Transcripts For CNBC Squawk Alley 20240713

Good thursday morning. Welcome to squawk alley. I am Carl Quintanilla with Morgan Brennan and jon fortt at post nine of the New York Stock Exchange record highs as you know by now, up almost 250, yields close to seven week highs carl, we have record highs in all three major indexes. You can see behind me, you look at those particular moves with the dow, s p 500 and nasdaq, we will put stars next to every one, record highs for every one of these indexes, and trade optimism fueling a lot of that you look at sector leaders over the course of the past month that pushed those averages toward record highs, within the s p 500, financials, industrial, technology up 10 for financials, 9 for industrials, technology up 7 . These two sectors, tech and industrials are close to their own record highs now, on pace for some closes at record levels then if you want to look at stocks within the dow, check out these names, ones more tied to trade optimism or pessimism throughout the course of the last year, shares of caterpillar, 3m, up 14 to 24 for cat. Morgan, i point out, record high for apple shares keep an eye on all trade sensitive stocks, driving the action to record highs i will send things back to you dom chu, thank you. Caqualcomm is up today jon sat down with the ceo steven mollenkopf, he has more from that interview and results from the quarter. Good chunk of california i was able to get done there qualcomm up close to 9 , at one point during the morning up above 92 bucks a share, close to 20 year highs there. Given everything that qualcomm had to deal with in the past couple years that do not have to do with the fundamental functioning of the product, having to do with legal challenges, having to do with takeover threats, i asked the ceo Steve Mollenkopf, are we at the point where investors are focused on the product and business and not the other stuff. Heres what he said. It really feels that way, if you look at kind of where the energy is with the company, it is all about how do we take advantage of the ramp for 5g you know, i have been with this company a long time, this is my third big g transition this is the one were doing across tiers, geographically at the same time, tremendous amount of energy at qualcomm. It is great. Were very comfortable doing that, but it feels like we turned a corner. More from the conversation coming later in the hour the question for investors now has to be you have been through three g transitions, not every g for qualcomm translates into gs for investors. So how big a Financial Impact is this transition going to have . We talked a bit about that and the factors behind it. It will be a conversation that continues into the next couple weeks. Qualcomm will be in new york for an analyst day something they havent done a long time, they have the nxp thing hanging over their heads, that acquisition didnt get done, they had the other legal stuff. Now theyre talking about growth and investors. At least today, investors are buying it. The stock up 61 year to date, 45 the past year, despite dramas, legal stuff et cetera that you laid out. Because a number of those things cleared up. I was looking on my flight back at sort of everything that qualcomm has been through, and back at broadcoms bid for qualcomm which was at 70 bucks a share, i dont know if you remember that, two years ago to the day, they were offering 70 a share. Now theyre at 91. Since then broadcom is up about 26ish over that time period qualcomm, more like 45 so there you go. Interesting to see more of the interview as the hour unfolds. Returning to a story broken by cnbc late yesterday, alphabet board investigating executives over inappropriate relationships, the reporter behind the scoop, Jennifer Elias joins us at post nine. Welcome to squawk alley. Thanks for having me. Tell us what exactly is being investigated and why so whats being investigated is handling of Sexual Harassment cases by executives. Now, it could be broader than that, but thats at least part of what we know for now, and why. Thats a great question were trying to figure out i mean, there wasa class actio lawsuit earlier this year that went into shareholders had against the board, now that the board is hiring a subcommittee and law firm to investigate with executives, it is not clear what the motive of that is. Do they have does alphabet have some specific protocol in place in terms of interoffice relationships and what that looks like i know Different Companies have different policies. Their policy has changed now. It is that people cannot date their subordinate. Anyone thats reporting to them. That has changed a couple times. It wasnt always like that but right now, thats the policy, thats what theyll be looking into google is infamous in Silicon Valley in the past for not having that type of policy on this sort of thing one of the cofounders was openly dating a marketing employee as he was breaking up with his wife. Er eric schmidt, larry page, larisa meyer, different sorts of issues what do they really have to investigate . A lot of the stuff is out there. Right, it has been considered an open secret in the company for years and we know this particular investigation will include the companys chief legal officer, david drummond, and this has been an open secret, people have