There are more signs of hope for the pc business. Intel reported a 1 rise in sales. More corporate orders helped offset the overall decline in the Consumer Market pulse top that will be coming up later in the hour. I will speak with the cfo. The microsoft ceo has announced new Data Analysis tools at an event in san assist hopeful top it includes a limited preview of the service. It measures data from sensors connect it in the internet of things. Microsoft is taking on oracle and ibm. A federal judge has ruled against apple and threw these old is refusing to throughout an antitrust case. The move allows state officials and consumer attorneys to pursue damages against apple at a trial in july. Plaintiffs are speaking 800 or 2 million. 840 million stop day,r lead story of the the sellout in tech stocks takes a bit of a briefer breather. The nasdaq is down three and four percent for the year. Alsoidual tech stocks were on a crazy ride. Facebook did before rebounding. Searching in afterhours after reporting its first sales gain since 2012. Sales were 1. 09 billion in the first quarter. Profit was 311 million. Ecommerce site alibaba posted a rise in revenue in the last order 2013. Yahoo owns 24 of the company. How much of the sales gain is due to alibaba . How much is due to Marissa Mayer . Gene munster is with us from minneapolis. Market Research Managing Director of shanghai. Headlines about yahoo growth. There are some makes their sales did rise 1 . It is not much, but it is nothing. It is something. It has been a couple years and i have grown. The just light number has been down. That was up two percent. It is pretty modest. In the world of yahoo , where there is a lot of kids turn that the poor will not grow, that was encouraging. It gets easier in the june quarter. Lets give them credit where credit is due. Marissa came in with a very difficult task of turning around a core business that had structural challenges and it is growing. Marissa mayer is also saying that the company is moving through stable and modest growth. She used that word, modest. I will ask you about alibaba. We will get a peek at how they are doing. They are more concerned about growth and how they can keep it up. There is sales growth. Net income is up. These numbers include a single sales the what is your take on these numbers . These numbers are great. That are a lot of concerns the Sales Revenue numbers will be slowing by our word. They had a great fourth quarter. Driven by given china. They sold 8. 5 billion of rotted. The key number is that theyre operating margin went up 54 . Good ifmbers are quite they go into their ipo process in new york or potentially in hong kong later this year. Alibaba will continue to grow. There are concerns that we will continue to talk about. Lets get to that in a moment. I want to correct. Alibaba sales are at 66 . How good is yahoo s is this without alibaba . The business is struggling. It is up fractionally. I would say, how good is the stock . That is a whole different story. You have half the value these and alibaba. When you look at the move in the aftermarket, three quarters of that move is based on alibaba results. How is alibaba positioning it tell in the Chinese Market . Theres so much more going on that we need to understand. They are making acquisitions and big investments. How much of this is moving toward a single unified strategy Going Forward . How much of this is responding to Competitive Dynamics . That is a great question. Most13, alibaba was the dominant ecommerce player. That its platform was able to corner the market in the mobile device sector. What has happened is that they have a they have bought a 20 a. They are buying stakes in a variety of companies. There is a lot of heat on them. A lot of people are thinking that the . 10 platform will do a lot better. You will see a lot of consolidation with . 10 and alibaba. They are making it one of acquisitions. That is why you saw alibaba vent over a billion dollars buying a mobile phone mapping service. That was announced last week. Yahoo has agreed to sell half the state can alibaba when the company goes public. How do you wanted to use that cash . Based on some of the comments, i would say that investors want to give it back. The cfo talked about a 300 billion cash balance of stop when you think about that, they will have the chair dividends. That is part of the plan when they will theres they can alibaba. Investors will get some of that battles how will these the catch . Acquisitions are the status quo. You need a strong balance sheet. What Marissa Mayer outlines around social and native advertising, all of those are the areas if you asked me specifically what acquisitions could they do that could really beef up what they already have, they have slept most of the holes both top is probably just eyeing teams to make some of their existing products that are false. We have been talking about the tech selloff. Chinese tech stocks are also down. China mobile is down 11 . How much concern is there about this within china. Could impact alibaba . Alibaba is definitely concerned. Theyre happy about these numbers. They are probably toting the yahoo room boards to a lot of journalists. You will see it bounce back. It goes to the question you just asked, what should yahoo do . I do not think they should have sold to alibaba. There are few companies that are better positioned for growth. The china story is compelling. You will see it bounce back on tech stocks. There has been too much selloff. How concerned are you about the sellout . Is this something that will continue . With the intel results in the yahoo result, it is a big i have relayed. We will get a rally here. The fundamentals for the business seemed good. In 2008, the fundamentals looks good. A couple orders later, they called articles fell apart. It is not an ironclad endorsement, the fact that the fundamentals are good. It is think urging. Andelling yahoo intel yahoo have had slightly positive result. That is encouraging. I think that this is a nice sigh of relief. We can expect a rally in the tech space over