but evan spiegel, he needs to be hazed. he needs to be hazed like i have never seen.ou've got to put him through some sort of gauntlet because this guy is so arrogant. he's so arrogant that i mean, honestly, evan spiegel, listen to me and listen to me good. you're going to introduce your call the next time and then you're going to back off and let your cfo talk. you're going to say, you know what? i did not do the job i'd like to, but i'm going to work harder. and do not relate -- do not relate facebook to yahoo, okay? and do not make jokes about how we're infamously don't talk about new product. because you see you killed yourself. now, he's cool as can be. >> evan thomas spiegel is not listening to you. he is not. he's not even listening to you right now. >> no, he is. no, he's listening to me. >> no. >> what do you think -- wait, what is he? is he in like th the -- is he i florence? my wife can talk to him there. >> you're referring to the answer to which an answer was given to greenfield of whether or not he was afraid of facebook and mark zuckerberg. >> people ar

is not the chief concern but it is definitely a concern, because the ceo, evan spiegel, he strikes methe founders who you don't necessarily want around to run a mature company. erik: why? carson: well, at this point, and this gets to the ethics concerns we have -- ok, getting the easily well-known corporate governance concern is he got effectively ended hundred million dollar stock bonus on the ipo, few to no strings attached, and he can the fei company now and he will still receive the stock -- you can leave the company now is still receive the stock. that is really -- erik: red flag? carson: you normally don't want to see that kind of conflict of interest, the outright money grab. beyond that, the actual ethics concerns. there was a lawsuit filed by a former employee who i was hiredo lead their growth team. he was hired in late 2015 and was only with the company for three weeks before he was fired. in his lawsuit, he is alleging that at the time snap was selling investors and have 100rs that they million daily active users, it was really about 80. at the time there were telling were

carson: that is not the chief concern but that is definitely a concern because the ceo evan spiegel,kes me as one of the founders who you don't necessarily want around to run a mature company. erik: why? carson: at this point, this gets to the ethics concerns we have. ok, getting the other well-known corporate governance concern is that he got an $800 million stock bonus on ipo. -- few to no strings attached to it. he can leave the company now and he will still receive stock. partly, that is to more than replace the almost $300 million he sold on it ipo. -- the ipo. so, that is really -- erik: that is a red flag? carson: you normally do not want to see that conflict of interest or that outright money gap. -- grab. but beyond that, the actual ethics concerns, there is a whistleblower lawsuit that has been recently filed by a former employee who is hired to lead their growth team. he was hired in late 2015. he was only with the company for three weeks before he was fired. and in his lawsuit, he is alleging that at the time that snap was telling investors and advertisers they hit 100 mi

the ceo, evan spiegel, he strikes me as one of the founders who you don't necessarily want around to a mature company. erik: why? carson: this gets to the ethics concerns me have. -- we have. the other governance concern is he got an $800 billion stock bonus on the ipo. if you do no strings attached to it, so we can mute the company now and he will still receive that stock. that can more than a place the almost 300 million sold on the ipo. that is really -- erik: that is a red flag to you? carson: you don't really want to see that conflict of interest or that out right money grab. beyond that, the actual ethics concerns, there is a whistleblower lawsuit recently filed by a former employee. he was only with the company for three weeks before he was fired and, in his lawsuit, he is alleging that at the time that snap was telling investors and advertisers that they hit 100 million daily active users, it was really about 80, and there are other issues. at the time, they were apparently telling everybody they were growing double digit month on month in terms of daily active users. he said

evan spiegel, their co-founder and ceo, lost $1 billion in his holdings. you like the stock at these levels. why? >> i really do like the stock at these levels. first of all, these levels now is close to the original ipo price. and there's no way to sugarcoat a $2 billion loss in your first quarter, that's clear. but i think what you're seeing is a company that is obviously in the very early stages. snap literally has 50% of the eyeballs in america between the ages of 18 and 34 every day for 30 minutes. those eyeballs are going to turn into revenue for the company over time. and they are -- you're going to watch snap really develop into an augmented reality platform that's going to drive a lot of revenue obvious the next several years. >> well, we will see. i know you're playing the contrarian play there, it's interesting to hear you take that side of the trade. rob, thanks for joining us, good to be with you. >>> up next, why having a roommate is one of the hottest trends in today's new retirement. >>> having a roommate in your 20s is commonplace. but did

