Moon, super big and superbright. The first time in 15 years of bloomberg has synced up with a supermoon and a total lunar eclipse. Global news, 24 hours a day, powered by more than 2700 journalists and analysts. This is bloomberg. Emily im emily chang. This is bloomberg technology. Coming up, facebook, hit and miss. Our look at fourthquarter earnings for the social media giant and the most concerning metric or wall street. For wall street. How microsofts push into the blockchain and the cloud added to its bottom line added to the its bottom line this quarter. How microsofts push into the as Travis Kalanick and larry page get ready to testified. Facebook reports its fourthquarter earnings results. Here are the highlights. Revenue coming in at nearly 13 billion, beating the highest estimates from analysts. Monthly active users totaling 2. 1 3 billion, while daily active users came in at 1. 4 billion, slightly below forecast, one of the most important metrics that wall street cares about. Facebook stock extended losses in afterhours trading, down 4 at the moment. Lets bring in david kirkpatrick, ceo of techonomy, who knows all about facebook, having written the facebook effect, and jitendra waral. One of the most surprising numbers is that daily active users in the u. S. Actually declined for the First Time Ever. Jitendra that raises the question about the changes they are making to the platform. It could be a temporary shift, if you may, to these metrics. But instagram and ad pricing still are big offsets for them this year. More commentary on the call will be focused on what those changes mean to the trajectory of the decline we are seeing here. Meantime, zuckerberg saying the changes they are making on facebook are decreasing User Engagement. How, you know, do you look at these results . David i wouldnt put too much importance on the drop in daily active users globally. Or the decline the miss, i should say. Mentions about an actual decline in the u. S. Is interesting and could be a response to facebooks manipulation of the way the newsfeed works. I want to point to something in the release that really makes me wonder how the world ought to respond to this notion of them making these changes to try to make us all do better. It is a very manipulative attitude. Listen to what he says. Weve made the decision to show fewer viral videos to make sure andles time as well spent, we reduced time spent on facebook by roughly 50 million hours every day. Thats global. Doesnt that sound a little bit like geppetto with the strings of pinocchio or something . Oh, we are going to show you fewer viral videos because we know whats good for you. I think they are on very thin ice with the way they are handling these problems, and its very hard to know what really should be done, but im not sure that just telling us to watch fewer viral videos is the answer. Emily facebook Earnings Call has started. The cfo speaking on that call. You can watch the live headlines as they happen on our blog on the terminal. Jitendra, is this facebook is swinging in the opposite direction, trying to do better for its users. Have instagramdo up their sleeve. That platform is headed towards one billion people. It is just in the beginning phase of monetization, and it could be much more material in terms of revenue contribution longterm. Ad pricing offsets and instagram will be core points. As far as changes are concerned, if they are able to show that this trajectory of daily active users is just temporary, but the, amount of time eventually improves i think the r. O. I. Will show up. Emily do you think they will have to make these hard choices on instagram as well . David its interesting that instagram hasnt been hit with the same kind of concerns as evenooks core platform, as instagram is clearly getting more and more advertising revenue. That, want to point out despite all the political and social challenges that facebook faces, though, the financials of this quarter are spectacular. Have the highest operating margin they may have ever had. Their profits their revenue went up just about 50 , but their costs only went up 30 . Thats 12 billion per quarter revenue runway. This is a profit machine that has a lot of money to experiment with these many problems that they need to solve. Emily i also want to point out another number. There is increased headcount, 47 yearoveryear. They now have 25,000 employees. We know they have been hiring people to combat things like combat things like offensive and disturbing content. What do you make, jitendra, of the sheer scale at which the Employee Base is growing to respond to some of these concerns . Jitendra they have a lot of unmonetized properties as well. You have messenger, whatsapp. On top of that, i dont know if hiring people is directly correlated to the actual impact of that, in terms of reduced fake news and better Quality Content and things like that, but at least they are making the effort. On whathis year based Mark Zuckerberg has said, that number might be even bigger. Emily zuckerberg speaking on the call right now. You can see what he is saying. Reiterating the importance of personal connections and how actively consuming public content takes away from the time people spend connecting with each other. So, there you