josh lipton has more on microsoft's move. >> reporter: investors knew job cuts were coming at microsoft but the big surprise is how many employees they are letting go. microsoft is cutting up to 18,000 jobs, that's 14% of the work force and double what wall street expected. most of the cuts are coming in the nokia division. microsoft bought nokia's phone business for 7 billion a year ago and cutting about half of its employees. >> it's a pretty bold move, and i think what it does is it signals that microsoft is not going to get on the slippery slope with nokia. they are actually going to trim the nokia cost structure substantially and that was something worrying investors that this acquisition could really dilute earnings going forward. it will have an impact but this will help mitigate that. >> reporter: in a memo to employees, the ceo said the first step to building the right organization for our ambitions is to reorganize the work force. we'll start with 14,000 cuts right away expected to be completed by next june. the restructuring will result in a pretax charge of $1.6 billion. mic

anurag, can microsoft still be on the cutting-edge if microsoft and windows are there two biggest thingsnvestors are looking to see whether the new ceo can push new blood into this behemoth that dominates operating systems and office. before it moves to cloud, can they really make it and compete aggressively with the likes of amazon and google? that will be the biggest question and challenge for the new ceo. >> anurag rana from bloomberg industries and editor-at-large cory johnson, thank you. peter teal known for his bold investments, so how does the fund choose his investments? one of the partners is here with us. ♪ >> welcome back to "bloomberg west." i'm emily chang. from investing in robots to 20th century space travel, founders fund has one of the most unique word folios. founded by paypal cofounder peter thiel, known for its bold bets and risky invest ends. what's behind their philosophy? jeff lewis joins us in studio. you guys are always investing in things that sound crazy, software for oil rigs, hampton creek foods trying to replace eggs in the food chain. how do you explain the

windows and microsoft office.u think shareholders will react to this? >> let's go much bigger and go macro. when we talk about what is going isin our economy, microsoft up against a lot of new competitors, companies like facebook, google. these are companies that do not have the same size staff microsoft's traditional competitors have had. the company's with much smaller employees and allow more revenue per employee. microsoft is up against that at a cost business. --n google and apple, it is you can kind of see them re-architecting themselves to against those new competitors. >> thank you so much. cory johnson, our editor at large and the opening bell is next. microsoft shares are trading higher. ♪ >> welcome back. it is 26 minutes past the hour. over television is on the markets. olivia sterns has the latest on futures right up to the open. >> hey there. drifting lower -- futures are drifting lower after the dow jones closed at a record high. intel was up nine percent. the 15th record high close for the dow so f

major job cuts coming at microsoft. the tech giant is planning its biggest round of layoffs in five years. people with inside knowledge say the cuts are likely coming in the nokia unit as well as in marketing. of innovation, johnson & johnson may not be the first name that comes to mind, but these days, the pharmaceutical giant is taking a page from the tech industry. like other big pharma companies, j&j used to develop drugs the old-fashioned way, internally. today the company is collaborating with outside startups, inviting them into their incubator lab in la jolla, california. as part of our special daylong coverage inside johnson & johnson, bloomberg sent carol massar to get an inside look at the company's innovation lab. take a look. >> could billion-dollar drugs come out of this process? >> we are indoubt. the incubator in la jolla, california. entrepreneurs are looking at everything. >> we're trying to come up with new molecules to treat diseases in a brand-new way. >> they are renting out lab , grantinghe incuba

people are excited at microsoft. he is trying to drive more innovation at microsoft.s bob said, the next few years will show as weather an end to end solution or modular works. microsoft was to take advantage of this modular world. nadella is moving there through services. i am very optimistic he could turn the ship. >> all right. thank you both for watching. we will be right back. ♪ >> welcome back to "bloomberg west." i am emily chang. and more questions about a uber driver on a high-speed chase. his latest ride in washington, d.c. was like an episode of "cops." the driver took off to avoid a taxi inspector and ran red lights, racing down the highway. he and a fellow passenger even tried to get the driver to slow down. the passengers got out when the driver was ordered on in a bit ramp. uber says the driver was fired. a kickstarter campaign to make potato salad seems to have lost nearly $30,000 overnight. on friday, it had raised over $37,000 to make potato salad. we reached out to the kickstarter for comment, but we did not get a response. and netflix is looking fo

