new zealand's representative to the u.n. says, it is time to shine a spotlight on the issue. council cannot be an enforcement i can is in itself, but with the point that i made today, these things are being reported, these people need to be held accountable. there is accountability. which backs the government of syria and president bush are al-assad, denies involvement in the airstrike. the syrian officials is about 16 military personnel, including an officer, had been disciplined for mistakes leading to the bombing of a hospital in afghanistan last year. 42 people were killed. the service members received administrative punishments, and no criminal charges were filed in connection with the u.s. airstrike. a tiny say a moroccan-born man has specific orders from the

islamic state to carry out attacks in rome. authorities arrested the man and his wife. they were of the allegedly planning to move from their home in iran to i sold territory. -- to isil territory. i'm mark crumpton. "bloomberg west" is next. ♪ emily: i'm emily chang and this is "bloomberg west." up, amazon shares surge after sales topped estimates. jeff bezos is showing investors he can deliver profits and keep his side projects. less, linkedin surprised the industry with the earnings be. shares popping off the news. could the company not be as dire as beer.

and an interview with biz stone. first, to our lead. amazon shares popping 12% in extended trading. the e-commerce giant reported a first-quarter revenue of just over $29 billion. operating profits were $1.7 billion. amazon web services continue to be a juggernaut for the company. the cloud computing arm is generating over 2.5 ilion dollars in revenue, and 64% year-over-year growth. this adds to evidence that the company can be profitable while adding new things, like one hour delivery, and marketing new gadgets. jean, what are your big takeaways c-reactive -- takeaways here? accelerated from

26% in december 2 at 27%, and that is higher than it was in the september quarter. two quarters of a row of acceleration. they are systematically taking over. that was the biggest take away. you mentioned the profitability side, that was nice. but the sector games, their market share is well intact. 1%y grew their gmb at 1%, so versus 27%. emily: let's talk about aws, corey. this is a quickly growing business. last quarter, it was up 63%. growth has been fantastic. he is also looking at business and only 6% of revenues, but a vast percentage of the overall profits in this company. revenue growth, year-over-year, for aws.

very powerful. with a 24% margin, you wonder how long jeff bezos will continue to let this thing make money. he has been cutting prices like crazy. but they are adding customers and revenue, and they are bringing a lot of profits to this customer -- to this company that would not be there. emily: are you worried about apple moving stuff off amazon servers? how big of a deal is that? guest: that would be a head wind the growth, but i think o central theme of what is going on in cloud computing will .enefit ews the bigger question, the most frequent question i get from investors on amazon is, what's google going to do? they hired a new head of their cloud with diane greene, and they have made expectations and loud comments that they think their cloud business can be bigger than their advertising business, which is a staggering comment. that is a bigger hurdle, potentially, in ews. interesting.

amazon just started of restaurant delivery in san francisco, cory. is this just for fun, or can this be a big business? cory: i love high you asked that question. i love food. , the techat we community of journalists, take amazon's product launches too seriously. try everything, then they get rid of it. that's what they do. , within you that amazon the way the entire business works, their main job is selling stuff. they have an important job in selling web services. but what is in that, they have been willing to try lots of different ways to sell stuff and utilize the infrastructures they have. part of that infrastructure is web services. emily: jean, part of the side projects, which of these things do you see real potential to

become a big business down the line? guest: this is probably more than a side project, but this 24-hour piece is now in 28 cities and started a little over a year ago, so it has gone dramatic. the number of sku's are pretty small. but that idea is something that will start to capture market share from additional retailers him as consumers start to understand that if they want something right now, in the next hour, they can get it from amazon for a good price area i think that will be part of the gain we are talking about. emily: corey, just days us turnedthis -- jeff bezos this into a popular business, the story of the last decade. what is the story of the next decade? he runs these services

with his tail as close to the wind as he can, picking up the they canprofit possibly can so that they can dump everything back into their growth as a big business. with the exception of web services, there is no sign that long-term business has changed one bit, but web services looks different, and it is accruing. emily: how would you respond to that very same question? guest: i think that he is building something that is a monster today, but he has aspirations of taking over the world and retail. i totally agree with corey, he nailed it. he has no interest in profits. he does it probably is a side project to keep investors happy, but at the end of the day, maybe keep employees happy. but he has real aspirations, and i think it is impossible for a startup business to get any sort of funding because they know would plow-- bezos

