alisa: i'm alisa parenti, and you are watching "bloomberg technology." house republicans are under pressure from the white house to vote on their stalled health care bill this week. house speaker paul ryan said today there has been real progress in winning over skeptics. former national security advisor michael flynn's speeches are being probed by a pentagon a watchdog. you the defense department is investigating whether he obtained approval for remarks russia-backed media network. in 2014, he was told he was prohibited from accepting payments from a foreign government without approval. two u.s. service members were killed and another wounded during a ground assault against islamic state fighters in

afghanistan. the military says u.s. forces were accompanying afghan troops on the raid when they came under attack. dr. david dao, the united airlines passenger dragged from a plane earlier this month, has settled with the airline. that is according to his attorneys. they did not disclose the amount. united is also revamping company policies. the airline will offer as much as $10,000 to customers who voluntarily give up their seats on overbooked flights. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm alisa parenti. this is bloomberg. "bloomberg technology" is next. ♪

caroline: i'm caroline hyde. this is "bloomberg technology." coming up, big tech declares the first quarter. amazon bets, sales through the roof. we will crunch the numbers. alphabet survives its ad platform backlash and unleashes a banner first quarter. we will highlight the numbers across the board. microsoft concerns bubble to the surface. shares drop from record highs after the third-quarter report. we explain why. first, amazon shares popping in extended trading. i want to bring you up where we are currently performing, up about 4% in trading after record highs hit on thursday. up 3.6%, the e-commerce giant reported a 23% increase in sales and a profit of $724 million in its quarterly report. the cloud services arm reported 43% increase in sales. founder and ceo jeff bezos

highlighted the company's success as it pushes into international expansion, particularly into india. here in the studio is jitendra waral. let's take it to you first. give us a quick snapshot. we got a significant beat in earnings per share. revenue pretty much in line, but still growing at quite a clip. jitendra: they are executing well on all cylinders. that's what they are showing. the whole investment cycle that amazon embarks on, we can deliver the topline growth, so it's ok if we increase spending to bolster our growth story. from a profit perspective, aws, biggest contributor, the north american margins are steady, but the international losses continue. they are expanding aggressively

and they have a lot of chances to expand internationally. this growth runway continues. more importantly, they are showing they can execute against these numbers. caroline: i want to dive into my bloomberg again, because it's quite phenomenal. even though we have these records for amazon, we have not one single sell on this stock across recommendations. largely they are buys, a few holds. the stock trades higher in after hours. let's get james mcquivey's point of view. was it aws that stood out for you as well as prime? what about some of the margins? james: we are happy to see aws perform so well. there was some softening in the last quarter, so it was good to see the numbers come back up. we need to see that it can fire on all these cylinders, and it is. but the u.s. business in particular, the margins are small, will continue to be small, but we are really confident that it will continue

to grow, even a small margin, year after year after year. there is still so much headroom in the u.s. retail business for amazon to claim. between a high-growth product like aws and a solid domestic retail business that is growing, that's what's going to fuel the international expansion they are working on. caroline: both of you have talked about international expansion. i think it's really interesting the earnings press release led with india. this is such a clear sign of intent coming from amazon. jitendra: absolutely. if you look at their strategies, their pricing strategy is also different. it's basically telling you that they are expanding by localizing their strategy, which is really working for them. caroline: mexico, also a new area they are launching prime. what about content? with amazon prime comes the amazon fire stick and fire tv. they are spending big as ever. they reap the revenue, but do

not always deliver profitability. james: a real way to think about the video focus, any other content focus of amazon, is how do we increase the number of engagements per day and minutes of engagement per day. you can think of amazon echo and alexa as an extension of that. it can include asking alexa, what's the weather. all of that eventually accrues to i'm going to shift a larger percentage of my retail spend to amazon. even though that's not generating topline dollars for them, it is cementing what is undoubtedly the industry's most powerful customer relationship. caroline: where next in terms of can amazon profitably go? record highs across the board for many of these stocks. i'm looking at amazon with $439 billion market cap.

