Staff john kelly said the president will be briefed today on the democratic rebuttal of the gop memo alleging bias that at the fbi and doj. Trump has the document, but has reportedly not read it. He has until friday to block the release. And an infrastructure proposal next monday, hoping to generate 1. 5 trillion in ending on spending on roads, bridges, airports, and other public works. Only 200 billion would come from the federal government. And the pentagon says the war in afghanistan is costing u. S. Taxpayers 45 billion a year. Lawmakers grilled the Trump Administration today. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Cory i am emily chang. This is bloomberg technology. Afterhours trading soaring as much as 30 after smashing estimates in the fourth order. We will break down the companys first earnings victory since it went public. And the take on the gender dynamic in Silicon Valley. My conversation with a paypal cofounder. The move to get Workplace Culture right. And travis takes the stand, the courtroom showdown between uber and waymo. But first, to our lead. Snap jumping in afterhours after a blow away fourthquarter Earnings Report with revenue that topped estimates for the First Time Since the company went public almost a year ago. The earnings were buoyed by momentum in the advertising business and user growth. Snapchat said fourthquarter sales jumped to 285 million and to 187ctive users jumped million, up 18 from a year ago. Joining us from seattle is debra williamson, and sarah frier who covers snap for us. What did snap get right this quarter . Sarah they had been transitioning their advertising business to make it more automatic and programmatic, selling automatically, which means that they can have a bigger base of advertisers. The price of ads has actually gone down, but the volume and the amount of time people look at these ads go up. So snap has been able to make this work for them in the First Quarter for the first time. Emily deborah, what is jumping out to you . We know they have been doing a lot. There is the whole redesign, and perhaps we are seeing some of the results of that, what do you think is really driving these results . I think it is a couple of factors. I think that of all, snapchat , first really needed this quarter. Because the previous quarters were not so good for them, so this is a positive sign for the company. I really feel that users are still heavily engaged with snapchat. That is proven out i the increase in user growth rate this quarter. I think that advertisers, though some of them have been skeptical, they still see snapchat is being a place where they can be super experimental. Where they can try new things. And where they can really start to engage with the super important youth and teen audience. Emily im looking at the afterhours chart on bloomberg, still up 20 . The big question is can they sustain this over several quarters, not just one . Sarah i think that is still a huge question because this company hasnt proven that it has a lot of visibility looking into the future of the business. Including big surprises, nothing to show us that future quarters wont as well. They still have a long road ahead of them. They are competing in this market that is dominated by facebook and google. Yes, those players have advertisers wanting alternative for their money. Snap is marketing itself as an alternative. But still, it is very competitive. And instagram is growing past of nap has in terms products that snap actually invented and copied by facebook. Emily they have been accused of lifting some of snaps product ideas and executing them, perhaps, even better. What do you think the real challenges are for snap Going Forward in terms of what you will be watching . Debra first of all, to put a few numbers on what sarah just said. We are forecasting instagram have 8 billion in ad revenue this year compared to 1. 5 billion for snapchat. There is quite a gap in between the two companies in terms of advertising revenue worldwide. Snapchat is growing at roughly the same rate, about 90 growth this year compared to a similar amount for instagram. So just to put those numbers on it. But back to your question, i think the competition with is still and facebook something we are watching closely. We are also watching, because snapchat up until now has been very aggressive with new new products and new innovations. We are seeing things like maps maybe not perform as well as maybe the company hoped. We saw spectacles not perform as well as the company hoped. So the question is can snapchat actually continue to be aggressively innovative and successful with those innovations come and stay a step ahead of its competition . Emily what about the leadership turnover at the company . Is that a concern . Debra not so much. You obviously want to have strong leaders at the company. We look at two factors, growth in ad revenue, changes in ad revenue, user changes. Both of those were positive this quarter. So i dont think the changes in the management of the company are something that is impacting either of those factors at this point. Emily evan spiegel has made it clear that he knows that people who work at the company want to hear from him more. Do you think we will see more of him out there . Sarah there is a lot of confusion at the company right now because this redesign that you mentioned earlier, it was supposed to be done by the end of the year. And now we see it will be fully rolled out until the end of the First Quarter. So there are clearly some things that are still missing deadlines. There has been that management departure that you mentioned. Company has a lot to work out in terms of how it grows. There have also been a few rounds of layoff recently at the company. Emily sarah frier, i know you will keep us apprised. And debra williamson, thank you. Great to have you here on the show. Now to the Broader Market with whiplash. S. Market with the dow turning in