Johnson with a look at your bloomberg headlines. Mogg suingder of beats. Apple is in advanced talks to reported 4. 3a billion that could be announced next week. Apple supplier foxconn says halting production of the vietnam fact rant on monday for safety precautions swepta wave of protest the country. Rights broke out at various factories over an oil rig. Rebranding it as terminal Samsung Galaxy s5. They will deck up the terminal from end and with Digital Screens showing the new phone. The promotion starts on monday. Back to the lead story of the day. A rocking time in the Public Market but valuation of many hot startups are soaring and show no signs of cooling off. Uber in talks to raise a more funding nearly tripling its valuation from just last year according to people with knowledge of the situation. In the meantime, pinterest has just raised another 200 million giving it a valuation of 500 billion up in just the last seven months. Are these Companies Really worth this much money . If so, why arent they going public . Fromrlichman is with us l. A. University of florida finance Professor Jay ritter joining us from gainesville, florida, and Asset Management founder and chief Investment Officer here with us as well. Everybody, thank you for joining us. Michael, i will start with you. 5 billion for pinterest, 10 billion for uber. Are those fair . Are excited about those two in particular because they have Enormous Network effects. Support and aical whole ecosystem. You are looking at the growth and that is why they are putting this type of valuations on there. I know you do a lot of research on these numbers, j. What do you think about these two particular companies and the valuation going up so much in such a short time . Moesould echo michael opinion that some of these have network effects. The valuations are based upon optimistic assumptions, but google has demonstrated just how profitable targeted search advertising can be. Pinterest has the potential to make a lot of money with that targeted search advertising. These venture capitalists want to put so much money into these companies at such a high valuation . Starting to just make money. Over we know makes good money. Moeny. We know makes guido knew of there even close to turning a profit. Whats interesting is one of the dynamics i notice, and mike you spoke of this, you see different kinds of investors in these late round. Mezzanine e or f these are investors you would not normally see in things, fidelity, t rowe. Thinklay all rounds but i you see a lot of these that would have gotten into the Public Marketplace at fidelity getting involved now. You have a very interesting business that plays in this as well. Fidelity, t. Rowe price, blackrocks of the world are getting involved in companies that historically, the good old days, they would have already gone public. Done an amazing job in investing in growth companies. There has been a real void and you see the hedge fund stepping into that void and they see it as a way to get a toehold in great businesses earlier. There still a gap in the marketplace. A company like interest will be competing for ad dollars with the likes of google, facebook, twitter. We knowchman, how do for sure that theyre going to be able to win those ad dollars . Think they are in a great position because people go to pinterest with intent. One thing that makes google so valuable is the thing that you go there and search for something specific. Thats why, in some ways, theres a certain amount of pinterest envy over at google. I think its also why this is not necessarily a conversation about the valuations being multibillion dollars. Its more about the fact that you have venture capitalists who are hungry to invest because they have money to put to work. Theres scarcity and the fact that theres only a few companies that look like interest and pinterest and uber. If they dont invest, someone else will. Are we in a bubble . What makes whats happening now any different than what happened a decade and a half ago . There are several things different. One thing thats a bit similar. Facts just mentioned, the that you have a lot of Growth Capital and esters with money to spend has been pushing up the evaluation on some of these pushing up the valuation. I would make a distinction between Companies Like pinterest that have a Niche Network effect aware, potentially, they could be very profitable without competitors coming in and severely eroding the profit margins. On the other hand, we have more concern about a Cloud Storage company where the barriers to entry arent there. If we go back to the late 1990s actually before the tech bubble reached its height, in 1996 and thereabouts, there were a number of Telemarketing Companies that went public. At that time, a lot of companies were outsourcing telemarketing and a number of them went public. Were very high valuations reflecting very high future profits but the barriers to entry just were not there. Case, publicle Market Investors wound up with negative returns. Late 1990s, i remember them well. You helped start an investment bank. Why arent companies this s ize going public . Whats changed . Likes its not as fun to be a Public Company than it was in the 1990s. There are all sorts of issues you deal with that frankly have nothing to do with business. Like audits. Sarbanesoxley has added some regulations. You spend on being public is an enormous commitment. Particularly with the fastgrowing, dynamic businessman you need to spend all your time on growing the business and executing, to take the kind of resource and do Something Else with it, who needs it . Particularly when capital is available to fund the growth. Looking to raise potentially up to 1 billion. If they can get that on the private market, why would they want to go public . Twitter, workday, they have been