also, paul sweeney who covers netflix for bloomberg intelligence.hat do you make of these subscriber numbers? guest: they did beat the analyst predictions. but i think hastings is taking a little page or two out of the greek script, because he has serious debt problems. everybody is looking at the company's share price and subscriber growth, but they don't pay attention to the $9.6 billion in off-balance-sheet liabilities that netflix has. he is getting squeezed in content cost. it is not going anywhere except higher and higher, more than double the share price this year. he is that svengali of streaming, but there is no there. emily: you mentioned $9.8 billion in off-balance-sheet commitments to pay for original content. how much do we know for sure that amazon is actually paying to produce these hit shows like "house of cards"? guest: it is a huge number and getting bigger every quarter. if you talk to the company about this issue it is something investors are well aware of. investors are looking at it as a long-term story, whereby the subscriber

we are joined by paul sweeney. still with us the head of investment. nice to have you in town.pple earnings the darling of the tech sector. all about the smartphones and how much attention i should be paying to the apple watch. >> this is a big earnings number. investors are clearly discounting some pretty good numbers. it is still all about the phone. looking at 50 million units. it is the highest margin product on the platform. that clearly drive the bus. people want to start taking a look at the watch business. it is a small part of the business. they are looking at the next product. i think it's kind of early on at this stage. apple is going to lead the way probably. >> i can tell you the story over the last seven or eight years. you set they're saying, we need a new product line. smart phone sales kept going through the roof. do they really need the apple watch to succeed? >> i would say with the iphone i am really happy with the numbers. the cycle is a multiyear process. of course they will come with success. apple will come with success as well. i am not looking at the a

francine: let's bring in caroline hyde and paul sweeney. take for joining us.hat do you make of what we heard from apple. maybe they wanted too much. the share price fall is nothing compared to what they have taken in in the last 12 months. caroline: it is still the most valuable company in the world. we could see $66 billion wiped off if we see what happens in after-hours trade happened when trade opens today. $66 billion eradicated because they are not living up to the hopes of iphone sales. this is still there keep product. we still saw 4.5 million shipped, but people wanted more than that. they are used to a 10% growth quarter on quarter. in china there was a hint of worry they suddenly made railroads into china being sold over there. they say it could be a near-term speedbump over there. the watch is not selling enough. it is not enough to dissuade us that the iphone is where it is for the apple product points. manus: is this about what happens in the world of apple? and 18 months time, there is a speedbump in china. the iwatch sold more than the ipad. is

joining me now is my guest and paul sweeney from bloomberg intelligence who covers linkedin. but i want to start with neil. what do you think of the significance of these china numbers? has linkedin cracked the china market? guest: they are one of the few u.s. internet companies that can actually operate in china. they had about million users and they are growing rapidly. there's a huge opportunity for linkedin to expand its market by being able to operate in china. alix: one of the things we are looking closely at his mobile. what do you think the highlights are here? guest: this is an interesting quarter. i think most investors were hoping for no prizes after the astonishing disappointment last quarter where they brought guidance down. here, they put up a good quarter and take guidance back up so a roller coaster for shareholders but a much better turnaround led by mobile and led by their talent solutions business. looks like a solid quarter across the board and some of the changes they have made, maybe they have more confidence with lynda.com taking those numbers up after

you are just hearing from paul sweeney on bloomberg intelligence and there was a lot of pressure after a disappointing quarter last time around as linkedin was affected by the stronger dollar and weaker core business than it had been anticipating. it looks like the company is ray -- is raising it full forecast. increase, and increase nonetheless. and increase more significant in its were cast for earnings. it looks like it is forecasting earnings-per-share of $2.19. the quarter the company has just reported, revenue is coming in significantly above estimates. million is what analysts had been anticipating. this looks like a recovery quarter and you see the shares move up by about 12% in the after-hours. remember after the last word, shares fell on disappointment over its numbers. i'm looking at electronic arts also reporting and looking at the guidance for 2016. julie: what caught my eye was the guidance for the current quarter. earnings per share of $.40 whereas analyst were looking for $.66, so quite disappointing on that front. i'll give you an update in just a few minutes. thank yo