people are more excited at microsoft. he is trying to drive more innovation at microsoft. as bob said, the next few years are going to show us basically whether an end-to-end solution or this modular world works. i think what microsoft wants to focus on is taking advantage of this modular world, and nadella is moving there through services. i'm very optimistic that he can turn the ship. both forght, thank you joining us. we will be right back. >> welcome back to "bloomberg west." i am emily chang. uber is facing more questions about her driver who took a wild ride on a high-speed chase. that is the lead story in today's "viral roundup." he said his latest ride in washington, d.c. was like an episode of "cops." it took off to avoid an inspector and ran red lights. he tried to get the driver to slow down. the passengers got out when the driver got cornered on an exit ramp. uber says the driver was fired. is the potato salad party over? ckstarter campaign to make a potato salad has lost $30,000 overnight. it had raised more than $70,000 to make a better potato salad. this num

apple and microsoft post results.rough the numbers, tell you what they mean for markets tomorrow. don't go anywhere! you're watching cnbc, first in business worldwide. developers are all about speeds and feeds. it's all about latency. it's all about how fast does it run. i often sit with enterprises who ask me about how mission critical and how's the performance of the cloud. and i tell them, if you can make gamers happy, you can make anybody happy. speed is made with the ibm cloud. the ibm cloud is the cloud for business. with a new volkswagen turbo. turbocharged reward card why are we so obsessed with turbo? because we like giving you power, but we also like giving you fuel efficiency. like the sporty jetta. and the turbocharged passat tdi® clean diesel. okay... and the iconic beetle... and the powerful tiguan... okay you can't forget the cc... guys, this is going to take a while. avo: hurry in and you can get a $1,000 turbocharged reward card when you lease a new 2014 jetta se for $199 a month. but parallel parking

think about microsoft.down swing for over a decade since missing the internet transition back in the turn of the new millennium. look at microsoft today, you got a ceo that's looking at it saying, look, i know what we used to do in the past. you know, i'm throughing that playbook out. if question don't get windows on every personal tab blet, i don' care, i sell to the office anyway. >> right. >> caller: there's radical change to drive the company going forward. we have had pc units decline for three years in a row with tablets eating their lunch. it's now getting better. >> do you add to your acquisition here? are you that confident? >> caller: well, what i want to see happen is have them report, talk about what the, you know, the forward strategy is in terms of reinvesting this, but the goal is to get bigger so the answer is, yes, but we have good news today, would like to get more information how they plan on reinvesting cost savings. >> i got to cut you off, but we'll see what they say on the conference

lennox plus open stack isn't very congenial with what microsoft wants to do and i think microsoft isvery challenged to figure out in an open stack world with players like hp and ibm how they operate and how they're successful there. >> overall, i'm getting the sense that you're skeptical right now. we have seen the stock with location of flows in some of the largest names right now. but if it look at where it's trading, six times forward earnings right now, it looks rich. >> well, microsoft just keeps chugging along. financially, me do very well. the challenge, though, is we're entering two areas where microsoft wants to win in mobility and cloud, but quite frankly, they're challenged in right now. so i think we're going to have to wait and see, what is the some of the key decisions that nadella makes to make them successful in a world of mobility and cloud that quite frankly their assets aren't very strong. >> yeah. and right now, he's not making a choice. as you quite rightly said, it almost seems like they need to specialize. you can't be everything to everyone right now and he's

beinghink microsoft is re-rated. it is not your grandma's microsoft.nally taking this company where they need to go. also, he does not wear the rose-colored glasses. he made the cuts where he needs to on nokia and that is why investors are buying into microsoft's story. >> he still has a non-core story. box and that makes you go really? >> sure, but rome was not built in a day. multi-year process. he is trying to change the historically bureaucratic organization and try to make it flatter. box strategically, will that make sense? that will be a veritable. satya nadella will start to change microsoft. >> crazy news, microsoft more of a growth stock than apple. thank you, daniel ives. still ahead, the guest you have been waiting for, pro golfer rickie fowler is "in the loop." he will talk about the future of golf and how he is trying to change it. that is coming up next. ♪ >> time for today's global outlook -- secretary of state john kerry and the yuan secretary-general are in tel aviv, hoping to stop the killing in gaza, but the israeli justice minister

