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tv   Best of Bloomberg Technology  Bloomberg  March 25, 2017 11:00am-12:01pm EDT

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♪ caroline: i am caroline hyde. this is the best of bloomberg technology where we bring you all of our interviews from the week in tech.
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we were at the ibm cloud conference. in mix of $13 billion worth of business. ibm's ceo.p with the ibm cloud is the platform for a new era of business. is it isinguishes it enterprise-strong. but you have to prepare for the future and there are two more things that are very distinctive -- one is that it is data-first architecture. the third part is this idea of cognitive at the core and that is locked in.
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the other part is you have to put innovation and all the time. we announced a change on the cloud. that is what you need to do blockchain work. we announced that we are the first quantum computer available on the cloud. on thenot do this premises. bettere to have security than anywhere else. when it comes to being data first, very different than some of the consumer clouds out there. you have to be able to protect the client's insights. when you look at the consumer guides out there, they take data. it is how they monetize it.
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some call that democratizing. value of the client is in their insights. we can give them data control and make sure the data is not intermingled, but isolated. we can show you how to protect it. that is data first. the third part is this idea that it is cognitive at the core. what is different is -- a guy is a small piece of it -- ai is a small piece. of all of the data in the world, 80% is -- 20% of the world's data is on the internet. that is where the greatest value is. everyone will be cognitive. the cloud is 17% of your revenue? >> that's right.
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clientsots of our moving their businesses on the ibm cloud. banks97% of the largest in the world and run 80% of the airlines. if you take a look at all the , 90%s, 90% of the telcos of the credit card transactions come through us. the cloud is about helping them bring that into a future world. caroline: will it build your revenue? see that innd you our global technology services business. many people say that is running services for other people. that will go down. it hasn't. we have built our backlog the past two years and it has been growing. it, it is what they do around cloud. what i think is a bit of a fallacy is they will build many new things on the cloud, but they have reasons they keep other information -- they have invested in big systems and data. the big thing we have to do is building hybrid cloud environments as well as be the best public cloud.
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we are living in both those worlds. caroline: will the revenue that you are garnering from the cloud drive revenue growth in coming years? >> it will, it will. as you might've seen, you mentioned 17% of all of ibm's revenue. it grew 35%. it is. when you take a look, are cloud, our analytics revenue, including watson, that is what we call strategic imperatives. that part of ibm has been growing 14% last year. byis 41% of ibm complemented the work we do what our core franchises, which may not always be growing, but they are really important businesses. and so, we are growing in the places where we are investing to grow. we are moving with the market. caroline: china. >> yes. caroline: talk to me about the partnership with wonder.
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will you always have to be partnered with someone in china? how important will china be for ibm? >> they will be a partner for the cloud. but we have a very large business in china. we run all of ibm's business there. we have been there well over 35 years. over 35 years in china. very well-established brand. very well-respected brand. the other part of the banks there and how the banks are run. there on the most sophisticated operations in the world and require volumes better unbelievable to manage. in the cloud, what we will do is partner. they have a great attitude and agility and skill and wanting to report. and as well they have a huge business that will be on this cloud. and so, they will be a customer of the cloud in a partner in the cloud. and it will be a great footing, i believe. they have a very big ecosystem. there is the large ecosystem around wanda coming together.
