at dropbox headquarters in san francisco, 11:00 a.m. at the nasdaq where we are awaiting the stock to open in its first trade. "squawk alley" is live ♪ hey, you, get off of my cloud hey, you, ♪ ♪ get off of my cloud, hey, you get off of my cloud ♪ ♪ don't hang around ♪ the telephone is ringing i sa hi, wait to see who's ♪ ♪ on the line >>> good friday morning, welcome to "squawk alley." i'm here with michael santoli. deirdre is at the nasdaq covering dropbox's market debut and she's sitting down with see you drew houston in a couple minutes. let's get to bertha coombs who has news this hour bert bertha >> we have dropbox set to open, it could be another few minutes yet. goldman sachs, the lead underwriter, matching up the trades right now after pricing above the range of $21 a share, the indication for the opening trade somewhere in the range of maybe $27, $28 per share which would be a good 33% top above where they price as you can see, very busy here, the nasdaq has ramped up its ipos, becomes an event on the top floor so we'll watch

julie: dropbox in the u.s.as debuted in that stock started trading much higher, 45% higher on the nasdaq today. alex barinka spoke to drew houston about how the company is going to grow the paying subscriber base. the product we make is good as it can possibly be, so give them a good reason to buy dropbox. we look at that 11 million subscriber number and by any standard that the large number. at the same time, their hundreds of millions of people using dropbox and we're solving the universal need. we certainly see a lot of opportunity. we are not going to run out of people who need dropbox anytime soon. happy with that paying percentage? mr. houston: i was want to keep growing. we have 500 million registered users and there are one million office workers in the world. we are focused on how we reach more customers, how we make dropbox more useful, but it starts with building a great product. alex: who is the ideal dropbox customer? are you selling directly to the c-suite? i know you get a lot of paid users from

i think dropbox has proven mark, the adoption concern is going from if you es, and dropbox, look at theore business. ourselves, y like market.ussed on the s&p it's huge. >> what about apple. of apple and ipod as a bigger threat to the dropbox given it is consume erfocussed and it really dropbox's bread and butter. point you interesting make, it's a dark horse. 64% of americans has one apple device, and most have a built in i-cloud drive. if apple was serious about going functionality le of the cloud and add more of for, is le are looking could be a substantial threat. it remains to be seen what the will be.s >> as some someone in the do you think are the biggest challenges, what do you worry about when it comes to your own business given how much everyone is fighting for the even though it's expanding. > the biggest driver is the dropbox. thers prove that cloud reduces the friction. there's a bigger focus on privacy. opinion isty, and my it's not just relevant for for mer brands, it's true every tech company providing a solution. data. er to focus on and placed on security. providing gr

dropbox has proven that today.mily: so the question is, how many companies can really compete for the cloud? you have amazon, microsoft, google, box, dropbox. they are all fighting for different pieces of it. but do you think smaller companies like dropbox need to be worried? vineet: my opinion is everyone is playing for different parts of the cloud pie. you talked about amazon and google. they are more on the core infrastructure cycle unless the applications i. got box is focused -- application side. dropbox is focused on something else. is not a zero-sum game.the market is so large that you can create multibillion-dollar entities here. if you go back, it was not historical sap. emily: this is your business. is it helpful to be so optimistic? vineet: you have to be as an entrepreneur. but also, i think dropbox has proven today that in this market with the adoption curve, it is going from consumers to more businesses. if you look at the evaluation and the core business with consumers, whereas a company like ourselv

dropbox has more than 11 paid users. last year it grew by 25% it's down from 30% in 2016, it's still a strong number. the company's revenue has been rising albeit fairly slowly the keenum is if it can keep turning its free users into paying customers i think they can dropbox has gotten as large as it is mostly through word of mouth. imagine what they can do with nearly $1 billion in catch tosh invest in growing the business it needs to convert 2 to 4 million free customers into paying ones each year. that may sound like a lot, but they have 500 million free users so we're talking about less than 1% on top of that they've made some smart moves lately earlier this month dropbox announced a strategic partnership with salesforce.com. this integrates salesforce's software with dropbox's cloud collaboration. i'm a fan of dropbox and the company and the ceo drew ha houston. can i really recommend something that ran up 40% in its first moments of trading that's the question. what are we willing to pay for the stock of dropbox so

