ali baba has profits. so that's going to be an ipo that will be looked alt and of interest to the ipo market. >> do you expect it will buck the trend, in other words, 70% falling below the forecast range? >> we think so. can you look at ali baba and put a mumt pm on their earnings and come up to a valuation of that $150 billion. that will make it a little easier to value. i think almost every portfolio manager will want to own this company, which will be the world's largest ecommerce company. >> you know, back to the overall ipo mark, it was really strong in the couple months of this year the last couple weeks it's gone soft. we have a lot of going public, in fact, a lot are chinese companies as well. how do you think these companies are going to do this week? >> i do think investors are going to be very selective about these and there will be some pricing pushback, particularly the ones that aren't making money and i do think that there's a focus on the very largest most valuable internet properties. so i

ali baba filing for a u.s. ipo.look at the chinese entrepreneur behind the internet giant. >> lucky, just lucky. >> reporter: jack ma may be lucky. she also relentless, 15 years ago, he launched an online b 2 b website ali baba, no one would help him. >> i was rejected when i talk about it, they look at me strange. what, alibaba, what are you talking about? i went bab to china, with nothing, no money, nobody invested in me, but i full o confidence. i sold of american dreams. >> reporter: the hard work paying off. it did, it has turned into the largest platform, beyond b-to-b online payments and more, making this 49-year-old former teach worry taught himself english worth nearly $9 billion. >> today we have lots of money and we are careful for every penny we spent. >> reporter: ma is a different sort of chinese businessman, he's funny. here he is in stamford in 2011. >> are you going to boy yahoo? >> a good question. yes, we are very interested if that. >> he has a knack foranalogy justs. >> this talk is just like a

there is no law -- no love lost between baidu and ali baba.e have a balkanization emerging between these two. now we have the rise of $.10, that is pitching the two off against each other more and more. >> it sounds where it really was a small group of people who kind of knew each other, had personal relationships, not just in the .com days here in the late 90's, but in the early 90's, there was a small group of people that tended to know each other and go off in their own directions. >> in 2000, jack convened a group of internet pioneers. there was another company that predated jack, but he had the chutzpah. he can speak truth to power to the government and people of that stripe. >> antivirus pioneer john mcafee has been very busy after fleeing believes and returning to the united states. we have all the details on his newest venture in an exclusive interview right here on "the best of bloomberg west." ♪ >> welcome back to "the best of bloomberg west." i'm emily chang. john mcafee was on the run after being deported from a prison in guatemala

flahertyn for the brings to his role as chairman of ali baba. ceo of china's biggest e-commerce company next. ♪ >> welcome back to "the best of bloomberg west." -- ali baba founder has changed the way the chinese do things. he enjoys performing for employees. take a listen. [singing] quite a voice their. has his zany personality helped pushed ali baba to the jack sincehas known he started the company. i asked him what he is like. >> just like that. he was singing. he leaps out at you. a is not a tall man, but is very tall man in terms of his personality. he has a wacky, larger than life image. you get a palpable sense that he is somebody different, both in chinese and english. did you have any inkling that he could take the company this far? to become one of the biggest technology companies in the world. >> when i met him it was a small apartment with a bunch of toothbrushes in the apartment which was the number of employees. you could see they were living in the apartment and working around-the-clock. that. there was already a vision. goldman w

s stake in ali baba.ot making an excuse but they do not want to take the risk and not get the license they need to operate in china from the chinese government. they kind of use that as kind of an excuse to do that year-and-a-half go. i think the backlash that has been created is tough and taught management a very good lesson. given how smart they are, i don't think they will do it again. >> zia, one thing we are wrestling with is how to define this company. is it say it is the paypal of china -- is it fair to say? >> it is different in that it is an escrow based service. you can wait until you actually received the product to pay him the funds are not released to the seller until you guaranteed it has arrived safely and you are satisfied. there are a handful of other ways in which it differs but it serves a similar process that paypal would on ebay here today. >> crawford, how much does this idea of how much we can trust jack ma, the alibaba team, how does this play into your assessment of this company's

