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the phones of michael cohen in the weeks leading up to raids in cohen's offices. housesociate in the white has also been intercepted. the white house responding to a claim by rudy giuliani that north korea plans to release three imprisoned americans. >> we can't confirm the validity of any of the reports about their release. we certainly would see this as a north koreawill if were to release the three americans ahead of discussions between president trump and kim jong-un. mark: the president celebrating the national day of prayer by signing an executive order creating a white housemark: theg the national day of prayer by signing an executive order creating a white house faith and opportunity initiative that will, among other things, make recommendations on policies that
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affect faith-based and community programs. the ntsb says a wornmark down fn blade snapped on airlines flight last month. one passenger was killed. the ntsb says last inspection of the blade was november 2012. global news 24 hours a day on air and on tic toc on twitter. i'm mark crumpton. "bloomberg technology" is next. ♪ emily: i'm emily chang, and this is "bloomberg technology." coming up, tesla's tantrum. elon musk was blunt with shareholders in an highly unusual earnings call. startups have been catching up to silicon valley. we got up with a partner at union square ventures. the largest public offerings in years. omi filed to go public with an eye-popping $1 billion
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valuation. tesla ceo elon musk heated conference call after the company reported earnings wednesday. turned out musk's responses overshadowed the company results, which the expectations. then came what an analyst described as a truly bizarre earnings call, where musk had a blunt message for investors. >> if you are concerned about volatility, you should buy another stock. do not buy it is volatility is scary. there you go. emily: musk was especially combative with two analysts in this exchange. >> where specifically will you be -- elon: next. more boneheaded questions are not cool. next. >> can you let us know what percentage have actually taken steps to configure -- elon: we are going to go to youtube. sorry. these questions are so dry.
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they are killing me. emily: investor response was shift. shares of tesla fell 5%, its worst performance in less than a month. musk built up his reputation as a showman, ushering in new technology to the masses, but is the tide of public opinion turning? , an analystt shah instinet. how would you describe this? romit: it is a shame the call went to the way it did. i felt the results were positive. tesla showed quite a bit of progress on model three production. they showed quite a bit of physical discipline. we have seen cap x coming in for the year. close profitability.
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importantly the company reiterated that they do not need to raise capital this year. unfortunate the way the call went. if it wasn't for that, the stock would have been up 5% instead of down 5%. emily: fairly promising results, then he kind of train wrecks the opportunity to explain them. >> exactly, shares were up after the earnings hit, but as soon as he cut off analysts, it started dropping. it was a dismissiveness of wall street that it was taken aback by. the more he kept talking, the more shares kept dropping. they dropped further today. emily: you have analysts pushing back. here is the quote earlier from volatility. >> i completely understand your frustrations. i am frustrated too in how my office is right now.
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they also say great years are made out of quarters and great decades are made out of years. volatility has a way of shaking re strongt, even that a and want to be there. people arenk if concerned about volatility, they should definitely not buy our stock. do not buy it if volatility is scary. there you go. emily: and yet romit, you still have a buy rating on this stock. why? romit: i think this issue is temporary. over the next couple days we won't probably even be talking about it. we are optimistic about tesla. they are growing. it is a multibillion dollar company growing at an unprecedented rate. we have seen a path to positive ash flow and a valuation that put the stock north of $400 over
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the next 12 months. emily: i want to push back on that a little. over the next several weeks, we have been talking about elon rogues wrote tweets -- himts, this earnings call, tweeting about spacex. what do you think about his state of mind? romit: i am not in the position to comment on his state of mind. the number one thing as it relates to this company is production of the model three vehicle. if you look in the third quarter, they produced 200 vehicles. in the fourth quarter, they produced about 1500 vehicles. in the first quarter, they produced the most 10,000 vehicles. in this quarter, wevehicles. in the fourth believe they will produce over 30,000 vehicles. the progress is tremendous. once they get around the summer months, we think they will be
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producing around 5000 cars per week, and they will be profitable. once they get over the hump on production and the turn of profit, i think the conversation is going to completely shift from free cash flow and the balance sheet to market opportunity. you look at this company -- they are competing in the market that is about 100 million units. they are just a very small fraction of it tonight with a tremendous amount of growth. we are optimistic about the company's prospects. we are a big believer in the product. in the long run, i think elon musk is going to be very positive for shareholders. a andre -- are investors worried about this behavior, despite the numbers? >> yes. shares started dropping once he started talking.
