paypal over the next 3, 5, 10 years.mily: that was my interview with john donahoe. ceo of ebay until midnight tonight. i want to bring mark back into this. do you think the spinoff is good for both companies? mark: i do not think it necessarily providing a lot of greater disclosure for investors. this it was a transparent company to begin with. you have two assets going in different directions. ebay is ex-growth. they are going to be invested in differently. it is a very different investor base for both companies. it is a recognition by the ebay board and that these are fundamentally different businesses, and ebay no longer had growth ahead of it. emily: everybody is talking about paypal as an acquisition target, some people say ebay could be more of an acquisition target. will they both remain independent companies? >> paypal is trading at 25 times earnings. that we will see on monday and tuesday. that makes it harder for a lot of companies to legitimately make that deal work. but there is a much broader range of compan

you've got the paypal mafia. want to put them on the board not just for what they did at paypal, but what they've done since. elon musk, reid hoffman, chad hurley -- the list just goes on and on of extraordinarily accomplished people who are still very involved in silicon valley. i don't know how you don't ask those people to be on the board, or at least have one of those people on the board, because it is important to have people understand the paypal product. look is that who they replaced them with. i was looking at the board members. there was a guy who was ceo of freddie mac during the housing bust. i guess the guy who was ceo of lehman brothers wasn't available. it doesn't make sense. emily: what's your take on this, as somebody who worked at paypal? cameron: i think it's a great move. competition is heating up. payments are super hot. emerging markets are the area of focus for paypal. i think that this move makes them independent and they can move much more nimbly and quickly to counter what some of these

coming up, ebay and paypal prepare to split. will not so secret weapon youtube and i will be visited by maker studio founder danny. we have all of the details on a new super fast offering from elon musk. take a look at the jump on this chart. today, the search giant adding 65 billion to its cap. today's gains pushed the company's volume past microsoft and witches were -- which is worth three and $77 billion. google is not the only stock having a great day today. apparently they have a google algorithm traffic boost. there is somewhat wild stuff going on in the market. i know that google beat for a while, but were you expecting this jimp? >> investors have been neutral and for the time in five years operating margins were up year. it is an inflection point high single-digit, low double-digit sure. scarlet: netflix, facebook amazon, what is going on? >> they were oversold. and then we had a series of orders that should really inflection for the when it comes to subscribers, google cost profitability. we have had good fundamental n

paypal is at 30 times next year.t 50, it would be 36 times next year and 55 dollar price, now you're starting to talk about a multiple of 40. that's a little bit of a nose bleed. what's the comparison? paypal is fairly unique as a rapidly growing tech and payments company with a beautiful balance sheet. we know they traded more than 23 times next year's earnings estimate which means it's trading at a premium but that's okay. paypal delivered revenue growth in the high teens. they have revenue growth in the single digits. that suggests they deserve a traded premium. the question is how much of one? we're trying to solve for the price to earnings multiple situation well before paypal acquired xoom it was trading at 34.2 times next year's earnings estimates. so maybe that is a better comparison. if we value paypal like xoom before the takeover bid using that same low ball 136 earning estimate paypal comes out at 46.50. of course it paid 42 times erngs and while that seems nose bleed expensive that puts paypal at 57. i'm

paypal.rises 7% in the first day of trading as an independent company. people have had the opportunity to buy on an issued basis. just looking at a report that ebay is making its first acquisition as independent company. today.ocks are up-to-date bloomberg intelligence has this chart for us which shows volume growth of paypal up here versus the traditional payment companies. paypal has seen volume growth 28% of its last report. 12%,he other providers, 10%, 7%. you are getting growth in volume here. that is a good thing. on an absolute basis, paypal is still much smaller. $228 billion in payment volume. that figure for recent -- you flip the lines here. -- fiscalr physical 2 2014. it is still dwarfed by the other major payment providers, particularly visa. -- wanted toercard check on the stocks because both are trading at a record today. the price targets on both stocks were raised to $81 for visa and $105 per mastercard. some of ar reasons, currency headwinds have abated for the payment proce