are you expecting continued positivity? jitendra: now that these touch points that amazon keeps adding, with the video, the ai assistants, different products and services, it brings people back to prime. once people are back to prime, they spend more. this cycle has a long runway. if you look at the markets, a lot of verticals, they are just starting to enter. of course, the cloud business, which continues to beat expectations in terms of how big is this market. that number keeps on going up. i think they have markets big enough to support that growth longer-term. it's just the balancing act of how much should we invest and continuing to show these positive roi numbers through revenue growth. caroline: james, i asked this to our guest when we discuss alphabet. how worried should alphabet be by the growing advertising start of the business that amazon is starting to show off?

are these key competitors fighting it out in cloud as well? james: these are two of the most unlikely competitors that, for years, people tried to separate mentally. they are in the business of attention. if you think specifically about advertising amazon is in a , position to give you a much more contextual ad placement than google is. even though you're working against search results, not as powerful as product search results. when you add what amazon can do when it starts observing you in your life with cameras it has added to its alexa/echo line, it's going to be in a position to know so much about you and make product recommendations that surpass the value of advertising, coming at a time when major brands are pulling back billions of ad dollars which they aren't sure are spent well. if i'm google or alphabet, i'm very nervous. caroline: fascinating points of view from both of you.

james mcquivey and jitendra waral. fascinating insights into stocks they just keep on giving. several tech giants reporting earnings. microsoft reporting a 60% jump in earnings from the same period a year ago. the company is continuing to see growth in its cloud software business. shares lower in after-hours trading. now, looking at intel, results fell in line with estimates and it raised its full-year view, but numbers fell short in its data center business. more coverage in reaction to those results later in the show. do stay tuned. coming up, we continue to break down all the tech earnings. up next, alphabet surging after beating on its results. this is bloomberg. ♪ caroline: let's continue on the

tech earnings bonanza. alphabet -- paid clicks up 44%, beating industry expectations. revenue from its other bets unit showed improvement, generating $244 million in the period. investors are pleased, shares surging post-market. currently seeing it up 4.2%. amazon and alphabet both ticking higher, near or at record highs already. alphabet worth $610 billion. let's get more reaction. joining us from new york and from washington, harry kargman and mike bailey.

let's get the investor take first. mike, how are you looking at these numbers? mike: no major concerns. i think it's a pretty clean beat. we were a bit surprised. the stock is not up more. the earnings beat by about 4%. the stock is up 4%. investors are treating this as the same company it was before the earnings came out. in our minds, this is a higher quality company. investors are not showing that in terms of rising sentiment. we are still as confident in alphabet as we were before the earnings came out. caroline: harry, i want to get your point of view here. i have been speaking to an executive at alphabet and asking, what about the youtube controversy, what about the backlash of advertisers and perhaps the slowing down of wanting to link yourself with certain videos, and they said this is only going to be a modest effect in the

medium-term. in the longer term, we might actually see some improvement if they change the business. are there worries surrounding this? harry: in q1, it's not going to affect the business. the ad boycott only started in the last month or so. it started in the u k and is spreading to the u.s. if you look at youtube as an entity most of its revenue is , generated from the small- to mid-advertisers. it is a one-stop shop for them. themhem that want to be in brand safe place youtube is a , scary place to run. it was not built for those large-scale brand advertisers. youtube was caught proverbially with its pants down where there is now a lot of press around great advertising and great advertisers running against hate speech and other problematic content. but what we are seeing is that google is now having to approach this problem and deal with it. there are chinks in the armor.

caroline: chinks in the armor. you are not worried about youtube at all? mike: we are not too concerned. i was watching you earlier. the commentary that google only expects a modest impact here. i think that's very telling. this is a major blow to potential sentiment, a blow to the pr for google. here they are, and it's only going to have a modest impact. i think in our minds they have done a pretty good job of identifying the problems, working to correct it. our sense is that google is seeing everything from the inside, and they are not seeing a major impact yet. i would typically go with some of that commentary in terms of the forward impact. caroline: harry, moving away from youtube and looking at other areas, we are all very concerned about the money being plowed into so-called moonshots. do you feel more at ease, that