known he has supposedly allegedly dated employees, thats what theyre going to look into, but no doubt the Company Knows this already all right Jennifer Elias, thanks for joining us. All this happening as the journal says google is weighing changes to its stance on political ads. Well turn to far hod man june and bethany mclane good to see you. Cnn has a piece, not looking at changing the overall policy on ads but to targeting how much is this conversation evolving i mean, it is shifting quickly in part because of twitter changing the policy last week, theres been outrage over facebooks policy. Google slipped under the radar here, even though google is the biggest digital ads company, and a lot of political spending and advertising spending happens at google but google hasnt gotten a lot of attention, this is true of all of the tech scandals google has the biggest, slides by they make a lot of utilities people use and we dont really associate them with political ads. They own youtube, theres a lot of advertising there, lot of questions about misinformation there, i think this conversation will really come around to google and youtube specifically, and i think they have run many of the ads that have been people criticized facebook for running. I think that this is going to be a question for them over the next year as we have been to the political season bethany, do you give dorsey credit for setting goalposts in some ways, yes, but his statement which is really beautiful and lovely that political reach should be earned rather than bought is just not the way our system works, so i put that out there as sort of a big picture statement. More narrowly, it is interesting. Washington state, both google and facebook actually did ban political ads because Campaign Laws are so tight, they didnt want to run afoul of them, and it hasnt worked well. Theres a lot of controversy whether it made things better or worse. So this isnt just about banning ads, it is about how you do it, how you implement it, and i think those are questions that have to be asked before we say a ban on advertising solves all of the problems it doesnt necessarily we had Ellen Weintraub on air talking about this earlier this week, what she basically said is what twitter is doing is kind of missing the point, it is not the right prescription for the problem, that really what you need to look at is microtargeting, and maybe the Companies Need to basically put levels in or insist that anybody thats buying political advertising do it on a broader level so more people can see the ads and debate it. Would that actually fix the situation . Is that another alternative, and if so, why hasnt it been potentially implemented . Yeah, i mean, i think thats a good point the real question is not sort of theres the content of the ad and who it is targeted to, how widely people can figure out what it is saying. Facebook has this thing called ads library, it will show you the ads that a politician is running but it is for journalists to access. It is not sort of obvious to users of the system what the ads are. I think the question of whether political ads should be allowed and if theyre allowed, whether they should be targeted, no one sort of has a good answer for it particularly because we dont have a good definition of what a political ad is. If exxon runs a Climate Change ad, is that a political ad or exxon ad those questions, nobody has figured out where the lines are. And that makes it particularly tricky for all of the companies. Very difficult thing to separate into two. Lets get to twitter as well, guys two former employees accused of spying for saudis as doj alleges they used access at twitter to get nonpublic information on dissidents of the saudi regime we talked about whether dorsey did a great thing setting a goalpost, seems in some ways, no one is clean sort of ironic juxtaposition, right . I think the sub text in this conversation is enormous, unprecedented powers the companies wield. A power not even clear the government can control if they want to, and not clear the companies can control the power they wield, even if they want to i think thats frightening add on top of that their interests are not necessarily aligned with the interest of the united states. So we have something really unprecedented playing out right now, and it is frightening to me, one of the more interesting parts of the lawsuit is that one of the people who was targeted has sued previously saying twitter knew long in advance that he had been targeted and didnt do anything about it whether or not thats just an allegation, but if the news didnt come as a surprise to twitter and they knew already there had been a problem, that kind of speaks to my earlier point. What can the companies do to control it, do they even want to, and where do their interests lie. It is one thing if this happens or when this happens at twitter, it is bad enough. Imagine if it is happening at facebook, the level of personal information that some people are posting, if theres spying at that level, is this argument for end to end encryption, perhaps not for nonobvious reasons or maybe the more obvious reasons of facebook wanting to Keep Personal Information out of the hands of our government or other governments, maybe facebook wants to keep data out of its own hands because you