Logistics partners ups and fedex. Tech out how big Cap Companies apple and facebook fared in 2019 and how each is set up for the new year. A look at tech in the markets most notably semiconductors, taking a look at the stock index, we see that chipmakers a bottomed out nearly a year ago and have been on a rally since then. Chipmaker micron adding to that they reported firstquarter earnings this week. Have a strong outlook between four and a half and 4. 8 million in revenue. Shortly after the Company Reported i got insight from the whorities and analyst joined me on the phone. They are seeing tightness in certain areas. Also they are calling the bottom for memory in general. They think this Current Quarter will be the bottom of the cycle. That fits with the tightness. It fits with the fact that they it also very much parallels the guidance they gave for flat gross margins, which again suggests that pricing is normalizing finally. Does this have any implications for an expansion of capacity . Point, they are the remaining conservative in their cap back. There cap back has been steady. That is the prudent thing to do, to wait for demand to come back. He did note that there is a point of uncertainty in terms of how much inventory china has accumulated, just coming back from asia that is it something i continued to hear from billers over there. I think they are taking a prudent course right now and not yet investing cap backs if the recovery continues i would expect that memory in general will move to support their customers and expand capacity, but that is not happening yet. Ourm showing a chart to terminal audience, which is as you described the share price of micron and the lower and lower dram and memory chip prices. We have been calling for a bottom for much of 2019. Are we confident that we have hit a bottom in those memory chip prices . I am. On nand looking at pricing moving forward, i think contract haveiations around pricing been concluded favorably for calendar t1. When you look forward in the nand space, you have a huge driver of demand in new gaming consoles which are shifting from hard drives to ssds. You also have an added boost predicated upon 5g. On the dram side, it is slightly more difficult to call. Having said that, i am starting to hear that server dram contract is moving up. That is the first sign that we have really bottomed on the dram side. Over the last couple weeks they are starting to rebound. Large cloud customers which are important they have increased their buying. While there is not as much visibility there, i think that we have seen a bottom. Bryson. That was matt soared to aey record high this week, hovering near elon musks goal. You may recall that back in august 2018, he tweeted that he sought to take tesla private at 420 a share. Most recent stock surge came from a report that tesla is considering cutting the price of its china belt model three by 20 or more. More on that story, i talked to bloombergs greg trudeau. Electricve a lot of vehicles and cars in general that are priced below where you see the tesla model three. When the price came out for the made in china model three, it caught a lot of people by surprise because it is not that big of a difference. The whole different the whole reason for doing they could bring the price down by avoiding import duties. Youre seeing tesla make a bet here. There is going to be a natural goodwill of getting a plan open, getting government on board. There is a lot of purchases of electric vehicles in china. Tesla is making a bet that the initial buzz about having the model three built in china will itself carry them for the First Six Months next year, then you bring the price down. A chart thatg you im showing inside my terminal which is the big headwind and macro back shop that is slowing car sales across the curve in china from the last year or so. Is a 20 price cut enough to offset this drop in demand . If you are elon musk and you are looking at that chart, you are more nervous about the state of the china market then if you look at when those drops were kicking in, it is around the time that tesla was getting a deal, signing on the dotted line to get this belts. ,t was built extremely quickly this was a muddy field in january of this year. Were talking about a plant that is already open and cranking out cars, potentially delivering them to customers within the next few days and weeks. This all happened extremely fast and we have seen some softness in the china market. The degree to which the market deteriorated this year caught a lot of Car Companies off guard. It is a cause for concern, if you are tesla. Despite the fact that you have real brand power and a lot of star power as a company that is on the leading edge of electrification. Craig what has changed taylor what has changed for tesla that they can afford to bring the price down now. Cann that some buyers waited out . Craig it will be interesting to see how long they can wait out for a priced off price drop. If you think about what tesla has been up to this point, it is a company that is made all of its cars and high cost california. It does not have serious manufacturing breath across the world and some lowercost markets. Lower labor costs are going to come down significantly. You are able to avoid levees into tariffs and get special