Posted thirdquarter earnings that missed estimates. We also have details ahead. Hack away. The u. S. Government says russia, china, and iran will seek to meddle in u. S. Elections going forward. How vulnerable are we . We get opinions from ethical hackers in our electioneering series. First to the top story, all about uber. Shares hitting a record low. Actions restrictions lifted. Years largest u. S. Ipo are now down nearly 40 since its may debuted. For more, walter joins us with in new york. With me and san francisco, Lizette Chapman who covers the company for Bloomberg Technology. Breakdown. What did we learn today . Reporter exactly what we expected. There was 1. 7 billion shares outstanding. A large swath of them have traded hands. Most widely traded stock today. Just sick ofle are waiting around for it to get better. We saw the stocks fall. There are some questions around when this could continue, considering a number of early investors are not underwater and could see potential upside. Taylor walter, the volatility today, is this a day issue, weeks issue or a months issue . You talk about one billion shares coming off of lockup. Some of those shares are probably not going to trade. I dont think softbank, who owns about 2 million or so of the shares, will trade any time soon. They are pretty bullish on rideshare and have a number of investments. But the founders of the country company, we will see what they are doing. Theres a host of other investors. It could take more than a couple days to digest through this. Taylor i want to take a look at a chart for the bloomberg audiences inside the terminal. It is the bearish sentiment around this stock. Every call, showing more bearish sentiment into the spirit put that into perspective for us. We knew that day was going to come. Do we expect more Downside Risk ahead . What are investors saying . Reporter investors are taking their cue from the results of uber who reported monday. At that time, it was mixed, noisy. The upshot where a couple of things. One of them was that growth was the slowest at 29 of quarter than its ever been reported since the Company Began sharing that number. Thing. Not a good this is a company that has always sold investors on its towth potential as it went 60 plus countries and entered things outside of the core ridehailing into grocery delivery, autonomous driving, helicopters, gig worker matching, etc. Thats one thing. Whether it will continue or not, anyones guess. A lot of people focused on the fact that it projected to even be profitable by q4 2021. That is a projection that has never been shared before. It was supposedly to reassure investors, but it doesnt seem like it worked. Taylor walter, does the bearish sentiment lineup with the fundamentals we got from the company this week . Part of it, the selloff in these types of stocks, is not happening in the last couple days or weeks. It has been going on for months now. Whether it is growth or momentum, this has been a disfavor. There is no positive catalyst on the horizon for the company. The incremental competition they are feeling which resulted in a deceleration of growth, which is an incremental negative, that doesnt seem like it would stop anytime soon. I feel like the catalyst of saying we will reach profitability in 2021 was probably wasted ahead of one billion shares coming off of lockup. It is still questionable whether they can actually hit that target. In the meantime, you have a competitive eats business, you dont have autonomy coming as a potential catalyst anytime soon. Its just hard for investors to own these when you are relying on things like revenue multiples to base your valuation. Taylor i have a little bit of a bone to pick. When we talk about adjusted, meaning the company is profitable, and to be clear we are not talking about net income or bottomline profitability, adjustedk with positive by 2021 or would you see it translate into net income . Im fine with it. Im sure most investors will be fine with it. I know it makes for better headlines to focus on a net income number, but the reality is it is closely associated with the cash in the company. Can get to that positive , you will find a Broader Group of investors willing to invest in this name and put multiples on it rather than relying on a multiple revenue or bookings. Taylor Lizette Chapman, thank you for joining. Walter piecyk will be sticking with us. I want to go to roku. Shares are plunging as much as 17 after the Video Streaming Company posted thirdquarter earnings that missed analyst estimates. We will explore demand with increased streaming competition from disney and apple. We will be looking at that throughout the hour. Also on the earnings front, i want to take a look at qualcomm. Shares rose after hours on wednesday. Chipmakerter the reported fourthquarter adjusted earningspershare that did beat estimates. It also says fiscal First Quarter revenue will be 4. 4 billion to 5. 2 billion. Qualcomm also projected Strong Revenue with 5g technology which debuts later this year with samsung headsets. Theres also wall street optimism for relationships with apple on future versions of the iphone and 5g. The latest from asia, coming up. For softbankn loss from investments in uber and we work. That conversation is next. This is bloomberg. Taylor californias attorney general has filed a lawsuit against facebook in a san court. Co state the claims as facebook failed to comply with the state attorney generals demands for information about the companys Business Practices around user data. Xlifornia ag dave year avier becerra said they were left with no choice. Softbank reports and a normative loss. Investments and wework and uber lead to a 6. 