there is a lot of interest in paypal.want to focus on is creating a great company going forward focus on customers, focus on what customers need. if we can do that, hopefully it will be a great investment for all shareholders. emily: what about carl specifically? have you specifically talk? ed? dan: we have not specifically talk. i have been on a roadshow talking to investors right now getting their feedback, learning what they expect from us what growth opportunities they have for us. it has been tremendously valuable for both parties. emily: are you worried about potential? dan: not really. they all want great value to be delivered for customers. as long as we stay focused on that that is a great thing for us to do. emily: and a lot of people talk about paypal as an acquisition target now that it is separate from ebay. alibaba and google would love to buy it. what do you think will happen? dan: devon is going to lead a fantastic company there. we were set up to really capitalize on the changing chessboard that is going

paypal is on track to officially separate from ebay today with paypal shares starting to trade mondaypaypal may have started as a digital wallet that is not just for your grandfathers palmpilot. mark: what is that? emily chang explains the functions you are probably using t.d don't even know it areaemi y emily: here at hole filled -- at whole foods, the braintree technology powers every single apple pay transaction. thank you. , inputhold my phone here the pass code, and that's it. and there's more -- powerstechnology also transactions for air b&b, home depot, apps like hotel tonight, munchers and others. you can use your paypal account to order and uver. let me just call my car home so i can cook dinner. betty: i have to grow grocery shopping this weekend. thank you for the reminder. emily joins us now from san francisco. what is the vision they are relating out -- laying out with this split? i highly recommend work and grocery shopping at the same time. dan shulman is talking about making transferring money easier which is a problem with international challenges. it's about crossing

you might use paypal once a week. how relevant is paypal to you as a customer?a: not relevant until it becomes part of your normal local commerce expands. they have a lot of competitive advantages. it is a brand that you know and trust. paypal has not reported a huge security breach yet. erik: this is true. olivia: the brand i associate with secure transactions. erik: this is where i say goodbye. i will see you tomorrow. cubaa: still ahead, getting ready to raise its flag at the nbc and washington, d.c. we will discuss what normal relations with light between the u.s. and cuba. ♪ this is a great place to work. not because they have yoga meetings and a juice bar. because they're getting comcast business internet. comcast business offers convenient installation appointments that work around your schedule. and it takes- done. - about an hour. get reliable internet that's up to five times faster than dsl from the phone company. call 800-501-6000 to switch today. perks are nice. but the best thing you can give your business is comcast business. comcast business. buil

ebay and paypal are about to split up but will paypal remain independent after the breakup? we will hear from john donovan. ♪ brendan: welcome back to the bloomberg market day. pimm: it is time to go where? brendan: julie hyman will take us through the market. pimm: you said you will talk about technology. brendan: there are two kinds of google shares? julie: that's right. the nasdaq is the outperform or today. it is in large part to google but they are not the only one. facebook is at a record today and so was amazon. we are definitely seeing a big used in google shares on the back of earnings but these other tech companies are also rallying to record levels. buts a day of technology you could argue it has been a year of technology. look at the three major averages and what we have seen for the year to date. does not matter which line is which. they reach their records back in mid-may but the nasdaq is only at its record now. it's at a record again today and yesterday. if you look at the relative performance, the dow is up 1.3%, up 1.3% and the nasdaq is up 9.6% so there is

remember, he remains on the paypal board and will remain chairman of paypal, but there are less than of companies, probably, that could actually buy paypal at the market cap that we are potentially looking at. google certainly has the money. money, certainly has the and it would be a great entry point onto the international stage, as they have been trying to do, but there are also regulatory issues with both companies. it seems it would be difficult to get a deal done, despite some companies that may want to own paypal. in terms of the way this is going to play out, right now, we've been looking at the wind issued trades, trades that have already been executed but will only go through on the day of the split, which happens monday, and we are looking right now at a potential $48 billion paypal, 33 billion dollars for ebay. this could change over the weekend, but this is what we are using as a guide to see how these companies could open on monday. much.thank you so our coverage continues all day monday on bloomberg television and bloomberg.com. emily will take a closer look to show how

