ali baba is an amazing company, for all the problems with yahoo! right, ali baba is stellar to. company its size. it was 51% year over year which is tremendous growth and now they are doing 66%. the key thing to remember, this is the december quarter results from ali baba, so we may start to continue to see that deceleration in the march quarter, but, still, that's an impressive number, highlight for yahoo! >> what do you do? what do you think about this one? >> well, the ones i was most impressed with, kelly, marisa mayer says they have 430 active mobile users of their products. that's going to be key. >> also. paid clicks, up 6%. price per click up 8%. these are year-over-year numbers. so for any naysayers who say they are not growing, not double digit numbers, and they are very positive and the mobile numbers mean they will be bigger faster going forward. >> really bad numbers off the floor from the previous years so let's keep that in context. >> the quarter is pretty good, look at a beat on 20%, we don't want to think about unit costs, we want to think about overall top lin

ali baba giving yahoo! stock a very nice boost. ali baba made a ton of money, yahoo! owns a quarter, up goes yahoo!. the burger chain son nick, i know it well, to accelerate its transaction, a thousand restaurants in the last ten years up 2%. did you ever sony -- and a sony walkman? it was how you listened to music on the go but watch how young children today react when presented with one. >> is that like a movie? >> i like that. >> how about that? >> what are you talking about? stuart: that was the son of the time is video you would have to say. in our next hour i give you my take on a new piece of technology not everyone is embracing, my take on google glass. and next coming up shortly, another sign of the times, streaming video is where we are moving to. how much? we have the numbers. next you got to check this out. or runaway horse drawn carriage in savannah, ga. full of tourists. the horse spooked, ran full speed down a street, carriage ride herd broke his heel bone, none of the passengers were injured. that is good video. it's the get growing sale from adt. righ

after ali baba, right, we have this discussion every week, once you get past ali baba, what have you got? >> you've got over $30 billion in cash and ali baba stock. the stock is trading at 33 and change. i think we can make a decision about whether the market has the appropriate value for that. i look at yahoo! as a sum of parts story, and i believe ali baba eventually is worth over $200 billion with a fairly modest 20 times earnings multiple that supports that claim. so i think there's a lot of upside here. >> jordan, you have four names we're talking about here, and you're talking about strong earnings. of the four, who's going to give us not only strong earnings but really, really solid confident guidance? >> well, facebook doesn't guide specifically. but i think the magnitude of the upside will have this -- will force downstream my numbers to go up the most. i'm disappointed by the experimental acquisitions for $21 billion. i couldn't even come close to explaining what they paid there. but that said, i don't think they would have done this if they weren't very confident about the

speaking of the streaming site, it just got a big investment by ali baba.a and its founders been on quite the shopping spree ahead of the company's highly anticipated ipo. last year, they purchased an online mapping company, acquired a stake in a tv and movie production company, and invested in both a messaging app and a department store operator. today, they agreed to spend $1.2 stake. for an 18.5% joining me now is someone who helped set up google's operations in china. thank you for joining us. when you look at the stuff that ali baba has invested or bought, it is incredible. why the shopping spree, why now? i did a quick calculation. $4 billion worth of acquisitions in the last six months alone. if you look at these, they are very well considered, in strategic areas that i have to believe would make a great growth story, such as video or mobile or content distribution. helping themll be with a strong ipo story. investing a lot of money. these are not just one offs here and there. navi, $215 to buy auto million investment in tangome. 10 figure investment

a lot of the up side has been from ali baba.ll buyers of yahoo stock for three primarily reasons. one, when the ali baba ipo actually takes place yahoo! will get about $12 billion in cash, we think yahoo will repatriate that back to the shareholders. secondly baba is one of the most highly anticipated ipos, so when it takes place, there will be high demand. so yahoo! will be a great play to play. >> that's about another 16 to 17 bill xwron of potential value that yahoo! will probably get back. >> plenty of runway. >> so what's the stitching point? is it $45? is that the price at which investors -- is the the peak the plus 1%, plus 2%, at some point you've got to think it's time to cut bait. >> sure, our $45 price target is based on a five multiple on the core yahoo business. this quarter we saw yahoo actually improve its display business the if yahoo can continue to show improvement, that multiple should go up, so, you know, we try to build in some conservatism. we think there's probably another potential leg up, if yahoo can tu

that is a lot of potential future shoppers on ali baba's platforms. sue? >> i think that may be an understatement. josh, thank you very much. >>> there are new developments in the long simmering is it fight, it finally made its way to the supreme court. kate kelly will have the story for you. it has now been one year since the terror attack in boston. on this patriot's day, scott cohn is along the route. >> reporter: if there was any concern people would stay away, don't worry. on the contrary, the crowds are large. that's creating some issues of its own. we'll have that story when "power lunch" continues. lunch". drivers, tgo!our marks. it's chaos out there. but the m-class sees in your blind spot... pulls you back into your lane... even brakes all by itself. it's almost like it couldn't crash... even if it tried. the 2014 m-class. see your authorized dealer for exceptional offers through mercedes-benz financial services. >>> the supreme court waded into argentina's legal fight with bond investors today. kate kelly joins us with more. >> reporter: tyler,

