emily: wef bl west." we bring you all of our top pokemon go was unleashed into the world. the mobile game sent nintendo stocks soaring, and it led to fans with injuries. we will explain what all the fuss is about. the biggest technology ipo of the year. the japanese company line debuts this week. amazon prime day's transit -- triumphant second coming. this online the net is out with

the biggest sale day ever for amazon. we discussed where they go from here. to our lead, augmented reality has come to the masses. headlines were dominated by pokemon go from nintendo. it caught fans by storm. bloomberg west took a look at what all the craze is about. >> users are playing in the delivery room, restroom, even on the freeway. all in the quest of catching them all -- pokémon, that is. nintendo got a $7 billion boost from the latest in augmented reality. it is the top app on the u.s. app store. it is beating out tinder, rivaling twitter user numbers on android, and beating instagram in time spent. players chase mythical

creatures, pokemon, in real world surroundings using their smartphones. it uses the camera on your phone and gps technology to detect where you are standing physically in the real world. it makes pokemon virtually appear around you. it was built by a google spinoff, putting -- building on cutting edge mapping technology. it is the biggest game since nintendo started trading 33 years ago. the question is, can pokemon keep up the momentum and restore nintendo's former glory? emily: let's start with you. you are one of the foremost experts on augmented reality in this country. you are close to people who work on this technology. you have an application that works with 3-d technology. >> it is phenomenal. for everyone who uses augmented

reality applications, this is big, big, big. emily: we were walking by the -- in san francisco. everyone was staring at their phones. i am pretty sure they are all playing this game. >> it is interesting how social this game is. it has a number of features that are important. the popularization of augmented reality is a large part of this story. there is a sense in which this game is a real-world social network. if you look at the video just before this, they show flirting happening in the course of playing the game in the real world. that is brilliant, the way they have incorporated mapping data that seems to come from google and a lot of really interesting chasing and finding of cool things, and meeting people in the process. it's brilliant. emily: how does the technology

actually work? >> it is cool. it uses your location together with other sensors on the phone such as gyroscopes and the camera. it quits virtual characters in the real world. you have to find them and collect them. emily: do you have concerns about potential safety issues? the legal issues if you wander onto private property? >> absolutely. i saw stories of people getting into accidents this morning. it is just people getting extremely excited, just like you should not text and drive. you should not collect pokemon and drive. emily: it is not technologies -- technology's fault. david, do you think at a certain point there could be new rules? they remind you the game to be aware of your surroundings. i'm not sure that is enough. >> the tesla manual also says do not take your hands off the steering wheel. you cannot be sure how these systems get incorporated into the real world.

i think it is brilliant like 24-year-olds like your production assistant who escorted me down, he told me when he was seven he played pokemon. now he played it all weekend again. this is going back to the millennial childhood. they are flocking to it. emily: i had fun. i do not see myself spending hours doing this. i was concerned for my own safety, running into other people. i know you are close to people in the gaming community. what are the implications of the success we have seen here for the rest of the community? >> it will drive anything that is coming right now, we are seeing phenomenal success on the smartphone. as you can imagine, everybody is tilting the next generation of devices. this is insane validation or

-- for everybody working in this field. emily: what could this actually mean for nintendo, knowing that this is such a hit driven business and you need to maintain momentum? >> having the game direct people into coffee shops or retail stores, that is smart. that is a good kind of sponsorship. i think the impact will be bigger on perception of augmented reality and people understanding what that slightly dweeby sounding term actually means. i think that will be bigger than the impact on nintendo. experts -- this is like a dream come true. emily: thank you to radu rusu ceo of fusion. the biggest tech ipo of 2016. the japanese messaging at plans to take on facebook. this is bloomberg. ♪

emily: the japanese messaging application line is giving new hope. shares spiked in the debut. despite being little-known in the u.s., it now boasts 218 million active users monthly, most of them in asia. we caught up with the line ceo after thursday's u.s. debut. take a listen. >> first of all, obviously, i am very happy. we are very happy with the initial response from investors. at the same time we are going to focus on investing to expand our services. >> investing. you are the numbers man. tell us where that investment is going to go. >> we will be focusing on core countries, japan, thailand, and

indonesia. we will use money for strengthening -- one other interest is looking at investment opportunity for technology companies. >> what might that look like? when you say more investment in countries that are growing two or three times in some places. what kind of investment are we talking, acquisitions, organic growth? >> our -- we are making pathways to -- leaders in each different areas. >> how about the u.s. here, how important will this market be? it is still a small part of your business. >> the u.s. market is our dream.

