tv Closing Bell CNBC April 29, 2021 3:00pm-5:00pm EDT
today's festivities you can watch a replay at cnbc.com/pro we're going to slice and dice this year's draft. meantime let's welcome in sara and wilf for "the closing bell." >> we just want to join the fun. it looks so good it was awesome to watch. the music is awesome guys, the winner for the best team name goes to stephanie link the strongest link wilfred has a really good name for his team. >> if i was ever asked to compete, frosty the stock man. >> mine is eyes on stock. >> great show. i thought mr. onderful's picks stood out the most to me, and tim seymour is either going to win by a mile or lose by a
country mile with bitcoin or tilray. >> tilray is merging they have a shareholder vote tomorrow that shouldn't be allowed or something. anyway, we're going to grill stephanie. she's coming up on the market zone on her two picks. kelly and tyler, thank you. >> thank you, guys. >> the stock draft is over but the action is just getting started as we get ready for the final hour of trade and a big post market session. stocks are mostly in the green at this hour with the s&p 500 and nasdaq setting intraday record highs it's the busiest day of earnings season and we're watching moves in a number of mega caps that have already reported. facebook and apple still in focus after yesterday's numbers. facebook is surging. the recovery coming into sharper focus on the back of a strong gdp, growing 6.4% in the first quarter. jobless claims at their lowest level since march of last year and it is the 100th day of president biden's tenure in office and wall street is weighing the nearly $4 trillion
of spending proposals that came last night in the address to congress 59 minutes left to go. we've got a lot to talk about today. >> roll er coaster session amazon will headline a packed afternoon of earnings which includes twitter, gilead and more we'll bring you all of those as they hit plus we'll speak with the ceos of hersheys and citrix and dive into the cushion of paid family leave with reddit co-founder alexis ohanian, an outspoken supporter of paid leave initiatives. mike san anttoli is here to talk mike, broader markets looking very strong now. >> yeah, found some traction after spinning its wheels early on i would characterize this as a potential negative avoided if we
end up above 4200 on the s&p 500 for the first time after the blowout apple earnings, great facebook earnings. the white house opening its checkbook, 6.4% gdp. here we are, no net damage done, mostly sideways but tilting higher over the last couple of weeks. focused really on what's going on back in july here that was also a time just like now where we've been hugging the upper end of this rally line a little bit of a pull back and that was right there where we had amazing faang earnings and everybody said we have to buy the heck out of the nasdaq that created that acceleration and a little mini blowoff in the nasdaq and a 10% correction in the rest of the market not seeing that now. here's the nasdaq. bit of a contrast. that's where that september 2nd peak looks like on the nasdaq. still fighting this battle of getting to a new high. i think it's 14,135 or so is the closing from february. some of the hypergrowth stuff
are tesla, cloud stocks. still down today, so it's very much uneven under the surface. here is a split look at retail right up here is the xrt, the equal-weighted version of the retail sector which of course has just soared right here the s&p retail etf -- rather the market cap weighted version of it has really done nothing much and that's because of amazon amazon is about 20% or so of that etf and it really has gone sideways it's all-time high is that september 2nd, above 35. we'll see if can nudge above today. >> i mentioned the gdp number, 6.4% growth. if you look beneath the headline, consumer spending was 10.7%. where is the consensus on how long this boom is going to last, these blowout numbers, whether we get more stimulus or not, and what's the market pricing in at
this point >> everyone is confident that the second quarter will be similarly strong if not better, because then you're really getting the full effect of that reopening along with easy comparisons to last year after that, i think people are saying still above trend growth going into next year, but above trend really means better than 2% or 3% real growth i think that's where the consensus is i'm not sure all assets of priced for that. i'm not sure the treasury market reckons with that on the 10-year yield. i do think that's where we are but after a 90% gain in the s&p from last year's low people are just very, i think, on alert for this notion that maybe we're going to have this peak kind of good as it gets moment at least in the short term and then have a little bit of a settling out period in terms of the market. apple reporting blowout earnings after the bell last night. the stock off its highs, opened at 137 or so, fell below 133 so it was red on the session, now
back above 134, about half a percent on the stay. steve covac joins us now what is the key takeaway almost 24 hours after the numbers came out? it was such a strong print and i guess slightly underwhelming response >> the question is are we going to see an iphone supercycle? it's an everything supercycle. when you look at the mac and ipad business, mac up 70%, ipad up almost 79%. these are the hot gadgets everybody is buying and there's reason to believe momentum will continue through the rest of the year that's the number that just shocked me bonkers numbers from apple. >> so the question is whether it does last for the rest of the year one of the best-known analysts was on earlier on apple and he was saying a lot has to do with
the shift and pandemic spending. the fact that we're not spending as much on travel and that is likely to come of another discretionary reopening plays and apple has been a huge beneficiary on the phones, on the tablets, and computers. just where we're spending. do you not buy that argument >> tim cook definitely doesn't buy that argument. what he told us yesterday is these trends are going to continue he believes that this work from home or hybrid work situation that we're going to go into afterwards will still need these gadgets to move forward with in addition to that, they're not done updating the macs they'll get another refresh this fall and brand new laptops with that m-1 chip that they have really been promoting. in fact that's part of the reason, it's not just the pandemic story, it's m-1 chip embarrassing intel with its new performance and now the macs and
ipad pushing them forward. >> it's flat on the week which when you consider the quality of their earnings beat is quite amazing. microsoft is down about 3% or so on the week, again after great numbers. the full report on apple and some of the other tech companies is on cnbc.com. up next, unwrapping a sweet quarter. hershey hitting an all-time high on the back of strong q1 results. we'll speak with michelle buck about those results and what she's seeing from the consumer inflation concerns and much more you're watching "closing bell" on cnbc.
s&p up three-quarters of 1%. hershey shares hitting an all-time high today after beating wall street expectations and raising guidance for the year the company, which includes brands like reese's and jolly rancher expects sales to grow 4% to 6%, which is up from the earlier range of 2% to 4%. welcome back, michelle, good to see you.
