gaming the game is this week's cover stop and josh lipton has our investigation. ♪ >> eliminate the terrorists>> reporter: take a close look this is the exact same video game, but in the version on the right, the player has special software or cheats that makes it easier to win. >> the bot behind him, we'll see him in a second. >> reporter: in this modified game, you can see the enemy through walls. a distinct advantage bill denner copa is an 18-year-old recent high school graduate but don't let his age fool you he's an expert in hacking video games to create cheats, something he knows could ruin the game >> i don't think i'm a good guy or necessarily a bad guy but i think a lot of what i do can be interpreted as being the bad guy. >> reporter: to find cheats, hackers find vulnerabilities in the game's code. it's an advantage people are willing to pay for >> for the higher-end cheats i've made, i've sold them from hundreds of dollars of month usually $100 >> reporter: e-gaming insiders and cybersecurity experts tell us that cheats are a huge threat to the growing video game industry >> why wou

josh lipton will give us a tour later this hour.s coming up >> reporter: carl, we're here at anduril. it was a clear mission here. palmer wanted to have a company that created, designed, built defense technology in-house for the u.s. government. got the chance to check out some of the technology. take a look. welcome to the testing site of anduril industries custom built drones that identify and destroy other drones they're finding customers with the u.s. military deploying drones overseas. it is not just drones. their security towers are stationed on the u.s., mexico border this is their mission, building cutting edge defense technology for the u.s. government. what's next? the company tells cnbc it is exploring software for state of the art goggles, head sets, employ ar technology that gives soldiers new advantages on the battlefield. >> reporter: they already have support of some of the most well known venture investors. founders fund, and contracts with department of defense and homeland security, and u.s. allies like the uk roy

josh lipton has more on this story. ate-owned wireless carriers. so that's china mobile, china telecom, china unicom, now making 5g mobile phone services available to their customers so that should mean if early adopters in china have 5g enabled handsets, they'll be able to use that have service and that should mean faster access to everything from videos to games investors focused on 5g, as well and some names that capitalize on threatened would include qualcomm, certainly. xilinx, marvell, and analog devices. analysts say there will be 120 million 5g subscribers in china by the end of 2020 back to you. >> josh, thank you very much got to leave it there. >>> still ahead, google, are they going to take on apple? google acquiring fitbit earlier today, but what does that mean for the wearable fitness tracking space, generally? >>> and don't miss wilfred's exclusive interview with jpmorgan ceo jamie dimon tuesday at 10:30 a.m. and three o'clo3: eastern right here on the "closing bell. stick with us. we've got more "closing

melissa, back to you. >> josh lipton in san francisco. ybe the most important thing about that report is what josh said at the first opening of the hit, that issis up 50% this year. we've had a huge run in a lot of suppliers going into skyworks. it's like the tail end of the suppliers report zbroog josh mentioned korvo a keter when they reported gopd up 15% and skyworks up in sympathy 15%. to a new 52-week high that took the excitement that quarter they just reported wouldn't have gapped up. now it's back in the mid-90s, the breakout level and probably a decent level if you bleach in the 5g upgrade story and looking at a stock trading at market multiple where expectations come down dramatically and then you look out a year and you say okay maybe the huawei headwinds will be gone. sag samsung a commerce and apple a third of revenues this is a place i want to place my chips on the board. >> hang your hat. >> oh there was a chip thing. >> i see what you said chips, like pull the chips. >> semi conductor. >> this boomer think i don't know if i

jean was listening in on the earnings call but we get the latest from josh lipton live for us in sanrancisco. >> melissa, cnbc actually spoke with uber's khosrowshahi and asked him when does uber break even here was his response. >> we increased our 2019, the midpoint of our guidance and as far as ebitda goes by $250 million, and i'll tell you, while we haven't finalized our planning and it's going to take a lot of hard work from a lot of folks, we are actually targeting 2021 for adjusted ebitda profitability full year. >> reporter: i also checked in with oppenheimer's to get his take on the quarter. he says the ride business was quite healthy, revenue was up 23%. he says there will be questions around eats, specifically with revenue largely in line on lower eats gross bookings. profitability metrics, at least his estimates he said were better than expected he was actually modeling 2022, so the goal there of 2021 ahead of schedule for him. on the call which just started khosrowshahi started off with regulations, noting that they'll continue to focus on productive engagement the regul