especially in terms of smartphone optimized service, completing our service, we are expecting another chance at the u.s. market. emily: what sets them apart is that it has expanded into new businesses and verticals, from payment and merchandise to write -- ride hailing. digital stickers are big business in asia. bloomberg explains. >> meet tony and brown. these critters are coming for america as japan hit messaging service line makes a debut. stickers are a crazed in asia that is just heating up in the u.s.

people pay for stickers, often as much as two dollars per pack. as much as one in every 10 messages on its platform is a sticker. in the u.s., apple, facebook, and snapchat are playing catch-up. while u.s. companies do not charge for stickers yet, many think it is inevitable that they will. take for example the kim kardashian sticker application, is set to take in $2.8 million in revenue this year. there are worries the u.s. may be a little too late to the game. line saw sticker usage people in 2014. mine is expecting to crack open -- line is expecting to crack open new markets around the world to keep the sticker economy on fire. emily: joining me is randy

nelson, analyst at sensor tower. can you quantify how big the sticker economy is in the u.s. and globally? randy: like you mentioned, the sticker economy is in the infancy in the u.s. we saw facebook messenger and snapchat start to implement them. it is nothing like it is in asia right now. emily: how big is it in asia? randy: we are nearing that tens of millions of stickers are being sent, even in place of messages themselves. emily: how much does the average sticker cost? randy: the application comes with preset stickers to get you into the ecosystem. it gets you stuck in there. it gets you to start using them. you might notice your favorite celebrities are represented in the apps. when you find out that these are

one dollar per pack or two dollars per pack. there is a collectible asset -- collectible aspect to it as well. emily: facebook, whatsapp, messenger, where should we be looking for in some of these u.s.-based applications for the sticker economy to grow? randy: line has catching up to do in terms of u.s. user base. i message is one place where apple will be pushing this thing heavily. emily: our interview with randy nelson of sensor tower. nest's first new product. how nest is making use of google's artificial intelligence. under the microscope, we explore the world of an ultrasecret product being developed in the shadows.

this is bloomberg. ♪

emily: one month after the nest cofounder and ceo step down, alphabet has released their latest product. it is similar to the classic nest camera. it comes with a weatherproof case meant for the outdoors. it can detect if there is a person approaching the house or a car driving by. if it is a person, you get an alert on your phone. we spoke with the nest had of -- nest's head of hardware products the day of the announcement. >> it is cutting edge ai. we have turned something that is very high and and very complex into something fixed -- customers can expect every day. we will be able to tell exactly when someone is seen by the camera, not just that something happened in front of the camera,

but that a person was detected. it happens automatically. there is no learning, it just happens as soon as you are is a subscriber. it will automatically push notifications to your phone. it will tell you, we think there is a person, or we know there is a person. if you think about it, if you have a camera to protect your home, that means you will be able to cut through the noise and really respond to the once -- ones that are useful to you. emily: could you build this without being able to tap into google's deep resources in artificial intelligence? >> this is a great example of nest and google working close together. google is the -- we had the best camera on the market. both must be alphabet companies

means we were able to deliver this to our customers. it would have been difficult without google. >> what has life men like since tony left? >> he left a little more than a month ago. it is difficult to say what life will be like without him. ever since -- started, he has been setting up and learning about how we do things and why we do things. he has been shown to us and pushing us to think about things out-of-the-box to get us to the next stage. emily: how involved was tony with this particular before he -- this particular product before he left? do you think nest is better off? >> he was very involved with

this product. he was a driving force behind it. the original idea came from the engineering and product team who came to the table a year ago and said, we think we can bring to market a product our customers will love. we believe we can do it in less than a year, which is very aggressive if you think about a new hardware product. emily: last question, there has been criticism about how slowly and asked products have ruled out -- nest products have ruled out -- rolled out. tony was adamant you had other extensive products. what can you tell us about the products that are to come? will we see more products more quickly? >> last year we revamped our entire product portfolio. we introduced nest cam indoor a year ago. less than one year, we are

introducing our fourth product. we have been putting a lot of emphasis on software and services. emily: that was the head of hardware products at nest maxime , veron. still ahead we will explore the , world of ambitious, ultra-secretive products, and whether they can change the world in our investing roundtable series a. if you like bloomberg news check , us out on the radio, you can listen to us on bloomberg.com and sirius xm. this is bloomberg. ♪

emily: welcome back to the "best of bloomberg west." i am emily chang. it is time for series a, our weekly roundtable where we explore themes in tech investing. we hear a lot about moonshots, but what do we really know? they are in development for years, veiled in secrecy, the hyperloop. what does it take to find them

-- fund them? which will breakthrough in our lifetime? we spoke with men who make early investments in twitch among others. why invest in moonshots? >> they can change the world and make the world a better place. they can change behaviors and make lives better. they can solve intractable problems of humanity, which is like, why would you not want that? when i was thinking about on the way here is last week we had a rough week in our country. in terms of race relations, people getting along. we need moonshots for those kinds of problems. emily: is the goal social progress? is it making money? is it making life easier?

