Firstquarter sales and profit that topped analyst estimates. They received new orders for servers that run data centers. They may be picking up the orders as ibm leaves by selling its unit to lenovo. Fourth quarter revenue at groupon exceeded estimates. Priceline reported profit for the Fourth Quarter that topped analyst estimates. The economic recovery in europe helping to lift hotel bookings. The bet against herbalife has become the biggest loser for bill ackmans loser since its inception. Peter will stick around. First lets get insight into these tech results from paul kedrosky. He joins us from san diego. Paul, we had a bunch of tech earnings out after the closing bell. Lets start with hewlettpackard. Not seeing much reaction. Your take on the quarter . There was a little bump higher on the headline, and that it weakened since. The Current Quarter was better than expected. Look ahead in terms of guidance, it is a little light on the earnings side. That is all market technical stuff. The deeper story has to be how well the transformation of the company is going. Away from being reliant on traditional products and certainly on the desktop front, moving towards servers and 3d printers and things like this. That is going, but it is a long, painful transition. It is still early days. The numbers suggest it will be four or five quarters, not one or two. This one is still very messy. How do you think meg whitman is doing . She is three years in working on this turnaround of hewlettpackard. An earlier guest said he would give her an aminus. I think she is in an impossible position. Aminus is all you can say. There is no aplus here. That is part of the problem. It is a huge company. Not so easy to just turn it around. It is not. Even more importantly, people forget, and it is easy for the markets to forget, that we are transitioning over to a serverbased company implies there is a market to go to. That itself is imploding as things are moving to the cloud. You are trying to transition the company into a market that is its self in transition. That is going to be very hard. Lets talk about groupon. We have seen share reaction, the share price moving lower as a result of groupon you laugh, is it comes to groupon . Groupon is a circus, right . A very entertaining sideshow. The stock was up 15 on the had lines and then people read through the release and discovered things are not going as swimmingly as the headline may have implied. Now it is down 11 . A 24 swing after hours, that is out of some kind of comic book. Truly unusual. The real story here is twofold. One, the transition from a desktop email products to a mobile product, which is underway. The deeper one is the transition from being a daily deal company to more of a persistent provider of discounts. That is the more complex transition. That is the one that will be much lower than expected. The mobile transition will be much easier to pull off. One more for you. Priceline coming out with results after the close. What do you think . I think that is a much more impressive story. It is underestimated consistently. This is a hugely strong european story. It was thought of as some kind of strange william shatnerdriven play domestically. The story is really about the dominance of european discount travel, which continues. Before you go, we have a headline that mentions that microsoft was in the talks for whatsapp. Your take on that . At this point we have to assume this was a very competitive auction. We know google was in there two weeks ago. Now microsoft. My expectation is that what happened was facebook came in and said, i have to trump everybody and put in this giant offer 40 above where anyone else was to close the auction off. Facebook put a lot of paper in to make it happen. Time will tell if the Purchase Price make sense. Thanks so much for the rundown. Paul kedrosky, managing partner at sk ventures. We turn to the international scene. Something that has been on our minds, unrest in the ukraine. Continuing, with the death toll rising to at least 75 people. Joining us now on the phone from the ukraine is hellmuth tromm, a managing editor of bloomberg news. Also still with us is peter cook. Where are we now . We thought we had a truce 24 hours ago. That didnt work out. We continue to see turmoil, continue to see death. Assess the situation for us. The focus at the moment is on the mission the European UnionForeign Ministers are having here with yanukovych. As we speak, they are sitting down again with yanukovych, other Foreign Ministers from germany, poland, and france. The latest word is the leaders of the opposition have joined that meeting. They already talked for almost six hours this afternoon trying to convince him to accept a deal according to which there would be early elections sometime towards the end of the year. And that they would pull back the Security Forces from Independence Square. Peter, i want to bring you win to this conversation. This is all being watched at the white house very carefully. You have an administration right now dealing with a whole range of foreignpolicy crises. Syria, the situation with iran, middle east peace talks, and ukraine at the same time, once again involving russia. Very few options, very you things in the toolbox for the president to use right now. You have some pretty tough rhetoric that got ratcheted up in the last 24 hours. Last night you had the move by the administration to put a travel ban in place on certain government officials, civilian officials in the government of the ukraine. We dont know exactly who. They did not identify them by name. Now you have the eu, canada moving to freeze assets of some individuals in the ukraine. The next question is, will the u. S. Soon follow on that front . All we got was the sense that the white house is looking at a range of options out there and they sense some urgency out here, given the situation on the ground. Any sense from the white house that in terms of escalation of what