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i look for to that being a very successful partnership there. caroline: still to come, marc benioff, the king of the deal, says the window for the deal is closing. that extended conversation next. oura reminder that all of programs on "bloomberg technology" are live streaming. in news out at 5:00 p.m. york, 2:00 p.m. in san francisco. this is bloomberg. ♪
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♪ caroline: we continue our coverage of ibm's made cloud focused event called interconnect. some 20,000 cloud customers and partners gathered in las vegas, and ibm discussed it is teaming up with salesforce to integrate the artificial intelligence capabilities of their two software companies. now thereby offering more , advanced data analysis. we caught up with marc benioff and when i asked what watson is , providing salesforce that it did not have internally or
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through m&a? take a listen. >> we have been able to find a work together. a great example is those crazy crazy hailstorms we had last week. you know, we manage five of the top five insurance companies. those companies want to know when that hailstorm is about to happen, and they want to notify those customers to put their cars in the garage. [laughter] the combination of ibm and salesforce let's us do that. watson is going to tell us with the weather, the hail is about to come, and we can notify those customers to get those cars in the garage. caroline: you are a company through internal r&d, was it easy low hanging fruit to go after watson? >> we have some incredible ai
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technology ourselves but it is , highly integrated into our core platform. it is called salesforce einstein and has been available to all 150,000 of our customers around the world. the opportunity of watson is to bring a general purpose ai platform that is programmatic to extend our solutions. caroline: you mentioned insurance companies. where else in your product line, where is the low hanging fruit? where is the demand coming from for your ai product? >> you can see a must every industry can be smarter, and you find employees able to extend capabilities through artificial intelligence, and with salesforce einstein, we are seeing salespeople more productive than ever before. they are able to know exactly who to call on, when to call on them, how to call on them in a prioritized way all done by einstein. that is the power of ai.
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caroline: you got such global reach. you just announced a partnership with aws in australia, significant growth in europe and asia. where geographically is eating up the desire to get into artificial intelligence? >> oh, you really see that across the whole world. you know, software is eating the world. we know that. but ai is starting to percolate into that software across the world. in fact, we are really seeing ai inside all of these different jobs and work streams. and the advances in ai have far exceeded our industry expectations over the last several years, and now vendors like salesforce and ibm can extend and complement solutions with this amazing technology. not just machine intelligence, machine learning, but deep learning as well. you probably saw two weeks ago, coca-cola announced with us that they will be building these coolers that have cameras in them. and the cameras can do real-time inventory management, so you know what is happening inside
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the cooler, so as people take those cokes out of the cooler, trucks are automatically rolled to the stores knowing they have to replenish supplies. caroline: you mentioned disruption and jobs will be significant. what does it mean for your bottom line? what does it mean for your topline revenue growth? whether it is einstein or watson, what does ai built into that? >> salesforce is one of the top five software companies in terms of growth. you saw that. we just delivered a phenomenal quarter. it is the best quarter. you saw our deferred revenue hit $14.5 billion and 28% for the quarter. that exceeded our expectations. and a lot of that is driven by ai and other major trends, including the cloud, social networking, mobility because our customers are moving to those four trend and we need to align
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, salesforce with those four trends to get growth to happen. that is how we have created extraordinary growth. caroline: crm is where it remains? >> well, you know crm is the fastest growing segment and will be the number one segment by and we are the number one vendor 2020. in crm. so we are uniquely focused on sales sales, service, marketing, community, analytics, commerce as well. caroline: you mentioned how ai will be affecting jobs -- does the united states realize how much this'll make people lose jobs? status of $64,000 question. that is why went to washington. i am focused on that issue. the workforce will dramatically change over the next 1-2 decades , and it will be driven a lot by artificial intelligence. and that is why we need to start retraining in new types of job development before this technology hits.
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moonshotfor a apprenticeships in the united , 5 million states based on the things we learned from countries like germany and switzerland. we can bring that to the united states and improve the quality of our workforce, and i hope the u.s. government listens and creates that moonshot. caroline: do think everyone can be retrained at the end of the day? >> absolutely. i mean, there are so many vehicles to educate people, especially in the united states. there are phenomenal opportunities, community colleges, universities, k-12 systems. but also, you see a lot of workforce development programs already. there are so many people ready for these next-generation jobs. i look at the things we are doing with veterans using salesforce. on the bigger picture, salesforce will create 2 million jobs and add $400 billion to the gdp by so we are really focused 2020. on creating these new jobs and getting people ready for
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salesforce jobs, and i think creating platforms for that is so important. apprenticeships are the key, and also automation and one-on-one. caroline: you are looking at hiring and growing an awful lot. i have to ask -- you have been an acquisitive company. case of themain the valuations remaining for an acquisitive company? >> last >> last year, i was super clear i thought there was a window that was really open for m&a activity, and we bought a phenomenal company, demandware. that is the number one company in commerce. adidas will do $1 billion to $2 billion in e-commerce on the salesforce platform this year. and we have amazing companies like quip, which is this amazing productivity tool. well, a lot has happened, as you know this year. the markets are roaring, so the m&a windows have narrowed.
