back to you. >> thank you very much >>> google released a statement on the bill saying, quote, google play provides far more payment -- far more than payment processing and our service fee helps keep android free, giving developers the tools and global platform to access billions of consumers around the world for context, the google play store accounts for 75% of global mobile app downloads in the second quarter, but apple makes more money collecting 65% of app store spending acording to app ante joining us cnbc contributor nila patel we're talking about antitrust, penalties, rulings, however it never seems to be in focus for investors at least as we continue to see big tech apple included, hit all time highs. >> yeah. i think the quote i keep thinking about here is the famous jeff bezos line your margin is my opportunity this margin for apple and google is huge, driving both these companies for years and years now. and that margin is going to start getting redistributed back to app companies and app vendors who are able to take some of the 30% they have been paying to apple, put it b

you mentioned google and google is your top pick in that area. but, you know, i'm hearing about the death of the cookie and we hear about meta and snap having to navigate those appleios changes and figure out how to target consumers in a new way. tell us why you like google and snap in light of some of those challenges it seems like one of the main appeals of google has nothing to do with advertising and everything to do with their cloud services >> you're right. probably our most differentiated call on google really relates to the cloud business and our call is that the growth in the top line in cloud is going to come in much stronger this year than the consensus estimates. and the costs are actually going to come down faster than consensus leading to a fast er infliction towards google cloud and that's really predicated if you look back since thomas curian joined google cloud and brought the huge effort to the salesforce you look at 4q 2020 and they saw the biggest growth in their backlog that they've seen historically and we're about entering

zoom is outpacing google meet there. maybe they will make headway with workspace deirdre, we got somebody from google a little later on talking payments and some of the news they're making there shopify moved yesterday on it. >> and that sets up sort of the battle royale between google and amazon we increasingly see these two companies encroach on each other's spaces where amazon is making this big push with some pretty incredible growth and success in advertisement and google on the shopping side, going into e-commerce, jon there's so much to unpack but it does involve the biggest names we talk about on a daily basis staples of our tech show the tech giants increasingly as they're finding new revenue streams, coming up against each other. >> and bob peck, back to you on this, this is where big tech really has to succeed on the larger platform plays we're seeing out of i/o, wwdc, if they're going to justify these valuations that we've got and continue this earnings streak they've had, right >> yeah. absolutely and don't

i will point out that since google's i.p.o. back in '04, this is the longest stretch on record without having a checkback to the 150-day moving average. that's the bet, that that's under way now. to make that point, next chart this chart goes to 2007-2008 you can see how far it has gone without a proper checkback next chart this is the same chart and look, we're at the top of the channel that's been in effect since the '09 low and we're up against the upper band to the penny and starting to churn and stall and now the final chart. this speaks to relative performance. this is a two-panel. it's very short-term you can see that google fails to make a new high and now a bad day today, bad week, but that line i've drawn is still above where it was in september. look at the bottom panel it's making new relative lows to the s&p. and the q. this is the beginning of a rollover by my work and i think we are going down to the 150-day moving average >> mike, what is the trade >> yeah, i mean, this is an interesting one, alphabet. it's hard

google and apple, through their app store. now, you know, it may or may not be a violation of the antitrust laws they have built it, but it doesn't mean that it is not a broader public policy concern. both from a competition standpoint allowing consumers to benefit from different app developers, different content providers. being on those two platforms and that is the challenge that everybody has been trying to address. now, there is no uniform standard globally for anti-trust -- for even the violation, let alone what the remedy should be so whether or not these will be addressed through antitrust laws and law enforcement, or prescribed through regulation, like the european union is doing, or crack down through legislation. i think all three of those will be on the menu, and i think the companies will probably face, you know, solutions and different parts of the world depending on the form of governments to address the market value. >> sounds like a nightmare interesting you mention common carrier and strikes me this is maybe

the opinion is facebook, am, google, et cetera are good for society. that will definitely have a fracture there could be a lag time. i agree with you that special interests are raising money for different reasons, actually, not just concern of influence of big entities and concern about censorship they have interesting arguments but different. they may reach an alliance which can be problematic for a large tech company if extreme right or extreme left coordinate and there could be a coalition to change through but right now they don't agree on which laws to change. >> keith, it's a great discussion we'll continue to have it. certainly when it comes to investors which we focus a lot on, they've had sort of treated the antitrust headlines as noise. when it comes to consumers, lawmakers. but, keith thank you so much we'll talk to you soon >> great >>> as we head to break keep your eye on uber and lyft on pace for their third straight negative session no surprise in today's market. that's over the past week. see them down there more than 5% plus take a loo

