♪ >>> we have netflix, amazon. some have said their best position to respond, we'll see what happens >> they've been trading along with the other names the cloud. >>. >> we'll see what happens in the latter half of the suggestion. let's get to sully and the half. >>> thank you very much. have a great weekend i'm brian sullivan in for scott wapner after a big january, can stocks keep rolling right into february >> the bulls breakthrough the ice. wall street is on again. >>> energy and industrials leading the way so far in 2019 both sectors have big news today. earnings good enough today to lift chevron and exxon mobile. on the industrials side, respected analyst stephen

anger over amazon. protesters in manhattan set to go under way businesses and real estate stunned by amazon's decision was it time to crackdown on corporate welfare. all-star interview, adam silver will join us live. we have a slam dunk edition of "power lunch". it starts right now. >> welcome to "power lunch". i'm tyler mathison a strong rally on wall street. the dow up more than 300 points. nasdaq breaking above key technical levels on track for its longest winning streak since last agriculture transports aiming to close above their 200 day moving average for the first time since december 3rd and on track for their seventh positive week out of the past eight let's get to dominic chu, tracking the action from the new york stock exchange. >> like you said a 340-point rally so far on the dow. what you got is optimism over trade than idea that perhaps some of the concern about global economic growth is at least waning for a tiny bit. let's take you through some of the big movers in terms of points on the

>> right now we're working with amazon this product itself is amazon lex based. and what we're doing is attacking what is the largest, we think the most pressing problem in america and health care today, 180 million people with chronic conditions. and we'll use any technology to make it easier for those people to stay healthy. that's where the challenge is in the health care system for people today, despite all of the technology it has been more confusing, more costly, more complex than ever before we want to use technology to make it easier. >> you say that they're sorting the signal from the noise. explain for viewers how this is tirch. how the technology will nudge people to pay attention to the right signals, maybe give a sense how your own son's type one diabetes inspired you to pursue this path >> well, there's a lot of questions in there my son sam was diagnosed with type one diabetes and i was amazed how hard it was, how hard we made it for people to stay healthy. i wanted to use my background in software and technology to start a company to make it easie

so amazon was important. facebook to me, i was looking at intel. i'm always focused on the semis in general they're very much global -- truly global players they are often forward indicators of global growth. they sell to all countries so for me seeing the improvement outlook from some of the semis it was so negative for most of this year. finally seeing some positive news come out of the semiindustrsemiendu industry they have become a proxy for u.s./china trade talks and trade relations. the semiconductor etf is already back to all-time highs off those. >> yes >> you spoke about looking forward. are there earnings reports coming up in the next week or two that you think you will be hyper focused on because it could provide more of that thesis on global growth or the health of the global economy >> finishing up the big industrials coming through next week and i would say facebook being another one that will be a big one. and though google had a good report, i'm still concerned about the regulatory overhang that they have any of those companies, how

amazon has a new business where they're venturing into health insurance. now, the thing about this, they track you over long periods of time they're tracking mouse movement, they're doing all that stuff they're going to know from your mouse movements if you have a neurological problem before you do, right? if all of a sudden mouse movements are slowing down, getting more erratic, they know that who is their customer in that. are they going to call you, say we think we need to see your doctor or go to the insurance side, raise your rates or terminate your insurance i don't know i think we ought to know the answer and soon. >> you're not saying they're necessarily better stewards of our privacy and data >> i would say they have been -- that the impact of their behavior has been less dangerous to this point, not to say we can count on that going on he promises that he is only recording things after you say hey, alexa what's to stop some enterprising product manager at some point, that's what everyone else has done. >> remember the story about alexa thinking s

was an amazon tablet. that's an amazing business and one we continue to invest in and we're really excited about. >> i'm trying to figure out how -- what business to compare alexa to it seems like a search business if say google mostly monetizing search by selling its own product. is that the way to think about alexa's role in amazon's business is its getting people's intent and pointing them towards things within amazon they want to purchase? >> i think the long-term goal was to try to invent the star trek computer. i grew up watching it and loved it and it was a lot more innocent than you might make it out to be. can we invent that computer. we loved watching it the science had moved up enough and you see it a lot here we thought we had a shot at it. it's going to take us years if not decades more to get to the shining star that is that star trek computer. but we think we can do it. if you have that in your house or in your car or in your conference room, you're going to find all sorts of things to do it

he says amazon works with his company to make free one day possible >> amazon provides the routes for us, depends on the volume and who is ordering what, then they give us the route for that day. the system keeps our drivers in the same area, same route. not the exact same, but really close, so the drivers know the area and can be efficient for that >> reporter: amazon vans making the majority of free one day deliveries, seen as a growth driver u.s. prime usage is expected to increase 5% by 2021. crossing more than 50% of u.s. population over to you. >> frank holland with a great look inside. i am reading through what frank is describing and showing us in the logistics to cloud we talked about the "new york times" story yesterday, they have so much control what happens within the cloud, how transactions happen, third party delivery, same thing is this just amazon spending so much money up front to then get to call the shots on how, whether it is digital or physical, how things are delivered? >> yeah. i mean, absolutely they've got, they're dominant in one sector, in retail, incredibly

