some are pichai took over and first cloud results. these cv maker is tearing maker is020 -- this ev tearing through 2020. we look at the stock. coronavirusr the dominated headlines this week. residents in wuhan have been quarantinedand -- and some flights have been suspended. copper rebounded after a 14 day selloff and investors will be able to withstand the impact of the virus. the s&prallied with back to market highs. amazon closed above $1 trillion, joining the 13 digit club with shares surging in the wake of a blowout earnings report. on tuesday, we were joined by michael purves of the capital group. >> there's no question that the underlying lament and has been very strong. was only a few months ago when we had the bond market signaling a recession was coming. even though it still has been supportive, this concept of a recession narrative is fading. you could check a lot of risk on boxes right now, and obviously, the fed has been there and liquidity is strong. the resilience of this rally has been very strong. taylor: if anybody owns volatility analysis, it is you. what do you make of the vix handle down from just yesterday? >> the curve right now is very flat. given how strong the lift higher today was, you may have expected a bigger contraction. i think that looking out into the future, the vix has a few things on its mind. one thing is that the coronavirus news flow can ebb and flow and all that, but there's also the view of looming political risk, as some of your colleagues have commented on. it is hard to price that risk, but it is certainly coming. the other issue to focus on is that the s&p is at interesting levels. where a lot ofnt dealers or investment banks will -- pivot.ket the markets have been very resilient. volatilitymajor picking up in the near term is going to be different. it feels a lot different than 2018. want to bring up this chat on bloomberg. we saw chinese equities selling off heavily when the market reopened. offshore investors are piling in. my question is, is it too early? the crisis is not over yet. >> it's funny. by way of comparing the coronavirus and what it means for the markets, it is similar to large natural disasters or terrorist events where there are a lot of headlines and fears about how that will impact the economy but usually those things just fade. but with terrorist attacks, it becomes increasingly resilient. , there is some time there. there is an analog for viral outbreaks. there is a reasoned case they may have saved your life. look at thisould as a deferment of growth rather ring anything permanently pa economic growth. i have my own near-term concerns but they are probably less to do with the coronavirus. >> what are they? >> it is very simple. stocks,ook at the tech those have been leading in defining the rally. i have been structurally bullish for a lot of reasons and continue to be so. the strength and magnitude of the rally we have , i simply think we have overextended. some consolidation is memorable and we are waiting for big cap earnings to come in. i did not think they will be bad or amazing, i think the companies will just continue to generate a nice earnings growth. all, but to measure it i would argue that even if it momentumpened, upward really continues to fade. if you look at various issues on tech shares, that's where a lot of the upper momentum is going. horizontal or vertical price-based consolidation. but the market needs to process and digest those. a stockyou talk about that has gone from parabolic to vertical. we will be speaking to fundamental analysis in the next segment, but on the technical side, how do you play tesla? >> it is unbelievable. expensive.e very i think the call inverted on tesla this morning. it was richer than the puts were. the timing is everything on shorting tesla. there will be a spectacular short at some point. haveof your colleagues commented on the options in the dynamics market. , one thingy say this i find intriguing is that tesla both has this technology component to it and yet is also a new faction industrial company . ultimately, when you have these business models that are asset heavy, the ability for the cost of that capital to be mispriced is very high. you are simply dealing with a different type of return on investments than other establishment giants. theme. that is one market cap of gm and ford and so forth, i wonder if they will pull and aol -- an -- aol-time warner, where they will merge with an established cash flow business hundreds of years of history. i do think the test let short thesis is one of those things where it is the ultimate sentiment stock. you have to be extraordinarily disciplined. was michael purves. coming up, we dive into tech earnings. alphabet shares wiped out gains after operating profits missed estimates. we break down the numbers next. and if you like bloomberg news, check us out on the radio. this is bloomberg. ♪ taylor: earnings from alphabet continued monday, suggesting the google advertising business struggling to maintain growth. broke down the numbers with mark spurgeon. ever was like, best call because they made monumental disclosures. we saw a lot from the cfo about the cloud business and the optimism there. said this wasy cloud storage, which competes with aws. we saw enthusiasm from youtube about the potential market youtube has an digital advertising, as well as new ways