tv Best of Bloomberg Technology Bloomberg September 15, 2019 1:00am-2:00am EDT
t r back, so we can focus on the kids. - [narrator] custom ink has hundreds of products to make you look and feel like a team. upload your logo, or start your design today, ♪ taylor: i'm taylor riggs in for emily chang. this is "best of bloomberg technology." we bring you all the interviews from this week. coming up, the oracle ceo takes leave. mark hurd announces he will take a leave of absence for health reasons. we discuss what it means for the company. ♪ cooking it up.
apple ceo tim cook the stage in cupertino tuesday, unveiling new iphone models with new colors and three cameras. details on those products and more like the apple watch. ♪ and linking up, we check in with linkedin ceo jeff weiner and his thoughts on the company three years after microsoft acquired the job listing site. we begin with one of our top stories. oracle announced wednesday mark hurd, the ceo, is taking a leave of absence for health reasons. this after the company disclosed the move along with quarterly earnings earlier than they said were to be released the company did not specify what issues hurd faces were how long his leave will be, but the executive chairman, larry ellison, released a statement saying, "oracle has an extremely capable ceo ending the extraordinarily
deep team of executives, many with long tenure at oracle. we will cover marc's responsibility during his absence with support from the rest of our strong management team." i spoke with our bloomberg senior intelligence analyst and global executive editor tom giles. >> as far as his leave, there have been signs over the last year that he may not be unwell, so what was not expected was the announcement today. because they hadn't announced up until now, there was a question about whether they would and whether he was getting well or not, so it took us a little by surprise, the timing. taylor: i want to bring you in, you heard larry say that he will take over. does this change the direction of the company? >> no, it doesn't. oracle is a very stable business, and a very large
applications business. the key risk for oracle, the key story for oracle remains how soon they can get database customers on to the cloud. that remains the same. i don't see any changes because of the shift. taylor: mark hurd was known on shifting the composition from hardware to software, hurd touted getting 50% to software. how did he do? tom: it has been a mixed record for oracle the last several years. their stock price has been over 20% gain this year, because a lot of investors are looking at that staff, that deep bench. they are starting to see signs the shift has taken root. it hasn't been even, there have been quarters were people really doubted. today's numbers, we will talk about in a minute, looking a little light, so it hasn't been
super even. however, you are seeing that when customers do shift to the cloud, there is where the growth is coming from. the legacy business, traditional software, has not been growing as much as has been needed. but when you look at the stock price, you are seeing the investor base give them the benefit of the doubt. taylor: anurog, talk to me about earnings. top line a little bit of a miss. margins look healthy. anurog: there was a slight slowdown in the applications business but we saw a expanding, we saw buybacks. overall, i wasn't very surprised by the numbers so far. the key issue remains how soon some of the new database product adoption goes. taylor: tom, what does a $15 billion buyback tell you? they have nowhere to invest or their shares are undervalued? tom: a little bit of both. are there large-sized
acquisitions you can make? oracle over the years has been a big acquirer, and they have made big acquisitions. it seems to me that there is not a lot in the pipeline right now that they want to take aim at, but they have a lot of cash. i wouldn't rule it out. $15 billion shows a vote of confidence they have in their stock, and when you are announcing the ceo is taking a leave of absence, you want there to beat a vote of confidence among management. larry said in the statement, they have confidence in their bench. very capable, very well-regarded, and larry, even though he handed over the reins, has never strayed far from having a hand and how the company is managed. taylor: anurog, did cloud services revenue meet your expectations? anurog: there was a slight slowdown in applications but overall it is lumpy. unlike adobe or office 365,
these large-enterprise deals for somebody like oracle could take time. nothing is surprising from our side, generally in-line quarter for us. taylor: tom, how is oracle set up among china and tariffs. it is something we talk so much about in the tech sector. what is your broad take? tom: right now, a lot of companies in the tech sector are going to be affected by tariffs. a lot of it has to do with areas such as hardware. oracle has not been one of the companies we have looked at and said, this is going to be a huge hit for them. we talk about apple, some of the other companies, chipmakers for example. oracle, that hasn't been a big area of overhang. i would be curious to hear what anurog has to say about that, but the tariff issue is going to hit a lot of other big tech players besides oracle. taylor: was the revenue miss not related to tariffs?