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that is phenomenal to me. the shares went down further today. >> yes. shares startedi think people ar. even though he publicly said something every ceo would like call -- yournings don't treat analysts this way. he was berating them. calli don't think there has ben earnings call quite this combative and a longtime. people are comparing it to enron. emily: still he has someone who has been glorified and idolized, pushing the bounds of technology. do you think this could fundamentally change his reputation for the longer term, all of this piling up? >> i don't know. it is very trump-esque in that his diehard fans love the call. when he said we are going to go to youtube, he is referring to a retailer investor who had a youtube channel. he got in 13 questions about roadmaps. they were all good questions, but they were not financial questions. you have people on twitter
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saying, i love those questions, i wish all calls were like this. his blowing up of the earnings call was quite popular. it will reinforce the attention of the lovers and haters, bears and bulls. i don't think it is going to shift. i think people will double down on the positions they already have. emily: romit, you are still bullish, but i want to talk set, the production goals which tesla and elon musk have failed to meet time and time again. do you buy they can start set, producing 5000 model threes a week later this year? romit: i do. like i said earlier, look at the progress. in the first quarter, the increased production by a factor of four, to thousand vehicles. -- to 10,000 vehicle. april, they were producing
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over 2000 cars per week. i think there is a clear path to 5000. emily: what are the concerns ,if you have them? there are service complaints, autopilot issues, new models that are supposed to be unveiled yet.haven't romit: the most important thing about this company is the brand. it is a brand i think consumers would associate -- the only comparable is apple and the iphone. if that brand were to be damaged in any way, like in the form of a major recall, then that would be my biggest concern. , andally haven't seen that hopefully we don't. emily: romit, i just want to close out with you on a conflicting opinion from another analyst who said earlier on bloomberg television, there is
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incremental concern when on a financial call, the ceo does not want to talk about results. the readthrough is that the ceo doesn't care or is focused on those financial metrics, or ultimately the numbers don't tell a good story. either of those interpretations not particularly comforting. romit: i think he's a great analyst, but i disagree with the conclusions. i think you have an executive who is sleep deprived. he is spending nights in the factory trying to figure out production. the company has had to deal with an onslaught of negative press surrounding passenger safety and accounting and executive turnover. reached a boiling point. this was, in essence, a steve jobs moment. reached ai wouldn't blow it ouf
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proportion. call unfortunate that the did, but it is temporary. for viewers who are willing to be somewhat contrarian, you whatat what the stock did, is the opportunity for tesla over the next couple years? i think you will find this is a very interesting story, a very interesting stock. you certainly have to be a believer in the product, in the model three. if you are not, then you should probably drive one. emily: there are people who own these cars who absolutely love them. there is an argument to be made if he could keep the executive he had to run the production line, he wouldn't be sleep deprived. dana: or if he filled out his ranks, he could to get some sleep.
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tesla only named four executive officers. that is pretty small for a company that has 40,000 employees. emily: company earthlings -- company earnings earlier from gopro exceeded analyst estimates. this may suggest the struggling hardware company is still attracting consumers, despite growing competition from cheaper alternatives. gopro shares have plunged 34% this year. investors may be just less than impressed with the company's efforts to revive the business. coming up, bitcoin rose to a two-month high after news gold goldman sachs is moving forward. s ho --bull check us out on bloomberg and sirius xm. this is bloomberg. ♪
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emily: twitter advising all of its users to change their passwords. this after they found an exploit internally. twitter said it removed the exploit from the system. an internal investigation claims to have found no misuse or breaches in result of the flaw. users are urged to change passwords for services using the same password. the cryptocurrency bitcoin rose to a two-month high thursday amid optimism that goldman sachs is moving forward with bitcoin derivative trading operations. should the bulls curb their enthusiasm? a report warns of a potential 90% correction in crypto assets over the next 12 months.