its best performance in two years and tech shares helping lead the comeback after a two day pummeling that spread to Global Equity markets and brought volatility back to the forefront as the stocks saw wild swings on the day. Here to bring us highlights is bloomberg reporter abigail doolittle. Abigail weve had a lot to report on. Today really wild on the open. We had major averages down more than 2 , then whip sawing between gains and losses on the day. And the rebound rally at the end of the day, snapping up the highquality names like apple, amazon, micron, nvidia. That fear of missing out. The question is whether or not we will see the buying power last because the technicals are a little shaky for the major averages. Plus, if we look at the major averages from the peaks, they are still down about 5 . At that point, the sellers are in control. A little bit of relief for the buyers today on the day, right at the end of the day. Emily is the volatility going to last . Abigail it may. If we hopped into the bloomberg and take a look at this chart of the nasdaq. First of all, lets walk through today. This is today. You conceal these whipsaws. The morning on the open, a lower low, suggesting that maybe we were going to be pummeled once again, but then the recovery. The question is, whether or not this is the bottom. This is one of the bottoms. Probably not. Theres probably a little bit more selling pressure and you will have to take other technicals into account. Oh we will see, maybe buyers will get gritty and the fear on missing out on tech names and the rally, buying amazon thinking this will be the low. Time will tell. We are looking at losses still. The week is young, so lets see what wednesday, thursday, and friday bring. Emily bitcoin ending the day slightly low after hitting a big low over the last week. Abigail what a story of the year. The cryptocurrency. Speak of volatility. There is not a lot of fundamental evidence here to point to. You can talk about regulations, credit cards, banks not wanting to use the cryptocurrencies, but this is a great place to use the technicals. Pure supply and demand. , iwe happen to the bloomberg think i showed you this chart when bitcoin was probably closer to 13,000 or 14,000, it could go to 1000. These are the technicals. Last year, the big uptrend. Buyers in control. Then we have this range range between the buyers and the sellers duking it out, really battling, then the sellers took control. This entire range could drop from the downside. An equal and measured move is towards 1000. It is still a possibility. Suggesting wild volatility, uncertainty. Stay tuned. Emily its going to be a ride. You will keep us posted on every twist and turn. Thank you very much. Disney also posted firstquarter results. Teeming crowds at theme parks , including its new avatar theme park helped the Worlds LargestEntertainment Company beat on the top line. Profit at the tv business remains and retreat, and the film studio, a big comeback awaits a bigger slate of films , including black panther this month. Revenue totaled more than 15 billion, but missed wall street forecast. Coming up, paypals cofounder sits down with us to discuss how his opinions about diversity and meritocracy in Silicon Valley have evolved. If you like bloomberg news, check us out on the Bloomberg Radio app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Emily apple is pulling back on buying Corporate Bonds with the its overseas cash as it prepares to bring money home to the u. S. This is according to people familiar with the matter. About 157 billion worth of the apples 285 billion in cash is making it a leading lender. Investors have been bracing for a market with fewer buyers and the new u. S. Tax law was enacted late last year. Max levchin rose to be one of the cofounders of paypal rose to be one of the most powerful men in technology, taking a center seat in Silicon Valley. And in that position, his opinion on diversity and hiring has greatly evolved. I covered his story in my book, breaking up the boys of of Silicon Valley, which it stores today. I caught up with max levchin and discussed how things operated at paypal and beyond. Max i would describe my efforts at the time with the benefit of hindsight as generally unaware. I was not particularly concerned with the gender balance or with any kind of balance. I was trying to hire good people as quickly as i could. And the one great source of excellent coders i knew was my alma mater where i came from two years prior. So i was actively vacuuming up the best and brightest that i whichtime with in school, all happened to the men. They were men of lots of diverse ethnic origin, but there were very, very few women even in my class, which was quite large. Knowhe few that i did seems to switch majors from Computer Sciences something else. Emily what you probably didnt realize was that you are becoming part of one of the most powerful networks in Silicon Valley history, which has come to be known as the paypal mafia, a group of influential people that all happened to the men. What is your take away from that . Max its its not unique. Every successful startup, especially one that selects from drive and grit and entrepreneurialism tends to generate a wave of entrepreneurs that feed off of the capital of , the network, the cachet that you establish with the Company PriorGoing Forward. Nothing but great value to have derived from the network we had established. Obviously, it would be even better if it had good representation of the other gender. Emily do you think the idea of meritocracy is problematic in Silicon Valley . Because you know, one of the things that people who worked at paypal told me was that it was a meritocracy and they were hiring based on merit, when you were hiring a lot of people that you knew. Max meritocracy in a vacuum is not a bad idea. To be able to say honestly that the people that are here have earned their spot. It is a great