for nitly business report, i'm josh lipton in san francisco. >>> it's time to look at some of today'srades and downgrades. pinterest upgraded to buy from neutral at d.a. davidson. following the disappointingin ts quterly resnd wea guidance. but the analyst cites nterest's year over year sales growth as an encouraging spine the price targeheis $28. but stock was down 17% to >>> and booking holdings formallily known as price line was downgraded to neutral from bias bank of america mailer lirj, the analyst citing macroconcerns from travel industry. the price target is $2160. the stock fell a fraction to 2032.02. till ahead, on this jobs day, the challenges that some companies are facinhen it comes to finding workers to protect against hacks. ♪ ♪ >>> it was a rough week for boeing and it's not ening any better process. someen flight ance questioning the safety of the troubled 737 max. following testimony t we can from boeinggceo, the flight attendantnt union repreg american airlines is questioning whether the f.a. chl a has the resources necessary for oversight moving forward. american's

. >> eamon, thank you for that josh lipton has a closer look at apple's supply chain where most of the products are made and assembled. josh >> apple will assemble the next generation of its mac pro there in austin. the mac pro is about 1% of the company's revenue over the next 12 months. it's not a big mover for the company but monster says it is a strategic win, he tells me, in that it creates goodwill with this white house, given uncertainty around trade tensions and tariffs over the next quarters ahead. apple designs and engineers all its products here in the u.s. in cities like cupertino and there in austin. it's not surprising apple is building this new $1 billion campus in austin most of its components are assembled in china, putting together parts of iphones and ipads. it's hard to see that basic assembly line work coming back here to the u.s. the value in certain advanced manufacturing jobs apple has invested in companies like corn iing. back to you. >> josh lipton, thank you. >> i think it's a village, like 1% of apple's revenue we're going to have manufactured in the u.s., j

josh lipton as more. >> reporter: investors pay close attention to cisco because the seen as an importantarometer of th spending, i checked in with needham's alex anderson for hissisic at a he says it's about guidance below expectations. perhaps a shock to a lot ofin stor that is might hav thought this was a more stable growth business. hernandez says itooks to be weakness from cloud commerce and service providers, meaning carriers like verizon and at&t. for "nightly business report" joshipton, san francisco >>> now jerome powell's testimony on capitol hill was not the only event wall street was watching in washington. there wasf course the first public hearing of the impeachment inquiry into president trump. ylan mui spent the day onov capitol hilling that story for us. >> the impeachment investigati t into presidemp entered a new phase today as democrats brought their case directly to the public. >> house intelligenc committee chairman adam schiff focused on three core concerns, whether trump is exploiting the power of his office, coercing foreign ucting and obs congress's investigation

josh lipton joins us now with more details from san francisco. is bullish on the apple card he have's not detailing initial signup numbers, but on his company's last earnings call, remember, he called it the most successful launch of a credit card in this country ever, but now that card is attracting up wanted attention with a new york regulator investigating goldman sachs for possible gender discrimination when determination credit card limits, that's after a tech entrepreneur named david hanson condemned the card on twitter for providing him with a credit limit that's 20 times higher than his wife, even though he says the couple files joint tax returns and that his wife has had a higher credit score. he did not disclose their respective income information. his tweet though gained traction online, even receiving a comment from apple co-founder steve wozniak saying apple gave him ten times the credit limit that he got he said we look at credit worthiness, including personal credit scores and how much personal debt you have and how that debt has b

josh lipton joins me here at one market, rather i join him, this is your house, with more. >> the airbnbing to twitter over the weekend, detailing steps his company is now going to take after a deadly shooting in california he is saying his company will ban party houses, and airbnb will redouble efforts for unauthorized parties reportedly that's what happened. the owner of the property was told the house was being rented for a small family reunion, instead it was a party with 100 people showing up, ending in violence so they unveiled a new plan, saying there's a dedicated party house rapid response team. airbnb will expand manual screening of high risk reservations, in other words, increase the number of people viewing reservations and will take actions against users that violate the policies, including removal. he also directed the vp margaret richardson to initiate a ten day sprint to review, accelerate new safety initiatives all of this comes as airbnb prepares for ipo next year, sure to be one of the most high profile public debuts in 2020. last valued $31 billion. globally, remember

