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tv   Bloomberg Technology  Bloomberg  February 22, 2018 11:00pm-12:00am EST

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♪ i am alisa parenti in washington and you are watching "bloomberg technology." let's start with a check of your first word news. president trump suggested today that a crackdown on extreme content in the u.s. could help stop school shootings. he spoke at a meeting with state and local lawmakers inside the roosevelt room. pres. trump: you are having moving -- movies come out that are so violent, with the killing and everything else, maybe that is another thing we have to discuss. alisa: earlier, the president praised nra executives. they are reviewing whether they have the authority to regulate bump stocks without action from congress. president trump asked the doj to
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ban rapid fire devices like those used in last year's massacre in las vegas. a band could start a legal battle with gunmakers. paul manafort and rick gates were indicted for a second time. the new charges include failing to report incomes, to the tax authorities and bank fraud. it could put additional pressure on them to cooperate. the late reverend billy graham will be brought to the u.s. capitol where he will line honor in the rotunda until thursday, march 1. graham died yesterday at the age of 99. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am alisa parenti and this is bloomberg. ♪ emily: i am emily chang and this
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is "bloomberg technology." coming up earnings season , continues. we will break down the results at hp enterprise at hp inc. another spacex rocket blasts into outer space. how this launch brings elon musk's vision of if after internet one step closer to reality. we lay out the game plan and the upgrades on tap for apple's next-generation air pod. hewlett-packard enterprise and hp inc. reported earnings after the bell. they beat estimates. and topped estimates with a strong computer and printer sales during the holiday quarter, even as the industry stagnates. i want to bring in a research officer. what do you think are driving these results? crawford: there are a few things driving this. we have to unpack them. for a long time, hp talked about
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being better together. clearly this quarter, they were better apart. they have a stronger ability to be number, to resize their infrastructure. particularly in the case of hpe. in the case of hpi, this company is performing on all cylinders. they are in a market that is flat for pc's, that is normally -- nominally flat for printing. they are gaining share. they are putting up numbers like 15% growth year over year for 14% for total printing, 48% for commercial printing. remember, that includes the samsung business that they acquired. this is the first full quarter they had that. stellar performance and huge operational efficiency on the part of hpi. emily: let's talk about that. are you expecting the strong computer and printer demand to continue through this year?
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crawford: i think what you are seeing is that infrastructure in general is continuing to get refreshed. in the case of hpi, the product is strong. the product has been getting stronger and stronger for quite some time. in the case of pc's, they are focusing on profit pulls that our margin rich. inther it is detachable two ones, or gaming. they have done a great job in meeting the needs of that really important, most demanding consumer and commercial buyer and getting them to pay up a premium for incremental features. these things can be relatively small, like integrated privacy screens, integrative skype calling, and high-quality build. i think hewlett-packard can continue to gain share. now, the pc market, we expect that to be nominally a flat market going forward. emily: meg whitman is no longer
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the ceo of hpe. she has gone on to her next endeavor. neri, the new ceo, is speaking on the call, talking about the macro environment, saying he thinks he sees market improvement. but what is your outlook for hpe without meg whitman? crawford: i did have the opportunity to talk with antonio before he hopped on the call. he is really thrilled with the performance the company had in the quarter. i think of hpe we will see without meg whitman will run a similar playbook. they're looking for acquisition targets that are additive to the profit pools and participate in and are in growing segments, that fit within hp's channel and in their direct sales force. remember, 70% of hpe's revenue comes from indirect sellers resellers. ,they have a vast network they can leverage. the key to this quarter is two
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fuld. old.wo f antonio is very clear about this. they have enabled hpe next, which took $1.5 billion out of the company for this year, of which they invested $700 million back. they did huge cost-cutting while growing the top line. that is pretty impressive, not something any company will want to go through going forward. , but they set themselves up with a smaller overhead structure to now participate in larger areas of the enterprise market, like the intelligent edge with aruba, like hpc with silicon graphics. they are seeing the benefit of companies repatriating cash, operating in a lower tax environment. they are seeing infrastructure spending ramp up. i think you will see that at companies like hpe. you saw it at cisco. the company has to upgrade there -- their infrastructure. not everything has moved to the cloud. emily: tax reform already a big topic on these conference calls.