anurog: i don't think so, but enterprise software spending has little exposure to china. unlike consumer products. but when you have macro shocks in china, people pullback enterprise spending. you don't need to upgrade if you don't have to, because you can go another six months or so before getting that new server updating to a new set of software. that is where we have started to see some cracks in software growth, with some companies such as oracle desk talking about weaknesses in europe right now, that is leading to enterprises spending less on software. taylor: anurag, we know all the glitz and glam is in software. how is hardware doing? anurag: the hardware business for a lot of vendors has been weak. that has been the story for a
while. people have been delaying hardware upgrade cycles because whatever money they have, they want to spend it on the next digital generation, security products or cloud products. so people take money from hardware and spend more on software. taylor: tom, key take away from the earnings call, all about the ceo? tom: a lot about the ceo, why they didn't disclose it sooner than they did, there will be questions along those lines, who will be in charge of responsibilities mark was in charge of, how concerned they are about his health, how long he will be away, and certainly, cloud, cloud, cloud. that is what comes back to. as people move more to the cloud, that is something that affects spending on hardware, which has not been a real strength business for them. taylor: number one talking point from the call you want to hear? anurag: i want to hear what the new transition is for the new
database products. that is an important thing for us because that dictates how soon people will adopt to the cloud. any new applications business, bookings numbers, those would be two areas we are looking at. taylor: that was anurag rana and tom giles. i also talk to others who wait in after the announcement. >> my reaction first is for a speedy recovery for mark. he is in my thoughts and prayers. if you really think about the team, the three work more effectively than anybody envisioned a three some woodwork. but larry and safran worked together 25 years. i know all three very well. safra is world-class off the charge. larry has always been involved in the vision and engineering side.
i think they will navigate through this. i don't think they will have major issues. they have got a deep company, a lot of capabilities, and larry and safra are world-class leaders that are very actively involved. our thoughts are with mark for a speedy recovery. taylor: talk to me about your relationship with mark hurd at cisco and oracle. how was that relationship? john: relationships with oracle and hp have always been strong for me. i have a lot of confidence in hp. they helped me when i moved to silicon valley to understand the valley when i only had 400 people at cisco. people got us confused with the food truck company, a new plant there helped a great deal. their new ceo, antonio, is amazing. i have a lot of confidence in the direction of hp. they did a nice job on the turnaround. in terms of safra and larry, i've been very close to them on political issues in terms of
positioning tech for good in the world and they are very strong leaders. i would always bet on larry and safra and mark together and i would bet on larry and safra in the interim. they have got a deep team. taylor: that was jct ventures ceo and founder john chambers. coming up, weworks ipo woes. why the company is looking to make changes at the top, but will it be enough to save the ipo as investors seem worried? we discuss, next. later, watching your health. why apple is betting its wearables will transform the health industry. that, plus highlights from the big apple event day in cupertino tuesday. this is bloomberg. ♪
♪ taylor: welcome back to "best of bloomberg technology." i'm taylor riggs. this week brought a flurry of technology from the ipo front, including wework ipo woes and peloton with plans for a public food company debut. to break down the technology ipo landscape, i asked our bloomberg source how wall street was interpreting the ipo parade. >> truly amazing. we have reported for a couple of days that they boosted the price range from $12 to $14 and the price now is where it will price. two days ago we had more optimistic sentiment around some of these big ipo's. a lot of these that upped their pricing did very well this year. everybody but uber and lyft. wework was tumultuous, but those were considered one-off in the market that was really value and
growth. taylor: talk about peleton. they are out on the roadshow. >> peleton is kind of like everybody else. two days ago everything was ok, they were up, the nasdaq was up, suffer them to fall so much has cast a cloud over a lot of these listings that are about to happen. investors want to see a stronger bottom line. revenue growth is not going for a lot of these countries and we have the ceo's of investment banks think so, the first time all year is something we have been hearing. taylor: what changed? sonali: for one thing, investor sentiment. but what value stocks instead of growth stocks. there wework cloud that is over everything i was well, people are looking for not only companies that are showing a stronger revenue growth, stronger online, but also
governance they are comfortable with as well. the late stage of an economic cycle, people worry about the overall environment and people start at some point to get more cautious as well about what they are investing in. taylor: when we talk about cautious, you earlier talked about how the nasdaq was higher. we saw another ipo, smile direct club. how did they end up doing? sonali: they ended up down 25%, something we haven't seen since 2008. we haven't seen a company since 2008 that priced above its range and then dropped in the first day of trading. we had uber dropping its first day but uber was priced at the lower end of its range. we are waiting for cloud flare pricing tonight. whether or not a price is in this range that they have already increased doesn't indicate whether they will trade well tomorrow, which is something i think is scary for investors.