cant trust your own employees with users personal data what do you think . Yeah. No, i mean, it definitely is an argument for end to end encryption i was going to say it is a wakeup call but it is actually not. There have been these kinds of instances, Edward Snowden revealed how various Government Entities were tapping into big tech data and ever since then we have had a parade of stories, especially internally. These companies have controls from people on the outside getting to their systems, but on the inside, we dont have a lot of insight how though police the data, what controls about who gets access to it. I think this is a problem that twitter says it is trying to work on, but it is definitely a problem for all of them. We had numerous instances of employees doing this, having access to data they shouldnt have, it is not a surprise that governments would hire them for doing this. Disturbing story. Wish we had more time. Look forward to talking soon thanks thanks. Thanks a lot. After the break, shares of roku heading downstream this morning. Down about 11 now, so off the lows of the trading session. But the roku Ceo Anthony Wood joins us in a cnbc exclusive thats coming up next right afteth bakr isre most people think of verizon as a reliable phone company. woman but to businesses, were a reliable partner. We Keep Companies ready for whats next. man we weave security into their business. Virtualize their operations. woman and build ai customer experiences. We also keep them ready for the next big opportunity. Like 5g. Almost all the fortune 500 partner with us. woman when it comes to digital transformation. Verizon keeps business ready. Woi felt completely helpless. Hed online. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. Travel stocks are getting crushed. Expedia, trip adviser down more than 20 , new year to date lows, after reporting poor results that we talked about with facebook era few moments ago seema mody can explain to put it in perspective, worst day for expedia since 2013, disnmal set of earnings. They compete with airbnb, saw Revenue Growth slow to 14 in third quarter, year over year, from 17 last quarter. On the call, the ceo talked about the competitive nature of the business and need to spend more on advertising and the tern is that could weigh on profitability going forward. The stock down 20 pivot to trip advise or, similar in terms of earnings, missed by a wide margin. Guidance was also not good the big concern there is the growth from hotels if you look at hotel earnings from marriott, hyatt, hilton, not as strong as previous quarters trip adviser plays in that space. If results arent good, that wont be good for trip advise or we have to see if results are similar or buck the downward trend. Back to you. Big impact across that space, seema mody shares of roku being hit hard, despite revenue and earnings beat. The stock now down just about 10 . It was down a lot more than that some buyers coming in. The roku Ceo Anthony Wood joins us now on those results in a cnbc exclusive anthony, good morning. Good morning. So you are investment mode in a sense. Average revenue per user up 30 , at the same time, Gross Margins coming down as you move into some new areas, including video ads. You have pending acquisition of data zoo explain to investors what youre doing here, the impact on margins, where you hope it takes you in the longer term sure. We had a great quarter our results exceeded expectations and outlook we, advertising impressions more than doubled year over year on the platform, a big area of growth for us. You know, theres a lot of new content services launching, things like disney plus, apple tv plus, great accelerators, we are an essential partner for those types of companies we set a goal of running the company this year at roughly ebitda break even, we exceeded that, slight ebitda positive this year because we are putting most of our increasing gross profit back into the business. You can see that because it is such a big opportunity, you know, most of the world still doesnt stream, even though it is getting very popular, the u. S. Is leading screening platforms. It is a big opportunity. You see things like us launching kids and family on roku channel, roku smart sound bars, new way to get active customers. A lot of products were investing in that will pay off in the future. You mention disney and apple, both launching streaming services, used a metaphor on the call, people may not realize, youre like a retailer you have people coming through roku and disney and apple can pay to get in front of those people and say subscribe to our service. You have not only revenue share when people sign up through roku but potential marketing dollars you can make off putting those users in line to get onto those services tell me how do you expect that based on what youve seen previously to trend, so when they launch, of course, expect them to spend to get users after the holiday season, maybe when people bought new devices, do you expect to see another surge in spending on these companies trying to get subscribers . Yeah, i think what were going to see, i mean, whats happening is you have the Technology Companies creating new streaming services and you have the incumbents realizing wow, most of my users are moving to streaming, so i need to follow