we took a look at dropbox and spotify's plans for public debuts, dropbox the traditional route and spotifyradition. for more on what to bring in caroline who is standing by with an early spotify investor for an insider take to the route towards an ipo. satline: it is the man who on the spotify board for years and made sure they were in the 08.ding round and 20 listing way of spotify? not need tooes raise money, it is a company with lots of cash, as you can read through the filing documents. they are a well-known brand. conventionalis a -- but serves the company's purposes. caroline: they are up against competitors like apple left phenomenal amounts of cash. surely they will tap the market, what else have to availability of going public at all? par-jorgen: it really starts with the relationship with the consumers that are using the product. spotify has -- since the launch in october of 2008, consistently one step ahead of the competition. they have been extremely good in delighting customers with products, suggestions, playlists, and to ration that is heads and shoulders above the others. w

only 11 million users pay at dropbox. completely laid it out, but it seems like those are the enterprise accounts. one of the big differences is that box has a concerted sales effort and dropbox doesn't. 90% of their revenue comes from self service and you sign up for the products you pay for. that's the difference. i know they are competing but it does seem he and his company have been focusing on large accounts while dropbox is pushing for the guerrilla approach, land and expand and get in with some teams internally have the big companies and try to figure out how to sell across the ustomer base from there. one of the big differences is that box has a concerted sales effort and dropbox doesn't. 90% of their revenue comes from self service and you sign up for the products you pay for. that's the difference. i know they are competing but it does seem he and his company have been focusing on large accounts while dropbox is pushing for the guerrilla approach, land and expand and get in with some teams internally have the bi

i know aaron is competing with through houston at dropbox -- houston at dropbox, but it does seem that he had his company have been focusing on the larger accounts, while dropbox is pushing the guerrilla approach, land and extent, get internallye teams and figure out how to sell across the customer base from there. keeping itbarinka, hot for us. now to another company going public, spotify. they plan to release shares on the near stock exchange the week of april 2. they will deviate from decades of common practice but not issuing any new shares in the ipo. instead, existing spotify stockholders will offer their shares to investors in a direct listing. here to discuss more on this workingavid, who has in in investment banking and m&a with a focus on tech companies for over 12 years. what do you make of spotify's decision on how to approach this? david: i think the physical goal was sticking their finger in the eye of wall street, doing something a little bit disruptive and unconventional. they did not need the money. emily: why do it at all? david: i think they had a clock ticking that

dropbox wants people to look at them like -- dropbox is closer to half that at this price.lks sees this -- see this as it has value, they might rotate into this. if you look at the history of first day of trading in ipo's, there's a lot of volume. typically the price tends to go up on some of these hotter stocks. emily: all right. alex: we will continue watching as it trades as a public company. emily: alex barinka. we will have full coverage of the dropbox ipo tomorrow on bloomberg television from the nasdaq. alreadyp, salesforce is a towering force when it comes to cloud computing, and it is looking to cement that stature with its latest acquisition. that's next. this is bloomberg. ♪ mark: i'm mark crumpton. you are watching "bloomberg technology." house speaker paul ryan is distancing himself from trump's congratulatory call to vladimir putin. >> he does everything he can to undermine democracies, not just hours, but all of our allies. i would not have kind words to say if i was speaking to him. mark: british prime minister theresa may called the attack on a former russi

up with dropbox financially.ad the ceo on the show last week. this was, of course one of , dropbox's biggest competitors. i asked him if he is concerned about dropbox. this is a company that's bringing in more money than box. take a listen to what he had to say. aaron dropbox's numbers are tale : of two types of companies. one is a consumer revenue business. that is about 60% or 70% of their revenue, and users are consumers like you and i using it for professional or personal use cases. and then about a third of the revenue is business-to-business. that's the only part of the business that looks anything like box. and that tilts towards small business or teams, where our revenue tilts towards midsize companies and large enterprises. emily: alex, would you agree with his take that they don't compete as much as we seem to think? alex: currently, that seems to the case. dropbox has 500 million registered users. only 11 million of those are paying. they have not completely laid it out, but it seems like those are goi

dropbox wants people to look at them like -- dropbox is closer to half that at this price.lks sees this as it has value, they might rotate into this. if you look at the history of first day of trading in ipo's, there's a lot of volume. typically the price tends to go up on some of these hotter stocks. emily: all right. alex: we will continue watching as it trades as a public company. emily: alex barinka. we will have full coverage of the dropbox ipo tomorrow on bloomberg television from the nasdaq. when it comes to cloud computing salesforce is already a towering , force. it is looking to cement of that stature with its latest acquisition. this is bloomberg. ♪ >> it is 11:29 a.m. in singapore. i am juliette saly with your first word news. electric vehicles have been making a clear-cut impact on oil use. china is the world's biggest user of crude. oil demand last year would have been 1.5% higher, how to not been for electric starters and cars. china subsidizes electric vehicles, to ease air pollution. a saudi energy minister told bloomberg the recovery in oil prices has not

