♪ taylor: i'm taylor riggs in san francisco, in for emily chang, and this is "bloomberg technology." iran mourns its fall in general and threatens attacks on the u.s., cyberattacks are possible. and, it is buy time. pivotal research raises alphabet

new ceo.largely on the and, mobility tech is all the rage and uber takes one more step to becoming a one-stop shop for all of your transportation needs. heavyweight technology companies led a rebound. andanies like salesforce alphabet, fresh record highs. that means that the small-cap 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 small-cap 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 small-cap 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 cybersecurity's, 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 iran's 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 week's 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 weren't 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 cash-strapped. .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 , anti-u.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 iran's 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 aws'size of azure or workforce. and they wanted to get to half the size in 10 years. you help them understand what

you're 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 don't 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 don't 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 year-over-year 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

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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 self-driving 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 ev's 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 public-private 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 right-of-way 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. >> let's 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: let's get back to our top story of the day, the u.s. air strike that killed one of iran's 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, let's 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 2-3 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. they've 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. they've been prolific spreaders of this information. they have invented new tactics that we haven't seen before. >> how much economic damage are we talking about? >> that's a good question. we don't 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 don't expect it to cripple our economy. companiesone of these -- we have seen that before with that incident where -- there's 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? >> there was a lot, taylor. it surprised me when we looked at the stat it'sics. tlrm 1,500 ceos that turned over in 2019. a record , that was year. i think that comes from a few different things. looking at is we're 2020 as the year of accountability. for ceos in e saw

2019. hey need to make their investors money, and the other thing is they sort of can't screw up while they're doing and if you look at all of that turnover, it often came weren't ither ceos making the money that investors were expecting or if they were making some pretty awful mistakes along the way. taylor: in all of your years of looking at this, did 2019 feel in a structural shift undergoing where people are saying, you know what, we're finally hold you accountable? >> i think it's much more the and i do think it's the business roundtable came out with a really big statement in the middle of the year. certainly seeing it in how investors are behaving and what call activist versus passivist blended together. we're seeing more demands out of investors as well. taylor: what should we see when we talk about corporate

governance and accountability. what are some of the main themes that you were keeping your eye on for this year? the watch word for boards is going to be ccountability, and we're even seeing hints of that already, so, for example, what's going on with boeing. then, of course, the massive of the bed, bath, & beyond board earlier this year. i investors and i think frankly, you know, regulators, the yees, nobody is off hook anymore. taylor: do you, when you take a at after the ceo stepped down and there is a big shake-up, what do you see about executives? is there enough of a diverse to choose?ich >> the thing to remember about ceo turnover is that there's two ways to address that, right, and it's all in the grand ategory of things called succession planning. the board has had the thoughtful or been to plan this out, and it's usually a multi-year process, you're going to get the smooth transition.

even in the face of tragedy. oracle really is a great case the really ith untimely loss of mark herd, nonetheless, they were as stable it could be, right? prepped and ready to go as ceo. even in the case of alphabet, ou mentioned earlier and you had an earlier guest talking to you about alphabet, i don't that was a big surprise. he was in the wings and waiting to step into the role of alphabet's ceo. adam newman, your other example took everybody by surprise. soft bank, and certainly adam himself. taylor: i want to take a look at chart we're showing inside the terminal. i can't put it out on social ecause we don't have the terminal number for it, but we've created this customized index, if you will, this watch list, showing the number of the board. the most is oracle at four. he goes down the list. two., it seems good. not great. we done enough?

>> it is clearly more work to do, and i think what we're howing here are some of the larger companies, so on the smaller company side, you do examples. not looking at the chart right now, but i'm surprised hp didn't show up there because i like to a pretty good example. oakland., also, we've got stitch fix, survey monk monkey. they all have good examples of diversity on the board? >> you all talk about and mention those are california-based companies. think the question is if we needed a law, it probably shows that we weren't doing enough. make of that? >> this is at the 826, which is a california law that you are to.rring capitalist at heart.

40 companies approximately. regulators. the no question, we cut the number of boards that don't have any california by two-thirds. it was close to 120 when this put into effect a little over a year ago. this definitely made some progress. i've come from new york, and we talked about how the financial industry seems to be terms of diverse backgrounds, and then you come to san francisco, and everyone way worse.ech is why is tech so bad? >> there's a lot of references culture. i really think it starts at the beginning, and this goes back to the comments we were making succession planning. so much of getting diversity, whether it's about gender, color, and even age and other ways of thinking about you sity comes with who bring in earlier into the whole process. it's really important to people and bring

them along that you do have choices. safra katz was such a great pick. he really earned her way into that role. taylor: ceo abby adlerman, fascinating conversation. thanks for joining us. qualcomm tackles autonomous driving. that's next. this is bloomberg.

taylor: uber bot rolled out in las vegas monday.

uber users in las vegas can now buy bus tickets using the app public prices and arrival times. uber's head of transit gave on the ride around vegas ludlow? mberg's ed >> this is a change of strategy where we're trying to put the riders first and build trust and build loyalty by them knowing that we're going to present them with all their best options in place even if taking public transportation and not an uber in their best interest. we believe we're going to build loyalty over time and it's best rider and uber overall >> it is building -- >> it's revenue generating for rtc. they are getting the same amount that they were before the riders paying the same amount. we are not paying any surcharge >> what is the about enfit to you? the benefit is about the lifetime relationship we're building with our riders where uber bnkz that one stop shop.

it's the first app that they pull out when they need to get anywhere regardless of what mode using?sportation they're >> the thing is it's just one. denver and lot in now las vegas. what about outside the u.s.? what other things are planned around the world? here do you want to take uber transit? > the main thing about uber is it's such a global business with 700 cities with uber ride sharing, more than four million active drivers on the platform, and so we're really looking to cities more and more around the world because public transportation is everywhere. the backbone of how people move around their cities, and it's not just something they vegas.n denver or las it's something you need in new york city where the subway is oftentimes the fastest way to where you need to go? >> what about -- world,elhi, all over the and it's really exciting for us to be taking transit to more and places starting where we're live in 15 cities, including las now around the world, and

with our second city with transit as well >> what's the timeline for out on a global scale reception so far is phenomenal. we'll be accelerating the face transit and ith transit ticketing over the course of the year >> one other project that's underway here in las vegas is high pole out. on the uber app one day? >> yeah. undertaking nating that i personally am very interested in, and we'll see course of s over the the future? elam?ything going with >> nothing that we can discuss today. that was uber's head of transit. in sticking with qualcomm unveiling its first chips in fully autonomous vehicles at the event monday. calls ed about what he

the natural extension into the space? >> we're very excited, i think, expand our automotive offering and betting into autonomous, and the reason i question is we believe that the cars are going to have to process so much data. mean, we require so much processing capabilities. to ty much it is going require a completely different equation about power, and coming industry, we phone the ability to do ch chip. that's where the real opportunity for qualcomm is. e unveil today our solution from both all the way to level one to level four plus, which is autonomy, but more important, we believe the real commercial pportunity will be to add autonomy to every car as a convenient feature with a driver wheel, much like cruise control, and i think that's the real opportunity that to scale this, and

we're also pleased to announce expansion of our relationship general motors now to include autonomy as well. very happy about that. for the nt milestone qualcomm automotive business here about sort of the prospects here and competition in this space, i mean, a couple of months ago i in november intel talked about its acquisition of mobile eye and how it was scale up t to sort of at a pace that it said was aeser than some of its competitors. is this going to be about what you do in qualcomm inteshlly or m & a start looking at and potentially buying some of smaller players out there? >> look, that's a great question. building in our automotive business organically, and i think we got to naturally connectivity to become the number one in both telematics connecting the car to the other cars with cell lar b2x.

then we went to the digital cockpit transformation. s, are number one with 19oem and i think we look at autonomy natural extension of ur computing capabilities becoming more powerful for battery-powered devices. that's where you see in phones, pcs naturally that will be for the car as well. further we could see acquisitions down the road, but probably smaller. what l pretty good about we've done so far to be able to with organic rm efforts. taylor: obviously, there's going to be a lot of flashy thing at es that would make you think that all of this is available tomorrow. when it comes to fully autonomous vehicles, though, yet. not there when is qualcomm betting that we will actually get fully autonomous vehicles? is this a 2021-2022-2030 event? know, i think that's where the difference is. why we have a platform that we autonomy, we're

really focused on what we call level three, and which allow you to get scale and make this really a commercial, good proposition for us and for our makers, and the platform we unveiled today we expect to see road by 2023 with hat we call level two plus or level three, which allow you to have the full capabilities of autonomous driving, but with the more behind the wheel, like a convenient feature. that's where we think the scale is going to be, and we are going to see that becoming a commercial reality? president qualcomm christiano amon. that's it for this edition of loomberg technology and bloomberg technology is live streaming on twitter. check us on the at technology follow our global breaking news network at quick twitter. this is bloomberg. credit credit

hour away from the market open in japan and south korea >> good evening from bloomberg's new york.dquarters in i'm kathleen hayes welcome to day break >> our top story this hour. more troops to east.iddle world trade near $70 while gold remains at a six-year