go again. David, to some extent, sort of moralizing the way we use facebook. Going strong there. David moralizing is an interesting word. Clearly, the world wants facebook to have less of a toxic effect on society. I would argue, on balance, facebook still has a phenomenally beneficial effect on society, but there are some very toxic components that we have here it have been hearing about, whether it is addiction, but a legal addiction, political manipulation. Ask yourselfing to whether the world wants these people with very little transparency to be the ones kind of telling us whats good for us. I think it is a very slippery slope. I think they could get some pushback for that itself. It just underscores what a challenging position they are in as they try to make us stop thinking that they are doing us harm. Also Mark Zuckerberg saying that facebook will focus on videos that encourage meaningful social interaction. That decreased time spent on facebook by roughly 50 million hours per day. They dont normally share exactly how many hours are spent on facebook. Lots to digest here. David kirkpatrick, ceo of the economy, thank you very much. Jitendra waral, we will continue to go through these numbers. We will bring you all the updates throughout the hour. Beingergs top live blog, updated by the Bloomberg News team by the second. Staying on earnings, paypal is sinking afterhours, issuing a forecast that fell short of expectations, signaling struggles ahead. Paypal is looking to compete with banks and startups in the transaction market, but growth slowed. Enmo Service Coming up, we are staying on earnings. Continued growth in Cloud Services helped fuel microsoft results. We will break down the numbers, next. We are livestreaming on twitter, technology, 5 00 p. M. In new york. This is bloomberg. Emily lets continue our coverage of tech earnings. Microsoft topping analyst estimates for Second Quarter revenue. Charge caused the company to report a loss. Cory johnson joined us from new york with more. Microsoft getting a boost from azure, but there is this tax issue. What are your takeaways . Cory a little confusing. I think we will see this with a lot of companies as they figure out what the new taxes mean for them and repatriation issues. Which is tricky. The company is starting to hide stuff the companies that are starting to hide stuff will use nongap numbers to sweep stuff under the rug. The good companies, including microsoft they have been very conservative over there numb over their history. The nongap numbers are spectacular. And the Revenue Growth we see from this company, really fantastic. The big takeaway here, to me, is accelerating growth in their Cloud Business. The Cloud Business is growing at about 96 , now growing at 97 , 98 . Its going to grow even faster. Thats what we saw from the results. Satya nadella has done a seemingly impossible job of turning the bankruptcy of the battleship, changing the culture. Not too long ago, we were talking about was microsoft going to be microsoft 10 years from now. Now we are seeing a company doing terrific under his leadership, doing things that Steve Ballmer couldnt get on. Emily the cloud was met ella was his baby in earlier days. Do you think microsoft is on a path where they could seriously rival aws in the clock would in the cloud, even as the cloud itself is expanding . Number two the player, nowhere near competing in terms of size. I think what we might see, and it will be curious we will get these questions on the call, what kind of customers are going to the microsoft cloud . Amazon has been strategic in the way they talk about who is using the cloud to say, hey, we are not just the startups in silicon valley, not just the hipmunks of the world. We not just these little startups in silicon valley. There Big Companies like cia, netflix. We are competitors like netflix. Even ibm, using the amazon cloud, in addition to having their own cloud. We will see what microsoft will tell us about their own customers. One might expect the fortune 500 customers who are already buying fromeven ibm, using the Amazon Microsoft and buying microsoft to distribute it on the cloud would be the azure customers. We will see what they say about that on the call. Emily qualcomm, disappointing revenue and profit forecast. How much of this has to do with slowing smartphone growth in general and a decline in the use of qualcomms chips in favor of other alternatives . Cory i think the big question isnt just the headline of slower smartphone growth. Are they getting paid by users of their technology . China was not going to pay. They struck a deal with samsung. Again, the devil is in the details here. We will find out if qualcomms customers are paying them for these chips. They have got a lock on a lot of the ways that the cell phones work, smartphones work, but slowing growth in that area will be a headwind for them. Getting customers to pay is the bigger problem. Emily this is perhaps the last chance they had to show shareholders that come should remain independent as broadcom tries to take this company over. How well are they making that case . Cory they are not making the case strongly, but it will be difficult for broadcom to pull this off and convince shareholders and regulators that we need