New ceo. Largely on the and, mobility tech is all the rage and uber takes one more step to becoming a onestop shop for all of your transportation needs. Heavyweight Technology Companies led a rebound. Andanies like salesforce alphabet, fresh record highs. That means that the smallcap Technology Companies are looking relatively cheap on a valuation basis. Joining us, bloomberg across asset reporter sarah ponczek. Really i am showing, now looking like some of these smallcap Tech Companies look cheap relative to some of those big things. You are looking at the forward price to earnings ratio the s p p 500 versus 600 for both technology sectors. 600, as you can see, trading at a discount, at the lowest level since 2001. I will say that we posed this chart to Jonathan Golub of Credit Suisse about an hour ago and he said, i would not be too quick to count out these large Tech Companies. , but theaw the rally earnings picture for smallcap is likely to be a bit rockier. At the same time, many are saying that it is probably time for a leadership shift. Amazon, microsoft, facebook, apple, and google, those companies accounted for 29 of returns. Outn from blackstone puts an annual list of surprises every year. This year, one of those was that the fangs will likely lose their leadership luster. 2020,st early on in especially today, we continue to see large cap tech outperforming. Taylor as we get away from some of the bigger tech names, we go into the smaller companies. Salesforce, a topic by rbc, closing at a record high. As aoes rbc see salesforce top opportunity . Sarah it seems like the stars are aligning. And i mean analyst recommendations. What they did was they pointed to their revenue forecast for salesforce throughout 2020, through 2024. It is not just rbc. Had also seen suntrust as well, one of the compelling names within the software space. Rbc, theyo back to did set a new price target. A 25 upside. 173 per share. In 2019, just last year, salesforce was the laggard. Yes, the stock ended up, but when you compare that to the s p 500 Technology Index or the software into see Groups Software industry groups, it is less than half of that. Taylor i also want to take a look at netflix. Appeared to be snubbed a little bit at the Golden Globes. Did the shares react to a lack of awards. Awards . Sarah we did see a little bit negative reaction but we did see a pickup. Yes, of course, netflix will be facing immense pressure from other streaming services, especially with the launch of the likes of disney plus and others. Are not sure that investors too worried that a netflix movie did not win the Golden Globes as opposed to some other production as well. On a morewant to end serious note. Cybersecurity stocks, crowd asike, for one, up 9 today many brace for what they expect to be cyber warfare from iran in retaliation. Quite thehave seen rally across cybersecurity is stocks. Lifelock, crowd strike. Crowd strike of course is the company that went public just a few months ago in the middle of 2019. It just provides firewall services, for example. People are still speculating, trying to get an idea on how iran will retaliate to the airstrike that did kill qassem soleimani. We will see how they truly do come out. The idea is that, if they may retaliate through cybersecurity excuse me, through cyber warfare, then these cybersecuritys, other companies will need their business. To stick with cybersecurity and escalating tensions between the u. S. And iran. Bloomberg has profiled one american businessman who can attest in detail what happened after he provoked iran. Ournt to bring in cybersecurity reporter. Fascinating profile you did on Sheldon Adelson. Who is he and what do we know about how he coped with the iranian cyber attack on him . He is a casino magnate. In 2013, he come at a conference in new york, was speaking about ways to deter irans approach against the United States. He said, if you want to put them in their place, go test a nuclear bomb in the iranian desert. In the months that followed, his casinos were hacked, he had to spend at least 40 million to secure them. Over the next year, the u. S. Government did confirm that it was the iranian government, iranian assets that did infiltrate his system. They do have the capability to push back of threatened and i think that does hint to what could be in store after last weeks attacks. Taylor is there any lesson we can take from his experience, Sheldon Adelson at las vegas sands, to some other corporations in order to prepare . It is hard to know exactly. Industriespeaking, across the United States are paying close attention to their own networks if they werent already. Especially the financial sector. They know they are a representation of capitalism in the United States and perhaps low hanging fruit. We are seeing that by how close lipped they are this week. After the hack, basically saying we are doing what we always do to protect our infrastructure and we will let you know if we have more to say. Infrastructure, education are all ones that come to mind. The financial industry is one that we deem to be pretty well prepared. Spent hundreds of millions of dollars to prepare themselves. There are others that are more cashstrapped. Bviously, hospitals local governments, we have seen ransomware attacks. They occur because these are easy targets. Hospitals. Then you have utilities, companies that manage gas lines, to an extent, power grids. These are industries that are lacking resources or priorities to nail down for abilities. Taylor now that we can look back at the last few days, what how are we hearing what are we hearing . We saw a u. S. Government website defaced with pro iranian , antiu. S. Messaging. This is pretty common and often automated, but it is a hint that perhaps the slow trickle of attack finding its way into government and private spaces. What we are hearing now is that irans sophistication has evolved over the past decade. About 10 