Announce its second vision fun after its wildly popular first fun. First, our top story, uber out with secondquarter results including a 5. 2 billion loss. Level down to the lowest since may. Here to crunch the numbers and breakdown uber eats an active is Mandeep Singh payment fairly disappointing, what is your biggest take away . I think it was just a revenue miss, and part of that was related to the user subsidies in their ridesharing business, i think they have been using subsidies for a while. They have been seeing pricing pressure because uber eats is a very fragmented market. On the core ridesharing side, i think theyre doing fine. The large numbers large Growth Numbers are catching up. I should add that the adjusted loss was lower than 650 6 million versus 979 Million Dollars that analysts had estimated. Monthly users are below estimate, 99 million, the street was looking more like looking for 101 million. What do you make of that . Mandeep the fact is, uber is a global company. They may choose to focus on more regions rather than others. Subsidiesy the user that cause the big revenue miss. That is a sign that uber is more focused on market share gain. Lyft is not going to expand geographically. Emily uber has lost against that they may today going into this. Do you see a path to profitability . Mandeep i think if you look at their core business, they give better disclosures then lift then lyft. There was a sequential improvement. What it tells me is, if they wanted to make these businesses profitable, like the ridesharing business, they can do it. Right now they are focused more on market share in terms of adding new services and using subsidies to gain market share, thats the big one. I think thats going to help them in the long run. Emily we are listening to the cooper Conference Call happening right now. Mandeep singh, thanks so much for that analysis. We want to bring in tom white, with a neutral rating on uber and a buy on lyft. The same question to each of you, do you see a path to profitability . Tom we see multiple ways that management can move toward profitability. We see nearterm drivers in the form of reducing driver and rider promotions and incentives. We also think they are things helping do in terms of move the company toward profitability in the near to midterm. Longerterm, we see additional upside in the move toward autonomy as being a key component in moving companies more toward profitability. Emily except that autonomy is just so far out. To say thatrted losses would decline next year. Cooper indicated the price wars between them would subside. Why do you have different ratings on uber and lyft . All, thanks for having me. Our neutral view on uber really just comes down to limited visibility. Its a Company Fighting a lot of battles on a lot of fronts. On one hand they have the big Balance Sheet and the scale to probably outlast a lot of players it is competing with. On the negative side, it is reacting and responding to a lot of the original promotional activity from some of the ridesharing players and some of the food delivery players. It creates a situation where it is harder to get comfortable with forecasting the financials. We think it is probably challenging for the Management Team themselves, to give investors of clear and specific 12 month view of where the financials are going to be. Visibility and the share gains in the north american ridesharing market are kind of over the edge. About foods talk delivery, because on the call, theyve been focusing on the competition not just in ridehailing but in food delivery, seeming to indicate that is the super competitive part of the business now. Obviously uber eats has competitors not just in the United States but different competitors globally. What is your outlook for uber eats and how can they boost or not boost the business Going Forward . Asad i think this quarters results really speak to just how competitive the food delivery landscape is, not just a mastic leak, but internationally. Uber eats is competing with a whole host of competitors that are really wellfunded, Companies Like door and others that have received large amounts of funding from deeppocketed investors like softbank that are not afraid to go after the market in a big way. That is to the detriment of profitability in the near to midterm and that is hurting Companies Like uber which is facing so much pressure from investors to show a Clear Pathway to profitability. Arehe near term, we encouraged by some positive signs we see. If you look at the take rate, which is the commission that cooper takes on growth transactions within food delivery, we have seen that trend upwards over the past three quarter sequentially. That is something we are encouraged by. We are incrementally more positive based on signs of consolidation in the space with their rival, door , door caviar. Uiring emily when we talk about profitability, a lot of investors will point to autonomy and the future of self driving cars which uber and lyft are investing in. But isnt that just so far off that it is difficult to include it in any sort of near or midterm model . I tend to agree with you. We think in five years, Autonomous Vehicles and rideshare are still very much on the margin. And specific group geographies with clear weather, not a lot of fog, so very much in the margin. The reality is that until the Technology Advances to a point where it can be more broadly and widely deployed, over will need a lot more human drivers, not less. That continues to be one of the big challenges for both of the platforms, how did they demonstrate a path to profitability by making sure theydrivers making sure dont raise prices so much for consumers that it eats into the number of use services that people use them for. Drama,never short of yft. Versus l we will keep listening to the uber call and bring you headlines as we have