Australia, allies that have helped maintain regional stability since world war ii. A in its latest apps to tighten Monetary Policy. The pboc raised the cost of 7, 14, and 28 day reverse repos by 10 basis point each, hoping to curb leverage and support the exchange rate. Global news power 24 hours a day, powered by more than 26 journalists 2600 journalists and analysts, you are watching bloomberg. The regional benchmark index now headed for a week. We are seeing the hunt saying continue to lose they hang seng continue to lose ground, down half a percent. Hyde. Ne im caroline this is Bloomberg Technology. Coming up, snap filing for an ipo with an initial size of 3 billion. Plus, amazons shares drop. The life the giants lackluster Holiday Season. And the uber ceo slams on the brakes, calling it quits on the trump Advisory Council. First you are lead, snap has followed filed its longawaited ipo with a size of 3 billion. That is according to people familiar with the matter. The Parent Company of snapchat is the First Social Media Company to do so since twitter. The first opportunity for outsiders to get a closer look into the company known for a culture of secrecy. Joining us is alex barinka. Sarah frier, who covers all things facebook and snapchat as well. Groupyou are a snapchat an ipo group. What drops . Alex the headline financials of this company. I was looking at a revenue of 404 million last year, and a million. Of 514 you can see just how much cash this company is burning through. I bring that up, because we have seen the revenue numbers, but we did not quite have a sense for how much they are having to spend to get there. This is the first glimpse that investors will have to take into account. Amount theye the are spending with the prospective opportunities they are pitching to me when i am trying to get to that market valuation . Caroline when you are looking at the Business Model in general, we have a Secretive Company having to come out and disclose losses, but that sort of valuation we are seeing, do you think that sarah i was looking at the risk factors they list, and in there are a lot of familiar things. There is a competitive landscape, the fact that it keeps getting copied by facebook and instagram. These companies that have a lot more resources and reach. Theres also just issues like the founder control. Alex mentioned we will have to see if we want to bet on the company longterm. Founders will retain majority of voting control. And then, user growth. After twitters ipo, thats the number one thing people are talking about. The user growth at snapchat, 158 million daily active users. It is good, more active users than twitter, but its just a little more than instagram has for the product that copies snapchat. Instagram has 400 million overall. Caroline we have a fascinating approach. You were the cofounder, but now in your role as a vc, that you have been an investor in snap. What makes this attractive . We are investors, i dont want to say to know much, in the company, but we are super excited about snap. Very few Companies Really get to change consumer behaviors profoundly as they did. Maybe three or four over the past decade. They are an extremely good company. Very consequential product. Really amazing execution. I think the enthusiasm for a snap ipo bodes well for the rest of 2017. Caroline and we have a company that is exiting, and companies are trying to woo them. Investors are trying to woo them. How willing are they for this sort of data . Alex this is a very downtime for tech ipos. There have not been new issuances out there. That does bode well for the snapchat listing. They have not been able to make a big bet when theres a lot of shares being offered. That promises returns, that promises a growth being growth, which is what big growth, which is what snap is pitching here. As they cycle through, looking at the first few pages, the colorful images they promote, we dont see a lot of roadmapping going forward. There is a lot of Strategic Vision being laid out, but again, to sarahs point, when you look at the information that investors are going to digest, you are going to have the numbers, and then you will really have to believe the story the management is pitching throughout the roadshow when you are deciding to open up your pocketbook. Caroline so what are the trepidations as a founder when youre looking to go to the market . Why isnt there is much meat on the bones in terms of the future . Guest its always a tradeoff between access to capital and how much distraction there is. As a ceo and founder, you pick the best combination. We were at a much smaller scale than snap and at a different time. It was easy to have access to as much capital as we needed on the private markets. Going public is a lot of work and kind of a distraction, because then you wind up having to be a lot more open and match wall street time estimates. A company like snap is doing amazing innovation. They have worked on augmented reality and wearables. They probably have a lot more stuff in a longer timeframe than the next quarter. Into your point, snap said their performance will be lumpy. They will have to make fits and starts in investments and new products, and their growth may not be predictable. Their Revenue Growth may not be predictable. Caroline but it is the addiction as well. When we are looking at 158 million active users, its also the fact that they are going back. Every hour and every minute. Right. They are so engaged. The engagements and behavior change. This is why i think it is so good for them to go public. Theyve done something to transform the way hundreds of millions of people live. It is great to give everyone who wants to be the owner of that the opportunity. They are at the stage where it makes total sense. Caroline we will be having our dream team, sarah and alex, continuing on