fewer Chip Companies out there. Go ities, when they alone, tend to do a better job when they are in a conglomerate. We will see what they can put up. These results are not the we are doing great all by ourselves, we dont need your help. Investors will want to see if these guys can do a better job. Emily cory johnson, thanks so much. You will be coming back later in the hour to break down these tech Earnings Calls. Sheryl sandberg, coo of facebook, just starting to speak on their call. Kroger is striking back at amazon. The largest pressure chain in the United States is expanding its socalled scanbaggo technology to 400 stores. This allows customers to use a handheld scanner to log items. Coming up, creating a workplace free from constant notifications and popups. Our next guest is trying to make that a reality. This is bloomberg. Emily square is getting in on the bitcoin bandwagon. The company is introducing Bitcoin Trading for almost all users of its cash payment app. The service will be available to most customers of square cash, which lets users transfer money to friends and family. Transactions happen within seconds. Percentage or a fixeddollar amount on to the sale of bitcoin. Notifications are everywhere today. Facebook likes, emails in your more, chat updates, and an almost neverending stream. Asan is trying to make surea employees dont have to face a is trying to of asana make sure employees dont have to face the barrage. The cofounder of facebook with whoerberg and rosenstein, famouscreate facebook button. Justin rosenstein, welcome to the show. Asanas valuation is at 900 million. Great to have you back on the show. Button. Justin rosenstein, welcome to the show. What is this money going towards . Justin one, being able to grow internationally. We have a huge footprint internationally. 192 customers have companies 192 countries have Customers Using asana. We want to enable more teams to Work Together. More price more Enterprise Growth and expansion across verticals. Emily what sets you apart from the other Workplace Collaboration apps, slack, facebook, microsoft, the giants trying to get into this space . Justin Companies Need three pieces of software to be able to collaborate effectively, messaging, things like slack, files, like google drive and dropbox. There is a huge gap left around who is doing what by when and having the clarity you need to have responsibility tracked well, for everyone to know what the plan is. We are tracking it. This huge ascent this huge market that asana is leading. Emily youre focused on calendaring and scheduling . Justin what are the steps now left between a call pushing your goal . Who is responsible for what are the steps that are left now between accomplishing your goal . Who is responsible for what . People spend an enormous amount of time on email and meetings and tasks and status updates. All this work about work, just to get everyone on the same page. Asana gives everyone that clean same page so everyone can see exactly what needs to happen. How much more do you think you are effective than you were before . Customers report an average of 45 improvement in what they are able to accomplish, which seems like a staggering improvement. Emily we often talk about whether certain businesses are a zerosum game. Not all businesses are. Obviously, facebook became a monopoly. Google became a monopoly. What makes you think there is room for all of these different Workplace Collaboration apps when we are already app overloaded . Justin within each vertical you will see a lot of consolidation. Here is going to be consolidation within messaging, within files, and within work management. Those tools work symbiotically. We partner well with slack. Within work management, you will see the emergence of a single leader. We are already very wellpositioned to become that category leader, that category , amongs a result of that all those systems, we are the only piece of software that is both easy and powerful. It is easy to get started, but theres no way you can scale to a large organization. You will see clunky, Enterprise Software that is so hard to use, people dont use it. Weve seen companies of so many industries, whether from nasa to national geographic, from Navy Federal Credit union to general electric, or nonprofits like teach for america or even governments like providence, rhode island. They are able to adopt asana, because every organization has real needs around being able to Work Together more effectively. Emily are you trying to decrease notifications . Justin a lot of the notifications this constant continuous partial attention you get into where you cant get into flow or focus. Someone just sent you a message or someone just emailed you. Email becomes someone elses to do list. To be maximally focused, maximally inflow to get the most on, you want to have clarity on what are all the things i need to accomplish, what am i responsible for in priority order. It turns the paradigm on its head and shows you calmly all the things you need to do in the right order so you can mindfully proceed in your work. Emily overwhelming nature of notifications is in part a symptom of this company you were integral to, facebook, which is now under fire for fake news, for being addictive. What is your perspective