Denies any involvement in the airstrike. A senior u. S. Official says about 16 military personnel have been disciplined for mistakes leading to the bombing of a civilian hospital in afghanistan last year. The Service Members received administrative punishments. No criminal charges were filed. A moroccan born man arrested an investigation had specific orders from the Islamic State to carry out attacks in rome. Allegedly planning to move from oman to isolate territory. Emily im emily chang and this is bloomberg west. Coming up, amazon shares surge after sales topped estimates. Jeff bezos is showing investors he can deliver profits and keep his side projects. Linkedin surprised the industry with the earnings be. Shares popping off the news. Could the company not be as dire as beer. And an interview with biz stone. First, to our lead. Amazon shares popping 12 in extended trading. The ecommerce giant reported a firstquarter revenue of just over 29 billion. Operating profits were 1. 7 billion. Amazon web Services Continue to be a juggernaut for the company. The Cloud Computing arm is generating over 2. 5 ilion dollars in revenue, and 64 yearoveryear growth. This adds to evidence that the company can be profitable while adding new things, like one hour delivery, and marketing new gadgets. Unit growth accelerated from 26 in december 2 at 27 , and that is higher than it was in the september quarter. Two quarters of a row of acceleration. They are systematically taking over. That was the biggest take away. You mentioned the profitability side, that was nice. But the sector games, their market share is well intact. Ebay grew their gmb at 1 , so 1 versus 27 . Emily lets talk about aws, corey. This is a quickly growing business. Cory last quarter, it was up 63 . Growth has been fantastic. He is also looking at business and only 6 of revenues, but a vast percentage of the overall profits in this company. It is 64 Revenue Growth, yearoveryear, for aws. Very powerful. With a 24 margin, you wonder how long jeff bezos will continue to let this thing make money. He has been cutting prices like crazy. But they are adding customers and revenue, and they are bringing a lot of profits to this company that would not be there. Emily are you worried about apple moving stuff off amazon servers . How big of a deal is that . Guest that would be a head wind the growth, but i think o central theme of what is going on in Cloud Computing will benefit ews. The bigger question, the most frequent question i get from investors on amazon is, whats google going to do . Amazon just started of Restaurant Delivery in san francisco, cory. Is this just for fun, or can this be a big business . I love food. I think that we, the Tech Community of journalists, take amazons product launches too seriously. Amazon will try everything, then they get rid of it. Thats what they do. It shows you that amazon, within the way the entire business works, their main job is selling stuff. They have an important job in selling web services. But what is in that, they have been willing to try lots of different ways to sell stuff and utilize the infrastructures they have. Part of that infrastructure is web services. Emily jean, part of the side projects, which of these things do you see real potential to become a big business down the line . Guest this is probably more than a side project, but this 24hour piece is now in 28 cities and started a little over a year ago, so it has gone dramatic. The number of skus are pretty small. But that idea is something that will start to capture market share from additional retailers him as consumers start to understand that if they want something right now, in the next hour, they can get it from amazon for a good price area i think that will be part of the gain we are talking about. Emily corey, jeff bezos turned this into a popular business, the story of the last decade. What is the story of the next decade . Cory he runs these services with his tail as close to the wind as he can, picking up the smallest profit they can possibly can so that they can dump everything back into their growth as a big business. With the exception of web services, there is no sign that longterm business has changed one bit, but web services looks different, and it is accruing. I totally agree with corey, he nailed it. He has no interest in profits. He does it probably is a side project to keep investors happy, but at the end of the day, maybe keep employees happy. But he has real aspirations, and i think it is impossible for a startup business to get any sort of funding because they know that bezos would plow them under. Emily all right, you will be sticking with me, and cory johnson, we will see you later in the show. Appleshare slowed after thursday trading after carl icahn said he sold out of his shares. He told msnbc he short of his shares in february, citing concerns of the companys relationship with china. We learned that china shut down apples ibook services. Ichan has pushed tim cook to release figures. Still to come, can we call it a comeback . Linkedin shares are searching, a far cry from what investors heard three months ago. Plus, music to the markets ears, pandora has been boosted with founder Tim Westergren back at the helm. We will break down the numbers, coming up this hour. Emily groupon Beat Estimates in the First Quarter, reporting a loss of one cent per share, but shares are down in extended trading. There was also a new deal for management announced. Shares have been gaining since february when groupon posted that are than expected earnings when alibaba took a 5 stake in the company. Turning to linkedin, shares are soaring in extended trading, up as much as 16 , after the Company Reported firstquarter results topping expectations. Revenue in the First Quarter was up 35 yearoveryear to 851 million, and the company also raised its guidance, indicating fears of linkedins ability to stay in growth were overblown. This is in stark contrast to q4 in february, when stock tanked more than 40 . Why