>> thank you good to see you as well. >> hershey's did okay when people were staying at home, buying snacks and eating sweets from their home. now the increased mobility and the reopening is actually benefitting the company. talk about how that works and what you're seeing. >> absolutely. so we are thrilled with our double digit sales and earnings growth in q1 we came into the year with a very balanced growth strategy and then we started to see some tailwinds from covid-related consumer mobility being higher than anticipated as the vaccine dissemination really spread and also some positive impacts from the stimulus impact. but really we're seeing this unique period where there is both a continuance of that at home consumer behavior as well as increasing away from home behavior so consumers are participating in seasons they are telling us they're doing more movie nights at home, making more s'mores at home. at the same time we're seeing
growth in our food service and retail businesses which are away from home. >> inflation is the other hot topic on all of these food company earnings and calls you probably are dealing with it better because cocoa prices haven't risen as much as some of the other commodities but how do you look at what you're going to do with prices this year and how much pricing power do you think you have >> certainly as we look at inflation there are two areas that came in higher for us than expected one was around packaging and a lot of that was due to some of the storms in texas that impacted resin pricing and resin availability the other was freight. given our very strong sales in q1, we had to go on the spot market to get incremental freight for that volume. so we saw this incremental costs there versus what we had planned for. relative to pricing, we have announced two pricing increases this year. on our seasons business and nonchocolate and grocery businesses we feel pretty good that over
the years we have been able to demonstrate pretty strong pricing power. we're big believers in investing in our brands, having strong value propositions for the consumer and having good analytics to understand how to execute pricing, whether it's list price or revenue management price pack architecture in a way that doesn't disrupt our business the category has been able to weather pricing pretty well over the years. >> michelle, how are you expecting the type of products that consumers want to change as reopening takes hold, and how are you kind of monitoring those changing tastes of your cust customers? >> yeah, so we have stayed in daily touch with consumers because the environment, as you know, has been been so volatile to stay on home of what they're interested in. right now we're seeing that it is that divergence of comfort foods where people are still clinging to a lot of traditions and rituals and for us seasonal products are doing incredibly well we had one of the strongest
easters in our history at the same time, people are consuming products that are take home, you know, at-home consumption like twizzlers for movies, et cetera, and then also participating in quick serve restaurants, et cetera so we're seeing them indulge we've seen a little bit less momentum behind better for you products or some better for you products during covid, but i think that all of that is moderating and starting to balance out. consumers have different need stakes throughout the day and different products to fulfill against those. >> last year i remember gum and mints were a problem in the portfolio because we're all wearing masks and distancing is that turning around >> yeah, so there has been some moderation in gum and mints certainly from the very large double-digit declines that we saw last year given the functional nature of the gum and mint segment so we certainly have seen a
lessening of those negative trends as we've seen things balance out in the marketplace this year. >> yeah, gum was secularly challenged to begin with even before the pandemic. michelle, wanted to ask about the competition. mars, which is a private company, has been aggressively expanding and pushing into the u.s. how do you look at the competitive landscape for the year and what gives you confidence you'll continue to see these kind of growth rates with that? >> you know, we really -- we focus broadly on our role within the total snacking domain. fortunately snacking is a growing consumer behavior. we really focus on the strengths and what we do best. we have some very strong fundamentals relative to the structure of our p & l, strong gross margins, which enable us to invest in our brands. we have one of the highest consumer advertising investment levels and we continue to
believe and do advertise to our brands and have increased our capabilities around targeted media. we have best in class category management that has enabled us to gain over a thousand football fields of new retail space in q1 alone. so we continue to focus on those things that have been strengths of ours. our supply chain has served us well we've had some of the strongest customer service levels in our sector during the pandemic we believe as long as we focus on what we do well and focus on growing our categories with our retailers that that is a key to success. >> are we going to have a real halloween this year, in-person trick-or-treating? >> i believe we will based on how vaccines have rolled out i'm hopeful that that will happen for those under the age of 16. but it was a strong halloween last year despite the environment. the early signals that we've seen this year with our retail partners is that there's a lot of belief that consumers will be
interested in a strong halloween this year. >> michelle buck, thank you very much for joining us. appreciate it. >> thank you. >> hersheys is soaring today we've got 43 minutes left of trade before the close the dow is up 242 points s&p 500 surging 7/10 of 1% small caps are lagging, down 0.4 of a percent every sector is higher except for health care. after the break, president biden laying out his plan for paid family leave in last night's address to congress. >> no one should have to choose between a job and a paycheck or taking care of themselves and their loved ones. >> we will speak with reddit co-founder alexis ohanian. check out some of the top search tickers, lots of big tech today on the board apple, facebook, amazon all in the top five people are watching earnings the 10-year yield of course has been up there for a few weeks.
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to $4,000 a month. according to the kaiser family foundation, only about 25% of private employers currently provide any type of paid leave and that's more likely to be large companies rather than small businesses or startups that might struggle to pay for this benefit at third love the first person to take maternity leave was the ceo and co-founder herself now she's made it a priority. >> that's the biggest thing. if we don't give people some basic amount of leave, then they're not going to bring their best selves to work, they won't perform, they won't be as productive and the business suffers. >> reporter: she's part of a coalition that includes salesforce, spotify and diageo calling on congress to pass the president's plan with an estimated price tag of $225 billion. that could help offset the cost of existing policies or allow them to give even more paid time off. back over to you.
alexis ohanian joins us now. co-founder of reddit he's been a huge advocate for paid family and paternity leave. alexis, it's good to have you here you've written about this in op-eds, you've championed this i'm sure you were thrilled tol hear president biden talk about this last night. how did you get so involved in this issue why is it so dear to you >> i've spent three and a half years fighting for paid family leave because three and a half years ago i was lucky enough to have a daughter and lucky enough run a company where i had access to family leave. i was taking it much like the ceo you just described as a role model for those in tech as well as my firm we went through a pretty difficult childbirth my wife, you know, well documented nearly died from it our daughter was in quite a bit of distress. and thankfully at no point during those days after multiple surgeries, the weeks after while my wife was recovering, at no
point did i have to worry about my job and my family if i had had to make that choice, i would have obviously chosen my family 100 times out of 100 and yet we had as much good fortune as any family could hope for. the idea that it was that traumatic, despite all the fortune we had, all the support we had, led me to believe that i needed to make sure every single american had that opportunity that i got to have to not have to decide between supporting their family and their careers and so it became my sort of my thing. i'm grateful that i had great leaders like caitlin holloway who said this is important for our workers. >> is 12 weeks enough? >> it's a start. >> in the uk, what is it, 40, 50 weeks? >> six months. >> that's a long time. >> look, we're just getting on the board, right america is the last developed
country to have it we have absolutely no policy right now. and so just getting on the board is important making it accessible to men and women, also in the case of adoption, et cetera. these are all foundational things that we need to do and it gives leverage for companies, seven seven six offers 16 weeks. it gives leverage for companies to do more if they can, but more importantly it gives access to companies that wouldn't have been able to make it as much of a priority and hopefully open the door to much more. >> i know you're a big fan of this move and want to see it rolled out across the country. that said, will it do you think impact the hiring abilities of your existing companies that were already offering this was this something that was really embraced by workers as one of the factors they consider when considering whether to join your companies >> oh, yeah. i think we've seen in the tech industry, this is one area where i think the industry has done really well. by having generous paid leave plans, the war for talent is
real and top talent has come to expect it. i think we'll see that spill over in a way that -- you know what, if we do get this policy, i don't think it's going to make it harder for any of us. i think we'll still come up with great ways to incentivize employees to work for us, i'm just thinking about the broader health of the country. we all believe family is the bedrock of society i hope we all do knowing that right now in america one in four women is back to work ten days after giving birth just think about that, and what that means the next time you're out. like it is ridiculous that this has taken so long and we need to create that baseline of decency for every american to have this opportunity, especially when it's such a crucial time in a family's life to have a newborn. so i hope this is just a start i really do. >> and clearly, alexis, you believe in the principle kind of regardless of what this might
