♪ emily: i am emily chang. this is "best of bloomberg west."e bring together the top interviews from the week in tech. coming up, my interview with the president of didi chuxing, the leading player in china's ride hailing space and a competitor with uber. we hear how the company plans to keep uber at bay. the third season of "silicon valley" premieres on sunday. we will hear from dick costolo, a consultant for the show, what he has been up to since leaving twitter. as our economy becomes more highly automated, what will the future of work look like? we sit down with alec ross. first, didi chuxing. uber's largest competitor in china. it operates in 400 cities across china with over 14 million drivers. uber has a presence in 150 chinese cities. they announced a new partnership with lyft to take on uber internationally. how do they plan to keep ahead of uber in china? i sat down with jean liu. jean liu: chuxing means travel, commute in chinese. we are serving a hundred people to commute. emily: you are often referred to as the uber of china. how d

even though emily was from a prominent, wealthy family, her friend lisa says emily never flaunted it. >> everyone knew that emily was a beckwith, but i never felt less of a person in the presence of emily or any one of her family. >> emily was the girl everyone wanted to be friends with, and every boy wanted to date. according to friends shannon and sara. >> could've had any -- >> oh, anybody. >> boyfriend. >> the, all these boys were fallin' -- >> gaga over her. >> yeah, gaga over her. i mean, she was gorgeous. i mean you've seen pictures of her. even in high school, she was gorgeous. but it just wasn't her thing to date. >> reporter: by the time she was 21, emily had moved about 200 miles south, to kansas city, missouri. working in a hair salon. one night in 2001 she went to a bar, and a local boy named alex fazzino spotted her from across the room. >> and it's one of those, like, "aha" moments you might say. i was like, "oh i have to go talk to that girl." >> reporter: after a few dates, alex say he knew she was the one. >> what'd you like about her? >> what didn't i? she's beautif

emily: where did it end?ony: it ended at literally -- we are going to do this, and tony, we want you to lead it. i had been in other executive presentations, where it was like, oh, it will take four months to decide, or whatever, -- it was, no. from the beginning of the meeting, he was fully engaged, to the end of it, ok, commit and we are going to do it. emily: we are going to take on sony? tony: i said we have to deal with sony. he's like, we're going to get sony. i'm like, but sony is number one in every audio category, in the world for personal audio. how are we going to beat it? he is like, no, we're going to do it. emily: you have become known as the godfather of the ipod. which, in a way, makes you the father of the entire product line. the ipod, the iphone, the ipad, maybe the watch. [laughter] but really, the ipod itself had such a dramatic impact on everything that apple has done since. tony: it was a big turning point, going from computers to consumer electronics, for the company. emily: what was y

emily: is it a gut thing? has there been times where people have said -- it's not going to take off. david: there is some degree of that. we don't really do testing in any way. emily: really? that is kind of scary. you are taking a huge risk. david: it is 80 people, there is nothing scientific about it. i like to watch our pilots in different groups of people over and over. i can start to feel -- i learned that from ron howard. ron would always watch his movie with different people. and i remember the first time he showed it to me and i tried to be polite and say it was great, he would not let me get away with that. he wanted to really know what i thought and where it lagged, where things were confusing. so, you do this over time. you develop a feel. emily: you have recently taken over for matt blank, who was in this seat for many decades. -- two decades. he had this job longer than any other executive in television. and now you are on the business side. david: this is the rare orderly transition in this busin

general alexander: thanks, emily. great to be here. emily: thank you for joining us.e have to start with the standoff between apple and the fbi. google, facebook -- tech companies have sided with apple. this reopened a divide between washington and silicon valley. how sustainable is it for tech companies to be at odds with their government? general alexander: well, i think everyone has a right to an opinion. i think what we have to do, though, is we have to learn how to get our country back together. and take the best of what we represent and put that on the table. and, you know, when i look at the great capabilities coming out of the tech community, it is phenomenal. tremendous opportunities. you know, look at your kids. the opportunities you have in education, the opportunities we have for medicine, for communication. but there are tremendous vulnerabilities with it. and we are outpacing the ability for the policy community to keep up. i would not say slow down, but i would say because we have gone so far so fast, how do we help the policy community keep up? and thi