5 billion operating loss. Masayoshi son on makes it clear he will not back off the strategy, even saying he can make wework profitable. With us is Walter Piecyk. Give me your opinion here. A oneoff. , bound to happen, or something a little more serious . Based on his math, he is still up on the vision fund. They have booked up to this point over 15 billion of unrealized gains. This is a big setback that the right down in the vision fund and aggregate was 9 billion. It was more than just what was happening at wework. There were a couple of other billion that occurred. Overall, he is still up on the vision fund. Says we will have 15 massive winners, 15 awful losers like wework and the rest of them are doing soso. His investment style is more about having massive winners putting in 20 million and its worth however many billion now, in order to drive returns. While they talk about more conservative investments, what he really wants to do is find really big winners to find returns. The bigger issue for the company , which is kind of a sideshow, they have a big deal out there right now getting challenged by state ags. Tmobile is trying to bribe ash by sprint. Tmobile is cash burning. They have to go to court. If they lose that, they are kind of stuck with sprint. If that deal can get approved, if tmobile can buy sprint and get that off of his back, it removes the debt from the sheet. Hes got a great asset in tmobile that he can borrow against and invest in the vision fund. I think it gets softbank back on track. A lot of what softbank investors should be looking at right now is how the sprint court case is going to go with state ags. That can be a catalyst for the stock. So, secondhtfully sentence of your note hot off the press says the sprinttmobile deal is the biggest catalyst for the stock this year. Is that what you need to see to sort of, not save the company, but at least get the stock to move to the next leg higher . Softbank has a lot of things going for it in terms of investment. Other things can help. Two thirds of the investments in the portfolio, they were the last guy that invested in it. If there were an ipo or another round of investing in the private markets, you can get thirdparty validation for investments. I think it would also help softbank. Maybe if uber, like we talked about in the last segment, if they can stabilize the eats business, that would provide more credibility. Any invalidation of investments, any validation of the evaluations set on investments, or a favorable turnout in terms of tmobile being able to buy sprint, either of those things i think would be a positive catalyst for a stock that is really still trading at probably a discount. Trading at al discount. Lets not forget alibaba is still a massive investment that softbank has and supports the overall valuation of the company. Taylor your general thoughts on softbank and the vision Fund Decision to put more money at wework some people have atled it putting more money other bad money. Your take . Was insistent today that it was not a bailout to save a bad investment, but it certainly that. Like you valued a company at 47 billion and put new money in at less than 8 billion. To me, that sounds like a company that was pretty desperate. I dont think its a good sign in terms of the investment. Theas softbank making investment as opposed to the vision fund. That tells you the vision fund partners, which they are hoping to sign up to the second vision fund, were not willing to come in as the investor to effectively bailout wework. They were effectively willing to let the investment kind of go. This money came from softbank. The question is lets say sprint faces the same issue. Lets say the tmobilesprint deal fails. Is softbank going to come into sprint and have to write another 10 billion check . Is sprint accompany burning money that needs to invest in network . Should we expect more . Thats a slippery slope for a company you dont want putting more money into bad companies. You want them to put that into new Growth Companies that can be among the 10 or 15 names he thinks can be huge winners five or 15 years from now. Taylor and you expect them to do that with sprint . I dont think they will. In this case, it is different than wework. Sprint is an ongoing cash burn issue. I think they will look for other buyers. Maybe they will start to break up assets. This is part of the reason the government should probably approve this deal in the first place. Yes, softbank had the money to invest in sprint, but they didnt. If the deal doesnt get approved, you will be left with the company that its own parent is unlikely to continue investing in growth. They will regionalized businesses. They will look to sell spectrum, which will potentially impact service. It wont be good for the american consumer. I just dont think softbank will be in a position to put more money into that company if the deal fails. Taylor Walter Piecyk of lightshed partners, you will have to come back for more. Thank you for joining us. Founder and ceo says inexpects chipmakers to rise 2019. Speaking on a panel of bloomberg, Stephen Engle led the coffee with chen event when talking about the blacklisting on the company and wanting to meet u. S. President trump. I dont have his mobile phone number. Maybe you can be the medium. [laughter] reporter would you meet him and talk to him . Would, certainly. Reporter donald trump, if you are looking at bloomberg. [laughter] and heas private jets can come to china anytime. I do not have private jets. My airplane is only made of paper. Coming up, the ripple ceo says only one percent of todays cryptocurrencies will survive and they will be game changing. That is next. If you like bloomberg news, check us out on the radio. Listen on the bloomberg cap, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Taylor lets take a look at top tech calls. Microsoft should be able to maintain doubledigit Revenue Growth for the foreseeable future. He says microsoft innovations should sustain strong business momentum in the face of any macro concerns. He maintains the buy rating with 160 price market. Groupon, reporting weaker than expected thirdquarter results. The j. P. Morgan analyst said it will be very difficult to offset the significant external issue challenging the core business, highlighting international macroeconomic pressures. The street is weighing in on xeroxs bid for hp. Wells fargo says hp might be worth 25 