For its ipo this week. Plus, election surprise. Argentinas primary results. But, is it spreading to a robust tech startup scene . Icahn wields influence. What he has agreed to. Our top story. The theme of big tech is hitting the public market. Wework is planning to make public its prospectus for an ipo this week. T said in april it had filed paperwork confidentially. We are joined by two guests. Ellen, as we await the prospectus, what are the key bullet points you are looking for . Llen everyone will be looking to see the Financial Performance of wework. Nprofitable. It is a company that spends a lot of money to grow very quickly. I think people are concerned that the Business Model cant tand a downturn. Taylor ellen talks about the financials behind this company. What do you make of the valuations here . Barry i think ellen is spot on, people will be looking through it to get the numbers and figure out the valuation. Last valuation is based off of softbanks investment back in january. It is hard for me to emphatically say that is a high valuation, but it feels high. I think Real Estate Investors will be very scrutinizing of any kind of highprofile and high valuation ipo. Taylor at what point do you want to start to see some profitability from this company . Barry it is understandable that if you have a company that is growing, you want to give them that time to create the market share they want to create. At the same time, there has to be a limit of how much you can run in the red for investors can see some profit. I would hope that, within the next 1218 months, i would start to see some profitability. Taylor one thing that really stood out to me, top line is about 1. 8 but bottom line, they are losing about 1. 9 billion. At what point are investors getting excited about topline growth versus being nervous about how much they are losing on the bottom line . Ellen i think that is the major divide. Ome people will look at it and say, this company has incredible growth. Commercial real estate, one of the biggest financial opportunities in the world. Others will look at their spending and say, im not sure this is sustainable. Certainly, its growth is essential to the value of the company. It is so valuable and so much different to what other companies and providers might be able to provide. Taylor who are their biggest competitors . Ellen other companies are rying to follow. Companies such as convene, industrious, they are really looking forward to an ipo. I think the biggest competitor tends to be large enterprises, inhouse. If your amazon or google, you look for places for your company to expand. Taylor we were talking a little bit about that on the commercial break. You analyze real estate companies. Is this a real estate story more than a tech story . Barry we believe it leans more towards the real estate story because their fundamental is they lease office space. There is a Large Technology component that is very nique. Regis is in that space. They dont bring quite the technology that wework brings. Most of their spaces are fairly well leased, and very positive comments. Also, one third of their tenant base is fortune 500 companies, who use it when they enter a new marketplace, especially internationally. Taylor weve been also looking at other big tech ipos, uber, lyft. How much of an impact do you think the marketplaces on this given the volatility weve seen and the fundamentals you are ighlighting. At what point is this shaky given how volatile the market is . Barry you are spot on. This is not the market that uber ame public in. Given the performance of uber, not living up to expectations, investors will be really scrutinizing big, highprofile ipos and their valuation. Taylor when we talk about some of the Business Models here, in terms of runway for growth, is this a u. S. Story . Ellen they have been expanding overseas, especially in sia. I think they will be putting forth a Strong International growth story. Looking at the founder or ceo letter, try to get a better sense from management how they want to spin their story for investor. Look how much Growth Opportunity we have. This is something you want to be a part of. Taylor thank you. Barry oxford and ellen huet, thank you for joining me. Coming up, a rally for roku. Rise as much as 6 . 150 price target. F you like bloomberg news, check us out on the radio, the bloomberg app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Taylor rokus price target raised to 150. They touted the companys position within the streaming video market. Shares rose as much as 9 , extending an advance to a fourth straight day. We are joined by mark mahaney from san francisco. Thank you for joining me. I think my first consensus, reading all the analyst notes, everyone seems pretty bullish on the stock. Where do you stand . Mark this was a strong buy for us earlier this year. We downgraded it. Given that the stock has moved up an additional 30 since the downgrade, it was premature or wrong. It is a major beneficiary of the upcoming streaming wars. It is a partner with disney for the upcoming disney plus service. Fragmentation of viewing away from netflix, anything that does that is a win for roku. There is also a play to expand into other markets. The winds are definitely within this companys sails. We are not buyers here because of valuation. Taylor you are always invited back. We wont call you wrong, we will just call you early. Talk about the valuation. There have been concerns, eight 30 run alone in the last eight days. What is the concern aside from valuations on the fundamental level of this company . Mark we think most of that move has been very well warranted. I dont know if 13 times is rational and 12 times is perfect. The fundamentals are about the est you can buy. 80 yearoveryear growth for the platform revenue with about 70 gross margins. That is very rare air. This company is a little bit on the smaller side, so that helps. On the device side, there