getting slammed. The case of twitter, i think because people were comfortable with where they went public at that then you talk about a 40 billion or 50 billion company size and all of a sudden, you look at the math behind these numbers. Theres a group of Ad Technology stocks. Youve seen a lot of these Companies Grow and some of them have been acquired. You are that there are companies that can avoid going public but there are some that went public as they did not want to be the standing. N sometimes you go public because you want to survive. Part of the story there is also greed. That story, for the most part, has not worked out well for Public Market investors. J, talk to us about whats different about Companies Going bubble time . Versus one big difference is the maturity of the Companies Going public today. In general, other than biotech, they have revenue, usually nonprofit, but much more than a business plan. To sarbanesoxley, another enormous reason why we are not seeing a lot of small tech Companies Going public and that is because most of them are never going to go public. They will sell out in a trade sale. Getting big fast is more important than it used to be and there are some companies that, theytandalone business have very legitimate strategies. For a lot of technology companies, selling out to a big tech player like oracle, google, or Cisco Systems is a valuemaximizing strategy and they are not being built to go public. They are being built to be sold. A quick last word here . To jaysre fact comment. During the bubble, 10 million in revenue. They went public and had a 1 billion valuation and when ankara in less than a year. Its a very different environment. Maybe no profit. More runway because they have more case. Fromchael moe and j ritter the university of florida, thank you all. The liberating its public debut on the nasdaq, we talked to the ceo about why he made the decision in the Public Market right now in this environment. Thats next. Welcome back to bloomberg west. Im emily chang. Toh valuations and deciding stay private during a volatile tech market, one Company Turning to the Public Market is true car , the auto buying website opening on the nasdaq. Marketedbelow the range of 1214 dollars per share. Cory johnson is still with me and the ceo and founder is with us now from the nasdaq. The stock is up 17 since the open. Why did you decide to go out now versus waiting a little while . Obviously, its a choppy market. The decision to go public is premised on where we are at in terms of building the brand, awareness, and the size of the company. Weve gotten really good at predict ng and forecasting the business at this point. We have a lot of confidence that we do prioritize profitability along with growth and we have the ability to balance those factors out. It was definitely a tough process getting out and we are really glad to be public. We are looking forward to driving great returns for our shareholders. Scott, as a read about your likeess, it looks datadriven, lead generation for the car sales business. Is that fair . Were different family generation. We are not really focused on getting leads to dealers. We are focusing on helping people buy cars in a different way. We provide a no upfront cost, no lead cost him a no impressionbased cost or advertising with us. They pay only when they sell a car because we can track a customer all the way through. We are the only fully market channel. Were focused on completely reinventing the way we buy cars by empowering consumers with information. Have a reallyguys interesting comeback story. There was a lawsuit that took you guys to the brain, really, and you sort of changed the way you did anxiety company and truly came back. Tell us about that and how you overcame it. It was not a lawsuit. It was a lot of industry resistance. The notion of transparency and everyone in the room knowing what everyone paid for a car is a pretty empowering moment. For a dealer, its pretty terrifying. The idea that no one will make a price decision thats a bad one is terrifying. The intuition about sort of what we represented is where we got into a little bit of trouble as a company. We had to get right on message and focus on serving dealers as much as we served consumers. You can see the numbers where you have just seen tremendous Revenue Growth acceleration. Im looking back at a couple years ago, minor growth, then cost were in line. To what do you attribute that and and how much longer by continue without costs spiking . Its a powerful network effect. I think true car is a really remarkable brand for clarifying what we really feel a lot of anxiety about in terms of buying a car, you have the ability to bringing consumers and the dealers on the program sell more cars. Then they tend to get more competitive on price and they tend to attract more consumers. You find a real market clearing mechanism but you also have something good for both sides of the equation. Everything inn the right direction. I understand youve been an advisor to tesla, facing some similar regulatory issues you have faced. Whats been some of your advice to tesla and elon musk . I have mad respect for what elon musk and tesla has done. Its a totally different business area we serve franchised dealers wanted it to consumers looking for a new way to buy a car and this is a network of 8000 certified dealers but all believe in doing business a different way. They believe that truth and transparencies a better way of doing business. We focus on helping them and the consumer to find a Better Process and a better experience to save time and money. Scott, youve raised a lot of money and you have some stock to do something with. How will this change or business . We have been a thinly capitalized does this for a long time. We are a venturebacked startup and tension comes