taylor: and another thing that is scary for investors is all about wework. what happened? sonali: we are waiting to see if they kick off the roadshow monday. bloomberg has reporting all week that the evaluation could be as low as $15 billion. to put that into perspective, this year goldman sachs was was thinking it could be worth $65 billion, which is over the $47 billion valuation early this year. so we are watching valuation go way down. we are in a situation according to sources where softbank is considering more private capital injected into the firm to help turn it around to a place where it can go public in a way that would be more pleasing to investors, but all of that is still up in the air. it has yet to be seen how they get the ipo done.
taylor: there was also news that wework is considering a slew of changes, including removing the founder's wife from the succession plan, is that enough? sonali: we will see. they still have the voting shares adam newman has, which gets him 20 times more power than the other investors. it depends on how they change their corporate governance. its going to be a big deal for how investors view the stock. if softbank ends up taking a bigger stake in the firm, they already have a bigger stake than newman, so who controls the company? softbank or adam newman? the wife stepping back from succession planning is one thing, but there are a lot of corporate governance challenges they are facing in trying to clear up before an ipo. taylor: if you take a look at the landscape of the ipo's, who is to blame? is it the bankers' fault, the companies' lack of profitability, the market's fault? sonali: people like to blame bankers quickly for pricing an
ipo to high. normally in an ipo, institutional investors like the pop, venture capitalists like it to be stable. this market is a tough one. these ipo's traded very well, they traded up. but now we are in a situation where all of a sudden then the blink of an diet is just not working for them anymore. ♪ taylor: coming up, delivery game on. a luxury e-commerce platform ramps up competition with amazon by shaving a day off its free delivery service. we will hear from the ceo, imran khan next. if you like bloomberg news, check us out on the radio, the the bloomberg app, and in the u.s. on sirius. this is bloomberg. ♪
the company announced it is cutting its two day delivery to one day. but is it enough to compete with amazon? to discuss is fair shop ceo imran khan, former chief strategy officer at snap jack maker snap. imran: how can we make customer life better? we saw the positivity from customers and we wanted to make things better. that is why we launched free, one-day shipping. it will get to you within one business day. taylor: you say customers before
shareholders. how are shareholders responding to the increased cost this will cost the company? imran: if customers are happy, they will keep coming back, they will become very loyal customers at that will drive lifetime value of the customers. we are reorienting our company. we are a very young company, less than one-year-old, but the way we are reorienting our company, it is long-term and how we think about long-term value of customers. we believe that by giving happiness to customers on a daily basis by getting them the product faster, having the best selection, best quality, best customer support, for example, we put a customer's separate phone number on the top of the site. by doing so we increase the lifetime value of a customer. we really focus on that. that will create long-term shareholder value for the business. taylor: amazon and walmart have come out recently with one-day shipping. how do you compete? imran: we have to recognize that e-commerce is a very, very large market area if you look at retail sales in the u.s., $5
trillion, only 10% of that is online. retail is one of the biggest market opportunities out there. so we don't think it is a zero-sum game. there are multiple players who will serve the customers and we are really focused on how we can serve our customers better. we are focusing on categories like men and women fashion, home and beauty, we recently lost kitchen and just refocused on how we can serve our customers better. we believe the market is big enough for multiple players to do well. taylor: that was verishop ceo imran khan. competitive shopping to competitive gaming. most gamers in the world consider themselves competitive gamers. intel just announced another big
e-sports tournament in tokyo around the 2020 olympics. for more on the technology, opportunities at landscape, i talked to players and the ceo of super league gaming thursday. ♪ >> when you are entering a brand-new market space, very nascent, don't know how to define the edges of the pie of how big the market space can be, many investors see it as a fad until they have children or grandchildren that game. and then the light bulb goes off. they realize gaming isn't something you grow out of anymore, that they are spending just as much time watching other people videogame as they are gameplaying themselves, and this is something that is becoming increasingly multigenerational. we are very uniquely positioned as the rare, pure e-sports plate listed on nasdaq. most of the activity you are saying is private investors. they do have high valuations. it is all those frames.
