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tv   Bloomberg West  Bloomberg  July 28, 2015 4:30pm-5:01pm EDT

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we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. emily: twitter shares jumping but jack dorsey says he is not satisfied with growth. i emily chang, mrs. bloomberg west. yelled shares tumbling after hours. why the company is slashing its outlook and if there is enough for a sale. plus lightning fast chips could revolutionize how computers access data. inand the online start of the
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just took a big coup. shares up as much as 12% at one point. revenue beating estimates the 6% year-over-year. still, twitter interim ceo jack dorsey says he is not satisfied with growth and user numbers are relatively disappointing. he is expected to be on the earnings call for the very first time since he left the company less than 30 minutes. also with me here in the studio and on the phone are analysts. it looks good, except for these user numbers. >> they changed how they calculate user numbers recently had added an extra element which
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is these sms users. if you include those, you look great, but if you do not include votes their corporate the growth is only up by 2 million per quarter. >> i have argued the user base does not really matter, although i realize that the investors are focused on it because management is focused on it. as people appeal the numbers you can see the u.s. user growth was. if you see there is any turn, it means that they grew to a place that turned, and that will not be well received. twitter has always been any the service. they monetize reasonably well and will have a role. emily: and revenue growth has been slowing down. you helped manage their profiles on social media. how would you gauge the health of their long-term strategy? >> i think it is very healthy.
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what you're seeing primarily in social is they are string to follow the traditional economics of television. it comes to reach, frequency and how immersive you can make the arians. on one side the user number is critical. at the end of the day the platforms are going to be judged on how to people they can reach. at the same time, the ad platform from twitter continues to get better. there cannot be upset about what they are doing from the new product that is specifically helping them in real time. the idea that real-time engagement is something that they can provide almost better than any major media company. especially as more and more media goes to being time shifted. emily: you have potentially hundreds of people who have left twitter just as jack dorsey took over. at the same time, two key executives we will hear just minutes from a summer going to drop box, some going to youtube. you will be speaking with jack
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in his first interview ever as public company ceo. what you going to ask? >> i do not think we're clarity and he is going to be in the running for ceo. people still mention him as a possibility even though the board says they will not take him if he is the ceo of square. i also want to hear if he has any updates for these product announcements that they have been meaning to roll out, when we are going to see project lightning. they are trying to put in venice in such a way that you could watch them like channels for these users that are not logged in. emily: interesting products happening. ifc and between, which is trying to show most relevant, but i want to know what came out seconds ago. >> but these key product executives just left.
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it will be an interesting interrogation. emily: at the same time, he has been out there. he has been tweeting at kim kardashian, he is going to be on the earnings call for the very first time. what do you think about this whole ceo transition? when you think is best for this company? >> it is very difficult to identify who is the company because only the who -- those who are inside know the political landscape. you don't want to lose the very important people in the wrong person is put in the spot. it is just impossible to do from the outside. emily: i want to bring in julie hyman who has been pulling more numbers out of this report. i know you have been looking at international growth. julie: in terms of user growth, a lot of it is coming from international the company
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adding 36 million users internationally. the u.s. added just 6 million. as you've been talking about, a lot of that are the fact followers, which sarah explained to me a little bit earlier. so the also wanted to point out that actually happened as we were watching these earnings amount -- come out was a couple of executive departures from the company. todd jackson, the department manager of product management, they are leaving the company. the first for youtube and google. it is interesting timing that this would the same time that the company is making this earnings announced today. emily: one of those people where the head of growth, and jack is saying is unsatisfied with growth. he is to your clients all the time. what do they think they're getting out of twitter that they
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are not getting out of facebook? what else would they like to see from twitter? >> you brought it up earlier with the kim kardashian tweet moment. what i hear from the client this morning is the challenge is the customer service approach that a lot of rams have to take. facebook did a fantastic job three or four years ago of moving customer service off of facebook into the back office of faith. and twitter it is still in the front seat and brand feels like customer service is oftentimes the first thing they focus on as a relates to twitter. anyone knows the marketing department knows the customer service sits in a very different seat and brand marketing and where the ad revenue of market that i believe that long-term they really have to figure out the strategy to have the move customer service away from the core platform in order to allow princeton focus on their core marketing principles on twitter. emily: kim kardashian is very helpful that -- hopeful that