ali baba is a company that has already like 80% market share. if it was the united states you would have the andy-competition regulators nipping at your heels. obviously china does not work like that. monopolies manage to -- i would like to ask you, colin, if you back out the stakes in ali baba, in yahoo japan, what's the value of yahoo itself? people are closing stuff out there that it's close to zero. would you say that? >> the key factor here is the tax implications, right? so you have to ask yourself, is there a chance that yahoo can redue their tax burden on their alibaba stakes. for the first tranche that's likely not the case. they'll have to the pay the 35% corporate tax rate. they'll still have a significant holding in alibaba. perhaps there's a chance they can reduce the tax burden going forward. same thing with the stake in yahoo japan. we value the core business at about four times ebitda, using about a 1.2 billion ebitda number. >>> we'll get you back on, colin and josh. thank you very much. >>> now to the techcrunch disrupt confere

cover ali baba, yahoo!, but here's the spread.t was in the early bernstein years? >> on one hand, i like businesses with structural advantage and alibaba has structural advantages. i struggle with these kinds of valuations. alibaba than i do in yahoo!, but i do not follow either one. >> how critical is the auditor of an initial public offering? do you care about the accounting for any chinese entity? >> of course you do. everything from -- there has been some hard examples of when you overlook it. alibaba has a genuine business. they have a real business. it is not a joke. whathallenge is -- valuation methodology do you apply to a business like that? the market is going to be struggling with that for years. accountingtioning of -- it has been said frequently that even chinese gdp might be skewed and a positive direction for political reasons. we cannot know. -- thenese economy leaders want to integrate with the rest of the world. the chinese economy is trying to enter into global commerce and a full and complete way. you will see

he came up with the name ali baba by sitting at a creamery. now, we don't have a date yet on the ipo, but it should be the biggest ever in tech, maybe the biggest ever in any industry. >>> shares in tesla lower this morning, really, all tech stocks are. tesla set to report profits after the closing bell this afternoon. the company just announced it will open a new store in carte madeira. >>> san francisco zoo's has a new name and it's awfully cute. a couple who donated $31,000 had the honor of naming this cute little baby red panda, ten zing. today's debut will be featured on animal planet's tree house masters next month, but you can see this little guy here. crews from the show constructed the panda's new home. the 10-month-old panda will make his first public appearance this weekend. just cute as can be. >>> let's check in with christina this morning, who says we have a stunner ahead of us. >> we really do, just spectacular conditions, because we're holding on to the warmth we had yesterday, but getting rid of that wind. still a little breez

some analysts say ali baba could be worth up to two hundred forty billion dollars after an ipo. that would propel it into the same league as american giants apple google and microsoft european stocks put on a brave face with sales to two days of falls. the dax for example nice to squeeze some gains of the markets despite the ongoing uncertainty in the ukraine yourselves fifty wasn't the mind in the us the dow is up with this now by knopf said you wrote down that is slightly one thirty nine fourteen a new twist on it it's that time of year again for the past decade the building has been awarding prizes to the big bloke is on the net. this year's award goes to a photographer and eat it too often puts his life at risk for the sake of his work. i will go smoothly. no one in the show people in extreme situations often in mortal danger. as long as the most charming tell stories exclusively through photographs. the twenty three year olds were convinced the jury he merits this year's baltimore. we're having for fourteen beginning with this motorway and is not speaking any of those langu

>> we're seeing the f1 for ali baba, very few details, a $1 billion placeholder for what ali baba hopes offering. we're hearing it could be upwards of $20 billion, one of the biggest ipos in u.s. history, but, of course, they are just going to hold that place with $1 billion. no symbol, no exchange quite yet. no idea on timing because, of course, the s.e.c. will need to go through this document. we're seeing six banks as expected lists in alphabet call order on the front of this filing document. one of the main numbers that investors are going to be looking at is gross merchandise volume. that's the amounts that transacted and goods bought and sold on the ali baba platform. last year that was $248 billion, a multiple of the business that amazon and ebay do on their businesses so it shows you the scale of what ali baba is doing here. a big pores of that is mobile, not as many as expected so those are the two key numbers most people will be chewing on. more when we go through the document, more about margins and exactly how much is processed in payments. those are other key figures invest