>> reporter: hey, jon, it was close, but amazon edged out facebook for that top spot amazon web services is locked in a fierce battle with microsoft over the pentagon's $10 billion jedi contract. amazon spent $4.15 million on lobbyists in q2. facebook, $4.11 million. it was very, very tight. facebook has also faced some tough questions from policymakers about deep fake video and the launch of its cryptocurrency, libra. both of those companies appear to have set quarterly records for lobbying dollars third was alphabet, google, which was the top spender last year overall and actually decreased the money it's dedicating to lobbying from $5.8 million a year ago in the quarter to nearly half that amount last quarter. this amid reports that google recently fired several longtime lobbyists. microsoft and qualcomm rounded out the top five their spending on issues like data security, internet privacy, and competition as government scrutiny on those topics intensifies. during the quarter, top tech companies like facebook, amazon, apple, and google were also in the news about potential government

37% to 53% from peak to trough amazon just amazon. but in december of 2017, i recommended the auto parts group their stocks had become too cheap to ignore. since then we've gotten phenomenal gains even though the company has recently reported what was widely viewed as a disappointing quarter, i thought the stock was absurdly cheap, selling for less than 13 times earnings plus management roland out an extension of a long-term buyback part of an amazing history that i have to talk about later because it's so huge how has auto zone done since then i circled back october 1st before the whole stock market fell off a cliff thanks to an overly hawkish federal reserve nevertheless, auto zone stock has kept chugging, up 21% since i told you to stick with it 5 months ago while the s&p 500 has lost 5% over the same period and you know what? even with the stock trading here at its all-time highs, i think auto zone remains fairly inexpensive at 15 times earnings not bad. however, the point here, it's not whether auto zone's cheap. the point is tha

amazon -- you're basically buying amazon and mcdonald's. >> this is the good news for xly because amazon is 24% of the etf, basing for the last few months because it broke out on what is perceived good fundamental news that's why you want to play the xly for the breakout especially in 2020 and it's like 2018 and it's risk on market you want to go for growth, at the momentum and amazon could break the xly out. one thing about the xlp i agree with the charting that's a wedge. going one way or the other if xly breaks out process i would deem xll process that probably underpermanence i think it could be a good pair trade, long xly short xlp. >> consumers have been strong in 2019 injury you still see that, azmodan the price movement yesterday is constructive of this but as far as xly goes you have a lot of strength here in this particular dsh in this particular sector. but i think. >> mostly driven by amazon. >> well hold on starbucks is in there which is up. >> azmodan, home depot home depot is 10% nobody bought the fast pitch on home depot i think it's nic ostarbucks. >> mcdonald's. >> mcdo

amazon has some exposure to china. i think any relief there, maybe an opportunity to own amazon i know there are a host of other headlines to think about in terms of that one, but basically i think facebook, google, amazon faang names, listening to mike, they're reasonably valued. they're market leaders they have revenue less cyclical. some macro fears have probably proven to be a little overblown. they have competitive notes and reasonably valued. they're more than the late stage union cor unicorns mentioned earlier strength and fundamental bodes well for them, it is a dotted line, not direct regardless of china talks, there are headline overhangs, macro fears or china pressuring faang and tech market broadly and i think that created perhaps opportunity here >> the economist says looks like the bubble may be deflating when it comes to tech growth. is he wrong? is there not a bubble when it comes to tech? >> i don't think there's a bubble forthe large publicly traded tech companies. the reason i say that, they're prett

we said this was a win for fba, for swa, shipping with amazon, fulfillment by amazon, and for amazon shares. that's why we raised the price target to $2,600, using the same forward free cash flow multiple or the ebitda multiple that the company has traded at over the last several years even though it's been an outperformer this year, i think there are a few things that are underappreciated this is one. >> big call with that big investment on one-day shipping markmahaney, thank you >> thank you, jon. >>> the first trading day of the month starting in the red with the dow down triple digits currently down about 387 points right now. here are the names dragging down the index the most in today's session. boeing, goldma ao n,ls caterpillar. we're back after a quick break ur workflows in the cloud. this changes everything. you're right sir... everything. no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead. servicenow. works for you. i felt compl

going from amazon or other retailers. price blink shows amazon branded or exclusive products, the fire tv stick, echo dot and echo show, they're getting the most attention again this year by page views nerd wallet said that's not surprising prices will are lower today than they were on black friday 2018 if they're amazon-owned products, it's amazon controlled pricing. amazon shares are up half a percent today. a analysis of the past four prime day events shows a month later 100% of the time, amazon shares are higher. by an average return of 5% perhaps foreshadowing what we'll see for amazon shares a month from now back over to you >> court, thank you. meantime send it over to mike san toll i who is back with his market dashboard >> thanks. pick up on the amazon conversation, something i'm calling eating the competition they say you shouldn't go to the super market hungry. maybe that applies to titling charts, too. here's the theme kids feasting while parents starve, that's another kind of haves and have notes story starti