on that and facebooks responsibility . Justin im really glad that, as a culture, we are finally having this important conversation about what role do we want technology to play in our lives. People often over simple fight to technology is all good or all evil. Technologists have a core responsibility to Design Software mindfully. How can we maximize the amount of good that it is doing and minimize the amount of harm . Thats something we have been focused on at asana from day one, helping people to align their attention with their intention. I hope that all Software Developers around the world are thinking about that more and more. Emily we were talking about facebooks earnings earlier. They are doing things that they feel are better for users, but decreased time spent on facebook are they getting onto thin ice, or is that something they should be doing . Justin if you are truly a missionoriented company, then money the new round of fund raising we just did, think of it as the point of building rockets is not to have a lot of rocket fuel, just as the point of building to have a lotnot of money. Money is the fuel you need to accomplish your mission. You care you care about your mission, the more important it is to focus on whats good for users. I feel fortunate that our mission and Business Model are so well aligned at asana. Derivee that people value from asana, the more they pay us. In just the last year, we have had an 80 increase in revenue. It demonstrates that kind of value increase. Emily hence the investment from al gores fund. Justin rosenstein, thank you so much for joining us. The facebook call is underway. The cfo is on the call right now. Mark zuckerberg also speaking moments ago, talking about how time spent decreased by 5 in the Fourth Quarter. Alisa im Alisa Parenti in washington, and you are watching bloomberg technology. Here is a check of your first word news. Amnesty international is condemning President Trumps moved to keep Guantanamo Bay prison camp open. Amnesty International Feels that this is a disgrace, to have been detained for over a decade without any prospect of any fair trial. And now President Trump is proposing to increase that number. Alisa the organization past director of law and policy called the detention facility a stain on americas reputation. Government prosecutors have decided not to retry new jersey senator Robert Menendez on corruption charges. The first trial ended in a hung jury last november. Menendez was charged with trading his political influence for gifts and campaign donations. The trump administrations director of the centers for Disease Control has quit over a stock scandal. Brenda fitzgerald is accused of buying shares in Japan Tobacco after she was appointed. One of the cdcs stated goals is to reduce tobacco use. The u. S. Has awarded boeing 6. 6 billion dollars to continue managing them nations missile defenses. The defense contract includes adding more groundbased missile receptive interceptors and extends boeings role for six more years, bringing its total contract to 12. 6 billion. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im Alisa Parenti. This is bloomberg. Just after 5 30 p. M. Here in washington, 6 30 thursday morning in hong kong. We are joined by Sophie Kamaruddin with a look at the markets. Good morning to you. Sophie asian stocks face a mixed start. Digest,fed tone to which didnt do any favors for the dollar. Gold, looking steady, after faltering. L is on the rise despite u. S. Stockpiles rising the most in over a year. Asian investors will be on the lookout for inflation surprises in the region, with reports due from south korea, indonesia, and thailand. We have a key highlight from india. The budget is due. In australia, we are waiting on home prices and building approval. Futures pushing lower ahead of that. In tokyo, we are waiting for kobe steel. Im Sophie Kamaruddin. Up next, more with bloomberg technology. Emily this is bloomberg technology. Im emily chang. Shares of facebook falling in afterhours trading after reporting fourthquarter results. What investors are focusing on is User Engagement after broader questions arrive arise over its societal impact. Facebook reporting a decline in north american users for the ever. Time here is what ceo Mark Zuckerberg had to say on the call about these changes. One of the most important things we can ever. Do is make sure our services arent just fun to use, but also good for peoples wellbeing and for society overall. So far this year we have already announced a couple of important updates,. The first is prioritizing meaningful social interactions over passive consumption of content. Williamson is an analyst who covers facebook at emarketer. She joins us now from seattle. Lets talk about this change in engagement as a result of these intentional changes that facebook has been making. How concerning are they for you . These are changes that facebook had to make, for a variety of reasons, which you have already laid out. This is something that i think is really important for facebook in 2018, restoring confidence in its user base, restoring the ability do is make sure our services arent to attract a regular basis, and keep them engaged with the platform. Emily so, what about the fact that users in the