josh lipton has more on what is at risk and what it means. >>> it started with yahoo!. okay, cupid, and tumbler, now it is threatening tech bellweathers and possibly even our banks. it is called "heartbleed bug," an encryption flaw in the website, that means user cards, pa pass words and credit cards are at risk. >> they can compromise the keys which basically give them unlimited access to sensitive communication between banks and other companies and their clients. so i think it is extremely dangerous, vulnerability out there. >> cisco and juniper say their products now are exposed to "heartbleed bug." this is a real concern as they track data across the internet. but the danger doesn't stop in silicon valley, banks are also potentially exposed to the threat. the question for consumer is how safe it is to continue on-line banking right now. smaller banks that don't spend time and money on security are a real worry. >> they may have one i.t. person who does all their i.t. and security. they rely on third-party processers to provide secure. and that has not worked very we

silicon valley, josh lipton. >>> and now we turn to quarterly earnings for amazon.com, first quarter profits shot up earning 23 cents a share, right in line with wall street estimates. revenue rising to $20 billion, a slightly higher number than forecast. the stock jumped as much as 3% in after-hours trading, pulling back after climbing 4% in the regular session. sheila, the numbers were okay, i guess. but you hear from the ceo of amazon a new deal a week, right? so are we supposed to pay attention to the new deals or to these quarterly numbers? >> yeah, it really boils down to whether or not you believe in his strategy or not. because let me tell you he is sticking to his guns, pouring money and cash into amazon's business, all coming at the expense of profits. in fact, the analyst says they're spending money like drunken sailors, now look, the idea is in growth, it is working, sales grew more than 20%, and all the deals he is doing, like streaming videos, tripled the number of views, now, we'll see how long they can keep going with it. because remember, amazon did project a negativ

apple pending release, but when they opened after the close shares initially soared by about 7%, josh lipton joins us outside headquarters in cupertino, california, and also spoke to ceo tim cook earlier today. josh? >> reporter: yes, here in cupertino, california, i did get the chance to speak to ceo tim cook this afternoon just to run through the numbers, apple reporting, certainly pleasing investors 43.7 million iphones. that was more than the street was looking for and tim cook told me it was really broad based there, good sales, strong demand he also said from china mobile. tim cook also told me listen, we realize we have more money than we need. so we see apple extending the program over $130 billion, increasing the re-purchase authorization to 90 billion, boosting the dividend to 18%. and as you mentioned bill, all this announcement for the 7% stock split. and tim cook telling investors who want to own apple shares, he wants stock to be as accessible as apple products. and analysts and traders certainly want to hear more about new products and what is on the way. tim cook says he is n

josh lipton explains what is troubling investors. >> this is the original sign.from the start, jeff base's strategies for amazon and the company rein vest be in the business. it is a business strategy that investors haveñr embraced becau they believe in his vision, building an e-commerce power house that also offers almost everything from tablets to cloud comput computers. some are losing patience after amazon delivered strong sales but a disappointing out look. >>> the market wants profitability sooner, getting what it wants. >>> amazon's first quarter revenue jumped 23% to nearly $20 billion driven by new customers and new products. but amazon intends to keep spending a lot of money on hardware such as tablets and set top boxes as well as video content and delivery services, all the spending is having an impact on the bottom line. amazon projects a loss of $455 million. stock dropped hard in today's trade. suffering its worst day in months. it is now one of the worst performers this year in the s&p 500, despite big gains in 2013. bulls say amazon remains an imp

josh lipton, "nightly business report," silicon valley. >>> the auto parts maker delphi is getting drag need that massive legal trouble at general motors over those faulty ill anything switches it made. they have been linked to at least 13 crash-related deaths. plaintiffs suing g.m. have now added delphi's name in their lawsuits against the automaker, included a former delphi employee whose daughter was killed in a 2013 chevy cobalt accident. shares of the auto parts giant down about .5% today at 69.73. >>> that drop was nothing compared to the decline in shares of barnes & noble today. they tumbled nearly 14% after one of the bookstore's chains biggest investors ---ing talking about liberty media -- said it sold almost all its stock in the company. >> reporter: a blow for struggling bookstore chain barnes & noble. liberty media's decision to sell its stake is a big turn around from three years ago when the media giant had tried to buy the entire company. settling instead for a 17% ownership cut. today's stock plunge has investors concerned about the company's future. but analysts say t