them under. emily: all right, you will be sticking with me, and cory johnson, we will see you later in the show. after thursdayed trading after carl icahn said he sold out of his shares. short of his he shares in february, citing concerns of the company's relationship with china. we learned that china shut down apples ibook services. has pushed tim cook to release figures. still to come, can we call it a comeback? linkedin shares are searching, a far cry from what investors heard three months ago. plus, music to the market's ears, pandora has been boosted

with founder tim westergren back at the helm. we will break down the numbers, coming up this hour. ♪

emily: groupon beat estimates in the first quarter, reporting a loss of one cent per share, but shares are down in extended trading. there was also a new deal for management announced. gaining sinceen february when groupon posted that are than expected earnings when alibaba took a 5% stake in the company. turning to linkedin, shares are

soaring in extended trading, up as much as 16%, after the company reported first-quarter results topping expectations. revenue in the first quarter was up 35% year-over-year to $851 million, and the company also guidance, indicating fears of linkedin's ability to stay in growth were overblown. this is in stark contrast to q4 in february 1 stock tanked more than 40% -- in february, when stock tanked more than 40%. why are they sharing this news? steve, i imagine you have been watching the story pretty closely. why do you think this report was so different? thanks fory, first, having me on the show, but i think one of the things that is happening with linkedin is they are adjusting to their own growth. they just added a new business line with this learning and development acquisition of lynda.com, and they are being

cautiously optimistic in wanting to make sure that they are integrating the new product lines effectively. i think they have caught their stride. i think they have found their way, and i think they are more confident in understanding the business, because the new user growth and the amount of andgement of existing users new users is higher than ever, so i think they are feeling pretty good right now. emily: what do you think drove the numbers here? a pickup in demand for recruiters, advertisers? i know there was a pickup for jobseekers on the site. guest: if you look at the jobseekers, they over performed. most analysts were looking for a that's whereh, so the mathematical performance came from. i think the biggest take away is theestors acceleration.

that has been at the bear case on linkedin. like something has been wrong, and people are not getting excited about linkedin. but the numbers show engagement is doing really well. emily: steve, the multi-app approach that linkedin was taking, will that help the company on the marketing solution side of things? guest: it could. you want to engage people where they are spending more time. people are spending more and more time on their mobile devices. i think we are seeing a virtuous cycle, because candidates are more and more comfortable using mobile apps, and i think the marketing solutions community is withng more comfortable that being a viable place to use that leverage more, so i think they're are going to feed off of each other. emily: jean, how to the numbers today change your impression of the long-term story for linkedin? a big deal,nk it is

what happened today. every internet company goes through a period where investors think they are going to go through a slow wide down -- wind down in the future. everyone has gone through it. linkedin is going through it right now. i think the numbers tonight are a good step. i think there is a lot more to go at this stop, because the part that is unique about this business versus other internet companies is that 80% of the revenue is recurring, and other internet companies can't say that. ofhink the combination getting investors more comfortable with their registered user growth is going to lead them back to a higher multiple. as someone who helped scale the company from a few hundred to a few thousand employees, what do you see as the biggest challenges ahead for linkedin? now that they have reached this scale, there are startups out there that are trying to take part of this business. guest: absolutely. i think the amount of investment that is going into recruiting,

and the fact that talent discussions are happening more and more in executive boardrooms around the world, digital talent and growing this need is rising. more and more challenges are going to be confronting linkedin in the future. one of the interesting dynamics and stories that i don't think is getting a lot of attention is that a lot of the talent future us, are anticipating, and what we are seeing play out right now , is people are staying in their jobs shorter than they used to. used to, if you'd changed jobs every 10 years, you would be a job hopper. now, people think you are stale. you're going to see more people moving, creating more opportunity for linkedin. the upside is even greater than people thought. gene, what is your number one question for jeff weiner? when our navigators going

to start being a sizable contributor? nice growth on the quarter, but i think that signing other had a theyowth and will add to the business over the next fivyears would be my question. it is safe toat that investors will feel better about the higher multiple just getting back on stable ground. would be yourwhat big question, if you were still at linkedin, for your ceo? guest: same story, how do you continue to stay focused, keep the culture fresh, keep your employees engaged, and stay strong? you don't have a natural competitor. anyone with as