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in london, we have bloomberg's caroline hyde with more. caroline: thank you very much. a key focus of the company that has been looking at this particular token frenzy report is james smith, cofounder of crypto interventions -- crypto intelligence. the report says the 90% correction flushing out most of the company. do you agree? >> i do not agree. there have been many productions, and someone is going to be right. what we saw at the beginning of this year was a correction from the highs crypto hit toward the end of 2017, with probably something like a 75% correction. that getsws a pattern carried multiple times through the history of bitcoin. crash,e periods after a
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we often see consolidation and a great rebuilding for the industry. there may be a correction to occur, but i doubt we will see a 90% hit from this point. caroline: so correction aside, we are still seeing money come into the area, whether initial coin offerings, or getting into blockchain companies. interestingly in europe, vc funding has been going up 75% in the last couple years. are you noticing the difference europe, that is growing at a different pace, the money coming into the sector? james: it has definitely grown over the last few years. ease with which you get into conversation with investors different is totally than it was five years ago. i think one of the factors in that is there are some real hubs
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of activity around crypto in europe, particularly in switzerland, where a lot of early crypto community is based, and a lot of spin outs have occurred from that. lots of early core developers have come up with ideas and built businesses around that. caroline: berlin, london -- you are going to raise more money at some point. are you looking to the u.s. or europe in terms of vc funding, or your own ico? where do you look when you are based within the blockchain industry? james: we have taken the traditional route of reason vc funding -- route of using vc funding. we have thought about the possibility of an ico, but it has been helpful for us to work with vc's.
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it has been helpful to get both the advice, but also i guess the carrot and the stick you get from vc. one of the worked, money is put into the point where there is not a lot of one of the problems i have seen direction, there is about the issues they have with the fcc. caroline: the role of elliptic is a cryptocurrency intelligence company. you are rooting out bad actors, bad institutions. direction, there is no stick. that is how you can see money wasted in some ways. not even thinkingare you seeingg on your door, i want to get into the blockchain, public or me?ate, can you help me? james: we help prevent criminal activity in cryptocurrency. we are positive about the future of cryptocurrency. we think one of the key building blocks that is required if the
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industry is going to reach its potential is an ability to the stick was between criminal activity and legitimate activity. there is certainly criminal activity out there in many forms. caroline: as much as everyone speculates? james: how much are they speculating? caroline: many -- it was born out of the silk road. james: five years ago, all that hit the media was silk road -- guns, drugs -- that is only a small part of the story. the vast majority of crypto activity is perfectly legitimate. days is it these about speculation. there is some activity around web, money the dark laundering. we want to provide services to legitimate businesses to grow without having that risk.
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moment, funding is moment, funding is more in the u.s. for cryptocurrency blockchain companies than in the u.s. and asia. do you think that will always be the case? there has been a lot of i don't see that reversing anytime soon. there has been a lot of growth in europe and asia. the u.s. has a lot of money to invest in technology. i do think asian particular is becomingi do think asian partics becoming a really -- asia in particular is becoming a really dominant region in cryptocurrency. we are seeing new elites come up in that area. smith,e: that was james ceo of elliptic.
