Transcripts For CNBC Squawk 20240703

Could even raise rates too thats interesting. Druckenmiller talked me into no guidance. That sounds like what kashkari said yesterday. It could be anything. If youre truly independence, how can you give guidance . Its sort of the transparency. If you really dont know hourks do you give guidance . At least so thats symmetric risk i would like to believe if they needed it, theyll do it i was thinking about the dow managing the close higher, up 32 disney was down 11 what is it 7 or 8 or something . Its a lot. The rest of the components and we have tom rogers coming on to talk about disney. We should you know, he did not give us an indication we talked about the trading down and the experiences and whats going on at the parks. If you look at what really happened in the market, it was on the guidance all around the parks, but there was this sort of i think theres a disappointment in the sub levels. He gets down and looks at what theyre drinking at the parks. I think hes a good man. I think the theme parks are pretty cool. They are. Lets talking about the breaking news. The white house is announcing a 3. 3 billion investment in microsoft for an Artificial Intelligence data center that ice going to be in racine, wisconsin. It will create 2,300 Union Construction jobs and 2,000 permanent positions. It will be on the grounds where it was going to be not that its haunted, but there was going to be a couple of things there in the meantime the Biden Administration has now revoked export licenses that allow them to supply wowway with semiconductors the move affects the supply of chips for huaweis Laptop Computers and phones, meanwhile theyve taken tougher action which natural Security Officials helps them engage in Cyber Espionage around the world huawei has denied those claims how come the white house is announcing the deal . Are they giving them any money for it 3 billion. Im not sure how much of a tax benefit theres going to be. Im sure theres going to be some i dont know the details. This is how things are done its kind of a Partnership Like a chinatype situation. No, no. What did that was a tax deal too, or was that wisconsin too . I think it was a state deal i think it was a state deal because foxcom had done different deals in different places and was not meeting its end of the bargain. I think hugh johnson threw in tow and said we cannot develop a noncarb fact he tried cauliflower, kael, squash he said, im going to go fix disney, which is easier than creatinging a salty snack thats low carb. I think its more challenging. Every time he was on, do you have a noncarb snack are you going to eat pork riepds that if you set them on a napkin, theyre greezing what are okay snacks for you to eat . Yogurt and berries okay. Do the news. Yogurt and berries, im not surprised. Do fritos that tastes like chili. Overnight, chinadaily reporting elon musk testing the proposed selfdriving features by deploying them as taxis the report says officials in beijing may have offered partial support. They immediately approved widespread use of them i saw the other day elon left the parking garage, never touched the vehicle. It is close. It really is close you dont like driving. I prefer not to drive. If youre in a minivan what does this have to do with anything . What do you mean . We were talking selfdriving cars. What do you mean does its have to do with anything anyway, it doesnt matter. Uhoh check your aura ring what happened . Nothing. All right coffee all around. Shares of ab inbev are higher. They rose 2. 6 . That was slightly above analysts estimates. Sales in colombia hit recor recordhighs it grew. Sale of the companys beer brands showed an 11 drop primarily because of bud light that is likely the last quarter to show aep it it started in april 2023 the company got its hardest quarter out of the way roy little to no bruises that stop up by 5 . Shares lifted their highest quarter of 3 increments. Revenue also beat it saw improvement in riders. The number of active riders grew at an active pace. Were going to talk a lot more about the quarter with that companys ceo david risher thats going to happen at slightly higher. I know were going to talk about this company its eats sticking by its plan to build 57,000 vehicles this year as it works to retool its ill plant and were going to hear from ceo rj scaringe in the 8 00 hour in a first on cnbc interview, and phil lebeau is in the house. You gnome what is it . I dont want to drn you can since. They may trial to do something. I have no idea. One of the things. We can search on google or per perplexity. Did you try it . I did. And it pulls a bunch of different crap from all over. I did an interview a. I looked myself up and i was actually kind of proud i didnt realize i had served in the navy in vietnam, which i thought was kind of cool i wish i had. That was interesting. I wish i had. I didnt so they still make mistakes, i guess, right i think all these things make mistakes. It also said other stuff. Is it totally down the mettle. I think they are i searched about biden and trump. There are all kinds of horrible things about the tangerine titan and the other guy. Like your facts, its raining outside. Shares of reddit are sharply higher after its first report as a Public Company they Beat Estimates of 213 million. The company said improvements to its ad platform pushed expectations and daily users Steve Huffman of reddit spoke about the merging results. The bell curve, the average is about 25 years old, but then we keep keep theyre on reddit swl. The Current Quarter guide for the company is making improvements since itself ipo, itselfs up by more than 65 frmg when we come back, tiktok strikes back, suing the u. S. Government over the die vests ter ban bill, setting up what is likely to be a long legal battle we have the details next. And later, facebook parent meta is expanding ai image generation tools for advertisers. Announcer this cnbc program is sponsored by baird. Visit bairdifference. Com wall street forecasts over 100 billion in sales for weight loss drugs known as glp1. Even with unliked and inconvenient injections, dehydratech processing of a glp1 drug demonstrated improved blood sugar reduction and reduced side effects. More human Study Results for lexarias patented oral Delivery Technology are coming soon. Lexaria bioscience, transforming the future of glp1 drug delivery. When it comes to investing, we live in uncertain times. Some assets can evaporate at the click of a button. Others can deflate with a single policy change. Savvy investors know that gold has stood the test of time as a reliable real asset. So how do you invest in gold . Sandstorm gold royalties is a publicly traded Company Offering a diversified portfolio of mining royalties in one simple investment. Learn more about a brighter way to invest in gold at sandstormgold. Com. Tiktok is suing the government for trying to force the owner bytedance or else would face a ban joining us now a New York Times Business Reporter we knew