Transcripts For CNBC Squawk Alley 20240714

Pretty hot space survey monkey is in this space as well being able to collect data not just from the world at large, but customers, btoc, part of this whole transformation we keep talking about leslie picker will have the ceo later on in the hour got to start with microsoft, though, this morning, obviously beating the street on the top and the bottom line, upping its guidance and widening its lead jon, you know the Company Really better than anyone are you impressed at this point, at least with growth in cloud . I am, carl, because cloud has become at once so important and then nonsensical at the same time it used to be, you said cloud, you sort of knew what people were talking about oh, its those servers that are out there that are storing enough now cloud has become such a mainstream enterprise story. You have to ask questions two, three layers deep to figure out exactly what is the company talking about when they talk about cloud . Do they really have a fundamental technology are they a flash in the pan . Do they have staying power and microsoft is proving that it really is in this race with amazon and there are questions about who else might be in there in the top tier of the megaskill cloud. And i really think in this latest quarter, ending fiscal 2019 for microsoft, they showed a lot of cloud depth part of that is because their margins expanded from 67 to 69 gross margins, even as they beat on revenue by almost 1 billion top line but at the same time, they showed its not just about azure. Cfo amy hood talked about in these deals theyre doing more broadly with azure, theyre also able to tie in office 365, get longer term, bigger value contracts with that. And then down the line, we also saw linkedin continues to grow 25 plus year over year, as that business gets entwined, also with other microsoft businesses. And even if youre talking about windows, carl. If youre talking about more personal computing, the Gaming Business didnt do so well you dont really expect that the middle of the year, but the surface business is doing well windows mix is good toward the higher end you get the sense that these businesses are actually making the other businesses stronger. Thats what you want to see if a business is going to stay profitable and grow. We talked this morning about nadellas the low expectations he had of coming in, but also the low expectations that linkedin had and its impact on office yeah, i dont know if i had low expectations of linkedin the significance of linkedin for me here was reid hoffman, a born and bread sort of Silicon Valley company linking up with microsoft, the big bad wolf. No one in Silicon Valley liked microsoft five plus years ago. Now microsoft is a mainstream platform company, perhaps more friendly, arguably, than amazon in the valley, but, yes, Satya Nadella benefited not only from being brilliant in server and tools and cloud, which he helped build within microsoft, but also, its not a popular opinion, but Steve Ballmer gets too much of a bad wrap that Windows Server business, that enterprisebusiness really grew in microsoft under his tenure he did not get the valuation benefit, but dont cry for him, because hes the number one individual shareholder in microsoft. Hes getting paid now. Were okay for steve. Interesting story, well watch msft meantime, turning to crypto, k Facebooks Libra continues to face scrutiny. And now you have india announcing plans to ban all crypto our next guest calls the idea, quote, pathetic and corrupt. Joining me today, billionaire tech investor tim draper its a pleasure to have you on thanks for the time. Great, thanks for having me do you consider this week a bruising for crypto at large or not . No, actually, its bringing it to light. I think its good to have people talk about, but the more they talk about it, the more they realize how important bitcoin is going to be for the planet, for all of us that we wont have to pay 2. 5 to 4 every time we swipe a credit card. Were going to have an open currency that we can move from place to place easily. I think were all going to be better off once people start to really understand whats going on this is one of the best things thats ever happened to us its one of the greatest opportunities weve ever had and so bitcoin and the decentralization of the world and the opening of the world are going to be terrific for all of us i think the world is going to be a much better place. You wait 10, 15 years. Were going to end up with one great world and the borders are going to be much more, it will be much less frictionless to do business around the world. The argument that were what about the argument that were really now in a postbitcoin environment when were talking about crypto on the one hand, yes, bitcoin was the brand associated with cryptocurrency, but on the other, its been kind of volatile you have facebook at least putting libra forth. It seems inevitable that governments are going to put some level of regulation on cryptocurrency even as they embrace it is it time to get beyond talking so much about bitcoin when we talk about crypto . I think its just the opposite i think all of these other cryptos are bridges to where we have a bitcoin environment and i think the governments are all trying to figure it out. It turns out our government has a lot of heavy regulators and theyre all trying to get involved here. And thats slowed down the u. S we have where other countries i mean, why is libra in switzerland why did all of these other cryptocurrencies get started in gibraltar or malta or somewhere else its because we have so many regulators and so many people