Our coverage this week from the Goldman SachsTechnology Conference right here in san francisco. Well hear from tech heavyweights throughout the hour including the ceos of gopro, ripple, and Goldman Sachs. Lets kick it off with david solomon, Goldman Sachs resident and cocoo. David the year is set up in a way in which i think it should be very constructive for m a activity and ipo activity. Ipo activity started to pick up toward the end of we have got a 2017. Very healthy ipo backlog, but we also have an environment for a variety of reasons why meeting for a8 should set up strategic year for m a. Private market valuations, are they healthy right now . I think private market valuations have heightened the bit over the last 1224 months. Capital has been tighter for private market funding. I would not say that valuations are bubbly. In an environment for the last five years where growth was sluggish investors were looking , for a place where there was growth, and Silicon Valley is a place where there was a lot of growth. When you look at large debt, it is amazing what is going on. You look at a company like amazon, it is growing 30 on 180 billion of revenues. You look at a company like facebook on 40 billion of revenue is growing 40 . These are Big Companies with large market caps. They are growing very quickly, and that obviously creates interest is around other businesses that touch that space. Emily are valuations going down . David they are growing very quickly, and that obviously david i do not think valuations are going down. As long as Growth Continues and the trajectory we are on continues, i think there will be some semblance emily lloyd is that it is better for trading. We are seeing a lot of volatility. Do you expect that to keep up and how do you take advantage of it . David the volatility that we have seen as a result of what we were talking about with respect to economic growth. People are seeing signs of wages actually increasing. People think there is a chance of some inflation in the economy and you see strong Growth Numbers coming out. That will bring volatility back to a more normal environment. There is no question that volatility spiked over the last several weeks. It is coming off of extraordinary lows. It would be helpful at this point for volatility to be more normalized in the context of a Broader Market period. I would expect to see more of a normalization on volatility. Emily you are advising qualcomm on a potential takeover of broadcom. Do you think the 100 billion size of the deal would be an outlier. That is still a large number. They are growing organically. They have not participated in the m a consolidation. They have grown organically and are growing organically. That one of these Big Companies steps in and enters the space that does something that is significant . Sure, it is possible. A 100hink by and large, billion is going to be a big thing. We are watching the cryptocurrency space and riskadjusted we are interested. Emily at the moment with our clearing some future products for some clients. That activity is small. We have no immediate plans to start trading these currencies. There is a lot of hype, there is a lot of activity around this. Were watching the space question cautiously. We are trying to watch it like everybody else. We think blockchain is a very interesting technology. What are not cryptocurrencies become valuable and how that works out is something we will watch. Emily you have been vocal about hiring women, what specifically are you doing to make that happen . David diversity is hugely important for Goldman Sachs. It is an important part of business. For us to be successful with our excel as a capital organization, we have to have a very diverse organization. We have been working at improving the diversity of our business for 20 years. We hire a lot of people every year, particularly young people out of school. We have been very focused to try to make sure that the diversity of that group of people matches the diversity of the world we are hiring from. Whether it is women, black americans, or hispanic americans, we are looking for opportunities to continue to increase the diversity of our population. Over the course of last year we , have made great progress. We brought the diversity of women in our summer class coming in up from in the low 40s up to the higher 40s. We really focused on that entry points in the pipeline. If your entry point in the pipeline creates a more diverse population over time, it is pretty much the same. You should do better at having a broader pool. We continue to be very focused on that. Solomon,at was david Goldman Sachs president and cocoo. Shareholders at the meeting. Among the issues talked about was a special dividend due to the tax overhaul and a slowdown in the mobile payment space. He also addressed succession plans, saying what important roles of being coo is passing is passing theo baton. Coming up, we talk gender and inequality. We talk about the twitter turnaround and more. That is next. If you like Bloomberg News check us out on the radio. You can listen in the u. S. On sirius xm. This is bloomberg. Along ubers ceo has predicted amazon style losses. Losses as they expand. Losses as they expand. He told the Goldman SachsTechnology Conference that he had joined the company in crisis, and he has seen no lack of surprises. It comes one day after uber reported a loss for 2017 on net revenue of 7. 