false when he is with us from bloomberg intelligence -- paul sweeney is with us from bloomberg intelligencewhat are we waiting for? paul: we're waiting for them to monetize these acquisitions, most notably whatsapp, instagram. mark zuckerberg is telling us let us grow, let us get north of one billion users each, then we will start making money for you. i thought this seemed a little interesting. brendan: networks that have fewer than one billion users, is that just a dig at twitter, or are there economics to that? paul: a, it is a dig to twitter the wii's all earlier in the week it's kind of stagnant but he is also trying to make the case to advertisers that listen, in order for social media plus one to be really need to be really big. that is a self-serving statement because facebook with one point 4 billion users is already big and is really getting a lot of attention. tom: i have been doing a lot of twitter and facebook to we talk about google biting twitter. and natural selection for facebook to acquire twitter and have the best of both worlds. to be that is a rational premium acquisiti

joining me now is neil and also paul sweeney from bloomberg intelligence who covers linkedin.nd we have steve from mountain view. i want to start with neil, though. what do you think of the significance of these china numbers? facebook and twitter are blocked, but has linkedin cracked the china market? guest: they are one of the few u.s. internet companies that can actually operate in china. last quarter they had about 6 million users. now they have 10 million users -- they are growing rapidly. there's a huge opportunity for linkedin to expand its market by being able to operate in china. emily: paul, what are the numbers standing out to you? one of the things we are looking closely at his mobile. -- is mobile. what do you think the highlights are here? paul: this was an interesting quarter. i think most investors were hoping for a know nothing can of quarter -- no surprises after the astonishing disappointment last quarter where they brought guidance down. here, they put up a good quarter and then they take guidance backup for the full year so -- back up for the full year, so

as you were hearing from paul sweeney of bloomberg intelligence, there was a lot of pressure on linkedinor this quarter after disappointing last time around. lincoln was affected by the stronger dollar as well as we go to court business than it had been anticipating. it looks like the company is now raising its forecast for the full year in terms of its revenue, looking at $2.94 billion. it was previously forecast 2.90 lead dollars. -- $2.9 billion. in its forecast for earnings for the full year it looks like it is forecasting earnings per share of $2.19. the estimate before was for $1.94. the company has reported, revenue coming in significantly above estimates, nearly $712 million, $680 million is what analysts had been anticipating. this looks like a recovery quarter for linkedin in terms of its reports. you are seeing the shares move up by 12% in the after hours straight after linkedin's last report, the shares fell more than 20% over disappointment at its numbers. alix: i'm looking at electronic arts. we're looking at the guidance for 2016. company's guidance is coming in below esti

paul sweeney from bloomberg intelligence.t bloomberg that there could be a deal in the air. the sale of the "financial times" is being explored. the sale could be valued at one billion pounds. we have brought in our deals reporter. he has said he would eat his hat -- is the price a bit rich? >> it is a really rich valuation , but we are talking about the brand. we are talking about equality trophy asset. a lot of media companies and investors with a lot of money will take a look at this. manus: in terms of the bidders it has got to be somebody with very deep pockets. run me through the potentials. >> one company we have heard looking at it is the german media company. that would be a good one to look into. other than that, other companies , french companies, european companies in the media space to u.k. companies to german media conglomerates. two north american, european asian, middle eastern. they are all going to take a look at this. manus: where would it fit best? that is the question. it is a great read. you've got to sa

