cory: exactly.oung, the only asian on the board, the only woman on the board, she also has not been a great executive leader. avon's results under her tenure when all that great. sarah: they talk about expending recruiting, but it's another thing to keep and retain people who can help make it a diverse organization and help change the culture. i have spoken to former apple employees who say as diverse as apple wants to be, they say that they care, it's another thing to say, "this person can talk at a meeting just as much as you can," to really change the dynamic of the company. cory: twitter criticized for not having a woman on the board for a long time, it brings in a header diversity from apple who is also a white dude. sarah: they do have a woman on the board now. they had a top engineer leave who was black, and said that it's not a good place to be a black engineer. cory: thank you very much. facebook also has a new artificial intelligence system, but it has proven to be a little more artificial

cory booker: yeah, two peas in a pod. [laughter] cory booker: exactly. we came together in a way that the houston not. --house did not. we came up with a bill to fund positive train control, which will get more resources to my area, which is the busiest in rail transport, the northeast corner. it is a good compromise that move things forward. it made no headlines. host: this is a shockingly optimistic discussion. i'm concerned. [laughter] host: i have to do a little bit of 2016 presidential politics. cory booker: we will not run together. [laughter] mike lee: if we did, it would be lee-booker. host: three of your colleagues are running for president. mike lee: i'm the only republican senator not running for president. [laughter] host: what is going to happen? is there any chance donald trump is your nominee? mike lee: who knows? he's doing really well in the polls. it is an understatement to say he is an unconventional republican candidate. i still think that you will see surging from the other candidates. i think rubio has begun a surge. it is reasonabl

cory: dallas alex chung, the ceo. so much for your time. -- will benes questioned by the u.k. government on february 11. she says she is investigating the deal. this comes days after google in -- to pay $185 billion 185 million dollars in back taxes. the search giant makes billions of dollars in year and it should be paying more. you would have thought that more tax was it good thing for the public. this inflamed the international debate because $185 million is too low. thatave to remember research engine has been criticized for years for pain just they fraction of the taxes in the u.k., even corporation taxes down to financial engineering. now the european union has gotten involved with the chief saying she is ready to investigate a deal if there are complaints. italy has also got in on the act and will look at them for evading taxes. those are back from 2009-2013. sue google now finds itself ensnared snared in the same sprawling investigation like amazon, apple and starbucks. they may also find themselves caught up

cory: do you think they wanted that? on good knowledge that someone put in number on the whiteboard about where the stock will open at this morning. and they are wildly off all the time. >> the surprise here was that -- the program they have that is gaining traction. it is supposed to be in big profit driver going forward. clearly the whole prime thing has not reached that scale yet. cory: i've done these live shots for them on cyber monday and it has been an amazing thing to see when you get a sense of what the shipping and packing logistics are. it is hard to imagine. and then when they asked the prime now service and the delivery time -- the delivery time is the biggest hook for amazon prime members. what is going to be the impact on margins going forward? there are a lot of content things that will come up going forward. they are media revenue growth is not star. it is more towards investments. on investments, they used evidence low. cory: thank you very much. that does it for this edition of bloomberg west. we have

cory johnson is standing by with tom-tom u.s. president. cory: thank you.om-tom is an interesting company. you are making personal navigation devices. it puts you in a position to serve up maps to uber and apple. talk to me about what happened there and how the business pivoted. >> one of the best decisions , as we really wanted to take our destiny into our own hands and control the business, one piece was missing. made a bold our ceo move to acquire the map companies -- cory: it seems crazy at the time, so expensive. tex exactly. >> exactly. >> exactly. this is exactly what we are seeing now. content and the ability to control the content and invest in the content is giving tom-tom , what we are seeing with the development of highly automated it isg technology, increasingly more important around the world. having that ability to build on that asset is a great opportunity. cory: what are you doing now? >> it is about investing in the technology. recently, we just unveiled a real-time map. the ability to update maps little by little as the reality is changin

