jitendra: it is not a revenue problem.you look at their core ad business, there is a dynamic where the ad pricing is improving. we see a search becoming more and more valuable on mobile as it gets more credit with space. -- corroded with -- crowded with this space. there is impact in terms of improving with pricing. that is offsetting the 18% increase in paid clicks, the volume of ads that you see. this dynamic will keep playing. i think the ad business will keep humming well. the cloud business is where disclosure could be a bigger deal for them next year. at scale, it is a very profitable business. as we have seen with other competitors. google has the scale. if they can come out and show that disclosure, look, this is how fast we are growing and this is the profitability, which could very well happen next year. it could spur a re-rating for the company. taylor: i just got off the phone with the cfo as she said it was a very noisy quarter, which broadly led to the miss in the margins and bottom line. on the expense side,

to discuss, leanna baker and jitendra waral.rom viagogo's perspective, what are they trying to gain? liana: what they want here is an entry into the u.s. market. the really are paying up about $4 billion but they brought in some investors. it is a homecoming. eric baker, the founder of viagogo, was one of the founders of stubhub. taylor: eric baker has talked a lot about making this a global company. he was excited about reuniting these two. is that really the play here as viagogo gets the u.s. market and stubhub can have a global reach as well? liana: that is the strategy because viagogo is not really present in the market here. it is a fragmented industry. many competitors trying to bid on the business. the stubhub founders have really gone out and founded a a lot of companies that market. it is going to be competitive. viagogo coming in with stubhub has a good chance with having a good brand ebay was under pressure to sell this so, clearly, it was not fitting in and it was looking for other avenues. taylor: they said today th

jitendra: it buys them time to fix the core marketplace, which was going to take time.n help fuel profit growth. the other asset sales scenarios. other restructuring avenues. is more room for operating expenses to go down. the fight, amazon and coming next year with facebook entering the e-commerce market, we still don't have an answer yet. we are still waiting for the ceo. it buys them time to drive that profit growth. taylor: in your years of covering this company, why haven't they been able to keep up with amazon? what has been the biggest headwind? jitendra: the biggest headwind really has been the muscle memory developed with it can consumers -- with its consumers through prime. loyalty and things like that. ebay has missed out on that opportunity for a while now. once you sort of lose share over there, it is harder to get more than -- it is harder to get mind share more than market share. the opportunity in front of ebay now is to focus on things in front of them like advertising, payments. restructuring, if you look at the valuation for the company, it is reflect

jitendra: it buys them time to fix the core marketplace, which was going to take time. to come up with a sustainable strategy. it can help fuel profit growth. it also increases the imperative on other other asset sales scenarios. other restructuring avenues. looking at cost structure for ebay, there is more room for operating expenses to go down. at least that is in their control. their fight with the likes of amazon and coming next year with facebook entering the e-commerce market, we still don't have an answer yet. we are still waiting for the ceo. and a strategy on that. at least it buys them time to drive that profit growth. taylor: in your years of covering this company, why haven't they been able to keep up with amazon? what has been the biggest headwind? jitendra: the biggest headwind really has been the muscle memory developed with its consumers through prime. it has helped them drive forward and increase loyalty and things like that. ebay has missed out on that opportunity for a while now. once you sort of lose share over there, it is harder to get mind share m

taylor: that was our market analyst and bloomberg intelligence's jitendra waral.up, we asked about 5000 tesla model three owners what they think about the car's reliability, function, and design. those results next. bloomberg technology is live streaming. on twitter check us out at technology and be sure to follow are breaking global news network at tictoc on twitter. this uber. ♪ -- this is uber. ♪ -- bloomberg ♪ >> welcome back to the best of bloomberg technology. despite reporting surprise third quarter profits tesla revealed in a filing this week that the auto maker saw a nearly 40% drop in u.s. sales. sales in china, however, rose almost $700 million. so filing was revealing the same week bloomberg released a wide ranging survey of owners. the data reveals that tesla has finally figured out how to deliver cars with fewer problems. but that is not all it revealed. >> i think what we're seeing here is an artifact of them continuing to expand their geographic footprint overseas. so looking at the year over year number, we're comparing that to the third quarter o