Taylor how cyclical is tech hiring . Forecastedssion later in the future. Doesthe economy does well, text see some over hiring and when it doesnt, does it see under hiring . Is it defensive, or economic agnostic . You dont have as many Business Cycles to look across to see how modern Tech Industry does. Certainly doing the tech bubble, you had a huge run off at the time. It was recently that we started to reach the Employment Level things focusing on the tech sector. The cyclicality matters. It matters for every industry. But tech is doing its own thing as well. Taylor i have to ask, where are the female jobs . Adam they are throughout the Tech Industry as well. Every industry is working hard to find more people. They are going to have to hire men and women as well. Taylor adam, thank you for joining us. Adam thanks for having me. Taylor switching gears to the realm of videoconferencing, zoom video started to celebrate one of the tech ipos of 2017 that went up but after a strong thirdquarter and raising the full revenue outlook, the stock has been tumbling. It is down nearly 10 over the last few days to tell us what is going on in new york. Is Solid Earnings good guidance . What happened with the stock . Lets be honest here. The magnitude of the thirdquarter earnings seems to be pretty big. Obviously, wall street was not prepared for the magnitude of which it was placed on the prior quarters. One thing the market and analyst discusses is you can tell this is a what have you done for me lately type of industry. One thing investors want to see his continued growth, especially as it seems like we might be coming into a recession as well. Taylor did it seem like expectations coming into this were just so high that nothing was going to satisfy analysts . Kamaron that is the sad thing about it for a company that is as good as you nvidia. They had a really good ipo in april. One thing investors wanted to work is stash the cash. Definitely. Superhigh that it was going into the earnings report. Taylor lets talk a little about the fundamentals of the company. They revived their full year outlook higher. What is driving that . Kamaron it is definitely revenue and their whole recruiting process. That is one thing the ceo spoke about on the call today. A really big growth driver for them. It seems to be more traction with the larger Enterprise Companies. That is anything for zoom video to figure out. How can they find their niche in this market as they compete against cisco or microsoft but still knowing consumers are using facetime and skype . Taylor you know, despite some of the barest commentary today, analysts overall remain pretty positive on the longterm outlook for the company. What do you see as the longterm opportunities . Kamaron spoke today about across the several catalyst. S. Before we get to the catalysts, one thing the analyst spoke about his wealth evaluation. They revised their estimates aggressively, so that way, the valuations kind of makes sense for what is coming up. Taylor i have to say, it is one of the few ipos frankly that managed to do well. Any sense of what is selling this Company Apart from some of the other launched ipos we have seen . Kamaron just the brand itself. Zoom video comes off as cool. That is the thing. Are they marketing to everyday consumers or something that is for Enterprise Companies . Spoke about the model working for them. Another question that came up on the earnings call, it seems to be going well for them. Taylor final question here. Who is the competition to take on this cool company . Kamaron we have to think about the big players. We have cisco, microsoft, adobe. I saids see microsoft. Ring central as well. Taylor wonderful. Thank you for joining us. Now, tmobile is preparing for a crucial battle over its sprint deal. The fight begins monday in a federal court in manhattan. A judge will weigh arguments to block tmobiles proposed 26. 5 billion acquisition. The states say it will raise prices on consumers by eliminating competition in the wireless business. Tmobile says by combining with sprint, it can reduce costs and lower prices. Coming up, we will get the as it scoop from huawei battles the u. S. Government. Our conversation with the chief officer is next. If you like bloomberg news, check us out on the radio. You can listen on the bloomberg app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Taylor now to a story we are continuing to follow, huawei versus the u. S. Government. On wednesday, we reported how the Chinese Telecom is suing the u. S. Communications commission in a fight for greater u. S. Market access. On wednesday, their chief legal officer made huaweis case to reporters. Let me be clear about National Security dangers. Politicians in the u. S. Say they are very concerned about theseecurity and we share concerns. Banning a company like huawei because we started in china, this does not solve any cybersecurity challenges. Taylor joining us now from washington, huaweis chief security officer. Spend theask, why time and money suing the fcc when the u. S. Is such a small market for you guys . Well, we are really sorry we had to do it. It is disconcerting. This action they took is beyond the pale. They have ignored the s,nstitutions, the statute due process under the statutes, and they have not followed their own president. We are able of law country, but this commission has not acted consistent with the law so we were forced to take legal action. It is not about our ability to make money in the u. S. We want to protect our customers and want to help serve over 300 suppliers for which over 40,000 jobs depend. Taylor so you dont think this has been an outdo distraction from focusing on some of your bigger markets like europe or asia . Andy we are in 170 countries. I have been to 26 countries. I went to a small country in europe. Only 2 Million People there. We are about digital inclusion, about bringing the benefits of technology to the underserved. Half of the worlds population is underserved. That is what we are really