Engagement in current users and this is overshadowing the tax revenue actually doubled. The costello says the company dines on making twitter easier to use to increase growth but will it be enough . Cory johnson is with me. Is twitter losing steam . Classic example, they be done revenue, theyd be done earningspershare. But that is not telling us the business, what is happening is they are losing user growth dramatically. Users did grow, 241 million, and that is a big number, but when the previous quarter was 23 2 million, they only added one million users in the u. S. They got more publicity than they ever will, and that is a disconcerting sign. And timeline growth declined sequentially for the very first time. Peopleber of times actually a refreshing their timeline. And analyst talked about that. The user growth rate, three point nine percent, you can see how dramatically the user growth is slowing down. The timeline thing, maybe it is not a bad thing people look at fewer timelines, if they find what they want. That could be a big deal to fix that. The times people spend is more important than the number of timelines they look at. Cost alone talked about all of these things theyre doing to try to attract new users, make it easier to join twitter and to understand twitter and he expressed confidence they will be able to do this. Howaid he does not know fast, take a listen to what he had to say. What that looks like and when i will occur is not something can guess. It will be the cumulative affect of those changes we make to the product. That we believe, confidently, will have that impact. Said, asher thing he they make these changes, they may be sacrificing timeline views in the short term. The idea sounds like they are quality. Increase i was having a conversation this morning, he read the transcript, he had an exact different take on what dick like. O sounded we talked about how emphatic o sounded. Costol i think the words belie the problem. Even the bullish analysts were wenting, jeez, you just public in your user growth is falling apart. The u. S. User growth is below two percent. Those are weak numbers. And the vast majority are international. But the revenue is coming from united dates. I want to bring in palm paul sweeney. He covers twitter and joins us now from new york. What do you think . Do we need to give them time . This stock has become a little bit of a show me stock, and that is clearly not what it was price for prior to yesterday. Given the valuation, people want to see accelerating growth, growth, engagement and what we heard yesterday as we have to reset expectations. It has become a little bit of a show me stock. It is like facebook when they stumbled, the whole mobile revenue story. This is a company that had to take a reset and now it is up to management to show they can drive engagement. But of twitters if twitters growth is slowing down, how big can it be . A lot of investors are stepping back and saying, is this more of a niche play, social service . 41 million users relative to the billion users at facebook, investors are trying to gauge how big the twitter universe can be. Answering that question goes to, what is the revenue pie for twitter . Can they grow into this valuation . A lot of people are reevaluating. Are always talking about businesses, not stocks, but i think the stock is the story, moneympany took so much off the table, i wonder what effect off all in the stock will have on the business, and on the people that work at the company. We have heard this, particularly from Tech Companies, and are there is a hiccup, they take a hit to their stock, what we hear from a lot of successful stories, we can take facebook, to worry about the stock, make to the right decisions, do what is right for the business and the stock will take care of itself. This is a stock that was priced to perfection yesterday. The Quarterly Results were far from perfect. The timeline view situation bother you, this change in engagement of current users . That is a big issue because when you are selling advertising, whether it is traditional or digital, you are the size ofmetrics, the audience and the engagement. How long do they stay . Adt goes to how relevant and can be to that user. To the extent you have issues that presents a challenge for the folks trying to sell spots. This is where i disagree. They could have a lot fewer timeline, timeline does not measure engagement. How many clicks they get. For example, the users stayed on one page and followed every aspect in more depth and spent time, that would mean more engagement, fewer timelines. I would not be surprised if, over time, we would see fewer metrics out of this company. That may be the case but unfortunately for the company and for investors, that was not the story they brought to the marketplace several months ago. It is not the story most of madison avenue is comfortable with. Right now the Company Needs to go back and say, what is the best environment to monetize our user base . Is a number of views or the duration of those views . A kind of have to rethink their strategy. That is what we heard last night, they are thinking about new products, however they want to define that, and they need to bring that message to madison avenue and show this is not a niche medium but can continue to be a mass medium similar to google or facebook. Downile twitter shares are 20 , yelp shares are up 20 . What is going on . Yelp had a good quarter. Very good guidance for the First Quarter and for 2014 overall. Swap story,ve a people swapping out of twitter and into yelp, and or as well, which had a disappointing quarter. One of the issues is yelp is one of the few examples where in thernet company has cracked local advertising code. The last frontier for internet advertising is local. Even google sites the struggle of targeting local advertisers. Yelp is an example where they are doing a very good job. Watching how that develops. Paul sweeney, thanks for joining us today on bloomberg west. To the mobileovie strategy, we get the latest on disneys business from bob eiger. Welcome back to bloomberg west. I am emily chang. Hisis showing growth in first fourthquarter earnings report. Were were up 13 sales up 13 . Joined, Tim Armstrong surveillance. Take a listen. We have record results for last decade. A lot of that is driven by advertising, 20 three percent Global Growth in advertising and that is coming from video, the absoluteeally, tailwind from Consumer Usage on digital services. Aol also took up 5. 