Twitter Popular With Teens: Bloomberg West (10/09)

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Oct. 9 (Bloomberg) -- Full episode of "Bloomberg West." Guests: Piper Jaffray's Gene Munster, JMP Securities' Alex Gauna, Climate Corp. CEO David Friedberg, Yahoo's Maynard Webb and Social Internet Fund founder Lou Kerner. (Source: Bloomberg)

Live from pier three in san francisco, welcome to the late addition am "bloomberg west," when we cover technology and media companies shaping our world.

I'm emily chang.

Our for this -- our focus is technology and media.

A new survey shows that teenagers rank twitter as the most important social network.

We ask the man behind it why.

All hands on deck.

Hewlett-packard needs a stronger culture of engagement and collaboration.

And these days, robots do everything from building to cleaning the floor.

Now winemakers in napa valley are putting them to work on grapes.

The count is on for the twitter ipo.

We will go onto that, but first, the clock is ticking in washington.

We are hearing the house republican and senate democratic leaders are open to a short-term increase to avoid default.

More on the shutdown -- i want to get to phil mattingly in washington.

Short-term, but are they breathing easier right now?

I would not go that far, but at least it is something.

After weeks of no movement, it looks like lawmakers in both parties are starting to get around the idea for a short-term rates in the debt ceiling.

That is a good thing.

They want to take this off the table, make the fight were about the budget.

Here is the issue he lawmakers will come across.

House republicans are still going to want to attach some condition to this.

The white house says that is a nonstarter.

If republicans can get the members to get behind a short- term increase with nothing attached to it, that may at least take to fall off the table.

The president has said repeatedly he is not willing to negotiate.

It is something the white house would be willing to work with?

Absolutely, emily, and here is why.

White house aides and the president yesterday have said, short-term, long-term, i don't care.

Just if this off the table.

I do not want this gun to my head while we negotiate.

If republicans come in thursday or friday and say we want to attach another spending bill to this, that's going to be a problem.

Back to square one.

If they do something clean, we have a path forward.

What happens next.

Arthur talks scheduled?

There are.

House democrats are over there tonight.

House republicans are sending their leaders tomorrow.

It looks like it's going to happen.

By friday we will start seeing boats in the senate and the house, the hope is, to see things going forward.

On the long-term resolution, nothing there yet.

All right, phil mattingly.

Thank you.

We are dickstein days a way for twitter to start marketing its idea for the potential ipo.

All this talk has brought a renewed focus on twitter's founder and the story of how twitter came to be.

In it, the founder paints a relatively unflattering picture of jack dorsey, digesting that he him bell is'tis -- in belichick his role in creating twitter.

-- embellished his role in creating twitter.

Jon erlichman is with me.

Twitter is different than it was years ago.

Yeah, and we did get some juicy details today.

That's for sure.

If you were to ask the question did the surprise people inside twitter, the answer probably would be no.

We have heard for a long time now the early stage of the business of twitter, where it was going, that has changed dramatically.

Where it got them to the point where they are ipo-ready, impressing some investors, i think it starts with the ceo, who gets credit for his role in that.

So many executives have come into the company and the last few years.

We could creditadam bain, ali rowghani, a former pixar executive liked by steve jobs.

Twitter has also made a lot of acquisitions over the years, and that has also changed the company.

Yeah, i think that's an important point.

This is a company that has done something over 40 yields last four years, spending over $500 million-plus to bring in a lot of that talent, the engineers helping to drive the company forward.

I want to highlight a few of the transformational deals.

Recently, we have seen me purchase of bluefin, helping them target advertising.

Vine is a great worry.

In the early days -- summize was a smaller deal, but a deal that helped get search into twitter.

It is a huge part of the growth of the service.

Those are some of the key factors in the changing business.


All right, many more juicy details to come, i'm sure.

Sticking with twitter, piper jaffray just released survey results which show that teens rank twitter as their most important social network while facebook and instagram are tied for last lace.

