nasdaq having a hit today is when we take a look at the today chart of the nasdaq, yesterday the tech heavy index put in an all-time

with me in san francisco, cory johnson.ing to battle it out and see what the views are from james. $25 price tag. you say there is substantial execution risk but are prepared to give the benefit of the doubt at this stage. what are you giving the benefit of the doubt? what numbers do you need to see to substantiate this valuation? >> you need to see a steep trajectory in the revenue curve. threet boils down to is things. one is innovation on the camera. we have not seen that much innovation since the invention of the digital camera in 1975 aside from pixel quality. as they push on the hardware side and software side, i think they will be in a position where they can take over the camera app on your phone. the money, the holy grail, will come from premium content deals where they curate that an offer a differentiated mobile, optimized experience. with all the competing platforms, it is plug and play. i think if you have a mobile optimized and differentiated one, you can separate yourself from the pack. lastly, it boils down

joining us now to discuss the ins and outs of snap is cory johnson from san francisco. short interest building? i'm looking at the analyst recommendations. there are five on the bloomberg. none are buyers yet. cory: i think the analyst recommendations don't matter a lot. there are 26 investment banks on this deal. many will likely write research about snapchat. they are prohibited for 40 days. i expect they will come up with bullish arguments for the stock. caroline: potentially there are not only bullish hopes for where the share price goes, but when you pour over the ipo perspectives as you have, there are some weeds to be pulling out. cory: i don't mean to suggest is short a stock because the company has problems or because of valuation. this valuation does not make sense based on the existing business. people like the stock at 20 times. it does not mean it will go down because it is expensive. it is important to understand the underlying characteristics of how the business works. it is about how many users they have and how fast they can grow that user base while the

. ♪ cory: i'm cory johnson. this is "bloomberg technology."esla gets a boost of cash after the chinese internet giant tencent buys a stake in tesla. uber in the spotlight again, with their first diversity reports. first to our lead. a cash boost for tesla. tencent spot a 5% stake in the -- bought a 5% stake in the company. as part of a round of investment the company announced they were going to borrow, raise debt and -- "tencent and tesla have no detailed cooperation plan than a moment. but maybe in the future depending on how the ties develop." earlier losses about 3%. kevin carter joining me. tencent is about 8% of that etf. kevin, you can practice because -- what is tencent thinking at only a 5% stake? guest: they look for the fastest-growing companies and make an investment. they have a far ranging portfolio. they have invested in lyft and ai companies. they are charting their plan to take advantage of this connected, electric vehicles in the future. baidu and alibaba have been investing heavily. are slated to have a connected car in the

caroline: that was cory johnson speaking with oracle c.e.o. mark barton. -- mark hurd.robots are slowly taking over the additional workforce. we will bring you a surprising company aiming to make robots more human friendly. a feature we would like to bring to your attention, our interactive tv function. you will not only be able to watch us live, but also see previous interviews and dive into of the functions we talk about. you can become part of the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪ caroline: when you think of autodesk, you probably think of desktop software and traditional manufacturing. companies are diving into creating smart robots by developing peripheral vision systems and software which allow robots to work closely with humans. alex webb has the story for us. >> it is frustrating sometimes to hear this rhetoric about bringing jobs back to the united states. those jobs are still here in the united states that they are being done by robots, not humans.

bloombergs cory johnson, fantastic analysis.ile, jitendra waral, check them out on the terminal. now, a story we are watching. itr want to reintroduce driving cars in california legally this time. uber's pilot program was pull up the street in san francisco. it failed to properly register with the state department. uber wants to play by the rules this time after expanding its program from pittsburgh to tempe, to arizona last week. coming up, we speak to the first snap investor. that was jeremy liew on what made invest on snap and his complicated relationship with the company's founders. that is next. we have been hearing from a variety of voices on snap's trading debut. to numerousm farley investors throughout the day as well. another voice, sean, who thinks while snap will continue to lead in trends, copycats. check it out. this is bloomberg. >> snap is the innovator. they are coming out with the newest technology that is being copied. we believe snapchat, as phones become more center oriented and more 3-d oriented, it will be

scarlet: bloomberg editor at large cory johnson speaking.what you need to know to gear up for next week. ♪ scarlet: u.s. stocks not moving a lot for the week. s&p 500 is higher. coming up, secretary of state rex tillerson heads to beijing to meet with chinese officials. trade and north korea on the to do list. joe: monday, the house intelligence committee on russian interference in the election. james comey and the nsa chief has been asked to testify. and luminarysales data on durable goods. joe: we just had a fed decision and more fed decision stuff. janet yellen, charlie evans, and the onlyri, dissenter on the fed will be joining the team of daybreak alisa: i am alisa parenti and you are watching "bloomberg technology." president trump welcomed german chancellor angela merkel to the white house today. it is the first meeting between the world leaders after trump won the election. michael's high-profile visit comes at a crucial time for u.s. /german relations. they held a joint news conference after the meeting. house leaders are planning t

