sales are not actually amazon direct they are third-party retailers, in many cases using amazon's fulfillment. it's not just amazon's platform alone giving some argument that this isn't quite as cut and dry as the treasury secretary presented. take a look in shopify it has a $36 billion market cap. that has tripled in two years. and its business is really allowing businesses to compete without being on amazon necessarily, though as part of the latform, you can also operate on amazon. don't forget about etsy. they have an $8 billion market cap. that has quadrupled in two years. amazon was competing directly with etsy. and you know what, they are still doing just fine. one area that has popped out for amazon anti-trustwise is again that third party retailing platform there have been some complaints that amazon has a lot of data about what customer demand is for those third party goods. can then use that against its competition that might be an angle that the feds choose to pursue but we haven't even talked about cloud, kelly you know, amazon has not really tied the retail and cloud businesses c

in terms of amazon, regardless of what happens this quarter it's not the end of the amazon story. in terms of azure, look, it was the slowest growth they have had in the cloud in the last three years i believe, but that's a -- that's because of the size of the base has gotten big, so i still think they can be there and still perform. i don't think the market needs to perform to your point, but i think they will perform. alphabet is the one that i'm worried about because they have had some growth issues even though the growth expectations are very muted, below 20% versus 26% we're used to i shaved a little last week. i own a little amazon. i'd buy more if that got crushed. microsoft is still there, and i bought a little more after the quarter actually i think it's much more predictable earnings stream in microsoft and more analyzable than amazon or the others so i'm happier. >> it was a first-quarter disclosure that have slowdown that really got alphabet, right? >> yeah. >> and that's partly why or a big reason why it's been a lagard compared to its big-cap peers? does the valuatio

so, i don't see them outspending apple or amazon. so i don't think original content can do it alone. what i have said for some time, i think they should invest money in buying an existing content provider that has a library and a fan base and some following, similarly to how disney bought fox. i think that is much more likely. the other thing that people talk about less but will play a significant impact in terms of time spent on netflix is the growth of ad-supported streaming services like pluto tv, recently acquired by viacom, and others. i'm a big believer in 2020 that netflix has to launch some sort of ad-supported tier that they can maybe feature the original content library on. emily: interesting. what will you be watching for on wednesday when the company reports? >> a couple of things. i will be looking more at the international number. i think that is an area where they have more wiggle room in terms of the first mover advantage. in those markets, they don't have these huge global international companies they are , competing

deidre. >> melissa, put simply amazon is spending more and earning less but it is amazon so it is a return to old days of growth over profit. one day shipping costing more than the company initially estimated. >> it does create a shock to the system we're working through that now, and we expect we will be working through that for a number of quarters but when the dust settles we will, you know, regain our cost efficiency over time. >> he added that the response to one-day shipping has been positive and volume has picked up also on the positive side, we did see top-line revenue growth pick up to the 20% year over year level some headwinds cloeing growth in cloud computing, facing more competition from microsoft and google remember, key is the race with microsoft for the $10 billion government jedi cloud contract e market expects them to have 9% of the u.s. ad market at the end of the year. on the regular torr regulatory, surprise here. they have a longstanding policy of not commenting on regulatory matters. when pressed during the media call he said that amazon's guidance does not include a

that disadvantages amazon. their shareases later in the season as consumers don't have confidence of getting there products on time like they do with amazon. that compressed season will be to amazon's advantage. was an analyst for the marketer. a tech giant visits the white house, the white house host the biggest tech companies to talk about fallout from the trade war with china and the ban on while -- huawei. this is bloomberg. ♪ emily: white house officials said they would send a delegation to china read by robert lighthizer after a high-level meeting in washington between the trump administration and ceos from google, broadcom, intel and qualcomm. the meeting was geared towards easing a ban on sales from china's huawei. >> i think this is a very dangerous meeting. huawei is not an independent actor. it is an arm of the chinese intelligence agency. us doing trust that business with them will not have negative consequences. i just read the washington post this past weekend and huawei was working with a shell

amazon. lauren: facebook said the ftc opened an investigation into them. this follows a settlement with the ftc over privacy allegations. facebook posted stronger than expected second quarter results, able to grow their user base, despite the investigations. cheryl: tesla shares, we're watching that stock in the premarket right now. the company's second quarter numbers missed the street's forecast. tesla said it is working to increase production capacity. the stock is down 10 and three quarters of a percent. also, the company said that they lost over $400 million in the quarter, despite record sales led by of course the new model 3. and then there was this, another tesla executive is pulling up stakes. chief technology officer jb strobel is leaving after taking in $30 million in share sales. lauren: more earnings today, southwest, american, 3m, durable goods orders, north korea firing two short range issues into the he sea of japan. cheryl: tracee carrasco has details. tracee: the missile fil