treatment in terms of incentives and so forth. Definitely you could see that price come down further if the initial demand is not quite what they are expecting here. Taylor that was blumbergs crew bloombergs craig trudell. Shipping Holiday Shipping expectations. If you like bloomberg news, check us out on the radio. You can listen on bloomberg. Com xm in the u. S. This is bloomberg. Taylor with less than a week left before christmas, it is do or die for the delivery machine amazon. As it is ditching longtime Logistics Partners like ups and fedex, the ecommerce giant is beefing up its Delivery System to prepare for the strain of holiday orders and expectations. I spoke with Spencer Stauffer wednesday from seattle. It is handling more of its deliveries than ever before. It is estimated that half of all amazon packages will be thatered by this ats a amazon developed. It is independent contractors, flux drivers who do in uber type thing who deliver packages for amazon. It is the first year that amazon is doing so much of its own delivery so aggressively. We have got some hints of bad weather coming. That is always the big wildcard a system that can work a great through decent weather can break down in bad weather. A lot of it will be dependent on mother nature. Taylor those are things that are outside of its control. There are things that are inside of its control have they mastered that last Mile Delivery . Spencer theyre spending a lot of money on it and they are doing a fairly decent job. Independent experts who monitor the shipping things are saying with fedexe on par and ups. They are also doing things different than ups and fedex and a big part of it is having ultimo trucks are even these backup flux drivers hitting the same neighborhoods on the same day. When you think about seeing a postal truck, you will usually see it once a day and then not again until tomorrow. You might see multiple amazon vans crisscrossing your neighborhood on the same day. That is inefficient in logistics, but amazon says it is necessary to provide the capacity that we need to get everyone there packages in time for christmas. Taylor am i right or jumping too many hoops if i wonder if we should look at amazon as a Logistics Company and not a Ecommerce Company . Spencer they have been a Logistics Company for years. It is always the backend part warehousing and storage. They have been a logistics game for a very long time. We are seeing them increasingly branch out from that with the planes and with the last mile of delivery which is the most visible. Commonlyto see most the Postal Service stock and the big brown ups truck. Now youre likely seeing those blue amazon prime vans as frequently or more frequently than youre seeing anything else. Taylor that was a spencer soper. One of the biggest sources of funding for Silicon Valley startups is the vision fund. It was the focus of a businessweek cover story. It is depicting a culture of recklessness. Sarah mcbride helped to bring this story to light. She joined me on wednesday. It is an incredibly he has an incredibly interesting guy. He is an a korean immigrant to japan. He grew up in this hardscrabble way, supersmart, came to the u. S. , attended berkeley, moved back to japan, started softbank. One of the things that stood out about his background to me is in 2000, he invested 20 million in alibaba and that stake is now worth 130 billion. Is a smart guy. Taylor what do we know about his management style and how it has fueled this environment for these outside sarah he is a go big or go home guy. He wants his portfolios and investment professionals to think bigger. Sometimes that is great. When a young entrepreneur comes to him and he tells them you are going to be the next jack ma. Your company is going to be bigger than you think, have you thought of this business idea or that business idea . But sometimes he gets impatient. We have this detail in the story about during a Conference Call he was talking to one of his investment professionals about full check alliance, a chinese company, and was basically saying why are your outlooks for this company so small . This company can be bake and was sort of berating this guy on the phone for not thinking can be big and was sort of berating this guy on the phone for not thinking big enough in a way that made the people on the call feel embarrassed. Focusinge would not be on this company as much if it were not for we work. If we work had structurally changed anything within that culture do we know anything about that . Sarah after we work derailed ipo, they had to reread desha rethink things. Rethink things. Sun said he regretted how things played out at we work. Theyre still going to think big and press people to grow their company is as hard and fast as they can, i do not think it will be growth at all costs anymore. Taylor that was sarah mcbride. You can read more of this story and others in the december 23 issue of bloomberg businessweek. Theng up big tech is on quest for dominance in consumer banking. We will discuss how it is all shaking up with one of the latest unicorns in the space. Less later, an app that helps you break in the money during the holiday sheet shopping season. This is bloomberg. Taylor apple wallets, over money, google checking accounts it seems like everywhere you look at