suit >> tony, you think this may be the opposite of google for facebook, why? >> we have seen bare sentiment the last couple months and on the back of snapchat earnings yesterday, i think this is overdone i think facebook will still report a fairly strong quarter for earnings if we look at the chart for facebook first, this is a stock continuing to trend to the upside and recently pulled back to the 200-day moving average. the previous times this has happened we have seen a bounce off that level i think that's what we will see again going into this earnings announcement if you look at the business itself, facebook and snapchat could not be more different. they are about 16% quarter over quarter and commands a profit margin versus what snapchat has. that it's trading at 24 times earnings i think this is relatively cheap versus snapchat which was trading at 36 or 37% times sales. the options market is implying a 6.1% move going into earnings versus the historical average of 2% over the last eight quarters. the options market volatility are quite elevated i want t

everyone measures it has been google google's recent action is a bit heavy. as the old time technical expression goes, the stock doesn't act well let's look at a bunch of charts. here's the first one a well defined channel and google is hovering honestly right on the lower band it balanced well but to reapproach it this quickly is a bit of a defect. second chart, it's the exact same chart but i've included the 100th day moving average that's 7% below where we are now. does the stock have to get down there? no next chart this is just the same chart again with only the 150 day. i will point out that since google's ipo back in '04, this is the longest stretch on record without having a check mark. here is the 100 day average. without a proper check mark. google fails to make a bad day today. this is the beginning of a rule over by my work and i think we're going down to it they've managed to preserve those tickers. this is an interesting situation, flight fundamentally the stockstill -- the company still has a lot of very good things to acquit itself, right we o

we reached out to apple and google parent company alphabet for comment. we have not heard back but if we do, we will bring you those details. >> a lot happen ing on the senat front this week. >>> we'll speak to a ceo of a company that helps apps monetize their comments and their gains we're talking to the ceo of iron source, who joins us next to respond to this piece of particular legislation and more. keep it right here ♪ - [announcer] introducing the grubhub guarantee, our promise to deliver your order on time within the delivery window and for the lowest price compared to other apps or you'll get back at least $5 in perks. >>> shares of iron source are higher on record revenues, its first report since competing a spac merger in june. its part of the plumbing gaming industry with 89 top games, including a popular one you're seeing there candy crush saga could more regulation of the app market lead to a more open environment and help give iron source a possible business boost? i guess you just heard that interview we had with senators blackburn and blu

but we did a large lease with google google is our largest tenant they are way ahead of everybody else i think their connectivity is part of their mantra and they want to grow their perform in silicon valley and other markets with us they have been very, very active. >> so for a tenant like google is it because they're hiring more people or is it because they have the workforce and need to space it out. so many offices eliminated walls and configured people in pods. we have that here in the cnbc newsroom as you go back to work we have to think are we going to be working in that environment once again? >> the numbers speak for themselves you saw us get down to 150 feet per person in most spaces. now you're seeing it go back to more like 225 to 250 so you're exactly right. it's the same amount of people but they're spreading them out and will have different timelines in terms of when people come to the office. but i think the whole key is and the catalyst is connectivity is coming back, and coming back in a very big way and so these companies that are prepared to support that are the one

walk us through alphabet/google. >> good to be with you guys. this is probably pound for pound the best technology company in the world. they had a big quarter last quarter in the june quarter. that was in part because they were lacking easy comparisons in the prior year due to covid, but this company continues to fire on all cylinders and it's really woven into the digital fabric of our lives. i think investors will be looking at ad spend, although we think google is going to be relatively immune to some of the problems snap faced. youtube, video is going to be important. cloud is their number three business if you will third place in the market driving a lot of optimism about google so cloud's going to be something to watch then the regulatory landscape, which has been the factor h holding this stock down is something investors will also key in on as well. >> let's talk about number two that would be microsoft. when we'll get maybe to twitter and a couple of others microsoft has been doing amazingly well in recent months. >> it really has and

at google headquarters in california it's 11:00 a.m. on wall street and "squawk alley" is live. ♪ >> happy friday. welcome to "squawk alley." this hour crypto on fire we'll hear about the album release. smell that burning cookies. we'll tell you why ad tech names are getting fried this week thanks to google and thinking inside the box office again. the ceo of imax joins us on his plans post-pandemic. we'll begin with some of the highly valued names in the sector like snowflake, all down big. roger joins us now good to see you. happy friday to you as well. i'm looking at this and for the week the nasdaq gave up the year's gains this week and then at a microlevel, pinterest, chewy, all down 20% for the week but each are still up more than 25% for the past six months unless you were chasing a trade, do you really need to change anything is this a panic moment i don't think it's a panic moment i think it's a moment where we're supposed to stop and ask ourselves what has changed it seems to me that we've been in this extraordinary environm