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how do you think tax reform will impact both of these companies? crawford: they are both telegraphing lower tax rates. in both cases, somewhere in the mid teens range, down from the low 20's historically. they are not mentioning absolute dollar amounts, but you look at hpe, they are talking about returning $7 billion to shareholders. that will come to some degree, probably to a very large degree, from offshore cash that they bring back. as well, they are talking about, in the case of hpi, beyond the executives participating in their incentive plan, in hpe's case, they are talking about decreasing the 401(k) match and having employees participate in different bonus pools associated with them bringing this money back. again, in general, they are trying to acknowledge it is a
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favorable environment from a tax standpoint. it is also a favorable environment from a demand standpoint. you have to strike while the iron is hot. for the first time in a long time, hpe has the ability to execute and the products to take advantage. again, a place they have not been in the past few years with divestments and whatnot. emily: on that note, the cloud is rapidly expanding, but still hotly contested. how well-positioned is hpe to compete in the cloud or hybrid cloud future that meg whitman talked about? crawford: hpe was very clear that, in this tier one data center business, they don't view it as a very high calorie business. it was not a significant margin pool to them. and they decommitted to that business. that part of their server business is an area where you will not see hpe selling a lot of service to amazon or google -- servers to amazon or google
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based on the strategy now. they are participating in the cloud in a number of ways. they are selling hybrid i.t., selling gear to enterprises that will have a mix of on premise and cloud-based offerings. they are also selling enterprise gear to a number of fast providers that will use that year to host to their own cloud platforms. this is back to that 70% of their revenue that goes to be -- esellers. there are many thousands of service providers around the world that hewlett-packard enterprise, who will host amazon and microsoft. there are multiple ways for hpe to participate, but not in the tier one suppliers. quite frankly, they could not make any money doing it. emily: thank you so much. we will keep listening to these calls.
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a stock plunged over 50% in the trading session investors , dropped the stock after the maker of angry birds missed estimates in its latest earnings results. one analyst calls it a huge disappointment. coming up, elon musk just launched his fourth rocket this year, this time filled with three satellites. why the tech giant wants in on broadband next. and if you like bloomberg news, listen on the radio, the bloomberg radio app, at this is bloomberg. ♪
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>> the trump administration wants to cut the red tape for space entrepreneurs.
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they discussed ways to revamp u.s. rules pertaining to the commercial use of space. among the recommendations being considered, a single license for all space launches and re-entries, regardless of the location and type of vehicle being flown. the goal is to streamline and -- and approval process that has been resized as overly cumbersome in an era when a new cast of space players are developing ambitious plans for new space enterprises. some of the high profile players include spacex, virgin galactic see nevada, and blue origin. the record company jeff bezos launched nearly 20 years ago. trump revived the space council last june and directed vice president mike pence to lead it. this week, the council also announced a 29-person users advisory group to foster greater cooperation and coordination among government and private space players. you can find me on twitter and follow tictoc on twitter as well for all your news.
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♪ emily: sticking with space spacex rocket carrying three satellites were ordered into space today from the california coast. they carried in imaging satellite and two smaller satellites. it aims to provide internet access to the more remote corners of the globe. space angels is the leading source of capital for space startups. we talked a couple weeks ago with the last launch. these now are becoming routine, but are really important when it comes to moving forward space technology. what is significant about this particular launch? chad: that's exactly right. this particular launch is exciting for a few reasons. one, it carried two of the test satellites for the new mega
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constellation. it will have 4000 plus delivering communications to the earth. this is important for a few reasons. it will connect the other 3 one, billion, as you mentioned. it will give people options to their current cable providers. most separately, spacex is still going to mars. this will be a key piece in their financial architecture that will get them there. emily: talking about this effort -- fasternternet internet access to the farther corners of the world, it is something other internet entrepreneurs have shied away from, like mark zuckerberg and google. how is what elon musk is doing different? chad: satellites provide an alternative, a way to deliver these communication services that go beyond the uab-based and balloon-based that we have seen previously. typically, these communications satellites are in geostationary
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orbit. that is very high up over a particular point on earth. these 4000 satellites will be much closer to the earth, which gives you a smaller distance that the signal needs to carry.w learnings in progress when it comes to rocket reusability. what did we see happen here today? chad: this is very cool to see. spacex just continues to push boundaries and keep us all interested. even in the shuttle and apollo years, we saw viewership start to fall off. that's because people want to see what is coming next, what progress we are making and what are we doing next. spacex continues to push the envelope. today, the payload, the satellites, came back to earth and they attempted to catch them with a giant net on a boat. while they missed, they came really close.