people worry about a bubble. projections for e-sports is that it will be a 3 billion-dollar global marketing 2020 three. -- market in 2023. i ran $3 billion business for bp 10 years ago, and i would not get out of bed if that was just what this was worth. it really goes back to, gaming is how people want to spend time as a primary entertainment interest at we are figuring out how big the category can be. taylor: your ipo six months ago, how has it been being a public company? ann: i believed i would wake up in los angeles at 6:00 a.m. and stare at my stock price every day. i'm delighted i don't have to do that. i have a lot of supportive come along-holding investors who are excited about our delivery and they tell me, don't look at the stock price day today, just deliver what you said. it is a strange thing that happened.
we have an experienced leadership team, top talent from game publishers like take-two, endeavor, former wmi emg. people got a big jolt of adrenaline the day we went public. with all that transparency going public, it feels hugely empowering. we sit around the table now went to talk about opportunities that we would not have dropped off when we were sitting there in the small, private-owned space. you have a lot of adults who are taking it seriously, that our credibility is on the line. we know there was a lot of money to be made in e-sports and we are determined for super links to be the leaders in proving it. taylor: that was super league gaming ceo ann hand. bloomberg technology was all
over the apple products and services event tuesday, from new iphone models to apple watch to services like the subscription plan for apple tv plus. we have got you covered. that is next. and bloomberg technology is livestreaming on twitter. check us out on technology and follow our global news network on tictoc and twitter. this is bloomberg. ♪ - my family and i did a fundraiser walk
taylor: welcome back to the best "bloomberg techonology." i am taylor riggs. it was a big week for apple as the tech giant launched its newest hardware at its annual product launch tuesday. among the items unveiled was in you apple watch and a low-cost ipad, not to mention a bunch of announcement tied to its new apple tv plus and apple arcade. the suspicion prices about five dollars a month, making it competitive to other streaming companies like netflix and disney. but as always, all eyes were focused on the freshest versions of the iphone.
>> the iphone 11 pro. these are the most powerful and most advanced iphones we have ever built in a stunning new design. taylor: apple unveiled the iphone 11, ifo 11 pro and iphone 11 pro max. the iphone xr are coming in at $700. the iphone 11 pro fries will still reach the $1100 mark. >> this was another apple event, but nothing really are shattering. it has been a while since couple came out with an entirely new hardware product that change the game. it was really around pricing. pricing for tv plus, apple arcade, the reduction on the iphone 11, but in terms of hardware functionality, nothing to write home about. taylor: ryan, talk to me about the iphone.
it still makes up a decent amount of top line for the company. what was your biggest take away when it comes to the iphone? ryan: i agree with mark. not to beat his drum, but that is the storyline today. it is all about pricing. you mentioned the $50 price cut from the 10r. to be honest, then leading with services and partnerships that came out between arcade, and news and getting to lower costs on the iphone pricing and even watch pricing shows that they see that we have pushed the threshold for the average consumer pretty high on price point, and they have to be cautious. the important thing is to make sure it grows. and i think they are still doing a good job at that. taylor: ryan, are they maxed out at the $1000 iphone? >> listen, i don't think we would ever maxed things out. keep in mind, starting points are never what the highest point actually gets to. we talking upwards of $1500 with
the highest configuration. i think they will continue to push things, but i think they are realizing that their audience who will actually pay that price to use those features is probably smaller than it was when their highest iphone price was $800. it is a changing of the times. it is not on the apple being affected, their main competitors at the top of the market, samsung and huawei are being affected at the same way. i think we will continue to see price points that will fit well over $1000 and iphones. taylor: here on gtv , we are looking at the average sale price that is starting to bit. rise a little and on the right-hand column is the number of iphones sold, which is slowly dipping down.