sure people love to buy google if they wanted to buy google or alphabet, 11% lower is an even better price, obviously. >> yeah, and to guy's point i think it right here you will see the stock go even higher i don't see it going down 11%. and too many times people just run. they say something is wrong and i don't want to touch this >> and people think maybe is is going away from me when you look at alphabet, do you look -- what do you feel more inclined to do? >> that is fascinating i think well since i said it i think google is cheaper now than it was to start the day i would have to say google, but that's not to cast dispersions on microsoft, but i think microsoft would be up 4% >> great to have you with us what is your take on the giants? >> i think guy's point is spot on, look at the beat you're seeing letter revenue growth with their surge business growing year over year, but they crushed profits. so by definition it is cheaper now than it was an hour ago. and when you look at what is happening under the hood welcome youtube up nearly 50%, and google cloud is not even at scale ye

of google's business is ad based. and the ad business saw this rebound with the reopening and also inflationary environment. when you put that together, the numbers are staggering because their ad business grew 70% in june, it grew 34% in the march quarter. so to answer your question is what has driven it, it has been largely those two factors. and then maybe add a little bit of other bets. they have got about seven other core businesses within that. these are things that fall under the line wamo pops its head up occasionally in the news that business is getting more optimism and has been driving shares. >> so essentially advertising. so eyeballs online, let's call it you see google what it's doing, you see facebook up 40%, while apple and amazon are trailing. you know, still, apple and amazon would seem to be beneficiaries of people spending more time online why are they not participating in the same kinds of gains that google and facebook enjoy? >> the numbers have been so impressive when you look at google and face

google, facebook and amazon have replaced online, the newspapers, shopping malls, tv and radio so google, facebook, amazon do provide a crucial, a crucial ecosystem for the -- >> yes -- ron. i get your point brand ed platforms important in building those up. many argue the platforms wouldn't be where they are same time and largely gone unpaid in the case of google, facebook new platforms serving them better. what do you think is an appropriate amount for them to be handed over to the likes of facebook or apple or google? is it 30%? 10%? is it nothing? >> it's certainly not nothing. but those business models are evolving as this new, you know, creative content provider economy is evolving. but, yes there should be something, and i think that will evolve, and it will be based on the quality of the content. >> ron, if you are a creator or a creative company, can you trust the kind of ad-driven juggernauts in this paid content era just as much as you can trust a pure play? i mean, i think substack would make the argument that the facebooks, the googles, have incentive to continue to feed the

we talked about google, but apple, too, around innovation. i think ultimately investors should rest well knowing that their core businesses are doing exceptionally well and more importantly that the company is tapping into new massive markets around transportation, health care, augmented reality, all of these have the potential to accelerate $300, $400 billion growth company so patience is going to be a virtue with this they may not get the credit today. i do believe that the stock for the next year plus should be $200 but if you start factoring in some of these other markets that they're going after that i just mentioned, this could be a much bigger valuation than $3.2 trillion. >> i get your notion about sustainability and i'll direct this to you, tim we asked the sustainability question more pointedly when we questioned the valuation and we think the valuation is full. is that the case with apple? >> well, i think the valuation has come a long way relative to itself so the bingo word of reoccurring revenue or -- look, so services, which ar

look, google's numbers tell you this company is beginning to rerate a bit more. facebook has been very cheap, maybe cheap for a reason the strength in the ad growth and again their pricing they were able to passion pass were able to pass on 30% price increase and all of this was a bad week for netflix considering the amazon video prime numbers and what google told you and strength of youtube that's maybe for another show those are the two most defendable, the two with the big week, those two yes reversed off the highs but still the stock is higher and those are the ones you stay with. >> nadine, i'm curious if you think today's action was sort of a tell in that, were you surprised tech stocks didn't do better especially with decent earnings like amazon given the ten-year yield ten-year yield went down to 1.62 thought we'd have a bit of a bid there. >> in terms of rates last two shows i've been on we've been shorting tlt, shorting treasuries, we saw xls and financials and xle, energy, hitting the top end of the daily trading ranges they are call it a rhyming cousi

at google headquarters in california and 11:00 a.m. on wall street and "squawk alley" is live. ♪ >>> yeah, a little music to start off 2021 welcome back to "squawk alley. i'm jon fortt with julia boar ste julia boorstin we have the most important voices in tech this hour we're going to talk to one of the leaders of a new effort to unionize at google labor going to be major issue in tech we'll talk to the ceos of paypal, discovery net worth and docusign and, julia, google and unions. i mean, we've seen a little bit of this at the end of 2020 with amazon warehouse workers unionizing google actually tech workers and across the board workers trying to start a union under cwa it will be interesting to see if this really catches some momentum but now with rather couple hundred workers, it's nacid. >> it is i think it is interesting to see if it picks up on google and facebook and apple that will be really interesting to watch then another thing we're just really going to be keeping an eye on in both today in our show and also this year, of