getting involved before were able to innovate im afraid that all of this incredible innovation thats happening around bitcoin, the block chain, smart contracts, open node, all of these extraordinary things are happening out there, and thaeyr going to go to other countries if we dont open up and we start realizing that, hey, lets let some of these things happen. Lets let people open up and see how things go. Because otherwise, were going to lose were going to lose a lot of innovation here in the u. S. And all of those great innovators may leave but doesnt there have to be some level of regulation here . I mean, weve seen through facebook, Cambridge Analytica and other incidents what happens when there arent some guardrails on the internet in general, personal data what sort of personal information or data is more valuable than Digital Currency i know youre for openness and letting a thousand, million flowers bloom, but dont there need to be some gardeners here i think whats happening now is were putting regulation before the innovation. Facebooks just nound leannounc yet. Let them ship the thing. Lets see how it happens lets let things roll. And then if theres a problem, then great, now its time for regulators to step in. If theres something thats hurting humanity, actually, the i think the things that are hurting humanity are all the regulations that are keeping us from all of these amazing innovations. So when the treasury secretary and i think he was referring splaeecifically to li, said its based on thin air, have you addressed your concerns with the administration, at least on their level of doubt . Well, the dollar is based on paper and the promise of a government you know, we have long since left the economy that uses shells or gold or even the promise of gold, were way past that currencies are ethereal and the value of currencies have to do with people honoring them, trusting them and that trust is there for bitcoin and the trust will probably be there for libra if the government lets it happen and i think well probably all be better off. We wont have to pay the banks 2. 5 to 4 every time we swipe a credit card. Well be able to move our money across borders, like if youre in libya and the military comes in and shoeskand shoves you out, you have a lot of libyan currency, youre not going to be able to use that in greece youre stuck in a refugee. If you had bitcoin, you would be able to move across that border, pull down your bitcoin, and start your life again. I think this is a major opportunity. The world has never seen anything like it i think the geographic borders are falling and i think that makes a lot of government officials become a little nervous because theyve built their power on the fact that were all tribal, but were global now the world is opening up and governments have to compete for us governments have to think how can i provide good service to my community . To my society . How do i make my community more happier . Theyre going to have to think more the way businesses think. Businesses think, how do i provide a Better Service for my customer king governme i think goth governments will doing that or theyll lose the innovator and all the progress that humanity has in the future. Those are the arguments were getting from a lot of supporters of the concept at large. Finally, tim, i dont want to have you on and ask about theranos every single time, but viewers are legitimately curious about whether your views of theranos or holmes have evolved since we last spoke to you oh, i think its pretty much the same were very happy continuing at Draper Associates, were continuing to innovate, to fund new entrepreneurs, good entrepreneurs that come to us and say, hey, im going to transform health care as we know it im going to take people to mars im going to do extraordinary things i like backing those people. I will continue to back those people and you still include her in that group and actually, i think that theranos actually did open up a great industry they are not going to benefit from it, but weve seen 15 other startups that are all using Similar Technology so, yeah, our blood tests are going to be much easier and were going to be able to keep track of our blood tests over time. So were going to know whether our what happened to our blood over time, our blue glucose levels, vitamin d levels, whatever happens, and well be more aware of our health and i think data is going to be a much bigger part of health care i think were going to be in a situation, we have a Company Called cloud medics that actually outperform the average doctor on the test, the doctor test they ended up scoring an 85 whereas the average doctor scores a 7 diagnoses people based on the complaints they have theres all that data. All of that data is going to be incredibly powerful as a diagnostic tool. And it wont just be your medical records, it will be your genetic history and your blood test results and your fit bit results and what you had for breakfast and what seat you sat on the airplane. All of that information is going to be available and so were going to have much better diagnostic tools than any doctor could possibly provide by asking a thousand questions this is going to be really interesting and health care, as we know it, is going through a rapid change this is really exciting. And i think, i think the transformation of health care and the transformation of our society through the decentralization are two of the major themes that were going to be using at Draper Associates going forward. Tim, good to have you we hope youll come back tim draper, joining us this morning. Happy to be here. Thank you. Getting