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it seems they have a good plan to catch it next time. emily: you are also at the national space council meeting. i know they talked about space entrepreneurship and there is a move towards future space travel as a commercial rather than a government endeavor. what kind of progress are you seeing? chad: that is exactly right. it was good to be in the room yesterday, to hear the conversation. it is really good to hear the emphasis on streamlining regulation and licensing. they have moved a lot of space operations and space oversight into the department of commerce, which is another key signal that the future of space is commercial. the overarching focus in that meeting was really about space entrepreneurship and how the government can continue to partner with them as a customer of services rather than a benefactor or funding the development of new systems. emily: what is the mood given the messaging coming from
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president trump about turning space into the next free-market paradise? chad: we certainly have been working towards that the last two years. so it's good to hear the government getting on board with that message. i think the data is starting to back up the story here in a major way. we have reached the tipping point where the government has started to sit up and pay attention. emily: we talked about this in the past, but as space becomes more commercial, what are the safety concerns, the regulatory concerns that you expect to see pop up? >> there is a great one with the spacex launch today we can talk about. they've got three key challenges. one is the fcc licenses for spectrum. it is a scarce resource and how you send radio down to earth and how you bring this unprecedented
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amount of data back down to earth. and then also, how do you navigate the ever increasingly crowded highways in space? space is very big, but a lot of the key orbits are in demand. how do you monitor all of these things? they provide a lot of opportunities for startups. we are seeing startups addressing each one of these concerns with laser communications to bypass the radio frequency spectrum, new ground stations that are allowing you to steer them electronically. you can do them for much smaller and much less upfront costs. and in debris tracking, we see companies come in and do this in a way we have not seen before and at a cost point we have not seen before, being able to track two centimeter objects. and give us a lot more situational awareness in space.
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chad anderson, space angels ceo, thank you so much for breaking it down for us and talking about what is important. robin hood's 4 million users can start trading bitcoin commission-free today. the california-based firm is offering the service in california, massachusetts, new hampshire. robin hood hopes to offer cryptocurrency trading in most states by midyear. apple is seeking to bolster its wearable business, its popular headphones. this is bloomberg. ♪
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emily: apple is seeking to bolster its wearable products. the tech giant working on upgrades to their headphones. an upgrade could be released this year. next year there could be a version that is water resistant. joining us now mark gurman who brought us the scoop. what are the new features going to be? >> thank you for having me. so exciting, air pods, people are liking them. they are becoming a secret smash hit for apple. two versions, one with deeper siri integration. you can put them in your ears and peoples siri, phones will go off. i think i just heard yours go off. [laughter] emily: it is going off. that functionality will be there. mark: there will be a water resistant model coming about a year after in 2019. emily: has the issue of charging these headphones become a problem for users? mark: that is a good question.
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i notice the battery life is not exactly the five hours that you get. people on the long run will have to recharge. but in day-to-day use, if i am in the office and i just want to listen to music for 30 minutes at a time, i can see it lasting the whole week. it varies by use case. emily: what makes them such a hit? mark: i think it is the charging case on the wireless capabilities and the convenience. i always have mine in my pocket. it is very good for taking a phone call, if you want to step outside, take a call in the office. it doesn't really have the need to put wires in and out of your phone or your ears. there is a convenience factor definitely there. emily: there was a time when the wait was weeks. how are they doing on supply? mark: that is another under told story. it took them a while to reach a demand-supply balance.
