tv Bloomberg Technology Bloomberg November 17, 2017 5:00pm-6:00pm EST
a lisa: i'm a alisa parenti in new york, and you are watching that contract has since been canceled. after escaping house arrest in his native venezuela, the former mayor of caracas has fled to europe by way of colombia. in a phone interview, he told , "i am moreed press useful fighting for venezuela's mockery see a broader than i am as a hostage in my home.
and pfizer is demanding the state of nebraska not use any of its drugs to carry out the death penalty. the state planning to execute chemicals with a cocktail of drugs, three of which pfizer makes. ♪ emily: this is "bloomberg technology." coming up, stitch fix goes public. we discuss what sets the online styling company apart. plus, elon musk reveals tesla semitruck to much fanfare, so will it up and -- a band -- upend the industry? and one of apple's most
anticipated new devices will not be available for the holiday shopping season. why customers will have to wait until next year to get the homepod. first, to our lead. shares of stitch fix topped at the open but then cooled off on its first day of trading. one high-profile backer is still bullish. i spoke with him earlier today and asked what he sees that other investors do not. have early in my career, i the opportunity to get very close to the management team at dell, the computer company, where i worked on wall street as a sell side analyst. one of the things that lead to just this spectacular run by public markets was that they figured out that if you personalize, if you build each unit to individual order, you can not only serve the
customer better, but you can have a more efficient supply chain as well. from the very minute that i'm that katrina, i had alarm bells going off in my brain that what she was doing had very similar analogies to what dell did back then -- from the very minute that i met katrina. emily: anyone in the e-commerce market is incredibly fearful of this giant in the room -- phil: appropriately. -- bill: appropriately. emily: do you worry about amazon when it comes to stitch fixed? -- stitch fix? bill: everyone should be aware of amazon. six --id, i think stitch competing with nordstrom, .acy's, asos
right now, we take a very different approach. amazon is known as having earth's largest selection. we come at it from a remarkably different place. we try to learn as much as about the individual and use machine learning and collaborative filtering to help our stylists and deliver something to you you have not even seen yet. our head of algorithms says it is the ultimate recommendation engine because we do not even let you look at choices. that is something that is highly unique, both in the general apparel community and even against amazon. unlike other fix, online of hell companies, has fared well. others have gone out of business . -- unlike other online apparel
companies. >> we have been profitable for many quarters. when the company came public, it was over $100 million of cash on the balance sheet. the company had only raised $40 million, hence we created $60 million in free cash flow, theseing extremely rare days. unit economics are proven. the business model is proven. the company has a very mature management team. i think there is already proof that can answer that question. the second thing i would say is that if you look at the characteristics of the company in terms of how much we understand about our customer and how much we understand about our products and inventory, i think we are light years ahead of our competitors. you can put us up against any of these players, and i am certain that we know 10x more about our
customers and the merchandise. emily: that was built -- bill gurley. of thatbring you more about conversation later in the show. to us about how they raised less than i hoped or sold fewer .hares than they had hoped for >> they ended up selling 8 million shares at $15 a piece. they had planned to sell 10 million at a range of $18 to $20 a share. i spoke to the ceo earlier today, and she said they had a little bit of difficulty explaining the story. she says it is not obvious and not easy to tell. she said it seemed like an investors could not quite place them because they are not an are not a company and
traditional retailer. she did seem optimistic and said they are looking forward to continuing to prove that they have consistent growth and prudent growth. she says they are not about growth at all cost. the stock closed at a market value of about $1.5 billion, giving it a price to sales value right in line with your typical 12-monthat 1.5 times trailing sales. when i look at e-commerce, it is closer to 4.4 times. it seems the investment community did not necessarily the them the premium that data algorithms add value to the product. i mentioned earlier they only raised 42 billion dollars. i believe bill gurley made the andstment a few years ago,
they have not raised money again. that said, katrina lake told you that investors are asking if the business is scalable and sustainable. how is she answering? alex: she said she is surprised. six -- stitchch data, but they also have people behind the scenes. she did not seem worried about finding people who can help curate those outfits. i was surprised the investment community did not give them more credit for being cash flow positive and able to fund themselves. she says they will continue growing at a similar clip. she would not give specific guidance in terms of forward revenue growth, but she does say prudent growth and growing at a pace where they can still have a nice, cushy votto line is the
is the key.m line she says they are looking into the men's category, the plus size category, and premium offerings are the areas where they expect to see the most growth. emily: how does it fit into the story of the other tech ipo's we have seen so far this year? it has been a bit of a choppy story. a few select companies doing well, but in fits and starts. alex: it seems anyone that touches consumer tech has gone out with a lot of buzzy fanfare. snape was up 40% on day one. we have seen that stock fall way day-- snap was up 40% on one. blue apron has seen a big change. on the flipside, you look at
.ompanies like salespoint if you are enterprise tech and showing strong revenue and a path to profitability, those stocks are performing better. in the broader sense of tech ipo 's, consumer tech companies are probably thinking about how they pitch their story effectively or at least more effectively than some of these names we have seen go out in 2017. emily: thanks so much. in deal news, the u.s. justice department is delaying filing a lawsuit against the proposed time warner/at&t deal, apparently because no states want to join the action. the doj sent out summaries to about 18 states, and none would join. the lawsuit was expected to the file late this week. at&t is expected to fight to acquire time warner. bigng up, tesla made some announcements thursday night, unveiling a new semitruck and reviving the roadster.