to make monetization. because some of the ad numbers fell below estimates out there. carol: we got comments the ceo on youtube's growth. >> you may have seen our post about work to remove misleading information about the upcoming election. policies toing our reduce misleading information about voting locations or censuses. we are pleased with youtube's growth in advertising and subscriptions. carol: his youtube as big as we thought it was? forhere were some estimates 2018 at 20 billion. rate fored about a run the subscription around 3 billion, so even adding all that up, that is not hit 20 billion -- does not hit 20 billion. clearly, the numbers are not there. they have talked a lot about this big adjustable market advertising. have work on regulation and safety to make regulators comfortable. meantime, the qualcomm came in with strong sales forecasts. that is thanks to its belief in 5g networks. the ceo says the third quarter will be flat. we discussed this with ian king. >> we had a nice report. says we are not sure about the third quarter. the analysts wanted things to be linear throughout the rest of the year, and as soon as that expectation was confounded, the stock went down quite quickly. guest: we spoke with a and i asked him about that. the third quarter is flat relative to second. pickup enough to reverse the declines? he seemed to think it was, but is there still concerned about getting that type of growth? >> you have got the right context. they have had several years and quarters without growth. when is this going to finally pay out? anything that causes concern , major -- is a major you are pressing buttons people are worried about. >> the equity price has had a pretty good here come up around 40%. when you consider 5g is a long-term growth driver, is this just a time to get long and hold on? >> i'm not in the business of investment advice, but you make a good point. general, have, in had a huge run-up in stocks. they are trading at high out,ples if you are coming you had better be saying something that at least meets or exceeds expectations. taylor: that was ian king. from theot reaction managing director of this investment group. 5g be key takeaway is how beneficial to qualcomm's model. the positive point is the march quarter were q2 guidance -- or q2 guidance going into these phones. this is one of the biggest jumps we have seen since covering qualcomm. june quarter guidance was flat with march, but if you look at the smartphone market and the timing of the second-generation indicated they expect another big step function , which could be the first time they shipped back into apple for the upcoming 5g phone. enough to this pickup take us out of what has been five straight years of negative sales growth? >> yes, i think he will start to see positive sales growth. right behind samsung in terms of volume. intel and thatto really hurt their ability to grow. we will see strong growth for qualcomm starting even in flattish june. hit -- hinted at a strong 2021, so if you go beyond, you will see a strong reaction other accelerationtrong of qualcomm. the earnings parade continues with fourth-quarter results from uber. company'st how the food delivery business is affecting the bottom line. twitter numbers with the chief financial officer. this is bloomberg. ♪ taylor: it was a good quarter for twitter, beating estimates for revenue and the number of daily users. they give credit to product improvements and personalized content. they have millions logging in daily, 21% more them one year ago. i got details from the cfo. we are so pleased with our daily active user growth. 21% growth means we are making it easier to find what people are looking for, allowing them to follow topics and not just accounts. we do the hard work for you. there is so much room to improve on, but we have 1700 topics to follow across six line witches -- languages. there is so much to be done. been thehat has biggest challenge behind the improvements? ted: going back a couple of years, twitter was not good at testing and trying new things. are much more comfortable moving faster and trying things. people to moveg quickly between a chronological or algorithmic timeline or the changes to allow people to follow topics. concernthere was some given that alphabet and facebook had seen a deceleration in the advertising business? samere you getting the business you want to see? ted: launching and connecting with what's happening is connecting with advertisers. whether it's disney plus luncheon with twitter, there were 9 million tweets about disney plus where people were talking about, forming opinions about, and engage in on a new service. ofthe super bowl, where 40 41 eligible advertisers were also advertising on twitter, launching new products and connecting with what's happening. taylor: within the business, you are not participating in political ads, but you still want to see engagement. how much growth can we see? ted: elections are great times for twitter and it is always an election year on twitter. 