. >> miranda kerr and evan spiegel got married over the weekend.der of snapchat. >> didn't he lose a ton

i have always been incredibly impressed with evan spiegel and his ability to understand what millennial's seen mark zuckerberg copy snapchat, and it hasn't worked. it is currently working a little bit with stories on instagram, but i think evan has a lot of tricks up his sleeve. when twitter and facebook went public, both companies shares 24%.i would 12% and not be selling my snapchat sneers if i had them. i think they will be fine for the next two quarters. emily: interesting. author of the new book, and specialfair," correspondent, nick bilton, thank you for joining us. betsy --ver, shares of in shares.he most they jumped as much as 23% in earlier trading, the most since july 2015. the stock is still down about two dollars a share from the april 2015 ipo price of $16. coming up, we take you across the pond and speak with a major player in a tech space. how they plan to whether the brexit storm, next. this is bloomberg. ♪ we've got breaking news. an update to the report from "the new york times," that president trump asked former fbi to finish theomey probe into michael flynn. memo inad

the ceo, evan spiegel, strikes me as one of the founders who you do not necessarily want around to runmpany. > why>? >> this gets to the ethics concerns that we have, getting the other reasonably known an $800if he got million stock bonus on the ipo with few to no strings attached to it. he can leave the company now and he will still receive that stock. is more to replace the almost 300 million sold on the ipo. that is really -- >> a red flag? toyou normally do not want see that kind of conflict of interest or money grab. actual ethicshe concern, a whistleblower lawsuit recently filed by a former lawsuit -- employee who was hired to lead to their growth team. he was hired in late 2015 and was on with the company for three weeks before he was fired. in his lawsuit, he is a legend that at the time -- he is alleging that the time snap was telling investors that they hit a 100 million active users, it was about 80 million. there are other issues. they were apparently telling everybody that were growing double digit month on month in terms of daily additive users. he said it was quarterly l

>> i think evidence indicates that evan spiegel is a product visionary.y personal view is that iron sharpens iron, that ultimately as consumers we really benefit. >> especially at this price, one of the original prices. good to see you. thank you so much. >>> we do have a news alert this morning on ebola and outbreak in the congo. >> there is one laboratory confirmed case of ebola in the congo. on may 11th, the ministry of health in the democratic republic of congo notified w.h.o. and partners of a lab-confirmed case of ebola. other reporting shows this is part of nine cases they're looking into, in the congo. this is a remote area. not populated but we'll keep an eye on it and see if they confirm more cases, carl. back to you. >> thank you very much for that. we'll look for further headlines. when we come back, shares of corning are up this morning. first installment of apple's pledged $1 billion into the manufacturing fund. we'll hear more from our sitdown of the executive producer of veep and why the best content always wins. dow is down 32. at fidelit

evan spiegel commented about the interest in user growth. >> ultimately, i think the way we try to helpeople understand how we think about daily active user growth is through the lens of creativity and creation. we built our entire business on creation. one of the things we talk about a lot is this idea that anytime someone creates a snap, they send it to their friend, which brings that friend into the snapchat ecosystem, for they added to their story, which contributes to time spent as they provide that content to all their friends. caroline: much more over that story throughout. much more from boston still to come as well. this is bloomberg. ♪ caroline: the harvard innovation lab is aiming to give its future innovators a leg up. open to students across the university, it offers a unique space for collaboration. a key initiative is its venture incubation program. every semester, teams apply to participate in the 12-week program that combines mentorship, workshops, and introductions to funding to help move the startups further and faster. select teams move on to harvard's lynch -- launc

who is to say that evan spiegel isn't going to grow out of the stuff, grow up if you will, and like theningp public company? carson: one thing i do want to tohasize, we have diligence the whistleblower here. we have had one of our investigators do a lot of diligence. everything that has come back indicates that he is a very standup guy, very serious, very honest. erik: he checks out. that heit's probable thinks what he is saying is correct. in terms of that question can a zebra change its stripes? let's say he was problematic before, can he straighten out? he has just been massively unethicalor this problematic behavior. people who are positively rewarded or positively sanctioned for that, i don't see them all of a sudden having this moment where they say that was great back then it, now is the time for me to really tell the line -- told the line. people like that usually have to have something bad happen to them before they correct their behavior. stock price drop is bad. let's get to the business model and strategy issues. it sounds is though they might be more important than the ethics a