u. S. Have declined for the First Time Ever . Debbie could you repeat that question . There was a bit of background noise. Emily what about the fact that users in the u. S. Have declined for the First Time Ever . Debbie well, u. S. Is the largest market for facebook and it has been that way for a while. In our own forecast, we have modeled little to no growth as well in facebook usage in the u. S. , so that is really not surprising. The vast majority of the growth thats happening in facebook is happening outside of the u. S. At this point. Emily they did say on the call that they dont think its going to be an ongoing trend, but of course it is something that they will be watching. Mark zuckerberg, on the call just moments ago, also talking about the transparency of ads. The ad platform facebooks very Business Model has been under fire for how it allows advertisers to target users. Take a listen to what he had to say. We started rolling out a major ads transparency effort. We support Congress Passing legislation to make all advertising more transparent, but we are not going to wait for them to act. We have already begun launching a way for anyone to view the ads of pages running on facebook, instagram, and messenger, even if they are not in the intended audience. We are testing this in canada first with the goal of rolling it out in the u. S. This summer, ahead of the midterm elections. Emily deemily debbie, they arg ad Revenue Growth rates are going to decelerate. What do you make of that . Debbie i mean, i think thats part and parcel to the large numbers. Facebook is already the second largest digital publisher in the world. You know you have to see that this company is going to decline in ad Revenue Growth over time. I dont think thats concerning. I do think there are plenty of other things that facebook has in its arsenal, including instagram, messenger, and whatsapp, which it really has not have to much, if at all much, ifapped at all. Emily how optimistic are you about instagram growth and revenue . Debbie we are forecasting about doublingg, almost of a almost a doubling for instagram. Instagram is doing very almost a doubling for instagram. Instagram is doing very well. It is benefiting by its close relationship with facebook. User growth, also, forecasting to rise this year by a significant percentage, doubledigit percentages. Popular. Is it is a safe place. Its a nice place. It is a place for people to go and look at pretty pictures and engage with their friends and celebrities and influencers. It presents a nice opportunity to grow in the facebook fold. Emily they also said that whatsapp recently had 1. 5 billion monthly active users. This is another potential revenue stream that they really havent turned on yet. They have been doing a lot of experiments. What do you expect to see happen there . Debbie its been a bunch of experiments. Weekst launched an app a or two ago where businesses can use the app to start to market themselves to users on whatsapp. There is no advertising whatsoever on whatsapp yet, but we expect it to follow a model similar to what facebook did with messenger, which is to provide Marketing Tools for First Companies first, then gradually roll in advertising. We are expecting that for whatsapp as well. Were not sure if that will happen this year. Emily how much potential does that have . There are a lot of ways for businesses to connect with facebook and Facebook Messenger is another one of those ways. Debbie emarketer has not yet forecasted advertising revenue for messenger or whatsapp yet, but these are early businesses. There is a lot of opportunity, particularly in the area of customer service, for a company like facebook with messenger and whatsapp, but as far as advertising, it is very minimal at this point. It could grow over time. These are very popular apps. With millions, if not billions of users. Emily what are you expecting from facebooks original video efforts, original content efforts . Debbie that one, im watching very closely. You know, theres a lot of competition. There is so much quality video out right now that facebook really has a lot of work to do to attract users and to attract advertisers. Withexperiments in different types of advertising on the platform, including preroll and midroll video. That is somewhat new for facebook. It is not new for advertisers, which is a good thing. Theres going to be a lot of competition for this growth, for advertisers, for users of watch, and for programming, quite frankly. We dont know exactly how this is going to roll out, but we do know, with all the time that mark has spent talking about video, that this is something they will invest heavily in. Emily Sheryl Sandberg saying on the common that to go that it is still early days for watch, as you sa on the call just moments ago that it is still early days for watch and that it is too early to report the findings. Thats another thing we will continue to watch. Debbie williamson, great to have you here on the show. Amazon is getting ready to report its fourthquarter results thursday, so just how could its recent announcements impact the bottom line . We took a look. Dominus quest for will world dominance continues, almost seemingly unchecked. It is set to report its full for its first full quarter since its 13. 