this. Great perspective. General catalyst, which is an investor, and a founder as well, fantastic to have them with us throughout the show. We will cover this topic later in the hour. Bloomberg alex barinka and sarah frier, thank you for joining us. You are sticking with me. Another stock we are watching, fireeye. The Cyber Security company says it sees firstquarter earnings coming in below analyst estimates. They are feeling sales trends will improve throughout the year, they say. Fireeye also announcing a leadership shuffle. The executive chairman and former ceo is leaving the company, along with the cfo. Coming up, ubers ceo calling it quits on President Trumps Business Advisory council after a tumultuous week. We bring you the latest, next. This is bloomberg. Caroline uber Ceo Travis Kalanick has quit trumps Business Advisory council. This after drivers for the Service Started a petition on thursday calling for him to step down from the president s advisory committee. His participation on the council prompted blowback on social media following the president s controversial executive order on immigration. It snowballed into a deleteuber campaign. Lets bring in bloombergs eric newcomer, who covers the company. Confirmation hes quit was it all surrounding the deleteuber . Reporter yes. It has been a pr disaster for uber. They got a lot of blame for seeming like collaborators by joining this Advisory Council. Elon musk and Ginni Rometty are also on it. But the backlash for uber has been strong. Caroline it feels almost rather unfair in that respect, that the other ceos have not had this backlash. Its also swept up in the same time that uber continued to service jfk airport when other taxis were striking, but lyft continued service as well. It feels that this is literally almost a storm that it failed to deal with properly. Reporter there were a lot of factors. Uber started off with a bad and combative reputation, so it did not have a lot of goodwill with people. It also underestimated how much its a product that exists in big cities where many of the users are out in the streets for the protests, so it underestimated how strong a stance it needed to take given the demographics of its own users. Caroline we did hear from Travis Kalanick promising to put forward concerns from users to the president directly. What can he do now if hes not on the Advisory Council . Reporter its a bit of an aboutface on that. He did speak with trump. We havent figured out exactly what the two said, but yeah, he wont be able to attend the advisory meetings tomorrow. Like you said, he wont be able to voice those concerns. Caroline thank you very much. It is big news. Now amazon shares dipping in extended trading. Get into my bloomberg, you will see that in post trading we are currently off by 3. 75 . The Company Reported revenue over 43 billion, but that missed analyst estimates. And the ecommerce giant also missed wall street forecasts for that sales in the First Quarter. The disappointing numbers raised concerns about increased spending on warehouses, movies, gadgets, and whether that is yet to translate into profitable returns. But there is a bright spot for amazon, cloud business. As, amazon web services, had 47 jump in Revenue Growth. Here with us to dig into the numbers is the managing director at general catalyst, and principal analyst at forrester research. Ted, these numbers revenue is still strong, but it was a significant miss. Can you dig into was it really lackluster sales over the festive period . When you look back at the numbers for the last Holiday Season, for example, up 18 reported, and they grew 25 , 26 revenue topline. There is a little bit of a revenue miss on the consumer business. International business was up. That is good. The aws business is way up. They hit their own estimate bracket, but they missed the street. As an industry analysts, you look at the Underlying Forces why. Caroline investment is heavy at this company. 42 billion being plowed in. Would you suggest saying, look jam tomorrow, never jam today. , is he spending wisely . I think so. This is the difficulty of being a Public Company that innovates so much. You get measured on the stuff you worked on 10 years ago thats bringing in the main stream of your revenue, but the real work is happening in things that will not cash flow for five or 10 years. Aws is a good example of something in the middle. It is bringing enormous, tremendous value to the world, but you wont see the full financial potential for a few years. Then the stuff they are doing with alexa and the more advanced research in ai, it has the potential to be world changing. But you will not see the in mainstream numbers for a few years. Caroline to put into perspective, shares down by 3 , but they have rocketed over the past 12 months. It is just a small flinch. Ted, where do investors want to see the sort of growth, or are they just going to have to get used to sales being slightly below where they had hoped, but generally keep on betting on ai and the content . Thats a pretty complicated question. The company has been rewarded for Revenue Growth and consistent growth, and rapid growth. It still indicates they are making investments in things not just about growth, but about revenue driving to the bottom line. You think about repeat business and the growth in amazon prime, tends tenss, of millions of new users, prime is a Loyalty Program as well where you get movies and television. This is about repeating business and lifetime value and customer satisfaction. That doesnt pay off necessarily in revenue this Holiday Season or this year, but it pays off in that long term commitment that amazon makes customers and customers make to amazon. When you look at the flip side of it, they have to invest. They have to spend heavily in the logistics. They have a ground fleet for sameday delivery. There