this year in the xerox deal. The potential purchase would make sense given the potential synergies. For hpand stock option would likely be heavier on cash. Those were a look at your top tech calls. While Facebooks Libra is under scrutiny, the ceo of Blockchain Company ripple is confident in his outlook on cryptocurrencies. Ripple offers payments and Settlement Services through its token. X rp is currently the worlds thirdbiggest digital acts asset after bitcoin. He spoke with Haslinda Amin and rishaad salamat. Im incredibly pleased to see how much traction people are seeing with, lets solve a real problem with Digital Assets. Historically, there has been a lot of hype in the crypto ecosystem, a lot of experiments. We are able to look at what we are doing with xrp and help banks take advantage of what is possible. So many cryptocurrencies out there. You are one of the up front runners. Are there too many of you guys . Actually, i agree with you. There are two money. Theres around 3000 different Digital Assets to trade on a daily basis now. Any time theres a new market, a lot of people run into the new market to show they can solve a problem, deliver a customer need. Ive said publicly that i think 99 of all crypto probably goes to zero, but i think theres 1 focused on solving a real problem for Real Customers and able to do that at scale. Game changingo be and continue to grow significantly in the days ahead. Probably one of the reasons why there is so much instability in terms of price, but you want to be a unit of transfer. The problem is if you transfer money to somebody else, that may be worth much less by the time they want to actually cash it in, if they do cash it in. How do you actually produce some stability in all of this . It turns out this is a false narrative. When you enable a swift transaction, the volatility is a calculation of time and volatility, so a swift transaction can take two to three days whereas the x rp transaction takes a few seconds. The volatility in a swift transaction is much higher than enabling the xrp transaction because of the time. We actually did a post on the ripple website explaining the math. Investors are pretty concerned about the selloff in ripple, saying its bigger than expected. Is there reason to be worried about it . Ripple is a private company and we have shareholders, you cant trade ripple shares, so to speak. Xrp, we Pay Attention over the long haul. I tell employees i dont think about it for three days, three weeks, or three months. Doing what you can do to make transactions more efficient will be a journey we will be on for a decade or two. It is a marathon and we are on mile two. I dont think of xrp in the short term. If we can enable xrp to be the most efficient, measured by speed and cost of transaction haslinda nothing to be worried about when you take a look at the selloff . I think there will be volatility in crypto broadly. The home market moves together. There are times when xrp outperformed bitcoin and times it underperformed bitcoin. But i think its a longterm journey and im optimistic on where we see the whole market. Theres a lot of bullish trends on the whole ecosystem. Course, the big players want to get in on the action. Im talking about libra. Tell me about your concerns and the things that libra represents which are good. I think whats good is a number of people in the crypto space, and what ripple has embraced, is how do we reduce friction . How do we reduce cost . How do we bring people who are under banked into the system . Facebook kind of goes directly to consumer, and that is one approach. The challenge is that all financial systems, all financial tools are built on trust. With facebook as the lead horse around libra, it is fair to say, facebook has had a trust deficit based on a lot of things happening and what they have done. I think it will be hard for libra using that foundation of trust from facebook to get a lot of momentum. As you know well, theres a lot of regulatory scrutiny and questions that are still not yet answered. I think the good thing is Mark Zuckerberg has said they will not go live until those are clarified. Haslinda jamie dimon says its nice but we have to wait until it happens. Is it too soon to write it off . We have seen a lot of momentum shift. It came out in june and theres a lot of enthusiasm from the likes of mastercard and paypal, others stepping away. Although some of it is from regulatory uncertainty. Facebook took a pretty aggressive, arguably naive view to run into this, despite a lot of concerns. Taylor that was the ripple ceo brad garlinghouse. Up, impossible foods cooking up impossible pork for china. We look at a taste for plantbased meat craze in shanghai. That is next. This is bloomberg. Taylor this is Bloomberg Technology global link where we are joined by bloomberg daybreak australia to bring you the latest in global tech news. Lets take a look at the top global tech stories of the day. Thank you. A key u. S. Lawmakers the latest to sound the alarm over tictoc tiktok as a National Security threat. Called out apple for storing icloud data locally for users in mainland china. S alipaypayment giant and wechat pay are planning to let card users use the service for price. , owned by alibaba and tencent, account for 94 of the countrys mobile payment market. Billionaire founder says there are not any u. S. Buyers for its 5g technology yet. The u. S. Government accuses beijing andding spying and is seeking to ban huawei from its 5g network. Those are the top global tech stories we are watching. Internationalna import expo is now in its second year. The event is designed to showcase the countrys desire to shift its economy towards buying more foreign goods. 53 countries are participating this year. Our very own selina wang has been covering for us. She joins us from saying hi. Great to have you. It is interesting, from president xis opening remarks, he pretty much directly criticized the exclusion of Chinese Tech Companies by foreign players like the u. S. Selina thats right. You heard him one about intellec