7 billion purchase of purchase that pushes amazon deeper into the 800 billion grocery market, where most spending remains with traditional brick and mortar retailers, like walmart. Amazon share price has rocketed up over 66 in the last year and it surpassed 1400 for the first time on friday, fueled by investor enthusiasm around its ecommerce growth and its profitable Cloud Computing business. Lets not forget amazons growing advertising business that promises better Profit Margins than online sales. Some investors are not so bullish, thinking this wall street darling is due for a pullback. After all, big spending that outweighs Revenue Growth has historically been the thing to trigger an amazon selloff. Investors are also watching for signs of growth for amazon primes subscribers, the service that can turn occasional shoppers into devotees. The Fourth Quarter is an ideal time to boost those subscribers thanks to free twoday shipping during the holidays. Go to company that has 90 million members and planning to open a second u. S. Headquarters, that wants to take over your appliances and get into the Health Insurance game, be reaching the saturation point . We will be watching, and so will investors. Coming up, after months of buildup, the big trial is almost here. Waymo versus uber. We look at what just happened during jury selection. This is bloomberg. Emily ridehailing provider lyft is expanding to europe. It is opening an office in a southern german city, munich, home to the likes of bmw. This comes after it announced an expansion to toronto in november, its first outside the u. S. Lyft has not said how many people it is hiring for the office, but they will work on the companys autonomous driving efforts. Sticking with selfdriving cars, today was jury selection for what might be the most anticipated trial of the year for silicon valley, waymo versus uber. Waymo alleges that uber stole trade secrets by hiring engineers who worked at waymo. Joining me now, joel rosenblatt, who came from the courthouse just moments ago. Whats the mood . Joel the mood was surprisingly agreeable. We have talked about this case over the last year. This has been hardfought, bitter. Jury selection today went really smoothly. The judge allotted three days. It happened in less than five hours. Emily what does that signify . Joel the parties agreed that if anyunusual, juror had any kind of strong opinion about either company, they would say so on a questionnaire and be immediately dismissed. There were at least a dozen people who felt strongly about one company or the other and work on. That really moved the process along very quickly. Emily each side has just 16 hours to make its case. That is not long, right . Joel it is extraordinarily short, especially given the story that waymo wants to tell. Emily so many details here. Joel you have the acquisition, the allegation is that uber conspired with anthony levandowski, a former waymo engineer, just deal trade secrets to steal trade secrets. In order to get damages, waymo has to prove that uber is using the trade secrets, so they have this whole scientific, technological dimension that they have to prove. How do you explain all that . We have spent a year talking about it. It is so complicated. How are they going to boil that down in 16 hours . Emily how do you think they will do that . What do you expect them to emphasize . Joel uber insiders will tell you they are feeling very good about the case, because they feel that waymo doesnt have the use, in technological the actual trade secrets, in the radar we are talking about. I think waymo may choose to emphasize the acquisition of the trade secrets, the theft of the trade secrets. There is a lot of circumstantial evidence, a pile of it, that they can choose from and could sway a jury with that evidence. It may not be direct proof of trade secret theft. Emily walk us through the key witnesses, Travis Kalanick and larry page. Joel john krafcik, ceo of waymo. Those are the top people. Bill gurley, i would put on that list, former director. He will provide some interesting testimony, potentially. There are some lower profile executives, who will be very important. Emily are they going to give the goods . We saw some of the i do not recall coming from larry page. Are they really going to share real details . Joel i have an article coming out in businessweek about Travis Kalanicks role as a witness and how important he is to uber. He is so well rehearsed, coached is not the right word, but practiced with his lawyers. He gives the same answer, that he knows only the kind of outlines of what happened. He doesnt know all the legal ramifications of what happened. Emily all right. Joel rosenblatt, our legal reporter, excited for your daily updates as the trial gets underway. Thank you. We continue to monitor the slew of tech earnings just out. Reporter,facebooks earnings ca. Other highlights from microsofts results. Hear what Sheryl Sandberg had to say about working with and with kaisers with advertisers to combat his termination and hate speech. This is bloomberg. We are investing heavily in both people and technology to protect the integrity of our platform. In addition to rolling out the ads transparency tool in canada that mark mentioned, we have disabled the option that lets advertisers exclude people in specific multicultural affinity segments until we can develop better safeguards against dissemination. Dissemination. Discrimination. 