Senior adviser, where he will engage with clients. Earlier in the month bernanke he signed as advisor to citadel. Japanese prize minister Prime Minister shinzo abe speaks today to a joint session of congress the first japanese Prime Minister to do so. Goes far beyond just economic benefits. It is also about our security. Cory abe also expressed deep repentance for japans aggression in world war ii, offering condolences to the families of americans who died in that war. Perrigo rejected the latest takeover offer from mylan. The perrigo deal would be mylans biggest yet. It would help the company from being taken over by israels teva. Strong ratings for the ncaa tournament. Hbo did profit slightly. Now to the lead, its twitter in trouble or is it a business that is misunderstood . Shares getting hammered today down 22 of the companys earning report slipped out earlier than expected thanks to shareholder. Com. The reason shares are down is this, twitters user growth is slowing. Twitter is also cutting its revenue forecast. It had much more trouble attracting advertisers when it was pushed to a new fee structure. We will talk about what that means with Victor Anthony at axiom capital management. Victor, let me start with you. What was most surprising about these numbers despite besides the timing of the release . Guest they miss their own revenue guidance for the quarter. Given they had over one month of operating results under their belt when they gave that guidance, when they reported fourthquarter numbers on february 5. That was bad. I think the major negative coming out of the print was really on the call when they stated they had very limited visibility. I thought that was a huge negative for the stock, which is why you see the stock trading down 5 6 . Cory why should they have such limited visibility . Victor they have a little bit over one month of results. They could see exactly what is taking place. Anthony essentially stated that growth is slowing down after it accelerated in the first in the Fourth Quarter. In the first quarter, i mean. That is negative. It is hard to get positive on the stock [indiscernible] cory sarah frier, what do you make of the user numbers . 320 million active monthly users. Growth rate take up a little bit on a sequential basis. Sarah but not enough. Twitter has been rapidly changing its product to try to attract more users. This is the fact after they have been trying for the last few months to up their user base. They change their homepage so it services more tweets. They have done these deals with google and other search providers to try to bring people searching for events, bring them into twitter. This is after a lot of effort to try to drum up that number and some people are expecting it to be higher than what we saw. Cory in the press release they blamed direct response advertising. I think of junk mail. What is direct response advertising for twitter . Sarah theres a difference between direct response advertising and brand advertising. Direct response is advertising where they want to complete a certain objective. It could be signing up for something, buying something. It brings people closer to its action and what twitter is saying is that they upped the requirements for what engagement looks like on those ads. Really, they are being a little bit clearer to advertisers about what they are actually getting out of that. The problem is the results failed. Cory when i put it into my model, first of all they give us less information now. One of the things i do in my models is i look at revenue domestic international, i look in revenue per user. Revenue per monthly active user was down from the Fourth Quarter. I know Fourth Quarter is when a lot of advertisers spend the most, but it was down. More than 13 this time. Is that disconcerting that revenue per monthly active user is in decline . Victor there is some seasonality tied to it. You had the fact that direct response advertisers you talk about hit somewhat of a wall in the quarter and so they backed off on spending on the platform. Dont get me wrong, longerterm i am positive on twitter. I think there is a longerterm case that can be made for the stock. Cory i dont really care about the stock. I think the importance of twitter as a business is more of an open question today. Is twitter going to grow and be something so much bigger than it is today . That revenue per user number, up nearly 50 but a much Slower Growth rate than it has been at. Victor right. You look at it as a business and step away from the stock, you still have three hundred million users. They talked about another 500 million users that come onto the platform. The challenge overtime is to be able to convert those users into regular monthly active users. I think they have a fair shot at it. Nearterm there are concerns about the business. Theres an element of risk that came out of the Fourth Quarter results. Cory is there a sense that this is not the questions about dick costolo leaving are so old since the day he walked in the door. Here he has one of the highestpaid cfos in the business. We do know we do not know what is going to happen with you there gross user growth. Sarah you said yesterday this is in expectations game. Twitter has over the course of the last year been so optimistic about its own prospects. 