cost do you believe that anybody that may be pushing back on this because of the potential cost is missing a point in there as well >> you know, when i was in d.c. working with paid leave u.s., a great organization that's been spearheading a lot of this, we met with congress, members of the house and senate on both sides of the aisle the thing that really impressed me and this was when the 12 weeks of federal leave was passed just a year and a half ago, two years ago, really the biggest question was how was it going to get paid for. everyone has bought into the idea as we have more and more data that shows this is healthier for our families so it's going to mean reduced health care costs overall, which obviously helped it start paying for itself but also have increased economic efficiency when we talk about all the women that have left the workforce, especially after this last pandemic which disproportidisproportionate ly hit more women than men
we're talking about creating an environment where you can support a family on day one and actually give someone, men and women, this opportunity is going to mean more economic productivity >> i wonder, alexis, if all the companies that do offer this, i men take it and whether we should be going farther. should there be mandatory paternity leave so there's not a stigma for men who do need to take it or women who need to take it and there should be some sort of balance so both of them will have equal opportunity in their careers with their wages what do you think? >> i don't think we're going to need a mandatory one simply because there has been a massive culture shift. i wrote about this in an op-ed a year or two ago. my dad back in 1983 took one day when i was born of vacation time and that was sort of the norm. fathers i talk to now, i have a business dad podcast i talk to alpha male business,
career-oriented dads who like myself want to be the best at work but also really want to be good for our kids and for our families we want to be the best at that too. and i think there is a very noticeable generational shift. and yes, for men who are lucky enough to have access to it today, the numbers still aren't as high as they should be. but more and more male leaders taking this time, talking about taking this time and role modeling this behavior should give air cover to a generation that i think in the next five to ten years that will consider it a no-brainer to do this because, again, if we believe in the importance of family taking this time is really the least we could do at such a pivotal moment for our family's health and well-being. >> alexis, final question to pivot just a little bit and ask you while we have you. there are measures suggesting the retail engagement in the market has not tailed off a lot but plateaued perhaps and maybe that's because things are reopening and there's other interests for people do you think that we have seen maybe in the short term over the
next few years the peak of stock engagement, whether by the market generally or by reddit and all the forums that you know better than mosts of us? >> i got a lot of questions about wall street bets, no doubt. i think, yes, as people transition back to more activity and opportunity offline, as we safely open up from this pandemic, yeah, we'll see that level out a bit. but we are not going back. the genie is out of the bottle when it comes to this intersection of community and capital. this idea of the strength of investments, of communities being able to get together in realtime on social media and say, hey, we like this stock or we like this dogecoin or we like this nft or this trading card, that's not going away. and i think markets are going to have to sort of better adjust, new technologies will adapt to this so i do think across the board activity will wane during the
next few months as people enjoy getting to go out again but it's not going back to the way it was before, and i think it's on all of us now as business leaders and investors to adapt for that new reality. we've democratized to consuming knowledge and this is a new era. >> alexis, great to see you as always thanks for stopping by. >> thank you for having me. time now for a cnbc news update rahel solomon has it for us. >> hello, everyone in ohio, eight people have been indicted in the alcohol-related death of a college student after a fraternity party six of them have been charged with involuntary manslaughter. chicago is easing its pandemic restrictions. the bulls and blackhawks will get to finish their seasons with stands filled to 25% capacity. governor cuomo would like to see new york city open sooner than the july 1st data nounsed by mayor de blasio
cuomo also says it's too early to predict when restrictions can be dropped. the new push for police reform on capitol hill benjamin crump, george floyd's brother and other relatives of black men killed by police making their case to senators, including south carolina's tim scott. president biden calling on lawmakers to pass a police reform bill by next month. see how that bill or what the bill might include and how likely it is to become law on the news with shepard smith tonight at 7:00 p.m. eastern you are now up to date back to you. still ahead, amazon rounds out the faang stock earnings after the bell we'll watch mark mahaney what he's watching for. plus endeavor finally hitting the public market in a long-awaited ipo we'll break down the company's first day of trade next. and bond yields moving higher, getting up to 1.64, 1.65 we're back in a couple
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25 minutes left of the session. shares of endeavor moving higher in its first day of trade, up 4% leslie picker has the details. hi, leslie. >> hey, wilf, slight gains at least relatively speaking for ipos after pricing at the high end of its ipo range it owns united fighting championship, miss universe and the talent agency that represents everyone from the rock to adele to lebron james. the ceo told cnbc earlier that wall street sees the business, which was hindered by covid-induced shutdowns as a reopening play. >> we are the largest company, the only company that represents content in the entertainment space, owns content in the entertainment space, owns sports with the ufc and others. there's nobody like us in the world and i think we're the reopening -- >> now, today is endeavor's second attempt in recent years to go public, this time with
about 25% less revenue and about 25% higher valuation guys >> leslie picker leslie, thank you very much. we've got just about 24 minutes left of trading. big tech headlining earnings after the bell amazon and twitter set to report at the top of the hour we'll break down what investors are watching for when we talk to mark mahaney coming up next. hey, d hey, son! no dad, it's a video call. you got to move the phone in front of you like..like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge, 24/7 support when you need it the most and $0 commissions for online u.s. listed stocks. don't get mad. get e*trade and start trading today. ♪ ♪
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big tech earnings are on deck with amazon and twitter set to report after the bell both stocks higher so far this year, with amazon up 6% and twitter outperforming, up 20% so far. joining us now mark mahaney. mark, thanks for joining us. clearly advertising has been great so far this week for the big cap tech stocks. do amazon and twitter in their own separate ways have enough exposure and expertise in that space yet to see the same sort of outperformance that we saw with google and facebook >> i think the answer is a qualified yes. either of them have the scale that google or facebook have and as broad of an economic exposure as those two companies and that's partly what's powering
their results. twitter is your pure play off of advertising revenue. the trick for twitter is what's the outlook like it spiked during the covid quarters and now as you go into tough comps, the question investors will have, is that going to trail off like it did with pinterest or are you going to get the snap outlook and get more robust user growth. our guess is that it's more likely to have a pinterest than a snap outlook. >> we've seen apple tail off during the session and now down week to date does facebook deserve its 10% or so gains this week, 8% gains darrelle afternoon to those other companies, because all of them have beaten earnings estimates? >> well, the advantage that you have is a facebook shareholder who said the stock was trading pretty much at its average for valuation. what's very clear, especially with the ad names, is that covid, for good or for bad, has been a structural win for these
companies. you had all of this new business formation and all those new businesses are using facebook and google to launch their new enterprises and get new customers in the door. you had this huge tipover in terms of linear tv ad budgets that came online and will stay online we think facebook deserves this move up in the stock and thinks it can deserve further re-rating. they're talking about a lot of new growth areas like facebook marketplace and whatsapp >> is amazon an ad play yet? obviously it's e-commerce and amazon web services cloud, but where does that leave us today will it get that ad tailwind as well as it goes up against facebook and google on advertising? >> sara, i think there's enough room in there for them to do that what we've heard from google, facebook, shopify, ebay, online retail is on fire. i'd be shocked if amazon didn't hit numbers at the very high of
its guidance range or above. online retail is that strong with that is amazon's advertising revenue. so there's two out of the three segments that should report really, really robust march results. aws, microsoft gave you a tepid response, just modest deceleration and they're going really well. but this could be the first quarter in a while where you'll see aws actually grow faster than microsoft on a dollar basis. they had five quarters in a row of accelerating backlog growth so with amazon you've got three levers that are going to print positive tonight it will all come down to the guide for the june quarter that's going to determine the stock move. >> on that note, mark, for the rest of the year, what is your top pick based on the fact that we are going to have clearly some tough comps for all of these companies and some pretty rich valuations? >> well, it's actually facebook and amazon our thought was we want to find if there are covid structural
winners, and i think they are, amazon appendnd covid, and they great businesses to begin with if they're back trading average for multiples, their fundamentals are stronger. you want to buy amazon and buy facebook our third pick is the covid recovery play, that's uber. >> well, quickly touch on that as we go because it's down 6% or 7% today is that an overreaction? >> i don't know if it's an overreaction depending on what happens now, this was thoroughly tested in the california election that's the prop 22 election the population pretty aggressively went in favor of uber in that case and lyft and doordash so given that i don't think that you're going to have a sustained trade-off in uber, lyft and doordash but it is one of those black swan risks to the business model. >> great to see you, mark. thanks for stopping by coming up, new comments from the labor secretary pressuring shares of uber and lyft. we will touch that again in the