>> what happens when ali baba is not there to have out? up the question of what is the company worth. we are expecting that ipo soon according to a bloomberg survey of analysts rate the latest valuation was an average of estimates of what the valuation could be is $153 billion. bloomberg has learned that they made salvageable percent stake alibaba, but if they've own 24% and they're making this much money this is very good news. >> thank you so much. before you take out the may issue of cosmopolitan, you might what you find out i what the editors has about one and succeeding in business. ♪ white houselection is calling attention to the inequities in gender a of the gaps/ . while there is a dispute on how large that gap is, there is clear evidence that women are underrepresented in the top ranks of corporate america. joining me with some ideas of just how exactly we can change this, we can pick is, the editor-in-chief of one of the most influential and often on commercial magazines of the last half-century. cause joanna coles. when you look

when you look at the stuff that ali baba has invested or bought, it is incredible.he shopping spree, why now? >> i did a quick calculation. $4 billion worth of acquisitions in the last six months alone. if you look at these, they are very well considered, in strategic areas that i have to believe would make a great growth story, such as video or mobile or content distribution. i think it will be helping them with a strong ipo story. >> they are investing a lot of money. these are not just one offs here and there. $1 billion to buy autonavi, $215 million investment in tangome. 10 figure investments here. what do you make of the fact that they are buying rather than building? >> absolutely. we talked about this a couple of times. they are somewhat behind on mobile. that is an area that people are investing heavily in. by spending this money to acquire its user base, in yuku, which has 300 million plus mobile users, they are growing much quicker than they can organically, acquire users on mobile. they are showing they can be bold. >> do you get the sense that they are

owns 24% of ali baba and ali baba is going to be the biggest ipo in a long time? we are going to be talking about that and also talk about ceo marissa mayer and how she is leading that. this is "bloomberg surveillance" on bloomberg television, streaming on your tablet, your phone, and bloomberg.com. ♪ >> an important conversation, a little light conversation, that moelis -appened to mr. -he got the deal done but given the carnage of the last four or five days not where he wanted to have been. on his transaction of the moment as he goes very public. look for that on "market makers" at 10:00 a.m. this is "bloomberg surveillance ." i'm time team. with me, -- i'm tom keene. with me, adam johnson and olivia sterns. olivia has been looking at fortress mayer. >> yesterday after the bell yahoo! came out with earnings and revenue was in line with estimates. a few minutes later the company released alibaba's huge revenue growth, up 66%, and that is when the stock skyrocketed. i believe it is nine percent right now the premarket trading. yahoo!'s core business is still showi

ali baba is not a public company in the u.s. yet but is expected to debut later this year. >>> and the times report that the justice department and the fbi are investigating the multi-level marketing company. herbalife has been accused of operating a pyramid scheme. the operator denies allegations that it is a pyramid scheme, shares fell to 51.48. and sony warning customers to stop using some of its vio laptops saying it is possible that the battery pack could overheat and catch fire. the japanese electronics maker says it is in the process of creating a program to repair or replace the products. despite that, shares of sony were up more than a percent today in a down day to 801839. >>> and there is a push by the u.s. government to get more people interested in farming and ranching, especially young people. jane wells explains. >> reporter: for a time, 33-year-old daniel fenton left the farm. >> i graduated from stanford in 2002 and most of my friends were going into high tech and things like that. so i spent a couple of years d

i like the stock going into this with ali baba and the combinations.es to come in, and these weekly options, you've got to be in with them. >> stock is down about 8%, dude. >> i still like it. >> you would like it more if it's down 8%. >> and i've been adding to it. i've liked the stock for a long time. i see no reason not to like it. when we get that ali baba ipo, i think people will understand. >> when does yahoo become about yahoo again not ali baba. >> everybody uses that argued, on my side it would be jerry yang one of the best investments of all time. when you look at what he did. >> bring him back. >> i'm not talking about bringing him back. >> you said pete won the debate on netflix. >> thank flew quickly, final trade. >> ingersoll-rand. >> sea drill long. >> i'm going to reiterate. i think if netflix sells off, buy it. >> pete? >> if netflix sells off, you do buy it, but right now you buy nike. it's sold off already. >>> that does it for us. "power lunch" begins right now. >>> halftime is over, "power lunch" and the second half of the trading