600 million people voted in india last year. there were elections in japan, multiple times in the u.k., and elsewhere in the world. we are able to apply those learnings to other parts of the world all the time. we label candidates in the states so you know who is tweeting. we remove suspicious behavior proactively. when you do these things and organize information, then people can trust what they see. a terrific arbor unity for us to showcase our .mprovements taylor: mark mahaney said you are finally getting some of the investments wanted. under-investments led to bugs. are you confident those have been fixed? ted: we had ads that were not working as affected and we fixed it quickly. remediation takes a few different forms. one is stuff we shifted, share--- we share aggregated data, but there are things that are more important. ae is to continue our work on existing format that gives us a better path to advertising over time. understandis to help the benefits of a personalized experience on twitter. if we balance our own principles around data privacy and transparency with local greattion, giving them a experience over time, there is to get morety experiences. taylor: are you planning any acquisitions? >> we did eight in 2019. we view that as a core competency. to find great teams who can help accelerate objectives and bring them into the company. we hope we can do more of that when we are always thoughtful about how we can accelerate objectives. jack dorsey has been talking about going to africa to do work there. are you the defective ceo? -- de-facto ceo? ted: we are distributed all around the world as we meet with our shareholders to execute our business. last year, jack visited 30 of our offices. waying in a decentralized is central to us achieving our objectives. note he has any different role this year than they had in the past. taylor: that was twitter cfo ned siegel. building -- grab is building a super app in southeast asia. we hear from them next. we are livestreaming on twitter. be sure to follow our global breaking news network on twitter. this is bloomberg. ♪. taylor: welcome back to the "best of bloomberg: technology." i'm taylor riggs in emily chang. becoming a southeast asian super app is what grab wants with services rating -- ranging from ride-hailing to fintech. they acquired uber's business --re in 2018 and has rated raised billions in funding from heavy hitters such as softbank and toyota. we spoke with the president about the firm's expansion plan. : we are closely monitoring the situation. it is evolving, it seems, hour-by-hour. ,or us, unlike greater china southeast asia has been largely untouched by the outbreak. having said that safety is of primary importance. with therking government to prepare contingency plans in the event we need to take action. so everything from contact tracing to preparing enough facemasks for our population. taylor: i want to speak to the fundamentals of the business over there. you are trying to become a super app. what sort of opportunities do you see in that market? has been an amazing year for us. last year alone, we launched nine new services from on-demand video. today, we are the largest ridesharing platform. we have launched the first micro insurance products. bid forhed the first our partners. in 2020, we were very focused on two priorities. considering -- continuing our profitable growth and then continuing to broaden out the portfolio products we offer in financial services. profitable in some of our most mature verticals. the key is to continue pushing profitability and we do that through our platform. way that we think about is unique.partners we are providing solutions and financing, advertising to help reach customers, and that engagement model is how we drive loyalty engagement on our platform. i want to get more details on your plans. you are applying for one of singapore's digital banking licenses. but what's next? first of all, it's important to understand the context the first seven years of our company was about following the gap in transportation. youpeak to the customers, realize there is a large gap in wealth management and the ability to retire. but manymers work hard struggle to save for a comfortable retirement. about acquisition was reinventing wealth management, democratizing personal savings to the point where affordability is no longer restricted to just the very wealthy. we think it is a large market opportunity. the challenge is, over 60% of that loses value over time because of inflation. we see the wealth management as an opportunity as an opportunity to create new products that are better than just keeping assets in cash. but this is a very similar opportunity. when you talk to our customers, over 40% are unhappy with their current bank partners. we want to make banking as simple as ordering a ride. we are very happy with our partners. have touched every consumer, every enterprise in the nation and we are confident we can develop the lowest-cost platform. taylor: that was grabs president president ming maa. uber has tackled regulatory agencies around the girl -- globe and faced criticism about its ability to turn a profit. we spoke to mike walsh shortly after the company released fourth-quarter earnings on thursday. >> i am impressed by the fact that they are able to grow the numbers. one thing that was great to see is they are closing or selling businesses that are not number one or two in the industry. they are eliminating expenses while maintaining equity. they are also looking for full-year profitability 2021. how much is the market demanding that? >> i think dara was under committed he was planning to get to profitability quickly. a great team behind him that is able to meet those objectives. >> you were talking about growth targets a minute ago. are there limits to growth? is gettingggest uber towards the ceiling of right -- ride numbers. >> they still have a huge potential for market share. 