>> i think microsoft is trying to transition. we're looking for more revenue coming from the cloud compute business. we want to see a shift to them embracing mobile more so. these are two huge areas growing in other industry. microsoft need to embrace that trend. there will be big focus in those two areas specifically. liz: let's get it from adam like beat on revenue but what about eps. they missed it appears earnings per share. let's dive into raw data. earnings pertheir was 55 cents when street was expecting 60 cents. on revenue side, liz, 23.8 billion where the street was expecting 23.0, essentially 23 billion. a beat on revenue because they're reporting a little different than they have in the past. fourth quarter commercial licenses revenue 4.2 billion, commercial revenue, 2.2 billion. devices and consumer licensing revenue, 4.69 billion. lastly fourth quarter devices consumer other revenue, 1.88 billion. headlining this, 55 cents earning per share, street expecting 60 on revenue side, complete picture, 23.8 billion, street

turning to microsoft, microsoft announced the largest mass lay f in its company history as new c.e.o.atya nadella tries to remake the software giants -- giant. they say they will eliminate as ny a18 p,000 jobs over the year. more than 12,000 cuts are coming in the newly acquired nokia department. nadella writes this. and for more on what the moves mean for the future, we're joins by mat mcgill wayne from seattle via skype. you know satya nadella. what do you make of these layoffs now? >> i think it's less a focus on layoffs and a lot more on the quote that you just gave. we've heard satya redefine the strategy at a broad level, about platforms and productivity. we started to see a change in the culture and we're really seeing that up here in seattle, too. it's exciting, a much richer focus on looking externally,enter acting with the communities out there, including the open source community. this set of layoffs is really about simplifying, streamlining and helping the company execute now that they have a shift in strategy and greater external focus. >> most of the cuts are nokia alone

more from beijing. >> reporter: china has confirmed an investigation into microsoft. the state administration for industry and commerce has said that the software giant is suspected of a monopoly. the agency sited compatibility issues for the windows, os and office software and said about 100 officers raided microsoft's offices in various cities across china to gather more information into the way microsoft bundles the software and adds security features. the inspectors are investigating some of the company's senior management and other personnel in china. the government said some employees in question are out of contact and is urging microsoft to cooperate with the authorities. microsoft confirmed the official visits on monday and said it was happy to answer the government's questions. microsoft is the latest american tech firm to face scrutiny after washington's repeated acquisitions of chinese cyber theft. >>> we begin tonight's market focus with strong after the bell results from amgen. they saw better than expected earnings helped by the arthritis drug. they anno

instead, microsoft receives the ip addresses to identify the victims. we give domestic addresses to internet providers in the united states so they can alert their customers. we give the rest of the computer response teams referred to as sirtes. the owners are then notified of the infeks and offers assistance in cleaning their computers. microsoft is working to protect millions of people and their computers against malicious cyber criminals. this has led to the disruption of some of the most menacing threats. cyber criminals continue to evolve their tactics. they keep developing new sophisticated tools to profit from the online chaos they create. we remain committed to working with other companies and law enforcement to disrupt them and make a internet a more trusted and secure environment for everyone. thank you for your time, senator and i am happy to answer any questions you may have. >> chairman, thank you for the opportunity to testify today. i'm especially pleased to be here with you again to focus attention on botnets and cyber crime. as the larg

microsoft, big news, a painful, positive step. microsoft announces up to 18,000 job cuts.eepest in the company's history. 14% of the workforce mostly in the nokia business. stock is up $45 in the pre-market settling back a bit but still up more than a percentage point today. jon, you've been talking about it this morning. next best thing to getting rid of the nokia business altogether? >> hard to call layoffs of that scale that affect people and families great, but from a structural perspective, look, even when two successful companies get together there are layoffs. nokia was not successful. you've got to expect this. look what google did to motorola. cut much more, but did it quietly and gradually. i think there's something to be said for doing this relatively quickly and then the other significant part, the 5,500 cuts here that are not part of nokia. the middle management clearout. i think trying to fix that part of microsoft the culture involving a lot of political back-stabbing and turf outlined, slowing the company down. if he's able to do that, this will be an impor