big tech is getting into the Financial Services game. What is that trend doing too big tech . Practice. He ceo of a it has a partnership with mastercard. Financialim about the product opportunity. I believe that there is a clear distinction between distribution and actual innovation in the Financial Services. I think a lot of the Big Tech Companies what they are doing is it creating new Distribution Channels for existing products. For example, you amazons credit card is issued by american express. I believe that if there is no Technology Development in the backend, it will not change much. A lot of the opportunities are nontechfirms and firms to rebuild the Technology Behind it and not use the technology billed by the bank. As you talk about that in some of the partnerships, i notice you have a partnership with mastercard what are you hoping to bring them and what are they bringing you in terms of that technological innovation. Henrique it is an exchange of knowledge. They work with banks in a Global Market and have accumulated a lot of knowledge and expertise. Me bringing the side of technology from Silicon Valley, it is a solid partnership. We can learn of them, they can learn of us. We get to use their big distribution networks. Anywhere that mastercard works. Taylor how are you hoping to differentiate yourself . We talked a lot about uber money for example. If youre technology, what else are you hoping to use to make sure that you stand out and in what is a very crowded field . Henrique we focus on businesses instead of consumers. A lot of focus has been on building a Financial Service for consumers. Businesses. Y for we rebuild the system from scratch. We do not use any Legacy Software provided by the banks like most of these other companies. We rebuilt everything from scratch and that allows us to create functionality that did not exist before. For example, not requiring any personal guarantee on business cards or having extremely simple expense managements on your card. Taylor how are you expanding outside of the traditional tech worlds . Into ecommerce or lifesciences businesses . Are you taking on more clients from those sectors . Henrique we are of the view that you cannot pull businesses together into one thing. Like eight start up and then Ecommerce Company and lifesciences and restaurants or they are all completely different businesses. In the future, a lot of products will be catered towards these vehicles instead of generic to s ps. The same way that in the Business World there are thin fintechs geared towards millennials. We have beender showing your valuation. Nearly a 2. 6 billion dollar valuation over the summer. I ask a lot of the unicorns to come in here if it is helpful or hurtful given the extra scrutiny at now being valued over a billion dollars. Henrique for us it is on the helpful side. A capitalintensive service because we are lending money. To establish credibility with our members, the valuation definitely helps. More than that, being able to raise a larger amount of money is what is enabling us to go and disrupt this sector of Financial Services which is full of a big and established banks. It is hard to do that without the money. Ceo henryat was brex rique. Hen lopez testified in washington earlier this month about the impact of Artificial Intelligence on Capital Markets and jobs. He joins bloomberg and me on tuesday. We have data sets that were not available to our three years ago. For example when you say data, how is this different from say two years ago to just a few years ago and how fast has the change been . A few years ago, we did not or even data that comes from narratives. Distracting sentiment from these news articles. Today they exist. We can extract information that is valuable for making decisions. I wonder if this is a zerosum game. To retrain a way some of these employees . Marcos there is a way to retrain employees. As a matter of productivity gains, not all of them will be able to retain their jobs, but in many cases we can retrain these individuals. They do not need they do not need their jobs to be completely animated, but these can assist to help them make better investment decisions. Is the how vulnerable industry to crowdsourcing . How could it what can it do to the Hedge Fund Industry for example . Marcos that is a particular case where we can crowdsourcing the forecasting of prices on dust to the data science community. It has so far been done by a very narrow set of individuals. Now you can turn this information to the entire data set community. People working at national labs, pharmaceutical companies, and they can use their expertise to forecast returns and turn these decisions into investment products. Taylor i found it fascinating in your testimony when youre talking about Renaissance Capital which has been one of the early adopters of machine learning. Average annual returns of 35 how far off are we from this being a crowded trade where everyone uses this . That those outsize returns are no longer outsize . Marcos it is a small percentage of the total a u. N. When you think of the tens of thousands of dollars using decisionmaking processes or even quantitative decisionmaking processes not may not based on machine learning, there is a lot of room for deploying this. This is not a crowded trade by any means. We