perhaps they have a handle on their spending? harry: i don't think it has made a major contribution to the revenue. the core business is still advertising across search and video. i think that they are going to be careful about spending their money in the right places. i think the key thing for them is they have to find that next growth area. who knows whether these types of problems associated with content are going to have long-term effects on their video business? i think search is pretty safe, but their video business, i think over the long-term, if it is not seen as a safe place for brands to run, i think it will have a material impact. you may not see it the next quarter or even the quarter after, but i think you will see, over the next few years, there is not that plowing of 80% of budgets into youtube digitally. these moonshots are to diversify their revenue. caroline: amazon becoming a

threat on multiple fronts. i want to get the investor take here, mike, on whether you think amazon is a key threat now in terms of advertising, in terms of cloud. mike: absolutely. i did hear your earlier guest. it sounds like he's a little more concerned that amazon may be getting into google's territory in terms of advertising. we are a little less concerned. if we pull back and look at this quarter's earnings and look at all the different sort of dynamics here, we are seeing rising barriers to entry. we are seeing that across basically all the bank stocks. our sense, in particular for the advertising space, specifically for google and for facebook, we are seeing very high barriers to entry that continue. in our minds, as we pivot over to amazon and asked the question, are they going to get into google's ad business, we think that google has a pretty big head start.

we think it may be somewhat difficult for amazon to make some gains there. amazon has plenty of other growth drivers. at this point, we are really not too concerned about the competition there. caroline: frenemies for now. the shares continue to trade higher for both alphabet and amazon. harry kargman and mike bailey, thank you. coming up, our exclusive interview with paypal's cfo john rainey. we will dig into their growth in the overcrowded payments industry. this is bloomberg. ♪ caroline: paypal shares popped

over 6% in trading on thursday. investors are embracing the company's strategy of converting the online payments platform into a digital wallet. you the ceo's strategy is will working as the company

raised its annual forecast. i spoke with the cfo, john youi spoke with the cfo, john rainey, earlier. john: partnerships has been a big part of our strategy when we made a pivot about a year ago, a starting with some announcements with visa. those have been followed on with will announcements from facebook, alibaba, and google. the space around payments and will the combination of online and off-line continuing to merge -- it increases the addressable market. you it's one where we believe the right strategy is to partner with others and build on their strengths that complement the strengths of paypal. caroline: a lot of what you are a now focusing on is payments. you what about the credit side and of the business? we talk about spinning out that area of offering loans and in credit to people and businesses. is that something -- you talk of an asset-like future.

is that something you can explain for us? john: sure, that's a great question, caroline. we have a credit product that complements our product for the consumer. we want to continue to be the credit business. we can do it in a less capital-intensive manner. you are in capital-intensive manner. we have over $5 billion of you will we have over $5 billion of consumer credit receivables on our balance sheet. we are exploring partnerships will with other issuers or even you a strict pure-asset sale so will that we can free up that cash and use it for capital you cash and use it for capital allocation to what is perhaps higher returning investments. will higher returning investments. caroline: what sort of you higher-return investments like world are you analyzing? john: most importantly, investing in ourselves. we are a growth company that is growing revenue. you will there are a lot of acquisitions that help fill in holes that we have or white space where we are globally. in we have the balance to

distribute cash to shareholders. we just announced this quarter that we increased our share buyback authorization to $5 billion following the $2 billion one we announced last year. caroline: you talk about the white space that potentially could be analyzed for acquisitions. what gaps do you want to be filling in? john: certainly, if you look across the world, whether it's asia or getting down to africa, parts of europe, there are markets that we are not penetrated into the extent that we would like. we talk about democratizing money. if you think about emerging economies broadly, there are 2 billion people in emerging economies that don't have access to basic things you and i take for granted, like a checking account, savings account, having a mortgage on their home. the benefit of fintech is put all the power of a bank branch in the palm of their hand.