>> i think ali baba personifies this right now, they are doing the traditional shortcut and ebay's platformsinance, ali pays that as well.. they are explosive in their growth rate. it could be a catalytic force. >> what does it say, though, the ipo will take place in the united states, both the nasdaq and those are vikaing for this ipo it's not happening in hong kong? >> the chinese started taking their publics and have been stressing analysting in international exam marks to bring in a where'd portfolio of investors in providing the exam for their company. it's a part of credibility. >> when i was in hong kong, maybe six months ago, people thought it was an indictment of the system in hong kong. it was an indictment of the hong kong exchange. it was an indictment of what people thought of the old way of thinking. >> you know, the hong kong powers that be are not thrilled to lose a headline offering like ali baba, no question about it. i was there last week the road show is global. there will be lenity of investors to participate t. stockmarket, itself, did not get the listing, again, i thin

there are a small number of firms that dominate the chinese market of which seema and weibo, ali babathink it's worthy of noting that ali baba already owns a piece of weibo here and that's likely to end with the public offering. >> i would add one other thing that's important, that in the united states and globally, twitter and facebook compete with each other for ad revenue. i don't really think that weibo has to compete with facebook even though they are active in 70 countries. mostly an overseas chinese population. >> also important to note, you know, weibo's ad revenue has gone up by 160% so they are doing well in that area. >> it's weibo or moreve morphedh the section. >> you've got to wonder if they will look to expand overseas in other markets. it is primarily geared to a chinese audience, but over time you have to see what weibo does oint national opportunity. >> we should keep in mind, too, that there's an enormous overseas chinese community throughout southeast asia and north america and europe so as big as it is in china, china is pretty big outside of china, too. >> i was

so he was instrumental in some ways in getting the ali baba deal done.al in the way that they were allocating their capital. now, again, this is coming from somebody who was handpicked by loeb to serve on the board, but it's hard to argue against these points that are made by this -- by this individual. >> it's a scorecard that doesn't require any opinions, and that's the value he's created in yahoo!. if you want to isolate that, as murph said, other companies. we don't have to editorialize. sotheby's doesn't have to editorialize. look what he's done for his investors and for companies that he's been involved in from that standpoint. >> judge, just to put a ball on it, he didn't get them into ali baba, but they could have sold way too early. >> the negotiations were well under way. the dine wasn't signed until he was there. >> and selling too early would have meant that they missed, because the stock has basically tripled pretty close to it since yahoo!'s been in. and i think that would have been a big mistake if they took the money off too soon. >> this

really, it's about that momentum story, still in ali baba, hoping this isn't a slowdown.ll, maybe it isn't, you know, as strong as we thought growth-wise. >> you have to be a real trader to play this one at this mointd. the stock is at 33, $34. ali baba comes out at $150 billion, or gets there quickly. the report has it at $36 a share. if you see expansion on the ebitda, you goat head room. but you're at $36, the head room right now. >> there are analysts sounding the alarm on potential taxes for yahoo!. of course, they'll have very significant capital gains when the company does go public. the number of analysts, even the ones bullish, are looking for no growth out of yahoo!. so they either have to give some metrics that are strong in mobile that look better, or some of the properties that they've been launching, like their vertical. more than just talk about the celebrities who they're getting to head up the various channels. you want to see growth in what they're able to yield. >> now it's the creative director from "elle" and michael wolff, saying welcome to show busi

the whole ali baba operation -- alibaba operation has bought her time. has been such a boon for yahoo!. at some point they're going to have to get back to fundamentals and show the street that the core display advertising business for yahoo! can grow. we know that internet advertising is growing about 15% per year. quite frankly, yahoo! was posted -- has posted no significant growth over the last two years. we have not seen any results from that year. if the honeymoon is not over now, it will be very shortly. ibm reportinggle, earnings this week. facebook, next week. interesting news out of facebook today that they are getting into online banking. >> in certain european markets, they are considering getting into online banking, if you will, taking a look at the remittance business. people all over the world remit money back to their home countries and i think that is a business that facebook is looking at. they have over 1.2 billion users all over the world. stronge actually a very social network. facebook has been quite successful building an e-commerce

all the patents ali baba is looking to acquire can act as a defensive shield.r, the company has gotten 102 patents, including 20 purchases from ibm just last year. applications on 300 others pending. all of these have something to do with e-commerce. payment processing. yahoo! owns a 24% stake in ali baba antidotes -- and it holds 1500 dollars and patents. that is at least one potential predator that is at the table. it seems to be part of the company'strategy. >> what is it worth for them? why are they doing this and why are other big tech companies doing this? did not do companies this. the twitter ipo before it filed, it had only nine patents and 48 hours before it went public, it had a dispute with ibm. public, a few months later, it ended up buying 900 patents from ibm. a very similar story with facebook. it got into a fight with its ipo with yahoo! and ended up buying to settles from ibm that dispute in two months after going public. google, same thing. it also got into a battle with yahoo!. further down the line, it bought 1000 patents from ibm. notice a