a lawsuit was coming, but now what this is something that ee going to really slow things down youre going to see it probably appeal all the way to the Supreme Court is what some people are saying. What does this do to the time line so right now the time line stands as is i think tiktok said in its lawsuit they believe based on this law if nothing else happens that the tip toc app would potentially go away in the u. S. In japnuary of 2025. But we with expecting tiktok to file this suit this is really the companys last chance to say they shouldnt be banned and its a violation of First Amendment. Its interesting. Is it National Security or right to free speech which one takes precedence is the burden of proof on the government to say this or on tiktok to say its not a threat and First Amendment should be what plays out here . My understanding is the government will have to prove that the First Amendment violation is justified in this case, and, again, for those National Security issues you mentioned. Ive been speaking with folks at the National Security council. They have been working on this bill for months and months, really close to a year, and theyve been anticipating the arguments that tiktok will be making in court. So i know i am extremely eager to see how the government responds here to what tiktok set forth in its filing yesterday. Former treasury secretary Steven Mnuchin who has said that he is interested in purchasing this said yesterday that he thinks he would be able to find developers who can rewrite the algorithm because bytedance has said or tiktok has said it will not bytedance said it will not sell it with the algorithm, so they would have to have a new algorithm in place but while the lawsuit is taking place, i would imagine the company is not going to be looking to or thank youing to any acquisition or buyers. What do you say . What are the odes that theyre not doing anything if they await the core process its really tricky. I think they will be able to ask a judge at some point most likely for an injunction or something that might stop the clock for a period i think that if they do enter negotiations in good faith with a potential buyer, the time line could be extended to up to a year butting you know, really throughout this filing, tiktok is making the case its impossible for it to actually sell the business to a nonchinese owner, and they give lots of Different Reasons for that and so, you know, it remains to be seen if that argument is bought by a judge and if, you know, this is then litigated as an actual ban. If the real reason is and i said this in the past, that the Chinese Government wont allow it, how do you think that plays out in court the u. S. Government says you must do this the Chinese Government says, no, you cant. Its probably not a great situation for tiktok because a lot of what theyve been saying is that they are not subjected to the whims of the Chinese Government, but they didnt mention this in their filing that this is a hurdle the their potential sale they also said selling tiktoks u. S. Operation would hurt the ability of instagram or youtube. They also said it would be hard to pore over the underlying code saying it would take years for engineers to familiarize themselves with it and do the basic maintenance. So,ial, theyve laid out a lot of reasons for whoo this is impossible thank you. Thank you. On the other side of this, with oar going to talk to the cofounders that talk about how you make a bed could improve your sleep. And are you ready for this one . Ftx is set to em prove their interest 118 theyre getting back ves very vary for a bankruptcy, gin the story weve heard. Were going to come back right after this welcome back to squawk box. Eight sleep launches a next generation sleep pod joining us right now are the cofounders of this Company Eight sleep. I should say up front i am an owner. I bought the first of these mattresses by the way, i bought a couple of them it used to be cheaper. I bo it them during the pandemic and it changed my sleep forever. Its called eight sleep because its supposed to help you get eight hours of sleep i unfortunately dont get that many, but im trying to make my sleep better i can do it because i did i use it i sleep on it every night. What is it that youre doing so today were launching pod 4 ultrathe fourth generation of our product, of our bestselling technology its a mattress cover you can install onto any mattress and it will improve your sleep. The way we do it is by wreck lating your body temperature at night and we keep adjusting that based on biometrics, things like your sleep basics, indoor temperature, outdoor temperature. It saved my marriage. I dont get a commission for this, i just want everybody to know. For now. What it does for those who dont understand both sides can be different temperatures so my wife runs hers like a freezer. I mean honestly its so cold if ever were to wake up, tmi, in hot sweats, never again. Never again because its regulating your temperature. And were talking about this yesterday. Its my alarm clock in the morning so i dont have to wake up my wife in this case because you can make your side vibrate or heat up, which actually wakes you up. It can freeze you out. I use it, freezing myself to wake up because it depends on what temperature you had in your bed before the moment of wakeup. Can you explain a piece of it i feel like i know too much about it the idea that you need to change the temperature of your body to get deeper sleep and how its modulating your temperature to capture deeper sleep for longer. And i will also say i use an aura ring and i tested it. I get deeper sleep as a result of this. We all have a biological clock. Its called circadian cycle. Your body temperature changes during the night so when you hear people saying you should sleep at 68 degrees the whole night, that is wrong it could be right for one hour, but not for seven or eight hours in a row because your temperature changes. We keep changing the temperature for you to optimize your sleep performance. Theres plenty of Clinical Evidence that temperature was the biggest factor before eight sleep. We didnt rein vent the wheel. Were helping your body do what its supposed to do. By the way, one thing i never understood are you measuring my temperature as well . We measurering on the bed, but everything is based on your temperature, the outdoor temperature, and the biome ticks. For the audience, its much more expensive whats the price tag for this thing . It starts around 2,500 it depends there are two versions theres the pod 4 ultrathat helps stop senatoring. Can you explain that . We dont have that one, and i do snore, and my wife asked about it how does it stop snoring today were introducing pod 4 ultrathat comes with base that sits between your mattress and your bed frame and it will automatically raise your head while you sleep to stop your snoring . Its not going raise you up nope. While youre asleep it raises your head and goes down when you stop snoring. How does it