what does that tell you about where we are in the cycle? >> it tells us that there really has been a combination here of rising prices and a decrease, ironic given the invitation today, innovation. the changes are really all about the camera. if you go to the apple's website about the apple 11 pro, 80% of it is about the functionality. the last time we saw a real breakthrough change was two years ago. we are expecting bigger changes again next year as prices are coming down. i think things will start to rebound 12 months from now. taylor: ryan, what do you make of the device no longer being an iphone but really a camera with some audio capabilities? >> well, i guess it has probably been more than a phone for quite some time. it is a good question. to be honest, i think the features have introduced, some of which have met some -- some people say that things like night mode have met up to has already been done, and i think that is great -- but what is
important to recognize is what the actual consumer does with their camera affiliate and i think to be honest, not just with apple or some of these others, some of the features they are integrating, a lot of that is done through software, not just modules or number of megapixels and so forth. i don't think everyone is actually utilizing that to the full benefit. having said that, everybody wants the latest and the greatest, so i think it is important that they continue to innovate, and clearly, they have been a market leader in photography and they continue to be so. taylor: that was the idc program vice president ryan reith, and bloomberg's mark gurman. apple also debuted an always-on display that never sleeps as part of its watch unveiling on tuesday. apple says it continues to pursue ways to boost health, as ceo tim cook pointed out. tim: we are a really excited about the impact the app can have. that gives all of us an amazing opportunity to participate in health research that could lead to innovations to improve our
health and the health of future generations. taylor: to discuss, i spoke with creative strategies principal analyst. >> i think nobody is actually thought about the always-on screen. a lot of people have complained from the get-go that that was a feature that consumers wanted, especially consumers that were trying to switch from a traditional watch to a smart watch. but today was really about moving the little if you like on the health side, and really hearing apple clearly that this is an area where they want to continue to develop, they want to stay for the long run, and creating a health research app speaks to that. taylor: is pricing at $399 competitive or expensive? carolina: $399 is competitive and even more competitive is the $199 price point for the apple
watch. we always get excited away with latest models, but when you look at the lineup, that is where it is becoming more and more obvious that apple wants to get consumers that are out of their installed base to venture into new devices. you might be an iphone user and have yet to find out what the value add of an apple watch might be. $199 price point is maybe an easier way to get you to try the watch. taylor: so the 199 for the 3 that they lower today, you think that is a good thing that the company's? >> absolutely. it is getting that entry-level more interesting for consumers. we had a bit of an impasse on the android side as far as android wear, and new devices
coming to the android ecosystem outside of fitbit, which i am sure today is going to look quite worried about the $199 price point. we haven't seen a lot of uptake on the watch factor. there are lots of fitness bands out there, but not so many watches. taylor: right. you mentioned fitbit. i was looking up at earlier as well. how concerned should other wearables be today? carolina: they should be quite concerned. apple watch has become the watch the rest of the industry's looking up to and the $199 price point is pretty competitive, with a device that does not feel like you are really compromising on your experience. that is a core part, you are not getting a device that you feel does not give you the key features that you want. so why not try and see what it can do for you?
taylor: talk to me finally, about integrating services and doing health research. what about the future of health and apple excites you? carolina: i think to me that is the next level. it is not just something that apple wants to do for the goodness of the human race. so to speak, as far as making us more healthy, but it is really a good way to get people to see value from the ecosystem at a level where it impacts their lives. it is not just about entertainment or having a gadget, it is really having a device that can make a difference in your life, and they played a video during the keynote that spoke to that, having people that have had arrhythmia, heart arrhythmia highlighted to the mother watch, being able to get to the hospital in time and prevent something much worse. that is very powerful. taylor: that was creative strategies principal analyst
carolina millanesi. coming up come at the intersection of technology and medicine, with a focus on wired for health. we introduce you to some of the innovators and investors who are disrupting the industry in big ways, next. and it has been nearly three years since microsoft and linkedin linked up. my exclusive interview with the linkedin ceo is next. this is bloomberg. ♪ taylor: all this week,
"bloomberg techonology" explored medical technology in a series we called "wired for health," with a look at how innovation played a crucial role in sustaining health. to give you some context, 21 years ago we saw the first robot-assisted heart bypass. today practically every operation in the united states uses robotics.