are they sharing this news . Steve, i imagine you have been watching the story pretty closely. Why do you think this report was so different . I think one of the things that is happening with linkedin is they are adjusting to their own growth. They just added a new business line with this learning and Development Acquisition of lynda. Com, and they are being cautiously optimistic in wanting to make sure that they are integrating the new product lines effectively. I think the biggest take away for investors is the acceleration. That has been at the bear case on linkedin. Like something has been wrong, and people are not getting excited about linkedin. But the numbers show engagement is doing really well. Emily steve, the multiapp approach that linkedin was taking, will that help the company on the marketing solution side of things . I think there is a lot more to go at this stop, because the part that is unique about this business versus other Internet Companies is that 80 of the revenue is recurring, and other Internet Companies cant say that. I think the combination of getting investors more comfortable with their registered user growth is going to lead them back to a higher multiple. Emily steve, as someone who helped scale the company from a few hundred to a few thousand employees, what do you see as the Biggest Challenges ahead for linkedin . Guest absolutely. I think the amount of investment that is going into recruiting, and the fact that talent discussions are happening more and more in executive boardrooms around the world, Digital Talent and growing this need is rising. More and more challenges are going to be confronting linkedin in the future. One of the interesting dynamics and stories that i dont think is getting a lot of attention is that a lot of the talent future us, are anticipating, and what we are seeing play out right now, is people are staying in their jobs shorter than they used to. Used to, if youd changed jobs every 10 years, you would be a job hopper. Now, people think you are stale. Youre going to see more people moving, creating more opportunity for linkedin. The upside is even greater than people thought. Emily gene, what is your number one question for jeff weiner . Guest when our navigators going to start being a sizable contributor . Nice growth on the quarter, but i think that signing other areas of growth and had a they will add to the business over the next five years would be my question. Steve, what would be your big question, if you were still at linkedin, for your ceo . Guest same story, how do you continue to stay focused, keep the culture fresh, keep your employees engaged, and stay strong . You dont have a natural competitor. You dont have anyone with as flexible of a business on the internet as linkedin does. You ever are crooning, marketing, subscriptions. There is a lot to stay focused on, and that is going to be a big challenge, how will they stay focused and execute . Emily i will be asking some of those questions of jeff weiner, ceo of linkedin. Now to alibaba, signing an agreement with fitbit, helping the wearable fitness maker expand its reach in china. As part of the plan, fitbit will introduce its newest device, fitbit blaze. Alibabas thirdparty platform for major brands and retailers. Meet valkyrie, a six foot tall robot. A twoyear grant was granted from nasa to test the robot. It is anticipated the robot will one day serve on future Space Missions to mars. Emily in todays revolving door, a shakeup at priceline. The ceo has resigned after the Company Discovered he had a personal relationship with another employee. The employee was not under his direct supervision, and the resignation is not related to the companys performance or financial conditions. The former chairman will take his place as interim ceo while the Company Looks for a new leader. Another story, paypal says federal regulators are investigating venmo for unfair trade practices. Paypal set of filing of the investigation may result in substantial costs, including legal fees, penalties, and remediation expected. Back to earnings, pandora shares are rising after hours on a stronger forecast for the year. Its listener base is still growing. Firstquarter revenue rose 29 to more than 297 million. Lucas shaw joins us from l. A. With more. Lucas, what are the latest numbers you pull out . Guest the listener hours being up 4 , and sales beating the forecast. Active listeners for pandora have not grown over the last year or year and a half, they are really steady, but the the users are spending more time with the service. If the number of users are staying the same, one way to keep growing is havings users spend more time with it. Emily when it comes to millennials, they are spending more time on pandora than youtube, but less than facebook. How significant is that stat . Guest it is a good stat for them to put out on an earnings call, with a chart. There is this perception in some quarters that spotify and youtube have stolen thunder, and tim is working hard to try to combat that. Emily shares are down 30 . What can pandora do to change the perception on wall street . How optimistic are you about potential new revenue drivers, like concert promotions . How much can these new businesses add to the future . Guest pandora right now is hoping that they can buy six to nine months of delivering solid numbers. The numbers at this point were not spectacular, but they are good enough that they pleased wall street. Spotify, a darling with investors. As far as the ticket business, we will see. They have bought a relatively small take in, but we will see if they can create a onestop shop for music lovers. Whether that will work, only time will tell. Emily quickly, Tim Westergren just returned to the company. There have been talks of a potential sale. Does this signify to you that they are staying independent for the longer haul . Tomorrow, dont miss my interview with pandora ceo Tim Westergren, 10 00 a. M. In new york, 7 00 a. M. In san francisco. If you like bloomberg