tv Bloomberg Technology Bloomberg July 11, 2017 11:00pm-12:00am EDT
alisa: i'm alisa parenti from washington. you are watching "bloomberg technology." president trump said he supports his oldest son in a statement read today by white house deputy press secretary sarah huckabee. the president called his son a high-quality person and said he applauds trump junior's transparency. trump junior also posted emails regarding his meeting with a russian attorney. senate republicans will unveil the latest version of the revised health care bill thursday with a vote planned for next week. that's according to mitch mcconnell, who said he would delay the upper chambers august recess for two weeks.
a dozen republicans oppose or challenge the bill. the president's fraud advisory committee is suspending its request for state voter information. that is after 44 states refused to hand them over. it will wait for a federal judge to rule whether those requests violate privacy laws. thousands packed a bronx, new york church in honor of a slain new york city police officer miosotis familia. the mother of three was shot to death while sitting in a police vehicle. she was posthumously promoted to detective. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm alisa parenti. this is "bloomberg technology." ♪
emily: i'm emily chang. this is "bloomberg technology." coming up, trump junior's show and tell. the president's eldest son takes to twitter to mount a defense on the latest email scandal to hit washington. we get the latest from the hill. plus, dick costolo's comeback. the former twitter ceo returns with a -- to the startup scene with a new focus on fitness. he joins us for a wide-ranging interview from everything from twitter's newly hired cfo, to the culture in silicon valley. amazon echo hits all the right notes on its way to the top of prime day's bestseller list. how the tech giant double down on the discount bonanza to push the digital assistant into more homes. first, to the lead. that is the email bombshell coming out of washington involving president trump's eldest son, donald trump junior. trump junior used his twitter account to reveal a series of email exchanges with a british publicist, showing he was promised damaging information about hillary clinton at a meeting with a russian lawyer during the presidential
campaign. donald trump junior said in a statement that he had released emails "in order to be totally transparent." president trump came out with a response through spokeswoman sarah huckabee sanders, that trump junior is "a high-quality person." joining us from capitol hill, however white house correspondent kevin cirilli. give us the latest. reporter: the white house is defending donald trump junior today, including the president himself through a deputy spokesperson, sarah huckabee sanders, saying donald trump junior is a "high-quality person," but i've spoken with several lawmakers who are pressing for more answers, particularly on the eve of the -- of a christopher wray's testimony before the senate judiciary committee tomorrow, to be president trump's announcement to be fbi
director. senator john cornyn, a
republican from texas, said donald trump junior should in fact testified before the committee. i also just interviewed house freedom caucus chairman mark meadows, a republican who says , he hopes the special prosecutor robert mueller will be able to get to the bottom of this. i apologize, special counsel robert mueller, will get to the bottom of this. he was echoed by senator marco rubio, saying the investigators do need to look into these new emails. emily: so what are the next steps, and how does this affect the special investigation? reporter: i can tell you that there will be poignant questions at the hearing tomorrow on this to christopher wray, particularly how he plans to take up the ongoing investigation into whether there was any kind of relationship with the russians and the trump campaign. we should note it was not just donald trump junior at this meeting. it was also jared kushner, the president's son-in-law and
senior adviser, as well as paul
manafort, who has been the center of this probe for quite some months. that was the president's then-campaign manager. expect to hear not just from democrats tomorrow, but also republicans. emily: our white house correspondent kevin cirilli, i know you will keep us updated throughout the day as that unfolds tomorrow. a new hire at twitter. segal as chief financial officer will be effective in late august and will report to jack dorsey. he will soon resume the role of cfo from anthony noto since adam bain left the company. for more reaction to the story, we are joined by dick costolo, former ceo of twitter. for more reaction --
he's now the ceo of chorus, a new company aiming to disrupt fitness. what timing to have you out today. >> literally five minutes before i got out of the cab. totally unplanned. emily: so is he a good choice? >> i am sure he is a high-quality person, in the parlance of the day. i was just riffing on the news story. that was funny to me when i thought of it. [laughter] as i said many times, i have a lot of confidence in the team over there. i'm sure he's a great addition to the team. emily: we know twitter had a strong quarter with growth, but they reported their first quarterly loss. do you expect any change in strategy with the new cfo? >> i couldn't say. but those guys are pretty focused and have been clear about what they are working on. i would expect that to continue
as long as they are promoting it. emily: what would you think the new mandate of a cfo would be? >> i think it's probably anthony taking on a day-to-day operating role, and moving fully into the coo role, and they need someone to backfill into the cfo role. emily: let's talk about the trump administration. there's been a lot of noise. i'm curious from someone who has started many companies -- >> many, many companies. emily: what is it like starting a company under the trump administration? is it different? >> this feels that the question you should ask when we are walking along the pier. tell us what it is like now for you. to be honest, it's not that different when you are in the day-to-day trenches of running a startup.
