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tv   Bloomberg Technology  Bloomberg  November 26, 2019 11:00pm-12:00am EST

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♪ taylor: i am taylor riggs in san francisco, in for emily chang, and this is "bloomberg technology." coming up in the next hour, strong debut. shares of alibaba begin trading in hong kong, ending the trading day more than 6% above the list price. plus, check the books. startup bookkeeping draws scrutiny. we have details.
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and we hear from the viagogo chairman and founder after that stubhub cash deal from ebay. first, our top story. five years ago, alibaba pulled off its biggest ever ipo on wall street, and today, it rang up the biggest share sale in hong home -- in hong kong in 10 years. the listing is being seen as a triumph for a stock exchange. stars toyears it lost u.s. rivals. this comes as pro-democracy protest have gripped the city for weeks. joining us from washington, john freeman, vice president of equity research at cfra. if you take a look at the company raising an additional $11 billion, where do you see that company in terms of that use of cash? thank you for having me. it will be interesting to see what they do with the extra cash. i think that brings them to
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about $43 billion in total, 21 in net cash. i would like to see them invest more heavily into the cloud business, which is 8% of revenue now, it was growing 64% year-over-year growth in the last quarter. we have seen this movie before, how the cloud business scales with amazon. with amazon, it is 12% of revenue, 70% of profit. as it crosses the breakeven point soon and they can offer additional services, i think that would be a good way to spend the money. i am sure they will invest some of it along those lines as well as artificial intelligence and cognitive computing. i think those are the things i would like to see them focus on with the use of cash. taylor: i want to take a look at a chart i am showing here. it is showing basically alibaba continuing to gain ahead of other big rivals in china we
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know like tencent, extending that lead, extending that outperformance. have they not done enough in the cloud computing and other sectors you mentioned? it seems, at least from the stock price, they are well ahead of rivals. john: they certainly are. but like amazon, when amazon was valued previously, no one really saw the cloud business coming. for alibaba, it was more anticipated. perhaps the cloud, to a large degree, the stock could reflect some of the optimism of that cloud business. i think a lot of people don't realize what kind of earnings growth that can propel. in the past, revenue growth has been well over 40%, but it has -- earnings growth has actually lagged behind revenue growth. and sort of the scale
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efficiencies of the retail business, that can reverse and is likely to reverse such the earnings growth will exceed revenue growth in the low 30's for the next three years. that is pretty compelling for a stock that is trading at 24 times earnings. you usually don't see that here in the states for a tech company like that. taylor: you have mentioned amazon a few times. i think, over the years, as we have tried to define this company, we would off-the-cuff say it is the amazon of china. i have heard maybe that is not accurate. as you take a look at this big company with tentacles in many business lines, how do you categorize alibaba? john: i think it absolutely is the amazon of china. if you want a revolving door pitch of what it is, that is how you would describe it. of course, there are significant differences.
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but they are dominant in e-commerce in china just like amazon is dominant in e-commerce in the united states. they do direct sales as well as support a third-party platform for third-party sellers. they have a cloud business. they are getting into the media and entertainment side. alibaba of course is also involved in payments, that kind of area, relative to amazon. i do think the companies are similar. one of the things that are propelling alibaba to faster topline growth is the fact that e-commerce is a larger percentage of chinese commerce. which is of course, growing faster, retail growing faster than the states. cloud is a lower level on an absolute basis. therefore it has a chance to really shine.
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the amazon cloud business growing at about 40%. alibaba, 64%. i think that is what you want to focus on. those fundamentals. that is how i view the company. taylor: one headline in your research says patriotism does not go far in equity investing. as we switch from fundamentals to looking at this hong kong listing, does the company today, given its chinese base, create some goodwill with hong kong by listing with hong kong? john: absolutely. absolutely. i think that is reflected in the fact that -- this is not an ipo. i heard the word ipo thrown around with this listing. there is nothing initial about it. it is a secondary offering. normally with a secondary offering, which is diluted, which is, a little more than 2% degree, the stock price declines a little bit. in this case, it went up. that is because mainland chinese were able to purchase shares for the first time directly.