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[triumphantly yells] [ding] don't get mad. get e*trade and take charge of your finances today. 12 minutes left in the trading day. we're now in the "closing bell" market zone. mike santoli is here to break down these crucial moments of the day and the strongest link, stephanie, from hightower investment strategist joins us as well. let's kick things off with the broader markets. the s&p 500 and the nasdaq hit intraday record highs this
morning. the s&p on track for a record close. quite an interesting session there, mike, as you can see from this chart or any of the charts. negative for the middle of the day and some of those big cap tech stocks giving up their own gains, which i guess has been a driving force of theintraday action >> right now there's a lot of mixture between up and down stocks the reactions to earnings have not been uniformly or indiscriminately positive even when the numbers have been you can probably cast that as a positive or negative the market is a little selective at the moment. i think what was happening tactically is you did get this opening enthusiastic pop in the market, a little pull-back at bond yields stay high. then tested yesterday's close and said it was an all clear i think tactically that's what's going on new highs are bullish, but i think the market has lost a little bit of. o omph to it in the last couple of weeks. >> steph, the economic data goes
from good to better and you saw that in the personal consumption number in the gdp, jobless claims have been going in the right direction, you've been banging that um ddrum we've been asking how much is built into the market. do you think we're 80%, 90%, pricing in that recovery that could last for a year or two >> i think all the stimulus has yet to even be used. we still have $3 trillion in stimulus fiscal that hasn't been implemented yet. so we have all the stimulus from last year, now more this year and then you get an infrastructure package of some sort which is a trillion or two trillion, that's a lot of momentum and tailwind for an economy to continue to see improvement. and then you get reopenings, right? i know the market is actually pricing in a lot of the reopening stuff. i can see it in the names that i own. but it is a real legitimate theme, it truly is there's a long way we have to go to getting back to 100% normal so i do think the stay-at-home
stocks, i think they're going to lag. i think a lot of the higher multiple technology stocks are going to lag because the economy will be better and it will lead to a little more inflation and a little higher interest rates and that's usually a better recipe to own value and cyclicals and then reopen as well. >> teledoc plunging despite reporting a quarterly beat on the top line and raising 2021 full-year guidance zoom, peloton and shopify also getting crushed today amid more signs of the economy fully reopening by summer. this morning the cdc said cruise lines could begin sailing by july and new york city mayor bill de blasio says he wants the city to fully reopen on july 1st. it is great to hear these milestones, steph. the question is how to distinguish between the stay-at-home winners like this, which clearly the market is judging as a temporary burst in demand and those that have changed their secular growth pictures potentially, like we saw from a facebook.
>> i think that the stay-at-home stocks certainly saw a surge and that's one of the reasons why i think apple is only barely flat on the day after just an enormous number because the comparisons start to get very difficult. how sustainable are those sales that they saw in macs and ipads, that kind of thing so i think you have to be very careful and very specific in terms of which names you want to pick i think you can have a handful of them, absolutely, but i do think you want to balance that out with some of the companies that are about to get a real improvement in operating leverage like vail resorts and marriott and wynn and tjx. all these stocks are really lagging these other names and other sectors. >> mike, some of the stocks that we're looking at also being hit by yields picking up today >> at least that's the programmed response. it probably isn't helping that we do have a little bit of yield move honestly the yield peaked at 10:15 eastern time so it's not
an incremental source of pressure we have a reopening day. the banks are up the cyclicals are doing better and all the news flows in the direction of faster reopening and it's just a reflex to sell these stocks which is nowhere near like a valuation support if you're looking at shopify or zoom. >> shares of uber and lyft getting hit after a labor secretary spoke today. >> reporter: walsh used the e-word and said gig workers should get all the benefits that go along with being full employees, not independent contractors. they have fought hard to avoid such a change. there have been a few victories for them along the way like prop 22 in california that lets gig workers exist somewhere in the middle this is a reminder that this battle is far from over. making them full employees would cost the companies substantially more and push profitability further out. in response to walsh's comments, uber and doordash said the
majority of their drivers don't want to be employees we've heard that argument many times before. >> steph, i forget the exact order. did you pick boeing and las vegas sands over uber or had uber already gone? >> well, i wouldn't have picked uber but i will say i really like what the ceo and the management team have done there in terms of pivoting into food service when they needed to, really to survive. and they are reopening for sure. just the valuations, the swings, this issue today as an overhang, i think they're just easier reopen names i know i picked boeing and las vegas sands. they're not the most popular but i sometimes don't want to be really popular i want to buy low and sell high and that's what i think i'm going to do with both of these names. >> how much risk do you think is around these stocks? clearly they're getting hit. also we're seeing dleclines in doordash and grubhub around that
risk with their workers. >> we don't know if this is going to be a real kind of policy momentum behind this statement by the labor secretary or if it's just an overhang psychologically and maybe some interruptions of news flow it is a test, though, of investor conviction in the durability of these business models we sort of know that it's already nip and tuck in terms of whether they can really get scaled to profitability, whether it's an uber or lyft or something like that. so this is just one extra reason to wonder about long term how it's going to work. >> there's a legality question here as well the federal government can set rules on labor classifications currently gig economies are contractors, so if they decide to change that, it will have to go through a whole process, i guess, and get congress onboard and it would be lengthy. so they come to the conclusion that the risk here is overstated so -- >> which is often the case essentially you sort of sell first and then figure out the details later. but again, that's also -- it's a
little bit of a tell when you do see some pronounced selling, even when everyone knows this is not a done deal. >> amazon is set to report after the bell what should we be watching for >> well, the street is expecting a second $100 billion quarter from amazon, continued strength in e-commerce, aws and its expanding advertising business that is giving facebook and google duopoly some competition. we may also hear how it's thinking about labor yesterday's pay boost a sign of changing times at the company. amazon has always prided itself on being customer obsessed the company increasingly having to account for other stakeholders like employees and merchants. back to you. >> deirdre bosa, thank you steph, remind us where you are on amazon, which is up about a quarter percent into the print. >> i own it. it's not a big overweight but it's a big weighting in my
benchmark so it's a fair position size. i think they're going to crush it, i really do. if you look at the u.s. retail e-commerce numbers, january, february and march, they were up 62% in january, 55% in february and 57% in march we know that these guys have a decent amount of market share and it's actually growing. so i think they're really going to do very well on the retail e-commerce side. the bogey on the aws is 30% and they can probably hit that they're still the leader so i can't see why they don't crush it it's obviously going to be about guidance and how the new ceo carries himself next quarter when he starts and we'll see how it goes. but this is a name you want to have exposure in long term given the total addressable markets. >> mike, it's sort of plateaued since last summer. >> almost exactly flat to where it peaked in summer. it had a tremendous run into that high so this is not unusual
for an amazon over 24 years, it's basically had these huge sprints higher and then some sideways action. since september 30th, the top line estimates for this quarter are up like 12%, maybe not enough but the eps estimate, the earnings estimate has not budged much at all. it's interesting that people just are not assuming there's a whole lot of that top line going to fall to the bottom line. >> two minutes to go in the trading day. what are you seeing in the market internals >> sort of mixed the top line indexes are trading up to their highs but you see more volumes in the declining stocks versus advancing stocks small caps are lacking and you do see some of the hypergrowth names also having a little bit of a struggle here take a look at high beta stocks versus low volatility stocks if you look on a week to day basis. so they have reasserted themselves this week that's something that usually means the macro picture is
firming up or perceived to be firming up and then the volatility index did have a blip higher it's sort of twitchy here. we talked about it being in the range of 16 to 19. we did tick above 18, calmed down these intraday moves have some traders on edge even though not much is happening at the index level. there's still a little hedging instinct as we get to the end of the month. >> just one minute left. apple in the red despite those blowout numbers yesterday of 430 and facebook still up 7.5%, holding on to most of its gains after its own blowout numbers that came at 4:00 p.m. yesterday. all eyes on amazon and twitter amazon is up 0.4% as we approach the close. those numbers due any minute after the bell s&p 500 up two-thirds of 1%, the dow up a little more than that, z 0.7%. it's a little off its session highs which were hit about half an hour ago. it was up 260, 270 at its highs.
