emily: hewlett-packard just out with earnings. we will look at how it could impact meg whitman's land to flip the company. -- plan to flip the company. i'm emily chang. coming up, solar city's plan to tie up with tesla's battery -- they may not work so well yet. i will be joined by the ceo of solar city. plus, how twitter plans to make more money in five not so easy steps and what that tells us about where social media is heading. and why a tech bubble may be a

good thing for hollywood. i will give you a sneak pre--- sneak peek with my guess from tonight's studio 1.0. first, to the lead -- hp sales topping estimates -- the company seen strong demand for corporate servers. what could the changes mean for hp's split? we have assembled an expert panel. our editor a large, cory johnson is here with me in san francisco and an on-screen of awesome is from new york. give us the headlines. guest: everybody is focused on the split of the company later in the year and what we need to see from hp is in a competitive environment is topline growth.

across pcs and services, it has been a mixed bag. we had lenovo last night and hp today. the environment remains challenging and hp is executing the best it can, focused on free cash flow and cost cuts. emily: how to these numbers impact the spinoff and acquisition target? guest: i kind of do agree but they are not growing in the right places. the unit numbers on the pc business were not that bad that when you get into the core third platform not growing, shrinking 5% to see enterprise services continue to struggle and margins relatively flat maybe up one point, that's not the kind of

growth you are going to get. they are just not seeing that overall demand. how does it impact the split? i don't think it does. it's interesting to see kathy going over to be the ceo of hp ink which is interesting but i don't see how it impacts the company near term. betty: could -- emily: could someone acquire these units after the spinoff? cory: i don't know if that's the cards and why would they want to? servers were up 11% but that business unit was down. if you go through the major business units of this company and everything they reported, every single business unit was in decline. personal computer sales revenues down 5% even though units sold were up.

they are slashing prices on these things even when they sell more, they have less revenue. printing revenues, the strong suit of this company down 7%. the server business was doing better, but in spite of that the enterprise group was down 1%. software was supposed to be the great hope for this company. it is why they spent billions of dollars to acquire other businesses, but software was down 8% year-over-year. all their major business units and their minor business units are shrinking and that's not good for this company. emily: i want to talk about what is going on with china because hp just sold a big stake of its chinese server store business. this is sort of like the m.i.t. of china. why did they do this and could others follow their lead? guest: the short answer is yes.

it has been difficult to be a western company selling in china when you have government buying agreements is a you have to buy from chinese companies. hp has sold a 51% stake to this new entity and it's not just networking. they have sold servers, they have sold storage and parts of the networking business. 51% to this company. by our estimates, that will have 16.5% market share. that should allow hp to be a more attractive suitor to business in china. the question is are the products any different? will that make the government feel comfortable? i give them credit for the mover becoming in china. guest: what happens if hp starts selling its products outside of china? how do they differentiate

themselves relative to the hp rand in southeast asia, which is one of the great growing areas for lenovo. we are talking about pcs being such a poor business. how is lenovo able to grow there? these are things to watch out for, but at the end of the day i want to see topline growth. emily: thank you all. in a couple of weeks i will be speaking with meg whitman herself, the ceo of hp from hp discover conference. that will be on my show "studio 1.0." the hbo comedy "silicon valley" isn't just a hit, it is especially popular in the world it lampoons. tech executives have made

cameos. i recently sat down with the creator, mike judge and we talked about all the research they put into the show to get it right. guest: when alex started on it, we had a desire to do again and find out more about the real world. it just kept occurring to us that i don't know what these people are doing. i used to program a little bit but i wasn't building absent platforms -- i was doing a different kind of test engineering thing. the more we dug into it the more great stuff we found. emily: we talked about the show 's haters, including elon musk. at last year's for mere, he said "i feel mike judge has never been two burning man, which is silicon valley. if you haven't been, you just him get it." guest: elon musk is at the top of the game here.