them, so theres a lot of new streaming services launching. And were an essential partner for those services, great way to launch the service thats our business. Our business is connecting end users that are watching television with streaming services that want to reach those users. Yes, we get paid when we help sign up customers, so when our partners win, we win we help sign up customers and get a percent of revenue on that, also, we built a purpose built platform for streaming telephones and built into that platform a lot of features to merchandise, services, help these companies acquire subscribers. We get paid for that thats part of our Business Model and it is a good business. I want to ask about data zoo. I know that this hasnt closed yet so youve been a little oblique in how you talk about it, but to what degree is this going to be relevant beyond just roku are you going to continue to pursue their strategy of tv buying overall, ott, across all different platforms, even outside of roku . Are you aiming to be the go to spot for video ad program i can . Data zoo is an omni channel, the main reason we are buying data zoo is expanding the platform we have a great world class leading streaming ad platform built into tv first experience, and most tv ads even streaming today are sold direct, meaning direct sales team goes out, talks to agencies and marketers. But the world is shifting to tools automated buying for us, adding to our platform is part of our technology road map, moving that forward, getting ready for the day when all tv eventually will be ads purchas purchased, so for us, the acquisition is about a great team and expanding our ad platform to be more feature ready. Big debate happening now within Digital Advertising around political advertising, whether it is twitter, facebook, whether today, reports about google reviewing some policies as you get more involved with data zoo or otherwise into advertising, how are you thinking about that at roku . So advertising is our biggest growth profit driver you think about all television moving to advertising, there was a report about 29 of viewing is now streaming. But only 3 of tv ads moved to streaming, thats not because theyre not going to, because theres always a lag tv advertising is going to move to streaming in a big way, it is a big driver of business ad impressions more than doubled in the quarter year over year, so were a great platform for advertising. We have a lot of tools for advertisers, we support all ad categories we also sell to politicians buying political ads like tv Companies Generally do i mean, it is actually a small part of our business finally, anthony, we have been asking a lot of companies that are not yet profitable about the changing environment and the markets tolerance for losses, whether or not theyre making changes at the margin to accelerate profitability at the expense of long term growth, even tactically. Have you done anything like that well, you know, we made the decision this year beginning of the year to run roku at ebitda break even roughly, and were slightly positive on ebitda basis. And we think thats the right balance with not having negative cash flow, investing incremental gross profits back into the opportunity. It is a huge opportunity for us at least, we are focused on maintaining our lead and growing our lead as the world transitions to streaming we dont want to lose money, we also think it is wise to keep investing back in the business anthony wood, easy to come on when the stock is up, we appreciate you giving insight even when not everybody is buying anthony wood, great conversation thanks for being with us thank you still to come, the return of trevor kalanick. The new startup, and how uber tsacrsn. Ea fto i man how can i deliver superior longterm results . It begins with a distinctive approach to managing money. That for over 85 years has focused on keeping confidence up when markets are down. An approach where Portfolio Managers work well independently. And even better together. Who dont just invest, but are personally invested. Can i find a proven approach designed to deliver results . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Talk to your advisor or consultant by the way, shes the it wasnext mozart. G day. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. Hi, everyone heres your cnbc news update at this hour. The Atomic Energy organization of iran released footage showing several linesof centrifuges running in the uranium enrichme enrichment facility. A significant violation of the u. N. Deal. They blocked an inspector from a site last week tested positive for explosive nitrates. Alexander vindman is on capitol hill to review transcript of his testimony relating to the trump impeachment inquiry. He testified before the House Intelligence Committee late last month. Ivanka trump visiting morocco a three day visit to promote Economic Empowerment of women in developing countries. Sat with female leaders and entrepreneurs at a round table discussion. And it is that time of year, Rockefeller Center Christmas Tree is on its way to new york it resides in florida, new york and was cut down there morning and lowered on the back of a truck. It stands 77 feet tall and weighs 14 tons cant wait thats the news update this hour back downtown to you guys. Imagine having