we're going to start, though, with apple reportedly seeing soaring demand for its air pods and josh liptonjosh >> reporter: so morgan, no surprise here, air pods seem to blanket san francisco and now a new report says shipments of apple's wireless earphones will double to 60 million units in 2019, driven by demand for those new pricier air prods pro model. apple declining comment to cnbc, but investors care, because even as iphone sales are falling, the wearables, home, and accessory segment, which includes air pods, surged 54% in the last reported quarter to a better-than-expected $6.5 billion. and just this week, remember, microsoft saying that its air pods' competitor called surface air buds are delayed until the spring guys, back to you. >> josh lipton, thank you. mike, it's not helping the stock today. we've seen a little bit of a breather here. >> not today the stock has been straight up for a while now. and i think this falls in the category of, well, that's nice and over time, it can build into something that maybe does make its way more meaningfully into the valuation, but it's st

we also wanting to bring in josh lipton on this one josh, the optics here are a bit strange because the pro for those who aren't familiar is a $6,000 computer. the manufacturing process in austin does not require a lot of people it's highly automated. even that apple is saying they were going to have to move to china under these tariffs. so is this really providing the sort of backdrop the president wants to get his message across? >> yeah. so a couple points i think you're dead on, jon, the mac pro is not going to be some type of high volume product, a $6,000 product it carries higher margins. you could argue at a time when other products are seeing slowing sales, every product maybe counts a bit more. but i think it is a chance for apple also in addition to sort of emphasize some broader themes it can emphasize, listen, we're an american company, american brand, a big american employer remember, tim cook does employ roughly 137,000 people he can point to austin where he has 7,000 employees now. apple says that's up 50% over the next five years. i thought it's interesting the company d

here with us, josh lipton. >> nice to be here >> seema is here you're often here. u've come from about 40 feet and robert, you came from upstairs let's talk first about roku. josh, shares sliding despite post iing a revenue beat and double digit growth across multiple metrics 68% jump in user streaming hours. 79% spike in ad revenue. also boosted full year revenue guidance but a 22 cent per share loss weighing all positive even though the loss was as i understand it, r narrower than what has been forecast >> it was interesting what the ceo told us on "squawk alley" today. he was talking about listen, we are partners with some of the streaming service. we're ekt canning the user to those service ises whether it's disney or apple. so kind of what he was saying is that they win, we win. tha an interest thing for investors think about. do you think disney's new service is a hit do you think apple tv plus zpoing to be a hit those are some situations you think about because the case on the street in part, it's a big part they're going to be a winner >> subscriber growth,

we start with josh lipton in san francisco on palo alto josh. >> so the ceo is on the call and saying that his company is now building products with a.i. and ml so recognizing that this is an evolving technology customers see the benefits and are betting on the company how is the company progressing against its long-term goals? aurora is saying they're doing better on some metrics, guidance when it comes to billings. they put out this 800 million plus bogey so they actually increased next gen security billings by 10 million just going back and forth with this analyst who covers the name and the sector who knows that they did fall short on product so legacy on prem, firewall, hardware and software. the competition notably from the cloud security players have been showing more upside he says. for eps margins and cash floew,s aurora says we're looking to invest and stick with the company's financial targets. analysts are also asking about tariffs and the impact there the cfo saying they do source some components from china we did increase pricing on firewalls to offset tariff impact back

to debut tomorrow it's nearly doubled the number of games available to play at launch gosh lipt josh liptonre from san francisco. >> it's a day gamers have circled on their calendars the launch of the new video game streaming service, it's called stadia it officially launches tomorrow at noon eastern it's easy to understand why gamers could be excited by such technology it means they don't have to download or buy high quality come expresswplex games from a instead they can stream those games on a variety of devices. on launch day there will be 22 games available with 18 more titles on the way. in order to play, fans had to buy a $129 hardware bundle fans can play games on the chrome browser on a computer and on more pixel phones to play on the tv, they need the stadia controller and the chrome cast streaming device. tech giants are finding different ways to capitalize on the video game industry. this is a big opportunity. the industry will generate revenues of 1$174 billion this year according to idc. google will have competition microsoft it already testing its own video game streaming tec

we'll focus in on the big stories that we are watching here today josh lipton has details of a brewing controversy including apple's new goldman sachs credit card rahel solomon is following alibaba's record-setting singles day. and the biggest risks he sees to the market in 2020 we'll kick things off with josh on goldman and apple hi, josh >> reporter: so courtney, a new york regulator is opening an investigation into goldman sachs's credit card practices. that after a tweet from a tech entrepreneur, alleging gender discrimination in the new apple card's algorithms. the tweeteven attracted attention from apple cofounder steve wozniak, who says apple gave him the ten times the credit limit that his wife got goldman denies the allegation saying that it looks at income and creditworthiness, that it has not and will not make decisions based on factors like gender >> josh, giving your coverage of apple, what does this mean when apple hasn't commented specifically on the story, whereas goldman sachs has? we're going to address all of the points of goldman sachs coming up later? i wanted to a

