Transcripts For CNBC Squawk Alley 20240712

Another day of dragged on stimulus talks, john. Intel not a small factor in the trade. When i think of volatile tech stocks, i tend not to think about intel. Look that two year chart ups and downs. Its like an obstacle course, a tough mudder or something. Last quarter, it was about the supply side and intels manufacturing. This quarter the surprise was more around demand and the extent to which enterprise and government just isnt buying in the data center. Cloud picking up the slack that has an impact on margins. Of course, we have the pc stuff going on which is largely a tail wind they havent for a long time but theyre not buying them in the enterprise as we would expect people are not in the workplace. People are adjusting the way they work. That does have an impact on intel. A lot of balls in the air here this volatility predated, bob swan particularly on that manufacturing side but now hes got all of these other things to deal with as well investors looking for clarity around what comes next. Absolutely. Looking forward to hearing from him and props to him coming on rain or shine. We heard from him last quarter which was a tough one as well. Meantime though, we start with the ftc and commissioners there meeting privately to discuss a potential antitrust case against facebook this comes ahead of next weeks hearings on capitol hill theyre expected to face a sympathetic audience they discussed the backlash against big tech these Tech Companies have had this extraordinary immunity from lawsuits since the mid 1990s if it wasnt that big of a deal, they wouldnt have hired the lobbyists begging and pleading not to altersection 230 of act since they have grown to juch gigantic scale and to monopolize markets under section 230, i dont have sympathy for the claims now when therasensoring conservative viewpoints. The former ftc commissioner and former facebook advise jur r joins us now the ftc is focused on facebooks market power and social media. Increasingly, article 230, the socalled legal shield, is getting a lot of attention from lawmakers. How can you, if you k. Reconcile the two or does it risk muddying the issues so that we dont really see any major action from the ftc when it comes to facebooks market power . Its wildly reported that the ftc has been under some pressure from the white house to take some action with regard to censoring conservative viewpoints and they have resisted that way. I think the ftc has been bipartisan and been a pretty fair and even arbitor here the question is, if theyre under pressure now and looking at this time right before the election, and based on peoples concerns about censorship and the on going question about section 230, then it really deals with content regulation. And im not sure how the ftc deals with that on an antitrust basis. How do you define what the market is for content . Is this really about the market for news its hard to make a case that facebook renews. Thats what im getting at. Does it muddy the issues the agencies are supposed to be nonpartisan, we saw partisan cracks when it came to the doj and google what are the implications here do you think this reduces the chances of any action to say undo or split up previous acquisitions that facebook may have done . Well, i think that would be somewhat difficult anyway. Thats a tough case to make. But if they had something, then for them to proceed i would hate for them to proceed on a partisan basis for example, right now the commission has a majority of republicans and if they were able to take a vote based on the majority of republicans and not backed in a bipartisan way that, is unusual and disappointing it is ltough for them to make te case no matter what happens on a market that is broadly defined as news or content its interesting to see if they have an anticompetitive concern what the nature of that concern is from the legal challenges, i mean, you can look up the daily top ten topics that get engagement on facebook at least facebook core. And its routinely the president himself or rightwing commentators or fox news i wonder, is that any kind of installation is that a protective layer against wouldbe antitrust or ftc scrutiny that will be certainly one of the things that the Company Raises you know, the company and together with twitter and others, you look at whats going to be happening next week with the subpoena of ceos and the partisanship, it was done by republicans, you kind of wonder if theyre really trying to find the answer to competitive issues are they really trying to make a political point. And thats something i think we all should be concerned about. Because youre mixing the substance with the fact that somebody may be trying to prolong a political story. I think the ftc is there to really look at what the impact is going to be on consumers. And i think theyre going to have to make that case theyre going to have to figure out even if they decide to move forward what the substantive facts are that goes to show consumer harm. How do you think they might make that case we saw with google very difficult to prove that google harms the actual consumer. Very different than competition. How do you think that the ftc will lay out its case . How might facebook harm the consumer when it is a free product . Thats always going to be a challenge. You know im glad that you raised that point. That is also difficult