now it's qualcomm and microsoft.hat's the big picture that tech company, maybe companies in general, should be taking away from the way that china is pressuring these american companies? >> don't forget cisco and emc, add them as well. what the chinese have fundamentally done over the last five or six year, shifted their strategy, attracting investment, growing think economy to what they call an indigenous innovation strategy, fundamentally it's about prioritizing and favoring domestic chinese firms. the chinese have asset goal, for example, that in 159 ye years t want to be the world's leader in semiconductors, putting massive amounts of money into this, favoring their own state-owned enterprises. part of that strategy is to take down u.s. companies, particularly foreign technology companies which are mostly u.s., to try to get, weaken them and then also give them, have them give preferences to chinese companies. for example, in the qualcomm case, it's to license ip at a lower rate. the microsoft case, probably arou

be looking at those numbers. >> talk about microsoft.e have not heard how much that will save the company. >> we might get more of an indication. how much it will cost, let's talk about what difference it will make in terms of flexibility. people want to see bottom line growth and topline growth at microsoft. that ramped up pressure. so far, he is getting the benefit of the doubt. his stock is up. >> what does it imply that the company is moving fast enough to not changing fast enough? .> of course not he recognizes that. quickerteve ballmer out than we might have expected. understated, he is an engineer, getting back to his engineering roots. he is focusing on a big shift in technology where people are focusing on getting their technology in a different way. ofis not just a matter taking them on your server. microsoft has fundamentally rethink the way it does things. >> thank you so much. we will definitely look at the numbers. when we get back, we will talk about americans investing in the 401(k). you will be surprised. ♪ >> you are wa

and microsoft has a lot of change. but so does apple. and, well, they have a lot of potential change. i think investors would like to hear news of what they have next. and usually that's not what they do in earnings reports. but we'll see tomorrow. >> and what are you expecting? why don't you take apple first, since it's sort of a head line stock, not that microsoft isn't. >> sure. well, i think it's more accessible to more people, regular investors, because they probably have at least one apple device. and that's the thing that's going to drive this stock. how many phones were sold? and how many ipads were sold? last quarter, ipads were a little disappointing, so i think the street is really going to be looking at that number. >> you know, kim, we also, of course, have that nokia acquisition for microsoft. and we have some layoffs that are coming from microsoft. it seems to me that that could really kind of be confusing in the report. there's going to be a lot to kind of separate out to get net/net what microsoft's performance was in th

in microsoft and apple have their orderly report cards. sales were strong, but it certainly hit the bottom line. we will talk more about that in a moment, and let look at apple and their fiscal third order results. a 12% rise in net income, sales up six percent, more than $37 billion. ipad sales falling for the second straight quarter, subquestion is, are these good enough for now? and we have a guest in the newsroom as well as in minneapolis. both of these guys have been covering apple for sometimes. what was the big thing that jumped out at you, if anything? >> two things. the gross margin was much better than expected, and that was a huge concern months ago, so that is better. and then they have a new product line, new categories, products and nurses in the backend of 2014, so they started this almost one year ago, and this is a critical window now in the next six months for them to get some of those products out, so i think that is the real take away. >> let me ask you about gross margin. that was a number that jumped out at me, as wel

microsoft think so.g into this story with microsoft's general counsel coming up. ♪ >> welcome back to "bloomberg west." i'm emily chang. argentina's economic minister has been holding a press conference in new york after the s&p declared he south american country in default. what are the potential privacy risks involved? joining me now is the cofounder and ceo, and our editor at large. how does this work? i can tell when my husband leaves work? >> we don't like to think of ourselves as a tracking app, we are an app that makes communication easier. >> location sharing is core to it, but when people think tracking, they think big brother. we just give alerts when someone leaves an office. the word tracking almost never comes up, it is about peace of mind, making lives easier. sometimes there are skeptics. but try with your family and see. >> it is something that can be very valuable. if the government wanted to find you. >> in terms of government sharing without a legal subpoena, we do not share informatio

it's a critical period for microsoft.giving them a smoke screen in terms of the renaissance, he has to show some tal lons and numbers. as we head into 2015, it comes down to cloud. if nadella is not able to do that, to that point i think it will be tough for the stock to move much higher. when you look in the clouds, you see that shadow, it's nokia, if nadella is up at night. he's thinking of the nokia business. that's the key to turning this around. >> he talks about a five handle. he is looking at a 17 tiles calendar year 15 multiple him dan, you think we see a five handle? sample not any time soon it was my honeymoon as well as his was. this has been amazing. >> i don't know if that's more of a judgment on your honeymoon or his. >> all of a sudden the stock is up 20% in the last whatever, i mean, all the stuff, nokia, they shouldn't be there. you know the cloud stuff, he was leading the cloud. >> he was ahead of the cloud. so i don't really understand all of a sudden why we will place the highest multiple on this stock