only 11 million users pay at dropbox. completely laid it out, but it seems like those are the enterprise accounts. one of the big differences is that box has a concerted sales effort and dropbox doesn't. 90% of their revenue comes from self service and you sign up for the products you pay poor -- pay for. that's the difference. i know they are competing but it does seem he and his company have been focusing on large accounts while dropbox is pushing for the guerrilla approach, land and expand and get in with some teams internally have the big companies and try to figure out how to sell across the customer base from there. emily: thanks to bloomberg's alex barinka. spotify's public debut, they are bucking convention with a plan for a direct listing on the new york stock exchange. caroline hyde spoke with an early spotify investor in london. >> i think spotify doesn't really need to raise money. it's a company with lots of cash. they are also a very well-known brand. i think this is rather unconventional, but it really serv

their pocketbooks to pay dropbox.been using -- hearing from the investor community that there are questions how they increase the number. the other thing i'm sure investors will be asking management is about churn. they didn't disclose any information on the stickiness of their customers. , howuickly other leaving are they keeping customers around? that is something that the public market by side will definitely want to know a little bit more information on. vonnie: why is dropbox trying to go public now? alex: they have taken the last three years to cut costs and build their own data centers, to get cash flow positive. it seems like the company has had a reckoning, scaled back a little bit of the sprawling growth and focus their product and now they are taking this opportunity to raise capital and they are not the only ones. it's been a big start to the year for you as listings, january alone there was a billion dollars worth of new stocks sold in u.s. ipo's, that's the biggest month since alibaba sold $45 billion in

dropbox's scaled-back ambitions.s given a valuation well below the $10 billion it snagged in private fundraising. this is bloomberg. ♪ emily: the first major tech ipo of the year is upon us and we have more details surrounding dropbox's ipo. anywhere between $1.7 billion and 1.8 billion dollars. we have the details from alex barinka, who first broke the news of the plans. so, what happened today is dropbox told wall street that they are marketing 36 million shares for a range of $16 to $18 a share and are hoping to sell within that range. that implies the market cap of 25% below the $10 billion private valuation they clocked in the 2014 private funding round. why is this happening? what i have heard from a lot of people today is that dropbox raised money at a time when valuations are really high, perhaps a little too elevated in private funding rounds. now, if you look back over the last few years in terms of what they have done with our growing, revenue was which is what0%, investors want to see. fear, fear ofmo mis

at dropbox headquarters in san francisco, 11:00 a.m. open in its first trade. "squawk alley" is live ♪ hey, you, get off of my cloud hey, you, ♪ ♪ get

one of dropbox's biggest competitors. if he is concerned about dropbox.at's bringing in more money than box. tale ofox's numbers are two types of companies. one is a consumer residue -- revenue business. and then about a third of the business-to-business. that's the only part of the business that looks anything like us. our revenue tilts towards midsize companies and large and prizes. agree with hisu take that they don't compete as much as we seem to think? alex: currently that seems to the case. aty 11 million users pay dropbox. is of the big differences that box has a concerted sales effort and dropbox doesn't. revenue comes from that. that's the difference. competing but it and his company have been focusing on large accounts while dropbox is pushing for the guerrilla approach. get in was some teams internally have the big companies and try to figure out how to sell across the customer base. emily: thanks to bloomberg's alex barinka. spotify's public debut, they are bucking convention with a plan for direct listening on the new york stock exchange. we

we've got the dropbox story ipo coming through. pricing a little higher than expected, pricing at $21 a share. the range was 18 to 21. demand was actually reasonably good. a stun the number of shares outstanding after the offering, dropbox should make its public company debut on the nasdaq at a value of around $8.2 billion. it is the relationship between that number and the funding round being very important. if you have in the funding round , you may be slightly concerned about the way this is going. recently, it was suggested it could be worse. team leader joins us now. then, how significant is it we are getting decent demand for environmentm market -- the market environment is not that great. ben: that shows people are looking at dropbox's push for profitability. bid up the investors shares. the price range had already been increased and they priced above the top end of that range. investors are looking at dropbox has different than a lot of these other startups that may be rushed to market before they had a business model. alth

