Plot with the raids in london and southeastern england. One woman was shot as heavily armed counterterrorism officers stormed a house on a residential street. Police say six suspects were arrested on terror related charges. Authorities say 13 potential attacks have been foiled in the last 4 years. In africa, pope francis is in cairo, where he is showing solidarity with egypts embattled christian community. The pope met with president lcc and the startup of his twoday trip. Three weeks ago islamic militants killed more than 40 people in a palm sunday gathering. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Im alisa parenti. This is bloomberg. Bloomberg technology is next. Caroline im caroline hyde. This is Bloomberg Technology. Tech giants hit new records, dominating the worlds most valuable list. Will the earnings euphoria hold . Two tech firms make their public debut with two very different performances. Is the ipo market getting too hot to handle . As President Trump approaches his 100th day in office, we will discuss the policies that had the biggest impact on tech, immigration, and tax reform. First, to our lead. This week has been filled with earnings from tech giants like amazon, alphabet, microsoft, just to name three, all of which have hit record highs this friday trade. Alphabet reported thursday and showed the mobile boom is finally risking profits as google benefits from the surging clicks on smartphone apps. The company downplayed the effect of its advertiser crisis, citing growth from the site is the key driver. Joining us is mark mahaney. And, bloomberg editor at large cory johnson. Gentlemen, what a week. I will kick off with alphabet. It is one of the biggest players in terms of the market cap in those who give us the numbers. Mark . Mark i think they gave investors three things. They bought back stock, 1. 1 billion of stock. They have got a lot of cash. Secondly, they showed stable margins in their core business. Third, they showed consecutive Revenue Growth. They have grown the revenue 20 yearoveryear for 29 straight quarters, one quarter over seven years. There is no other company that has done it in history. The history of growth, the management and expenses and giving back of cash to shareholders, theres really not much to not like about that. Cory the Revenue Growth rate, at this size to be getting so much bigger, its interesting. The thing that jumped at me with the click number, 44 growth in clicks, was shockingly better. It just shows that mobile is dominant for them. Caroline just the last two weeks of the quarter, concerns about the advertiser backlash. I spoke to an executive of alphabet, saying in the mediumterm this will be a modest effect, and we will invest longerterm. Do you think it is but a small drop in the ocean . Mark i asked on the Earnings Call about whether they were seeing pushback from advertisers. My interpretation was that they are not seeing any impact at all, they think after the events took place they went out of their way to go to advertisers. Martin sarao was saying how aggressively google was going out there. I think it will turn out to be just as momentous for google as the debate over facebook was six months ago, not material at all. Caroline whats interesting is they think eventually lets think of another cloud winner here, amazon. Again, nominal growth in excess of 20 . Cory for the full company. It is a spectacular machine. I found myself in this quarter spending time looking at the Retail Business. When services got some much attention and they started breaking out numbers, the excel geeks, the you and me, were looking at sources and trying to understand that business. The Retail Business is firing on all cylinders. The cash flow generation from the Amazon Web Services business allows them to sink even more money to Retail Business and run this thing on negative margins, and grow and grow and invest in the end distribution. It is sort of interesting to see. In technology we see the leading companies, leading companies are not 2 or 3 times bigger than a leading player, they are 10 times bigger. Thats the Network Effect. It was true of cisco and intel and google. Whats interesting is that amazon brought the Network Effect to retail, selling stuff, and theyve got that they are 10 times bigger than any other online competitor in the Retail Business. Caroline i want to focus in on my bloomberg. Talking about the sheer size and scale of these companies, i went into the s p 500. If you measure it by market cap, go to memb if you go to bloomberg, and measure it by market cap, we got dominated by the tech sector. Apple at the top by quickly below in terms of market cap then here comes facebook, 427 billion market cap. Here they come in terms of their own earnings. Mark facebook, we thought, was one of the least risky stocks going into the earnings. We thought they would guide to down. They did guide to down. With facebook, underlying trends are as strong, probably strongest across tech. They will do something close to 50 Revenue Growth, faster than anybody else, and they are doing it at scale and we dont think there will be a dramatic cut to margins. In terms of advertiser demand, we still see advertiser demand rising, demand to run facebook campaigns and increasingly instagram campaigns is still rising. Its one of our top picks, we think it is one of the best fundamental stories across tech. Cory he was growing at high 40 a year, two years ago. To marks point about instagram was an important one, its to grant was a revenue free product not that long ago. As regular instagram users, we see the ads popping up. Its also growing users in ways that twitter could only dream of. It is a bigger platform. The decision to buy it for under 1 billion a few years back looks beyond brilliant. Caroline lets look at the other fundamentals. Mark, i want to be looking at the top 100 days. Mark this is Pretty Simple but it turns out President Trump made tech great again. Since his election, the market cap of the tech leaders that the stocks it has risen 400 billion. 