amazon is working hard to increase profit and to do that it needs workers they should be flexible and not too costly in the u.s. it's now become quite a trend for workers to camp in vans close to warehouses of online giants the w's all over sell it reports. the recreational the hey kill the r.v. a symbol of freedom. home is wherever you take it and were ever work may take you. to. a campground near an amazon warehouse in hebrew on kentucky is home to a round it doesn't work camp purse it's 2 pm time to get up for robert barker he works the night shift. with morning good morning robert how you doing and. how was your shift it was great ok yeah easy money man you know basically robert you have your whole life inside that van yeah i've been living in my van for 6 years now. working seasonal work for amazon and i've done some also i've worked a job in alaska salmon cannery have worked there and beat harvest and. amazon has been really good to me and it's really easy money and allows me the freedom to do what i want. robert is $46.00 he has no partner no children and very few expenses amaz

today. >> shares of amazon in the premarket trading slightly to the upside amazon of course wrapped up the prime day and some shoppers complaining because longer than expected delivery times because so many orders flooded the site. a data company said the internet searches for canceling amazon prime or 18 times higher on monday. that suggests that some customers just want to snatch up some discounted items without making that long term long-term commitment to amazon and the annual fee. he apparently is celebrated at the close of prime day by standing on top of the amazon spears at the company's seattle headquarters. >> the stock is up $2,000. if you only knew that when. you could've bought some. when it was under hundred and i did it. let's look at the dow and s&p and the nasdaq. weave green arrows. nasdaq up 18 and half. they trade jabs over healthcare. are they trying to woo one of the biggest fans. as i going to work. in the economy may be booming. details coming up when "fbn:am" returns. [music] this is the couple who wanted to get away who used expedia to book the vacation rental

amazon tweeted it was the biggest 24-hour sales day in amazon history, at least day one. we are still waiting on final numbers. there were some shoppers complaining that they were seeing technical glitches. there was a spike in searches -- spike in service for canceling amazon prime. so, presumably some of those people bought some things and wanted to cancel. what is the verdict so far, 36 or so hours? brad: sitting back and watching prime day, you have to marvel at what a marketing event they have concocted out of thin air. they created a holiday season in the middle of the summer. a holiday season brings with it a lot of problems. you've got porch pirates. you've got disappointed customers. all sorts of things, the frenzy. overall, you have to sit back and admire the company for bringing itself to a peak season in the middle of the slowest time of year, right? they have created a frenzy where otherwise it would not exist. they not only have done it themselves, but brought the rest of the online retail industry with them. you see everyone else offering sales as well. can

what does this mean for amazon then? spencer: it is tricky news for amazon. they have enjoyed rapid prime member growth. once they lock in a prime member, they can count on that for more sales through the year. the typical prime member in the u.s. spent a little more than twice as much what i nonprime member does on amazon. prime, even though it is a big tale of deals, the revenue they make is not as important as a new prime member sign-ups because that is where the revenue keeps coming year round. the indication that people who were not prime members are simply joining for a brief period to get the deal and backing out is bad news for amazon's prime member recruitment strategies. paul: what are people buying anyway? some of the purchases do not sound terribly glamorous. spencer: it is not much different from previous years. big emphasis on amazon's on gadgets like the echo speaker, fire streaming stick device, e-readers. it is typical from previous years. some kind of lingering favorites like the instant pot that is selling well and some laptops and electron

amazon web services is the most profitable bit of amazon, it's what allows them to enter and dominate other markets. so if you think such a massive contract is effectively a taxpayer bailout to jeff bezos, so what went on in those meetings? well, a recent federal lawsuit by another company who wants the contract claims amazon secretly negotiated with a then-dod employee, offering hem a job -- him a job, stock options and even a signing bonus to come and work for amazon all while he was working on the jedi program. unbelievably, he did not even recuse himself when he allegedly received the offer, despite the government regulation that bans this exact kind of conflict of interest. none of this is a surprise when you realize just how swampy amazon is. look how many senior executive branch officials, some of whom were literally responsible for procurement, recently left the government and spun round amazon's revolving door. not just deep ubi, but also christine halverson, scott renda, victor gavin, raul prabakhar, on and on it goes. and then there's the lobbying. amazon spent $14.2 billio

guy had amazon as the bad. facebook is good so my good would actually be amazon my bad would be facebook which makes a good "fast money". here's why amazon is good. they focused on profitability over the last four or five quarters much to, i think, at times disappointment because people were finally looking at this company as a growth company that stopped growing how do you have this multiple. ultimately i do think they will start to give you north of 20% neutral growth and i think that's really the issue. when i look at facebook, despite the fact that it's been and maybe because of it's been such a great run for the stock the realities around the regulatory environment the libra coin is not a game changer for them revenue wise any time soon their expense margins continues to go through the roof that would probably be my ugly if it wasn't for google which i do think is a great company and agree with karen the problem with google right now and what makes this quarter ugly not the company and not the valuation, n