emily: like? troy: ai and vr. artists can scale themselves by doing -- instead of having to go out and beat your body up by doing 120 shows over a four or five month time span or whatever when you can do 120 shows in one night, because of ai and vr, and you can create this sort of real experience, where you don't have to be there in the flesh -- that is a brand-new revenue stream that never existed before. emily: what is next for troy carter? troy: you know what, we are having fun right now. and also, just a future of support and entrepreneurs and artists. emily: troy carter, entrepreneur accelerator. i really like that. troy, thank you so much for doing this. troy: no, thank you for having me. thank you for having me. thank you. ♪ john: welcome to the best of "with all due respect" weekend show. donald trump and hillary clinton won the new york primary. bernie sanders went to rome and andrew jackson lost his spot on the $20 bill to harriet tubman. mark: donald trump took an interesting position on a transgender i

emily: how much did 9/11 surprise you? ♪ emily: you were born in syracuse, new york. third of five children. you were a newspaper delivery boy. you ran track. what kind of kid where you? gen. alexander: probably more on the trouble side -- i did good academically, but i was always of testing the limits authority. i had a great time in high school and college. emily: yet he ended up at west point. gen. alexander: i did not know anything about the military. my dad was in the marine corps at the end of world war ii. i got a full scholarship to syracuse and perdue. my mother encouraged me to apply to west point. i got accepted. i found that west point pays you. that is a good deal. how hard could that be? someone says they harass you there. how bad could it eat? i got there and the first three days, i called my dad and said these people are crazy,, and get me. what i found is what a great set of americans they were. i had a good academic background in high school. but i learned in the ethics at west point about duty, honor, country. -- myk might classmates classmates and

. ♪ emily: i am emily chang. this is "bloomberg west."ualcomm cannot escape the gloom, facing a sluggish third quarter. we parse through the main takeaways. google is back in the eu's crosshairs as regulators take aim at android. how much could the case hurt google's business? ford shelling out for one of tesla's white model x cars. first, qualcomm continues to get hit by the slowdown in demand for high-end smartphones. they forecast third-quarter earnings short of estimates thanks to weaker than expected appetite for the most expensive mobile phones. joining us from new york with a breakdown, cory johnson. what are the big takeaways? cory: if you have a smart phone, you have a qualcomm chip in them, almost guaranteed. the problem is growth has been shrinking. when you look at qualcomm's revenue, we can see a decline steadily as the smartphone growth rates have slowed down in china and all over the world. when you look at the percentage change, you see something different. the percentage changes, we see things have been getting worse on a

emily: you ended back at google. and sergei were insistent that i go back to california, because that is where the future was. over the course of 19 interviews, they decided ok, bill, we will ask you to start looking into this. there was no checkbook given. what should we do in venture? months thinking about different models and how it might work. of my job was that we hired a recruiting firm to find ahead of google ventures. it was not going to be me. as i interviewed people for the role, i discovered the thing i discovered when i sat next to anne and we talked to people pitching us companies. nobody knows anything. the people i am talking to do not know anything about google. it does not seem like they have special knowledge about technology companies to try -- about technology companies, so i volunteered. i thought i would like to give it a try. emily: was this an attempt to distance yourself from the google name? bill: people called us gv anyway. it was easiest. awfulyou have a structure, to color google ventures

emily: i am emily chang and this is "bloomberg west. coming up, netflix forecasting weaker subscriber growth. can international growth give them the boost it needs? plus, ibm revenue falls for the 16th straight quarter. we look for green shifts. first, to our lead. netflix shares plunging in after-hours trading after forecasting weaker subscriber growth this quarter, especially in new or markets outside the u.s. they expect to add 2 million international customers. that's important because netflix has bet its future for being able to bring the on-demand tv revolution to the whole world. all of this overshadowing first-quarter results. >> hulu is doing some great work, amazon is, hbo, showtime. there are so many competitors and everyone is working hard to build the best content. we are seeing growth in the overall tv market, that is displacing linear tv. it is natural that everyone is coming in as they realize that the future is internet tv. emily: joining us for a full breakdown is lucas shaw who covers bloomberg in l.a., our editor at

