♪ ♪ ♪ ♪ good morning, we're broadcasting live from the inaugural code conference in rancho palos verde, california where cnbc is providing exclusive coverage throughout the day joining us this morning our own john ford talking about technology in front of an incredible vista overlooking the pacific ocean. you've been up for six hours, recapping what we saw here yesterday. >> yeah. yeah. has it only been six hours? because it feels like a lot longer than that. but sergei brim, gen ewynneth paltrow. all three different, but driverless car designed by google, microsoft's skype translation service. which some people in the audience who speak german said

isn't quite ready for business conversations. but for casual conversations, it's good. and considering this is prebeta, that's pretty good. the fact that you're able to do that, have software translate in real-time your conversation. definite lay breakthrough. >> it's the talk even outside business circles, that and the google driverless car. we start with google co-founder sergei bryan the big unveil. google has built its own self-driving car. it's a two-seater prototype no steering wheel, no accelerator, no brake pedal. a pared down vehicle. no back seat, glove compartment or stereo. here's sergei talking about the car last night. >> we've worked with partners in the detroit, germany and california. we've used all the motive suppliers, so this is using car parts that are kind of standard.

but sometimes we've, we've modified them to our needs. >> how about the whole body? >> yeah we've worked with the partners, auto manufacturing firms that have helped us with the body. >> if there is a headline this morning out of the code conference that may be it. lauren what are people saying about it this morning? >> there's been a lot of buzz about these cars online and here at the conference, we've seen automated driving from google before. but this is the first time we're seeing a truly driverless car. this is something that of course we're probably not going to be able to hop in and leave the code conference at the end of the show. it's not immediate. but it's interesting for people to see that google is willing to take these big risks and work on something like this. >> is it a big risk for google? it's great marketing for them. they know everybody is going to want to talk about a driverless car. regardless of whether they say this is coming out in 2018, 2020, maybe never? i mean -- are they really

risking much here? >> you're right. everyone talks about the size of google. their revenue, their market cap. they say of course it's easy for them to throw millions or billions of dollars at projects like this, fun projects, but it's really i think for a lot of tech companies now that are perhaps making incremental advances in technology. working on the next iteration, it's exciting to say that google is working on moon shots, they've got project loon, driverless cars, indoor mapping. sergei talk btd a whole host of things that the company is working on at its laboratory. >> comparing to what nardlea said last night and the illustration of the translation from skype which weerl talk b. there's a sense among some that other companies like microsoft are trying to show like google, we have a lab, they're working on cool things and we're going to show them to you over time, right? >> exactly right, yes. >> it seems like we're in an in-between period. we went through the smartphone

and the tablet revolutions. microsoft showed off the metro interfaces, it was called. here at the d conference as it was called. back then. but now it's like we're looking for what the next thing is going to be. we want to be inspired by cars that we know aren't going to be on the road for at least three to five years. by speech translation. that's not quite ready yet. is there kind of an attitude here that we're looking for what that next big market is going to be? >> i think you're absolutely right. i think we're in a gap phase right now. i think we're sighing a lot of innovation in the mobile and tablet side and those markets are possibly not fully mature yet. we're going to see a lot going on there. i think a lot of companies are throwing a lot at the wall to see what sticks right now. is it wearables? driverless cars? innovations in lte or high-speed wi-fi or whatever it might be, right? those are concepts in a lot of ways. we're not going to see those things come to market, come to consumers, really have a big impact for a while, right?

at least based on these predictions. so in this in-between time, what are we going to see? it probably is going to be a lot more going on still with mobile, with tablets, smartphones. if you think about it, smartphone penetration is just exploding. global scale. we're very fortunate here of course, being in the united states, we have access to these things all the time. or a lot of people do. but it's still, think we're going to see a lot of innovation going on in mobile on a global scale. >> it brings us to our twitter question, sergei brin mentioned a couple of google x projects, in addition to cars, loon, the company has in the pipeline at the conference. among these, google glass of course. contact lenses, apparently that might be able to one day monitor your glucose, incredible medical innovation and the self-driving car prototype. it brings us to squawk on the tweet. google x has eight projects it's working on. what might be some of the others they are cooking up? tweet us@squawkstreet and we'll

get your responses later on in the show. it brings us to topic number two. microsoft ceo spoke here as well saying we've reached the post-post-pc era, saying he has no plans to sell bing or xbox. he did unveil that translation tool for skype. where user speaking in english could talk to a user speaking in mandarin or german, take a list listen. >> hello, diana, how are you doing? >>. [ speaking foreign language. >> hello, my friend. >> hello, my friend. >>. [ speaking foreign language ] >> is it true that you were soon moving to london? >> yes, i'm currently planning to move there sometime between the middle of june to the beginning of july, if everything goes per track. >>. [ speaking foreign language ]