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that is good. but i think at the end of the day, stock prices reflect earnings growth. as a fundamental investor, you need to look at that in evaluating alibaba. taylor: fundamental and patriotic analysis. that is john freeman at cfra. thank you. dell is exploring a sale of its cybersecurity business in hopes of garnering at least $1 billion for rsa security. the company acquired rsa security through the 2016 takeover of emc, that went for about $2 billion. on tuesday, the computer maker reported third-quarter earnings with profits topping wall street estimates. for more, let's head to new york where bloomberg deals reporter , liana baker has been covering the story. we are getting the earnings just in the last few minutes or so. the bottom line, the company
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releasing corporate demand for computers. walk me through your takeaway. liana: dell sales only grew about 1%, less than analysts thought by a small margin. earnings did beat analyst estimates. it did say it would try to pay off about $1.1 billion in debt. that is the story with dell. dell has long-term debt of about $47 billion. the shares did not really move after its earnings today and they will have a call later. taylor: i want to talk about that deal, this cybersecurit ies space, selling off $1 billion. is this because they wanted $1 billion to pay down some debt or are they exiting the cybersecurity business that they don't want to be in? liana: as i understand, even if dell gets over $1 billion for rsa, a pioneering cybersecurity company it got through acquisition a few years ago, that will not move the needle for paying off debt.
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they still have $47 billion in long-term debt. but it will help the company become leaner. they are really more focused on pc's, storage, infrastructure, and cybersecurity is not a huge focus for them anymore. it has been reported dell has looked before in selling a stake at secure works, a cybersecurity services provider. $1 billion, even if it does not -- does sell, will not be a huge needle mover but it is a big story because rsa is a big name. taylor: it's also a big story because the one billion-dollar price tag is notably less than what they paid for it a decade or so ago. is that indicative of the changing landscape among cybersecurity businesses? liana: rsa is a good business. it was founded in 1982 and has high margins. emc, which dell bought a few years ago, had purchased the company in 2006 and that was a different time. the cloud was just getting off the ground.
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there are so many cybersecurity companies that focus on what rsa focuses on, which is connected corporate employees to their networks. clients with of tokens in their pockets that generate random codes to let them on the corporate network, but it is a different time. there are newer companies out there, that we talk a lot about. taylor: liana baker from bloomberg, thank you for joining us. coming up, more tension between google and employees as the company fires four workers tied to protests. we have the story next. this is bloomberg. ♪
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taylor: more tension between management at google and the company's activist workers. google fired four employees for what they say was violation of data security policies. but some supporters of the fired workers say that organizing activities led to their dismissal. some google staff have been protesting the company's work with the military, amongst other reasons. to discuss all of this, we are joined by rbc capital analyst mark mahaney, and our bloomberg analyst. what do we know about the firing? alastair: four employees. we know a couple of their names, we don't know the other two. all four have been involved in protesting some of the contracts that google has with, for instance, customs and border protection agency with the u.s. government. they have also been protesting some of the things happening in
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the past couple of years at google, including how the company has handled sexual harassment. the connection between all of those is basically that they have either been involved in or helping lead some of the internal protest. taylor: at what point do you look at this and fold this into your fundamental analysis, if at all? mark: four layoffs on an employee base of 110,000, that qualifies as immaterial. if it leads the company to not participate in areas that are potentially commercially attractive like defense contracts, there could be an issue for wall street. there have been some internal dissension, but you would expect it. we are in the bay area, an unusually woke community. you have very actively involved, some of their employees are very actively and politically involved. i don't think this is terribly
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surprising. i think you would find it in other companies. but a street perspective, only if it really leads to missing out commercial opportunities. taylor: this is not a one-off situation. like mark was saying, this is happening a lot at a lot of different tech companies. where does this sit in terms of size and scope, and increasing distrust between staff and management? alistair: i think google has had a great history where employees have been empowered to say a lot of things on internal message boards, share their thoughts. a lot of the amazing rings google has come up with over the years has come from that. they empower engineers and harness that. some of that goes away, which is not great. but in general, if the company steps away from any other contracts, that would be bad, but i think this latest skirmish is an example of where the company is trying to get
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everyone back to work and focus on products and strategies. taylor: i want to switch gears a little bit and look at a story from earlier today. we know google had bought fitbit. we learned that facebook was the original anonymous bidder. will take over fitbit. where do you see all of these big tech players vying for the wearable space? mark: they are vying for the wearable space. we had google for fitbit, $2 billion cold cash. facebook for control labs, roughly $500 million. amazon with two more wearables product, echo loop and frames. when you see three of the major faang names start investing in wearables, we should start paying attention to the space as investors. not material in the next 2-3 years, but possibly the next 3-5
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years. snapchat is another company that has invested aggressively. i don't know if this is the next compute platform like mobile phones, probably not. or there is something here, companies would not be investing in the space. taylor: what is it about wearables? alistair: i think it is partly ambient computing. we had pcs, then laptops, then phones, then something that is wearable is even more connected with you, goes with you. maybe in the future, things like speaker technology they have, you would be able to just be able to say things and get information that way. i think that's one part. the other part is the data, that google is very interested in how -- in health technology. if they have that data, it can inform some of the work they are doing in that area. taylor: we have been talking about google, facebook, twitter a little bit.