flexible of a business on the internet as linkedin does. you ever are crooning, marketing, subscriptions. focused a lot to stay on, and that is going to be a big challenge, how will they stay focused and execute? emily: i will be asking some of those questions of jeff weiner, ceo of linkedin. i will be speaking with jeff winner tomorrow morning on bloomberg television. now to alibaba, signing an agreement with fitbit, helping the wearable fitness maker expand its reach in china. as part of the plan, fitbit will introduce its newest device, fitbit blaze. alibaba's third-party platform for major brands and retailers. other u.s. brands that have a big influence on that platform include nike and cosco. -- costco. for pandora, tensions are on the rise, despite mounting competition. and as we had to break, meet the

kryie, ae -- meet val six foot tall robot. a two-year grant was granted from nasa to test the robot. it is anticipated the robot will one day serve on future space missions to mars. ♪

emily: in today's "revolving door," a shakeup at priceline. the ceo has resigned after the company discovered he had a personal relationship with another employee. under hisee was not direct supervision, and the resignation is not related to the company's performance or

financial conditions. will take chairman his place as interim ceo while the company looks for a new leader. another story, paypal says figure -- says federal regulators are investigating venmo for unfair trade practices. filing of the investigation may result in substantial costs, including legal fees, final -- penalties, and remediation expected. back to earnings, pandora shares are rising after hours on a stronger forecast for the year. it's listener base is still growing. first-quarter revenue rose 29% to more than to enter $97 million a loss of -- $297 million. service added more than 200,000 active listeners from a year ago, and the total amount of time listening to pandora grew 4%.

all of this coming at a crucial time for the company to prove itself, with cofounder tim westergren newly reinstated at the helm. lucas shaw joins us from l.a. with more. lucas, what are the latest numbers you pull out? guest: the listener hours being up 4%, and sales beating the forecast. active listeners for pandora have not grown over the last year or year and a half, they are really steady, but the number that a lot of pandora executives stressed on the call was the listener hours, because it shows that the users are spending more time with the service. the number of users are staying the same, one way to keep growing is having's users spend more time with it. emily: when it comes to millennials, they are spending more time on pandora than youtube, but less than facebook. how significant is that stat? guest: it is a good stat for them to put out on an earnings call, with a chart.

what pandora is going for is the casual nature. you just put it on and leave it on. with youtube, you are clicking a new video every two minutes. pandora has really stressed that people like its product more than the marketplace thinks. there is this perception in some quarters that spotify and youtube have stolen thunder, and tim is working hard to try to combat that. emily: shares are down 30%. what can pandora do to change the perception on wall street? how optimistic are you about potential new revenue drivers, like concert promotions? how much can these new businesses add to the future? now ispandora right hoping that they can buy six to nine months of delivering solid numbers. the numbers at this point were not spectacular, but they are good enough that they pleased

wall street. if they can do that the next two quarters, they can hopefully rollout this on-demand product they say they will put together by the in thing of the year, and that will bring in new users. than just having setback radio, you can pick whatever he wants, just like you can with spotify, a darling with investors will stop -- a darling with investors. as far as the ticket business, we will see. they have bought a relatively small take in, but we will see if they can create a one-stop shop for music lovers. whether that will work, only time will tell. westergrenkly, tim just returned to the company. there have been talks of a potential sale. does this signify to you that they are staying independent for the longer haul? is theas long as tim ceo, i expect them to remain independent. he has been adamant in meetings

that he does not want to sell his company. ist's one of the reasons he back. he would always accept a great offer, but at the moment i expect him to stay. emily: lucas shaw, thank you. tomorrow, don't miss my interview with pandora ceo tim westergren, tuna clock a.m. new york time, 7:00 a.m. in san francisco -- 10:00 a.m. in new york, 7:00 a.m. in san francisco. -- ng up, if you like bloomberg news, bloomberg.com. more "bloomberg west," next. ♪

