taylor: let's look at how the class assets performed on the day. it was a relatively calm day which is why we go cross asset to show the calm. despite the late and buying we got within the big heavyweights. nasdaq up about .8%. the vix is very calm. 10 year yield is very calm. crude oil very calm, despite the volatility as of late. we change up the board, it is not calm when it comes to shares of alphabet after hours. 29.45. coming back up above some key support levels. "what'd you miss?" starts now.

caroline: it has been anything but calm when it comes to earnings. it has been the firehose amid the earnings situation with alphabet on deck among the latest tech giants to report. we are going to dig in specifically to this company. the latest comments coming from cepheid -- from the cfo and where it falls in investing landscape. crucially important we got the stock split. interesting as to whether it makes it interesting to retail. romaine: a lot of hay will be made of that. of course that slows down to the retail side. it matters. i was trying to double check to see if they have done one and i could not find one. i do not recall one here on their u.s. shares. something to keeping an eye on tomorrow. we have to talk about the numbers.

30% plus growth with regard to revenue and about 40% plus growth written regards to operating income. the ad business was a big driver. we also have to talk about the cloud business. 45% growth year-over-year. this company continues to post strong numbers. not necessarily a surprise. we know this company has been healthy, an 800 pound gorilla, but the numbers are eye-popping. you can see that reflected in the after our markets. taking a look at alphabet shares, up about 7%. ad space also moving higher. taylor: let's do all this and more with emily chang, speaking a few moments ago with the alphabet cfo ruth porat. talk to us about the stock split. emily: i heard mentioning earlier that yeah, can't people by fractional shares anyway? that's true, but ruth doubled down on the idea is that this will be to make shares more accessible.

they have heard from some investors that a split like this would help them achieve that kind of buying power, even though, yes, there are other avenues. of course the big focus is topline revenue, double-digit growth yet again. she talked about the vaccinations, they had a restorative plan for recovery in the economy, but they are pleased to see the strength of the overall economy reflected in their business. but she still said there is uncertainty had. they cannot make broad generalizations what they are seeing now, the flood of businesses back to digital advertising to catch those coming out of florentine in the second phase of the pandemic, that looks good for alphabet. romaine: we were joking the other day about doing google searches and everything you get is just ads. from an investor point i guess that is fantastic. i'm curious about youtube. we are seeing them firing on all cylinders in previous quarters. emily: in terms of the weakness

in youtube, she compared it to the fourth quarter of 2020. said they are lapping that quarter and it happened to be a very strong quarter because of the pandemic. still, they are seeing strong revenue there. if you look at revenues of youtube over the course of the year is not far off from what you saw from netflix. think about it as a massive business in itself, but certainly they are facing competition from tiktok, from netflix and other folks in the attention economy. so it is certainly want to watch. caroline: we have been seeing the ceo of youtube trying to push out youtube shorts and getting other celebrities involved. talk to us about regulation, it is always a big overhang when it comes to these companies. emily: google facing a variety of lawsuits in the united states, also facing regulatory scrutiny in europe. ruth porat doubled down on the idea they are very engaged with regulators, very supportive of responsible regulation. i asksed if it was impacting the

m&a strategy at all. we are seeing microsoft make these huge deals. is that slowing google and alphabet down at all? she maintained they have a lot of cash, they're always looking at to treat you can investments. whether it is fitbit, which they recently acquired, whether it is in cloud, whether it is a small acquisition. but you have to be looking at this wondering if there is hesitation on the part of alphabet because of all this regulatory scrutiny to do some of these big deals we are seeing microsoft do instead. taylor: round us out with flexibility on the corporate world. bringing us back to office versus working from home and trying to appease a very talented workforce. emily: google and alphabet have gotten out of the dating game. she said there is no line of sight on a date for employees to go back to the office. they can come back now on a voluntary basis. she said that is working out quite well. she feels the folks back in the office are having a good experience, but the health and

safety of their employees remains number one, so they are not requiring close to come back to the office anytime soon. romaine: emily chang, be sure to check out her program which comes on right after our program, where she will have a lot more going on with regards to alphabet earnings. we are going to continue on this conversation, so don't go anywhere. paul verna joining us right now, head of digital advertising and media at insider intelligence, which analyzes consumer spending habits and how marketers are most affected -- effective at reaching them. let's go back to the heady days of one google first became public, and everyone scratch their heads. they said what is this company? how do they can make money? well, we know how they make money off of it now. a lot of advertising. they seem to do it better than any company out there. paul: this is a company that over performed to such an extent in the first half of 2021 that we raised our overall digital asset forecast because they are