you are focused on hiring pipeline and trying to find the right people on the team, and trying to get the bugs out of the data, and performance of the data better, trying to understand user dynamics. i would say that to be perfectly frank on a day-to-day basis, it doesn't really affect the way we think about what we are doing. emily: tech leaders largely came out against trump, so we haven't yet seen some of the results of the policies he has promised. we do know it appears to block start of visas given to entrepreneurs from foreign countries. how big a deal is this? >> to be blunt about it, i think it's a sign he's not paying much attention to what tech leaders are talking about. i can assure you they are promoting that idea. it promotes job creation in the u.s. you want the best entrepreneurs starting their companies and building future big businesses here and hiring people here, not
doing it elsewhere. to the extent that you can attract them here and enable them to build companies here and thrive here with a great access to capital. a nourishing of entrepreneurship we have here. the more of that, the better. i think it is unfortunate and probably a sign not having been , in those discussions, it's paying lip service to tech leaders. emily: we've seen stock take a bit of a hit in the last couple of weeks. they also take a hit today in the wake of another email -- presidential email scandal. so what would you be bracing for the public? >> i thought for a while that the markets had an underpricing risk with everything going on in the world, not just this. things in europe and elsewhere in the middle east.
i would continue to be bracing for what i would have expected by now to be a lot more volatility. looking at what is going on i , would be surprised if it continues to be the case for an extended period of time. emily: how about in the private markets? >> it has been the case recently that these very late stage private market valuations of company staying private for 6, 7, 8, 10 years now and of being -- end up being much higher than when the company's debut in the public markets. that's probably going to continue to be the case in the near-term, meaning you will see companies go public in 18 and maybe early 19, whose late round private valuations were much higher than the initial public valuations.
i don't see that changing anytime soon. i see continued, lots of money in the private markets chasing few deals, which drives up the price is, and when they finally see the light of day in the retail markets, it's sort of probably, rightly turns out to be they are not worth as much as the last private rounds were. emily: former twitter ceo dick costolo, we will continue this conversation after the break, and talk more about what you are working on now. lots more coming up. a quick reminder that "bloomberg technology," is live streaming on twitter. check us out at 5:00 p.m. in new york, 2:00 in san francisco. p.m. this is bloomberg. ♪
after closing just below its ipo price on monday, it continued its decline, falling nearly 9% today. snap was downgraded by morgan stanley amid concerns over competition from instagram and the ability to grow as fast as expected. the market cap of about $18 billion stands in contrast to the high-end valuation target of $40 billion, one person described back in october. we are back with dick costolo, currently the ceo of chorus fitness, and former ceo of twitter. what's your outlook on snap? >> i have said for many years evan is the best consumer product think are out there. he has innovated over and over again, with stories, then spectacles, now geo-filters that my son and all his friends use
all the time. i think he is a remarkable consumer product finger. the challenges for these types of companies include -- in the consumer digital advertising space facebook has just got lots , of the cards. they had volume, they have targeting, their ability to deliver quality efficiently, hyper efficiently for advertisers is so great that it makes competing in that space difficult if you don't have that kind of scale, and the other advertising tools at their disposal. that will be the challenge for them. it will continue to show interesting and fascinating consumer insights that will probably continue to be copied by others. they will have to try to figure out how to outflank bigger players like facebook.
emily: that said, growth is slowing, facebook is copying features across all its platforms, messenger, whatsapp, instagram, and potentially blocking future growth in international markets. you had to contend with facebook at twitter. can snap overcome that? >> it is a challenge. there's no question. the advantage evan has is he is a remarkable consumer product thinker. the fact that he launched spectacle when he did, in the waving google glass aside -- emily: spectacle took off momentarily. >> as a consumer product in the digital space, as an innovator, he has launched a number of tech -- a number of successful products. he had had a number of insights that have been wildly different than anything else. if he has the ability to continue to do that quickly and monetize on the heels of those innovations, that's great, and probably their best bet.