to pass that tree and truck on the highway, what it must look like people line up the highways to watch it. Theres a tracking app thing, yes. Absolutely go figure it is that time of year. Sue herera, thank you. European markets are closing. Seema mody has the breakdown morgan, this rally has been global here in europe, we should look at the stocks here, fifth straight day of gains. Looking more broadly, the international index, country world index is on the cusp of touching its own record. In terms of specific sectors and stocks, trade sensitive names, autos and Technology Stocks are leading the way. Chip names like dialogue, semiconductor, up 3 to 8 as you can see. Industrials also outperforming following u. S. Peers after see mans has autopsy updated outlook for 2020 many are warning that the eurozone economy is on shaky ground while bank of england kept rates steady, they left the door open for hikes. Saying the risks are skewed to the down side. The stock of the day, love thans a, concerns about flight crew strikes that force them to cancel 1300 flights in the next two days the stock we should point out is still up 7 , pacing for the best day in over a year it is still down nearly 12 since start of 2019. Back to you. Thanks. When we come back, shares of qualcomm continue to surge, this morning up more than 8 . What is the ceo saying about china and 5g more from my sit down with the qualcomm ceo is next stay with us turn on my tv and boom, its got all my favorite shows right there. I wish my Trading Platform worked like that. Well have you tried thinkorswim . This is totally customizable, so you focus only on what you want. Okay, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. Now this is what im talking about. Yeah, itll free up more time for your. Uh, true crime shows . British baking competitions. Hm. Didnt peg you for a crumpet guy. Focus on what matters to you with thinkorswim. Qualcomm, a big mover this morning to the up side still up better than 8 . Continuing that post earnings surge, a beat on top and bottom lines, powering the stock higher also, guide better than the street expected. I had a chance to sit down exclusively with the ceo, Steve Mollenkopf we talked about the quarter, the business with china, and whats coming with 5g take a listen. The quarter we just reported on and the quarter we just gave guidance, the december quarter, Strong Quarter for the licensing business happen to be the seasonal licensing Strong Quarter then youll see it flip to the product business in the march quarter, first calendar quarter of 2020. Thats what we anticipated, talked about last quarter. It is happening. Were excited about it and a lot of it is china theyre moving the price points for 5g aggressively down in the portfolio. Why i think they realize that 5g is such an important technology, they want to get quickly into that market. So for example, theyre putting every device above 3,000 rmb will be a 5g device. Thats a pretty large number then by end of next calendar year, 2,000 rmb. For u. S. People, thats essentially a 300 phone or above will be 5g big portion of volume. Theyre pushing it aggressively. Were seeing that in plans from oems and anticipated that in the product portfolio, and that excitement, that opportunity is what were spending time working on now given from a global perspective by the end of 2020, are you going to have to have a 5g phone in the market if youre selling phones in order to be competitive, period . Yeah, i think so. Thats really what you see from the big hand set oems. We gave some guidance for 200 million units, mid point guidance for 5g in calendar year 2020 thats a pretty significant number it is even higher as a percentage if you look at the tiers. You look at a premium tier device, mid to high tier device by end of next calendar year, i think it will be quite difficult to find a device that isnt 5g enabled because of what the oems are doing. The reason i say that, theres speculation whether apple adds 5g at the high end or throughout the portfolio i know you love talking about oems product plans. Seems more and more apple has to have it. I would direct you obviously to them, but the general trend of people using more 5g than less is there, and certainly at the price points that people tend to talk about in terms of being the market moving price points and theres a lot of reasons thats true, but in the developed world, china all the way through to the united states, the intensity in getting 5g out the door is high. So from the sound of it, he is expecting supply of 5g devices to be strong, especially because of chinas push for 5g well into mid tier of phones, and you know, maybe apple has to have more than just your high end iphone 12 max plus, et cetera, carrying 5g, maybe it has to be throughout the line. Still the question is how are consumers incentivized, low latency in gaming, whats the killer for 5g. Facetime was 4g. Whats it going to be for 5g well see. Heres the headline on cnbc. Com china starts development of 6 g, having just turned on the 5g mobile Network Given comments about china and 5g, is the u. S. Behind the ball on this . As my friend that wrote that piece from out in china acknowledges in the piece, 6g doesnt exist yet. These gs are marketing terms standards bodies agree what it comprises. 