the blowout -- the bellwether for the whole industry. but to your point, there were a lot of questions early on about how they would monetize search activity. then when they bought youtube back in i think 2006, $1.6 billion seemed like an exorbitant amount of money to pay for this company, and look at them both now. caroline: talk to us about the strength of commitment in spending from businesses. are you getting any inclination that as inflation hits company after company, as labor costs go up, that they will in any way move away from digital spending, or do they know they have to be there? paul: i think digital ad spending is considered something marketers need to do regardless and we saw during the pandemic where a lot of businesses were under tremendous stress but they still felt the need to advertise and digital was the way they chose to do it. even if you look at some

advertiser boycotts youtube have faced, they have been very short-lived. so really when it comes down to it digital advertising keeps rising to the top as the medium that marketers feel they really need to keep relying on. taylor: would you talked about youtube we were all expecting it to be the standout business this quarter and yet we are still focused on its core business as well. how are you thinking about brand loyalty and the resilience of the customers who are watching youtube? paul: i think youtube -- and we will have to dig a little bit into the weakness in this quarter at least relative to expectations, but i think that for the first time maybe in their history they are facing a really big threat and it is coming from tiktok. i am thinking specifically about short viral videos about the creator ecosystem, music discovery, which is something that tiktok has rested away from youtube, and even how to videos,

which have been youtube's bread-and-butter. in a lot of ways i think tiktok is looming very large in the rearview mirror for youtube. romaine: talk to us of the bit about how advertising has changed. because when you look through alphabet's various properties, advertising properties, it still seems relatively traditional in nature, or at least have someone from my generation would consider additional. when you go onto tiktok or snap or other platforms, the way advertising is pushed is so much different. i'm wondering if, a, they understand that, and b, if maybe they are too far behind curve right now. paul: i think they understand it and they are trying to pivot to new ways of advertising, including now shop about -- shopable ads. i think they are also trying to get into the connected tv ecosystem. but the reality is search is still the biggest bucket of ad

spending and no one does it better than google. google will have more competition in search but they really pioneer and continue to own that line of business. it did very well for them in 2021. again, much better than we expected. i think it still has a lot of staying power. caroline: the previous quarter, youtube felt a modest impact from apple's ad restrictions. but as we look across all these behemoths, regulation comes to the forefront. you have these new competitive -- new competitors and you cannot buy them, will alphabet be able to innovate in an of itself organically? paul: it gets harder to innovate organically when you are huge and when you have competition coming from all corners. i think as far as regulation, that will be a looming threat for the foreseeable future. it has been, really.

so, how resilient alphabet has been and some of the other big tech firms have been to regulation, at least here in the u.s., shows that they really have a lot of lobbying power and i think they understand what they need to do to shield themselves from regulation. so, i don't see it as a major risk factor going forward, but it's definitely something that we are all keeping an eye on. and especially in europe more so than in the u.s. taylor: let's talk about those big tech firms. originally when we got the results with snap, meta, twitter, all gaining because it highlights the strength in the overall macroenvironment. how does this set a sufferer the other earnings when it is related to advertising? paul: well, like i said earlier, google and alphabet, it is a real bellwether for the whole industry. so in one sense it's an all boats rise scenario.

when you drill down a little deeper though, some of the changes in apple's privacy settings will have more of an impact on some of those other companies as they did in the last quarter. specifically facebook, twitter, snap to some extent. more so than google, because google has its own operating system separate from apple. so, just because one company does well does not mean everyone else will, but it is certainly a good indicator for the whole digital marketing and digital advertising ecosystem. romaine: do you think that alphabet needs to broaden out? we look at amazon, which has certainly broadened its wings, moving from being a pure retailer to now basically being everywhere and everything when it comes to the internet. microsoft to a certain extent. have we seen that at all with google? obviously we know the cloud business they are trying to build out, but they still seem to be a little behind. paul: you definitely see it in a

cloud business and the fact it performed well means that google, or alphabet is a real player in that space. and there are other areas where they have their moonshot technology, self-driving cars, and things that are a little further out on the horizon. i think this is a smart company that understands where it's strength is what understands it will have to innovate and have to expand, and how successfully it does that is definitely something we will be watching. caroline: always great to get your immediate response to these sorts of earnings. thank you. coming up, more on the tech space and what to watch in the week ahead. the conversation with real hit called carney. we start with alphabet but we have meta tomorrow. this is bloomberg. ♪ his is bloomberg. ♪

romaine: today's triple take is on tech earnings. a big week. amd and alphabet, those numbers as crossing the wire. and we have a lot of names ahead. meta, amazon, snap. taylor, is this a sector? taylor: the wild trading swings we have now, of course today was february, but as of yesterday we had 20 trading days in january, and about 14 of those days had 1% moves in either direction when it comes to the nasdaq. now of course we all know stocks there. caroline, this highlighted i think the volatility as we were waiting to hear from the companies, from the fundamentals, to really reassure