the nasdaq up 0.2% and the russell down 0.4%. we do have bitcoin below 53k and the 10-year yield pushing up to 1.64 at the close. at the close, sara, we are up two-thirds of 1% on the s&p, zmt 7% on the dow and 0.2% on the nasdaq record closing high there for the s&p 500. another strong day on wall street welcome back, everyone, to "closing bell. i'm sara eisen along with wilfred frost and mike santoli take a look at how we finished up the day on wall street. the dow gaining 242 points, near the highs of the session had a nice final hour of trade there. for the week we're pretty much flat week to date. keep in mind we're going in one last trading day of the month of april. we are set for the strongest month for stocks since back in november s&p 500 closes up about 0.7 of a
percent and closes at a new all-time high. what took us there communication services, thank you, facebook, and a number of other media names. financials also at the top of the list technology and health care were the two losing sectors as for the nasdaq, it set an intraday record high earlier today, closed up about a quarter of a percent, a little less than that we saw an intraday high for transports and the dow jones industrial average the small caps actually lagged today. they finished the day lower. investors are now turning their attention to a trio of big earnings we will have instant analysis of results from amazon, twitter, gilead as soon as all of those numbers come out first up, let's talk about this record close stephanie link is still with us, paul hickey joins conversation first to you, mike, on another strong day backed up by strong data and strong earnings. >> yeah. i think everything pretty much lined up it might have been a less enthusiastic response than we thought it was going to be first
thing in the morning definitely mixed in terms of push/pull below the surface but we closed above what had been a mini ceiling on the market for a few days sort of everything is pretty much in line with the continuation of this rally but again you have to weigh that against the idea that two or three weeks ago people were saying we're due for some kind of choppiness, some kind of pullback we've had a great 13-month run in the markets maybe that attitude has moderated the aggressiveness of traders enough that we're now back to just an upward tilt, very gentle bias to the upside at this point. >> just want to hit amazon numbers or at least the headline of it as they cross. a massive beat on the bottom line and a big beat, not massive but still big on the top line. revenue $108.5 billion the forecast was $104.5. the estimate for eps was 954 and it's come in at 1579 so massive
beat on the bottom line, solid beat on the top line if we just go through some of the numbers which i'm looking through, aws coming in at $13.5 billion. the forecast was $13.9 billion so maybe a slight miss there international sales came in at $30.6 billion. the forecast was $28.9 north american revenue came in at $64.4 billion, just behind $ $66.4 billion. sorry, the individual lines, north america $64.3, the forecast was 63.1. international came in at 30.6, the forecast was 28. aws came in at 13.5, the forecast was 13.2 so slight beats on revenue, a beat on the top line for revenue and a big beat on the bottom line. mike, jumping 5% in after hours trading. >> yeah. as you were just mentioning, it
seemed like people had not felt a reason to raise the earnings per share estimate that's pretty impressive for amazon, although we saw $12 billion from apple yesterday stock at a new all-time high so it did just sort of release it, i guess, out of that range at least for the short term. >> jeff bezos in the quote, the first quote, he highlights two of their businesses calling them two of our kids, which was a little confusing at first. saying they're now 10 and 15 years old. he highlighting amazon prime video which turned 10 and some of the milestones, 175 million prime members have streamed shows and movies and then aws, he said in 15 years has become a $54 billion annual sales run rate business competing against other technologies then goes on, steph, to talk about some of their clients like mcdonald's and volkswagen using aws. this is clearly a beat on all fronts. >> it's not a surprise, right, as we just talked about. but it's very exciting and the stock was only up 6%
into today, into the print so i can see it easily playing catch-up to facebook and to google or alphabet it could easily play catch-up because the growth is there. but these are amazing numbers. they obviously did better on margins, i haven't seen the margins, but they got the operating leverage expenses for covid are going down they're probably going to be only $2 billion versus $4 billion last quarter this stock should be rallying on these notes. these are really good numbers. >> big guide for revenue 2for q2 deirdre bosa has been digging through the rest of the release for us dee, what stands out >> i'm still going through it, but seeing what you guys are seeing also, that forecast for q2 revenue, 110 to 116 billion, that is above the 108 expected this is a key number because we saw ebay last may and saw that pull forward effect. but amazon expected to continue
to fire on all cylinders here. also this guys, they're assuming prime day is in q2, so that will be moving it back. we saw it delayed last year because of the pandemic, so that looks to be back on track. i'm going to continue looking through this and will bring you cloud numbers, physical store sales, advertising numbers as soon as i get them. >> it looks like aws grew 32% from year on year which was 33% last time. twitter earnings are out let's get to julia boorstin with those numbers. >> sara, twitter beating on the top and bottom lines with adjusted earnings per share of 16 secents. revenues of $1.4 billion beating expectations of 1.03 billion the standard user count they use comes in a million short of expectations the company did add 7 million users between the fourth quarter
and the first quarter. in terms of revenue guidance, second quarter revenue guidance is lighter than the mid-point of consensus expectations that's likely the main cause of the stock being down over 8% now, they do say despite that revenue guidance being a little lighter than expected, their long-term goals are unchanged. i spoke to twitter's cfo and he told me that brand advertising got off to a slow start in the quarter but had a strong march, finishing the quarter strong telling me that direct response advertising was strong all quarter and they saw a ten times year over year increase in direct response as from crypto investing and betting advertisers. the guidance they say does incorporate the impact of operating system changes from apple, that ios 14.5 they say the impact of that will be modest, but still measurable and they're sticking with their prior guidance of expenses growing 25% or more for the full
year and for revenue growing faster than that ned siegel will be on "squawk box" tomorrow morning. >> julia boorstin, thank you do you pick up a stock like this on a dip, steph? there were some disappointments in there >> this stock does trade on the mdaus like julia was just talking about. for them to be a million short in this segment, people are going to be not happy with that. it's just so inconsistent. we thought advertising would be great and these guys would benefit even more because it's 85% of their total revenue stock is up 25% into this so expectations are fairly high i'm glad that they did not change their long-term guidance because that's what was great at their analyst day and propelled the stock so much higher so that's good news but this is probably going to trade sideways a little bit because there are a couple of question marks. >> paul hickey, let's go back to amazon maybe and your take on those numbers and the stock reaction as we were discussing
just before the close. they kind of plateaued for quite a few months since late summer and maybe this is the start of a break higher. >> yeah, it could be i was shocked when i was looking at a chart of amazon, i had to go back more than six months to find a new high. all these mega cap tech stocks have delivered strong results. so there's not much to say, they're firing on all cylinders. i think in the case of twitter, the stock's reaction to earnings has historically been bad. the first quarter since it's been a public company, this quarter's earnings report, it's only up twice out of the seven times it's reported so it historically reacts poorly to it these social media stocks are not all created equal when it comes to the reopening play. you've seen facebook report great results with instagram doing well then you saw pinterest do poorly i think facebook, instagram, what am i doing? people getting out showing what they're doing. pinterest and twitter to a degree are more like killing
