The secondplunged in half of trading after rising more than 3000 in the last two months. We try to uncover whether this Company Actually exists. Ceo such in a della outlined his companys strategy in a memo to employees. He says that organizational challenges are needed as on mobility,uses cloud, and mobile. Pc sales are down, and tablets sales are starting to fall for the first time ever. Amazon asking the federal Aviation Administration for special drone testing permission. The ecommerce giant says its drone scanned flight 60 Miles Per Hour and they want to test them outside the federal governments current restrictions. This is to speed up a plan that would deliver packages to your door via drone. This literally just happened. What exactly is amazon asking for . Amazon is asking the government for leeway in terms of how it is testing the use drones jeff bezos was to use for delivering packages. So right now, the testing of drones is centered on a few areas. Amazon is saying let us do it in our own backyard, if you will. Youre talking about the copter. Copter octo people have said this is not happening a time soon. Other people of been more optimistic. I dont know is it a few years out. Document, they revealed for the faa, they talked about how they have some that can fly 50 Miles Per Hour carrying a fivefound package. Fivepound package. They talk about how large portions of the packages they deliver every day are very light, so they lend themselves to this sort of delivery. I do not know if having these drones will be dropping dead at your house anytime soon that could be quite a few projects outages. Packages. This fit into amazons Broader Vision of taking risks and World Domination . It seems like that is what they want. A thing here is speed of delivery and shrinking the amount of time between someone pressing by that and the package arrives at the first up. Building fulfillment centers, closer and closer to big metropolitan hubs, trying to get them closer to peoples houses. This is an extension of that. Drones coming from these warehouses to drop off a package. It kind of seems out of Science Fiction almost, but jeff bezos was criticized a little bit when he used 60 minutes to show this off as a publicity stunt. But they continue to show that they are serious. And they have been testing out there grocery their grocery delivery service. I am actually a prime fresh customer. It has been interesting. The groceries come super fast. And you can order nongrocery items and get them in your amazon fresh delivery bag. So, theyre really moving fast when it comes to getting things to your door faster. Yeah, absolutely. Their business has grown dramatically. Just in the past week, if you think about the Different Things they are dealing with they have this ongoing atoll with the Book Publishers battle with ebook Book Publishers. They are being sued the government over child apps, for inapp purchases on kindle tablets, things like that. They are everywhere. Bezos, the ceo, his ambitions are as big as ever. Thank you so much. I want to talk to you a little bit about sync technologies. We mentioned this on our early show. It has never made a dime. But as of today it is worth more than aol, verifone, amd, and the number of technology companies. Shares of risen more than 3000 in the last two months. At one point they were up more than 33,000 . It was a penny stock back in may. At there are signs that the party may come to a crashing end. Shares ended just under 14. They did hit a high today before the 37 plunge. Special itself as a marketplace. The company is headquartered in belize, incorporated in nevada, and list say single employee, the ceo. What is going on here . It dropped 20something percent right after we had a conversation on our show. People are seemingly wising up, and yet this thing is worth 4 billion when the product is unknown. Is there more to this company echo company . Is astonishing, emily. We have spent a lot of time try to figure out exactly what is going on with this company. You go to the Otc Markets Group website. They say, buyer beware. Questions about fraud, spamming people. We tried to track down their headquarters in belize. We spoke to someone in the Office Building who said, we know nothing about that suite number, that company. We have not been able to track. Own the single employee listed no revenue, as you pointed out. Huge mystery as to what is driving the stock. It is certainly getting a lot of attention. And people are taking a closer look. We will certainly be paying more attention to a going forward. There are reports, tom, that there was a barrage of tweets in june saying the stock was on the way out. The stock was going up. Stock was going up. And that may have been was started driving this thing up. We are in an environment where people are looking for what is the next big thing in tech . What is the next big thing in social . What is the next big thing in digital, on the web . People are looking for places to invest. Obviously there were a lot of people who got behind this. As you said, this as a market value greater than amd or aol, several other big tech companies. A lot of people bought into the hype on some level, thinking there was something there. Itmingly out of the blue, has come onto everyones radar screen today. I think it is a testament to the environment we are seeing and it is a Technology Sector where stocks are going up and up and up and everyone is wondering when they are coming down. It is interesting when you talk about a bubble in valuations. Is facebook overvalued . Is twitter overvalued . But here is a company as far as we know, no assets, no revenue. Someone made a lot of money on this grid this is not a joke. Of moneye made a lot on this. This is not a joke. I shudder to think the people who will lose money on it. We have not been able to verify any information other than what we saw in the filings. We are trying to track down this company, what exactly they do. You get on their website, they offer you information about how you can get in touch with the liberties and Venture Capital celebrities and Venture Capitalists. It is something