publicly traded companies. i'm emily chang and this is best -- "bloomberg west." coming up, a muscular third quarter earnings report from fitness device maker fit bit but shares slide after hours. plus -- could hit the road early next week and likely investors will have tough questions for the c. e.o. and germany's technology said to be the leading candidate to snap up their child's summer conductor. first up, bloomberg news. more than hatch a million leave u.s. prisons every year but with jobs and mental health services scarce, many are soon back behind bars. president obama called for breaking the cycle of

incarceration. president obama: millions of americans have difficulty getting their foot in the door to try and get a job, much less hanging on to that job. that's not bad -- that's bad for not only those individuals individuals but bad for our economy. emily: congress is considering legislation doesn't -- cutting sentences for nonviolent drug offenders. a search for clues of a deadly jet crash saturday. officials have combed a seven square mile area around the web -- site and says it won't stop until the bodies have been recovered and terrorism has not with -- been ruled out. and a iowa for exampler who helped form gateway has died.

he shimmed p.c.'s straight to consumers in boxes with a spotted cow design and started gateway with his brother in what eventually became one of the most popular computers on the markets. he was 53 years old. fit bit crushed analysis for the third quarter. but shares are falling close to 9% in afterhours trading, the company announcing it's going to share an additional 21 million shares plus the lock-up of shares is up october 31, meaning they can start selling. the company came in with sales more than $409 million. again, better than estimates. joining me here in the studio, r guest host for the hour, fabier.

your biggest -- ever. >> to date, yes. emily: and stewart, another investor. shares are down. what's going on? >> last time they beat the quarter, q-2. shares were down do. this time they're going to add 21 million shares in the market. emily: why do they need additional cancel right now? jeff: two things. the company needs more for investment and at some point the invest investors want more shares in the hands of the public. at first there were only a handful of shares out there and they want nor out there for people to buy more. emily: they're wanting 10% more than expected.

why? jeff: it's only normal that some get the idea to sell and make some money for the work they've done for about five years. emily: you're invested in other companies. but how optimistic are you about fit bit given there's apple watch in and out -- now -- >> when you look at the warblese, it's still continually growing. fit-bit was the first and continues to be the leader but we're seeing apple come on very strong. offensive some of the analysis hat -- emilie: some of the analysis i've seen is that the apple watch hasn't really taken a chunk out of fitbit. is that true?

jeff: you can grow the market a -- without having apple has been strong and hasn't resubmitted. at the same time i'll give apple the same number of devices and they didn't tell us anything about how successful. emily: except they're growing sequencely. i agree, it's vague. -- rt, you think they think they can do better? stuart: yes, we're going to see a lot of new products come along and i think fitbit realizes it's not just about the device but

about the application. people want to know how can i get more r.e.m. sleep, how can i feel more restful? look at other applications. i think fitbit will look at partnering ing -- with other applications. emily: the elephant in the room. between fitbit and another company. fitbit firing back with an antitrust claim. we reached out to both companies. fitbit saying we've been able to successfully compete in a competitive market by providing technology at price point that are found effective.

jabo maintains fitbit's market fit ance -- jawbone says in poaching and employees further underscores it anti-competitive conduct rather than innovating. jeff? your reaction? jeff: i'll -- i won't comment on lawsuit but isn't that a way to get further publicity? emily: stuart, is there real validity to these claims or is this sour grapes? jeff: i'll let the attorneys answer that one. emily: jawbone has struggled to gain market share, right?

stuart: definitely. how -- emily: how worried are you about jawbone? they're one of the players here. stuart: it's a long islander and they're one of the ones to go after so jawbone is going to go after them if they need. to emily: where do you see the wearable space evolve something stuart: this whole transformation of self- actuallyization is going to where the individual is getting data themselves and using it to say how do i improve my life? it's personal because everyone is different. everyone has different eating patterns, sleeping patterns, eat -- and we're going to see an explosion of devices. weaver already seeing it with breathing devices so you can see how many breaths you take. emily: i will be watching. thank you so much, jeff clavier.

my guest host for the hour. and germany's largest chip maker the is said to be rontrunner or fairchild. we've already seen more than 95% -- billion dollars of semiconductor production this year. up more than 400% from a year ago. coming up, the h.p. weaver known for years is no longer. it's been split and we'll toll you how investors are reacting. plus, what the future holds for apple map. details up next. ♪

emily: it was an historic day on wall street as tech icon heat packard officially split into two firms. h.p. inc. will focus on selling p.c.'s and printers. hulett enterprise will sell data hardware and services. the question for investors and employees, whether two really is better than one. our tech reporter ryan joins us and still with us, jeff clavier, our guest host for the hour. brian, if you look at the shares, h.p. inc., the p.c.