one survey shows amazon shoppers prime members spend more than double what nonprime amazon shoppers spend in a year.ay primes not just a big day for amazon either. it has created a halo effect for rivals. ee bay, walmart, target, macy's, best buy and many others have competing deals. in fact, target saysri day 2018 was one of its biggest digital days of the year. this year adobe analytics predicts large u. retailers could see sales surge 79% compared to an average monday or tuesday in july. and if amazon site crashes again this year, like it did for hours last pri day, that opens up even more opportunity for competingai rrs. for "nightly business report", i'm courtney reraan. >>> oe loses out on a government cloud contract, and that's where we begin tonight's market focus with a judge dismissing oracle's allegations that the pentagon's bidding process for that $10 billion cloud computing contract was tainted by conflicts of interest. what this means is oracle is now eliminated from the process, leaving just amazon and microsoft to compete for that contract. oracle shares were down a fract

taylor: every time amazon enters the market, people get nervous. we call it the amazon affect. to be fair, these brick-and-mortar companies have done a very good job. target, walmart, of adapting. even when amazon came to the grocery business, walmart stepped up their game with online grocery delivery. what it can be said about these brick-and-mortar companies adapting and still hold onto their market share? jordyn: it says they still want to be in the game. they realize the game has kind of changed. their calculations have changed. but, when people think of going places -- you want to walk in, see things, have that excitement. the walmarts and targets of the world have able to maintain that excitement around back-to-school. prime day is not a real holiday. they are just competing on a fake holiday but they can also play that game too and manufacture some fun discounting days as well. taylor: we are in a whole new world when it is july 5 and we are talking about back-to-school. i just got my summer started. that was jordyn. if you missed the boston pops july 4 fireworks spectac

amazon spent more on shipping to ramp up the amazon prime service. the first time in two years that the company has missed earnings expectations still, stock is only off by about 1.5% 19.44 is the last tick >>> google parent alphabet beating estimates on the top and bottom lines for the latest earnings report. that's giving the stock a big boost. it had continuing dominance of internet search and that stock is up by 8.2%. you heard what mark mahaney said here washington doesn't matter what comes into this. it's additional taxes they have to pay frankly, that's what the stock is reflecting. many of these stocks are reflecting that. they don't think -- >> the fine is now a tax >> where does it go though >> the money the tax? >> well, actually, i don't really know where taxes go either but the fines -- all these fines, where do they go? does it ever do any good >> they do a couple things they oftentimes pay for some of the enforcement action -- >> here's $5 billionto do an investigation -- >> if you have a department of justice, you have to pay these la

amazon's popular prime day starts today. the shopping frenzy has become so big, analysts expect $6 billion in total sales over two days. days. >> reporter: it was a beehive of activity inside the amazon fulfillment center in new jersey, expected to get a lot busier on prime day. prime days. monday and tuesday. it begins with a customer placing an order that sends a message to the fulfillment center, a robot goes to work. >> i use the analogy of a rumba, a robotic's drive, it knows where to go to pick up the right shell before the item that the picker needs and brings the system to the associate that's picking. it knows where to go because its that white stickers on the floor that is showing a grid pattern. >> a person called a picker greets the yellow shelving unit and takes out the item. >> the picture comes up on the screen and tells me what bin it is going to be in, i grab the item and place it in the bin, place in the correct tote, confirm and send it down the line. >> reporter: a few clicks of the mouse and a trip throu

es pagar a travÉs de amazon, de esta manera si no recibes el producto, amazon te responderÁ y podras tener un reembolso, si tienes problemas o sugerencias llÁmanos o envÍanos un correo electrÓnico, respondemos a cada llamada y pregunta. >>> hay que tener mucho cuidado porque a los correos siempre estÁn llegando cosas que tratan de llevarse tu dinero. >>> le voy a contar que en amÉrica airlines se estÁ extendiendo la cancelaciÓn de vuelos de el aviÓn boa en siete tres siete. >>> accidentes registrados por oval fallas tÉcnicas han generado dudas en la flota. >>> vuelve incrementar el precio de la gasolina luego de caer 24 sentad centavos en la Última semana. >>> nuestro noticiero de las seis estÁ a punto de comenzar. >>> vamos a hablar sobre el miedo que estÁ sembrando estas posibles redadas en el Área de la bahÍa y algunas familias que dicen estar mÁs unidas que nu a nunca. >>> vamos a regresar en mdos minutos con >>> feliz lunes, gracias por su preferencia. mÁs golpes a los inmigrantes en la frontera. se anuncia una nueva regla que le quitarÍa derecho miles de migran