a big part was ali baba. what happens when ali baba is spun off and it is a separate company? whole point of ali baba in the u.s. is so that yahoo! can sell its stake. it will not sell the whole thing off the bat, but they will sell about a 12% stake in the ipo, forably 11% of that will be yahoo!'s exit. it is a challenge to resume her inner to turn the company around without the big rather backing. >> it certainly will be a challenge and we will continue to watch the markets. thank you, so much. all right. moving and kicking. at this hour, the credit suisse , the credit suisse posted declining profit. you can point out bright spots, though. >> it was a strong first-quarter if you look at it overall with our strategic businesses. we made 1,000,000,009 dollars in pretax. a 14% return in equity. one of the best returns on equity i think in the industry. you saw in our investment bank as well. performancey strong in our strategic businesses there. return on capital was 21%. a lot of businesses performed extremely well. >> coming up, a sweet life in the c suite. than 300 times as

only ali baba might rifle it but hey're huge -- rival that. they're huge. now, smartphones, paul, and on another side, crime pantry? >> right. here's a company that obviously has dominance in its core online e-commerce business but they also have the financial capability to invest in lots of other businesses. it's hardware, amazon prime getting into the media business, buying content. they just did a deal with hbo. >> that's right. so you can snap stream "sopranos." i missed the entire thing. >> right. you can get it as part of your amazon prime. they're all driven -- they're all there to drive the e-commerce business. they get into the programming business, the media business to attract people to amazon prime to drive more usage. prirs someone going to call him out on this? >> as long as his package is working, no. he can say this is nothing new. you've decided to come on the ride with he. and the stock's worked great. as long as they continue to invest in their core business primarily, they can do something these other investments, whether it's the phone

melissa: when ali baba goes public tons of money to buy those engineers from wherever they are. be an opportunity to work for. >> they do want to work for yahoo! and brought a lot of life into the company and a lot of money to pay those engineers. yahoo! is doing a lot of stuff. if you look at their stock compared to google, yahoo! is performing not just because of ali baba, it is the time issue. in melissa: do you own yahoo!? >> i do not own it. melissa: will be meaningful to you. and long term. melissa: thanks to all of you. we all missed one of our favorite shows, the article, the headlines ruining the whole thing for you. an extension to take any spoiler's out of your face book and twitter feed. and all keywords unmuted from your feed. i need it. >> i am a binge watching of tv shows so game of fronts to finish. i throw that in there. it is coming out and i don't want to know better. melissa: is a great. and i'm watching the history channel all day long coin. thank you for tv, not so much, i would be very scared of the government starts putting spoilers, that would be -- >> w

when i could buy ali baba? >> that is the issue.now, the online review website, moved from buy , the country -- the company is in its early stage for penetrating the market. >> number three is bank of america, shares offering less than earlier today, they reached a $950 million settlement with iran shall guarantee insurance company on claims that the countrywide unit pulled faulty mortgages. legal fees are one reason the bank posted a surprise loss last .uarter, $6 billion in costs >> number two, king digital, up three percent. the game maker is set to make its candy crush debut in china. king digital will release the the $.10 mobile game center will be coming out in the summer. >> the number one stock of the day? melissa is up there, almost five up there, moelis, almost five percent. filings say that the company plans to use 80% of its currency for a one-time payment to the founders and partners, while the rest will be invested back into the firm. here we are, coming up on the firm. session highs on the dow jones, a gain of roughly

seventh annual green company summit organized by the time on sports club hundred companies including ali baba ibm as well as the one the group were chosen as this using green companies or low cost details the new new lambton quay companies had one great niece and a sea of people are stupid and greedy. i did things include stephen mckee sustainable grants. i mean since it's your responsibility and can stand on the environment. solutions will pull more trees than the great unknown group the need to string automation new and antique its destination and new ways of charging high speed cars apparently these products account for thirty percent of our protection. the speaker twenty million out in the future. yes complaints by major companies. seattle was put into disgusted that the ndp strategy. the temple grounds especially on the backs of the broker said on the country's inclined to kids. recent reports revealed that need twenty percent returns from asking contending with toxic mittens that situation and crying that was something from the tree was packed and nine joe ingles wasting time or critiqu