>> what was the feeling in the room, lauren, when this was played out? >> i think everyone was most excited about the idea that this might translate klingon, actually. >> maybe we should use it at comic-con. >> i think people were excited about it. i'm not just saying that because it was at our conference, right? and we had first look. i mean i think that this idea of being able to translate different languages into real-time as you're video chatting with somebody, is something that we haven't seen before. i mean it's -- >> i had a chance to sit down were the head of microsoft's communication division who was doing the demo also separately from that. it's interesting, microsoft kind of missed the latest messaging revolution, which has been led by what'sapp and kind of its contemporaries, mostly international. they've been concentrating more on video and the rich communication methods. but they're aware that they

might need to kind of retrench and look back on how to get at that lower bandwidth communication that's exploding overseas. so it's going to be interesting to see what else they do in this space, besides the whiz-bang stuff. because that's emerging as a platform. kind of like commerce, facebook is betting big. >> the ceo said we're one of the tech companies that spans the enterprise and consumer market. they've had some miss notice consumer market. when you look at mobile. he said we are a software company. so it makes sense that they would want to bolster something like skype. you know, their software offering for consumers and say how can we make this better. how can we make a mark with this. >> when you talk about his own relationship with bill gates, some of those early reviews with gates. >> how many times does he have to go to lunch with him per year. such an onerous task. >> the quote was, i run the place, right? >> right. >> and bill, although he can galvanize employees in a way

that no other ceo can, he's in charge. >> right, well i mean -- who knows how that really works out, right? at the end of the day if bill gates comes to you and says, i'm going to offer my input here. i think you're probably listening to it if you're sachi nardella, it was a statement last night. it was i'm in charge here, i'm the ceo, this is what we're working on. >> gwynneth paltrow, as she put it, put in the middle of the sandwich, of sachi nardella and sergei brin, an interesting talk on internet culture. here she is talking facebook. facebook started as a place to judge women on their pulchritude or lack if i think it's funny that a company so huge was founded on this objectification of human beings. i talked to some people this morning who said she looked great. >> but they had no idea what she was talking about. >> she did indeed look great. yeah, i think you know, gwynneth is just here to make a point. that people on the internet can

be really mean sometimes. and she has been the brunt of that, whether directed at her company, goop or directed at her recent conscious decoupling or uncoupling and she wanted to say, i'm a human being, too, and i suffer these things as well. i think it would have been nice if she broadened it out possibly a little bit dlxt are a lot of people on the web that are getting bullied right now that have it much worse than she does. i think she was here to make a statement. >> after that quote, you seemed to say she looked great without an ounce of irony. people were saying i don't want to criticize her too much, because she was talking about being bull idea, but she's kind of rambling. all the nerds here, most people are really interested -- >> are you calling us nerds? >> yes. myself included. are really interested in what mary meeker has to say in a few minutes. her state of the internet report, wondering is she going to talk about what whatsapps.

we have a lot coming up. uber, blackberry. and intel, we have a packed day. it's going to be exciting. >> what is it with kallanick, krysanich. >> the harder the name, the more important the person. travis kalinic of uber, jimmy iovine of beats. who knows what he's going to say about apple. >> stay with us on "squawk alley" more of our exclusive conference coverage. we'll talk to jeff weiner, ceo of linkedin and former "huffington post" ceo eric hippeau and flipboard ceo. don't go away.