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and because a have narrowed i , don't see us doing a lot of m&a this year. caroline: that was salesforce ceo marc benioff. coming up, uber held a conference call this week after a string of scandals that the company's arianna huffington says changes must start at the top. we will have the details, next. and tech giants around the world are doing everything to avoid being hacked. that includes china's baidu. we will tell you how they are combating hackers, next. this is bloomberg. ♪ caroline: now it has been quite
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the week for a uber. in response to continued hr crises, the ride hailing giant held a rare conference call to update on its efforts to fix an internal culture rocked by a long succession of scandals, which is scandals?
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welcome to the exodus of jeff jones and three high-level employees. of course, the sexual-harassment scandal. eric newcomer was on the call and joined cory johnson with more. >> they advertised it as we are not going to make any news. they said they would have a diversity report by the end of the month. eric holder's report on their sexual-harassment problems would be out by april. you know, they make commitments to working on the organization. their head of hr said they had the cold of an individual -- they had this -- they had the cult of an individual and needed to change that. >> they referred to their own organization as a cult? >> that becomes excessive and creates this culture where one superstar is more important and the team. cory: companies have problems.
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some of these problems might be extreme and unusual, but the airing of the dirty laundry and working out publicly does not seem like a uber we know. >> it is a company that consumers have a close relationship with. so there is a big obligation to own up to their does customers. to their customers. it is a ride people are taking every day and need to explain to riders and drivers what they are trying to do. writers were a big theme on the call trying to say they are , going to improve the product to make their lives easier. cory: when you have an asset-less business, where you don't own the stuff, you're demanding the attention of customers and providers of the service. with competition out there, these guys are leaving cars every day. >> what people forget is that uber wanted to start this year
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upset with ranting. that is why jeff jones was a marketer. they hire target's chief marketer. it was supposed to be all about brand, but it has been destroyed the first three months of the year. rachel holt, one of their top executives -- cory: we have a quote from the call. this is jeff jones. the beliefs and the approach to leadership that guided my career are inconsistent with what i saw and experienced at uber." that seemed like it was referring to something that went down. bitingas a pretty comment. clearly, he disagreed with travis, the ceo on a lot of issues. a couple of them. one was how drivers were treated with tipping issues. he supported tipping drivers. the other was safety on the platform. yet concerns about -- he had concerns about -- their leasing program encouraged less safe drivers to join uber, so there
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were clear debates within the company in which they seem to be taking different sites. caroline: now to a company out with earnings this week. tencent posted profit that missed estimates, and tencent faces rising competition in the mobile gaming market. the company is revving up its battle with alibaba. adding more. we spoke with our bloomberg technology reporter. barely missed on earnings and revenue because this cost of revenue jumped actually 60% from a year before. investors are ok to take a hit on the profit margins at this point because they are seeing a lot of growth and other revenue streams. they are not just rely on their old growth engine of mobile gaming, but they have been expanding into cloud computing, mobile payments, into a lot of new content in the video business as well. caroline: i mean when you look , at profit up 40%, most people
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would die for that number. give us your sense of video and cloud. is this really where we are seeing the losses come in? >> on >> on the earnings call management reiterated wind video , is so important. there are significant losses in that business, but they are putting in billions of dollars to acquire and make content because they realize taking a loss in the short term is worth it. videocassettes and important way to make advertising dollars, to get subscription dollars and to hone people into their ecosystem. good content tries users, and like amazon, they know content will drive more people to their platform. caroline: i am fascinated by the new mini-programs, and app within the app to order cars, food. how much is this catching on for wechat?
