 Okay, welcome to John Furrier, SiliconANGLE.com, SiliconANGLE.tv, a daily program called The Extraction Point, where we are at the center of all the data flowing around the web. And from start to finish, from the morning till the afternoon, a lot of stuff happening. We will be there extracting all the signal from the noise here at four o'clock every day. That's going to be our format. We're going to have a lot of fun with it. I'm really excited by really the idea of bringing a lot of people in to SiliconANGLE.tv and focusing on knowledge, extracting that knowledge out from the data out there and from the opinions. So it's going to be opinions. It's going to be facts. It's going to be a discussion around what's happening. Last Friday, for example, we had a great conversation with Doug Garland and Ramin Darbahar from Finland, talking about Nokia and Microsoft, and it was a very good conversation and it hit us that that's a format we want to expand on. So we're going to try to do it every day at four o'clock. We're going to talk about the key things that need to be extracted out of the marketplace. A lot of bloggers out there, a lot of noise in the marketplace talking about news, what does it mean, and the data is going to be at the center of it and we're going to extract that data and bring in our friends and people that we follow in Silicon Valley and beyond to get their opinions, to talk about it and to extract out the detail so that you know what it means. For example, today there's been some big news about the HP buying a company called Vertica, an area close to our space in the cloud software market and we have a lot of information on that because that obviously impacts the big data market and obviously we're here at Cloudera, the home of big data, where our office is in Cloudera Labs, where SiliconANGLE Labs is located and so HP bought a company today, a pretty big deal called Vertica, which is backed by Kleina Perkins, Bessemer, NEA, and Highland Capital. The CEO is Chris Lynch and it's a company that's about six years old based in Bilricka, Massachusetts, and it's interesting that HP is now going after the big data market. We've seen Hadoop rise up and companies like Cloudera, the hottest start-up in Silicon Valley, established their leadership in big data, and now the big guys are coming in. We see EMC buy Green Plum, a very fast-growing start-up now part of EMC, IBM is doing a lot of work in big data, and now HP buying Vertica is a huge deal because HP had a huge investment with PDW, which is Parallel Data Warehouse, and that has now been eliminated with this acquisition, so it shows that HP is changing their strategy to be a big data player. We're going to bring in some folks tomorrow to talk about that in detail, so tomorrow we'll find some folks here in the big data market that have experience in that, we'll drill down on it. But that's what this show is about. We want to get to the heart of the issue, and really the extraction point is this show at four o'clock every day, and we're going to talk about all the things that need to be extracted out and discussed. You want to follow us on Twitter, it's SiliconANGLE, at SiliconANGLE, or at Furrier's My Handle, and looking for some folks who want to just send some comments in and send them in. Now this week we have some interesting guests. We have, tomorrow we're going to have Omar Trajman from Cloudera, who used to work at Vertica. I was going to comment on the big data seen from HP, and kind of what that means to the marketplace. On Wednesday we're going to have Andy Kessler, author, famous hedge fund manager, Silicon Valley Guru. He writes for the Wall Street Journal in New York Times. He's flying in from LA from his trip down there, and recently wrote another book called Eat People, and we're going to talk to him about entrepreneurship and key lessons. And then on Thursday we're going to have Rich Screnta come in. He's the CEO of Bleco, a very well-funded, big-hyped startup that's in the search engine space. And we're going to drill down on them and talk about some of their value. It was pretty hard on Bleco when they launched. I didn't really like the product at first, but we're going to drill down and get an update from Rich and give them a chance to talk about some of their innovations. I've been a little bit bullish lately on Bleco, mainly because they didn't feed into the hype, and I think the marketplace gave them a lot of the hype, and I'm going to give them a pass on that on my critical comments, because what they're doing is very interesting. They're attacking these content farms, and they're looking at spam in a new way. So we're going to hear from Rich Screnta on that on Thursday. And then Friday, we might take a day off on Friday or have a guest host, because I'm going away on vacation, our kids have a five-day weekend. So that's going to be probably a no-go on Friday. We'll see. We'll let you know as the week comes on. So Ricky, who do we have? Do we have Bala come in the house yet? We have a guest coming in here. We have a guest that's coming in. His name's Bala. He's a new hire here at Cloudera. He's in the management space. We're going to talk in detail about management. Looks like those things are coming out of meetings right now. We'll see if we can get them in. Let's take a look at what's going on the web today. So the big news today, in my opinion, is a couple things. One, in the spirit of extraction, extracting out the signal is the reality of the bubble that we're living in. Zynga is looking at taking in about a quarter million to $300 million in new financing at a $7 billion valuation. I heard from my sources that the number is close to $9 billion. I also have some friends who are angel investors in Zynga and first-round investors. So I could not be thrilled for my friend Paul Martino and Rich Leventoff, who have a massive exit in that company. And I hope they sold some shares and paid back their funds 10 times over. So those guys are sitting pretty. And for Mark Pincus, who is the CEO, who's about my age, really made it big and put his mark on the tech industry. He's been an entrepreneur for years, going back to his career. He's had some startups. He's had some successes, but nothing to this level. So I like Zynga. I like the valuation. I like the cash flow. And I think they deserve to have that kind of valuation. But to me, that's the big story is these valuations. And I wrote a blog post on Friday talking about the bubble. And I had some interesting comments. Matt Eastwood, who's an