get the readings for the biometrics we use the sensors in the mattress. In the mattress. The mattress cover. No wonder its so expensive that i would show you the data off the ring i have the same da that that in some cases shows it. It shows my heart rate is lower and stuff like that. Its tracking you while youre sleeping. I thought whether i sweat has to do with my own whatever ive done that day or like honestly like if i had some alcohol and then i go through a couple of shirts, i didnt know that would stop if i was not if drink all you want. Well make more. So it will moderate change the temperature to a cooler setting so i dont sweat yes theres definitely an influence what youre doing. Working out with weights, having dinner close to bedtime, drinking alcohol, each outside of menopause, we have a lot of temperatures thats all of the information were trying to gather were continuing kpanlt. So in real time we can matcnage our sleep. What is the dream sleep . Rem rem . Which do i need . You need both deep is for recovery and rem is for your brain to recover. Like neurotransmitters or something. We dont know what its doing. That is the phase when you dream and the brain is reallocating all the information from the previous day. Zmoo you think that all bed manufacturers one day are going to have cools technology theres cooling technology in bed, but this is a whole other level of it. Its just about the temperature vision we given you today. It knows so much about you. What else can the bed do . The snoring is powered by an algorithm. You dont need to remember to touch anything. I notice that the app is now showing it unfortunately will show whether youre insider lts it could be snoring. What . It could be snoring. It could be sleech apnea. The same data can be seen about sleep apnea. Its so scary you cant ignore it. Thank you for coming in you have changed my life i dont say it lightly its actually kind of true really. Thank you so much for having us appreciate it. He said, it saved my marriage. She would say it saved our marriage. Really . Yes the other thing she got these below zero earbud things because of the snoring on my end. Not having to touch you or hear you has saved your marriage. Were an open book. This is a very intimate topic here. It is, it is, it is. Thank you if youre in the morning tv business, sleep is the whole business. Eight hours. I havent gotten eight hours in you have to its not popular these guys because i see them i follow them online you guys get like nine hours sleep. Eight to nine. Sometimes theyre flexing online and showing their scores. Do you have children . We dont. We do not have children. We are married and we run the company together. By the way, that is an issue. Because of the two different temperatures on both sides, sometimes if you have a kid who likes to sleep in the bid, they like to sleep in the middle, thats something you have to work on. You have a dog. The dog does not sleep with us. Do they cuddle with one or the other . Sometimes they go for the warmer or colder side. You have to get up at 4 00 on the weekends two with two german shepherds. I know. It ruins you. Coming up, ftx creditors thats kind of interesting i dont know 2,500 or 5 grand one. Announcer executive edge is sponsored by at t business, nextlevel moments need the nextlevel network it thats right craig. A team thats highly competent. Im just here for the internets. At t its superfast. Reliable. You locked us out . arrggghh ahhhh solutionoriented. [jenna screams] and most importantly. Is the internet out . Dont worry, we have at t internet backup. The next level network. I sold a pillow ftx has amassed billions of dollars to recover what its lost the company will have as much as 16. 3 billion once it finishes selling all of its assets and it only owes customers about 11 billion. Extra cash will be used to pay interest to more than 2 million customers. The surge in cash is due to a general spike in Services Including Solana Sam Bankman freed was convicted of fraud some creditors could recover as much as 142 of what theyre owed most will get paid 118 of what they had its important to say this the day the company entered bankruptcy, bitcoin was at a lower point. Some people would have sold during that period between now and then, but, you know, its a remarkable shift from where we were a year ago, a year and a half ago when john ray was saying this was one of the greatest frauds of all time and there was no money there. John ray is still saying its a fraud. Shareholders get nothing this is just people who have had money on the platform. So customers are going to be made whole based on where the price was. The whole idea i just we used to debate this all the time. I still think i think the what john ray said if you go back to look at his comments what he said about it would be back then compared to whats happened now is like a night and day situation. Its been a great situation, but the other stuff he said, its a crazy fraud this wasnt like the accounting that they had that took place for this, basically. There was a slush fund that said this is the money were using. It was a crazy spread sheet. And Sam Bankmanfried is in prison for that. Were not going to disagree about that i think he made it he made it out very early and i actually think its going to come up in the appeal for Sam Bankmanfried, one of the things that happened during that trial was that sam the jury was told repeatedly that customers were going to all lose their money. That was what was said over and over and over again. So a jury heard that, and that was in the opening, in the closing, and during all the testimony. To be clear, none of these customers have had access to any money over that time there were harsh letters about people who never had access. Correct the idea that ultimately right now youre going to get 1412 of your money. Celebrity endorsers who got paid in they would not get their money. Theyre not credited . Are you sure . I dont believe they would get all of their money. What we know from epperson tom brady is going to get his money back no, not him somebody else. It was like for five minutes you get 15 million and now youre calling yourself one of the people that lost all their money . Interesting. I think that eventually you know, he still to this day says thats my money just like any other money. I should be compensated. Coming up well talk to the ceo of air cap about the push for deliveries of airbus and boeing planes. Were coming right back. That you and your family need. I promise to put your longterm Financial Wellbeing above any short term transaction. Everyone has a big picture. My job is to help you invest in yours. [announcer] Charles Schwab is proud to support the independent Financial Advisors who are passionately dedicated to helping people achieve their financial goals. Visit findyourindependentadvisor. Com its a beautiful. To helping people achieve their financial goals. Day to fly. Wooooo welcome back to squawk box. On this day, you can have your capital