tage, all of taylor swift's music videos, interviews, and more. xfinity is the destination for all things taylor swift. emily: investors get cold feet over alibaba. how jack ma can clear hurdles inside and out of china. ♪ emily: i'm emily chang. this is bloomberg west. a record, $.10 records profit. and promises of a smooth transition for john chambers to chuck roberts. tender pr goes after vanity fair. all that is ahead.

first, to our lead. shares fell to a record low. declining 10% after sales climbed up the smallest pace in three years. we spoke with the ceo and asked how concerned he is. guest: people come here not only for specific purpose. they come here for lifestyle. we are confident for the long-term growth. we will continue to closely monitor the consumer behavior and chinese economy as a whole. ceo tothat was the discuss. spencer ame now, bloomberg who covers amazon and alibaba. and the director of stanford university. i'm going to start with you.

he expressed confidence in the u.s. consumer. should we have that much confidence giving everything that is going on? guest: i have spoken to him, met him. he is a true soldier. what is he going to say? we are well positioned to keep doing what we are doing. there is definitely volatility in the market. having said that, growth is 34%. it is fine. overall it is ok. shine it seems that the has worn off of ali baba. i wonder how much is perception and how much is reality given the long-term potential. guest: for sure the shine is all.

wishing for the days when there was a skyhigh stock last november. there are reasons for concern. despite the news of growth and mobile, cans for andaba moved to mobile, slowly economic conditions, declining confidence and consumers is important for alibaba's revenue. those are real question marks in my mind. emily: jack ma wants half revenue to come from abroad and have to come from china. you have been looking at comparisons. what have you been seeing? key thing to understand is how alibaba measures international growth. a big part of their strategy is finding goods outside of china

and bringing it into china. their strategy is susceptible to softness on the chinese consumer. amazon differentiates itself by canon bawling into a new market, building infrastructure and investing more heavily in that market than alibaba does. emily: we are looking at some charts. tommy huawei are seeing. guest: you are seeing amazon outside of its home country of the u.s.. again, the important distinction is a good chunk of that 9%. it abroad coming into china. it is dependent on the chinese consumer. bigger.mazon was now amazon is bigger than alibaba. guest: alibaba hit the scene right around the time of the

amazon fire flown flopped for there was backlash at the time alibaba hit the scene. there has been a reassessment pretty money has shifted back to amazon. amazon has been proven to be turning a profit. emily: alibaba did an exclusive deal with macy's today. take a listen to what daniel had to tell me about that. we just announced macy's joined the platform. they view us as the exclusive platform to entering the china market. today we are working with a lot of partners. we will have a lot more to come. are you inconfident this strategy given that we

haven't seen the international revenue growth happen. it is still at 9%. guest: it is 9% now. it was little just a few years ago. emily: that quarter it was 9%. guest: that has grown dramatically. having said that, is macy's the right partner? historically, they could be slower. i'm in the school of thought they should work with startups more. we will the what happens. emily: regulatory issues which were much of a concern to investors at the time of the ipo seem to be getting more concerned. putting police officers inside top chinese net companies, i ined, are there police alibaba now? guest: as a company who has a huge consumer base and serves

millions of americans, we work tosely with the government follow the government policy of regulations and we continue to do so. we are in compliance with the regulations. emily: are you worried about this? the chinese government is only getting stricter when it comes to the internet in china. guest: i love the answer. emily: it is a lot. [laughter] [indiscernible] guest: security officers. with what is happening on the internet. way forill a great people to express themselves and for the government to address issues and problems around china.

the ability to impact the country is still respected. 10ly: i want to talk about sent. they are reporting earnings, they had a record quarterly profit. do think aboutt how they are doing compared to the slowdown in ali baba? guest: i thought they had phenomenal management and a strategy that has been executing well moving from online and starting to look for the next growth engine and tying that together with messaging. i think that the performance is not a surprise but there is reason to be optimistic. becoming moree like facebook when it comes to advertising. is that fair? guest: they have it monetize and

they are starting to. gaming has been the engine. emily: there was a slowdown. guest: that is more competition coming out. as you know they are expanding into on-demand mobile services, connecting users to order stuff and multiple goods. it is an untapped market. emily: are they going to buy twitter? guest: i don't think anyone will buy twitter. emily: thank you for being with us. monitor theinue to goings-on in china. coming up, cisco earnings are up. numbers, next.he

and then tindr takes offense to an article. that is next. ♪

emily: cisco releasing better

than expected sales in the first -- fourth quarter. the analyst call happening now. cory johnson is with us. robbins --is chuck how said it is chuck robbins for success? cory: if you look at the guidance, you say big deal. they always beat by a little bit. they always do that. if you look under the covers you can see a change in business. benefiting. they are in good shape. one of the things that jumped out at me is in the deferred revenue, not the earnings-per-share are you saw growth of 4%, if you go to the balance sheet you can see the deferred revenue, the money they get paid before they deliver a service.