some headlines from bullard this time. Steve liesman has got that he was listening to your conversations about cryptocurrencies and he has a presentation at the new york fed at this time on cryptocurrencies, where he said hes concerned that cryptocurrencies could push the u. S. Towards nonuniform, that is a manycurrency system, kind of similar to what we have internationally, but not within the United States. He warns that Exchange Rates are excessively volatile, so if you have that, you create volatility in Exchange Rate and hes worried about the collapse of a company, for example, that issues cryptocurrencies and points out theres always a chance that a currency, that is, any currencys value can fall to zero now, he points out that these currencies have to be reliable and hold their value and he says when you accept the cryptocurrency, it means you accept the Monetary Policy of that currency. So, jon, a lot of fed folks are sort of figuring out what to do with this currency thing and bullard gives this kind of theoretical discussion of what a currency is and how a cryptocurrency comes in with that and he said theres some downside skbrand upside one of the things he worries about is it will facilitate illegal trade. Jon . A lot of people dont want any regulation in this stuff doesnt look so likely steve liesman, thank you now lets head back down to the Kennedy Space center and Morgan Brennan. Morgan, what have you got coming up later this hour and all day today . Oh, my gosh, i have so much coming up, jon first, lets start with the actual location im standing in right now. This is one of the most famous locations on planet earth when it comes to space. This is launch pad 39a it was from here 50 years ago that the apollo 11 mission blasted off to the moon. In the decade since then, nasa used this site for the Space Shuttle program and after that was retired in 2011, it sat dormant until nasa decided to save taxpayers some money and open up this site for commercial companies for bidding. Spacex won the lease for this site, by the way, over the protests of blue origin, in 2014, elon musks upstart signed a 20year lease. And since then, has invested hundreds of millions of dollars into this launch pad and made some history of its own. It really speaks to the rise of commercial space, when we talk about then, apollo 50 years ago, and now and this entrepreneurial space age that we are on the cusp of entering were going to talk about that throughout squawk alley over the next hour. Its something you dont want to miss so stay tuned all right, morgan cant wait when we come back in the meantime, elon musk, jeff bezos, richard branson, what about the space billionaires that youve never heard of morgan will tell us about them, so do not go anywhere. Dows up5. 7 of savings and service. Whoa. Travis in it made it. Its amazing. Oh is that traviss app . Its pretty cool, isnt it . Theres two of them. Theyre multiplying. No, guys, its me. See, im real. Im real he thinks hes real. Geico. Over 75 years of savings and service. While elon musks spacex and Jeff Bezos Blue Origin grabbed the majority of the space headlines, its the Companies Like cr nevada who actually get a lot of the space work. Our Morgan Brennan has more on the billionaires youve never heard of morgan reporter hey, carl, thats right. We talked so much about this billionaireled space race, whether it is elon musks spacex whose launch pad im standing at or blue origin, sir Richard Bransons virgin galactic, but they are not the only ones plowing major money and resources into commercial space. F fati and aaron osmond behind the Sierra Nevada corporation are the other billionaires funding space. The vision in general has been the stuff of innovators so our claim to fame is that we can come in and challenge the status quo and bring affordable, innovative solution. Reporter theirs is the story of the american dream. Turkish immigrants who came to the u. S. With virtually nothing. The osmonds bought out their small employer in 1994, using their home as collateral, building a defense heavyweight that competes against the primes, growing from 20 employees to 4,000 snc expects to generate more than 2 billion in revenue this year but for the past decade, the osmonds have been investing in another big bet. Commercial space we saw the future in space, that was our first acquisition Company Called microsand, building small satellites. So i was talking to people about small satellites, their eyes were rolling saying, youre like were not ready for this it may never work. And look where we are now. Everybody is now building thousands of satellites. Reporter fatih expects sncs business to triple in size in the next five years and space will be crucial to that growth Sierra Nevada is a Systems Integrator if you look at spacex or blue original, they are building rockets, a singlefocused company, really owned by people who have many other businesses, thats not their primary focus branson, you know, bezos, and musk but this has been our sole focus. Reporter sncs reusable space plane, dream chaser, is scheduled to begin Cargo Missions to the International Space station in 2021. And the companys habitat prototype is overgoing tegs at Johnson Space center as it competes to become nasas lunar orbiting gateway station, which is part of the u. S. Plan to bring people back to the moon do you think the u. S. Gets back to the moon, boots back on the moon in the next five years. Yes, provided that theres a caveat there we cannot do it in the national way we did before. We need to think differently we need to leverage the commercial space and sbr entrepreneur Companies Like spacex and