years ago, the stuxnet their uraniumd facilities. That has caused them to prepare for their own offensive capabilities. Over that decade, we have seen them attack the saudi government a couple of times, other governments that are fair warning that a similar attack could occur. What that will look like is largely speculation. Taylor still waiting to see. Thank you. Coming up alphabet gets a new rating. Gets a new buy we will speak to Pivotal Research next. If you like bloomberg news, check us out on the radio, the bloomberg app, bloomberg. Com, and in the u. S. , on sirius xm. This is bloomberg. Was upgradedbet from a buy to a hold from Pivotal Research. Says theevine narrative continues to improve in 2020 and beyond. Give me your take. 1397 toe get from a eight 1650 on the stock . Thing that was most inpelling to us, a change regime with sundar stepping in, but one thing some missed was his compensation agreement was filed and what struck us was that he basically is compensated on the percentage differential that google stock does relative to the s p 100. He has basically got a 45 million trench on plan for Stock Performance in 2021. It is pretty refreshing and encouraging to see alignment between management and Stock Performance. From a company that is historically taken a very different approach to working with the street. What do you think he can do that the former founders of alphabet cannot do . Michael i think it is not what they can do, it is this former philosophy they had that we are smarter than the street, we will beat to our own drum and there is no need to do anything differently than what we are doing. You see the kind of disclosures we have seen from Companies Like amazon, netflix, alibaba. You have playable to see that with netflix, they had been running at losses until quite recently internationally, but a pretty wide gap with domestic margins. If you did not understand what was going on, you would have had this big pit this big shift. With google, we are pretty itive on thomas curie thats currian, saying 1 10ally they were around awssize of azure or workforce. And they wanted to get to half the size in 10 years. You help them understand what youre doing revenue wise, what the margin drag is, it allows people to better understand the moving pieces. Michael, you call 2019 a Critical Foundation year. Frankly, alphabet has been likeng other big faangs apple, facebook. Why was 2019 so critical . Michael the part i was trying to call out as critical is really around the cloud business. Currian basically got brought in. He has made a lot of changes in a hurry, bringing in key lieutenants, making an acquisition of a Company Called lookr. In, what ioking suspect happened was they actively tried to recruit him and he said, i dont need the job. I am interested but i will only do this if i am set up to win. I think he has made a lot happened in a relatively short period of time. Taylor i want to finish pivoting from the cloud to the ad revenue business. I keep. That facebook more so than alphabet placed to benefit from 2020 ad revenue growth. Do you think they can both Grow Together or one at the expense of another . Michael i think they can Grow Together. The ratings have obviously been suffering. Money is trying to find a way to get spent. It is one of the reasons we thought that q4 was particularly strong, that ratings were underwhelming. As a marketing manager, you dont want to have budget left at the end of the year. We think that helped provide some pollster. For context, what is impressive with alphabet, we basically have them forecast growing 24 put in dollars in 2020 versus 2019. Facebook, a little bit smaller incremental yearoveryear growth. I think it is fine for both of them. Taylor Michael Levine and little research, at the total research joining us. Thank you. Ohio, the columbus, Transportation System is one of the smartest. We will speak with the mayor, next. Liver technology is livestreaming on twitter. Check us out technology and follow quick take. This is bloomberg. 20 20 the annual ces kicked off today in las vegas mobilityuture of technology is front and center. The city of columbus, looking to reinvent its Transportation System through technology. I am joined by columbus mayor Andrew Ginther. Many cities want to be the new tech city. Have you done to make yourself a smart city . We went uper against other cities for the smart city challenge. The integrated data exchange. We now have autonomous shuttles we have been using in downtown columbus. We are going to launch this we are going to launch this month the first one in america that will serve residents in a neighborhood. We believe in columbus that mobility is the great equalizer of the 21st century. We want to make sure we are using innovation and technology to help people improve their own lives. Taylor the first selfdriving shuttle operating on public roads in a residential neighborhood. Given all the safety concerns, how did you overcome that to make sure you are efficient but safe . Mayor ginther we started working with the residents of linden. It will connect residents to the community center, the settlement house, other opportunities. Continuing to work with federal, state, and local officials. It will go live for the public in january. I am going to be on the first shuttle, letting them know it is safe for them and their family, taking into account that there will be schoolchildren. We will be limiting the hours just to be extra careful and reassuring the public that this is a safeway this is a safe way to get where they need to be. Taylor you said you would be byeasing evs to the fleet 2020. 2020 is here. We have continued to grow that. Over the last three years, we are at 121 percent growth in ev adoption. The country is that 94 and the midwest is at 82 . Our goal is to have that ev penetration. We are currently at 1. 