we are seeing in the ukraine, that this is unexpected, that they did not expected to unwind as quickly as it has . I think, like everyone else, they saw the truce last night and were hopeful that that would amount to something. But obviously that petered out. I dont think it was a great deal of expectation it would hold. But they are counting on the European Union. There are folks on the ground in the ukraine to try to craft some kind of at least a temporary situation that at least reduces the violence and get the sides to the negotiating table. That would be the bestcase scenario for the United States. There was some tension a few weeks ago between the american diplomats and the European Union. On this point, the eu and the u. S. Are basically on the same page. Let me go back to hellmuth tromm, who joins us from kiev. You are out on the streets. What is the environment like . What is the mood like . It is kind of a bizarre situation. We are less than a mile away from Independence Square. Right here, you couldnt tell anything special is going on. But on Independence Square people are digging in. They have fortified the barricades throughout the day. Fires are burning. Everyone you talk to on the square will tell you, we are not turning back, this is a oneway street for us. We will stay here and either we will win this battle or it is all over. Are you feeling pressure from outside . Are folks on the ground in kiev feeling pressure from outside forces, whether from the United States or russia . Well, i think people have somehow lost a little faith in diplomacy. The situation has continued for so long. Their demand is yanukovych has to leave. At least he has to give into early elections. They have seen so much talk, and nothing has happened. I think they are not having very high hopes at this point in terms of diplomacy. This is why things turned is so violent. Thank you so much for the update. Hellmuth tromm, managing editor at bloomberg news, joining us from kiev. And chief washington correspondent peter cook. Our next guest wants to take some of the financial pain out of dealing with Insurance Companies rolling a car accident. He are ready handles a quarter of the worlds auto claims. This is taking stock. Perhaps the most fascinating aspect of successful entrepreneurs are their humble starts. Mark zuckerberg started facebook in his dorm room. Elon musk taught himself programming at the age of 12. Our next guest went from hanging out in his uncles auto garage to founding a company focused on modernizing the insurance industry. Good to have you on taking stock. You have done four other companies, created them and sold them. What guides you . Well, i worked primarily in the Automotive Industry. That is my passion. I think what guides most of us is our passion for improving things or inventing things and trying to get people to see a different way. Giving them an opportunity to use it in a massive scale and finding solutions. You grew up around cars bigtime. I love cars. My wife could send me out for a gallon of milk, and i would come back with a new car. We have been focusing a lot, we mentioned cars a lot on tesla motors this week, what do you think elon musk is doing in the electric car universe . The industry, the Automotive Industry needs entrepreneurs who are small and agile. So that they can do things that the big guys cant. Big Car Manufacturers are doing a great job with many things, but sometimes you need Disruptive Forces to make a big industry think big. Like your company, solera. It was started in a garage, like most entrepreneurs. What we are doing in solera, i started my career sweeping floors in my uncles body shop. Back then estimates were written on paper. A coveted process, and active negotiation. We had a passion, me and our associates, a passion to digitize this and make it intuitive. Information should be at the fingertips for anybody, whether it be the consumer, insurance, the shop. We brought an intelligent system that doesnt make mistakes, that is very accurate. That brings the right parts together, the right prices, everything in a matter of seconds what used to take sometimes days. Is it having all the information in one place . It used to be all books and phone calls. That was the beginning. You kind of bring it all together in a digital format, and after that you start thinking of ways to make it intuitive. To make it interactive, customercentric. Just like the evolution of all technologies. Where do you want to go with this . You have sold your past companies. This was the first one i took public. Most of the days im really happy about that. Depending on which way the market is going. We are in 68 countries today. Growing to 100 countries. We handle about 20 of the 100 million claims. The cool part of our industry is half the world, half of the 100 million claims, are still done on paper. We have a huge opportunity to digitize that. We want to bring a digital lifestyle to the automotives, so people like yourself can have all the knowledge, whether it be service, maintenance, collision repair, you can be as knowledgeable as the most knowledgeable person. The google at your fingertips for automotive repair. Like how you can find some much Information Online when you buy a car. After you buy it, all the care activities. Interesting stuff. Thank you so much. Tony aquila, the head of solera holdings. Our next guest could be the Mark Zuckerberg of publishing. At 21, she started a global magazine. Continuing right after this break. Over the next few months, we will feature a series called small to big, how Small Companies are tackling big problems. We spoke to a magazine companys ceo. We are the worlds leading publishing platform that enables readers globally to digitally read newspapers, catalogs, magazines. A magazine dedicated to women drummers. One of the big challenges we face is how to make sure that the world knows about us. It is not something you can immediately overcome with pr. It is about