blue and others to find the best. Reporter the osmonds preferred to avoid the public eye until now. Thats a change hour approach its been prooivately held, 100 owned. No shareholders, nobody else we didnt see the need and it actually helped us in some of the programs we didnt know but now its differently visibility is important because when people dont know what we are doing, it works in a defense environment, but this is a lot different. Reporter so i did ask fatih, since he and erin 100 own Sierra Nevada corporation, whether they would ever consider taking it public or raising money from outside investors he said he would be open to some of these different possibilities but that theyre very interested in the possibility of maybe a strategic partnership. It would have to be a situation where investors that came in were adding some sort of value and not just basically cashing a check and walking away but i also asked him about consolidation, because were seeing that more broadly in the aerospace and defense industry, as well. A little bit of speculation around some of that that weve seen, but says in general, when you talk about the tier 1 companies, which are really the defense primes that theyve been doing business for a very long time, its a very comfortable environment, and really calling them one of these too big to fail situations. One of the reasons that they are so excited about commercial space, you have these startups and new companies that are coming in, snc included, that are in a position to innovate and disrupt. He sees that as a real opportunity for a company like snc, because he doesnt see a lot in the muddtier of the market right now the last thing ill just say, when you talk about the story of these two space billionaires, they were very motivated by apollo 11. Fatih was watching it back in turkey on television when it happened 50 years ago and erin heard it on the radio. And fatih telling me it was a very big inspiration and one of those things that helped droouf th drive them to this point today zp literally a new frontier. A lot more to come from morgan bren nan later on this hour leslie picker is back at post nine with another debut the Customer Experience company medallia continuing the trend of recent ipo successes. Shares surging 60 in early trading today. Joining us now first on cnbc, the companys president and ceo, leslie stretch, another leslie we were talking earlier today that this company is getting a very high multiple shares are surging today, but its not immediately clear what you do and where you operate Customer Experience, Artificial Intelligence, gathering signals on the internet. Can you enlighten us on exactly why investors are clambering for your stock were a Silicon Valley tech company. A platform that helps some of the biggest brands in the world really understand their customer in live time and communicate with them while theyre in an experience instead of a survey, they check in on the experience, improve it helps them retain their customer and its this that helps so a signal somebody has a bad experience at the pool or on an airline and they dont quite like the service that theyre getting, they can feed back that immediately. Instead of waiting until the experience is finished so were all about platform and signal and were very different from the survey companies, the feedback companies, which are the old experience economy companies. The application of deep Silicon Valley technology to the problem. Now, youre relatively new as ceo. You joined about a year ago. And oftentimes, especially with these ipos, we see investors really kind of prefer founderled companies to go public but since youve been ceo, youve really helped drive Revenue Growth, which has been pretty its fluctuated over the last several decades since your company has been around what would you say is responsible for that Revenue Growth under your command . And how do you see it perpetuating in the future i think Customer Experience has become a really major theme for every big brand in the world today. I also think that our technology is innovative and very different. The application of Machine Learning and the platform. And just the operationalization of a private Silicon Valley company is what ive done in the past and so just bringing basic blocking and tackling to go to market and marketing and building up the sales force. So very simple and taking the story out to a bigger market this is a competitive space youre in. Sap just bought qualtrics. Survey monkey and adony is in there. Hoye important is it going to be for you to partner more effectively with some of the bigger players like your adobes and sales forces work on your api. Whats your strategy we actually just signed a Revenue Partnership with salesforce we have a partnership for marketing cloud adobe. So theyre great alliances for us and we can present our Machine Learning, our unstructured data into their marketing cloud, sales cloud, and service cloud. Thats brandnew this year its great to go to market with partners like that in terms of collecting data on customers, there have been a lot of complaints surrounding privacy, around usability of that data. If there is further legislation, how does that impact your business, which seems to center around just this data cultivation and sharing it with your customers we spent nearly 500 Million Building this platform and that sets us apart from the traditional Simple Survey vendor we spent a ton of money on the privacy layer, the security layer and worked for a decade with some of the biggest brands in the world whose customer information is precious. Were hippa certified as well. We take that very seriously. We invested a ton in it and its worth it leslie stretch, ceo of met d medallia, thank you very much. As we head to break, take a look at shares of crowdstrike, surging up nearly 10 . The stock at 82. 