you mentioned a big important challenge. it is an extraordinary challenges facebook and continue to present opportunities as, we have the same thing, but with a bigger audience, to advertisers, that is tough to compete against. emily: silicon valley has been rocked the last few weeks by relevant -- revelations of sexual harassment claims. the uber ceo resigned. funds have been closed. women have come forward about sexual harassment from vc's. losses have been filed. what is your take on the bro culture problem in silicon valley? >> i don't mean to trivialize it, it is a problem, and i think it is probably, actually understated and underreported. it's probably way worse than we've seen so far.
to be blunt about it, i think in a lot of cases the investors in some of these venture firms are simply ignoring it and maybe paying lip service to it, but ignoring it, and funding some of the enterprises anyway. it is widely understood that some of these issues were things that had been said in the background, and yet new funds were raised, and on and on. until the capital being committed by these lp's to the venture funds start to take it seriously and invest in more directly in women running the funds, and maybe gender specific funds, or people of color funds, you will continue to see lipservice paid. when push comes to shove, the money is flowing into these anyway. even when they have heard about some of these things. emily: we have seen a lot of long-winded apologies.
do you buy it? >> i mean, it is hard for me to comment on that stuff, because, you know, i'm not in either of their shoes, either the victims or the predators. i don't know. it's weird -- it's a pattern, and when something comes out, people say, "oh gosh." you look askew at it. emily: reid hoffman is talking about a decency pledge, and a third hr function to oversee the relationship between vc's and entrepreneurs. is that a realistic solution? >> i don't think that is sufficient. that's like saying -- i love reid, i understand what he's trying to do, but the answers
seem more dramatic to me. why aren't people funding women gp's? there are certainly plenty of funds where the gp's are all men. i don't think those things are getting funded. and instead of saying to the people already in these guys-only partnerships, if you promise to do xyz, i would like to see more money flowing. there are a lot of smart women in the valley. a lot of them are in the venture business. let's enable a few of them to create their own fund and get after it. there are new funds launching on that -- launching all the time. you have people able to get funds raised with what i would even go as far as to say aren't records you would look at and say, yes, i'm going to find that new venture. there are plenty of super qualified women out there that i
would like to see more of the lp's and institutional investors putting their money where their mouth is. emily: quickly, i know you are very focused on hiring women at chorus, and at a smaller stage making sure it is 50-50. what is your vision for this company? >> it is a social fitness platform. our vision is that in the real world the way people get healthy and live healthy is through social motivation and social accountability. online, most business platforms are one-on-one. here's a program for you. then you do it and try to keep yourself motivated in isolation. chorus is about getting a team of people together to help each other stay motivated to do what they want to do and do it they -- what they committed to do, to help each other be successful. emily: when is it coming out? >> it is in beta. we are working on the user dynamics of it. i would say late this fall. emily: dick costolo, chorus fitness ceo, former ceo of twitter, great have you on the show. thank you. coming up, we are on the ground at the taobao festival.
emily: alibaba is taking a page from the amazon go cashless convenience store by showcasing a similar concept in its chinese hometown. our bloomberg chief asian correspondent got a look at the taobao maker festival that features other new retail strategies that integrate online with off-line shopping. reporter: the taobao maker festival is where the virtual world meets the physical. some 108 taobao vendors selling, their targets the millennial's in china on their smart phones, buying all sorts of stuff. the festival, in its second year, is doubled in size of last year's. it is an off-line showcase for
china's young entrepreneurs who built successful online shops about the crippling brick-and-mortar overhead. whether it is the latest in eye-popping design or body stocking virtual-reality combat, the taobao festival represents the new youth-driven consumer economy of china. in fact, a quarter of the vendors are those born after 1990. in this melee, the generation gap was evident. >> i have no idea what i just did. reporter: this 30-year-old knew exactly what he was doing when he started making these portable and professional folding electric guitars. >> this is the only way we could get so many exposures at a certain time. we only existed for two years. reporter: how many have you sold? >> about 1000. reporter: are all your customers in china? >> we sell to the u.s. we have , distributors there already. we just started.