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they will allow her to edit tweets in the future. thank you for joining us. intel is introducing a super memory chip that could change the way computers access large data sets. they teamed up with micron to develop 3-d technology and released today. it is the first new mainstream memory chip to come to market in 25 years. the president says there is nothing else like it. >> broadpoint technology is a fundamental breakthrough and a new class of memory that is not directly comparable to existing technology. it is much faster up to 1000 times faster than today's existing storage. much higher capacity, up to 10 times the improvement in capacity. emily: this new technology will make data intensive tasks, like tracking diseases or creating
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realistic video games a lot easier for computers. >> we think the scope over a long time for this technology is across all types of computing, from the highest performing server computers down to small devices as well and into the internet. emily: micron will produce the chips next week. both intel and micron shares jumped on the news. jimenez yelps turned to get reviewed. shares pummeling as they missed estimates. could this be devised that changes the way we trial in a medicine? ♪
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emily: another story we are watching yelp. wall street not impressed with the company's second-quarter. shares in taking a huge hit in extended trading after they lower their outlook for the year. shares down more than 14%. joining us from new york, alex sherman and joshua. what is your big take away from the trends and we're seeing that do not look good? >> yelp is working really hard on the coming wider platform. we know that that is something that is very difficult to do.
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they have not shown that in a wide way than just reviews. they are successful as a review's website, i think they are seeing a lot of challenges from a lot of online behavior moving into the open social networks. facebook, twitter, instagram, people posting on there. they sold a lot of work to do. i think they could be doing a lot more to work with large brands. they have not invested in the breeze as much as they have the small business space. i think it would be hard to do what they are trying to do. emily: you have better been reporting on the potential sale of yelp. is yelp owing to be under more pressure now that we're seeing some of these results? >> we will see if yelp and jeremy's comment address my report from a few weeks ago, saying that they had ended
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themselves. our reporting indicates that there were a few suitors for this mess, but he ultimately decided it was interest -- in his best interest and the company's best interest to not move forward with the sale. he never gave any color as to why he made that decision. it is tough to give up your baby. jeremy is the ceo and cofounder of the company, but he may not have gotten a bid from a company that he held was worthwhile for the future value of yelp. emily: it is interesting, i've been a big yelp user. i know what other people are saying about the restaurants, but more and more i find myself looking at google reviews how to yelp combine all these challenges? >> if you look at one of the things that they're doing well is they have seen a lot of using the mobile uses.
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there is consumer behavior, if you're looking for the restaurant, there is a question of can they keep that up. do the reviews just become a feature of a social network, of maps on google, or can they really retain it is a useful product? >> to josh's point about the mobile uses when the right results for yelp this quarter is that unique mobile viewers -- desktop uses for the first time ever this quarter, that i think is part of the reason why jeremy feels like this may not be the right time to sell young. let's play out and the where we get mobley. however on the flip side, a lot of analysts and investors, and this is why he has really followed off a cliff since we started the story, a lot of people feel they would be better suited within a coming that can
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close the loop on a sale. a german advisor or an expedia. >> that something they are trying to do. emily: we will be following the earnings call to see if there is any clues about a potential sale and how he is thinking about that. but for now, thank you so much. it is time now for our latest bwest series bioengineering, a closer look at technology on the front of medical science. today we take a look at organs on the chip. while this device improve the way medicines article. take a look. >> more and more investment has been going into pharmaceutical development. basic scientific research, but let the less drugs are getting approved. emily: could this be the breakthrough that finally puts that equation?
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researchers at harvard university calls it a organ on a chip. the device is no bigger than a usb stick it has distilled down to its key features that makes an oregon and oregon. they started by creating a long eye using a method inspired by commuter binder check -- computer microchip manufacturing. the scientist lay down long-held on mainframe with blood cells moving on the other side. then they add the magic ingredient, the device is stretchy. >> when you have the section, it stretches the middle child all and when it releases it comes back. it breeds back and forth. emily: an already won the design of the year award from the design museum in london and is on display in new york. industry is taking it for a test drive in a startup that was spun out commercializing the chip and raises $12 million last year.