there is a huge addressable market for us and many others to play in. caroline: fascinating. maybe we reach into the emerging markets. i'm interested in some of the products currently available in the united states, perhaps moving to the u.k. talk to us about venmo. how do you think this might be monetized? is it all about user engagement? john: it's about user engagement and customer acquisition. it's one of the largest vehicles we have for acquiring customers today. it truly is a viral app. what's unique about it is that it combines not only peer-to-peer payments, but a user experience as well. 90% have share the experience with their friends. that's of huge value to merchants. there is high fidelity in what one individual does in terms of their purchasing patterns and

its influence on other individuals. we are just now launching pay with venmo, which is enabling us to expand from just a peer-to-peer platform to where our customers can pay with venmo at stores. certainly merchants are looking forward to that as well. caroline: there is talk of competition in this area. apple is said to be analyzing a venmo rival. would that be a concern? john: competition is nothing new to us. there is a huge addressable market. certainly, there's a lot of excitement in fintech in general. that's why you see the level of competition that we realize today. in the face of that competition, we have been able to grow our revenue upwards of 20%, continue to expand our operating margins, and generate free cash flow margins 20% to 25%. it is what gets us up in the morning and excited about facing the day. caroline: sometimes competitors

can become frenemies. we've seen you strike an interesting deal, thought of as wise with the analyst group, in terms of integrating into android pay. what about integrating into apple pay? john: whether it's apple pay or any other technology platform, one of the great aspects about paypal is that it's truly technology agnostic. it can be used across any platform, any mobile device across the world. our aspiration is to partner with all those major technology players to allow our customers, most importantly, to use paypal whenever and wherever they want. caroline: that was paypal's cfo john rainey. coming up, microsoft's earnings showing a slow in momentum. we will dig into the numbers. if you like bloomberg news, check us out on the radio. you can listen on the bloomberg radio app, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪ hey you've gotta see this. c'mon.

no. alright, see you down there. mmm, fine. okay, what do we got? okay, watch this. do the thing we talked about. what do we say? it's going to be great. watch. remember what we were just saying? go irish! see that? yes! i'm gonna just go back to doing what i was doing. find your awesome with the xfinity x1 voice remote. family time is awesome! show me the radio disney music awards. just say it and see it with the x1 voice remote. and you can catch up on all the rdma buzz... with artist interviews... past performances... and more! available now on xfinity on demand. xfinity the future of awesome. and to find out how to catch exclusive videos

featuring rdma host jordan fisher. and the ardy goes to... watch disney channel presents the 2017 rdmas. april 30th on disney channel. >> it is 1:29 in sydney, i am paul allen with the first word news. president trump is prepared to leave nafta if he cannot have a better deal for america. stance,ed his original saying he is willing to negotiate terms with mexico and canada, but warned he would not hesitate to pull the u.s. out of the deal. all sides say a talk should be before the end of the year. pboc say china's internationalization for the yuan is on its way. global role yuan's

is a macro driven process and the natural result of them opening up. confident in growth of 6%. mongolian broadcasters and websites have gone to black to protest a bill they think is it censorship. several papers printed black front pages to call attention to the so called a law on infringement that would allow police to impose fines of $40,000 for spreading libelous information without permission. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. >> weakness in asian markets, lower.e it shares nikkei 225 down 2/10 of 1%.

consumer stocks not getting a boost from retail. department stores registering weaker sales. will check in on this function of the month to date basis. no surprise, chinese stocks causing the biggest decline. concerns over financial deleveraging. some voices saying there is opportunity to be had, and controls are positive. upare seeing the costs go 2/10 of 1% for the month, ending of the strongest level since 2011. the ringgit, a surprise out performer for april, up almost 2% of the hong kong dollar -- 2%. 50% -- ore losing

15%. we are seeing u.s. supplies and inventory from the u.s. pickup, despite their best efforts. ♪ caroline: this is "bloomberg technology." i'm caroline hyde. we returned to our top tech story of the hour, earnings. we've gone through amazon and alphabet. now onto intel. it seems it's best business is not living up to company expectations. sales below the company's long-term goal of double-digit percentage growth. intel is trying to spread its bets away from the personal computer market that has been declining since its peak in 2011. shares of intel down almost 4% as we speak, on the bloomberg. watch out for that stock as we open tomorrow. now to another pc-exposed

business, microsoft also reporting revenue. the company missed estimates on its personal computing side of the business. anurag rana covers microsoft for bloomberg. anurag: the pc numbers were ok, but it was the surface tablets that came out below. one of the comments we read on the tape was that there were some older models that were likely the reason for this downfall. we see this in hardware cycles when you have newer models come in. the growth will come back. for us, the biggest issue is to talk about the enterprise and the cloud business, where the numbers were very strong. caroline: talk to us about the real growth area. this is the number two player in the market. what sort of growth are we seeing? anurag: they grew about 94%. if you compare that with amazon, they grew about 43% this quarter.