are seeing trades on skilled individuals and students. You have to train these students to go and work with the data and algorithms. What happens if you continue to see these u. S. China trade tensions and you educate them here and the visa procedures become harder all of these people leave the United States . Marcos this is a concern that many of our professors have. 90 of our students are here on a visa. Many of the students will graduate and not be able to stay in the United States. As a result, we are essentially training our competitors. Taylor there was marcus lopez cornell, professor at university. Making money while you shop a japanese ecommerce site wants to help you do just that. We will hear from the companys president next. Bloomberg technology is livestreaming on twitter. Check us out at two technology. Follow us at quick take on twitter. This is bloomberg. Taylor welcome back to the best of bloomberg technology. I am taylor riggs. Its the final stretch of Holiday Shopping season and ecommerce platform rakuten is confident it can attract customers with a cashback program. But how does it make money . Rakuten president kristen gall spoke to alix steel tuesday about their Business Model. Kristen the Holiday Shopping season is it really interesting this year, particularly because we have one less week between black friday and christmas this year. What we are seeing is unprecedented deals at a massive amount of retailers. I think you are definitely seeing marketplaces pop up in a big way. Their deals are aggressive, but also an interesting trend is in the direct to consumer world. We have a lot of retailers like all of these smaller players that are increasingly taking a place in the retail stage this year. Alix so where are they shopping . Will it be ecommerce, retail stores, and what areas are seeing the biggest uptick . We obviously saw a lot of really aggressive ecommerce shopping particularly centered around cyber monday this year. Cyber monday was definitely the day, even more than black friday, the everybody came out to play. I think with the consolidated time between black friday, cyber monday, and christmas this year, it would change the patterns of Consumer Spending a bit. There was a bit of a lull while people got ready for the christmas season. This week, it is getting really aggressive again. This is one of the last days for people to shop online before christmas. What we will see this week is a gradual shift towards things like buy online, pick up instore, and more instore shopping or towards retailers like amazon that offer oneday shipping overnight. We do a few things that are attractive to consumers. We pay cashback on transactions that 3500 plus stores, which in its own right is attractive. The second thing is we have all the stores Consumers Want to shop at. We have a Broad Spectrum of stores in the retail industry. Everyone is very well represented. The third thing is we amalgamate all the deals from all the retailers. We allow people to stack cashback on top of retailers deals that are ready exist. If they have a coupon code or a sale going on, people can stack cashback on top of that and then use the rewards credit card on top of that. A lot of value seeking customers and people looking for the best deal. Alix how do you make money . The cashback is going to be a real thing. How do you whats the Business Model . Kristen we have about 13 million members. Its a very large audience of people. Companies pay us to send traffic to them. They pay a commission on each of the transactions our customers make and we share that commission with customers. Its a pretty easy, simple Business Model where everyone wins. They get the traffic and our members win in terms of getting the cashback. Alix if you have retailers that get better at their omnichannel, ecommerce section like walmart and target, does that step over you . What do you notice . Kristen there is a sub segment of customers for whom this is a very attractive value proposition. They shop this way, regardless of who is or who isnt on our platform. They will shop with the people on our platform because they are very loyal to us. Even if people get better at omnichannel, we are playing increasingly in the instore cashback space. Also, there are groups and audiences that these retailers cant reach without us. Taylor that was rakutens president , kristen gall. Coming up, proposed tariffs pushed apple to the forefront of the u. S. China trade standoff in 2019, but it was ceo tim cooks relationship with President Trump which may have helped the company avoid a steep levy. We will explore some of the big tech stories of 2019 next. And what were the most downloaded apps of the year . We will have those lists coming up. This is bloomberg. Taylor all this week, we profiled some of the Biggest Technology companies and how they weathered the challenges of 2019. Facebook ended 2019 much as it began, under political and regulatory pressures over content moderation, acquisitions, data privacy, and plans for a cryptocurrency. The social Networks News feed proved no longer the lone jewel it once was. Acquisitions of instagram and whatsapp became more interesting in terms of their performance and potential. Everything is growing, facebook, instagram, messenger, whatsapp. Instagram ad revenue and recordbreaking