73 a share were back after a quick break well let the market dictate the pricing. I think what were focused on is really building longterm value for shareholders and obviously make sure that our customers are protected. And thats theay w we built the business focusing on preventing breaches for our customers. For your heart. Your joints. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally discovered in jellyfish, prevagen has been shown in Clinical Trials to improve shortterm memory. Prevagen. Healthier brain. Better life. Im frank collin. Heres your cnbc news update at this hour. European Council President donald tusk in montreal for trade talks with canadian Prime Minister justin trudeau. Both have criticized President Trump over his verbal attacks on four female members of congress. I think the comments made were hurtful, wrong. I want everyone in canada to know that those comments are completely unacceptable. And should not be allowed or encouraged in canada mourners gathered outside the building of a kyoto Animation Studio where 33 people died an suspected arson attack flowers were laid outside the structure where a man burst into that building, set it on fire. A dutch still life paint stolen by the nazis have been returned the Foreign Ministers of germany and italy were on hand for the unveiling of base of flowers, a master piece by dutch artist jan van heisem after the break, the founder of oculus and Defense Company lm luckey joins us thats less than three minutes away stay with us it is not just the title of worlds most valuable company that microsoft and amazon are fighting over, its also a potential 10 billion pentagon cloud contract up for grabs. Take a listen to what the president said yesterday about it were looking at it very seriously. Its a very big contract one of the biggest ever given, having to do with the cloud. Well be asking them to look at it very closely to see whats going on, because i have had very few things where theres been such complaining. Not only complaining from the media or at least asking questions about it from the media, but complaining from different companies, like microsoft and oracle and ibm ibm in particular did send me an email indicating their concerns about perhaps just one Company Getting that contract. Were joined now by palmer luckey, the founder of andero industries and also the cofounder of oculus vr palmer, good morning thank you, im glad to be here so whats your take on this jedi contract . There are a lot of people in this process who feel like its going just fine and just sour grapes to those whop perhaps wont get a cut . You know, i cant comment on a specific contract negotiations what i am glad is that microsoft and amazon are both willing to do this contract in the first place. Theres a lot of u. S. Tech companies that have been pulling out on the dod and specifically google said they were concerned about working on the google contract for ethical concerns. Im glad that microsoft and amazon are still in there fighting this. They are willing to work with the military i think we could use a lot more of that and i would love to see more companies in the mix. I would note that four republican congresspeople, mac thornberry, elise stefanick, Robert Whitman and Michael Turner did send a letter to the president encouraging this process on jedi to continue to move on a pace, saying, quote, we believe it is essential for our National Security to move forward as quickly as possible with the award and implementation of this contract. Now weve talked before about Silicon Valley and the u. S. Government and the importance of the government having access to the latest and greatest in ai. Thats why you started anduril as you continue to watch the ai space, the advances on both sides on this, how do you feel about the u. S. position i think were in a very good position right now we have some legacy advantages we also have most of the best universities we have many of the best sciences that are working in this area. But what we need to realize is we are definitely at risk of falling behind theres a variety of reasons for that but one of them is that countries like china are willing to work in Artificial Intelligence with very little regard to ethics theyre willing to surveil their population en masse to help train their ai systems im not saying we should do that, i dont think we should. But we need to find other ways to stay ahead of china and russia and making sure that we are using Artificial Intelligence in a responsible and ethical way. And that is going to be one of the challenges in the next few years. Morgan, do you have a question i do. Hey, palmer, good to see you you mentioned google when google pulled out of another pentagon project, anduril was able to step in and take over that contract. Im wondering what you think in general given that you have this insight on the relationship between the dod and the tech world, whether you think the u. S. Should be considering investigating googles ties to china . Got it. I obviously cant talk about most of our contracts for obvious reasons. We have to keep our work confidential but i was surprised when google pulled out on that i think they were making a mistake and the wrong decision for the wrong reason there are a very vocal minority of people who are concerned about the idea of the United States using Artificial Intelligence as part of the department of defense, but i think its