emily: he is so controversial.ir michael: controversial -- have you met anyone who is not controversial that has done interesting things? emily: having known three decades of leaders in silicon valley, do you think you have to be arrogant to be successful? sir michael: four decades. emily: four decades. excuse me. sir michael: lots of leaders have to make decisions about going in directions that may be is not popular in the organization. and sometimes, it spills over into arrogance. i'm different from how i was in my 20's. bill gates, who is in his 50's, is very different from what he was in his 20's. everybody learns a lot in their pursuit. so, the understandable energy and enthusiasm sometimes spills over to arrogance, and some people in their 20's tend to get softened over time. emily: you wrote this book before jack dorsey was named ceo of twitter. and you say the only silicon valley company that grew from "strength to strength," as you say, as it swapped ceo's, was intel in their first 30 years. so, do you thi

. ♪ emily: i am emily chang and this is "bloomberg west."oming up, alphabet and microsoft getting slammed in after-hours trading. and dick costolo on who joined in the writing room this season after leading twitter. and jean liu talks about did chuxing, china's uber. and we look at alphabet's after-earnings shares. it was up 18% and to that, it is looking at other bets. losses grew to $802 million. sales have improved. the cfo gave insight moments ago in a call. >> with regards to investments, the bulk of that is directed to our fiber business. we hope to increase that and execute it in a number of cities. emily: joining us now for a full breakdown is adam berge, james cakak, and cory johnson. cory, i will start with you. what do you make of the results here? not a great sign. cory: i didn't see it that bad as far as things go for google. $62.5 billion in revenue and a fantastic profit story as well from this company which we have come to expect, but if you look at this, we have seen some progress. we have had double-digit racing, if i can r

emily: this is the "best of bloomberg west." coming up, peter thiel speaking out on the bubble that may be everywhere. we will bring you the highlights of my exclusive interview. how does one spot the next elon musk? i will speak to the venture investor, who is on the search for the next big entrepreneur in china. why the whole media world should be afraid of snapchat. first, my interview with peter thiel. we spoke at the lend it usa conference. he spoke out on everything from marissa mayer's performance, to him his fear of china, the lack of women in tech, and the bubble that may be everywhere. plus, he also told us how he really feels about college education. peter: the big thing has been to focus on silicon valley, and i keep wondering whether we should try to look at some places outside silicon valley. of course, you have to travel a crazy amount to do that. that is why most of the venture capitalists do not want to do that. there is this question, should we be doing more things in other places, and is there some place with

emily: you're a single working mom.you have any advice or any learnings from this period in your life? anne: i think that you just have to accept that you do the best you can. my mom would call, "what are you doing?" and it's 10:00 at night and my kids and i are eating ice cream. we just need -- they're not going to bed. we just needed the ice cream. there are moments when it's hard. you do the best that you can do. part of it is also being gentle on yourself. you can't necessarily do everything. part of what i think sergey and i have done really well, you optimize for finding the best in everybody and focus on the friendship. emily: you live in this silicon valley bubble. like we talked about earlier, you do seem so normal. how do you stay normal? anne: you stay focused on the things that are important. i volunteer in the school. i make sure that the kids do their homework. i see my family all the time. i still see all of my friends. emily: you've been really active, and your sister as well. you have this issue with wo

emily: best take alzheimer's.re have been 100 attempts to develop an alzheimer's treatment since the 1970's, and all of them have failed. a successful treatment could be huge. where do you see the breakthrough happening in age-related disease? bill: there are people spending their entire careers moving actual molecules and working in labs to develop treatments for something that has been untreatable. that will be a win for humanity when that happens. we have an understanding of how alzheimer's develops and how all neurodegenerative conditions come about, that 15 or 20 years ago, when i was a neuroscience student, it did not exist and was not even in the books. now we have tools to appear inside -- to peer inside even living brains. it was only 1930 that we had no antibiotics. you get a disease, you die. and suddenly, you get a disease and take a pill, and you live. that is kind of a miracle. emily: i want to talk about specific companies, like foundation medicine, working on a personalized cancer treatment. they h