30%numbers are still only of the u.s. or so. they have got huge global potential for rides. >> you mentioned uber has been selling some parts of the business. cfoave just heard from the say that they would lean in to a bigger position in the market. does that suggest they are looking for things to buy? >> what i heard was that the company is going to double down in markets where they could be number one or two. taylor: that was the structure capital managing partner mike walsh. later, we tell you more about the company that beat uber in becamend the woman who -- who spearheaded the world's second most valuable startup. and we get a look at how disney's new streaming service is faring. we bring you the numbers next. this is bloomberg. ♪ taylor: we got our first indication of how disney's new streaming service is faring on tuesday. 26.5ribers soared to million, topping estimates and signaling a fast start as they challenge netflix. we spoke with lucas shaw in los angeles. numbershey updated the this quarter, something netflix does not do. you know they have 20 million customers, espn has seven, hulu grew by the smallest amount. but they have become the second biggest player in tv streaming. you'd say amazon is bigger because of the number of customers, but netflix is still far and away the biggest. impressivehas viewership based on the data bob iger shared about profitability and different shows people were watching. ?> how about the costs it is expensive to make this wonderful new content. >> no question, it is a major investment. the losses from the direct to consumer unit rose north of $600 million in losses. but that is to be expected. this is the game netflix has been playing for a long time. the bet is that this will work. one reason disney moved into streaming was that it needed to show investors that it had a growth opportunity. cable tv had been such a growth engine for this company and it needed to direct investors to a new area. the business grew from 900 million to 400 billion. growth,just staggering almost as much as netflix grew overall. thisis something bob iger is the future. bob iger can point to and say, this is the future. i think investors will give them a pass in the short term. taylor: wall street has been scratching their heads protest the shares. -- heads over tesla shares. $887closed at a high of before pulling back later in the week. we were told this week that the initial run-up is inexplicable. >> everybody has a pain threshold. what a stock because of dynamic growth aspects, you have to just walk away -- when a stop becomes onboard -- stock becomes of dynamicause growth aspects, you just have to walk away. --- views on out recent tesla. it is the leader of electric autonomous vehicles and that is the leader of the auto market. cars have struggled to produce ev on par with tesla scars and they are really just running away from the competition. 7000, that's a very impressive prediction from where we are now. test tesla really have that much of a head start -- does tesla really have that much of a head start? >> and electric vehicles they are the leader. they are writing down the battery cost decline curve. tohave done a lot of work predict the future declines of batteries. in every q let if double production, you get a correspondent reduction in cost double inive production, you get a corresponding reduction in cost. share in have not lost the electric vehicle market. we think they are at least three years ahead of other automakers. that is dollar per range that you get out of the car. they are the only automaker collecting data from their vehicle and this gives them a facet -- massive advantage. taylor: besides the advantage, how do you get to a fair value of $7,000 in the next few years? devised a probability matrix. we have looked at the past year and seeing what tesla has done in shanghai. tesla has shown they can scale in a capital-efficient manner. we have sent probabilities to each of those that help us arrive at that mark. our bull case is really driven by autonomous driving. this could be a huge opportunity for tesla that is totally going to be worth trillions of dollars globally. told us thee eisman stock is no longer trading on a valuation. what do you do with a stock like tesla? >> tesla has been misinterpreted for a long time. story only hearing this in terms of what people are talking about on tesla. the future of the auto industry is changing. electric and a taunus vehicles will make this a more consolidated. -- consolidated market. tesla is in a position to take advantage. driving,t a taunus that means software-like multiples because they are --ting software-like urgency margins. liu led didiene to victory in china. we will have more. this is bloomberg. ♪ taylor: with a valuation over $50 billion, dd shoe chain -- of the most is one profitable companies in china. how theirlook at leader became successful in a country where women are not always seen. didian is the president of chuxing, a ride-hailing service operating 10 million more rides per day than uber. ,hey have a lofty evaluation but it has been called into question following uber's disastrous ipo. they