>> with ali baba, it has been regulated.out more details when the file he becomes public, but one of the key tenets that causes them to list here is the partnership structure that they have been proposing, which is to have people to make decisions that shareholders approve. this is something that would be illegal by a hong kong standard because regulators do not allow or classes of shares with different voting powers or priorities, where in the u.s., we have seen this with companies like google. we have seen this with companies that have multiple classes of shares that it is ok in the u.s.. >> does that mean we will see more and more companies? comes to mind. structure choose the that is described, and there is a version, yes. these are global companies. even if they lived in the united states are hong kong, global investors, institutional and even their proxies and retail have access. >> retail. no, no, no. when you talk about retail investors, retail investors want to have a stake in a chinese a feeling a lot of retail inv

this is supposed to be an ecommerce play because ali baba has bought into it. part of weibo. if the chinese supreme court, declared illegal. and take away everybody's shares. it is involved in public discussions. there's nothing good about this company. stuart: technically according to chinese law at the moment i as a foreigner should not be able to buy stock in a communications company like weibo but i could have just bought stock in it so the danger you think is the chinese government will come along and take away my stock. that is a remote possibility. >> we had a similar situation in the 1990s where they point to a chinese telecom co. and for instructor, which is probably illegal when it was put together and the chinese government said it was. and area foreigners invest, they have a variable interest entity structure which is also a dodge and the supreme court just declared it to be a dodge, declared to be illegal. the chinese government has been much tougher on foreign investors recently. not inconceivable this could happen again and in the unit, deal fore

mobius, chairman of templeton emerging markets group says he will not invest in ali baba over concernsorate governance. listen to what he has to say. >> it is a big field. it is no question about that china is going to be more tech oriented, internet shopping is a global phenomenon now, and it is growing very fast. you have to pay the attention. but corporate governance is an issue. >> interesting stuff here. is no longer there a lot of big companies and technology that have dual share class, and it has been the way that owners and technology companies lately have been looking to control the company made >> google was one of the first. when you make of mark mobius's comments? this is a structure that is becoming more prominent in technology companies. >> a lot of technology companies like facebook of and going back to google and zynga, they been able to get away with this because there has been so much demand for their stock at the time of the ipo. after, shareholders of basically been able to and willing to say we're not would have a vote and we are not going to have control, but we c

there is this huge sound of ali baba coming down the market. i wonder if that can get done in a week market. >> we reported that alibaba can file as soon as this month. we could expect to see their initial filing. they most likely will wait before pricing. they do accord themselves some time to allow markets to recover. it could be beneficial, aside from pricing which may be difficult. it could help them in terms of beating first-quarter earnings. and then, rising from there in terms of stock price. >> how likely is it for companies to change their timeline, the schedule they have had planned? when twitter went public, in the middle of the government shut down. it ended when twitter came out of the gate. there was speculation, is twitter going to change its schedule. they didn't. >> it has to do with what they need the funds for. if they need them immediately, they're going to push to get the deal done. i heard that for several companies. despite the selloff we are seeing they are going to push the deal. if you can afford the time you will wait

on tuesday we are expecting ali baba to file in the u.s.e are going to be watching airlines on wednesday. specifically japan air and ana reporting results. high crude may weigh on the carriers. may tumble by as much as 50%. also on wednesday, a big day. the lineup for this seasons could behip league confirmed. it could be the first. ico facinghlet chelsea. it could be an all madrid final on may 24. and to the state of macau, we are going to get april revenue on friday. they were jumping 50%. >> after the break business in tokyo as they digest their lunch. japan has been leading equity markets across the asia-pacific. a loss of just over one percent in the morning session. a recovery this afternoon? the reopening is next. ♪ his to thed philippines with plans for a stronger military alliance. where stocks are rising that ipos are a tough sell. the issue with vietnam. and the oedipus complex, building the tallest tower in the world. so first, let's build on things with markets now. >> investors will be wishing for the --to be as high as it was

ali baba didn't beat around the bush, rescues yaho s yahoo! >> going on a long time. not like something that started yesterday. we've spoken about whether there is a turnaround despite a strong performance of the stock, you could argue much is due to the increasing value of alibaba this morning bernstein research goes to a $245 billion value. estimated value. >> that's crazy. >> what this has done, taken the trajectory of everybody's numbers higher even though sales growth will, of course, start going lower, those numbers are still higher. so they're now looking for 46% revenue growth in '14, 33% in 2015, that's higher than they had been you get to higher numbers, higher profits. >> well. >> higher value. >> you know one of the key lines in the conference call, goldman said, good stewards of the cash. >> what are they going to do? take $10 billion in, $12 billion. who knows what the number will be, sell 12% or half their stake or less. >> how many shares they bought this quarter. they keep buying. >> should they buy yelp? >> you know i think they should but yelpp has