our josh lipton is out in silicon valley. roducts, josh, but maybe some use of cash. >> yeah, sarah, apple bulls, of course, list their reasons for optimism, right? the stock is cheap, they'll say, exciting new products could be on the way, and apple's buyback program could get a big boost when apple reports earnings next wednesday. the analyst at bernstein who covers apple estimates that apple has about $10 billion left in its current buyback program. now, he thinks apple next week will add $30 billion to it. apple stock could certainly have a boost here. it's been stuck in this trading range for about two months between 525 and 550. peter missic of jeffries agrees they should buy back more stock. it currently sits on the $160 billion of cash. missic says that is, quote, an obscene amount of money. the company should be returning, he says, to its owners. there is one outspoken investor who has urged apple to repurchase more shares. that's carl icahn, of course, the billionaire investor over the size of the buyback. icahn fina

let's get a check on apple and josh lipton. josh. >> when i spoke to tim cook, we talked about that legendary cash pile. he said we know we have more money than we need. so what do you do with that cash when when you look to launch new products? it's a theme he's talking about on the conference call. take a listen. >> we're expanding apple's products and services into new categories. and we are not going to underinvest in this business. we're also investing through acquisitions and we have acquired 24 companies in the past 18 months. >> now, cook pointing out that most of the acquisitions apple has done have been small. but he told me they're not opposed to doing a larger acquisition if it makes sense for their company and that he is, quote, on the prowl to do more acquisitions. melissa, back to you. >> thanks a lot. let's go back to collin of bgc financial. what josh pointed out, that's exactly what you want to see apple do? >> absolutely. one of the things cook mentioned on the call that was a highlight, they have 800 million

josh lipton, cnbc, silicon valley. >>> this would be huge, joseph, absolutely huge. what are your expectations for alibaba? >> obviously fundamentals are improving substantially into the ipo of what we would expect from any deals like that. so revelations in the market plays now are between 150 billion and $200 billion. in our opinion, valuation should be slightly lower given the default risk of ipos in general. other ipos should trade sat a discount to u.s. domiciled ipos. the company needs to leave some money on the table for the institutional investors which are required for the deal. it's a large deal, up to $15 billion. obviously for this kind of money you need very large investors and large investors shared their facebook experience, bought into the offering the ipo price, to see the stock tank in the after-market. that's what alibaba wants to avoid. >> alibaba doesn't actually sell goods, they operate websites where you can buy and sell goods through. how susceptible is alibaba to a potential slowdown in the macro environment? >> obviously, it is susceptible b

josh lipton, cnbc, cupertino, california. >>> we have the general manager at upstream.e also have the managing partner at nostra capital. give us your thoughts, the buyback, the high dividend and better numbers out of china. >> in terms of financial results, they did great, beat the expectations in the market. however, the most important aspect of the results yesterday was the number of times that both tim cook mentioned emerging markets, china, india, turkey, vietnam. that shows they're starting to crack the recipe and moving beyond the western world, where they will establish into emerging markets. >> wall street was downbeat leading to the earnings and what the china numbers would look like. there was a concern that 4g was not being rolled out by china mobile. we saw it was the older phones at a discounted price that were selling. do people need to change their expectations around the china numbers because of what we saw? >> exactly. that's not only in china, that is the case in india. you have the relaunch of the iphone 4s. >> the question i have is related to what

let's go to josh lipton. >> microsoft reports and rises in the after hours. the street is looking for 63 cents on revenue of 20.44 billion. microsoft reports 68 cents. commercial revenue clocked in at 12.2 billion. office, revenue both up over 100%. and devices and consumer division, revenue at 8.3 billion. windows revenue that microsoft gets, that was up 4%. hardware revenue grew 15% and microsoft sold 2 million xbox consoles. the street wants to hear more detail about the company's newer strategies like making office available for the ipad. dell also making it clear that cloud a key part of his strategy to jump start growth. want more details on how that business is performing. i'll bring you updates later in the hour. >> thanks so much. 49 is where microsoft is and that is still off of its 52-week high. >> i think you buy this strength as opposed to amazon. the one thing josh didn't mention is operating margins. almost 35% operating margins. pete has talked about this ad nauseam, the death of the pc didn't die. look at apple's numbers yesterday and microso

