Of zika virus are reported across the u. S. Territories. Prices on condoms have been frozen after two new cases of sexual transmission of the virus in texas. People watching saturday night live this weekend may think they are seeing double. The Bernie SandersCampaign Says he will be in new york for an appearance on snl. Larry david will be hosting. He does a spot on impersonation of the senator. Nbc denied to comment. Global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world trade from bloomberg World Headquarters in new york, i am mark crumpton. Emily im emily chang, and this is bloomberg west. Coming up the nasdaq closes deep in the red after a week of wild stock moves. Linked in losing 7 billion in value. U. S. Jobs, painting a rosy picture. Is Silicon Valley a net job creator . We dig into the numbers and talk about what is missing from the jobs report. Twitter tells us it is suspending accounts associated with terrorism. Will the Tech Industry bowed to calls to quite operate with government surveillance . To cooperate with government surveillance . We discuss. First, to our lead. Linkedin sees its biggest ever decline, wiping 7 billion off their market cap since the Company Reported week earnings. Weak earnings. Analysts across the board lowered their price target, recommendation, or both. Linkedin isnt the only company. Its been a downhill slide for the nasdaq, which closed down 3 . More than a third of the nasdaq top 500 stocks down during trading. I went to bring in our bloomberg stops reporter, our Bloomberg Intelligence analyst, and bloombergs sarah frier, who covers linkedin for us. Down almost 50 at the close. Is this warranted . Are these dramatic moves warranted . Emily, what is happening is a reset of the valuations. There is very little margin to miss. If a Company Forecasts certain guidance, they cant miss in this type of environment. What investors are seeing is a company like tableau, which relies exclusively on a license model, is driven by macro fundamentals. If macro is big, it will hurt companies that rely on license model. That is why all the companies are moving to subscription. Subscription gives you revenue predictability. Whereas in the license case, you come across companies which can miss a quarter by a lot. Emily lets talk about linkedin specifically. We have been talking about this since may reported. Do the fundamentals of the business warrant a stock swing this big . Reporter if you think about the attitude that people had about stocks like linkedin last year, it was mostly euphoric. This company was going through some issues with its sales for sure and they had some Business Units that had yet to show their full potential. Now analysts are looking at it through a different lens. This is a company with tech stocks down for the year so far, that is going to be judged a lot more harshly. You are right, some of it is just looking at it through a more critical lens. Linkedin for sure surprised people with its guidance for the year, reporting that its revenue wasnt going to be as high as people expected, but the fundamentals of the business did not really change as much as 40 . Emily at the same time, we are seeing these tech stocks dragged down. Facebook and coming off an amazing quarter. Why . Yesterday linkedin came out after the market. Traders had the entire night to ready their sell button. As soon as the market opened, the thing was down 50 . That doesnt just happen in a vacuum. When you see a tech stocks sell off that much and one with as much influence as linkedin can potentially have. It will reverberate around the sector. Microsoft and alphabet google, facebook it is a contagion effect. As was mentioned previously, people are resetting their thoughts on valuation. These are huge growth stocks. They are valued on what they will be doing down the road. If you look at tableau, they have a 4 to 12 month eps of 12 100 times. Emily are we seeing a longerterm revaluing of tech . Joseph what you are seeing is a longerterm revaluing, and thats also an extension of the defense of rotation we are defensive rotation we are seeing away from these riskier tech stocks. People are uncertain about a million things right now, whether it is the escalating situation in china with Economic Growth slowing down or the strong dollar hurting multinational companies, theres a lot to be worried about. When that happens, people want to pull their money out. Mandeep i would say these are the early signs. I wouldnt say this is a complete revaluation. I would wait for Companies Like salesforce to report. They have a subscription model. Its more predictable. If they miss, yes, we are in very uncharted territory and you are most likely going to have a complete reset of valuations in tech across the board. Emily investors have the whole weekend to think again. What happens on monday . Joseph that will be interesting. People will be watching futures trading when it opens up sunday night. We could be in for more pay. People have said in the past when they have time to dipnsider that buying the is a Good Opportunity here. We have seen cyclical bear markets in a lot of different sectors. Earlier this week we were having the same discussion about financials. Couple weeks ago, we were talking about other stocks getting nailed. It might rotate into another sector, and there is a lot of speculation that we are perhaps at the end of this sevenyear bull market. Emily thank you both. Sarah, you are sticking with me. I want to talk about twitter. Twitter saying it suspended more than 125,000 accounts since the middle of last year because they appeared to be promoting terrorism. The company says it still saw the Team Monitoring reports on twitter and has been working with authorities to