the ali baba ipo -- yahoo! is selling 208 million shares, or 40%. that could mean more than $10 million for yahoo!, more than double the amount of cash -- $10 billion for yahoo!, more than double the amount of the cash they have on hand. what will the cash do for yahoo!? >> the question is where will they put it to work, look for an acquisition, buy back shares? what has always been the question for yahoo! is what businesses will they go after in the future and will they do with the requisitions or build their own? >> cents marissa mayer took over in 2012, it has acquired 40 companies. has the strategy paid off? >> there have not been big acquisitions. that is not necessarily a bad thing. acquisitionsy almost never work. i do not think they should be faulted. had a lot ofas technological acquisitions and minor content deals. traffic,er deal added perhaps not high revenue traffic, but it at least gives the more inventory. fundamentally, the performance in the stock, it might be intruded -- contributed entirely to ali baba, and the notion that they wi

it is reasonable to think about ali baba as kind of eric indicated. one of the seminal internet companies to come public over the last 10 years or so. f-1 we look over the filing, which became available in the last few minutes, the number that struck me was over a dollars ina trillion gross merchandise volume. was is what the company responsible for in terms of sales over the last year. that is a very large number. -- $250illion dollars billion. >> right. exactly. a large player. the other data point we thought was interesting, understandably alibaba is a dominant provider when it comes to the chinese e-commerce market, which is big and growing substantially. what is noteworthy is they broke out their chinese e-commerce revenues and international e-commerce revenues. forrnationally is accounted 15-20% of overall revenues. it is already big and growing substantially. we think alibaba wants to become more than the dominant chinese e-commerce company. they have aspirations well beyond that as well. >> cory johnson, i want to bring you back in here becaus

give himded people to $60,000, the beginning of what is now known as ali baba. for commerce, he has broadened the company's interests. alibaba is involved in cloud computing, banking, and even has an online music service. his personal fortune is valued at $13 billion. an empire seems to be his motivation. he told charlie rose that if alibaba cannot surpass microsoft or walmart, he will regret it for the rest of his life. >> for more on the man in charge, i am joined by matt miller, editor at large for our numbered billionaires team. he looks pretty in tune. >> such an empire builder. you cannot discount how big a deal object model -- how big a ma isack mock -- jack to e-commerce. there are more people shopping online in china than the countries on earth. 700 mutual -- 700 million people shop online in china alone. his ambition -- she has some quirks and we can talk about company, heis really is one of the richest people in the world and to probably be in the top 10 soon. weiss what are his quirks? with started the company $60,000 from 80 people, not that quirky.

he had come to ali baba, he was making investments in us-based companies.nvested in online sports retailer and had headlines for investing in shop runner which is run by scott thompson. but since his arrival, they have been ramping up with some of these investments will stop they invested in lift and first hymns. they invested in the parenting company of tango. they want to be in the conversation of being a service like ebay or amazon, on the road to generate a lot of money -- 15 alien or 20 billion long-term. >> many u.s. technology companies have failed to get into china. ebay and amazon among them. what do you make of the investments alibaba is making in u.s. companies and moving on u.s. turf question are >> we will see what kind of business they try to get here. the opportunity to try new things as they get into it. we will also see how they reported when a file. it will be interesting in part because it results in some of the companies they've required will be rolled into the trailing results. -- companies will say it's actually organic and will count

what was it in 2002 that you saw in ali baba?t jack ma who said personally, you should make a bet on us? >> jack had a relationship with one of our founders. it was less than a $20 million revenue company, but he had a very good vision of what he wanted to create. if you read the prospectus, they have a 100-year vision for the company. a great entrepreneur, jack and his team. >> it has not been smooth sailing. he took the company public, it did not work out, he made it private again, and they are bringing it out again. are those bumps in the road behind them? >> every entrepreneur has cycles. they went public. now you you have the ali baba group going public, and that is a much bigger, broader story that alibaba.com. it did have a $10 billion market cap. it was a successful company. they brought it back in, and now the group is going public. bumps in the road made them stronger, and they are a much bigger company. >> the filing does not write down how each of the businesses are doing. overall sales and net income are strong, but