it's apple and it's amazon. no matter how you want to define it as whether it's a consumer stock or not, it's a realization of this is where the game is >> right so scott, taking what you're saying, blending it with what josh is appropriately saying about investors need to evolve no matter what the style is, value investing and josh, i think i know this, used to be solely price to book in fact, for a lot of value investors, it still is that's absolutely the wrong way to be a value investor i'm convinced. and i think warren buffett is showing that you need to evolve to look at price to earnings to growth ratios or peg ratios. now, yes, amazon does trade at 50 times presumed next 12 months earnings but its peg ratio is below 1 so what it's saying is that multiple of 50 times is probably deserved by the growth rate now, look, of course the question's going to come, probably from you, scott, of why don't i own it my not owning it is not a negative, there's just other stocks that i have decided to own that have simil

they have been amazoned. we spent the last couple of years talking about the next death nell amazon will drop at somebody. >> i liked that noise we played at the top, the horse race i think that's an interesting way of looking at things in terms of the competition, it's not amazon versus walmart, it could be amazon plus walmart against the rest of retail because in fact that's what we have seen. we have seen other retailers have that spend, spend, spend. they're sacrificing margin in order to capture that e-commerce dollar and it comes at a cost. >> so i think you have to be -- you have to have scale to be able to afford to compete. >> these two have scale. >> i'm long target i'm not long walmart actually. to me they have scale. and i think it's working i think there was just a way overreaction to their last earnings release it trades significantly cheaper than walmart i think they have momentum and similar grocery. that's important you've got to have scale to do that as well but i think that it won't be only

not and what amazon -- amazon is just, they're not as bad as netflix on protections, but amazon is very excited they know they have a winner with one day then they have to do one day then they figure out how to make one day cheap. suddenly you buy it and the gross margins fly up and advertising margins are good a good job on web services you say, hey, i got a chance to get in that's what i think. >> doesn't mean walmart can't be making end roads >> walmart is definitely doing well but there's so much business walmart is doing well. goldman downgraded target today. but it was really just saying, listen, we've been right on it i think the american consumer, and if you judge by what visa said, really big numbers on consumption f you go back to what jamie dimon said, the american consumers are spending their head off, and a lot of it is going to amazon but there's enough to go all around there really is. costco, by the way, having a very good quarter. >> you don't begrudge the target call, do you it's having its best year since the '90s >> i love an analyst that says, look, this is going to

why can't amazon be your bank, your online credit card, doctor? amazon can be whatever it wants. next time you think about buying a stock you need to ask yourself a question, add this to your homework checklist, could amazon come in and destroy the company's margins? if so, lower your expectations some thought bezos was driven to distraction but he's more driven than ever and nothing can stand in the way of this company's wrath. let's go to wesley in texas. >> caller: jim, thanks for taking my call in light of everything that's been going on with boeing, would now be a good time to consider lockheed martin with a good dvd, i belie -- dividend, 3%. >> i like lockheed martin but people feel that this stock can't come back because the democrats won the house so i'm not going to recommend it to you. randy in california. >> booyah, jim, and much gratitude from long beach. i'm looking at the whole buildout and your guidance on sysco, looking for something a little more risky and looking at nok, nokia do you think it's bottomed and do you think this is a good place to enter for a subset

i mean, billions of dollars in incentives were promised to amazon, but amazon also was expected to increase economic growth and give back by de blasio said, nine fold so that could change plans for a lot of people. a lot of people could lose money from this if amazon does back out but i think we're far from that point still we have to see what the response is. >> deirdre, thank you. deirdre bosa not the only reason that amazon is in the news today jeff bezos taking his fight "national enquirer" public saying he's being blackmailed for intimate photos. is this a big distraction or sign of bad judgment back to that and then first, mattel soaring thanks to barbie and hot wheels but which is the better buy right now stay with us when you look at the critical issues facing our world, what do you see? we see breakthrough medicines getting to patients in record time. we see harnessing natural gas unleashing the promise of clean energy. we see engineers simulating the future to improve today. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a r