4 billion a day. That is not something people would have expected when they saw the news that trump was becoming president. There were concerns over whether he would try to remove some of their tax shelters. In fact, the fundamentals havent changed at all. We have a relatively successful tech ipo in the first 100 days, the snapchat ipo. It looks like tech has done nothing but benefit so far from President Trump. Cory its a policy effect from the administration. Caroline taxes, even though so much crexendo of help has been built on the tax. Cory if theres a recreational repatriation, come but is. We will see the rules from that, how its going to work. Apple and intel who have overseas cash, that built structures to keep those that are very low tax rates. This tax holiday might not be something they want to take advantage of. Caroline and its got to get through congress. What a discussion. Thank you so much Great Dynamic as ever, mark mahaney, managing director at rbc. Cory johnson, thank you for joining us. A story we are watching for you, tesla expanding its battery cell production. Tesla ceo elon musk says the company is likely to build for bore build four more factories. Tesla has one giga factory nearing the end of construction near reno, nevada. Musk did not reveal any future locations straight coming up, qualcomm forced to lower profit forecast it may just last week. Why why the chipmakers legal dispute with apple is to blame. This is bloomberg. Caroline now another mover we watching, shares of gopro tumble. More money was rushing out of the stock in the latest quarter, beating estimates and giving a bullish secondquarter forecast. Investors still not convinced to go push ahead with the turnaround. 75 of the shares on the market are now shorted according to its latest finding. Now, the legal dispute between apple and qualcomm is escalating. The chipmaker says that apple is cutting off licensing payments related to the iphone until the contract is settled. Qualcomm executive Vice President and general counsel Dan Rosenberg said in a statement, apple is interfering with qualcomms longstanding agreements with qualcomms licensees. These license agreements remain valid and enforceable. The company is one of the main supply components to the iphone. Joining us now to discuss is ian king. Actually, is it one of the most important suppliers . What apple is trying to say is, you claim all these royalties when we are not always using your chip. Theres two things at play here. The chips, and the patents. The patents cover the fundamental technologies of all highspeed networks and phones. So whether you use qualcomm chips or not, you pay qualcomm. Thats the rule in the phone industry. Apple is saying, you are paying a percentage of the full price of the phone. There are so many other things in the phone. Why should i be paying for these things . Caroline do you think it is all out more . Absolutely. The expectations qualcomm had a week ago when they gave the forecast you just mentioned, they set explicitly, we dont really expect apple to do this. Caroline when you are looking at how much they cut their profit forecast, it could be as much as 30 more, 30 less of the top of the range in terms of earning per share guidance. How much would this be done if supplier start being lent on by apple and they follow suit and stop paying qualcomm . Is sick obligated situation. Its a complicated situation. Qualcomm has taken 5 million out of the quarterly revenue. On the licensing revenue, apple indirectly through its suppliers is paying 2 billion a year in licensing revenue. Its almost pure profit and thats a lot of money. Caroline this will run and run. Its already been five years according to apple that theyve been in a linguistic dispute, and now its gone to the courts. Could payments be on hold . Again, two ways to look at it. If it goes through the court and follows the usual procedures, appeals backwards and forwards, a couple years at the minimum. Thats a long time to be without that license revenue. The way i look at it from qualcomms perspective, this is just a negotiation, a way of the two trying to find a middle ground. Caroline what surprised me is shares did initially react for qualcomm, but then they bounced back and they were up 2 10 last time i looked. Why is the share price not under more duress . This is just confirming the less good scenarios that people already can. On a headline basis it looks horrible. As people have been predicting this might happen. Caroline ian king, great reporting. Youve been all over this story. Coming up, the ipo pipeline is heating up with eight listing this this week, including 2 tech firms just today. We will hear from the ceos of both companies, next. Our interactive tv function, you can find it at tv on the bloomberg. What just live, see previous interviews. Watch us live, see previous interviews. Become part of the conversation by sending us instant messages during our shows. Bloomberg oh subscribers only. Caroline it was a busy week for the ipo market. Capped off by two tech listings friday that turned into two very different performances straight out there and act by intel while kobani, and ecommerce platform to buy used cars, tumbled 26 in the session. Alex barinka spoke to the ceos of both companies from the new york stock exchange. Tom riley says why he thinks the company had the support of its investors. All of our Financial Investors are extremely happy. Intel is an investor but also a strategic partner. They are happy with his relationship. Were working on designing software and hardware together. It is a future design for computing intensive analytics. We are speeding up the performance of it. Our partnership with intel and their investment, a strategic relationship where we are doing joint engineering together to change how computers in the future will be different. Looking at that evaluation, the optics is not great when you have what is perceived as a down or flat round, if you could go back, would you have still taken that 4. 