really important that the United States maintains a technological leadership i think its important that our military retains a technological leadership and the only way were going to be able to set technical norms for the entire world in Artificial Intelligence if the United States is the leader. We did exactly the same thing with Nuclear Weapons if we had not been the leader, we would not have dictated the rules. Imagine if the nazi were the first person to make practical Nuclear Weapons. Imagine if the russians were the first people to make practical Nuclear Weapons. And imagine if the United States best scientists had said, were not going to work on this at all because we think the ethical implications are too thorny we would be in a very different world today and it would not be the world that we are in right now and it would be a lot worse. When you talk about, palmer, the startup landscape right now and the fact that maybe theres not that many startup defense contractors out there other than maybe anduril, on the space side, there does seem to be this emerging marketplace right now and while a lot of its focused on commercial space, some of that is also going to be National Security contracts. How would you assess that part of the market . The reason i started this company is, i sold my last company, made a lot of money and i wanted to work on something that would make the work a better place not the trite version that is spread around Silicon Valley, where people pretend that better advertising algorithms are making the world a better place. And i think that youre seeing a lot of stuff in the private space sector, a lot of really cool stuff in the cybersecurity sector and the Artificial Intelligence sector, but i think that we need a lot more Companies Getting into defense its very difficult to do business with the dod as a small company. Theres only two big Success Stories in the last 30 years working with dod its palantir and spacex and both were productfocused companies. Both followed a lot of the same strategies but one of the things those two companies have in common is that that they were founded by billionaires and i think thats pretty messed up right now, in order to make a successful Defense Company, you have to already be a multimillion Defense Company or get a billion from someone else. We have to change our machine so these Smaller Companies can do significant work finally on vr, what do you say to people who argue that we should be farther along in terms of mass consumer adoption of the technology at this point based on conversations we were having a couple of years ago i think things are going great. The thing about Virtual Reality is it is an inevitable technology it is potentially the final Technology Im still a huge believer in vr if you cant tell. Everything that companies are doing today are really just dictatie ining how long its goo take before it becomes the mass Market Technology that dominates all the other ones i think things are going pretty well a lot of people who are complaining about the adoption of Virtual Reality are basing that complaint on figures from analysts that were years ago predicting that things were going to go a lot faster than they were. If you talk to the people who were actually building this stuff, talk to the people at sony and htc, many are pretty happy with how things are going. Could things be better yeah, but i think Virtual Reality is doing fantastic i think it will continue to do fac fantastic and i cant wait to see what happens next there. All right some of those folks wouldnt mind if it were moving on a little faster, but point taken palmer luckey, cofounder of anduril. Thanks still a lot more from morgan at Kennedy Space center after the break as the s ps gone red. Well watch this one backft ts. Aerhi Johnson Johnson is a baby company. But were also a cancer fighting, hiv controlling, joint replacing, and depression relieving company. From the day youre born we never stop taking care of you. Im melissa lee in for scott wapner today at noon eastern, the worlds biggest money manager says stocks are going much higher from here weve got the best ideas for your money right now and microsoft is on cloud nine, hitting alltime highs the other cloud names that are in play. And it is the call of the day. This payment stock is up 40 this year. Why it may rally double digits from here. Weve got lots to talk about this friday. Jon, well see you at the top of the hour cloud nine. I like that. See you soon, melissa. Lets get to nasa. Their longterm plan, returning to the moon, colonizing it, putting in a rest stop and getting to mars. Morgan brennan has more from the Kennedy Space center in florida. Morgan reporter i couldnt have said it better myself, jon in the 60s and 70s, there was apollo today, its artemus. This is wildly ambitious, to put a man or a woman on the surface of the moon in the next five years. Establish the moon as a way station to go to mars and for other deep Space Exploration so one of the companies that was working on apollo 50 years ago and is here already working on artemus today is boeing. Its building nasas super powerful space launch system or sls rocket we have that ability to do the large scale thinking and the largescale integration. I think thats going to be key when we start getting even more complex missions for artemus and start putting all of those major pieces together that somebody has to oversee and make sure they all work well together. Reporter so boeing along with north american aviation and douglas aircraft were really the biggest contractors on the sat turn 5 rocket that took humans to the moon for the First Time