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." coming up, $.10 records a record profit. cisco promises of a smooth transition for john chambers to chuck roberts. vanityder goes after fair.

all that is ahead. first, to our lead. alibaba shares fell to a record low, declining as much as 8%. declining 10% after sales climbed up the smallest pace in three years. we spoke with the ceo and asked how concerned he is about a broader slowdown in the chinese economy. >> 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. we are confident for growth. emily: that was daniel zhang, ceo of alibaba. spencer ofe now, bloomberg news and the director of stanford university's annual china 2.0 conference. zhang expressed a lot of

conference in the u.s. consumer. should we have that much confidence giving everything that is going on? >> i have spoken to him, met him. he is a true soldier. what is he going to say? he's going to say, focus on the long-term. there is definitely volatility in the market. most volatility occurred in june. having said that, growth is 34%. it is not great, but it is still not bad. it is fine. they still have 80% market share. overall it is ok. emily: it seems that the shine has worn off of ali baba. i wonder how much is perception and how much is reality given the long-term potential.

>> for sure the shine is off. ali baba is wishing for the halcyon days when there was a skyhigh stock last november. there are reasons for concern. despite the news of growth and more revenues for mobile, can ,libaba really moved to mobile and what about this in the face of china's declining economic conditions, declining confidence and consumers for alibaba's revenue. those are real question marks in my mind. emily: jack ma wants half revenue to come from abroad and half to come from china. spencer you have been looking at , comparisons between alibaba and amazon. spencer: a 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 international strategy is susceptible to softness on the chinese consumer. even if amazon differentiates balling peopleon into a new market, building , infrastructure and investing more heavily in that market than alibaba does. emily: we are looking at some charts. tell me what we are seeing. spencer: you are seeing amazon outside of its home country of of the u.s.. you are seeing ali baba without 10% of its revenue. baba is goods ali abroad. it is dependent on the chinese consumer. emily: now that its market cap has dropped, amazon is bigger than alibaba.

spencer: 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. he saw this investor going oh, forget you amazon, there is a no show in town. -- a new show in town. there has been a reassessment pretty money has shifted back to amazon. amazon has been proven to be more disciplined with spending and turning a profit. emily: alibaba did an exclusive deal with macy's today. part of the international strategy. take a listen to what daniel had to tell me about that. daniel: 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. emily: how confident are you in this strategy given that we haven't seen the international revenue growth happen.

it is still at 9%. hans: it is 9% now. but it was little just a few years ago. emily: that quarter it was 9%. hans: over 3-4 years, it has grown dramatically. having said that, is macy's the right partner? ali baba has a strategy working with bigger retailers. historically, they could be slower. i'm in the school of thought they should work with startups more. we will see what happens. emily: regulatory issues which were not much of a concern to investors at the time of the ipo seem to be getting more concerned. one of things in china is that they are putting police officers inside top chinese net companies. i asked daniel zhang, are the police inside ali baba right now? here is what he had to say. daniel: we serve millions of

merchants. we work closely with the government to follow the government policy of regulations and we continue to do so. we are in compliance with the laws and regulations. emily: as an investor, hans, are you worried about this? the chinese government is only getting stricter when it comes to the internet in china. hans: i love the answer. emily: translation, yes, if the law says we should have police officers-- [laughter] hans: whatever you call it, there is more monitoring with what is happening on the internet. having said that, it is still a great way for people to express themselves and for the government to address issues and problems around china. it is a big country with 90 million party members. the ability to impact the

country is still respected. emily: i want to talk about 10 cent, also purportedly having police officers inside the company. they are reporting earnings, they had a record quarterly profit. marguerite, what do think about how they are doing compared to the slowdown in ali baba? >> i have long thought to that 10 cent has 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. emily: they are becoming more like facebook when it comes to advertising. is that fair? hans: we chat is a great asset.

they have not monetized it yet, but are starting to. gaming has been the engine. emily: there was a notable slowdown in gaming. hans: that is right. things god there is -- thank god there is wechat. as you know they are expanding into on-demand mobile services, connecting users to order stuff online. it is an untapped market. alibaba lacked that shiny toy. emily: are they going to buy twitter? [laughter] hans: i don't think anyone will buy twitter. it is a complete separation. emily: thank you for being with us. we will continue to monitor the goings-on in china. coming up, cisco earnings are out and chuck robinson is leading. we break down the numbers, next.

plus, tinder takes offense to a vanity fair article in an epic way. that is next. ♪

emily: cisco releasing better than expected sales in the fourth quarter.