ali baba as well gaining traction in the u.s.ook at this, what great deals i am finding, you know ali baba is picking up steam, going to be big. stuart: it certainly is. you are in default, you say if the market sells off, pension problems are coming. explain. >> not even if it sells off. if we don't see some big numbers out of the market this year you will hear headlines toward the end of the year about a lot of pension plans that are not funded enough. you heard that theme about underfunded pension. alternative investments are not performing at the levels they need to perform to get the number up but the bonds and fixed-income out there clipping coupons but yield to maturity for these bonds have 2%, and we have a lot of people retiring starting to draw on that money and the money is not there. this is a huge steam over the next 18 months starting after they were for their numbers on june 30th. watching that story, anyone who has a pension, it will get real dicey, real soon. stuart: you are talking about state worker pensions, r

shares moving lower after ali baba. filed for an ip on in the u.s. cog any zen things to increase tech sending in europe. elsewhere convince again a mix of internet and high growth names, tesla shares lower ahead of its earnings report. priceline also getting set to report, shares lower on the day, though traders say that upbeat earnings could reset the way these stocks are perceived. lastly whole foods getting hit on disappointing earnings. bmo, sterne agee, jeffries all downgrading shares of whole food, the main concerns being strong competition and how that will impact future profitability. >> down almost 20%. thank you very much, seema. >>> let's get a market flash with sheila. >> seema just mentioned whole foods, but check out the ripple effect it is having, so three our retail grocers are down in simply. take a look at sprouts farmers, fresh market and fairway, all getting hit. by the way, don't forget that sprouts is out with earnings after the bell, but nonetheless a very tough day for these retail grocery stocks. sue? >> sheila, thank you. l

here comes ali baba. commerce giant, filing for a $1 billion public offering in the u.s. don't let the number fool you. it's likely to go up. this ipo could be bigger than facebook's $16 billion offering. maybe even the largest ipo of all-time. it's time for the "buzz." 90 seconds on the clock. the reason we have yahoo! here, yahoo! is a huge stake in alibaba? >> more than 20%. had been a lot of excitement about what yahoo! cashing in on alibaba would door for its shares. look here. filed tuesday. stock plunged wednesday. i think a classic case of sell the news. there weren't enough details i think in the ipo filing to get yahoo! investors excited again. >> it's a real entree for ali baba into the u.s. market, though? >> definitely. interesting to see how the company does and whether or not they expand into the u.s., too. >> twitter. another big mover this weekend by mover i mean loser. >> yeah. twitter is just getting its butt kicked, really, in the market right now. shares plunging because of the lockup expiration. all the insiders that were able to start selling, start

ali baba making a big move.ing very sharply. do you sink this is a bubble in those particular stocks? >> it has a lot to do with whether these companies are flappable or not. a lot of them are, getting revenue in the 99-2,000s we are different situations all i don't think we have a bubble. do we think we will see minor corrections? i do. bubble, not like the ones we've seen before. stuart: the dow looks closely setting another record. what do you say? >> it is liquidity driven. with the comparison to the ten year yield or compared to as far as real estate. it is the only place you will get any return on your money and you will see that at least with the fed the way they are for the next several years. stuart: okay. you heard my take on a few moments ago. i would rather lose my phone than my wallet. you climb to 9 facebook and twitter, we will bring you your response next, thank you to the halftime report people, see you again soon. your wallet or your phone? which would you prefer to lose if you had to lose one?

something else, costumes con ali baba. melissa: what do you think of this? you can get just about anything. i was blown away, i did looking for peeling not, wanted to import them into the states. i started finding things like you could buy a million barrels of crude oil and get little things of carl rogers doing odd thing this. melissa: does this make you feel better or worse about the business as an investor? >> it makes me feel scared. the reason is how do you get i whaeason is how do you get i whaeason is how do you get i ys say be thman with the plan but with less ergy, moodiness, i had to do something. i saw mdoctor. a blood test showed it was low testosterone, not age. we talked about axiron the onlynderarm low t treaent that can restore t vels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especlly those who are or who may become pregnant, and children should avoidt where axirons applied as unexpected signs of puberty in children or changes in body hair o

eo of with ali baba filing for a u.s.i asked him if he sees any risk to investing. >> all of their success has been in china. the question is how big can the chinese market be. we know people are trying to compete with them. they will get local competition. to this point they have not had that. when they try to be in the u.s., what is their growth potential in the united states? will they be able to buy companies? there are a whole bunch of unanswered questions. the management is extraordinary and they have tremendous momentum. they have accelerated their growth during these are long-term questions. >> yahoo! well sell half of its stake in ali baba. >> if i were a betting man i would say she would return some of the to the shareholders as she did before. the question is what areas does she want to grow in? it is difficult to buy a company of certain sizes and scales. companies, there are a lot of public companies that might be interesting for her. she will be judicious about it. i don't think it is the goal to move immedi