we played a clip from the conference call, evan spiegel saying just because yahoo! has a search box doesn't mean they're google. so snap not really giving a direction. he didn't do cnbc, didn't show up on the first day of the ipo. is there a feeling they're struggling to be a public company? >> i think so. i used to run a company during the internet bubble, i have not seen a company trying to go public like that sense those in days. companies with severely negative ebita. yeah, he comes across arrogant. it's a company because they're head quartered in southern california instead of the more familiar silicon valley, a lot of people don't know. i think there's a corporate governance issue here, too. >> nobody has voting shares except for them. >> it will make a run today, as we can see in premarket trading to the ipo price. it will be interesting to see if it sticks there. the investment bankers will defend the ipo price. let's see if it sticks. obviously i think this is problematic. if you really want to invest in digital advertising, hold your nose and buy more face

i'm a big fan of the founder, evan spiegel and products, everywhere they're going for the country in the future the i'm still bullish long term. melissa: really? shanna, active daily users up 36% is that good enough to make you feel good about this? >> it's a good jump, one number and bar i was looking at and many others in the tech world looking at, 200 million number facebook touted last month about how many people were on the facebook stories competitor to snapchat. and i don't think it got quite close enough to feel as comfortable as we would have liked. >> jonathan hoenig still with us as well. jonathan what would be your first question on the call? >> why is this stock so sick, melissa? at the time nasdaq think 31 new highs this year, netflix all-time high, today why is this big name so weak at a time it should be breaking out? the number i follow is the tape, the market itself. with this collapse after the earnings, the stock is right near its 52-week low. my fear will see not unlike facebook, a very hot ipo, very weak follow-through. keep in mind, that was a harbinger of the

. >> some people seem to be put off by what they perceived to be arrogance from evan spiegel on the call. jim cramer today, i think he said it today, quote, he needs to be hazed. >> yeah. the yahoo! google stuff. >> one of our producers talked to ross levinson who had been high on the company and two founders who said this was so poorly managed that there's no way you should have had this kind of a disaster on your first earnings report. >> except for the fact that they were decelerating before they ipo'ed. they were decelerating in terms of the growth factor. you look at zuckerberg going right after them aggressively. $3 billion. obviously they did well because it was a heck of a lot bigger number when they ipo'ed. when you look at the money they hemorrhaged from the ipo and people taking money out, all of that, unbelievable numbers. so when they came in and the report that came out and then to still have some arrogance about yourself, that's a pretty interesting way to approach it. >> i think one of the things you have to be really careful about, facebook has all the money they want to

evan spiegel and bobby murphy each lost about a billion dollars when the stock dumped. loss of 2-point-2 billion dollars during the first quarter of this year. last weather final look a full hour of entertainment news is on the way.at 7:00 it's the insider, followed by entertainment tonight at 7-30. then we're ,$8drw >>> "the insider," tracking the biggest stories making news today. >> i'm a cool guy. most people who know me crazy about me. >> number one, did steve harvey issue a do not approach warning to his employees? >> this is a great staff right here. >> inside the viral leaked memo that has harvey feeling the heat. >> eventually the truth comes out. >>> then, is "scandal" finally handled? >> you can't count out season eight. >> our tv report card spokes you what shows are returning and what just got canceled. >>> and number three, natched" red carpet is a family affair. but is goldie and amy's new bond an issue for kate? >> sometimes i get a little jealous? >> as goldie gets emotional about kurt. >> i never thought i would find anybody that loves my children the