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in terms of demand for it, doesn't mean there were so many more people buying these things than apple expected? where they harder to figure out? thanks for the extra work. these days, you can pretty much walk into any apple store and best buy and buy one. emily: they are not cheap, but they are not the highest ticket item in apple store. how much money do they actually make on the air pods? mark: that is a good question, they are a key component of this other product division, which incorporates the home pod, the apple tv, the stylus, a few other accessories. that division also has wearables within its, which includes the apple watch and air pods. the cfo of apple told us on the earnings call that that part of the division grew 70% year over year. clearly, the air pods with the apple watch are making an impact on their bottom line, which is why we are following this category closely. emily: given the upcoming iphone launch later this year, how are
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the new air pods going to interact with the new phone? mark: it is joining the story where they like to update individual product lines. now we are seeing their pods becoming part of that update cycle. importantlearly more than people thought they would be. emily: thank you as always for that scoop. coming up, we explore the investment strategy between -- behind citigroup capital arm and how they want to shake up the startup world. bloomberg technology is live streaming on twitter. this is bloomberg. ♪
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>> hello and welcome back. it is 12:30 here in hong kong. inflation stalling. ofjapan, a key gauge inflation unchanged, 0.9%. 10 higher than analysts were expecting. was knew the outlook improving and the 2% inflation target can be reached. , -- quit as the leader of the national party. with accusations he breached ministerial guidelines. he says he will remain in parliament to support the government. >> there has been a litany of allegations. i don't believe any of them have been sustained. a litany of allegations. i want to say right here, what everyone in any political party
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always says, the leaking, it will not only destroy our government, any government. >> writers is says president trump is to announce new sanctions on north korea, as china investigates violations. a north korean flagged tanker alongside of vessel carrying --. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. check of how a equity markets are trading across the region. here is sophie. >> investors are making up their mind with regards to bond yields. asian stocks set to close out this week. on a more positive note in china, positive gains eroded somewhat, as chinese regulators collect ahead of the communist party meeting.
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sydney stocks rising a third straight day. we are seeing mostly gains in tokyo. the hang seng is rebounding from a correction that is continuing with tencent helping to drive the advance. tencent rising. the biggest boosts to the regional index. samsung has managed to halt a four day storm. data showsartner's samsung coming out on top. a quick check on commodities. the oilfield little changed. a surprise drop in u.s. supplied. gold, set for a third weekly loss. yields arereasury set for an eighth weekly rise. we are counting down to the open in hong kong and china at the top of the hour. ♪
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emily: this is bloomberg technology i am emily chang. ,citigroup as a financial powerhouse is the fourth-largest bank in the u.s. arm, can itir vc compete with silicon valley vc stalwarts that have been around for decades and find the new tech startup? the chief innovation officer joins us, along with selina wang. thank you so much for stopping by. let's talk about the purpose of citi's vc arm? are you looking to buy, build, partnered with these companies? >> thank you so much for having me. we think it is really important that citi that we focus on bringing the outside in. how do we make sure we stay involved in cutting-edge development? so much of that is present where entrepreneurs are present. not just working with them, but helping them to scale their companies.
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we work with entrepreneurs who might eventually want to be partners with citi. we also work with entrepreneurs who are thinking about expanding overseas and using citi's global footprint to understand new markets. it runs the gamut but it is all aimed at how do we bring in that , outside thinking, outside diverse perspective back into the bank? -- citi venture has e-commerce investments, data analytics. how would you describe the portfolio? is it shifting? >> we have been at this for a while. the portfolio strategy at citi ventures is infrastructure type investments. things like cybersecurity, incredibly important to the safety and soundness of the financial institutions that we run. or, machine learning and data. but more, syntax commerce , payments. we have seen an explosion of at -- over the last several years.
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emily: what do you think you have on the standard vc's? >> what is great about working , wec at a place like citi can leverage the history of the company and help entrepreneurs build their businesses. having been in the valley for decades, this is about what can you bring to the start up that helps them scale helps them , reach new markets, reach new customers? for many, distribution is a challenge. how did they get out to more people? i think there is a place for all kinds of investors in the ecosystem. what we find, we try to work with our companies to not only help them grow, but also navigate working with a large organization. it is not easy to know who to go to, who makes the decisions or frankly even when to go in. think of it almost like someone guiding you up a mountain. it is not enough to say, you get
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to the top, talk to selena. someone has to tell you what trail, what time of year, and who to talk to. we do a lot of that to help entrepreneurs meet their success. >> as a big bank citi is in a , unique position and a lot of them are targeting traditional banks, whether that is payments or lending. how are you looking at the threat that these companies pose? >> at citi ventures, we don't think of it as a threat. what is really posing a change in retail banking and banking overall is changes in technology, which is affecting every industry, and changes in customer expectation. it opens opportunities for new players to come in and see if they can do something better for incumbent players to say there is an execution of a customer that i did not know about before. or how do i do a better job to meet that? what you've seen over the last several years is not just fintech coming in and banks
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-- but incumbent banks and fintech coming together to meet the expectations of our clients. howy: we have heard about bitcoin is volatile. jamie dimon said it is a fraud. what is citi's position on bitcoin and blockchain as a future technology? >> we have been experimenting for a blockchain at citi over five years now. it is a very new technology. it is easy to say experiment with blockchain. it turns out you've got it best -- build a lot of internal muscle and capability, which we have done not only through citi ventures and innovation lab, but also through investments in things like helping , institutions find uses for technology. we don't think that blockchain
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has anyone single use. it is more about exploring multiple ways it might help us deliver better for our clients. >> what are some of those ways? you mentioned this partnership with chain. i think people see blockchain as a panacea for all banks' problems. is it more like another tool in the software suite? >> you have to think of it as a tool. one thing that is important, whenever you are working with blockchain it is fundamentally a , network-distributed technology. it is not something you can go off to your own conference room and experiment with. it is one example we use co-creating with our clients. ,in a world of that changes as quickly as ours, we do not offeve that citi we can go and create products and services on our own and keep up with the pace of change. we have to be working with our clients, co-creating, and bring things to market.