cory: you mentioned 6%.oomberg terminal, in the month of a 0%ry there was probability of a hike fed but now there is an 8% chance. matt: your very own than a white. cory: a 6% probability of a cut? lisa: that has come down, it used to be a percent. brendan: what is fascinating to me is that all central banks continue to predict inflation that doesn't happen. model showed inflation magically will get back up to the target of 2%, the arbitrary target, it will happen in a year. why? is there will be a return and it will be fine but that is not what we are seeing. i'm sorry, i am tired of hearing that it is oil. when you strip out oil, there isn't core inflation either. some officials have come out recently and said that they don't have a clear understanding of what actually causes inflation and what the dynamics of over inflation or. corey is exasperated. cory: gdp growth and inflation has been consistent. that is a fed prediction. that investorsis cleaned their confidence from central banks for years. he looke

cory: thank you. tom-tom is an interesting company. first heard of them 10 years ago when you were making personal business devices. you are making personal navigation devices. it puts you in a position to serve up maps to uber and apple. talk to me about what happened there and how the business pivoted. >> well, i think for the business, one of the best decisions that was made is to actually -- as we real wanted to take our destiny into our own hands and control the business, one piece was missing. at the time, our ceo made a bold move to acquire the map companies -- acquisition. cory: it seems crazy at the time, so expensive. >> exactly. this is exactly what we are seeing now. content and the ability to control the content and invest in the content is giving tomtom, what we're seeing with the development of highly automated driving technology, it is increasingly more important around the world. so having that able to build on that asset is a great opportunity for us. cory: what are you doing now? >> it is about investing in the techn

during his 10 years as a senior pastor in newton, cory stout has preached and practiced a message of helping others. cory stout, community heights alliance church pastor: "i'm not perfect, but i've certainly come to this place in my life where i've experienced forgiveness from god and know that he know invites me to extend that to others." around 8:40 wednesday night, stout was leaving his church, when he saw a car had slid off the icy road and was stuck in a snowbank. natural sound of car driving by cory stout, community heights alliance church pastor: "probably standing right here, kind of shoveling her out and i didn't see the other car coming, but it came down the hill and hit the car that i was shoveling out and that car hit me, it probably threw me back into the snow." an alleged drunk driver, 19 year old rey khalil started the chain reaction, badly injuring stout. cory stout, community heights alliance church pastor: "i'm on my hands and my knees and i'm bleeding and there's an accident and i can feel my head, and i can tell there's blood." his injuries afterwards were extensi

cory: autonomous cars, cars, cars, cars. from ces was stocks like nvidia because the thought was they would be the beneficiaries of what was going on inside the car. what we have seen this week, those stocks have sold off like a last year's fad. emily: i am more excited about the self-driving cars that i was two weeks ago. >> all of our kids will never have to learn how to drive if they do not want to. i do not know if it happens in five years or 10 years, but we have seen some demos. it is absolutely incredible. my partner's involvement with tesla, whoever thought you could auto upgrade a car to be self-driving? emily: we were discussing this, though, nobody actually has a self-driving car that is road ready, legal. >> tesla has gotten there in certain variations. they have scaled it back a little bit. there is no are you can get into that is legal and will drive you around, though google is trying. cory: they put a car on the road that was dangerous for people to drive. emily: i do want to move on to gopro. gopro going thr

cory: fitness not just for athletes?yday people, and for athletes, but we are primarily focused on athletes today but we see huge eventual in addressing chronic disease conditions in the future. cory: i have to tell the story -- you and i went for a walk a few years ago, locking interview, and both of us were at least 20 pounds -- james: we were a little bit out of shape, yeah. i'm definitely an avid user and i use our product to keep myself in shape. cory: how do you manage growing your business in the calendar year? james: look, as we said on the last earnings call, we have a whole bunch of products we will be launching throughout 2016. i'm excited about the new products. cory: specifically, do you think -- what is your limitation to where you want to go? james: look, the mission of the company is helping people reach their health goals and it is that relentless focus that has helped us succeed as a company. how manyis amazing watches there are pitch talking to investors last night, they said everyone has virtual reali

now is cory. sure if you say them in my element in las vegas because of electronics or because it is a vegas. yes, i even my element. it certainly comes to the top of my mind. i'm really curious about what your focus is. you have a handful of big things going on but you gave a new number about playstation sales. it's kind of mind-boggling into what is early in the new console. 35.9 million units worldwide as of the beginning of this month and it continues to be among all the playstation's the fastest-growing in terms of sales. the currenter words playstation has run faster than any playstation in the history? >> correct. this is our fourth iteration of the playstation platform. is the fastest-growing in terms of the number of units going out the door cumulatively. cory: what are the ramifications? when i think of again developers and how they suddenly got a bigger market because the adoption curve git steeper. >> the more opportunity there is room publishers and developers to have the content be p