is competition from amazon and google. There are a lot of these internet advertising behemoths. The june quarter has been a phenomenal quarter. Every platform including roku showed accelerating and revenue growth. There is something going on. I have theories as to what it is. At some point, the business will run into the fact that it is competing for ad dollars with the google and facebooks of the world. Taylor in my terminal, i have a really interesting chart showing roku versus netflix. You talked about some of the competitors. Apple, amazon. Some of these things could become competitors year to date. Does roku have any competitors . If you are an unowned content provider, there is nowhere to go except release it on roku. Mark there certainly are some competitors but they are clearly in the captains seat. The ad supported streaming platform, they are kind of a switzerland in that world. Now they are the leading tv treaming form. They have surpassed samsung in terms of not their brand, but the number of dvds that have their streaming operating system embedded in there. They have really well positioned themselves over the years. So, hats off to roku. Taylor you also cover netflix. 12 months from now, you will have a lot of competitors. What is the cost to netflix spending on new content, keeping up with slowing subscriber rowth . Mark i think you just mentioned it, all of these new launches. November 12, we have disney plus. Apple streaming services, at t, comcast. As far as i can tell, pringles is going to launch a streaming service. The concern nearterm is that the launch of all these services ill steal away growth. One of the reasons netflix missed its numbers is because of a price increase. That is all the debate around netflix. The fang stocks. I would argue netflix is the most contrarian long ball here, which is one of the reasons we like it i think, in the back half of the year, the content coming out of netflix is so strong and my guess is that will translate and i think the shares will be materially higher at the end of the year than they are now. Taylor one thing you mentioned was pricing power. I can join hulu for 5. 99. When are we going to see these Services Pricing for five dollars . A month or so . Mark i dont think we will. This is a very expensive business. You are competing against netflix, which is spending well north of 10 billion a year, they are still not cash flow ositive. It tells you that this is a business where scale matters, so whoever has the most subscribers can advertise commerce cost. If netflix cant make this work, nobody else can. I think that five dollar offer will be few and far between. Think it is a scale game. Whether there are slowdowns, that may be the case. After that, i dont think you will have 10 streaming companies that went or five streaming companies that win. My bet is you will have three. It will come back and seller content to amazon, maybe disney, and netflix. Taylor bold calls. Thank you so much. Coming up, with more of your personal data online, Identity Theft is on the rise. What needs to change. And Bloomberg Technology is livestreaming on twitter. Check us out technology. This is bloomberg. Taylor six long years it took him to get his good name and Credit Rating back after Identity Theft. He navigated the ordeal and his essay is in the new edition of bloomberg businessweek. Walk me through what happened. Drew this is an ordeal i went through in 2013 when i got a call from a Police Department in florida, asking me if i had ever lived in florida. I was living i believe in brooklyn at the time. What happened, a person used a fake id with my name and information on it, they had gone bank to bank in florida opening up accounts. They then sold an rv in texas and wired the money to russia. What i didnt realize was that this was going to have ripples throughout my life for years to come. It would destroy my Credit Rating entirely, make it impossible to get a new loan, credit card. It put me on a list with the National Security apparatus. It took me years of dealing with Financial Institutions to try and get this cleaned up. It is very frustrating. It should be very scary for anybody who is at risk for this. Taylor you are a healthcare reporter but you are now wellversed in cybersecurity and credit card companies, Fact Checking companies. Why arent we seeing more Companies Double authenticating like on gmail . Why arent we seeing more of that . Drew i want you to think about how easy it is to sign up for a credit card. E make it really easy to get credit. We basically require you to have a name, date of birth, Social Security number, then you are ready to go. It is harder for me to sign up for my gmail or log back on to twitter. We do not have a great system to verify that the financial ransaction actually do represent us in terms of transitioning those things. Taylor when you talk about the equifax heck, what was your experience about not only that but then in your case with some of the online credit monitoring companies. How responsive where they . Drew about as responsive as you would inspect them to be, which is not at all. What is the purpose of a credit atings agency . It is to say, we want to make sure you are a potential loan holder in good faith. We also want to make sure, if you havent paid your debt, that thers know that. They are there to help out lenders. That also means that, when you have your identity stolen and it wasnt your fault, they make it really hard to go about undoing that. We look at the equifax hack, 147 Million People in this country, almost everybody with a credit profile. We probably dont have enough criminals to keep up with the fast supply of raw material . He took a plea deal right before i was supposed to go to miami and testify. I mostly got my life back. Aylor what a nightmare. That was bloombergs drew armstrong, fascinating story. Coming, the tensions in hong kong are reaching a new level. Protesters have