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no doubt, in the coming years and decades, we will all find that there are multiple uses of new technologies to meet clients' needs. we believe fervently at citi in the power of entrepreneurship. we also believe not all entrepreneurs happen to live in silica and family -- silicon valley in a garage. we also believe our employees have great ideas on how to survive clients and passionate about how they can do that. but they need a way to bring those ideas to life. this is an embedded program .hat citi runs at citi it is to bring forward ideas and to think differently about how those ideas might come to life. i think the critical aspect is that we can't do this without first validating what our clients need.
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we used to talk about this as avoiding building the cannon that killed the flea. got an idea. clients want this. let me go away and make a big powerpoint and convince my boss's boss to invest a lot of money in it. at the end, you build this beautiful cannon and you specified and shined it. when you are ready to unveil and cut the ribbon, someone says i think the flea might have moved. and you can't do anything about it because you have already invested all of this. we have turned not completely on its side. we focus first on what our clients need. how do we make sure that it is a real paying point? therefore, we are able to learn what they need to kill off a lot of projects that don't meet those needs and focus on the things we can bring to market that will make a difference. >> what are your clients biggest paying points? >> great question. so diverse we need a whole
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session to discuss it. when you think about capital markets to retail banking, so many different things our clients need. we launched in the fall something called proximity. this is a product that came to being at citi from two people who worked at citi for 20 years. they knew that if you are a shareholder, it is a pain when you get the proxy statement and you have to vote. you want to vote. you want your voice to be heard. but, it is confusing and there's not much time to do it. imagine for an institutional investor who holds hundreds or maybe thousands of positions. it can be a real black box in terms of whether your vote is being counted. proximity is real-time transparency into a critical --ce of corporate net corporate governance. increasingly important not only for corporate but also for , investors who might not be activists but who are very interested in what is the agenda at the corporation that they are shareholders in. it is that kind of thing,
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launching some like proximity, that helps our clients deal with something that is difficult to navigate. it's been very excited to see an -- to see. emily: i want to talk about diversity technology and one of the interesting things i have learned is wall street is fairly close to 50/50. women are better represented than silicon valley. i am curious what diversity is compared to the typical silicon valley venture capital firms. we take diversity extraordinarily seriously. we are quite a diverse group. we have male and female investors of different ethnicities. we also focus not on who we have in the company today, but the next generation. we launched last fall a program called cupid, matching university students with innovation projects happening at citi. it is 53% women. over a third of those people are
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not mba's. they are people from public policy backgrounds or design backgrounds. we think of diversity in gender and ethnicity but also , perspective. who is at the table? for the everyday conversation, where it matters whose voice is there and who is shaping the conversation. emily: good to hear. thank you so much for joining us. and our very own selina wang. >> thank you. emily: coming up airbnb's big , announcement that could lead to a more mainstream approach. how the startup plans to take its competition with online travel agencies to the next level. this is bloomberg. ♪
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emily: the federal communications commission says
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it will officially publish its order rolling back obama era net neutrality rules. that is the journal that lists new rules. the move is likely to open a floodgate of legal challenges from parties opposing the changes that empower internet service providers. already 22 states and the district of columbia have joined the legal battle started by mozilla and another. airbnb is looking to go more mainstream. they will also highlight hotels and add a loyalty program. they want to become a full travel service firm to better compete with expedia and other booking holdings. our guests join us now with more on how the company stacks up to the competition. olivia start with the , announcement today and why the company is taking the more mainstream approach. >> he made a really big
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announcement today about the roadmap to making airbnb more for everyone, making airbnb like an online travel agency like booking or expedia offering , hotel rooms and boutique hotels and services and amenities that are more hotel-like. the company is doing that because they want to launch an ipo in the next two years and really be a formidable opponent, competitor to these larger corporations. emily: what do you make of this move? is it the right move? kevin: it is important to point out that the online vacation rental industry is booming. we estimate there are $40 billion in bookings last year between the major players. that will go to $80 billion by 2020. airbnb is doing very well in that category. the event today was absolutely the right thing to do. it was all about taking rentals to the next level and driving them to be more mainstream, to improve the overall booking experience for their customers and to really just get to the next level of penetration being already a large company with 20
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billion bookings last year. emily: what does it mean for hotels? is this not great for hotels? is it new business for hotels? olivia: one thing to keep in mind is they are not opening themselves to every hotel. they made it clear that they don't feel that large hotel chains, the marriotts of the world, the hiltons of the world, are welcome on their site. they are going to smaller hotels, boutique hotels, mom-and-pop ones, and somewhere between. this looks very promising for hotels because they are charging such a low commission, about 3% to 5%. which is great for the hotels, compared to expedia or, which takes on average about 17%. emily: what do you think it means for the major hotel chains that this will not include, like hilton, like marriott, many of whom, if you try to pick a room, it is not a seamless process.