case in the dojs instance with google the issue is not harm to competition. You have to go further and say that actually harms consumers. Thats a tough case to make. And because thats a tough case to make, if you move forward both this case and what they might do with the ftc would lend itself more to some sort of negotiated settlement rather than a breakup thank you for being with us this morning im sure well talk to you again soon as antitrust scrutiny of the big Tech Companies doesnt seem to go anywhere. Jon . My pleasure intel is down by 11 after earnings is there opportunity here . The ceo bob swan joins us after the break. Squawk alley will be right back welcome back it is the big earnings mover of the day with intel shares dropping 11 after reporting data center results that were mixed and margins that spook the street a bit joining us first on cnbc is intels ceo bob swan good morning good to see you. Good morning, jon how are you . Im doing pretty well i want to get straight to this margin question. Two points off of your expectations a two point miss from your expectations is a lot. Can you explain what surprised you, maybe particularly on enterprise demand and whether you have enough data or better me methods that you wont be surprised again . Well, first, jon, for the quarter, you know, we had a solid quarter. Beating our expectations on both the top and bottom line. And had a modest race to our full year outlook. So in some sense we feel very good about pc demand and incredibly strong cloud remained relatively strong. But the Enterprise Business was pretty soft. So let me put the Data Center Performance into context for the year, the Data Center Group is up 23 year to date and the operating incomes are up 26 . So the Data Center Business itself is having a fantastic year the implications are the first half as we expected was much stronger and we anticipated a softer second half. So for the full year, the Data Center Business is having a fantastic year the second point i would make, jon, is our revenue for the year will be up about a billion eight higher than we anticipated at the beginning of the year. But the nature of that revenue driven by the demand for products is a result of covid19 is different in the p. C. Business, were going have a lot more note books and fewer desk tops. Were going to have more consumer demand and less commercial demand and were going to have more education, more small Core Products for the Education Market but its an incredibly small market for the pc side but the mix of the products, the end demand is a different mix where the asps have a setendency to be lower. That is having an impact on the margin rates but with higher growth that same dynamic is playing out on the server side where you have real strong cloud growth continuing but the enterprise is softer as they bleed off some of the inventory that was built in a very strong first half for the Enterprise Group which is up over 30 first half of the year. Was that it, an inventory build in the first half that then met the covid19 impact on demand and thats where the miscalculation of your expectation was . Yes it was up. It was up 30 in the first half. Got it. Down 47 in the Third Quarter. So theyre bleeding off the inventory that they built earlier in the year. So i want to ask about some of the margin effects when it comes to the 5g base station, for example. You said you have twice the design wins on tiger lake that you forecasted in the first half are those margin hits that were seeing now going to translate into a payoff in coming quarters or are things like apples move away from intel chips going to moderate that margin benefit well, i think first tiger lake production that we launched in the Third Quarter is a fantastic product. As you indicated, our design wins, we expected to be 50 for the year its going to be 100 for this year and 150 designs for that tiger lake product as we go into next year. So its a very powerful product. Very well received by our customers and our customers customers. And its ramping faster than we anticipated. As you know when we ramp on a new Technology Note in, the early stages, it tend to be lower margin and the later stages as we scale are our fabrication infrastructure those margins improve. Our pc business is performing extremely well we have a very exciting product we Just Launched aand well hae a new Product Portfolio that will launch in the early part of next year. All right now lets take a step back i want to ask about strategy most recently the sale of the nan business to xk you had the ipo of mcafee yesterday. You have a stake in. Comes after you sold some 5g assets to apple. Why . If it youre dropping the businesses, it doesnt seem its because youre looking to solely focus on cpus or build more fabs what are you going to invest this capital in . Is this about building up more of an ai arsenal are you doing m a . First, as we talked the last couple years, jon, we see the overall market and the role of semiconductors to be bigger than its ever been we positioned our portfolio to have the largest served market in the companys history weve been making a series of decisions to reposition that portfolio to those areas that we think have higher growth where our differentiated technology can have a bigger and bigger impact thats winning in the core cpu business thats expanding into other architectures like gpu and ai. Thats moving