let's bring in josh lipton for the numbers, the key take away is, josh? >> yeah, the key number that traders and investors are focused on, 3.1 billion. that is what alibaba just reported. remember, they may be excited by the game plan for this quarter, improves products, attracting more investors. but certainly there are a lot more traders and investors excited by yahoo! 24% stake in alibaba, the chinese giant. there was a concern on the street about a decelerating growth rate. but alibaba saying q4, revenue up. mcquarry just raised yahoo! to a buy in part because of the upcoming enthusiasm. >> alibaba, the tail that wagged the dog, thank you very much. >>> the two best performers in the dow today were coca-cola and johnson & johnson, both releasing first quarter reports better than expectations even though coke's profit revenue fell. but johnson & johnson's earnings topped the forecast. >> reporter: coca-cola sales were flat in the u.s. this winter and fell in europe. strong growth in emerging markets helped to push the company's global sales volume up 2

josh lipton is in silicon valley on mike soft.an brennan back home, here on amazon, welcome back for a couple days. jane wells in l.a. on starbucks. let's see. who do i want to go first? josh, you. >> me, me. oh. >> tyler, we know investors are big fans, but can the new ceo keep winning over wall street as he implements a new strategic software giant? since becoming ceo on february 4th, microsoft's stock is up about 8%. the nasdaq is flat over that same period. that will be the first time leading the microsoft conference call, nadella. revenue of $20.4 billion. beyond just the top and bottom lines, the street wants to hear more detail today about the company's newer strategies. so, remember, for example, microsoft recently announcing office will be available for the ipad. fbr says that move could generate up to $5 billion per year for microsoft. there's know knokia acquisition. microsoft hoping that's going to move the needle on its very small share of the mobile operating system market. nadella also made it clear the cloud, key p

josh lipton, "nightly business report," silicon valley. >>> and a demand for some of your favorite brands is falls. what that could say about the economy and some big new american companies. >>> the energy information issued its short-term price outlook, they will average about $95.60 a barrel this year. and brent crude is expected to sell for just under $105, today, west texas jumped 2% for more than $102 a barrel, while brent settled in at eight. >>> and a new government report says that the u.s. is sitting on a massive stockpile of reserves. that has energy producers pushing to export more of that gas, but it won't be easy. >> reporter: the energy business is booming in the u.s. and part of the surge includes natural gas. the energy information administration says the u.s. is sitting on more than 2 trillion cubic feet of natural gas reserves, roughly 92 years of supply. so is now the time to export? supporters say exports will help to stabilize the prices worldwide, especially in light of the political tension in russia and the ukraine. they say it will add valuable jobs to the economy

we've got to go to josh lipton standing by with a revenue number for a. josh? >> got it. josh lipton in cupertino, california. just finished to speaking to the apple ceo tim cook. let's go through the numbers and what apple reported. apple reporting and beating both the top and bottom line. 1162 on 45.6 billion. as you go through the product segment, iphone, a healthy beat the street. looking for 85.5 million units. apple reports 43.7 million, cook telling me there was broad-based strength, 5s and 5c and very pleased with trying mobile. there's been some concern on the street about lackluster demand. cook saying that was not true. he was pleased with the results he saw from china mobile. on ipad, the street was looking for about 19.8 million units. apple has 16.4 million, cook telling me there was some supply/demand issues that he did not think the street was taking into account. remains pleased with the results and continues to believe that tablets will overtake pcs in the next few years and apple is well positioned in that market. as for guidance, revenue, 136 to 38 bil

