>> live from pier three in san francisco, welcome to "bloomberg west" where we cover technology, innovation, and the future of business. here is a check of the headlines. u.s. stocks got hit hard today. the main reason was disappointing earnings.

don thompson gone. president and ceo both titles. qualcomm has cut its forecast for revenue, increasing competition in china. which had a host of problems. bloomberg had all reported shares getting hammered in after-hours. it appears that the latest round of ibm layoffs and started.

worker's rights groups have notified -- the exact number is unclear. he has left after being passed over to lead the division at ibm. facebook's mobile machine -- cranking out 3.8 5 billion. $296 million, percentage of ad sales from mobile is 69% over the quarter. it is a mobile company. the social network says it has more than a billion active users. for more, i'm joined by david kirkpatrick in new york, author of "the facebook effect.

" she is presudebntident a strategic partnerships. how do you see this playing out? >> it is almost getting boringly predictable. they have beaten nine or 10 wars in a row. i thought it was so interesting how zuckerberg answered questions about putting the wrong emphasis in the developing world. he takes such a long-term view. >> yes i heard that. i love that. it was an amazing moment. >> long-term. >> you are not an investor if not long-term. >> if you really want short-term, do not invest with us. corey, i have to say, the thing

that most blows me away -- three years ago they went public. now they are up to -- they doubled their mobile ads last year in revenue. these guys have turned on a dime. someone said today, one of the great analysts, i forget his name -- this is a historic thing in business. to achieve this mobile ad result. it really is amazing. >> you can change a fan belt why the engine -- while the engine is running. building on your work of course. >> it is remarked will. when i left facebook, we were not even close to monetizing mobile. it was very much a growth product. consistent with mark's comments about trying to reach the whole

world. we were really focused on reaching users, new users by mobile devices -- it was probably the only device they had access to. mobile products that would reach to the ends of the earth not focusing on monetization. at the same time, i am not surprised by facebook's ability to get numbers in this category. >> there were 5 million mobile only users. i calculated the percentage of active users, it was 37.8%. well over a third of the users. 30%. only a mobile. was there a believe in the early days that this is where it was going? or that we should give our toes and see what happens -- deip our toes and see what happens?

>> hearing about facebook growing in the u.s., some of it was inbound initially. a lot of it was an early recognition on the part of mark and the management team. outside of the united states and canada, for the most part were going to be acquainted with facebook. it really opened with the advent of the smartphone, the iphone and the developer platform. >> was it the letter in the s-1? >> yeah, i read that. it is remarkable. the new admin they have introduced. the phone may have introduced today, the network infrastructure -- other types of native content in this experience is really remarkable. the fact that mark wrote this

letter on the phone is not surprising. the hardware is there the software is there. >> they spent $1.1 billion in rea research and development. both numbers are near record. what does it say about their plans for the future? >> long-term, long-term. if they are thinking that virtual reality is the next space for computing, that takes a lot of experimenting to understand. that is just one of a ton of things they're doing. a lot of that money is going into projects a business thing that has a consortium quality to it. there are a lot of things we got here about, i'm sure. can i ask allie a question? >> please do. >> one of the things that

continues to strike me -- and i do know the guy, is how good a ceo mark is. i look at this chain of results, one after another. he is not trying to manage short-term financially. he is in such a good job hiring people they can do that even as the business improves. i feel like i have not seen a business leader this good in my career. covering business, i'm curious i you saw this working for him? >> it is very consistent with the market i remember from the early days. always the long-term view. connecting the world, making it more transparent. mark really cares about something, that is consistent. >> allie rosenthal thank you. more after this.

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>> this is bloomberg west, i am cory johnson. tensions exploring -- exploding on the border of lebanon. at least two israeli soldiers were killed in the deadliest attack against israel since 2006. withdrawals from greek bank, 11 billion euros. in the run-up to the election anti-austerity parties to power. china's government goes after those that failed to crack down on shady goods, misleading information, and bribery.

last week, jack ma discussed his relationship with the chinese government. >> and i told my people in team be in love with the government -- do not be in love with them. do not marry them. i think that if the company only thinks about taking money off the top, that company is rubbish. >> alibaba tells bloomberg news that they are working to fight fraud. speaking of alibaba, yahoo!. what to do with a $40 billion stake in the company. spendceo marissa mayer said a lot

of thought went into this. >> after an exhaustive review we want to maximize value for our shareholders. to increase efficiency and decrease uncertainty. >> she did look exhausted. the market doesn't think much. bryan womack she called an exhaustive review. she has talked about this. they spent so much time and money take a little piece of the yahoo! business and just been it off. that's it. >> apparently, the irs is ok with this. there is a new way of saying hey, we can take this stake and make shareholders happy. by not having this huge tax debt.