we have, right now, 20,000 miners in the -- northern amazon. that theyjust feel have a partner in the cabinet in brasilia. before, and the v very first day, the very same day when the wajapi leader was murdered, the president said he would open indigenous lands for mining. , what they expect activitity point, the will be e legalized, some sort f formalized, so they will be able to stay there and remain there, doing the activities, and unfortrtunately harming the environment in the indigenous people. in terms of the impact, of course, the amazon is the home of the highest percentage of forests, and chopping down trees and forests at the speed we are this masss in extension of biodiversity worldwide. inthe speed of destruction the amazon helps that, unfortunately. but we do not lose only the biodiversity. the forest is very important for local people, not only indigenous people. we have local communities that depend on the forest for their livelihoods. they extract their natural products from the forest, they good so they have a environment for k

amazon did miss on earnings, revenue was ahead. first time in five quarters that amazon did not post a record profit, taking a hit from shipping costs the thesis on amazon's print is that they really care about one thing and that is increasing gmv and getting it to people quickly. >> so the cost rose 36% on shipping that was a big jump from the 20% in recent quarters moved to one day shipping. they said they saw better customer response. revenue growth of 20% was better than expected. so investors are going to have to decide whether that top line growth was good enough 37% aws, that's the cloud revenue growth was, i guess, a little light, a little lighter than it has been first time under 40% but it still is the dominant player here in cloud. >> by far, doing $8 billion a quarter now what we know from alphabet is $8 billion a year run rate for their web services or cloud-based company that's accelerating, though. listen, the standout thisalphab the standout in the early going here, re-establishing the fact they can do above 20% whe

stocks, mostly amazon. so this is a play, just so viewers know, this is really a play on amazon >> it is it is. when you take the three products, you multiply the holding of amazon by three so you get a significant exposure to that stock which in the short-term has done quite well >> that is want. what is need >> need is consumer staples. >> toothpaste? >> exactly >> paper towels. >> that defensive play like cycle performer play. it's the consumer is going up sort of holding back but they'll keep buying toilet paper and toothpaste so you have the full staples a good balance sheets, good net income and dividends they don't pop as much lower beta to the market >> we have netflix earnings out today. netflix is a name everybody knows. a lot of people out there may have invested in it. what products do you have that would highlight a name like a netflix? if you're going big -- these stocks can move big. rolling the dice in a big way, is there a way to play netflix >> 3x communications is tak, you get exposure to

how much of that growth is driven by amazon web services. that's one part of the business that is a huge focus for people. it seems to be less about the retail operations, nmore about growth and cloud >> when you talk about profit, that's certainly the cloud that's amazon's profit engine that enabled it to make so many risky bets and go into new businesses interesting over the last few quarters, we're talking more about advertising. it's in the other revenue category it's been growing very, very quickly and taking on, you know, the duopoly that is google and facebook so it will be interesting. that's a high margin business as well we'll see what happens there we can't get away without mentioning regulatory scrutiny amazon typically plays it quiet. doesn't respond or talk a lot about this i wonder if they can get away with it this quarter with the scrutiny ramping up. >> deirdre bosa, thank you very much >>> joining us now is joel kalina, head of technology and media training over at web bush securities we heard what happened with regard to a

amazon is the enemy? before microsoft, before amazon, seattle in the '80s was a dying timber town. there was no wealth there at all. microsoft came, amazon came, they created the wealth. they created literally millions and millions of millionaires. now as you're seeing just in fact how mobile money is and the more difficulties administrators and bureaucrats make it to create jobs because seattle's minimum wage is just one example, more money not just leaves seattle but leaves america writ large. >> the positive is that the reporter said it only at the end, they are going to bellevue and will create a 40-story plus building over there. they are still focusing on washington area. to add to all of this, apple, just within the past two weeks, announce they hare doing this five-year expansion plan in the united states and specifically within seattle, i know it's not amazon, but apple announced they would be adding 2,000 jobs. hopefully that could offset some of the loss from amazon overall. i still think it's good. you have amazon investing in bellevue, they will build a light rail syst

can amazon still deliver? >> it is a good question and ask gibbon founder of nonpolitical news diagnostic and chief research officer, at ace research as well as a retail analyst thanks for joining us ladies. >> thanks for having us. i want to start with first of all did you buy anything today and do you think this a.m. disoon prime day is really going to -- stack up how it is supposed to and how it has in years past? >> you know as a new mom or gave birth about a year ago, you're certainly on amazon prime all of the time. so i'm constantly buying stuff on amazon prime for the kids, however, i think because people are -- they really push this marketing message out there so what they're trying to do especially with new prime members are people that aren't prime members yet. they want to make sure that that membership increases. so you know they have this amazon prime concert, they're really trying to go and kind of take market share away from the target customer through wal-mart mirrors. so there's that big push