âi mark: federal it or say three people connected to the --

federal officials say three people connected to the san bernardino suspects have been arrested. the third person arrested is the wife of enrique marquez, jr., a friend of farook's, who has been charged for his alleged role in aiding the violence. video surfaced of a british couple and their son savagely beaten during a family vacation. allattack stops only when three victims are seen lying on the ground, apparently unconscious. four people have been arrested. french tourists were assaulted in thailand, two of them sexually. in france, protesters fought with police over proposed labor reforms. the protests caused cancellations and delays at two airports. the u.s. strategic command says north korea was unsuccessful in attempts to launch two suspected intermediate-range missiles

today. that brings than us -- the number of missile failures in recent weeks to three. day,l news,, 24 hours a powered by our 2400 journalists in more than 150 news bureaus around the world. from bloomberg world headquarters, i'm mark crumpton. it is just after 6:30 in new york. now a look at the markets. david: hey there, mark. -t has been, after a week of - asia seems to be heading into the weekend on a modestly downbeat note. the new zealand index opened up over 1/4 of 1 point, but it is trimming those gains. we will be seeing whether -- where that heads. in terms of results today, we will be watching haier, which

bought ge's appliances unit last week. haier put their results out last night, and that showed better performance from appliances, but not doing so well in plain, vanilla goods. we are watching their shares today. ♪ to my conversation with biz stone, the entrepreneur who cofounded twitter and medium.

biz stone is back in the spotlight today after hitting refresh on his latest startup, jelly. jelly is a very specific type of search engine. i began by asking why someone would choose jelly over google. take a listen. biz: well, it doesn't search the web. there is a very significant of questions -- percentage of questions and queries that have way better answers from a person, especially when you are asking the wrong question. only jelly can tell you, hey, you asked the wrong question. where is mission street? where are you trying to go? you don't want mission. there is a big thing going on. you should go on howard or whatever. ok. what i really want to know is where is howard. but a web search engine will just keep telling you all day long what you ask. -- asked. emily: my producer typed in "who is missing yahoo! -- "who is

netanyahu?" she got an answer in 30 minutes. "he is the prime minister of israel. a controversial fellow, but, to be fair, it is a difficult job." biz: we got you 100 million results in 0.35 seconds. that's great, but you have to click through the results and get some semblance. you spend several minutes in your search. what we are trying to do is say, listen, it takes 13 questions -- seconds to ask the question. put your phone down, keep having lunch with your family, whenever. we will do the work with you -- for you. it's an answer on demand. we think the future of search is, you ask a question, you get an answer. we want to close the gap from -- you have 10 or 30 minutes down to a second eventually.

we are starting with people who know the answers. it will very often give you the extra information. searchyou say it is like using amazon at go -- amazon echo. biz: time imagining a world in which voice is the main -- i'm imagining a world in which the voice is the main u.i. if you've seen the movie, "h delete, read yes, that to me." --n you ask alexa a question everyone should buy one -- i welcomed her into my home. she had dinner with us. if you ask her something like, what's the name of that text company -- tech company, the club that all of those tech guys

go to do in san francisco, she is like, "i don't know." a person will be like, that called the battery -- that is called the battery. emily: let's talk a little bit about twitter. the stock is down significantly since the last earnings report. biz: it is? curses. emily: it is down over the last six months is jack took over as ceo. why do you think investors are not feeling it? biz: six months is a really short time in the long scheme -- in the scheme of things. it takes a long time to take over as ceo and turn the ship around. it's not like the thing. i think wall street thinks in quarters. people like jack -- they think in decades. they think decades ahead. maybe it is down now, but he has these long-term plans, like jeff bezos does. don't invest in us if you don't like it, but i'm building a

company of enduring value, and you will see in 10 years how great it is. i'm with jack on this. she seems to have gone into some seemsf time chamber -- he to have gone into some kind of time chamber with a master ceo advisor and come out after 40 years only two years older and he is great. he is super great at this now. emily: do you think it will take that long? biz: it won't take a decade, but it could take longer than six months. give it a couple years. i'm holding onto my equity, that's for sure. jack is so great -- it is so great that jack is back. i'm comic -- i'm so happy. the combination of him and adam dane -- the world needs twitter. it's not going away. it's now a staple. nneeded.t be on- -- u once it is there, it is there.

