The Briefing by Martin Peers, Jessica Lessin and the team at The Information

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The Briefing

By Martin Peers, Jessica Lessin and the team at The Information

Get smarter about the day’s news in tech, media and finance by following Silicon Valley’s most-read executive newsletter.

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Recent Editions

Google CFO Ruth Porat. Photo by Bloomberg.

Google’s Gross Margin Mystery and Takeaways from Tech Earnings

By Alfred Lee · Jul 23, 2015 7:00am PDT

Google’s market cap has climbed nearly $60 billion after beating earnings estimates last week. But the narrative in the tech press crediting tougher spending controls—fewer moonshots, slower headcount growth—is incomplete. As a percentage of revenue, operating expenses (excluding cost of revenues) are still up quarter-over-quarter,... Google’s market cap has climbed nearly $60 billion after beating earnings estimates last week....

Snapchat CEO Evan Spiegel

Why Google’s Cloud Needs Snapchat

By Tom Dotan, Amir Efrati and Steve Nellis · Jul 22, 2015 7:00am PDT · 2 comments

When Evan Spiegel and Bobby Murphy first released Snapchat in 2011, they ran the service atop Google’s cloud computing service App Engine out of necessity. Tapping the Mountain View giant, whose cloud business was just getting off the ground, was the easiest way to outsource Snapchat’s infrastructure while its small team built the app’s product... When Evan Spiegel and Bobby Murphy first released Snapchat in 2011, they ran the service atop...

Source: Meelo Logic.

A Lesson for Advertisers on Facebook

By Tom Dotan and Peter Schulz · Jul 21, 2015 10:35am PDT · 1 comment

The simple text-only status post may be the fastest way for brands to reach out to their fans on Facebook. But, as a proportion of responses, people aren’t interacting with them all that much. Instead, it’s the media-heavy posts like videos and to a lesser extent photos that are driving the most comments, likes and shares for brands. That fact... The simple text-only status post may be the fastest way for brands to reach out to their fans on...

FCC Chairman Tom Wheeler. Photo by Bloomberg.

Coming Soon: More Text Spam

By Steve Nellis · Jul 21, 2015 7:00am PDT

FCC Chairman Tom Wheeler. Photo by Bloomberg.

Coming Soon: More Text Spam

By Steve Nellis · Jul 21, 2015 7:00am PDT

In an overlooked but important change, the Federal Communications Commission earlier this month paved the way for apps to let users blast marketing texts to their contacts. That sort of marketing—increasingly used by ride-hailing apps like Uber and Lyft to send referral codes—has long been a grey area within federal telemarketing rules. Lyft and... In an overlooked but important change, the Federal Communications Commission earlier this month...

Qualcomm CEO Steve Mollenkopf. Photo by Bloomberg.

Qualcomm Braces for Layoffs This Week

By Amir Efrati · Jul 20, 2015 12:53pm PDT · 1 comment

Qualcomm executives are preparing to lay off as many as several thousand employees, according to people inside and outside of the chip maker. The cuts underscore the continued challenges of being in the high-end smartphone business. Prices are falling, and $50 Android smartphones are a reality in countries like India and China. Qualcomm, which... Qualcomm executives are preparing to lay off as many as several thousand employees, according to...

Tesla CEO Elon Musk. Photo by Bloomberg.

The Truth about Tesla’s Cash Burn

By Alfred Lee · Jul 20, 2015 7:00am PDT · 1 comment

In its most recent quarter, Tesla Motors reported negative free cash flow of $558 million, raising alarms from analysts that the company could run out of cash by year’s end. Even the announcement of a new $500 million credit facility last month has not quieted speculation that the company will need more money. “They may need access to further... In its most recent quarter, Tesla Motors reported negative free cash flow of $558 million,...