tom: paul sweeney, thank you so much. we look at australia and latin america in this hour. have an important twitter question. cap it back. would you invest in seoulsoul cycle? anybody on wall street, read the red herring. they out google google from 2004. brendan, should we do this? brendan: we should get out of the break as cleanly as possible. tom: why can't i get 1000 shares? ♪ tom: good morning, everyone. bloomberg surveillance. friday morning and the morning must-read with brendan. brendan: looking at netflix this morning -- "netflix's global ambitions revitalize that of hbo. the prospect of vast -- has sacrificed -- tom: i did not know you were going to do this. netflix has changed in the last 60 days. it is like a global thing all of a sudden. brendan: they have different challenges in different continents. in europe, the dynamic is a lot like it is in the u.s. in asia, they are competing against piracy, and that is a different challenge. tom: don gimbel, you have lived this. is there a new religion on copyright in china? don: no. there is a lot of pressure to make

paul sweeney is here with more. an unexpected boost to amazon.ll about jeff bezos rating in his urge to flash cash? guest: if you are an amazon investor for the last several years you are eustis drunk topline revenue growth -- you are used to strong topline revenue growth. amazon is a company and jeff bezos is a ceo who has been adamant about reinvesting every dollar back into the business to make it more profitable long-term. what we had in this most recent quarter was dialing back on spending and that drove a huge eps beat. it showed the street that jeff bezos can deliver profit when he wants to. caroline: i want to show our viewers what actually happened after hours. a phenomenal spike. there market valuation is just gathering pace. they are now more valuable than walmart in terms of retail. how much do we attribute this to their e-commerce side of business and the cloud side? guest: it is starting to become a factor for investors. not just for amazon but some of the other tech companies. we saw some good numbers from sap and microsoft. amazon

let's get final thoughts from paul sweeney.like a huge price tag even bigger when you present in yen. paul: they were looking for something south of $1 billion. given the profits we are seeing pretty miniscule. they are not really buying for profit. they are buying the franchise value their only a handful of franchises that have that franchise value. there is a certain kind of french's value. we have seen in the past, the japanese are not shy about buying properties around the world. the go would've gotten a bigger discount the is ago. -- jonathan: you would've gotten a bigger discount three years ago. do you think japan is going to be a bigger player? : to the extent that the japanese economy does improve. perhaps we can see more aggressive this coming out coming out of japanese corporate spirit this -- japanese corporate. the nikkei did come out of nowhere. the newsrooms around the world including here, not many people were talking about nikkei. they came in at the very last 10 minutes of bidding and came in and got this deal

so much, emily chang plus paul sweeney a bloomberg intelligence. to tune in today at 4:30 p.m. eastern for more on linkedin's results. we will be looking at today's gdp. ♪ . . alix: we are moments away from the closing bell. i'm alix steel. joe: i'm joe weisenthal. [closing bell ringing] u.s. stocks fluctuating throughout the day with the s&p closing slightly higher and the dollar lower. joe: the question is "what'd you miss?" progress but slow progress -- the u.s. economy spins gently. what is a mean for the market? alix: mood matters -- why such a gap between the performance of americansets and social moods? we will ask the experts. joe: linkedin is about to announce its earnings as a push into education. begin withnt to stocks -- a wishy-washy day across the board. i should point out the dow closed between -- close above the 200 -- it closed below the 200 day moving average. onlities the best performer th

betty: paul sweeney, our u.s. -- on tom cruise and mission impossible.back. ♪ ♪ (ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring (don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. betty: it is 11:00 a.m. in new york, 4:00 p.m. in london. >> welcome to bloomberg "the bloomberg market day." shares are searching after sales proved better than analysts' estimates. you will meet the ceo of the travel reservation is nice and a moment. effective ebola vaccine from merc. primm: beijing will be the first city to ever host the summer and winter olympics. time to get ready for the winter of 2022 and artificial snow. ♪ betty: good morning. i am betty liu. primm: i am pimm fox. let's look at how markets are trading. let's look at stocks a little bit higher. the dow jones industrial average at 2/10 of a

