tv Bloomberg West Bloomberg July 16, 2015 4:30pm-5:01pm EDT
emily: google shares are rising in after-hours trading. why some investors are concerned that they won't be able to keep themselves in check. ♪ i'm emily chang and this is "bloomberg west." coming up, highlights from my studio 1.0 interview. reddit's new ceo is taking steps to define the site's policy. i will be joined by the new
venture, arm. google's second quarter earnings topping analysts estimates. shares are reacting to the news, surging above 8% in after-hours trading. google's new cfo is addressing investors right now for the very first time on the earnings call, saying the company will take great care regarding resource allocation. joining me here in the studio adam burke. he is a former google employee. also, mike do just -- dudis. google have been getting killed in mobile advertising specifically by facebook. are these numbers more reassuring? adam: i think it's a situation
where the entire pie is growing. i don't know if i would classify google as getting killed. there are still extremely dominant. i think we are seeing a new very compelling option with facebook. certainly the overall tailwinds to the mobile advertising face -- space is growing rapidly. google continues to expand. they don't have the monopolistic type position that they did in desktop search, but they are still a very powerful force. emily: this is ruth's first time on the call. what are her main challenges? >> one thing we should all expect is that it is still the google culture. item think we will see an era of increasingly broad guidance. ruth's job will be able to figure out the portfolio allocation of resources. i think at a company like
google, now that we are 60 billion out of revenue, just that resource allocation around the company that prides itself on innovation, i think that's a major mandate. to make those calls with the right care and in sync with larry. emily: a buy button is coming to google. where do you see the biggest opportunities for them in mobile? >> google has a massive opportunity on mobile to make searches and interaction with their services more efficient. there is no question that mobile opens up an opportunity to get the consumer much closer to the actual purchase. google has taken a bit too much time spent a lot of time and purchase. i think what you are seeing over the past 6-12 months is more experimentation, directly in the
desktop, online and mobile flow that gets them towards that purchase flow and enabling purchases seamlessly and immediately. i think that has the potential to provide tremendous value to their advertisers and close the loop more quickly than some of their previous formats. emily: shares are still way up right now. what about youtube? they talked about how well they are doing but also that a big acquisition could be in the future. the cfo spent a lot of time on the last call talking about how advertisers love you too. -- love youtube. >> that market is fragmenting. as we have seen from twitch facebook video. you need to be thinking about not the position you once had as the incumbent, but the position you might have. in that case, the idea of buying
assets doesn't seem to be a strange idea. adam: one of the greatest tailwinds we have going for us in the online digital advertising space is linear tv dollars moving to digital. marketers are enamored with any way they can do that effectively. youtube is one of the only places they can go for that type of scale and quality of content. they always need to figure out how to innovate, what will be the next platform, what are the inherent risks? -- risks. emily: the app store just started to run ads for google play. >> i'm surprised it took so long. and there is no question that app store discovery have been broken. it's a huge problem. i think folks are solving it in ways outside of the way that apple and google are solving it. they need a paid system just as
google search in its earliest days had both organic and paid results which led to higher quality product and search results. that is much needed in the play store. i doubt we will see that in ios store anytime soon. emily: last question. are has been concern about google spending too much money on things like self driving cars and buying robots. are you concerned about that while the ad business is challenged? >> i think it is true that google will need to bring some discipline, but i don't expect any over indexing on that discipline because they are in a very competitive environment for talent. i think it will always be an effort in google to rein in some cost but the inherent culture believes that employee happiness
is at the center of what they do. emily: google shares are still up over 8% in after-hours trading. the revolving door at twitter continues to swing. this time the company is moving its head of communications. he confirmed the departure by replying to his original tweet when he joined the company. while we haven't heard whether or not he was pushed out, twitter told us they're looking to switch their communications strategy and direction. the change of comes at a come ultimate time for the company as it searches for a full-time replacement for the ceo. twitter could use a new public message. another developing story that we are watching reddit's new ceo opened himself to questions with
a scheduled ask me anything post. he has unveiled new restrictions on what people can post including spam. anything that insights harm bullies others and as expected, many users are on the forum reiterating complaints that reddit is supposed to be a place for free speech. he has been outspoken in the last week about defending some of those policies in place by recently ousted ceo, ellen pao. she said she just endured one of the largest trolling attacks in history. coming up, how workday seeks artificial intelligence as part of its future. i mean nominations were announced today. hbo is smoking the competition.
help them this quarter and they are closing the gap between mobile and test top. -- desktop. venture capital spending is approaching levels we haven't seen since the.com bubble. investments hit $19.2 billion this quarter. that is a 24% jump from last year and there is no sign dealmaking is slowing down. workday just announced a new venture fund focused on machine learning and data science. joining me here in the studio the ceo of joyous and the venture fund leader. >> if we look at machine learning for the enterprise, we
assume that the opportunity is obvious. every enterprise company is going to be a machine learning company. emily: talk to me about how machine learning can help and -- a software company. ibm is doing -- >> machine learning is really about helping people make better decisions. it's looking at data and getting recommendations from the data about what to do. for example, our products help companies with deciding who to higher next -- hire next.