microsoft now has 125,000 workers. analyst rick sherman speculated the company could cut 5% to 10% of staff which could be between 6200 and 12,000 people. microsoft's german trading session lower by 0.4%. >>> now, we had a decision from the bank of japan earlier today and it's steady as she goes for the world's largest economy. the bank of japan decided to maintain its current stimulus program that has slightly cut its forecast for the current fiscal year. the bank believes inflation will approach a 3% target next year. the bank of japan thinks the pain of the sales hike will continue going forward. >>> beijing steps up efforts to pump more money into its banking system and pressed banks to loan more. that figure, nearly 20% more than the market was anticipating. but investors remain cautious about the world's second largest economy. direct investment did rise in june, but barely. up just 0.2% from a year earlier. let's give you a look at what's on the agenda in asia tomorrow. lots of data out of china. we'll get q2 gd

kind of in trouble over the long term microsoft population is decreasing. thank you that's all for now we love hearing from music please check out our facebook page facebook dot com slash boom bust our team and please tweet us at any at edward and h. from all of us here at boom bust thank you for watching we'll see you next time the bank. cross-talk rules in effect that means you can jump in anytime you want. your friend post a photo from a vacation you can't. call it different. the boss repeats the same old joke of course. your ex-girlfriend still tends to richardson poetry keep count norris. we post only what really matters at r.t. to your facebook u. street he was a two time governor of a border state former u.s. ambassador to the u.n. bill richardson joins us with candid comments on immigration international turmoil and the lay of the u.s. spoil the landscape all next on politicking. politicking i'm larry king with all its having in the world today and in the united states there are few people better qualified to assess these issues then my old friend o

." >> microsoft goes on a crash diet.he ceo is cutting as many as 18,000 jobs, the most in company history. >> treasury secretary jack lew calls on corporate america to quit moving overseas in search of lower taxes. we will talk about it with president bush's former chief economist. to ease thea tries pain of a record drought by imposing fines on water wasters. you are watching "market makers ." it is a thursday in new york city. i'm erik schatzker. >> i'm stephanie ruhle. let's talk about wall street. times it be the best of and the worst of times at the same time? that is the question for wall second-quarter earnings season winds down. quantitative easing is still crimping profits, new revenue is still scarce, but most of the big banks are lending more and cutting costs. our contribute in editor with us andskype says it is a -- paul miller is with us from greater dcaa paul, i suspect you are not so inclined to agree with bill. do you see positive signs? >> we do see positive signs. i went into the second quarter thinkin

microsoft is never been particularly inventive.ve taken the software to make it mainstream and they have gone head-to-head to lotus, oracle, and just build better products, winning marking share, becoming prominent. in cloud, they are a little late to the space in the competitors are much harder. amazon web servers is a market leader. it is odd when a bookseller becomes a leader. the computer software company is lagging. got much more established competition. >> speaking of the bookseller, as you demote them to -- [laughter] >> they report today and they are growing on the back of the crowd does this. disappointingly, they do not report it as a separate line item so we do not know how that business is doing and we can only speculate. it is in with their credit card business as well as advertising services business. it all gets along 10. are they putting together the echo system around the media and really building something -- are they really building the ecosystem around the media? fire phone, fire hd, etc. that is the commentary

. >>> microsoft says it's prepared to lay off as many as 18,000 workers.his would be the largest layoff in microsoft's history, from a company that had $20 billion in sales in the first three months of this year. cnn business correspondent alison kosik is at the new york stock exchange to tell us more. >> microsoft is trying to be a leaner tech giant. the ceo announces the cuts this morning and says the first step to building the right organization for our ambitions is to realign our workforce, the overall results of these changes will be more productive and impactful teams across microsoft. the company has 127,000 employees, amounting to 14% of its workforce. it got about 25,000 of the employees after it bought nokia back in september and the biggest chunk of these cuts actually comes from nokia, amounts to about 12,500 workers. some of those positions are professional, the other are factory workers. just keep this in mind, this sounds shocking the 18,000 but it's very common for companies to cut jobs when they acquire another company, but the thing is, m