to google's 22%, valuation is higher for google. the reason that one stands above here is that trend around google, could you argue around all big tech and around google is that it is as good as it gets if i think about those two companies. google versus microsoft. our dependence is greater. outside of that, google's other bets they haven't yielded outside i do think they have significant potential compared to microsoft which their other bet, if you will we have some august meanted reality initiatives going around with their howl lens in better position my vote is with google >> as you have said, google is the oxygenof the internet. they have their own operating system they have a large stake in the digital online ad game 50% jump for some numbers. azure is growing they are clearly benefiters from the work at home trend >> absolutely. about double where it was when this all started this work and learn remote has benefitted a lot of companies. the significance is really hard to enumerate that impact will go on for multiple years we'v

again, google is an advertising company. they do not make significant revenue from their hardware products this is really just a showcase to show what they can do there's like this ai demo that you can go into that will translate things you say in real-time, which is pretty cool, but other than that, like are people going to actually come in here instead of the apple store? i don't know pixel phones are not very popular. in this country, we are a samsung and apple country, so i really would be shocked if this moves the needle for google's hardware business. >> we also should note google's office in that building. maybe they got a good commercial real estate deal given what has been happening over the past year plus. but part of google's model, right, is to get into devices, to drive data that drives advertising. so in a way the store represents what google is in the same way that the apple store perhaps represents what apple is >> reporter: yeah, that's exactly right. it is all about getting a foothold android is the largest

>> i actually think google will continue to have a run right? the numbers were, as you said, outstanding. and the expectations were high going into the print but i do think with the reopening of the economy which some folks don't know this, but they should, that the benefit for ad spending is there and so, yeah, i think that they'll have a couple of quarters here at this 30%-plus level. and the nice thing about this stock relative to some of the other faangs is, last year, even though it had decent performance vis-a-vis the s&p 500, it did underperform most of the other faangs and so it's valuation coming into 2021 was less demanding, gave it more room for upside some of these other stocks have done so well, and their valuations are so expensive that they're really sensitive to any blemish at all in their quarterly reports. but i probably am, after last night's print, what i see going forward for google, i probably am the most bullish of the faangs in that vein. >> why >> well, i just think that there's still upside to the valuation of some of t

and later, we'll talk google's new pixel 6 and what it means for the competition with the journal's joanna stern >> we start today with chinese stocks this morning, first alibaba, a small miss on the top line, driving that stock lower profit beat and it did boost its buyback program, shares so far, you can see they're down more than 1.5%. also tencent plummeting after a state owned chinese newspaper called online gaming, quote, opium for the mind investors thinking that sector might be next in china's regulatory crackdown and you can see the effects that had on some of the competitors as well as contagion there. netease down more than 7%. it is another rough start to a month for some of china's biggest tech names look at this performance in july alone, alibaba down 13%. tencent, down 15 baidu, 20% with others like didi just brutal charts here. not to mention the education tech names that lost about half of their value hong kong's hang seng index fell about 9% for the month, and that's not even saying anything about the kweb etf that trades over here. we have beenhere before with chinese ga

i think that's going to be a disadvantage there's companies like google that have enormous hubs. we just hired an incredible director of product management and that person came to slack partly because they lived in seattle and they knew at their current employer they were only going to be able to work on projects based in seattle and this is a global organization, has offices all over the world, all kinds of exciting things to work on, but they're limited that's bad from two perspectives one from the employee's perspective, they took our recruiter's call, but bad for the employer, right. the idea that this is an important initiative, we're going to bet the company on this thing, we're going to hope this produces good results but only willing to hire people from the mall metro region today with the knowledge that is a limitation that's something we inherited in a default that is difficult to change >> right at the same time, google is opening up offices in other places in america, so if you look at that, maybe they have the footprint to do so stewart, way tonight ask you, it's bee

former top google exec launches an anti-google search engine today. he joins us next and morgan stanley says forget big tech six favorite stocks that are cheaper than faang but have bite read the full story by subscribing to cnbc pro. find out which names you're missing out on "techcheck" back in two. - [narrator] at southern new hampshire university, we're committed to making college more accessible by making it more affordable, that's why we're keeping our tuition the same through the year 2021. - i knew snhu was the place for me when i saw how affordable it was. i ran to my husband with my computer and i said, "look, we can do this." - [narrator] take advantage of some of the lowest online tuition rates in the nation. find your degree at snhu.edu. >>> welcome back our next guest was once top executive at google and now said free ad supported products can be bad for consumers and the country because of their inability to stay true to what users want out of their products gone on to launch neva, a search engine with a model that couldn't be more diff