this growth is even faster than ali baba's as the net income increased year over year. you heard me, 359%. so they're not just slapping and cutting prices. on top of everything else, it's moving aggressively. just from the previous quarter, mobile now makes up 36% of the company. as for next quarter guidance, they forecast a 122 to 125% increase. they're just extraordinary. 16% higher than what wall street was looking for. no although today for the a nice pullback. if it keeps falling, you could have a great entry point, but this is speculative, rank speculation. how is vip shop able to prove such incredible numbers? some of it is a business model most of what they can buy they it turn, that makes it relatively cheap. some of it is because the the company does a good job of finding the products its customers want. and they have good relationships with the companies behind the bran they sell. go to the site. they have great pictures, and a lot of them are american. you'll see australian brands. i had to google them. tried to order them, but couldn't. and european bran, a

yahoo currently has a 23% stake in ali baba. a large chunk it will sell off in that ipo. >>> 2 investigates concerns over a well known bay area fountain. >> people tell us that this fountain's water is filthy. filled with huge waste and used drug needles. don't, we investigate those claims, and by one man who says it gave him an infection. >> i'm bill martin, live in washington. i'll see you right here after the break. >> plus [doorbell rings] hey. hey. what's this? it's u-verse live tv. with at&t u-verse... you can watch live tv from your device. hey. hey. anywhere in your home. [doorbell rings] hey. hey. so you won't miss a minute of the game. call now to get a u-verse bundle for the same great price for 2 years. guaranteed. so yso you can happily let the life get in the way,... while planning for tomorrow. so you can finish the great american novel. banking for the life you have... investing for the life you want chase. so you can. >>> back now to that developing news on that mountain lion situation in mountain view. game war

yahoo currently has a 23% stake in ali baba. large chunk it will sell off in that ipo. >>> 2 investigates concerns over a well known bay area fountain. >> people tell us that this fountain's water is filthy. filled with huge waste and used drug needles. don't, we investigate those claims, and by one man who says it gave him an infection. >> i'm bill martin, live in washington. i'll see you right here after the break. >> plus new insight into that incident involving 49ers star quarterback, colin kaepernick. the 911 audio that was just released today. >>> back now to that developing news on that mountain lion situation in mountain view. game wardens are now there with plans to tranquilize the animal. it is now in what authorities are calling a secure area in an underground parking lot. the animal wandered in there this weekend. this picture from the mountain view patch was taken by one of the people who first reported the mountain lion. the animal was wearing some sort of tracking collar, and fish and wildlife officials are trying

first of all, ali baba is a great company, but investors betting on alibaba are betting on china as much on anything else. >> here is my morning must-read. it gets to what we have seen. short blistering note for bloomberg -- "does the fcc have the guts -- does the sec have the guts to tank ali baba's ipo? the most alluring option for the sec's current commissioners might be to do nothing, pray for some diplomatic solution to emerge and leave the mess for their successors to clean up." toi would be hard-pressed get in front of this kind of ipo. you buy shares? >> listen, it all comes down to valuation at the end of the day. how will the company be valued? i do not really by individual public stocks much because i am heavily invested in the sector and that is not what i do every day. away theaba is going leading chinese internet company. if you believe in china and the internet in china, they effectively own it. why not just go that route? >> you could. i am not making a case for or against alibaba, especially because we have not seen the valuation. i am simply saying whether they fully ge

down 6.5% as ali baba is closer to going public.nes with this cme with more on this one, looking ugly on that board. >> absolutely. these stocks have been weak. the weakest stocks in the market over the past month, we saw future reversal in the broader market opening much lower and a lot of stocks came back but momentum stocks continue to remain depressed. we have seen a lot of money come out of this space and rotating to bigger caps, less volatile names and traders are positioning themselves for the summer going forward and headline risk out of ukraine and and and shore environment for interest rates. melissa: is their opportunity in any of these stocks that getting hammered? is any one of them a good one? >> we have seen expectations of ali baba's idea, action traders are very bullish. that put 3-1 of the the past two weeks, traders definitely expect to come up on yahoo!. melissa: thanks so much. all eyes on the electric carmaker that has tesla shares falling just hours from now. for all of elon musk at star power the company is f