the next week. What is your confidence level in Marissa Mayer . Probably a seven or an eight. I think she has taken a difficult job and done a great job. Set expectations that she managed to beat. That is not too bad. Piper jaffray analyst gene from china market research, thank you both for weighing in of stop protesters are preparing for march for a march outside of twitter headquarters will we are live out either then francisco headquarters. Why should twitter pork over 56 million to the city . You can watch a streaming on your tablet, own, and amazon i or tv im emily chang and this is bloomberg west. The anticipation is holding. A group of Union Workers is marching their with a bill that they want twitter to pay. Protesters believe that twitter got a tax break from the city. They want twitter to pay that back. Megan hughes is outside. It is pretty quiet there. Are we expecting this protest to be big . Saying thats are 1000 people will be meeting at the hall. They say that they will cut off some rushhour traffic. They are headed here to twitter to protest. They are called twitter tax breaks. There are more than a dozen companies. They are wearing them to this area. Luring them to this area. These Companies Get to be exempt from new payroll taxes for new hires. It encourages growth. They are also exempt from salary taxes on top. Sotck. These workers who are protesting are largely Union Workers for top they say that the city does not need to give the suite deals to tech companies. They will stay here regardless. This is about income inequality stop twitter has not paid his taxes. Legally they do not have to stop the mariner San Francisco has been a target of these protesters. We caught up with him earlier and asked about the responsibility of these companies. Take a listen to what he had to say. Everyone has approached the challenge in a different way. I want to make sure that they are doing everything they can to help us. If we have a partner and they are helping me recreate the vacant storefronts. , i would like them to help. The challenges are very visible. That is what i will challenge everyone to do. I am making are still phone calls. He is a big Angel Investor pulls out a lot of Technology Companies have been calling on other companies to step up. Maybe does not pay more money, but getting more involved in the community. What are these companies doing on that run . Front . Part of this deal started in 2011. It was a goodfaith provision that they would be involved in Community Training and hiring efforts. A lot of these companies that signed on and are responsible in some way i will tell you that the critics and the protesters say that those provisions do not have any he. Theres no way to quantify all of that. As you heard the mayor talking about there, these empty storefronts are something that you have seen. In quantify how much these communities move into this area and how much that has changed things. You look back in 2010 and more than 30 empty storefronts. It was the worst area in the city. Within three years, it was down to 20 . You can see it in the development all around here. Megan hughes, twitter headquarters. We will be monitoring that it has. Thanks so much. Still ahead, xl partners Takes Companies like facebook and spotify. We will speak with one of their investors in mobile. Fax welcome back. This is bloomberg west. Google is putting google glass on sale for the general public for one day only. It costs 1500 for access to the program will it is available only to adults living in the united dates. Google has a Patent Application pending. I sat down with a partner at xl partners. Thatptimistic you see google glass will go mainstream . Glass is still in beta. When you talk about itpoint, it is still intimidating to developers who want to develop applications. The reality is that you try the product and you read the reviews. It will be a while before becomes mass market. It is interesting to those of us who live in the valley. It is a while before mainstream adopt google glass as a product. Someone from Coastal Ventures told me that it has zero chance of going mainstream. It is too early to predict. Inn google bought android 2005, everyone thought that the idea of google moving into mobile was not. No one thought that it an American Company would become a major player in operating systems. Years,look back nine google executed that incredibly well. In terms of wearables in general, as a mobile investor, how closely are you looking at wearables . Wristbands arent even going mainstream stopped we are not investors in fitbit, but we are big investors believers in that trend. One of our partners is involved. Th my fitness how. Pal that is a real and durable trend. The fitness aspect of wearables is extremely real and it is accelerating. Even if the glass asked acts are in beta what about people who do not want to measure their life lately . I have plenty of wristbands that i do not want to wear everyday post op everyone has a different view. User of fitbit, i have gotten a lot of motivation from it. You can compete with your friends. It is a motivating behavior. Fuelband and a lot of trenton wearables are genuine trends. What is hot mobile . Years, itlast five was about liquidity and now it is about richness. Android was approached by google in 2005. Now one billion smart phones were shipped is year and 250 million tablets. The idea of mass ubiquity is happening. Despite the fact that we have smartphones, it was apps are still down or not fully integrated. When you look at a Google Service or a predictive keyboard or a web iq, the idea of these ing smart or becom predictive is a new idea. But you are speaking to the cofounder of your app today. Today. Et apps some people think that these are not good for the world. What do you think . We are not investors and whisper. I have had a lot of growth. Anonymity on the internet is not a new idea. Because although it back to chat rooms. These behaviors that people are and peoplebout sharing ideas anonymously, i do not think that now that it is on a mobile device is necessarily