20 years down the road, here is how big we could be. Here this quarter admitting they dont really have that much visibility in the future and in fact this revenue miss may have surprised them as much as it surprised wall street, that is not something wall street likes to hear. For a cfo among the highestpaid cfos, maybe in Public Companies this is something that he might have to answer for. Cory less so now that his Stock Options are underwater. Im torn because i like these guys personally but the struggles in this business are interesting to watch. It is growing. Sarah thank you very much, as well as Victor Anthony of axiom capital. Inks for your time. Dont miss our conversation with dick costolo later today. He will be on street smart. Coming up, twitter earnings and how we got them. Numbers leaked earlier than the company would have liked. Crawling and scraping the web with a Company Called celerity. Cory this is bloomberg west. A glitch in the ipad program used by American Airline pilots delayed 40 flights in the last day. Pilots are increasingly using ipads instead of those big, bulky books from their electronic flight bag. It gives them the manuals and flight plan. Pilots had to return to the gate yesterday to access wifi to fix the issue with their ipads. Shares surging today of the hotel giant, exploring alternatives to boost shareholder value, and no option is off the table. The owner of Starwood Hotels has hired lazar for guidance. Penn national agreed to by the tropicana in las vegas from its current owner. The prize, 350 million. It comes as gambling in las vegas felt last year, ending four years of gains. Selerity circulated the numbers from twitter before the close. Selerity the realtime Financial Information company, it got the numbers thanks to its data crawling program which conducts a very thorough internet search and scrapes those results. Those programs are not new to the world. Think of google bots. Joining us from new york to talk about searching and scraping the deep web is hilary mason founder and ceo of fastforward labs and former chief scientist at attlee. This is interesting stuff. I remember in the early days of Search Engines, the notion of spiders that would go out and find the ends of the internet but it brings the notion what percentage of the internet is known to the state of google . Guest we dont know exactly. We know google and other Search Engines are working on deep web crawlers themselves to try to uncover those links that are never linked to you from another public page. Cory very interesting what they got and how they got it. Can you explain how the scraping tools work . Hilary sure, it is a trivial bit of technology. It is probably 10 lines of code something a programming student could write. They were able to figure out what the likely structure of the next press release would be. They wrote a little bot to explore. The bot does what you do when you load a page in your web browser, it goes to a new web address, it simulates that and is much faster than doing it by hand. Cory if the url was Investor Relations twitter q2, twitter q4, you might say what happens if we type in Investor Relations q1 and the results come up . Hilary exactly. I believe it was investor release id and then some number and they were able to increment that number, Something Like less than 400 digits, to get to the new press release. Cory is this like the cracker programs that hackers will use when they throw known words and number combinations to test whether a password will work . Hilary a little bit like that. In this case the page was public, it had been published to the website, it just not had been linked to yet. Cory on a level of stupidity, how stupid was the nasdaq for publishing this early, or is this just a really Great Program in almost any company could have been caught off guard by this . It is something people should be aware of in the design of their applications. Cory when i was a Portfolio Manager at a hedge fund, i would Hire Companies to do stuff like this and get a sense of new product releases or how many customer orders were flowing through our company or how popular a certain thing was. In my experience, the tools were crude and i could not get what i wanted to get. The numbers were a lobar the map. Have these tools gotten better in the last few years . 9 absolutely hilary absolutely. These tools are progressing rapidly. Cory do you imagine theres a scramble over the nasdaq now where they are trying to find a new structure for their urls so they can test the page to see that its right but not know the world is there . Hilary i would advise them to consult a computer scientist, but yes, there probably is. Cory hilary mason founder of fastforward labs. Thank you for your help in figuring out how all this works. Coming up, finding earthquake relief in nepal. Cory welcome back to bloomberg west. The death toll from saturdays earthquake in nepal is now over 5000. One Nonprofit Group trying to help set up a fund to provide critical medical supplies to its on the ground partners who are already in nepal. The groups founder and ceo joins us. Great to see you as always, the what a horrible thing. Tell us what operations were in nepal prior to this. Hilary we connect to local doctors working on Critical Health care for women and children to donors. Donors can fund directly this work 100 of their dollar goes to supporting critical funds. Cory and using the internet to do that. Donations go straight from there to your doctors. Hilary guest we work primarily in central nepal which was really hard hit by the earthquake. My cofounder has spent a lot of time there and i spent most of my time in neighboring india. Cory describe the work they do. Surgery principally, right . Guest medical interventions for maternal and child health care. Prior to the quake, 64 of women in nepal gave birth at home, resulting in extremely high mortality rates. Every four hours a woman dies in childbirth, and eight newborns die generally less than a day old. Half of those women are dying because they are bleeding to death and its because they cant give birth in a state facility. Our work primarily with us to build local facilities and make sure theyre are adequately staffed with Community Health workers. Now it transitions to more Emergency Care and ensuring we have the infrastructure for women to deliver and babies to go home safe. Cory what have you heard about whats going on on the ground there . Guest there is tremendous need 75 percent of the