the market and may be us down a little. caroline: and the technicals as well. 20 for 1 today. is amazon the next? romaine: so you get 20 shares for one, or one for 20? taylor: divide the number by 20, romaine. romaine: are they worth 20 times more? taylor: no, they are worth the same. romaine: i got confused. i failed to the cfa. how does that work. caroline: he is still going for the cfa. rohit kulkarni, we will see how cfa'd he is. talk us through what alphabet, the read is into the likes of meta and snap. it feels as though companies are willing to commit to advertising right now. rohit: absolutely. there's going to be a collective big sigh of relief here. we have seen a decoupling in what stock market prices have

been, and all these highflying growth companies in the last 12 weeks, versus what google is telling us during q4. take a deep breath. everything is well in online advertising. everything is very well in cloud computing. and the secular shift that happens from tv to online video in youtube is also happening. so what does that tell us about amazon, meta, snap, pinterest? i think there is a general trend continuing from the previous quarters to q4 into q1. there are some yellow flags here and there but what the stock prices are telling us is not what google is telling us. so there should be a bias as the week progresses. and buyers on all the other names. romaine: we know that for some investors, they will not necessarily want to be spread out in all the names. everyone wants to wait -- to find a way to swing and hit that

homerun. do look to alphabet, meta, or maybe a more diversified company like amazon a better play? rohit: directly one-to-one, i think meta is the one i would flag. meta is a very confusing name, by the way. amazon is so diversified. e-commerce has so many different moving parts. so i would feel more safe to call out meta as the one to back if you are just reading what google is telling us. taylor: talk to us about the diversification. romaine posited a great question earlier, i think more than 90% of the business and revenue of google coming from advertising. as an analyst thinking about the fundamentals, the strengths, the headwinds for these companies, do you perhaps maybe recommend those who have that more diversified business? because maybe it means they are

less of a regulatory threat. rohit: totally agree. each of these companies has a lot going in their favor. amazon, meta, and google. google is showing diversification is a very slow process. they have youtube and google cloud, but they are still very small compared to the other businesses. 75% of profits are coming from search right now. with that in mind, i think amazon is the only other company that has shown that they can grow the profit and revenue pool by adding multiple layer's of growth at various different stages of the company. so you have retail, you have third-party retail, you have cloud, and now advertising. so there are various different layers of growth amazon has had and structurally every new layer for amazon is going to be more profitable. so in the longer term that will be a very positive thing. caroline: but in many ways they have been adding these layers in

organically as well as organically. there have been purchases made by different businesses. will they be able in their future, whether it be meta, amazon, alphabet, all of them have almost become too large for the regulators. rohit: i agree. there is a lot of regulatory capital to give. and what will happen probably is through organic growth through a nonprogressive hiring. a very limited amount of major m&a over the next couple years. until we see we are on the others of this regulatory realm where the service area each of these three areas provide is increasing by way of how the doj is looking at them. i think facebook probably jumped over a line nine -- over a land mine a couple years ago maybe

alphabet and amazon have some kind of regulatory things to get and we should expect that. romaine: that is the u.s. side. we have also seen pretty aggressive tactics by the european union to if not breakup these companies, to at lease put them in check. do you worry at all that with the u.s. may not be able to do that other countries, unionized countries may be able to do? rohit: that has been -- the eu has been at the forefront of doing this. we will probably see more of that as we go forward. it's anybody's guess, but from a market share standpoint, i think google is the one that controls a significant amount of market share on mobile devices, on desktop search. so you have two massive industries and google has asymmetric market shares. so, google has a larger target on their backs, in the u.s. or

outside of the u.s. taylor: really appreciate your perspective and wide-ranging thoughts. rohit kulkarni, managing director with mkm partners. really appreciate it. coming up, our final thoughts, final take on this tuesday. we are going to be taking a look at some late trading and digesting all of the big news of alphabet google pushing forward to big tech in the weeks to come. this is bloomberg. ♪ this is bloomberg. ♪

caroline: time for final thoughts. taylor: are you awake? romaine: it was a busy day. we had so many earnings. i don't know what happened to amd. here's the thing, on the whole most of the earnings were pretty good.

you wonder what the carryover will be tomorrow. taylor: nasdaq futures, it's certainly extending gains. given some of the big results. caroline: february, not a bad start. calmness. willett holdover tomorrow? big text. ♪

>> from the heart of where innovation, money, and power collide. in silicon valley and beyond, this is bloomberg technology, with emily chang. ♪ emily: i'm emily chang in san francisco, this is "bloomberg technology." coming up, alphabet announces a 20-1 stock split and shares soar. google shares topping estimates. staying strong. we break dow