>> the goal is to inspire. so much innovation is incremental. moonshots push the boundary a little further. i don't think the immediate goal should be profit. i think it should be thinking beyond the current paradigm and collaborating in new ways, and hopefully building new communities. emily: i wonder, are large companies with deep pockets better places to do this because they have the resources, or small companies as they can be focused on a specific issue with more expertise? >> i will give the self-serving answer first. no. [laughter] big companies cannot always do it. there are examples where companies have taken huge risks internally, google, but it is hard to think long-term as a large company. we can find these and step back from the present need to protect

corporate interests and look into the future. we dream what is possible. there will always be, i believe, and people can disagree, these will always be robust startups, the elon musks of the world. emily: you are involved in several moonshots project at autodesk. i want to talk about the synthetic human genome project. >> it started with a conversation last year. i have been thinking about it a lot longer. there is an incredible project right now to synthesize the yeast genome. they are thinking, what will we do next? they wanted to be multicellular and a complex genome. you should probably take a human genome because it brings in all of humanity. emily: you are a software company. >> genome is software.

all the tools for genomes are software-based. all the tools ae software-based, so there is a very close relation between the software reviews in computers and ultimately being able to design genomes as living things. emily: draw out for me because we were talking about this earlier and dna can be used for coding? >> anything from a lip can be encoded in the na. every single cell in your body, you have 600 gigabytes of code. emily: how does that work? >> it is a case-by-case translation. bases.four computers have two. it is really high density, really inexpensive, and it may last years. emily: you are smiling. >> i heard it used to solve very

heart machine learning. if you think of the legal mind works and the many orders of evolution and algorithms built in, i think it could be cool. i don't know if it would work. it is not my field. the idea of that, using things from our bodies and dna sounds viable. emily: i wonder how important as that is. at some point, you have to decide, do we continue to work on this, or do we abandon this project? is it really possible? is it worth it? how important is timing? >> it is a critical factor in our business, and the general idea who will solve which will, most any problem we dream up, we can solve. we can send someone to mars. we will solve these human problems. we will have webvan.

food will be delivered. give us more time, and it will get there. emily: what about public acceptance? google bought boston dynamics, the futuristic humanoid robot company, and they eventually sold it because the public was scared. >> that is part of timing, right, whether the public accepts it. will the regulatory regimes catch up to it? it all goes into that. most of the technology, most of the progress we dream up will happen, but as the timing take advantage of it? that goes to the report part of the risk. emily: what about trying these one-time cures for cancer? i know how you put a price on that. i don't think you can put a price on that. arereturns important -- returns important? >> absolutely. you have to have a business model that can sustain growth. emily: are these things creating

new business models? >> absolutely. we all know computing, the cost of computing goes down. most people don't realize the thinking goes on in biology. the cost of writing dna goes down. we know that we are going to be able to write human genomes in about 10 years at an affordable price, but now, if we can use the same dna writing technology to do something simple: make a medicine to kill a cancer cell, now we can do it so cheap that we don't have to make it mass-market. we can custom design our computer, medicine or a single cancer, a single person, print it on demand at an affordable price. it goes from the blockbuster model to more of a netflix subscription model. emily: but it seems like the cutting at cancer technologies, cancer tears if you will, are insanely expensive. nobody can afford it. >> they are running on the old

business model. the new business model is making a drug for one person at a time. there is no clinical trials for those. it is always personalized. it is always specific. than expressive to come along benefits from all the experience of the last person. >> just a word on that because a ideas arese moonshot expensive at first an acceptable to only a few elite folks, but they don't work that well. once they become mainstream, the price comes down erratically. think about cell phones, internet. they go mainstream, and people cap for them. -- people can't afford them -- people can afford them. emily: where do you guys see the potential for the most seismic shift in moonshot technology? >> that is a tricky one.