caught up in trouble over the long term microsoft population is decreasing. thank you that's all for now we love hearing from music we'll check out our facebook page facebook dot com slash boom bust our team and please tweet us at any at edward and h. from all of us here at them both thank you for watching we'll see you next time the bone. washington well it's a mess that is being stressed out in the latest numbers and the media can. offer so you are going to the issues that actually doesn't do too much for our revenue line tech agriculture giant takes on a seventy six year old american farmer in the studio fallout do you think this is going to create for the cia do you think this is what's triggering the race for so long to stick but it's also the largest debtor nation. breaking the set is mostly about alternatives to the status quo i want to give you some points to working toward the american dream the next they were just trying to survive it's time for americans and lawmakers are forced to wake up and start talking about the real causes of. so you put all

kind of in trouble over the long term microsoft population is to say. thank you that's all for now we love hearing from music we'll check out our facebook page facebook dot com slash boom bust our team and please tweet us at any at edward and h. from all of us here at boom bust thank you for watching we'll see you next time to buy. and. i would rather ask questions to people than positions of power instead of speaking on their behalf and that's why you can find my show larry king now right here on our t.v. question for. well . technology innovation all the developments around russia we. covered. i'm abby martin the stories we cover here we're not going to hear any rights other big story that i answer that while sometimes a reason they don't want you to know that i am. now let's break the set. i. was. joining us here and i see international i live in moscow my colleague sean thomas you've been here if i was continuing with the breaking news coverage certainly it is eight o'clock here in the morning in moscow seven o'clock in ukraine where this incident t

microsoft still prints money. see how much money they printed in the last quarter. >> how much of this is about absorbing nokia? >> some of this is nokia, but it is also about -- before, microsoft would have planning, testers, and the actual developers. they are thinking about having the program developers for the cloud develop the program and fix any bugs. this is not all about nokia. this is about streamlining their testing process and leading to some job cuts. down a fair bit today. what is the story. >> they missed their estimates. they had a profit warning out for 2014. bit,imbed back up a little but that is what happens to your shares. these are satellite tracks. the nsa is eavesdropping. they are getting ready for the big arrival of the cup. that will be quite a scene in berlin. the same place where obama gave one of his speeches. the couple be presented on the other side. cup will be presented on the other side. >> if you cannot be out there celebrating germany's when. -- win. will the world's most expensi

a new window into microsoft's future.eo breaking from former ceo steve ballmer and saying the company will no longer be focused on devices and and services. also hinting its huge shakeup is in the cards. when investors go on for the right? we will have the answer. and winning the lottery, that's how kate afternoon, anderson were discovered. a world cup ban from belgium. he just landed a l'oreal modeling contract. what is he doing to make the most of her 50 minutes of fame? can done to the closing starts right now. >> hello. it is the last hour trading and it is a turnaround thursday after a big selloff really miss session. we will take a look at what happened. the major industries are still in the red and we are well above the lows of the day. check out the dow right now. i one point the dow was down as much as 180 points. now, we are down 81 points. i think we can consider this a victory and much of the climb was when nonpoor economic data coming out of europe. so, we will watch the last hour of trading, but this is the

microsoft shares hit their highest levels this week since march of 2000. some traders think the run could be over. dan nathan is breaking down the trades at the smart board. dan? >> interesting they broke out to the 15-year highs, and today what was interesting, stock was up in sympathy with intel up 8% at one point, but microsoft settled in a bit, and, today, the stock underperformed the market, nasdaq up 1.5%, and the option volume ran really high, two times average daily. there was a trade in the morning what looked like a buyer of 12,000 of the august 48 calls. this is when the stock was 44.5. it was a bullish trade, but then 23,000 of them traded and closed 14 cents. it could have been a seller. there was a lot of options activity, like i said, hard to tell, but if you think about it, you know, that could be a holder looking for yield, saying the stock is not going higher. you see the move, just this week, had a massive breakout to the 15-year highs, kept going, and then it came back. there was a lot of news in it. when you look at it, i remember this

microsoft is just the opposite.price movement whether they meet or beat the whisper number. liz: okay, and finally facebook which reports tomorrow. this is a much narrower gap. >> they've only been public for eight quarters, so we have eight quarters' worth of information, but there are some keys. it's a 33 credibility whisper number, a penny above analyst estimates. but they've met or topped the whisper number in all eight quarters since they've been public. more importantly, they've topped the whisper number by an average of two cents for the past eight quarters but topped it by three cents, over three cents in the past four quarters. so they're spreading, they're getting away each from the whisper number. this might be conservative. liz: well, i remember just living and dying by your numbers back during the dot.com bubble and then implosion, and you always seemed to be right at least most of the time, so if people want to subscribe, is it whispernumber.com? >> whispernumber.com. it's a free site to register, we d