, his campaign is purchasing from amazon. rhetoric versus reality. >> here is what i want to know, bottom line. are you concerned that this essentially now for new york city and the state of new york makes it that much more of a head wind for other businesses to want to come in and do business there >> i don't think so. there's intrinsic value in the city of new york 70,000 jobs in december of 2018 alone. we are competitive when it comes to tax jobs. there's a decentralized economy of companies that are coming in here, doing a number of positive things those are the type of startups and companies we of start-ups that we supported but making it difficult for them to add to the market but we're giving out the kingdom to big corporations like amazon >> we talk about listening, the overwhelming majority of new yorkers wanted the amazon deal ron is focused on rhetoric than reality. as someone that helped start businesses and access the capital and contractor, i do not believe it will make it difficult for more to come in but we ha

they wanted to drive third party sellers off amazon that's a high margin business for amazon if amazon can correct those sales gwen, that might be a way to compete with the retailers. >> but you're talking about a better job then you have to show in all bird's, the shoes if you're worried about them knocking off other products, that scaring away a lot more people putting in re stuff on amazon even incrementally i think it's something to think about >> let's stick with amazon here there may be more problems in store for the e-commerce giant dedra bosa is in san francisco with blower on this. >> melissa, perfect segue you guys are getting at this the competition in core e-commerce directly fromly the etc brands and getting safier and getting more help in competing against the amazon machine calling it the dte ecosystem it's a way to compete for brands that may be wary of weather with amazon which is is producing it's private label products looking strieng beingly similar to dtc like the all-bird like sneakers including stripe for payments affirm for credit. return leave for returns ship

and amazon isn't coming to long island city because of amazon's choice they wanted to bring a lot of jobs and money to the area and new york said, no! we don't want that we can't the area is too good already you're going to crush us. >> there s there now a thought it's closed for business but the broader new york city real estate market could suffer especially with the deduction issue coming on. >> the entire tri-state area relies on this growth. >> do you feel this could add more pressure to a broader new york city market definitely manhattan that's already under pressure >> i don't think so. i think it would maybe make the area cheaper for other companies to come in they could say, we're going to pull out too and you'll have landlords say no, it's fine. >> i can't imagine you'll see any kind of subsidy offer for any company in the next couple years as a result of this. no >> the incentive program offers a couple of thousands of dollars per head that incentive program was a billion of the $3 billion figure we're talking about. amazon would have been the biggest to tap it so far >> y

amazon backing out of its plan to build a second headquarters in new york city following the amazon h q2 story since the start, deidra. >> this is nothing short of a stunning reversalle facing mounting opposition to the project but pulling out altogether is a major defeat for the company and the lawmakers that fought hard for it like government cuomo and mayor bill de blasio. amazon says it is disappointed but that, quote, a number of state and local politicians have made it clear they oppose our prose sense and will not work with us. de blasio saying, quote, you have to be tough to make it in new york city. and instead of working with the community, amazon threw away that opportunity now, de blasio and quocuomo set their differences to come together, woo amazon to come to new york, offering $3 billion in incentives a number like other politicians criticized saying it would far outstrip any economic benefits and the 25,000 jobs amazon planned as part of this project. aoc tweeting and calli amazon's retreat a victory. she tweeted anything is possible, today was the day a group of dedic

i think the issue is how you keep up with amazon and not just amazon but the global retail economy which is changing so quickly, especially in china so i think that was interesting to me. >> one of the things that jumped out to me in terms of the conversation on stage today is was the amazon effect on inflation. >> yes. >> that inflation has been tepid because amazon and tech in general are putting down pressure. >> they know what the price really is. there's so much data, prices that used to be more easily not known to consumers are very much known. and i think that's probably the case they didn't talk a lot about the government shutdown. i asked janet yellen about that. i was wondering if that effected consumer spending if it keeps going, and i think she agreed it could be a problem over the long term if it continues for a long enough time. >> i wonder what you think of the in store digital experience. you've written so much on privacy. are we going to be okay, walking into a store, being recognized by our face, having things suggested in real time >> i brought it up with steve. i said

amazon to 2,300 with room to run. that's the latest from rbc this morning, reiterating its outperform rating on the stock, saying amazon's long-term margin potential could be even higher than investors think the analyst behind that call, mark mahaney, joins us now, along with sunovis trust portfolio manager. mark, lay out your increased full case for amazon here? >> right, so we've done these u.s. online retail surveys for seven years. when we came out with this last year, we saw sort of -- there was some concern there we saw slipping satisfaction scores at amazon i think that's because they were aggressively shifting towards third party vendors and we saw what appeared to be a little bit of a plateauing of prime interest in the u.s. this year, both of those trends improved and in the meantime, what we're seeing is not surprisingly, the longer people are with amazon, the longer they shop with them, the more frequently with them, the more that they spend, satisfaction levels improved modestly, prime penetration really

at amazon headquarters in seattle. 11:00 a.m. here on wall street "squawk alley" is live ♪ ♪ >>> good friday morning. welcome to "squawk alley." i'm jon fortt with leslie picker and wilfred frost here at post 9 of the new york stock exchange carl and morgan have the morning off. and we're going to begin with tech bracing for tariffs now just days away from going into effect on september 1st trade tensions between the u.s. and china not slowing down, as "the wall street journal" reports that u.s. prosecutors investigate new allegations of technology theft against huawei. acme capital's heene nada and kevin dilanian, of course, both join us here at post 9 happy pre-labor day weekend. >> good morning. >> heenne, you were a pro-tough stance gen china when it comes to ips and other things. when it comes to these tariffs, september 1st, december 15th, are you pro this approach? does it depend if it gets near-term results? >> i think the tariffs are going to do some harm in the near-term. i think you'll see pricing increases in the