josh lipton at cnbc, silicon valley. >> josh lipton with the recap.uarter profits down 21%, but excludeing various charges, earnings matched forecasts. revenue fell 22%. the worst quarterly figure in five years. it also missed estimates. ibm is continuing to struggle with falling demand for hardware and weaker demand from china and emerging markets. the company is still backing its full-year earnings targets. the stock was down 4% in after hours and frankfurt is down 4.5%. >>> ukraine's interior minister says 3 pro-russia protesters have been killed and 13 hurt and 63 arrested during clashes at an army base in the east of the country. this is after separatist rebels seized military vehicles while ukrainian troops were met by angry crowds in a number of towns. an estimated 40,000 russian troops remain close to the border. and president putin has been holding his live phone-in, has been speaking this morning. he says kiev did not try to establish dialogue in eastern ukraine and sending armed forces there was another serious crime. he says kiev should ge

josh lipton, cnbc, silicon valley. >> the latest on the earnings front there.here is more crossing now on russia. the central bank has taken action. it's raised key interest rates, up from 7%. 50 basis point increase has been the reaction from the central bank. it says it does not plan to cut rates in coming months. spelling out the fact that rates will now stay at the slightly more elevated level. the central bank says the rate rise is due to the weak ruble. the reaction has been that the dollar is stronger now against the russian ruble. it says high inflationary risks also on its radar. don't forget we've had a ratings cut by s&p today as it's concerned about the growth outlook for russia. it's also talking about monetary conditions as one of the key factors if it continues to re-assess russia and whether there might be more downgrades down the track. this has been the instant reaction on the market as you can see. 30% firmer for the dollar versus the russian currency. >>> let's come back to the microsoft numbers that we're flashing up for you. joining us on

josh lipton has the details. josh? >> scott, google's motto is don't be evil.nother motto could be, don't share the power. in silicon valley power can mean having a special class of stock that let's founders continue to control a company even after it goes public. google founders bren and page, they have that power with special stock class b that gives them ten times the voting power of the stock held by investors like you and me. starting today investors can start a third kind of stock, class c shares but it has no voting rights at all. they can use this class of stock to making a question situations or compensate employees without giving up any control they have of the company. in just a past few months we know google has been on a shopping spree and boston dynamics which makes those ro t bots. scott, back to you. >> thanks so much. >>> the race to innovate is ripping through silicon valley. as companies like amazon, google, and facebook try to expand beyond their gore businesses. court's idea's editor is here to break it all down for us. we're looking at a d

josh lipton hitting things. josh? >> yahoo!king for 37 cents on 1.08 billion. yahoo! reports 38 cents on 1.07 billion. looking through display revenue x tack, yahoo! reports 409 million, better than what some analysts were looking for, consensus for around 391 million. search revenue x tack 440 million, better than what the street was looking for, consensus around 440 million. yahoo! reporting 38 cents on 1.07 billion. kell, back for you. >> josh, thank you. on that point want to bring in colin gillis from bgc financial to get his reaction on the yahoo! numbers. thanks for joining us what. jumps out to you? >> so what, jumps out is that their core business, the part that they can control is the someplace advertizing piece and that came in week yet again, around 412 million or something like that, if you're looking at the numbers. the search bit is quite good, but this is another push quarter for yahoo!. investors were interested in this name are interesteded for the ali baba stake. this company will need to turn around on its o

. >> josh lipton, thank you very much. melissa, where did you get these, by the way?we're not going to tell you. >> where's mine? >> look, brian, i care so much i will share. i'll share. >> all right. >> who wore them better? that's my question. >> all right. in fact we have a google-related market flash. dominic chu, i'm going to send it to you or somebody over there. >> i'm still trying to get over you wearing the google glass. check out shares of twitter at session highs right now. now, the company's naming daniel graf to lead its product group. he's the former director of google maps. a lot of these social are very much in focus. back over to you. >> thank you very much. i didn't know if you could cruise around. >> that's really not cool. so not cool. >> yesterday, folks, we told you that 44% of all twitter accounts have never sent a tweet, but here's another completely, and i mean completely different reason why twitter is experiencing growing pains. it's an extremely blurred out photo of a highly pornographic image sent from the official us airways twitter accou

josh lipton has the latest. >> big headlines here in silicon valley. news that a deal has been found here in the tech wage fixing case. you will he's recall this case involved a class action involving 64,000 tech workers and they had alleged that between 2005 and 2009 executives at big tech titans here at silicon valley -- google, apple, adoe by ay and intel conspired fix worker compensation. they were seeking, i'm told, as much as $9 billion. terms of this deal have not been disclosed. the trial was set to begin in may but again a deal looks to have been reached here. it involved well-known executives -- steve jobs, eric schmidt. then though a deal has been reached, though no terms of the deal disclosed as of right now. >> we' will see if they start playing musical chairs in silicon valley as a result. >>> 19 minutes left in the trading session. we're up five points on the dow jones industrial average. >>> after the closing bell, new microsoft ceo will be overseeing his first earnings call since taking the top job in january. it is a big deal. we'll p

