Renegotiations of the broke off last week. Global news, 24 hours a day, powered by our 2400 journalists news bureaus150 around the world. For your first word, i am mark crumpton. Emily i am emily chang and this is bloomberg west. Coming up, jack dorsey in the spotlight with Quarterly Results showing it user declines for the first time ever. Despite a huge earning miss, investors focused on strong numbers. And delivery amazon also enjoying an afterhours rally on word of billiondollar Share Buyback. We will have the latest. Emily first, to our lead twitter fourthquarter earnings. Shares dropping and then rebounding. The last quarter, monthly active users remained flat. Monthly active users excluding active service messenger platforms actually declined from 307 million to 305 million in q4. Moments ago, jack dorsey added an extra detail that twitter users ticked back up in january, sending the stock back up. Still, revenue numbers fell short of estimates. To adrop from 595 million lower number. Jack dorsey says how he plans to turn the ship around. Number one, we are going to refine our core service and make everything more intuitive, number two, we are going to invest in being a leader in Live Streaming video, and number three, we are going to give creators and influences the best tools to connect with their audiences, number four, we are going to invest in making twitter safer so everyone can feel more empowered to speak safely, and finally, fifth, we are going to support developers to build and grow their businesses with twitter. Emily can he do it and will it the enough . Here with me to discuss is om malik, our editor at large, cory analysisand an with a company in new york. , we will start with you. This is not a great report from twitter today. What is your take . Om i think jack was able to accomplish a couple of things. They were able to get some of the measuring tools in place and , as you mentioned, emily, we saw an uptick in users in january. They were able to define what users actually were. That andated first on i think that is going to start to resonate. What they needed to do was recalibrate their expectations to the point where we can actually see some positive surprises. It will be positive data points and the lowered bar looking at the march quarter. I think that the scott the stock will finally trough after the big declines after we have seen in the last month. Emily theyre going to focus on the first rather than the second screen. Cory . There is this notion that twitter is reaching a bottom here and twitter kind of set a new local, and yet another bad quarter from twitter. One of the things that we see here are real struggles with the users. Low calorie users, and now they are not even going to give us those numbers anymore. Theyre going to use these sms free user numbers. But no growth at all. If you look at the slideshow, they actually lost users in the u. S. So user growth is really a problem for twitter. James has got this great idea and it shows a lot of merit. You dont want everyone on twitter. Want tot necessarily read your grandmothers tweets. Emily but maybe that is where algorithmic timelines, in whereby right now they are trying to put the most important right now they are trying to put up the most important tweets to the top. Cory but the problem is, if you look at all of the competitors out there and you look at other big social Media Companies out there, who are they . Linkedin and facebook. Users on aowing much bigger base. I think that is indicative of the problems on the twitter platform. Twitterveryone who uses a lot has a vested usage in twitter and figuring this out but there is a concern that users are spending time on other platforms. Give us your take, om. Is more clarity around what twitter needs to do with this earnings call. That is number one. Number two, we should look towards every social environment which is taste on our attention and we should look at daily active using. We should look at the user base their. That is base there. Trust me, there is more utility emily what are the numbers on that . Cory they dont give the numbers. Om nobody gives the numbers. Cory that is not true. Facebook gives the numbers because it looks good. Twitter said they were not prepared to give it to us on a regular basis. Arey james, how confident you, you seem fairly confident in what jack dorsey had to say, but how competent are you that they can reaccelerate user thath in a sick forget way gives a reason for twitter to remain a longterm, independent, Sustainable Business . Have been giving twitter and jack the benefit of the doubt since august, and i think we will continue to do so. The fact that we now have better clarity and they are now thinking about identity of the product itself in the service, but i think the way we should look at it right now is they known what they are doing in terms of how far they want to execute against product iterations, but in the meantime, we have positive tailwinds on the moderation side. The measurement tools making advertisers more comfortable with actually using twitter as an advertising channel, with of those two tailwinds and the ad load, they could increase beyond vine and periscope. Forink you can get a pass now on the financial side of it if those tailwinds persist, in the meantime, if we would just give them the benefit on the product side, because for the first time, we have some clarity as to how twitter wants to be defined in the eyes of users around the world. View om, what is your on product tweets . Why dont they just do something drastic. What they are doing now isnt working. Om it is coming. Emily but why is it taking so long . Om because sometimes you need to make sure things work before they are put out into the world. I think the 1000 character limit thing,he new limit the new idea, that will come relatively soon, three months. Emily what is your idea of what twitter becomes . How will twitter involve . , theyers want to write