emily: tesla has launched a fully electric semi-that boast incredible speed and range -- boastslectric semi that incredible speed and range and also rereleased the roadster. unveiled itsst first electric semitruck. ao elon musk had promised beast, and he delivered. it offers the longest range and fastest charging time of any
electric vehicle ever made. musk: one of the questions we've been asked is how far can they go? 500-mile range. [applause] this truck,ed in and it is cool. the driver seat is in the center of the cap with an expansive view of the road. the cap is incredibly spacious compared to the standard big rig, and the specs are b isessive -- the ca incredibly spacious. in the world of trucking, the only thing that matters is the cost of doing business, and theially, musk did not give sticker price. but he said it would cost at least 20% less to operate than diesel. it does so in part by borrowing parts from tesla's model 3 sedan
. was not theck biggest surprise that tesla had in store because the back of one of the semi's opened up, and this rolled out -- an all new roadster sports car that no one was expected. the $200,000 base model can go zero to 60 miles per hour in 1.9 seconds, making it the quickest production car on earth by a good margin. and it can go a stunning 620 miles on a single battery charge. the original roadster helped you find tesla as a company and this new version sets the bar for the motors, fourhree seats, a convertible roof top, and a massive 200 kilowatt hour battery pack. musk: the point of doing this is just to give a hard-core smack gasoline cars. tom: it's hard to imagine how tesla will bring all of this to promised, by 2020, as
even as it struggles with its 3 sedan. it may very well push the entire transportation industry even faster toward going electric. here with us to discuss the details from last night's unveiling, jean munster joins us from raleigh, north carolina, but was in l.a. at that unveiling last night. elon knows how to put on a show, but what do you think about the products behind it? how optimistic are you about this truck and the roadster? gene: assuming they can produce it, this should add between 15%
to 20% to the street numbers. that is what investors do with a story like this. this is a real market for them, and i think that just given the orders we have already seen from, like, walmart this morning, i think this truck is going to do very well. the roadster, as your package , was more about making a statement. i would hate to be the porsche engineers. the day before, the wall street journal ran a story that they had come out with the fastest is stillr, which behind this roadster. is -- the big question can he meet production goals for ? e model three
or is all of this a distraction? >> i think it is partly an intentional distraction. any time someone starts to or a large group of people start to think tesla sort of looks like a contingent of -- conventional car company, and maybe a conventional car company that is particularly good job of it, elon musk comes out and says we are thinking about the future in these big new ways, growing the market in a big way. --s stuff is far enough out and, look, elon musk has a reputation for multitasking that tesla can tell it self probably without lying to itself too much that it can focus on getting the cars out the door while it works on the development of these new products, so one thing that i think is important to tesla and to elon musk is always having something that is three or four
years out to key people excited, keep evil focusing on the future -- keep people excited and focusing on the future. emily: do you think customers will stop buying into these the ff sales pitches yet >> this is probably the more important part of the story last night, speaking to investors. they do have untapped opportunities, and this is not about electric vehicles but .bout autonomy these huge macro themes. if he can keep investors buying keep tapping the equity and debt markets for more cash, that companyn point for the -- this is really keeping investors in the camp, in the group, in the club to continue
support, accelerating adoption of renewal energy. musk himself has admitted .hey are in production hell how concerned are you about meeting their production goals? >> very concerned in the near term, which would be the next six months. i think that that does not really matter. what matters is what the production is a year and two of years from now. i am making that that that they pull it off with the production and these other cars. i just want to make one other quick point about this other car hell -- no manufacturer has built an electric car at scale, so all the other players will have to go through this same issue, so this is not something unique that tesla is going through. competition? the what does the pricing of the mean?semi main --