to where compute is going which is increasingly at the network so the decisions weve made to reposition the investments for this company and higher growth where technology is a real differentiator in the largest served market weve had in the history of the company okay. Now let me ask a longer term question about manufacturing you said youre going to make a decision on seven nanometer. How much is in house how much you might outsource how much of an impact on margin should investors expect longer term if you do outsource seven nanometer versus if you dont . First, as we play a larger and larger role in the success of our customers with the investments weve been making, with that comes a responsibility and that responsibility for us is to provide a predictable cadence of leadership products for our customers. For us, we have a wonderful product road map for 202122 when we look into 23, we have a decision to make about whether to build that next generation of product on intels manufacturing footprint, on Third Party Manufacturing footprint or a mix of both. And weve been designing our products to have the inherent flexibility to make those decisions over time. So in the next couple of months, well be looking at what is the right decision for 2023 products and well be evaluating the series of criteria schedule predictability, very important for our customers. Second, product performance. P process matters but so does software and, third, how do we retain some of the essential benefits of designing and making stuff for ourselves in the event we take things outside with the relationship thats we have with our Third Party Foundry partners okay. So were going through that assessment now well make the determination of, you know, what is the best thing to do for our customers, for our employees and for our shareholders i want to sneak one more in here, bob. To try to use a sports metaphor. It seems had a youre in the process of a rebuilding year or two when it comes to manufacturing as you were just talking about, when it comes to the overall portfolio as you divest some things the how many years should investors expect before youre contending for the championship again . First, i would start with our outlook for this year is it will be the fifth best year in the history of the company to win that championship, we repositioned the portfolio we invested in higher growth segments we made the decision to exit some businesses that were not as strategically important. And during that time frame, we added 20 billion to the top line of the company and essentially doubled the companys earnings that being said, we think the future is even brighter. The evolution of compute is moving from the enterprise to the cloud to the network to the edge everything looks like a computer it is generating more and more data and we built the architectures and the competencies and capabilities where we believe were extremely well positioned to take a company who will have its best year in our storied 52year performance this year and were only Getting Started as we think about the opportunities set in front of us all right bob swan, investors taking stock of all the quick changes we appreciate it i appreciate you coming on with us to explain it whether the stock is up or down. Intel ceo bob swan thanks, jon meantime, apples new iphone 12 arriving in stores today. The pandemic makes this years launch a little different. Well explain that after a break. Before we talk about taxsmart investing, whats new . Audreys expecting. Twins wed be closer to the twins. Change in plans. At fidelity, a change in plans is always part of the plan. United states cant easily get to a doctor or afford the treatment they need. Thats why goodrx has built a leading consumerfocused Digital Healthcare platform. We wanted to make shopping for healthcare as easy as it is to shop for travel or electronics. As a public company, we hope to provide even more services that help people get the healthcare they need at a price they can afford. But when i started seeing things, i didnt know what was happening. So i kept it in. He started believing things that werent true. I knew something was wrong. But i didnt say a word. During the course of their disease around 50 of people with parkinsons may experience hallucinations or delusions. But now, doctors are prescribing nuplazid. The only fda approved medicine. Proven to significantly reduce hallucinations and delusions related to parkinsons. Dont take nuplazid if you are allergic to its ingredients. Nuplazid can increase the risk of death in elderly people with dementiarelated psychosis and is not for treating symptoms unrelated to parkinsons disease. Nuplazid can cause changes in heart rhythm and should not be taken if you have certain abnormal heart rhythms or take other drugs that are known to cause changes in heart rhythm. Tell your doctor about any changes in medicines youre taking. The most common side effects are swelling of the arms and legs and confusion. We spoke up and it made all the difference. Ask your parkinsons specialist about nuplazid. As we said before the break, the new iphone 12 hit shelves today. This year a launch is a little different because of the pandemic we have more on that hello hi, carl. Chinese apple fans stood in socially distanced lines from very Early Morning today at the apple stores to get their hands on the new iphone 12 but what wasnt