i have to think amazon decision after amazon so you with the foxconn jobs in wisconsin without subsidies were not panning out. that in my opinion changed public opinion on this as well. melissa: lindsay, the flipside, amazon would not pay enough tax, they had gotten a sweetheart deal. is the answer keep amazon away or cut the tax burden to others that are carrying the load? >> the congressman said the best point of all, 27 million of revenue in new york over 25 years. the return on that 3 billion-dollar investment. so that is a pretty good investment. what they're doing chasing amazon out is absolutely the wrong idea. aoc might have won the twitter war against big bad corporate greed in america but they have lost the reality of new jobs, good jobs, high-paying jobs and more tax revenue coming into this city. melissa: if nothing else they would get revenue on income to those people. regardless, stick around. thanks to both of you. connell? connell: all right. melissa i want to bring in our buddy jonas max ferris, max funds.com contributor. he is here with me. beautiful long island city wa

at amazon headquarters in seemgattle, 11:0 a.m. on wall street and squaw"s alley" is live ♪ >> that's right, it is black friday morning welcome to "squawk alley." we're live from post nine here at the new york stock exchange and carl and jon are off this morning. it is a condensed trading day. all the major averages are slightly lower, but we begin our busy day on amazon deidre bosa is in san francisco with more on why this holiday season is primetime for the e-tailor >> and we're seeing how amazon stacks up to other retarls ilers many up their own games. and i promised that i would get to your items and so now is a good time for your kids to turn off the tv morgan is in the market for a smart tv and the price is pretty of the same because retailers need to honor the manufacture ear suggested retail price so we looked at shipping how fast can you get it? it was pretty close here again, but amazon will get it to you by sunday the catch is that you have to have that $119 prime membership. best buy increased its logistics spending b

amazon shares up higher. let's get to deidre bossa. >> amazon higher in the after hours despite calls falling short at the call. brian mentioned that amazon will be spending a lot and part of that is on one-day shipping and investors reacting well to that. have a listen. >> turning into q2, illike to te tell you why that's lower and we are improving the prime two-day shipping program to a free one-day shipping program and we are able to do this because we spent 20-plus years of expanding the fulfillment network and this is still a big investment and a lot of work to do ahead of us. for q2 guidance we've included approximately $800 million of incremental spend related to this investment. >> it seems that investors are willing to stomach slower growth and higher spending because profits are rising and amazon by spending will continue to take more market. >> deidre, thank you let's get back to gene munster gene, you had a bold prediction before the conference call kicked off we are getting more spending and the

and mad money what does this have to do with the stock of amazon? all right. when the stock was getting shelled again last month, you had a pretty classic setup the last time they got put through the meat grinder in may, the stock plummeted, you're not going to believe this, 292 points okay 292. keep that number in mind and started rebounding if you're using brodin's method you would know something is important when the stock bottomed last week why? august 26 when amazon made the recent low, it had already come down 292 points. 292. 292. is that incredible that's the same size as the last big decline. you can't make this stuff up stocks move to determine the similar levels in other words, if the last big decline lasted, there is a good chance the next one will last for 292 points sounds ridiculous like the analysis a fifth grader or second grader might do but the thing about symmetry is it very often works. you can't make this stuff up the market is sometimes that unrigorous it had brodin watching and amazon might find a bottom that's not all you ha

yes, amazon is formidable. you know, nobody disputes that but i think what you are seeing is bright spots in other retailers which have high table stakes and are making inroads. >> an example would be target. somebody else? >> you know we are speaking ever the new ones to the market if you think about companies like revolve, you are seeing where high customer economics, high lifetime value where repeat purchases and gross margin give you a long-term value that customer exceeds the cost of customer acquisition and they have a long runway. >> influencers could replace marketing budgets? >> it is working your go-to-market strategy could be very different and very digital. >> you used to run hudson's bay company, of course that's a retailer. it is a department store we got an interesting call today out of goldman sachs and they are downgrading ralph lauren they are worried about the department store space and sort of that wholesale model with some of these brands do you think that's warranted? >> i think that the t