facebooks plan to integrate their platforms have caught the eyes of the federal trade commission, which may try to stop the plan to merge the technology platforms. This is not the ftcs first look at facebook. This past summer, the social network was slapped with a recordbreaking 5 billion fine as part of a settlement over consumers privacy rights. Facebook betrayed the trust of its users and deceived them about their ability to control their personal information. Taylor data privacy is now the focus of the European Unions commissioner of competition. She is investigating how data may be used to unfairly stifle competition. No place was more focused on facebook and washington, d. C. , where Mark Zuckerberg appeared many times. At georgetown university, he defended his decision not to fact check ads from politicians. In a democracy, i believe people should decide what is credible, not Tech Companies. Taylor it was zuckerbergs congressional appearances that likely generated the most interest, as facebooks cryptocurrency plan, called libra, was called into question by lawmakers. Is it a currency . Are you a bank . What is this association . It is a very complex project and its risky. Taylor so facebook enters 2020 and a risky place, with the new year. The project is under review of the u. S. Justice department, ftc, and nearly all the states attorney generals. With that kind of pressure, we will have to see if facebook investors stay or shy away. As for facebooks performance in 2019, i got perspective from techonomy Founder David kirkpatrick and analyst Michael Levine. Wall street just doesnt care about anything except growth and earnings and revenue. In a year when facebook got a 5 billion record fine, gigantically greater than any other company that has ever in fined by the ftc for privacy matter, and their stock still performed beautifully well for the year. You really have to say, well, we are not going to get any help from wall street in reining in a company that really needs to be reined in in ways that frankly are hard, but face it, somebody has got to do it. Taylor michael, i want to come and take a look at a chart that i made especially for you and it is the forward p e ratio of facebook. I am charting this relative to the other big competitors. Facebook still undervalued according to the metric. Is that a part of why the share saw big gains this year. In terms of the gain, you had really awful performance in 2018, you had a couple quarters in the back half of the year where they basically missed numbers. So it derated pretty profoundly. I would say, if i look at even the reaction to conceivably trying to block the integration, which could be obviously a precursor to trying to break up the company, i think you actually are seeing a reasonable amount of conservatism factored in. Since we launched coverage on the company, one of the tenants of our initiation basically was, we have never seen a more hostile regulatory environment. I think truth be told, a lot of people were initially surprised that the stock did not react more negatively to the headline. There is an element of sort of them playing through if you look at the other names in big tech and the moves they have had this year. Taylor david, comment on some of those antitrust issues that michael was alluding to. Is there a case to be made for breaking up this company . David i am not an advocate of breakup but there is no question that the regulatory pushback this company is facing all over the world is really not like anything any company has probably has ever seen. There is movement against google and to a lesser extent, amazon, but facebook is a company that regulators are looking at in the eu, parts of asia, the United States, both parties here. It is true, despite the fact that they had a pretty good year, that they are still below their high. They have been hurt by all these controversies that never seem to leave them. So maybe michael is right, you know, that it is factored into the stock. It is such an incredibly Profitable Company and they have such an incredibly good ad venue that you have to give them credit for that. This is a company that its going to keep raising its revenues and profits. Taylor as an analyst who covers the company, do you like what the company is doing in terms of trying to integrate all those platforms together . I mean, it greater cements their control and ostensibly why the government is conceivably trying to go after them. It likely does. They have definitely not had a lot of success to date monetizing messenger and whatsapp. A big part of why they have been so successful monetizing instagram as they have got this phenomenal targeting engine and this strong ad base in place. You can just do a better job monetizing any of these assets other than pretty much anybody besides google. Taylor michael, you talk about that, but one thing that struck out to me is Instagram Stories was effectively copied from snapchat. Do you get nervous when the big ad engine facebook is a product that was copied and not innovated from within . Michael i think if you look at what they have done, they have done quite a bit of emulation. Im trying to remember that expression, that basically the ultimate form of flattery is emulating. There are some things they have innovated on and there is a