How it has come within striking distance of apples top spot is the worlds most Profitable Company. First to our lead, amazon shares dipped post market thursday after they reported disappointing financial guidance, especially a potential loss of a third quarter. The earnings per share missed Second Quarter the lowest analyst estimates. Amazon is preparing to step up competition with walmart and Cloud Computing challengers alrosoft and also that phabet. We looked at the numbers. This is a company that is investing. There is a cost to all that free video. Emily where are the expenses . Specify, but it is video and fulfillment. They are building Fulfillment Centers closer to cities. That is why they can get your stuff in one day. Theyre making all of these great shows like transparent and man in the high castle. That costs money. The stock is down 2 are in this this is an unflappable shareholder base. There is this deal of the company. Emily shares are down 3 . Bob, what is your take echoplex what i think is amazing about what amazon does from a longterm perspective this is why bezos is number one or now he isnt. Emily 1, 2, you know. The point is, they are able to take longterm investments in infrastructure and turned that into products. As they build up these forhouses, technologies stores without people in them they will be able to license , these things they would have to do anyway and turn them into products, and that is a smart, shrewd longterm perspective. , thats a people are buying that is what people are buying into. Emily what about whole foods . Are we getting any more clarity into how this acquisition will play out . How will this be integrated into how this will hit the bottom line and the amazon empire . The answer is no. The deal has not closed yet. The cfo declined to comment on it and it not gotten past antitrust regulatory review. We dont know if there will be regulatory scrutiny of any advanced level. They are not talking about that, but we can see that grocery is a major avenue of expansion for amazon, not just the whole foods purchase but with prime now they just entered singapore with prime now. Amazon fresh is expanding, and hopefully in the coming weeks or months we will nknow more. Emily im interested in how the dynamics are changing with nike and sears selling directly to amazon. They have this infrastructure capability to deliver goods in another way. Another thing i mentioned is they are becoming a Logistics Company as well. They are building the logistics they need to do groceries. Nobody has really solved that yet and bezos loves solving problems. They are going to take that ability to deliver those kinds of products and take those skills, license them and figure out ways to make money for themselves, but for other people as well. Emily we will see how investors respond tomorrow. But brad is the confidence in , jeff bezos deserved . For consistency, he called this shot early on about how he was going to run the company. Free cash flow, investing in the long term. The have periodically signaled they are entering into cycles cycle where where they will spend a lot of money on certain things. They operate the company with a lot of discipline. They give you these broad estimates, but they always hit those estimates. If you do that enough times, Investors Trust you. If he has earned the trust. I think he has earned this trust. Emily will this accrue any antitrust scrutiny . The move that amazon is making . Will they get too big . Thats a fair question. As they build out all of these infrastructure capabilities and they have a larger influence. They are selling themselves. And in the current environment with his ownership of the Washington Post and the way donald trump views that, there is a some incentive to say yeah, maybe we should look a little that direction. Amalie and despite they sat the fact they sat next to each other at that meeting at the white house, they are not the best of friends. By any rational measure, this should pass antitrust scrutiny. Whole foods is a small player, part in groceries, but we are in a topsyturvy political environment. This could get scrutiny just because jeff bezos is not the most popular guy in washington. Emily and there is a frenzy of speculation about what could be the next big thing. Ideas . Lets not forget what they are doing with alexa and voicebased computing. There is an interesting play when we look at that perspective. They were never able to do anything like that from an operating perspective. They wanted to compete against google and apple. Now they are coming in from the side with this voicebased computing thing. All of a sudden it is opening up lots of different avenues. The beauty of it is it works across all of those platforms. That is one to watch. Emily and we have to talk about the cloud, where they are the leader. We saw progress at google and that microsoft, and the tie is getting bigger, but does amazon have to worry about that additive threat their . That competitive threat . The pie is getting so much larger. The challenges when they enter into the price wars and it depresses the profitability of the cloud segment. Right now, we are not seeing that and the businesses looking quite healthy. They are hiring a lot of people. They talked about that a lot on the calls. But this is a very hotly contested space. Shares, good for your portfolio . Good for bezos, but good for your portfolio . In the long run, i think so. Emily in other earnings news, twitter failed to attract more monthly users in the Second Quarter. Investors had been looking for evidence they are on a path of sustainable longterm growth. Revenue fell 4. 