-- last place.

We have the senior research analyst for piper jaffray.

He currently has an overweight rating on facebook shares.

Maybe i'm too old, but i thought all teenagers were on instagram.

Was this surprising?

We kind of saw this trend developing.

We do this twice a year.

You are exactly right.

For teens, instagram is really important.

It is a combination of instagram, twitter, and face book -- facebook in there, too.

They are all stuck together, where it used to be that facebook used to be the clearly there.

Thank goodness that facebook bot instagram.

They have done a great job to maintain a good presence in social.

My question is why?

What do teens use twitter for?

Are they using it to share and discover news articles?

Are they following celebrities?

The celebrity following, the news side, the short messages, really the ability to broadcast yourself that teens like.

And they like the short form messages.

So, it's a combination of all of those.

Then how they actually communicate with friends.

Sometimes it is as easy as sending text messages or going through other apps.

It is not making a phone call, i will say that.

That is long gone.

How do you do this research?

Do you hang out in school parking lots?

No, i don't hang out in school parking lots.

We talked to 8700, surveyed 8700 students.

We go to high schools, present how we do our work.

In return, the students said -- the school submit their students.

That is how we do it.

It takes a lot of groundwork.

But it is really great data.

8700 students.

How big a threat would you say that twitter is to facebook, to instagram if the most coveted demographic is using twitter?

It is coveted in the sense that they are trendsetter.

Probably the most coveted are the people who spend money, which is the 25 to 45 range.

That's another important trend to watch.

The importance of this, i think, really speaks to -- you have to look at facebook's case, how much of the time that they have with you.

If there is more competition?

How much of that are they monetizing?

That is what they have done an exceptional job on, why the stock has gone up so much recently.

They have done a good job.

There is still more room for them to monetize the existing amount of time.

From an investor's perspective, it is negative for twitter to jump in front of facebook, but there is still room where they can monetize more and more of the time you do spend on facebook.

You also surveyed teens that lead you back to apple he me most ocular brand.

Tell me what you found in terms of ownership as well as in tent to own smartphones -- intense to on smart phones and tablets?

The intent to own side of it -- it's probably more good news than bad news for apple.

The good news is the intense, which is the real key -- what is going to happen in the future.

That is what stocks are all about.

What is going to happen in the future?

67% of teens will buy an iphone.

It rose slightly to 65%. that's an encouraging trend.

Ipad, we have seen a progression downward.

74% to 64% today.

So, that is a negative.

Iphone is a positive.

The reason why it is a net house and it is because iphone is a much bigger part of apple because it is 50% of revenue versus ipad, about 25%. why is the intent to buy an ipad dropping?

What are they buying instead?

There's more competition.

Intel, google, obviously the kindle fire.

Some things amazon is doing on pricing appears to have an impact on how teens inc.

About which tablet they want.

Not an encouraging trend.

I would say apple will have a counterpunch to the senate couple weeks with -- counter punch to this in a couple of weeks with the new ipad.

Let's talk about that.

What do you expect at the ipad event on october 22? and besides ipad, what could be the new thing westmark something tv related or watch related?

The something else, he hope they and now something this year around the tv.

We have always expected it to ship in 2014. the watch is a little bit more wild card.

The answer to your question is i would not expect anything beyond the ipad for this event.

In terms of what is going to happen with the ipad, probably the larger format of the ipad.

Whether it will be the same plastic tag in the ipad mini with the higher resolution and the retina display.

The wildcard is will they put the fingerprint read technology into one or both of those ipads.

Another thing might be a new ipod, if anybody cares.


we will be watching.

Hyper jeffrey senior research analyst gene munster, thanks for weighing in here on "bloomberg west." all hands on deck.

Calling staffers back to the office.

More on the turnaround plan, next.

At ? i'm emily chang in this is "bloomberg west." it has been two years cents the new ceo try to turn it hewlett- packard around.

