host: shares fall despite revenue doubling. why it is a long way off. ♪ host: i am emily. jack buys shares of the company he is investing in "twitter's future." and, we hear about the hot main names you may not expect. a first for mankind.

astronauts in space and what it means. all of that is on bloomberg west. shares dropping. the maker of grand theft auto misses on shares and beats on revenue. ofning me now is the coo perevilmegacorp. what does this mean? >> we are looking at how they are setting themselves up or the sweet spot in the consul business. -- console business. we know the games are well loved and it goes e.on grand theft auto. -- beyond grand theft auto.

the sales were strong. we are going from the xbox one almost doubling in one year. two is important because they are going into a larger market. none of the release date seem to have slipped. the games are seeming to do quite well. at this point in the game, the re is not as sha important as it will be next quarter. that was a game joke. host: unintended. i want to send it out to you, the investor in activision. grand theft auto game going to take so many years to come out? i think they are a good

company that is focused on making hits. s with nolong period development. it can take 2-3 years to do the next grand theft auto. there are periods where revenue gets hit. dropill see a significant and they will have to wait for the next set of games. nba 2k.e game and n. may see red daw if they do, that will be a monster game. i think they have a great company. play more of a long-term in my perspective. that is why we are seeing the investor response that we saw. host: you have ea with a new star wars game and a new call of duty game.

you straddle these worlds. you focus on mobile gaming and worked at ea> how do you -- ea. how do you see the company adapting? you have other companies competing. >> it is growing and that is true. if you compare that to the amount of smartphones out there, the industry is in transition and that is going away from selling the game on opening weekend and having a time with no revenue. there is an ongoing revenue stream from these games. the big story is, how quickly are the companies adapting to the games being a product you buy off of the shelf to being a service that you consume over

time and pay for overtime. it is better for gamers and investors. there is a more predictable revenue trajectory. how well are companies moderating that transition? they are look at ea, doing well. o does not have execution on the mobile side in any significant way and there are plot forms to get gaming today. ipads,ly, smartphones, etc. in thelity of gaming ipad arena is less. look at grand theft auto on the ipad. it is not good. they have to get it right. they are figuring out how to leverage china and have not in from a significant revenue yet.

it is possible. not proven. johnson, wecory will be talking more. evilmegacorp is pushing into e-sports. gamers have competitive matches with each other. guest: some of the lasting franchises and have organized communitiesround that are competitive overtime. you think of league of legends and call of duty or counterstrike. they are focused on community-based competitive play. there are 100 million users. e is a multiplayer

battle arena with teams of 2-3 players competing. we want to free up the core gaming and enable the billions with touchscreens to take part. you have to have a great game and build a community around it that plays in the backyard and at the highest competitive levels. do you think a person who plays a social or mobile game on zynga is different than someone who would play great theft auto or the new star wars? >> yes. market is people who scheduled her lives around gaming and gaming is a legitimate activity. playing games to kill time when

you have annexed for three minutes is different from a gamer. they are both paid. of the computer gaming industry is in core gaming and it has not taken off on touchscreen. we like the opportunity of for the growth of core gaming. host: all right. we will be following the market. >> thank you for having me. model-s is one of the most connected cars and one of the most secure. hackers say they have cracked the code and hacked a tesla. >> my name is mark and i am a hacker in my spare time. >> i am the founder of lookout.

here because we hacked a tesla. >> march is a visionary and we wanted to look at the car. is it a benchmark? are there issues? if so, what are they? the tesla took a little bit of time. >> it was not just a case of hacking the car. we use a system to get information for another system. and gotore information a full control over the entertainment side of the car. car, ite case of the means you can do anything on the touchscreen that i can. flash the headlights, switch the car off. >> the biggest take away is that

cars are computers and your car has more in common with a laptop than a model to. -t.model d all the get hacke time. i am a hacker. if i am not hacking it, somebody else will. vulnerabilities will be found. you want them to be found by the good guys. >> this is the software update that we worked with tesla to prepare. we identified these as part of our research. >> all you have to do is click, "install now." it pushes the software. s> the vast majority of tesla will already be safe. cluesinvestors look for as to who will run twitter as

executives buyout shares. we will tell you why this may be key to a future on mars. ♪

another big story you are watching today. twitter is rising 9.6 percent

today after unveiling a content deal with the nfl. jack dorsey promoted his purchase of shares with a tweet. boughtrd members also shares of twitter, according to regulatory filings. is there the same confidence as the company searches for the full-time ceo? joining us here, james, and analyst. sarah, we will start with you. someone isd that leaving the board as soon as another ceo is announced. they are buying shares. williams is selling. he is selling hundreds of millions of dollars worth.