here with me in san francisco is cory johnson. what is happening? cory: gopro is not going anywhere. revenue is shrinking. this is supposed to be a growth stock. some analysts said this could be the next apple. this is -- here is what has happened. revenue growth for the consistent and the guidance was going to be even higher. what we have seen, suddenly, the company says, fourth quarter, our big quarter, down 31% year over year. layoffs coming. the ceo sold his shares before any other insiders could. he donated them to a charity that he controls. emily: many companies have been through very challenging times. apple, under steve jobs, went through a lot of difficulties. did something go wrong with gopro's business model? >> this year, there were two challenges. there was not a product refresh. the fears and concerns about market size for their hardware product was always there. the hope was that the runway is long enough to to leverage the brand. emily: they tried to transform themselves into a media company. what do you make of how gopro navigated

cory johnson -- cory: i will be honest just this one time. emily: thanks for watching.this edition of "bloomberg west." do not miss our special coverage of president obama's final state of the union address tuesday, 9:00 p.m. eastern. ♪ >> imagine wiping away the appearance of crepey skin. >> on your arms. >> on your legs. >> even your neck. >> what would your reaction be? >> can i look now? x yes. >> are you serious? oh my goodness. announcer 1: and now, a paid presentation for crepe erase.

cory the cat has a new home. cory was put up for adoption last friday, posting this picture on facebook. and it didn't take long for people to think cory looked bike the actor, adam renn. a woman that lives 50-miles away fell in love with cory and -- >> i was waiting for the side by side. >> a little bit. it's the expression. >> coming up next, wahlberg brothers are coming to florida. when the new wahlberg's restaurant will be opening. try out his new skis in a proportions. developing blizzard beginning states. we have the latest on the path

what stuck out to you, cory? cory: amazon web services is changing the way so many companies work. the results we saw from amazon this week, it pushed the stock down to levels all the way back to last wednesday. the profitability for amazon is interesting. it is only 3% operating profits. i think that nonetheless it shows that they will continue to run this business to be just profitable enough to generate boatloads of free capital they can reinvest in things and invent things like amazon web services. it is a fantastic business for amazon, but transforming the way the world computes. emily: microsoft and facebook had a killer week. what do you make of these major shifts that seem to be happening? is this short or long-term? paul: so, i hate hedging answers, but i will be forced a little bit. apple, this is a company specific issue. this air pocket with respect to product release, and the difficulty of forcing people to upgrade in lockstep to both microsoft and amazon getting pushed higher, and facebook to a degree on what is happening with respect to migration to cloud. that's pro

cory, you talked to the ceo earlier. cory: they see this as change. i think the slowdown of pcs is even more aggressive than they expected. they positioned themselves to benefit as the changes happened, but also to go forward with the data center. listen to what stacy smith had to say about the big changes they went through this year. >> it was a strong finish to the year. when you get under the hood, you can really see the transformation. we offset some weakness in the pc segment of the market. that is transformative for us. emily: but what about the warning about next quarter? cory: i think it is more about setting expectations in a certain place. they are going through big transitions in terms of new plants, new facilities. there was a lot of talk on the conference call about in the changes are going to happen and what they will mean. that has an effect on gross margins. expectations got ahead of the analysts. these guys are talking gross margins of about 63% for the year, which would be good for these guys historically. they are sometimes below 60

the spring and cory johnson -- let's bring in cory johnson.both worried about amazon in a way, right? cory: absolutely. netflix is also worried about his streaming service. cory: you're absolutely right. that is the biggest competitive pressure from both of them. netflix might also feel pressure from hbo, showtime, you name it. that is what we will be listening for on the conference call. the most important number for me is the commitment to contingency ve for the future. i have promises of payments, but they do not see how th -- say how big. they have cash flow growth, they should be able to pay those bills. but they all over $10 million to these commitments. the reason that the costs are going up so much because of amazon, showtime, hbo, all of that original programming all theseng on platforms. the reason that they are most ofd now is because their geographic expansion has already happened. now it is about adding customers. you need programming to bring those customers in, and the marketing dollars. those are the things to watch for. david:

cory johnson is live with the ceo of qualcomm. cory: you are right.ars are a big focus this year. -- joining me is the ceo of qualcomm. >> if you look at audi we have had a long relationship with the car industry. over 10 years we have shipped over 340 million chips. different chips. it started off by getting the car connected. is accelerating not only through the higher speeds of more technology. the audi partnership is not just taking the modem, the part that connects the car, but the parts of the car processing information and the way it really interfaces with the consumer. cory: this is an additional socket? >> it is but it is more technology in the car. the cars you smartphone driving experience. a smartphone on wheels. now they are observing that absorbing more technology. cory: do you see more market share for you in this arena? >> the automobile for us to be a growth factor. our blend of technologies we can provide in smartphone type factors is really going to be important to the car manufacturing. car manufacturers are becoming much like the

emily: cory johnson, thank you so much. return, how many calories do you burn on your commute? we take a look at the new transit app hitting l.a. more of "bloomberg west," next. ♪ emily: spotify wants to borrow $500 million from investors. the loan could be exchanged for stocks when the company goes public. the swedish company has raised more than $1 billion since it was founded nine years ago. staying in europe, this week saw more challenges to uber's push in france. a paris court ordering the company to pay $1.3 million to cabdrivers. striking french taxi drivers blocked access to airports and set fires to tires on tuesday. the company has agreed to deactivate drivers for specific reasons. the city of l.a. has a new plan to help residents get around. the go l.a. at developed by xerox brings together transport options. allowing residents to compare prices to how many calories they will burn on the way to their destination. here to tell us more is chief technology officer from xerox. uber and lyft are sworn enemies. how did

cory: all politicians keep their promises. [laughter] cory: part of this is about guidance.f the thing that apple does is over order. the supply for the company often sees a pullback after the first hascorridor when a product shipped, particularly now when they are releasing products in more companies. they use to roll up haddix in companies over time. now, they are already launching in europe and china and in the u.s. on day one. that results in a bigger buildup of part inventory earlier on and a pullback later on 14 weeks in. that is what we will see. other headline news is that amnesty international is --ing the chinese companies wind up in apple's products could be using child labor. how seriously does apple deal with these claims? cook, ther tim company has really done a lot of talking about what is happening and where their products are source. the way they generate power and from materials. many companies are talking of this and apple has been very forthright on this issue. scarlet: tim cook has tried to take the lead when addressing these concerns. cory johnson, than

mark: cory: -- where are you -- cory: where are you guys in terms of market share?number one in commercial space. we are at about 23%. be there?ok to >> we are ok, but more importantly we want to lead in that segment. cory: there have been times in the past of hp in which the company has gone after market share at the stake of profits. the sake of profits. >> we are going after profitable, healthy businesses. it is the focus for where we see those pockets of good opportunity and really, going to focus on the innovation that drives us. cory: not to get to carrot top with the props, but what is this with wearables? >> we started this one year ago and it really was a focus on what we believed was the best way to do wearables. subtles time and is very notifications. motion is done by them, but we do all the engineering work behind it. senate, theic communication, the cloud, that's all us. we taken that and made it scalable. we can do that with large fashion brands to create unique watches. so that it could be like a phone call comes in, a text message from your wife, yo

we have much more here with cory johnson. cory: cory johnson and carol massar here.ting story at ces with an doersken is the ceo of one wheel. tell us what happened. got wind that this company from china was going to exhibit a product that we believe infringes on the design and utility patents we have for our one wheel products. lot like thes a product that you have been out in the market with. >> when you look at our design patent drawings, the designs are very similar. cory: so what happened? >> we sent a demand letter, our letters to the firm, asking that they not exhibit at ces. because of the potential infringement. they came and exhibited anyway. so we filed for a temporary restraining order against the exhibition and sale of this product, as is our right, because of the intellectual property we have. that was approved quickly. cesaunched our product at in 2014, so we know what a difference those days can make in the arc of a company. i think the courts understood that, too. they had a hearing and approved this emergency restraining order. the people who enforc