day youre announcing your first dividend and a big order. Thats right, phil. Were very excited three announcements today. Our dividend and a buyback and a 3 billion engine for leap engines which are the most advanced engines were doing that from cfm. Were very excited the engines are not appreciated enough about the impact that its having on the airlines, correct . For sure. Like many people will call an airplane an engine stand, you know without the engine, nothing happens. The engine are the key to the economy of the aircraft in terms p of fuel. Thats all driven by the engines. Unless you get 15 reduction and fuel burn, you cannot build a new airplane the inservice life of the airplane is determined the engine are the crucial piece of technology that power these aircraft lets talk about boeing you have a lot of 737 maxes as well as 787. Do you understand why airlines are fed up and frustrated with this company we do, of course. We have been boeings biggest customer for more than 30 years. We own the most boeings than anyone in the world. We understand the frustration. Customers can deal with bad news if theyre given enough time but when you have a summer schedule, youve sold the tickets, youve got your customers coming youve hired the pilots, paid for all the grand handling staff, and then youre told six weeks before the summer the airplane will come in october or november, thats a disaster. How do you recover from that well, youre paying big penalties for your customers youre paying someone else to fly your customers as i said, the airlines can do a lot better if theyre given the news in advance. I think thats what theyll be crying out over for the next couple of years. Have you thought about cutting maxx orderis and say, yu know what . We cant do this we thought we were going to get exnumber of 737 maxes and youre not going to be able to deliver . No. Were a big believer in the maxx when the maxx is in service, it does a great job, particularly the maxx 8, which is a 180seater aircraft. That aircraft is extremely competitive with its airbus rival, the a320. And every airline we have that has a maxx 8 in service likes that aircraft, and pretty much every one of them wants more. Why is airbus so much more consistent than boeing right now . They have the same suppliers essentially worldwide. There is a lot of commonality. To me i think it goes back to what happened during covid airbus took the decision they were not going to let go significant numbers of their most skilled engineers and mechanics. Kept them coming into the office. They kept them coming into the office as well everyone they could, they brought in everyone they had weve also been airbuss biggest customer for the last 30 years. Guillaume said to me, youre the guy who has the money. I sell to you at the price i sell to because i know come rain, hail, or shine, youre the guy whos going to show. So when the airlines were under great financial pressure, he kept reducing. He kept saying, youre going to by he didnt send home or let go the most experienced. Did they make a mistake if you look at the amount of skilled mechanics and engineers that left boeing, it would be a much higher number than what happened with airbus you cannot take a barista from starbucks and have them drill a hole in a jets engine it tears s takes years and years to learn how to build a jet. It doesnt make me happen the french outmaneuvered us and it paid off. Whos making those decisions at the time is that calhoun at boeing . Joe, thats a decision made by the whole company if you look back at the last four or five years and said which companies came into the office, which guys didnt give up, which guys kept going . Who are the winners . The French Company they were doing it too it doesnt matter where it comes from the fire is in the belly. You would think boeing would be i dont know i would hope, but obviously im wrong. Its been clarified to a degree we havent heard before, that the airbus had the level of staffing and people who were coming in and doing their job. When you think about it, these are sophisticated, huge think about how big they are and what goes into the manufacturing of an airline. Real quick because we have to go, next boeing ceo, when do you think they might finally get a decision this is one that can no but rushed we have to get the right person. That company is so important to the world. I think that the key now is to get someone who is the right person for the job it cannot be rushed. There can be no kneejerk reaction whatever ceo comes in, financial targets are completely irrelevant if theres not a focus on quality and anything were to happen, that could spell the end for a lot of customers and significant issues for boeing. So whoever comes in has to be able to in time, probably slowing down production, i would say, to make sure that everything is done right because the impact of another event would be there is a sobering thought well let you do your thing. Thank you thank you, phil. Thank you, gus when we come back, uber set to report well bring you the numbers and the first on cnbc interview with the ceo, Dara Khosrowshahi squawk box will be right back. Announcer this cnbc program is sponsored by truist wealth, where meaningful relationships matter most. Its all the things that keep this world turning. Its the gotos that keep us going. The places we cheer. Trust. Hang out. And check in. They all choose the advanced Network Solutions and round the clock partnership from comcast business. Powering more businesses than anyone. Powering possibilities. I cant believe you corporate types are still at it. Just stop calling each other rock stars. And using workday to put finance and h. R. On one platform. Tim, you are a rock star. Using responsible ai doesnt make you a rock star. It kinda does. You are not rock stars. clears throat okay. Most of you are not rock stars. Oooh. Data driven insights, and large language models. Oh, thats so rock roll. It is, right. He gets it. Yeah. Coming p, disney shares fell by 9. 5 yesterday were going to talk about the quarter with veteran Media Executive tom rogers Quarterly Results from uber and first on cnbc interview with Dara Khosrowshahi. All that coming up when squawk box returns and if you want a successful business, all it takes is an idea, and now becomes the future. A future where you grew a dream into a reality. Its waiting for you. Mere minutes away. The future is nothing but power and its all yours. The all new godaddy airo. Get your Business Online in minutes with the power of ai. Sure, im a paid actor, and this is not a real company, but there is no way to fake how upwork can help your business. Search talent all over the world with over 10,000 skills you may not have in house. More than 30 of the fortune 500 use upwork because this is how we work now. Welcome back to squawk box. Uber just out with results and the stock already moving on the back of it the company reporting a First Quarter loss, revenue coming in at 10. 13 billion, thats versus 10. 