She said that she needed for years to make them relevant again.

For a report on how she is doing -- according to a leaked hp memo, reportedly she called staffers to -- to work for -- who work from home back to the office.

How convincing was she today?

I think she and her other executives did a very good job acknowledging the problems hp has, the progress they have made , and articulating very clear goals on getting where they wanted 80. at that it was a very encouraging hesitation.

I understand why the stock reacted the way it did.

The results were prematurely late, but encouraging as well.

Overall i would say it was a solid day and hp has made solid progress.

It is her third year on the job though.

She's said she was going to turn the company around in five years.

She says the company will return to growth next year.

Is she still on target with that?

Is there a timeline?

As far as the benchmarks she set for herself and her team, yes.

There are encouraging developments real-time.

They are tracking toward another good quarter.

At least so far as there are services to track those numbers.

The company has the halo effect right now.

Apple is on track for it third consecutive quarter of year- over-year decline.

Can you point to one thing?

I think removing resources from businesses he reversibly in decline, putting adequate, but not too many resources into businesses holding the line, and in some way constructive to the business, and really doubling down with the growth drivers the company has in enterprise, in clout, enterprise class tc's and the like.

You talked about her competitors -- microsoft, it intel.

I think the good news for hp and four meg is that they acknowledge up front this is not an easy fight.

A five-year turnaround is not in easy turnaround.

And acknowledging they do have rivals in microsoft, intel.

That is an accurate assessment.

Understand what your challenges are.

Then you can manage them.

Asking employees to come back to the office.

Marissa mayer caused a big stir when she did something similar at yahoo!

I don't know if that memo exists or not.

I have seen certain employees at hp and their rivals take liberties with the virtual office scenario.

Her calling her employees to accountability and to show up is a very constructive policy.

I hope the memo is true for the sake of the company.

Where do you think they will be this time next year?

I think it will be in turnaround mode.

I think it will be making progress.

I think you will see them be a bigger force in tablet -- especially enterprise tablets.

And they will still be at the top of the food chain in printing.

All right, thanks so much for your perspective.

We will see if you are right a year from now.

We will be right back.

? welcome back.

I'm emily chang.

Monsanto agreed to pay $930 million for a climate corporation.

It's bringing big data to the farm.

For more, we have cory johnson.

We finally have an ad story on the show.

-- ag story on this show.

It is not really an ag story.

They have been using the company to track soil, weather, all of that.

They use that information to grow more stuff.

Of the ceo for the corporation -- they agreed to pay a giant sum of money.

Why is the business of big data worth $900 million?

I think we see and agriculture, farmers not just in the united dates, but around the world are coming online.

They are starting to figure out how they can use information to do a better job farming.

It is sort of an analog world that is becoming digital.

We have really tried to build technology to support that effort.

Why did it take google guys to figure that out?

There's enough money in ag for people to look at this.

The competency for people who are traditionally in ag is what they do.

Feed or equipment or chemicals.

It is not necessarily software.

How do you promote this to figure out what is happening in a former's individual field?

How do you use that data for the farmer to make better decisions?

How do you model the weather so that it can predict yield?

Which allows us to offer an insurance product to farmers.

There's a lot of science and that is really nontraditional for the agricultural industry.

To do work in any ways around farms?

I go to whole foods.

I have never worked in ag./ when we started the company in 2006, it was a broader model.

It was how do we show insurance companies the weather?

The business that we found it was the best fit was agriculture.

In 2009 we started to get really deep into agriculture.

We expanded our team.

My cousin brian started a farm in iowa right now.

What i find is these are very savvy guys.

Very smart.

Very smart understanding their own property as well.

Do you find that farmers are intuitively able to figure this stuff out?

In the rest of the world -- what they don't realize is that farmers are running a small business or a medium or large business.

They are business owners.

The business is inherently risky and volatile.

