that is roger mcnamee.s is bloomberg. ♪ emily: investors are reeling from facebook's earnings driven by slowing user growth. the slide in the session talked the largest single loss for a single company in history. i spoke with roger mcnamee earlier and here is what he had to say about the big red flag. >> i think they are running out of users in their most profitable markets. secondly, i believe the weight of the scandals over the past year's beginning to show up in user behavior. emily: for more reaction, natasha lamb joins us. how much does this hurt? natasha: it hurts a lot. i think facebook was pretty lucky to see the recovery after the cambridge analytica scandal. we have been calling on the company to a knowledge the risk of faces. these are not new problems. what we saw in earnings was really the fallout from what we have seen in terms of corporate governance, platform and if you ,- platform manipulation whether that has been election interference, fake news, and hate speech being propagated over the

we talk to an early investor roger mcnamee, famous critic in recent qrts.uaer dow up 138 "squawk alleyn a moment. at the lowest price... is as easy as dates, deals, done! simply enter your destination and dates... and see all the hotels for your stay! tripadvisor searches over 200 booking sites... to show you the lowest prices... so you can get the best deal on the right hotel for you. dates, deals, done! tripadvisor. visit tripadvisor.com >>> facebook is dragging tech stocks lower this morning, although not the broader market. social network responsible for 70 negative points on the ndx. joining us, elevation partners co-founder, early facebook investor, now says very public critic, roger mcnamee. good to talk to you. >> carl, always good to talk to you. >> given your history with us and what you said about facebook publicly on our show and in print in recent quarters, how much of last night came as a surprise >> carl, in many ways the timing is a surprise because the news that drove it down has been in front of us and fairly obvious for awhile the market gets a moment to go up or dow

i also caught up with roger mcnamee of elevation partners. he was one of mark zuckerberg's mentors and an early investor in facebook and has been very critical of the company's privacy issues. take a listen. roger: investors have been willing to overlook a lot of red flags that have been showing up for the past year. you know, the maturity of north america has been in sight for the last two quarters. there were at least signals that europe was reaching some kind of saturation as well. and those are by far the most profitable parts of the facebook application in terms of generating profits. and so any slowdown there was going to spell trouble for the stock. and to be clear, you know, i look at this thing as, you know, a mixed situation for facebook. if you are an investor, the good news is that facebook has other properties. it has instagram, which is very profitable and growing exceptionally rapidly. it is, in many ways, just as bad a product for users as facebook, and for teenage users, it is actually much worse. emily: why? roger: they had j

roger mcnamee joins us next with his take on both ceos, what he thinks needs to change back in a momentebook's mark zuckerberg under fire after the interview this week, including some controversial comments surrounding the role of conspiracy theorists on the platform this is as the social network faces questions over how to deal what is and is not allowed in terms of content bring in early facebook investor, roger mcnamee. good to see you. happy friday. >> happy friday, carl. >> for all of the hand ringing about the interview and debate of what should go on and be taken off, stock at an all-time high earlier in the week, stock was valuing it with a perceived business model that management is not responsible for what is said. >> i think that's right. i think investors are looking at this and saying in the march quarter with all of the controversy, i think the market is expecting more of the same. the issue for facebook and mark, the country is trusting them with the 2018 mid term elections, and if something goes wrong here it is going to be hard to give them a pass and we know there's a

emily: i spoke with roger mcnamee, in early facebook investor who i'm assuming would agree with europe thinks that facebook is putting the blame on gdpr to of skill the fact that users are saturating in the most popular market. they're just not that many more users that are new. is that true? >> we are seeing growth slowing so to be true. in canada in the u.s., they do not have the same privacy rules. we saw stagnation completely in new users. maybe there at a tipping point. some analysts are saying that this is just a blip. one particular analyst at the tig is saying the dip in users dip in this thing the users is a one-time step down, not the building headwind. i'm cautious about that. i think it is interesting because the gdp are headwind could get worse. that is what bloomberg analysis is saying. bloomberg intelligence says the changes could hurt continually because facebook has said either you accept our new terms of privacy, you accept that when you sign up for facebook your data is just are beaten we can target ads that you, or get off of our platform. eu says you actually need

emily: that was early facebook investor roger mcnamee.e will talk about qualcomm terminating its deal, brady and end to a two-year saga. and if you like bloomberg news, check us out on the radio. this is bloomberg. ♪ emily: president trump took aim at two familiar targets in the united states, amazon and the washington post. both in full by the richest man in the world, jeff bezos. they called the washington post and expensive lobbyist for amazon and alleged the retailer has a huge antitrust problem. staying on amazon, the company came out with earnings thursday. we caught up with boomerang ceo and former exec as well as a reporter for bloomberg intelligence. look at the profit, it was massive by every said. capou look at every segment margins improve across the board. and what of the key things that jumped out was if you look at the advertising revenue, that last quarter they started reporting under the new accounting change, it continues to be strong. a hundred 30% growth. so a combination of the advertising, the amazon program picking

emily: that was early facebook investor roger mcnamee. still ahead, we stay on the earnings front. later this hour, we will talk about qualcomm terminating its deal, bringing an end to a two-year saga. we will talk about where the chipmaker, both of them, go from here. and if you like bloomberg news, check us out on the radio. the listings on the bloomberg radio app, bloomberg.com, and sirius xm. this is bloomberg. ♪ emily: president trump took aim at two familiar targets in the united states again this week. amazon and the "washington post." both are controlled by the richest man in the world. and that is jeff bezos. they called the "washington -- trump called the "washington post" and expensive lobbyist for amazon and alleged the retailer has a huge antitrust problem. staying on amazon, the company came out with its earnings thursday. we caught up with boomerang ceo and former exec as well as a reporter for bloomberg intelligence. >> if you look at the profit, it was massive. if you look at every segment, margins improve across the board. one other key things that jumped out was

joining us now from san francisco to talk more about this and other things, cakara swisher and also roger mcnameeood morning to you both >> good morning. >> hi. >> when the history is written of this entire kind of scale enterprise era and what the meaning of this move that michael dell has made really was, what do you think it will say? >> i don't know if someone will write a history of this, it is not very interesting >> but as far as the whole cloud enterprise thing, sure it is >> it's all your, jon. an open field for you. i think it is just this guy wants to have a public company and have control of it and he didn't before and it was as you said subject to the whims and this is one of the financials machinations to do so. silver lake certainly wants to take it public so they have an exit plan there. so it gives him the best of both worlds and they can being a agrees sich in taggressive in t and make it simpler. it seems like there a lot of debt and this sort of does give them the best of both worlds. >> it was supposed to be between hp and ibm to hoounlg becobecom giant that would stand the t

joining us now is roger mcnamee, an early and current investor in facebook. time has been cut short because of donald trump's talk earlier. let me ask you, these companies were asked very specifically about the basis for which they throw people out, get people off, demote their visibility. and the fact is, where they have made money, we have seen examples where twitter, google, apple, have all kept things up there that have made them money and have been conspiracy they are -- theories or not well proved ideas. >> that's true. disinformation, fake news spread much faster and much further than facts. as a consequence, they're good for the business of facebook, stwiter, and google. the challenge we face is we're trusting the midterms to facebook, google and twitter, and they've made changes, but it's not at all obvious that the changes they've made would even have prevented what happened in 2016, much less the natural evolution of technology strategy that's likely to come. we also have to remember that the cambridge analytica data set used improperly by the trum