perhaps by cory johnson. he was on bloomberg television recently. take a listen to what he had to say. nick: when we sit down with investors and they understand our vision, it becomes a question of are we the ones to execute? are we the ones to realize that vision? more often than not, people believe that we are our -- that we are. the stock will, and the stock will come down. emily: i did that interview in march of last year and i asked him about the competition. he said, i wake up every morning scared of the competition. i would not be doing my job if i didn't. >> with any kind of hardware, we have always seen this happen. even sony cameras. if you just look at what he just said, this long-term vision and product cycle, it needs to be faster. the market is moving much faster. they are not moving as fast as they should be. emily: what about the possibility of a sale? apple could be a possible buyer. is that realistic? than 50gopro has fewer patents. apple has just about all of the patents that could allow them to make their own gopro if they wanted

cory johnson and david kirkpatrick.: coming up, we will hear more from the apple cfo on his quote, saying he sees softness in china. we will be back. ♪ scarlet: apple just coming out with its earnings, the company forecasting a filter climb for this quarter for the first time in more than a decade. last quarter, profit beat estimates while sales missed. you want to check in with emily chang, who spoke with the cfo about the results. she joins us now from san francisco to give us a synopsis of what he said. emily: just got off the phone overall,cfo, and record epf, record sales, record iphone sales, record watch sales. those are numbers that any company would love, but there are some comments about china that may cause a little bit of concern. i want to read what he said. he also said that sales of the iphone in mainland china are better than ever, up 18%. he said specifically they continue to see strong business in china, very strong interest in our product, all-time records for iphones in the first weeks of january. ho

cory: they are just lighting it up.ess, you can actually write computer programs that will turn them off and turn them on, which creates the effect of movements. right.at's it's using all white lights, so it's monochrome, 255 levels of brightness per led. i did all my own custom software to create sequences of patterns. carol: this was originally your idea to do this. how important is it to do art projects, if you will come art installations on such a grand scale exists -- like this? she is saying is, doing an art project in such a big scale, it's difficult to deal with. ben: we had great support. there's something about leo's interpretation of how you create a canvas of light out of the bay bridge. his solution inspired people up and down the board, from bureaucrats inside and they really power into the challenge. cory: when you saw with the art was supposed to do, i suppose to have this sense of movement. i've seen some crazy stuff. i feel like i even saw space invaders happening. but a real sense of movements which i

cory: vc's have pulled back a lot. of venture capitalists just walked away in the fourth quarter. unicorn,menon of the while we seem like we are hearing about it more, it's actually that vc investments were down in the fourth quarter. ,etty: thank you, cory johnson and also thank you to victor anthony, who covers the tech sector. more on this wild market data. there's no other way to describe it today. here's a look at the s&p 500 today. ♪ betty: this is a "bloomberg markets" special report. a quick check on how the markets are trading right now as we have seen a climb back from our lows of the session. dow is down still 199 points, and the s&p is down still as well, but we have pretty much cut our losses and half. health care is an index that has turned in the green, and speaking of the green, look at the nasdaq -- it is a little bit off of the highs it hit a moment ago, but it is struggling to stay in positive territory. it's time for a look at the biggest business stories in the news right now. glencore has shortlis

cory johnson -- i will be honest just this one time. emily: thanks for watching.is edition of "bloomberg west." do not miss our special coverage of president obama's final state of the union address tuesday, 9:00 p.m. eastern. ♪ ♪ from our studios in new york city, this is "charlie rose." charlie: in nine months, the country will elect the 45th president of the united dates. national security is dominating the campaign in a way we have seldom seen. many challenges are bound to the president's successor. mike morel has served as cia's deputy and acting director. he has served several presidential and vice president candidates. he has written a fascinating new book called "the great war of our time."

i'm meteorologist cory reppenhagen. >> warm up, thanks, cory. >>> faced with a big budget short falls, denver public schools is prepared to cut a lot of jobs. rrssell haythorn is live, this is related to the housing boom in denver. demographics, and the housing boom in denver is actually forcing out low-income families. school districts get more money per pupil for students who are on free and reduced lunches, so as a result, d approximate, s forced d -- dps forced to make bold moves. denver painting a pretty picture of next year's budget. >> we're projected to receive less funding in 201662017, than we did 7 years ago. and 7 years ago, colorado was near the bottom in per pupil funding. >>>eporter: these issues start with state lawmakers. >> those are the people who are in charge of the purse strings. >>reporter: none of the positions being eliminated are teachers or principals. all of them work here at district headquarters in downtown denver. total, 42 are currently vacant and will not be filled. 132 are currently filled. and 74 of those are teacher coachers and support staff fortea