want to show their pictures, and they want to show their videos. Is ais been centerstage very good reason to allow twitter to increase on service much more. Similarly, they need to do a good job of offering a photo publishing solution because it is kind of terrible right now. That said, from a longer, post perspective, they should absolutely be doing that. Their audience is telling them, you know, we want to invite longer pieces. They want to do this. Twitter should start listening to the audience a little bit more, giving them things and listening to their behavior, not actually two people, but to the behavior, of how people use twitter more often. Emily om malik of True Ventures goa we are going to be sticking with speaking with you later ventures, we true are going to be sticking with coryater in the show, and johnson, youre going to be sticking with us, and james cakmak, thank you so much. Cisco announced it would add 15 billion to its Share Buyback program. This is coming just after a week that the Company Announced that it would bite jasper technologies for 44 billion in cash. Check my interview with the Ceo Chuck Robbins tomorrow at 3 00 p. M. Pacific right here on bloomberg west. Coming up, a big launch for tesla and the fourth quarter, but surges sales are surging. Why elon musk thinks that makes all the difference, next. Emily amazon shares also rallying in afterhours trade. Amazon says it will repurchase as much as 5 billion of its own shares in a program where the company says it has no fixed expiration. The 2 billion program was announced back in 2010. Amazon says it allows them the flexibility to repurchase their shares when it knows it would enhance longterm shareholder value. Their shares have increased 26 over the last three months. Tesla shares also surging in the last few hours. Analysts have been looking for a profit of . 10 per share. Thestors are focused on guidance. Tesla is topping delivery estimates. Bloomberg news columnist Ed Niedermayer is in oregon, our editor at large cory johnson, i want to start with you. , the as an analyst numbers that surprise me or the cash burn, that is obviously something that they talked about and saying that they are within striking distance of being cash flow positive this year, which is optimistic i think, considering the new products that are coming or ramping up production. Is 80,000 togoal 90,000, and that is a number that the stock is actually trading on. I think there is a lot of information going on here based on what is projected. I think is an analyst, you kind of bang your head against the wall and wonder why the stock reacts the way it does. Bettercory, we got much than expected projection numbers. Is that enough to change cory tesla ash opinion of Cory Johnsons opinion of tesla . Cory we know that they missed those numbers 100 of the time and of a lower those numbers, so this is the first time that they may meet their goals. I hope that they do. That would be great for them. But based on experience, not only what they say about the future, but i do believe what they say about what was going on in the past. What we saw in the last quarter is that there was a massive gross margin collapse. If you look at the Gross Margins fell tocompany, they 18 this quarter. It was a terrible, terrible quarter. A blame it on some production problems they had and other issues they had during the quarter, but fundamentally, that is a very bad quarter for Gross Margins. If you look at the wrong turn that they made in terms of Gross Margins, again, the more you make, the better you should he added, not the worst. We have seen just the opposite of tesla. It is not getting worse, it is wtting worseer and worse orser and worser. Say that is too good to be true and i should not make it at all. Why . Ed like cory was just saying, the more you operate your plant, the more you scale up, and the better your margins should be. Tesla is heading in the wrong direction with that. The more they scale, the worse the markets get. Margin, notadd create less margin than the sedan version. So based on how we are seeing this business operate, i think that scaling up is the wrong choice, and i think what they are successful at is being a luxury brand and they should focus on that and orient their Business Model around that. Own tesla people who love their cars. I havent met a Single Person who hates their tesla. Kevin, this is cory its a hundred thousand dollars, of course they love it. Emily yes, but there has to be something there. There has to be something there. Kevin, when is this Company Going to turn a profit . Eds point,ory and to cory and eds point, as you see it ramp up in production, it is going to take time to get fully positioned on that product. When they will be profitable ang a 30,000 vehicle 300,000 vehicle remains something to be seen. Emily ed, you make another interesting point that i didnt realize, but insurance costs for tesla are crazy expensive, adding on to what anyone would pay out for a model three. All gets backit to their scale. Even if they ramp up to 500,000 units, that is still pretty small in the scope of the car industry. When you have that low of scale, it is even worse with the model s right now, just the parts availability and the number of shops they can actually do these repairs are limited, so that drives up your insurance costs. Even if they can get the model as a down to the price limits that they were talking about, it is not at all clear if they can be competitive on their insurance costs. Emily all right, Ed Niedermayer , and kevin tynan, and cory johnson. Thank you all. Google could be one step closer to getting its drivers license. The tech giant self driving system cannot be considered a driver. Apply toiously only humans. That makes sense. The federal watchdog overseeing this richly said that the car could not be distributed to the public. And looking beyond smartphones and into cars. Ceo simon seeger spoke to bloomberg in london. The