reporter: alibaba is also just starting it's cafe new retail concept, targeting young consumers were more adept at using mobile wallets. it is grab and go, cashless, and and cashierless convenience. much like the amazon go concept, this tao cafe has its flaws. for example, you can't have too many shoppers inside at the same time. in the beta trial, it can overwhelm the system. but for alibaba, it pays off. it gets online shoppers to use their ali pay in the off-line world. that is data that is very valuable. emily: bloomberg's stephen engle reporting from china. coming up, one of the world's biggest cybersecurity companies has ties to russian intelligence services that go deeper than previously known. we will bring you a bloomberg businessweek report. this is bloomberg. ♪ >> it is 11:29 a.m. in hong kong
. i am paul allen with the first word news. 31 as thes named july date for an extraordinary shareholder meeting. that will happen within three months, the egm. shareholders who have exercised voting rights, toshiba is still talking to potential buyers about eight/chip memory unit. softbank is hiring a media executive for a $100 billion vision fund.
andn will join the fund moved from new york to their headquarters in california. they are trying to get control of sprint. softbank is in talks to invest in chinese bank rentals. on high denomination notes late last year has claimed to have cost to the country more than one million jobs. says 1.5 million people lost worth from january to april. the ceo says most of the losses were among young people in both the organized and informal sectors. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> i am sophie kamaruddin with a check on the markets. the nikkei 225 continuing to fall down 0.4%.
the dollar-yen retains its strength, 113.47 against the backdrop of dollar weakness. treasury yields are falling, given the dovish comments from lael brainard. bok decision due thursday. china moved it to report their bond markets. despite the surge and commodities, oil up, as well as metals. down 0.1%. signaling they perhaps the more ahead for chinese banks listed in hong kong. this is mainland investors and thing up there inflow. we are seeing the last time the 50 day moving average on an index of chinese banks across the 100 day line, shares jumped
more than 10%. this chart showing perhaps we are seeing that incident once more. the hang seng rising a third day here as ip stocks like tencent are on the up, along with ac technologies. ♪ welcome back to "bloomberg technology." i'm emily chang. we go to capitol hill, where we are joined by bloomberg chief washington correspondent kevin cirilli, who is standing by with one of the top democrat on the senate intelligence committee, in the midst of the latest email scandal in washington. kevin, take it away. reporter: we are here with senator mark warner. what do you make of all the developments from donald trump junior's emails? >> this is the first time the public has seen clear evidence that there was an attempt to offer information to the trump campaign by clearly an organized effort by the russian government. the fact that this is one more
example of senior officials from the trump campaign or trump organization who continued to deny these contacts with russians until evidence comes out, then they have to recant. reporter: senator, what is next? is this collusion -- what are the next steps in the process? >> other members can jump to conclusions. my job is to keep the investigation going in a bipartisan fashion. this is a very significant development. we are just starting on our committee on the senate intelligence committee, to start to talk to the people affiliated with the trump campaign, the individuals who were in the meeting with donald trump junior. we will want to talk to all of them. reporter: are you going to speak with him? >> absolutely. reporter: what will you ask him? >> why was he so excited, and why didn't he understand that having this outreach from a russian national acting on behalf of the russian government to provide this information, to tear down clinton and bring up
his father? anyone, even a rookie, would realize that's inappropriate. reporter: what are you going to say to republicans, john podesta did this? and other campaigns did this. >> in my memory, and never seen an example where an agent of a foreign government, and a foreign government that is an adversary, who has been massively trying to interfere in our elections. that is the consensus of the whole intelligence community, that have reached out in this way then to have a campaign , respond. any legitimate campaign official would know you don't take this help from a foreign adversary. reporter: you are the top democrat on one of the committees investigating this whole entire matter. we saw the market reaction today. the markets rebounded. what is your message? >> the markets have been overbought for a while. i'm surprised they have been as forward leaning as they have, but i think there's going to be more bumps in the road. reporter: senator, do you think they should be reacting as they
should? were they right to react today? >> i think there has been a little more smooth sailing from the markets since the inauguration. i think there's more to investigate and a lot more questions to be answered. reporter senator mark warner, : thank you. back to you. emily: kevin cirilli on capitol hill with senator mark warner, thank you. microsoft is out to make high-speed internet more accessible throughout the u.s. the tech giant announced a new campaign dubbed the rural area -- air band initiative, which will aim to eliminate the gap in high-speed internet access and the hardest reach areas in the country. this would eliminate the broadband gap over the next five years, starting by funding projects in 12 u.s. states in the upcoming year. by 2022, microsoft plans to provide fast internet to 2 million people. coming up, we speak with the head of the u.k. based luxury fashion platform far-fetched on their biggest competitor. this is bloomberg. ♪ emily: in today's revolving
-- in he's involved with putting 2013. together division funds earlier in the year. as we have been reporting, amazon prime day is upon us. the annual shopping event allows amazon's 85 million prime members to shop until they drop. the one area the tech giant has yet to conquer is luxury. that is where london-based farfetch would like to come in. the global luxury fashion online platform partners with hundreds of designers around the globe, allowing them to connect with one million customers in 190 countries. earlier, caroline hyde sat down with the founder and ceo in london. she started by asking about the use of ai and how much of a role tech will play in the future of e-commerce. >> absolutely. we use a lot of data. as a marketplace and platform, we have had more data than really anybody in the industry.