what is your latest response to this from google >> well, response to google? first of all, i think again i think one thing that's going to happen and needed and been needed for a few years there's going to be regulation, more stringent regulation of big tech companies i don't know if there's anybody -- i don't know se-- who doesn't think that sensible regulation will be applied it will take place this year or next year and i think that will help -- i think that will help -- i don't think this playing field is ever getting leveled. google is a monopoly without question and so, you know, i've always argued with google that, you know, i think of it as if you live -- you know, i think everybody lives as a serf, old russian serfdom on the lands of google but i also think that it is -- i've said to google, it's wise to treat your serfs really well because otherwise they tend to rise up and overrun the castle and i think what will happen is that regulation is going to help provide that, so i have a lot of equanimity about what i think will happen in the next couple o

and working with google products so this was to be problematic. what happened was the vp of google cloud developer relations had posted this lengthy manifesto, sort of attempting to denounce anti-semitism but sharing a lot of personal anecdotes and kind of doing so by czarly, sharing dna results and he posted this on linkedin a month ago. and employees have been concerned about why he was allowed to post this you know, they have very strict rules about what they're allowed to post and get repair manned for it, they tell me they brought this up to the all-hands meeting they had this week and it turn out pretty contentious, they told me. there were sort of months of concern around his leadership and leadership attrition around him. and then this manifesto, which he, you know, pushed on linkedin under his google title and then also pushed on twitter, and youtube, really made them very uncomfortable and felt their concerns weren't being heard h.r. had to step in a couple of times during the meeting this week and that was the day before google had let

keeping our diners informed on google was so important. the support from our customers, it honestly kept us going. i will always be grateful for that. >>> welcome back to "squawk alley. it's been one of the biggest challenges during the pandemic and greatest opportunities in our lifetime, education and its future march of last year the pandemic caused more than 1.6 billion students to be out of school in 161 countries. that's close to 80% of the world's enrolled it's been a year since the start of the pandemic in the u.s over the next few days we'll look at what the future holds for educating the next generation, the future workforce. we'll speak with visionaries in the space to answer the important questions -- how will digital learning adapt as we return to in-person instruction? what will the learning models of the future look like how can the technologies we've adopted in the last year address the skills gap we'll speak with the education pl platform pearson you don't want to miss any of it big owa sh still today on "squawk alley. don'

cloud google also making a $1 billion investment into the cme. terry, the chairman and friend of "fast money." >> i want to wish you a very happy birthday i would sing to you but my throat is sore after talking to my board for the past several days about this deal >> i will look forward to another one. you do that. >> when i see this, i think of cost savings what is the cost savings in this >> you can point to cost savings, but it's growth and expansion of the business. when you look at where the world is going, revenue streams come and go every one is associated with technology when you have a new idea about an application or new procedure you want to bring into your organization, you have to have the technology associated with it sometimes those technology inputs could take years. if you are second, you are last. this is another way for us to capture revenues on a real time basis, getting under the google umbrella which is so large and fast and allowing usto grow ou business exponentially i am excited about the growth perspectives of this there

it's a big shift within google cloud. it has a low amount of market share and not comparable to amazon microsoft it is part of an effort by the ceo to streamline the company which is the technical unit of the organization has doubled since he jind. it will have either expanded or different roles. >> he has told us about his efforts to scale up the go to market, the sales organization in particular. more of an industry-led strategy trying to provide specific ai-driven solutions to customer s more quickly than competitors are. is it your sense that's what this is intended to do, accelerate that industry specific solution strategy >> it's definitely a part of that strategy and this move shows i think that thomas curian the ceo is not afraid to sideline some of the long-term veterans who have been at google for decades and that's what's happening with this re-org, notable there are long time googlers here lessening their responsibilities, moving to other areas of the company and i think that shows that thomas is kind of reall

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google launches google docs and makes it 10% of the price. you'll see this vibrant marketplace where steady hand and innovation and products and consumers are all in it will be a dogfight you'll see apple, google facebook, maybe one or two of them say, this will be a critical part of our future if the regulators allow it, we might see some regulated m&a activity >> the guard rails hold. assuming that they do, you are removing so much friction in the flow of money in spending. imagining that level of consumer and economic growth. removing this friction where we see it all the time. the ability to find a place to stay for an object you think about what idea did consumers embrace the most it was give me whatever you want to buy on the generation and it was for that simple idea let me control my money. don't screw me on the fees don't nickel and dime me that is a trend we are seeing in the gig economy. i think it will be a trend of post pandemic, if we ever get out of this thing, people please get your vaccines. it is a charged topic. we have had