it's only going to get better and grow. it's just temporary thing. emily: facebook is now getting into live. twitter for the last 10 years has been the place for live. but facebook has incredible resources to scale this. do you think that twitter can grow significantly bigger than it is right now, or is it fine as a smaller platform? is that just when it becomes? -- is that just what it becomes? biz: jason goldman, a friend of mine, used to work at twitter and worked with me at google. he always accuses me of spinning things, but i just think i have a positive attitude. when people say, well, twitter only has 300 some million people using the service, and facebook has one point something billion people using the service, i'm like, great, that's how many more people can use twitter. you know? there you go. that's the number twitter can grow to. people are like, are you

spinning this? i'm like, that's an aspirational number that we have to reach. emily: what about snapchat and instagram, which we are also seeing surpassed twitter in terms of users -- surpass twitter in terms of users? biz: i like instagram. all of my pictures were of my kid. people were complaining. is this all you're going to do? i was like, "pretty much." so i use it a lot less now, because it's the same thing every time. look at jake, isn't he cute? but everything grows. everything grows. some things fall. it depends on the value. if it is defending -- delivering value, it is here to stay. twitter delivers value. historically, getting information first is key and it makes you win. the same thing with jelly. getting the information, the right information, the good

quality answers, rather than --t looking through results you win. you know what i mean? you get through life. that whole idea of value is here to stay. emily: my conversation with biz stone, cofounder of twitter, medium, and now jelly. another revolving door story. symantec's ceo is stepping down after a year-and-a-half at the helm of the world's biggest ever security software maker. the company named an interim president while it searches for a permanent for placement according to executives on the semantic's earnings call -- symantec's earnings call, the decision had to do with brown achieving the goals he set when he was appointed. of those goals, one of them was in sale of veritas january, something investors had been urging for years. in february, ceo mike brown requested reflected on pressure from an activist investor and a

recent stake from silver lake. >> we are happy to see there is some external validation from these investors that what symantec is doing is on the right track. we are two years through a three-year transformation of the company, and i think this is an important inflection point, in terms of investors looking at symantec and saying, now it's time to get in that story. emily: symantec lowered its forecast for the fourth quarter, sightings -- citing shifting buying patterns. comcast buying dreamworks, the animation studio behind "kung fu panda." a $3.8 billion deal. all of ourng you best interviews from the week, including with t-mobile's ceo. he slams the competition. the best of "bloomberg west" this weekend on bloomberg

television. ♪

emily: ford is gearing up to take on tesla, announcing plans to interview so long range electric vehicle to compete with battery-powered models coming from tesla and gm. overcome consumer fears that electric cars will run out of power on the road, the auto giant will is -- invest billions. it expects to add 13 electric cars to its lineup by 2020. the parents of universal pictures agreed to buy dreamworks in a value deal at 3.8 -- $3.8 billion. dreamworks' ceo jeffrey

katzenberg will most likely step aside, remaining a consultant to nbc universal division and becoming a chairperson of the new division. what do you make of the terms of the deal? we have been reporting the imminence of this for a while. >> it's a great deal for jeffrey katzenberg, who, along with media mogul david destin -- davi d geffen, and others tried to create a studio called dreamworks, and it went through different iterations. for a couple years, the studio looked like it would be taken out by hasbro or softbank. they wanted to sell the company, but were not able to get to a deal. 2015 ofite a painful having to buckle down, cut they havetructure, managed to get a deal with comcast. it's like a 50% premium for

their closing share price, so they did well with this offer. emily: why does comcast want to buy dreamworks? in hollywood at the moment, it's all about content and it. disney is laying -- is number one in this race. they have a huge canon of content, whether it be marvel, pixar. this can pull from the whole fairytale history and make great films. between six or seven studios that dominate hollywood, they are all racing for content. dreamworks provides comcast's so universal great content, it can give the "shrek" character -- it is still a hugely popular brand. it can add film characters, but also rides for a theme park. emily: talk to us about jeffrey katzenberg's role in the

newly-merged company. is this really him stepping away? anousha: i think that is how it is being seen, yes. over the past couple of years, when people have talked about a takeover of dreamworks animation, they thought one of the challenges was what role would jeffrey katzenberg play. that's been hard for people to find solutions to, but this was kind of a neat exit for him. he will be the chairman of what they call dreamworks new media, which is effectively awesomeness tv, which is a great, exciting brand within dreamworks, which he bought. maybe at some point, comcast exits that business, because verizon already has a state in it, and maybe he moves -- has a stake in it, and maybe he moves on to other things. emily: thank you so much. tomorrow on bloomberg, do not miss "surveillance."