amazon is much larger than microsoft in this business, but they are a strong contender as number two. their legacy product business actually grew as well. one of the things we've been talking about is, as legacy enterprises move their infrastructure to the cloud, they would need a company that is very strong both on premise as well as the cloud. if you look across all different technology companies offering cloud services, microsoft really foots the bill into that prescription. caroline: i'm looking on my bloomberg and digging into the segmentation of microsoft. 44% was more personal computing. 27% is cloud, intelligent cloud, they call it. how much of the business of microsoft could the intelligent cloud become? anurag: it's a very small portion of global spending right now.

if you look at public cloud spending, according to any estimates, it is somewhere around $100 billion, $200 billion. this is still early innings. there is a lot of growth for everybody in this business going forward. caroline: looking at the shares, down at the moment after hours, about one percentage point, is this largely in part because they've been at record highs? anurag: expectations for not just microsoft, but a lot of tech companies have been very high going into the quarter. they have been close to all-time high for the last several days. all of that included with this miss that we talked about on surface tablets i think is the reason why you are seeing the stock down. to be honest, it's not down more than a percent or two. caroline: still a hefty $520 billion valuation. anurag, great to have your perspective. sticking with microsoft, the world's number two cloud

platform, is nipping at amazon's heels. ahead of the company's earnings results, we spoke with the executive vice president for worldwide commercial business about the growth in this very unit. >> when enterprises choose to go to the cloud and choose to truly digitally transform their businesses, they are choosing to partner with microsoft. if you take what happened with ubs, they chose to move their risk management solutions to azure, not because it's a motion of moving their assets to the cloud, but, as the largest manager of wealth in the world, it's critical that they choose a partner that operates in more regions than any other cloud provider and choose a partner that adheres to local data sovereignty and security laws. the investments we have made in particular for the globally systemic, important financial firms, are what's fueling the growth in financial services. we have announced relationships with ubs, visa, metlife, and

geico. we are seeing the fuel of differentiation for our enterprise growth. caroline: are these enterprises ever moving off aws and off google to microsoft, or are they already customers of yours? judson: many of them have been microsoft customers for years. the trust they have with microsoft in the enterprise space, that leads to them choosing us as their preferred cloud platform when it comes to their most important workloads. we see it as a multi-cloud world. we think customers will dabble with our competition. cloud platform when it comes to when it comes to building new businesses, truly digitally transforming, establishing new product lines, they want to go with a partner they trust and one they have trusted for many years, so many of them are choosing microsoft as their enterprise cloud partner. caroline: what about the move to a hybrid cloud? many companies have been slightly concerned, more risk-averse towards moving purely to a public cloud.

you are offering a hybrid stack coming in mid-2017. is that a real area of growth for you? judson: it's a massive area of growth for us. we see customers needing to leverage hybrid cloud technology. the first thing you have to get right in any of these digital transformation scenarios is to get your data estate right. if you operate in a highly regulated industry or in many parts of the world where the public cloud may not be appropriate, the notion of leveraging what you have in your data center and coupling that with the public cloud to serve up a better offering is what we see customers doing today. the deep intellectual property investments we've made in on premises technologies for many years and is the same codelines we leverage in the cloud allow customers to leverage hybrid cloud with one common investment frame.

they can write once and deploy anywhere with the microsoft cloud. caroline: looking at the competitive landscape, aws, google saying they could see their cloud bigger than their search part of the business -- where does microsoft see its cloud business? judson: we are two minutes into a very long game right now. we like the momentum we are seeing. certainly in some of the biggest growth industries and the biggest markets, from financial services to global trade. the relationship we have announced with maersk to aerospace to the connected car. this will fuel our growth for many years to come. caroline: that was some of my conversation with judson althoff. catch our full conversation on bloomberg.com. now, a story we are watching for you, the foxconn chairman is planning to meet with president donald trump in washington next week. that's according to a report by nikkei. no word yet on what the two parties will discuss, though