is big investment to drive that loyalty and longterm value. That costs money, and its a little lumpy. I think we will see a little more lumpiness, but i think overall we will see more profit as well. Caroline its always interesting digging into the earnings. They said they launched prime in china, with millions of Authentic International products. Little bit of a warning to alibaba. But international growth, do you believe this will be the company that we are becoming addicted to from an ecosystem standpoint . I do. I think amazon is one of the two or three most Important Companies in the next decade. I made my first amazon purchase exactly 20 years ago. It was from a book. How far they have come in 20 years, the areas they have and they have fundamentally innovated in, both in terms of geography, but also infrastructure and new products, have been breathtaking. If anything, the case of new stuff they are doing is increasing. If you evaluate them as an early stage investment, they are actually going faster and faster and are more attractive. The paradox is they are a giant Public Company. I remain extremely enthusiastic about amazon. Caroline yes, ted . Sorry to jump in. But when you look at alexa and echo and the box you talk to to order stuff or turn your music on, that is phenomenal. And you look at the Investment Developers have made, the skills they are building this is a platform. This is an ecosystem for the future. Caroline its been wonderful to have your perspective. Principal analyst at forrester, thank you for your time. Now to a story we are following. Apple selling 10 billion of notes in its first trip to the bond market in six months. It joins microsoft as the Second Technology company to sell debt this week despite the u. S. Repatriation tax holiday. The automaker may sell that in as many as nine parts with up to six different maturities. The longest will be a 30 year bond. Coming up, we continue to cover earnings results. Gopro turning in a profit in the Fourth Quarter that beat estimates, but stock has fallen significantly after hours. Perhaps on a weak outlook for the current quarter. We break down the results. This is bloomberg. Caroline now some earnings that came out today. Nokia reported higher fourthquarter earnings that missed. This follows a steep decline in demand in 2016. Stock rose the most in seven months. Meanwhile, wireless carrier is forecasting four year profit at the low end of the previous range. Earnings before interest tax depreciation will be toward the bottom of the previous estimate of 3 to 6 growth. Sticking with earnings, gopro is giving a weak outlook after a rough few months for the company. For more, we are joined by abigail, who covers the markets for bloomberg news. Give us the inside track on gopros numbers. Reporter it really is not looking very good for gopro in shares or for the company. The shares in the postmarket are plunging more than 10 after the company did miss fourthquarter sales estimates. It was a big miss. They made 540 million per share. Also, the guidance for the First Quarter is disappointing. The reason this is weighing on shares so much, prior to this the stock was up more than 20 yeartodate. Investors were really pricing this stock to perfection, expecting a big result. All of this in the bigger story of the beatendown action camera maker, shares down more than 80 since their peak in august 2015. Interestingly, that was the last time they turned a profit. In this corridor, they actually in this quarter, they actually beat earnings estimates by 29 , putting up . 29 per share, the first profit since august of 2015. The context of that sales miss, just not enough to get the stock going. Shares down sharply right now. Caroline that graph is something to behold, to see the deterioration of what was a Silicon Valley darling. What about the deterioration for the next quarter . It doesnt look too peachy. Reporter you are right. They guided from 290 million to 310 million in revenue for the First Quarter. When we hop into the bloomberg 3923, in a look at btv purple we have the sales estimates, or the revenue that has been put up over the last two years. In pink, we have the middle of the range. It is a big quarter over quarter drop off. In yellow, we have the stock trending down with the overall decline in sales. Until sales start moving in the right direction on a trended basis, quarter after quarter, the stock is likely to stay down where it has been. Hard to have a turnaround here. Investors are clearly not convinced of it. Caroline great analysis. Bloomberg news in new york. Thank you. Lets get an investors take. You are also a man who is of the gadget. You used to be addicted to the gopro . I was. It was a great product. I think they got one thing really right and one thing really wrong. The thing that they got right was if you made the intuition that it was super simple, that lots of people would do it. I think the thing they got wrong is thinking that extreme sports would lead the way here. That is one audience, but the much bigger audience is just casual people who want to take videos of everything, of them beating or picking out clothes. Companies like snap in instagram are much more casual. You dont need a gopro. You just take video of anything. Caroline we are seeing video of the drones, which was a bit of a they have nowuse reintroduced them, having to bring them back in november. You have actually invested in a company, sunflower labs. What is the opportunity with drones . Is it about taking selfies . No. Its about time for drones to become practical. The case used to be, geewhiz, its a drone, i can take pictures of myself. Thats still pretty cool. But we are a ways off from that. Of droneslly think are specific applications. Labs is for sensors that you home security. It is a specific thing. That is where i think the next 10