Farmers have to be smart and they really have to have us and in control of these aspects of the business.

And the biggest one is the weather.

The biggest uncontrollable aspect is the weather.

It's really important to being successful and driving additional yield, additional food, additional profits for the farmer.

Is there a certain farmer that this is most applicable for?

Is it better for napa valley or be old raising -- our software product stands people spectrum of agriculture.

More than half is corn and soybeans.

That is where we naturally spend a lot of time and do a lot of work.

Thank you very much.



Are you a tech execs waiting for advice on how to find great workers?

Stay tuned.

That's next right here on "bloomberg west." ? this is "bloomberg west," where our focus is on technology and the future of business.

I'm emily chang with your bloomberg top headlines.

Pc shipments keep on falling.

Shipments fell a .6% in the third quarter.

Pc sales climbed at 3.5% in the u.s., making up for weak sales in other regions.

Blackberry is open to a breakup of the company.

Companies like cisco, samsung have said they would be interested in certain parts of blackberry.

Intel would be interested in evaluating the patents.

Air bmb has filed a motion with the u.s. supreme court seeking to block a recent subpoena for user data.

They are seeking data on that thousands of new yorkers who use the site to see if they are breaking any loss.

They say the request is too broad.

I will check back in with phil mattingly in washington.

You talk about we are in our third year of these fights between democrats and republicans when it comes to the debt ceiling.

Is this part of the business?

Do feelings get hurt permanently?

These guys have a tough stand.

They know how it works between the two parties, particularly when they clash up.

What we have seen is interesting.

The senate democratic leader harry reid has taken aim at house speaker john boehner in a way we have not seen before.

He has questioned his leadership and if he can't control his conference at all.

Listen to what he had to say on the senate floor.

Am happy to talk to john boehner anytime.

We have talked.

It is hot -- obvious no amount of speaking will prevent the catastrophic default.

Would bother speaker boehner staff what bothers the speaker himself is that it has gotten personal between the two camps.

People disagree on things, but they have to be ordinal.

They have to negotiate a way out.

Any discussions happening about what happens if they do not reach a solution by october 17 debt ceiling deadline?

I think from the house republican side, the democrats say it is getting to the day.

He goes back to the relationship between senator reid and speaker john boehner.

What would happen if we went forward with that deadline and went over the cliff?

People are aware of it.

It will be interesting to see.

Secretary jack lew will be testifying about what would occur if they do not find a resolution.

What treasury would be able to do an possible contingency plans, things of that nature.

That will be telling.

A lot of them question whether that treasury would be able to prioritize.

Jack lew will be fascinating to watch tomorrow.

We will be watching.

Bill mattingly in washington, thank you.

It is time for our "office hours" segment.

Maynard webb formerly served as a coo of ebay and also worked for salesforce.

Maynard, you are here to talk about tech talent.

We hear from everyone it is more brutal than ever.

How do you get the best people to work at your company?

You have to be the best place.

There is enough -- there is not enough talent in the world.

We have to do a better job growing the talent pool.

There is no entitlement for either employees or the company.

If you are an employee, right now there are a lot of people that would love to have a great job with some of these companies that they are not getting.


So many people that want to break into this.


If you're in your current job, would you be rehired if that was still open?

If you are a company, you cannot assume that you own your people anymore.

You have to be the best place to work.

You are getting voted onto the team by the top talent every day.

They have to work for you if they have a choice.

The best companies will have top talent.

What if you are a start up and you do not have a lot of resources and you are competing with google, apple, facebook, companies that have giant cafeterias and jim's -- gyms and facebook is building housing next door.

It depends on what you are working on.

I deal with a lot of startups.

They love building the entire product.

If you go into a bigger company, you will work on something big, but a very small thing.

I think hot and young companies absolutely yet more people interested in them than you might imagine.

It is not about upping the perks are the sally?

-- or the salary?

I think what people want most is to detain you to learn and reach out.