Since then, boeing has aacquired both of those companies. Currently, nasa says that sll will be the rocket that takes astronauts back to the moon, including a lunar orbiting space station, something thats going to be called the gateway, of which there are five companies that are competing those companies, bigalow, nor northrup grommond. A lot of this is going to come down to cost sls is not reusable. Its already billions of dollars and years overschedule and as we heard from the nasa administrator, Jim Bridenstine just yesterday, if theyre going to pull this off, especially in the next five years and do it to the tune of only, maybe an additional 20 billion over that time frame, thats going to mean getting a lot more creative in terms of Public Private partnerships and models they implement and the commercial companies that they pull in to do this. Indeed, Morgan Brennan for us there at the Kennedy Space center and when we return, a disruptor or just plain disruptive r rahel solomon explains electric mopeds are emerging. 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Forget ride sharing and scooters and bikes the newest way to get around new york city is electric mopeds rahel solomon is not joy riding around brooklyn despite of what you heard in the tease she is there with the story. Rahel . Reporter nod joy riding but having a lot of joy, john, perhaps . Were seeing emopeds emerge as a contender in this market the company that im riding now, they are all over the place in brooklyn, in queens, so the bright blue things, you see them everywhere, tops at about 29 Miles Per Hour you can seat two people. Hardest part i would have to say is probably parking so lets see how gracefully i can do this it start with 1, do you it on an app after that its 25 cents per minute you do have to have a drivers license, a valid drivers license, you have to be 21 years old to do it and you cant have any duis, so they screen people beforehand the company revel, relatively new, started in 2018, launched with just 68 mopeds. From there in late may of this year we saw them expand to 1,000 mopeds and since then, the company says they have seen 200,000 rides between the two burroughs. The ceo telling us they have on average 750 people signing up each and every day now we do have other players in the market, when you i have micromobility, you think bird, you think lime, but those are more scooters and bikes. Now, we do know on the west coast that bird acquired scoot a short time ago and theyre planning on launching a line of emopeds later this summer so a bit of a competition there with revel. In the meantime, theres a lot of opportunity for the company to grow. Take a listen. I mean, when revel thinks about expansion, really theres priority number one. Does the city want us . Are we going to be a value add to that community . That is literally, that is the top and only priority sort of to just set the bar reporter so in addition when they think about expanding, theyre think being a place with a lot of people. Theyre think being warm weather, sort of like it is in new york city right now. Its about 100 degrees, at least it feels that way. While there are plenty of opportunities to grow, theyre thinking about moving into the south at some point and expanding in new york later this year while there are plenty of opportunities to grow, there are challenges, regulatory challenges for one and safety concerns we talked to some users. Take a listen to that. Riding in the bike lane, riding in the wrong way, no helmet, running red lights, running stop signs and theyre giving cyclists and people who ride these responsibly a bad name reporter okay, so all of that said, lots of opportunities, some challenges as well, but the Consulting Firm mackenzie says by 2030 they expect this to be in the u. S. A market of 200 billion to 300 billion. Carl, we expect to see probably some more players in the market until then and a lot more competition. All of this happening in brooklyn carl, back to you. That is a live shot, because we were wondering, rahel, if that was going to go viral that clip of you on the moped we have to talk about that. She was on a moped and got off and she walked the geico commercial with the guy who bowls a strike and wins the dance competition. Hes got nothing on you. Reporter and in 100 degrees, guys, no big deal, just saying yep, you cant have notes when youre on a bike. Rahel, great stuff, thank you. S p still red. Squa squawkaly is back in three minutes. Dont go away. And this is hals relief, knowing hes covered. This is hals heart. And its beating better than ever. This is what medicare from Blue Cross Blue Shield does for hal. And with easy access to quality healthcare, imagine what we can do for you. This is the benefit of blue. Morgan brennan what have he got coming up from where you are in florida reporter so much more, john, butily leave you guys with this, a comment basically from apollo 11 astronaut michael collins. He thought their Onboard Computers 50 years ago were so sophisticated, but today, we walk around with more power in our smartphones, in our pockets, speaking to how much space contributed to our daily lives amazing story, amazing anniversary, amazing shot. Great work, morgan have a great weekend, everybody. Big week next week lets get to melissa and the half. Welcome to the halftime report. Im me his is alee in for scott wapner are investors still not being aggressive enough on stocks . People are underinvested in equity even at record levels, the worlds biggest money manager says youre not invested enough. Is blackrocks larry fink right . 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