. >>> plus dropbox is one of the first big unicorns ramping up for its $8 billion debut in the next two we'll tell what you wall street sinlar isour. much more "fast money" after this n the investment industry who hold themselves to a higher standard. they are called "cfa charterholders." demand the best. demand a cfa charterholder. cfa institute. hey, need fast try cool mint zantac. it releases a cooling sensation in your mouth and throat. zantac works in as little as 30 minutes. nexium can take 24 hours. try cool mint zantac. no pill relieves heartburn faster. or you could you experience it for realnce at the lexus command performance sales event. lease the 2018 nx 300 for $339 a month for 36 months. experience amazing at your lexus dealer. how'd i get this yard? behind pete's great looking yard, is his secret weapon... the scotts turf builder program. it's the best way to get the yard you want all year long, guaranteed. all it takes is 4 feedings, with a scotts solution for every season. and with a customized plan from the scotts my lawn app, your yard can look like pete's. it's that

it to high growth software players, workday, service now, and from that vantage point dropbox tradesa steep discount even with raised range. given investor preferences today, investors want a combination of high growth and good profitability, and dropbox crosses both those buckets one of the fastest to pass a billion dollars in revenue doing it with 16% margin good balance of growth and possibility. as we learned last friday, ipos can be unpredictable pop on day one i'm not in the game of trying to know what will happen day one. from longer term perspective, you can see some of the numbers out there prove to be conservative for dropbox, and there could be off side to estimates and off side to that price target from here. >> and gene, how should we be approaching spotify here, both because of unconventional way it will be listed and we really don't know how it will trade initially and thinking about where it sits in the whole new media world. >> big picture, spotify is the leader in stream music 71 million subs. next biggest, apple music at 38 million. they're declining the churn from

dropbox is by far the biggest. also one that has been on the mind of folks out here on the west coast when it comes to the valuation conversation. you will remember, this is the company who was blasted back in 2014, 2015, for spending tons of money on some thing like a chrome panda for the office. sat down with the ceo last year for a story, he did walk through a moment of reckoning in 2015. they decided to cut cost, build infrastructure, now you see them getting closer to profitability and being cash positive as they sell to market investors. dropbox going public? does it have to? se.t doesn't have to, per if you want to be a in the ranks of the biggest technology companies, you have to get public. this is something that a lot of the private unicorns out here have been reckoning with. one is the right time. still very growth he, that stock hasn't done very well. this will give them the ammo to have aquisitions and broader appeal -- broader appeal . >> it has set its listing for a week of april the second. >> it is

the dropbox. >> not "squawk box"?e're not going public >> dropbox that's not nearly as exciting. >> yeah, in that case we'll wait until after eamon. don't we all have a stake -- >> neither one will quite get to the $10 billion valuation. >> no. >> let's talk more about trade and tariff we have other breaking news out of washington, another shake up at the white house yesterday national security adviser h.r. mcmaster is out, being replaced by john bolton eamon javers has more on this story. >> the president never really clicked with h.r. mcmaster stylistically or on policy grounds. the white house spent much of the past week telling reporters that h.r. mcmaster was safe and not going anywhere, but last night h.r. mcmaster was out. john bolton is in, former u.n. ambassador and fox news contributor. here was the statement last night. mcmaster served his country with distinction for more than 30 years. he has won many battles and his bravery and toughness are legendary. general mcmaster's leadership of the national securi

lauren: take a look at shares of dropbox, surging on first day of trading. company launching ipo amid a firestorm of economic news. currently wreaking havoc in washington and on wall street. look at that, dropbox priced at 21, opened at 29, it's at 29.46 a pop now. to the floor of the new york stock exchange where matt cheslock joins us now. all right, so you know dropbox not trade wearing you are, it's at the nasdaq, but it's a unicorn, right? a start-up, a billion dollars in revenue right now. valued at about 8, 9 billion dollars. pales in comparison. but investors are optimistic in tech? >> this is a good barometer for what the market was looking for. you have the sell-off in the tech sector, raising money to buy dropbox. 25 times oversubscribed, right? it had a tremendous day, despite the market closing down 700 yesterday. there had to be worries going to price on that deal, but came out through and smelled like rosing here. so all good from there, and just an example of what there is on the tech side. there are so many of the unicorns waiting to see mon

dropbox will begin trading with the value of $9.1 billion.ts to return to its roots in the education market. they will introduce new low cost ipads and education software. the goal is to win back teachers and students. it will be the first thing they've held a product launch in a school since 2012. the ceo and credit suisse saw his paycheck shrink. $10.2 million for 2017, 5% less from the year before. this page will return to the level in line with the expected improvements. flash. your is this after a year on the job, he is reporting from ubs. will --ntertainment steve wynn's stilling the remainder of the shares. had on byron allen's parade he buys the weather channel for $300 million. david: joining us is jason kelly. banking,nvestment what's going on? jason: it's surprise. he arrived about a year ago. of a joblittle bit helping investment banks did he was put into a position to run the investment bank and now he's leaving. only a year there, not a great time for was happening at ubs and its ambitions. he is a 17 year veteran of credit suis