. >> josh lipton, very good stuff.it. >> up next, one of the most unlikely guests in "street signs'" illustrious history, kiss and paul stanley suddenly promoting his new book on television right now. we're back after this. ameriprise asked people a simple question: in retirement, will you outlive your money? uhhh. no, that can't happen. that's the thing, you don't know how long it has to last. everyone has retirement questions. so ameriprise created the exclusive.. confident retirement approach. now you and your ameripise advisor can get the real answers you need. well, knowing gives you confidence. start building your confident retirement today. i just ah woke up today confident retirement today. and i said i need something sportier. annnd done. ok maxwell, just need to ah contact your insurance company with the vin number. oh, i just did it. with my geico app. vin # is up to the loaded. ok well then jerry here will take you through all of the features then. why don't weeeeeeeeeeee go out to the car. ok, i'll just be

josh lipton is covering apple. morgan brennan is on facebook. shares of facebook down 10% in the last two months. now apple down almost 6% year to date. facebook is go 2.6% today, and apple, we'll look at that stock? just a second. josh, you take it first. >> well, sue apple stock is stuck in a narrow trading range, but after the tech titan reports, it could make a move lower. wall street expecting in-line quarter result, but it's the dwismt3 guidance that could upset investors, there's a worry that china mobile isn't selling as many iphones as expected. china mobile doesn't subsidize i phones, also consumers, especially overseas, they want phones with bigger screens. apple currently doesn't offer that. pressure could come from u.s. phone carries, at&t and verizon, they're allowing they're customers not as often as they use to. if shares tumble in the after-hour, i'm told that investors should buy that dip. he says apple will move higher. and boosts its buy-back program. sue, back to you. >>> let's go to morgan. she's in l.a. covering facebook f

josh lipton has the details. >> tyler, jack moff founded ali baba, the former english teacher from china is preparing to bring his company public in what may be the most anticipated ipo this year. the company obvious is compared to amazon, but they have very different business models. ali baba is a middle man, operating web sites through which consumers buy and sell goods with each other, it makes money from the advertising, which accounts for the bulk of the revenue. analysts afternoon cantor fitzgerald peg its valuation at $184 billion. it now dominates the chinese e-mer market, accounting for half of all parcel deliveries in china, that's 5 billion packages per year, and more than 60,000 transactions every second on its website. business is growing fast. in the final quarter. it generated revenue of 3.1 billion. that was a 66% europe overother year on the top line. why are investors so excited? well, it's a direct way to play the chinese e-commerce market. china had only about 2 million internet users by 2013, 600 million. that is a lot of potential future shoppers on ali baba's platf

josh lipton live at the big event in san francisco. josh?> reporter: yeah, here at the microsoft developers conference, satya nadella is about to take the stage. you hear them proposing a more flexible vision for the company. two key updates today. one, windows phone. microsoft unveiling a new personal digital assistant, sort of their version of siri. it will help you do searches, answer questions, basically help you get things done on the phone. microsoft's share of the mobile operating system market, still pretty small, around 3% according to idc but with new features, they are obviously hoping to jump-start that share. also, key updates for 8.1, windows 8.1. again, you heard the same things, trying to make it more flexible, more easy to use. now it will be easier to use, for example, if you have a mouse and keyboard. windows still a critical property for microsoft. it's been the foundation of their product line for 30 years and is still a cash cow. it's a multi billion dollar business, generates about 30% of their profits. satya nadella j

let's get to josh lipton live in san francisco. what can you tell us, josh?ah, here at microsoft's developers conference, microsoft executives presenting a very different vision and strategy and a different feel. satya nadella was just onstage rocking a teeshirt and jeans and sneakers. he talked about how microsoft thinks about its relationship with developers. take a listen. >> one of the core principles we have is we want to make it possible for every developer to bring their core assets forward and to be able to leverage their core assets they build in a very broadway across our own family, but also across platform. >> reporter: i'll tell you guys, when you listen to nadella, you had to be impressed by just his knowledge and expertise of the business and also just his comfort level with this community of 5,000 developers. before he took the stage, steven elock was onstage introducing some new smartphones, also talked about some lower end models coming to the u.s. here in july for $159. so an aggressive price point there. some key updates as well for window