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to the campaign ad policies of these companies. google seems to have been coming in the middle with facebook on one side, twitter on the other. how do you view google's political ad policy? mark: i think it is still a work in progress at all three of these companies. twitter made a statement about not allowing political advertising. i know we talked about that before. that struck me as sort of an extreme position. there seems to be increasing pressure on these companies, if they are going to accept political advertising, they them. fact check that would be a great solution for facebook, they said are not going to fact check but they probably should. that is personal opinion. the only reason it matters, we have a major election coming this year and there is a fair amount of revenue associated with this. we think there will be at least $2 billion spent online trying to influence people's political opinion and how they vote.
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that is a good thing, but how it is spent -- people want to see more transparency, that is the basic thing that most voters, citizens want to see. they should offer that. none of them are actually doing a great job of showing greater transparency but they should be able to do it. taylor: bloomberg's alistair barr, thank you for joining us. lucky for us, mark mahaney will be sticking around. coming up, his top tech picks for 2020. what he sees as the stock most undervalued. that is next. this is bloomberg. ♪
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taylor: we are wrapping up third-quarter earnings and the communication services sector posted some strong topline revenue growth year-over-year. the best of all the s&p sectors. the bottom line is telling is a -- telling us a different story. taking a look at earnings-per-share growth year-over-year, relatively muted.
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still with us, rbc analyst mark mahaney. what happened in the third quarter in the middle of that income statement where profitability growth was less than topline revenue growth? mark: i think at the top of that list would be amazon. they surprised on profits because they are doubling down on this one-day investment, making prime one-day. that is an expensive investment. i think there is a more interesting story at the other side of the profitability curve. we saw some companies that brought forward their profitability timelines. uber and lyft. snapchat is just about print its first positive ebitda quarter. pinterest is turning the corner on profitability, too. i was struck by the positive inflection points rather than the negative ones. taylor: you brought up lyft and uber. are you confident that 2021
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targets are intact? mark: no. i think they have a high profitability of getting thereby insurance costs. it is a big expense. i think they also have pricing power. i think these companies, as private companies, were run really inefficiently, really aggressively, more growth, which means a lot of wasteful spending. you bring them public, public investors come in and say, we need profits. the management teams are responding to that. i think there's a lot of room to take out excess cost without sacrificing growth. we've seen it the last two or three quarters and i think we will see that in the next two or three quarters and we will become more confident in 2021 profitability. taylor: how much of a hit for uber was the london news this week where they temporarily did not get their license reviewed? -- license renewed? it's a big issue. tbd. i want to be careful here. i don't think they have been kicked out of london. this has happened to them before, where they have had
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their license threatened. they will appeal the decision, be able to continue to operate for a couple of months. i assume there will be able to work it out with the london powers that be, the taxi commissions. there is no doubt that uber and lyft have taken on taxis. they have done it in multiple markets. consumers have voted strongly that they like ridesharing services. i assume consumers in london will speak up too. it is not over yet. they have not been kicked out yet. my guess is that, as happened about a year ago, they will stay in the market, they will just have to work on more concessions. taylor: in your recent note wrapping up third-quarter earnings, what surprised me was facebook remains one of your large-cap top picks. as you take a look back at where this company has run with all the regulatory scrutiny, why facebook? mark: you are right -- facebook, microsoft, google, amazon, apple. facebook is certainly in the crosshairs. i'm not sure they have done anything that cuts across antitrust lines but they have had issues with data privacy,
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user data protection. we are focused on that, concerned about that. that said, i think that is more than priced in. you can buy the stock at a discount to the growth rate. i think the fundamentals are the strongest in the large-cap internet space in terms of free cash flow generation. taylor: another big theme of the year, the streaming war. disney+. where do all of the streaming wars fit into your thesis? mark: there clearly is a major inflection point here. netflix went out on a limb and said we think there could be a market for streaming. i guess everybody has finally agreed. everybody will step in. but the biggest competition for netflix has launched, that is disney. look at netflix's stock. when it finally started trading up was the first day disney was out because that risk is in the stock. it is safer to get in the water. right now, this is a scale business. whoever has the most subs can
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afford to spend on content. netflix has the most global subs today, and my guess is in three years, it still will. there could be a lot of upside in netflix shares starting right here. taylor: we have about 30 seconds. take a look at this chart. what you think is the biggest play in streaming is roku. they are crushing it. crushing the shorts, crushing everyone, but it has been volatile. why roku? mark: if you are going to be a streaming provider and you want to advertise your service, why don't you market to all those people already using roku devices? and if people start their subscription services on roku, there will be a revenue share. wins out two or three of this for roku. there are a few derivative plays but roku is one of the best. taylor: i could do this every day. thank you. rbc capital's mark mahaney, thank you for joining. coming up, we head to hong kong as we continue our look at
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alibaba's listing debut. this is bloomberg. ♪ here, it all starts with a simple...