the ali baba acquisition was amazing for them. that was a brilliant acquisition and kept them from being a single digit stocko uite business 2.0 and a couple magazines in the heyday and their resilience of acquisitions, these things gone all day long. i don't think they have a great track record. >> they bought into a captive market. ali baba succeeds because jack malt is in bed with the chinese government and the communist party. it is true. you read the news coverage they don't mention that. that is why the investment succeeded. stuart: that is all yahoo! has gotten, really. investment in ali baba. charles: they are racing against the clock. core business is eroding, not growing the growth that will send stock higher so got to use this cash, they will be smart and swift about it because there is a lot of defensive bill's going on so they are in a tight position. stuart: dow industrials down 54 points as we speak but by now i am sure you have seen the video of rapper j z punch in an elevator by his sister-in-law. that was leaked

yahoo owns 24% of ali baba and will reportedly sell 40% of its stake raising $10 billion for yahoo.hoo stock has more than doubled over the past year and a half because of alibaba's valuation. now there will be more pressure on the company to perform at its core business level. yahoo shares this morning down 4% despite that news. >>> worker productivity fell in the 1st quarter according to the labor department. down 1.7% following a solid gain in the prior quarter. another reflection of the harsh winter that we saw across the country. as far as labor costs go, though, they rebounded up 4.2% after two straight quarterly declines. the stock market rebounding this morning hoping perhaps for a thaw in the ukraine-russia crisis. russian president vladimir putin wants to talk about some european countries about a way out. the dow up 40. nasdaq down 12. s&p up 3. big losers out there including groupon down 15%, whole foods down by 19% after their earnings results. back to you guys. >> all right, thank you, jason brooks from kcbs news. >>> a note from a san francisco landlord might have sen

ali baba is making $.43 per dollar. these companies they might look similar, but are very different. that means something going forward. >> for me, it shows a strong personality who fears nothing. you. will find it for >> karaoke. >> fran loves it. what i find amazing is the sheer footprint this company has in china. it is colossal. it is a huge chunk of gdp. >> two percent of gdp in 2012. it is 70% of package deliveries in china. that china is something we all want a slice of, but not many people understand. how do you evolve outside of china? >> how do you not love that? i think rob is with me on this one. >> he is not the only singing billionaire. warren buffett plays the ukulele. he might be a little bit better than jack ma. softbank, he will not sell his stake. yahoo! will probably sell some of its business. can we believe him when he says that? >> probably not. this is a guy who has made a career of getting in and out of deals. yahoo! got really lucky on this one. encounter that he had with jack. .ahoo! news the c

then that next night we had the ali baba, biggest ipo over and then we have the beats by dre.here's a lot of tech stuff going on. if you're think about it with a no so rosy glasses on, doesn't look great. >> this feels like a little bit of a frenzy for me. it probably was the late stages of a bull market going op. we had valuations above their historical averages. everybody is fired up on the stocks and look what happens when a little bit of bad news come out of these things. to me this feels like the late stages of, you know, the second tech 2.0 rally. >> part of it is i think that google and facebook are going head to head like a couple of kids in the sand lot that they want to buy all of these new companies before they get public. they're racing to put a stake in the ground and get these names. it's a little bit more like what happened in the cloud space when we had hp and dell trying to buy all these names. it worked out great if you owned those names. but the point is the companies being bought are relatively small, except for whatsapp. >> this brings you to the original

lot of services and obviously now part of the reason why ali baba is not able to list this i.p.o.n the hong kong stock exchange is because the share voting structure apparently differs from normal rules so when i ask you what are the mechanics of this deal and how are the what does this term the term variable interest rates are you know how do they relate to this alibaba i.p.o. well you know i look at it sort of like in mexico as an example we can invest in mexican property within a certain range of the coast or of the border to the united states where you can't know you can have foreign or ok so what you have to do is either set up a trust or you have to invest in a corporation a mexican corporation that invests in those those residential property units so this is similar sort of thing in china they have a they have a band basically a lot of have been foreigners own too much of a percentage of certain vehicles so they're willing to do it is that normal chinese investors can go straight in but then foreign investors invest in this v. e. and then that the lead takes a certain share