them. The u. S. Is holding off on granting lines licenses to businesses to supply technology. O huawei remember the u. S. Has blacklisted huawei an prohibited u. S. Companies from sending Critical Technology including software and chips. The u. S. Was considering granting licenses to certain u. S. Businesses to restart sales to huawei, but now we hear that the u. S. Is holding off on granting licenses after china halted buying u. S. Agricultural products. A lot has happened in between. The u. S. Labeled china a currency manipulator and of course the trade war between the two countries only escalating. This is one more ratchet up. We will continue to follow that story and bring you any updates as we have them. Coming up, facebooks ad network is creating major headaches for advertisers. Is the social network at risk of losing those at dollars those add dollars ad dollar . Xm. K us out on sirius this is bloomberg. Emily scrutinizing ghouls digital ad and Search Operations as authorities gear up a brought antitrust review of the market power of giant internet companies. Joining us to discuss is kirk wagoner. Lets start with the doj story that just crossed. Assume google was at the top of the list. What we reported today is looking beyond the usual suspects of characters and rivals in yelp, oracle, they have been complaining about google for years. The department of justice is talking to other publishers and Tech Industries that have complained more quietly about googles display advertising business. That googlee claims has been behaving unacceptably. Looking into the broader ad industry, facebook is number two to google. The adlets talk about averages that sound pretty awful. It doesnt sound like theyre good for facebooks bottom line. The whole point i was told to set the reason you do these campaigns is because you want to do them accurately. If a certain image or video youre pushing is not actually resonating, you want to be up to take that down right away and replace it with Something Else or put money behind a different at that is working. When the system is down, you cant do any of that. Not only can you not start the new campaign, but you cannot adjust existing campaigns. That can lead to people spending money on campaigns that are not actually working. Leading up to thanksgiving was kind of the Biggest Issue i heard. Black friday last year, you may recall there was a big outage that freaked everybody out because like friday is one of the biggest retail days of the year, to not being able to prepare your ad campaigns, it was a huge issue. Every year since then you have seen these with more regularity. It can be a long process. Ly facebook statement they go on to say they are committed to Getting Better. Put it in context for us. Obviously facebook and google are the biggest players, what does it mean that now you got the Justice Department investigating the way google runs the system. Do you think that will impact googles market share or give facebook an advantage or not . They investigated google years ago and dropped the case. The eu has a different approach to antitrust. It has turned on the idea that behavior affects the market. Historically in the u. S. , google and facebook will say show us the consumer harm. A lot of people are talking about if the doj starts to change the definition there, that could be something that has a big effect on these companies. We are still waiting for the repercussions of the eu. If the doj can do that with google and facebook, then they might be able to change the market. Is whatsther issue flaws. Whatsapp it sounds a little scarier than it is. I think of it more as a product flaw than a security flaw. You know how when you reply to an email, you can go down and maybe edit what the email you are replying to looks like. Its kind of that situation with whatsapp. You can change what the message looks like in your reply. It creates some concern for sure. Its not the kind of product you want to have out there, but its a little different than hacking in and changing the message. Emily perhaps explains facebooks response. Its the encrypted messaging service that facebook likes to tout. For them it is important for people to know that they dont see this as a security issue, but again, this could be a big issue for things like fake news. If i am doctoring what a message looks like, that could be misleading to people. In some parts of the world, that has caused some really serious consequences. Emily it will be just a couple more minutes before we have more google and facebook news. Coming up, silicon valleys hasst unicorn scale ai secured 100 million in new funding. How the company is using the investment to teach computers to see even better, next. This is bloomberg. Emily netflix has signed the game of thrones creator to a multiyear theater and film deal work 200 million, according to reports. As part of the deal, they will no longer be producing shows for hbo and will work on projects exclusively for netflix. They were also reportedly in talks with disney and amazon. Artificial Intelligence Companies are spending millions a year hiring people to teach two machines. Could costly process that take anywhere from 10 minutes to a couple of hours. The startup scale ai wants to speed up the process. They take the first look at photos before passing them on to humans for review. It already has several customers. The Company Software takes the st look at photos before this we it closed another 100 mood dollars in funding for the company, valuing the company on more than 100 million. Thank you so much for joining us. It gives the data they need to build the algorithms in a reliable way and then they use the data to build their software. Emily what kind of algorithms are they building using your software . One of the big problems and Machine Learning is perception, being able to fully understand the environment