. ♪ emily: i'm emily chang, and this is "bloomberg west."pple shares dropping after decline since 2003. is it a new era for apple. twitter not feeling the pain. the attempt at a turnaround, will it take time? more than a million for the seventh quarter in a row. ceo john legere slams the competition. apple shares slide. slowing demand for the flagship product, the iphone. revenue fell to $56 billion, down 13% from a year ago. earnings per share down 18%. they introduced it moments ago. >> there were a number of encouraging signs. over one billion active devices continue to grow strongly. we added a huge number of android switchers and new to mac customers. and we generated strong growth from services. we sold 51.2 million iphones in the quarter. lower than the exceptional year ago quarter when we saw an acceleration of upgrades and 40% iphone sales growth over the previous year. emily: that acceleration after the size of the iphone. they are warning of another sales declined this quarter. investors are left to decide, is this a turning point

emily: interesting.e will talk about this a little more with you later in the show, but thanks for that update. the house of representatives passing a bill that would stop the government from being able to regulate how much we pay for internet service. this is a measure that would overturn net neutrality, a principal the tech industry has fought to protect. net neutrality makes it illegal for companies providing internet service to favor or block one type of internet traffic over the next. for more on the latest developments in this case, i want to bring in our bloomberg news reporter from l.a. lay out how what happened today changes the battleground for net neutrality going forward. lucas: it does not change anything immediately. if you remember from civics when you were in middle school, the senate would have to pass this bill. it has to go through both houses, and the president would have to approve it as well. president obama has voiced some opposition to it. it is possible that he could veto it. if

♪ emily: i am emily chang. this is "best of bloomberg west."e bring together the top interviews from the week in tech. all about earnings and apple posted its first sales in 2003. shares have taken a serious hit. is it a new area for apple? a tale of two tech companies as facebook hits the sweet spot. mark zuckerberg says more big bucks to come. and interview with the twitter cofounder and how he thinks twitter can right the ship along with a major announcement about his latest startup. first to everly -- apple, the roles most unable companies grappling with slowing demand for its flagship product, the iphone. it reported first sales declined since 2003. the numbers still caught some investors off guard. second quarter revenue was down her teen percent and earnings per share was down 18% and warnings we could see another decline in the next quarter. i spoke to frank gillett. what are the main takeaways? cory: iphone units down 18% is the biggest take away. you've got growth in the market and shrinkage at apple. the secular growth is taken away

♪ emily: i am emily chang and this is "the best of bloomberg west," where we bring together the bestnterviews and news highlights from the week. coming up, a bit of financial make-believe. we take that question to the seed investor who spotted some of silicon valley's most celebrated entrepreneurs. plus, piling into renewable energy like never before. defined the theory that lower oil and gas prices would break funding away. we will meet the business minds driving the sector forward. is the tech story finally over? i sit down with the vendor and to watch which sector he is watching for the next big thing. first, the top story this week -- investors wondering if startup valuations are a bit of financial make-believe. this week, we employed the -- we explored the question on whether the unicorn bubble has popped. i sit down with dropbox ceo. what do you have to say about the mutual fund? >> we don't pay that much attention to it. what we focus on 500 million people using dropbox, 8 million businesses using dropbox, 150,000 of them paying like expedia, all these new big deals. our custo