making sure we are doing a number of things that get content in front of people. One of the things we recently introduced is called stacks, where they can create stacks of content they like. My kids are glutenfree, so they had one with glutenfree recipes. I can see who else is reading it. When you are finding people who share your passion and interest, it creates more comfort. It makes the world a smaller place. We are now north of 80 Million People coming to read issuu content every month. Absolutely we expect to be in the hundreds of millions over the next two years. Watch this space. Our next guest is on the smaller side of things, but growing rapidly. Founder of suitcase magazine. She founded it as a junior at nyu two years ago. She has since graduated and is in london, where the magazine sees 20,000 online visitors a month. Thanks for staying up for us. We appreciate it. Talk about the struggles of running a Small Business i think one of the biggest problems or Biggest Challenges for a smaller magazine is getting people to recognize our worth. Just because quantity does not equal quality for us. Having people realize that is a bit of a challenge. So much of what you do and i was looking at your site, you have stuff on travel, fashion, lifestyle, shopping is how you differentiate yourself. There is so much content out there. How do you do it . How do you differentiate yourself from so many choices out there . We are the first travel and fashion magazine for young people. We make sure that because we are print, that we have spent the hours we dont want you to spend, finding places for you to go to and curating content. That has high artistic value that you will have on your shelf for years and years to come. We just did a package on issuu. How do you get their attention to look at what you are doing so you were included . We actually put our second issue on issuu. We found the format was not quite right for us. We chose a print magazine after months of deliberation because we are a more artistic product moving in that direction. What we use for our online form, we have our website, which has much more immediate, quicker to access action. Soon we will have a tablet, that will be the coming together of those platforms. We certainly wish you luck. This is what you did in just two years. It will be interesting what you do in the next two years. Joining us from london. Coming up, lifetime knocking it out of the ballpark with its melodrama, flowers in the attic. This is taking stock. This is taking stock. Todays market moving headlines. Lets head back to peter cook. Jobless claims in the United States fell last week. An indication employers held back on hiring even as cold weather slowed industries. Walmart posted profits that trailed estimates. They are set to expand lowerformat locations. They say struggles to keep shelves stocked weight on sales. Five new Board Directors at abercrombie. Investors have pushed for the company to put itself up for sale. Another headline, something we have been watching closely, has been california. Suffering some of the most severe droughts of its history. It is affecting many businesses throughout the state. Erik schatzker has been traveling throughout the state to get a closer look. He joins us now from paso robles. What has been the most striking as you walk around . The most striking thing is quite simply the lack of water. You need to come to california to see how dry this place is. This is february. It is usually green in central and southern california. Right now the state, at least this part, is brown. You will see very little green. The vines are dried up, but that is normal for this time of year. It is Everything Else not getting enough water. I came here to talk to these people about how the drought is affecting the wine business. The truth of the matter is other industries are affected throughout central and southern california. Agriculture, farming, ranching. I want to show you what the state of the reservoirs this is where everything starts. California is a mountainous state. Water collected in the form of snowfall on mountains and then is diverted to where is needed, whether it is Drinking Water or farmland. The reservoirs in many cases are at recordlow levels. Some in the teens, 15 of capacity. This is half of where they were in the last severe drought at this time in 1976. You get an idea for how bad the situation is when you go and visit a place like millerton lake. You can stand on the shoreline, where the water is supposed to be, and look hundreds of feet down to where the water is now. You get a visceral appreciation for just how little water there is in the state, and it is only going to get worse because in the sierras there is not enough snow. It has not been raining, has not been knowing, and cities like los angeles depend on the meltwater to the aqueduct system to get to los angeles so people can have water. Not just to water their lawns and fill swimming pools, but to drink in the summer months. I have been reading about californias governor jerry brown, introducing some proposals for emergency legislation to help ease the drought they see throughout the state. Why did we get to such a desperate situation . Just the lack of rainfall, or why are we in this state right now . Excellent question. You will get differing opinions. Some people feel as though the water is being mismanaged, misdiverted to places like the Sacramento Delta for the sake of endangered species of fish. The truth is this is a rainfall situation, Mother Nature at work. I will do better than explain to you. I want to play when asked up from a conversation i had with rusty gregory, ceo and chairman of mammoth mountain, a famous resort in the southern sierras, that caters mainly to los angeles. You will hear him talk about what it is like to operate mammoth in a bad year, and how this is really Mother Nature at work. The kind of year we have had the last couple years, they are good years in Guest