>> yes, today and tomorrow, amazon prime day, lots of deal on amazon really a lot of those amazon devices that we will see mark down, the fire, kindle, all of that, but, of course, you have to have amazon prime membership to take advantage of those prime deals, but there are some other retailers getting in on that action, they've got 2 days of deals as well, running exactly the same amount of time as amazon sales, they are pushing the fact that you don't need a membership to shop on target's website, wal-mart also deal, they've got 4 days of deals starting yesterday through wednesday, so really we are seeing this mid-july shopping spree for consumers out there looking to take a look at deals and websites now. heather: competition is good, well, the time now is about 46 minutes after the top of the hour and they are facing thousands of lawsuits, now johnson & johnson on doj investigation. mothers using tainted powder on their children, dr. mark siegel is here to break it down for us. >> good morning. hh. ooh ohh here we go, here we go. you got cut off there, what were you saying? oooo. oh

it could be amazon amazon has made a lot of enemies. there are a lot of complaints about they're blocking access to the marketplace, unfair picking of winners and losers when it comes to their marketplace. >> okay. >> day of the week it's what's been tweeted lately and which politician wants to pick on whom. >> we have to leave the conversation there it will continue though. thank you very much, guys. >>> still to come, the stagecoach is ready to roll. wells fargo results are next by the way, here are the futures right now. take a look at what's been happening after we've already heard from three dow components. dow futures picked up. we were in negative territory down by 25 points. this morning at 6:00 a.m we're indicated up by 35 points. s&p futures up by 2, the nasdaq up by 3 and "squawk box" will be back [ dogs barking ] what about him? let's do it. [ sniffing ] come on. this summer, add a new member to the family. hurry into the mercedes-benz summer event today for exceptional offers. lease the glc 300 suv for just $419 a month at

. >> amazing, amazon versus walmart as the retail giants battle it out for your hard earned money as amazon prime day is underway. >> i think trump's message excludes people that look like me and that are me, of course, but it excludes a lot of people in his base as well. and i think that he's trying to divide so he can conquer, not unite so we can all conquer. >> anything he can do -- >> that is not all megan rapinoe said "early today" starts right now >> good monday morning i'm phillip mena >> and i'm frances rivera. great being back with you again. it's been a couple of weeks. >> sure has. everybody -- it's hard to leave vacation, right? but when you love your job as much as i do, makes it a little bit better >> well, glad to have you back >>> we begin with communities under water, coastal ones, as tropical depression barry churns over the south floods putting people in louisiana and six other states as barrnt battle wn the coast guard rescued 12 people left stranded in flooded homes. kerry sanders is in louisiana with the latest. >> reporter: good morning, frances. the flood wate

exhibit a, amazon. it crossed the trillion dollar threshold this morning amazon didn't become this unstoppable behemoth because jeff bezos is brilliant, which he is. it got here by leveraging scale. amazon is dominant because it's so big they use that scale to get better price from the suppliers to pass on to you. we have antitrust law because when you get big enough, well, no one can compete against you bezos saw how he could use amazon's scale to dominate retail he didn't stop there he figured he could do the same thing by creating cloud computing. aws one of the largest businesses growing at a 40% clip we had the head on the show recently, he told us how the position scaled which is the dominant player in the cloud which is true. it allows them to innovate and keep prices down and compete with the competition i urge you to look at that interview. i thought it was mind blowing. i thought to myself, darn it, that guy is real smart amazon also knows the secret to maintaining scale is keeping work force

if it goes onsale, amazon is actually going to alert you. if you're not a prime member, keyou can still ta advantage of the deals and you can sign up for a 30-day free trial but don't forget to cancel it about the auto renew.omes up back to you and happy shopping. >> i need someone to go through know prime and let me what i need to buy! go through it all! >> bingo. what do you need? >> yght. >> -- that is the whole thing. i don't need anything. >> you feel like you have to get it! >> that's how they get you! >> they also get you because as susawas just saying you sign up for 30 days and if you don't cancel it, you have to pay and how i did it an four years later, i'm still paying the fee! >> one day delivery is a life changer! > you can't beat it. rain, snosh se, they are always there. >>> good news we are dry out there the next couple of days so if you have that amazon prime membership it might be all righf or tuesday but wednesday we are watchingyarry but definitel thursday we will see some rain o pushing in the area. a beautiful morning o