jack dorsey has been selling shares. if you look at the insiders and order members, there are more sales than purchases and the purchase jack announced was the first since the ipo. it is not the first time that twitter has tried to use executive purchases for public confidence. when the restrictions were lifted after the ipo, they pledged to hold onto their shares. host: you are reporting that when a full-time ceo is named, there will be a board shakeup and they will bring in new diverse candidates. -- new, diverse candidates. twitter is that one of the lowest point since the ipo. why should we buy? >> we have been on the sidelines. with the stock down, we think it

is the time. it has broken down to a couple of things. there is some risk with the transition. ultimately, twitter has strategic value and they are synonymous with real-time content. when you think about the future -- host: all right. about twitter and the companies that have capitalized on that. host: james -- hang on. we have breaking news out of google. the person who has been running the day-to-day operations at google for a long time will become the ceo. they page will go on to be ceo of alphabett inc. we are digesting this news now. i want to bring in david now. you have covered google for a

long time and we see that they cofounders of google are moving on, so to speak. we are trying to learn what off inc. means.lphabet >> he is a great veteran who understands the business and has then hear a long time. been here a has long time. abet inc.?so beph i don't know. the health has been a challenge the entire time he has been ceo. it has been a factor. google is a machine that continues powering forward and i rgei will remain involved. you will not lose all the

intellectual capital, so to speak. lphabetays that out foa is a collection of companies and the new google is stripped-down. the main product is contained in alphabet. life sciences, calico, --ch focuses on there is a shakeup in the operating structure, in general, at google. what is your reaction? >> it sounds like a new name for what we previously called google. massive advertising engine, a lot of interesting and not usually profitable entities, like the cars, the glass effort.

in andhey are folding it showing that it does not stop their ability to be a monster search engine. shareholders of google are now alphabet,ers of out fo i would assume. host: he added that -- stepped up tremendously. you make of this, as someone who covers silicon valley? >> it is interesting that we are seeing one of the top people at a company that is getting elevated to a ceo position. it is something that you said would not happen at google or facebook. -- has been recruited by twitter

in the past. . they used it to get more power. they are recognizing that he is at it which where he could run the whole thing. -- at a point where he could run the whole thing. the: what do you say to charge that they spend too much time on moonshots and do not focus on the core business. google has potentially ceded territory, especially on mobile advertising, when it comes to facebook. is this a recognition that rings are not going well and they need a dramatic change? speculate about a lot of things. focusing too much on core business can be fatal. disney is changes fast. siness changes fast.

areube, which they acquired, is a huge factor in their business. they are challenged by the increasingly-powerful advertising business and the targeted ability to move to mobile. it poses a long-term challenge. i think they can build the other businesses, however. host: it is interesting that it is after google blew out earnings and added to the market cap with a historic high and a new cfo. that theyby saying were exciting about getting more ambitious things done, taking a long-term view, and empowering companies to flourish. and improving the transparency and oversight of what we are doing to make google better through greater focus.

hopefully, improving the lives of as many as we can. the competition for google, advertising, is different than facebook. you have twitter eating away at things. will the moonshots amount to anything? >> this is the time to make the move. you have a good quarter and you make the moves that would otherwise be seen as a sidgn of deceit. the stock has been on the increase. this may be where they can get away with it and it shows commitment to the core business in a different way. host: to recap, larry page phabet the ceo of al

inc., a collection of companies, including google. runner willay become the ceo of google. what will you be watching for in bet, whichrld of alpha has been google. >> i'm trying to digest that. -- "why does that google do google maps?" been doing they have try to drive you back to their service to see more advertising. maps is one of those. car, thes like the life extension products, those do not do that. there may be logic to a holding company model. extraordinary company

and all of us would have to admit that this is the most earthshaking, world changing business that we feel the influence of every day. we cannot help but watch this with assignation. host: i love that word, "earthshaking." its corporate structure to separate search, youtube, and other web companies from other divisions. it will be part of a new company, alphabet inc. james, you cover google. what do you think of the news? >> it makes sense. it have been telegraphing a le atr role -- a bigger ro google and we have seen it relatively disadvantaged. facebook, linkedin, snapchat,

and twitter are the companies optimized for mobile. they are focused and removing moonshots is a good thing. host: what about all the moonshots? what about all the moonshots? y be standards will the held to. fine.is the only asset google has to capitalize on the size of the shift is youtube. youtube is doing fine and dandy. you have facebook breathing down your neck in a curated fashion that gets the right videos in fright of -- in front of the right users. i think there can be a much needed focus in the company that was not there before. that herry page writes believes companies get

comfortable and make incremental changes. he says that he can make it cleaner and more accountable. we will leave it to you for closing thoughts. referring to you earlier guess, they do not want to be revilmegacorp. this will put a spotlight on other activities without them being a distraction from the true massive profit generation machine. i always look at these people with fascination and i will continue to. i think they are amazing, brilliantly led, and they will continue. host: google now goes under the name alphabet. it is a major shakeup to the corporate structure. we will have this throughout the day. iq for joining us on bloomberg west.

-- thank you for joining us on bloomberg west. we will see you later. ♪

♪ mark: i am mark halperin. i am john heilemann. we are having fun with donald trump. mr. trump: we just had a great weekend. mark: happy national smores days, friend.