1 billion value . I know its a Strategic Partnership but there is some concerns there when it comes to pricing options, employ them are all, or the aura on the street. Putting optics aside, we are excited about this run. We are excited about what we built and the growth trajectory we have going forward. We have so much behind us with that intel partnership, we would never have traded that. We are doing intel together in our fiveyear, 10 year journey what we are doing together in our fiveyear, 10 year journey, is incredible. Pretty much everyone and everything is becoming connected. That is bringing so much data. In 2020, 90 of the worlds data doesnt exist today. All the new data is coming into our platform. Caroline that was thomas riley, ceo of cloudera. I think every cabinet goes through a couple stages. One stages exploration phase, when you are trying to figure out does your product figure audience. We are in the execution phase now and Public Markets are a great place to finance yourself. When you think about the markets you are in, i know one of your partners allies in the u. S. Has talked just this month, bringing down its expectation. When you think about some of the changes in the industry, what are you blocking and tackling for 2017 . I think the macro environment is always changing. A few cycles every five years or so. We focused on building our companies, they continue to grow very quickly. Whether its car sales moving up or down or price moving around , we are focused on what we are building. When you do look at that growth, topline, it was about 180 last youre on a revenue basis. Year i revenue basis. Investors must have like that. What was the feedback you had . What is happening is consumers are response in. A responding. We had an offer that we feel is very strong. They have an inventory of 7000 cars. They can bore a buy a card 15 minutes and we can deliver it to their door and they say thats a 1500. Really high offering and that is what is driving our growth. Caroline that was the ceo of carvana. Lets get a wrapup of the tech ipos. Alex, two great interviews, two very different performances. Talk to us about whether we should be blaming the bankers in this, was carvana mispriced, is the other leaving too much money on the table . Alex in my world they raise the exact same amount, selling 50 million shares for 15 million on top. When you look at cloudera, that was arguably a very well priced offering on the basis of its past round. As i was pushing tom theyre a little bit, it is a big haircut in terms of value. They did bring up the Strategic Partnership but it is a question that folks in Silicon Valley are asking, as when that last round, a little higher than what was realistic . Investors seem to like that, it is pushing this idea they are willing to bet on these earlystage unprofitable Tech Companies. Those two stocks have traded up. Cloudera is continuing the Silicon Valley ipo pipeline that wear comfortable with. On the flipside, carvana, a phoenixbased company, is different. They are consumer facing. As a platform to sell used cars online. The expectations for used car prices are coming down a little bit, and there are some rumblings in terms of the car loan industry. You have people like ally, the biggest u. S. Auto financer, upping their provisions for auto loans for the end of the year. Basically they are concerned about people not paying back auto loans. Two very different situations here. The bottom line is, we have 5 listings today at the new york stock exchange. If you are going to go public, everyone is telling me if you are ready, you have to go now. You dont know how good how long these good conditions will last. Caroline the ipo landscape never seemed healthy but just for the short term. What about those that are just at the starting gate . Alex the next couple weeks might be a little quieter because it is earnings season and people like to wait to get fresh financials. Everyone is watching and waiting for the biggest companies. We saw news out of dropbox this week. Them talking about it being positive. It seems like some of these bigger ones that everyone is paying attention to a released touting the right numbers that people on the street will care about if they go public. Looking forward it is still enterprise. There are some companies in the pipeline, but not as many hitting the road right now just because of the schedule kind of positive round earnings season. Caroline is this just america, or is it geographically based . International excitement, five years . Alex in the u. S. Right now, there is less economic unease. Right now with the market still in the u. S. At highs since basically the recession, volatility this week fell to the lowest level. Contest the lowest level since 2007. It touch the lowest level since 2007. If you are a u. S. Company, you should go. In europe it has been more of a challenge. We should continue to see more activity here. Caroline all eyes on spotify. Thank you very much reporting, great interviews. Coming up, both uber and companies backed by larry page on feel page unveiled new plans in the emerging sector. This is bloomberg. [ beep ] show me top new artist. [ applause ] [ laughing ] show me top male artist. My whole belieber fan group. Its not a competition, but if it was i won. Xfinity x1 lets you access the greatest library of Billboard Music awards moments simply by using your voice. And thank you so much. The Billboard Music awards. Sunday, may 21st. 8, 7 central. Only on abc. Lets start with a check of your first word news. President trump speaking at the National Rifle associations meeting in atlanta discussed the Second Amendment amendment but also reiterated his immigration stance. We need a wall. We will build a wall. Dont even think about it. Dont even think about it. Dont even think about it. Thats an easy one. We are going to build a wall. President trump is the first president in 34 years to speak to the nra. Todays 382 to 30 hou