infrastructure has been completely destroyed. Health care clinics, local outposts where people can receive medicine, get primary care, most of the work that needs to be done in developing world medicine is primary care. It is triaging taking care of people who have relatively minor issues that can escalate if they dont get the care they need. Cory now those issues go from people who are at a particular time in their life to everyone in the country. There are so many people there across all places in nepal. Guest one of our main emphases is to work directly with organizations on the ground providing care directly to that beneficiary as opposed to funding an organization that has its headquarters in the capital that has many layers between the donor and the recipient. With samahope, you can see the doctors themselves on the site and see the work they do. Once youve fund you get dr. Reports in realtime so you know exactly where your money went. What is important is to fund the doctors already working on the ground rather than fly in lots of new people. There already a number of medical personnel trained in nepal. They just need equipment to rebuild the country. Cory what is the latest in terms of how much aid is getting there right now, as the whole world is looking at this and there is an outpouring of support . Guest it is difficult to get to. That is another reason to work with preexisting organizations that already have a presence on the ground. Luckily we have been able to get updates from our medical partners. We are a tiny team. We only have three fulltime staff. There is a huge public outpouring. A lot of people have nepal in the hearts and minds and they are putting their money where their mouth is. Cory thank you very much, appreciate you giving us the latest. Guest it is samahope. Org. Cory a yahoo chairman will join us now. We will talk about the perils of the sharing economy, plus room for another ride sharing company. Cory this is bloomberg west. Im cory johnson. Lets get a check of top headlines. Shares of lumber liquidator being hammered again today. The Company Posted a loss, 7. 8 million in the first quarter. Allegations that flooring has hidden excessive levels of formaldehyde. The ceo robert lynch said there would be a turnaround in the current quarter. In april, gross margin continues to be pressured by lower average showing prices to drive customer traffic and ships in the sales towards hardwood. April features are and you will big sale and as a result has historically had a lower gross margin than the gross margin for the entire Second Quarter. Cory the company is replacing its chief financial officer. California governor jerry brown being more aggressive in fighting Climate Change and has initiated an executive order to dramatically cut emissions by the year 2030. The calls for 30 reduction in animation levels below 1990 levels, much more ambitious than the federal governments target. We are going to watch the Floyd Mayweather fight this saturday . I will. The restaurant chain decided not to show the fight in most of its locations. Cfo James Schmidt said the company did not feel comfortable with the cost, which is about 5,100 per restaurant. Hbo on showtime has sued to block unauthorized Live Streaming of the fight. The Cable Network says it was alerted last week that the website boxinghd. Net was advertising live internet coverage of the fight. The network is seeking an Immediate Court order preventing that streaming. The sharing economy, it has given rise to some of the most test funded startups in silicon valley. But there is room for competitors in that space, and there are lessons that can be learned from what has happened there. Im joined by the yahoo chairman as well as andre. Of relay right. Ride. Guest we enable people to rent their cars to other people. Cory in the same way airbnb will let me rent out my empty home, my car sitting in the parking lot right now someone was to jump in that honda accord, i can rent that out . Guest absolutely. There are 300 million cars in the United States for 200 million drivers. It is one of the most underutilized assets out there. We are enabling people who have cars who are not using them to rent them out. Cory why invest in a steel . In this deal . Guest i think its a good idea. Everybody thought ebay was a crazy idea. Nobody would fund that in 1996 because people worsening money around in paper envelopes. There was no electronic payments. I have seen crazy that did really well. Two reasons i funded it, one was the ceo who is a dear friend of mine and was a rockstar for us in ebay for years. We got him to move from europe over to the bay area to work and driving product. We knew he was a rockstar, but we totally believe in the space. Its amazing to me, people are looking for ways to make money and yet there are all these idle assets that are underutilized that could make you money. Cory Something Like 90 of all cars that are owned are not being used at any given moment. It makes sense, right . Guest you pay a lot of money for them. Im going to africa with my wife in august. Im going to have to park my car for three weeks, pay a lot of money at the airport for that even if i do longterm parking and it is theyre doing nothing. If i did the relay rides route i drop it off, they drive me up to the gate. I make money the whole time im gone. And its better for everybody. Cory there have been sharing companies now that some of them are doing really well, like airbnb and uber. But they probably have had some screw ups along the way. What are the kinds of things you have been able to learn from in the perils of the sharing businesses . Guest the perils of the sharing businesses is all about connecting people in an effective, simple, and trustworthy way, and protecting people as they use a marketplace. From the very beginning we have put in place a really important safeguards in the marketplace. We