5g is just rolling out they usually come out in a ten year cycle nobody defined it. This is chinas way of saying were working on the next thing. Qualcomm, nokia, eric son would say were working on it to this continues to bea Technology Positioning game, hey, were still working are you working . Qualcomm would say yeah, we are working on it too. As for the price action, was it a mystery how the quarter would turn out after apple printed, do you think it was as obvious as that . No, on the licensing side apple helps, and licensing business did do pretty darn well for qualcomm to have a guide as strong as they did, and mention in fiscal q2, youll see some impact on 5g, and by the way, there will be double digit revenue impact to the up side. They gave real specifics that showed confidence, to an Analyst Community used to a lot of uncertainty around the stock, not because of product, because of macro stuff, china, because of legal, somebody trying to take them over, now some of that is still around, huawei, they have things to work out there. But theres enough that is visible into the future. It has been a complex thesis on qualcomm this year. Record highs for stocks. Dow up 227 the curve, not far from the steepest of the year more on the rally straight ahead. The annual Enrollment Period is here. The time to choose your medicare coverage. Begins october 15th and ends december 7th. 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Is energy poised to go from worst to first one well known market watcher suggesting that could be the case does the investment committe agree with that . And our positions on disney prior to earnings. Roku shares being hit today. See you at the half, carl. 15 away. See you then thanks. Meantime, lets get the santelli exchange. Rick is at the cme good morning good morning, carl. Once again, interest rates, theyre acting almost as aggressive as stocks and definitely both are going hand in hand, and i have said this so many times, dont fear higher rates because in the correct pairing, it is like adding fuel to the fire. Cross fertilization of higher rates and higher equity prices spreading. There was a time the u. S. Was the center of the universe with regard to capital in flows we helped the rest of the world and europe and sluggish economies. But things are changing in europe remember, perception can become reality. There are still many question marks. Sometimes the secret sauce makes all the difference eurozone security issuance is ramping up, sovereigns, corporates, along with that, rates are going with it. If you look at some charts, were at 192 in yields havent been there since early august the september 13 high close of 190. But it looks to me like europe may be leading the way lets look at bund charts, shall we look at the inter day chart. It is at minus 24. At the end of august, it was minus 71 thats a lot of movement in a little over two months and it does underscore the dynamic that we used to have in the states many, many years ago, when likes of big blue, ibm, disney would tap the debt markets. It was always a notion they knew something. The lows are in, theyre making hay while the sun shines thats an ever growing feeling coming out of europe, that were seeing many entities plow into the issuance market because things are changing. Have they seen the lows in rates . It is hard to say. There are still lots of blemishes on the landscape, but theres also lots of change, whether it is Christine Lagarde or outrage over ongoing policies, qe or manipulative rates that never seem to promise the epilogue that was once thought they could bring forth finally, just think about this if there are any miscalculations about how the european economy evolves over the next several quarters, boy is that going to make the rope snap tight because considering how things are moving, look at a chart of the dax, if the eurozone continues to see the types of equity in flows because many investors think better multiples is an opportunity, this thing could make the taper tantrum in the u. S. Look like childs play. Back to you. Rick santelli, thank you. Up next. Shares of la bongo up. Is the worst behind the name the executive chairman joins us next ly it was sophies big day. By the way, shes the next mozart. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. Welcome back to squawk alley. Shares of livongo surging this morning, up about 18. 5 . And raising revenue guidance. Company announcing its expanding its partnership with cbs. Joining us now exclusively is the founder and executive chairman. Glen, thanks for being with us today. Its great to see you, morgan. So the stocks up big this morning, but trading below that 28 ipo price. I think livongo, like many other companies that have good publne high growth but not profitable. Take us through that forecast for break even in 2021. What we focus on is how do we continue with relationships like the expansion of cvs, the renewal and expansion, how do we continue to offer services that our members love, that deliver real return on investment . And as long as we do that well continue on that path. Our raise of the numbers, we raised guidance almost 8 million. I think thats an indication of our excitement about the future and of what our members are thinking. 