company did much better than h.p. enterprise. >> it did. she gave the defense of two is better than one. we're going to be smaller and go after these markets. but i asked her about these stock markets moving all over the place. she said look, there's going to be a lot of volatility. give it a few weeks, even a month. emily: any nostalgia for the good old days? jeff: it sort of makes sense for them to split. the question is what is the long-term outlook for those in a low margin shrinking sort of business? both end up being interesting in the short term, cash cows, i

heard, in the reporters but -- reports but how can they stay competitive? h.p. enterprise and. c. is printers going to go to stay ahead of the competition? emily: the stock hasn't moved much since meg whitman took over as c.e.o. in 2011. how much upside is there for two separate companies? what do we expect then to transition into that we haven't seen before? brian: that's a huge industry -- industry -wide question. h.p. is saying we're growing market share in places, we're number one in some very good markets. but their bet is hey, we're going to be your consultant, show you how to get on the cloud. we'll show you how to handle all your i.t. demand but does that

equal growth? that's a much bigger question. emily: you're shaking your head, jeff. jeff: they have to figure out what they can do better so they can cut costs. the question is what is the next large market? the question for the consulting business is this is low margin, how do they scale these new sectors they have to acquire into and i haven't heard that. they have what $17 billion in cash? that could make a few acquisitions strategically, the right ones but bringing that revenue increase of 10% is a major feat so we'll see. emily: in the last few weeks we've seen down by e.m.c. and brian austin talking about that. we're seeing all of this consolidation in the chip industry.

is this going to be written about in the history books where we saw either a lot of consolidation or big breakups? brian: you're seeing an industry that's tragically been growing for year of year coming to a very slow pace. michael right back right at dell. meg maybe -- may be right. this is an strip worth watching still. emily: do you think h.p. could give amazon services a real run for its money? brian: h.p. is backing away from the cloud. they do have a hybrid cloud approach. different things to help that you are customers but a.w.s. have that to themselves right now. emily: interesting. brian, thank you for joining us. jeff clavier, you are with me

for the hour. a new app was quitely -- quiet li released by apple allowing juicers to map indoors using only their iphones. it was discovered by a developer yesterday. the indoor survey a.m. uses a combination of wi-fi and radio systems to track positions, very similar to a start-up bought by apple in 2013 for $20 million. coming up, major players in the tech space report earnings this week. we'll tell you what to expect and on the way to the break, a check of the day's top tech movers. another stock we're watching, albabby, shares up again today. bringing its one-month return to 33%. more "bloomberg west" next.

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emily: check out our funding board. today home cleaning start-up candy technologies has announced it's raced $50 million in new funding. it was founded in 2012 as handy books, a way for customers to book home services like cleaners and handymen. in july its main competitor home joy shut its doors after failing to raise enough capital. a preview of what's to come in tech this week. big players reporting quarterly earnings. we'll will be hearing from tesla and others. here to predict what we might ee is our guest and co-host,

jeff clavier. tesla reporting tomorrow. what are you quarterback to be following? >> it's been a touch time for tess larks right? the stock is down 20% over the past few months. the model x they started shipping in september. people are going to want to see how it's doing. emily: i want one. the mom batmobile. brad: that's right, the crossover. what does tesla look like with two upscale cars? tesla does lose money, it's sort of a way of life there. of course they're saving the planet but you wonder how much appetite investors will have. emily: everybody thinks they're the most amazing car ever but are people going to buy them en masse at the price point they're at? jeff: they used to be priced by the review sort of companies and they've lost a lot of that shine

because they had a bunch of issues reported and owners sort of bought teslas for all the prominence they had. but if you talk to people in the street that own teslas, they love their cars. they praise their cars. emily: i was going to ask -- jeff: it's more sort of a car that is a software of great cycle and people sort of pay for he extra, the super, the hyper in a way which i've never seen. they have an attach rate which is pretty enormous for a car brand which looks like sort of a gadget. emily: what does tessly look like make more than one model car? >> it would give investors faith in the road map.

but look, he's got to show prague and show provelt. emily: and how much does it matter that now we hear apple is working on a car. google working be -- working on self-driving cars. more companies working on electronic and autonomous features in cars. jeff: apple and google are working on someone that is going to fail. nd tesla has shown -- it's the second car nonetheless, the x will be the third, right? if i look at the progress they've made in those upgrades, i'm very impressed in the non-traditional way they've been operating. but it's been very, very impressive. concern about e -- s.e..