>> we do not know what the pricing is. musk is saying there will be a two-year payback on buying this car, that it will be 20% more efficient. the problem is we do not know what the assumptions are. one caution here is that marketing a semi truck is a lot different than marketing a car, particularly marketing a car to the early adopter set. part of the problem here -- you know, gas prices are a big factor in terms of cost, but other things are going on as well. truck drivers need to be in the things all the time, and that will require a really good, really complete charger network, and we do not know much about the plans there. he said something about how quickly it will charge, but there are a lot of unknowns, and right now, we are going off a bunch of assumptions. it is kind of a black box. the product looks exciting. it is hard to say how popular it will be with truckers, and
pretty much every other truck company is working on this as well, though they do not appear to be quite as far along. emily: a lot of it depends on how tesla hits various milestones coming up. what will you be watching for over the next year? >> if we could back up for a minute, we took a stab at the cost because they gave us a couple of points and we were able to do some algebra. it's a guess, but it will get us close -- the cheaper trump will be about 220 5000 dollars. the more expensive will be about $275,000, compared to a typical class eight diesel truck at about $150,000. about cheaper one will be 220 $5,000. and i just forgot your question. we have to leave it there. thank you both. coming up, spotify is trying to boost its appeal to artists.
emily: spotify has acquired a small online maker of music collaboration tools to increase its appeal to artists. spotify says it is used by consumers for producing music and podcasts. spotify did not disclose how soundtrap,d for which will continue to operate as a stand-alone service. this values the company at more than $2 billion.
investors backing the company include t. rowe price, fidelity, and index ventures. coming up, apple misses the mark for one of its holiday flagship items. waiting for its home's bigger will have to wait a little bit longer. if you like bloomberg news, check us out on the radio, listen on the radio app, and in the u.s., on areas xm -- on sirius-xm. this is bloomberg. ♪
sexually assaulted young women years ago. she was joined in montgomery by several dozen women at a rally supporting judge moore. >> let me set the record straight. even after the attacks against me, my family, the foundation, and now my husband, he will not step down. the alabama, governor plans to vote for roy moore, even though he faces accusations of sexual misconduct. she told reporters a factor in her decision is maintaining republican control of the u.s. senate . the florida democratic party chair resigns amid allegations of sexual misconduct. , eu leaders signed a
nonbinding set of recommendations calling for access to the job market, fair working conditions, and social protections. the social summit was the first such meeting in 20 years. >> it is time for us to put people first, because the european union is nothing more, nothing less, than our people. so addressing issues such as inequality, unemployment, unfair practices is not only morally right, it is the smart thing to do. leaders also discussed brexit on the sidelines of that meeting. the european council president told reporters friday that the u.k. had not yet made sufficient concessions on financial settlements or on the issue of the irish border. speaking before the social summit, theresa may told reporters that brexit talks will stay on schedule. >> i was clear in my speech and florence that we will honor our
commitments. we want to move forward together, trade issues, trade partnerships, and economic partnerships, i look forward to the european union responding positively so we can move for together and assure the best possible arrangement in the future for the united kingdom and across the eu. warned several issues need to be resolved by november in order for negotiations to advance to trade. the two leaders are scheduled to meet again next friday. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. i am mark crumpton. ♪ more bloomberg technology next. ♪ i am emily chang. this is the "bloomberg technology." it looks like apple will miss out on a new segment of the holiday market, smart speakers.