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the user experience is not that great. kevin: olivia made a really good point here in differentiating what kind of hotels airbnb has added to the platform. we think they made it clear they are positioning themselves against the big hotel chains and really try to attract boutique hotels. we were looking at their commission rates a low -- a little bit differently. they have an all intake rate of 13%, that is airbnb. it is still cheaper than the online travel agents are offering that will be , attractive. overall, they are going after the boutique hotels. they don't appear to be interested in the hotel chain business. emily: going forward, how does this impact airbnb's future roadmap? there's been a lot of personnel changes at the company. is this airbnb starting fresh? olivia: i wouldn't say this is
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airbnb starting fresh. this has been in the works for years now. the company did go through executive changes recently. the cfo stepped down. we might start to see a lot of fallout from that. the company has been under scrutiny from some investors who were pushing the company to go public sooner than perhaps they wanted. this is a company that is like a rocket ship taking off. hold on. they are seeing a lot of growth. users really seem to like them. they come back. they have 4.5 million listings on their site already. so hotels would just add to that. emily: all right. thank you both. coming up, snap sinks. how social media influencer kylie jenner wiped a million -- a billion dollars off the company's value with a sweet --
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a single tweet. this is bloomberg. ♪
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emily: snap ceo is one of the highest-paid executives in the united states in 2017. he received a $638 million. almost all of that in the form of a stock grant. company with snap, the can't seem to keep up with the kardashians. kylie jenner may have added to the social media company's woes with a single tweet. selina wang it joins us now. snap closing down 6% because of this snap earlier. does anyone else not open snapchat anymore, or is it just me -- it is so sad. is that stock dropped entirely because of kylie jenner?
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>> it is not entirely because of kylie. it was already on shaky ground. so any little bit of news will create a significant drop. it happened last month when i wrote an article about twitter coming out with a competing camera product and that caused it to drop. ylie is extremely influential on media, she has 25 million followers on twitter. she is hugely popular on snapchat. so her saying i'm over snapchat, the fear for investors is that it will trickle down to her millennial followers who will also think that snapchat is no longer cool. emily: it is interesting after snap reported it strongest quarter ever. >> absolutely there was a huge , investor reaction to that positive earnings growth. we have to remember it was positive earnings because it was incredibly low expectations. investors have slowly lower the
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bar further and further for this company. there is slowing revenue growth but there base is growing at a steady rate. do we know about growth among younger users and popularity? facebook proper i know we are not as worried about, but instagram is really a problem. rolled outtagram their stories product there was , a significant drop in the usage of snapchat. there's anecdotal stories about millennials switching entirely away from snapchat to instagram because it is offering a lot of the same services. a big concern for investors is snapchat's redesign. it is complicated to use. they have been shined to make it easier. but the attempt has caused intense backlash from core user base. the fear that this will not rejuvenate user growth. emily: quick thoughts on evan spiegel's enormous payday? >> like many ceos, he decided to
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reward himself a very large stock of grand. this amount of $636 million will be awarded over the course of several years. again, it is not great for employee morale when the ceo of your company is making this much money and your company is still unprofitable. thanks so much. that does it for this edition of bloomberg technology. we are live streaming on twitter, check us out. that is all for now. this is bloomberg. ♪
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