. >>> and on prime day, amazon's biggest event of the year -- >> amazon! >> why some made it a day of protests against the retail giant. >>> this is "nbc nightly news" with lester holt >> good evening. president trump's message, america love it or leave it. doubling down upon harsh words to four liberal democratic congresswomen, all women of color, all american citizens, whom he told over the weekend to go back to their home countries. a demeaning phrase often used by racists. today the president brushing off the storm of criticism his words created, but not letting it go the four women targeted by the president speaking out just a short time ago our hallie jackson has late details. >> reporter: a united front late today from the freshmen democrats attacked by the president as he fans the flames of racial resentment >> this is his plan to pit us against one another. >> this is a distraction, and we should not take the bait >> he does not know how to defend his policies. so what he does is attack us personally, and that is what this is all about. >> i urge

what it calls amazon's bad behavior. several groups including jobs with justice san francisco plan to protest outside the company san francisco office on market street. >> it has to start, it's monopoly power, that takes the form of using warehouse workers which many are immigrants, short of abusing the public and using its technology to facilitate the targeting and deportation and separation. >> reporter: holland will be among the protesters plans to deliver a petition. in nine cities across the country for time prime day. >> amazon is a company that does a lot of things and one of those is called amazon read services and another it is developing his facial recognition technology. >> reporter: he says protesters want amazon to and contra with i.c.e. warehouse workers in minnesota also plan a six hour work stoppage at strike over working conditions. protest at amazon seattle offices and in other major cities are expected tomorrow. we reached out amazon for comment and have not yet heard back. in berkeley, betty yu, kpix5

amazon restaurants. immediately grub hub stock caught fire and multiple analyst told us this is a major positive they are looking for after all, if you can out last amazon, got to be in great shape. stands to reason not so fast. i think the buyers are getting ahead of themselves. they were never a major player to begin with. one less competitor, of course they still got plenty of other rivals and frankly, you can read amazon's decision not so much as they gave up but how about this? as an indictment of the whole industry you have to remember grub hub's margins are under serious pressure for sometime and spending a fortune to fend off door dash, post mates and everybody else that piled in the business that's not a good sign, people in april we stopped by grub hub's head quarters to give the ceo to tell his us side of the story and willing to talk. i asked him if all the ad spending was worth it. here is what he said. >> so you think about it this way. you know your ltv, lifetime value of your customer onc

can we say that prime day is doing what amazon wants it to do >> yeah. i think in certain ways amazon is winning i think one area where it really does have leverage and what shineses through on prime day is its massive membership base. that's this loyalty aspect of the prime membership, these people that pay $119 a year to get things like free shipping and whatnot. walmart can't compete with that. there's pros and cons to being paying prime member. we see those shoppers on average, a prime customer, they spend more, so that's very valuable to amazon i think those are the people that are really turning up over this 48-hour event, those paying prime customers. >> those are paying prime customers. what about people new to prime will this get more people to join up? >> amazon for the five years they have done -- this is the fifth year of them doing the prime event. each year they said we added more and more paying prime members. they use today as a tool to add more and last year was the first time the company disclosed how many of those members they have, wh

is it going to be a net win for amazon >> you know, we think it will be obviously amazon is showcasing not only great deals, they're showcasing their music they've been spending all week showcasing whole foods they've built a big infrastructure around this prime day, and we think it will be very successful for them. >> is there any indication that this drives new consumer spending, ed, or simply, well, i need a pair of jeans in a month so i might as well get it now because it's on sale and it's kind of a zero sum game. >> we think it does drive new business it creates that spontaneity, that need to buy now and people obviously tend to buy stuff they don't need. ultimately, you know, this is a very quiet time and we think this drives incremental sales across all of retail. >> you've got a $2,100 target on amazon obviously we're optimistic does this matter for amazon? do these 48 hours or so matter to the stock, or is it just part of a longer term, more macro trend? >> i think it's more of a big macro trend, but i think the big fly away with amazon is emphasizing to people it's important

>> yes it's 8 billion for 36 billion at amazon which is why amazon going to 37% aws growth isn't that big of a deal it's large numbers microsoft is 17 billion. >> being third in a business -- >> is okay. >> that's one. two i think a lot of the street were thinking more like 6 billion for analyzed cloud revenue and google is on an 8 billion run rate, ahead of expectations 40% growth in quote/unquote other. so 40% of the revenue comes from advertising and cloud and now you have this other unit with some of the bigger bets they have made starting to surprise to the upside. >> you own it you said. >> um-hum. >> i own it too. >> own it. >> do not own it. >> would you add >> everyone owns it. everyone in america owns it, it's one of the biggest holdings most people are in an index or an active fund tracking an index. so i think it's good for the markets overall to have a company like this where expectations were low come along and say we're not going anywhere, we're still google, still alphabet. >> it's a huge name. >> it's 3% of the s&p. >> right. >> would you add it, absolutely. >> why wo