lot of just and its something thats classically happened in tech for years. Have i been consistently blown away with what they have come out with in terms of new platforms . No, i have not. But as david mentioned, they have built a very good, durable ad business that performs for advertisers, that keeps the dollars coming in the door. Taylor that was a david kirkpatrick, and Michael Levine of bital research. Apple also dominated the news in 2019 as its products were put squarely in the spotlight with the white house tariff threat. It was all part of the u. S. China trade story and demand overseas. It was the shocked apple system that sent investors scrambling. Tim cook cut the companys forecast, we did not foresee the magnitude of the economic deceleration, particularly in china. Apple has been under the microscope all year. Apple might have an edge over its competitors when it comes to President Trump and possible tariffs. Despite a slip of the tongue earlier in the year. President trump you have really put a good investment in our country. We appreciate it very much, tim apple. Others go out and hire very expensive consultants and tim cook called donald trump directly. Taylor that may be paying off for apple in the long term when it comes to staying in washingtons good graces, like in november, when trump toured apples texas plant. President trump weve made a great deal with south korea, but we have to treat apple on a somewhat similar basis. Taylor now, apple just has to see if this relationship does indeed bear fruit. As for apples performance in 2019, i got perspective from gene munster of Loup Ventures and new Street Researchs Pierre Ferragu. This interview will take you back to the beginning of last year, when iphone sales came down very significantly. That was kind of the result of the very strong iphone x cycle in 2018. Iphone users are still around, they still love their phone, but the firsthand buyers is a group, is a population that is not growing much anymore. Because iphones are getting more expensive, they stick to their phone longer and longer. That created a very depleted level of demand for the iphones in 2018 and 2019 and towards the end of 2019 today, what we had is actually a very successful cycle. That is why you hear so much conflicting feedback from the market and the value chain. On one hand, there are very obvious indications that the iphone 11 was very well received. People loved it. At the same time, you still see in the market an element of weakness. The fact that you have had 170 million iphone x sold in 2018 and 2019, and that is a lot of phones. People who have them in hand are kind of relaxed with the idea of sticking to them a bit longer than they were in the past. Taylor do you agree that it has been a relatively successful upgrade cycle for apple . Gene yeah, relative to where we started the year, iphone started the year, i would call it down about 20 , 16 , 20 . Now its probably going to be down a couple percent or flat unit growth. Success in that context, absolutely, from where we came from. But i think the franchise still has significant upside in terms of expanding where they are at based on the next few years. I realized that is an out of consensus view. Not that iphone is going to have 25 Global Market share, but i think they can, over this next three years cycle around 5g, can inch up some of their market share. Taylor how much of that Global Market share is highly dependent on china and frankly, beating out huawei over there . A lot of it is. China is 17 of overall revenue. Mainland china is probably 14 . If you look at total units globally sold of smartphones, and is probably in that 15 20 range. Apple currently under indexes in china because it is an expensive product. I think what has really stood out over the last nine months for me relative to china and apple is not the fact that we have got some sort of agreement on the trade, but rather, how the Chinese Government, which is an important part about the chinese consumer, how they think about apple, how the Chinese Government has treated apple. Specifically, we watch social media over in china. We have always been surprised which is of course curated by the government we have been surprised that through this period, the Chinese Government has been neutral to supportive of apple. We think that apple is unique in that it is on of the few Tech Companies that actually has a play, which is probably going to be china, one of the still best growth stories globally over the next several years. Taylor that was Pierre Ferragu of new Street Research and Loup Ventures gene munster. Still ahead, which apps were the most downloaded in 2019 . We will find out next. This is bloomberg. Taylor closing out a decade, 2019 has been a landmark year for mobile with the rise of tictoc on the launch of new Video Services like disney plus. Here to discuss this years big players in the world of mobile apps, executive Vice President of app annie. I think the key thing we saw from a download perspective is that the big, popular social and Communications Apps continue to dominate again in 2019. If you look at the top 10, you will see social apps were seven of the top 10 in terms of downloads, with facebook claiming four of the top five. Taylor one of those that caught my eye was tinder. How has tinders