news, check us out on bloomberg. Com. More bloomberg west, next. Production is at its lowest since october 2014. That did not help petro china. Chinas biggest oil and gas producer posting the First Quarterly loss in its trading history. A third monthly drop against it again. Central banks showed no inclination to step up support for that economy. This is the latest chinese bank to breach agreements for bad loan agreements. It avoided reporting a quarterly loss. Dropping below the mandatory 150 of nonperforming credit. Theres a breach the biz well, it doesnt search the web. There is a very significant of questions percentage of questions and queries that have way better answers from a person, especially when you are asking the wrong question. Only jelly can tell you, hey, you asked the wrong question. Where is Mission Street . Where are you trying to go . You dont want mission. There is a big thing going on. You should go on howard or whatever. Ok. What i really want to know is where is howard. But a web Search Engine will just keep telling you all day long what you ask. Who is netanyahu . She got an answer in 30 minutes. He is the Prime Minister of israel. A controversial fellow, but, to be fair, it is a difficult job. Biz we got you 100 million results in 0. 35 seconds. Thats great, but you have to click through the results and get some semblance. You spend several minutes in your search. Put your phone down, keep having lunch with your family, whenever. Its an answer on demand. We think the future of search is, you ask a question, you get an answer. You have 10 or 30 minutes down to a second eventually. When you ask alexa a question everyone should buy one i welcomed her into my home. She had dinner with us. If you ask her something like, whats the name of that text tech company, the club that all of those tech guys go to do in san francisco, she is like, i dont know. A person will be like, that called the battery that is called the battery. Emily lets talk a little bit about twitter. The stock is down significantly since the last earnings report. Biz it is . Curses. Emily it is down over the last six months is jack took over as ceo. Why do you think investors are not feeling it . Biz six months is a really short time in the long scheme it takes a long time to take over as ceo and turn the ship around. I think wall street thinks in quarters. They think in decades. They think decades ahead. Maybe it is down now, but he has these longterm plans, like jeff bezos does. Dont invest in us if you dont like it, but im building a company of enduring value, and you will see in 10 years how great it is. Im with jack on this. She seems to have gone into some kind of time chamber he seems to have gone into some kind of time chamber with a master ceo advisor and come out after 40 years only two years older and he is great. He is super great at this now. Emily do you think it will take that long . Biz it wont take a decade, but it could take longer than six months. Give it a couple years. Im holding onto my equity, thats for sure. It is so great that jack is back. Im so happy. The world needs twitter. Its not going away. Its now a staple. Once it is there, it is there. Its only going to get better and grow. Its just temporary thing. Emily facebook is now getting into live. Twitter for the last 10 years has been the place for live. But facebook has incredible resources to scale this. Do you think that twitter can grow significantly bigger than it is right now, or is it fine as a smaller platform . Biz jason goldman, a friend of mine, used to work at twitter and worked with me at google. He always accuses me of spinning things, but i just think i have a positive attitude. When people say, well, twitter only has 300 some Million People using the service, and facebook has one point something billion people using the service, im like, great, thats how many more people can use twitter. You know . There you go. Thats the number twitter can grow to. People are like, are you spinning this . Im like, thats an aspirational number that we have to reach. Emily what about snapchat and instagram, which we are also seeing surpassed twitter in in terms of users . Biz i like instagram. All of my pictures were of my kid. People were complaining. Is this all youre going to do . I was like, pretty much. So i use it a lot less now, because its the same thing every time. Look at jake, isnt he cute . But everything grows. Everything grows. Getting the information, the right information, the good quality answers, rather than just looking through results you win. You know what i mean . You get through life. That whole idea of value is here to stay. Emily my conversation with biz stone, cofounder of twitter, medium, and now jelly. Another revolving door story. Symantecs ceo is stepping down after a yearandahalf at the helm of the worlds biggest ever Security Software maker. The Company Named an interim president while it searches for a permanent for placement according to executives on the symantecs earnings call, the decision had to do with brown achieving the goals he set when he was appointed. Of those goals, one of them was the sale of veritas in january, something investors had been urging for years. In february, ceo mike brown requested reflected on pressure from an activist investor and a recent stake from silver lake. We are two years through a threeyear transformation of the company, and i think this is an important inflection point, in terms of investors looking at symantec and saying, now its time to get in that story. Emily symantec lowered its forecast for the fourth quarter, sightings citing shifting buying patterns. Comcast buying dreamworks, the Animation Studio behind kung fu panda. A 3. 8 billion deal. We will bring you all of our best interviews from the week, including with tmobiles ceo. Plus, he slams the competition. The best of bloomberg west this weekend on bloomberg television. Emily ford is gearing up to take on tesla, announcing plans to interview so long range electric ve