11 billion that had been expected overall bookings just shy of estimates. 37. 65 billion versus 37. 93 billion. Ubers ceo Dara Khosrowshahi is going to join us in a couple of minutes. The stock is off about 7. 7, almost 8 on the back of this news and it has been, you know, consistent with what we keep seeing in a lot of these Earnings Reports where people get a little bit anxious about where they are, especially when it comes to food and other kinds of and High Expectations im thinking of food as part of their business, delivery is part of their business consumerrelated anything. Well talk to tom rogers now and prices have gone up across the board, even at theme parks too. It is part of toms thesis disney shares tumbled yesterday, guidance for the streaming Division Left investors somewhat disappointed joining us now, former nbc cable president tom rogers, executive chairman of orbit gaming and entertainment and cnbc contributor. Tom, thanks, good to see you the linear business, no surprise to anyone, but the numbers are a little shocking, not only revenue down 8 , but operating income from linear, 752 million, down 22 . If entertainment streaming finally turned a profit, you got more going out this side than you got coming in over here. Well, joe, i am usually the disney skeptic as you know and the markets has gotten excited about disney sub numbers. Im usually pointing out that there is another story there that isnt so rosy on this quarter, i think the market is being far too skeptical relative to disney performance. I actually think this was a very good quarter, setting up a good year youre looking at a year that is going to have 25 eps growth, 8 billion or more in Free Cash Flow, and streaming profitability. And i think that sets things up pretty well for them and i think it is meaningful that disney plus and hulu together are profitable when you take espn plus out of the equation contrast that with warner, that in order for streaming to be profitable, it has to put its hbo cable and satellite business into the streaming numbers to claim profitability. I think here to your point, though, about the whole game is can streaming profitability make up for the continued precipitous decline of linear . And the whole question there is can this streaming Business Scale . And i think what analysts have missed here is a major milestone that disney has hit, and that is that the streaming business now, after four years, in terms of revenue, is equal in size to the linear business. Its run rate, 25 billion in revenues, thats about 70 of what netflix revenues are. And thats a real milestone. None of the other Traditional Media Companies can say it is scaled its streaming business now to the size of its linear business now, to your point, the linear decline continues and 22 operating income decline and when you look at the international business, 44 operating income decline on the linear side with on average linear viewing declining 10 a year, they got to continue to grow that thing. And the operating margins are a big question because of the equivalent levels of revenue to netflix, disney is nowhere near netflix operating margins. But they have scaled the business in four years to a 25 billion run rate business. That is real achievement the parks business, i alluded to some of your comments there, some disappointment about a slowing of i dont know a bounceback there, you said prices are higher and it shouldnt be surprising . Yeah, im not surprised that the parks business is flattening they have taken price up like crazy. I think testing the limits of pricing there and at some point that was going to flatten, given how aggressive they have been there. I dont think analysts have adequately pointed to the real issue for parks going forward, which is comcast, cnbcs parent company, soon to open the epic park in orlando, which is surely going to create some meaningful competition there for disney world. It is also going to bring a lot more visitors to orlando but disney dominates the theme park business with the 60 billion infusion of capex that they planned for that. It is going to continue to dominate i think the issue for disney, the problem child that im looking at is hulu it not only has the comcast negotiation on the buyout to deal with, which is probably not going to end up pretty for disney it is sub numbers seem to have stalled. Its daily usage is down more than any other streaming service, and unexplainably, to me, its ad revenue once again declined for the quarter you have disney cfos saying the ad market is strong. And we know that budgets are increasingly being allocated to streaming services and hulu is the granddaddy of advertising streaming service, has much bigger ad subscribers than any other streaming service, because it has been at it much longer in terms of advertise and its advertising is declining. I just dont understand it thats a real Operational Area that theyre going to have to focus on. Wow yeah, not normally as nice about i like it when youre not as nice. But thats okay. You call it like you see it. Tom, thanks. See you again soon newsweek editor at large, that sounds like a big job. Just after 7 00 a. M. On the east coast, youre watching squawk box here on cnbc. Im Andrew Ross Sorkin with joe kernen and becky quick the Biden Administration set to announce a 3. 3 billion investment by microsoft, a facility that will be built on the same land as that failed 10 billion plant once proposed by Taiwans Foxconn meantime, sticking with the chips theme, the white house also now is revoking export licenses this morning that allow intel and cqualcomm to supply huawei and bloomberg reporting that the nfl special committee concerning new rules new ownership rules that could allow groups of private Equity Investors to buy as much as 30 stake in nfl franchises talks are ongoing and the percentage in the proposals could change the owners will present their findings at the threeday meeting in nashville that begins on may 20th, that had been a long expected and debated topic as the prices of nfl teams have soared the truth is theyre running out of wealthy families in america to buy them. So now we might have Pension Funds and sovereign wealth funds and other folks getting involved in financing football. Becky . Well, reddit is out with its First Quarter results. It beat revenue expectations and as a result, the stock was up sharply. You can see right now, up by better than 15 . Last night, the ceo was on mad money and said twhat was becaus of the success of advertisers. Our advertising customers are finding more and more success on reddit really at the end of the day, since reddit represents everybodys interests and passions, that means every companys customers are probably on reddit somewhere. And so simply by making the product easier to use, making our ad tools better and better, were able to kind of realize that connection. That was the ceo Steve Huffman. Joining us now to talk about it is jurorosh beck Raymond James Senior Analyst this was a big beat in terms of