microsoft is squeezed out. now you have the two ends winning. >> go-ahead. >> the average selling price of an ad -- iphone was 500 51 dollars. that is the lowest asp apple has had with the iphone. there is a blended revenue. it is lower than ever. we will see what happens with the next device. like.sps are they are abutting the price slide little bit and i think they recognize they would rather it 30% marketl share and seven percent of the profits. the android with seven percent -- 7% market share. attention to the ipad in the ipad mini. >> apple released the ipad and ipad mini almost a year ago. we will see updates to that coming out. -- ipad units were down year-over-year but are we going to see that increase, maybe as the ad touch id to it and that becomes part of the ecosystem. iphone sales going up and with larger screen iphones perhaps being the next thing, the high-end android market is dominated i larger screen phones or smaller tablets. iphone cut more into sales? possibly. it will cut into the higher

has dominance in enterprise, but the reason microsoft is microsoft comes down to xl. -- excel.re are a million macros that have been built for excel. that is their wheelhouse. i think they will go back to business utility. they will kill it. aret an open platform, or you locked into it? he is like from the future. life is enterprise the only business you care about? >> i was in business utility. mom and dad, very small business, all the way to global. >> what do you say? >> i think enterprise has to be their primary focus, but they cannot neglect the consumer business. if you look at the growth in the way smart phones and tablets are being used in small business, in enterprise, it is all driven from consumers making choices about the devices they want to use and the services attached to them. what apple just did with ibm. that is a pure, unadulterated arrow at the heart of the enterprise, to consummate consumer-driven desire for devices with enterprise-quality applications and services. >> there is one difference. say, whaters, let's apple products. they want their employees --

i are covering the latest tech stories of this past week and we're looking into everything from microsoft to amazon from a recent latest acquisition you won't want to miss moment and it all starts right now. with. our lead story today. now why have consistently and loudly voiced my opinion about facebook i'm not a fan today i'm giving them nothing but congratulatory praise thursday facebook stock skyrocketed as much as seven point six percent to an intraday high of almost seventy seven dollars given the company a total market cap of one hundred ninety seven billion dollars that's equivalent to the combined values of both u.b.s. and american express it's not small now when measured by market cap facebook is now the fourteenth most valuable company on the s. and p. five hundred and in order to surpass a market capitalization of two hundred billion dollars the stock would need to be at seventy seven dollars and ninety four cents trading at that number which you could very well do now facebook stock is up more than one hundred eighty percent over the past year and the social network has been

how involved are you on a day-to-day basis with microsoft?ll, i am on the board, and the board is doing some important work right now. the foundation is the biggest part of my time, but then i put part-time work in to help as a board member. >> are you involved at all -- or how involved are you with the search for the new chief executive? >> the board is working on that. there is nothing new to say. >> we had the fortune of having the mayor come back to this company, and we are happy to have him back at bloomberg. bill, has that ever hit your vision in the future of ever going back to microsoft full-time? >> well, my full-time work will be the foundation for the rest of my life. my wife, melinda, and i are enjoying that. i get to do it in depth. i am not going to change that. i will help out part-time. >> mike, tell me how you think. in the 12 years you have been in public office, technology, the industry itself has changed dramatically. new pioneers that follow in the footsteps of bill gates, give me your take on the state of technology. >>

microsoft xbox one will soon be available in mainland china.e the first gaming console to be released since the end of a 14-year-long government ban. starting today and through july 30th, china's second biggest e-commerce platform, jd.com, will accept pre-orders via ten cent holdings mobile qq, jo ling kent knows all about this, but this has got to be huge for microsoft. >> this is huge. liz: they beat sony to the punch. >> they did, and during a very sensitive time. but, first, we have some developing news on this. microsoft being investigated by one of the head authorities for doing business in china right now. microsoft confirming to fox business they are being investigated, they will not explain why or any of the reasons, but they say they are fully -- liz: who's the organization behind -- >> it's the main governing body that governs how companies, foreign companies do business in china. what's interesting here is we're coming off of, obviously, edward snowden and the leagues and his harboring in hong kong, but the department of justice nam