We were looking at twitter's s-1 filing.

They spent a lot of money on r&d and on employees salaries.

They have had some high-profile people from google and they are paying big for them.

It was pointed out to us.

It is an expense for twitter.

They are not profitable.

If a company like twitter cannot keep up, how can a young startup?

People come in for high risk, hiring ward.

-- high reward.

You have to pay reasonable rates.

You get a percent of the company.

If the company is successful, the reward for you outweighs -- for most people, it's not just economics.

It is what you are doing and what kind of contribution you can make.

Being part of something when it is small and watching it become magnificent is pretty special.

Should people be per parent for the brain drain?

It has been around since 2006. that is a long time for employees waiting for an exit.

Will they leave after twitter goes public?

I do not think so.

They have been investing shares all along.

They could've had liquidity already.

I think most people in silicon valley are motivated by what i do, as well as by what they make . there are very few places on the planet where you can work on something as clue -- cool as what you're working on at twitter.

All of the options they have been given, it is investing and money.

I believe you will lose some people.

Some will want to sit on the beach.

We did see it happen at facebook.

We saw the cto and other high- profile people that did leave after facebook went public.


At ebay, we had a few people leave to after we went public.

It is not something i would be overly concerned about.

I would be concerned with making twitter a great lace and challenging folks.

There are very few places you can work on something as cool as what you're working on.

Did they worry about employees leaving all the time?

Should they be on guard?

I think employers do not own employees anymore.

I think we all have to do our best to grow that talent.

While we have been, invest in them and make them better and they are likely to go somewhere else, but we will keep them longer when you're working on them instead of just on you.

Everyone knows who the top talent is.

It is not about hoarding or hiding your employees.

It is about making them become the ceo of their own destiny and going as far as they can go.

What about people who do not have tech experience, and want to break into this industry?

There are so many people who see what is going on and want to break in, but maybe the army career -- mid-career or five or six years and it feels too late.

How did a break-in?

It is not too late.

There are more training tools on the web.

Start learning how to code.

Or learn how to be a project manager.

There are a lot of things that translate from other areas of the business into tech.

Tech needs hr people and finance people in addition to engineers.

Maynard webb, always great to have you and your advice here on "bloomberg west." a lot of viewers out there are are taking notes.

Thank you.

Remember, maynard will be back for "office hours" in a few weeks.

If you have questions, let us know on twitter or facebook.

Twitter increased its character count.

We spoke to a media analyst who says more characters could mean more active users.

That is next.

? i'm emily chang.

This is "bloomberg west." critter wants to capitalize on the social media buzz surrounding tv programs.

Twitter will have a shows twitter page that will allow viewers to record our watch shows from comcast network.

It starts next month.

Will this strategy increase engagement?

Has 216 monthly -- it has 216 million active users.

They boost their ties to tv and adding hash tags.

You thought twitter's s-1 filing.

What is the number one thing?

236 pages, by the way.

It was quite long.

The most interesting thing about an s-1 is what is not in an s-1. if you look at facebook's s-1, they talk about mau's. didn't they say they had 100 million?

They did.

Facebook has about 60% daily active users.

There is a lot of focus.

They didn't want to highlight the daily active users and the trends.

Makes you think it is not great.

What would you say is twitter's biggest weakness going into this ipo?

The question is, they have an opportunity to be a ubiquitous communications platform.

That is question number 1 -- will they get there?

Revenue per user is growing.

It is growing.

It is great.

Advertisers who use and love it.

How many people will use it?

Will it be ubiquitous?

How much time will be spent on it?

You had an interesting proposition that twitter should move beyond 140 characters.


I have always loved tumblr.

It is the one place where you can do whatever you want.

That is what people want.

Twitter eliminate it to 140 characters.

It keeps people limited.

There is another that gets more engagement than twitter does because chinese characters can tell the whole story.


It is not that accessible.

How many characters would you like to see?