explosion changed the social media landscape . From a monetization just music it is not apps for video apps outside of games on mobile. We are seeing that dating apps are starting to make their mark. Tinder claimed that number one spot in monetization outside of games. I think it is an indication of the natural social experience of what dating can its a social component, right . This ability to quickly communicate. In the case of bumble, you have to check out who you have been matched with in a certain timeframe. There is also behaviors to bring people back. We are seeing more and more competition. Tinder has a huge lead, but we are seeing so many apps in that space continuing to grow. Taylor you hinted at the ability to monetize. Some of the most successful apps that you have seen that were downloaded have that recurring revenue, that subscription model, which is still important to investors. How are they able to be successful for a generation known for not wanting to pay for anything . I think its a matter of a value, right . If you deliver a great value for a service that is not a onetime fulfillment, it is built into the service and sort of expected. I think when you look at entertainment, you might be Binge Watching something, but you are coming back for the next show a week later or in the case of music, people are listening to music in many cases that are subscribers day in and day out. Dating has a similar sort of like, people are using these apps really regularly over time. I think they have captured and delivered on a value an unmet need that people did not have outside. Taylor a lot of the subscriptionbased apps are within the gaming sector. That has really just taken off, the rise of this virtual sort of online gaming. Is that what you really see fueling growth as well into 2020 . Gaming is interesting. Overall in mobile, gaming drives about . 75 of every dollar that consumers spend. Inappypically purchases. People are buying gems or levels. Subscriptions just started to take off. Subscription i think is something to keep on eye on in 2020. We just started to scratch the surface with games. It is the one area that games is sort of behind on versus other categories. I think it will be another opportunity for publishers to monetize games that may be did not lend themselves well to in app purchases. Taylor my producer used to be a sports broadcaster producer. We talk about nine innings in a game. Where are we in those nine innings in terms of apps really being able to utilize engagement and monetization, as you think about sort of a wide variety of where we are . Engagement is everything. So if you start with the fact that we spent roughly three hours per day in apps and out that, about half of it goes to social, so that leaves roughly 90 minutes for everything else. Some of that might be transactional. You are potentially doing other activities, ordering a ride, coffee, etc. , but then you have entertainment so forth. Engagement starts to become a value of time spent. An app like snapchat tends to lead in terms of sessions per user versus facebook, that is really tremendously successful in terms of time per user. They offer different social experience. It is important to understand which of those metrics are generally correlated and associated with a happy consumer. Taylor one app we have not talked about yet but we talk about a lot is tiktok. Huge growth overseas. Do you expect to see tiktok as successful in the u. S. . When does it actually take off here . It is phenomenal, the app has reached about 665 million monthly active users globally. We estimate in the u. S. , it is about 20 million. So it is starting, right . Tiktok does lean towards gen z and younger users. We are starting to see impressive odd option. Adoption. Ive people are also using snapchat in gen z especially in the u. S. , instagram, and so forth. I think we are already starting to see some compelling adoption of tiktok even here. Taylor that does it for this edition of the best of bloomberg technology. We will bring you the latest in tech throughout the week. Tune in each day 5 00 p. M. New york, 2 00 p. M. In san francisco. Bloomberg technology is livestreaming on twitter. Check us out at technology and be sure to follow our global breaking news network at quick take on twitter. This is bloomberg. What are you doing back there, junior . Since were obviously lost, im rescheduling my Xfinity Customer Service appointment. Ah, relax. I got this. Which gps are you using anyway . A Little Something called instinct. Been using it for years. Yeah, thats what im afraid of. He knows exactly where were going. My whole body is a compass. Oh boy. The my account app makes todays Xfinity Customer Service simple, easy, awesome. Not my thing. David he grew up in a trailer park in florida, where his father parked an old bus, but their modest means did not keep his parents from teaching their children to help those less fortunate. His circumstances did not get in the way of his dream to become a doctor. At duke, paul farmer studied medical anthropology, merging medicine with his mission to help those in need. Before harvard medical school, he took a oneyear detour to haiti. There, he saw friends die simply for lack of resources and adequate medical care. That spurred farmer to create partners in health