2 . Making Great Strides in ev adoption and it is because of this great publicprivate partnership. We had 90 million put up toward a local match. Philanthropies. We are now up to 700 30 million in aligned investments in our smart investment work with a goal of a billion dollars by the end of this year. On thiswe talk about 5g program, how it will be transformational. Where are you in the race for 5g . Andrew ginther on mayor ginther another way we are collaborating with the private sector, protecting the rightofway interest but working with these providers. Our big focus is on equity. Making sure that as we are growing dramatically, we are doing it inclusively, making e that residents are you in being the next tech center . Mayor ginther we believe we will grow by one third over the next 30 years. We know that growth will be dynamic. We want to do it inclusively. We want to make sure there is a place in our future for the people of columbus who have made it so special. Taylor thank you to mayor Andrew Ginther of columbus, ohio. The u. S. Braces for a potentially ron cyberattack in retaliation to that deadly american attack. We discussed that next. This is bloomberg. Taylor we join bloomberg daybreak australia to bring you the latest tech news. Tops take a look at the mobile tech stories of the day. Lets start with china. Bloomberg has learned that the chinese delegation has signed its first fit will sign the first phase of the deal with washington. That is on january 15. The Group Originally planned to travel earlier in the month. Software, ordering an initial Public Offering where potential advisors by the end of 2019. The shake shack founder sits on the board. With banks that continue pursuit of hp. It is the largest ever bridge loan. The xerox bridge is also the biggest the first jumbo acquisition to emerge in the loan market this year. Those of the top tech stories we are watching. Taylor lets get back to our top story of the day, the u. S. Air strike that killed one of irans top military officials is tre of athe spec cyberattack from iran. For more, we are joined by the senior director of intelligence analysis at fireeye. What have you noticed recently . N the past isour biggest concern now for the physical safety of some of the users we have worked with. Ron, when tension seen iran, when tensions rise, carry out cyber espionage. We have seen them develop a surveillance capability where throughe tracked people their cybersecurity providers. As with any kind of physical threat, this espionage or surveillance capability would allow someone to get closer to this concern. From know that hackers iran have not been inactive over the past few years. Bracing for heightened activity. What are the targets they are looking for at this point . To studye been able them and view them in saudi where they have been active. They are focused on critical infrastructure, places that provide services, organizations that have very complex systems where they are seeking to disrupt those systems with viper attacks, malware that basically erases hard drives. Seriousause some monetary damage and grind businesses to a complete halt. Taylor i hear that the financial sector, least of all, is most prepared. What about infrastructure, energy, education . How prepared are these four, lets say, a viper attack as you just mentioned . Lot of organizations have taken a proactive approach. Within an hour of notification of the operation, we were getting questions from our customers, from a variety of different sectors. Oil and gas, government communist abilities, and other , government, municipalities and others. Stepsre taking proactive to prepare for the tactics they know the iranian actors use. One lesson we have learned, the ransomware incidents we have already faced in the United States. The wiper incidents are really just ransomware without the ransom. A level of dominance and reliance on the tech sector in the u. S. Economy make it particularly vulnerable . John yes. Incredible cyber capability of our own. Every time we have seen it, it has been head and shoulders above others. Of problem is, our level technical sophistication is really also our weakness for asymmetric attack. The adversary can take advantage and disrupt our systems. We have seen a lot of good examples of that. When russia launched a , weomware attack on ukraine saw billions of dollars in damage to companies that worked in logistics, manufacturing, very complex systems that simply stopped. These how advanced have iranian hackers gotten in the past 23 years . First had america series of as well as destructive attacks against businesses, they were just learning how to do a lot of this stuff. Them stop focusing on the u. S. To focus more on the gulf. They were improving their capabilities. Actors we have seen in the past or not at the same level. Theyve improved, they have new tools, new tactics. They have been very successful. This is happening at a crucial election year. Disseminationhe of fake news to intensify . Absolutely. It will probably carry throughout the election. Theyve been prolific spreaders of this information. They have invented new tactics that we havent seen before. How much economic damage are we talking about . Thats a good question. We dont expect an iranian attack on a larger scale to cause Major Economic damage. Concerned about his major damage to single economic persistence. Single Companies Might experience extreme damage. We dont expect it to cripple our economy. Companiesone of these we have seen that before with that incident where theres a large attack. Only a few companies took the brunt of that but they took major hits. Fascinating conversation. Great to have you. Us. Hultquist joining lots more to come. This is bloomberg. If 2019 was known as the year of text ceo shakeups, what will 2020 hold . There is expedia and adam neumann who abandoned ship when the ipo collapsed. With these departures can come opportunities. When will we see more women with diverse backgrounds . The ceo of board span mention