shut down the airport. The latest, next. Fascinating photos from the airport and all of these protests in the last 72 hours reaching new levels of stress. This is bloomberg. Taylor this is Bloomberg Technology, im taylor. Hong kong airport authorities canceled flights after protestors swarmed the main terminal building. This is the biggest disruption in the citys economy since demonstration began in early june. We have the report from the airport. The airport is slowly getting back to normal here. We have seen protestors have called it a night. They have left some of the signage all over the airport walls but something we have never seen before. Up to 4,000 demonstrators packed the arrival and departure halls with numerous flights being canceled. We are seeing flights coming back online and set to take off on Tuesday Morning and it could be hectic and flights to hong kong could be canceled on tuesday. But what is interesting in this latest development, the lack of police presence. To e were no officers disperse these crowds. Police are taking a cautious response after a violent weekend. Both sides hardening their stance in this recent escalation ere and beijing ramping up the rhetoric saying these crimes are being committed by protestors and seeing signs of terrorism. And she meets with the reporters on Tuesday Morning. Taylor for more, i bring in inac fish, senior fellow and san francisco, tom, issac, let me start with you, fascinating photos, what changed for you in terms of investments and Tech Companies after the heightened tensions . People in hong kong are really upset with the way the hong kong and beijing government has been responding. This is not a shortterm story. This is not something where investors can wake up and everything in hong kong is back to normal and oasis. This is a longterm story and if the protestors do disband and the streets are not as chaotic, it is going to be alibe. Taylor you heard how tom said this is going to be a longterm story and overseas here and back to your reporting in san francisco, what are local Tech Companies starting to brace for . They are looking at this as a point the out, this is longterm. The signs pointed irblely to this being in regards to a specific piece of legislation that has been shelfed. But clearly this goes much, much deeper and now at the airport and washing up on the rest of the worlds shores. This is not something that is legislated right there in hong kong. This is affecting flights in and out of hong kong and the protestors are looking to disrupt their role as a Global Center and gateway toll china and they are sending a signal and digging in as is the chinese authorities. The pictures that we are seeing, the video images of what appears to be amassing of Chinese Military just over the border, those havent been verified but there are lots of images in video clips making their way ound twitter that china is sending a message and they are not going to walk away and let the protests continue. Taylor if you are a local startup, do you start to pull your money out . You start to play out what the political risks and what different scenarios could be moving forward. Really since the mass acker in 1979, the feeling that china and hong kong are safe harbor for investments, at least that is the public view. And what other tensions we are seeing in Mainland China and are roughly one muslim one million muslims in concentration camps. It is possible that some of the unrest we have seen in the middle east over the has several decades could be the new normal. Taylor tom, we are mindful of the protests in hong kong and aware there is a broader global trade economic story under way as well between china and the u. S. As we turn to asian look at the global trade story, there is a september 1 deadline that the president has tweeted about with additional tariffs. Within tech, what doe those additional tariffs has you concerned the most . I mean it is already showing up across the tech sector and big shock waves, most recently in the companies doing business with huawei. They are being told you cant source your components to huawei. O it effects the chip makers and Big Questions what tariffs ll be slapped on apple devices. Fox c omp m is the manufacturer of a lot of apple products on and inland and apple can has shifted its production outside of Mainland China. The Tech Industry is very skend about how much further this trade war is going to go, how much its going to affect demand and see chinese subcity tute their own substitute their own products instead of the apple devices and you starting to see all kinds of changes in terms of do venture capitalists want to go to china. You have seen a dropoff in recent months. The Ripple Effect is going to deepen. Taylor you heard tom mentioned smartphones, where does huawei stand . In the medium to longterm, this could be good for huawei and provide an incentive for them to act in away that is smarter for their business. But more importantly, it could provide them with added support demeckically if chinese consumers and the depoft decide to make huawei for china and chinas Global Status and see positive numbers in terms of purchasers and contacts. Taylor a story that isnt going any way soon. Coming up, voters in argentina are protesting and a big blow. What it means for the startup, thats next. And so far, well see what is on tap for those, next. This is bloomberg. Taylor argentina saw shocking primary election defeat. Whileso sunk a record low the bonds and stocks plunged globally following this surprised result. The tech startup scene has managed to flourish. But what the prognosis is now for the d. C. Startup space given their staggering inflation. Have the cofounder of s. T. Labs with the firm of a global and operations in argentina. Great to have you. So much of your investments have been centered in and around argentina. What changed for you today . What changes for their Technology Companies down on th