around you using Machine Learning. For other companies, we process ort data or tabular data niche data. Emily is the work you doing going to improve the safety of self driving cars . It has to be perfect. Even further than that, the work we do is critical to building safe Autonomous Vehicles, because without the data we are able to provide to these companies, they would not be able to build algorithms that could perform in any manner that is safe and reliable. Future, how much of that work can ai really take on . It seems that there will always need to be some sort of marriage humans and technology. You cannot eliminate humans altogether. I definitely agree with that. Ai is about augmenting humans with technology and making them more effective and efficient using technology. In particular, for a lot of the problems that we work on where ai plays a critical role, you really want to make sure that humans are part of the process to ensure that the systems are performing safely and reliably. Emily so there are other companies try to do what you do. Amazon has its own labeling services. What differentiates you from the competition and how does the market evolve . One view we have taken is how do we solve it in the most tech enabled way possible . How do we use Machine Learning on our side to make it as efficient and high quality as possible . Many of the other efforts are much more human powered than technology powered. Emily do you have any idea which company will get a selfdriving car to the mainstream market the fastest . I cannot really comment on that. I think it is very exciting that all these companies have Incredible Technology and it is Getting Better and better every single year. We are really getting closer and closer. You are 22ve to ask, years old, you have been doing this for how long . Three years. Emily how did you get here at 22 years . I was lucky to be able to come out here in the valley and mark as a software engineer. That exposed me to a lot of these problems where ai and Machine Learning are really core. I went back to school for a year and after that year i dropped out and started this company. Emily should everyone drop out . Is it something you recommend . I think if you know what you want to do, more and more these days, you dont need it degree to be able to accomplish what you want to do. People care a lot more about what you should accomplish than what are your skills. Emily thank you so much. Coming up, the top story of the moment. Cooper shares taking after hours after big earnings miss. We will have more on that, next. This is bloomberg. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Emily this is bloomberg technology. Uber out with secondquarter results, and they are not too pretty. Afterhours hsharess still in the red following the companys sales ms. And a . 2 million loss. Areceo is dressed how they handling their competition. The competitive environment and our position in the ridesharing space continues to be stable to improve. We will take some of that improvement to continue to lean into our its business where we see plenty of competition and significant investment but incredible potential. Emily i want to bring in someone who has comments on the strategies of both uber and lyft. We sort of expected a big loss due to stockbased compensation tied to the ipo, other ipo expenses. What did you see in these numbers that you did not expect gekko first of all, i had expected them to at least beat the revenue estimates. Kind of looking at what they did kind of in the last quarter and trying to kind of extrapolate out, say ok, if they could at the earnings, the revenue estimate for jim, at least continue that upward trend with respect to the revenues, but they did not. If you look at last quarter, 3. 1ue came in at about million. This quarter, it is about 2. 87 million. Last quarter, there was, you know, a big percentage increase compared to the last quarter of. He year before there is still an increase this quarter compared to the quarter of the year before, but when you look at the two quarters side, there is a little bit of a dive. You . What does that tell this raises the question of how they are going to finish out the year with respect to revenue, which is their topline andormance metric, both for both for lyft and uber. In the case of uber, they have adjusted net revenue, growth bookings, and number of riders as key metrics. The question is what will revenue look like for the next couple of quarters. Arey both lyft and uber sort of signaling that they price wars, irrational environment, incentives for riders are going to decrease. Do you believe that . If you look at ubers adjusted revenue number, when they started off their driver incentives, comparing the amount of driver incentives compared to the revenue, it is actually stable compared to the last two quarters. It is rounding out at 10 to 11 , so actually, this quarter is slightly lower. 10. 2 compared to 10. 9 percent last quarter. There is revenue growth, but it does not seem to be necessarily driven by providing access driver incentives. Emily what about eats . Their driver incentive last quarter actually tripled, which is interesting. The key thing to watch there is overall, driver incentives seems stable, but if you look at the businesses within their core where exactly is the increase in driver incentives coming from . Right now, it seems like it might be stable across the board, but when you dig into the mights, for uber eats, it actually be increasing to generate more revenue on that end. Emily associate professor at the university of illinois. We continue to follow more uber headlines as they come, and we will be looking to see how shares opened tomorrow. Thank you very much. Speaking of uber, before going they Company Raised millions. Softbank profit from the big in thend jumped quarter. Now softbank is at it again with a