earnings, likely more because of its valuable stake in ali baba as opposed to the revenue growth at thess. i say this, emily, google came out with its results and the stock was week after google reported. google had 19% revenue in its most recent quarter. >> right. however, cost per clicks going down, a per click going up, how does it continue to monetize mobile in the same way it has been able to monetize search? they have relied on search for so long, but mobile is the future and google has to figure out how it is going to build and continue to build and grow its core business, at the same time it is doing the moon shots. >> i think sometimes when you do a quarter by quarter on the stories, we lose focus on the fact a lot of these big brands will give a lot of money to google to spend on different platforms. pc's, mobile. google is suggesting they are finding a way to do that. >> all right, jon erlichman. thank you all for watching this edition of "bloomberg west." see you tomorrow. ♪ >> this is "taking stock" for wednesday, april 16, 2014. i'm pimm fox. today's theme is twisted. some

that stock has been a proxy for the overall ali baba chinese internet story.the fundamentals, there is not much there to look at in terms of growth this quarter. it will probably be a quarter of no growth in their core advertising business. frustrating from an operational perspective. the company has not been able to post any sustainable topline growth. they are losing share to the googles of the world both in display advertising and search. it has been a tough for them. response from the ceo is to try to acquire some growth for the company. the most recent strategy, as you mentioned, is getting into this original programming. online video advertising is one of the strong growth areas of the internet and one that yahoo! is not fully participating in. been ceo for almost two years. would you say that she hasn't had enough time to make a market? >> i think the honeymoon -- if it is not over, it will be over very soon in terms of operations. the whole alibaba operation has bought her time. the story has been such a boon for yahoo! at some point they're going to h

and ali baba confirmed $1.2 million investment in the leading television company.ll join the board as part of that deal with youku todou. >>> the local economy is becoming more dependent on help from abroad, mainly from chinese tourists. take a listen to this report. >> reporter: this used to be a bridle passage for horses, but now rodeo drive is a destination. so how is the economy? this city is increasingly dependent on chinese tourists. >> i would say that as much of 60% of our business in some stores and some stores might report more than that comes from chinese shoppers. >> reporter: they are no longer just day travelers coming in huge groups on buses. >> the young ones are now doing on our own or great major ways with 37-year-olds. before it was chicago, new york, san francisco, and now we are finding that 15% of our volume is from australia. >> meantime, beverly hills celebrated a big 100th birthday party on rodeo drive with a massive cake. this was a sample of a cake 12 feet wide, 24 feet long and 9 feet high with 700 pounds of chocolate and nearly 1700 egg

like to see some domestic growth. >>: if you buy all shares and now with hopes of allocating some ali baba any of those shares. it will be a game for yahoo. you buy yahoo now. a lot of people did not seek a a well revitalize and sure enough it was and still live in prosperous today. --aol. and the amazon smart phone is coming our way soon. what do you think. >>: this could be very cool. some weeks are starting to get out of there. is a mockery to a 3 d image of the user interface. it's a hot pole of user interface. i don't doubt. he's come up with goofy ideas. when we first heard about them the kind of silly books like this is going to be coming out in june. and it's same game on to apple. iphone 6 coming out. what will make them unique. a lot of people think it will be sensors. it geared towards your health. clearly would be we would be wise to pay attention to. so amazon smart all coming in june. and getting it ready for jones. >>: anything that has a protein in it. wheat prices go crazy ticket prices for crisis origin of spiking higher. during this holiday into the big one for the easte

it has china and a little known contract with ali baba where they're guaranteed added revenue and that's the next eight quarters. you're going to see webo blow away its numbers. a lot of investors are not going to think they have a special deal for two years. they're going to see them blowing away their numbers quarter after quarter. if anything, you either believe that webo is dramatically undervalued and twitter is the most overvalued stock. if you want to hedge it, you sell, and you go webo. >> yahoo is trading as if allie baba's cop is going to be south of 150. >> yeah. >> does it matter. i think it does. >> i think it matters. >> it doesn't matter. >> you know what, allie baba is going to go public after labor day. yahoo's stake is almost $50 billion. way more than the market cap. if it beats by a penny this week, yahoo's earnings don't matter. it's a call option on the ipo at this point. >> webo can be a 30 time sales in a week and then we're talking about the highest possible -- we're talking about a market cap for alibaba. if this continues some may be down 50%, 60%. in 1999 pric

after ali baba posted great results. after the bell, tyler, we have big tech earnings coming up.e'll be tracking it all. >> let's look at the transports so far this year. a decent run, not all transportation stocks are created equal, are they, dom? >> they are not. check out -- it really is one if by land, maybe two it by air, a little poetic license. if you're playing for cargo and freight stocks in 2014. within the industry sector, the road and rail instrument group, as well as the freight and logistics are two of the big ones. on the one hand road and rail up -- again, a nice move higher. this group includes union pacific, csq, ryder systems on the trucking side. air freight and logistics is down as a group. four stocks make up this group, u.p.s.,fold ex, cq robinson, all in the red so far this year, but fedex is worth $39 billion as a exude that's massive compared to the $8 billion valuations for the other two companies. now, on the road and rail side of things, four the the five stock are rail companies, with the lone exception by ryder. csx may be lower on the day on the he