different is that scalp pers were out as they always are selling iphones at a markup, this time of 143. Now most people did preorder online inventory, for example, retailer je. Com sold out in 30 seconds when preorders began a week ago. Alibaba says 30 million users searched for the new iphones over the last 30 days on their marketplace. This is twice as much for the iphone 11. Now platforms like food delivery app also jumped in on the action with sales promotions and then bookings at the retailers not only jd but also a rival are in the millions the average wait time for the iphone 12 series on all the platforms is between seven and 12 days. Tf securities expects sales for the first weekend to hit between 7,000,009 million for the 12 and 12 pro with china accounting for between 35 to 45 of Global Demand apple reseller here in china also had some Interesting Data taking preorders for the iphone 12 mini and iphone 12 pro maxine though the phones are not officially available until november the iphone 12 took up 43 of the preorders. So also the most popular color is blue. Now the iphone 12 comes at a time when huawei is out with a new smart phone. A lot of people are talking about the two because theyre both 5g, comparing them huawei though is seen as hurt because of the u. S. Restrictions theres a big xpikttatiexpectatt its going to be different to get components to keep the smart phones going that led a the lot of people here, smart phone users to get nervous about what that might mean so the iphone 12 is benefitting from that. Then, of course, because people do love 5g since the service is faster weve been talking about that a lot. We always try to gauge chun hin sentiment. Cramers point this morning is he felt apple is insulated from any kind of china backlash does that ring true on the ground i think so. Apple is such a huge employer here and there is a concern that if, say, for example, the Chinese Government decided to go tit for tat against huawei and so it seems to be to reason to have reason that you would see the u. S. Government go against apple. But because does employ so many people and also is a beloved brand here, makes it a lot more difficult for beijing to take such action. Right and for a little bit, there is nervousness that wechat app could be affected. I want to go back to your point on huawei. You dont see many phones here in north america they are hugely popular in the Chinese Market you mentioned the export blacklist. That is giving huawei a difficult time in Getting Android updates and certain google apps. So i just wonder, chinese consumers, if they move away from huawei, which i believe is the number one or number two in terms of market share smashg, ay like to go to an apple and a american smart phone or another chinese manufacturer i think, you know, you know the market really well there are so many local competitors here you mentioned one. Some of the local brands people outside of china have not heard of but those models are quite attractive and theyre a lot cheaper than the iphone so there is definitely exception of the population here that would rather go to some of these local rivals as opposed to the iphone but as were seeing right now, the iphone does have its place there are several online polls comparing the two, the iphone 12 as well as huawei. People are saying well, you know, which one would you buy . People are still talking about how they prefer huawei but in the comments below, it gets interesting some of the comments are like, well, yeah, you know, on the online polls the chinese competitor always wins but when you look at the sales and what people really want, its always the iphone im not sure how long those comments are going to last but they exist right thats not new you always see this patriotism creep in well see how this shakes out. Thanks i thought i saw the apple store there, you know, meantime take a look at shares of apple and uber as a California Appeals Court says the two Companies Must classify the drivers as employees. Well discuss with california ag hatch yar becerra with us next before we talk about taxsmart investing, whats new . Audreys expecting. Twins wed be closer to the twins. Change in plans. At fidelity, a change in plans is always part of the plan. Welcome back, everybody. Im sue herrera. Here is your cnbc update at this hour sudan will be the next arab state to move towards normalization of diplomatic relations with is niz a derael l to be announced to day that is according to reuters president trumps decision this week to take sudan off the u. S. List of state sponsors of terrorism paved the way for that agreement. That country is paying 335 million to a fund for terrorism victims. In milan, restaurants are packing up early as an overnight curfew goes into effect amid the new surge of covid19 case thats is sweeping through europe today italy is reporting a new daily record of more than 19,000 cases. And the pandemic is not stopping the white house annual halloween event on sunday. President trump and first lady milania trump will give candy to young trick or treaters. But unlike last year, everyone over 2 years of age will be required to wear a mask. Youre up to date. Ill send it back out to you sue, thank you very much for. That. Uber and lyft losing their appeal in a court after a driver classification continues this comes less than two weeks before the state talleys the votes on a ballot