cory smith/ executive director. blind center of nevada we have all kinds of people who say, "i may be blind, but i'm not going to let that stop me from living and doing great things." ((sherry swensk)) the electronics recycling program here at the blind center of nevada has become one of the best in the state... approved by the e-p-a. it also gives the community an eco-friendly option for disposing of their used or outdated electronics. tracy smith/technical manager we can tell you where your computer is going to end up. we do not give our recycled goods to anyone we cannot follow the chain all the way to its final resting place. ((sherry swensk)) so how did a non-profit devoted to improving the quality of life for the visually impaired get into the business of recycling, waste? cory nelson/executive director the state of nevada approached us about 8 or 9 years ago and said, "look we've got all these electronics, if you can find a way to get rid of them in a responsible way we'd love to work with you." ((sherry swen

cory: a year from now, what do you want to look back and say you have proven?re spending the next 12 months taking what are currently prototyped concepts and converting them to something production ready in a real-world environment. last week, nasa announced a third company to split a 14 billion dollar package. it is called sierra nevada corporation, and it is co-owned by a husband and wife team. they are trying to master landing technology that would allow spacecraft to be reused. their approach is called the dream chaser. the ceo joined me for an exclusive conversation to explain. >> i think the dream chaser is going to take the whole commercial space initiative to the next level. everything today is about capsules, the last 50 something years. whether it is a manned or unmanned version of the space vehicles. emily: the dream chaser operates a differently than the spacex dragon. it rides on top of a rocket and then lands like a commercial airplane. spacex had another failed attempt over the weekend. what you take away from that? >> reusability is extremely im

all that doesn't matter to cory stout he's is just grateful to be alive to tell about it 560904 - he face was bandaged up and it looked like he had been through a rocky movie or something - amy and that's the theme he plans to take to the pulpit on sunday. cory says before the crash he had a different sermon in mind but says what happened to him this week is teachable moment decorah... cresco... charles city... and mason city... senator ted cruz is visiting them all today... the republican presidential candidate started the day in mason city... there he criticized president obama's executive orders aimed at stopping gun violence. cruz says the white house is more concerned about attacking the second amendment than attacking isis. cruz is in a dead-heat in iowa with donald trump.. but says he's tired of being asked about his main opponent. presidential candidate "i feel confident that i'm never going to have a plane with my name painted on it. i'm not going to worry about any of the other candidates, i like them all i like every one of the other republicans senator marco rubio... he's

emily: cory johnson trying to pin armstrong down at ces. paul, what do you think?ou think aol and yahoo! make sense, or should verizon not waste its time or money there? i speak to a lot of the yahoo! investors, and they would love for anybody to take them out of their misery. stocks are down over the last 12 months. their financing plans for alibaba had kind of fallen by the wayside. uncertaintyot of for yahoo! shareholders. i think to the extent that verizon has an interest in their mobile video business, their ad tech business, which is one of the primary reasons they bought aol, you can make a similar argument for yahoo!. as jonathan mentioned, a bigger audience and richard content -- richer content. i think people are scratching their head, they don't see any improvement in the core business. i think the honeymoon is over for marissa mayer. , theith the asian access monetization is uncertain. -- assets, the monetization is uncertain. guest: i totally see why a yahoo! shareholder would be delighted to be taken up by anybody at a premium, particularly with a nic

cory: everybody is here but you including tim armstrong.in las vegas but the sun is up which means people are playing cards last night. really interesting things with you and the verizon acquisition . >> our goal has been to be the largest technology media company in the world and we have augmented that to focus on mobile the verizon accusation -- acquisition. we brought millennial media which is one of the largest public mobile media companies. we went from 200 million consumers last year to ending the year with about 700 million. it's a huge scale change but we have bigger goals for 2020. we want to get to 10 million craters on our platform and 20 million dollars in revenue. cory: it's an interesting blend and serving apps beyond that content and the microsoft deal exemplifies that. said tof the companies me last night you guys are the only hybrid company you are in mobile and technology and content. that has been our long-term goal. re-think the combination of culture and code and where it meets technology and what will be 6 billion peop