. >> why did ali baba decide not to go public in china? i cannot comment but we will see how things proceed. security is an issue. >> it has been for a long time and obviously represents a tax on our business and other businesses. it is important we excel at it and the last thing you can do is get relaxed and all. we built up our capabilities and we have got to stay away -- one step ahead of the risk. today's "financial times." >> i have not read it. investor tests patience. his patience being tested? >> i do not think they are. we had a brief run-up and we had a strong what he 14. the controversy with respect to the book is the headwind on the stock. it is a temporary blip and it will perform quarter after quarter and year after year. the last couple of weeks have been not the best. >> what is this between you and turtles? would ask that question. i do have turtles. i have a dog. -- a dog as a pet also. turtles are walking dinosaurs, right? they have survived so many things so in some ways i have to identify with survival of the fittest o

ali baba's names, including the recent sales no singles day.t's the big shopping festival in china. they did upgrade to outperform, based in part on this excitement over the upcoming ipo, tyler. >> intel, the street looking for 37 cents a share, sales roughly 12.8, 13 billion, can they deliver? will we get any details on the mobility strategy, which is something that has been fuzzy so far? >> 12.8 billion, representing about 2% growth, certainly, listen, we know pcs are facing big secular challenges, you will, though, find analysts on the street. that's because 24th see -- to your point, watch the 36789 c client group, analysts looking for sales, and also that big business segment responsible for chips used in smartphones and tablets, i think you'll see revenue in that segment jump about 6%, says tomorrow jon fortt will be interviewing intel's ceo, so stay tuned for that one. >> he'll be on with brian kerzanich at 12:30 eastern time. josh, thank you very much scott -- sorry. simon, down to you. >>> it is tax day. as you rush to file returns, yo

up after hours because they own ali baba, and priceline, it was an annihilation caused by too many companies getting too much capital that's precisely what's happening right now and you see it added -- you see it at its worst in the software as a disservice base where everyone is gunning for each other. the niche players are slugging it out and orcal, microsoft and ibm, they have committed to cloud when they talk about their earnings now. thank you talk about cloud cloud cloud. they're like weather people. they have to do it, survival. these companies are going to bleed each other to the point where lots of the new byes can't make it. we're hearing that box and dropbox, residential renting booking company might be worth $10 billion. okay, i'll say it, that's nuts. it can't last. the competition going to be too rife. they'll bash each other, you don't won't to be there when that happens. i'm taking a calm day going over this stuff. finally, there was the selling. always the selling. the relentless drum beat of selling, selling, selling. by everyone. new companies, ipos, secondaries, at any pr

people understand this as being a deriftive -- derivative of ali baba.aps that won't be the god send that yahoo! is. i think it's a buy that's come down too much and therefore, it's an opportunity. tom in tennessee. tom? >> caller: yeah, jim, my question is, it's about micron. great earnings, great conference call. great guidance and like you said on friday morning on "squawk on the street," this stock is going up. i agreed with you totally and just to watch it fall like a rock. what's going on? >> well, my friend herb greenberg who writes reality check who appears on cnbc has said that guidance isn't that exceptional. it's the idea that maybe pricing has peaked in some of the divisions. i think micron is a stock i have to do a toss-up and figure out which one is right. it does have a little bit more of a kentucky feel than a uconn feel right now. you know that i want you investing in the stock market. i understand that everyone has a different budget they're working with. so this week we're looking at great stocks in every price range and starting from

its advertising sales are picking up and the internet company's 24% steak in ali baba has turned intosset. the company is preparing to go public. >>> ford is rolling out a limited edition mustang gp to honor the iconic car's 50th anniversary coming in two cars, white or blue. ford will only sell 1,964 of the cars. that is a tribute to the first ford mustang that was sold in 1964. it's debuting at the new york auto show this week. no word on what it will cost. frank and juliette, i could see you cruising around, frank, up there in san francisco in one of those. >> you know what? good-looking car, yeah. i bet it costs plenty, too. i'm a keurig fan. i got one of them make a lot of coffee. but they are branching out to breakfast snacks? >> that's right. keurig is teaming up with general mills. they will be selling nature valley oatmeal that can be cooked instantly with a countertop keurig machine. it comes with a flavor capsule. costs $22 for eight packets and says will save time. >> that would be us scrambling in the morning to save time. jill wagner of cbsmoneywatch.com, thank you. >>>