where will the next 20 years take us? my next guest joined us to discuss. >> we expect the health care system to be from the mentally different than it is today. it will be one where the consumer managers their own health care and control their own data and it will be a system and acute intervention, and businesses will take on different roles in the heaven that passed. taylor: might take away was that the consumer is taking their power back. i have wearable devices, power for my data. what is the technology be driving that? glenn: it is the same technology that is driving a lot of consumer-driven control data.
we shop online. we control our shopping and our banking experience. consumers want to control their health care experience, too. >> so with that, it is a combination of sensors, pervasive sensors that are going to be in us, around us, measuring our health and our environmental data and medically interoperable data. which means we will be in with a combined that data and draw some insights from it and present but back in a consumer friendly manner. taylor: you talk about no more silos between biotech, pharma and health-care companies. how do you see those coming together to work together. glenn: there is a lot of collaboration. a research study we did said that 80% of medtech companies expect to be doing substantial collaborations within the next few years. that will be par for the course, collaborations within the industry as well as collaborations with some of the high-tech players who are bringing great capabilities
around a.i. and data analysis that are crucial for this next wave of health care. taylor: talk to me about a.i. i know a lot of people are waiting on 5g to health are some of the a.i. is that the future? len: let us put it this way. today, there are over 200 50,000 clinical studies that occur every year, and any individual cannot absorb all of that information. the beauty of a.i. is that it can digest just all that data and make sense of it. health is a bunch of different correlations, i'll markers and a.i. can pick up on that. taylor: on this program, it is about data privacy. in your world, what is the balance between more data is good versus the chance that we are going to get hacked?
glenn: i think the key is people need to be a will to control and give permission as to what they want to give their parties to analyze. there is great benefit to us of ready that to society and to us as individuals to have companies that can analyze the data. but we need to know what is being done and how to control it. taylor: if the future of health care is disruptive disrupted the medical technology, investment will evolve as well. arc investment management has identified five platforms that should generate more than $50 trillion in business value and wealth creation over the next 10-15 years. they are industrial innovation, genomics, next-generation internet, fintech innovation, and mobility as a service. ark invest ceo cathie wood joined me monday to discuss areas ripe for investment.
>> of the five we think the most underestimated today is dna sequencing. it is really the topic you are exploring here today. dna sequencing is exploding and we think illumina, which is responsible for 95% of all the dna sequenced around the world including in china today, if it we engages in terms of cutting the cost and price well below $1000 per human genome, than we are going to see explosive unit growth. we think if illumina were to cut cost. think about a declining cost curve off 40% per year, the number of human genomes that would be sequenced would move from this 4 million globally last year, half of all human genomes sequenced in the history of all time, to 100 million in five years, when we think the price will be as low as $100 per genome.
taylor: that is a fascinating statistic, and i am so glad you brought that up. how important is that statistic for you as an investor can see, me as a consumer, getting that under $100? cathie: we think it is very important if we are going to start penalizing each human genome in terms of mutations. our body is comprised -- our genome is comprised of 3 billion lines of code, effectively. our mutation is like a programming error. it is the earliest manifestation of disease. it can start when we are born. it may not be full-blown until we are dealt. with it be nice for our genetic counselors, and that is a new job that is developing some momentum here, to identify our mutations from one example the next, and to identify cancer in stage one.
