sarah frier: that is right.mpany has been historically secretive about its strategy and possibly for good reason. we have seen facebook copy a lot of strategy earlier this month. the zuckerberg said he expects they are ahead of snap and in augmented reality, overlays on face changing, what you have on your camera to be funky or funny, the kind of things that snap is known for. facebook sees themselves ahead. andmpany very secretive also in a very highly competitive state. vonnie: investors, apart from user growth, what will they be focused on? sarah frier: they want to make sure daily active users are still climbing and the company they arely showing more engaged. snape's argument is that user growth is not the most important number. wall street may differ, but they want to show that the users they got our high quality in these markets that how mature advertising and faster internet. they are focusing on the developed world and not trying to connect the world to the internet like facebook. they want to show that

sarah frier, thanks for joining us.e look at the state of cybersecurity after the rent somewhere breach around the globe. the advice a leader in cyber defense has for you next. this is bloomberg. ♪ emily: cybersecurity has been dominating headlines, from the hacking of the democratic national committee in 2016 to the ransomware attack that hit the globe earlier this month. companies in the industry are reaping the benefits, including the provider of digital security that aided the d.n.c. in its response to what is believed to be interference by russia. it also just announced it has raised $100 million in new capital. joining us from new york, the c.e.o. and cofounder. great to have you back on the show. let's start with wanna cry. what is the latest you have on who is behind it and the extent of the damage? >> i think what we saw with wanna cry is a failure of the traditional legacy manufacturers. we saw large-scale infection. who is behind it? i think there are a lot of researchers trying to sort that out. it is still

with me in san francisco is sarah frier. paul, i want to start with you.n a report that the links shared on social networks and france around the election are fake news. is that accurate? paul: that is reasonably accurate. there is a fake news problem without any doubt, but what we like to do is try to quantify how about the problem is. when we are talking about fake news, we are talking about the stories that are out now and very partisan reporting. so, a lot of websites specialize in doing that. when we looked at data from the last two months leading up to the french presidential election, we see they can news is a problem, but not a huge problem. the most top 200 shared stories -- 20 of those are the partisan-type sites. 72 out of the top 200 stories last year were fake. almost 40% of the stories were fake in that instance third but only 20% and the -- in that instance, but only 20% in the french instance. emily: but you don't want any of the news stories you read to be fake. what is facebook doing about this? what is twitter and google doing about this

square ceo sarah frier on why company circled the u.k. as a starting point of its european expansion. and to the world's -- two of the world's biggest retailers prepare for digital war. why walmart's acquisition spree may be the am oh to take down amazon. media companies are getting with add this week revenue emerging as a trend. cbs reported its results after the bell, revenue totaling $3.4 billion. that is a beat. still, the fear of cord cutting is intensifying. pay-tv subscribers are moving online. paul, let's break down the cbs first. how are they bucking or reinforcing some of these trends? >> cbs had pretty good numbers today. they beat on the bottom and top line. when you strip out the super bowl and other top line items, they say that revenue was down -- at the cbs network was down slightly. impacts ofso feeling a slowing advertising environment. but they are benefiting from other revenue streams. their licensing a lot of the tv content they produce. their licensing it to other players such as netflix, both domestically and intern

emily: that was square cfo sarah frier. york times says the first quarter was the best ever for subscriber growth. the paper said it added a net 3008 digital subscriptions, continuing momentum from the devious quarter -- the previous quarter. it focuses on reaching younger readers. with online version of like spotify or joining the discovery platform. we speak with microsoft's yusuf mehdi on microsoft's fight for the classroom. this is bloomberg. ♪ emily: is a serious bidding battle for straight best medications. verizon offered a takeover proposal, giving at&t three days to match the new offer. losing this would be a big blow to at&t and straight path is one of the biggest holders of spectrum approved for fifth-generation use and at&t is eager to use those airwaves to build the leading 5g network. back to school for microsoft, the behemoth has announced the service laptop is aimed at college students loyal staff will come the devices of archer's computer tablet hybrid. bloomberg tech got a sneak peek at the new device, tak

we will hear from sarah frier's, next.der that all episodes of bloomberg technology are streaming live on twitter. check it out. this is bloomberg. ♪ . . emily: welcome back to the "best of bloomberg technology." on emily chang. week, facebook try to timber enthusiasm about and growth. we spoke to coo sheryl sandberg who said this about ad load. >> we carefully track the impact of ads on the user experience. from a fewis up years ago when we been able to do this by improving the quality and relevance of the ads. we are continuing to improve that at quality and relevance. emily: as earnings report showed a strong user base and the social network now has 1.4 9 hition users and they could 2 billion total users by next quarter. spoke with deborah hall williamson who supposed allies is -- who specializes in the demographics of social users. quarter it seems like facebook has another quote" great quarter and it's kind of hard to see where there might be problems. the revenue never looks great, the user number looks great and the

analysis, we bring in and sarah frier. , after looking at these numbers, which stands out most to youic is most disappointing? >> the user growth is the main thing people are looking at because snap this not have a .table business the future is in the growth. the future is and how many people can add to this app that they can make money off of? the growth rate is not what investors were hoping for from this young, hot company. back at when we look facebook and twitter come of those companies when they went public also came out with numbers that did not excite investors, but they recovered. twitter not as much as facebook. for twitter, it was a foreshadowing of a negative for that business. for facebook, it was a question of can they move to mobile, and they did that. down 10%, facebook down 12% on the first earnings, but snap, the shares don't have voting rights. it is something we talked about in the equity capital markets world. will this lead to more volatility, because there is no lever for change from the shareholders. if the only way to fix management is to get out and communica