dropbox will be floated.ta like documents and photos and remotely access them over the internet. the cloud storage market last year was worth a little more than 25 billion us dollars. by 2020 two, it is expected to grow to more than $92 billion. —— 2022. we were told earlier whiny the industry is seeing excellent growth. —— why. told earlier whiny the industry is seeing excellent growth. —— whym isa seeing excellent growth. —— whym is a huge industry. people are making the infrastructure behind the cloud. all of the middleware making it possible. and then you have salesforce and dropbox. and then telecom companies moving a lot of their recruitment from black boxes and software onto the cloud, to save money. the buzzword in the technology space right now is artificial intelligence. what are the synergies between a! and the cloud? they are buzzwords. to make ai intelligent, you need data and computing power, which cannot be done on a phone, on a laptop. you can doa done on a phone, on a laptop. you can do a lit

. >> dropbox has set up a price range for its ipo.pany plans to sell 36 million shares between $16 to $18 each. at the high-end of the range, dropbox would have a market value of about $7.1 billion. >> this is about a 25% cut from their last private value, which was $10 billion, when they last sold shares privately in 2014. that is definitely going to be on people's minds. it is not necessarily an operational indicator of dropbox, but it continues to tell the story of the differences between the premiums that private investors are willing to put on these private share sales of tech companies and what the public market is willing to pay. what i will be keeping a watch on for this dropbox deal as they hit their roadshow before they are scheduled to list next week is questions around user growth, specifically paid user growth. the other thing that i am sure investors will be asking management is about churn. that is going to be something that the public market buy-side will want to know a little more information on. >> the end of an icon

i think what our 1800 employees do everyday is different than what dropbox employees do. in name we are similar and let you store and share files, the general electric's of the world need a different type of functionality. emily: any advice? aaron: i generally don't give advice to pseudo-competitors. the more we can be as clear as possible in our two businesses, the better. it will put a massive spotlight on this industry, and that is good for us. we are collectively going after a 40 to $50 billion market, and so there is no shortage for us to tackle. we are focusing more on enterprises and they are focusing more on consumers. now the boxes cash flow positive you say you will be investing more. where are the futures out there of companies you might like to acquire? aaron: i am not going to announce any moves today. emily: why not? aaron: ir and pr and the sec has -- they have problems with this. we will get there one day. we are focused on our organic growth and r&d. the best way to think about our roadmap is, if you are a 50,000 person company or 100,000 person company a

know had a general high-level how they perform come and dropbox intel's two types of companies, consumeriness which is 60 or 70% of revenue, like you and i using it for professional or personal use. and then a third of revenue is b2b. it is part of the business that looks like anything like box and tilts more towards small business or teams where is our revenue goes to midsized companies. the have been trying in past five or 10 years -- and they have and the tilting focus back to where they are good, on the consumer side. our company has evolved to look very different and the kind of salesforce and consultants and professional services you need, compliance, regulatory control if the building to the platform. they end up looking like a different company in scale, so the think our 1800 employees do everyday is different than what dropbox employees do. even though in name we are similar and let you store and share files, the general electric of the world and needing a different type of optionality, and that is what we largest focus on. emily: any advice? aaron: i generally don't give advice

dropbox was part of a bigger rally today on wall street. all three of the indexes bounced back after last week. the dow jones gained nearly 700 points and the nasdaq climbed and so did the s&p 500. >>> aaron brothers stores are closing and turning in to michaels. they will shut down by the summer and company officials say they will reposition the brand as a store want ste, providing customer framing services in all michael's stores. the bay area has 13 aaron brothers locations by the way. well a place you will not find netflix is at this year's film festival. organizers decided to ban films from netflix and other services from competing at the top award of the competition. netflix mass been in a disbeauty with french officials over how it debuts movies. however, it looks like the company may be able to show films if i want wants to, just not compete for the top prize. something else banned? selfies. organizers are no longer allowing them on the red carpet. >> senator majority leader, mitch mcconnell is introducing a bill to legalize industr

emily: i know you have been asked about dropbox.n the numbers, and they have filed to go public, are you concerned? don't think the numbers change the competitiveness. we have known that high levels and how they perform. revenueare a consumer is this. that is 60% or 70% of revenue and people using it for professional or personal. one third of the revenue is probably the only part of the business that looks white box. that tells much more about small business. our revenue tilts toward midsize companies. emily: why couldn't they go after the large enterprises? trying,hey have been and a tilted focus back to where they are good, on the consumer side. our companies over time have evolved to look very different. the consultants and the salesforce and services and level of service and compliance you have to build in the platform and up looking like a different company. our 1800 that employees do everyday looks very different than what dropbox employees do. in name we are similar and we other companies need a different type of functionalit