>> the strock -- stock is down considerably since i.p.o. price. investors are looking to see them cut their loss. that's obviously a positive first step but they need to show that this world of hand made vintage items, even being the leading marketplace there -- yes, there is a challenge from am son -- amazon. -- this t si -- etsy is a big, growing market. jeff: i have to see the details in acquisition spending and so rth but the dropping -- is channeling. emily: we're going to be looking at advertising, mobile strategy. they've been killing it, it it

seems, when it comes to video. >> i think that's right. expectations have been so high. they've been crushing it quarter after quarter. like 1.5 billion tave users. it's an incredible platform and they've turned on the spigot of advertising lately. jeff: i can't help but be impressed at the way that team has executed quarter after quarter, new products, new concepts, enroaching -- encroaching more and more into our lives. offensive what about turning on the spigot in turns of the other ervices like what's app, and messenger? >> investors would like to see that but zuckerberg has been so careful about those other platforms. those platforms remain

advertising-free. if they were to stumble 24r8d be pressure. right now there's no pressure. jeff: there have been proven ways to bring commerce and i'm pretty sure they'll be running some tests to see what would work versus what wouldn't in other parts of the world. they're really, really strong. offensive we'll be all over facebook. etsy and tesla reporting this week. coming up, amazon shuts down its credit card reader while square prepares for its i.p.o. road show as early as next week. we discuss next. ♪

emily: i'm emsexem this is "bloomberg west." time now for our global tech business flash. blackberry's big experiment

starts this week. the company's new and very first android phone is about to hit the market. c.e.o. john china said he will exit the device business if he can't make it profitable. they've not managed to stop hardware sales from falling. blackberry sales of the global market is less than 1%. the reliance communication is agreeing to buy a.f.k.'s indian wireless unit, creating a contemporaryier with 11 million subscribers in the world's second largest wireless market. the deal in india where stiff competition has resulted in tariffs that are among the lowest globally. sweden's seamless direction rallied the most in a month. they plan to split off the

secure mobile transition business, to focus on its largeo nd more profitable division. and uni group is agreeing to buy $1.1 million stake in -- electronics. would be one of the largest companies in china. earlier in year they expressed interest in buying u.s. memory chip maker micron technologies. now, to who's in and who's out in the world of mobile payments. over the weekend, amazon quietly shut down it credit card reader, amazon register. the $10 plastic reader by bude just over a year ago. it's good for payment square as they prepare for an i.p.o. road

show as early as next week with the goal to start producing as early as thanksgiving. jeff clavier with us and also, former polamalu executive and current c.p. overall. of points and aliss -- alex, who has been following all of the developments. road show next week and potentially going public the week after that. what do you know? >> there's a window here that would be good for hem to pursue before the holidays. we might see terms set here in the next week or so. then they embark on the road show, this will be a -- which will be a busy time for c.e.o. jack dorsey since he's also now heading up at twitter as well. they'll take time to visit with investors, probably in san francisco, new york and other

major cities been they -- before going into the price-setting process. where they'll try to pick that lucky number they'll debut at when the clock starts ticking. emily: i want to bring you in here as someone who knows probably more about the mobile payment industry than almost anybody out there. how optimistic are you about square's business? on the one hand, amazon getting out is good news. on the other hand, amazon couldn't make it work. >> thanks, emily. thanks for having me back. optimistic? it's hard to say. it's hard to make money just in acquiring a scomplone it doesn't get barrett -- better as you scale. but it's a great loss leader for value-added services. the bright spot is that square capital is actually doing good so processing business payments gives you a great entry into

other services. one of them, cash flow lending looks really good. they have five other products they're trying to sell to businesses. it's not clear yet because 97% of their volume is made off payments but that's the big question, can they made -- make a lot more money from value-added services? emily: there's been discussion between jack dorsey splitting his time and also the executives who are supporting him at square. this illuminates the other businesses that square has gotten into. first of all, the c.e.o., sarah frier, former business vice president, former vice president of amazon web services. the caveat lead, a former executive at facebook and google. jacklin is now going to be

leading square capital. does that make you any more optimistic, this strong bench of people, make you any more optimistic? >> -- jeff: that's the only way to sell the i.p.o. is to be able to look at that bench of exec activities and say we have jack as the leader but all these other people in charge of running the day-to-day operations of the company. we have an unusual fact of somebody trying to sell the i.p.o. of his company while running another one. trust me and my team. it's a 24/7 job to be a public company c.e.o. and he's going to do that twice. people say well, steve did that or carroll. no, nobody has actually done that. for the first time, have to prove their business. offering to the i think so

institutionals while running a company, and one that's involvement doing extreme exro libel either. offensive let's talk about the business. osama, what do you see as square's main advantages in a landscape that is competitive but changing very quickly? what are square's main advantages and what are the challenges? osama: i think they've created a great brand. that's probably their biggest -- biggest advantage. for a start-up that's been around six years amongst a lot of goliaths. and they've inspired a lot of technology. there are so many doing different businesses because of square starting six years ago. but it's also kind of a double-edged sword. when the numbers actually came out it's not clear that the core business they can make a

long-term business out of and they need to change to be successful. offensive right. revenue is increasing but losses are increasing as well. alex, how optimistic are invest ayers on the square i.p. o.? we've seen other i.p.o.'s go out so far this year. is square a different greed? -- breed? alex: a little bit different. they have that recognition as a start-up but when companies start to hit the market, you've seen it with twitter. investors start to care more about the explosive growth so important in the early days and they want to know when it's going to hit the bottom line. what are the -- when are the additional services that are just a small amount of their sells, what -- sales, when do they become bigger? this will be a bit of a well better -- bellwether for these newer tech companies that everyone is speculating when

they're going to hit the market. but tech companies will be paying attention to see how public investors look at this company. ll it match the $5 or $6 billion from the last round. emily: and osama, how do you see the tax payments landscape evolving, having been at google and pal paypal. there's apple pay, android wallet. what is square's position in that future? osama: it's very important that square move up market. they've actually done extremely well with the original story being there are 10 billion businesses out of 30 million that accept credit card. we're going to address the other 20 million. the reality is the others make up only 1%. those 10 million matter a lot

more so moving up maurkt markets is going to be critical. but their hardware play was really meant for the long-term so they're going to have to figure out that piece. the world has changed since they started. 2009. now consumers are looking for an experience across all channels, not just an offline channel. emily: right. as we discussed they've added a number of business is. i'd luche to be a fly on the wall along with you, jeff. osama, thank you so much for joining us and alex, our reporter. thank you so much 6. snapchat, the pic sharing app is working to calm users' nervous at -- after it calmly revised its privacy statement last week stating it has the right to store and use customer content.

there's been a backlash since then. snapchat said we want to remain crystal clear, your snaps and chats you fend your friends will remain as preist as they were before the update. coming up, a guest's -- richard branson's favorite place to make investments. ♪

♪ emily: air air is partnering with richard branson and virgin america. they launched an award program

to earn members points. cory johnson spoke with both branson and air air's c.e.o. this morning. -- air bnb's c.e.o. this morning. what's the deal? what are they actually partnering on? >> air bnb is going to offer for people who fly on virgin and end bnb a destination for air to earn points. and it's interesting because it's a different kind of business than it used to be. they are at a very different place, than abnb is, so is virgin america this is what jonathan millen haul wanted to say about the way this is a growth between -- company. the chief marketing officer of air bnb.

>> we've grown tremendously over the last seven years. it took us four years to go from guest number one to guest number a million and this year we'll end up having 60 million travelers traveling eric bnb. >> different people? >> different people. from the beginning until now. as we continue to scale we've become nor mainstream and that gives us license to partner with more mainstream travel brands and partners such as virgin america. >> kind of amazing. we wanted to talk about the way the business works and how they see themselves. tweeted . of air bnb outs we're going to make a big announcement. however many holetsd they're going to add in the next three years, we're going to add more rooms than that in the next three weeks.

-- are they staying in someone's lirm or are they an alternative so a high @ or she on the and how are they going to market themselves going forward? here's what he had to say. >> this year we will close on having two million properties on the air bnb platform so we've basically doubled in size since last year. from upancy rate can go 100% in a city like san francisco to seasonable occupancy in a city like orlando. >> that's -- emily: that's interesting because ib -- air b in b is going to be on the ballot in san francisco. >> low-income housing and what a city can do or should a city, for example, priverled low

income house something i would argue, absolutely she should shh they should. it helps the city have the character they want. emily: how concerned are you about the regulatory issues surrounding airbnb and these kinds of battles that continue to have to fight? jeff: the two companies like this are attacking the same issues. at the same time, they actually have have in front of a ballot where some people are trying to limit how much of those rooms or sort of apartments can be put on airbnb. >> and spending $2 million in this one local election to win this battle. jeff: because san francisco is sort of home turf.

they have to win it. >> it could be the model for others going forward. jeff: when you think about those investments, how much of the regular la turris or framework they have to compete against. they're going to have to find a balance between the field need for them to have low income housing and also the need for them to scale. it's going to be tricky. emily: you spoke to him. is he an investor in airbnb? >> he is not but i was surprised to find he is an investor in uber. ut he talked look making the investment while he was standing at the bar at necker island and deciding right there and -- then and there to investments richard: i ended up investing at the bar in necker.

it's a beautiful restaurant. saving lots of people from being broken into. emily: tell me more of the story. >> i was on the benefit last night in the ocean. they raised $600,000 at a benefit last night and i saw rans r.a. branson there. yes, there were stories and -- emily: sounds like a great place to make an investment. >> blow your seed money real fast. emily: korey johnson, our editor at large, thank you so much for that interview with branson. more with you, next. resistance is futile. "star trek" is returning to a television near you. cbs announced today that a reboot of the classic series will premiere in january 2017 just after the 50th anniversary

of the original series this time around it will be a web series that will run exclusively on its all-access subscription service. so far alex, who starred in the first series is the only one connected to the project. it's another example of a media company creating new media projects -- products as ratings fall for traditional television. up next, nasa is celebrating 15 years aboard the international space station. we'll talk with one astronaut about how technology has changed sensex decision one. ♪

2000, n this admit

christina aguilera had a number one song. "meet the parents" was at the top of the box office and nasa's first crew docked at the international space station. today nasa is celebrating 15 continuous years on the i.s.s. joining us, an astronaut aboard the i.s.s. my first reaction was christina aguilera is that old? you were on expeditions six, 30 and 31. over 15 years be how has life on the i.s.s. changed? >> the first time i was on space station, it was under construction. it's like living in your house while you're still building it and you have a bucket where the singh is supposed to be and then you find out you have to entertain the boss and you have to move the tables out from the dining room and so on space station it was like that, even

though we were still trying to do some scientific experiments wile we were building -- while we were building space station. emily: have meals changed? are you still eating space ice cream? don: nasa decided that was too much of a mess because the little crumbs fly around and it was too much of a mess. we don't do that anymore. emily: that's a bummer. eff: back in 1991 you had -- and now you have much more powerful machines. two questions. how has the i.s.s. upgraded from a technology standpoint and what are the gadgets that the astronauts use the most today? don: astronauts interact with station,all our s.f.c. our space station support computers. normal laptop computers and nasa changes them out every few years

but the actually computers that run space station are 486 processors and the reason is these are radiation hard sexnd they don't chunk as easily as a standard laptop computer. those things die all the time. emily: i want to talk about funding because president obama signed a two-year budget blueprint which was passed by congress last -- congress last week. w much does nasa depend on funding from the government and how much is private? don: you're asking me funding or merge earlier-type questions. i'm just a little guy that gets to fly into space and do all the work. you'll have to ask somebody from nasa headquarters about that stuff. emily: does the idea of a

private space race is that exciting to you? don: oh, it is. commercial space, i think, is if wave of the future and it adds robustness to america's space program because we have five or six commercial spacecraft for transporting people under construction right now in the united states. only one of them is nasa's. the rest of them are commercial and it's going to see how successful these people are. it's like the barnstorming days going off from flying airplanes but now we're going off into space and the more spacecraft we have for getting into space, the more robust our program is going to be and the better americans will be to explore space. jeff: on the lighter side of things, what do you guys do in terms of having a couple of hours to kill?

don: we call it off-duty time because you never really have free time because you can be called back at a moment's notice. you he limited free time can do any number of things. watch d.v.d. movies, read books. whatever you need to do in order to maintain your psyche. i prefer to do little science techno educational projects they dreamed up just because i was there. emily: and not eating space ice cream, unfortunately. astronaut don petit, thanks this for joining sexugs congratulations on 15 years. thanks so much. that's it for today. we'll be back tomorrow with a wrap on earnings. thanks for watching. ♪

inouncer: from our studios new york city, this is "charlie rose." "harlie: "our brand is crisis is the new film. sandra bullock plays jane bodine, a political strategist who comes out of retirement to help reelect an unpopular bolivian president. it is called "a character study of a cynic reaching her limit." here is the trailer for the film. >> she is the brightest and most innovative. >> the best campaign strategist in the game.