joining us to break down the numbers is bloomberg editor at large cory johnson. quite remarkable. profit and cash flow for the first quarter. cory: pretty positive quarter for this company. stocks responding in kind. the sck price is at an all-time high for this company. it is a richly priced stock trading at 45 times earnings. twice its earnings growth rate. they keep raising and beating, and that is the name of the game on wall street. an interesting change for this company. they were early on at getting rid of the software approach, going to downloadable software with regular payments under -- from their users, and it is working. caroline: the shift to the cloud paid off. it's interesting that have also announced partnerships, like azure.crosoft as year -- they are getting a few more competitors as they expand. cory: there is an interesting australian competitor. on the creative side, the creative business is not only growing, it is becoming a bigger percent of revenues. if you go back six or eight quarters ago, it was only 8% of revenues -- it was 48 percent of revenues, now i

cory johnson, bloomberg news, editor at large. has been considered one of the most vocal analysts on wall street. we hear from mike mayo in his first tv experienced since departing from the company. ♪ >> he has been considered one of the most vocal analysts on wall street but this week, mike mayo is one of several u.s. based employees can't in the equity research unit. earlier, the self-described free agent analyst spoke with in hisrg's vonnie quinn first tv appearance since his dismissal. mike: i am proud to be the only analyst to testify before congress for sarbanes-oxley in 2002. if you play ball with corporate management and get all sorts of perks, and if you are aggressive with management, you get whacked upside the head. 15 years later, things haven't changed too much. things change is as much as they stay the same. having said that, i've had enough experience that i'm able ande a bit more aggressive still be able to do my job. a lot of times when you talk to management, you do much better research. in a way, the lack of acc

let's bring in cory johnson from san francisco. this is three straight quarters of revenue gains.he most interesting things about the conference call will be the discussion that we would not imagined a few years back, that is amazon web services making serious inroads and lowering a lot of oracle employees. they say we just pick up the phone and take orders. it will be interesting to hear the commentary about how they are keeping customers and oracle seeing double-digit growth. tesla,at's talk about which just announced another capital rate. how often do they do this, a couple of times a year? ory: if you lose a billion dollars a quarter in cash flow you have to come back and raise a billion dollars to tread water. they announced big plans and be over $2expenditures of billion by the end of the second quarter and they need a lot of money to do it. look at the cash flow burn. solarcity is a pile of burning tires in terms of how much cash it burns. they would like to bring that with this business, they've got issues. they will have to raise a lot of money just to build a factory to

cory johnson is up early with the story, or is delaying his five-mile run today.l us about the price tag for mobileye. is that reasonable? cory: it is insane. this is a company with $350 million in revenues. paying $15 billion for it. it is a profitable company. it is no snapchat. but they are paying through the nose for this company because it is a leader in this emerging field of automated driving, self driving cars. sort of the fantasy this might lead to. when intel looks at this deal -- brian wrote an entry -- amino to the staff of intel. he said, this is going to be a $70 billion market, and we want to be a leader. but this thing is going out at 137 times earnings. it is a very high price tag for this company. but that is what intel thinks it has got to do to jumpstart their efforts here. interestingly, intel has a big automated driving business. and a software business and hardware business. they are moving the headquarters of that to israel, to mobileye. they are going to work with mobileye from mobileye headquarters. intel is not going to take over managem

we dove into it all with cory johnson and bloomberg intelligence. ndamentally for this company come of this process, to grow, it will have to be a better business. it is priced as if a lot of things will work. when i looked through the filings, statements, one of the rapidt issues was this decline in user growth. we discussed it a little bit. they have acquired a lot of users, rabid users. base isn't the user actually huge yet. it is half of twitter, fraction of facebook, but may be more importantly, the growth has slowed down dramatically. they had only 5 million users in the fourth quarter of last year. even the quarter before, the user growth was quite slow compared with historical numbers. the few quarters before, there was an acceleration, then the growth rate fellow dramatically, and it coincides exactly with the launch of instagram stories, and that is the most disconcerting thing. despite the cool filters and other things that snapchat has, instagram is eating their lunch when it comes to storytelling on the mobile app, and you can see it i t