. >> all right, to ali baba. they have the filing? >> the filing.hing we have talked about going into this filing, how hot this stock is going to be. who would not want this? but now they will talk about what are the risks? now it has to do with the governance structure of this deal, right? insiders with a large amount of control of what goes on in the company. put that aside. we have to look at how much exposure does ali baba have two mobile and what kind of competition is there in china? remember, alibaba is not the only large company in china. they have backed a competitor in china. when the filing comes, they will talk about what are the risks in this one here? >> i have a few. the benefit is they have access to the chinese market, which everyone wants to be in. the risk is they are an agent of chinese surveillance. that will impact their ability to spread their model elsewhere in the world. there are parallels on the u.s. side. every government where alibaba tries to expand in the market, they will ask questions. >> they will ask questions, but

>> with respect ali baba? >> or in general? >> you always hear a lot of numbers. >> we know you can't have a site visit because they are not letting you off the plane. [laughter] >> i do know ali baba is a real business, i will confirm that. but for people in china to commit fraud in the capital markets is completely asymmetrical trade. nobody has been materially, meaningfully punished for defrauding u.s. investors. as an investor you have to ask yourself, why wouldn't they lie to make the numbers better? >> in general should there be fear for u.s. investors looking at any chinese company because they cannot trust the numbers? >> i think they should trade at a discount to their western peers, because of the issues with the numbers and also with these internet companies you don't own the underlying company. you own a derivative of the company. beyond the scope of this show, but that is something passionately > -- >> they won't understand vie? is that what you are saying? i'm just kidding. more than whats they should be selling f

we had previously sold part of our stake in ali baba. we returned some of those proceeds to shareholders. we did make some smart investments in the company in terms of the thing out talent, building out technology. does everything from online payments to streaming, e-commerce. according to figures, alibaba has generated about $8 billion in revenue last year. a 66% increase from 2012. joining us is ryan blair, michael chase took one of his companies public 10 years ago sue knows about bringing companies to the market. ipos.slie covers let's go in-house. going to really raise 20 billion? >> it looks that way. it's according to analysts comprised by bloomberg. we are told they are about to bel a 12% stake. it could upwards of $20 billion. >> who has doubts? >> no doubts. i don't think there are a lot of doubts about what alibaba can do. this is a first glimpse into chinese e-commerce, and we are getting a glimpse of how big it is, but there is still a long way to go. one of the best indications is the mobile side. they have five hundred mil

game on ali baba. technology. microsoft tries to get ahead of the game. the stock is up. a taxi for 2017. approval for virgin pic space credit. millions of lives lost. the last day of may. the friday addition of "varney & company" is about to begin. ♪ stuart: look at the big board. two good rallies away from 17,000. another record for the s&p. as for the 10 year treasury yield, yes, it has moved up a little bit from yesterday. last barometer for you. the price of gold still going down. there are some big names that are moving today. charles payne reason pics. apple up 12%. netflix up 18%. that is this month. charles, you have 10 seconds. charles: making money with charles payne. stuart: what is it called again? charles: making money with charles payne. stuart: that is a good friday morning introduction. charles: people taking profits on netflix. stuart: there is more news on apple. the stock is up today, by the way. nicole: goldman sachs is back. it is a buy rating. you see the stock up 1%. a new price target. up from 635. that is certainly helping things along. go charle

we have sold part of our stake in ali baba. we returned some of those row seats to shareholders. we did make some smart investment in the company in terms of building out talent and technology and platforms like tumblr. whoe turn to cory johnson is with me in the studio as well as paul sweeney in new york. she could not get very specific. you basically lead out every possible option. what do you make of the response? >> we were previewing her talk. i said to mark crumpton who is theoring the show that question of what is yahoo! comes up. questions a relevant for this company. it has over struggle between being very involved in search and being a technology company. she handles that question artfully so. efferents a competitive set when it comes to subscriptions in the market. the alibaba state, she wouldn't talk exactly how she would spend that money. yahoo! to havere a clear method of what it is. >> paul, there are a lot of questions of what yahoo! is the bat -- about. the share price of alibaba, what do you think of it? >> many investors view yahoo! as a technology driven media