manufacturing and trade are likely to be top of the agenda. coming up, our exclusive interview with the ceo of boxed. how the startup is planning to take on amazon in the battle for household goods. and just to recap one of the biggest tech earnings of the day. alphabet shares popping in extended trading. we just heard from alphabet's ceo on the investor call, addressing the youtube ad backlash. >> brands and agencies understand how hard we work to create as safe as possible and environment. we do this while being very careful to ensure youtube's innovative creators can earn money to support their unique and popular content. we have been actively engaged with conversations with clients about the new tools we are providing, and we are having very productive discussions. ♪ caroline: amazon shares are

continuing to surge on its impressive first-quarter earnings report. one company that perhaps might be not so daunted by this competition is boxed. the startup is betting that its inventory and automation system will give it an edge over its much larger competitor. earlier we spoke with its ceo for an exclusive interview and asked about their battle over automation and what it means for the company's human workforce. >> we are blessed that our business is growing very rapidly. there is a huge shift of consumers buying cpg online these days, so luckily it's more about capacity than it is about bottom line dollar savings for us. i recognize that is not the case for every company out there. but for us it is more about getting every package out the

door rather than needing to cut , every last person on the warehouse floor. caroline: therefore you can automate. you are making it more efficient. surely it means you're going to be able to hire fewer people going forward with this efficiency. chieh: anyone out there doing the simple math would be able to tell that we won't be hiring as quickly, but, at the same time, we are awfully loyal to the folks who got us to where we are today. that commitment to them stays true and no one will be laid off at our current facilities. caroline: it is amazing when you look into some of the perks for your employees, you offer them equity. you offer to pay their tuition fees for their children. you pay for the weddings of their children. how expensive is a wedding in your mind's eye? is this in opposition to amazon to show that it's all about the , employee base? chieh: the message out there is that we are still hiring, even for news anchors. if there's any life events coming up, you are welcome to apply as well.

caroline: i'm good, thanks. chieh: it really is a little bit -- it's a little bit of a contrast, as just being a technology company, but me and the management team being pretty old-school in our policies and philosophies towards the folks that work at our company. about a quarter of a century, maybe 50 years ago, it was the norm to take care of the folks that work for you day in and day out. that has largely gone away over the last 50 years or so, and we are trying to bring that back. sometimes it doesn't make sense on paper, but when you think about all the things we have benefited from, not only their hard work, but the lack of turnover in our company, you start seeing other benefits, rather than just looking at p&l all day. caroline: talk to us therefore about the difference in business model that you have to the larger everything store, as we call it, amazon. they have 350 million physical products. you have 1500.

how do you pick those? chieh: we hire people who are way better at it than i am. we started with 200 items and they were all wrong because i picked them. our chief merchant used to be head of sam's club west. with her 22 years of experience, she had 54,000 people reporting under her she does a way better , job than i did in the garage 40 months ago. to your point, it really is the opposite of what amazon does. i still feel like amazon does a really good job at being the everything store, but our consumer wants to stock up. our b2b consumer wants to stock up for their businesses. even in the bloomberg office, i see a multitude of snacks, drinks. and i'm 120% sure you guys aren't ordering that off amazon, and there is a reason why. that wholesale consumer doesn't want access to everything. they want a limited assortment, large format only. they want to access it with ease.

they want a great deal that's only offered if you move a lot of that single upc. that's core to our business model. caroline: how much more will we see a focus of purchasing online for grocery items than is currently the case? what kind of penetration do you see in the u.s.? chieh: it's only 2% or 3% depending on what study you look at. in western europe, it's as high as 10%, depending on the country. it's not going away anytime soon. as the shift gets bigger and bigger, that shift and the speed in which it is shifting is accelerating. i think we are awfully blessed that we picked this industry and we are on the other side of the table. i think there will be some retail pain continuing to be pervading throughout the industry. caroline: no membership fees. what sort of update you have for us in terms of numbers of members and where you want to grow?