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♪ ♪ big product announcements aren't the only news being made here at the code conference, google co-founder say gaye brin addressed the nsa leak issue. >> the snowden revelations are a

huge disappointment to certainly to me, and to obviously to the world as a whole. i think -- i think for my perspective if you go back to the cold war, when presumably the nsa was spying on a small number relatively small number of people, you know, soviet, whatever, generals and various communist party officials and so forth, and as a consequence in theory was protecting us from total nuclear annihilation, i think that's one kind of balance. i think the balance looks really different. >> speaking of snowden, ahead of brian williams' interview with edward snowden on nbc news tonight. here's part of their interview on snowden's decision to stay in russia. >> personally i'm surprised that i ended up here. the reality is i never intended to end up in russia. i had a flight booked to cuba, onwards to latin america.

and i was stopped because the united states government decided to revoke my passport and trap me in moscow airport. so when people ask why are you in russia, i say, please, ask the state department. >> remember that whole interview with edward snowden tonight on "nbc nightly news with brian williams." and again in primetime. imagine his argument saying that most data that is private remains private. >> it's interesting that edward snowden is still being cast in sort of a heroic light, despite at what we saw at south by southwest. where a lot of people felt his appearance there was totally wrong. there's a lot of appreciation, from tech ceos, that at least we know this is going on now. very interesting that he has those comments right ahead of brian williams' interview, we're

hearing edward snowden's voice at this level of depth about this this very important issue. people pointed out google is happy to have all this information about us, too, and we don't know all the time what their motives are. but privacy? front and center. >> there have been some tech ceos whose names will go unmentioned who have argued to the white house that snowden deserves asylum. >> well he's the one who brought these issues to light. and a number of ceos, trust me, they're a lot more ticked off that they'll admit when they're on stage or on camera with us. but they feel betrayed by the u.s. government. and so we continue to see this issue come to light, every time privacy comes up. it's no longer just a corporate issue, it's also a u.s. government issue, and it's a trade issue. because it affects these companies' ability to do business internationally. if foreign governments and businesses are afraid that their equipment might be a trojan horse for u.s. spying.

>> one of the many subthings running through the conference. when we come back, former ceo "huffington post" eric hippeau on the future of media and later on, most-loved ceo in america, according to glass door, that's jeff weiner of linkedin, live with us on the code con. use the #ask linkedin, if you have questions. if you have moderate to severe rheumatoid arthritis, like me, and you're talking to your rheumatologist about a biologic... this is humira. this is humira helping to relieve my pain. this is humira helping me lay the groundwork.

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you had a 300-page commercial. >> i was just trying to figure out what the hell was going on in the stock market. it's great to see bill, brad, he's doing all this to promote a business model. he's outrageous, he's part of the problem. ♪ ♪ take a look at one of the viral videos making its way around the world today -- yeah, one of the worst first pitches in the history of the game. which something talked about a lot. companies like uber and buzz field in the arsenal. our next guest knowing ho ining

read the first pitch and the former ceo of "huffington post," eric hippeau, it's great to see you. talk about media and things going viral, a pitch like that what is it telling you about the state of media and technology at the conference. >> the acceleration of the, of media going everywhere is amazing. i mean you've got media on your phone, you've got media in multiple devices. people don't want to watch tv, i'm sorry to say live any more. not as much, except for maybe a baseball game. but there's more tv, more video, more media something consumed today by vast amounts than ever before. >> you were the ceo of zip davis, a more traditional publisher, you ran "huffington post," you are an investor and on the board of buzzfeed, what's the next big thing in media? >> more video in smaller formts, we have a company that's lead anywhere news on channels that

maybe some people are not familiar with snapchat, instagram. and these videos are six, 10, 15, 20 seconds and they are breaking news videos. >> i understand that news and snapchat are working on a new partnership. what will that mean, disappearing news stories? >> yesterday's news is, old news is yesterday's news. maybe. yes, you want fresh news, you want it instantly. you want it accessible. >> where do you stand on net neutrality and competition in the broadband market? some people i talk to say hey, competition, true competition at high speeds is really more important than net neutrality. you're clearly tracking video start-ups in the space. how do you feel? >> both are very important. we have 37th or something like this in the united states in terms of world ranking, we have broadband infrastructure. we really, really need to get to down to business and fix that problem. without accessible broadband,

fast broadband, broadband everywhere, our economy is going to stall. so that's very important. secondly, net neutrality is really key. it's really key that start-ups, people who have brand-new ideas have the same access to the audience as the well-established companies. >> what do you tell a young start-up who is looking at the landscape right now and wouldn't ferg they're going to have the tools, the access to build the next netflix? are they out of luck? is it any different than trying to create a consumer product company and not getting shelf space at walmart? >> it won't happen. i think there will be an outcry from everybody, if in fact the government, the fcc or whoever, establishes some sort of a dual track. think people want the same access, and they will ask for it. >> there's been so much talk about valuations. are we in a start-up bubble? is this tech bubble? >> i don't believe so. of course we only know if we're in a bubble after the fact.