cory johnson spoke with the developer who says he will employ the latest in snowmaking it rings therocess the science. >> the idea is the difference between a cook and a chef. given the same ingredients, the chef comes out with something you can charge $100 for, and that cook is putting out the same thing for $15. the ingredients will be the same , but the way you put them together and manage them means the difference between making great snow and just something that is quite. current technology and putting the art back into snowmaking so that we make a product that you really want to ski on as opposed to something that is just white. in theaving snowboard it east coast and west coast, the snow we have out here is a lot better, a lot different. what are you trying to create? >> you're trying to make a surface that doesn't make any noise. it feels and tastes like hacked powder to the skier. there's a certain density and consistency you can achieve using a little more energy and a little bit smarter technology. at the end of the day, you would like an experience were summoned goes skiing an

cory: this is "bloomberg technology," i'm cory johnson.tinue coverage of ibm's cloud focused event. they gathered in vegas. we heard from the ceo ginni rometty earlier this hour. caroline hyde is on the floor with more. caroline: i am, indeed. i spoke to a man passionate about the changes in the workplace with ai, but also concerned about the changes in the work place -- workplace with ai. we are talking about salesforce ceo marc benioff. >> what we have been able to do is find a way to work with both companies together. a great example if you probably know, crazy hailstorms we had last week -- we managed five of the top insurance companies in salesforce. those companies want to know when the hailstorm is about to happen. they want to notify those customers to put their cars in the garage. it will save them a lot of money. the combination of ibm and salesforce lets us do that, because watson will tell us what the weather is. we are able to notify customers to get the car into the garage. the rest is magic. caroline: you have a company that

. -- margin andion profit growth -->> cory johnson, editor at large, thank you for your opinion.g up, we tackle the biggest tech headlines of the week. ♪ ♪ >> wikileaks dropped another bombshell this week by publishing thousands of papers from the cia. an ability to is at into microsoft and others, relative newcomer on this story. plus they top tech headlines this week. >> wikileaks was also the source of some confusion, where they said you could hack into whatsapp. that was not content, it was in the data, what it did show us was that the cia has the ability to hack into virtually any consumer electronic device out there. whether it is any kind of phone, computer, even a samsung smart tv they can hack into it and listen to what is going on. >> you some people speak out with the likes of apple, google, you can see they have already sorted this out. google is wrestling with dealing with this. how has silicon valley responded to this? >> i do not think it is that shocking, if they can get into your phone you can understand what is happening. i think there was a lot of fear initiall

our bloomberg editor at large cory johnson.ares hitting a new record high, this after the company signal cloud-based services are taking up in earnings results. offsetting the in legacy software licenses. coming up, visas are in the spotlight as president trump tries to crack down on immigration. now a new study is not reporting that trump's claims hurt the american technology workforce. this is bloomberg. ♪ alisa: i am alisa parenti and you are watching "bloomberg technology" let's check "first word" news. i wish prime minister enda kenny is offering to help -- irish prime minister enda kenny is president thelp speaking at the u.s. capitol s-1 of eventsrump, celebrating st. patrick's day including a one-on-one meeting at the white house. officials in the southern france say a student opened fire at high school today, wounding 2 other students and the principal, who tried to intervene. prosecutors on vista getting a link after aek letter exploded at the imf office in paris. one person was wounded. the incident came one day afte

. ♪ cory: i am cory johnson. this is "bloomberg technology."oming up, snapchat wins on wall street but the real reason analysts are bullish. whatsapp creating a backdoor for intelligence officials. the new debate over privacy encryption. a self driving car accident grounds uber's autonomous cars. some are now back on the road. first, some investors had a rocky start for the failed health care vote on friday. we have abigail. there was a lot of pressure over the weekend. what do you see? abigail: the worst open for the s&p 500 for the year. the worst week for stocks last week. some bearishness. some expectations of seeing strong selling. we saw some recovery. the nasdaq slipping into the positive territory. at the end of the day, an unchanged close. the dow down eight days in a row, the longest bearish street steak since april 2011. still some bearishness there. as for the nasdaq and why the tech heavy index finished modestly higher, it largely came down to biotech. it was up more than 1% on the day being helped by big names. these stocks, compa