better or worse. I do think that secret and likely to havey to use moderation. I have to do it and they will do it. In part of making those communities robust. But what about that chat . Snapchat isa different. It is ephemeral. It is past the tipping point. I do think it is here to stay. One of xls partners talking about hot trends in mobile. We will talk a lot more about the dangers of megafunding at we have been post. He is concerned about the selloff in tech stocks. Are we in bubble territory . Nobody else has repeated the. You can watch a streaming on your tablet, your phone, or bloomberg. Tom. We will be right back. You are watching bloomberg west , where we focus on innovation, technology, and the future of business. We returned to my earlier conversation with long. One company was acquired by twitter. He was most recently involved with this key. Asked to my facebook and google are interested in buying from companies and whether it may be too early. The reality is something you buy for core technology. There are a lot of options. Doesimes the original idea not become completely fulfilled. We talked about android and how google made that a big success. Sometimes you take the team and you focus on other areas. I am reading the same reports that you are. Theres a view that drones could be applied to mapping technology. Navigation or Broadband Internet service. Anyone who looks at it would say that it is pretty early. There has been so much activity in the text is. Facebook was buying whatsapp and oculus. Megarounds of funding being raised. We are talking about three digit andxcuse me, 11 digit round multiple rounds like that this year. What is going on . Are things getting too hot . Weve talked before. There are a number of major revolutions going on in technology. There is a coincident with the rise of big data. We are moving to new forms of social internet. Are an incumbent Technology Company and you are not writing one of these trends, you can get pretty scared. You can get left behind if you are not one of the key players. On the flipside, if you are a target company, and you are the personification of one of these you can beifts, extremely strategic. Intel did an that large investment clout. That is example of that. I have been asking everyone on the show. Do you think we are in a bubble . There has been a tech selloff. I want you to take a listen to this interview. It has been a steady sequence. We are in bubble territory both the if you notice, very few people are saying it will stopped you are the first person who is saying it. No one wants to break it. Everyone wants to cash out. Territory . Bubble if you want to make the comparison to the 2001 era, i think we are not the new majority of companies are being funded and have real is this models. There are real cash flows. It is different from the 2001 keyword. The revenue multiples were cash flow and earnings exist are getting higher. I do think that is a roughly 10 will that. The nasdaq is likely to have him impact on the the stage round. There will be some moderation because of that. As far as companies that have no business model, that is not accurate both top you do not think the growth is sustainable . The funding round that we are seeing, that is not to able to mark i think that valuations are sustainable, but i do not know that they will continue to accelerate at these aim plays face. Many investors are looking at next years revenues. They are pricing their investments off of that. The growth rate has to be there to support valuations. I do not think it will double again. We have seen the private markets. You guys just raised a new round. You are starting your next chapter. These that was a huge hit. What will be the next chapter . We are looking at a broad range of technologies. There looking across software areas that we have covered previously. I think one of the areas that is harder to report on is the incredible revolution that happening on data centers in the cloud. The press reports around these trends in big data fundamentally, whether it is we arefor networking, just at the very beginning of that revolution. Venture capital firms have changed dramatically. A lot more firms are going all service stopped countries in horowitz has been a tinier in that area. Has beenssen horowitz a tinier in that area. You have to find entrepreneurs do you believe in. They often choose us because a a area of expertise partner of mine is very well known in big data. There are a lot of investment in that space. I spend a lot of time thinking about the mobile space. Entrepreneurs will value that vertical knowledge and that access to the network. All of the firms are adding other resources will whether it is helping recruiting or pr. Tot is in addition andreessen horowitz. One of your Portfolio Companies is moving to wholesale. What do you think about that . Xe is an amazing company. Is an amazing company. It is a leader in the handmade market is. One million sellers making handmade goods falls top they are disturbing those products to be etsy website. Now there is an opportunity to distribute them through retailers. Their missiones as supporting the sellers. Partner at xl. Intel is giving insight into its mobile business. To stacy smith joins us next tell us all about it. Im emily chang. This is bloomberg west. We are streaming on your phone, tablet, and bloomberg. Com. Intels transition is making progress. The Worlds Largest chipmaker responded reported a rise in revenue. For more on its transition to mobile, i am joined by the fo stacy smith. This is the first time that intel has rogen out financial details in mobile. Why now . It is how we think about our business. It is how we organize the company. What is different about our Business Today is that we ship to a broad range of device is. We have a very healthy business. We did 5 million tablets in the first quarter. We have this healthy internet of things is this that is growing. Everyone is talking about the internet of things. Bought a wristband maker. The you wear a wristband . Do you think these will be big . I have worn a ris