he is the author of the paypal wars book. he is a former marketing executive at paypal.ll ahead, the security council endorses the iran nuclear deal. we have some perspective. ♪ scarlet: welcome back. i'm scarlet fu. let's look at some of the top stories across the terminal. we've got a big takeover today in the solar energy business. a company is buying for $2.2 billion. the deal let's sun edison expand in residential and commercial rooftops. harper lee's new novel sets a record. they sold more than 1.1 million copies of "go set a watchman." it's the fastest selling book in the company's history. it was never published. a russian billionaire says he wants to find life e.on letters. he's putting his money where his mouth is. he's pledging $100 million to fund a hunt for alien civilizations. his project will be the biggest so far for search for intelligent life. he made his billions betting on internet companies. he was an early investor in a facebook and twitter. those are your top stories. the un security council voted in favor of the iran nuclear deal, incurbs their pr

that is a criticism of paypal.uct has not evolved and is not a long-term strategy to keep fighting thing. a evolution dealt with the social aspect of payments. mily: all of the kids out there are using venmo. apparently. it is all the rage. it is a very social and. experience.al the fact that payments have not changed all that much in the past 10 years, we all still pull out our credit card, that is a huge opportunity for somebody. it is whether any of these companies apple or google or paypal can take advantage of it. was: evercore partners concerned about paypal keeping its relevancy. 169 customers, but there are billions of people out there and apple pay is so easy and already has credit card information for all of us who ecosystem so paypal that have an uphill battle at the point in mobile will be the front line. a good stuff. good stuff. emily joining us. ibm to look for when reports. the number one number that you need to know. ♪ alix: ibm is reporting the second quarter financial results moments away amid a

says paypal is just a teenager. can daniel shulman shake off the old agate from the past and take this forward? people are talking about apple pay and there is google payment. there are other companies and can paypal compete in that landscape? payment has not changed in 10 years. you still take out your credit thator in some people say payment is at an inflection point in the question is whether paypal can capitalize. scarlett: we will see what dan shulman has to say next time. thank you so much for joining us. betty: much more ahead in the next half hour -- we will have the latest on the hackers who broke into the ashley madison website. that is the one we get to cheat on your spouse. find out how much information they obtained about the sites users. betty: scarlett: i'm glad you identified that. the growthl you how of technology is affecting the real estate market around the u.s.. our guest will be goal marcus. ♪ scarlet: it looks beautiful out there but it is boiling way hot. betty: our hair will never hold up. s

our special, inside paypal. .e booked the new ceo of paypal i asked him about competition and some of very issues, and he suggested health advantage is that it remains neutral. take a listen to what he told me. >> one of the things we have is truly an agnostic platform. we integrate for merchants any type of payment for them, not just a paypal digital wallet, which has 100 69 million customers across the integrate we also apple pay in other forms of payment as well. emily: so, paypal works with these platforms. it's interesting to her from visa today that visa doesn't think of paypal is neutral territory. i wonder how that could undermine paypal's future. we are going to be digging down in this special about how paypal serves as both a partner and a competitor to many of these companies. to it.ooking forward you can catch more of emily on "bloomberg west" coming up at 4:30 p.m. eastern. take a closer look at paypal's split from the set tonight. totter is getting ready report second-quarter earnings. will the results give the company the boost it has been waiting for? ♪ alix: twitter i

paypal has a lot of work to do. to focus its vision on trying to eliminate players within the organization, bureaucracy that slowed itself down. and a company whose systems were built for the desktop pc area. i'm not sure companies have always understood that. they look at paypal's payments volume and it's an impressive number. to get them to where they want to be, part of the reason they bought braintree and that work isn't done. >> the question is being asked what would paypal look like if it wasn't under the ebay umbrella? some say maybe it kept it from growing as fast as it could as an agnostic payment platform. the bulk of those is in things nobody heard of. braintree and the company needs to establish a consumer brand, be at scale so they're able to go to other merchants and place who is have not accepted them and use the consumer engagement. otherwise it's just a commodity processor like a stripe, like so many competitors they have. >> after all those years of saying why don't they bust out paypal, we'll see