7 percent, and twitters net loss awful widened, affected by a writedown in the Music Streaming Service soundcloud. Net loss also widened, affected by a writedown in the Music Streaming Service soundcloud. Facebook turned out cash in unexpected growth fueled by strengthen mobile video ads. They now have over 2 billion monthly active users and driving revenue at a faster pace and other tech giants. Facebook has also been heavily investing in original content. The first shows will come online in august. We see a lot of content viewing and engagement shifting to mobile. Our goal is to be a plat warm platform for content providers to find their audience and monetize. Right now, we are doing some early investing and kickstarting the ecosystem to promote more viewing on facebook. We do not have much of that kind, and we think it is important so we are making that investment. We have content providers creating that content and finding their audience. Emily my interview with facebook coo sheryl sandberg. Alphabet was out with earnings this week. Revenue for the search giant coming in 26 billion, up 21 year over year. But aggregate costs per click dropped 23 from a year ago. That includes the effect from the 2. 7 billion fine from the European Competition commission. It is so early in our analysis of this decision that it is an ongoing legal matter. They have not decided yet if they will appeal. We discussed this with our analysts. I think the reason the stock is down is because of the traffic acquisition costs. The company has been warning us for some time that as they shift away from ads on a mobile device and programs and ads on youtube, they are on an apple iphone and we see ads programmatic ads. Outre seeing ads within and an app, and those are done by google. They are making sales calls, bringing in those ads, and they are selling them to apple. It is more expensive to acquire that traffic than it is to acquire iphone users, for example, for google. So there acquisition costs had been rising. Emily this is more about traffic acquisition costs . More than anything else. I think thats what it is. They wanted a big change in their business, that they are going to be more mobile and programmatic, and its going to cost more. Emily colleen what is your , take . You really singled out the strength in mobile search as well as youtube in terms of driving the momentum here. Mobile is the big driver here. That is kind of the headline. Thats why you see increases in decreases inso aggregate costs per click. Thats been a big driver in the storyline for google for some time. Emily what about whats going on with youtube . We talked about the ad year,ypse earlier this where there was an investigation into extremist context. Was prominent advertising with it, and it seems like a lot of them pulled their content and now they have returned. That revenueated across the site was a strong that benefited mobile search and and youtube. They take very seriously this thee and are protecting ecosystem. A lot of this has been like a lot of toys. They like the advertising. They like the traffic google is giving them in terms of clicks. It is nothing like anything else in the history of advertising, where you can actually see the result as it runs. Advertisers like that. So to the extent that advertisers actually pulled ads a year ago, it was good news for google now because they have fixed what little problems might have been there, extremist content is a serious problem but i do not know how big these problems were. But it looks like all the advertisers are back. It looks like none of them stayed away for good. So it might make comparison numbers work better for google. Emily there are investigations in the eu, we had this big fine. This big, 2. 7 billion fine. Google is trying to decide if they are looking to appeal. How concerned are you about future investigations . From an advertiser perspective, there is a lot of concern. You know, obviously the youtube scandal earlier in the year and now the ruling from the eu from the Competitive Commission does not really help an advertisers stomach when going to invest in advertising on google. How do you know that your ad is not going to get placed in a position to do not want it to be in, and how do you know if you are buying things like product listing or shopping ads that it is not being skewed against you . Obviously some issues, but i agree with cory in that this is a good thing for google in the long run with advertisers pulling out, and then google can identify what do we need to do Going Forward . What do we need to work on to instill better trust in our ertising partner . Partners . Emily later on, the war of words between two tech billionaires. We will dig into the barbs between Mark Zuckerberg and elon here over Artificial Intelligence. And meg whitman is officially inc. E board at hp, what that means next. This is bloomberg. Emily u. S. President announced that taiwanese factur manufactu, foxconn will build a factory in , the state of wisconsin. It will produced lcd monitors and will employ 3000 people. That number could eventually swell to 13,000. We spoke to foxconn president terry go to discuss why he chose to invest in the united states. Why do it here . Television was invented in america. America does not have a single lcd plant to produce a complicated system. We are going to change that. It starts today with this investment in wisconsin. Emily meg whitman is stepping down from the board of hp, inc. She will be replaced by chip berg, and remained the ceo of hp enterprise, which split off from hp, inc. In 2015. The news comes on the heels of our report that she is on the short list of candidates to fill the ceo spot at uber. They will name a new ceo by november. We discussed this with our bloomberg tech reporter, eric andomer, who covers uber, economy advisor david kirkpatrick. She has long been someone i thought was a possible candidate. Shes been advising travis. She is close to ryan graves. The board member and early ceo. Emily and she is also an early uber investor. She has been in the mix. She has the statesmanlike reputation the experience , running a tech company. All of the pieces that you can imagine. Its not a guarantee that she is going to become the ceo, she is definitely in the mix. One of five or fewer candidates left in the pool. The hope is to get it together before or labor day. Emily david, what do you think of meg whitman . I was actually just thinking listening to eric there is an interesting analogy between what she really did wonderfully