emily: linkedin shares climbing higher in extended trading. we will look at the media giant optimistic forecasts and claims that it cracked china. i'm emily chang and this is "bloomberg west. electronic arts gets the boot but wall street is not impressed. t-mobile path plan to overtake sprint. i sit down with the company's ceo, braxton carter. why combination are and

indiegogo are here. we will talk about their startup project with amazon. investors are loving linkedin right now, saying the full-year revenue will be higher than estimate. linkedin said second-quarter sales jumped 33% and reached 380 million users. 10 million of those users are in china. the ceo says it the second largest market for new sign ups behind the united states. joining me now is my guest and paul sweeney from bloomberg intelligence who covers linkedin. but i want to start with neil. what do you think of the significance of these china numbers? has linkedin cracked the china market? guest: they are one of the few u.s. internet companies that can

actually operate in china. they had about million users and they are growing rapidly. there's a huge opportunity for linkedin to expand its market by being able to operate in china. alix: one of the things we are looking closely at his mobile. what do you think the highlights are here? guest: this is an interesting quarter. i think most investors were hoping for no prizes after the astonishing disappointment last quarter where they brought guidance down. here, they put up a good quarter and take guidance back up so a roller coaster for shareholders but a much better turnaround led by mobile and led by their talent solutions business. looks like a solid quarter across the board and some of the changes they have made, maybe they have more confidence with

lynda.com taking those numbers up after bringing them down. alix: linkedin has obviously been making the transition to a more mobile company coming from mobile devices. what stands out to you? guest: one of the interesting things is last quarter, they announced a few organizational challenges they were going through and one of the stories and what their growth experience has bet is that we are talking about a company that was more hundred people all and is today around 8000. that is enormous growth and enormous challenge for any group to go through. they are not talking about organizational problems, they are talking about the fact that the moves that these made are paying off. they just undertook the biggest acquisition in the history of

the company and in terms of employees, around x hundred. i think they've got their mojo back. that's what i'm starting to feel. alix: aren't there still questions about how lynda.com will integrated into this company? guest: hopefully we will get more color on the call but this is an online education company and we think they could be using them to become the training provider for its 38,000 plus companies and clients, so that could be a big opportunity down the road. alix: what do you make of these down the road opportunities? linkedin has been a company in transition. guest: this is an interesting quarter for a lot of the social media companies. we had some good numbers and disappointing numbers out of others. what investors are hearing a lot about is like mark zuckerberg

said, trust us. we are investing in the long-term growth of this business and most investors in the social media companies are comfortable with that let's invest now strategy. that be something that has worked for most of these companies, so i think management here will get the benefit of the doubt. alix: even though linkedin and these companies are very different, i wonder how significant the china news is given that facebook, twitter can't expand in china, but linkedin can. how big an opportunity is that? guest: knowing how many professional numbers there could be coming there could be over 150 million professionals there. i ain't the upside is huge. it's got to be very scary for

linkedin because they can pull the plug at any time. i think they are interested in what dramatic upside can be. but you can't say you are a professional network until you have one of the largest segments of nationals in the world joining in mass. i think they have the chinese professionals who are part of the multinationals joining in greater numbers and now we will see if they will be able to join in and if there is a monetary opportunity. it is an encouraging sign. alix: of course, there are chinese it of lens of inked in based in china and we will try to see how the china strategy evolves. thank you so much for joining us. we are talking about ea coming up. now to t-mobile with shares rising, closing up almost 5% after reporting strong user growth. the so-called un-carrier added a

total of 2.1 million customers, bringing the total count to 59 million. sprint currently has 57 million while verizon and at&t have over 100 million customers. i spoke to their coo earlier today and asked about the competition. guest: we thought we were bigger than sprint. we have been larger than sprint for a significant time. alix: i also asked about the merger potential between t-mobile. guest: we are always looking at innovators in this industry and how we can enhance shareholder values and look at things through a strategic lens. alix: braxton carter there

t-mobile cfo. madden is the gift that keeps on giving for ea, but can these titles help. and looking at stephen hawking and how he communicates. how he has helped to double the speech rate. ♪

emily: a status of rate on facebook path internet.org. the company sharing technical be tales about its land for connecting rural areas to the internet. the plan involves using bulletins to lift internet beaming drones to an altitude of 50,000 feet. something mark zuckerberg at late last year. mark: there are a lot of people who do not live within range of a network. drones are one way to do it and microwave communication -- that's going to be some of the solutions were providing conductivity for people who have no existing contact for cell phone towers. emily: the germans have the wingspan of a boeing 747 and will fly three months, transmitting information using lasers.

now, the cyber security leader pointing record revenue it can quarter and raising its revenue out. billings increase 37%, but the stock is still lower in extended trading. michael sheridan will be leaving the company. now to ea -- the gaming giant. electronic arts out with a big beat, but the stock is out on a muted forecast. here to take it down is my guest. i know there are some issues with digital. guest: the packaged goods site came in better than expected but the big question is on the guidance. it came in just shy of what consensus is expect. the company is conservative and is why they are trading down a little bit. the big focus is on star wars. emily: which is interesting, because it is all about star wars. you would expect that her

guidance. guest: i think this company is being a little more conservative . they have been conservative in the past. we are expecting star wars to do 14 million or 15 million units. emily: how big is "star wars" compared to the big ea hits? guest: we think this could be big if not bigger. we think they can do 12 million to 15 million units in the december quarter alone. fifa and madden are in the low single digits. emily: how is he a doing with its rivals like activision and social side players like lou and zynga question -- zynga? guest: they have been driving more margin expansion in the stock has been doing well because of that. relative to activision, they've