as they move towards a software, you should see higher deferred revenues. in the software part of the business was up 22%. the business was at 4%. part of the business they want 2%.row grew at that is fantastic. meg whitman expects more consolidation in the broader tech industry. where does cisco fall? cory: cisco is the king of mna -- m and a. they have been doing it better than anyone in technology. the have done so many big deals and folded those companies and without hiccups we have seen at hewlett-packard, if you look across the spectrum of big hardware and you compare cisco

hewlett-packard, oracle hardware, they same -- sell the same kind of stuff. , ibm big hardware slingers down 10%, hewlett-packard down 6%. the results that we just saw showed in the last year cisco has been up 4% in terms of revenue. when everyone else's falling back, hewlett-packard especially, spending billions and acquisitions, cisco is going despite the expenditures. emily: all right. cory johnson, always giving it to us straight. thank you. now to a story we are watching. tindr took to twitter in a 30 tweet rant against vanity fair

on the dating apocalypse. tinder took offense and an epic way. our intention was to highlight the statistics that are sometimes left unpublished and in doing so we overreacted but the tweets open up to questions. check someme to fact of these tweets. let's start with this little gem. tinder suggesting many users in china and north korea find a way to meet each other. init possible to use tinder china? i believe you have to go through facebook. how many tender users are there? to have ahave

computer that looks like it is based in china because facebook is blocked. that is the way into tinder. that was one question as i was watching my twitter feed. in north korea, this is an interesting one. is veryrea's internet regulated. there's only a certain number of ip's you can watch. tender did not get back to us with numbers as to how many users are in the region. if people are somehow getting around and getting in through that market. emily: some people have used tinder in china and said they did get some action there. that is anecdotal. put out,weet tinder they claim they are responsible for 8 billion connections.

alex: that is a match. right. one both swipe the two of you both are matched together. ceo comes from the tinder in june who said they are at that many connections with 16,000 swipes a second. that is not a user number. tinder is a part of a bigger parent company. they are not giving out user numbers. this connections number up from 5 billion in january is just a number of people acyclic getting set up over the app. emily: it doesn't mean they met up, they had a conversation as a result. alex: and that is the heart of this article. the story says people aren't talking in person, they aren't getting in front of one another. they are looking for the hook

up. who knows. emily: r 30% of people on tinder really married. says no.der that was of a small group of people, a 681 person survey. actually only 1.7% are married. they say they have anecdotal advice that it happens later. no ashley madison affects going on on tinder. emily: dear god for the future of humanity. i hope tinder is telling the truth. thank you for breaking it down. now to breaking news. jimmy carter says recent liver surgery reveals he has cancer and other parts of his body. the cancer has spread. he says he's undergoing treatment in atlanta.

carter was the nation's 39th president. we have further details coming up next week. we will continue to monitor this story as it develops. next, we catch up on apple bet madness. new parente's company be a game changer? ♪

it's time for the daily by. one number that tells a whole lot. $1 million per the amount of stephen ross is investing in the drone racing league through his venture capital firm . delete plans to have drone specialists battle it out against military pilots with

experience flying unmanned planes. they will don headsets that will transform them in the cockpit of their drones which will raise said speeds up to 70 miles per hour. the first race is planned for later this year. catching up on the apple bet madness, who got caught up in the frenzy of google's restructuring? that was an interesting way to end and monday. he described himself as a dad and self-proclaimed geek with no connection to google. his twitter handle is at out the bet. he is not the only one. the new website is abc. xyz. demand for the new domain is surging. daniel, thank you for joining us. how did larry page come to find.

xyz. >> i can't talk to much about the transition itself. read the that i announcement on abc. xyz myself. this is the biggest thing that could have happened to us. i took a step back. google was a subsidiary about the bat. i went into the meeting and said it is actually bigger. emily: tell me about the surge in interest in the last few days just because google did this. >> xyz has been growing. we have been adding 3000 new registrations a day on average. ever since google made this announcement we have added 20,000 new domain names.

it is trajectory upwards. it hasn't changed. we are seeing thousands of additions any given hour. we seeing registrations come from small businesses, individuals grabbing their names . xyz is the future. it is the domain ending for the next generation internet user. xyz.n the of a bet with google has done that. emily: the domain business is changing the we spoke with the ceo of go daddy. .ake a listen to what he said some of theomenon, top ones are. club,. guru, those are things that are growing well. emily: obviously there is a lot of choice for domain names. .com is king.

how long does that last? >> i think it is over. i believe monday was a game changer for all the new domain names. is xyz. knows now what they know of domain names as a whole. there is competition and choice in naming options. no longer do you have to get a long domain that doesn't make sense. you can get the. xyz you have always wanted. we are seeing this phenomenon all over the world. emily: i wonder with the rise of mobile how in demand domain names will be. thank you so much. congratulations on the apple bet winner there. that does it for this edition of bloomberg west. tomorrow on the show we will bring you my interview with erin levy. don't miss it. ♪

mark: i'm mark halperin. john: with all due respect to the vanity fair story about tinder that has everybody fired up -- ♪ john: not that i have any idea what tinder is. internets, i don't know. happy national julian fries day. a lawyera doctor, and a monster. after months of saying she will never do this, hillary clinton is handing over to the fbi her private e-mail server. an inspector general for the intelligence agency says