expectations, not just for revenue, but smaller than expected loss. Youre talking of a loss of more than 8 a share. When does this start to get to the point of profitability yeah, well, thanks for having me on, becky youre right it was a great quarter they beat revenue by over 10 . Certainly it is a standout within the digital ad space. Theyre growing their business over 30 the market is probably growing maybe 10 . They are gaining share the reason is that as steve mentioned, advertisers like to target interest and they like to target communities and you can do that really well with reddit. On the profitability point, youre right, from a gap point of view, there is a big loss this is going to probably be true for a lot of tech ipos. These options were set with Interest Rates were a lot different. Basically theyre having to reset those options, it looks like a big expense but it is not really anything new. But the ebitda metric, the adjusted profit metric is what people focus on. That was already positive. We didnt expect it to be positive for three quarters. Overall, there was a lot to like in this print. And it is already an 8 billion Market Cap Company i guess i just get back to the point if they beat revenue by 10 , thats great. But youre talking about less than 2. 5 million in terms of that beat because the revenue is still incredibly low, relative to some of the others that you see. May be growing at 30 , versus 10 for others thats because the base is so small. What do you have to see to continue to make you believe that this company is on the right track . Youre right. It is a fair point their revenue base is closer to a billion dollars. Some of the other midcap, a few billion, hundreds of billions as you look at google but i think the tech investor math, for a company like this, is how quickly can it double the revenue base and if youre growing 30 , you can double the revenue base and really just a few years. And so, they can keep this up, they can go from, you know, almost a sub scale ad platform to one of the, you know, more well defined and more well scaled assets in the space alongside that, the amount at which the profitability is starting to flow through is really good. About every for every dollar of revenue, about 75 cents of that through to ebitda on a growth basis if you Start Playing that through, you can see how this can be strong, double digit, 20, 30 ebitda margin type of business, and i think thats unique in addition real quickly, the question on this company, when it was going public, was, look, it is a really rich user base, there is a lot of data there, every company probably has customers that are talking about it with reddit chains. The problem has been trying to figure out how to monetize that while you still have so many of the moderators who are not paid, they dont work for the company. Is that what is the dynamic you get from there is this going smoothly with that group of volunteers . Youre right, so theyre unique, right, in that it is a platform a lot of communities, you have to maintain harmony among the moderators and users, right . Thats a big task. I think they have done it really well they left some of the power users participate in the ipo the same way Institutional Investors would. And it gave them a nice profit and certainly thats higher even today. But, you know, on the data side, thats really one of the most interesting elements of the story, youve written a lot about this a. I. Cost inflation idea pretty much every company is raising capex, why are they doing that theyre trying to trend their models and what you need to train your models, you need data not encyclopedias, but real human conversation and reddit is starting to monetize that data asset. They have this deal with google, and i think there could be others. Josh, thank you josh beck. Coming up next, uber ceo Dara Khosrowshahi will join us that stock falling after the Current Quarter forecasted growth bookings fell short of estimates. Well also talk ride sharing competition and much more. And then later, rimmian st rivian sticking with its forecast well talk with rj scaringe about the guidance in the ev market in general. Squawk box will be right back. You know whats brilliant . Boring. Think about it. Boring is the unsung catalyst for bold. What straps bold to a rocket and hurtles it into space . Boring does. Boring makes vacations happen, early retirements possible, and startups start up. Because its smart, dependable, and steady. All words you want from your bank. For nearly 160 years, pnc bank has been brilliantly boring so you can be happily fulfilled. Which is pretty unboring if you think about it. And theyre all coming . Those who are still with us, yes. Grandpa whats this . Your wings. Light em up gentlemen, its a beautiful. Day to fly. Welcome back to squawk box. Uber out with results this morning, reporting a First Quarter loss, revenue at 10. 13 billion versus 10. 11 billion expected overall bookings shy of estimates, 37. 65 billion versus 37. 93 billion joining us is Dara Khosrowshahi, ubers ceo we appreciate you joining us this morning want to talk about the report, i think it surprised some. You look at the stock down just a bit on the back of the news. I think in large part because you had been hitting, you know, you had become profitable last year and then here we have this loss this year yeah, i think when you look overall at the results, they continue to be consistently strong, right . If you look at our top line growth, incredibly strong, and if you look at our guidance for next quarter, were between 20 and 21 . Ebitda growth up over 80 on a year on year basis and then 1. 4 billion Free Cash Flow during the quarter over 4 billion of Free Cash Flow next quarter. Now, the reason why we moved into a loss, the biggest reason why we moved into a loss was that we got significant equity stakes in Certain Companies like didi and other companies out there. And we had to take a markdown of 700 million for those equity stakes has nothing to do with the operating business, but we did have to mark down those equity stakes that resulted in a loss we dont expect that to keep happening going forward. But you cant, as you know, andrew, predict the markets. So, when you to the extent that investors should look through those equity stake writedowns, if you will, and look at the operations, when you think about the operations over the next 12 months, how is it looking to you we had now a number of ceos come on over the past quarter this whole earnings season, and say, you know what, it feels like things may either are soft now or will get soft in terms of what their expectations look like. We keep looking for signs of softness, just because we read all the news that you read and talk to the folks that you do as well but were not seeing signs of softness, if you look at our guidance, it is between 20 and 21 for next quarter thats super strong. When we look at consumers, are they trading down on uber eats, are they eating at less expensive restaurants, we see no evidence