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taylor: this is "bloomberg technology." we join bloomberg daybreak australia to bring you the latest in global tech news. i'm taylor riggs in san francisco with shery ahn and paul allen. let's look at the global tech stories of the day. shery: partners group holding is considering a sale of u.k. software provider. the sale could fetch close to $2 billion for the switzerland-based asset manager. it provides special software for governments, health care providers, schools, and more. a softbank backed startup raised $80 million in new funding.
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the ai analytics customer company tries to predict user behavior to help clients and advertisers. it raised $162 million in funding to date from investors, including sequoia capital and softbank. one company will raise $1 million for start of investment funds. the venture will target startups from southeast asia to india to health and strength in its foothold in fast-growing mobile and internet markets. the fund will focus on payment and online finance. those are the top global tech stories we are watching. paul: let's turn our attention to asia's most valuable corporation, alibaba. the chinese e-commerce giant pulled off the biggest share sale in hong kong in nearly a decade, raising $11 billion. alibaba plans to use the funds to drive user engagements, improve operational efficiency
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and pay for continued innovation. joining us from hong kong with more details, we have bloomberg's own sophie kamaruddin. you were on the hong kong exchange on tuesday. we saw alibaba shares rising. how was the mood? it appeared to be a successful day. sophie: hong kong is home to two of asia's most valuable companies. the welcome mat was certainly rolled out. we had alibaba ceo daniel zhang and senior management joined on stage by the hong kong finance secretary and former chief executive. we heard at the convention there were dancing mascots. a lot of cheers as alibaba shares opened at 187 hong kong dollars, above the issuance price. shares rose as much as 8%. it was the most actively traded stock in hong kong, far
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outpacing rival tencent, bumped down to second place as hong kong's most valuable firm by market cap. adr's in new york continuing to climb, rising for a fourth straight day. some cleaning the hong kong listed shares could drive investors looking for arbitrage opportunities. analysts are bullish. adr's have an average price target of 225. taylor: what are you hearing about use of cash? they are raising $11 billion. we spoke with an analyst at the top of our hour. they say they have $40 billion in cash on the balance sheet. where are they spending? sophie: this was considered a symbolic sale. the total funds raised could be boosted to $12.9 if the agreed to option is exercised. when it comes to what it may do with this cash in this new era
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held by daniel zhang, we could see more acquisitions. funds could be piled into fending off competition on the mainland, as it has tencent and others to contend with. we have our bloomberg columnist pining that perhaps you could see buybacks. perhaps it will sit on the cash pile. paul: in terms of the buyback idea, is there a sense alibaba might want to move closer to home and perhaps repatriate some of the money in new york? sophie: this was part of the reason offered as to why alibaba chose hong kong after failing to list here in 2014. there are plenty of investors on the mainland who are chomping at the bit to get in. when you look at the valuations for alibaba, there certainly is room to narrow the gap. we see that with players like amazon, as well as with tencent,
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then that alibaba is must-have. perhapsk connect could be initiated by next year. that expected to boost valuations for alibaba. taylor: it is a crowded market. amazon, there is a lot of local chinese players as well nipping at their heels. what is alibaba's strategy in how they are differentiating themselves? have seensophie: we their ecosystem expand over the course of a year, getting into various segments. they are looking to move into segments like logistics. we have seen this strategy of saying they will try and hit the consumer across various touch points. you have seen that with how ali pay operated. financial looking to start a move into billion to
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the start up space. we have alibaba looking to move beyond asia when it comes to its ambitions. where they go from here with that war chest, certainly lots that could be done along the horizon. paul: this was obviously a very important day for the hong kong exchange and hong kong more broadly, especially in the context of the unrest recently good is this going to boost liquidity in the hong kong exchange and encourage a few other listings? sophie: that is the expectation. the hong kong exchange chief was cheerful yesterday following the debut of alibaba. he said he was confident other companies will look to hong kong when it comes to their listings, given the relaxation around the dual class share structure. and with china calling for companies to return home. hong kong has missed out in mega listings in the tech space,
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as chinese companies had to turn to new york instead of home. chinese unicorns may consider this journey, as alibaba has paved the way, if you will. i want to highlight -- there is a consultation underway for alibaba to join the hang seng index. currently it is unable to do so because of the secondary listing, as well as its governance structure. it looks like, with the ambitions hong kong has, there will be more reviews of how to entice these tech unicorns to come back to hong kong. hador the city itself, you carrie lam being among the campaign leaders to bring alibaba to the city, which is a signal of confidence, given the economic aggressions we have endured the past few months. bloomberg'sk you to sophie kamaruddin.