in ipo price and pretty rich. >> investors are feeling the dropbox ipo, dropping public shares to $21d hike for the second, set range 18 to $20 when it first met with investors last week. the bump-up for the stock shows strong demand among investors, shares started trading today. lauren: big tech is suffering right now but the unicorns might be doing okay as trading begin for the nasdaq for dropbox. toys"r"us, where do we begin with the company this morning? >> a lot of shoppers not thrilled because they were in for a surprise when they showed up yesterday, two stores ready to shop the liquidation sales that they were promised, they were supposed to begin yesterday, shoppers were told that those were postponed and toys"r"us apologizing for confusion and hope to go begin slashing prices for shoppers today but toys"r"us may have a lifelong on their hands, unbillion investor and toy maker is trying to save the company, isaac of igm entertainment partnered with other investors and raised $200 million towards efforts to revive the company and set up a gofundme page. he's using the #save to

emily: i know you are asked about dropbox over the last years.ut the competition? >> i don't think the numbers changes the competitiveness of the business. we sort of new at a high-level how they were doing. -- has done - - two -- i think they've been trying over the last couple years. i think they have ended up tilting their revenue focus to where they are very good. our company's overtime has evolved to look very different. the kind of consultants, devotional services, compliance, reagan maggiore controls in the platform end up looking like a very different company at scale. the things our companies do everything with a look different that what dropbox employees do. even a name we are similar. we both store, let you serve files. the general electric's, the emails of the world be different functionality and that is what we're focused on and the last years. i generally don't give advice to matters but i think the more we possible inas -- as as closetry -- possible i think that will put a massive spotlight on this. we are collectively going after

emily: i know you have been asked by dropbox many times over the years, including by yours truly.u have seen the numbers and they have filed to go public, are you concerned? aaron: i do not think the numbers are the competitors of the business. athink dropbox's numbers are tale of two types of companies, a consumer business, 60% to 70% of their business, people like you and i using it for professional or personal use and the other is b to b. that is the only part of the business that looks like box and that tilts more to small businesses or teams, whereas our revenue tilts towards midsize companies. emily: and why couldn't they go after the large enterprises? aaron: i think they have been trying over the last five or 10 years and they have pulled their focus back to where they are really good, on the consumer s&p side. our companies have evolved to look different. the kind of consulting you need, the level of security and an clients you need. they end up looking like a very different company at scale. the things that our 1800 employees do every day look very different from what dr

open we're looking to be off about 145 points the s&p off by 15 points, the nasdaq off by 67 >>> dropbox pricing its ipo $21 per share. the software company selling 36 million shares in its initial offering, valuing the company at 9$9.2 billion dropbox will begin trading today. >>> sheryl sandberg speaking out on the cambridge analytica scandal here on cnbc let's get to arjun kharpal with the latest details there >> a quick recap, 50 million facebook profiles it harvested for data, data sent to cambridge analytica. they told facebook that they deleted that data, but now reports surface that the data is still there. cnbc spoke to sheryl sandberg and asked why was this data not checked that it was deleted. >> this was a huge breach of trust. people come to facebook every day and they depend upon us to protect their data i'm so sorry that we let so many people down. we spent the last few days trying to get to the bottom of what happened. cambridge analytica should have never had this data. they told us they deleted it it's our mistake we did not verify that. years ago we changed platforms s

emily: you have been asked about dropbox many times over the years.ve seen the numbers and they have filed to go public, are you concerned about the competition? aaron: i'm not sure that the numbers chamber does -- changes the competitiveness at the business. the numbers are a tale of two types of companies. one is a consumer revenue business, 60% or 70% of their revenue, and users or people like you and me using it. a third of the revenue is b2b. that is the only part of the business that looks anything like box, and that tilts toward small businesses or teams, where our revenue tilts towards midsized companies and large enterprises. emily: why couldn't they go after those? aaron: in some cases they have been trying, and they have ended up tilting their focus back to where they are really good, on the consumer as in beside -- snb side. the consultants you need, special services, level of security compliance and regulatory controls you have to build into the platform -- they end up looking like a different company at scale. the thing that our 1800 emp

dropbox rival is falling today, down 7.25%. >>> reports of goldman sachs ceo lloyd blankfein stepping of the year may not be true. he did get a big raise last year according to the big bank. versus 20.2 million the year before. >>> more problems for uber. following sunday's self-driving car accident that did kill a pedestrian. the test operator in the vehicle was a felon with a history of traffic citations! who wasn't watching the road at the time of the accident. while the driver fell within the company's background check requirements. this is another setback for the already troubled company. >>> up next, the former director of national intelligence admiral dennis blair tells us why president trump's intellectual property tariffs are a good start. "countdown" is coming right back. if you'd have told me three years ago... that we'd be downloading in seconds, what used to take... minutes. that guests would compliment our wifi. that we could video conference... and do it like that. (snaps) if you'd have told me that i could afford... a gig-speed. a gig-speed network. it's like 20 times

