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Draper, Fisher, Jurvetson Managing Director Tim Draper on the outlook for social media companies and why investors should consider companies that are ...
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A -- response down about 10% in the after hour session because they reported.
Their earnings they missed on the bottom line but they did have an active customer in Trace of 275%.
Year over year that's the good news.
That of course coming out of its first ever publicly traded earnings report out just minutes ago.
Let's look at shares.
There you can see they are they are -- -- that they're actually off their bottom when the -- the news came out they were hit hard.
But the question is whether -- waters are -- for all social media companies.
They're struggling to make their mark on Wall Street joining us out of Fox Business exclusive -- venture capital heavyweight Tim Draper he is managing director Draper.
Fisheries service and good to see again Tim thanks for coming in appreciable let's start talking about replied if you don't -- thanks for having me it's -- it's our great pleasure and honor to have you here is is -- kind of fatigue with some of these social media products like Groupon.
Oh I think Groupon is a great company they created a whole new industry.
And there are a lot of interest in companies that are coming up and taking advantage of this coupon -- If -- is doing it through gifting and -- is doing it locally.
Under way to -- -- I don't know that it just that sentence of yours raised in the after hours trading by default.
Dollar it's now -- that's why there's so it's it's recouping some of its initial losses go ahead.
Well there is a great company and its created a great industry and it has a lot of competition and no I don't think -- have.
Any.
Any negative effects on -- will have any effect on the social.
Industry that that business is booming and will continue to.
OK so we should put our viewers know that Tim is the -- -- guy who has one of those.
Inside -- sort of a group crystal balls -- -- the one who got it very early on big names like Hotmail and Skype but Baidu which should become extraordinarily successful not to mention Tesla Motors.
So let's get your thoughts on you just mentioned newer exciting companies but what are your most exciting investments right now I'm assuming -- not publicly traded but.
Might eventually.
Well yeah at Draper Fisher -- and we're always looking for things where.
Meant that lazy monopolies have been a certain way for a long period of time.
And and it's time to take them on and so we we were very.
Fortunate to be involved in -- -- And in.
-- Hotmail and all those others right now the kinds of companies I'm looking for our wherever there's getting to be a lazy monopoly and so.
So I think the financial world has a little bit of this and so we've got a chemical prosper that does peer to peer lending.
That competes with the banks and then we have a company called expert financial.
That is changing the way people think big companies list.
So that they don't actually go public they go probably.
And and then -- -- to take on another monopoly I think the only real monopolies laughter.
Our baseball the unions and government.
And I think they're they're needs to be some entrepreneurial activity around challenging the government.
I was just going to say one of those lazy monopolies is the government in many cases I mean sometimes they crowd out.
All the competition I'm thinking of of the MTA in new York and I'm sure you have versions of that and every city in -- in the country.
It's the state of California I understand is is one of your targets for those -- monopolies.
But -- the areas that communities surrounding Silicon Valley are much more business friendly is -- is not right.
Yeah that's true I think the the counties around Silicon Valley Silicon Valley itself.
Is so vibrant.
And so many jobs are created here and and so much activity is here.
That they they actually overcome the bad governance we get from California.
But we do get.
Some you know some really good weather out him.
I that but you don't need -- job growth but you have been pretty outspoken in saying that.
That the actual tax structure has stymied Silicon Valley lately -- a lot of Silicon Valley companies we've spoken to certainly as we come up for three days in the valley we were -- to host your dad who was one of the region but regional venture capitalists.
But aren't so they're hiring.
But they kind of ignore the situation that's going on in Sacramento and that they find a way around the stumbling blocks.
Yeah I think a good entrepreneur are looks at where they're going.
And where they are and they find a way to get there -- whether it's direct -- circuitous route.
And they get very creative and and the more barriers that are put out -- tougher they get.
So -- do think that there are some very interest thing ways that we can continue to drive the Silicon Valley and in other parts of the world I think we call -- the global Silicon Valley now I think -- other other.
Parts of the world.
Are creating this great ecosystem where you get good entrepreneur r.s.
You get venture capitalists and and that virtual cycle continues to drive.
It's great to see -- Tim thank you very much for coming in again Tim Draper and Draper Fisher Jervis and best of -- to you.
And Tim you guys came up with you and Steve came up with disruptive technology that was a great term and now it's lazy monopolies I love that taking on -- name -- -- -- and competitive governance.
Company better competitive govern okay weather in the world like that for the prime mister for a loved that.
-- attempt and thank you very my.