valuation sbrens rising, and that's because valuations were depressed. during the financial crisis, the public markets were closed dlxt was no way to evaluate the true value of the tech companies. today you have a an ipo market that's not that great, but it's open. i think we've seen as a result, the valuations rise. the other thing is investors want to own pure-play flth companies and there aren't that many around that you can actually buy on the public markets. >> finally you like the driving car, you think it's not just a shiny toy for google, you think it's going to be a real business one day. >> i think it's enormous this is a transformation of the automobile industry. the automobile industry hasn't really changed, that much in the past 50, 60 years. this is a break, this is a complete change. it's cars on demand, it resolves transportation problems it resolves congestion problems in big cities. it resolve as whole bunch of problems and google really has tremendous lead in this. >> eric, great seeing you,

thanks for stopping by. enjoy the presentations on code-con today. let's send it over to don for a market flash. >> shares of apple continue to move higher. seeing highs and lows, hitting level it is hasn't seen since october of 2012. one analyst lifting his price target on the shares to $700, from $615. while repeating his out-perform rating on the stock. he says apple is highly anticipatory around its new product cycles and growth investors are significantly underweighting the stock. apple shares you can see just about we'll call it .25% to the upside. still an interesting name that's getting some momentum on the upside. carl, back over to you. >> don, thank you very much. when we come back, social media for grown-ups, linkedin's ceo, jeff weiner, finding jobs in the digital age. the publishing platform and how it's going to maintain growth. tweet us with questions, use the hash tag #asklinkedin.

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♪ ♪ welcome back to exclusive coverage of the code con conference here on cnbc. while facebook has the sobol graph, linkedin's ceo jeff

weiner wants to create a work graph. jeff, it's great to see you, welcome. >> i take you back to the last quarter. it looked pretty good, guidance was good, big milestone in terms of users, what's the strategy now? >> you know in the immediate term we want to continue to focus on our core value propositions. professional identity and making sure that the profile meets the needs of all of our members. continuing to improve the search experience. with regard to networks and enabling our members to connect, find and be found by others, we want to make it easier than ever. and with regard to insights and knowledge, professionally relevant knowledge. continuing ton linked in as the publishing platform. >> you're becoming a media platform. sponsored updates, basically like native advertising, allowing many more people to publish now, is your mission changing to become more like a media company?

>> no the mission to the same, to connect the world's professionals to make them more successful and productive. and a key part is providing them the insight and business intelligence they need to make better decisions faster. >> china is a key opportunity for you that you've outlined. also looks like a challenge. a lot of social networks have sort of crashed and burned on the way into china. granted, you're a professional network a little bit different. but how are you navigating that as you try to grow there and making sure that you don't bump into some of the issues that facebook and google have? >> i think it's a multi-faceted equation, it starts with talent and making sure that we've got the right team in place, we're fortunate to have hired in derek shin, our president of linkedin china, truly world-class talent. he's focused on building out his team. we're off to good start, announced 5 million members this past week. when we launched our local version in china, earlier this year, we were at four million members that took north of ten years to get to.

we're seeing accelerating growth and as you said there's going to be challenges, but we're up for it. >> in terms of code con, so many interesting questions that are dying to be answered. what are you hearing that's most interesting to you out of this conference? >> just based on last night's presences, i thought satia's honesty really came through in terms of what he's trying to accomplish. and that's a challenging position to be, inheriting the mantle from you know, very well-established leadership. and essentially founders. you know, sergei's focus on the driverless car. >> are valuations part of the conversation? >> i just got in late last night, so if they are, i wouldn't be aware. >> linkedin just started ranking its members according to popularity. it seems like it could drive engagement, but it could also drive people away. how is that going so far? >> it's not ranking by popularity. we created a how you rank, which

tracks the number of times that your site has been viewed. it's understanding how you're being seen. and if there's a little game-play in that to provide the right incentives, that's okay. because investing in your profile, investing in your professional identity is absolutely critical to your success. it's the way increasingly people are viewing you, it's your personal and professional brand. so by virtue of comparing and seeing how other people are doing, think it creates a little more incentive to invest. >> what's your take on ha zappos is doing, trying to change the model in how employees get recruited. trying to do more recruiting by referral. which is good for linkedin, telling people to get on linkedin. is that going to be the new thing? does it sound crazy to you? >> i think a number of things that zappos tried in the past i appeared crazy at the time they tried they will. tonies focus on culture and value above all else was something unique at the time and i think people later understood