measure that would exempt at base drivers from californias labor law. Joining us now is attorney general Javier Becerra thank you for being with us this morning. First, can you explain the significance of the Ride Sharing Companies losing this appeal it doesnt chaufrpnge anything next few weeks so prop 22 is becoming very expense theyve uber and lyft are funding, that remains the critical point in this battle, does it not . Is that correct . Well, the lawsuit that we filed against uber and lyft is to get them to follow the law, use the same rules to apply to their workers that other businesses have to so this way you dont short change workers there are protections, benefits, paycheck protections, benefits and at the same time you dont let ub easteer and lyft have an advantage over their competitors because theyre not providing those types of benefits. That court of appeal affirmed what the lower court, trial court had said and so now the timetable starts running again. Uber and lyft have to start treating their workers as employees. Well see what happens with the ballot the we continue the lawsuit to show that they must treat the workers properly and they cant use the muscle and clout to try to change the rules for itself right now ub eastern lyer and lyft poo surveys that show they want to be independent contractors what data are you looking at what evidence do you have that drivers want to be treated as employees . Well, we first look at the facts. We dont take a case to Court Without facts. And the facts are that the Supreme Court gave every business a clear set of rules on how to determine whether you can treat a worker as an employee who is entitled to those worker protections, paycheck froecti s protections or independent contractor that you have a contract with that individual. The facts are that in california, uber and lyft are employeeing these individuals. The theyre not contracting with them and whether or not these workers want a contract relationship or employee relationship is still not clear. A lot of them are saying, yes, we want to be employees so we have the protections others are saying, no, we want to be independent contractors. The argument that the Companies Use is that these workers want flexibility. And, of course, anyone wants flexibility. They can get that flexibility. There is nothing in the law as it exists today, california, that prevents a company in giving its drives, uber or lyft giving drivers flexibility they use that as excuse to tell drivers you really want to be independent contractors because youll lose your flexibility the only reason they might lose flexibility is because uber and lyft dont want to offer it, not because the law prohibits uber and lyft from providing that plechl bui flexibility. Are you saying it doesnt matter what the drivers want if they vote that they want to be in prove 22 that they want to remain independent contractors, what happens to a. B. 5 do you and other lawmakers accept that . So if an if a worker wants to remain an independent contractor, he can she can. There is nothing in the law that prohibits them from having a rebl relationship with a company. Uber and lyft cant use their muscle and clout to try to pressure or intimidate a worker into signing a contract versus getting the benefits theyre entitled to as an employee and so, therefore, if youre truly an independent contractor, youre out there reaching contracts to do work versus being an employee day to day, then the evidence should be out there that youre doing work not just for uber or lyft but for others and you have your own shingle out there providing your services to others versus the case of an employee who essentially works for that particular company or that particular industry most of the time and so theres no difficulty for any worker in being able to have an independent contractor status if he or she wants it. But its up to the worker. It shouldnt be up to uber or lyft to deny workers status as an employee and benefits over time pay, sick leave, unemployment benefits, if those workers are truly employees. And so theres a false premise being bantyed about here in order to try to convince workers and californians that these workers at uber and lyft want to be independent contractors right speaking of californians, you know, were now starting to get mr. Ag some projections on what would happen to ride fares i dont know if you call them projections, maybe threats but certainly i know its not injure mandate to worry about public perception. Arent you bracing for a bit of a backlash from the public if fare tworz double . So california is the countrys economic engine. We create more businesses. We graduate more people from college than any other place in the nation we create more jobs than any other place in the nation. The reason we have become the fifth largest economy in the world is because we have a dynamic vibrant economy. I suspect that what youll find is the competition that will continue to grow will make sure that the prices for people for Services Like ride sharing will continue to be competitive whether or not uber and lyft like that, they would like to be able to dominate the market. I can understand why but my sense is that in california, youre going to see people wanting to be here and starting up their business the way weve always seen that and california will continue to be the engine for the nations economy. Mr. A. G. , when