the speaker is being delayed until next year. it is delayed until early 2018. this is the second major apple audio device to miss its shipment debut. last year, the air pod shipped two months late. joining me now is mark gurman. what happened? >> it feels like the same story as last year. was supposed to be this array of holiday gifts. emily: they announced it in june. spanich was a rare time for not a hugely significantly new product. no ipad, iphone, so it six months is a while. why? steamanted to take the out of the amazon echo and google home. a lot of people are waiting to
buy a home pod. more specificsve about what isn't right yet? >> there are a lot of factors. it is three things, the hardware, the speaker, and the software. we will see what ins up happening. i feel like waiting and delaying a product is not as bad as releasing a product that will launch with a bunch of flaws, so they took their pick. they knew there would be problems come so they are waiting. emily: what kind of impact will this have on the quarter, which will include new iphones, so that is good? >> i would say zero. apple has a smaller product segment, sub 10%. even if the home pod shipped in early december, it would still only have a few weeks of sales in q1. i don't think this will have a
fundamental impact on the quarter. emily: how will this position apple vis-à-vis competitors, which got to market first and with a head start? >> the reason why they came out with a home pod is they want to increase subscriptions to their services and music business. if people buy one of the other speakers, it will expose them to those companies'ecosystem. we mention the air pod what isbut otherwise the holiday season looking like for apple? >> iphones, iphones, iphones. weeks,one x ships in two so mid-november, you get it before christmas.
it turns out apple will have enough supply if you order one now. that will be the strong seller this season, along with the new ipads and macs. emily: thank you for stopping by. more of my conversation with bill gurley. he is one of the biggest and most vocal investors in uber. he stepped off the board this year. summer'sbout this unexpected turn of events and new leadership under the new ceo. thisleft of the board summer and was replaced by my partner. i am not present at the board meetings. that board andon works with travis and through my own conversations with the ceo that he is getting good advice and help from travis. when i look at the current situation, i feel extremely happy relative to where we were in may or june. i think the entire board
including travis is excited about the ceo. i think he is doing an incredible job. good job interfacing with regulatory bodies in london, brazil. tony west,t added who eric holder helped us higher, so i feel really good. a neweve we have reached level of stability and look for to where we are going forward. emily: benchmark push for travis's resignation and sued him. that stunned a lot of people. why did it come to that and why could you not result that in private? >> in the venture capitalists hopes that they can use persuasion to solve every problem out there so stuff doesn't roll out onto the field like it did in this case. this summer things that uber reached up lace where we felt along with four other large
investors, people typically said benchmark, but there were five investors, including fidelity, who felt like all the constituents at uber were at risk if action did not happen sooner, and so we did something unprecedented. we had two questions frequently about this. one is i can't believe you did this. the other is, why did you not do this sooner? there is no overlap between those two things. we had to make a hard decision. we feltch reflection, we were on the right side of history. time, i feel in like we have got things to a place where there is a really good platform for success moving forward, so while i would not say the past year has been something we enjoyed as a firm or would look forward to doing again, i think we made the right decisions. emily: that was bill gurley, general partner at benchmark.
tv. amazon is looking to set itself apart from rivals like netflix. overer this year, it took live streaming the nfl's thursday night games from twitter. airbnb taking steps to remedy claims its rental process is discriminatory. is acquiring a website that rents homes to travelers with physical disabilities. it will give access to a larger supplier of houses and apartments with handicap access. you can see the ceo to ring one such location. has about 1100 listings spanning 60 countries with information important to those with disabilities, such as door with an tour the seat height. ,oining me now is the founder who you see in the video. thank you for joining us. tell us how you started the site and were able to grow the platform. >> i used to be a corporate
lawyer working in london. left that to go back to university. i had gone traveling for several months and found it was turn upt, so i would two places and rooms would not be suitable. bathrooms would not be big enough. it was difficult to find suitable travel. locations. i was trained as a web developer and had some time. , martin, wemine prototyped a product where we would that listings with a huge amount of detail, of far greater and allow granularity users to search accessibility information. it started off as a fun project to help people. people started engaging with it, and it grew from there. to airbnb are moving headquarters. how do you imagine airbnb
integrating accomable? downcomable will be wound over the coming months. we will be integrating our expertise into airbnb. our existing hosts will have the option of coming across and we will start that communication with them in a couple of weeks. airbnb has been criticized for discriminating against people with disability. a study points out that people with disabilities get preapproved at a lower rate. why do you think airbnb has had such a hard time dealing with these kinds of problems? >> it is difficult to comment on past reports, but the key issue accessibility is not an airbnb problem. it is why we built accomable because there was that opportunity there. are taking theey