. ♪ anchor: i'm cory johnson. this is "bloomberg technology."esla gets a boost of cash after the chinese internet giant tencent by the state. uber in the spotlight again him at this time by their own choice, coming out with their first ever city reports. first to our lead. a cash boost for tesla. tencent spot a 5% stake in the company. as part of a round of investment the company announced they were going to borrow, but could there be a raised stake in the future? and tesla have no operation plans in the future, but that may change depending on how the ties develop. we start with you. what the heck is tencent thinking? only --they won't i what do they want out of a 5% stake? guest: they look for the fastest-growing companies and make an investment. they have a far ranging portfolio. they are really charting their plan to take ownership of this world of connected electric vehicles in the future. they are not the only players in china. bayou has been investing, so has alibaba. it doesn't come at all that much of a surprise. anchor: these are finan

snaps usere into andth is cory johnson another analyst. harnessed some of this analysis.ng they will be measured against as time goes forward. will bestthis country company to grow it has to be a better business. when i looked through the filings, one of the biggest issues was the rapid decline in user growth. we discussed it a little bit. there certainly acquired a lot of users. you can talk about the engagement and how much time users spend on the service. is size of the user base half of twitter's and a fraction of what facebook is looking at. more importantly, the growth has slowed down dramatically. only 5 million users added in the fourth quarter of last year. even the quarter be far -- before, the user growth was quite slow compared to historical numbers. before that there was an acceleration in growth rate here then enveloped her medically. it coincides with the launch of instagram stories. that is the most disconcerting things. the suggestion is that despite the really cool filters and other unique snapchat things, instagram is eating their lunch when it comes to

cory johnson joins us from san francisco with more.y see this as a growth company with lots of potential again? >> people have seen a lot of things that gopro hasn't been able to deliver. who knows if it will be different this time. they announced significant cost cuts and abandon a lot of the story that gopro came to the market with when they came to the -- with their ipo. it was going to be an entertainment company and that to shoot just a way video, but a way to own the video and the media. they pulled back on all of those efforts and another round of layoffs and cost cuts with the hope that the cost can get in line with the revenue. the problem is the revenue has been getting smaller and sales have been falling quarter after quarter. if you look at the revenue, we have a chart that shows revenue numbers. the revenue is substantial at $541 million. in terms of growth, it is disconcerting for the company, where the company has been shrinking massively from what it was with the hopes that the drone business could turn that around. tho

cory johnson caught up with brian krzanich and asked him about that decision and its associated coste. >> we built about $175 million in synergies into this deal. we were going to move our autonomous driving resources to israel where mobileye is centered. there is a lot of us g&a and are indeed was overlapped between the two companies. that will bring those synergies to that $175 million over time. cory: there was a lot of options trading in the days before this deal was announced, and i should say purchase of calls, expectations the stock was going to go higher and really soon. it seemed to be near record levels for mobileye. i wonder how long you have been working on this deal and if this concerns you at all? >> we have been working on this deal for a while, but we take a lot of care with the bankers we work with and the pr teams to keep this quiet. if you take a look, it has been pretty quiet relative to other deals out there, and so we were pretty comfortable with the level of secrecy we were able to keep until the last 12-24 hours. we took a look at what we were doing and what w

let's go to cory johnson. painful, painful.econd deadline in terms of the earnings report. it is an amazing story. it starts with stephen a screen -- steve mcqueen. ofplayed the true life story alvin, who had an electro power -- plant in georgia. acquired by toshiba a few years ago. with it, they acquired this problem. the problem was the way they reported it. the cost of the plant has toraled from $4.4 billion, $5.8 billion. they are building two reactors. the timeline is gone all the way to 2020. the accounting over this has apparently been screwed up somewhere along the way, whether intentional or not. they first announced the accounting problem about a year ago. stocks fell dramatically. as a result, toshiba is still trying to uncover what the problems are and how far back they go. they told us today they figured out the fourth quarter, but they don't know how it affects the previous three quarters. they have to go back and do that and they think it will take until april. caroline: quite amazing. meanwhile, they need to stu

i'm cory johnson. coming up, interest is after new ad revenue sources. drones are going industrial. on his speak to d.j.i. latest offerings. recent moves by the trump administration have e.u. privacy watchdog worried. a positive day for u.s. stocks. the nasdaq closing at a record high. abigail doolittle, what happened? funnily enough, it was a relatively quiet day. the major averages finishing up by .3%, but nevertheless we saw the nasdaq put in that record high. it traded up five days in a row. the small cap russell 2000 up six days in a row. so there is some bullishness. a five-day chart, we see that new record and what makes this worth noting is the fact it is the first record - close since march. 1. following the nasdaq 100 which put in a record close yesterday. cory: it's interesting because it seemed like the trump rally was showing signs of weakness. abigail: everybody was talkin about how it is -- the inflation is reversing. now we have forgotten about it. today, yes, we have these record highs. thed the record high for nasdaq, a mix bag of stocks including microsoft, wester