. >>> now to josh lipton for the cnbc market wrap. >> u.s.iented on thursday with the s&p 500 extending gains into a fourth session. that's general electric and morgan stanley among the companies reporting quarterly results that beat expectations. the doubt shed 16 points but the s&p tack on two points and the nasdaq gained nine points. that's it from cnbc, first in business worldwide. ameriprise asked people a simple question: can you keep your lifestyle in retirement? i don't want to think about the alternative. i don't even know how to answer that. i mean, no one knows how long their money is going to last. i try not to worry, but you worry. what happens when your paychecks stop? because everyone has retirement questions. ameriprise created the exclusive confident retirement approach. to get the real answers you need. start building your confident retirement today. how did i know? well, i didn't really. see, i figured low testosterone would decrease my sex drive... but when i started losing energy and became moody... that's when i had an h

. >>> i'm josh lipton with your cnbc market wrap. 16, the s&p up 2, the nasdaq added noon. a sign the labor market may be recovering, the number of americans filing claims for unemployment benefits rose less than expected, remaining near a seven-year low. congressional budget office says president obama's 2015 budget plan would increase tax revenue by nearly $1.4 trillion over 10 years and average rate for a 30-year mortgage fell to 4.27% last week. that's it from cnbc. vo: once upon a time there was a boy who traveled to a faraway place where castles were houses and valiant knights stood watch for the kingdom was vast and monsters lurked in the deep and the good queen showed the boy it could all be real avo: all of great britain, all in one place book on expedia before april 30th and save up to thirty percent. >>> thanks for staying with us tonight. welcome back to "the ed show." voting should not be the reward of a contest over how long you're going to stand in line. during the 2012 election, thousands of voters in florida's miami-

>> i thought josh lipton's comments were amazing.ok said to him were amazing. we have exciting things coming. i think people will be surprised. it seems like tim cook said, i don't show my hand, but then showed his hand to lipton, and trying to tide everybody over a little bit. >> you mean, there's so many things about the quarter, as you mentioned the balance sheet maneuvers. the decline in liquid assets down in almost three years or so. will that continue? >> i'm not an expert. i do know when you have so many assets, it's spending down a little bit of them. it's like increasing the buyback by 30%, keeping it on the same time line so it's completed by december 2015. that's sort of going above and beyond to try to pacify everybody. >> we'll see what the fall brings, and now, of course, the discussion of do they get added to the dow, which is the new parlor game regarding apple. and facebook is soaring a of first quarter profits nearly triple year over year. mobile ads, of course, strong. accounting for 59% of total ad revenue. accord

josh lipton explains why you should care about this chinese internet company. josh? only 15 years, it has exploded from just an idea to an e-commerce power house responsible for half the parcels delivered in china, and more than 60,000 transactions per second. jack mof founded alibaba in 1999 and is now preparing to take the company public in a hotly anticipated ipo. alibaba often compared to american e-commerce giants like amazon, but his business model is actually very different. alibaba does not directly sell goods. it operates websites to which consumers buy and sell goods with each other. alibaba, then, makes money from advertising, which accounts for the bulk of its revenue. in the final quarter of 2013, they generated revenue of $3.1 billion. that was a 66% jump year over year on the top line. analysts at cantor fitzgerald now peg its valuation at $184 billion. for investors, alibaba offers eck pose our to the chinese -- exposure to the chinese e-commerce market by 2020. the market is expected to be bigger in the u.s., britain, japan, germany, and france combi