are said to be trading privately 40% lower than their peak. liu took onjean uber and made them one of the most profitable companies in china. she was born into a prominent family in 1978. , theather is a tech icon founder of lenovo. >> part of her personality comes from the fact that her father is one of the most famous people in china and she has been trying to make a name for herself. >> she majored in computer science at harvard and spent years managing investments at goldman sachs. she joined this to your old startup-- two-year-old aiming to end china's traffic problems. >> she came to my office and said she wanted to work on this. i asked her why. she said, i can't work here if i get pregnant. the commute is killing me. she was spending three hours switching between buses and subways everyday. there are many like that in china. 800 million chinese who ride 1.4 billion times every day. >> she brought her expertise to the company and raised billions to compete against its largest local rival. months after the completion of the deal, she was diagnosed with breast cancer. she survived and returned to work to face one of the biggest battles of her career. uber, which was already big in the u.s.. the money they brought in was bigger than our market cap. we were scared for a moment and there was this big decision. >> didi did not give in. her intercompany thoughts and all out battle against uber. bought out drivers in an attempt to crush one another. gaining market share turned into a question of having money to burn. >> first of all, we worked really hard. we are leaving the office and we rolled out for product lines. secondly, if we think we understand the market more. china'sxample, many of companies restrict the use of private cars, so she focused on taxi hailing. they also had the support of china's two mobile paying giants. they helped smooth transactions and help subsidize drivers. a year later, they both realized they had to stop the costly war and concentrate on building the business. in august, they received billions in funding from apple, a deal largely brokered by jean liu. since then, they have started to dominate the domestic market. >> she was instrumental in brokering the apple deal. when she met tim cook, she was saying that didi's logo is an orange and so they were bound to rate things together. 22 days later, they announced apple was investing aliens into didi -- billions into didi. --they soon began completing competing globally in australia and japan. they now complete and average 4 million rides per day outside of china. they have also handled proxy operations for uber with grab and lyft. >> didi and uber have an interesting relationship. after the merger, they did have the short time of truth and were observers on each other's boards. that has come to a halt. didi did form strategic lyft, butwith grab, it has not been working as closely as people envisioned. >> they are venturing into on-demand food delivery, bike sharing, city solutions, driverless cars, and the lucrative business she helped bill -- build. but those may be kept in check by year-long company overhauls triggered by the alleged murder of two female passengers. the safety record was thrown into the spotlight as thousands of users publicly deleted the app. regulators crackdown on the drivers and cars allowed. >> [speaking mandarin] it was a huge setback for didi. they had to the carpooling service. it was very lucrative for the company, and after that, they went into a series of events. they finally resumed the service last year. success, there remain serious questions about the infant -- business. investors are doubting they could ever turn a profit. they face stringent regulatory crackdowns and competition from regional operators. the outbreak of the coronavirus could also dampen prospects as the government has imposed travel restrictions. >> it is another make or break year for didi. her legacy depends on whether she can prove didi can be profitable in the long run. taylor: that does it for this edition of the "best of bloomberg: technology." we will bring you all of the latest in tech throughout the week. tune in each day 5 p.m. new york. and we are livestreaming on twitter. technology and follow our global breaking news network. -- bloomberg.rd ♪ hi! we're glad you came in, what's on your mind? can you help keep these guys protected online? easy, connect to the xfi gateway. what about internet speeds that keep up with my gaming? let's hook you up with the fastest internet from xfinity. what about wireless data options for the family? of course, you can customize and save. can you save me from this conversation? that we can't do, but come in and see what we can do. we're here to make life simple. easy. awesome. ask. shop. discover. at your local xfinity store today. forthan: from new york city our audience worldwide, i am jonathan ferro. "bloomberg real yield" starts right now. coming up, a blowout payroll report delivering a big upside surprise. credit rallying through the week as junk issuers jump back in. and china growth fears keeping a lid on treasury yields. we begin with the big issue -- another solid report. >> these numbers are impressive. >> steady as she goes number. >> there is a lot to like about this report. >> momentum is turning in the right direction. >> job creation, wage growth, labor participation. >> these emplo