you want to start? -- ihave been working on know the cost of writing dna changes, but i think there is a moonshot hardware project where we build next generation dna printers. that is a big part of the early work in the human genome write project, but when we have that, it is a game changer. it will empower the data storage example you use earlier. it will empower the virus work we are doing out. it will empower the design of new creatures. that timmy is one of the things really keeping an eye out for . >> the biggest gain we get has to be in health sciences. when we effectively can design things and targeted microchips to a specific area, we can cure diseases among live longer, make people's lives better.

it is more into his world in mine, but if i were betting on technology to make the world radically different in the future much much better, i think it is in the health. emily: we will do a liking right. you will tell me, are these losers are winners? flying cars? >> winner. >> it is possible. we are already seeing drones that can carry people around. emily: permanent human settlement on mars. >> absolutely possible. >> yes. emily: quantum computing chips. >> yes, but i don't know that that -- emily: will be that transformative? >> i am not given up into the semiconductor technology, but it works with quantum chemistry so yes. emily: hyperloop. >> same critique there. that is the best way to transport people, but to elegy will be good -- the technology

will be good. emily: flying cars. have been watching it closely, but anything you can do the math on and work. emily: last thing, immortality. you both had close experience with. your father things immortality is possible in our lifetime. do you agree? >> i think it is possible. the question is, are people ready to embrace it? these buys last forever, but as we have the moment with our memories, then we start to get a little closer. we have not had it yet, so the jury is still in. i don't think these bodies last forever, but i think our memories, if we can extract them and manipulate them, that is coming pretty close. emily: that was our guests. coming up, language apps.

aiming to capitalize on a huge capital. we had to berlin with the interview of the ceo, next. this is bloomberg. ♪

to the language learning out that is capitalizing on a huge market. the company is backed by ashton kutcher, google capital. it counts over 110 million users worldwide. we caught up with louis vuitton in berlin. >> one of the challenges has been keeping these servers up. a few thousand servers. it has been a challenge, but hopefully, everything is working well. >> any regions you want to focus on at the moment? notareas you feel we have discussed, the chinese for example? luis: even know quite a number of people are learning chinese

in terms of in the world, learning chinese is not as big as english. the one that is really big for us is learning english for chinese speakers, so we have that. we have an app in china and japan and all of asia. right now, i were biggest markets are u.s. and latin america -- our because markets are in u.s. and th latin america. we are trying to grow more in your. 30 percent of our traffic is in you europe. are talking every day here on business channels about the eu, the u.k. exiting from it, the economic situation at the moment. is there any concerns you have? caroline: i optimistic about people wanting to learn languages. in the u.k., we saw an uptick of people learning languages in the last couple of weeks, so i am optimistic.

particularly the u.k., there are so many different countries speaking different languages close to each other. it is different. compared to the united states, in the united states, learning a language is quite a hobby, where people here need it for work. caroline: what about talent? it is an ongoing scarce resource when building technology. have you managed to find the best coders to work for you? luis: it has worked out pretty well. the fact that we are a mission driven company, that helped us quite a bit. we are able to get better talent that if we did not have permission -- than if we do not have the mission. one of the problems we have had is the visa. we have not been able to get people bple visas.

caroline: is that something you would call on the next candidate? when we present the dual lingle to president obama recently, i think usually, this is one of those things that most politicians want to fix, but for some reason, it never gets fixed. caroline: you have the worry that you have one candidate that is running more ticket who wants to build walls. is that a real concern? luis: that it's a real concern because we are a language learning company. more than 50% of our people are actually from countries not the united states. in the office, people are quite concerned about that. caroline: tell me about the funding environment you have had. this is your third business. have people been knocking at your door? have you had to be knocking at therirs?

luis: fortunately, most of the time, people have been knocking on our doors. the last round was from google. we have been very fortunate to be a very good investors, and we are happy with them. it is an interesting company to invest in because we are mission driven. the focus of other companies seems to be making a lot of money. in this case, when we get investors, i make it clear for one, it will remain free. will try to make money, but the apple remain free -- app will remain free. it is interesting to see who backed out of that and who continues in the running. with germanwas luis high in berlin. coming up, amazon's biggest sales they ever this week, but shares fell in the data followed. what is the takeaway for investors? this is bloomberg. ♪

emily: now to amazon prime day.