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how much is a threat potentially appome of theapp -- the stores? >> >> the rollout got a lot of attention because it seems to be a potential threat to apple and the app store. they did not give a ton of details. they did say the purpose is not to monetize it, but make it easier for users. they use the bicycle sharing program in china as an example. you can scan a cody and then the chat pops up. they say this type of ecosystem building has created more downloads within the app store as well as within the mini-app. it is a pre-barrier of entry to download something. this way, someone can access something without leaving wechat. if they really like it, they will downloaded, too. caroline: with companies facing increasing security threats, most tech giants are taking increased measures to prevent a data breach. this includes baidu. the company has revealed the
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steps it is taking to combat hackers. bloomberg's tom mackenzie has the story from beijing. tom: baidu's head of cybersecurity knows he has a fight on his hands. he says hackers test baidu's defenses every minute of every day. the most serious case was a team put together to steal baidu's prized automated driving technology. >> it is difficult to know who hired them to do that, but we know someone tried to hire someone on the ground to steal it. tom: cyberattacks can come from hacking and from international angs. baidu has responded by boosting its security team and backing what might be called ethical hackers, like the blue lotus team. >> now you are taking control of
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my phone. tom they showed me how they can : open up my phone. >> i will test out one website. and there we see hacked by blue , lotus. tom supporting these guys is one : way to keep china's best it minds on side. and the professor says there is a growing demand for ethical hackers. >> they probe for weaknesses that can be dangerous and then report them to companies like apple and google. tom: baidu has teamed up with tencent and alibaba to go on the offensive. , andey are on the ground the industries are getting bigger and stronger. other.ust help each we are not enemy. zero enemy. they are the enemy. tom: the threats are only expected to increase, and china's tech giants are gearing up for the long haul.
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tom mackenzie, bloomberg, beijing. caroline: still ahead, google's at crisis spreads with some of the biggest marketers halting spending. we will bring you all the background next. this is bloomberg. ♪ the biggest week in tv is back.
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something for everyone is awesome. find your awesome with the xfinity stream app. more to stream to every screen. caroline: welcome back to the "best of bloomberg technology". i am caroline hyde. google's advertising crisis has gone global after the biggest marketers halted spending on youtube and the company's display network. the controversy around it after the london-based newspaper reported some were running with youtube videos that promoted terrorism or anti-semitism. institutions including the u.k. government and the guardian newspaper took down ads. this week, the crisis went global after marketers including at&t, johnson & johnson halted
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spending on youtube as well. google tried to head off the backlash by implementing new tools and policies and many advertisers were waiting to see details or results before placing ads again. we dove into it on bloomberg technology the area >> there are a couple of things. one is the political climate. there is sensitivity around fake news, hate speech, and terrorism. there has been this growing noise about google and facebook and the control they have. marketers are pushing for uniform measurement standards and third-party audits. they see an opening and are seizing it. caroline: jp morgan also taking ads off of youtube. it continues to spread. brian, first to you. you downgraded alphabet to hold on the news. you worry was this could have global repercussions. he clearly does.