about. Taylor you mentioned some of the u. S. Suppliers. Some of those received the right as well to start selling back to huawei. Do you feel in your opinion that is a fight that you one in that case . Won in that case . Andy we dont think of it as winning permit although it will be difficult if we cannot broaden the companies. We will be ok no longer. Our execs are not going to lose their jobs. But we think there is a greater likelihood a lot of americans will lose their jobs. We believe those jobs are really a pond in the u. S. Trade war. It is really a necessary and not related to National Security. Those companies are not allowed to sell to us. Taylor so you would like to see the huawei National Security issues separate from the trade war. Andy well, we believe the issues related to security, and i participated in meetings at the United Nations in new york on tuesday where we are talking about what is necessary to promote a safer cyberspace. It requires a joint responsibility between government and private companies, telecom operators, and equipment operators. There are sophisticated factors. We have to make sure we test everybodys product, test the code, hold the countries and governments accountable to do the right thing. That is the conversation we would like to have with the u. S. Government, who unfortunately are not willing to talk with us. At least we can discuss those issues with the United Nations this week. Taylor what do you say to thele with concerns over beijing government . Andy at least five nations in the world have the ability to hack into everybodys technologies and products. So to make america safer, we have to make sure mechanisms are in place that govern the telecom and operators, equipping suppliers, regardless of where they do business, regardless of where they are headquartered. We are ready to put in mechanisms to guarantee the u. S. Government our products are not back to us from the chinese government, to guarantee the employees and the responsibilities, that they are not doing anything improper. Have been proven. Nokia has been allowed to do it despite their deep ties to china. We want to have those discussions. It is not about trusting anybody or putting mechanisms in place to guarantee we are safer. Taylor can you guarantee they have not turned over data up until this point over to china . Andy well, we can guarantee going forward. Thera lot of folks forget the equipping vendors do not sell the equipment. There are very strict requirements, as there should be. The equipping vendors who were hired to update the equipment do so in a way under very controlled supervision. For example, in the u. S. , we only use specially configured laptops. We need written permission every time we will have access. Every keystroke is recorded. So the customer has full transparency on what we access and what we do with it. Those are the kinds of guarantees that need to be in place for everybody so we have a safer cyberspace. Taylor you said you would like to have discussions with u. S. Administrations. Have you had any contact with the administration or other federal agencies . Or do you feel like you have been shut out completely . Andy we have been shut out. When you look at the independent federal communications commission, their rulemaking, they are supposed to hear from the people affected. They are supposed to follow their own rules and own president s. We want to have conversations with the u. S. Government. If it was not for the u. S. And china trade war, i think we would be having those conversations, but we are a pawn and thousands of american jobs are in the balance, and it is a shame. Taylor are you will read other european nations are considering the way huawei or zte the u. S. Is . Andy the u. S. Government has been putting pressure on our allies and countries around the world. You saw then Prime Minister theresa may of the u. K. Angela merkel of germany. They said the u. S. Government has given no evidence of cybersecurity wrongdoing by huawei. What i am encouraged by and what we are encouraged by is what the European Union is doing with their 5g risk assessment. They want to have mechanisms to have a comprehensive approach to address the most significant risks in cyberspace using international standards, recognized testing, independent testing, including code review. That is the kind of thing that is encouraging. Maybe as those efforts progress in europe the u. S. Can take some lessons from that so we can be safer in cyberspace. Taylor a conversation that will indeed continue. Thank you for joining us. Andy youre welcome. Taylor coming up, citi is expecting a strong Holiday Quarter for apple and raising its price target for the company. I will talk to an analyst on the move next. Bloomberg technology is livestreaming on twitter. Check us out. Be sure to check out our Global Network on quick take on twitter. This is bloomberg. Taylor apple price target was raised to 300 from 250 from citi. Strong results in the companys Holiday Quarter. The pricing strategies and recent demand trends were factors. This holiday could be better than last year. Last christmas, apple preannounced after january, in fact it was january 2, it was a negative preannouncement the First Time Since the iphone launched, which was over 12 years ago. A remarkable, terrible, disappointing quarter. Some of the hottest selling products are the wearables. Apple watch and the air pods, they are selling extremely well. We believe people will be surprised by the results driven by those items. Taylor i want to talk about apple. Their ability to pass on the costs. What is their ability to raise prices on the consumer when it comes to the iphone . Jim great question. I got to tell you to be honest when they hit 1000 for an iphone, that was the ceiling. They saw a slow down once they hit 1000. That, the reality is what they are doing is packing more and more features into these phones. Things like memory, screen content, capacitors, resistors, all those things typically come lower