well, which was ron ebay, ron ebay and uber. Ebay and uber. , they are both marketplaces. I think its asked with the kind of company she could run better than she has been able to run hp and hpe. You might say she is generationally too old for this sort of thing. But she is a Silicon Valley veteran. She brings a lot of the right characteristics to the job. So i am relatively optimistic that she would be a strong candidate at a minimum. Emily it is reported that whitman is unlikely to take the job and may not he a top even be a top contender. What is your reaction to that . Lacks she is definitely a top contender. Hps statement to us was a sickly basically she is going to be here until the job is done, which is super vague. We disagree on this one. Emily that was our bloomberg tech reporter Eric Newcomer and david kirkpatrick. Coming up, Capital Funds get bigger. We will chat with the general partner at Canaan Partners about the recordsetting latest fund. And a competition in augmented reality space is heating up. How this Company Plans to carve out their place in an increasingly crowded field. This is bloomberg. Emily in funding news, Canaan Partners close their latest fund at 800 million. It is the largest fund in their 30 year history. Venture funding is ballooning to highs not seen since the dotcom bubble. The surplus of cash help it wouldrivate longer that otherwise be raise on the public market. We spoke with a general partner at canaan. Maha our firm is a diversified fund, unlike a lot of others. About 40 of what we do is health care and 60 is tech. On the health care side we have , had an incredible run of exit, largely due to the fact that we have been very disciplined in certain areas, and the same goes for tech. We feel like there are a lot of areas. Emily you have been there for more than a decade. Your memory goes back. What you think of the comparisons to. Com times . Maha we are in heady times right now. But there are still so many anpanies amassing i incredible amount of revenue, traction, etc. I dont see that ending. I dont see a cliff like we saw in 2000, 2001. There is no reason for that. There is a ton of momentum and money flowing into the system. You have one Hand Companies staying private longer. On the other hand, you had 30 some exits in the last year, which is three times the average. How is that possible . Maha in addition to that, some of our companies have been exiting a lot faster than they normally would. So our average time to exit has been less than four years. This is in both tech and health care. We think its because we pick a franchise approach toward and so we go investing, deep and mine them in terms of networking and so on, and that is the secret sauce to canaan. Emily do you get the sense a company would take 10 years to go public or exit, would you stay away from that . Maha no. We absolutely believe we are Building Companies for the longterm. But because we are taking a more thesis driven approach to investing we are on the pulse of , what they want and are thinking about. That just inevitably causes companies to exit faster than they otherwise would. And some take 15 years and , thats fine too. Emily so what areas are hot where there are big opportunities . Maha syntax is still very hot for us. Technology investment. We spent a lot of money in real estate and insurance. We spend a lot of time in cloud. We have a few gaming deals. But we are very disciplined in our approach, as opposed to taking index funds for renter. Venture. You have three female general emily emily you are celebrating 30 years as a vc. You have three female general partners. Im curious how that changes the environment inside the firm. And in the investments that you make. Maha it has been such an incredible i am incredibly fortunate to be at the table eighty a general par general partners and three of them being women. The conversations we feel are a lot more inclusive. And as a fund, we feel it is more reflective of what the true on for an oriole entrepreneurial pool looks like. They are surrounded by people with similar experiences. They are much more comfortable. Emily i know youve been following the Sexual Harassment story. There is a Sexual Harassment investigation at uber. Are you surprised by this . Maha the unfortunate thing is im not surprised. I am surprised that the horrific nature of it, im not surprised its happening. The problem is sorry. If there is a positive spin on this, it is this. The Sexual Harassment has happened. Im sure there are more cards to fall, unfortunately. But it has woken up to the need that people up to the need of diversity inclusion. At the investing table, but also from an entrepreneurial perspective. We need to be bringing up women entrepreneurs, people with diverse backgrounds into the investing roles so that all entrepreneurs feel welcome. Calls i know what you say everybody is calling everybody. ,what kind of calls are you getting . Maha im getting a lot of calls and spending an hour or two a day either talking with entrepreneurs, i am on the board that is taking a very serious look at whats going on and thinking about how to approach this topic in a holistic way. Limited partners of hours it is certainly top of mind. We are talking about the fact that it is happening, what we can do, can we put motions into notions into term sheets, can pool ofa more diverse investing professionals around the table . There are many things like hotlines, and many notions being talked about right now. My hope is we can come together as groups and make this a more inclusive environment for venture and spilling over into the entrepreneurial pool. Maha i know that entrepreneurs come to you. Have you ever found yourself in a position where you are a partner with a coinvestor, and there is bad behavior alleged against that person . Maha i have been very fortunate for that to not be the case. I see female entrepreneurs, each of these two people have told me a bad story. This is been happening for 17 years. Weve got to put effort into finally making it stop. Emily what are those efforts . Signing a decency pledge is g