the un security council is condemning the deadly airstrike in the syrian hospital run by doctors without borders. more than 20 people were killed. new zealand's permanent representative to the u.n. said it is time to shine a spotlight on the issue. >> you don't strike hospitals. these things are being recorded. these people need to be held accountable. russia which backs the government of bashir al-assad

denies any involvement in the airstrike. a senior u.s. official says about 16 military personnel have been disciplined for mistakes leading to the bombing of a civilian hospital in afghanistan last year. the service members received administrative punishments. no criminal charges were filed. a moroccan born man arrested an investigation had specific orders from the islamic state to carry out attacks in rome. allegedly planning to move from oman to isolate territory. ♪ emily: i'm emily chang and this

is "bloomberg west." coming up, amazon shares surge after sales topped estimates. jeff bezos is showing investors he can deliver profits and keep his side projects. 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. >> unit growth 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. ebay grew their gmb at 1%, so 1% versus 27%. emily: let's talk about aws, corey. this is a quickly growing

business. cory: 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. it is 64% 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 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 benefit ews.

the bigger question, the most frequent question i get from investors on amazon is, what's google going to do? amazon just started of restaurant delivery in san francisco, cory. is this just for fun, or can this be a big business? i love food. i think that we, the tech community of journalists, take amazon's product launches too seriously. amazon will try everything, then they get rid of it. that's what they do. it shows you that amazon, within 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, jeff bezos turned this into a popular business, the story of the last decade. what is the story of the next decade? cory: he runs these services with his tail as close to the wind as he can, picking up the smallest profit they can 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.

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 that bezos would plow them under. emily: all right, you will be sticking with me, and cory johnson, we will see you later in the show. appleshare slowed after thursday trading after carl icahn said he sold out of his shares. he told msnbc he short of his shares in february, citing concerns of the company's relationship with china. we learned that china shut down apples ibook services. ichan 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. shares have been gaining since 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 raised its guidance, indicating fears of linkedin's ability to stay in growth were overblown. this is in stark contrast to q4 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? 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 the biggest take away for investors is the 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?

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. i think the combination of getting investors more comfortable with their

registered user growth is going to lead them back to a higher multiple. emily: steve, 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? 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. emily: gene, what is your number one question for jeff weiner? guest: when our navigators going to start being a sizable contributor? nice growth on the quarter, but i think that signing other areas of growth and had a they will add to the business over the next five years would be my question.

steve, what would be your 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. you don't have anyone with as flexible of a business on the internet as linkedin does. you ever are crooning, marketing, subscriptions. there is a lot to stay focused 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. 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. meet valkyrie, a 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. the employee was not under his direct supervision, and the resignation is not related to the company's performance or financial conditions. the former chairman will take his place as interim ceo while the company looks for a new leader. another story, paypal says federal regulators are investigating venmo for unfair trade practices. paypal set of filing of the investigation may result in substantial costs, including legal fees, 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 $297 million. 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

the users are spending more time with the service. if 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. 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? guest: pandora right now is 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. spotify, 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.

emily: quickly, tim westergren 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? tomorrow, don't miss my interview with pandora ceo tim westergren, 10:00 a.m. in new york, 7:00 a.m. in san francisco. if you like bloomberg news, check us out on bloomberg.com. more "bloomberg west," next. ♪

production is at its lowest since october 2014. that did not help petro china. china's biggest oil and gas producer posting the first quarterly loss in its trading history. a third monthly drop against it again. central banks showed no inclination to step up support for that economy.

this is the latest chinese bank to breach agreements for bad loan agreements. it avoided reporting a quarterly loss. dropping below the mandatory 150% of nonperforming credit. there's a breach the 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. "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.

put your phone down, keep having lunch with your family, whenever. it's an answer on demand. we think the future of search is, you ask a question, you get an answer. you have 10 or 30 minutes down to a second eventually.

when 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 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 --

it takes a long time to take over as ceo and turn the ship around. i think wall street thinks in quarters. 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 kind of time chamber -- he seems 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. it is so great that jack is back. i'm so happy. the world needs twitter. it's not going away. it's now a staple. 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? 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 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.

getting the information, the right information, the good quality answers, rather than just 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 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 the sale of veritas in 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 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.

we will bring you all of our best interviews from the week, including with t-mobile's ceo. plus, 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. hoping to overcome consumer fears that electric cars will run out of power on the road,

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 comcast's 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 david 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. after quite a painful 2015 of having to buckle down, cut costs, restructure, they have 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? anoushka: in hollywood at the moment, it's all about content 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 nbc universal great content, so 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. ♪

emily: it is said to be nearing 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.

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. google brand 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.

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. because the expectation is, if you are reaching me on my personal device, you are serving up something that is going to be useful and add to my experience. 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.

emily: 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. cory: amazon's numbers were 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 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. falling iphone growth is a real disaster for them. the guidance is weak. fallow period for apple before the next phone release. emily: what about the tale of 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. 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 bitcoin. the finance ministry in moscow plans to submit along a month that would punish those who use -- submit a law next month that would punish those who use electronic currencies. russia joint countries like 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. ♪

paidis program is a presentation for omega xl, and is brought to you by great health works. ♪ larry: welcome. i am larry king. and i'm here to report on a significant health-related investigation that has been taking place for the past couple of years. the information i will provide