First to our lead another wild ride on wall street, this one with a good ending, stocks rallying the most since 2011. I want to get straight to matt miller in new york. Matt, when it comes to tech, the fab five all up. But talk to me about volume in todays buying. Matt if you look, for example, at the first six gainers, only exxon is a nontech name. All those you mentioned plus microsoft, apple, google, facebook, amazon. The buyers here were people who believe that we have put in a bottom, if they are not daytraders. With such incredible drop over the last seven days, we have seen the dow erase 2000 points. It takes a while to put in a bottom. Technicians will tell you after a drop like that over such a long period of time its not necessarily fully in today but maybe this is the inflection point, and the buyers believe the u. S. Economy can withstand it, the chinese economy is stabilizing, and that Commodity Prices may have bottomed. Emily matt miller in new york, thanks so much. I want to talk about even though the Public Markets are bouncing back, what lies ahead for Silicon Valley . We have all these unicorns. Jeff isanaging partner the main, along with dave elkington, whose Analytics Company is currently valued at 1. 5 billion. Speaking of unicorns people are saying that there could be a downturn here in Silicon Valley. What do you think . Jeff first of all, i hate the term unicorn. It didnt turn out well for the unicorns. The boat went without them. I think the term and concept is not a great thing. Emily it implies that companies are valued over 1 billion and there are more. Jeff when Companies Think that the valuation is the end, i think it is screwed up and we have a market that may be screwed up. Emily i just spoke up with mark benioff about this whole unicorn concept, and he warns that there may be trouble ahead for these socalled unicorns take a listen. Mr. Benioff i think we will start to see a lot of dead unicorns, because what i see are businesses not focused on their fundamentals. Jeff unicorpses. I agree. Emily i have not heard that. Jeff i agree. David with multiples, why not . Go and raise money at very high valuations. But if you do that and then you get stuck, you have this very high valuation to go public and you will end up as a potential unicorpse. It trickles down the food chain into earlystage companies. This environment has a lot of volatility and uncertainty. And my advice is dont try and maximize the valuation, maximize the value of the investors and make sure you have people going through longterm themselves so they can help you weather the storm. Emily david, how much attention are you paying to the environment . Are you changing anything within the company, are you doubling down, changing strategy, being more careful . Dave of course. As a ceo you have to balance two things growth and profitability. Mark is a mentor, and he shares with all his investees. Honestly i almost disagree with that point. The only thing that matters is customer value. If i create value for the customer, i will be rewarded in the market for evaluation. I can generate more revenue and i am creating value for my customer. Emily what is it you disagree with . Dave to some degree, it doesnt even matter to the investor. What really matters is creating the value in the market. Definitely you want investors who will help you build your business, but valuation is an end, not a means. Jeff i will disagree. We are typically in the early part of the game. At that point, we know whether to add or not. Emily what are you seeing at the earlier stages . Are you seeing a change in the number of companies to pitch you . A change in the quality . Jeff we have switched to businessto business type companies. Growing revenue along the long line of my company, whether it is business and sales, whether it is hired and then thousands of engineers that were hired, or more recently, a marketplace for educational content they are rocketing from revenue perspective. As long as we can create value for customers, we will be rewarded with the right investors investing the right valuation. Your point about numbers we still see a pretty crazy amount of outflow. We are just out of the y combina tor batch of 104 companies, and the valuations are very solid. Emily not expensive . Jeff there is always a premium emily what about in general . Jeff in general, everything we see these days will have a round of 2 million to 3 million or commanding some more. That is pretty unique. A lot of the companies we see will have tens of thousands of dollars in recurring revenue or millions of dollars in volume. That is pretty unique. That is the nature of this batch of yc. The companies had done more than three or four years ago. Emily lets talk about Twitter Twitter has been feeling a lot of pain for a lot of reasons. They broke their ipo price. Jeff, you sold a couple companies to twitter. Who should be ceo . Who will be ceo . Dave im not heres the challenge. Why is twitter in the situation they are in . Emily user growth. Dave its value to the customer, and i think its innovation. When you look at companies who hit that stage of growth and plateaued like amazon. Had a 2000s, who shopping cart that was a bookstore. Then you saw the cloud, ondemand. The current leadership hasnt figured out how to continue to innovate. I will go back to my tagline its customer value. Jeff twitter is still too complex as