time social media stocks where you look at it because you have nothing else to do so i think in that respect twitter faces some headwinds as we see the economy reopen. >> gilead's numbers are out. meg tirrell has those for us hey, meg >> hey, wilf it looks like a bit of a miss for gilead earnings coming in at $2.08. just a penny shy of estimates on an adjusted basis. revenue was $6.42 billion for gilead in the quarter. analysts had forecast $6.75 billion. it looks like for remdesivir, their covid drug, that was a beat for the quarter coming in at $1.5 billion in revenue of course we had this horrible covid surge in the winter, guys, here in the u.s. so analysts were looking for $1.44 billion in terms of their hiv franchise, that big franchise, it was $3.7 billion in sales, down 12% that missed what the street was looking for. hepatitis c did a little better than what the street was looking
for at $510 million in sales the company saying they are expecting a more gradual recovery of these covid-19 related dynamics starting in the second quarter with patients, the way the pandemic has affected them, they're not starting on new medicines for hepatitis c and hiv as much and so that's the impact you're seeing to gilead outside of, of course, its covid drug. >> meg tirrell, thank you. what's been the story with this? >> long term sideways, feels often like a value trap, not in the parts of biotech that really excite people, even though they have these incredible products we saw amgen, mega cap biotech seems like a totally different animal than emerging and those that are in the higher growth areas. it's not really necessarily giving people a lot to latch onto in terms of catalyst. >> paul hickey, i want to pivot away from today's earnings releases what's your takeaways from all
of big tech these days everyone has beaten but apple and microsoft have traded lower off the back of big beats. >> yes, it's a function of look what the market has done what has been baked into the cake we all have known that these results were going to be strong. analysts were raising forecasts at a very rapid degree heading into earnings season so i think it's sort of healthy that we're not just keeping going up and up and up on the same news. we had a great month of april. so even though we had a brief period towards the end of the month where we had trouble getting to 4200, but this market has been defying gravity for the last year at this point. it's been above -- the s&p has been above its 50-day moving average 90% of the time over the last year and it's been only oversold 2% of the time. 2% of all trading days in the last year. that is extremely rare looking back throughout history. it's only happened seven other times in the post world war ii period what's interesting, though, when
you get these types of situations, your first inclination is to think, all right, now we need to see a pullback to equilibrium but you see some short-term sideways movement moderate weakness to moderate gains. over the next three to six months, three, six and nine months, we've seen above average returns going forward. one year later following those seven other periods, the first day in the period, the s&p 500 was higher all seven times so i think you could continue to see a grind out gains here going forward. >> paul hickey -- >> and by the way, that pick on boeing, i love it, stephanie link >> thank you >> are you picking her do you think she's going to win? >> with boeing, boeing i think is a very out of favor stock as she said it's not popular i think it's a great reopening play they're sort of getting past the
regulatory risk at this point where some of these other opening stocks are facing that >> there you go. steph, you've got paul hickey in your corner. i just like your team name stephanie link, paul hickey, thank you very much. up next, much more on today's big after hour earnings movers, including reaction from an analyst who thinks amazon still has a lot more room to rally after this blowout quarter the stock is up 3% off the highs after hours, twitter sinking 8%. plus mike santoli on what falling vinddide yields on wall street could mean for this market
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that was actually the rare miss in this earnings report. it was down 16% year over year, 3.9 billion versus 4.3 expected. subscription services, this relates to that prime flywheel that was a beat, 7.6 billion versus 7.3 expected. and the advertising business which increasingly investors are looking at very closely saw a growth of 73%. this is part of an other revenue category $6.9 billion business. the street was expecting $6.2 billion. this is another little tidbit, wilf employees dlieclined on a
sequential basis they employ 1.2 million people versus 1.3 million you heard about wanting to be the best employer but noticing the pace of hiring is slowing. still the number two largest employer in the country, private employer back to you. >> now up 3% after hours let's bring in cnbc contributor ed lee from "the new york times" and tom forte. tom, sum it up for us. >> to me the most important data point was sales in the june quarter will be better than expected if you go back to the early days of the pandemic, recall that amazon leaned into essentials. this had a negative impact on their sales. they weren't able to keep up with demand. since then they added fulfillment centers and head count. they're much better prepared i think that's going to position them for the june quarter and that's why the june quarter revenue is going to be better than expected. >> so, ed, we were expecting
very tough comps throughout the rest of the year but we're seeing whether it's amazon or other big tech players that they have seen structural shifts over the last year, not just temporary covid shifts. >> right i think that should signal to the market, the marketplace, what's going on with when we get out of the pandemic or even in mid-pandemic, there is a secular change i think people will continue to buy stuff on amazon like they were during lockdown periods maybe not quite as much in terms of volume as before but it was sort of an introduction to the service for a lot of people and they found that they liked it so that's going to continue i was blown away by the advertising numbers. that is now their fastest growing business bezos mentions prime video 17 times in his letter. i think it's the most he's mentioned prime video, talking about all the sports rights they're getting, nfl, et cetera. look out for more of that in the
future i think there will be more investment in that space 175 million people watching streaming video, which was a surprising number. netflix is 207 million so amazon is very, very close behind. >> his 10-year-old child he calls it. >> exactly right. >> so, tom, aws, where's the aws versus microsoft azure battle going? who's growing faster >> great question. i still see aws as the market leader i think there's a potential in a rebounding economy that aws outperforms in 2021. if you think about what amazon did last year, they worked with customers in travel and leisure to help them scale back their aws spend because of the pandemic so in a reopening, i think there could be better than expected performance for cloud computing for amazon this year, which would be great for profits for amazon in '21. >> ed, what about the outlook for advertising? i guess not a nacent business
for them but clearly a very strong business for some of their rivals at the moment. >> it is and has been. i've done some checks with media buyers and they are shifting more tv dollars strictly towards digital. you saw that with google and facebook in their earnings reports in terms of blowout advertising numbers. i think amazon will benefit to this shift away from third-party cookies. if you're selling product and selling it on amazon, their advertising business is really sort of effectively these co-op fees so on amazon they have first-party data, they know the customer and that's really what that ad dollar means so i think they'll benefit even more with the disappearance of this tracking, with the disappearance of this third-party data after what apple is doing to its ios and even on web browsers as well. >> tom, bezos is handing over the reins at a strong time in the business where's the investor community on this? are they cool with this
transition do you expect any talk about it on the call? >> sure. so i think if picking andy jassey, the head of aws, to me a sign that they're going to focus more on services in the future when i think services, i think higher margin that could enable it to maintain its multiple over time so i think investors are more than comfortable with the transition. >> tom forte, ed lee, thank you both very much. >> thank you. >> amazon surging after hours. let's get back to mike santoli for a look at treasury yields which continue to fall do you think this is related to the higher tax proposals from biden? >> they do and they remain contained. what we're looking at here is dividend yields for the s&p 500 which we can compare to treasury yields we've seen a big decline in the s&p 500 dividend yield down to 1.4, as low as it's been since the '99, 2000 range. it was lower by .2%.