we might see >> well, i'm certainly excited about the dropbox ipo.018 is going to be a very significant year for ipos we're only in march. we've got some big ones cueing up we have big m & a with mulesoft and others i think the trend line that i would accent wait around the ipo sz the cloud you look at dropbox when is cloud based storage. and luke at spotify where our former cfo at netflix is now coo, that's a subscription based business for entertainment we know how those businesses work i think the whole trend of the cloud going public is the big thing that we're seeing here in 2018 i think it's truly a big deal. this isn't one of the little tiny waves of activity this could go on for a few years. >> okay. paul, thank you very much for your insights. paul holland markets, the dow down more than 400 points now we've got two pieces of breaking news from washington that might be contributing to this selloff. zblfr there's been some upheavel on the president's legal team. "the new york times" and "the washington post" both reporting that john dowd who

the world of cloud content management got big news when dropbox announced it was the latest company to. one company that beat them to the punch was rival box that announced its revenue missed forecasts sending its share price tumbling. shares of pick back up in the last couple of days of stop we spoke with the box ceo on tuesday. ofq4 that we just came off was very strong. we did $136.7 million in revenue. that was the range we got into. billings,million in $13 million in free cash flow so a strong quarter overall. it is what box looks like when we are executing at her best, onving the largest companies the planet, major banks, government agencies. we did 78 deals over $100,000 and 90 over $1 million. guidance was at a decelerated now for the year we are in and i was lower than analyst expectations and that put pressure on the stock. the reason is we are transitioning from a single product company to a multiproduct company. we arere doing that, serving bigger customers with bigger deals and we wanted to make sure we set ourselves up for a really good foundation for the gear that would

the dropbox -- and dropbox pricing their ipo above the range. so business is still happening.ing deeper into stocks and what happened in the market. sue? >> ugly close by any standard, but technically we will go to the snapshot again, because we saw the yield down for a second day, following the fed retreated to 2.8%. dollar, thed the yen is a safe haven. 724again, this was a reasons for the bulls to be concerned in terms of the decline of the dow, the biggest drop in six weeks. and it clearly speaks to the investor sentiment where you have a tightly wound investor who is not too difficult to unwind their trades. it looks like everybody had the sell button, with the exception of apple. facebook down again. the concern that regulatory -- will befall these firms. take a look at the other stocks that sold off and it shows the breath of the market. industrials and financials, financials hit the most. boeing down 5%. these stocks got hit hard and the selloff was deep. i want to go into the bloomberg. 5784, this is a day where the smart money on the street takes a look at the techni

you will see that as dropbox prices next thursday. vonnie: they are pricing lower than you it would expect them to , and if they wait any longer things might dry up. what does that say about the future of silicon valley and venture capital, going public? mark: they are going now, and it is lower than their last round. that does not mean that they will price there. other tech companies have used pricing that they think the company is going to go public as a way to spur demand, and companies have priced outside the range. we need to wait until the early or middle part of next week to see were the actual valuation will come. you also have the backdrop where companies like salesforce have invested in the company and are upping that stake. it is a fervent market, and you have a great company like dropbox that will be a bellwether for the ipo market. you will see other companies lining up to go public after you see the success of the dropbox ipo next week. shery: what about the m&a market? where should we be looking at? mark: you have big c

shares of dropbox begin trading today publicly. initially targeted a market value of 1/4 less than the $10 billion it was valued at during the 2014 funding round, but strong demand helped close the gap and dropbox will begin trading at a market value of $9.1 billion. and in a surprise move involving two of the biggest casino operators in macau, galaxy entertainment has agreed to purchase a 5% stake in its rival wynn resorts. the former chairman sold 8 m illion shares in the company. that is your bloomberg business flash. the longu th was it is abated trade war between the u.s. and china begins to break up. the chinese government announced $3 billion worth of import tariffs on the u.s. in response to the donald trump tariffs on steel and aluminum. head ofus now, the research in the space. soya buys 1/3 of the u.s. crop. is that the next target here? >> i think it is on the agricultural world's radar. prices have started to rally and they are starting to come off. soybeans is the u.s. biggest import -- export to china. it is worth ab