8 Million Dollar charge for layoffs on its patch local news service. Disney was also out with earnings yesterday. They got a big boost from the animated hit frozen. Net income soared by a third. Jon erlichman sat down with chairman and ceo bob eiger. They talked about the quarter and he joins us now. Jon. Emily, you compare this story to twitter, investors are disappointed, one of the reasons they were pleased with disney is that element of surprise coming from the box office. Specifically with the film animation,der disney which is having a bit of a turnaround. Now that it is entering china and japan, we asked bob biker if it could generate a billion dollars at the box office. We are thrilled with frozen, of course. You hit the nail on the head when you talked about the pixar acquisition in 2006. It would still designed not only to a neighbor pixar to continue to prosper, but to turn disney animation around, and i think this film proves that has been accomplished, although we never rested on our laurels. Million in 870 global box office. It just opened in china. It did extremely well in south korea. I think the biggest animated film there. That bodes well for those territories. Although they are not the same. I think the possibility exists, but i would rather not under the word until we are there. One thing you did say was it has real franchise potential. I believe i heard you talk about the possibility about going to broadway. When you said that it made me think, he is thinking sequel. Could there be a frozen sequel . I dont want to rule anything out. As wee been as specific can be about other plans. Specific,obably more but we are very excited. There is great demand for it. Not just across our businesses, but in marketplaces around the world. Franchises, we talk about something that is successful across businesses and territories over a long time. Of thosehis checks all boxes. Cable consolidation, time warner cable, charter, are they going to come together. Is that good or bad for disney . Does not have much of an impact as far as we are concerned. Disney, for espn, instance. Wellrks that are not only branded but really in demand because of their product. Is consolidation or the ownership of the existing multichannel business changes, we will be as in demand as we have been. You cant go after the multi channel subscriber without offering them our product. It is not really mean that much to us. We believe in technology, for a number of reasons. I have articulated this often. It gives us the ability to make the product better. Movie, tv show, or a theme park attraction or experience. Technology is giving us tools to paint better pictures and create better experiences. It also is creating much more consumer, andthe vice versa. I love mobile technology because, particularly in television, if you wanted to watch tv, you had to watch tv on a fixed screen attached to the wall or on a shelf or on a cabinet. In the home. You could not watch tv elsewhere. You now have the ability to do that. That is only going to grow. To accessility products grows, your consumption is going to increase. That is a great thing for creators, and distributors. On the theme parks side, technology is a very powerful friend to us and to the consumer. Wants, evenconsumer though the experience is great, they want a better experience. They want to have more fun. They want to do more things. They want to be able to customize the experience they have. We have technology that enables that to happen. What he had to say about the importance of mobile. Reading the iger tea leaves, what does that mean . They will continue to push ahead with a lot of apps. Even though they are tied to cable, people want to watch stuff anywhere, everywhere. They have to do that but also in a world like gaming, where they have struggled, they might license the technology so there are disney games on your phone. Arequestion is whether they making them. A great interview with bob iger. Women are leaving highprofile Venture Capital firms to start their own. We sit down with both of them to talk about why these veterans are going solo. This is bloomberg west. I am emily chang. Top 50 venturehe capital firms in the United States do not have a female partner, according to a 2009 study. Two women are leaving wellknown firms to start their own. Teresa is leaving excel partners, and Jennifer Scott is leaving Draper Fisher jervis and, both of them starting aspect ventures together. For he and i sat down with them to talk about why. I think for jennifer and i, we felt like this is our entrepreneurial thing. Vision and you have a shared vision and your being called to something. We thought this was a great time to be focused on earlystage investing around mobility as a theme through the stack from enterprise to consumer and to work with somebody you have known for over two decades. How about you, jennifer . Was this a difficult decision . I have been in the business 17 years. It is a great opportunity and a great time and if not now, then when . We have been fortunate in our careers. Working our way into managing attner roles, and now we are the top of our game and we thought this was an opportunity for us to do Something Different and start a different kind of firm and focus on Building Companies for the longterm. Now is the, you