scarlet: and paypal once to be part of that experience.e, but with her cooking and subway, and it is not just about changing how you pay but giving more benefit. loyalty points, for example. if you doree burger it this way. he is saying you have to offer something else. ok, one thing we noticed in your clip with dan schulman -- the genes and the cowboy boots. he is very relaxed, which is interesting considering his long tenure at american express. he is moving to the bay area. it is the first time he will be living on the west and best coast, but he certainly seems to be embracing the silicon valley mentality. an interesting point, because there is nobody from the so-called paypal mafia on the board, from the original sounding team or the original employees team. talking to people that paypal, they are not happy about that. they think it is really important to have the founder's like that on the team. i did talk to the now paypal chairman, and he's the, you never know area we always -- and he said, you never know. we always welcome their i

you think that paypal was a failure.peter: it was a failure in that we did not achieve our original vision of a completely new currency system. emily: what about bitcoin? does that get closer to what you had imagined? peter: i am psychologically biased against it. i would be tempted to come up with reasons why nobody would succeed at it. emily: chances of it succeeding are unlikely? peter: i think it is slightly too cumbersome to work as a new payment system. emily: you were the first onset investor in facebook. dittmar convinced you to invest did mark convinced you to invest or did he convince you to invest? peter: some combination of both. the company was growing fast. i convinced them i would be relatively hands-off. emily: do you worry that facebook could get distracted? internet.org, virtual reality? peter: it is always a challenge. you have to do new things, because you are not in a static world, and you don't want to do too many. you want to do the right number of things. emily: you created palantir. customers inc

paypal -- ebay said in late 2014 it would split off paypal.r pressure from activists, including carl icahn. google is indicating one of its self driving prototypes was involved in an accident for the first time. an suv outfitted with cameras and sensors was rear-ended. three google employees complained of minor whiplash. one note about the self driving car -- it does not do anything about other people's bad habits. matt: so you could run into one. that is true about all cars. you have to be careful for other people's driving. i want to return to our top story. one hour ago, german lawmakers voted to approve a third reef bailout with 439 -- a third greek bailout. hans nichols is in berlin. let me pose a question. it seems to me that angela merkel used her political capital to push this through. german parliamentary members are not at all optimistic about the future prospects of greece. hans: german parliamentary members would say they have the realistic view that the debt burden in greece is too high and the easy way to do this is to have a tem

i would say if you're going to own anything you want to own paypal. >> paypal. i wouldn't own ebay.here's no growth in that side. at all. i think it's 0 to 5%. >> on the ebay side. >> on the ebay side. >> sorry. >> well, listen -- >> maybe guy wants to take a crack at it. >> what i'm saying, nobody wants it. nobody wants it. so there's going to be a price. >> you're going contrarian here. >> that's what i'm trying to say. >> next up, massive move in shares of editsy. the stock rocketing higher after being positively mentioned by google during its conference call. google said the online crafts marketplace is one of the beneficiaries of some of its search and indexing technology. take a look at etsy's one-month move. it wasn't a one-day move even though people were talking about as if it happened today only. but actually take a look at the july 6th low. that low is 1280. the stock is up 67% since then. guy. >> heavily shorted stock. obviously today's comments help. you mentioned the stock had been rallying ahead of this. but go back to may 19th when they reported their first first qua

same thing with paypal and payments.f we realized how much fraud and hoops we would have to jump through, we probably would've never started the project. same thing with video -- dealing with bandwidth and the streaming issues, because of that we were able to hit the video market at the right time -- when people were getting broadband and getting devices in their hands. we were in the right place at the right time. emily: you sold to google the next year. it was only 18 months. for $1.65 billion. chad hurley: it was a rocket ship. thisntinued to be kind of journey where we were holding on for our lives. even after we became a part of google, things accelerated from there. obviously, we have more resources, but at the time we sold, we only had 67 people with in the company. we had two or three engineers, i.t. guys that would run around the country maintaining our data centers. at the time, we didn't have the luxury of plugging into amazon web services. you had to actually go out and build euro machines. -- your own machin