it's been remarkably steady around the 2% area stocks were going up but dividends were also rising so it seemed like it replenished itself now we've plunged below that when earnings got blasted out last year. by the way, when we were the at 1.2% dividend yield, treasury yields were 6% so clearly stocks were much less attractive relative to bonds than they are right now. here's the free cash flow yield. we're now still at 4% and we were way below that in 2000. more like 2% this shows you companies are more profitable. the mix of businesses within the s&p are more profitable on a premarket basis so this shows you we're not as overvalued but obviously have to be on alert for all of those things, guys. >> mike, would the dividend chart look different, less of a recent slide and pullback if you did total shareholder return is there an aspect of companies favoring buybacks more than
dividends today than in the past >> not in the past year. the buyback yield, so to speak, has also really plunged. it's kind of like 2020 was a big interruption in this general capital return trend that big companies have been doing so it's most likely going to ramp up we saw apple raise its dividend a little bit yesterday it accounts for about 3% of all s&p dividends, on par with exxonmobil. twitter tumbling after weak daily user growth and guidance we'll ask an analyst whether he wants to hear on the company's call what's ahead. plus shares of citrix, the ceo joins us and whether employees return to offices.
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twitter shares are plunging on the back of that earnings report it looks like it's slightly beat but the company's user base grew slower than analysts' expectations joining us, an analyst who is neutral on the company is that it, the miss on users, 199 million monetizable daily active users >> yeah, it's the -- i call that a slight miss on users but more
importantly it's the outlook i think for the second quarter user growth engagement has really been one of the biggest themes around digital advertising, especially in the social media space this quarter. as the pandemic starts to unwind and people start to go out more investors are trying to understand what user growth will look like the remainder of the year and twitter guided to lower than expected users in the second quarter so i think that's really the big thing that's pressuring the shares right now. >> do they have a accsense, the management team, how they want to ramp up that user number and engagement numbers >> they do and they have outlined it in great depth over the past couple of months and set a target for a 20% year over year growth and that's going to be lower in the second quarter now, i think that's understandable to a certain extent because we had a lot of engagement last year with everyone locked at home and people will start going out a
little bit more. it doesn't necessarily mean that the long-term trending is going to change but in the near there's going to be a little bit of pressure. they're launching a lot of new products you're seeing them go into the audio category and try to drive more interest in the way people use the platform, make it more useable for more people. they have a plan in place. that number for this quarter, i think, is going to put some question marks around that >> do you believe they will get there ultimately is a buying opportunity down 8%, below $60? >> i think they have got a little bit of work to do i think what they have put in place is actually pretty impressive one of the biggest things they're focused on is velocity of product improvement again, they have done a good job over the past couple of months to launch a number of new things that can drive that. we'll have to see how some of
those new platforms, like audio, translate to the twitter user and how that goes through, so i think they have got a little bit of proof points to kind of work out over the next couple of quarters before we feel comfortable in that. >> ygal, thank you for joining us still ahead, forget cash back rewards one big fin tech company is allowing customers to earn crcryp crypto currencies. plus whayou edt ne to be watching out for tomorrow when "closing bell" comes back. man: "fender bender," take 1. tonight's matchup: me versus an ugly fender bender. if i can eke out a win, it's going to be a miracle, baby!
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welcome back time for a cnbc news update with rahel solomon. >> hello, everyone 30% of americans have received all their covid vaccine shots and 55% of adults have received at least one dose. the cdc reporting another 2.7 million shots were administered today. the fda is trying again to ban the menthol flavoring in cigarettes previous attempts have faced strong pushback from the tobacco industry and somemembers of congress now any ban would take years to implement. and a new poll finds that four out of ten republicans say that trickledown economics has failed the theory that tax breaks for corporations and the wealthy then benefit everyone has been a key republican policy since the reagan era the poll was conducted after president biden's speech last night when he said that
trickledown economics was an idea that has never worked that's our cnbc news update for this hour. back to you. skyworks and western digital are both out. >> skyworks falling despite better than expected results earnings beat at 237 per share with a 235 estimate. revenues just ahead at 1.17 billion versus 1.15 billion. the company also had strong third-quarter guidance on revenues an earnings but we keep seeing this pattern with chip stocks as they fall. we'll see if we hear more on the conference call. shifting to western digital, that stock up after hours beating on both the top and bottom line. earnings came in at 102, adjusted, compared to a 68-cent estimate a big blowout on revenues at 4.14 billion versus 3.9 and change is the estimate
the company notes improving pricing trends in flash memory and also issuing strong fourth quarter revenues and earnings guidance >> bertha, thank you so much an earnings miss and mixed guidance weighing on shares of citrix systems the ceo of the cloud computing company on the outlook for demand as more employees head back to offices. here's another check on today's biggest after hours movers you've seen a couple from bertha, but amazon up 4%, twitter down 9%. we're back in a couple minutes ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪
shares of citrix down 8% after missing earnings estimates. while the software company saw momentum in cloud adoption, overall revenue fell 10% year over year. the ceo joins us now in an exclusive interview. very good to see you, david, thanks for joining us. >> thank you for having me here. >> i guess the new growth areas aren't picking up the slack quick enough from other areas, maybe not ex-growth but plateauing. >> actually the business model
has been in transition now for about four years we've been moving from a traditional perpetual license model to pure subscriptions. with that brings a new set of metrics so we really focus internally and have been encouraging investors to focus on an annualized recurring revenue metric which puts aside all of the noise of the business model transition when you look at it through that lens, we've had an acceleration up 43%, subscription aor growing 81% in the quarter but the actual guidance is predicated on a certain number of underlying assumptions. a couple of those we actually got wrong and that's what caused the disconnect between our reported numbers and what we were estimating. but the fundamentals of the business were really strong in q1. >> and clearly cloud adoption is going from strength to strength in general, david. how long can that continue it's the same question we ask of so many people but where are we right now? >> what we saw through the pandemic is just an amazing
array of projects and a lot of customers had put on their radar as maybe months or quarters or years. the duration came down in reality to much, much shorter than that. people are seeing tremendous business results at the same time, you're in the middle of a pandemic requiring flexibility and agility like we've never seen before. all of these things point towards more and more cloud adoption i think we're in the early phases of these trends and they're going to continue. they're certainly continuing for our business we added about a million new subscribers. now we're up to about 10 million and that's growing roughly 30% year on year but we have 100 million users in total as of last count so we're really in the early innings of continuing to migrate that base. >> david, how much of your growth outlook is dependent on some sort of work from home staying with us post-pandemic, a hybrid work environment? >> i think a lot of our work is predicated just on the fact that we're seeing more and more distributed teams around the world. more and more companies are
adopting this idea of a hybrid work model frankly because it works. what we've seen through the pandemic is people can be incredibly productive out of the office at home because the types of things they're focused on require quiet heads down focus time we've also reached the limit in terms of being 100% remote so we need to blend both of these environments together, really focus on driving productivity and output, employee engagement and in the context of citrix, providing that work platform to allow people to consume all their work resources, applications, content, data, et cetera, in a very cloud-oriented secure way and then provide tools to allow these increasingly productive teams to be engaged. i think it's a team that's continuing and we see that across our business and in pretty much every survey and study that's going on right now, pointing to two-thirds or more of companies wanting to adopt a more hybrid work model going
forward. >> what about margins? how fierce is the competition now, and do you think it's going to be harder to grow the bottom line to the same extent over the next few years as perhaps the last few years >> we've always been really fortunate having a business model that is highly leveraged we're in the middle of doing a fairly large acquisition to help manage those teams we brought our margins down to the high 20s but if you x out that temporary, we're showing increasing margins operating the core business north of 30% and so i think over the long term there's still room to continue to expand our margins as we grow. >> david, thank you for joining us on the quarter, we appreciate it ceo of citrix. up next, the new cash back one fin tech company shaking up the way its credit card customers redeem their rewards th a crypto twist. details when "closing bell" comes back
oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need. sofi allowing its customers to earn crypto rewards by using its credit cards kate rooney here with that story. one way to distinguish yourself from the big banks, kate. >> exactly sofi is joining a group of companies doing this it's the latest startup to allow card holders to earn rewards in cryptocurrencies clients will get 2% back on purchases in either bitcoin or
ethereum and that gets deposited straight into their accounts it plans to offer some other digital assets sometime soon earlier we had mastercard saying it was doing something similar and teaming up with gemini, which was founded by the wi winkelvoss twins they have teamed up with blockfi for a similar card and it will give customers 1.5% back on purchases. there already seems to be demand, guys i checked the waiting list just now. it has more than 275,000 people on it. i also talked to one person on that wait list this morning. i asked him why bitcoin instead of points or cash back or miles? he said that he doesn't fly enough for airline miles to be appealing. and using a cash back card right now, he said turning that into bit coin that's just deposited into his account is just essentially a better rewards program. guys, back to you. >> i totally get how different
choices and things make a difference, cash back in general v versus, say, points for purchases on airlines. 2%, 1.5%, 3%, it's not ground breakingly better level of reward than credit cards that are out there. the attractive thing is the bitcoin aspect will attract a certain type of person as it clearly is, based on the wait list you mentioned. >> it definitely sdchdoes in some ways it is a sign that you are committed to bitcoin if you have a bitcoin rewards card, you're getting 2% or 3% back it's a small amount of cryptocurrency back in your account but i think it is more symbolic than anything you're right, though, it's only 2% or 3% i think the bigger competition is on a lot of these companies, blockfi included, offering higher interest rates. some of them incentivize people.