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emily:emily: caroline hyde for n london. thank you so much. shares ofemily: caroline hyde fn london. thank you so much. shares of spotify turned in their worst performance since becoming a publicly traded company last month. why
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emily: spotify severed his worst stock decline since becoming a public company. investors were not impressed with a 45% jump in subscriptions last quarter, even though it matched spotify's projections. there has been bullish sentiment, rising 30% over the last few months. instagram added a native feature that allows some users to shop without leaving the app. this according to a techcrunch report. the feature lets users register debit or credit cards as part of a profile set up with a security liveo make purchases, now for a limited set of partners. goldman sachs and comcast behind a winning -- a wedding planning
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startup, letting them exchange gifts. roughly valuing the company at $600 million. about the newtalk york tech scene with one of the biggest vc's based there. that is next. bloomberg tech is livestreaming on twitter. you can check us out 5:00 p.m. in new york, 2:00 p.m. in san francisco. this is bloomberg. ♪
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mark: i'm mark crumpton in new york. you are watching "bloomberg technology." the head of spain's regional government -- the comments came a day after said in a letter to the basque people its political journey has ended. european commission president jean-claude uecker is appealing to belgium to grant nationality to british staff ahead of brexit. more than 900 british citizens work at the commission. in belgium for years. a reunify cyprus may not be a reality, according to a turkish ineign ministry official talking about resolving the island's decades long division. a possible shift from long-established perimeters over four decades. italy's president summoned the feuding political leaders to a day of talks monday to seek a way out of the two-month
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impasse, after five-month rounds of talks between the centerleft populist movement and democratic party yielded no prospects for a a majority. global news 24 hours a day and twitter, powered by 2700 journalists and analysts in over 120 countries. i'm mark crumpton. just after 5:30 p.m. in new york. my colleague paul allen has a look at the markets. good morning. paul: an afternoon rally in the in majorred out indexes in major indexes ending lower.
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the dow kind of flat. back afterussie dollar pushing getting a boost from strong march traded numbers. the u.s. dollar also weakening against most g10 currencies. oil higher again above $68. gold gaining. we are waiting on the u.s. jobs report and the number of other things to look out for as well. the u.s. trade talks continuing in china. on.a services ppmi later alibaba earnings out before the reopened in the u.s. more from bloomberg technology next. ♪ emily: this is "bloomberg technology." i'm emily chang. union square investors has invested in some of the biggest names in tech, from twitter to
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etsy. they are a backer of coinbase and cryptocurrency. became the first female partner, joining the in san francisco. you are going to move there. you have invested in periscope. what has the transition been like thus far? >> it has been really awesome and exciting. i think the interesting thing about venture is all these firms are a pool of capital and a collection of people, supersmart people who are going to dig into it and talk about the early missing stuff of companies and trends. emily: you have already made some investments. ecca: i have made three investments so far. we are hitting it running. emily: when you look at the
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broader landscape, where you see opportunities? what is overhyped, what is under hyped? are hypei think there cycles all the time. by the time you're in the hike cycle, you are chasing the core that is already involved and chasing what is next. we are very thesis driven. we try to block out those hype cycles a little bit and think about, what are a couple things we can believe? what can we make bets behind? emily: so what do you believe? rebecca: one is broadening access to new markets. we think tech is focused on the top of the pyramid and early adopters, which makes a lot of sense. we think now that these platforms and protocols are created, it is time to leverage them to hit the broader market. we are doing that across
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financial services, consumer health, marked by old-school brands where new stories are resonating with users and can hit the mass-market. emily: i know fred wilson is really excited about it. just read a story about someone predicting a 90% correction in cryptocurrency. regulation could be coming. are you concerned? rebecca: the thesis on crypto decentralization, the idea that massive platforms, the googles and amazons, which have done a lot of good for users, but on the other hand aggregated the web in a certain way. it has created the need for a decentralized internet. our thesis is around decentralization. we believe crypto is going to rise and fall and take a while
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to even itself out. significantare consumer use cases, it is a volatile asset. we are less concerned because we see that in the short term. we believe in significant consumer use cases, it is a volatile asset. we are less concerned because we see that in the short term. we believe in decentralization in the long-term. emily: you got a ba in english, started your career as a journalist. if you have so many venture capital firms saying you need a stem significant consumer use cases, it is a volatile asset. back on to do this, therefore you can't find any women. what is your response? rebecca: my response is to email me and the women venture capitalists devoted to changing that. i think there are fantastic candidates. the story of venture, what makes it such an exciting industry is there is no single path. there is no story that guarantees success. emily: so you don't need a stem degree. rebecca: no. vc's of allbest
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time, the people we admire today. so is mike morris, who is a journalist, and bill gurley. emily: mike morris said to me, not enough women are studying 'l and we are not prepared to lower our standards. rebecca: i do remember that happening. i think that is a myth around this industry. the great thing about venture, there are factual returns, and firms that create them. this isn't that fuzzy when you are willing to take a long enough cycle. part, come from stem as a but it is not the whole. emily: so is it an excuse? stem,rebecca: a total excuse. on the one hand, people are not looking hard enough, and on the other, awesome things are happening. email us. reach out to the world that are going to make hires to make this change. it is not going to happen tomorrow, but i am optimistic.