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stick with us. we have much more ahead. this is bloomberg. ♪
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taylor: just one day after uber's future in london was cast into doubt, its rival says it started signing of drivers in london and will start service in the city within weeks. it had expected to begin its london business before the end of the year. the company is looking at a january launch. the indian ride hailing company, backed by softbank, says it already served millions of customers in other u.k. cities since its rollout last year. to discuss the rollout and implications for uber, we are discussed by -- joined by gabe klein. thank you both for joining me. gabe, let me start with you.
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i am confused about the actual issue. i know it is safety. i think city officials have become hostile to ridesharing company's -- companies. they are blaming them for traffic congestion. what is the issue, in your opinion? gabe: there has been a number of issues over the years with transport for london. the most serious recently is the impersonation of drivers by 15,000 people. they don't have security in isce to verify that a driver who they say they are. they were asked in london to use facial recognition technology. they did not implement it in the timeframe they were supposed to. at this point, they have once again had their license suspended. of course, they are going to appeal that. i imagine it will go through the courts. the real question is how soon will this actually take affect on the streets.
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taylor: i want to pose the same question about how it will impact the company's fundamentals. ygal: that all depends on what happens in the courts. in the near-term, they should be operating business as usual. if they actually lose a license, you will see a real impact to revenue. we estimate 3%, maybe 5% of total revenue. it could be a real meaningful impact. resolved atis to be some the larger question and the point. more long-term question would be what happens with competitors as they come in and try to take share and leverage off this opportunity. taylor: where do you see that competitive landscape? gabe: at the end of the day, uber has built an incredible product, a great marketplace. however, it is a commodity at this point. you see here in the u.s., most
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of the drivers that drive for uber drive for lyft, but the consumer wants a ride. i don't think they necessarily care who provides it. the big issue for uber is they have been on the outs with municipal governments in the u.s. and europe increasingly the last few years. we thought it would change with the new ceo, and instead they sort of doubled down on these disruptive tactics with local government. we are seeing a real pivot in how government will deal with companies like uber. taylor: i want to show you a chart i am showing my terminal at gtv , showing the stock price is trading around $30 a share. most analysts have $44 price target, which would be a gain from the current price. how much of the regulatory hostilities that we see are starting to impact your views on the stock?
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ygal: it is not making it easier. it has definitely been impacting stock price. it is not just london. it is happening in california. you could expect to see other cities taking a look at this. this could be a really serious security threat. drivers impersonating other drivers, drivers driving without licenses to do so. it could be a real risk. i would think other cities start taking a look at this, too. when does the regulatory environment ease up around uber? it is on uber to address those issues more seriously, address these security threats and put them behind them. it has been happening way too often for uber in the first six to nine months as a public company. they need to be better at addressing that. ultimately, we think they will be back in london. it is a really big market.
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they can navigate these waters and end up in a better position. that will be a big test for them going forward. taylor: is regulatory issues the biggest headwind for the stock? ygal: it is one of them. competition and regulatory issues are the two big challenges. competition is driving down pricing -- pricing is one of the biggest issues in terms of profitability. that is a big factor over the long-term. regulatory things keep popping up. the vigor they become, the more -- bigger they become, the more there will be a wait on the stock. taylor: talk to me more about competition. who is the biggest threat for uber at this point? is it lyft? ygal: lyft is the biggest threat in the u.s. the issue is they have different competitors in different markets. some are more competitive than others. in the u.s, you are starting to see rationalization come in, there are only two key players.