2, 1, 0. Emily spacex Just Launched its first rocket since the satellite mysteriously went missing on january 7. Wednesdays launch featured a falcon nine rocket carrying a load for luxembourg. The most powerful operational rocket in the world could take off for the first time as soon as february 6, according to spacex ceo elon musk. We continue to monitor reaction from several Big Tech Companies reporting earnings. Take a look at how facebook, qualcomm, and microsoft are doing in afterhours trading. Cory johnson joins us now from new york to wrap the highlights. If you look at the terminal, facebook shares are now up afterhours 3 , rebounding, after executives say they expect customer use to rebound. The big concern is that decline in north american users for the First Time Ever. Hey, what really struck me in the facebook results was maybe an explanation as to why Mark Zuckerberg and the rest of facebook now will make some changes and mess with what people see, what you ahnd dave were talking about earlier in the show, and change the User Experience. They are seeing a tremendous growth in the revenue per user. Revenue per user worldwide grew at 28 . If you look at the most developed market, in the u. S. , revenue per user hit 26. 70 in the quarter, up 35 yearoveryear. Thats how much money facebook is getting because you are a user. That is a really that shows you that they have some room to maybe change the experience, because advertisers are not just rushing to give facebook money to get in front of users. They are paying them more per user in a dramatic fashion,. 35 in the u. S. Growth yearoveryear. That really shows you that theyve got that they feel like theyve got advertisers, users. Now they can change that User Experience somewhat. If they make facebook if you use facebook less, but they can convince advertisers that the better, rarer and they can charge even more. Thats the gamble here. Advertisers are already willing to pay a lot more to get in front of facebook better, they can charge even users, like you and me, emily, and thats what they are paying for. Emily Sheryl Sandberg saying on they have 6t million advertises on facebook, only 2 million on instagram. Theres a lot of opportunity. Cory i wonder when they will give us some real Instagram Results so we can understand that business better. I would love to know how that is tracking. I can try to guess from my own instagram feed, which everybody knows. My own instagram feed seems to have a few more ads, but they are remarkably contextual and they seem to pick up data from other places im looking. If im on facebook looking for a new cooking im getting suggestions on my instagram. Im seeing a little more of that. I suspect that is the expense a lot of users are having. As a monkey with a facebook product, if it hurts as they monkey with the facebook product, if it hurts growth, it makes instagram even more important. In facebookdip numbers, that makes the growth on instagram even more important. We will see what we see in future releases and the q a on the Conference Call today. Emily you have been tracking microsoft and qualcomm, as we have been on the show. Microsoft shares slightly up. Qualcomm shares slightly down. Any other highlights coming out . Cory tomorrow, we will be talking about apple a lot. One of the questions is, whats happening with phone sales Going Forward for apple. We are seeing a lot of indications that q4 was great, but now what . Qualcomm coming out and saying there are certain modems in china where inventory is stacking up. Inventory is the death knell of every component maker and every hardware maker, as long as there has been technology. Inventory stocking up is the problem that killsinventory stoe problem that kills companies. Not that qualcomm or apple are about to be killed, but when we hear about a major supplier, qualcomm, in a thing they supply, the modem, to apple, having an inventory issue in china, we might assume that that is selling into apple, and that is a concern that apples iphone x and iphone 8 Sales Manufacturing isnt going great. If manufacturing is in great, sales are not great if manufacturing is not great, sales are not great. A lot of attention will be paid on apple tomorrow. Qualcomm is saying there is a problem. Emily all right. Cory johnson, our editor at large. We will have much more on earnings tomorrow, apple, amazon, alphabet, all reporting on the same day. Lots of fun for us. We will have all the very latest for you right here. Thank you so much for watching this edition of bloomberg technology. We are livestreaming on twitter. Check us out weekdays at 5 00 p. M. In new york. Thats all for now. This is bloomberg. It is 7 a. M. In hong kong and where live from bloomberg headquarters. Yvonne welcome to daybreak asia. Meet for the last time under janet yellen keeping rates on hold. Stocks held onto late gains. The s p running on its best start since 1997. Treasury yields in for your high. Liu in new betty york and it is after 6 p. M. And wednesday evening and facebook recovering after our losses. They are shrugging news