investigate whether users who tweeted about terrorism were also involved in terrorist activity. Twitter said, we condemn the use of twitter to promote terrorism and make it clear that this type of behavior or any violent threat is not permitted on our service. We have known for a long time that there were potentially tens of thousands of accounts linked to terrorism on twitter. Why now . Sarah twitter has been sending executives to the same global meetings with government officials around the world that facebook has been to, that google and apple have been to. Twitter is coming to the point where they have to say, we can take care of this ourselves. You dont need to have control over the security of twitter accounts. The last thing we want to do is cede control to the government. They are taking a proactive stance now, rather than just reacting the way they have in the past, actually going through and using a strong delete button with these accounts. Emily how do they identify accounts that are being used by terrorists . Is the government helping them . The government is definitely coming to them with requests, more requests than usual. They have noticed that the Global Nature of terrorism has gotten more embedded with how people use social media accounts, but also a lot of user generated complaints that come into twitter from accounts, the vast majority of times that twitter blocks an account it is because people have flagged it, whether that is an account that is harassing or terrorism or some other reason. They have gotten a lot better at refining those reporting tools for their general user base over the last couple of years. Emily interesting. Sarah frier covers twitter and linkedin for us. Thanks so much. Coming up, a rocky ipo market. The actress and startup founder isnt fazed. We talking about jessica alba after the break. Plus, the biggest underdog of super bowl 50 hails from upstate new york. We will introduce you to the 11person coffee startup that one a prize ads but worth millions. Emily getting from a to b may have gotten easier. Uber is teaming up with amazon ai to help customers hail a ride with the sound of their voice. It is another example of how both companies are trying to expand. Amazon and go has recently teamed up with Dominos Pizza and spotify. Staying with uber, what are you willing to do to own a piece of the startup . These wealthy investors have already committed about 500 million to ubers latest round. Joining me from San Francisco is the ceo of share post. A company that helps investors buy and sell private securities. Here in new york, bloombergs alex barinka you have read this document cover to cover. No Financial Information, but some risk factors. What is in there . Alex i will point out something on page one. It is called the new writers fund. They say the development of insights and big ideas is valuable to the investment process while incremental information flow was not. Basically saying, look we think , this is the next big thing, we are helping you get into it. If you want all the data right now, you are not necessarily going to get it right people know uber. If you want a peace of the a piece of this scarce equity asset emily they do not know how much they are losing. Alex right people dont know , how much uber is losing. It does say that they will get results, they will get Financial Information down the road. The New York Times reported they are getting selected data. Everything out there has been leased basically through the likes of bloomberg and other stations. Emily the question here is, is it dangerous for individual investors to get into the business of buying shares of private companies that they really dont know a lot about . I would say it is certainly risky, but with risk comes greater returns. When you are seeing in the marketplace is such demand for Growth Equity returns that you cant get anymore in the Public Markets, that investors are particularly sophisticated investors who feel they can seize the uber opportunity are willing to start with less information than they would traditionally have. Emily what other late stage startups have you seen following this lead . Greg you mean raising capital emily how they explored this or are they selling their shares on the private markets, like snapchat or airbnb. Greg you have primary financings being conducted by the company. What is interesting to us, you look at the market trend, or more capital was raised for growth companies, Technology Growth companies in 2015 in the private market in the Public Market. Thats a result of a bunch of different things. If the question is, is it the trend that these premier tech private companies are raising bigger and bigger chunks of capital and our markets, the answer is yes. Alex at some point these investors will want an exit. Uber has 10 billion dollars of funds that have come over from cross over investors. They wont achieve those returns until the exit that state. Emily what do you make of that . Greg two things. I think most of these companies, the great majority of these companies will ultimately go public. What we are seeing an particularly today with all the news around linkedin is that companies that dont have reliable or predictable earnings find the Public Markets potentially very challenging, and if you are a company that is growing at 50 , 100 or more, it seems like a very dangerous place to be in the Public Markets. But those companies will mature, their earnings will become more predictable, and at that point the dangers of the Public Markets will be less and the benefits, greater liquidity and efficiency and greater chance. Greater transparency will outweigh whats keeping them out of the Public Markets right now. And they will have their ipo. Emily it will be interesting to see if these big unicorns decide to do the same thing. Alex barinka, youre sticking with me. I want to talk to you about the rocky market for tech ipos. The ecommerce venture started by actress jessica alba is working with investment banks. The Honest Company is working with Goldman Sachs and Morgan Stanley to start the First Step Towards an ipo. How much have they explored this . This will be early days. This is a company that has raised 220 million privately. They are hiring these banks basically to say, lets start getting ready, lets start putting together the prospectus. Where do we think we can value this company . They are valued at 1. 