emily: i am emily chang, and this is "bloomberg west." it has been a dramatic week for tech stocks. apple sending the s&p 500 to its lowest drop since february with amazon checking in for its best profit yet. plus, the app pulled off a big-time coup today, scoring a one every kind of deal. will snapchat revolutionized the way we watch the olympics? the onslaught of earnings continues. we'll hear from the ceos of linkedin and pandora. their vision for a pass for a path forward. we have now gotten financial updates on some of the biggest tech companies. for some, investors may remember this week as a time momentum really shifted one way or another. for facebook, earnings gave mark zuckerberg the chance to ask for more freedom. on the other hand, twitter ceo jack dorsey is under more pressure than ever. perhaps a better example of divergence in tech stories is apple and amazon. apple's first sales decline in 13 years marked an end to an unprecedented growth streak that lasted 51 straight quarters. $51 billion market cap in one hour the next day. the knockout punch, billionaire carl ica

emily: that is adorable. ms. huffington: it's all the children, so you can have, like, meaningful conversations rather than cute conversations. emily: what do you think about medium and the rise of medium? is it a threat to online publications? ms. huffington: i love medium. i think what they have done is absolutely fantastic. i just did a conversation on stage at a conference. and we want to partner together. i'm a big believer in partnerships. i feel partnerships are the future. the reason we have grown is that every single one of our international additions is a j.v. or a partnership. a commercial partnership with a major media player. partnerships allow you to grow much faster, to have the advantages of having a player involved that knows the market. emily: why do you think the tech industry in particular has such a problem with women? ♪ emily: we have been talking a lot about issues like diversity and inclusion in the tech industry and the fact that women and minorities are underrepresented. when it comes to

. ♪ emily: i am emily chang and this is bloomberg west.or applebraced earnings yesterday and the question remains, how far have iphone sales fallen. and charter communications approved -- received approval for its takeover of time warner cable. and we embark on the busiest week this quarter. what you need to know ahead of the report. it has been a year since apple released the most significant new product since the tim cook era. the most hyped gadget since the iphone, the apple watch. watch is the apple most personal device we have ever created. it is not just with you, it is on you. since what you where is an expression of who you are, we designed apple watch to appeal to a variety of people with different taste and different preferences. emily: apple has not disclosed sales figures but ibc estimates about 11.6 million were shipped in the first month of 2015. they compare that to the first sales of the iphone which were a mere 6 million units in 2007. the iphone went on to be there most important product ever. with that in mind, why is th

emily: start of strategies or details? similar, they have a access to information that any partner would get. financial information, etc., but i have got no incentive to share details about what a startup is doing, as i would with intel .ersus google versus facebook our job is to generate returns and hope the company grows. a benchmark, those are kings. those are the firms that entrepreneurs lust after. do you ever feel you are that guy trying to convince people? bill: i think imposter syndrome is a key element of many people's personalities. i am no exception. you are only as good as your next few investments. i think that insecurity comes up a lot. it never bothered me that people took us seriously or not. i think it is more important if we take ourselves seriously because we are trying to do something that has not been done before. emily: one of the things you are really focused on is trying to extend human life. -- much progress has you have you actually made there? ♪ emily: -- bill: this sounds mad scientist. it is no

emily: jeff weiner, ceo of linkedin, thank you so much for joining us. ♪ ♪ emily: i am emily chang.best of bloomberg west." we bring together the top interviews from the week in tech. all about earnings and apple posted its first sales in 2003. shares have taken a serious hit. is it a new area for apple? a tale of two tech companies as facebook hits the sweet spot. mark zuckerberg says more big bucks to come. in

. ♪ emily: i'm emily chang, and this is "bloomberg west."el reveals a major restructuring, cutting as many as 12,000 jobs as the pc market heads for a fifth year of declines. we will take you to the details. yahoo! topping estimates as the preliminary bids come in for a company selloff. we will tell you what marissa mayer has to say about putting yahoo! on the block. from the courts to capitol hill, we speak to the congressman leading the charge striking the balance between privacy and national security. intel announces a major restructuring. the biggest chipmaker will cut 12,000 jobs or 11% of its workforce. shares were halted ahead of the report and now down to percent -- 2% in extended trading. intel announcing stacy smith will move to a new role as head of manufacturing and sales. the company reported sales of just under $14 billion. year.from last the reorder comes with the pc market on track to decline for the fifth year in a row. how will intel reposition itself? joining me is cory johnson and start with cory. these are significant jo