148 Revenue Growth for the quarter. How much of that is new customers versus the ability to offer more services for more disease management above and beyond die beat teaabetes to exg ones i think we saw the business firing on all cylinders. So we had 255 new client signings. That was exciting. But in addition, about 20 of our revenues came from services other than diabetes. So it was exciting because the core business is growing and our member count for livongo for diabetes was up substantially, 118 , and yet at the same time 20 from the newer products as well. A great mix in there that we saw from our existing clients and new clients. So all aspects of the business are firing on all cylinders. Hey, glen, getting to talk to you twice in a week youre going to get sick of me. I want to ask about this never. Est mafted val estimated agreements measure giving us a better view in the revenue thats coming, how its going to convert. Tell me, how confident are you in that metric how did you develop it how should investors watch that, say, first half of the year to second half of the year as they get a sense of hoy your businw s is trending . Remember were a new kind of bids. Were an applied medical business. Were tuck cussfocused on the we person. Think of this as tech and healthcare. We have attributes of both. When you think about a saas business, and we have more signings in the second half and more the implementations in the first half of the year. And thats and thats because of open enrollment no, its just people dont want to start a new program in the Fourth Quarter so a lot of our customers say rather than start something in the Fourth Quarter, lets kick it off. And well do them all year long. But we have a bolus in the first quarter. We already have more than 150 implementations scheduled for january. Thats great news when youre in a recurring revenue business, because you can predict that. What were trying to do with the metric is were trying to say that when we sign a client, its going to take a few months to get them up and launched and then its going to take another six months to nine months to get them to maturity. So were saying we dont want people to overestimate our growth, although its significant, but we want to make sure that they have a good predictability in terms of when those new clients will start generating revenue for us. So weve tried to give this metric and were going to continue to update and give guidance. Also, if you see some of our newer clients, for example, we signed the largest contract in our history with the federal Employee Benefits program, Health Benefits program. And there that Adoption Rate is going to be a little slower than some of our other Adoption Rates. So we want to give very clear guidance, even though its 5. 7 million people, we want to give very clear guidance and not overstate the impact as goods that impact might be. Quickly i want to get your thoughts on these medicare for all proposals weve been getting from president ial candidates like senator warren. What would the elimination of a private market insurance system do to medical care in this country and a company like livongo . The one thing we know whether the administration is staying or going, whats not going away is chronic conditions. And so those one out of every two adult americans has a chronic condition. 157 million people, thats not going anywhere. And whether youre a republican or a democrat, youre equally affected. And weve got to find solutions for that. And livongo is one. So, you know, from our standpoint, you know, its immaterial because youre going to immediate consumer First Digital Health Solutions to address the Health Conditions and Health Crisis that were facing. So, you know, from our standpoint, thats what were looking at. And we see that the same whether its a republican or a democrat administration. Okay. Glen actuaalm glen, thanks for joining us today. Were back three minutes. Inv . Rigorous fundamental research. With Portfolio Managers focused on the long term. Who look beyond the spreadsheets to understand companies, from breakroom to boardroom. Who know the only way to get a 360 view is to go around the world to get it. Can i rely on deep research to help make quality Investment Decisions . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Woi felt completely helpless. Hed advisoronline. Sultant my entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. Tomorrow on squawk box. Well, he is still at it. Uber founder travis has found a new startup, cloud kitchens. We talked about it before. Its helping to fuel the ghost kitchens craze by purchasing lowrent property in densely Populated Areas that are going to make food exclusively for delivery. Saudi arabias foreign wealth fund, a big uber backer, has invested 400 million into the new venture valuing his latest startup at about 5 billion. Get ready for disney tonight. Well learn a lot. Lets get to the judge. Carl, thanks. Im scott walker front and center this hour, the record setting morning. More questions about where your money will go over the last months of the year. Higher highs, but beers about froth. What investors do from here. Disney reports earnings after the bell. The trade ahead of the numbers. Twitter tumbling on a down jagr. Wiping out nearly all its gains for the year. Its our call of the day. Investment committee is ready to go. Halftime report starts right now