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emily: it is not just about hiring, it is creating an environment where people of different doctrines can be equal stakeholders. --tomorrow, but i am differente equal stakeholders. wondering about you joining a firm that is very tightknit. rebecca: i stayed with my partners for a long time precisely for that reason. wondering about you joining a firm thatthese firms are smal. they are familiar. they are based on trust. ial.hey are famil they don't just by overnight. for me, the transition has been smooth. i credit the time we spent together before. and two, they were open to it. new ideas were not scary, they were exciting. the idea that i was different was an asset, not a problem. firms that don't have that are not going to have success. emily: i want to talk about this new nonprofit you are part of working to increase the number of females getting funded and hired in venture capital. some men have said to me, can we
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really change things if we are not working together? then have felt left out. -- men have felt left out. rebecca: which is ironic in some ways. we actually agree. the story is trying to do a lot quickly. we started with a group of very devoted female venture who already knew each other. we are already helping each other, how do we hope this industry too? it has spiraled from there in many exciting ways. i am proud to be part of what we are doing. they have been instrumental to my career. we agree this is a goal that needs to be industrywide. one of our initiatives is specifically around that. we started to reach out to male vc's and invite them into the fold, how can you help? where is the intersection? it has been exciting to hear their response.
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we are on the same page. more coming soon on that. emily: wyou are getting ready to move to new york. new york has a great tech scene, lots of open covers, -- of up and comers. rebecca: i think we are emerging in that direction. what we need in new york is exactly what you said -- new york is an awesome breeding , right nowt now announcing $100 million financing behind the consumer company --that doesn't happen every day in new york. we need the behemoth. siliconthe pillars that valley is built on and take the risks and not the early exits. i think that is taking time. as they lead the next
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generation, i think we will see that within the next three years. speaking of behemoths, softbank has almost $100 billion to invest in. that speaking of is competing wr money. that is shaking up the system a little bit. how is that changing the political landscape for you? have you had conversations about competing with this amount of money? rebecca: yes. i think that is more competitive at a later stage point then an earlier stage point. i think it is significantly changed the landscape. we are early-stage investors. we find one, it is extremely driven.ship starting a business is emotional as much as it is tactical. the connection with an entrepreneur who believes that he believed in them and are going to be partners -- that you
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believe in them, confidence matters. we think we can do that. i think the thesis driven nature of the firm means we have inviction and 1can dig quickly with an entrepreneur. find it to be a powerful interaction. softbank has a big implication. of the early stage, at least not yet. nan from union ka square partners. we will be watching. how optimize injuring that you get your online content and keeping hackers at bay. that is next. this is bloomberg.
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emily: a voice-enabled ai raised $100 million in funding to compete with alexa's google and amazon. backers include samsung and nvidia. samsung plans to use it as a third-party option to amazon alexa. oundhound allows to deploy anywhere while maintaining content and users. when it comes to streaming video, games, and more, a critical component. the company announced first-quarter results monday, which beat revenue earnings per share. stocks trading higher since then.
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its ceo spoke to bloomberg about online streaming and the online security services the company provides. >> security is not something a lot of people see. they see the sporting events online and they think of akamai way, but security is one quarter of our revenue. when it is growing 36% year-over-year, it may be a bigger business maybe than media. >> how do they compare with margins on the security side? >> way, but security is one quarter of our revenue. run the security margins are even higher. media, there is a cost to serve those videos. security, it is a different set up. in the longit is filtering outd traffic. exciting technology we have deployed to stop account takeovers. i was speaking with an exec of one of the world's biggest banks, and they used to lose 8000 accounts a month because the bad guys took them over with fraud. they are down to one or two.