IDC analyst, said it's a market cap bubble, not an IT bubble. Well, I think a bubble is a bubble. And I think the market cap bubble is one that has some collateral damage. I think in my post, I agreed with Brad O'Neill, who runs Tech Validate, that there is a bubble and it's going to burst. I also agreed with this guy, Roger, who's a VC angel investor, that some of the mega brands do deserve the valuation. I would agree that Twitter deserves a high valuation. I mean, it's just so revolutionary that product. It's so disruptive. Zynga, Facebook, these are new mega franchises. And I think they're going to command the kind of valuations that will allow them to earn a lot of future cash flow. So those brands I agree with. The things I don't agree with is the valuation of Quora and these other companies that are kind of on second tier mega brands, not even close to even being mega brands. They're hyped up management teams with an unproven product. I think these are the kinds of companies that are going to be very frothy and bubble-ish that will ultimately burst. I don't know if it's been out there, but I do know the valuation of Quora. I'm going to try to see if the valuation, the valuation of Quora is out there. And not sure if I want to break it on this program, but if Arrington is breaking it yet, because normally my Arrington breaks all the scoops, if Arrington, you're watching this, if you know the valuation of Quora or you don't, then you're bummed because I know the valuation of Quora and what they're asking for. So it's outrageous the valuation that Quora is demanding right now for some young guys who are good guys building good products. I just don't buy that that's going to be the kind of valuation. I think that's where the damage is going to be and the collateral damage will be in the case of failed startups. So to me, that's a major problem is those failed startups. The other hot thing that I'm finding is big data. The big data hype is key. And one of the things that really exciting about SiliconANGLE, SiliconANGLE.tv and theCUBE and the extraction point this show is that we're sitting at ground zero for big data. The SiliconANGLE office is at the space of Cloudera, which is the company that's commercializing Hadoop. Cloudera is the hottest startup in Silicon Valley. And not a lot of people know about it. I mean, people are writing about all these Facebook companies like Quora or whatever, but they're not writing about Cloudera. In fact, in a post by Sarah Lacey of AOL Tech Crunch, she wrote a post about the Facebook mafia. She can barely mention Hadoop because I don't think she really understands Hadoop. And I think that Hadoop and Cloudera are very relevant and an ex-Facebook alumni is the founder of Cloudera as well as ex-Yahoo with Aamir Awadallah. But Cloudera is open source. It's about open source, about the smartest minds in the industry working on a really game changing technology. And that's really powerful. And we have a front row seat of that here at SiliconANGLE. So that's super exciting. Our studio is gonna be here capturing it live. We're excited to have Ricky and Michael help out with the studio. We're gonna try to get that up and running. The other notable things is a conversation we had, I had privately with a bunch of investors and VCs and executives privately but then publicly we talked about Netflix. People were so down on Netflix. I think there's a Twitter debate that went on. I stood firm on a long position on Netflix. People were arguing the stock price but Netflix is definitely along on my mind. They can be a game changer. I think Hulu might get caught in the net a little bit of this whole licensing thing but I think Netflix has the answer. I'm really bullish that they're gonna be a major player in the mobile space for content. The Intel investment today was an interesting story that they invested 26 million in a bunch of mobile cloud companies. I think Intel's really groping at this point for relevance and I think the Mego thing is a real shining example of how Intel really just seems to be missing a lot. I mean they're very smart. I just think Intel might be moving a little bit too slow for the marketplace and I think the Mego, Nokia thing and then this recent patch of investments doesn't really show me anything from Intel. So I'm gonna have to evaluate that a little further but my opinion is Intel just seems to be slowly becoming closer to irrelevant and more and more in these conversations around being the Intel monopoly that they once had and HP's big announcement this past week was a sign that they're moving from Intel. So Intel really is losing out in my mind. I think we're gonna watch Intel closely. I'm sure that they cut expenses. Their earnings would look good but ultimately from a product standpoint I'm just not seeing it. So we're gonna keep an eye on Intel. Ricky, how we doing on our guest ballas? You coming in here yet? Me stuck on a meeting. Some other top stories today. It's Valentine's Day. It's my daughter Jacqueline's 14th birthday. Jacqueline, if you watch, it's a shout out for you. And happy birthday, she's 14 on the 14th and I'm gonna go take care of the ladies in my life today, Jacqueline and my wife Linda. So we're gonna have a good time with that and we're gonna end the show early today. Ricky, what do you think? Let's see if we got any questions from the group here. We're here in SiliconANGLE.tv's headquarters. We're going to reset and bring back Ricky and our guest and we're gonna find out where he's at but we're at the SiliconANGLE.tv's studio is where I'm John Furrier, founder of SiliconANGLE and we're gonna start a daily show called The Extraction Point and it's gonna be a fun show because we highly opinionated for the folks that don't know me, I'm very opinionated and not afraid to share my opinion out there. I'm old enough where I can, not have to worry about it and got a lot of experience to share there so I'm looking forward to that but more importantly, we're gonna have some great guests and we're gonna have a lot of fun talking about the top news and really extracting out the signal from the noise. So we'll be right back, we're gonna take a real quick break and we'll come right back with more Extraction Point. Prepare for the Extraction Point. We've been briefed on all the important stories and events in the world of emerging information. Now it's time to extract the data and turn it into action. Live from the SiliconANGLE studios in the heart of Silicon Valley, this is Extraction Point with John Furrier.