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

in seattle amazon seeing decline. a shake up at citi group 145 s&p 500 companies set to release numbers next week. >> forced evacuations. some 40,000 residents to evacuate their homes amid wild fire rage. the one thing at the biggest risk in stocks now it is friday, october 25 "worldwide exchange" begins right now. good morning, good afternoon, good morning thank you for joining us this friday morning this is your stock and your story of the day that is amazon shares are sinking in the pre-market after those earnings were reported. bounced back some what down around 5% still that is a nearly $$50 billion move they are losing a ford-sized company right now. moving on to indonesia authorities recommend closer scrutiny of automated systems and better flight deck systems in a statement, they say the max are undergoing, quote, unprecedented level of testing, oversight and analysis they say they are making sure the conditions from the accident will never happen again. >> boeing, the highest value stock means it is the heavi

they missed amazon if they'd just bought it now they missed amazon to the tune of 832%. >> it's from the moment they bought it to whenever. it could still be a great return i'm not trying to defend them at all. >> tom and ted, the venture. >> the lieutenants who managed the small portfolios >> you have to pick up a paper. >> is that what we do here we're in the media and -- >> i'm supposed to know. they bought it not him >> what does tim do? >> so we -- you don't follow warren buffett warren buffett has stayed away from technology. the tech that he bought was apple which is good and ebb which was terrible. >> not tim, talking about tom and ted. >> tom, tim. >> warren buffett is on mount rushmore, right? all those things mickey mantel. >> and even -- >> the other conversation, but i'll mention this, when he -- when they announced they'd bought j.p. morgan that was so not a warren buffett-berkshire hathaway buy why because it was trading 32 times book and i'm sure mr. buffett is overseeing this, but there are clearly other people now making decisions, so i don't think this is a berkshi

that's what we were attempting to do with amazon and amazon did pull out, you know, a little too quickly in my estimation we should have sat at the table and negotiated and make sure that we just as we're trying to do on the hill right now and talk about not closing the government again so generally with compromise that means that everybody -- little upset you don't get -- no side gets all of what he or she wants and what compromise is all about and that's what should and i was hoping to take place here, there would be some compromise. >> i mean, beyond the speed, congressman, do you share the view that amazon went about this wrong and discalculated? first of all, the incoming wave of democratic lawmakers in new york and some of the populist left sentiment going on there and host willed widely publicized beauty pageant competition for states to get the new headquarters they could have just done what google is doing and spending billions of dollars on the lower part of manhattan under 23rd street and quietly hiring an army of people. >> well, yes but still, if you look at the latest poll

with amazon. >> all right >> why amazon? >> i mean, personally, every day, i feel like i'm getting two or three amazon boxes. i can imagine what other people are doing. >> amazon's also reportedly eyeing a partnership with sinclair to bid for the regional sports network that disney is selling. e-commerce giant getting lots of love on the street all 45 analysts rate the company a buy. one of them, senior research analyst with piper jaffray just boosted his price target to $22.25 mike, welcome. >> good afternoon. >> why do you boost the price target with all the money they're going to have to spend on this one-day rollout? >> yeah, you know, it was a good quarter. they had a solid top line, the operating income beat significantly. really, actually the only knock on the quarter was next quarter looking at the guidance for operating income they guided below consensus but the last four quarters, they've beaten their guidance by an average of 71% over the last four quarters. it's probably the case that operating income guidance is

. >> are you more worried about amazon, though >> yeah. >> even though amazon is not -- i could see it with u.p.s. but couldn't see it with fedex fedex is 3% to 5% of the revenue is derived from amazon whereas u.p.s. is 10%. >> these guys have indicated they're not worried at all amazon's news about buying their own fleets has been out there a couple years. >> the stock is reacting every single time. >> what used to affect fedex every year about amazon now affects it every three months. >>> from shippers to shoppers. the big box stocks breaking out as walmart gears up to report earnings tuesday before the bell how do you feel about walmart? >> i think next week this is likely a sell the news event we've had retail sales come out for december, which was horrible we probably should have expected it because every single company told you something in mid-december happened where every bit of business stopped happening. then we had consumer confidence come out this morning, much better so you started to say, wait a second, maybe there's a rebound. the retailers will probably rebound. the pro

i think if you think about amazon's selecting d.c. or northern virginia, they're very shrewd politically and as far as any noise there i think a loud minority that may not want them in their backyard in new york so i think this is more of wrangling by amazon and ultimately they intend to move forward with both new york and northern virginia. >> all right, guys thanks a. lot to talk about with amazon today tom and anthony. >>> we've got 34 minutes here to go before the closing bell dow off 150 points s&p 500 off .2%. russell just popped positive small caps doing better again today and the nasdaq near the flat line. >>> still ahead, the former ceo of another broadband weighs in on reports the trump administration will ban chinese telecom equipment from networks. >>> offering free college tuition. there's a catch. an usunual way to pay for higher education coming up. val, vern... i'm off to college and i'm not gonna be around... i'm worried about my parents' retirement. oh, don't worry. voya helps them to and through retirement... ...dea

