and be healthy. get off the floor and get on the aerotrainer. go to aerotrainer.com, that's a-e-r-o-trainer.com. ♪ welcome back. earnings, a beat on front. as far as their fiscal fourth quarter revenue, that below 27.06htly billion. saying it is eize a tremendous positively response to the iphone 12. welcome joe. china, revenue falling in the fourth quarter. this is meant to be an area growth and nt

it's also an area of the country that's been back on rack in terms of economic rebound. >> right. i remember seeing the pictures of the lockdown, it was easing and going into apple stores. one of the times of normality. see the stock selling off a little bit, down 3% but obviously in the grand this of things for year and in the context of how well this company is operating right now, really bad.oo too bad here. 73 cents versus 70 and total came in at enue $50.15 billion slightly estimates. nevertheless, interesting reaction in the market, joe. apple e on this and in particular let's bring in bloomberg intelligence enior analyst for semiconductors and tech hardware, thank you for joining us. e're all looking at the headlines at the same time but so far based on what you've seen what stands out? mean, look, this is an

okay quarter. i'm more interested in what will ber commentary on the iphone 12. we had pretty strong follow through into the calendar, even 1q. we have pretty robust expectations for the next ouple of quarters for if iphone 12 for sure, but this from ady as she goes delivery standpoint for an execution 3q perspective. the market isn't liking it much. $1.9 trillion ompany is a lot of market cap and it seems that the iphone number is disappointing, coming in expectations and the greater china number, falling 29.9%. that catch your eye? >> a little bit. that we'rethings , our with the iphone

numbers cleerm were far more robust. obviously they didn't pan but i think where expectations may have been introduction of an iphone sc could potentially offset some of a shipment om perspective. strength that moved out from 4q because of the delay, so that could have had a higher than usual impact on the quarter model o the new launch. and china, as much as you to say it's an emerging market, it may not true for the iphone sc. historically the iphone sc couple of sted a

quarters and maybe this time around is not so different. but i think the all -- that may explain some of the greater the all kness but important number is the q1q tracks on the iphone 12. >> we should point out that fourth quarter was the one at the end of september. so the new iphone 12 sales, show up in ill the q-1 number. get them. we're getting some numbers crossing the wire. confident on china growth and fiscal q1, saying it nt, grew double digit nits china outside of the iphone. 5-g, ommenting on the saying the 5-g iphone is a once in a decade opportunity and apparently thinks that iphone 12 will do well in china. i guess maybe he was you were hat saying. >> a couple of points i do point out.

solid.ery our numbers -- 13 and change so the fact they came in sign.strong is a good the other point is on the iphone level versus the think, oh,people because they introduced the iphone a hundred dollars you look at if the iphone 12, the basis may move it a little higher. this is where we're slightly different. 2021, nk through calendar year 2021, it will go up, not down. could be a delta factor through the year. big picture, where is apple these days in the context of competition? depending object calendar and the product that, e and this or okay, iphone comes in a little bit lower than expectations, but at times, here have been fundamental questions about the robustness and the business.y of the

it doesn't seem leak you hear very much about competition. it doesn't seem leak you marginsy much about these days. it doesn't seem like you hear very much about the web or anything like that. like people are really confident in the ability of the business curious if you see anything in the numbers that should cause people to question any of that? yes. that's a great, great uestion, and i think it points to the key difference between the android system and the apple. only a closed one, one maker of all phones, where the experience is very, very tightly controlled, right? so you drive technology to cadence. everything marches to the same sort of drum beat, of the the lunch iphone 12 or launch of the latest phone, whether it's updates, euro pods, the surrounding product. look at the ofer products, it's sort

cobbled together system. but there is also a freeing and by co-system that i mean, huawei, right? a large handset maker. arguably number one from a so shipment standpoint that model breaking as a result of the intellectual also the u.s. ban, et cetera, et cetera, sure, some of- t is going to go to samsung. people say if i'm going to i'm high end phone going to be confident of technology upgrades being very, very steady. want my operating system to simply work. i want my back-up to work i want my hardware and chips to seamlessly work. put that together that's when apple almost wins. when you start talking about individual products, when you talk about individual camera, apple

behind.ways lag hen you start putting sort of the pie together, that's when apple wins. >> always great to get your thoughts here particularly a day like today when the eadlines are coming fast and furious. senior analyst for semiconductors. joining us on the apple here.gs we're going to hear a little bit more coming up from the pple cfo as well as alphabet cfo. joe, side caroline and we'll be back in a moment. oe, we'll be back in a moment.

earnings.lot of we're surprised with what's been going on with google. been seeing an uptick in its advertising revenue. 6% from its best performance. t actually beat $38 ctations pulling in

billion. they see third quarter avenues pulling in $38. $3.4 billion. you've beating expectations, earnings per share, coming 16.4 well ahead of shows this expectations. joe? > joe: there you see it alphabet surging, apple, on the other hand, not doing as well. meanwhile, alphabet c.e.o. to emily chang of bloomberg technology who joins us. learn?what did you emily: hi there, joe. the big question is how are 12s doing so far? we actually got a little bit of color on that. there is only five days of data so far but he says verything we've seen looks very positive. they got the tailwind of 5-g, which is a

once in a decade technological transformation. very excited about the for the current quarter. that said as you've been from sing no forecast apple and these new iphone sales have not been included in the september quarter. number was a little light compared to estimates, probably because hose new cell phones got delayed due to covid and supply chain issues. they did see record revenue record revenue in ipads and september cord quarter overall. i asked about his outlook on though, given a continued pandemic, cases continuing to rise around he world and this is what he said to me. there is a lot of uncertainty in the short term. that's the fundamental to be we're not going providing specific guidance for revenue because of the covid uncertainty. we're following the news. cases in of europe, the number of cases in the u.s., at a high level. know, same time, we s we've seen over the last

nine months products and wellces are incredibly during these times. >> interesting there on apple. pivot now. anily. you spoke also with the cfo he say?hat did -- y: google's numbers she talked about search advertising and seeing broad-based improvement board. the when it came to ad spending and youtube, the rebound that they saw was even stronger. the last emember quarter was not so great. she said direct response ads continuing to be consistently strong, and they are seeing meaningful pickup in brand advertising. what's interesting, of course, google, in the hadow of this huge doj antitrust lawsuit. when we asked her about that she reiterated that the flawed.is deeply we do have this fit bit deal spending. google agreed to acquire it earlier in the year. she's expecting that to go forward. said we expect to

receive the necessary regulatory approvals to hopefully complete that before the end of the year. although the time frame beyond that that was an interesting tidbit. >> you're obviously going to a very busy woman. you can catch emily in about 15 minutes. bloomberg technology, she'll be all over these earnings and a whole lot more. get back to it because one of the stocks she'll also be covering is twitter. managed to pull it out of the bag, earnings looked good but when you how back and look at many people are actually on the service, joe, we know you have hundreds of but ands of followers the issue is, they only 5,000ed within million new users in the third quarter. eight million fewer than had been expected. so clearly there is a key whether they can keep you the momentum even as we have live sports and election what about that? >> for more on twitter, let's bring in bloomberg san francisco.

it's such a weird one the stock has been doing well and now it tanking. to be the eems center of the action in terms of news but apparently no one is using it. business is doing good but i've never got an good targeted ad on twitter that i can recall. the deal with them right now and what specifically stood out to you that's apparently really catching investors' eyes? >> the red flag is the active users. the hope is that they would in the million quarter and they added one million. s we know, the digital ad environment is improving. advertisers are willing to digital llars to platforms over tv but if your platform is not the one everyone is using then that's a concern, right? especially as carolina line said in the context that live sports is back, we've debates olitical and five days out from an election so that's a cause for concern. have been seeing to some analysts and they also flag this issue of direct response ads. that's an ad where it on twitter by asking you to do something, click to buy or something like that. a prioritye that

earlier in the year and they said in the earnings release that that's now delayed until next year. which is a concern because it was, you know, a potential growth driver for that e, something twitter had talked about. yet there is delay on it. some security concerns and integration into apple ios. analysts are saying it's that's driving the stock lower but twitter is a disappoint. compared to what's happened market it's a miss on the users that's a concern. look, joe has tweeted out like 150 times today and hisrently -- he's doing part, but i thought it was interesting, even though they missed on those users metrics, they still posted profitability that came in estimates.sts' even above analysts' estimates. i'm curious as to what's that profitability it's not ly if monetization of users? question.a good

draw a parallel with facebook, for example. facebook saw this influx of came time users that during the pandemic and left is what twitter can do bring more live action. on facebook you don't live in the moment. you do especially around sports that givers different kinds of ads and hat ties to the disappointment around direct response. that they haven't been able to implement that it's kind they are not fully able to leverage what they have got. n twitter you can follow a soccer match. you can engage with piers over a political debate and n the process you become exposed to a broader range of material advertising-wise and their inability to be whathat seems to the disappointment is. investors really want to see a road map of move kinds of ads, more unique types over ads going into next year. >> they will figure it out eventually. our thanks to bloomberg, breaking down twitter, social media earnings in san francisco. coming up, we take a breath and take stock of all tech earnings with

jeremy of greater investments. this is bloomberg. investments. this is bloomberg.

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let's take a look at some of these after hours movers rom some of these tech giants. extraordinary evening here. a little more red. almost 4%. amazon down nearly 1%. facebook hanging in there, obviously all of these companies have had an incredible year so to next, tock of what's what's now, joining us, investment portfolio manager jeremy brian. apple and res of facebook. these companies have had an incredible run. anything that you've seen today in earnings change the story either up down for these companies? honestly, no.

apple.lly with >> thank you for joining us. it.reciate [laughter] >> apple especially. this quarter, was important from the perspective of just making sure they were still on pace, which generally they are. here is nothing, you know, there was nothing dramatic. at the end of the day it's what's coming for them. we're in a super cycle or in that kind of mode. there are a lot of people had their phones for three plus years and are and that's 5-g what's going to be important for apple. service numbers were fine. bettery a little bit than expected. the iphone numbers, they didn't die for the quarter. that's why we're seeing it underperformed afterward. a lot of uncertainty from that perspective going forward. it will be a little bit of a show me quarter but next quarter will be much more of driver when we get better numbers on what the iphone 12 looks like. real quick ust on the breakdown here, in terms of regions, we saw

china.llback in there seemed to be some concern that that could be indicative of something broader. a guest on earlier who said this is just basically a lot of chinese eople waiting for the iphone 12 to come out, bigger and better phones. did you read anything into that drop? i read the same thing that your prior guest said. i think it's waiting. i'll give you a personal antidote. i was waiting for three years and i think we have a lot of people doing the very same thing. the last iteration of it update perspective -- wait e not 5-g another year. there is a little uncertainty to it we're not

anywhere. >> looking back, it looks good for the fourth quarter, but next year, what do you see? yeah, i mean, the numbers within the quarter for facebook, there wasn't a lot of surprise to be frank. i think it was pretty decent. here is a lot of uncertainty with regard to just the world in general, right? at the end of the day for them it's an advertising-related game and there are monthly and daily users still growing for them. both answers are yes. though i haven't seen perspective a of a shift in dynamics. everything is always sort of unknown for them from a quarter-to-quarter perspective. overall, they are trending and e right direction whether they have to spend more to do what they have to do, that's what we'll find out. the one thing i was looking at in the quarter, expenses growing up aggressively higher and the no and their guidance for it was pretty much in line. i was happy with it. least, probably the you know, again, it wasn't a

dramatically impactful trending is he still there. i still think it's positive from that perspective. we'll probably continue to as a result. we didn't see anything especially in the headline numbers that would suggest need to change course. >> valuation and beyond whereis there a point you have something in mind to say, okay, this is time to sell. what would that look like to you? >> yes, a great question. and your answer is about, we worry about valuation all the time. the answer to that to a certain extent is these are blowing out numbers. they continually beat and beat and they aren't beating by 10 cents. they are beating by multiples. at the end of the day it's where it areas just continues to exceed estimates so estimates continue to rise. herefore, supporting that valuation. that's where i would get concerned. meeting st now numbers and we're paying 35 to 40 times for these things for meeting their numbers coming in disappointing from that perspective. that's where valuation comes

in but at the end of the day you have to buy something else, unless you're going to pull your money out of the market you have to go somewhere else with that and there is just not many areas that are executing in the way these now.ompanies are right so that's what keeps me in there and keeps us involved gradeient. it's the fact that they are beating and exceeding what they have said they are going to do faster thanwing anyone else. >> jeremy bryant, it was great to have you run through all the key takeaways from these behemoths in the market. just like to thank the u.s. senate for having brought the c.e.o.s up yesterday. meaning we got quite so many earnings all in one day. >> i didn't make that before.ion [laughter] >> that's why it is. >> it was quite a day and it's really going to be a tomorrow. of course, the report earnings all over the map. t will be interesting to see how investors parcel out the individual stories and how that affects the broader

markets. >> it will be interesting. what am i keeping an eye on? q's.tch those the q-q-qs are well off. joe.ep tweeting, >> that's all. >> "bloomberg technology" is coming up next. this is bloomberg. g up next. this is bloomberg. ♪ you can go your own way

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>> this is "bloomberg technology," coming up next apple beat the sales. light.sales so far iphone 12 sales looking strong. no official holiday forecast. plus, youtube ads