Lonely with the Apple Watch

By Jessica E. Lessin · Jul 17, 2015 7:00am PDT · 2 comments

I’ve begun to notice something odd about the Apple Watch: I don’t see many early adopters wearing it. Now, before you Apple fanboys and girls accuse me of being a hater, consider this. I own and am a fan of the Watch. (I like the notifications.) But unlike other Apple products, which spread through Silicon Valley circles as fast as assistants... I’ve begun to notice something odd about the Apple Watch: I don’t see many early adopters wearing...

Netflix CEO Reed Hastings. Photo by Bloomberg.

The Story that Matters About Netflix Stock

By Martin Peers · Jul 16, 2015 7:01am PDT · 1 comment

Netflix CEO Reed Hastings. Photo by Bloomberg.

The Story that Matters About Netflix Stock

By Martin Peers · Jul 16, 2015 7:01am PDT · 1 comment

Even among boom-fueled tech stocks, Netflix is having a remarkable run. While Google and Facebook have risen 10 and 15 percent respectively since the start of the year, and Amazon is up 48 percent, as of Wednesday, Netflix has doubled in price. If you are looking to understand why, look less to financials and instead towards momentum—a lesson... Even among boom-fueled tech stocks, Netflix is having a remarkable run. While Google and Facebook...

Yahoo CEO Marissa Mayer. Photo by Bloomberg.

The Trouble with Yahoo’s Mobile User Metric

By Amir Efrati · Jul 15, 2015 7:00am PDT · 1 comment

Marissa Mayer has touted her transformation of Yahoo into a “mobile first” company, and each quarter she discloses the number of people per month who visit a Yahoo property through a mobile device. As of April, it was 600 million, and next week she could disclose a slightly higher number during the company’s second-quarter earnings announcement.... Marissa Mayer has touted her transformation of Yahoo into a “mobile first” company, and each...

Twilio CEO Jeff Lawson. Photo by Bloomberg.

Inside the Developer Conference Bubble

By Steve Nellis · Jul 14, 2015 12:42pm PDT · 4 comments

Nearly every week in San Francisco, Moscone Center or Fort Mason swell with lanyard-laden nerds toting swag and talking code. It can only mean one thing: Yet another developer conference thrown by a software company. In the past, such conferences tended to be the domain of the biggest tech companies like Google, Apple or Facebook, which use the... Nearly every week in San Francisco, Moscone Center or Fort Mason swell with lanyard-laden nerds...

Source: PitchBook

Indian Tech Boom Lifts More Startups

By Martin Peers and Peter Schulz · Jul 14, 2015 7:01am PDT

It’s not just about Flipkart. Venture capital investment is pouring into increasingly well-known Indian companies like Flipkart and Snapdeal at a rapid rate. But the boom is also fueling the valuations of lesser known companies like Zomato and Quikr India that are poised to become bigger names. It’s not just about Flipkart. Venture capital investment is pouring into increasingly well-known...

Facebook vp of messaging products, David Marcus. Photo by Bloomberg.

Facebook Preps “Moneypenny” Assistant

By Amir Efrati · Jul 13, 2015 6:01pm PDT · 7 comments

Facebook vp of messaging products, David Marcus. Photo by Bloomberg.

Facebook Preps “Moneypenny” Assistant

By Amir Efrati · Jul 13, 2015 6:01pm PDT · 7 comments

Facebook is planning to join an intriguing frontier of the Internet: virtual assistants on mobile devices. The company is working on a feature within Facebook Messenger that allows users to ask real people for help researching and ordering products and services, among other tasks. It’s being referred to internally as “Moneypenny,” according to... Facebook is planning to join an intriguing frontier of the Internet: virtual assistants on mobile...

Welcome Alfred Lee!

By Jessica E. Lessin · Jul 13, 2015 2:45pm PDT

We are so happy to welcome Alfred Lee to The Information as our seventh reporter, based in New York. Alfred, who comes to us by way of a Knight-Bagehot fellowship at Columbia University, will be covering the growing grey area between the public and private tech markets—the investors (mutual funds, hedge funds) straddling both and deals and deal... We are so happy to welcome Alfred Lee to The Information as our seventh reporter, based in New...