let's ask cory johnson about what is going on here. what is happening with gopro?nk that would be an awesome gopro. flying off rocks. is a mess ofding gopro's own making. they set guidance quite high for a quarter they could not achieve. they denied the impact of the competition, which is surely a lot worse than what they told investors it was going to be. afterhe results came up the close today, it was not just .elow estimates it was not even just a lot lower. it was lower than a previous year. it is a business that is shrinking. it looks like what it has been all along it another consumer electronics company. company, ave media not a maker of drones. they have talked about drones and having a media company. they have not been able to fulfill the promises. even if they do, they'll come to a crowded market where the markets are increasingly low. at the consumer electronics show, it seemed like everyone had a drone. unique that they could launch other higher-margin businesses on it, specifically media. it seemed like it was always a fantasy. we have not seen the evi

stout 560904 - he face was bandaged up stout cory stout was assisting a motorist.. stuck in a snowbank... when he driver. the accident sent stout to the on his face. police say 19-year-old rey khalil was behind the wheel of the car that hit stout. he's charged with o-w-i. but rather than focus on that... stout is looking ahead to his sermon on sunday. the theme: forgiveness. 540802 - i dont want know whats going on in his life, what forms of pain hes enduring or what would cause him to turn to alcohol but our prayer is that he would turn from that and come to see that there is hope - cory stout khalil has bonded out of jail. no court hearing date is set. did a clive toddler die at the hands of her mother's boyfriend... or was her death a tragic accident? that's what jurors will have to decide in the trial of joe lopez. lopez is charged with first degree murder and child endangerment. ruby alvarez was rushed to the hospital with a skull fracture and watching the child, claims she fell out of the high chair.. prosecutors say that explanation doesn't add up. sot 1: "th

cory johnson is live in san francisco. what most people will be looking at is the success of their prime service. buried alert was on yesterday saying it was a genius move creating prime. is that what most are paying attention to? cory: yes and now, the success of prime will be the biggest part of their revenue. that can give them the opportunity to profit or even lose. they don't give us a ton of details about the financial metrics around prime. we get some good information about shipping, but we don't know what percentage of orders come from prime, new prime customers. we do not even have the hard numbers on how many subscribers ,here are, or even the cohorts those that are a few years old, if they spend more or less over time. they don't tell us any of that. so we will have to define from their comments the responsibility that prime has on the revenue numbers. what will be much more important for the quarter, in terms of thinking about the future of amazon, is looking at their web services business. these are numbers th

and let's go back. >> thanks, cory. cdot is out now trying to keep the roads safe and denver7 reporter jaclyn allen is live, jaclyn, cdot is telling you that they started snow shifts at 3:00 this morning? >>reporter: well, there isn't a whole lot that has accumulated this is i-25 at arapahoe and it is smooth sailing right now, the traffic is thick here because it's rush hour, it is moving smoothly. here's the pavement here, unlike these storms earlier that left these massive amounts of snow, any flurries we've seen today, this pavement is warm enough that it's melting it off. it ma by a different story -- may by different story tonight and in the morning commute. this afternoon, we went out to the denver public works, maintenance yard, to take a look at what they were doing, they have a lot of plows and deicing trucks, getting ready to go, get thing ready for a long night. and cdot says it will have about 100 plows, working around the clock here on state highways until l the storm passes. the pavement is clear, possibly

cory: in 13 weeks. alix: that's a lot of money that facebook made. scarlet: just a correction, monthly active users 1.5 9 billion, mobile is 1.4 billion. alix: you are mentioning something? cory: those numbers are fantastic. one of the numbers that's important is research and development. that's been the biggest things when it -- that's been the biggest thing when it comes to operating earnings. they've spent an incredible amount of money on redevelopment. including stock compensation spent on.3 billion free cash flow -- sorry, r&d. spending $100 million every week on research and development, which is an incredible thing. that is 22.5% of sales. as much as one third of revenues on r&d, 22.5%. that's a decrease, but nowhere near the lower levels we saw when you're ago. they were spending 10% of sales and now they are spending 23% on sales on r&d, which they of course have been able to turn into business and create fantastic revenues and free cash flow. so, investing big-time at facebook. so much, coryu johnson. much more to come on facebook. joe: bac