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how much do you worry about the stock performance going forward? >> i think it is subject in small part, if not a major part, to headline risk. you will see more brands demonstrating their concern and announcing they will be pulling their ads from youtube. unfortunately, so far, google does not appear to understand the gravity of the situation. it is on some levels mind-boggling, but also not surprising because it is google-ly. this will continue for a while. they will solve it eventually. when i meant the repercussions would be global and have an impact on their business, it is not about the boycott. we will never notice that. we will never see it in the numbers unless it did persist for weeks on end. what will happen to us every
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advertiser will have a conversation with google that is not focused on what the strategy should be using search to enhance brand building, how to think about moving money from tv into digital into youtube, not on how to shift spending from google into facebook, the conversation will be about brand safety. google is on the defensive for the next 3-6 months for any conversation they will have. that will have meaningful impact to expand their business at the pace they would have by the large brands serviced by agencies. caroline: let's look at the display ad business and youtube it is affecting. this is not the search business. this is not the major cash cow. how does this affect advertising spend generally? >> just for a little perspective perspective,ittle
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search is google's bread and butter. it represents three times what it spent on video on youtube, so search in the u.s. is about $37 billion this year. 78% of that is on google, so by far the dominant player. if you look at video advertising is $12.5 billion, so again a 1/3 of what search represents over all, and google has about 20% of the u.s. digital video advertising business, so we are talking about big dollars. this does come at a critical time for google. as brian was saying, they are trying to expand the conversation, draw those tv advertising dollars, trying to present themselves as more of a haven for tv-style advertising. the search business is something they have been doing and know how to do. it will continue. they know it better than anybody
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else, but video, certainly google and youtube have a major presence, but there are other players who are vying for those same advertising dollars, so the stakes are high. caroline: you have been nodding your head through out. brian called this google-ly. perhaps a lack of reaction. we have heard from eric schmidt and the chief business officer. why are they not reacting faster? are they not taking it seriously enough? >> to be fair, brian is the only analyst who has downgraded this. the others are shrugging this off. this will not have a material impact on the revenue. maybe there are not expectations this will change that caliber of the conversations, but google has weathered this before. they are not really panicking. maybe they should be. we have to think about the fact that a lot of advertisers don't have a lot of other options. where else are they going to go? they may go to facebook, snap, a new advertising channel
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verizon aol, but google is still , the best bang for their buck. caroline: coming up, snap trading, a volatile start, and analysts can't seem to get behind it, now two analyst are breaking from consensus. out with buy on the company. we will hear the calls next. this is bloomberg. ♪
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caroline: a story we are watching, ant financial considering a higher offer for money gram. in january, china-based ant financial announced its plan to acquire money gram pending regulatory approval. last week, euronet made an
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offer. it is likely ant will make a down to ring offer. instagram is expanding into booking and reservations. the application will allow users to set appointments with bars and restaurants by clicking a button within the business' instagram profile. it will measure the power of the app and could pose a challenge to companies like opentable and yelp. now to instagram competitor snap. , while its highly anticipated ipo came with fanfare, it also brought a lot of scrutiny to snap, which has been slowing its user growth. since snap went public, not one analyst gave the company a by uy rating- a by
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until this week. one analyst was the first to initiate coverage with a buy rating and $25 price target. then another analyst followed suit and shares gained 9%. we caught up with him on monday after he casts this outlier view along with cory johnson. >> what it boils down to is three things. innovation on the camera. we have not seen that much innovation since the actual invention of the digital camera and 1975 aside from pixel quality. as they push on hardware and software, it they will be an a position to take over the camera app over your phone. that is the hook. the money will come from premium content deals where they offer a differentiated mobile optimized experience, where with competing platforms it is plug-and-play. if you have a differentiated one, you can separate your self
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from the pack. lastly, incentives. if they move towards a tv-type affiliate model, the financial incentives of the content producers will jive much better with the experience and interest that the in do users are looking to face, and when you have that balance, you will be in a position where the rpu revenue will grow at a 60% rate. caroline: cory, respond on that. aere are a lot of needs and lot of concerns. cory: what's going on is the question is how much revenue can the user support? it is an interesting problem.
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how many ads have they not yet put on? and can they sell that inventory? is facebook and google sucking dollars forf the ad online advertising there is a drone for other outlets? that is an unknown question. the other big issue is this head to head competition with instagram. when instagram launched instagram stories, the genetic -- the dramatic growth snapchat had seen fell off a cliff, and cameras will not make up for that. fundamentally, they will have to sell ads to get the platform to grow, and it looks like instagram stories is preventing that from happening. we will know in a couple of quarters if they can grow in this business or not. right now, it looks like they are in trouble. caroline: james, respond to that in terms of the competition out there. can snapped create a new model and get content that has not been designed for other users
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, create something different, and make money at the same time as facebook and the like? >> i will have to fundamentally disagree. cory: what? how dare you. >> what facebook is trying to do , and doing really well at it, is direct response, getting the conversion right there. how do they do that? it is based off hyperbolic content and what is called click bait. it is a revenue sharing model. the more clicks, the more revenue you generate. what snapchat is trying to do is replicate television, where it is about brand dollars and affinity. you compare the facebook and snapchat dollars. facebook is about 30% of the ad market for digital and direct response.
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the television dollars is 40% of the $600 billion ad market and they have not moved over to digital at all. why haven't they moved? the ad products and experiences on mobile do not jive with the marketing goals these companies have, because they are not holding and affinity for crest, coca-cola, so if you can create tv-like experiences with premium content, which facebook is not willing to pay for and snapchat is, in a curated way, you are in a position with those dollars come in a much more meaningful way. it is not fighting for dollars, it is winning new dollars stuck in television. cory: in the technology business is we have seen the big companies are bigger than the number two players. intel is bigger than amd. google is so much bigger than any other search engine can dream to be. facebook is bigger than any other social media.
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they are fighting over peanuts week as they do not have the network effect p.a.d. can see the slowing user growth. revenuest help their and a small way, but fundamentally they have to change the user growth number. that has not happened. >> the user growth has only moderated in the second half of the year. yes, instagram did slow it down, but ultimately where are the users growing? the most affluent, dominant, tier-one markets in the world. facebook is growing from around the world and lower value users are the incremental users coming to the platform. if that is the case, where you own the most apple users in the world, 70% of the ad dollars are contributed. if you can shift those dollars overcome you can move it in a very meaningful way.
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caroline: now fast food giants have placed big bets on technology with the aim of getting a competitive edge. both well-known and upstart restaurants are getting in on the action. >> the automation wave has arrived, and it has whetted the appetite of your lunchtime favorites. mcdonald's is the latest company to take advantage. the burger chain has begun testing mobile ordering and payment in u.s. cities. it says all its restaurants will be equipped to handle mobile preorders later this year. the creator of the big mac is late to the party. other fast food chains have adopted this technology to boost sales. domino's is the leader here. for the past five years, the company has been emphasizing all the ways you can order pizza with minimal human contact and maximum digital contact. it has introduced ordering methods through facebook,
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twitter, emojis, and the apple watch. as the company builds its tech credit, it has seen financial results. since 2008, domino's the share price has increased 60 fold. the company is now worth $9 billion. starbucks also an early adopter. in the u.s., mobile ordering is 7% of all company-owned store transactions. however, the company may be a victim of its own success. customers who order drinks and food on their phones to pick up in-store are seeing longer lines, resulting in traffic and lower sales. one san francisco chain may offer a glimpse of the fast food future. it is a highly automated food chain where ordering takes place on ipads or mobile. you pick up your order on a wall of glass door cubbies. there is no need for cashiers or servers, just a few human hands
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working behind the scenes. the core premise is maximizing efficiency. all the evidence is showing we are marching towards a fast food world where human intervention is optional. caroline: coming up, we catch up with the fitbit ceo james park as the country rings in its 10th anniversary. digging into the mounting challenges facing the come any. if you like bloomberg news, check us out on the radio. you can now listen on the bloomberg radio app, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪
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caroline: fit it is turning 10, and the last decade has been anything but a walk in the park. five years ago, cory johnson took a walk with the then private startup ceo james park. 60e years on, one ipo, million products later, the two took another walk on the streets of san francisco. >> when we talked five years
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ago, you said we are software guys making hardware. >> when we started, we did not think about the challenges we would encounter. we just did it. my cofounder and i, we are really software guys. never done hardware. cory: five years later, james park is sticking to that claim, even though it is the companies hardware. >> 2/3 of our engineers are hardware engineers, but it is about the combination of the team working well together that creates the magic. i don't think we can quickly classify ourselves as a hardware or software company. >> hypergrowth may be hard to manage, but growing sales more slowly is just as difficult. >> we had a rocket ship of a company for quite some time. we shipped our first product in 2009. 5000 units. last year, we shipped over 20 million, so we have been stratospheric growth, so now we