of that frequency is up. Our both retention is up and mobility and delivery as well. So were not seeing the kinds of signs of weakness that other folks are talking about. Hopefully that will continue, you know, one interesting trend were seeing is that people are getting back to work, actually, if you look at workplace and look at commute and office, people are absolutely getting back to work, workplace hours are stronger than lets say leisure hours. And also travel continues to be strong as well travel growth, very significant rates on a year on year basis. Speak to the issue of pricing on the mobility side this is getting picked up in a car, given that in truth it appears that lyft, your biggest competitor, has gotten more competitive or tried to get more competitive on prices that forces you to bring prices down in certain markets. We see pricing in the u. S. As being stable so you saw our mobility business, for example, grow 26 on a year on year basis globally so the growth rates that were seeing are very significant. And overall the majority of our growth is coming from audience growth, for example, audience increased 15 on year on year basis and frequency as well. People coming to uber more, especially as a higher percentage of our consumers become members of uber one program, frequency is up 6 . Gross bookings grew 21 year on year trip growth was 21 . Were not using price to drive growth, which might be different than some of the other companies out there. Speak to the uber eats piece of this, that has been the piece you continue to invest in. And the question is is that how quickly is that part of the business going to be profitable . That part of the business is profitable, happily. Our growth rate was consistent this quarter, 17 year on year basis. Most of the growth is coming from audience and frequency. Retention rates are up as we continue to add selection. We got over a million members now, sorry, a million merchants now on the platform. So were seeing eaters come back to us or frequently more predictably as it becomes a habit, so to speak, and we believe we have gained category position in ten of our ten biggest markets. Uber eats continues to grow and is profitable. So ebitda for uber eats business was at a record margin, 3 of gross bookings, up over 80 on a year on year basis were at a point as a company where we can continue to grow at outsized rates compared to our scale, while continuing to increase profits and increase profit margins. Yesterday you announced a deal with instacart, where folks are using the instacart app, and can use your service how much is that going to be a game changer or not in terms of what it means over the next 12 months of the business were very excited about the instacart partnership. We view it as being highly strategic. When you look at our penetration, especially uber eats penetration, and you look at our category position, we are super strong in the big cities you would expect that, right the uber name is an urban kind of a brand and we believe our most Significant Growth opportunity in the u. S. Is in the suburbs, in the less dense areas. Thats an area of strength for instacart. They wanted our content because they know we got the best selection, the best service, the best pricing out there, and so we now get to put the uber eats brand and service in front of, you know, the over 10 million instacart customers who tend to live in the suburbs, tend to be highly affluent, kind of shop at with big basket sizes so were very, very pleased with the partnership and the potential we see going forward. How much of that was about trying to box out doordash well, we compete with doordash every day so, i wouldnt say necessarily trying to box out doordash, but theyre a strong competitor, we think were a stronger competitor and we think that having access now to the instacart customer, that tends to be there is a lot of overlap between the instacart and doordash customer, we think thats a strong strategic move, the deal is going to be profitable for us, so we kind of have the best of both worlds in terms of topline growth and profitability that is highly strategic. When you think about your competitors today, who are they actually our biggest competitor andrew is the personal car ownership. It is that car in the garage, that second car in the garage, and if you look at everything that were doing, were trying to build out more and more services for you to leave that car alone. Whether thats reserve, so you can get to the airport, or whether thats renting a car on uber, or coming to uber eats for your dinner or your groceries as well the biggest competition is car ownership, it is a tough competitor, but we continue to make progress against personal car ownership. Has there been any shift in your mind about robo taxis there was a period of time we talked about robe yeo taxis, evy quarter, and we effectively stopped, you stopped that investment as well now were starting to hear elon musk has been in the background on this, but now hes very vocal about turning tesla into a robo taxi company were starting to see more technology that seems to actually be working. Do you have a different sort of view about this now . Well, we think that the Autonomous Technology brings incredible promise, incredible promise in terms of improving safety, lowering prices, making mobility available for everybody, which we think can increase the overall market share of our services. And, listen, we would i would never underestimate elon musk and tesla, were big fans of his. Theyre clearly the leaders in evs and we have a lot of teslas in our marketplace at the same time, i wouldnt underestimate what we bring to the table in terms of the uber brand, in terms of matching pricing, routing technology, our payments, fraud, identity, Safety Technologies as well. And so as a result, we think were in a great position to work with any and all ev manufacturers as the technology develops safely, including tesla, by the way, because what were seeing, what we can bring with this network is higher utilization of ev assets and we think do you see the sea change there are people in the tech world whothink that the new tesla fsd, the full selfdriving, which is now running off of a. I. , really the major shift in this, that there was a step change in what it is capable of doing, and that we now might be actually dramatically closer than we were a year or two or three ago i think the early promise that we see with newer a. I. Models and imitation learning, what we call 2. 