how strong a competitive advantage it could be as well as focus on customer sfmpbs sfs and if they're going to leverage business and personal relationships to hire, that's the basis of linkedin. >> the markets we've been through, some stocks, momentum stocks, social stocks have been through a period where investors are interested more in the profit side than the growth side. i wonder, are conversations at linkedin now focusing on maximizing margins more than they were three or six months ago? >> not conversations remain the same and it's executing our long-term vision and plan. it may sound cliche, but that's all it's been about to us and that's the case when we were private and now the case that we're public. >> in the past you built out this family of apps, do you have the same vision that mark zuckerberg does about having a whole plethora of apps in the same universe with linkedin? >> we've had a multi-app strategy for some time. our flagship recruiter application is an example of that. the pulse news reader app. our cornerstone flagship

linkedin app. we've got other exciting apps in the pipeline as well that will continue to be our plan. >> you continue also to kill apps, that maybe aren't working as well. as you might have hoped. satia nardlea got some questions about that last night. wouldn't say what was on the chopping block. you've chopped off a few. how d how do you decide when it's time for things to die? >> focus. we believe in continually coming back to our core value propositions and remain as focused as possible on the core value propositions, when things aren't working we want to give them a chance, make sure we're mack mizing the likelihood for success and be honest. if it's not going to create value in the long-term, it's distracting us from the core focus. >> you have a whole new class of college graduates out there. many of them using linkedin. what's your sense of the job market right now? >> i think it depends on which region of the world you're talking about. one of the macro trenz that's most concerning right now is

youth-based unemployment. you're talking about students. you've got a situation in europe for example, in greece and spain, unemployment north of 50%, youth-based. 70 million kids between 15-24 unemployed. youth-based in the united states is 2 x the general unemployment rate we need to do everything we can to equip the students with the skills they have to take the jobs that will be, not once were. >> it's turj into a better incubator. >> i think it's fantastic that there are more cities not just in the united states but all over the world that are cultivating an environment that creates success. and innovation and creates economic opportunity. i think it's fantastic. >> others that come to mind, are the regional, usual suspects like austin or others -- >> boulder. >> bowled centre. >> there's some interesting stuff going on in colorado. i think there's some places in europe that are starting to heat up. southeast asia, asia, obviously

china. a lot of interesting stuff going on. >> you've got a lot of valuable data about who's getting jobs, who's not getting jobs. who is hiring. probably better than a lot of government institutions have. what more can you do with that? is it possible to, to draw economic insights from that? research insights. is that on the road map at all? >> absolutely. that's one of the things that we're most excited about with regard to the potential of the economic graph. it's to open up that data. and allow economists and analysts to leverage it and draw insight that they otherwise wouldn't be able to. one example of that that we're excited about, would be closing the skills gap. this widening gap between the opportunities that exist and the aggregate skills of the workforce. imagine a world where you can see the aggregate skills of the workforce, the fastest-growing jobs in that region. any geography in the world. the skills required to obtain the fastest-growing jobs and measure the size of the gap. when it exceeds a certain point. equipping local vocational

training facilities or higher educational organizations within the region for that data so they can create a just in time curriculum and train people for jobs that will be not that once were. in terms of productization and scale, it will be some time. but in terms of our ability to look at data and extract an insight like that we can do that. >> we solicited some questions on twitter and got a bunch. the first one is this, ha is the future of your virtual networking and how does linkedin plan to remain the leader in that future. >> our virtual networking -- >> who knows. >> talking about augmented reality. if you're talking about occulus and things of that nature, you can dream a little bit. coming into a conference like this. and understanding through augmented reality. who's who. i know sergei last night mentioned that they're not going to be doing facial recognition in glass until society is ready for it so perhaps a little bit ahead of its time in terms of

occulus and virtual reality. being able to interact and meet and confer from remote locations is will be increasingly important as the world becomes increasingly connected. people will be working remotely and have a need for collaboration. >> what's the strategy behind linkedin's university pages? >> university pages is a cornerstone for our attempt to create value for students. which is amongst our fastest-growing demographics and amongst the most important dem gravgs on linkedin. that's the future of our membership. university pages one of the key value problem there is is for students to be able to see outcomes. this can see for any alumni of any university what they're currently working, doing, and track it all the way back to their major in school. so they can say that's a career path i want to pursue. what's the best way to do it. >> jeff, great seeing you, thanks for stopping by. enjoy the conference, jeff weiner of linkedin, joining us at the most beautiful site i've ever anchored from. an amazing view. when we come back, why come all

the way out to code? two perspectives and news from mary meeker. can you start tomorrow? yes sir. alright. let's share the news tomorrow. today we failrly busy. tomorrow we're booked solid. we close on the house tomorrow. i want one of these opened up. because tomorow we go live... it's a day full of promise.