one of those fang names will be there, amazon. our reporters will tell you the key metrics to watch from that name as well as inl,te starbucks, ford, t-mobile and mattel put our workflows in the cloud? how about our jobs? [ mimics explosion ] [ mimics explosion ] our jobs. [ mimics explosion ] servicenow. works for you. wake up! there's a lot that needs to get done today. small things. big things. too hard to do alone things. day after day, you need to get it all done. and here to listen and help you through it all is bank of america. with the expertise and know-how you need to reach that blissful state of done-ness. so let's get after it. ♪ everything is all right what would you like the power to do?® ♪ all right ♪ don't get mad, put your money to work with e*trade's easy-to-use investing tools. mno kidding.rd. but moving your internet and tv? that's easy. easy?! easy? easy. because now xfinity lets you transfer your service online in just about a minute with a few simple steps. really? really. that was easy. yup. plus, wi

there is one more reason i hesitate to draw any conclusions about amazon from this jedi story. it may not have been a fair fight. we know president trump loathes jeff bezos, the ceo of amazon who happens to own "the washington post" and it wouldn't shock me if he or someone in their orbit put their thumb on the scales of the scale and favored microsoft. are there any real reverberations from this jedi contract i said it once without putting it on. on addition to being positive for microsoft it it might have oracle and vr and microsoft azure are now interoperable and this means it should be easy for oracle to defend the pre-existing business with the pentagon vm ware, they signed a partnership, thank you sanjay, coo of vm wear, with microsoft to make it easier for customers to run the legacy systems and data centers powered by azure. heck, you could even argue this is a win for ibm and alphabet, but it needs it after the number tonight because it means amazon can't mon on liz the government's cloud-related spending for defense to the announcement there was a sense that amazon ha

microsoft and amazon that's who we're talking about right now. >> let's get more on amazon and the tech landscape, talk a bit more about aws joined by goldman, sachs director of internet equity research heath terry. curious to get your thoughts they say in various parts here, one of the keys despite a clear factual record establishing aws technical superiority over microsoft, including broad consensus among industry and lists and experts that expressed it as the frontrunner. do you believe they're technically superior to microsoft? >> if you look at market share numbers, it would imply that aws market share in the most generous standards is roughing three times that of microsoft's within cloud it is clearly a decision companies macon a regular basis. they had the developer conference 120 different products that were announced or talked about at the event. you see independent sort of i.t. analysts make the claim that aws is that far ahead of competitors in the space, so i think it is an easy statement for amazon to make that they are tech logically superior. >> it is valued up to $10 bil

it is interesting to hear this from amazon. is this a defensive play, do they want to increase the loyalty of prime members or are they worried they're losing some shoppers >> sure. >> shares of intel are also lower, dragging down the dow, this after cuttingfo foreca forecasts. ceo bob swan said the company is taking a more cautious view of the year on the quarterly conference call. he joins us now on the phone mr. swan, nice to have you thank you for joining us >> good morning, david nice to be with you. >> i'd love to start on china, since it did seem to play an important role in your lowered guidance for the year. can you give us specifics in terms of what you're seeing there? i know you highlighted as a growth headwind, not only cloud but enterprise and communications service providers. is it your sense this weakness in china will continue for some time >> david, the china market is a significant market for us and has been a big source of growth forev for us over time if you look at last year, the demand for china was signi

and i think it's interesting on amazon, i only worry about the top line amazon spends so much money, and i will say this, i have a lot of positions in private companies that sell consumer goods and services in america, almost in every state now, and about 30% to 40% of our sales are now on amazon, and there's good pros and cons to that, but we really want that same-day delivery. so, if there's more capex going into that, i'm very happy with my position in amazon. that's going to be a game-changer for a lot of providers. same-day is a big deal, because it lets you get an advertising spend and get a direct measure to how impactful it is in regional markets, when you can deliver the same day >> we have got another earnings report out, and it's starbucks kate rogers has the numbers. >> very strong q-3 for starbucks here, beat on every metric we'll take you through eps 78 cents adjusted compared to 72 cents the street was expecting. revenues $6.82 billion versus estimates of $6.6 billion. that's up 8% year on year. the company also says that's an all-time high for revenues global comps up

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

down 6.6% is amazon stock. looking ahead to tomorrow we'll get earnings from a bchblt and and bet, bark collar averizon keep an eye on those. >> come monday private space tourism virgin galactic trading on the stock exchange. spee firps company publicly traded. shareholders approved the with the special purpose vehicle social capital and deal gichg the $1.5 billion valuation is expected to close tomorrow watching for that as well. virgin galactic air launched space plane can carry six passengers and two pilots. ticket price $250,000. service expected to start next year more than 600 customers op the wait list. company has gearing up and reeflgd underarmor designed space suits. beginning to hq space sport process mexico a couple months and recruiting a new investor in this which is boeing guys this is going to be one to watch. it's a real test for this new space economy. >> well, earlier there was a read and it said the first public listed space company you changed it i noticed and said commercial. >> commercial