earnings, we get insight into aly baba. it looks like it has accelerated. i think you should be well received. >> daniel rosensweig, thank you as always for joining us on the show. former burberry ceo has officially joined apple as a new head of retail. we will discuss her new role. you can watch us streaming on your tablet, phone, bloomberg.com, apple tv, and amazon fire. ♪ >> welcome back to bloomberg west. apple officially welcomed former burberry ceo, angela ahrendts, to the executive ranks. retail.s will she have better luck? news managing editor joins us from new york. what did you think angela ahrendts brings to apple? they do not often higher somebody from the outside for a job this high profile. >> incidentally, not a lot of women at that level. that was an important breakthrough. what she brings its high-end customers back to burglary when it had lost a lot of its financial. it had become too commonplace. she brought back the high-end customer people and made it more of a luxury brand. that is an important thing to be done at apple right now. she

what was it back in 2002 you saw with ali baba? -- alibaba?ck had a relationship with one of our founders and you have to go back to the moment in time. a very big vision for what he wanted to create over a 30 year time frame and if you read the perspective, they have a 100 year vision for the country. >> it has not all been smooth sailing. he took some public, and now going out again. theyou think those bumps in road are behind them? >> every company goes through challenges. they did go public. now what you have is the group going public. it did have a $10 billion market cap. public.group is going like every entrepreneur, bumps in the road make you stronger. not breaking does down how each of the businesses are doing. overall sales and net income are strong but we do not know how each individual is doing, which could lead us to believe growth could be slowing down at one or the other. what do you know? >> they do not break it down. a lot of companies do not break it down. there are five or 6 million merchants. very large, very successful plat

there was not a lot of standards in china, ali baba will come out with $250 valuation.e what amazon is. we are making a bid too much, this is an incredible co. but all the incredible buys are what we are talking about. stuart: when you sound skeptical. clean, x box and p s 4 are helping game stop's bottom line. the gaining market had all gone to download. >> a lot of gamers said we want the physical copies of these discs because we want to play them in three days which a lot of gamers do and they hand them back out to someone else to play them and the prius and the market is enormous so game stop is not going to let this lie and a lot of gamers were excited that microsoft walked this back. it will be digital restrictions. they walked it back and deegan hardware sales doing really well and turning a nice profit for sony for the first time not taking a loss. stuart: game stop is the top performer of 500 stocks in the s&p 500. new home sales down a little year over year, a ton of new homes available for purchase, that is the inventory level. that it all up, is that a black

the investing community has probably been less patient with ali baba.hey're putting their house in order. my understanding it may file as early as next week. i think it will be extremely well received, assuming it continues to perform. yahoo's earnings always give insight into alibaba. alibaba looks like it has accelerated its growth on a massive scale. dan rosensweig, thank you for joining us on the show. has formallyry ceo joined apple as the head of retail. we will discuss her new role next. watch a streaming on your tablet, phone, bloomberg.com, apple tv, and amazon fire. ♪ ♪ >> welcome back to "bloomberg west." i'm emily chang. apple welcomed the former burberry ceo. john broward left after six months on the job. first of all, tom, what do you think angela ahrendts brings to apple? they do not often hire somebody from outside the job. >> not a lot of women at that level at apple. that was a really important breakthrough with angela. she brought high-end customers back to burberry at a time that it had lost a lot of its --. it had become too commonp

how has his zany personality helped push ali baba to the top?io, he is -- alibaba launched in 1990 he consulted for the company. cory is here as well. you met him back in 1999 when he was just starting this thing. what was he like? questions like that. he was singing. no, he wasn't. he leaped out at you. not a tall man, but a wacky and larger than life image. you get a palpable sense he is something different in chinese and english. inkling hen, any could take the company this far? to be one of the biggest technology companies in the world? withsmall apartment toothbrushes with a number of employees. you can see they were spending a lot of time there, living around the apartment and working around the clock buried there was already a vision. inwas before softbank came and goldman came in. even then, it was like, why are these people so interested in the company? talk is a vision he would and make it very comfortable but also feel he is something special. >> what is the fascination with the u.s.? is not true for a lot of the tech entrepreneurs in