this seems to be more just to have it. like mastercard and visa are offering this and partnering with people. we'll see how these really take off, if they do. >> kate rooney, as always, thanks so much. still ahead, amazon reporting a big beat on the top and bottom lines that stock hitting an all-time high after hours we'll dive into the report, next. april is financial literacy month and cnbc is committed to sharing messages from business and thought leaders about the importance of financial education. here is the president and ceo for the council of economic education, nan morrison. >> currently 21 states have a requirement for personal finance. less than half the states in the country. and we know that when you get financial education in particular for kids from low and moderate income communities, it makes a big difference their savings behavior and how they finance their education so not having requirements is a particularly harmful moment for udtsn e and moderate incom
powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. show you some after-hours earnings movers, amazon is the winner, up 4% after a huge bottom line
v profit tripling during the quarter and sales better than expected twitter falling hard, down 9% after hours, after missing the critical user numbers and guidance as we heard from an analyst. users coming in a bit underwhelming. gilder science 3%. amazon, shopping continuing to help, jeff bezos touting prime video and aws, the cloud computing business which continue to be a big profit-driver. what stands out to you >> obviously all of that the fact that they don't really target earnings they obviously harvest enough earnings when top line is growing this fast. decent visibility on the qua quarter -- i think things are mostly on course really want to watch the stock reaction through tomorrow. remember yesterday, blow out apple earnings stock up after hours 4%, 3% and today apple
shares trading flat, similar to amazon, trading sideways since september or so. >> let's get to deidre who is often a call with the amazon cfo what more can you tell us. >> he said this is going to be another investment year for amazon spend in areas including capacity, both at middle mile and the end delivery to increase one-day and same-day delivery. he also says expect more spend on content for prime video we saw a huge jump over the last year he said to expect that to increase once again year-over-year engagement has gone way up. he also address the moving up prime day to the second quarter. he said it had nothing to do with trying to help with tougher 2 q comps but rather they optimize for better customer experience and think it is better for customers and vendors to move it up a little he mentioned the employment dip from q4 to q1 you generally see
a decline in the number during that period and in part this year had to do with them seeing warning signs in mid-february that the pandemic and lockdown were coming so they scrambled at the start of the pandemic to hire a lot of people and are reverting now. >> i guess an investment period to come but head count for the first time in a while did decline. are we expecting it to go up again? or invest in other areas >> he noted they did hire half million people last year, 500,000 people, he said this is normal, it went from $2.12 million to $1.3 million last quarter implying it was in part due to the reopening they scrambled to hire a lot of people last year when they saw warning warning signs of the lockdown. he played it down and said he seen it in previous years as well. i don't think it will change the trajectory of them being number
two largest private employer in the country and continuing to build on a net basis. >> mike, it will be interesting to see whether we see follow through on a move higher after hours, apple couldn't quite get there, one reason, the sustainability of the gains apple saw, we are spending more on our electronics and at-home items like computers and ipads and even phones. maybe that will part of the narrative. it will be interesting to see if that's true about amazon, the online sales up 41%. sales for third party seller services up 60% of the cloud aws hea healthy 32% growth, not growing like it used to be. will be interesting to see how wall street judges that. >> you will see the growth rate estimates mod u lated and there's concern whether there's a deceleration ratio, but unlike apple where you had a huge surge
in demand for hardware, things people only buy couple years, like phones, or mac's in theory there's more of a run rate of people adopting their services if prime domestically starts to look sat yourated. >> and the growth forecast was strong. thank you very much. up next, shares of chevron falling more than 25% in the height of the pandemic as lockdowns weighed on demand for fuel that company will gear up for results tomorrow we'll llte you what to watch for that one mand other names, next. . t t , next an other names, next y other names, next (vo) while you may not be running an architectural firm, tending hives of honeybees, and mentoring a teenager —
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now to our wall street look ahead, data on deck, we'll get consumer spending and consumer sentiment tomorrow morning on the earnings front, after extra zen and mobile reporting results and darren woods on "squawk box" tomorrow at 7:30 a.m. to talk about results and demand for oil i'm most excited about colgate and clorox reporting because we'll see how much of the pandemic trends are sticking or maybe it will be like a kimberly clark and we hoarded so much on toilet paper we don't need to
buy more of it. >> we'll stop buying laundry and brushing our teeth. >> i still hoard the clorox wipes any time i see them on the shelves. >> it creates a good hadn't. for sure once again, it's been a group that has paid for the fact last year was going to be tough comps and they haven't done a lot this year it will be interesting plus oil big oil majors, the oil prices are back to highs but stocks are not back to where they were a while ago. >> they had a good week. who had a bad week, microsoft and apple down on the week, despite massive numbers. look at other rich stocks like tesla and they had a bad week despite the talk of amazon and facebook doing so well. >> it's very true. the pre-profit hyper growth stocks have not had a good run, tesla struggling under $700
again today. microsoft trading under after hours off the aws numbers. you're right, very much a push/pump. a lot of - push/pull. it's not just big tech but encouraging you can get winners like a facebook. >> indeed s&p finished up 0.7% out of time on "closing bell." >> i'm melissa lee this is split-finger fastball tonight's trader lineup -- tonight on fast we wrap up the biggiest day of earnings season, amazon and twitter all on the move, we will break down the quarter straight ahead plus a market crush today one trader says buy this pull back we'll bring you that trade later, a technical touchdown, chart matt master breaking down big bets on cryptocur and cannai