dropbox hoping for an ipo 36 chairs with the value of $70 billion. this is well below the $10 billion valuation the company previously had in a private fund. paperwork filed yesterday, dropbox expects the shares to be $16 to $18. lauren: apple is buying into the magazine business. is this about their services industry? >> that's exactly what it's about. it's digital magazine subscription service texture which bundles together 200 magazine subscriptions into one monthly surveys. the acquisition comes as they try to ramp up the services business which includes apple music in the apple store. apple service business grew more than 20% last year. cheryl: but this is a consumer play. if people don't go to the newsstand and buy a magazine. we are here with the potential goldman sachs ceo has another job on the side. >> has paid the replacement of lloyd banks nine. when he is not committee moonlights as a dj. he can be seen next in electronic music at nightclubs in new york, miami and the bahamas and cjd soul. check it out. ♪ i love it. i want to buy my birt

and finally, dropbox. those shares are gaining.hey are doing better than the private market valuation, so it ends up being a good day, lisa. so much.lor, thank you a lot of maybe, maybe not today. let's get the first word news with mark trumped in. mark: after tweeting he was considering a veto, president trump said he had signed a $1.3 trillion spending bill that averts a government shutdown. the president said he signed the measure "as a matter of national security." president trump: there are a lot of things that i am unhappy about in this bill. there are a lot of things that we should not have had in this sense,ut we were, in a force. if we want to build our military, we were forced to have it. there are some things that we should have in the bill, but i say to congress i will never sign another built like this again. i'm not going to do it again. mark: the president added that he is not happy with the measure because it does not include protections for dreamer immigrants and does not provide enough money for his promised borde

dropbox as well doing well >> a number of these premium stocks -- we had the founder of evernote on earlierat company did not make it public the question is now that so many of the giants, amazon, google, appal are competing in the same space as a spotify, as a dropbox, how much growth head room is there? >> more coverage today about apple's spending on original content. some big names they're drawing we'll watch and see how the markets hold on. let's get to the judge and the half ♪ >>> welcome to "the half time report." stocks surging back as the trump administration tries to ease fears of a trade war with china after the worst week in two years as there's even more volatility ahead with us today is joe, jim, steve, rod is here as well he's one of barron's and forbes top 100 financial advisers the markets, there's rebound for stocks joe, you tell me, more volatility ahead as the administration puts out what i characterize as a

a lot of demand for dropbox. mark: paul dobson is here. he leads european markets. much going on beneath the surface. i want to talk about what is going on beneath the surface. given trade and changes at the top, we have not had a lot of time to talk about the big issues. the moves for the yen and the lira, we might for get the lira has fallen to a record low. why is it moving today? angle.e is the trade war turkey has a very large current account deficits. it is more susceptible to emerging-market currencies when it comes to this kind of thing. of a risk to turkey with the replacement of h.r. mcmaster overnight. around lira gets kicked more than anything else. there is some pushback in the local government. i am not sure if there was action, but certainly a little he shakeup of the markets -- lively shakeup of the markets. mark: the situation in italy is fascinating. they are trying to come up with leaders. this might have some repercussions for the book of the future government. you wouldn't be able to find this on the first few pages of your paper today. week,had

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reports of the pricing of the ipo at $21 a share, perhaps a testament to the strength of dropbox andct and business. adam, back on the difference between what happened at facebook and other companies that have seen cyberattacks. when you saw the solution of the steps put forth by mark zuckerberg and facebook, what was your reaction? is it enough? are the steps going to guarantee some sort of privacy for facebook users? adam: i don't think it is enough. i believe it is trying to solve a modern problem with very old tools. trying to go out there and ask folks to sign contracts and do the human touch of getting more comfortable with who is going to use facebook user data, which is what mark has proposed. it doesn't scale in a world we have billions of users and millions of developers. betty: they are all about scale. adam: remember in this particular case, the cambridge analytica situation -- it all happened after the developer agreed to the terms of service of what they expect them to agree to. betty: facebook was too naive that they would comply with what they signed with what cambrid

vonnie: dropbox boosting its ipo price range.ring company is looking to raise as much hundred $20 million and is expected to price later on. despite the bump in price, dropbox is still well below the $10 billion it commanded in the private funding round. care to discuss it with us is bloomberg's ipo reporter. is kind of setting the tone for what to expect for tech listings in 2018. we need more activity to clear this priceline and they -- and it seems like they are off to a good start. good for -- from investors. the tech only one of ipos that have bumps, so it seems like things are going well, we will have to see when this price is aftermarket, how close to that $10 billion valuation do they get? shery: increasing the ipo price range is not really common. >> investors are excited, basically looking at the financials of this company because its books look good. they shrunk losses last year by half. in terms of companies that are in the tech space, if you are making money and you still have $1.1 billion in revenue last year, that