The duck pond where Allen & Co attendees relax and meet. Photo by Amir Efrati.

Our Notes from a Subdued Sun Valley

By Jessica E. Lessin · Jul 13, 2015 10:47am PDT

Sun Valley, Idaho—There was something more mellow about Allen & Co.’s Sun Valley conference this year. Maybe it was the dwindling press corps—whittled down in parallel with reporters’ access to executives over the years. Maybe it was the lack of big deals and news in the press. Last year, attendees were buzzing about Google’s falsely-rumored... Sun Valley, Idaho—There was something more mellow about Allen & Co.’s Sun Valley conference...

Art by Sam Lessin.

Modest Proposals

Startups Need Shade—Not Just Time—To Grow

By Sam Lessin · Jul 13, 2015 7:00am PDT · 3 comments

I was having breakfast recently with a friend who argued that Nest, the hardware company, only existed because it chose to do something that wasn’t important enough for a company like Apple to do because the market wasn’t big enough to move the needle for it. It reminded me of an old Mark Zuckerberg trope that he has repeated many times in... I was having breakfast recently with a friend who argued that Nest, the hardware company, only...

Tech’s Privilege Barrier

By Jessica E. Lessin · Jul 10, 2015 6:58am PDT · 2 comments

Tech’s Privilege Barrier

By Jessica E. Lessin · Jul 10, 2015 6:58am PDT · 2 comments

Behind the articles we write about hot startups and funding rounds is a truth that needs a headline of its own: The technology industry is not as meritocratic as it may seem. For this column, I am focusing specifically on entrepreneurs, the people who found companies and beat the odds to turn them into something big. By many measures, the... Behind the articles we write about hot startups and funding rounds is a truth that needs a...

Huawei device group head Richard Yu with the smartwatch. Photo by Bloomberg.

Google’s Best Android Friend

By Amir Efrati · Jul 9, 2015 12:13pm PDT · 2 comments

When Huawei Technologies releases a smartwatch later this year, there’s a good chance it won’t catch on. Given Huawei’s little known brand name in many markets around the world, the prospects for its Android-powered watch appear bleaker than those of earlier ones from companies like Motorola Mobility, Samsung Electronics or LG Electronics. But... When Huawei Technologies releases a smartwatch later this year, there’s a good chance it won’t...

Ellen Pao. Photo by Bloomberg.

Gender Not Only Issue In Tech’s Workplace Complaints

By Reed Albergotti and Peter Schulz · Jul 9, 2015 7:00am PDT · 5 comments

When it comes to discrimination complaints in the tech industry, it turns out that gender is far from the only issue. Age and disability were cited nearly as often as gender in California workplace discrimination complaints filed against major tech companies over the past three years. When it comes to discrimination complaints in the tech industry, it turns out that gender is far...

Comcast CEO Brian Roberts. Photo by Bloomberg.

For Comcast, Online Advertising May Be Next Big Play

By Martin Peers · Jul 8, 2015 12:22pm PDT

When Comcast chief Brian Roberts runs into fellow media moguls at Sun Valley this week, he might feel a little defeated. He was forced to abandon the takeover of Time Warner Cable in the face of regulatory opposition, while rival AT&T is expected to complete its DirecTV purchase and surpass Comcast as the biggest pay TV operator. Meanwhile,... When Comcast chief Brian Roberts runs into fellow media moguls at Sun Valley this week, he might...

GoDaddy’s Quest to Master the Upsell

By Steve Nellis · Jul 8, 2015 7:00am PDT

Q&A

GoDaddy’s Quest to Master the Upsell

By Steve Nellis · Jul 8, 2015 7:00am PDT

Integrating Microsoft Office 365 email with a new domain name used to require clicking through 22 screens. But sign up through GoDaddy, and it’s just one; the Scottsdale, Ariz.-based firm takes care of the rest of the work automatically, says CEO Blake Irving. It’s all part of the Web domain seller’s strategy to draw more revenue from small... Integrating Microsoft Office 365 email with a new domain name used to require clicking through 22...