keeping our diners informed on google was so important. the support from our customers, it honestly kept us going. i will always be grateful for that. so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. gumroad's latest round good morning, gentlemen. thanks for being with us s how does this move or doesn't it change the move in the start of ecosystem, democratizing, sort of like robinhood has done could it lead to more start-ups not vetted by vcs or investment professionals that do this for a living >> essential possible, yeah. funding around limit's up from one to five, first run was in 2015, i believe. there have been basically zero cases of fraud or scams i

google from 20 years ago of connecting the retailer to the audience, right. we're hearing from affirm earlier this week. max talking about how buy now and pay later, shopify has been a huge volume driver for that. and now even google like one of the names in volume turning to shopify for ecommerce volume is amazing. >>> staying with ecommerce shares reversing direction after losses grew in q3. courtney reagan joins us with more on how direct to consumer businesses have faired since going public inest thering quarter for them they raised their full year outlook and they are leaning in on investment here 35 stores they still plan and they argue, hey, look, you know, vertical integration, we don't get hurt as badly with these shortages. >> yeah, absolutely, john. i actually found a lot of interesting nuggets sort of in this call because it was the first quarter that warby reported results as a public company. we got to get more color and background information on sort of the inner workings and for so long i think so many people thought that stores just really we

i want to mention we have the first numbers from google crossing microsoft beat google to the punch. $65 billion in revenue $65.1 billion for google or alphabet the forecast was for $63.5 billion, so on the revenue line. just digging in to see what the eps has come in at eps looks like it's coming in at $28, which is a beat versus the forecast of closer to $24. but need to get to the guide on that because we're seeing shares slide a little bit down 1% in after hours trade. going to keep digging into those. mike, immediate reaction, slightly negative for google, slightly positive for microsoft, that's delivered a nice beat >> yeah, we'll have to look exactly what google is saying here about perhaps guidance, put that was a very healthy beat, but below what they have been beating at in terms of percentage outperformance in the last five quarters that's all i would really point to in the initial flush of the numbers. as we always say, the first reflex isn't always the enduring one. but microsoft has firmed up just a little bit i think, you know, if whisper numbers matter anymore, i thin

>> i actually think that google is trading 27 times. s&p is trading around 23 google is much more profitable and faster growing that could be viable i'm always hesitant about buying big information download like you have tonight microsoft is, i think, very expensive. you have a company that even if things go right it's trading at a peg ratio or p-e to growth at about four times its natural growth rate and of course, all these companies had some sort of benefit during covid they were beneficiaries and at some point they would start to naturally slow don't worry about google >> it does sound like google is your favorite faang name, at least. how do you think they've managed to escape the conversation regarding regulatory risk relative to their large peers. >> that's what i'm going to be looking for tonight because what ails facebook does not necessarily ail google or at least not to the same, nasty effect, but there will be some discussion particularly since these companies report so close to one another. let's see what happens in the mea

the exception, google has been outperforming the large cap indices. amazon has been trading sideways for five months, and i think they are very vulnerable to any type of disappointment in their report this evening. investors are really looking for any type of disappointment, top line, bottom line, aws services, increasing expenses, anything could send that stock down, and any issues around these megacaps are starting to make investors lose that love that they have in 2020, and they're looking a little farther down the spectrum, and looking for higher risk trades. so i think these reports are important. i think certainly amazon needs to blow the numbers away more so than google. there's definitely google's been still one of the stocks that investors have been loving, despite wall street loving them. i mean, the consensus recommendations, they're some of the top buy recommendations out there. i think that we are going to see a change as we go into 2021. also, just because small caps are expected to massively outperform they're expected to benefit more f

for me, i look at google, which has a big presence in ai, in cloud, they're in autonomous driving, et cetera and that's why that's our biggest position we feel it is -- we feel we can hedge out some of the multiple risks there, in the sense that it is in the overall market, right? big portion of the market by being short some of these incredibly high valuations against it so you're absolutely right, jon. it is difficult right now to be in that space with the view we have towards what will happen to valuations over a period of time >> i got to say, dan, i'm really digging the way you are exploring growth themes, especially in tech, but through a value lens you mentioned oracle, that would do it for you in the cloud you are hot on magna in evs and viacom in streaming. can you explain those two thee se sis? >> magna is trading at 11 pe you may have seen last week they had an expanded agreement with fisker, an agreement with google's autonomous driving division as well talks years back they might help apple get into the ev space. and so if you look at it at 11 pe 1.7% dividend yield, it i