he might see things a little differently. i'm not going to ever say that i know silicon valley better than elon musk. emily: for the record, i did ask mike judge if he has ever been two burning man, and he is not. be sure to catch "studio one" tonight right here on bloomberg television. coming up, a big step for space tourism. details next. less, the plans to put solar powered batteries in every u.s. home. i will be joined by the ceo of solar city, lyndon rive next. ♪

emily: one story we are watching -- the house passing a bill meant to spur commercial space ventures, but not without speed bumps. a key part of the bill bars the federal aviation administration from closely regulating space tourism for up to 10 more years. democrats want rules in place sooner than that but were voted down. the hands off approach is what spacex and virgin galactic want but a separate measure is headed to the senate floor and is seen as far less favorable to the industry. speaking, i've got to mention google and dj skrillex -- they

just designed futuristic covers for android phones that go for $40 a pop. but there is more -- if you i won, you get a wallpaper of ever-changing photos taking from -- taken from space. google launched 13 satellites for this project. starting a revolution -- that is what some have said tesla ceo elon musk is doing by breaking into the home battery business. it hooks into solar panels raising the possibility of american households getting off the grid. solar city is partnering with tesla to bring it to market. solar city has seen customers grown 97%. running me now is solar city ceo lyndon rive. there's a big question of whether or not these batteries make financial sense. the battery you guys are

offering is barely enough to power a vacuum cleaner, so why get one at all? lyndon: let me step back and describe the product because it is amazing. when you combine solar systems with a battery, you get back up. in most cases, when you get a backup system, it is a generator. it uses a fossil fuel, it's noisy, stinky, dirty, requires space and you may not even have access to the fuel in an emergency. this backup makes no noise, it is mounted against the wall. it looks good and can power two thirds of your house when you combine it with the solar system. emily: but only for a limited amount of time. lyndon: in perpetuity. as you use the battery, during the day, the solar system charges the battery again and it just repeats. if you have a generator, you have to get fuel again and keep on getting fuel. emily: when will having a battery make financial sense for

a large number of americans without subsidies? lyndon: this is a backup service, so how important is back up to you? i don't know the terminology of financial sense. if you want backup and clean backup that requires no maintenance and looks good, get this backup. if you want backup that requires lots of maintenance, looks bad stinks and -- then get a diesel generator. those are your choices. emily: you are saying by it now. lyndon: we expect to start installing around october and larger volumes will start occurring later, but the forecast is within the next five years or so, we expect every solar system we deploy to have a battery with it. emily: why not parrot with a daily use battery? lyndon: that's a good question. it's going into phases. phase one is back up.

today, utilities spent a lot of money generating, so about 50 times the year, you have to generate electricity. instead of doing that come usual battery, provide peak capacity combined with power services. by doing this, you can offset the utilities cost and save the ratepayers money and at the same time, the homeowner will make money doing it as well. emily: you guys are introducing a package next year in hawaii. how much is it going to cost? in hawaii, three times the national average for electricity. lyndon: hawaii is unique in that the cost of electricity is really high. it's just a matter of time for it happens in the rest of the states. the product we are offering as we will include the solar system and storage, we will take care of everything. there's no cost to the homeowner.

no generator required. we will do everything for the homeowner. the cost we would sell it to the homeowner, we sell it on the cost per cure -- per kilowatt hour -- per kilowatt hour is less than the utility. you would probably say between 10% and 15% off the current utility cost. we don't think that's the best design. to go off grid is not good design. that's an outcome of that policy. best design is to have a solar system still connected to the grid and have that power generating asset, that little power plant providing services to the utility. that's the best design. emily: do you plan to do this in any other states or expand abroad? lyndon: absolutely. we will bring the service to all the states we operate and expand internationally. where do you go first? australia, nigeria, many african countries where the cost of

energy is $.40 per kilowatt hour. we wrestle on where we would expand to first. emily: wendy you think a large number of people in this country will be able to live off the grid? lyndon: i think that is design. if we end up there, it's because of bad policy. right solution is to get everyone with solar and provide services to the grid and utility rates oh down and set of going up every year. emily: lyndon rive thank you for breaking it down for us. lyndon: thank you for having me. emily: in this week's edition of "wiring the world" -- the bionic eye may sound like science fiction but it is a reality. >> with his wife at his side

this is his first time seeing the famous ferris wheel at santa monica. the thing is, he is totally blind and has been for the past way five years from incurable eye decay called retinitis pigmentosa. but he's seen here with this wearable from los angeles-based back in sight. >> i see flashes of light and the brighter ones, like a door handle lord doorknob or a frame -- i can see that is what it is. >> this is how it works -- a camera on a pair of glasses transmits images to 60 tiny electrodes on the retina inside the eyeball. he cannot see fine features. but he did see his wife again this february as the world's 15th person with this prosthesis. today, another first -- today, he meets bob greenberg, the man behind his second site.