. ♪ emily: i'm emily chang, and this is "bloomberg west."he latest from facebook, is the company's ad business facing a decline, and what type of hardware can they work on? all of that, ahead. plus, a serious setback, regulators calling for a ban on founder elizabeth holmes, and a stop on medicare payments to the company. we will bring you the latest. and senators release a long-awaited draft of encryption legislation that would force companies to comply with court orders for data. we will break down all the details. first to our lead, reports that u.s. regulators are looking to leader elizabeth holmes from the company for two years. the president would also be barred, according to the "wall street journal." they had a letter for centers to medicare services, proposed sanctions banning her from receiving payments from medicare. over the last few months, the tests were not as accurate as they should be. sheila is with us from new york, and max mason from our fast commentary section, as well, and greg ingles, chief executive of a clinical lab

emily: i'm emily chang, and this is "bloomberg west." coming up, the stage is set between the tech industry and the government. this time it is microsoft in the spotlight, doing the -- suing the doj over a law that stops the company from telling customers when the government wants to access their data. how do you spot the next elon musk? that special breed of on for newer capable of starting several billion dollar companies. i sat down with one investor says they're looking for those people in china. in viacom, redstone will not be testifying in the case over his own competency. we will bring you up to speed in this high stakes saga. microsoft sets the stage for another high-profile confrontation between the government and silicon valley over consumer privacy. the company filed a lawsuit in seattle over a law that bars tech companies from telling consumers when the government has requested access to their data. unlike apple's dispute, the site is not over a single request, but over the legality of unmounted request piling up now that so

emily: thank you for being here.erizon which owns aol and the huffington post say they will bid for yahoo!. do you believe verizon has a longtime content strategy that include yahoo! and the huffington post and if so, what is it? ms. huffington: verizon has themed that the future for has to include a very robust media technology company. would fit very well in the strategy. there is competition. maybeis soft bag and google so we will see what happens. emily: what are the synergies you see with verizon and the huffington post? ms. huffington: verizon has huge distribution potential. we are moving more and more into video. whichave launched go 90 of their mobile video play and has produced and paid for great content from many providers. this is fantastic because it gives us great distribution. emily: what do you think about the idea of a wireless company getting into content? it's not just verizon, it's an interesting new world. ms. huffington: i think it's a smart move. the world is changing. it's the innovator's dile

emily: thank you both.g up, an intimate conversation with the young computing whiz who grew up to master the music industry. spotify's ceo tells us what it is like to be a tech celebrity in sweden. more of bloomberg west coming up next. ♪ the top stories this hour, the yen jumped. it unexpectedly kept its program unchanged. -- it isal bank says half of 1%. japanese stocks are set to tumble at the afternoon open. shares have dipped after it to buy back $1.8 million. the early release of the galaxy of $4.6ought in income billion. malaysia's governor has fled continuity of policy. he has worked closely with outgoing bank in the giro chief. those are the headlines from 150 news news. over all over the world. with a quickstart check of the yen. we saw it coming off a cliff. where we are now. we are still high by about 2%. is going to create a pain when it comes to japanese. a reactionto see when it comes to the korean currency. we are seeing movement at 1141.60. but get back to the equity. we saw this pointing t

emily, cool stuff, don't you think? emily: very cool. our editor at large, representing at the bloomberg business week design conference here in san francisco. thanks so much. it is time now to find out who is having the best day ever and today's big winner is charter communications c.e.o. tom rutledge. the appearing more and more likely that charter communications merger with time warner cable will make clearance. if approved, the merger would quadruple charter's cable subscribers and create the second largest cable provider in the united states. tomorrow we focus on fintech. i will sit down with peter thiel and square capital. ♪ announcer: on today's paid presentation for cindy crawford, brought to you by gouthy renker you discover the secret to not only aging gracefully, but beautifully. cindy: my philosophy on aging is the same as my philosophy on living, which is do it well and take care of yourself. it's about celebrating where you are and being the best you can be in that moment. then, it is not aging. you are just living.