let's bring up this chart to show you what the stock price plunge is doing to their net worth for evan spiegel is cofounder. on the right-hand side you see that downward slope. $2.4 billionbined loss. they each lost $1 billion today. i would like to have $1 billion to lose, to be honest. [laughter] yvonne: i think they had about $4 billion before. betty: exactly, it is a nice problem to have. how much u.s. executives are paid, as well. tech ceos making the list of the most well-paid ceos. we will talk about the story later in the hour. yvonne: we are talking about uptbank revisiting a tie between sprint and t-mobile. how xi jinping plans to reshape the world. this is bloomberg. ♪ yvonne: this is daybreak asia, i am yvonne man in hong kong. betty: i am betty liu in new york. they are keen to restart merger talks between sprint and t-mobile. investors are more confident this time a deal may come around under president trump's administration on -- and their stance on looser regulations. ramy inocencio has details. he will not give up. ramy: no, he is not giving up. they want to also give their ow

supermodel, miranda kerr, and evan spiegel, got married this weekend in the backyard of their brentwoodw models. sources telling e! news it was rustic with farmhouse tables and her 6-year-old son flynn who she had with her ex-husband orlando bloom racing around the yard very happy. grammy winner, jason mraz performed, and so did colby caillat. the evening ended on a high note when miranda jumped on stage and sang shania twain's hit "still the one." i hope he's still the one since they've only been together two years. she's 34, and she's worth $4 billion. >> billion with a b. >> billion with a b. >> $4 billion. >> yeah. all those cute little snapchat things. talking about party favors. >>> finally, everybody in "pop news" today graduation time, end of the year, parents doing a lot of great things to honor their kids' hard work at school. i'm not sure this kid would agree with what his dad did to celebrate him. >> oh, no. >> yes. >> that's justin picking up his 15-year-old. we're so sorry for you. look at his face. final day of junior high dressed up or should i say dressed down as michae

a lot of anticipation to hear from imran khan as well as ceo evan spiegel.. >> julia, thank you. shares down about 19% right now, so continuesing to move a little weaker as we get more about the results. >> as i said 1890 was the low before. you're not pinning it on anything in terms of financial metrics right now in terms of the valuation. it is kind of where you are going to find buyer hospital are saying, i'm going to overlook this, think about the longer term story. i think there's an interesting potential space that they can occupy which is, look, we are about photography, messaging. we're not pretending we're going to have people reading 3,000 word articles on our platform. we are something different. it is a distraction. but if the advertising is suited to that exact type of engagement i can see it actually getting some traction among advertisers. >> samantha, do you think the excitement in tech is elsewhere these days? >> we do. revenue growth for the sector is up 10% for the quarter. energy and tech was main contributor to earnings this quarter and

here's what evan spiegel had to say about competition on that call. >> people will copy your product if you make great stuff. when google came along, everybody felt they need a search strategy. when facebook came along, everybody felt they needed a social strategy. with snap, we believe everybody will develop a camera strategy. just because yahoo! has a search box, it doesn't mean they're google. >> not a good day for mr. spiegel and his co-founder, robert murphy. each lo . >>> we have some deal news that broke overnight. verizon reportedly winning a bidding war to acquire straight path for $3 billion. the deal could be announced as soon as this morning. straight path uses high frequency radio waves which could give verizon the edge on developing a fifth generation or 5g network, which is what the hole whole at&t/time warner merger is about, moving to 5k, bypassing cable. >> finding faster ways to get more data. >> straight path, the original deal was broken when we were on the air. nobody seemed to know or care what straight path was. it's been remarkable to watch the little battle

as for snapchat, i asked hoffman about what he thinks of evan spiegel not issuing any voting shares in's an expert to see how it turns out. and investors get to choose if they want to invest in the company where they don't get any voting shares and the control is held by the founders. i think there's definitely a lot of conversation about both of the companies out here. we'll hear more today. >> thank you, julia boorstin, thank you. >> he's got the dts bad, dts bad, reid hoffman. trump derangement. >> a huge hillary backer. >> wants him to release the tax returns. >> after november 8th, oh, my god the world is upside down. anyway -- >> when we come back this morning, shares of michael kors under pressure after disappointing comp store sales and giving weaker than expected guidance. that stock is down by about 7.25%, off the worst levels of the morning. hey. pass please. i'm here to fix the elevator. nothing's wrong with the elevator. right. but you want to fix it. right. so who sent you? new guy. what new guy? watson. my analysis of sensor and maintenance data indicates elevator 3 will