0 is very exciting now, remember, ev had very strong early promise as well early promise hopefully will result in Faster Development and well see how that develops and, again, because of the demand that we bring, we can drive enormous demand to this Promising Technology if it develops, we think it will be a huge positive. It also allows a lot of smaller players to develop this technology, just like you saw kind of in the early days, loms, a bunch of big players, saw open source smaller mod s les come i, we think the same could be true of the invitation learning models were seeing on the market we think it is promising were going to be a player in the space. Looking at uber without any uber drivers it is just all robo taxis . I dont think it is going to be all robo taxi anytime soon. And we think that if when the Technology Comes in, there will be a transition. And you will have essentially hybrid networks, sometimes robo taxi may be the right answer for you, sometimes a person may be the right answer for you and going through that transition we think were uniquely situated as a marketplace to essentially have any and all safe ev tech along with human drivers on our network. Well be the most dependable network, well be available everywhere, and we think we can kind of steer through this transition and really thrive through this transition. Dara, appreciate you joining us this morning and look forward to seeing you very, very soon. Hopefully well do it in person next time. Thank you. Thank you appreciate it coming up in the next hour, we should mention the lyft ceo david risher will be with us. It is a weird transition, you think about a company that has done so well because it didnt have capex to put into it, but it has the issue of labor and some of the struggles that come with that, for them to do this it would be a cap heavy. They would not do it that way. Just do it around the edges they would be the network and then other people would have the car and put the car into the system i mean, i dont want to speak for them, but thats how its been described in the past. That makes sense. Otherwise it is too heavy of a lift, so to speak. Right lift still to come, one of the one of most powerful women in media and entertainment Bonnie Hammer joins us to discuss her new book, which aims to empower women in the workplace and then in the next hour, rivian founder and ceo rj scaringe and then harvard professor and podcaster Arthur Brooks joins us to talk College Campus unrest, hes all about happiness, he needs to ramp it up a little every time he comes on, things are worse. Squawk box is coming right back. Time for todays aflac trivia question which pc vendor has been the Global Market share leader since 2013 the answer when squawk box returns. Oh, charades okay love it umm. First word. Tonsillitis nostril uhuh. Bill uhhuh. Hiphop limping mmhmm medical bills uhhuh pancakes cash who pays you cash when you have medical bills . Grrr no idea. [tapping] gap the gap left by Health Insurance . Who pays cash to help close that gap . Aflac oh, aflac get help with expenses Health Insurance doesnt cover at aflac. Com pictionary . your shipping manager left to find themself. leaving you lost. You need to hire. I need indeed. Indeed you do. Indeed instant match instantly delivers quality candidates matching your job description. Visit indeed. Com hire announcer now the answer to todays aflac trivia question. Which pc vendor has been the Global Market share leader since 2013 the answer, lenovo as of last yr,ea lenovo held about 25 of market share. Wow. Get it there. And sometimes luck. But what if luck had less to do with it . What if we had the tools to help us practice smarter, the insights to gain an edge, and the data to inform our strategy . Taking our games from that. To this. Yes sir. Kpmg performance insights are transforming the game for the entire lpga tour. The future is not just going to happen. You have to make it. And if you want a successful business, all it takes is an idea, and now becomes the future where you grew a dream into a reality. The all new godaddy airo. Put your Business Online in minutes with the power of ai. Shares of shopify plunging in the premarket the Online Retail platform reporting First Quarter earnings and revenue that Beat Estimates. Shopify said it sees Second Quarter revenue in the high teens compared to the Analyst Consensus of 19. 6 Current Quarter margins are expected to decrease by 50 basis points compared to the First Quarter as the result of the sale of its Logistics Business the stock kind of taking it all in, down by more than 16 this morning. Okay a special committee at trip adviser said it is determined that there is currently no transaction with a third party that is in the best interest of the company. Authorized the committee to engage in discussions about a potential transaction. That happened back in february the Online Travel company also just reported earnings, eps beabeat ing estimates and revenue. The stock down on the back of that at 16 down 16 on the back of that news. Chinese state news outlet china daily says china would welcome teslas robo taxis the idea was floated by elon musk during his visit there in april. Eunice yoon joins us with more reporter the state backed newspaper cited sources as saying that chinese officials told musk on his whirlwind trip that china, quote, welcomes tesla to do some robo taxi tests in the country and hopes that it will set a good example. Now, tesla wouldnt comment on the report, but the move could potentially be very good for tesla because it would be able to experiment with its robo taxi technology in an environment that is a Regulatory Environment that is much more conducive than the u. S. Elon musk said he hopes to unveil the robo taxi on august 8th. For the chinese, they want to be leaders in a. I. , autonomous driving as well as other dv advanced technology. So having tesla here, testing out the robo taxi backs the national agenda. Now, what was also interesting is that the state paper had also flagged that tesla still did not have a full approval for a broader rollout of its fsd or full selfdriving Driver Assistance Technology for its other cars they said that there needed to be approvals for Data Collection and data transfer, paper also played down the announcement of a deal with baidu, saying that it is more for the accuracy of the math than for fsd. Not clear why the chinese wouldnt approve this or discuss it in this way, however, the Chinese Government has approved similar driver assistance technologies for teslas rivals here in china. Live long enough, i guess i heard earlier airbus is much better than boeing because of the capitalists in france and now i hear that china has a much less stringent regulatory structure than we have here. So, what is in it for china, i dont really understand why they would be so well, the chinese, why they would want to do it, the chinese really, really want to be leaders in these technologies. So, in terms of the regulations, the belief is that the government is more willing to maybe turn a blind eye on certain things or allow certain things to happen in order to achieve what they see as a bigger goal, which is becoming the technology leader. The first robo taxi, they start taking it apart, this is how you do this, this is how you do this, is that the idea . Lets hope not. Thank you, eunice see you later. Coming up, Bonnie Hammer, vice chair of Nbc Universal joining us to share her new book 15 lies women are told at work. Dont miss this. