toing up, spotify downgraded underperform.e will speak to an analyst who says the music streaming company could have issues down the road to profits. check us out on twitter @ technology. this is bloomberg. ♪ companies extended losses after amazon announced it launched a beauty store. as 4.5% for much its biggest intraday, -- intraday decline since may 31. taking a stand on the music service spotify. they have downgraded the stock fromderperform to $110 125. an analyst wrote that he simply doesn't see a path by which spotify can generate a level of gross profit demanded by the street. kevin, walk us through your argument. i guess the argument comes down to the question, is there a path for the level of gross profitability that current street estimates are calling for? if you look through kind of what the stock has done recently, the move from hundred $20 to 150 -- that has150, we think to do with content costs and the ability to drive high revenue ancillary market streams. we think they will disappoint investors in a way that

we have seen slack do it, seen spotify do it.re are probably pros and cons to be made in both directions. i would not say there is a blanket statement as to whether one is better than the other. it is probably more for individual companies and boards to decide. emily: what do you think spotify's path to profit is? is there one, with apple having a deep cash pile and the benefit of being on the iphone? kevin: that is the question. our big concern is that spotify will ultimately prove to be a pure play on a loss leader category. if we look at the deep-pocketed competitors, apple, amazon, they can operate streaming music as a benefit to their broader ecosystems and not have to generate profit from streaming music on a standalone basis. for that reason, we struggle to see a way in which the industry-level profit will be attractive. spot is a pure play on that industry. it is an ongoing question as to what the key driver is. the management team and bulls a two-sidedo marketplace, high leverage promoted revenue. that is worth exploring

similar to what we saw with spotify.ot as well known a name as spotify, given that is a consumer company didn't trade that well day one they want to make this look a bit better at whatever they call them, their agents who are dealing with it. goldman sachs being the chief one. if you can get -- the key question is how much it's going to be sold today you don't know their hope is perhaps you get as much as 5% of the 600 million shares out there in terms of volume, and that will really lead to a very stable first day of trade >> well, yeah, and i think that's right it depends look, at 26, the so-called reference point, it sells at 34 times sales, 22 times net shares the only one that's higher than that of the companies that have come public lately is octa, which is a cybersecurity company. if it goes to 30, which a lot of people feel is not a problem, then it sells at 39 times sales. that's going to be, other than zoom, the highest. crowd strikes too. only zoom's not more mojo. >> it is a very high multiple. >> yes, it's g

jason: and the spotify for classical music.: and in our podcast, we hear about a new book "hacking darwin." jason: it explores the new era of genetic engineering. carol: first up, we talked about trumps trade war with china. mind, jamie has served on the senate foreign relations committee and state department. jason: and begot the difference between an opportunity and a threat -- we got the difference between an opportunity and a threat. >> the path has been towards greater conductivity. --t we are -- conductivity connectivity. i have been a critic of china because i feel like they have gamed trading system -- thus rating system. the trading system. has admitted they have stolen property. carol: under the direction of the government? >> you never know. big chinese company, it is a different model. you are connected to the government. you have a chinese party sell within sight of your company. when big things happen, you cannot say no. that is why the rest of the world has recognized they are not like japanese or korean companie

a major win for spotify.he announcement comes on the hills of similar agreements that the obamas did sign with netflix as well. >> trevor: that's right, barack obama is making his own podcasts. and it must be really strange for obama's facebook friends to watch his career go in reverse because nine years ago it was, hey guys, check out my inauguration. now it's, hey, everyone, please subscribe to my podcast! if you do, you better have a lot of free time because that man does not talk fast. ( laughter ) yeah, his podcast is going to be like, aaahhhhhh... hello. aaaaaaaaahhhhh... and we're out of time. ( laughter ) and now, everyone supes the podcast will be about politics but they said a wide range of topics. what a.p. about pop culture. robert pattinson will be the new batman. i'll give it a chance. see if new video of dabbi on the security camera? creeped me out. that show was creepy. ( laughter ) finally, news out of south africa. >> officials in south africa warning residents to be on alert, after 14 lions

jason: and the spotify for classical music.: and in our podcast, we hear about a new book "hacking darwin." jason: it explores the new era of genetic engineering. carol: first up, we talked about trumps trade war with china. keep in mind, jamie has served on the senate foreign relations committee and state department. jason: and we got the difference between an opportunity and a threat. >> the path has been towards greater connectivity. i have been a critic of china because i feel like they have gamed the trading system. huawei itself has admitted they have stolen property. carol: under the direction of the government? >> you never know. but a big chinese company, it is a different model. you are connected to the government. you have a chinese party sell within sight of your company. when big things happen, you cannot say no. that is why the rest of the world has recognized they are not like japanese or korean companies. we have to see them as quasi-state actors. they have gamed the system through forced technology transfers an

. concerns there is a disruption with their model -- spotify.ise. have we got another dot—com bubble emerging here? should we be concerned about investing in the likes of these companies? if you look at uber has had well—publicised problems since coming to market, by looking at the tech companies that have ipo this year that performed well and the etf that attracts these up 40% this year. etf? exchange strange -- exchange traded fund that picks up the recent ipo stocks is up 40% compared to the nasdaq composite at 18%. actually, broadly, the tech companies that perform well, companies that perform well, companies like slack that have a 90% margin, these businesses are higher margin, these businesses are higher margin, fast—growing software businesses which should be sustainable in the long—term. uber and lyft there are questions as to their route to profitability. really interesting. we will keep an eye on how they do later today. it is a busy day for financial markets. let's talk about the fed now, because the us central bank has kept interest

the whole point of an ipo is for companies to raise money to grow so slack and spotify and maybe airbnb are uniquely positioned to say we don't actually need to raise any money. uber couldn't have done that, right? >> certainly uber has raised a tremendous amount of money and they're operating losses are still massive, so uber in order to continue getting market share needed money slack on the other hand is one of the most efficient marketers out there. for every dollar they put in they get $1.10 back in revenue you certainly need to have a big brand that most people understand slack is not like a database company that you have to explain to a ton of people everyone understands what that is, and you don't need the money. if you have that combined with a large diverse shareholder base, then this is a legit option. >> we heard this from bob grie felt himself, former chairman of the nasdaq who said he thinks there's no reason why these two things should be conflated to take your shares public and to raise money he said are two totally different things it just so happens that the ipo proces

as samira hussain explains, slack‘s debut is another unusual path, pioneered by spotify.k's debut on the stock exchange primarily because it decided to list directly. that means it didn't have a traditional roadshow where it spoke to investors to get a sense of how much interest they would be in the shares. he didn't use banks to underwrite any potential losses, and it was the exchange itself that set the initial price for the share. the only other big company that went a similar route is the music streaming site spotify. so why is this significant? well, if slack's debut is deemed as a success, then it is entirely possible that we may see other silicon valley companies do the same. air b&b, for example, has suggested that it may also opt for a direct listing. samira hussain on the slack ipo debut in new york. in other news making headlines, apple has several corporations warning the trump administration against raising ta riffs trump administration against raising tariffs on chinese goods. it comes as talks resume aimed at ending the trade war. the countries' presidents

alex harmon says the doj could decide to take a harder look at spotify's complaint.emember spotify filed a complaint against apple with a european commission saying apple has an unfair advantage. acting as both player and referee. meaning competing with spotify and others in a music streaming market, but also deciding the rules that govern the app store and that harmon says is monopolistic for its part, apple flatly rejects that argument. saying it wants all businesses to thrive even if they compete for example, apple will say it distributed 200 app updates on spotify's behalf resulting in over 300 million downloads beyond the app store, he highlights another thing apple news pluswhich launched in march, bringing together magazines, newspapers and publishers he questions whether they're using their leverage to abstract from participating publishers. apple counters its receiving great feedback, people, harper's bazaar and town and country. herb says a case against apple news plus would be tough in his opinion because content in that service is available elsewhere, too

we've seen spotify last try this in april 2018. in this case, of course we're trying to take early cues from what happened on nasdaq with a company debuting. that went the traditional route. grocery out let coming up 22 buck as share, up 35% since. this will telegraph how new offerings go in the market. a little bit different beast by not going the traditional route a lot of ipos go. this could say a lot about the depth and breadth of this market. "dow jones newswires" glen hall, sean o'hara, if markets stay on this, good news behind offerings or these threats of war right now that could kind of poo-poo all of that. glen, what do you think? what is dominating the themes right now? even though we're well off the highs the fact of the matter we're still up a lot and the s&p is in record territory. so the war fears not to seem to be dissuading buyers. >> not yet. we haven't got the whole story what happened with iran overnight. the expectations are it wouldn't escalate beyond this, right? and if that is the case, then you get back to

the same thing, you know, with spotify.ntals as well so i think that's really important to keep in mind. >> tom, do you think this one sparks now lots of the potential ipos to do this instead and which names do you watch >> i do, however i thought spotify would and it did not not. when i left the new york stock exchange i had a conversation with an insurance company to your point, good fundamentals but certainly not a sexy business and i told them i absolutely think it will work for you. the investment bankers did get paid $22 million on this transaction. they have a role their role is to go out and find the buy side it might not look like a typical road show but they pull together investor meetings, analyst day as appropriate, they're on the phones, morgan stanley, goldman-sachs weren't sitting on their hands during that capital. i don't think it needs to be a spotify or even a enterprise software darling like slack for this to work >> tom, thanks for joining us. >> you are kind of the father of these direct listings. >> i

the head of netflix and spotify. >>former president barack obama and former first lady michelle obama will start working with spotify to produce exclusive podcast under the multi year deal spotify and the obamas production company called higher grounds productions. i will companies us ago the couple and the company will develop produce and lend their voices on a wide range of topics, the obamas formed higher ground last year saying that the goal is to foster new diverse voices in the entertainment business, the first pod cast are likely to debut early next year. >>the popular smoothie bar john, the juices shortening its name from now on the chain will simply be known as john le while loyal customers have been calling it john the for years now the company's going ahead making it official the name change also represents the better menu since job offers sandwiches bowls and snacks in addition to juices and smoothies it's not just use the company's also rolling out new store designs, healthier options in a redesigned mob

particularly with spotify in our rearview mirror and let's see whether that becomes a trend or just at or two each year i think there's some debate about that >> we've got our eye on that pot. that's for sure. >> and a quick programming note, as we go to break. our deirdre bosa will be sitting down with the founder and ceo of huawei exclusively just the day after tomorrow the company slashing its revenue forecast amid continued u.s. pressure, but first, rick santelli, what's ononyour mind >> what's on my mind is manufacturing in and near new york city, gotham. it seems as though the empire strikes out. we're going to talk about that after the break. johnson & johnson is a baby company. but we're also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. from the day you're born we never stop taking care of you. >>> i'm scott wapner here's what's coming up, "halftime report" at the top of the hour stocks, the fed, and your money. we're debating what will happe

emily: spotify was very quiet on direct listing.xpect to see slack executives in new york on the floor of the exchange celebrating? >> i'm not sure if there will be banners and all that, but they will be, i believe, doing something that morning. we been talking to experts about what they expect or what they think no be a win, i news is good news. if it is quiet, if it stays stable, if there is some trading and nothing crazy happens, it will probably be seen as a pretty big win. emily: thank you for your reporting. we will be watching for your reports over the next week. just a reminder, the capital arm of bloomberg lp is an investor in slack. coming up, we will the future of cityondon tech seen as the itss to redefine relationship with europe. this is bloomberg. ♪ emily: netflix is the latest tech giant making its way into video games. the streaming company announced it is working with top videogame developers on games based on it shows. three the game" will come out the same day the showed abuse and netflix crystal, athe dark game

take spotify's complaint. competes with stify with the streaming service and aside the rules that govern the app store. some critics including u.s. presidential candidates suggest that violates the law. >> my view on this it's a little like baseball. you c be an umpire, a platform or you can own teams. that's fine, but you can't be an umpire and on one of the teams that fits in the game. the w monopolisl make fewer monopoly profits. boo hoo. >> apple rejects this argument and notes that it actually approved and distributed 200 app updates on spotify's behalf. some have questions about another apple service, too, apple news plus, a new service that brings together hundreds of magazines, newspapers and publishers. the problem that we're concerned otth is that publishers are giving the opportunity to negotiate and are not able to negotiate together and are -- are being exploited and their own subscriptionervices being undermined by a news plus that gives them an option to participate or not and if they t particip

emily: spotify was very quiet on the day of its direct listing.o we expect to see slack executives in new york on the floor of the exchange celebrating? ellen: i'm not sure if there will be banners and all that, but the ceo will be in new york. they will be doing something that morning on the new york stock exchange. when you talk to experts about what they expect or what they hope will be a win for the slack listing, i think no news is good news. if it is quiet, if it stays stable, if there is some trading and nothing crazy happens, it will probably be seen as a pretty big win. emily: bloombergs ellen huet. as a reminder, bloomberg is an investor in slack. hong kong's falls into chaos as citizens protest and extradition but what does it mean for investing? later, dropbox is coming after microsoft and google. how they aim to evolve from a file storage system to a collaborative workspace. this is bloomberg. ♪ emily: in hong kong, chaos in the streets. thousands of protesters demonstrated against a proposal to allow extraditions to china. this as ho

emily: spotify was very quiet on the day of its direct listing.ee slack executives in new york on the floor of the exchange celebrating? ellen: i'm not sure if there will be banners and all that, it's but the ceo will the in new york i believe, doing something that morning on the new york stock exchange. when you talk to experts about what they expect or what they hope will the a win for the slack listing, i think no news is good news. if it is quiet, if it stays stable, if there is some trading and nothing crazy happens, it will probably be seen as a pretty big win. emily: ellen huet, we will be watching for your reports over the next week. the capital arm of bloomberg lp is an investor in slack. lawmakers and business leaders had to london for bloomberg's sooner than you think conference. we will look at the future of the london tech scene as the city looks to redefine its relationship with europe. this is bloomberg. ♪ emily: netflix is the latest tech giant making its way into video games. the streaming company announced it is working with top

. >> coming up, as slack announces pricing for direct listing, shares of spotify have been stuck in no man's land after its direct listing lasyet ar direct listing lasyet ar we have that is where people first gathered to form the stock exchangeee, which brought people together to invest in all the things that move us forward. every day, invesco combines ideas with technology, data with inspiration, investors with solutions. because the possibilities of life and investing are greater when we come together. ♪ what do you look for i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪ very high borrow costs essentially because of the interest, whe

spotify pursued a direct listing last year and our next guest says that was a great move.f equities end which has worked on about half of the unicorn ipos and as i said, most of them are unprofitable but for some reason, investors are okay with that, the profits come later. do they? >> growth has to be there and in order to achieve growth, i think most of these companies have to spend a lot of money and investors are okay with that. 20 years ago, amazon was the only company that was doing that. it survived. i think that model is giving investors a lot of confidence in saying if you see growth, if you see a path to profitability which slack does have, then they are going to be forgiving at least for a little while in making sure these companies get a chance to become profitable. lauren: is there also the hope that these unicorns mostly offer a digital service to an already existing company, maybe not even a tech company, so with the other companies using their services, they got to be worth something. >> look, everyone uses e-mail and slack is a good example of a company th

for direct listings, looking at spotify which was 10 times bigger.cket because they are not going public, but they are doing a direct listing like spotify did. caroline: do you think investors -- they are talking about sales this year, but what do you make of the fact that they are not looking to raise new money? rett: we joke about these direct listings, saying going public without raising money is like losing your virginity without having sex. this company already has capital on the balance sheet so they might not need the money as much as others. this company still is making dropbox areway that not. they had already turned the corner into making profits. without an underwritten offering, there might not be as much of a catalyst for investors to decide they want to invest right now. they could take a wait and see especially as you look at the prices for dropbox and spotify. romaine: it seems slack seems like a viable long-term business but in the filing in april, they specifically talked about the potential for comfort to. microsoft -- for competit

emily: spotify was very quiet on the day of its direct listing.o we expect to see slack executives in new york on the floor of the exchange celebrating? ellen: i'm not sure yet if there is going to be banners and all that, but stewart butterfield, the ceo, will be in new york. they will be i believe doing something that morning on the new york stock exchange. and i think overall when you talk to experts about what they expect and what they hope will be a win for the slack ipo or the slack direct listing, excuse me, i think no news is good news. if it is quiet, if it stays pretty stable, if there is some trading and nothing crazy happens, it will probably be seen as a pretty big win. emily: bloomberg's ellen huet there. as a reminder, bloomberg beta, the venture capital arm of bloomberg lp, is an investor in slack. coming up, hong kong falls into chaos as citizens protest a china extradition bill, but what does it mean for investing in the region? and later, dropbox is coming after microsoft and google. how the productivity software company aims to

this is nissan intelligent mobility. ♪ >>for your money tonight spotify wants to make your morning commutetle easier least when it comes to music choices. a launched a new personalized playlist today, it's actually called your daily drive the playlist includes the music you artes. >>like along with some other recommended tracks as well as a pod cast news updates from the wall street journal in pr and radio international spotify says that you can find a playlist on to the made for you section. ford is recalling more than 1 million of its explorers because they may have suspension problems the recall affects suvs from model years 2011. >>through 2017 ford says one customer reported hitting a curb due to the problem and nobody has been injured so far 4 will spend around $180 million to fix that problem at no cost to owners los angeles international airport is the worst airport in the world. to a new travel guide to the company's editorial team of travel experts described ali acts as quote to be humid time sock. kind of wild one t% commentary noted that passengers were quote forced to indoor t

if you are spotify, it seems rough to compete with your competitor and hand them 30% of your cash. to put a fine point on it, there are some cases like that. in terms of customers being harmed, you see a lot of companies like netflix rearrange their whole way to charge customers just to get around the apple tax, and that's kind of strange. we all want to concentrate on making great products for the customer. if apple didn't have that big tax, netflix and other companies would make it easier to purchase their products. taylor: given your history and experience with apple, what does an apple breakup look like to you? with the separating of hardware and software, how does the app store come into play? what are the concerns of how apple could be slid up -- split up? john: you are going to make me popular with my friends at apple. taylor: that's our job here. thinkin these cases, i there is a lot of remedies. you can imagine for example after some discussion, these companies just agreeing to lower their prices, their percentages. or you could say, does apple really need to have the app

spotify had a reference price of $130 a share, i believe. opened up close to 170 back down a little bit right now still 145, 150 so still at a premium to where it opened even after all this time so this model does work. i know it cuts out a lot of underwriting fees. traditional wall street doesn't love it although they did play a smaller advisory role here i think you'll see more of these among companies that don't need the push from a traditional investment banker because everyone already wants in and that's just a new reality of the markets that we have right now >> you let the market set the price and they will discuss today -- >> this is trading >> is there enough volume to have real pricing. >> the ipo was a formality these things are changing hands every day. up to and including the week before the -- i mean we know what these things are valued at before they come out >> anybody else on this one? >> to josh's point spotify is up 13%. >> are you a buyer >> i'm going wait. i want to hear the earnings call that's been something i've alway

much the same way spotify did last year. slack's going public at a time when u.s. upbeat start to the year but faced extreme volatility in the midst of a trade war with china and antitrust scrutiny looming over big tech. tens of billions have been raised in public offerings though while some i.p.o.'s have soared, others have floundered. c.e.o. stewart butter feel and his team have transformed the way companies manage endless emails and messages but the key will be to convince potential investors that the company is worth its targeted valuation of around $16 billion to $17 billion. despite slack's revenue growing to $600 million this year, its revenue growth is slowing. and its losses are expecting to near $190 million. another unprofitable tech union torn -- unicorn. what could make this a success for slack? >> no news is good news. if it's quiet, stays stable, some trading and nothing crazy happens, it'll be seen as a big win. >> we'll find out this week if investor are as collaborative as slack hopes. >> to further discuss, we've got ellen hewitt, who you just sa

spotify will distribute the podcast to audiences worldwide as part of a multiyear agreement. next generation of 5g technology is expected to transform the world at greater speed with better connectivity but it will also open the door for cyber attackers. will 5g be?e joining us to discuss is nicole egan who helped develop artificial intelligence for cyber security. there are two sides to the story. there is the concern around surveillance and a greater concern about 5g. in general, the idea is if the world is more connected, it is also more vulnerable. let's answer that question first. would you agree? i think what happens with 5g is that people are moving to it because there is a need for speed. people want to get the next generation of applications out there faster, things like connected vehicles. all of these applications require video. oft's why there is a lot buzz and discussion around 5g, the advantages. but there are risks that are going to come with it. there are more points for attackers to get into the network. emily: does not mean a harder job for you to protect th

although i do think that when you think about apple and you think of spotify, remember spotify is suinghem in europe because they want 30%? no one says you have to go to apple. no one says you have to go to google >> that's hideous. there is a long line to get to the top of that. >> concerns of overall demand for the iphone >> i lean look mean whchina, yo service industry, that's under attack that it is great new hope after the phone cycle -- >> it is very cheap stock. i think it is downside i think the idea that this company written off because of china is a mistake i know that the president wishes that tim cookpro pro-chi pro-china. >> apple is not going to move their production of iphones to the united states. that fantastic team is no worried about the team fantastic display, amazing fantastic. >> the developers' conference? >> yes did you see the new watch? >> i don't have the old watch. maybe i will take yours when you are getting your new one oh, you don't even have one. >> i bought the new one, this got very hot and died. i had to get a new one, i just bought it. >> it got hot.

spotify did it successfully. slack is doing it.f there works, there's a question on whether airbnb, the next ipo on the docket in the future, there's a question if they go the same route it has a huge implication for wall street, wall street fees and the ipo structure. >> andrew, good to see you we'll check back in with you in a few minutes. let's check the markets. as joe mentioned you will see the futures indicated sharply higher today dow futures indicated up by 241 points even after the gains we saw yesterday. s&p futures up by 27 the nasdaq up by 97. wall street sort of baking in this idea that rate cuts are coming next month. look at treasury yields. if you check out what's happening with the ten-year. wow. the yield is almost 1% 2.009. >> it was earlier this morning 1.99 >> 2.009%. we'll watch this closely today today could be the day that we see a one handle gold prices surging to the highest level in more than five years as all of this is playing out. gold supis up 2.8% overnight in asia, you can check out the markets ther

shares of spotify higher despite a downgrade to under perform from in line at ever corp.hat firm saying spotify revenue estimates are achievable but grows profit expectations may be too high >>> ubs upgrading hostess. new breakfast products, new production capability and reduced debt >> that's being very specific. jeffries upgrated deere from hold said farm fundamentals finally the turning around the firm predicting double digit growth for large equipment for 2020 >>> anything on spotify? >> it's up 24% since the may bottom, right? so expectations have actually been elevating as we've gone through the year there are legitimate concerns about publisher rates and grows margins and competition and that sort of thing. i get it it's had a nice recovery off the bottom it's not a bad thing to take some profits i don't disagree >> what's this runabout, the new netflix for audio? didn't we talk to dan about this >> we did. what in term of the podcasts and their move very aggressively into that area >> that's what's driving the stock. >> it was some time ago they announced those in

slack has followed the path of spotify.shares, rather than a traditional listing. what that means is they're not going to be selling any new shares, not going to be using the help of underwriters but they're going to directly list their new shares on the exchange. spotify did that as well. >> live from london, thank you. >> jim vandehei has a look at this morning's "1 big thing." and the latest on that breaking news overnight as u.s. officials confirm a u.s. military drone was shot down in an unprovoked attack by iran. former nato allied supreme leader james stavridis will be on the show. >> and what joe biden is facing after citing his work with segregist senators. "morning joe" is on the way. segregist senators "morning joe" is on the way. fisher calls regularly so you stay informed. and while some advisors are happy to earn commissions whether you do well or not. fisher investments fees are structured so we do better when you do better. maybe that's why most of our clients come from other money managers. fisher investmen

the last big one was spotify almost two years ago. so what's the message here?is a better instrument, a better vehicle for becoming public because it achieves two things. one is better price transparency, which investors want, and separately, as lower fees, which companies want. because of that i think this is an undeniable trend. there are such large forces in place around ipo process that it will take, in my opinion, a decade before we see half of the companies doing direct listings, but this is only going to increase. >> right. you know, it's hard to say this is a trend. we saw one last year. one so far this year. we spoke with the partner at -- venture partners who like you thinks it should become more of a trend. >> very few companies have attempted this and it's a small class of companies that can pull it off in the current construct but it suggests very good things for trying to do more of a market match for these ipo's as opposed for the pops that happened with the other companies that went public this quarter. >> they are preparing. they are looking at

the last one we saw was spotify. a mechanism for liquid at this for existing employees and investors. so that may be the case. but it comes with a slightly less predictable first day of trading. it won't open at 9:30. it takes a couple hours typically. lauren: volume might be low. >> correct. it is dependent if people want to sell at the expected price. lauren: you use flack at fox news. >> yeah. lauren: some people complain it's a little confusing but other people say, no, this is the future, this is going to replace e-mail. how bullish are you on its prospects? it's still not making money. >> it's still not making money. it's one of many choices in that space of that real-time collaboration tools. there are some high end tools that are very specific to audiences. we use a program in the newsroom called i-news that everybody uses. it's a love to hate software program. it's something you have to use and it's terrible and -- but yet -- lauren: tell us how you really feel. >> yet, you still use it. flack, it has -- as

you know spotify dominates it worldwide. steve jobs for all his greatness.drunk when it came to music while on it versus rent a look at the amazon music see that on my their tracks when i use one as you mentioned people die is it just me that's here. fothat it is true. >>subscription services are more popular in amazon music has to play. but it was a but whereas when it came up to and i still you i tunes back of my phone to keep the place pay for cloud storage you have the to kill a is google for that too was free with the google story strive thing can we get to a question should we have a viewer who is asking about gopro go pro stock is soaring is it too late. >>to buy. yeah pros >>predicts tinker with stocking its ferry company last year was such a disaster for the company that this year it's having a pretty good year and people start maybe i like buying stocks that have broken fallen apart, even if they have a short lifespan of they look sexing now i think in the end it's a camera irt came out know the goal present and why not any more just. >>it's good i

this follows years of stricter , currentlyin the eu investigating a spotify complaint against apple.> they can set the rules for how competition works on that platform. it has to come with that responsibility. the responsibility not t to use the power to undermine competition. --the eu has fined euro google more than 8 billion euros. probes could takake years. they raised the possibility of companies being broken up, find, or restricted in how they do their business. anchor: the next negotiations are underway between the u.s. and mexico as donald trump on importsariffs unless more is done to curb illegal l immigration. >> m mexican officiaials have preempmptively rejected the idea that mexico has granted asylum to thousands of refugees headed to the u.s. rise as highould as 25%. the major threat to a mexican economy sees 80% of the exports across the northern border. cost $17uties would billion have threatened the likelihood of ratifying the u.s.-mexico-canada trade to. -- trade deal. terrace is imposed ---- tariff is imposed, the impact would be over $4 billion. this is approximatel

spotify ended its first day of raidi trading about 13% above its reference point. >> the prevalence ofhese secondary markets and the about for early investors to make some money before these companies actually go public, how is that contributing to what we're now seeing as a little bit of a rise of these direct listings >> it's a good question because one of the main purposes of these direct listings is to give employees liquidity. the problem with the secondary markets oftentimes is they just aren't as liquid as what we see in the public markets. there aren't enough people, enough buyers and sellers to come up with a price that people oftentimes believe is mostly reflective of the company at each day and time, and so this gives more people the opportunity to do that it's also more difficult to control in the secondary markets, i think, for companies, and as well as for employees a lot of these unicorn companies don't let their employees sell in the secondary markets if they want liquidity, it has to be under that kind of more controlled mechanism. >> do direct listings open earlier on

spotify said it's unfair that apple takes a 30% cut of most purchases made through the app store. says it puts competitors at a disadvantage and apple said they're reasonable we are seeing lawsuits in the u.s. from app developers on this same issue finally, look at antitrust action against amazon here in april italy launched a probe into amazon. this is for possible abuse into the logistical services. that's an top of antitrust probes in germany and austria, as well as the european commission so one key point here is that regulators generally have taken the approach of fines and mandates to change business models versus ordering big tech to be broken up. that could set up a debate in washington where many lawmakers are pushing for the breakup approach brian, back to you. >> thank you very much let's dig into the trillion dollar technology fight. the ceo of the patriot organization specializing in tech and media i'm going to say it this way all i can think about, eric, is that samuel l. jackson line in pulp fiction i will strike down upon thee with vengeance that who seeks to destr

this here and i think we're getting a little bit closer and maybe we'll open a little bit before spotify12:45 maybe a little experience helps. we'll keep an eye on this and be here all throughout the morning. back to you. >> bob, we can only hope thanks sticking with slack, let's bring in business insiders henry blodgett, an early investor in slack, and our own leslie picker here at post nine. henry, it sounds like you're impressed with the recurring revenue model. >> this is a great business. and watching it take over our company was amazing. we had a newsroom where everyone talked to each other suddenly the newsroom got totally silent and i was noticing that my e-mails took a lot longer to get responses to nobody was checking. where'd everybody go?! like, dude, you're an old man. join slack everybody's on it. so it has just taken over all the metrics look great it's an incredibly high-margin business ultimately. like atlasian, like salesforce.com and others, just an incredible business >> glenn, what is the market here d.a. davidson put out a note that says that the market is 1.5 billi

visa, master card and paypal and a number of prominent internet companies like ebay, spotify and youtuolved. they'll ensuring libra will be paid into an asset pool, in this case, the libra reserve, in an effort to keep the libra stable intangib intangible. facebook hopes that many of its more than 2 billion active users will be using libra to buy clothes, groceries and gadgets from its vendors, which leaves us with the question, which other financial transactions might be possible. joining me, msnbc news reporter, jake ward. what's your view of what this means? >> i'm so excited to talk about this with you because i know you have such a skill for thinking about how these companies think strategically. you're facebook and you think, okay, we've dominated advertising, prominent, dominant way of getting your message out to people in the united states and around the world. what else are we going to do? let's go for people who cannot get their money onto the internet. even if you have a lot of wealth but you live in africa or asia or parts of south america. >> or russia. >> or russia. as lo