cory is shaking his cory: they are not a company that does transformative acquisitions like that. emily: all right. thank you all. turning to the broader markets another day of big swings for stocks rallying after monday selloff. nasdaq closed near session highs. , andring movements consumer confidence for january came in at a three-month high. t-mobile propelling the sector with its 4% rise. looking at the hard drive space, both rallied more than 5%. they declined to comment. in video streaming netflix fell for a fifth day extending losses after it crossed it's moving average. this is his longest losing streak since september. it has been down 4% but clawback from the bottom. a no doubt impacted tesla. they lowered expectations because of inability to deliver 4000 model x suv's. down 1.5 percent. facebook shares were up a third of a percent. now to the him where -- m wear. cfo.ompany named zane roe it is part of a restructuring plan that bloomberg news reported on last week. struggling.en at the beginning of the -- once theer transaction closes they will be combined and remain a

cory: how many sony games?ant to pin you down, but it is my job. >> others will be built on the ground up. it is hard to pin down. usually, just a round number, usually first quarter titles being about 20%, 25% of our overall generation. give or take. just based on historical numbers. >> on the self-driving front, talk about the pace of it. you guys put a lot of effort into that. where do you see that developing? what are the speed bumps along the way? >> that is what we call our smart mobility plan. a holistic plan on seeing how people want to live their lives. they want to stay connected. they want to be mobile. in the case of autonomous vehicles, we want to show that we are tripling our autonomous vehicle fleet from 10 cars to 30 cars. we had been at this for 10 years. what you are seeing is the technology, the camera technology, even the algorithms, the software algorithms that control the brain of the car. they are moving very, very fast. the thing that will be an inhibitor, which is why we are working wit

cory: that is cool. scarlet: this is a great one.urredhe moves immediately after earnings reports. this latest one is the exception. whenwas on january 5 netflix announced its global expansion. options trading for next a gain or drop. cory: i like going inside your bloomberg terminal. wasn't that fun? spentercent revenues on marketing -- netflix used to keep that number down toward 9%. the real question is all about those content costs going for it. they don't even tell you what their future content costs will be. number andrucial those will be the questions in the call. scarlet: they are very stingy with their information about original content. cory johnson, thank you very much. alix: forget about the fed hiking as soon as march. one analyst expects a cut later this year. ♪ the only way to get better is to challenge yourself, and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for

betty: cory johnson here with me with more on this. cory: i'm so far away.re some interesting things in their business. ,e talked for quite a while they are in this technological trend where more people are doing things with noble everything and also expecting kind of one-stop shopping and rather than homeaway just as an introduction for the consumer and the homeowner to transact, but actually taking care of everything, whether it is doing business, on a mobile restaurant recommendations, travel recommendations, homeaway is now being pulled into doing all of that kind of stuff. , one ofozen airbnb their big competitors, don't they have a campaign app that attacks away -- homeaway? cory: they are drawing great distinctions between themselves , finding horror stories, the -- not the least of people that live there might be there at the same time, even in the same room. you have companies like morgan stanley telling employees they can stay in airbnb places as part of the approved corporate travel but homeaway is really about vacation rental, trying to distingui

walked it in, fires it up past cory and from there, the lightning totally clamped down on the hawks. chicago's 12 game winning streak is over. next stop, south florida to play the panthers on saturday and it could be for the division lead. >> >> rays have agreed to a one- year deal with steve pierce. lakeland faytive expected to hopefully, he can reproduce the 2014 season he had. homers. update. >> at 5:00. how this pair of drug smugglers behind bars. >> so you tool easy to use so you

carol massar, cory johnson.to have you back with us here on bloomberg will stop talk to us about this environment. we are trying to figure out -- yes, a lot of names have been beaten down. is it a buying opportunity or do you hold off and wait for things to settle down? ryan: thanks for having me. if you are looking at the financial sector, you need to look at large caps and small caps. i know the large caps off a lot of headwinds facing them when it comes to the price of oil, energy prices, exposure to energy loans, which they have all done a very good job of quantifying this past quarter. but how much more are we going to see their? carol: do you feel comfortable with their exposure and is it manageable? ryan: i think it is manageable. cory: you think it could be worse? done i think they have their job and when you are talking about economy that has $2 trillion in assets and it is 1% or 2% of the overall loan portfolio, they could a significant losses there, which would hurt the near-term earnings, but it is n