he made his name founding paypal and funding facebook. he is now is backing rocket ships, dna manipulation, meat grown in labs, and a start-up island off the coast. he has paid kids to skip college and start companies instead, in hopes of building a better future, faster. and building flying cars along the way. joining me is the bold and controversial venture capitalist and now the author of a new book, "zero to one," peter thiel. peter: thank you. emily: "zero to one," what does that mean? peter: it means doing something new. going to the first typewriter, the first word processor, the first car, the first airplane. doing something that has never been done before. if we are going to take our civilization to the next level, it will require new things. to invent new things. emily: what companies have taken us from zero to one? peter: facebook with social networking. google in search. emily: yet, you argue for the last few decades, we have been in a tech slowdown. have facebook and apple and google not been innovative enough? peter: as a so

and they had a palm pilot program called paypal. had recently graduated from college and was trying to decide what i wanted to do. i was sitting at home and decided to write them an e-mail. because on their website, they said they were looking for a web designer. i had a design background. luckily enough for me, they responded. about a week later, i was here in silicon valley working for them. emily: and the rest is history. chad: the rest is history, but i needed to find a place to live. that was the first challenge for me. him when i moved out here in the summer of 1999, i had to sleep on someone's floor. emily: because there were so many people coming here for silicon valley? chad: it was during the dotcom boom. emily: as i understand it, you designed the very first paypal logo they still use to this day. is that correct? chad: i think they have changed it, but yes, i was responsible for logo design, website design, the app. emily: do you see your design in the paypal logo today? it is an iteration of what you did, right? chad: y

i would rather go to paypal.t to see where they start trading. >> so maybe a lot of money is going to go towards paypal. ebay gets forgotten about in the near-term? >> they'll split on 7-20, ebay will sell down. but however history suggests you're better off owning both pieces. the ebay piece is not growing. however, trends have stabilized. they're growing a little bit. it will never be what it was in the last decade. but they're going to have over $8 billion to return to shareholders and they'll return it. the paypal piece will be the piece that attracts more attention. they're guiding to 18% revenue growth. 1.25 earnings this year. per share. and the at the end of the day, if you hold both pieces it could be reminiscent of what you saw something like pfizer and abbott laughs and abv, these are huge winners if you retain both pieces, if you're an investor, there's a lot to like on both sides. all the negatives on ebay's growth is the reason why you're able to buy a tech megacap at a decent valuation right now. >

real quick back to paypal if i could. it's a stock that i think i agree with pete is an upper $40 stock. just understanding what happens here they'll have to file a 10q and they'll do that july 29 and then you get the standalone financials. that's a big day if you're going to stay in the name. >> you said july 29. that's upcoming. back to the alibaba conversation. is there a reason you want to own a spinco? is there a reason you want to own alibaba or a tracking stop that would be yahoo!? >> i agree with joe. i think there's a lot of communication here that needs to be clarified. i don't think everyone has the clarification. >> how about yahoo!? >> i don't like yahoo! i don't like the way it's been run. i'm not a big fan of it up here at $40. i know the reason that all of us cite the runup is what they owned with alibaba and, of course, yahoo! japan. it's not enough of a reason to hold it anymore. i have no position in here and i'm not interested in the stock. >> it helps on the pay up and hurts on the way down. >> and th

same thing with paypal and payments. if we realized how much fraud and how many other hoops we would have to jump through in the finance industry, we probably would never have started the project. same thing with video, dealing with bandwidth and streaming issues. because of that, we were able to hit the video market at the right time. when people were getting broadband, devices in their hands. we were in the right place at the right time. emily: you sold to google the next year. right? only 18 months. for $1.65 billion. chad: it was a rocket ship. it continued to be this journey where we were holding on for our lives. even after we became more of a part of google. things accelerated. we had more resources. at the time we sold, we had 67 people in the company. we had two or three engineers, i.t. guys that would run around the country, three data centers. we did not have the luxury of plugging into amazon web services. you actually had to build your own machines. that, we were threatening both sides of the industry. wante

