Axios

On the second day of its annual developer conference, BUILD, in Seattle, Microsoft's announcements ranged from mixed reality controllers to new developer tools. Here's everything you need to know:

Among Microsoft's many announcements on Day 2 of its Build developer conference was a long-hoped for one: Apple will release a Windows Store version of iTunes by the end of the year.

Why it matters: It's critical for Microsoft to get more key apps into the Windows store — and iTunes is definitely one of those.

It's also important for Microsoft's new Windows 10 S operating system, which only runs Windows Store apps. Without a new version of iTunes, there would be no (authorized) way to directly connect an iPhone to such devices. For Apple, the move also allows owners of Windows 10 S to connect to its Apple Music subscription service, eliminating a reason some might choose a rival service.

More and more people are setting up cameras in and around their homes, but are they really getting valuable information from those devices? Lighthouse, a new Silicon Valley startup, doesn't think so.

All about AI: Lighthouse says that artificial intelligence is what makes its home camera system more useful than others. In addition to a camera, Lighthouse's device is outfitted with a 3-D sensor that captures a more detailed view. The company's A.I.-laden software is then able to detect specific people, pets, and movements.

For example, a user can open the companion mobile app, and verbally ask if their dog walker came by that day. Using natural language processing, Lighthouse then identifies footage of the dog walker and brings it up. Right now, however, the range of elements it can identify is limited to what the company has "taught" the software to recognize, though Lighthouse says it's continuing to add more based on user feedback.

Facebook has added a former top staffer for now-Attorney General Jeff Sessions to its policy team focused on the administration, the company tells Axios. Sandy Luff, who last worked for Sessions as his Legislative Director when he was serving in the Senate, will be Director of Executive Branch Public Policy at the tech giant. She also worked with the Trump transition team.

Facebook is staffing up its policy communications team, too. It has hired Nu Wexler, a veteran Democratic communications staffer who is well-known to the tech press as Twitter's former spokesman on policy issues.

Why it matters: Tech companies are having to adapt quickly to Trump's Washington. This hire gives Facebook a valuable link to an influential member of the administration who has taken positions on immigration and surveillance that don't sit well with Silicon Valley. Former Sessions aides — most notably Stephen Miller — also hold key administration posts.

Snap revealed yesterday that it missed Wall Street estimates on revenue, earnings and user growth in its first earnings report to investors since going public in March. While the self-proclaimed camera company saw enormous (but expected) advertising growth, its burn rate nearly doubled from last year's first quarter, weakening its case for eventual profitability. Executives also faced numerous questions from investors concerned about ways Facebook's copycat features may have impacted its sluggish user growth.

Why it matters: Snap's pitch to investors when it went public was that, although it wouldn't be profitable this quarter, user growth and investments in ad technology would bring profitability in the foreseeable future. Based on reactions to its first earnings call, investors aren't confident. Shares were down nearly 25% after trading Wednesday to roughly $17.5 per share, negating any growth it experienced after going public at $17 per share in March.

Verizon has agreed to buy StraightPath Communications for more than $3 billion, topping AT&T's earlier $1.6 billion bid, WSJ reports, citing people familiar with the deal. A deal may be announced Thursday. [Update: Here's the formal release]

Why is StraightPath so sought after? Because it has high-frequency airwaves that will be crucial to building out 5G networks. Both AT&T and Verizon are working on building out 5G technology and need those airwaves, which travel short distances, to support robust coverage. AT&T ultimately declined to match Verizon's bid, per WSJ.

Snapchat's parent company pointed to mobile technology as it sought to explain user growth (and lack thereof) during its first earnings call since going public.

Bottom line: Snap essentially admits that its service works best for people in countries where iOS phones are affordable and popular, and mobile plans are so cheap that everyone is online all the time on their phones. Here Facebook has an advantage over Snap as it's been investing for years into ways it can make its apps and service accessible for users in emerging markets.

Is Snap CEO Evan Spiegel scared of Facebook, which has been aggressively cloning its features?

"Just because Yahoo has a search box, doesn't mean that they're Google," Spiegel told analysts during his company's Q1 earnings call, chuckling when he heard the question. He added that "creativity" is most important to Snap, hinting the company isn't worried as long as it continues to come up with new ideas even if competitors copy them.

Why it matters: Since Facebook-owned Instagram rolled out a blatant copy of Snapchat's Stories last summer and publicized the success of its version of the feature, Snap has faced increased concerns over its ability to withstand the attack. At Facebook's annual developer conference last month, CEO Mark Zuckerberg also made headlines when he announced the company's new focus on cameras and augmented reality, reminiscent of Snap's "camera company" tagline, further fueling the rivalry.

Snap's hotly awaiting first quarterly results are in, and the company missed Wall Street analyst expectations for both revenue and earnings. Shares are down more than 20% in after-hours trading, while rival Facebook has seen a small stock bump.

There wasn't a brand new version of Windows or a flashy new Surface tablet unveiled, but here's what Microsoft announced Wednesday at its Build developer conference. Here are the highlights:

• Windows 10 is now on 500M devices: Microsoft originally thought it would reach one billion devices within the first couple of three years, but acknowledged last year that it would miss that goal. Additionally, the company said it now also has 100 million commercial Office 365 monthly users.
• Microsoft introduces Azure Cosmos DB: The company introduced a new database for developers running cloud-based apps that provides more options for optimal app performance.
• 130,000 developers already using its bot toolkit: Microsoft debuted its Bot Framework a year ago and it now has 130,000 developers, up from 46,000 developers in September,.
• Visual Studio out for Mac: Highlighting a trend towards embracing rival platforms, Microsoft announced that its flagship code editing software, Visual Studio, is now publicly available on Mac.
• Microsoft Teams: Microsoft is making it possible for any developer to publish apps for Teams, its new workplace chat tool, into its app store. Additionally, it will soon roll out new features, including third-party notifications and the ability to pull in commands from other apps.
• Cortana Skills kit in public preview: Similarly to Amazon's Alexa, Microsoft is making tools available for developers to create integrations and apps for Cortana, its digital voice assistant.
• Bots in Bing search results: Microsoft's search engine will now include bots as part of search results.
• Video Indexer: Microsoft debuted a software tool that can analyze videos and make their contents searchable.
• Emma watch for Parkinson's: A Microsoft Research team demoed a watch that can help people with Parkinson's steady their hand tremors.

The event continues Thursday with a keynote from Windows unit head Terry Myerson.

After sleeping on the news of Apple's acquisition of Beddit, I still think it is too soon to say what will become of the technology. The company isn't known for keeping products alive once it buys them. Beats' headphones business is an obvious exception but that was a much, much, much larger company with a huge established business and brand. Beddit, by contrast, is a tiny company from Finland. But, what about the tech? As for where the technology goes, one likely candidate is the Apple Watch. Unlike some other smartwatches, Apple doesn't already have sleep tracking built into Apple Watch. That's likely in part because the device still needs to be charged every day. But as battery life improves, the watch would be a logical place to see some sleep-tracking technology show up. And Beddit already works with Apple's HealthKit.That said, Beddit's technology is a sensor that goes on the mattress rather than a wrist-worn product like some rivals. So perhaps Apple will keep it around after all. I'm kind of tossing and turning on this one.

Just over two months since it went public, Snap is gearing up to release its first quarterly earnings report at market close today.

The stakes: Snap's earnings will be under heavy scrutiny. It commanded a massive valuation at IPO despite being unprofitable and having far fewer users than Facebook, so it will have to show improved financials and continued growth. It also must fight growing perceptions that Instagram's cloning of its most popular features is a serious threat.