. >>> amazon's second quarter misses on the bottom line as its profit streak comes to an end sending shares lower in extended trade. >>> don't miss our interview with renault's ceo as the french carmaker cuts its full-year sales guidance on a degradation in demand. >>> no clear direction so far in european markets after that key announcement from the ecb about forward guidance, the introduction of quantitative easing down the road and what seems to be an almost certain rate cut in september in terms of the individual markets across europe, though, you can see the four major indices in europe are trading slightly higher. the ftse 100 in london about a fifth of a percent higher. similar story in germany we have huge amount of earnings going on at the moment the cac 40 is slightly above the flat line. in italy, where we've been hearing from the two deputy prime ministers about the future of the economy, you can see the ftse mib is in negative territory. media performing well as is telecons technology in europe bouncing slightly higher, up 0.4% the retail sector often facing some challen

amazon is upset because they want a piece of the contract >> what is their beef with amazon here? they're too big, they can't do it >> they feel they had an unfair advantage. >> that's the origin of the issue here let's turn to the earnings and we'll come out later today what are you looking for >> well, it's the cloud. >> azure, right? >> they are moving the customers hardware into the cloud. we're looking for that to continue the cloud continues to grow. the legacy business is seeing a one-time upgrade because of end of support, windows 7 one of them a quick migration as a result of that we're looking for a very good quarter with microsoft >> that will pull forward? >> only 4% or 5% of sales. they're going with a 10% tax instead of 8%. that will help. >> when you look at microsoft, what sort of growth -- if we're assuming cloud is going to grow and be a bigger part of their business, what kind of growth overall in revenues are you projecting and what kind of margins will we be seeing? >> so cloud has been historically a lower margin business they cannot hire the people to keep u

amazon changed everything. they changed it for the better and the reason, they stayed on top, because they have been able to continue to innovate. ironically, that's a risk for the stock moving forward because in order to maintain that valuation, they have to keep innovating. that's one of the reasons you are seeing, for example, amazon now enter the real estate business. this is the number one risk for these companies moving forward. lack of innovation and even more acutely, government. i got microsoft from 1999 to 2016 under the antitrust activations from the federal government, the stock was stagnant. only a government can hurt a company like that. >> you love government, don't you? >> investors certainly don't. >> to add on to your point, if you are looking at the numbers, when you talk about amazon's web services, you saw deceleration, she made the comparison to microsoft and how much growth they had but microsoft also had some deceleration, too. overall, that is what drives a lot of the profits. there was

>>was on actually sells amazon web services which is a technology. it's a data platform that allows it ice to collect data. target people and then deport them. >>they also claim amazon has attempted to sell the feds facial recognition software. >>which can also be used to target people in a really and face it, it's scary when the protesters are stopping short of calling for a boycott of the retailer. but say they do want to raise awareness with their consumers a lot of people don't know that amazon is working with ice in this way we want to raise the profile and say you know there's many steps that we can take to support the immigrant community which is being targeted but this federal administration say we demand the amazon to the right thing they certainly have the profits to be able to make better choices. we reached out to amazon about the activist claims that have yet to hear back. but they've reportedly responded to other media outlets saying in part companies and government organizations need to use existing and new technology responsibly and l

with the tax you could hold of the huge amounts of money that the likes of facebook and google and amazon and the like are making out of non—american companies. it is all coming together. it has been a long—standing problem for these digital web—based companies and they haven't got much infrastructure in oui’ haven't got much infrastructure in our country. they generally have headquarters in places that are somewhere like dublin with local fresh and tax rates and we don't see much if any of the tax revenues. for cbr earning hundreds of millions so it's a bit of a scandal. the only problem with what is going on here is that it will look like a direct attack on american large companies like google, like those amazon and so like google, like those amazon and so forth, you do worry that this is going to start some kind of trade war because it does seem quite apparent that president trump isn't averse to putting up tariffs if he feels in any way a tax like that.” think that made the point of, do that and it will be tariff. there will be a price to pay. the other point being made by t

. >> nobody knows amazon like brad. he is the person to dig into jeff bezos's next attempt to slice into retail. uber might want to take a page out of jeff bezos ' book. carol: this is bloomberg businessweekcarol: ♪. jason: welcome back to bloomberg businessweek. i am jason kelly. carol: i am carol massar. still ahead, businessweek talk. solutionus, a special section called prognosis, meeting health care issues head on. carol: it has been 15 years since the first moon landing. how we got there. jason: we begin in the features section. the company that reinvented retail are not done. this is called amazon go. major cities in america, you may understand it. we went to the guy that literally wrote the book on amazon and bezos. >> there are 13 of them now. san francisco, seattle, chicago and new york. they are adding them slowly. it is best described as like a convenience store where you can pick up lunch or breakfast, a smattering of grocery store items. the big innovation and the reason things -- amazon has been working