this fall investors and not like it. >> a spinoff is fairly simple. as a citizen of this great nation wanting mine roads and bridges to be safer, my military to be stronger -- missing 14 billion in revenue is fairly amazing. >> the $14 billion is a lot of money. >> even to me. [laughter] >> there is a lot of questions about how we do our taxes. wait wait, how did we lose 14 billion? >> kim goldman the cfo should get kudos. for coming up with a plan for what is left over. you are over your base sales numbers again with the core

business that is yahoo!. despite the billion spent in acquisition. >> the fourth quarter was disappointing. so was the outlook for this quarter. it was not a great quarter. marissa told me in an interview that look, there is going to be ups and downs. >> she told you that because the sales numbers are downs and downs. >> there is a little bit of growth, not a lot. declining revenue it again in the fourth quarter. social is pressuring yahoo! the attention is turning to the core business. >> they had a billion dollars in revenue, a billion and more. less than a year ago this time

in the same quarter. there generating profit, generating cash flow. the market still essentially values in at zero. >> yeah, maybe yahoo! is in google. it does have a real business hundreds of millions of users. do not count them out. we will see what happens when it all begins to unravel thanks to ali baba. >> when you talk to those people doing that evaluation -- the media business. do you get a sense that they are really building these properties? >> i think right now, there does seem a sort of dual path. marissa is investing in both

those things. we have sitcom's coming out. >> the press release that ist is the biggest. >> you can make arguments on both sides. there are both sides of the strengths. >> a big lawsuit brought by home away. saying consumer laws favor airbnb. you can watch a streaming on your tablet an online. ♪

>> i'm cory johnson this is bloomberg west. a san francisco court dismissed a lawsuit by home away. challenging and airbnb law -- saying it was restricting short-term rentals in san francisco. with me right now to discuss this is the cofounder and chief strategist. >> we think this is really good news for home away. this clarifies we are not a hosting platform. we are a service. the city argued we were not a hosting platform.

we set from beginning that we have operated quite well for the several decades. >> i wonder what this might means for similar struggles in different jurisdictions. >> they remain unresolved. by dismissing and saying they -- they dismiss the entire suit. punishing residence versus nonresidents. having equal rights is still something we need to decide. whether or not this is something we should be doing. >> i'm sort of curious about what airbnb is in a given city. when the residence of these places -- more dense at times

like in new york city when people are in the hamptons for summer. >> it started as a vacation destination. of course, there are growing pains as that happens. what you're going to see, people are not converting entire buildings to short-term. they're not running their homes short time. a typical owner wants to use their home a lot of the time. i don't think a lot of this trip homedraconian thing is going to happen. >> want to talk about the super bowl. >> this is an event where tens of thousands of people are going to phoenix. they're looking for someone to stay. what is going on? >> the demand for our phoenix members has been quite high --

of about 200% over the months. people seeking accommodations. at this point, it is fairly booked up. we had about 3600 bookings about 500 are available now. 200 came out in the last week or so. demand is driving more supply. this is driving people to list their home in phoenix. true, they cannot support a $300 ticket. this is a perfect opportunity -- high demand, you are going to be able to see if you like it. >> what is it mean to be optimized for big events? the world series, the nba finals? what do you do to get ready, on the backend? >> we work with event planners. we worked with sxsw in austin.

which brings massive amounts of people, far more than the hotel system can accommodate. we work with event organizers on the site, we reach out to the community. >> what you do? call them up? >> they're looking for, nations. the special olympics in los angeles. we are helping folks find homes for the games. >> it is a non-tech way to solve the problem. to call on the phone. >> it is. organizers have a lot of challenges. >> interesting stuff. more on the super bowl 70,000 fans -- can the nfl provide enough bandwidth to deal

with all the selfies, facebook posts the i'm at the super bowl and you are not post? the chief information officer is going to join us next with that. ♪

super bowl xlix in scottsdale. can fans get on line? the nfl is wi-fi standards for all of its stadiums. very interesting challenge you have here with this big game. >> all of our games present the big challenge. nothing is quite like the super bowl when you have all the fans