in price. Instead of making the iphone cheaper and less expensive, they pack more quality into it so that consumers can have a better experience. They try to keep their prices generally stable, except the apple watch now, the older version, is selling below 200. Teenagers want this left and right. These lowerpriced items are starting to appeal to the younger generation. Taylor you mentioned the watch, wearables, services. I want to show you my terminal here, which is the Services Revenue growth. We have seen it decline a little bit. What do you need to see from the company to get the reacceleration of these Services Revenue growth . Jim there are two things we are looking at. First, apple arcade. This is a studio for me or you as a parent you can look at and put in different parameters for your child. Do they want education . Do they want more racecar, motorcycle crash games, violence . They can plan parameters. Over time, they can continue to change the parameters to be more loose. That is different from going out and buying a single subscription to a videogame your child may become bored with in three or six months. We are looking for apple arcade. It was launched in september. Everybody got a free 30 day sets cushion for free. We will see how people renew on that. The second thing, apple tv. A lot of content and things coming up. So far, they have not been overly successful with it. We are watching this closely. But it will be harder to track because when you buy a new iphone today, you can one year of free subscription. The revenues from that will come from a year from now. We are monitoring it. It is important. It is decelerating, most because it is a law of large numbers, about 10 million a quarter. Taylor i want to talk about potentially december 15. If it hits, how much does the stock fall . Jim tariffs are bad. They are bad for apple. They are back for technology. It is basically a tax the government has put onto the corporations, who will likely pass it on to consumers. Taylor will apple pass it onto the consumer . Jim i dont think they will. I think they will bite the bullet and shift production to lower cost areas that do not have tariffs. India, that will be the next generation hub. Also, mexico, guadalajara, vietnam. These countries are going to benefit less so than the united states. Taylor will they do that in the next two quarters . Jim they cannot do it that fast. Great question. To employ an entire dorm of workers, thousands of people, it cannot be that fast. Taylor you have been doing it for 20 years permit i could have made this conversation go on for 20 more minutes. Jim, thank you for joining us. Jim thank you. Taylor coming up, we go over the top tech stories of the dramatic exit. How the company will perform under leadership. That is next. This is bloomberg. This is Bloomberg Technology. Taylor i am taylor riggs in San Francisco and it is time to go over the top stories the week. At the top alphabet technologies founder sergey and the other founder step down. Here to discuss, we are joined by bluebirds Sophie Alexander as well as Bloomberg TechnologySenior Executive editor brad stone. Every analyst on the street said this is a great thing, they are consolidating. We now have seen our pichai, clear man in charge. Try sundar pichai. Larry and sergey have been receding from public view. Rollback ofesent a the alphabet structure, putting one person in charge. I think the streets reacting the way they did because they think to dart will bring some discipline to those far off debts. Most of them pretty well but not a lot to show for the others. As we transition from the business back to the iunder, one said frankly if were worth 50 billion, i, too would just take a leave and just had an island somewhere. You have been following them. What is their story . Actually 60 billion. And they have seen a pay bump. In the past few days after the news, shares rose 3 . That means one point 6 billion for each of the founders, larry page and sergey brin. That does not mean that much because it is all still held enough about stock. It is only going to mean money they can spend if they start selling stock, which is what we will be watching. Taylor we talk about now, he has taken over alphabet and google. What will be the biggest task as we move forward. Probably to keep his eyes on the ball. Google still represents 99. 9 of alphabet cells. Of alphabet sales he has more response ability. Yet the problems that youtube, keeping advertisers in the google ecosystem as amazon and facebook make headway. Those are still too dark and ties core concert those are core concern. Also voices with the powers to make himself known. That has been destructive to some of the corporate goals like doing business with the corporate federal government. Taylor this brought up the broader question of all these Big Tech Companies that do not still have their founders. They have been found passed along to the secondgeneration. The founders billionaires and moving on. What we know about who is gone and he was still left . Ceo andurse Apple Microsoft ceo, neither our founders. Now you have google. It is interesting to watch. From the wealth perspective it is interesting. Obviously the seals are still paid well and have a substantial amount of stock. But the real money obviously the ceos are paid well and have a stock but the roman is in the billionaires. Taylor the second story of the week is tesla and elon musk. We will find out as early as friday, perhaps next week, if elon musk will have to pay for a disparaging a off british came driver cave diver. What we know about how the case is going so far . The jury is out now. Continue with the theme of the travails of wealthy people, elon is saying perhaps he does not have the cash for the play out payout. I think his lawyer was hypothesizing that damages could go into 100 million or 200 million. Elons wealth is tied up in spacex and tesla. This was two guys insulting each other on twitter. So it is unclear how the jury will come out. Taylor and le