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i think that is when the market starts to stabilize better. the environment in the u.s. is certainly better. dd coming into latin america. in europe, there are a number of competitors. there are talks of dd coming into that market. it depends where they are. competition outside the u.s. is still a big issue. inside the u.s., it starts to stabilize better. gabe, we have been talking a lot about competition. i want to get your thoughts on competition. where is the biggest competitive risk for uber? gabe: as a counterpoint, i think this is a much more serious situation than we think. on top of what is happening in london, you have ab5 in california. it is not necessarily a competitor. but the reality is, if people are made employees instead of contractors, it will change the economics of the business. uber lost $3 billion last year,
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more this year with a laissez-faire regulatory system. i think as the regulations get tighter, as you see bills like the seattle bill passed today is calling for-- a minimum wage and tax on rides, this will get more serious. the competitor is the personally owned automobile. taylor: that is interesting. walk me through that thesis more. gabe: ultimately, uber will have to raise their prices significantly. they are losing 30% on each ride now. they are subsidizing that. you have, on top of it, you have these new taxes being levied. if costs go up, you have to ask, what is the growth rate that is already slowing going to look like? are people going to go back to personally driving automobiles?
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as someone who works with cities, we don't want to see that. at the same time, we want good actors to be working with the city government. it is up to uber to take a different approach and start to co-create solutions with cities instead of fighting cities. that is not going to pay dividends for them or stockholders of uber. taylor: when we talk about these differences and similarities between uber and lyft, uber in some ways looks like the smart one, doing a lot of different diversification, where lyft is clearly the pure north american player. any sense from this week that uber or lyft has the right strategy? what is your opinion? ygal: our view has been shifting on that, actually, not just from this week, but the past couple months. on one hand, uber's global
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ambitions and multiple business lines, the ability to leverage their platform across rideshare and food delivery, then freight, a small not quickly growing part that createsness, an opportunity for them. over the long run, it is a really big market. if you can see the fundamentals in those markets on a global basis come together, you can see where there is a lot of profit uber in the long run. in the near-term, lyft's strategy is a lot cleaner. the food delivery industry is under a lot more competitive pressures. the economics of that business are under significant question, whether they could last, what the opportunity there is over the long-term. in international markets and rideshare, there are more than two competitors. that is pressuring rideshare in
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international as well. i think it is going to take uber longer to get to the clean point. lyft seems to be there a little bit better right now. taylor: thank you both for joining us. still ahead, after the wework debacle, softbank is not just losing investor trust in its start of valuation -- statup valuation, it's paper profits have also raised questions. this is bloomberg. ♪
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taylor: after the wework fiasco, softbank's startup model has been under fire. investors balked at big losses and troublesome governance. the company's accounting drew scrutiny, as softbank provides little transparency of the profit gains on its income statement. thank you, pavel, for joining us. walk me through the story, the difference between paper gains questioning softbank's model. pavel: we have had two-some years of vision fund. we have seen it in action. while there has been a sneaking suspicion that a $1 billion fund, a proverbial 800 pound gorilla, will do something to devaluations,-
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it was not until the wework fiasco that we start to see results. we took a more systematic approach, see how softbank contributed to the inflation of the valuation. the second part is how softbank books these gains on their balance sheets. in the past two years, the vision fund emerged as the biggest earner for softbank, far outpacing sprint and domestic telecom operations. it became a centerpiece of the company's quarterly earnings, while at the same time, built entirely on paper gains. taylor: do we see companies like wework, even though they are still high profile, as one-off situations, or has this been indicative of what is going on at softbank? pavel: that is really the multibillion-dollar question. for one, we know the vision fund's ride-hailing companies
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have already been reduced in valuation. that is a direct impact from the decline in uber shares. last time i checked, they were down 35% from the idea. -- from the ipo. we are told off record that the entire ride-hailing portfolio reduced in value on the
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vision fund balance sheet, but there is no way to tell. the vision fund cannot disclose these numbers. fund to disperse in years, the need to spend most be strong. taylor: thank you for joining us. that does it for this edition of "bloomberg technology." "bloomberg technology" is live streaming on twitter. check us out. be sure to follow our global breaking news network on @tictoc on twitter. this is bloomberg. ♪
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