as of today ebay is trading separately from paypal. ktvu's maureen naylor is live with a look at this historic day and why one analyst is calling the division a smart move. >> reporter: both ebay and pal pal's stock closed up today on wall street. this location in san jose is ebay, paypal is in north san jose. and today for the first time they are independent publicly traded companies. [ cheers and applause ] >> reporter: with cheers this afternoon ebay's ceo rang the closing bell on nasdaq from the san jose headquarters. >> what i love about today is that in many ways we are getting back to our sense of purpose. >> reporter: that purpose the ceo says is allowing ebay to focus on its sellers on the e- commerce site. >> reporter: now paypals who ceo rang the opening bell in new york can focus on its payment service and move from the mobile payment market on watches and phones and in stores. >> we will have a great precipitation between paypal and ebay. >> reporter: lights, camera and red carpet. also required bottled water for the warm,

a lot of us worked very hard to make paypal successful. it's a proud day to see them now an independent company doing so well. now our focus is on building ebay. this is an incredibly strong business. this is a business that added almost 70 million years in the last four years. incredible cash flow and balance sheet. grounded in a real sense of purpose. the fact that paypal is doing great and now ebay is doing great, it's an exciting moment for the ebay family. >> joining us for more on what the spin-off means for both companies, jamie friedman. you are positive on both these companies, aren't you? >> that's right. i have a positive rating on paypal with a $55 price target. i position it as the worst house in the best neighborhood. when elon musk founded paypal 20 years ago, he envisioned it to be the leader in payments online. that is what they emerged, payments online is the best part of payments. paypal has the most market share. i think the world is theirs. >> that is what i was going to ask. it seems it is facing competition from ever

ebay bought paypal back in 2002 for $1.5 billion. as of today's market close, paypal is worth 33 times that amount of the reporting live in san jose scott budman nbc bay area news. >>> a daylong commute on interstate 680 after a paving project takes a wrong turn. i'm jodi hernandez live in pleasanton. i'll show you how things are shaping up now, coming up. >>> also was he caught breaking the rules? the serious accusations against a well-known local congressman and how he's facing could affect his re-election. >>> and a history-making fine. what a california water district did during this drought that has it looking at a fine of more than a million dollars. an answer. (scal): good day, m'lady! i am sir-can-a-lot, here to save you from another breakfast bore. wake up those eggs with glorious spam! see what spam can! do... at spam.com "space-x" says a two-foot steel strut may be to blame for its >>> we might have an answer. spacex says a two-foot steel strut may be to blame for its last unsuccessful launch last month. the strut, a metal

by the way, paypal was bought by ebay back in 2002 for $1.5 billion. as of this evening, stock market close, paypal's value now 33 times as high. reporting live in san jose scott budman nbc bay area news. >> thank you, scott. looks like we have some new millionaires in the bay area today. let's bring in chief meteorologist jeff ranieri. this is one of the times i wish i had air conditioning in my house. >> me too. you're waiting on the cold wind to come in from the coastline. it's been all about the hot air overriding any fog at the coastline. so we get that building in from the desert southwest, and just in case you missed it all of this humidity across the bay area is coming in with remnants of what was once hurricane dolores. we'll have details on the possibility of some rainfall for us here coming up in a moment. we want to take you to thunderstorms firing off across the sierra now heading towards highway 50 and eventually possibly some more activity for interstate 80 tonight. so let's take you outside of the sky camera network. a beautiful day, mi

tim cook wants to put paypal out of business.do on a technological business to beat apple pay? emily: their big thing is hiring and to make sure technology is going to continue to involve your cyber security is important. he says how paypal is a trusted brand and has not had a hack attack since its existence. brendan: one thing that apple has with its apple pay is just a lot of credit cards on file. pay paul does as well. -- paypal does as well. who has the advantage? emily: apple has so many more customers detailed information that paypal does not have a time. brendan: and we chang has an interview with dan shulman coming up at 9:30 a.m.. that is going to be on bloomberg. we are talking about paypal which has a bigger market cap than the company it spun off from good our twitter question of the day -- is the euro crisis over? could it please, please be over? i'd be thankful. between us. -- tweet us. ♪ tom: good morning. we would like to keep you up to date on important adjustment. richard greenfield says facebook hired by a good

paypal has the most opportunity to expand in the split. >> it is a smart move. i don't think they could have grown properly if it was satled inside of ebay and -- saddled inside of ebay. >> reporter: shares jumped 5% today. shares of ebay rose 2%. in san jose, maureen naylor, ktvu fox 2 news. >>> congressman under an ethics investigation. up next the accusations against mike honda and his campaign. plus -- >> thinking of traveling to cuba? you can do that now but there are some rules. >> a live look now at the monday evening commute. that is interstate 80 near university avenue and it is jammed up in both directions tonight. >> another live picture. the situation along interstate 280 in san jose. the cars towards the screen are southbound. easier commute north bound. better than what we saw. back with more. for over 60,000 california foster children, having necessary school supplies can mean the difference between success and failure. the day i start, i'm already behind. i never know what i'm gonna need. new school new classes, new kids. it's hard starting over.