that people might find intriguing. As you dig deeper, they are asking for information, to deposit funds into a paypal account. There are aspects of the website that do not work properly. The basic information that you would need, even if you were willing to give away your money for such a questionable venture. Right. Has fcc said anything the sec said anything . Is their apparent fraud . I cant speak to that question. We have tried to reach out to the sec. They are not commenting on the issue. You have to think someone is taking a look at this given the rise in the stock and the potential that someone is going to lose a lot of money here. All right, tom giles. We will keep an eye on this. Tom giles, thank you. Ella says nothing is off the tablet when it comes to changing the culture at microsoft. Hear more from his letter to employees, next. We are streaming on bloomberg. Com, apple tv, and amazon fire tv. Welcome back to bloomberg west. Im emily chang. Bringing charges against amazon. They are saying that they do not implement measures to prevent children from buying items on their parents account. Amazon offered refunds for unwanted purchases. In a new memo to employees, we willella writes reinvent productivity to empower every person and organization on the planet to do more and achieve more. That microsoftw sees plenty of opportunity in mobile. He says in the next few years we will see many more categories above. Microsoft will be on the forefront. Amid a new report that microsoft may still have a bright router selling its windows operating system. Sales fell just under one percent in the second quarter, the smallest quarterly drop in two years. Shipmentss the tablet declined for the first time ever. What is the future of tablets . Pc . Microsoft . Joining us from boston, we have the ibc chief analyst. The pc may be alive, but it sounds like the tablet is dying . What is going on . Is theseoure finding categories are settling out. It it was an interesting dialogue for the last few years. Backe needed these lean consumption devices. What we are seeing are these tablets are propagated many, many different types. It does not give you the lean forward that you need, especially in a business environment. We expected this. We see it is starting to happen. We see it is starting to stabilize. We are seeing the consumer segment. What you will see in the future is a shorter lifecycles, people upgrading faster. I think you will see stabilization on the pc side. Think . Is there more hope for pc then cap list tablets . Pc is in a tough spot. Every time someone predicts the death of it dead. S are not that story is an old, crazy story. Ritas look at the resettlement of what is going on. Beginning of the year, i wrote a column called the posttablet era. Because i think the signs were starting to show up even then we were going to see this tablet markets that allow. The other thing we have to bring into this story are smart phones. All of these categories start to lend together. Blended together. When you talk about having a fiveandahalf inch screen, six inch screen, like we will see 6 and somehone sung note, you ask, why do i need a tablet . Maybe the best combination of devices is a large phone and a pc. That becomes the ideal combination. And anecdotally just for myself, when i am on the go, i use my phone. When i want to get work done, i use my laptop. I do not really use my tablet. I want to get to this memo from satya nadella. It was bold, inspirational. It was very long. What is your take . What are you pulling out of it . What i pull out of it what i thought was fascinating was his acknowledgment the Tech Industry does not look to the past. It looks to innovation. It looks to the future. I see stocks coming out and saying i disagree with your opening comments a little bit saying it is all about services. I think microsoft is all about services. They are about enterprise, consumer services. That is the language of how people get things done. They want to unlock the value of the services in addition to things like link, share point, skype, one drive. I think what they want to do is differentiate on microsoft products. A brighter light on microsoft devices. Segmenting things into the cloud, moving to the cloud, i think it is a continuation of a long strategy, and frankly a very good articulation of the fact that microsoft wants to participate on all kinds of advice devices with their services. And yet they are putting resources behind surface pro 3. This is the tablet they have lost a billion dollars on. 3 the thing with surface pro they are calling it a tablet. I think they should be calling it a hybrid. It is really one of these 211 devices. It is more like a laptop . Impliesng it two in one it is 50 tc and 50 tablet. It is not. Five are 95 pc and percent tablet. That is fine. Yes, they are competing, but they are not competing that much. There is plenty of opportunity. I completely agree with crawfords assessment. I think this is a very smart move by microsoft. They are setting themselves up to be able to provide services regardless of the underlying platform. That is where they differentiate themselves from both google and apple. Are muchhose companies more closed. They are not as willing to open up their services to people. Microsoft is saying, you know what . We will continue to do our os, but weur own devices. Hese other we will do office on android. Ella the guy who will turn microsoft around in a reasonable time . Optimistic, emily. People are excited at microsoft. He is trying to drive more innovation at microsoft. As bob said, the next few years will show as weather ann end or modulartion works. Microsoft was to take advantage of this modular world. Is moving there through services. I am very optimistic he could turn the ship. All right. Thank you both for watching. We will be right back. Welcome back to bloomberg west. I am emily chang. And more questions about a uber driver on a highspeed chase. His latest ride in washington, d. C. Was like an episode of cops. Avoid aer took off to taxi inspector and ran red lights, racing down the highway. He and a fellow passenger even tried to