nexten we look at few years of automotives, we look at Driver Assist and in Vehicle Information and eventually moving to self driving cars, we anticipate a factor of about 100 in growth. That translates as an opportunity for a 15 billion Semi Conductor market that we can address. When you do the math on that, you get about 160 million in silicone content on average. Emily they still amount to about 45 of annual revenue. Mark zuckerberg response to controversial comments from a facebook board member. We will bring you all of the details coming up next. Emily Mark Zuckerberg has responded to a controversial comment from a board member about expanding in india. I found the comments deeply upsetting and are not the way that facebook or i think it all. We are now joined by om malik of True Ventures to discuss why facebook is playing the victim while controlling the flow of information in emergent economies. This is indias attempt to block out internet. Org. You have been a critical of internet. Org in general, saying it is not a charity and in fact the name its self name itself is a misnomer. Om this latest brouhaha eventually stokes the fears that people are most fearful of. I think that is very clear. I think there is a Historical Context here, which, if you are not on the ground there, you perhaps do not understand. Two generations from now, we perhaps will not feel that way. People from india, right . But right now, it is a pretty strong issue for them. That said, it is not just an indian issue, it is an issue about a private company which has private ownership and listens to the stock market and has to make decisions about a lot of people who have no say in it. It is now europe and is, not charity, it is a business, and facebook ultimately wants more people on facebook. I asked a Mark Zuckerberg about this question when interviewed him about one year ago, and i asked him if this was business or if this was charity. Take a listen as to what he had to say. We were focused on profit, the most reasonable thing that we would have to do firstus on the billion people are so who were using our product. The billion people who are on facebook have more money than the rest of the world combined. Emily so you are hearing their that it is not Good Business if it is an attempt to get business. If internet. Org is not the way, how does india then get you through to online . Om there are a lot of new technologies that need to be developed, in keeping up with the needs of the market. In indias best interest that i am talking about, there is a newly unwired nation, whether they are in africa or in asia or in latin america, they cannot be given access and be told how to access the internet by a forprofit entity. Emily right, but of a country if a country of 1. 4 billion get online and internet. Org is not the answer, then what is . Om how many people have actually signed on, you should see the advertising which they launched with and the advertising change in september when they went from internet. Org to facebook. You know, i think people have it really embraced it for a specific reason, it is not the internet, it is not the experience, it doesnt provide the access that they tout. I think there is a lot less than what meets the eye here. Emily in fact, you think it should be called Facebook Free is that of internet. Org. We will have to leave it there. Om malik of True Ventures. This is a great issue and we can talk about it for hours. Coming up in less than six weeks, it has been a wild ride for the market. We are going to talk about why such big moves in the market in 2016. The conference call. The ultimate arena for business. Hour after hour of diving deep, touching base, and putting ducks in rows. The only problem with Conference Calls eventually they have to end. Unless you have the comcast business voice mobile app. It lets you switch seamlessly from your desk phone to your mobile with no interruptions. Ive never felt so alive. Make your business phone mobile with voice mobility. Comcast business. Built for business. Emily i am emily chang and this is bloomberg west. Here in sanfternoon francisco, and 7 30 in the morning on thursday in hong kong. Were joined by heidi to take a look at the stories in asia. Heidi there are warnings that the Banking System could see up to four times of those suffered by u. S. Lenders. A Hedge Fund Manager said that three put 5 trillion could be lost in equity in china. This is to recapitalize the banks. Japan,. Has been meanwhile, in exporting goods to china for the First Time Since 1982. South korea was wearing the crown every year since then. Slowed lasto china year, but japans 27 slide was enough to drop it to third place behind the u. S. For the first time in 33 years. The same with japan. Shai is in talks to other companies and the deal would clear regulatory hurdles for a takeover avenue a. B. Miller. And there are definite signs of a turnaround for the u. S. Mobile carrier sprint. Meanwhile, in japanese investors are helping softback softbank. Cashhave been hemorrhaging over the past year, but the carrier managed to increase its profit forecast for 2016twas much as 8 billion. Emily . Emily is this really a turnaround for sprint . Aidi we have been asking that, havent we . The ceo was very confident and he went so far to say that there was a Perception Gap to see that sprint was doing well. His executives are working hard. Would to that extent, i agree, because the view of the turnaround is driven largely by these cuts rather than actual growth. The profit forecast has been up, but it has certainly be in certainly been a tough year. Sprint is the second against investment for softbank and of course as you would know, the biggest investment was alibaba and that stock is down this year as well. Emily all right, take you so much for that update. Dayal news 24 hours a powered by our 2400 news journalist around the world. From the newsroom in san francisco, i am emily chang. Tech Companies Led w