paypal is officially trading on the nasdaq stock exchange. >> the online payment provider rocketed to $52 billion. towering over his plant by miles. >> a time of unprecedented change. it will redefine the role that money plays. benefiting the benefits. >> the market for these kinds of payment services is relatively small right now and hard-fought. the only prize on offer, there is the almost limitless potential offered by the burgeoning mobile phone payment systems. >> back on wall street for us this week. going it alone but an impressive first day for paypal. >> the stock up 7% on the first day of trading. analysts are way optimistic. if you go up to 75 dollars. this company is established. they can grow into new markets and new websites that were out of bounds so far because they were direct competitors. >> and they spun off the cash cow? >> that is a very good question and the future looks a little bit more dire because, of course, they benefit nicely today from selling paypal and they make a lot of money there. the biggest source of revenue gone in the future, mostly because ea --

paypal is officially trading on the nasdaq stock exchange. >> the online payment provider rocketed to $52 billion. towering over his plant by miles. >> a time of unprecedented change. it will redefine the role that money plays. benefiting the benefits. >> the market for these kinds of payment services is relatively small right now and hard-fought. the only prize on offer, there ishe aost limless potential offer by the burgeoning mile phone paymen systems. >> back on wall street for us this week. going it alone but an impressive first day for paypal. >> the stock up 7% on the first day of trading. analysts are way optimistic. if you go up to 75 dollars. this company is established. they can grow into new markets and new websites that were out of bounds so far because they were direct competitors. >> and they spun off the cash cow? >> that is a very good question and the future looks a little bit more dire because, of course, they benefit nicely today from selling paypal and they make a lot of money there. the biggest source of revenue gone in the future, mostly because ea -- ebay itsel

the other, paypal, a publicly traded company.e prospects for a yelp sale and paypal's first trade? >> i certainly can't comment on things like yelp rumors, but i'm bullish on the company for the long term. it's got an enormous amount of potential. i'm very happy that they're going strong. paypal, i'm very proud of my teenage child, if that's the way to put it. they have all sorts of stuff waiting for them. it creates a lot more scrutiny but gives you opportunities. i think that's going to be pretty fascinating for them again. >> all right. you raised it well, max. we're excited to see where it goes next. max levchin, founder and ceo of affirm. >> thank you. >>> when we come back, keeping our eye on the markets. the dow continues to be up around 200 points. the s&p up. rick santelli, what are you watching today? >> reporter: we're going to talk about that treasury information eamonn javers brought us. we'll also talk about what real data dependency means as we get ready for a couple days of testimony by the head of the fed after t

today paypal is worth an estimated $43 billion. an lists tell the mercury news the split will allow paypal to grow more quickly and better compete with apple pay. ebay is struggling to retain customers against amazon and other e-commerce sites. ebay and paypal will begin trading on the stock market on monday. >>> at&t is using virtual reality on distracted driving. good morning, landon. >> good morning to both of you. the markets look to close out the week on a positive note, stocks rose on thursday and fears about greece's debt crisis ease and the fed share spoke to a senate panel says she prefers a gradual increase it interest rates. look for data today on consumer prices, housing and consumer is sentiment the nasdaq up 64 to 5163. watch shares of google today, the tech giant shooting to an all time high in after hours training on thursday following earnings that easily beat wall street forecast. that was due to more people clicking on paid ads. google is the world's second most valuable company behind only apple. and at&t is usi