7 billion in their last private round, and do they have an opportunity . Ipo markets are not as glamorous as they were early last year. We had no ipos in january. We are coming off a slower 2015. What they will be doing is looking and seeing, is their investor demand for our company. The best of companies should be able to go and sell shares to public investors. And when is the window . Emily i use honest products. Is honest a tech company . Should it get a tech valuation . Alex this will be the number one question when they are road showing this company. Do they get the tech premium, do they get doubledigit times sales valuations, or are they more valued like a retailer or Consumer Company . It seems like a lot of these tech whatever Companies Like square, they try to get that tech valuation, and investors have pushed back. They saw it in squares case. They said, no, you are a Financial Services company. That will kind of be the call there. Honest does have their subscription products, which fits into that ecommerce base. Ecommerce space. Emily subscription services. Alex ecom looks to be where they might be angling, and it seems like that would be a natural fit for them to compare the seminal likes of amazon. Emily i want to touch on other tech ipos coming maybe. I recently interviewed the ceo of new tenex and asked him about going public. Take a listen. We are building for the long haul. There is great synergy. As long as we focus on employees and customers and partners, we will be a company on the Public Market someday. Emily what is in the pipeline . Further delays . Alex they are on file with a placeholder amount. Go. Eems they might blue coat is a company backed by bane, Internet Security company. They are looking to raise 500 million in the first half of this year. The question continues to be, when do they get to go . Companies like blue coat are typically more profitable. They had been vetted by their customers. Emily we will keep watching and you will keep us on it. Alex barinka, our deals reporter. Thanks so much. Coming up, the u. S. Jobless rate declined. Why is there still a tech Talent Shortage . Emily now, to the jobs report and that raise American Workers have been asking for. Average hourly wages rose to 25. 39, one of the highlights from the january employment report. The jobless rate is now below 5 , the lowest level since 2008. Employers added 151,000 jobs last month. The big question we are crying trying to answer, is this story being reflected in Silicon Valley . Joining me to discuss is the founder of a Talent Agency for tech workers and freelancers. You make the point that this jobs report does not say a lot of important things. Like what . It does not tell you about the growth in the freelance economy. These are not w2 workers. You are talking about a marketplace that is exploding with freelance workers from uber all the way up the food chain to these high tech freelancers we represent. Emily with these workers like to have a fulltime job and should they be accounted for . Rishon the freelancers we represent are choosing to go freelance, and we are seeing this more and more within the tech sector as millennials pop into the workforce in greater numbers. They are not interested in the same w2 opportunities. Frankly, companies are happy about that because it affords some economies for them. Emily how are Companies Handling all these people who want to be freelancers . Rishon they are realizing they have to adopt this hybrid platform of w2s where it makes sense and then flexible freelance agile workforce where they cant find w2s. Emily Silicon Valley is considered a place of growth, where a lot of growth, where a lot of the most exciting Economic Activity is happening. But is Silicon Valley creating new jobs . They are lower wage jobs. Rishon yes, they are creating jobs emily net, though. Rishon they are probably creating more efficiency, and they are coming to scale over time. Uber in 2009 probably employed few people. Now they are rapidly growing. As these startups first come to market, they are not employing as many people and they are seeing efficiency from the technology they are building. Emily innovation creates jobs, but innovation also destroys jobs. Netnet, is Silicon Valley creating more jobs than it destroys . Rishon it is a transitional marketplace. It will create more jobs, but there has to be retraining. The workforce has to shift a bit. Theres efficiency and things are changing, but there will there will be other opportunities that arise. Emily if a large portion of jobs and the economy is shifting towards freelance, do you think the statistics will at some point start to account for this . Rishon i think it will have to account for this. The trend out there is for a freelance workforce of about 50 by 2025. When you are taking half the workforce out into the freelance world, you will have to track the 1099s. Emily the problem here is also people who are underemployed, should parttime workers really count . A lot of these uber drivers are getting in their car after their