emily: how much faster?s: i can imagine that solar is about 20% plus within three to five years. emily: what are you doing to reduce installation cost? will solar ever be competitive with utilities without tax , other innttax credits? guest: solar is competitive today. a lot of people don't know that all of energy is subsidized. the global subsidies for fossil fuels are $5 trillion. fossil fuels in the u.s. receive eight times the subsidies that renewables did in the u.s. what we are saying is let's have an even playing field. today already even with all the , subsidies fossil fuels receive, we are 20% cheaper and our costs are going down. the power we are competing with is going up at the same time. a lot of people will say oil and natural gas are so cheap. what drives power prices is the investment in transmission and distribution lines. which are aging in this country and introducing a ton of risk. that's why we have these brownouts and blackouts. what happens is is that utilities have to modernize the gr

. ♪ emily: i'm emily chang and this is "bloomberg west."oming up, twitter seals the deal for streaming rights on thursday night football. the details behind twitter's latest play for online programming. plus could home advisor be the tech uniform? we talked to the ceo about plans to scale up. and bono's private equity firm is winding down. first, to our lead. twitter making a strategic push into online programming. the social networking company will stream 10 thursday night football games to the public for free, simultaneous to their broadcast on tv networks and the nfl cable channel. the winning small bet is is said to be in the neighborhood of $10 million competing offers from yahoo!, amazon and facebook. joining me to discuss it is the ceo of revolt media. here in the studio is our reporter who broke the story. sarah you broke this story , because of another story you broke last week about facebook backing out of its bid. what happened here? sarah: scott on our sports team has been a good reporter on this. basically, when facebook backed

emily: what about the rest? >> if we look at the basket as a whole, i think they'll outperform the u.s. equity indy cease. i think it makes good television to talk about boom or bust but we invest on such a long cycle, we're going to hold the shares for 20 year, these companies will go through multiple up and down cycles. if they're building real long-term value, building a product consumers love and a nice network effect in their business, they'll be worth a lot someday and we'll leave market timing to other people. emily: we talked to the c.e.o. of airbnb, listen to what he had to say about how important y.c. was for there. >> when we came into y.c., we said three months from now, we will decide if we want to continue to work on airbnb that should give you an indication of what we thought our chances were. the good news is at the end of three months, we never had that conversation. we went from thinking about that conversation to being told, you're the ebay for space. >> without y.c. would you be here? >> it m

emily? emily: all right, new york's ramy inocencio.raft encryption legislation is out, mandating that companies would have to comply for court orders requesting access to data. ♪ mark: after months of mounting evidence, scientists are ready to say definitively the zika virus spreading across the americas is spreading birth defects. the virus is linked to a spike in microcephaly, which causes babies to be born with of normally -- abnormally small heads. the virus has been reported in 33 countries. louisiana's governor has issued an executive order banning discrimination based on sexual orientation or gender identity. the order includes an exemption for state contractors that are religious organizations. the south korean president's ruling party suffered a setback in parliamentary elections, failing to win a majority in the national assembly. and is limited to one term was trying to gain a large enough majority to execute key legislation. a committee vote was canceled for tomorrow on a plan to help puerto rico restructure its $70 billion

. ♪ emily: i'm emily chang and this is "bloomberg west."oming up, amazon shares surge after sales topped estimates. jeff bezos is showing investors he can deliver profits and keep his side projects. linkedin surprised the industry with the earnings be. shares popping off the news. could the company not be as dire as beer. and an interview with biz stone. first, to our lead. amazon shares popping 12% in extended trading. the e-commerce giant reported a first-quarter revenue of just over $29 billion. operating profits were $1.7 billion. amazon web services continue to be a juggernaut for the company. the cloud computing arm is generating over 2.5 ilion dollars in revenue, and 64% year-over-year growth. this adds to evidence that the company can be profitable while adding new things, like one hour delivery, and marketing new gadgets. >> unit growth accelerated from 26% in december 2 at 27%, and that is higher than it was in the september quarter. two quarters of a row of acceleration. they are systematically taking over. that was the biggest t