bob also checks alan's vision. walking a white line on a black mat. >> i lost the line as i started walking. >> so what do people see? bob puts me in a simulator. >> this is a half moon. this is a triangle, this is a circle. >> outside the lab, allen keeps exploring. >> this week, disneyland, seeing mickey mouse, the enchanted castle, and this. technology -- wiring up eyes to the world for a chance at second site. emily: up next, what startup could be the biggest threat to mark zuckerberg and facebook's role as the dominant social media platform? we talked to greylock partner josh ellman after the break. ♪

it is -- emily: it is time for the byte. the number today is 410 -- that's how many employees quit zap bows after a controversial management policy was put in place. it involves illuminating any sort of management hierarchy so there are no losses. it was created by former software executive who spelled out in a 30 page constitution. the ceo offered at least three months severance to employees who did not want to take part in new corporate culture. about 14% of the company did not want in. a big move this week in social media -- google and twitter are collaborating again. tweet now appear in google search results.

what does the partnership mean for the two tech giants? joining me here is social networking veteran, to say the least, now a partner at greylock. i don't think many people can say they work at all of those companies. how big a deal is the making up of google and twitter when it comes to driving user engagement and revenue growth? josh: four twitter, the power is these real-time conversations. they are only available through twitter or the network of tweets . the ability to show up on google, people will start to see this relevant, topical discussion and i hope that's going to drive new exposure to twitter. if people set up their twitter account, they will get this value from twitter. every time you search, you will finally start thinking about twitter a lot more again. emily: do you think it could

have a -- have an impact on revenue? josh: i figure will turn people to twitter a lot and that will have an impact. emily: there was just a story about the five things twitter needs to do to make more money and i want to talk to you about this. unlike book which built its revenue on ad technology twitter focused on partnerships. was that the right call? josh: there have always been two different efforts on twitter going on -- one is to get people to use it every day, to tune into what happening in the world. the second is to figure out how to take the people tuning in to twitter and make money by presenting them ads. the neat thing with twitter is you go to twitter to know what's happening. the moment we can show you an ad that's what's relevant than if you are looking at friends at rates or birthday pictures and a commercial interrupts that experience with friends on

facebook. emily: last quarter earnings were not so great. what does that say about the product overall given your knowledge of it? josh: on one hand, they are making changes to the advertising business to set it up for the long-term and effective advertising. fundamentally twitter needs to keep growing. we need to figure out how to get more and more people in the world. i am addicted to twitter. i use it more than any other product on my phone. but we have not figured out how to simplify the products to the majority of people who still tried it, don't get it and can have at great experience. emily: i always ask dick costolo how i can get my mom on this thing because she doesn't get it. twitter bot periscope -- can meerkat survive on its own? josh: the world of live video is

tremendous. we have a billion people with smartphones in their pockets who can immediately turn into live video cameras is going to be unstoppable. periscope, the line is twitter for breaking news. there are so many communities and we are talking about twitter's growth challenges. there are some people in the world who don't use twitter to have means to share over live video. emily: someone said recently that a company will be held in the next two years that could kill facebook. what should mark zuckerberg be afraid of? josh: we are starting to see it with snapchat already. teenagers these days love the fact that the content goes away. on facebook, if you get a picture, your mom sees it and likes it in 30 minutes. the next generation are these

kids growing up with minecraft and a start to show as a hold of her world of what they can do. emily: thank you so much for joining us. watch out for that facebook killer. that's it for today from san francisco. ♪

mark: i mark halperin. john: and i'm john heilemann. ♪ mark: happy national strawberries and cream day. on our very own stage, in midwest sized story, a funny thing happened on the way to the nomination, and the music man or it at first, oklahoma. we just got word that hillary clinton is making her official announcement on june 13.