. ♪ >>> google set to launch its cloud base video gaming system tomorrow josh lipton has that story forthe switch tomorrow at noon eastern its new streaming game service the idea here that you're going to pay google $10 a month and you can stream these high quality graphics to your pc, tv and most pixel phones. no need nor a pricey game console. should you sign up our own tech reviewer says not right now. it's fun and works well but lacks a big libor. better wait to see what games launch next year remember there's competition microsoft is already testing its own gaming streaming technology too. >> josh, how much in gaming today does it matter what console you're playing own versus just the bottom line of the game >> reporter: well, i think the problem is here, wolf, that the problem to gamers and the reason they are excited is the potential of such technology is that you would be able to stream these complex graphics rich aaa games any time, anywhere now that's more limit high desert here with google. you will be able to work in a browser, play it on tv with a streaming device and most

. >> josh, thank you josh lipton in san francisco >>> the big question here is this headline going toy, regulatory scrutiny for google it's interesting the point that josh made though that it's in compliance with hipaa. >> i understand. >> no, but that's an important distinction to make. >> very important but off camera we were talking, one thing to have your doctor's office have your medical, it's entire by something different to have google and god only knows what they're going to do with it and they can say we're in compliance with hipaa it's not a good look in my opinion. i'm surprised the stock wasn't down more given the run that that stock has had valuations compelling, it's a great company, i get all these things but that, to me, is a pretty startling announcement. it's pretty startling headline and the stock didn't trade in kind in my opinion i thought it should have been down a lot more than it was. >> i think it is a problem for google in this day skpaj where google and facebook are under the spotlight, everybody saying look what you're doing with our data i do think it's ce

we'll get quarterly results from uber josh lipton has a preview for us >> here's what to expect froms of 81 cents per share on revenue. another key metric gross bookings $16.7 billion for the quarter. some on the street argue that credibility in this story is waning with the stock down hard from its ipo price off about 30%. specifically they note that rival lyft has now offered profitability targets. but uber has not offered a similar timeline still most analysts are bullish on this one. nearly 70% rate uber a buy back to you. >> all right, josh thank you. and don't miss our exclusive interview with the ceo right after those numbers hit. keith, it seems like it was -- what a year it's been when you think about it the year started with all of these tech unicorns, growth at all costs. then it shifted to path to profitability. what do you think about names like uber that are expected to have these big losses? >> when investors get nervous where the returns are going to go, they're going to look for companies making money i think that's where you've seen the stock prices for these high f

stocks trading lower josh lipton knows why. >> eps of 84 cents street was at 81 cents, revenue at 13.16the quarter. looking for 13.09. for q2, cisco guide for eps, 75 to 77 cents, the expectation was 79 cents for revenue to be down between 3 and 5%, the expectation was revenue would be up about .2.6% core networking, 7.5 billion that's in line with expectations applications, 1.5 billion. and security smaller but faster growing at 815 million kvens ki conference kicks off at 4:30 eastern. >> we're discussing how this will set up earlier. had a bad report. >> yes. >> it has not really been able to regain a lot of momentum there. traded after hours is interesting right into this $46, little below that level. that's the bottom end of that range. i think there will be a lot of eyes on that tomorrow. >> this is another one where weakness in china and the trade issues have affected paul, how much turn around would you expect to see if president trump could come out and report some good news on this front >> i think it would be helpful cisco doesn't get a ton of revenues but they've seen an eno

let's get over to josh lipton. look >> guys, box is reporting earnings let me bring those to you guys a loss of one cent that is in line with expectations revenue up 14% to 177.2 million. box is saying look between 3 and 4% that both modestly positive versus consensus i did have a chance to catch up with a ceo aaron levie on the quarter. a strong quarter, he did note a couple headwinds though. still trying to improve performance in certain areas, certain international regions. look at box's stock. we are higher here in the after-hours. we had a strong move over the past few months heading into this, but was down heading into this print about 2% year-to-date you talk to analysts who cover this name, and there has been this concern about revenue trend, not growing as fast as it you'd to i asked him about that he said, listen, we are focused on driving growth as much as possible focused on reaccelerating, but we know there's a bigger market out there. but we want to drive commensurate profitability, so we were targeti