the company says worldwide orders climbed more than 60% over last year. a hot seller, the video streaming fire tv stick, the best amazon gadget that helped amazon for both last year's prime day sales. our bloomberg editor cory johnson joined us to break down all the numbers. i think the results were generally in line with expectations. forunit growth, and growth party cells. puzzles, you these numbers numbers. a year ago, it was 400 million approximately, so that was roughly in line at least with our expectations. the stock has been running up. expectations were already there. the fact that it would only happy percent tells you it was -- half a percent tells you it

was what was expected. i suspect some of it has to do with the third-party access. they could see a lot of the traffic because some of it is captured at amazon themselves. as a separate story and a really good one, i think it shows us the ability to. peerazon is better -- to in amazon is better. emily: also because the devices were sold by amazon like the echo, like the tv stick. >> absolutely. how many echoes the you have -- do you have? i have one. emily: people have multiple echoes? >> i think having multiple hit on their hands here. we have several iterations, but it will get smaller and more and more functional. it will lead to a lot of incremental sales like other devices have. that would be one reason why third-party sources that have no idea what was happening at

amazon. only track sources third-party sales. cory: they measure traffic, but they don't measure it very well. to that point, the emphasis on amazon stuff as part of the sales was an important part, how is skewed the numbers, but it shows you how they built an ecosystem around amazon stuff, around using the echoes. one of the important things at it was the ability to shout in the other room, i need milk, i need tomatoes, whatever. emily: they are saying customers purchased on average a less exclusive deal using their voice per second, per second. >> it is amazing. >> there also something else important about prime day. it is not just the sales on that day, but the number of new customers there bring on the platform.

no longer people are with amazon, the more loyal they are. one of the ways to get you loyal is to spend $100 a year to get expedited shipping and access to things like free videos. the one thing they did not dispose was how many new prime numbers they got come up anything that gets more into the prime program and keeps them there, they will buy more vaguely, and they will buy a broader range of products. emily: the average length of a membership is seven years, which i assume will only get longer. cory: of course. it shows you why they are spending $2.5 billion this year on original content rather than amazon video. they want to meet people getting this and stay in this and not want to be anywhere else. said, where might you put some holes in these diverse, mark? there is information we don't have come at a given this is the second year, they benefit from everything they learn the second year. they sold a lot of hammocks.

maybe they learne last year having some are popular in july. >> if you want to poke holes in the numbers, you could say that was a lot a very aggressive price offers. items,50% savings on fashion, apparel. you can see negative margin surprised. that is one thing to look at. the daily sales are important, but just as important are these new prime members, which we don't have visibility into. we know they are loyal, spend a lot, and they want to bring those people in. cory: you don't want to poke a hole in a hammock. they are tough it out as it is. emily: we heard from mark andreessen in talking about amazon checkout ever bloomberg technology conference where amazon has lacked te ch. how do you think amazon is positioned compared to the other

tech giants out there? are they in some sort of better and unique position? a venture capitalist thinks they could hit a trillion dollar market cap. mark: those two are experts. it is hard to say anything that would be better than they said. i will say that i was with david lynn yesterday. he is head of amazon devices. he said one of the things they are doing is they will try to platform.biquitous they will integrate this into cars and multiple different devices. they are going after google. they are going after scenery. -- siri. they are open wide for developers. is to be a change to the amazon thesis. emily: what about the kindle? mark: you wonder about that. they gave a couple data points of that. , thatappened with kindle is the device that give them

confidence they can sell these devices at cost or a profit because they are the ultimate cross seller in the profit. you buy a kindle, guess how many more books you will buy. amazon is trying to reduce friction. you give them a device, let them carry around a card 24/7. that is the magic behind amazon's device strategy. ought like google, google cannot cross sell things effectively. apple may be can. amazon is the ultimate cross seller. they can make a business out of it. cory: when they lost the fire on with fanfare, total faith plan flop. echo launched in silence. they are still green to try things, but maybe more conscious to look before they leap. emily: coming up next earnings report, will you be looking for? mark: the revenue numbers, the margin trends.

i think they are showing a real ability to generate lots of cash flow. i think the story of amazon over the last month has been ramping, rising cash flow. free cash flow. i know you are focused on. im am, too. we saw the television in north american growth. i think they are starting to see really good traction in india, so the next leg of the growth and stock is international retail. does that start accelerating like north america? emily: how formidable is alibaba? mark: in china, game over. emily: everyone else? mark: there is no game outside of alibaba we have seen. emily: mark an cory johnson. -- and cory johnson.

that does it for this edition of the best of "bloomberg west." be sure to tune in monday for our exclusive interview with chuck robin. tune in 3:00 p.m. pacific. this is bloomberg. ♪

♪ narrator: the challenges facing our world are growing all the time. how do we build a stronger economy with equal opportunities for all? how do we build a sustainable world for generations to come? how do we protect our cities and harness the power of technology for a common benefit? in this series, using the latest bloomberg research and analysis, we will make sense of the problems of tomorrow -- inequality, sustainability,