say time. Is now the time for fundraising . What is the fundraising environment like right now . Towe have both an fortunate have successful careers and right now we are founder funding. We have jennifer and my capital. It is more than enough to last for two or three years. You are betting your own money. Absolutely. We have been far and heart and we have been getting proactive hand raising from people we have worked with, wanting to invest. At this point we are excited to be investing our own capital. It is no secret the industry is dominated by men, 11 are women and now we have two women founding a from together. How do you look at the fact both of you are women . Well, we are women. [laughter] that aspect is there. You know, i think our view is that we want to invest in companies that are focused on earlystage, building longterm Successful Companies over 10 plus years, whether that is the healthcare space, or earlystage, building up the public alien dollar companies. Those companies happened to be founded by men, so we will equally back men, women, people from all different backgrounds and other aspects. We actually find having diversity of views in the boardroom, when youre trying to tackle tough challenges and be creative, having different perspectives, whether operating to the bottomadds line and there are tons of studies that show that. Fact you arenk the a woman gives you an advantage because of your different perspective . Majority ofom the the industry. The data shows having a different perspective in the boardroom around gender, something they have been able to study through private company and Public Companies has shown it does improve the bottom line and increase the chance of success. Jennifer scott, and theresia gouw, founder of aspect ventures. It is 26 minutes past the hour, which means Olivia Sterns is in new york. How is looking . Stocks are on the rise, the dow is now on track to post its biggest gain of 2014. It is on track to post its biggest gain since december 18 after jobless claims drop for the first time in three weeks. We are also watching a couple of individual stocks, the first one is pfizer, the drugmaker. They have won a ruling to block generic rulings generic versions of lyrica until 2018. It has become recently important to pfizer ever since they lost their patent to lipitor. We are also watching shares of 21st century stock, matching fiscal secondquarter in earnings with . 33 a share. It still beat analyst predictions spurred by programming fees and its stake in germany. We will be back again in 30 minutes. After the break, more bloomberg west. Youre watching bloomberg west. Chang. Ly sony is trying to save its business, trying to save its restructuring plan. It is trying to sell its unprofitable pc unit, cut 5000 jobs, and split its tv business into a separate subsidiary. Sony is forecasting a 1. 1 billion losses the school year. Again accepting new subscribers without it has regained enough capacity to handle the demand, but in atlanta, the service is just so out sold out. Battle atng a legal the Supreme Court with broadcast networks. Apple has removed bitcoin app from its store. It allows users to send and receive digital currency. The ceo says he received an e mail from apple saying the cap as being withdrawn due to an unresolved issue. Is technology and the Tech Industry really responsible for rising rents and housing in San Francisco . Reportis that with a new on tech hubs across the country. The chief economist at truly a is here with me to discuss more. So is Technology Beat reason that rent and housing prices are rising so fast in San Francisco . Were definitely seeing rents rising faster in semper cisco and another tech help them we see in the rest of the country, and it is much less affordable to live in San Francisco them pretty much anywhere else, but these differences have been here for a long time. The affordability gap that separates San Francisco from the rest of the country has been here long before you and i were all using emails. Ok, so you are saying it is not necessarily technology that is causing this to happen. Certainly not the whole story. What we are seeing across these tech hubs is that the cubs were drawn to people, Tech Industries were drawn to places that were expensive to begin with, places that have good weather, universities, other industries that were already there, so most of the gap in home rises that we see today between tech hubs and other metros was actually in place 25 years ago. Would you go so far as to say the Technology Industry had nothing to do with rising rents and housing prices in San Francisco . Technology is a big part of Economic Growth in the bay area. It is a big part of demand. In housing prices as a result are Strong Demand. Certainly the Technology Industry because it is the heart of the local economy is helping but up prices and rents, the other pieces apply. San francisco is an incredibly difficult place to build new housing. Other tech hubs across the country like austin and raleigh have a lot lower home prices and a lot more construction. So supply matters, too. It is not just the tech fueling demand for housing. So our rents and housing prices rising here because im francisco is a San Francisco . Only so big, it cost so much to build big home stand the area surrounding is so great . What makes San Francisco so extreme is the supplyside. On one side, bay on the other, and hills know her by, and also because of regulation, it is difficult for developers to build new housing here, and as a result, we see 1 10 of the construction and South Carolina in semper cisco that rally, South Carolina band in San Francisco raleigh, South Carolina has. Did you find anything you did not expect . One of these surprises for me is how much the gap in a fellow and affordability existed way five years ago. It is often hard to get that Historical Perspective because we are focused on