pichai, do google employees analyze users content? >> congresswoman, we take privacy very seriously we don't use the data from g-mail for advertising and our employees generally do not access it. only in narrow cases, either to troubleshoot with the right consent and permissions. there are prohibitions in our checks and balances. >> i think what you're saying is occasionally your google employees do review and analyze. i have another question regarding that does google share g-mail users' emails or analysis of your emails with third parties? >> we do not sell any data i think what you're referring to is users could give api access to third-party developers. for example, there were applications which could give travel-related information so this is a user choice and it's an api on top of the platforms. we have done numerous steps to make sure users have to go through multiple steps before they would give consent to a third party. >> so i've looked through your google privacy statements and user content -- >> google, facebook and twitte

last week carter and mike tackled big tech earnings beginning with google. >> google is hovering right on the lower band it bounced well, but to reapproach it this quickly is a bit of a defect. second chart it's the exact same chart but i've included the 150-day moving average. now the 150-day moving average is 7% bee low where we are now >> i was looking at the close at the 2850, 2870 call spread that expired in november. you could collect a little over $6 for that $20 wide call spread that's a little over the distance of the call spread. kind of that sweet spot. >> carter, why don't you take us through what the stock has done since. >> sure. so this is an instance where playing for a catalyst, earnings event, and breakdown ended up being the exact opposite, which is something unfortunate if obviously you're short so the premises was that what was coming foreshadowed by the poor relative strength and the sort of topping formation would reveal that, in fact, the news was going to be bad, instead the exact opposite so this went right back to its august 30th high and today actually inche

president biden's scheduled to meet with lawmakers tomorrow to discuss the findings. >>> google it's the world's biggest digital advertising company. and it's making a change that could upend the entire industry. in a major move that addresses the growing call for more online privacy, the company just announced it will stop selling advertisements based on individual web browsing history. in a blog post, a google exec wrote, "people shouldn't have to accept being tracked across the web in order to get the benefits of relevant advertising. cnbc's deirdre bosa now. why this change? >> reporter: well, shep, because privacy has been a really touchy subject for the tech giants over the last few years and google is determined to prove that it is on the side of consumers last year, google announced plans to phase out browser cookies. those are small pieces of code that follow you around the internet and can be sold to advertisers for better targeting, kind of like if you google treadmills, and suddenly, ads for pelotons start popping up on every other site that you visit. well, today, google

at google headquarters in mountain view, california, 11:00 a.m. on wall street, and "squawk alley" is live ♪ ♪ ♪ ♪ looking out my window ♪ >>> happy monday welcome to "squawk alley." i'm jon fortt with carl quintanilla and djulia boorstin the competition director on possibly breaking names up an inside look at facebook's independent oversight board and why unions are suddenly cropping up in and around silicon valley. we're going to start with this disconnect between fundamentals and valuations hit me baby, one more time traders are looking at this market like a genie in a bottle. britney spears and christina aguilera songs, you'll get them looking at a chart of tesla or snowflake or gamestop up over 100% i'm not trying to say this is the dot-com boom all over again but this is what it was like when you had certain stocks which had a clear story behind them soaring beyond the story, beyond the fundamentals, and you had people who made money in that name justifying staying in it and valuations that the math couldn't make happen i know you

d deirdre bosa, can google be stopped? >> yes, it can regulators are working on that when you read these notes, regulation is almost like an afterthought i was reading the piper sandler one, it says regulatory doesn't look like an issue, dot, dot, dot, in brackets, yet. what i worry about is who investors are complacent regulation likely is not going to be one moment where the company is broken up it will happen overtime. we're already seeing this happen google has been fined more than $10 billion in total on either side of the atlantic that has not done much the next thing is looking at structural changes europe is doing this the draft rules put out last month were some of the most aggressive since gdpr. we don't know if this will result in action, but it is treated like an offthafterthougt even with the biden administration, which some think will be friendly towards big tech, it will be hard to stop this moment. >> jon fortt, i remember the earlier days in my career when i talked about microsoft the same way that we talk

you negotiated a billion dollar deal with google a couple weeks ago. you have had a couple weeks to think about it, look at it and take a deep dive from a different advantage point. what are your thoughts a couple weeks out? >> a good question now we have had an opportunity to catch our breath and let the market absorb what we did with google i am hearing a lot of positive things from both sides, banks and other participants i think they realize this could be a massive cost saving i didn't talk about this last time, but a little bit about cyber and what it means to be under cyber watch. it's amazing i heard karen talking about how google is a growth company they are a very forward thinking company. i think a lot of people realize what the benefits could be on this goggle deal even though the investment was interesting, we won't be talking about that we will be talking about the benefits over the next ten years and beyond >> this is karen you are a master of the trading dynamics is the retail traders this time different, and how do you think this plays