we are able to leverage that data in the way we do marketing, being more efficient in online marketing, and also how we personalize the experience of the user. that will be a key advantage if we are able to have this opportunity in the future. caroline: marketing, where do you look? is it social media-based? do the customers already come to you? >> it is a mix of everything. we do mostly digital in terms of money spent. that is across all platforms, both the western world platforms, facebook, instagram, google, and obviously the regional platforms, we chat, so we really have a global marketing capability. that was developed over the years. there is this irony that the oldest marketing ads are coming back as a type of positioning
strategy. it is across all channels. caroline: when you are looking at the competitive landscape, how do you assess it? who are your rivals? >> we are a platform company, so we are not a retailer. we don't hold any inventory. we really do not compete with any retailer, department store, or digital retailers.
our competitors are the platform companies that address consumers. some of them are in luxury fashion. like instagram, for example. we look at ourselves as a platform technology driven business. with a community behind it. that's what the competition comes from. caroline: when you look at amazon getting into every industry group, many are wondering where it goes next. you see them as a force to reckon with in luxury? >> you never know with amazon. definitely it is a large category globally. they are now one of the top
fashion retailers or sellers in the u.s. already. even compared with traditional companies. they have been very successful in fashion. luxury, however, has an emotional and static component. i don't think amazon has cracked yet. in my view, it has to be part of the dna and culture of the company. otherwise, there is a fear. it is definitely executed immaculately. caroline: what about brexit? does it affect you at all? has it affected the business and the talent here in the united kingdom? not yet, in terms of the pool of talent. in terms of the macro variables
of the business, it doesn't have a measurable impact on farfetch, because we are completely global in terms of trading. whatever happens in one part of the world that is relatively , controlled for us. four other businesses, it will be complicated. for talent, we are a bit more worried. it all depends on the government policies. we hope the u.k. government will keep the doors open to talent. emily: the farfetch ceo. one of the biggest cybersecurity companies in the world shows that the company's ties to russian intelligence services goes deeper than previously disclosed. joining me from washington, mike riley, who helped write the story. first of all, tell us what the
significance is of kaspersky and potential ties to the russian government. reporter: keep in mind they are a major cybersecurity company. the software is sold in best buy and walmart. it is on a lot of people's computers, including key companies in the u.s.. it is not unusual for cybersecurity companies to have close ties with governments, but given the context of russian hacking in the election and beyond that, it has become a much more contentious issue with kaspersky. they tried to drive bright line and say that they had no special relationship with russian intelligence services, because that will turn off consumers in the u.s. and europe. it turns out the relationship is closer than they let on. emily: we have a statement from kaspersky lab.