and the amounts of media. it definitely creates a challenge for connectivity. >> and want to take you back in time back to 2008. it was a very different technology world. the iphone had just launched and there was no instagram. the best-selling phones were made by no kia. it is a different tech world. how do you rewire them? >> you just have to work really hard to make sure that their continuing to reinvest. compared to 2008 the connectivity was focused on download abilities. now you see fans as you said earlier creating their own content and wayne to publish that themselves so that is what it is about, making sure that all the clubs especially when you're hosting the super bowl that you have the latest and

best connectivity. from wi-fi pervasive through the snow -- from the game. >> the nba was not doing anything in that regard. talk to me about why the nfl is trying to create some sort of wi-fi standard and what the standard is. >> if you look across our stadiums, they are in varying stages of age and some have recently opened like a 49ers new stadium that has the latest and greatest. for investment and planning purposes the wanted clubs to know what the expectation was and to make -- letter fans get with a want. they want to be connected. the at-home experience has

gotten amazing. we know the best place to watch an nfl game is an nfl -- in a stadium. we thought it was important to make sure clubs understood that there was a minimum requirement and work hard through many partners to help them get to that standard. >> i have been looking for someone to blame for the crummy 49er season. it occurs to me i could blame you. the new stadium is a lovely place. the foot is terrific and the wi-fi a spectacular. after halftime no one is going back to their seats. the home field advantage is not happening. it is interesting how you put them into the seats as opposed to having this experience that may not involve the game.

technology should be about augmenting the game experience and not replacing the game experience so we do not only give standard connectivity guidelines but we also work closely with the clubs to make sure the in stadium experience creates an awesome game experience for fans and players that are on the field. fans are in their seats cheering and not in line somewhere else or doing something else. it is calibration that has to happen as you go along to make sure you could keep the game at the center of attention and not get carried away by the cool devices and things you can do. >> i was catching a game and those fans are so passionate and so loud, it was incredible. when you meet with these teams how does this integration

happen, you say you work closely with them. are there the cio's as well? >> the producer -- there is a good bit of coordination they goes on between the technology that is available along with will happen. using the super bowl as an example we have programmed things that will be happening that is coordinated with the stadiums that we will be ready for super bowl xlix. it should enhance and augment the game experience. we do not want people looking down on their small screen to watch the game. we want them watching the game on the field and augmenting that experience with their devices. it will take a bit of coordination. >> hopefully there will be some wi-fi-enabled scales so they can

weigh the footballs. i cannot wait for the game. facebook will -- has a massive amount of user information that they gather but how do they find it, how do they sort through it, what is the technology behind that? we will talk to the ceo of the company that provides analytics for impatient people next. ♪

>> from server farms to usb's, changing data storage. the company that helps companies create -- locate data points quickly.

the ceo ann johnson joins me. i love the notion of your company because there is so much more data being gathered by companies. >> this means interactive analytics and our goal is to make data part of everyone's day. everyone will be able to integrate data into every decision they make. what we have is a back and an integrated front-end that allows people to explore and interact with their data in seconds. and not only data but look at behavior over time. your machine behaviors, your user behaviors. you can group people. your most engaged and are least engaged users. >> you say everyone, i am trying

to imagine. >> that is a visual interface. you have drop-down menus for all of your column names or the values. really easy to use. when you have clinics and you went to windows and everything was there and it was easy to use. >> why is this possible now? >> my background is intel. it was clear how fast storage was getting cheaper. >> a corollary, storage is getting cheaper. >> in the 70's it cost $200,000 per gigabyte to store data. >> it was when it was $200,000

that a lot of these data tools were invented. they saved their inventory and their accounts. as soon as that data [indiscernible] data tools were expecting, that is the kind they were expecting. it is two cents per gigabyte to store data and people are saving everything. continuous time data. we have reimagined how you would interact with continuous time data versus the slices. >> tell me the inspiration for this when you notice this problem. >> my cofounders came out of facebook and facebook is a marvel. >> you were married to your cofounder. >> i have to cofounders but they both came out of facebook.