it comes to swayinging public opinion, i wonder if if the Ride Sharing Companies have an advantage here first of all, they set out to spend 90 million on prop 22 they now spent more than 180 million. Also the means of getting the message out, an advantage there. They can push it out through their apps and their users and rider data base. How do you get your sort of concerns heard when theyre just feels like flooding particularly the people in california, i know i get multiple emails and notifications from the companies. Yeah. Our job is to present our case in court im not involved, the department of justice is not involved in the Ballot Initiative that uber and lyft qualify youre right, that initiative, prop 22, will probably end up being the most expensive initiative out in california history by far i suspect the proponents of the initiative, uber and lyft and the business competitors are probably going to spend over 200 million kind of strange because at the same time that theyre spend in 200 million to push through an initiative, theyre unwilling to pay sick workers that have been affected by the covid19. Ive seen many drivers bring up that point. Thats a good one. Attorney general becerra, thank you very much for being with us. The were a few weeks away from that Ballot Initiative carl in the meantime, take a look at the week today laggers on the ndx. Citrix is downgraded, intel, the earnings store yifrment but look at some of the stay at home names, zoom down almost 9 on the week netflix, docusign, tesla is in that mix as well well watch that carefully mequawk alley is back in st ju a ju a mont hi, my name is sam davis and im going to tell you about exciting plans available to anyone with medicare. Many plans provide broad coverage and still may save you money on monthly premiums and Prescription Drugs. With original medicare youre covered for hospital stays and Doctor Office visits, but you have to meet a deductible for each and then, youre still responsible for 20 percent of the cost. Next, lets look at a Medicare Supplement plan. As you can see they cover the same things as original medicare, and they also cover your medicare deductibles and coinsurance, but they often have higher monthly premiums and no Prescription Drug coverage. Now, lets take a look a humanas Medicare Advantage plans. With a humana medicare plan, hospital stays, Doctor Office visits, and medicare deductibles are covered. And, of course, most humana Medicare Advantage plans include Prescription Drug coverage. In fact, in 2019, humana Medicare Advantage Prescription Drug plan members saved and estimated 7,800 dollars on average on their prescription costs. Most humana Medicare Advantage plans include a Silver Sneakers Fitness Program at no extra cost. Dental and vision coverage is now included with most humana Medicare Advantage plans, and you get telehealth coverage with a zero dollar copay. You get all this for as low as a zero dollar monthly plan premium in many areas, and your doctor and hospital may already be a part of humanas large network. If you want the facts, call right now for the free decision guide from humana. There is no obligation, so call the number on your screen right now to see if your doctor is in our network, to find out if you can save on your prescriptions, and to get our free decision guide. Humana a more human way to healthcare. Chinas Group Clearing that final hurdle for that massive ipo which could become one of the biggest if the not biggest in the world we have more on that absolutely. You know, i spoke to source this morning who hold me that bankers are targeting valuation forrant group that could be north of 300 billion last i heard it was north of 250 billion take a look. J. P. Morgan, that market cap is about 313 billion so we could, i know ive been talking about this theant group with a larger market cap that when it debuts in all of the five biggest u. S. Banks. Im also hearing that we should be expecting pricing early next week this works a little differently over in asia it is listing in shanghai and hong kong. Takes a little bit more time we could see that debut just days after the u. S. President ial election on november 5th or 6th the corner stones in the shanghai part of the offering include alibaba and other big institutional holders. Alibaba is likely to buy enough to maintain its current stake. That was through a filing. The hong kong side is likely to have more International Pool of investors. Bloomberg reporting that t. Row and fidelity are looking for a piece of this blockbuster ipo. And, carl, valuation leads to a lot of questions will it be valued like a Financial Services company or a tech company certainly looking more like a tech company and jack ma said, jon this is a tech thin company. Not a Fin Tech Company he wanted emphasis on the technology here. That was clever. And who knows with, he could see it debut north of 300 billion which would be absolutely massive. I miss seeing him november 5th, right around the corner it feels like its a decade away with everything thats got to happen between now and then. Up next, the fight for content in the age of a pandemic were going to discuss that with iheart media ceo bob pittman stay with us every time that i think i the podcast industry seen a 26 increase in consumer consumption during the pandemic as Companies Continue to compete for content in the new media landscape. Joining