they say, when statements are taken out of context, anything can be manipulated to serve an agenda. they say they have always provided appropriate products and services to governments around the world to protect them from cyber threats, but does not have any unethical ties or filled -- affiliations from any government, including russia. you pointed out in your story that cybersecurity companies typically stay close to home governments. how is the u.s. government responding? reporter: the u.s. government has been turning up the heat on kaspersky quite a bit. fbi agents have visited employees of kaspersky in the u.s. at their homes and asking them very pointed questions about their relationship and how much guidance they get from moscow. more than that, they have been sending up a lot of flares. they sent out warnings that kaspersky systems can be used to hack industrial control systems that operate the power grid. most recently there was a report that donald trump is considering
a government wide ban of kaspersky products. that will not be a huge business hit, because they don't do a lot of business with the u.s. government, but if he convinces walmart and best buy to pull it off shelves, it is a big deal. almost half of their revenue comes from the u.s. and europe. this is a key market for them. if they get this whiff of connection to russian intelligence, it will be a huge hit. emily: great reporting by you and jordan robertson. thank you for giving us that update. coming up, amazon is calling its third annual prime day record-breaking. we will break down the manufacturer holiday, next. this is bloomberg. ♪ reporter: amazon is rolling out
its third annual prime day in a bigger way than ever before. the manufactured holiday was extended to 30 hours with more deals for prime members around the globe. the e-commerce giant is offering new deals every five minutes on products like the amazon echo and flatscreen tv's. amazon services are also on offer. one flashy deal, four months of unlimited music, costing prime members just $.99. but amazon can't come up with -- can't take all the credit. the company run by jeff bezos took a page straight out of alibaba's handbook. for years, the chinese e-commerce giant has capitalized on 11/11, a.k.a. singles' day in china. turning the anti-valentine's day into one of the biggest shopping days of the holiday. on singles' day in 2016, alibaba wrapped up almost $18 billion in sales in the 24-hour event. but comparing singles' day to prime day isn't completely fair.
alibaba has been running the show since 2009. amazon only started these promotions in 2016. another key difference, prime day is only available to the approximately 85 million prime customers, while alibaba's event is open to all online shoppers around the world. while prime day is still in its early stages, it is already showing signs of being a big success. when amazon held its first prime day in july 2015, it marked a turning point for the stock price. over the past two years, amazon shares have gained almost 120% in value. amazon may have catching up to do, but if it continues to follow in the footsteps of alibaba, amazon may be writing a prime success story of its own. emily: here now to dig deeper into amazon's prime day, we are joined by our bloomberg editor at-large cory johnson, who was at the amazon world headquarters yesterday. what do we know so far? what has amazon said about how
the day has gone? cory: they did not give us any numbers. we understand prime day last year was their biggest in sales day ever. one of the things they highlighted is that 32% of sales come from the fourth quarter. so if they could have one day nine the fourth quarter is really important to them to draw people to the platform. emily: we are expecting more details tomorrow, but so far they have said the echo has been the best-selling item, shopping has been at record levels, whatever that means. our amazon reporter in seattle just sent me this, saying that a research group said the average discount was about 40%, based on a sample of 120 products. cory: i spent about the entire three hours of my radio show with carol massar, shopping for each other, and making fun of the junk that was available.
emily: let's say the unimpressive junk. cory: i bought some of the junk. i hope my kids aren't watching. i bought them chia pets. i got one of barack obama and one that was donald trump. [laughter] emily: that is amazing. on every page, you could see they were emphasizing the amazon echo products, at a very steep discount. the reason is they want subscribers on amazon prime. they want people on amazon platform. they want people using echo. they want people using prime. by doing this event now, it really does prime the pump for the fourth quarter, for the very important shopping days in december. if they can get prime members now, they can get them tuned up for an entire year of spending. emily: interestingly, walmart didn't do anything special. target didn't do anything special.
what does this mean for other retailers? cory: there is an amazon effect being talked about quite a lot right now. i think the bigger effect is shopping malls. not so much big retailers, but the small retailers that are really getting ground-up by online shopping. people that are walking and taking pictures of things on their amazon phones and then just ordering on amazon. they are getting eaten up by that competition. customers want to pay a lot less money, and amazon is there to help. emily: it is all about building prime, bringing people into the amazon ecosystem. one of the most interesting deals was the $.99 for four months of unlimited music, which is hitting apple right where it hurts. apple is coming up with a home pod later this year. music is their main focus. you can get itunes. cory: it is interesting.
i was at both events. within the hallways of amazon, they are talking about music quite a lot. both prime video and prime music, with echo devices, the -- for amazon is not even the shopping. it has been music. i think amazon music is something to keep an eye on and we will really have three big companies with spotify, apple, and amazon prime music. emily: 85 million prime members, how does the number strike you? cory: it's a big number. we know that those people spend a lot more money than the rest of the amazon users, and they -- shipping, they might lose money in shipping, but they make it up in volume. amazon web services is giving company the profits to sell things at or below cost. emily: we will see how the chips fall tomorrow. that is it for this edition of "bloomberg technology." we will continue our focus of tech coverage. we will hear from the reddit cofounder tomorrow.
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