chieh: from tapegun in hands 40 months ago, we have millions and millions of customers. it's widely reported we have crossed the nine figures in trailing revenue within less than three years after launch. i think we are in a good spot. if you're thinking about it as a poker game and thinking about the overall industry and industry change, we think the river card for us is a pretty good one. that's why i have this big smile on my face. i guess i have it all the time. caroline: a very upbeat boxed ceo. coming up, we continue our coverage of tech earnings. how gopro's turnaround efforts are faring. we'd like to bring to your attention our interactive tv function at tv on the bloomberg. you can watch us live and dive into any securities or functions we feature. you can become part of the conversation by sending us instant messages during our show. this is bloomberg subscribers only. this is bloomberg. ♪ caroline: now, it looks like

gopro's rebounding efforts are showing results. the technology company known for a its action camera reported earnings that exceeded sales estimates. the company, which is not profitable, reported $218 a million in revenue for the first quarter, exceeding analyst estimates. joining us to discuss this and a few other tech headlines that caught our eye, bloomberg's selina wang. gopro, a company often watched, the fall from grace, seems to be picking up. 19% increase in revenue. selina: these are the first signs that their vast turnaround efforts are starting to take shape. i spoke with the chief operating officer, who has vowed to cut -- vowed to cut

costs, streamline the workforce. we are starting to see that take shape. they did reduce operating costs. they said they are still trying to reach profitability by the end of this year. we saw some new revenue growth areas from the drone coming back on the shelves as well as their hero 5 camera now recovered from production delays and international growth. caroline: gopro looks like a go story. baidu is not looking as pretty. selina: baidu missed forecast for the second quarter and they also had a bit of a mixed bag. they only barely beat some of the sales estimates. this is a company that has faced a lot of headwinds from alibaba and tencent. in china, they call it the b.a.t. the b part has become much diminished. they are well known as the google of china. they used to dominate the online ad market. now they are seeing alibaba take market share in their core business. they have tried to venture into other businesses like on-demand. even in those other ventures, alibaba and tencent are taking market share.

they had to recover from some regulatory scrutiny last year. caroline: talking of the competitive landscape, i want to shift from public companies to ones we all sit and watch and wait for when they will become public. we're talking ridesharing. lyft, it looks as if they have dimed out on uber's turmoil. selina: i received some financials that are actually private and they showed that lyft is benefiting tangibly from the debacle with uber over the past few months. we saw ridership increase dramatically. their gross looking increased dramatically. they have losses of about $130 million in the fourth quarter. they have cut that significantly from before. everything is on the correct track for them as of now. they recently raised a very large round of funding at a much higher valuation. while they are still a fraction of uber's business, these numbers show they are well on the way to gaining market share

-- continuing to gain market share. caroline: absolutely fascinating whirlwind. bloomberg technology reporter selina wang, thank you for joining us. on the car theme, there's a great bit of news. go to bloomberg.com. get into the apple ticker. we have photos of the first apple autonomous test car. a lexus, it would seem. these have been got by our great reporting staff. we have been looking at some of the key movement into apple's autonomous vehicles. here you have some of the first-ever photos. go to your bloomberg now, get into bloomberg.com. check them out to see what apple is trying to do to keep up with the likes of waymo and uber when it comes to autonomous vehicles.

let's recap some major movers. i want to be looking overall at alphabet, up 3.8%. amazon. seeing outperformance in terms of adverts. amazon is continuing to outperform on a revenue basis. microsoft does not look so pretty on the surface. the pc a little bit lackluster. microsoft has been that record highs. intel, down 4% in after-hours trading, after part of its business failed to live up to expectations. i want to have a quick look at my bloomberg. facebook, alphabet, netflix, and google -- they have been outperforming. netflix, amazon, google, facebook, all of more than 30% when you are tuning into facebook over the course of year to date. how much has the outperformance topped the s&p 500? check out that line at the bottom of your screen. it's been hot in tech for 2017. this is bloomberg. ♪

>> it's noon here in hong kong. the latest data from japan shows growth of this quarter, yet inflation refuses to much. rose .2 percent, in line with estimates. the unemployment rate was at 2.8%. factory output fell more than had been expected. the lender posted first-quarter profit of $578 billion. it topped forecasts as trading income increased and wealth higherent fees clipped allowances. it's a first of singapore's three major banks to report earnings. president trump says