and what they saw was that facebook was able to pull this data from all over the world to load your home page. if you take that performance >> where is that data coming from? >> your data may be in one data center but all your friends is all over and they are able to pull that and load the home page quickly. if you look at data and with data processing tools, they are outdated because they are thinking about data as this one slice of time. the applied this performance mindset. you can group behavior in seconds. >> does facebook have a tool like this or does facebook need a tool like this? >> facebook has a tool that is a

much earlier iteration that my cofounder made and people use it for slicing and dicing data. we have added an easier way to look for behavior patterns. it could be from machines, you want to know which ones are secure. you want to understand how your most engaged users differ from the least engaged users. >> thank you very much. we're here to check the stories making headlines. cyberattacks are costing businesses $400 billion a year. the number one and number two risk factor at every company. >> in certain specialist lines there is significant growth. cyber being the best example. to give you two numbers, the

cyber risk premiums were running at about 850 million. they have tripled. the demand is every -- ever-increasing and the inquiries are ever increasing. >> he is seeing more capital going to reinsurance. a panel of exit -- of experts may recommend limiting the so-called right to be forgotten to websites within the eu according to one unidentified member of the panel. google has received more than 200,000 requests to remove more than 750 thousand links from its website so far. and the first profitable year in 2012. sales are at half the pace of the predecessor. they lowered their sales outlook

way 7%. facebook, google, twitter have released a lemming diversity reports in recent months. what can silicon valley do to turn the tide on issues like race and gender and get rid of the tech bros who are turning up their collars and turning up some noses in technology? ♪

>> i am cory johnson and this is "bloomberg west." recent numbers show a very white and male workforce. they have some advice to help thousands of minority students become engineers. this -- we talk all the time about how tough it is for these companies to make these changes.

why is it so hard? >> several reasons. they are pointing to the pipeline lack of quantity of students especially from underrepresented populations. what we have learned over 45 years, one of the hardest things is corporate culture. as students matriculate at of college and go looking for work, it defaults to a referral system. we notice a lot of companies hire at certain schools and only certain universities. >> a recruiter once told me that google -- they were not the colleges that this person has ever looked at. >> we have been at it for 44 --

45 years. we were founded to address this issue in 1970 and partnered with industries they recognized, they were the startups of their time. they have been working at it for quite a while. the difficult thing is like you said, there are black colleges and tribal colleges and universities as well. great students, i can tell you that every student we work with, they are all s.t.e.m. majors they are used to working on projects, we are preparing them for what employers are telling us. this is what we are looking.

for. >> when and how when you deal with the students -- do you deal with the students? >> we are -- [indiscernible] we are all the way from elementary school, what we call the precollege programs into community colleges and undergraduate institutions. a student can come in and follow until the graduate or they might find out when they start at community college. they intersect at different points. >> you're trying to find students and get them ready to walk out of college with the right kind of skills so they can get the attention of recruiters. >> absolutely. the a stands for achievement. students were not being academically prepared and in that sense, there are certain gatekeepers.

one is that you take algebra early enough so that you are in calculus in high school. and you are ready for the rigor of that first couple of years. nsf and this great research shows that 40 or 50% of majors either drop out or change majors within the first two years. it is hard. we like to say you are taking four ap classes at once and that is your life. and you are transitioning. you are a kid from a rural town in california and now you are in a major, some universities are like big city so -- cities so that there are some cultural issues there and they have to adapt. we remember in the first weeks and months of college, it is a strange place and sometimes you feel like you do not belong. >> great stuff and great work you are doing to the benefit of a lot of people. appreciate it.

the bwest byte, focusing on one number that tells us a whole lot. phil mattingly joins us from new york with more. phil, what do you got? >> the bwest byte is 600,000. six hundred thousand dollars. that was the fcc fine in marriott international for blocking personal hotspots at one of their hotels in nashville , the gaylord. the fcc is warning other businesses it is serious. in an enforcement advisory it is witnessing a disturbing trend among hotels and other commercial establishments blocking personal wi-fi on their premises. ma'am -- marriott had petitioned the fcc to change its policy. it makes clear that it views this as unlawful and interference and with the public's right to their airwaves. if there was any question, the fcc went out of their way to

answer that. >> i thought that was amazing. why would marriott do this, why do hotels not want people to have personal wi-fi? >> there has not been a good explanation for it. there was an apology from marriott and then this push to get some type of formal ruling from the agency on it which underscored the fact that whether or not they felt they were doing something wrong, they wanted to know the rules of the road to see if they could push it even further at some point. the fcc chairman tom wheeler saying under no certain terms that this is the way it is going to be going forward. nobody can do this and there will be significant fines of other companies or change do this going forward. >> tough for from the fcc. probably not the last. you can get the headlines all the time on your phone and tablet and bloomberg radio.

we will see you tomorrow. ? ♪