josh lipton joins us. >> google just reporting, the street was looking here for 6.41 on revenue of 15.54ts 6.27 on 15.42 billion so a miss there on the bottom and the top. just digging through the numbers, paid clicks were up 6%. that actually is a bit shy of what the street was looking for. cpc's cost per clicker, the average amoudvertisers want to when they click on ads. google here missing on the bottom and the to. kelly, back to you. >> thank you, josh. >> want to get reaction from victor anthony, joins us, managing editor of tone "k" capital markets. you surprised? >> those judgments are in line with my estimates, so those numbers are good as far as i'm concerned. a lot more aggressive numbers out there on street so google missing those aggressive numbers i think will likely take the stocks down. paid clicks. it's a solid top line number for google. >> okay. just thinking through this here for a second. shares are moving lower by about 5%. you're saying that what happened was that the rest of the street was just too high, too optimistic here and that you still see good signs? >> yes

josh lipton is live in san jose with more. josh?expected to testify today. that really more than anything tells you how much now is at stake for apple and samsung. in this case, apple is alleging that samsung violated five key soft wear patents including ones that every iphone user knows well. that slide to unlock feature and the auto correct feature. the patents relate to apple's iphone 5 and samsung's gal lax xi 1rks3. grit ticks have charged that apple's demands ares excessive but sources at apple tell me, listen, this is some of the most innovative technologies. apple devoted a lot of time, hard work, and money to develop that slide to unlock feature. and they're not about to get ripped off by rivals. samsung is counter that it licensed a lot of this technology from google's android operating system if that's true then apple's complaint should be with google. in fact, google's andy ruben, the man who built google's android software, is on the witness list here. apple and samsung have been battling for years. two years ago in thi

josh lipton is live. >> e-commerce in china isn't just online shopping, it's a lifestyle, how the founderty. his company is exploding as it becomes and e-commerce powerhouse. the company often compared to amazon but the two companies have different business models. unlike amazon, it's a middleman operating websites consumers buy and sell goods from each other. alibaba makes money from advertising that accounts for the bulk of its revenue. wall street keeps ratcheting up alibaba and fitzgerald pegs it at $184 billion. dominating the chinese e-commerce market accounts for almost half of all parcel deliveries in china, almost 5 billion packages per year. there are more than 6,000 transactions every second on its website. business is drawing fast. in 2013, the final quarter they generated a 66.6 jump year-over-year. they are not free of criticism. complaints of counter fit products. the company is contributing resources to that issue. why are investors excited about the alibaba ipo, a way to get exposure to the chinese market. by 2020 that market will be bigger than the u.s., britain, germany

josh lipton spoke with cher wang about her success and vision for htc. r was a self-made billionaire who taught his daughter about the importance of hard work. wang also credits her christian faith as a source of her success. >> the bible says that humility comes before honor. and once you humble yourself, you want to learn, because there's a lot of stuff you can learn from, the surroundings, the people, and the people that are different from you. so to be able to observe, to listen, to be humble is also very important. >> now, wang co-founded htc in 1997. that company experienced rapid growth. by 2011, htc controlled 9% of the global smartphone market, and wang and her husband were the wealthiest people in taiwan, worth more than $3 billion. wang says that her mistakes in business have proved just as instructive as her achievements. she talks about the time back in the 1980s when she sold a product to a customer who was unable to pay for the merchandise. wang says that was a valuable lesson in the importance of knowing your customer. >> to understand you

josh lipton is in the valley with a check up on that. hey, josh? >> hey, carl. in the market according to the vcs i was talking to, a degree of bounce but a lot of red on the screen if you look at facebook, yahoo! yelp down 35% now from a recent high, but vcs are saying listen, nothing has really changed when it comes to the core fundamental trends driving tech right now. the move to social, mobile, cloud, and using big data and analytics to drive better evaluations and decisions, tech is still a smart place to commit capital they say if you can find the companies disrupting whole industries. think ubber and what it's doing with transportation and hospitality. vcs say they expect more acquisitions potentially, tech titans, cisco, ibm, oracle could be more aggressively on the hunt looking for those targets whose stock price has dropped. as for the ipo pipeline in silicon valley, menlo ventures tells me he expects demands to stay strong but ipo pricing could be impacted. darlsings like box he said could take a hit because of this pullback. back to you. >> it will