can apple and google buy their way out, slap a #too big to legislate on a bumper sticker? no they are going to be held accountable and we will in the end get the relief we should have and the fair open marketplace based on choice we should have had all along. >> we could see more lawsuits. we'll save that topic for another day. we'll talk to you again soon >>> 24 hours from now we'll be in that house hearing on robinhood and gamestop kate rooney with a preview hi again, kate >> carl, the focus of the house hearing tomorrow is on halts we saw for those reddit stocks in late january we expect to hear questions about market manipulation in the era of social media and stocks colliding. among those testifying robinhood ceo vlad tenev, melvin capital and reddit ceo there is one non-ceo on the list, though, keith gill he's best known for promoting gamestop stock through his youtube videos robinhood's 33-year-old ceo has come under, by far, the most public scrutiny of that group. tomorrow is seen as a big test for robinhood ahead of an ipo. for those coaching vlad commissioner dan

and use case studies like google and google plus and the failed social network project that they had worked on. and there's a lot of new projects out there the reason why it's so hard is start ups have the advantage of being able to start small. they can go from starting on a college campus and once they get that working, they'll go to another college campus as tinder did and snapchat did they can go from one team to the other versus when you're at a big company you want to generate big numbers fast and it makes it hard to create strong network effects in that way. and so i think that these larger companies, they, obviously, are out competing, launching new products all the time. but it's been a long time since we've seen a successful start up actually completely outcompeted by one of the big guys >> well, it's fascinating to look at these trends as we look ahead to web 3 andrew chen, thanks so nmuch for joining us >> thank you for having me. >>> the ceo of c3ai told us, quote, everything would be fine. was he ight? a lot what is behind in the move in the stock today >>> that downgra

i mean, when you put it in context, google search revenue was $11 billion more this year than last year at the same time. john, it just kind of begs disbelief. same with microsoft. i mean, firing on all different cylinders. we talked about cloud and pc and what about gaming heading into the holiday season >> this makes perfect sense. we talked about this set up on monday the contrast between the sort of consumerish targeted economy affected by the ios changes and the enterprise software market that is really not carl, i think google is an interesting case because when you look at search, search isn't about targeting a particular person that you need information on through ios it's targeted to the search query. youtube, similar specific content that you can target the advertising to. more first party data versus having to rely on the third party and the signal is different from having to get that signal on who the person is from the device or the operating system itself. so, based on strategy and based on the degree to which the companies themselves are relying on their own data, i think

are three stories in tech, 30 billion gone in snap, stock tumbling 20% then another ecosystem play, google changing its app store model, cutting fees, names like bumble, match and roadblock soaring. third stock at play intel, shares are sinking as sales miss and the company sees a tough road ahead for its turnaround. you will not want to miss pat gelsinger in a first on cnbc interview just a few moments from now we can't wait for it, jon. >> we are looking forward to it. s&p is just about flat we did hit an all-time high this morning, though. september's poor performance firmly in the rearview mirror. all three indices are set for their first three weeks in the green since july nasdaq just fractionally lower, about a little less than half a percent. tech has been under performing ahead of next week's earnings from apple, microsoft, amazon, alphabet, facebook and twitter julia, who is not reporting next week >> well, that's the question is who is not reporting next week, but we heard from snap chat and that's where we start right now. that stock plummeting, citing the privacy changes. that

google announcing the sign of 50 million paid subscribers for youtube premium. this includes both those just paying for youtube music as well as youtube premium subscribers, they sign up for the service, they get music as part of the broader youtube premium service. that is ad free access to youtube as well as original content and it also includes customers on the free trial. because of the user base, it is tough to compare this 50 million number apples to apples. spotify reported 165 billion paid subscribers this past quarter and apple doesn't break out its music numbers on a quarterly basis. but did boast about 700 million paid subscribers for all of its services tomorrow we'll be talking to youtube's chief business officer robert kyncl about all the numbers to break down youtube's impact across entertainment and music landscape, but i'm excited to talk to kyncl tomorrow. but youtube has really been building this subscription service while everyone has been talking about ad revenue, they have got this whole other game in the works >> yeah. not apple subscriber

and microsoft reported fantastic quarters wall street appreciated only google because the last google did report by far its best quarter ever i want to take them in descending order i want to start with apple not only did apple deliver a monster earnings beat which you probably don't even care about because the stock was down, but it's also a monster revenue beat and that matters to me every product category came in higher than expected in particular they did $39.5 billion in iphone sales. that's nearly 50% growth in a business that people said had no growth, okay and by the way, a lot of that is to the growth of apple's service revenue stream and the cut they take from the app store, the margins were up huge year over year this is just exceptional these were record numbers across the board. how about the guidance on the conference call the ceo said to expect double digit revenue growth during the september quarter although lower than a 36% growth he warned that apple just reported. some of it had service business up against difficult comparisons. the third reason upset wall street li