i know this is tied to the ali baba, of course. but there's opportunities out there, scott. let's not put everything in the nasdaq together like it feels like we do at times. when you look at the nasdaq now, look at microsoft, still performs very nicely. intel, still performing very nicely. you look at the other names in tech -- hewlett-packard, ibm, they're not all being thrown out. qualcomm, as well. there are names that are high fliers, being sold. high-quality names not being sole. they can push these down even in markets like yesterday. >> i want to thank kenny and rick for being with us today, as well. >>> our next guest was on with us a few weeks ago, and he was growing increasingly worried about stocks. let's take a listen. >> i think we're on the verge of substantial correction. i actually think that, you know, that despite the fact that i day trade and go home flat every day, i think the s&p's going to go back and test where its old high, around 1,575. now, when it's an all start -- it seem like it's starting to play itself out at the moment. >> larry altman is a p

investors salivating over the ipo from ali baba. people are becoming more familiar.ere in a very populous is just figure and businessman, but henson was a company mentioned almost in the same breath, much more low-key. also considered equally as big a visionary with his company. he made interesting moves a vers rivaling alibaba. he has the we chat messaging service area some people are saying, it is not just alibaba but all of them are trying to break in to the new markets and are all looking very similar. gotes, they have always $.50. when i was reading the filing, it struck me the social media trends in china are very similar to the trends we see in the u.s.. it struck me reading that perspective that this is not just a fat social media. interest people all over the world in similar ways and appeals to methodologies and communication connection that seems universal. >> thank you so much. great to see you this morning. we will be back in two minutes. ♪ lex i want to bring in dixon again. we talked over the years about how much we invested early in the tech companies

you can read more about ali baba in my usa today column. that is online, check it out.about apple earnings, next. ♪ >> we have some breaking news. seccomm is getting an notice on china bribery allegations. cory johnson and brian blair still on set with me. ?hat is your initial reaction notice is a big deal. charges may be coming. we also know there has been thatleblowers allegations the company investigated itself and found nothing to it. this may be that same thing. >> it is a terrible headline, bribery allegations something you never want to see. we do have apple earnings crossing right now. apple earnings second quarter 1162. in i know what you are going to say. >> a great big quarter. >> i thought you were going to tell me how wrong the analysts were. . big beat >> i want to see the rest of the numbers. better on the bottom line. >> the big change is the buyback program will go from $60 billion to $90 billion. 's voice getting listen to. >> paulist joining us from the west coast. -- paul is joining us from the west coach. he is a lubricant shooting editor. contribut

friends ored to my with jack of ali baba.t they are doing in internet banking and taking on the banks. there are a whole lot of private sector people who are encouraged believe thatreally this is a government that understands the future of the country is the private sector. ping, wherever he was, every pro blem, there was a big emphasis on the private sector as opposed to state owned enterprises. there are other people who have accumulated a lot of wealth and people who really benefited from the vested interests. -- who anybody who is understands china, i have to believe most people that are there understand it better than that thesegnize reforms are not going to be easy. >> what role do the people's liberation party play in the economic reforms? our van obstacle because they have vested interests or not? -- are they an obstacle because they have vested interests or not? >> as you look at the state owned enterprises, the government owned enterprises, central a group of government owned companies. when i talk about state owned

has a very large share in ali baba, which could potentially become the largest ipo -- >> is not justahoo!, it is netflix and google and facebook and twitter. adams, how long do you plan to stay overweight? we have a methodology for sector selection. we look at price momentum as a factor. as a little concerning, but not terribly concerning. which ist earnings improving for the sector. we look at valuations which is still extraordinarily cheap. our estimates suggest that tech sector earnings should grow about 10% this year, which is significant. we're seeing the early signs of capital spending improvement in tech which should translate into much better earnings. we have to see something move to reduce our overhead. >> any correlation to the twitters of the market to the submarket?l mall at they seem to be two separate universes third twitter rolling over to be polite? do i care? to degree. you care because it is part of a larger group of constituents. with the loss of the leadership, you have to see another sector. >> here's the dirt. gina martin adams calls on the people that manage o

owns the 24% stake in ali baba, which holds 1500 patents in the united states.s off the table. alibaba seems to be unique in its understanding of western ipo standards and chinese companies, they are one of seven actually filing this year, but this is substantial with a and building u.s. patent portfolio according to regulatory filings. is takinge a company lessons from other big tech companies and making a play. as to whatious buying patents does in terms of the ipo profitability. is there a correlation between them? study, aactually was a french study, a french researcher who found a direct correlation between them and found that every patent drives up ipos for software according to a 2012 study, .9%. so, a direct correlation. but the questions are looming as the supreme court and congress consider how broadly a patent can be to have teeth in court. we have seen the huge increase in the number of patent trolls and frivolous lawsuits over patents considered by some to be too general. on the way the supreme court goes or that congress goes, it may be important f