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deep brewho's got twomers relahooves and just got as. claim status update from geico? this guy, that's who. sfx: bing. and i just got a...oh no, that's mom. sorry. claim status updates. just a tap away on the geico app. coming up at the top of the hour, we're live from the code conference in california with every stock-moving headline, plus of course how to trade them and michael kors is up 50%, but

herb greenberg still a bear. and twitter stock having a rough year, but stock gaining on an upgrade that and more is straight ahead. now nor, back out to california and john ford. >> hey, scott, thanks. still digesting some headlines out of mary meeker's state of the internet report. she of course from kleiner perkins, a highly anticipated report, because it dives deep into the trends that are driving the internet. some of them are that the fastest growth is in areas like india, where it's hardest to monetize. video continues to drive growth. mobile app revenue, still trumps mobile ad revenue at 68% of mobile monetization. and chew on this for a bit -- google average revenue peruser, six times that of facebook. facebook average revenue

peruser, two times that of twitter. we see potential of twitter monetizing the users. when you combine the number of users, the growth of users with the ability to monetize, you start to get a picture of this mobile economy that is growing, but growing in areas that are harder to monetize and some of the big guys are getting big, big pieces of that. so it's have to see all of that develops, certainly a very big issue here at code con, drop box, uber, two of the big companies grabbing a piece. >> and her slide presentation is like a treasure trove of data. >> really curious to hear about the mobile and video monetization. which advertisers are looking to spend more on. >> it looks like she's talking about valuations in some respects. in icy, there's a real dash for cash out here in california. an anonymous man has created a frenzy by dropping money-filled

envelopes all over san francisco. and scores of people have actually joined the hunt. the mysterious person who calls the give-away an anonymous social experiment for good, is posting clues on his twitter account. with the handle, hidden cash and mass 100,000 followers. he plans to leave envelope in san jose today, san francisco over the weekend. >> their stock might be down too much. >> well that's one reason to fly here today. another, a number of young entrepreneurs making a dash of their own by attending the code conference. john ford asked some of them why they came. take a listen. >> code is one of my favorite conferences of the year. >> i think this is quite frankly going to be one of the premiere tech conferences. >> in fact i closed the deal sitting on the balcony of one of our companies. >> i think the appeal is to get inspired.

when you see companies like drop box. >> the amount of money going into start-ups right now is at an all-time high. not been like this in a really long time. >> it's easier than ever to start aen can. the barriers to execution have come down. >> cost of starting companies is less, there's so much money coming into the space. >> as a start-up attending the conference, three big take-aways. making new connections, learn new things. >> a lot of high-quality both companies, venture capitalist and strategic player that are attending the conference in one place for the next several days. >> it's always been the quality of people that show up. >> it gives you inspiration. >> it stokes your ambition. >> i had to leave two investors commit to bst conference even started. i'm off to a good start. >> and those guys came from all over, d.c., silicon valley. palo alto. and the l.a. area, peter familiar big incubating ideas here in southern california. like dollar shave club. bet you didn't know that came

out of so cal. >> the fire power that walt and kara assemble every time is amazing. especially now that recode is only months old. >> and you have the start-ups and buyers and investors, both the vcs, the private equities and big companies like comcast curious about what the next big company will be. >> the next company is backed by ashton kutcher. the ceo of flipboard with us live at the code conference, when "squawk alley" continues. ♪ ♪ ♪ ♪