the first earning reports for chuck robbins as ceo. the analyst call happening now. editor at large cory johnson is with us. how well set up is chuck robbins for success? cory: if you look at the guidance, you say big deal. they always beat by a little bit. the guidance is basically in line with what people expect. but if you look under the covers, you can see a change in business. chuck robbins is benefiting. he has said he is only been in the job for a few weeks, but they are in good shape. one of the things that jumped out at me is in the deferred revenue, not the earnings-per-share, where 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 software, you should see higher deferred revenues. higher deferred revenues in the software part of the business was up 22%. the business was at 4%. but the part of the business they want to grow grew at 2%. -- grew 22%. that is fantastic. emily: meg whitman as ceo of hp expects more consolidation in the broader tech industry. where does cisco fall? cory: cisco is the king of m and a. they have been doing it better than anyone in technology. the have done so many big deals and bought some any companies and folded those companies and without hiccups we have seen at hewlett-packard and lots of other companies. if you look across the spectrum of big hardware and you compare cisco to ibm, hewlett-packard,

oracle hardware, they sell the same kind of stuff to the same customers. those big hardware slingers, ibm down 10%, hewlett-packard down 6%. oracle's hardware business 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 in acquisitions, cisco is going -- is growing despite the expenditures. emily: all right. cory johnson, always giving it to us straight. our editor at large, thanks so much. now to a story we are watching. we have tons of popcorn out for this one. tinder took to twitter in a 30 tweet rant against vanity fair

on the dating apocalypse. bottom line, the article cites tinder use for the rampant hookup culture in it twentysomethings. tinder took offense and an epic way. they said, "our intention was to highlight the statistics that are sometimes left unpublished and in doing so we overreacted ," alex joins me to fact check some 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. is it possible to use tinder in china? i believe you have to go through facebook. how many tinder users are there? in north korea? alex: you have to have a 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 eating my popcorn last night, watching my twitter feed. in north korea, this is an interesting one. north korea's internet is very regulated. there's only a certain number of ip's you can watch. tinder did not get back to us with numbers as to how many users are in the region. this could either be people using tinder in hotel rooms in the country, or if people are somehow getting around it 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. another tweet tinder put out, they claim they are responsible for 8 billion connections. what does that mean? what is a connection? alex: that is a match.

that is when you and somebody that you are into both swipe right. that means you are interested in continuing this further. the two of you both are matched together. that comes from the tinder ceo 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. its parent isn't quite at the point where they are giving out user numbers like facebook and twitter do. this 8 billion number, up from 5 billion in january, is just the number of people 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 just swiping, looking for that one time hook up.

who knows. emily: are 30% of people on tinder really married? alex: tinder says no. they have disparaged this report that came out earlier this year, saying that was of a small group of people, a 681 person survey. survived they'd 260,000 people and said only 1.7% are actually married. how many marriages come out of tinder, they have some 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. former president 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 at emory health care 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.

emily: it's time for the daily byte. one number that tells a whole lot. today's byte is $1 million. that is the amount of money miami dolphins owner stephen ross is investing in the drone racing league through his venture capital firm. the league plans to have drone specialists battle it out against military pilots with experience flying unmanned

planes. the competitors will don vr headsets that will transport them in the cockpit of their race them at will speeds of 70 miles per hour. the first race is planned for later this year. catching up on the alphabet madness, who got caught up in the frenzy of google's restructuring? chris says that was an interesting way to end a monday. he described himself as a dad , husband, and self-proclaimed geek with no connection to google. is twitter handle, however @alphabet. the new website is abc.xyz. demand for the new domain is surging after google's announcement. xyz ceo is you could tell me what it is like to get caught up in the alphabet soup. daniel, thank you for joining

us. find.xyz? -- how did larry page come to find.xyz? >> there is an nda, so i can't talk about the transition myself. i went in and told my team this is the biggest thing that could have happened to us. i took a step back. i saw google was a subsidiary of alphabet. i went into the meeting and said , actually team, it is bigger. emily: tell me about the surge in interest in the last few days just because google did this. >> xyz has been growing. this month we have been adding , 3000 new registrations a day on average. ever since google made this announcement, we have added domain names.z

it is trajectory upwards. it hasn't changed. we are seeing thousands of additions in 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. theave always said that alphabet should end with xyz, and google has done that. emily: the domain business is changing -- we spoke with the ceo of go daddy. take a listen to what he said. >> this phenomenon of new companies, some are .club, . guru, those are things that are growing pretty well. emily: obviously there is a lot of choice for domain names. .com is king. how much longer does that last?

>> i think it is over. i believe monday was a game changer for all the new domain names. everyone knows now what is .xyz. they know of domain names as a whole. there is innovation and 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. especially in these emerging markets. emily: i wonder with the rise of mobile how in demand domain names will be. xyz ceo, thank you so much and congratulations on the alpha that winner. -- on the alphabet winner. 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.

-- with arron levie. don't miss it. ♪

♪ >> from our studios in new york city, this is "charlie rose." charlie: we begin with a conversation about technology. google announced yesterday it would reorganize as a holding company, the purpose of the new structure is to increase management and focus on its consolidated businesses. search, youtube, droid, and other internet products will be run by a company that will become the ceo of google incorporated. the other products will be managed separately, including google's investment arms, life science venture, and lab, google x, which produced the self driving car.