more of "bloomberg west," next. ♪

be nearings said to a deal to acquire digital video requiring -- recording pioneer tivo. it will likely pay a premium of about 10% for tivo, implying value of about $1 billion. one day, computers won't be a physical device, but formless ai, at least according to google. wrote the very concept of the device will fade away. over time, the computer itself will be an intelligent assistant, helping you through your day. google has been working on machine learning for years and is a major investor in an augmented reality start up. announcements don't

always pan out. sergey brin was still touting google blast in 2010. in asia alone, ad revenue rose 62% from the previous year. bloomberg sat down with facebook's vp for global marketing solutions to find out how the company markets to different asian companies. >> it's interesting. we do see cultural differences. for example, we have certain countries in asia that think we should have more marketing available via facebook and instagram newsfeeds. other cultures were -- will say, i'm fine with the marketing, but make sure it is relevant. the number one complaint we get about facebook is not that there is too much or too little, it's that it is not as relevant as it should be. ifause the expectation is, you are reaching me on my personal device, you are serving up something that is going to be useful and add to my experience. that's the expectation that consumers have. reporter: is that down to the

technology, the algorithms to be able to help personalization that much more? >> we are actually making significant investments in artificial intelligence to make the algorithms even smarter, to determine what content should we serve up. at any given moment, there is literally over 1000 possibilities to serve anyone who is pulling up their facebook or instagram newsfeed. what the algorithm is trying to do, and a lot of it is being done in conjunction with our ai efforts, is to determine what is the best content we conserve up, be it from friends, family, or brands. it is fair to say it has been a busy week with lots of earnings news. here to break it down, editor at large cory johnson. start with amazon. you remember it all by heart, right? let's start with amazon. numbers weres

impressive. we had two companies reporting this week firing on all cylinders, going through big changes with their business model. amazon was one of them. that topline number re-acceleration of revenue growth from amazon, into one of the biggest quarters they have ever recorded, the first -- biggest first-quarter they've ever recorded -- reported, really impressive. emily: let's talk a little about apple. shares have been falling. i just wonder where this is going. cory: it has hurt the overall market, too, which i have to pay attention to, now that i'm doing a radio show. the iphone is so much more important to this company than everything else. you and i talked about it this week. in its first year, the watch sold more than the tremendous and successful iphone sold in its first year, but it's such a big company that the iphone is the governor for everything that

happens. the following iphone growth -- falling iphone growth is a real disaster for them. the guidance is weak. this is a follow -- fallow period for apple before the next phone release. tale ofhat about the three cities when it comes to the social networks? facebook killed it. linkedin beat, surprisingly. twitter, not so good. cory: it's interesting that the smallest of them -- we have been talking about this idea. the winning companies in social media and in this era of the web are not two or three times better and bigger than the second company. they are 10 times bigger or more. me, twitter- argue and linkedin are the second most

popular -- arguably, twitter and linkedin are the second-most popular, but they are a fraction of the size of facebook. facebook is accelerating user growth, even though it is so much bigger. emily: when you look over the next quarter, we see so many companies reporting, which are the ones to watch? cory: this twitter chart is important. it's one thing we did see, the increased value of a twitter user. linkedin, facebook, and twitter have all figured out how to get advertisers to give them more money for each user. that's a positive thing for all of them. i look at the companies that are struggling. that's when a turnaround as possible and drama can be achieved. emily: i knew you could remember them all. cory johnson, our editor at large. now, it's time to find out who is having the best day ever or,

in today's case, the worst. russia planning to punish users of the -- of bitcoin. the finance ministry in moscow plans to submit along a month that would punish those who use law next month that would punish those who use electronic currencies. likea joint countries bolivia, iceland, vietnam, taking steps to criminalize the company and its use. that does it for this edition of "bloomberg west." do not miss my interviews tomorrow, including with pandora ceo tim westergren. ♪

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announcer: from our studios in new york city, this is "charlie rose." we begin this evening with our continuing coverage of election 2016. hillary clinton own -- won four out of five primaries on tuesday. donald trump triumphed in all five republican primaries. bob woodward, associate editor of "the washington post." in new york, michael barbaro. what was it you saw there? what is the quality of trump's foreign-policy vision? >>