that is the promise of dna sequencing costs dropping to $100 and even lower with time. and the information explosion we're going to be able to take advantage of. taylor: we fall this into your world of investing. and you have a genomus etf. we have a graphic showing some of your top five holdings. what do you see within these companies to allow you to take advantage of the next revolution that you are talking about? cathie: illumina is a category killer in terms of dna sequencing, and it is foundational to everything else we believe needs to happen. invitae is the most important molecular diagnostic testing companies. it is driving down costs.
its cost of goods sold in 2013 were $1300 per test. it has gotten that down to $250 and it offers a test commercially for $500. what we are seeing them do now is interesting, the offering tests free to discover think it if cancer or huntington's disease, or epilepsy. more about those diseases. what is happening is pharma companies, glenn talked about collaboration, pharma companies are paying invitae to deliver the free test so they can get the information anonymized and learn more about these diseases so they can find cures for these difficult diseases. so a lot of these collaboration among pharma, biotech, diagnostic testing companies, dna sequencing and so forth.
taylor: within etfs, i think a lot of retail investor interest. who are your investors? have you seen it a lot within retail or do you get a lot of institution investor interest? cathie: it is across the board. we manage funds across the board. we have many retail investors. they really helped us start out the fund. now, we have institutional investors moving in to our etfs. it is very interesting to watch sovereign wealth funds who are trying to learn more about the health care systems and health care breakthroughs so that they can improve lives for their own countries. they are even moving into our etfs, because they can treat our etf like a stock, and it doesn't have to go through a lot of due diligence and go to the chief investment officer. these are younger advisors who
are actually very excited about what we're doing. taylor: that was ark invest ceo cathie wood. still ahead, linkedin is one of the social media companies operating in mainland china. we discussed the company's operation in the world's second-largest economy amid u.s.-china trade tensions, next. my interview with the ceo, jeff weiner. this is bloomberg. ♪
taylor: it has been just over three years since microsoft announced its intention to buy linkedin. the job listing site is set to boast 20 million openings and around 100 million applications each month. unlike facebook, twitter or youtube, linkedin is one u.s. tech company that does operate in mainland china i spoke exclusively to the company's ceo, jeff weiner on thursday, and asked him about doing business in china.
jeff: it is still early days for us. by operating in china, you mean how we have been so successful, our vision is to create opportunity for every member of the global workforce. i think other companies have a different sense of purpose or different mission probably found it difficult to do business in china because it is inconsistent with what it is they are trying to deliver and accomplish, whereas the creation of economic opportunity is something essentially of a country in a country in the world can get behind. our operation in china is still very early days. we have a team in place. we have greater focus there in terms of local markets, trying to understand cultural differences, local markets, and will continue to invest. taylor: with the trade and tariffs, do you feel in a more pushback is a u.s. tech company in china?
jeff: not with regard to the nature of our business. for a company like microsoft or some of the larger technology companies there are different implications, but by virtue of the fact that we are a professional network, the tariffs are not impacting us to a bit extent. taylor: there is talk that china may be would hurt any text company but set up more red tape, rules, boundaries were limits perhaps maybe their way of putting more backlash on u.s. tech companies. do you have any of that? jeff: i don't know that that is anything new per se when you make the decision to operate in china, it is important that you are prepared to comply with the law in china in a lot of different ways. whether that is new regulation, additional friction, or things beyond the regulatory purview. the competitive landscape in china is incredibly intense. we continue to see that. operating there is different than operating in the united states, and it is part of our commitment to being in business in china. taylor: in the last few weeks, we have seen more and more probes and investigations into big tech over monopoly and data privacy.
how do you manage to stay out of those headlines? jeff: it certainly did not start now for us. we made a commitment roughly a decade ago in terms of putting our members first, arguably are most quantified value, maintaining the trust of our members. without the trust, our ecosystem does not exist. and we put together first principles with regard to how we were going to leverage data dating back 10 years. those principles were all about clarity, consistency and controlled. as a result of not just talking about it but walking the walk, codifying the early on in terms of how we prioritize, develop strategies and execute them, that has served our members very well and ultimately served the company very well. taylor: that was linked in ceo jeff weiner. that as it for this edition of best of bloomberg technology. will bring you the latest in tech throughout the week. to in each today at 5:00 p.m. in new york and 6:00 p.m. in san francisco.
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