. >> on paypal let's get to morgan brennan for the details. >> paypal is acquiring xoom, the digitalransfer provider. doing that for $25 per share all cash, the equivalent of $890 million enterprise value for xoom. xoom closed today at $20.77 a share. so this represents a 21% premium over today's close. shares of xoom are halted right now in after hours because of this news. also hearing that xoom will operate as a separate service within paypal and this deal is expected to close in -- or they're hoping the deal will close in q4. paypal acquiring xoom enterprise value $890 million or $25 per share all cash. back over to you. >> morgan brennan, thank you. josh brown, are you aware of xoom? >> i'm aware of what they do and what they could represent to paypal. but i want to make a more important point. when you get a spinoff pitched, you have to spin this off, you have to spin this off, one of the primary reasons is we're going to have a new management team that's just focused on this one side of the business and they're going to be more aggressive and more open to opportunities, et cet

i look at paypal a little bit in the same way as facebook. it's basically becoming a roll-up of very popular financial brands. it has venmo, operating as a stand-alone brand, it will operate xoom as a stand-alone brands. these are brands that have really loyal customer bases in different geographies, some of which paypal doesn't have operations in. which will be good for the company. >> across the street from the exchange there's a big paypal billboard with all their different brands on it brain stree, apple pay they accept. they boost xoom, pay dial. it's a bag of stuff marketing. you've got all different brands and a great deal of confusion over what does what. first task post-ipo, you centralize the services and are not baffled by what they offer. >> what are remittances going to look like in five years, we had hugo barra from xiaomi talking about how they're smelling smartphone force $160. five years from now are we going to be sending cash. >> xoom is actually mobile remittances, that's what paypal is buying here. i think another questio

after losing paypal.tion of paypal's revenue outdistancing ebay's marketplace revenue over the first half of this year. and investors generally believe that paypal has got the much stronger growth trajectory ahead of it and paypal off to a very strong start today. its shares up 10% in the early going. >>> some increasing optimism about the economy rebounding from that dismal start to 2015. the national association of business economists finds that about 60% believe that sales are improving in the third quarter. thanks to better hiring and also some wage increases taking effect as well. and the economists by the majority expect the economy to do even better over the entire court course of the second half of the year. >>> markets started out pretty senate this morning. let's take a look at the big board and see how we're doing so far. the dow is up by about 10 points, nasdaq gaining 4 and the s&p just a little bit into the red at this point. maria and frank back to you. >> happy monday morning. thanks jason

we see that in the paypal piece.what we think about paypal going forward, it say strong organic growth opportunity going forward but it's a little bit of a play going forward. ebay, we see is a little more opportunity there, because of the fact that you know paypal is such a high-profile situation going through the market we're seeing a lot more of investors trade in on the paypal versus eat bay the ebay. >> we've been looking at paypal and its growth strategy going forward. do you think being an independent company will help it compete effectively with the likes of apple pay seen as one of the emerging experts in the states? >> yeah definitely that will help the company going forward. actually interestingly enough from the 15-year global spinoff companies which shows the larger tech companies spinning off, once the entity around 33% upside on the first couple of years going forward. so that's the message we're having for our clients. and we do believe there's going to be some life going forward on paypal. >> accordi

max levchin a former paypal cofounder, thank you so much for joining us. always great to have you. and that does it for this edition of "bloomberg west." we will see you tomorrow. that does it for today from san francisco. ♪ mark: mark halperin. josh: josh green. with respect -- "witha all due respect" to scott walker he just might have trouble standing out in this big field. >> walker. >> walker. josh: on the show tonight -- first the pride of wisconsin scott walker. he is here in waukesha. the announcement event will start behind me pretty quickly. what does walker need to do in this kicko

max levchin, a former paypal cofounder, thank you so much for joining us. always great to have you. and that does it for this edition of "bloomberg west." we will see you tomorrow. that does it for today from san francisco. ♪ >> the following is a pay program. the opinions do not reflect those of bloomberg or its employees. announcer: now, a paid presentation for meaningful beauty advanced with cindy crawford. female announcer: special appearances by debra messing and -- male announcer: valerie bertinelli. and stars for mtv's "royal pains." and the mentalist. now, for 2015, our best offer ever, including $95 in free gifts brought to you by guthy renker. katrina: hi, i am katrina szish.