from that. We are a nascent brand. That,ou look back at thats about 50,000 cars per month being originated and sold over the platform by true car dealers to customers. We have a long way to go. We want to invest in that growth and solve more of the problem. Today, were really focused on price discovery and we want to begin to help people through extensions into loans, leases, and trade to bring the deal around the customer together. True car founder and ceo scott painter, thanks for joining us. Given the allamerican mall a the newh facelift with digital storefront technology and one of its flagship malls. That story is next on bloomberg west. Welcome back. Im emily chang. They have hired a head for the google glass division. She was most recently cmo of art. Com inches experience ranging from calvin klein to coach and bausch lomb. To wiring the world series where we are focusing on how technology is changing retail. On theireople shop phones, traditional malls are turning to tech. Westfield is the largest mall operator and its flagship new took thell, there they wraps off of some beefedup touch screens. Johnson, editoratlarge, is back. Do we want our Shopping Experience super charged . Commerce happens offline. The experience is Stores Starting to change the way even retailers are setting up shop here you check us out. Setting up shop. Check this out. This is what it could look like in the future. Its just like a tablet at home accepted seven feet tall. Testing the digital storefront in paramus, new jersey. Its windowshopping, exploring and learning whats available. Rom there, visit the merchant the displays look like mirrors until you get close and thats when the technology kicks in. Lcd, cloudbased controls for realtime. The display window and seeing whats available, you give the shopper the opportunity to get larger than life imagery. Its the brainchild of westfield labs and a broader trend to innovate physical retail stores. Walmart has its own and so does target. The big challenge is making sure we are grabbing the attention of shoppers and people who are time starved. We want to make sure we have their attention and provide the greatest, most useful experience possible. Emily, if you think thats ridiculous then you have not sat at a restaurant and text of the person across from you. Collect sometimes its easier to find what you want online and you just going to the store and actually see it, know what it looks like. I cant imagine a world when you look at the shoe on the giant screen. Maybe you dont know the shoe exists . Up, a giant yellow amazon locker has appeared in downtown San Francisco not far from right where we are right now. Whats inside and how could it help amazons business . Thats coming up. For Bloomberg Television on the markets. Im cristina alesci. Lets get you caught up on where stocks traded today. Little change but in the red for the week after selling off yesterday, investors handed a mixed bag of data and an unexpected drop in Consumer Confidence offset by a jump in april housing starts. Russell 2000 index raising erasing earlier losses after falling for three straight days. For on the market, im cristina alesci. You are watching bloomberg west where recover innovation and business. He have long been a leader when it comes to the software behind 3d printing that now they are getting into 3d printing hardware as well. My partner and editoratlarge Courtney Johnson cory johnson is back with more. An impressive corridor and they unveiled a new open Source Software platform, spark in autodesk the first 3d printer for them. Really interesting but youre not just getting into the making of printers for a software company, which is weird, but also redefining the way the Architecture Works in 3d printing. Why did that redefinition need to happen . For a long time, i had been fascinated by the promise and frustrated by the reality. A wanted to put together Software Platform to move it to the next level. Preandroid, there was just a whole raft of os for phones and now there are two in the world and you just make your selection. We wanted to raise the level to that. What is it that needed to evolve . Is reallyng industry only growing at about a 20 rate and has been for the past it teen years. People are hearing about it and you guys are the leader in the software to design to get printed by 3d printers but what was it specifically you are not seeing . A 3d model. Thats what we do. We make the 3d modeling software. There were a lot of hurdles getting from here to there. Unreliable. Ere theres a lot of steps involved and it just needed to be simpler. Be without their needed to more innovation amongst the printers. By providing this like google has done with the android operating system, there are more people competing in terms of Great Hardware devices. Android is virtually free whats your model . Like same. Virtually free. Open license, anyone can have it, anyone who wants it. Are you getting into this business in a big way . Thats a whole sales effort, distribution, supplied the last tick or the resin to go into these things. Yes, but letsr back up a little. We grew up in an era where people said you could not do hardware and Software Like it was some unwritten rule. Weve also seen huge successes. Apple in a big way, google, Microsoft Xbox is incredibly successful. Hp, oracle. I think it will become standard. As a matter of fact, one of the very few systems in which hardware and software have been intel. D is we are getting into printers. Bringing out the printer later this year. Talk to me about what this does for the expansion of your business. You have to have a sales staff on a global level that knows how to sell treaty printers. Arehe biggest challenge we finding and its probably due to where we are in the process right now. Its easy to build one of someth