5 billion. Over the last week, we have been examining a maledominated culture in the tech industry. My next guest is well aware of the problem. He has made it his mission to hire as many women as men at his latest company, course. I would like to welcome former twitter ceo dick costolo. Dick i generally try to keep it 50 men and 50 women across all areas of the company. I felt like when you fall behind, as is Common Knowledge based on all of the gender and diversity studies that come out from all the companies, twitter, interests, etc. , once you get behind on diversity on your engineering team, it comes impossible to catch up. You have a women engineers who are interviewing and they want to meet other women engineers here there are still many women engineers. Only spending time interviewing other women engineers, then they dont spend time writing production code. That is just one aspect of how hard it is when you fall behind. I just decided that the way to deal with it is to start off by not falling behind. By not giving yourself the excuse in the early days, we just have to get the right seven people here on day one and we will catch up later. You dont catch up. I decided if it was 5050 early on and always that way on the Leadership Team and entering engineering, it would be easier to stay that way. Emily why dont more ceos and founders think like you . Dick i think they just dont think about it. If youre a firsttime founder, youre trying to raise money. You wake up everyday responsible for people you have never been responsible for the review want to squeeze your head together and cry about the things you are worrying about. They dont think about it. Or they feel like it is something they cant deal with later. There is probably a general sense of well, there is only 30 people in the company right now, that will be an issue because we will deal with that later. The reality is once you fault way behind, it is almost impossible to catch up. Everything in the organization starts to work to favor the existing imbalance and to keep it going. Reason,any nefarious just because that is the way everything in the company is. For example, if you have 90 men in engineering and 10 Junior Engineer guys are hanging out with other Junior Engineer guys. They know mostly guys. That is who gets referred in. That is what i mean by once you fall behind, the imbalance starts to reinforce itself. Emily is there anything in particular that you learned at twitter where you saw things go the wrong way that could have been better if there had been more equal men and women. Dick i would frame it differently. I always felt that when i had a more Diverse Group of perspectives on a decision that needed to be made look, when you are a leader or manager 80 , of what you do is gathering input so that you can make the best decisions. If you have the broadest possible set of perspectives, that will be better than a very narrow set of respected. Emily in fact, you can move more quickly because you dont have two go run as people. Dick if you have got a Leadership Team sitting around the table that is 10 guys and your user base is 50 men and 50 women, you are going to have a serious lack of what half of your user base might be about why or how be thinking about why or how they use the base. We had a team that matches the user base at chorus. I always thought that was something you should work towards, to have more of those kinds of you know, lets less narrow socioeconomic, demographic, genderbased, etc. Perspectives. Emily i continued with dick costolo and moved on to what else . Twitter. It has been a charmed moment for twitter lately. Its first row profit in latest earnings results. He ran the social media platform from 20102015 and we got his take. Dick jack has been backfilling the ranks. Ranks of the Management Team over the past few years, since there was a lot of news about 2015. Executive departures in 2016, same time jack was doing a great job of bringing in people to fill those positions. The cfo from American Express has done well. The new cfo, everybody speaks very highly of him. Same with folks on the product team and engineering team. Anthony is worldclass, he is going to be an extraordinary ceo. I am really excited for him. Jack has done a great job of going the bench and anthony did a great job with jack bringing d to keep thee financial house in order. Emily do you think the turnaround is longterm or is it just a shortterm thing . Dick twitter is one of the most important mediums in the world. I have every believe in the world that it will continue to be an independent company and thrive. One of the many things i adore about jack is that he is very a very calm and patient and thoughtful leader, which is exactly what you want. I think he is the right person, not that they have got the company on a financial trajectory that the internal team like and can work against, he is going to continue to be the right person to lead the company. I love that the folks in the Company Really feel like they have the wind in their sails. You can see it when you go hang out with people in the company now. They feel like they have got momentum behind him now. Emily what do you make of the sale chatter and who could be a likely suitor . Dick that chatter comes and it did when i was running the company. It seems like every couple months there is a story about someone or another big interested in the company. I am confident and assured jack has them all focused on the things that they need to focus on. The beauty of that is i think the people in the company know well enough to not pay it any heed. Emily a big story, inside a hellish year. Facebooks do you think facebooks loss could be twitters gain this year . Or is this something that all of these platforms are going to have to reckon with . What will be the consequences . Dick the biggest consequence me in my minds to the statements coming out of facebook just a couple fridays ago that they were going to sort of rethink the way the newsfeed worked to be much more about social sharing and less about news, publishers, and media. If i heard mark correctly, that is a big boon to twitter. Twitter has sort of always been about that this is happening and the pulse of the planet. To the extent they can now feel like we are the place for publishers again, we are the single distribution vehicle for them to work closely with on things like realtime events