been out arming. emily: so it is all about star wars. thank you so much for joining us. time now for our latest "bloomberg west series, filing hearing the census looking at the technology on the frontier of medical science. today, we're looking at the technology behind stephen hawking and how it is helping him communicate. mr. hawking: medicine has not been able to cure me, so i allow -- i rely on technology. emily: that technology he relies on has recently gotten an upgrade. tasks that used to take three or four minutes now take around 10 seconds. intel has been working with hawking for decades and the

latest upgrade was over two years in the making. >> we completely changed the way he is interfacing with these systems. based on whatever he happens he doing, we would surface the most logical things he would want to do for emily: that applies to his text to speech system. the software runs productive apps on smartphones and has doubled his speech rate. it considers what he was last writing, whether there were errors and tries to predict which character you might use next. to do that, the program has to learn how he writes and speaks by analyzing dozens of his documents. >> the given body of text professor hawking would only enter 15% or 20% of those characters and the rest would be inferred. emily: here's the crazy part.

everything he does is triggered by movements in his cheek. just the way smartphones $.10 and they are close to the face. future versions of this technology to take a bigger range of movement into account. >> he can say yes and no by moving his eyebrows. we have been using a camera system to detect these different movement so he can do things by saying no rather than having to manipulate the whole screen to get to a backspace, for example. emily: intel is trying to help with rain control interfaces for people who can't move any muscle at all for top the forecast represents the next for assisted technology. we will have our next story in our bioengineering tomorrow.

still to come, how khan academy plans to create a faster message at. we will hear from the founder next. and we talked to why combination about its plan and how much money will a launch pad save for startups? and we are leaving you with some photos from apple plus snapchat account, giving a look inside their radio station. ♪

emily: now to our daily byte --

one number that tells a whole lot. today's numbers 26 million, that's the number of students who belong to the con academy -- a nonprofit academy opened to 15 million students just five months ago. i spoke to the voice behind most of the academy's youtube videos. i asked him about his agent to reinvent education. guest: even today, the return on investment is a little suspect. if you extrapolate growth intuition and 10 or 20 years you have young children -- you -- what is it, half $1 million? that's not feasible. i think over the next five or 10 years, i think online will be part of it. emily: one of his main argument is that everyone can be smarter if they set their minds to it.

i asked him if that means anyone can be mark zuckerberg? guest: shift his life a year forward or year back, he may not have started facebook. you don't know what the path would have been. there are people who push themselves to grow and learn new things, but they also had a lot of opportunities and were in the right lace at the right time. and a little dose of luck never hurts. i think mark zuckerberg would have been successful in anything he did. i don't think everybody can be mark zuckerberg, but i think there are a lot of people who can be mark zuckerberg right now who think that they cannot. emily: we have that full interview tonight on "studio 1.0 " right here on bloomberg television. amazon is expanding its retail universe with a new service that will give startup coming through accelerators like why

combination or or raising funds on sites like indiegogo. it is called launchpad and amazon says it has 25 vc firms backing it including andreessen horowitz, which bloomberg has invested in. joining me right now are my two guest -- how valuable is it to be part of the amazon ecosystem? this is a win for you, especially since kickstarter is not part of it. guest: the goal is much funding and exposure as possible. they are looking for exposure and we have the in demand program where you can keep eating funds on our site. amazon is part of that, getting the extensive reach. emily: your company works with

so many startups. can you invest specifics on how much this could save a small company when it comes to distribution and warehousing and not having to hire certain people mark -- certain people? guest: when operating with amazon, it allows us chart of to be a lot more flexible and instantly get worldwide distribution and a lot of arjun's. moving commerce online is extremely help. emily: how much of a commission is amazon taking? guest: what amazon wants is to be closer to the startups. what happened in software and at 10 years ago is happening in hardware and any factoring and you want to get as early as possible into hoots with these companies. amazon does not want to lose

these companies. i think it's a win for everybody. emily: how hard is it to sell on amazon if you are not part of something like this? guest: that's a good question. there's a huge advantage to joining this type of program and amazon is going to try to open its hands and welcome a lot of different startups. i think amazon is an extremely powerful to for pushing out these companies. these companies are trading the hardware of the future and this is what customers want, so amazon is making an amazing move here. emily: amazon has been sued by small businesses who say amazon is trying to them out of business. do you have any concerns about that mark -- any concerns about that? guest: it's a constant balancing act of how to work with the big guys and what's good for your own company.

a lot of companies see a lot of benefits. connecting with amazon after having a great campaign on indiegogo can help propel it toward, which is why they call it launchpad. emily: i'm curious to hear what you think about environment right now. sam robbins said we are in a bubble, but it will pass. what are you seeing when it comes to valuations? investors are telling me it is expensive. guest: i think valuations are high, but the difference is these companies have revenue. if you look at y combination or, they are figuring out there business models very hard. it's not a question of can they make money, it is can they tweak

things to make it a big business. i don't think we can look to the past and say this is just another remembrance of 2001. tech companies are legitimate and creating real products and real revenues now. emily: what do you think about valuation? guest: i think you have to take it company by company. there's a lot of money chasing the next good deal. but when you see something like an area -- like canary, which is a smarter security device or activity tracker has raised $55 million of easy money. it's because they have huge sales. i think it's interesting, but the valuations are high because not enough good deals for the money that it is chasing. emily: thank you both. that does it for this edition of "bloomberg west."

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john: i'm john heilemann. john: -- mark: and i'm mark halperin. and "with all due respect" to mark: -- to john heilemann focus. ♪ and today we're talking about a presidential candidate -- i