daniel ives welcome. thank you so much for coming in. so top three picks, what are they?ft on the large cap side. love what they are doing on the cloud and in mobile. it is just the tip of the iceberg for what will happen in 2015. specifically, the windows 10 upgrade cycle. there's a lot more fuel in the engine for microsoft. palo alto remains a top favorite in cyber security. they are the end to end next generation platform player that could be the winner. also a good 2014. we see center security and enterprise and government, they see a surge of spending. that's the one that will see a lot of benefits from i.t. budgets. then you go to big data. that's where i look at companies at the convergence of big data and cyber security. an under looked stock. you could see expansion as they play into the big data trend. >> the question a lot of people have, our tech stocks in a bubble? we saw tremendous gains last year. 19% in the tech index. what do you think? >> i covered tech from 2000 to today. there is more meat on the bone, relative to the actual fundamentals. it is a parad

. >> daniel ives and jp thanks, we appreciate it. china may have overtaken the u.s. when it comes to iphone sales but how important is this country to the overall apple? just ahead of apple's big earnings report when "bloomberg west" continues. ♪ >> this is "bloomberg west." i am cory johnson. snow is falling as fast as forages now are, prompting a state of emergency declaration in new jersey all the way up to massachusetts. we have an update. how does it look? >> it has been snowing here much of the day. it has lit up a little bit. we have a bit of accumulation. behind me in central part -- park, it there is four inches of accumulation. we are expecting of the blizzard to hit hardest at 10 a.m. tonight and continue until 10 a.m. tomorrow morning with some areas expecting two to three inches of said -- snow to fall every hour. >> i will give you a dollar if you throw that snowball at the bus behind you. that was made to happen. >> my aim is not that good. i would embarrass myself. >> is a good packing snow right now are not yet? -- is it good packing snow right now,

joining us for more reaction is daniel ives. quite a move. what do you think is going on?ink it's a step in the right direction from what we saw over the last year. i think these large cap tech players like ibm, sap, oracle they're having difficulty on growth as more i.t. budgets shift to cloud, big data and cyber security but i expect we're going to see more consolidation. i think the ceos have started to look in the mirror and realize what they need to do in terms of cost cuts and potential acquisitions down the road to put fuel in the engine. >> is this guy adami, the kind of growth you want to see? >> in ibm, no. they're the poster child for financial engineering. the other quarter is good enough to get a relief rally. look at the performance of the stock over the last two years. it has not -- clearly not performed with the broader market, but i think what you're seeing is exactly that a relief rally. a lot of people probably short into the number covering now. continuing to miss on the revenue side. they don't have near the cleararity in terms of the earnings going fo

joining us is daniel ives, a managing director of research. >> no trains. snowy new jersey. >> i know you are's -- i know you are hard at work yesterday. you just cut your price target. now, it is to 53 this -- it is to $53. >> it was a honeymoon year for investors. now, it is about the transfer to windows 10. i think this will be a paradigm shift. they are going to be successful. see a lot of peers yelling fire in a crowded theater. >> in this transition, it looks like investors are not buying -- giving the time for the transition. >> patient is worn a little thin. numbers got cut. i believe it is a promise that we will deliver. fundamentally windows 10, this is a major game changer for microsoft. i think it will be the bridge that takes them into the next generation of cloud computing, which is where we want to see them go. >> windows 10, how big of a game changer is that going to be for microsoft? >> the jury is still out on how significant. this is the biggest product cycle in 10 years. just a hologram and some of the innovative areas. it is going to br