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his -- thrombosis is a common side effect in several drug classes, including oncology drug, and in you know there it it. that can be a very dangerous side effect. we have the collaboration involved the safety of this potential drug candidate. emily: r&d spending at the sixth biggest pharmaceutical committees exceeded $40 billion in 2017. these tips are mass-produced and easier than testing on animals. the research arm of the pentagon has invested, and is interested to see if 10 organs can be connected creating a human body on a chip.
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they also have fda backing, to use the tips for testing antiradiation drugs something human volunteers cannot be used for and where animals are in for substitute and maybe will soon be able to put our own cells into these devices. as personalized medicine takes off. we will have the next story in our bioengineering series right here on bloomberg west. coming up, is striped really worth $5 billion? plus, as we go to break, footage of a lego customized prosthetic limb. it was created at a six month and are shipped -- internship at lego's computer lab. a low-cost 3-d printing model to bring a product to market. ♪
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emily: and now to our daily bite. in today's bike $595 million. that is the amount of revenue instagram is expected to rake in from oval and sales this year. this prediction comes from the marketer, which is forecasting and growth to swell the company in coming years. expect the facebook owned video sharing to bring and 1.5 billion dollars in 2016 2 $.8 billion in 2017 surpassing google and twitter. they make 27% of their ad revenue from the u.s. and has over 300 million users. prices keep rising. raising more money and a $5
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billionon valuation. that is a 40% job from where it was in december. how much firewall prices go -- how much higher will prices go? it is worth $5 billion? >> duty is in the eye the holder commands so is all you asian -- beauty is in the eye of the beholder as is valuation. emily: what about valuations in general? >> it is high, but the opportunity we see in our portfolio, never in the history of this business have we seen companies are the revenues as fastest they are doing it right now. i think that is what makes this top. valuations are hard love of the growth is higher -- hi, but growth is higher.
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i do not know -- in general unit counts are seeing private because there are a lot more hospitaltible then the public. emily: you think square does not have a choice? >> i do not know specifically why square is doing it. i would just say in general unit found wants to stay private because it is a much better market in the public market. emily: the biggest unicorn out there uber at a $50 million plus valuation. the rise of the 1099s economy, uber saying they are not full-time employees, and they do not want to be full-time employees. but this is in the national spotlight. hillary clinton is talking about it. if you look at macroeconomic data, we're seeing people are choosing full-time jobs and
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there is not much growth in freelance relations. i wonder, is the sharing economy getting a little overhyped? >> it is not. here are the facts that matter to me. there are some really people today who cannot find a job. there are 6.5 million people who cannot get enough hours to work. for those 20.5 million people, the sharing economy gives them a chance, a lifeline to get into the workforce. that to me is a story we need to talk about. i think people would rather have a job than no job. emily: if and when the economy improves, and there are multiple full-time jobs, will the people who could be jiving on the side take the full-time job instead? >> some people like flexibility. emily: how many people? >> more people than you imagine. today we are at 68%. only 68% of adults are choosing to work full-time. that means 30% of the adults in america say they do not want to work for different reasons.
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maybe family reasons, maybe for fiscal reasons. having the flexibility to being able to look at your choosing when you want, is critical. emily: you invested in a uber for lawyers for $10 million. it does every sector have and potential for uber? >> you have to look at the situation. on one hand we have law partners making more money than ever, on the other hand we have looked young law graduates not having any jobs. you can get the same quality law, legal person at one price then other legal counsel. emily: thank you for joining us. that is up for this edition of bloomberg west tonight my exclusive behind the scenes look at the new independent paypal.
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i sat down with the ceo and chairman. ♪
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mark: and mark halperin. john: and john heilemann. with all due respect and john stiller, you've been making a great trips to visit barack obama at the white house? ♪ john: happy national donald trump day. on the trunk show today, trump and trump. but first, morgan freeman. a video to support the run deal. like america's actual relationship, the video was long, not funny and slightly awkward. >>


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