a product to use to appeal to the mass market. It is a great Media Distribution mechanism for brands, but for the average user, you dont understand all those limitations. Emily what about a triumvirate adam had arsey, president . You think they need new blood . Jeff there is a way to go. We will see whether having founders at the helm of the company will change the trajectory in terms of user growth and innovation, or they keep the founders out, because those founders who have been controlling the product direction for seven, eight years are potentially hampering the innovation. It has been literally dormant on the product side. Emily you have analysts saying acquisition is inevitable. Jeff 16 billion, people can afford it now. Dave its a pretty small list of who can acquire it now. Jeff t is for twitter. Emily [laughter] dave they have to change. They cannot keep doing what we are doing it. Emily we are definitely continuing together. Dave, jeff, you are sticking with me. Coming up, google unveils an archenemy for twitch. We will tell you about the battle for the most gaming viewers, next. Emily breaking news workday shares are rising in extended trading. The company reporting a better than estimated quarterly revenue, saying it has surpassed its recruiting goal. Shares are up 4 right now. It is google versus amazon in the fight for gamers. Today, youtube officially launched a standalone site, youtube gaming, a platform for people to watch live streams of other people playing video games. It is a direct competitor for twitch, which amazon paid nearly a billion dollars for. With me to put it in perspective, jeff and dave. And from l. A. , lucas. Lucas, talk to me about you to gaming it does not cease to amaze me how many people like to watch other people playing games, but this is a huge market. Lucas yeah. Gaming is the second or third biggest topic on youtube after music. Music videos get watched the most, but if you look on the charts of the most subscribed utube channels, gaming is two, and four is pewdiepie, who has 40 million subscribers. Mostly what he does is talk to people while hes playing video games. Gaming is huge on youtube they have known it all along. If you look at what youtube is trying to do, they are cultivating specific sites, specific experiences for fans of a particular type of video. They have a new Music Service and now they have gaming they are trying to make the messy world of youtube for users and advertisers. Emily david . You are laughing. [laughter] david i have an 11yearold little boy. He and i, we sit down together and we watch youtube games. We learn how to write games, we watch people play games i think it is brilliant. As goofy as it sounds, google just got upgraded by Goldman Sachs today, and it is because, frankly, the Public Markets are making companies more responsible. There is an emphasis on profitability, they are going to google saying, you have to generate more revenue with better margins. They are taking an existing asset that has a massive subscribership and driving more value out of it. There is clearly a need if i am sitting with my 11yearold it watching this. I think it is ingenious. Emily jeff, is this an opportunity . Jeff what took them so long . It is so obvious that youtube should have this. Curse has Youtube Channels with tens of millions of monthly viewers, and you wouldnt believe how much time fans of spend watching other people play video games. It makes a ton of sense, and its good for the market. Dave we see the same thing in our industry. We have a sales acceleration platform, and that is one of our fastest it might be our fastestgrowing segment. Even though we have an amazing system for revenue, they are buying gaming. Emily bringing out the inner competitor in all of us. Lucas, thank you so much. Dave, jeff, thank you both today for joining me. Now to the race to make our homes smart. June is an oven built by former apple engineers and designed by robert brenner. I went inside the june kitchen here in San Francisco to test it out. Emily meet june, the ultimate sous chef. It is so smart it can detect what food you want to cook and tell you how to cook it. We are taking from the latest and greatest of Machine Intelligence and Machine Learning, Computer Vision and deep learning. Emily part a. I. With a splash of Machine Learning combining a lot of tech already in the kitchen, like a scale or the temperature probe. But with june, it is all about one device to help you become a better chef. So we are in the kitchen, surrounded by ingredients. The oven sounds cool. How does it work . Lets say i want to make a steak. The oven recognizes the steak, and with the core temperature thermometer, it knows the starting temperature, and can ask you the preferences. The oven takes care of everything. Emily you are an inventor on a number of camera patents theres a camera in the oven. With apple, the camera was used to capture pictures. We analyze pictures on a streaming basis. Emily this all sounds great and innovative, but at almost 1500, it costs a lot more than your average toaster oven and cant cook larger meals. Like thanksgiving turkey. There is also competition. The rebel is already on the market and only costs 250. Tech companies raised over 1 billion in 2014. Up 272 yearoveryear. How do you see this sitting with other connected product out there . The internet of things as a concept is in very early