us this morning, bob pittman, ceo of iheart media which is announces a new acquisition this morning bolstering the podcast operations bob, welcome back. Good to see you. Congratulations. Thank you appreciate i think theyve really been proven wrong theyre number one in podcasts and number one in downloads. We been able to use them and were getting hit after hit after hit. Were number one in audio ad revenue and have the number one audio sales force. You know where some people are still struggling for profitability in podcasting, we have a profit margin better than the Overall Company margin its been a great business for us and shows no signs of evading. In q2 we announced our ad revenue was up 100 year over year huh whats the more powerful driver of listener habits is it the commute to work and home, which we have a lot less of these days, or is it stayathome time spent . If its the latter, do you expect an event return to normalcy its both whats been great for us is all these new Consumer Electronics platforms, smart tvs, smart speakers, et cetera, have really allowed us to increase the usage on the digital platforms, really substantially. If there is any good news about covid, its that people being at home let them discover these new platforms for radio and podcasts and all of our audio products. So, you know, for us we enjoy the balance of it. Podcasti podcasting, what they listen to changes and having a broad array has been very, very helpful to us to adviser demand during a pandemic and over the past few months, the demand for ad inventory, if listening ads are changing, are advertising habits and who is advertising changing as well in. Q2 is not a good quarter for advertising. And for several reasons. One is i think advertisers want to figure out whats the message to say during a time like this and how do they effectively reach the consumer and the great news about radio and our core business is that it is probably one of the most efficient ways to reach consumers and for our company we have a reach larger than any of the tv folks and larger than google and facebook in the u. S so i think theyre looking for reach, theyre looking for efficiency, budgets to dictate, they get more and more efficient and then you add stuff like podcasting on top of it. We have our Digital Products as well and we really begin to talk to advisers less about any silo and about the multiplatforms we have, which i think is the business of the whole business but certainly the future of the audio business having this big lead in audio usage gives us quite an advantage to create content and to monetize that content bob, podcast popularity is surging and it sounds like you believe in your guys story and yet shares of your company are down more than 40 this year what are investors missing, particularly if they think this podcast industry will continue to grow . Look, i cant speak to stock prices that you guys are the expert on that stuff but i can talk about the business and i think, look, i think theres a dip in the business and people say what does that mean we are confident that this business is a core business for advertisers, certainly a core business for consumers who really rely on radio as their companion. Were not doing its not tv without pictures what were really doing and weve always done is we keep People Company were finding podcasting space is the same thing. It very ho its very host driven, just like radio. Whoever the host is has an enormous amount to do with weather the podcast is a success. We have this huge audio footprint that nobody else has two, we have a means to monetize it three, theres a lot of up side. In my experience and most of the Research Shows that radio and tv deliver about the same impact at the same weight level, yet revenue is about a third the price per user, per advertiser theres a lot of head room to expand the monetization. We were probably late to data and and lit ialyticsanalytics, y facebook and google. Weve caught up and were leading in Digital Audio and in the podcasting world and unlike the tv business that missed that adjacent business called netflix, our adjacent business is podcast we didnt miss it, we leading it radio is hard to kill, ill tell you tt,ha bob great, thanks a lot dow is close to session lows. Back in a minute wild thing i. Think i. You know what i think . I think you owe us 48. 50. Wild thing. If you ride, you get it. Geico motorcycle. Fifteen minutes could save you fifteen percent or more. Before we talk about taxsaudreys expecting. New . Twins if you ride, you get it. Geico motorcycle. Wed be closer to the twins. Change in plans. At fidelity, a change in plans is always part of the plan. United states cant easily get to a doctor or afford the treatment they need. Thats why goodrx has built a leading consumerfocused Digital Healthcare platform. We wanted to make shopping for healthcare as easy as it is to shop for travel or electronics. As a public company, we hope to provide even more services that help people get the healthcare they need at a price they can afford. That help people get the healthcare they need keeping your oysters growing while keeping your business growing has you swamped. you need to hire i need indeed indeed you do. The moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base so you can start hiring right away. Claim your seventyfivedollar credit when you post your first job at indeed. Com promo