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are moving to a different environment. so, it is a new set of issues that myself and the company face. cory: which are what? >> moving from an environment of hypergrowth to one where we have to be more efficient and focused on fixing a lot of the things that we had ignored in the past because of our growth profile. i think that is a good thing for the company. it is time for us to reflect , look at the things that are working, not working, make the right fixes, and find the path back to growth. cory: fit to first ever contraction has been painful to employees and wall street. since 2015, shares have plummeted 71%. cory: are you glad you did the offering? i wonder in retrospect looking back to the ipo, the
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negatives outweigh the positives? >> there are always negatives and positives. the positives for us are the that for the longest time we weren't well-capitalized as a company. we had hypergrowth, but our balance sheet was always pretty light, so we viewed the ipo as a financing event. we raisednt public, hundreds of millions of dollars, and it was the largest consumer electronics ipo in history, so a huge event, but a lot of cash on our balance sheet to in december we had $700 million in cash, and that gives a lot of confidence for us to operate the business going for it. -- going forward. cory: working capital? >> working capital, sleep at night money, r&d, m&a, they give s a lot of flexibility and security to the business. cory: when you look at the stock price, stock prices stock price, but what does that mean for you and the business plan in keeping the high margins and the other
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re.isions you have made thee if you lower prices and cut margins, but you chosen not to do that. why is that? >> pricing is something you cannot reverse from, so we want to make sure people really value our products, and maintaining pricing discipline is an important part of that. we do invest a lot in significant, innovative, and original research and development, and that is something we want to continue. the stock price and public investors, that is all very important considerations and how we run the business. input.o one what shareholders would like to see is us properly manage the short interest, but also look at the long-term. i hope we are able to do that as a business. cory: fading customer demand caused fourth-quarter revenue to fall 19%.
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they announced a restructuring plan, taking a $4 million charge and laid off 110 employees, so how does fitbit plan to turn it around? >> we are going to streamline our product portfolio. we have too many trackers. more importantly, a focus on coaching, guidance, personalization. the later adopters want solutions rather than data and tracking. we want to move into adjacencies like smart watches. the acquisition of pebble and vector played into that capability. a move that will double our addressable market. i also hinted that there are form factors beyond the risk as -- beyond the wrist as well, and as part of our restructuring, we are looking at the business in
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2 perspectives. consumer, but more importantly, enterprise health. already targeted employers, but starting to target, in a focused way, insurers, and other partners in the health care ecosystem. they will be incredible opportunity for old recurring sales. tied to health plan. ory: inspiring sales and getting customers on their feet. what if someone would -- what could someone have told five year younger you. >> and a lot of challenges would be easier to manage because you are not being judged on a day-to-day basis. a lot of the things you have to do to chart a path back to growth and profitability are definitely harder in the spotlight. what i think about on a daily
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basis is how we transform fit it into a product that is kind of nice to have into something that is a must-have, and a lot of that will come into how we integrate into the health care ecosystem. caroline: that was fitbit ceo james park and bloomberg's cory johnson. in this edition of out of this world, elon musk is no fan of the new federal law that authorizes $19.5 billion for nasa. president trump signed the bill and it included for the first time human exploration of mars, something musk has publicly championed. yet elon musk pointed out the law does not include additional funding for mars. he wrote "perhaps there will be some future bill that makes it different from ours, but this is not it." on monday, we hear from bill team. the nasa transition
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all episodes of bloomberg technology i live streaming on twitter. check us out at @bloombergtechtv. that is all for now. this is bloomberg. ♪
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>> coming up, the stories that shaped the week in business around the world. a shocking attack rocks london. the health-care battle continues in washington. the u.k. and the european union set dates to deal with brexit, and the trump trade hits a speed bump. >> it is like someone flipped a switch that said hands off. >> explaining why he held out against a rate hike. >> the data is moving sideways. i am asking, what is the rush to raise rates? finance ministers pushback against protectionism.

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