>> do you feel these things aren't getting funded fast enough? >> we are looking at the venture capital space and the truth is that we sell normal venture funds -- saw normal venture funds and corporate venture funds. it has gone from zero to 1000 companies in the past 10 years. we understand this, we can help these guys. we understand the technology and we can help them negotiate the markets. emily: give me some examples of your investment so far. >> we have had four so far.
jobr thinair unbabel, and metanautix. emily: are you promising these companies a strategic relationship with workday? >> is there an intimation inside the workday model or are they standalone? >> they are standalone, but we have pretty good relationship so far with the companies. it is mostly about the learning. we have a lot of engineer-related conversations. we also give them access to the executives. they are thinking about how do we actually market to a company that is worth 20 billion? we know how to do that. emily: we will keep our eye on you guys.
now i want to talk about xiaomi. it is growing its weight and it just open stores in the united states. i sat down with hugo barra and asked him about the one thing that everybody wants to know about which is potentially copying. here is what he had today -- had to say. >> this whole copycat melodrama all boils down to one sham for edge on one particular phone model. it was people projecting their bias against chinese companies on to us. people just couldn't bring themselves to believe that a chinese company actually could be a world innovator, could build amazingly high quality products. emily: does it look like an iphone 6 plus? >> it's white.
emily: the criticism is more about the look and feel of the products in general. >> i don't think that's fair. without a doubt every smartphone these days kind of looks like all of the other ones. you have to have curved corners. you have to have at least a home button in some way. i don't think we can allow companies to take ownership of things that just are how they are. emily: what about intellectual property? if xiaomi does start selling phones in the united states, at some point, how protected is the company? are they worried about getting sued? >> of course we are always worried about patent licensing. every company in this industry have had to deal with that. there are two things we are doing. one is systematically taking
patent licenses around the world . if it's a patent then of course it needs to be licensed. that is what we are doing and it takes time. we are talking to everyone we need to talk to. secondly, we are building a portfolio of patents for a defensive purpose. emily: my full interview with hugo barra tonight, 7:30 p.m. eastern and pacific. up next, the future of samsung is in the balance. we will bring you the latest in the daily struggle for power. google maps caved on a name after protesters disputed. ♪
emily: the google ceo is addressing investors for the first time. she says watch time on mobile for youtube is up to times -- twqo -- two times. it is time now for the daily byte which is 2118. that is the number of petitioners who took to change.org to change the name of an island in the south china sea. they won. here is the story. that tiny landmass had been called scarborough shoal but
recently google maps started describing it as a chain of islands in china. they changed the name back after the petition. they try to maintain politically neutral names. if you look at the region on chinese google maps, the land appears to fall within chinese territory. it win on change.org is for now a matter of perspective. we have talked a lot about better ways to integrate corporate executives in technology. now there is a database of female tech executives who are bored ready. -- board ready. it is estimated only 23% to 32% of privately funded tech boards
have at least one woman. the creator of boardlist is still with me in the studio. what kind of feedback have you gotten since you put out this list and who are these people? >> the feedback has been tremendous and i think it's because gender diversity is a very hot topic certainly inside the tech community. people are craving tangible solutions. the boardlist was curated by a community of tech leaders. it is the founding initiative of both projects that i have created. it has been very interesting. i went out to 50 highly credible leaders in the silicon valley community to feed the database.
i said, if you were to nominate 5, 10, 20, 30 women who you would personally endorse, who would it be? they all responded overwhelmingly. they came together to feed this project. emily: mo, what do you think about this. -- m a -- emma, what do you think about this? >> i spent the last year at harvard business school studying what we mean when we say there is a gender diversity problem in tech. there isn't one root cause that we can all rally behind and try to fix. there are a lot of little things that create the perfect storm. the number that really stood out to me that launch asked tries to fix is that apple -- only 20% of funds go to female-led companies. women don't know how to navigate
this black box of a fundraising process the same way that men do. emily: it's interesting because companies are staying private longer. >> we often talk about gender diversity as a public problem. i'm not sure why. from series b two series f, of course the idea of independent thought and expiration -- operational expertise is huge and so few companies take advantage of it. emily: is it as easy as looking at this list and picking a few candidates? >> i think it's because volumes for where this will go in the next 10 or 15 years. her approach is much more top-down. what we are trying to do at launchx is much more bottom
down. emily: it's interesting because in europe, they have mandated that diversity. do you think we need that here? >> i am not a fan of quotas. right now, gender diversity is something we need to be attacking at all levels. how do we have more women able to fund raise for their companies particularly when there are so many fabulous women in companies out there. i don't "is. i think it is about access to talent. -- i don't think it's about quotas. emily: i was happy to see the list. thank you so much for raising these issues here on this show. thank you both. i hope we start to see faster progress. that does it for this edition of "bloomberg west." tomorrow, we will be joined by
mark: with all due respect to manhattan, staten island and brooklyn -- ♪ we are finally here at the top of the political world. welcome to hillary clinton's headquarters here in brooklyn heights. they have it all here. computers, telephones, partial wall dividers. they let us in to show us their system and that makes us a little nervous.