amazon, twitter and many others set to open their books today. it is the busiest day of earnings season around and new promises from tesla over the tiely anticipated model y cross over those shares are soaring trouble in dearborn. zuckerberg defending the libra digital currency and his company as a whole and an end of an era at the ecb as mario draghi prepares to end his time as head of the ecb. "worldwide exchange" begins right now. >> good morning and welcome. your chart of the day has to be tesla. breaking out with a more than massive 17% gain that sharp move higher, we've levelled off a little bit. still a 17% gain for tesla shares on the heels of the earnings announcement. we'll tell you more on that coming up. first, equity futures showing signs of stability if these futures hold, the dow would be up a whoping 35 points, s&p up by five marginal gains to start. watching now what is happening at the bond market the treasury yield checking slightly lower the yield 2.8% as well in asia trading, we did see a little bit popping up. the nikkei and

mike, main markets, back to them keeping an eye on whether amazon drags. >> seeing if neck absorb the amazon hit as it's shone the ability to absorb the one off earnings misses this zbloonz out of time on "closing bell." thanks for watching. >> "fast money" begins right now. >>> live from the nasdaq market site overlooks times square. f2 this is "fast money." i'm melissa lee traders tim seymour. karen finerman and guy adami and joined by mark tepper president of strategic wealth prrnlts. the businessest day of the earnings season in the books visa intel, gilead on the radar tonight. we have the latest from each on the quarters but beginning with the stocks to watch in the after hours that would be azmodan. the tech giant falling hard offer a earnings miss. we have full team coverage stapg by to break down results gene munster firing up the red phone in minneapolis we kick-off with more on the amazon big quarter josh lipton live in san francisco. >> besides the bottom and top obviously investors concentrate on the q 4 guided are guidance light. between 86 and 86.5 billion. obviously fo

you mention amazon that is important. you go back to that amazon quarter. in the after markets before amazon started talking about one day delivery, that stock was headed lower traded below $1900 briefly it appears as though it wanted to go down until they mention one day shipping so i would submit you're not seeing anything much different between what sort of amazon saying and google saying now i think both stocks got ahead of themselves jeff bezos warned us it break is coming. >> i think all the breakout with numbers, i don't think you'll see the breakout to the point that we're going to be excited you'll see revenue streams apple is pulling back on numbers. the trend is not to give more numbers or not to give precise numbers. it's to give macro the macro is still bullish. >> okay, let's talk to gene. can we do that >> sure. >> you brought in dom. >> now we have a mike on him, right, d day >> i have a mike on. >> we'll be with you >> anyway, johnny. let's bring in luke venture, founder and fast money friend gene munser. you had time to thichlt ynk you pro

amazon shares up 1%. greg and anthony >>> on the other side of the spectrum, a different retail story. sears set to announce the liquidation plans today after rejecting the eddie lambepert's bid. >> setting the retailer on the path to liquidation after more than 125 years in operation. the bankruptcy hearing was scheduled for 10:00 a.m. sources tell cnbc it will liquidation. t there was a bid scheduled for late this morning, but what is next for the stores? sears and its advisers are not soliciting bids. others dropped out of the process due to the financial and human resources it would be required to run liquidation. the inventory is estimated to be $3.5 billion the largest retail liquidation cover ducted toys r us had to be managed by the four largest liquidation terms ever shoppers have been complaining of empty shelves at deteriora deteriorating stores sears holdings had 4,000 stores in 2001. $11.3 billion in liability sad day for a story i hied retar morgan. >> courtney reagan, thank you. curious to

amazon down by 2%. alphabet, sometimes the options markets get it right, they were pricing a move up or down of 6%. stock up 6.25% after the earnings release. >>> intel reporting its second quarter results. that is another big one to get too. jackie deangelis joins us with those numbers. what do we see, jackie? reporter: connell, intel soaring because we have a beat top and bottom line. revenue 16.5 billion, surpassing the 15.7 expectation. earnings per share $1.06. that was well above the 89-cent estimate. where intel tripped up last quarter was on the guidance. it gave weaker guidance, even though beat on top and bottom line. that was a problem. this quarter raising the full-year revenue outlook, up 500 million from april. so investors are looking at that in a positive light too. before the earnings came out we saw headlines regarding apple acquisition of intel's smartphone modem business. that is in fact happening. that will happen for a billion dollars. apple is getting a majority stake in it. after

amazon uses oracle. they've had ten years to get off oracle, and they're still on oracle can we end that? >> yeah, well, you know, i think larry has a certain view of the world that isn't always steeped in what the facts are. if you look at -- if you look at amazon, amazon, you know, we started the company at a very early stage, and we had oracle it takes work to actually move away from oracle lots of customers are learning this as so many people are trying to move away from the commercial grade legacy data providers to newer engines like aurora we now are 88% of the way through, moving all of our oracle databases, we'll be 100% by mid this year and we turned off our oracle data warehouse november of last year and moved it to red shift. and so, you know, we learned some very interesting patterns that customers are very excited about copying. and we don't really meet a lot of customers who aren't looking to move away from those databases to aurora. >> i usually don't ask to people, but i got to because yo