and what is going on, that is a boon to contents and advertisers. Emily that was dick costolo, former twitter ceo and founder of chorus. Bloomberg operates a Global News Network on twitter called ticktock. Still ahead, we will hear from wall street heavyweight heather bellini. She covers all the bat facebook for Goldman Sachs. Her take on performance from 2018 ahead. Later this hour we will speak with a ceo about the cyberattack that has already plagued the olympics. This is bloomberg. Emily the ceo of salesforce says a movement is coming at facebook and it will not be pretty. In the new york times, it was said that unilevers recent threat to pull advertisements from the social media giant is just the start of a growing backlash against facebook. He also criticized facebooks decision to dismiss human editors in favor of algorithms saying, that is that started the downward spiral that are in today. I posed this question to our next guest, heather bellini. We talked to her about this weeks goldman tech sex meeting. I ask her just how important it was pulling the ads from facebook. I think if you are a chief marketing officer, you want to make sure that your protecting your brand. Brand safety is top of mind. It is not just for facebook, but it is also for youtube and google. It has been experiencing the same type of feedback. I think maybe some of this might be a little bit overdone. I dont think that facebook and google are trying to create an environment where this type of backlash is occurring. I do think they are making a lot of efforts and inroads, whether to trynvesting in people and make sure they are getting rid of this content before it ever gets online or investing in , a. I. To do that. These are platforms that have exploded over a short. Of time. I think they are truly focused on it. Emily how much do you think it will impact revenue . Do think it will have a Material Impact on revenue . Heather at the end of the day, you have to think about the platform, whether it is facebook, or google with youtube. These are multibillion user platforms. If you look at daily active users for facebook, 1. 4 billion. There is a billion and a half plus active users on youtube. If you are an advertiser, you going to walk away from that many eyeballs . You have heard Sheryl Sandberg say many times that we could deliver the super bowl, in terms of reach, every day. Day to u. S. Advertisers. I think this is a call to action. I think the cmos of these Big Companies want to see more done. I also think facebook and twitter are responding in kind. I dont think they can ignore these platforms. Emily what about the fact that for the first time users in the u. S. Did not grow . Heather yes, they declined. 700 or 800,000 users. The u. S. And canada are about just under 190 million users. Youre at a point where we dont really model a lot of growth, if any in daily active users given the percentage of the population they are already hitting. I dont think that should be a very big surprise. If you look at where growth and usage has been, it has been predominantly outside of the u. S. In emerging economies. It was not surprising to me. You have to continue to focus on the value that advertisers are getting from the platforms despite what they may be saying in back channels. They are getting a lot of improved targeting, better targeting then they can get on any other medium. They are we seeing return of investment on these ads continue to go up. Facebook continues to do things that improve the reach and targeting. Therefore, you are seeing ad pricing go up for the company, and it is working the way it should. Emily you mentioned youtube and they said they should get back to baby pictures. The dichotomy see there and facebook has been changing all the are grow them changes. What do you think the big headwinds are for you to . For youtube . Heather we talked to agencies a lot and i would say they are just as concerned about that on youtube as they are with facebook. I think again, in partnership with the advertisers, and from a measurements perspective, people just want to see the standards continue to move in the right direction. I think unfortunately it has been a sign of the times how this message has evolved. Notlatforms maybe did that they went off the rails, but the issues is what users have been posting, i think collectively everyone is more focused on it. You have start to see some of that change with some of the algorithmic changes on facebook. Youtube is focused on it as well. Emily that was heather bellini, analyst at Goldman Sachs. Still ahead, bill gurley joins us for an exclusive interview trial whywaymo uber wraps up. He is very optimistic about uber under new leadership, next. All episodes of Bloomberg Technology are Live Streaming. You can check us out at technology weekdays. This is bloomberg. Emily welcome back to best of Bloomberg Technology. Im emily chang. Bill gurley has been making headlines. Gurley took the witness stand during the waymo uber trial. He spoke to us for an exclusive interview days after from the Goldman SachsTechnology Conference in san francisco. We asked the Capital Partner about the state of venture capital. Take a listen. Bill this is something that has been going on gradually for a 20year period rather than something that happened yesterday. If you go back years, decades, there are famous people who are known for coming into a board room and demanding. Hyper competition has made it so that the majority of the biggest fears is missing out on the next investment. They are afraid of having a reputation of someone who asks too many questions or pushes too hard. I think it has led to a situation where there is not a lot of stewardship for discipline and results. What can be done about that . Bill i dont know, it it is a tricky problem. Did that happen at uber . Bill i did not bring it up related to that. I think it is something that when i talk to a lot of