jon: for more on tech we are joined by paul sweeney. james bevan is the chief investment officer at ccl a investment management. not your first rodeo. if i told you that accompany would report record third-quarter profits with a search and their best product with sales up 35%, would you expect it to be down in extended trading? guest: the stock had been up about 20% year to date and expectations probably got a little bit ahead of themselves. one of the concerns is that this remains a phone story. whenever you have the shipments come in less than what street looks for, that is a concern. sue put those two together and given what the stock had done earlier, it is set up for a little bit of a fall. this remains an iphone story and investors are looking for that next category. there is no data to suggest the watch will be it but it is very early in the story of the apple watch. it remains a phone story. jon: in terms of tech google whispered the words raining in costs. apple make people nervous by missing iphone estimates. you get these hug

anna: thank you very much, paul sweeney. charlie, waiting patiently. good to see you. picking up on something you wrote in your notes. you say that greece has now gone from chronic to no longer acute. is that how -- you are sort of putting it to one side. charlie: i suppose that robert being front and center in dominating all your thinking, it is still there and still a factor but it has moved away from a crisis point. we have seen this time and again in the european crisis. something happens, some sort of fix and then it all disappears and they negotiate for a while. you either achieve a resolution or you don't. then you come back to the same problem. there is a long way to go just to sort of get ourselves to the third bailout. then there is the whole issue of debt forgiveness. ryan: commodities have replaced greece in the headlines. charles: arguably, in a way, it is almost more important to the has long-term systemic macroeconomic effects. the immediate asset class implications, the dollar for example, and there is the obvious first round fix. for example, the oil p

paul sweeney was not invited, the director of north american research with bloomberg intelligence.junket, what would be your first question to the assembled? >> we have seen the trim and this amount of consolidation on distribution of media and comcast trying to get time warner cable -- what about the content players? tom: we saw that and then it fell apart. >> i have no idea how it came apart. a lot of these content layers need to think about getting bigger and stronger relative to the distribution part of it. how do they play in the digital world? that is the number one issue. tom: this goes back to goodwill and bad will, if every headline says this deal is created immediately -- in your world can they say that if they are playing with hugely valued stocks and they need a ton of cash. >> if you look back to the early 2000, that was not the case. companies destroyed value and one reason media have been strong out of the financial crisis is there have not been many deals. they have buyback -- they have bought back stocks and the pressure is on in the companies and investors are con

let's get caroline hyde and paul sweeney. great pleasure to have you. . let's continue the conversation with apple and what it is. caroline: it's phenomenal when you put it in perspective -- we could see 66 billion dollars worth of its market cap erased. in perspective, that is more than bmws entire market cap. it is a record third-quarter profit, as well -- many people are wondering why. yes, they still climbed 35%, but people want to see more, in excess of the 47.5 million. the sales forecast is for the next quarter -- that missed analyst estimates coming in at about $50 billion. what we are starting to worry about is the pace of growth. if we say $50 billion next quarter, that's only .8% growth. we had tim cook saying that china's turmoil is creating some near-term speed bumps. the issue is iphones are still their cash cow. what about the other products? the watch he spoke enthusiastically about it. tim cook: sales of the want to did exceed expectations, and they did so despite supply trailing demand at the end of the quarter. to give you a little addi

. -- matt: we have paul sweeney to talk about zuckerberg's plea for patients. he is asking investors to be patient for some of the lamer apps whatsapp and messenger. he spent a lot of money on these acquisitions most mode -- most notably $22 billion for whatsapp and $1 billion for instagram and so on. investors are saying, we need to see some revenue coming out of these acquisitions. we need to see some return on investment. his response yesterday was be patient. we are all about growing the user base before we really start trying to monetize the user base. are we any closer to understanding why he thought whatsapp was worth $19 billion when he is really switching everyone over to messenger? i used to use whatsapp before -- stephanie: everyone is using bloomberg messenger. no one is using facebook messenger in lieu of whatsapp. matt: i used whatsapp all the time before zuckerberg bought it and then he made messenger a second app on the phone and now i use messenger with all my european friends and so does everyone house and we do not use whatsapp anymore. >> ov