motivator. Is downside of meritocracy if that is the only criteria, you select from people you know because if you dont know how to reach out into other groups, other communities, other flavors of engineer, for lack of a better term, you will pull from a shallow pool. We ran out of candidates because i ran out of male friends and there was no one else to recruit. Emily what was interesting to parts of your story to me is that you admit that there were some bros, a broey culture that developed, and you took action. What happened there . Max the thing about slide i think what triggered my attention to all these things was really slide. Where i started out with basically a neutral point of view. The culture will shape itself, we will get some really bright people in. At paypal, i was too young and we were growing too quickly. And i did not have enough of a worldview to understand what was being shaped. At slide, i had seen enough of these companies and was starting to realize it was forming itself without any guidance, was not what i like, was not what i wanted to do. Hard drinking, some of the on a bad day, i might call it sexist behaviors it was really not at all what i was comfortable with. And when i sort of try to gently steer it, it was not going away on its own. I realized if i dont take matters very seriously and start pushing out and drawing some very bright lines about what is ok, what is not ok, what is expected, it would not cure itself. Emily so what did you do . Max tough conversations had to be had. A couple people got fired. I made a few attempts to ban some of the happier of the happy hours. Not all of it worked. The Lesson Learned from slide was actually kind of a sad one. There are a lot of amazing people, people that i would work with again and again. I am working with some of them again. I did not blow up those relationships completely. But just a small amount of bad behavior created such a negative patina to the whole thing. It was very hard to embrace some invert some of the choices i didnt even make. I just let them happen. Emily now at the firm you have taken a different approach and you are more focused on hiring and promoting women. What are you doing differently that you didnt do at paypal or slide . Max the most important thing that we did at the firm is we took culture as a firstclass citizen. There was never a moment when we did not ask ourselves, what is this decision, what is the project, what is this process doing to our culture . It might sound embarrassing, but it is the First Company where i wrote down our core values before we made our first higher. Hire. All the companies i found it in the past, the culture emerged and sometimes it was better and sometimes it was not. It would affirm that i came into the founding with the view that i have to form the culture, i have to control what i want this company to be when it grows up. Even if we have no employees, i want to know is the kind of place i can be proud of, as opposed to the one im trying to fix. Emily how do we get more people, mostly men, to understand this problem and do something about it . What do you think needs to be done . What do ceos and investors need to do . Max theres a bunch of things. I dont know that i have an exhaustive list. I think just being aware of the fact that it is a talent war and is not justwin it by saying im going to go back to the same old well and get the same people out. The way to win it, at least the way it has worked for us, is you widen the net that you cast. That naturally leads to embracing inclusion because you find diverse candidates in diverse places. Emily that was my conversation with max levchin, cofounder of paypal and ceo of a firm. Spacex launches the most powerful rocket in the world. That story is ahead. And if you have a bloomberg terminal, check out tv. Watch us online and click on your charts, graphics, and interact with us directly. Just click tv on your terminal. You can also contact us on twitter. Check it out. The first 24 hour Global News Network streaming live on twitter. This is bloomberg. Emily spacex has officially launched the worlds most powerful rocket. The falcon heavy lifted off in florida to embark on its first test flight. It was carrying a red tesla roadster on an endless road trip past mars. Following the launch, spacex did something never before seen in space history. It relanded multiple rocket cores back to earth. Two of the three boosters came back and landed upright at cape canaveral. The boosters landed at the same time, sidebyside. This is a major milestone in the companys quest to grow the Customer Base and fund its vision on making life multiplanetary. Slack has officially named its first cfo in a blog post. Stewart butterfield announced longtime employee alan shim would be the companys chief financial officer. Just last year the Company Brought sarah frier on board as the First Independent board member. These changes could be a sign of slack pointing towards an ipo. Some context to last weeks shakeup at airbnb. At the Companies Planning meetings, cofounder and ceo privately told his been cfo Lawrence Chelsea that airbnb was putting off its initial public offering. He had been lining up investors and was eyeing a jump to chief operating officer. He protested the ipo delay. And the decision to promote above him. By the end, chelsea was out of a job. Making investment in a real estate market, google agreed to pay 2 billion from chelsea market, which sits directly across the street from the tech giants new york headquarters. The seller of the 1. 2 million squarefoot property is jamestown lp, an atlantabased Real Estate Investment firm. Coming up, more reaction to snaps blockbuster earnings results, topping estimates for the First Time Since company went public almost a year ago. We will dig into the numbers. Bloomberg techs Live Streaming on twitter. Check us out weekdays 5 p. M. In new york and 2 p. M. In san francisco. This is bloomber