get the driver to slow down. The passengers got out when the driver was ordered on in a bit ramp. Uber says the driver was fired. Campaign to make potato salad seems to have lost nearly 30,000 overnight. Overiday, it had raised 37,000 to make potato salad. We reached out to the kickstarter for comment, but we did not get a response. And netflix is looking for someone to watch movies and tv and describe them and add keywords to enhance netflix recommendations. They will also work on algorithms to work with a viewers watching history. The catch is it is in the u. K. The stub does not exist in the united states. We know. Numerals that could impact your Summer Travel plans. You can watch us on bloomberg. Com, apple tv, and amazon fire tv. Time now for Bloomberg Television on the markets. I am julie hyman. Resumption of the declines we saw earlier in the week after a pause it yesterday, set off by concerns over financial instability in portugal linked to its secondlargest lender. We did see those losses shrink a bit by the end of the session, but it down across the board for the major averages. Bloomberg west you are onching, where we focus innovation, technology, and the future of business. Im emily chang. If youre heading out of town, charger relict run x. The tsa is raising security for some passengers at u. S. Airports and it involves mobile devices. Now from Reagan National airport to explain why your phone needs to be on when you go through security. Whats the latest . Hi, emily. The big question we are asking is did they find a phone bomb. That is something we dont have the answer for. At this point in time, tsa has not named a reason or specific threat or incident for the new rules. All we know right now is u. S. Authorities have heightened the alert for potential terrorist activity from al qaeda stemming yria, andn or s some worry that could be a u. S. Airliner. The department of Homeland Security sunday announced a directive requiring u. S. Bound travelers from europe, africa, and the middle east to power on their phones and prove they are real and not disguised explosives when they go through security as they are about to embark on the plains to the united states. Now according to Bloomberg News, that rule is being expanded to domestic flights here in the united states. According to too few people according to two people familiar with the matter, they were not allowed to say their names. We asked tsa officers if they do about the new domestic requirement. They said they did not know, but something we all know is the tsa has quite a few of rules on the travelers. In 2001, the shoe inspection requirement from the shoe bomber flight in 2001. The limits of carryon liquids from the liquid explosives plot that was foiled by british police. In 2014, we have the potential for having to turn on mobile phones, a ban on uncharged mobile devices on airplanes. No explanation, again, as to why this is, but the message should travelers is make sure the phones are charged. They are taking this very seriously, no sweet talking your way out of this one, emily. Wouldve the phone is not charged . What happens . Charged, phone is not you have to throw it out or figure out a way to send it to wherever you are going. Are going to the airport earlier, find a spot to charge your phone. But if you are like me and show up in the last moment, you may be out of luck. Some airlines have arty disclose how they plan to deal with this. Willsh airways says they actually pay to help you shape your phone to your destination. If he did not go through security, go to the agent and they will help you. Virgin airlines say they will not help you, that is up to you to cover the cost. American airlines has said if you want to take extra time to charge your phone, they will help you rebook on a new flight free of charge. But who really wants that, emily . Make sure that you charger phone. May be tsa should set up a charging station, right . Maybe they should. Right now, all the charging stations are past security. At this point in time, it sounds like a dont want that arden. They are viewing this as a potential threat. The charging will have to be the burden of the travelers. At Reagan National airport, thank you so much. For more on what specific threats could be hiding in mobile devices and how it could impact travel plans, we talked to eric hansen, the Senior Policy Adviser of the u. S. Travel association. Nobody has said why they are doing this, but did they find a phone bomb somewhere . Is that why this is happening . There are concerns that that Technology May have been developed, that there are now ways for bad actors to plant explosives in small electronic devices. They can be hollowed out. They may be difficult to detect with current a cursory with current xray machines. There dont seem to be any specifics that are in the general public at this time. Why cant all the machines that are already there detect this . Should we be worried they cannot if the phone is off . Well, they can. They can be difficult to tell whether or not the electronics, the native electronics that are supposed to be inside the cell phone or tablet or if its actually explosives implanted in a hollowed out of ice. Because its difficult to tell if there are questions or discrepancies, the tsa has have extraey will checks to power on devices just to make sure its not something that could threaten to bring down airplanes. First it was international travelers, now its domestic travelers. Do you think this is going to ramp up . Are we going to see more and more of this . More isnk tsa more and starting to do more selective process for screening. If you remember the shoe bomber or the underwear bomber or the liquid plot, all of those security measures to guard against those threats were carried out in a onesizefitsall fashion. Everybody had to take off their shoes and take out their liquids. Now tsa is employing a more riskbased it perched riskbased approach, targeting airports and high threat individuals. These extra securities will be targeted on those individuals or those areas that may pose a higher risk. I dont think you will really impact everyda