sarah frier has been tracking this from san francisco.knew that snape would face intense competition from facebook. why were they not more prepared here? >> this is a company that came out with immense exuberance from wall street about having potentially what could be the next facebook. people put their faith in that as the platform that could grow pretty rapidly. because of the popularity we have seen with it among young people. this earnings report shows the road is hard. revenue growth estimates -- they missed revenue growth, as well. this is a company that has the opportunity to prove itself. they are just leaving people with a lot of questions. yvonne: the big question is, what will be the long-term strategy now for snap? this was a show me story, right? they have to deliver growth to justify valuation. go ahead. executives'ss the first opportunity to give a public explanation of what was going on with the company. roadshow before the ipo happened behind closed doors. here we hear about strategy for the first time. it is a great oppo

oliver: we got the details on that story as well in the interview with sheryl sandberg from reporter sarah frierow sandberg, the author of "lean in," this mix between an emotional and professional person. what we haven't seen so far and what my story is trying to convey is just how much that openness has reflected on her career at facebook and the culture within, and also whether this helps her as a professional. her latest venture into openness, the writing about her husband's death, something no executive to this point has really done shows just how far she is willing to go in order to really connect with people outside of facebook. and it seems to be starting this new way of communicating as an executive. and, you know, she is not really saying it is strategic, but it has helped facebook. facebook is a company in the midst of a lot of image problems more so than financial problems. right? they are doing great financially, but image-wise, i mean this company has had to , deal with the fake news debacle, they have had to deal with murders being streamed live on their platform, they are battling

we talked with sarah frier about sheryl sandberg and her role of bringing emotion to the company.eople came to work for this, but they are try to give you look like ads. megan: you have to look at what google was when it started. it made it more efficient to find the things you wanted on the internet. facebook was a way to find girls at the beginning for mark zuckerberg. [laughter] and it morphed over the years into -- as ashley calls it, a giant public scrapbook of people's lives. in part, there's an argument on the side of the industry that -- are they responsible as platforms for being transformative receptacles of this kind of philanthropic mission? or have they just morphed so far beyond their original starting mission that now they encompass so much of how we actually live our lives daily basis. there is an argument to made that facebook through ai artificial intelligence and virtual reality will take the place of so many other disruptive technologies in our life. the range of everything they are involved in from driverless cars and transit and how that will develop in the f

emily: that was square cfo sarah frier.s says the first quarter was the best ever for subscriber growth. the paper said it added a net 308,000 digital subscriptions, continuing its momentum from the previous quarter. it focuses on reaching younger readers. with our mike services like spotify or its recent decision to join the discovery platform. we speak with microsoft's yusuf mehdi on microsoft's fight for the classroom. plus, later this hour, we will take up president trump and the innerworkings of facebook. this is bloomberg. ♪ ♪ emily: a serious bidding battle for straight best medications. verizon offered a takeover proposal, giving at&t three days to match the new offer. would be aight path big blow to at&t and straight path is one of the biggest holders of spectrum approved for fifth generation use, and at&t is eager to use those airwaves to build the leading 5g network. it is back to school for microsoft. they have announced the launch of the surface laptop. it is aimed at college students. the device is a departure

sarah frier is joining us from san francisco. how are they going to do that? will they prove they are doing it, sarah? sarah: this quarter, we might not see the effects of a slowdown yet. the company says they are going to limit the amount of ad frequency on news feeds, called ad load. that's been a major driver josh driver of revenue growth in other quarters. the second half of this year, they have warned that that will stop happening. they will need to be more reliant on some of the other properties they have been investing in, such as insta graham, and some of the other format investments they have done such as video. and so, those initiatives -- we will be listening on the call to whether therey has been a meaningful contribution to revenue and whether they can combat a slowdown in future quarters. vonnie: user growth, what are we looking for today? sarah: to show that facebook is continuing to add users, that they are not hitting a plateau. facebook has consistently delivered on that and we are hoping to see the same. if we don't, there's a problem. vonnie

julia: that was sarah frier and alex barinka covering snap earnings for us.l foods reports earnings after the bell today, and the company announced a plan to change more than half the board in a bid to ward off or proxy battle with an activist investor, janice partners. this is according to an investor with knowledge of the plan. craig, give us the backup as whole foods tries to fend off the investor. >> it has been a tough stretch for whole foods. down for almost four straight quarters. mix, janet cardiff, saying that we will push for changes coming couldn't possibly the sale of the company. whole foods can we think, if available, for the punt with offender turn over half the port, but the investor says they wanted a two-year standstill and they said no, we want our options on the table. it is not a good this is enough to fend them off at the moment. -- it appears this is not enough to fend them off at the moment i. scarlet: part of the problem is that whole foods has not changed its strategy. craig: the old moniker is whole paycheck and it has really hurt t

joining us from san francisco to break down the numbers is sarah frier.his was a great quarter for facebook. what did you learn on the call? you are right, it is the quarter we expect from facebook. at the reason the stock is down is because on the call facebook's cfo reiterated a warning he has used in quarters past that the ad load, their frequencies of ads in facebook's news feed will not continue to grow later this year. that was a major driver of growth in the past. analysts and investors are looking to the future and wondering how much that will affect the sales in the future quarters. they say it will affect it meaningfully. as theooking at facebook other revenue growth driver they had down the line. not many are at the point where they can offset this decline. betty: that is right. what does this mean for revenue? i get it, they are doing virtual-reality and artificial intelligence and new technology, but that will not replace this huge advertising revenue base that they have. main socialook's app, it has almost 2 billion users, it is a mobile adv