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"ti "time" magazine and have them work for you every morning. that's what flipboard is. >> there are other companies getting into this news reader business. you have trove from graham holdings, linkedin, facebook has its own new reader app. how do you compete with all of these new competitors? >> news readers basically let you kind of look at rss feeds and you can do that on flipboard but our to can us is letting people who are passionate about something create great content about that and pull it together in the format of a magazine that you can flip through on your mobile device. there's really nothing else like that. paper, from facebook doesn't do that. a lot of the other products don't do that. it's really a unique thing. >> one of the things that mary meeker was talking about was s. mobile monetization, a lot of growth is happening in areas where it's difficult to monet e monetize. you are growing quickly in china, i understand. what's your strategy there? >> another big thing that we focus on is our relationships

with our publishing partners. publishers are core component of what we do with flipboard and we work closely with them in the u.s., internationally and in china. what we do is we help them monetize their content through beautiful full-page brand advertising. the same kind of ads you would see in a magazine. ads that people actually like. so we're doing that in the u.s. we're doing that in china as well. and the key to china around as well as everything else we do are those partnerships with those local publishers. >> mary meeker also talked about the value in video. i know that flipboard is obviously more print oriented. how big a part of your future will video be? >> i think i going to be a very big part. today people who are cure rate the magazines can incorporate video. i have a magazine of every single job's speech online in one magazine. i think that kind of thing is going to become a big part of our future. maybe some time in the second half of this year or sometime early next year. >> how would you characterize

the ad market right now? >> well, you know what, we are in very early innings. it is going to be a huge market. if you think about it, there's, you know, about $600 billion in advertising around the world every year. about 15% of that has moved on to the internet. only about 10% or 11% of that mary meeker said in her internet trends report only 11% of the 15% has moved to mobile. we have a huge, huge opportunity. think about all the revenue being generated right now by google, facebook, twitter. and yet we have just begun to see the shift of advertising from off line to internet and then to mobile. >> would you characterize it as a discretionary buy still or has it changed already? >> i think that what you're starting to see and this is something flipboard is focused on is brand advertising. the majority of the advertise that hasn't moved on to the online yet is brand advertising. so i see -- i think what you're seeing is some of that brand advertising is moving to video, digital video, both mobile and on the internet. but also what flipboard is focused on are the full page

brand ads. we're now the single platform in mobile. so that's really our focus, is mobile brand advertise sgrg this past fall you raised another $100 million at an $800 million valuation. where are you deploying all that money now? >> international expansion certainly a big component of that. we're building on our china team. and we've got a significant amount of energy going into building out and refining the future set for flipboard. one of the cool things about what we're trying to do is really focus all of our energy on making one product really, really great. and continually refining it and honing it so it really becomes the ultimate thing for people to use. >> i got to give a look at that magazine with the jobs speeches. >> it's great. >> mike, thank you very much it's great seeing you. see you around the conference. >> thank you very much for having me. when we come back, sergei revealed there are some google x products in the pipelines beyond the car, the lens, the glass. what's next? we ask all of you out there on

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netflix that's different than any other company but they do amount to a third of all the bits on the internet. we want to provide great experiences for our customers. we have to manage that traffic together with them. the deal that we made was they reduce their expenses, generally speaking, over the life of the agreement. and speed up the experience getting it to the internet. so customer performance is better. they save money. i'm not quite sure why that isn't in everyone's interest. >> that's our boss brian roberts earlier this morning with reed hastings with netflix. meanwhile, google sergei

brie mentioning a couple of the google x projects the company has at the pipeline here at the code conference. google glass, content lensesnd self-driving car prototype. it brings us to this morning "squawk on the tweet." google x has eight projects it's currently working on. what might be some of others they are cooking up. eric writes, biometric base payments. i have no idea how that would work. i think google x might be working on real-time parking availability in new york city that will be incorporated into google maps. career guidance. google will match you with careers and based on that. i would say they have made the lion's share of the headlines. >> i think people are excited by that and biometric based payments would be a slip at check out. >> their thing, the realtime speech translation is going to be ready by the end of the year,

people. come on. >> it is a little more immediate. but it is another testament to the code conference that all these big very large cap tech companies save some of their best announcements for this particular week. no doubt hear more today and probably tomorrow. that does it for us here on "squawk "squawk." all alley, julie and joe. >> carl, thanks so much. great stuff for you guys today. welcome to the "halftime" show. all things tech. we are back live from the code conference in california with the very latest headlines and all of the stock moving news. twitter chatter, after a brutal take down the stock is surging on a big upgrade but is it really ready to run? summer snapback with housing slow to get going. spring is the all important sector. finally, finally about to heat up. let's meet today's starting lineup. pete, joe, and steve weiss are here on the desk. pete santelli is in the pits i