we have seen companies -- snapchat went public and migrated from googled amazon. -- google to amazon. as long as you can migrate, i don't think there is a risk. caroline: what about the regulatory viewpoint we are seeing from capitol hill on amazon and google? is there a risk of them being so intertwined with the rest of the tech ecosystem? >> possibly. on regulatory risk is something that has become a major investor issue across technology. we just posted a call earlier today with an antitrust expert to talk about the risk of these platforms. particularly google, but also amazon and facebook. i think the chances of these forced to divest assets is extremely unlikely. i think government regulators would be very low the two unwind that. i think it would be hard to do that. looking at fines or changes that are modest at the margins. one quick comment, on the presidential democratic debates. big tech did not come up at all. except for the one time it did was some concerns over whether amazon is paying its fair share of taxes. the issue of google or facebook, that didn't come up, and that

that's a big part of why we're as positive on amazon as we are. a lot of those store closures are happening in apparel, department stores, and footwear. all areas that benefit stitchfix. so to the extent that you live in a part of the country and you're losing access to a lot of your apair options, stitchfix actually becomes pretty powerful we've also done a really good job recently of launching new products around men's and kids we're launching in the uk. and their algorithms, the underlying piece of it that makes sure you get what you want has also gotten better >> you mentioned amazon. how big of a deal will prime day be for the country next week >> it's a big deal from a marketing standpoint and a customer acquisition standpoint just to drive some attention in terms of numbers, it doesn't really -- one day is not going to make it or break it for amazon more importantly for us is the fact that they're putting $800 million into same-day delivery, which means you're going to be getting your products faster, it opens up a whole new part of the wal

amazon is describing this as one of the biggest investments of its kind. that iscts a company between the tightest labor market and have a century and a political pressure on amazon from figures in both parties. and rising activism by amazon employees who are not content with the conditions there now. amazon is always in the crosshairs for putting retailers out of business. how much of this is getting ahead of some negative publicity or catching up to political pressure? is trying to position itself as part of the solution. amazon would say that they are helping employees who want to rise into other positions within warehousey, including workers who want to do other things. and workers who may want to move on to another type of job somewhere else. they find working at amazon more attractive if the career ladder is made that much easier to climb. that is how amazon is describing this. they are not saying this is about automation. will beainly it perceived as an part about how jobs are changing and the need to prepare workers for tasks that this company and

amazon 2nd quarter profits were up 3.6 percent to $2600000000.00 amazon sales jumped by 20 percent as customers flock to its one day delivery. our markets correspondent was san luis joins us now from was st louis so 2 attack heavyweights 2 closely watched quarterly results what stood out to you. a couple of things that you know it's a case that not only did company b. done revenue on their names for sure but have even lowered costs that leads to where a spect in these represents the payments google makes it to companies like apple for example for its search engine to be the default browser all devices also welcome by its investors $25000000000.00 buyback program or no amazon no good the reaction though you know one day shipping costs seem to be helping sales but reducing deals will continue their current quarter also it's a business that disappointed with revenues growing all the 37 percent this is the 1st time over the last 5 years 10 for the most lucrative recorded world below 40 percent on all the store side despite continued promotions at whole foods new openings obama so go with

mark, you focus on both amazon and google. from the blessing side, do you see it as a good element that these companies have so much riding on them, whether revenue or from their future revenue stream? mark: there is good and bad. the benefits of cloud computing is that it allows startup companies to avoid a lot of infrastructure costs. you can treat those as variable costs rather than large fixed costs. you don't need to buy and build up a very large i.t. department to scale up a business. that has been the magic behind aws, amazon web services, also behind microsoft azure and google cloud. in many ways, what they are offering is a real benefit to these companies. there's no doubt that in order to scale up on the internet, you need to pay one of those three cloud providers. and then if you are a consumer and you need to get consumers to use your service, get to know you, you will probably be spending money with google, facebook. probably just those two. that is how you get brand awareness on the internet these days. i don't k

of these other businesses that amazon hasn't been successful at advertising. can amazon continue to be as innovative and go into as many businesses, guloseri rgrocery, o >> jason, am i a horse's ass don't answer that question that's a separate issue. you see where i'm going. you can look wback at media companies, conglomerates over the ages, and see that history tells you they rarely stay in tact zpl it's a fair point. there are you know all these software analysts would love for that to happen >> you bet >> aws business and we would be kickoffing the retail. the e commerce side. amazon, we think is going to try to keep their business in tact for as long as they can and remember, netflix got the first competitor walmart, early customer. big competitor, so until you start to see a netflix, a walmart say you know what, we are not doing business with this xwaen, then there's what would be the other reason? so we don't think it happens in the investable future. at least right now >> see you after the bell. >> one tiny issue with your idea these are founder control