It should be unlimited.

You follow who you want to follow.


I do not know if i would be able to use twitter.

I do not have much time in the day to look at a feed and i like being able to scroll through things quickly.

Let me take back my answer.

[laughter] i'd like to see what works the best.

There is a limit that comes from some german guys -- though orthodoxy is some german guys postcard collection.

There is that carrot top kerfuffle.

They criticized would've for not having any women on its board.

They call it the carrot top of academic sources, referring to a canadian that some people -- comedian that some people don't like.

How serious is this question mark -- how serious is this?

I find them to be incredibly thoughtful.

When you are running a company like he is, that is a tough job.

It is hard to be ceo of a company like twitter.

Could impact the ipo or impact confidence?

I think more of how he is responding to it than the incident itself.

There are a lot of boards that do not have women.

Large companies want to address that issue.

His issue is more of how he has handled it.

You think he handled it well?

Apparently not.


lou kerner, great to have you here.

Finding the right mix of technology and wine.

We show you how innovation has made it possible.

? this is "bloomberg west." i'm emily chang.

A syndication agreement signed without walt disney company sports network.

Aol syndication rights will join the digital publishers online video programming network.

Jon erlichman is here with more in today's new hollywood.

It is an important context deal.

Everyone is doing lots of video.

It is yahoo!, twitter, facebook, youtube.

You can make more money doing it.

You get banner ads.

You can roll more video ads and those generate more money.

A marketer estimates 40% growth in the u.s. this year to a $4 billion market.

Espn generate so much money from cable, but also digital.


They received top marks for pushing ahead into the new world.

They get these massive fees in the cable world.

They signed his long-term deals for sports rights.

It is difficult when you're coughing up all of this money for how consumers will consume those.

That forces them to think about where they will be taking the content.

Jon erlichman, thank you.

Innovation and wine.

This is a fun subject.

A handful of wine makers are starting to use robots to produce their wino.

Traveling to the heart of napa to get the first taste.

People have been making wine for centuries.

This is the future of winemaking.

This is the future.

But never like this.

Now that valleys wines -- using automation into their craft.

It replaces hand sorting machines.

Their job is to identify the best fruit.

I have preprogrammed the grades that i thought were perfect.

It compares those to the ribs.

If it is not a match, it will sort it out.

This is the nuts and bolts of it.

The robot takes pictures at 10,000 frames per second and analyzes them instantly.

The picture was taken and it was accepted.

It was a match for what i said was ok.

The berries will come across onto this compare to be dumped into the bins of good food.

If it is rejected and doesn't match, it will last it out.

What is all of this mock?

I do not want that going into the tank.

In the old method there were hand pumps.

This allows me to -- why are critics skeptical?

Is it because it goes against the tradition?

I think they like the romance and the tradition.

This is the old way of doing it?

This is how you do it.

Old school.

There is probably enough to do i would say -- how many bottles are in here?

Three or four bottles.

Americans drink more than three or four dollars -- bottles.

What was the investment?

Thousands of dollars.

It is interesting compared to the costs of labor sorting.

We will see that return in a couple of years.

How do you expect it will impact?


8 binaries have invested in a robotic sorting.

-- wineries have invested in robotic sorting.

Are we going to see better wine in the next five or 10 years?

I think so.

I think every vine yard will be better if they have the robotics order.

Rachel crane, napa valley.

It is time for the bwest byte, one number that tells a whole lot.

What have you got?

That is the number hewlett- packard has in debt for the next few years.

No room for error.

How did they ever do that?

They have to be make money.

Telling employees they have got to come into work.

I saw that.

Maybe they should get into high- tech winemaking.

I know.

Who would want to go into work when he had napa valley right there?

[laughter] i cannot believe you are here every day.

I should be there.

Thank you for watching this edition of the show.

We will see you tomorrow.

? . .

This text has been automatically generated. It may not be 100% accurate.


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