lead and trying to solve this problem by bringing us on board. i think the key thing is to look ahead and look forward, and airbnb are being the thought leader in trying to solve this problem. causeswhat are the root and getting people to remove their biases? >> there are a lot of issues to deal with, having the right listings, the right amenities, , how a you vet something role-in shower is a role-in shower. expertise we will bring on board, helping to train hosts in the community on how to help the customers we serve. emily: what are some of the things that you personally plan to bring to the airbnb table? you have had a lot of conversations that has led you to this point. >> this is my second day at the company. the road mapting together in due course and
hopefully the airbnb community will help us build that. one thing is airbnb's existing work where the filters have been approved and amenities can be searched for on listings come so i will try to build that and make it more useful to our community. with a hopefully work user base of disabled hosts. i am passionate about getting disabled people to share their space and building out the market. world'ssaid 15% of the population has a disability of some kind, so this is an amazing opportunity to reach an untapped market. emily: how do you think airbnb is poised to meet these needs versus the hotel industry in general? independent rentals are popular in our community. traveler, disabled having extra space if you're traveling with family, , or a equipment,
and a growing list of high-profile partnerships. scarlet fu sat down with the cofounder and chief creative officer to discuss plans to expand its mission. >> these things have been evolving internally for a while. in other cases, we are a startup that jumps on new ideas quickly and executes on them. i think there is a mix of strategy and opportunism and everything we do, and the timing. it's not like we were in the market searching for a building like the lord and taylor building thinking that is what we have to get. the notoriety that came with it was not planned. it was a surprise to us because we did not know that many people cared about that. >> the new york times wrote something about it. >> we do a lot of real estate deals all over the world.
of the stategnal of retail in the world and the shift and all that. it was newsworthy for multiple reasons. the cool thing is that we have always given ourselves the room to explore and to think about different ways that we can fulfill this obligation we have always felt to support people and a multidimensional way. a fitness and wellness concept is one that we launched as well. each is a signal towards a future we believe in, so supporting people in business success, health and wealth, education, thinking in cities and communities. we have always been considering these things. companyrd to build a like this, and you need to hire
people qualified to take on these challenges. as we raise capital and hire more qualified people, as our profile has grown, more people are attracted to us, great talent and smart brains, and that empowers us to move quickly into these other ventures, divisions. why now? is this about striking while the iron is hot and tech is doing well and the economy is doing well? that strategicre and had it all figured out. i don't think it is like that. we did raise money, so there is empowerment. >> softbank for instance. >> an amount of money that gives us more disability, especially acquisitions, so cash is a good thing to have is a component of this acquisitions. is people.y, a lot
we learned we have limitations as the people inside the organization can only be asked to stretch so far. perhaps it is a confluence of the right people in the right time and at the right place who can execute these objectives. we have someone who is entrepreneurial internally and has the idea, and now we have the ability to support them with a lot of different functions. is of the mistakes we made that someone has a great idea and we were like, go ahead and do it. that person needs help from the brand team, marketing, finance, and all those people, whoa, who are you? we have a real job. what are you asking us for? and thee entrepreneur cofounder of the company and was asking for resources and people were telling me, i am sorry. i am too busy.
be able to take on these challenges, you have to first hill teams that can be responsive, and you can only stretch teams so far. -- first build teams that can be responsive, and you can only stretch teams so far. >> you are also stretching the concept, including what we just talked about. are you recalibrating how much real estate will make up your business versus other parts? and you come up with a balance? -- have you come up with a balance? >> my title is a chief culture officer. before i was chief creative officer, also specific because it did not want anything to do with money. that said, again, what we have been honest with our investors come in terms of what were trying to accomplish in the about, and people have
supported us because they believe in our ability to execute. .e consistently executed that has given us the license to explore, but i am not in the room when we present the numbers to the bankers or the investors. i just know the result coming out as they give us the money, so they must like what they hear. emily: that was the wework co-founder speaking with scarlet fu. bitcoin is testing a record, just short of $8,000 this week am the rally just after days of 29%.ing that does it for this edition of "bloomberg technology." we are live streaming on
see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. ♪ announcer: from our studios in new york city, this is "charlie rose." , theie: jeff is here executive producer of 60 minutes. this year marks the 50th anniversary of the broadcast. the show was created in 1968. jeff has written a new book about the history of the legendary program. it is called 50 years of 60 minutes, the inside story of television's most influential broadcast. here is a look at 60 minutes over the past 50 years. [clock