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>> one or 2000? >> one or two. >> on the media site as you look forward to growth of is that because the overall size of streaming is growing? >> we are gaining market share. our traffic is growing at a rate much higher than the market. more people are watching online. that helps. also people are watching at higher quality levels. you don't think about it, but as you get a haeckel -- get a higher-quality picture, that takes more bits. >> how many people do you expect to hire this year? >> akamai is growing. i think you can expect to see us grow by several hundred more this year. we are continuing as a growth company. >> do you have to pay up for those workers? >> sure. [laughter] you have to pay. >> i am getting at, how hard is
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it to find those workers? in we arefortunate really after the smartest people out there. because of our employee base, they tend to attract those people. we are delivering in we are really after the smartest people most of the media easy online. we are defending the world's major banks and commerce companies against major takeovers and front. we are making the apps you use fast. --how many people are those how many of those people are going to be programmers? >> the majority of the company is programming oriented. there is technical support for our customers, staying ahead of the attacks in technology requires a strong technical workforce. >> can you find enough people in the united states, or do you need to have some immigration? >> i think immigration is important for the country. we are able to attract the
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talent we need. we also higher overseas. we run a global business. -- we also hire overseas. ceoy: that was akamai speaking earlier on bloomberg television. the week of may 1 we will be broadcasting live from how --
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emily: the pentagon has banned smartphones made by two chinese companies. the defense department says those phones and related products pose a security risk to
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military personnel and operations. note what the risks were. we want to -- zte has yet to respond. sticking with the chinese smartphone maker, xiaomi kicking off a process that is expected to raise at least 10 billion u.s. dollars. the ipo could be the largest since alibaba in 2014. the chinese smartphone makers had revenues surged last year, a blistering pace of growth that will help it take on apple and samsung. we want to head to hong kong and bloomberg's correspondent stephen engle. the founder of xiaomi was once hailed as the next steve jobs, then things went south. what is driving this turnaround? was in equitable
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success story when it was founded in 2010. i remember interviewing the cofounder, one of the first foreign journalists to get a look in this booming company. we had no idea it would become this large. they were a victim of their own success. in late june, something of a rockstar, being compared to steve jobs. he said he was more like jeff bezos. either way, they have an overaggressive expansion plan. they really expanded very fast. -- cheaperpetitive and theyrs came along, lost their way in little bit. growth went down into the single digits. late june growth has turned things around of this ipo, which could be listed in hong kong this year. as well, upper end
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recapturing some of the blistering growth they saw in the early days. emily: how does this set up the hong kong market to challenge new york as ipo came, -- ipo king, or queen? stephen: hong kong did not allow dual class share structure, despite having a minority shareholding, they would maintain control. hong kong has changed those laws to capture what has been a hugely successful run of chinese technology companies coming to market. 2014, takingin their $24 billion ipo to new york, jack ma could keep control with 2014, taking their $24 billion ipo to new dual class shares in new york. they did not want to have
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violations of corporate governance and transparency. they have changed the loss. -- changed the laws. a bit controversial, the thought that beijing dual classw is exerting more control. xiaomi saw this as an opportunity to main control of the company. others are lining up as well, a ridesharing company and financials of alibaba looking to go public this year in hong kong. emily: big questions looming, whether these companies can carriers to sell phones in the united states. not only to challenge companies like apple and samsung globally, but in this market. stephen: that will be tough. phones in the united states. not only to challenge companies we have been reading stories on blocking of other equipment network makers. xiaomi is going to use the proceeds of this ipo to look at international expansion. they have gone successfully into india as the number two vendor. the united states would be a
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stated goal, but it would be a tough nut to crack obviously. emily: stephen engle, thanks so much for joining us. that does it for this edition of "bloomberg technology." friday we will be covering earnings from another chinese text giant, that would be alibaba. we are livestreaming on twitter. in news out 5:00 p.m. york, 2:00 p.m. in san francisco. that is all for now. this is bloomberg. ♪
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an afternoon rally sputters for a second day. >> the white house has seen a positive start as the u.s. details its demands. trump changes his story on stormy daniels, admitting he did repay #any. >> and not cool. tesla tumbling after you unmask had


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