with the great recap, ed ludlow.to go out this to seattle and talk more about these numbers. k q4nt to start with the wea forecast on sales. this reflect the big retail get ittors need to together, show momentum, go into amazon's turf, and i'm thinking about walmart and target. >> it could be that. the big thing to think about is amazon has pushed this next day delivery pledge. the reason is if we can deliver in one day, a lot of people are thinking about ordering, but they don't. what we are seeing with this forecast is whatever additional growth investors were expecting is not coming, at least not in the holiday quarter. that isf the things concerning is you have this slowdown in aws come still but we saw these slowdown numbers come from microsoft and other cloud companies. what is the future for aws? is ason't know if that big of an alarm as the overall slowdown. business and still growing in the 30% range. the big take away is an investing in next day delivery is big. they had a missed next quarter because of spe

that was as lolo -- ed lolo -- ed ludlow. we will hear from richard branson next.his is bloomberg. ♪ is bloomberg technology. let's focus back on the thing. alphabet shares fell in late trading after reporting third-quarter earnings. result largely impacted by the heavy investment in googled's cloud computing business which is trying to catch up with rivals like amazon and microsoft. later this week, we get numbers from apple and facebook. they report quarterly earnings on wednesday. joining me to discuss it all is ed ludlow. walk me throughout of that and google. ed: cloud is the future and they are making that clear. said weq2, sundar expect this to be an $8 billion annual business that can compete with amazon's aws and microsoft. $8 billion is about a quarter of what a w's -- eight of u.s. makes for amazon but there is still growth potential. they are moving away from this core advertising business. today, that has been an incredible engine for growth. 20% growth on revenue. taylor: a chart we are showing to the audience really highlighting the strengths that is

let's get a breakdown from san francisco with ed ludlow. at are the key numbers that we need here? head: focusing on ed: focusing on revenues to start, it is beaten again in both parts of the business. the core advertising business and the other segment, including the business. but as you pointed out, it is amiss across the board for alphabet. 23% below the estimate with operating income in at 9.1 million, well below the estimate for 4.5 billion. focusing on that number, the google ad business, the core business is an engine and it has done for a long time. it continues to do so. think about the first quarter when there was a miss on revenue that brought concern over the health of the advertising business looking elsewhere. where the new age streamers might be taking it and where there was concern about youtube. and then there was that concern being put to rest. is that business continuing to make some progress? there's also the other one, cloud and hardware. fantastic reporting, there. now for more insight into how the tech sector is weighi