stages, and we are really excited for the next phase, when things are able to start working together and become more interconnected. Emily the june smart oven we will see. We will be right back. Emily another story that had us on the edge of our seats, a camera reporter in virginia was shot dead this morning during a seemingly routine live shot about local tourism. The alleged shooter then started tweeting while he was on the run. Turns out he was a former employee of the local tv station former reporter, in fact. Identified as vester lee flanagan. He went by Bryce Williams on air and on twitter. He managed to tweet about what he had done and why, but he filmed the shooting, posting the horrifying video to both twitter and facebook. Both accounts were shut down, but not before the clip was shared across social networks with those violent images auto playing in newsfeeds. Including my. The suspect later shot himself and he is now dead. The woman they were interviewing was also shot and is reportedly in stable condition. It is time now for our daily byte, one number that tells a whole lot, and todays number is 75 million that is how many pcs have installed windows 10 four weeks after the latest release. That is according to the Vice President , who tweeted that this morning. Microsoft says windows 10 has been downloaded in 192 countries, and 122 years of gameplay has streamed from xbox to windows 10 devices. Big numbers so far. It is likely getting a lift from the fact that the upgrade is free. We will be tracking these numbers to see if microsoft can meet its own target of a billion devices in two to three years. The long anticipated steve jobs biopic by aaron sorkin premieres in october. Sorkin spoke to a number of real life friends and colleagues, including andy cunningham. Her Public Relations agency helped to bring it off the ground. Andy cunningham of the Cunningham Collective joins me in the studio. You have seen the film. It focuses on the mac launch what did you think . Andy it is a wonderful film. It is an incredible character study of an incredibly complex man, and i think aaron did a fabulous job. Emily i interviewed aaron sorkin on studio 1. 0 and he was quite proud. Take a listen to what he had to say. Mr. Sorkin steve jobs i can say that the rest of the world may not agree, but this is the first time i have felt at the end of the script like i wrote exactly what exactly the movie i wanted to write. Emily you even met the actress that plays you. Did she get it right . Andy i did meet her she is a wonderful young lady and i feel honored to be played by her. Aaron did a great job of portray me in the film. It is a very small role, but it is professionally done. Emily steve still looms so large what are your biggest takeaways . Andy steve was an amazing later, and he did three things incredibly well he inspired his workforce incredibly, he stretched each team member way beyond what they thought their limits were, and he was really bold and really brave. He put a stake in the ground and he did whatever it took to make it happen. Emily what do you think of apple today when you see how they are marketing things . That is your bread and butter when you see the apple watch, for example . The first product after he passed away. Andy i love the apple watch. I think steve would be very proud of the apple watch. I think they have done a good job. I think they need to speed up on innovation they slowed down a little bit. But from a marketing perspective i think they are doing a great job. Emily what specifically are they doing well . Andy i think they are capitalizing on the cultlike nature, if you will, of the apple community. That was a surprise we stumbled on when we launched the macintosh. We did not realize it would be a cold product. As soon as we did, we started capitalizing on it and making a community out of it. Emily you still run your own agency here in Silicon Valley. Is there anyone out you who reminds you of him . Andy yes. I worked with hundreds of ceos in my lifetime, but only two embody some of the traits he had one is john chambers, the other one is Reed Hastings. There is a third ceo, brian chesky, from airbnb, that i have Great Respect for. But i have never worked with him. Emily what is it about these three people . Andy they all do those three things well. They inspire their workforce, stretch people beyond their limits, and are really bold and brave. They dont care what other people think of them and they do it in different ways. John chambers was very conservative and professional, Reed Hastings is very earnest and High Integrity about everything. Brian just seems to be going for it and i love that. Emily do you think apple will make a car . [laughter] andy yes, i do. Steve told me a long time ago that he was making appliances, and he wanted to put a motor in every box, so every time you on an apple product, it would just work for you beautifully without any effort. Emily i, for one, cant wait to see the film you think it will get good reviews . People have tried to do movies about steve jobs that they didnt quite work out. Andy yes, but they didnt have aaron sorkin. It will work even if you dont know anything about Silicon Valley because it is an incredible character study. Emily i am optimistic. Andy cunningham, thanks so much. That does it for this edition of bloomberg west. Tomorrow, we have bob or talking about their new business focus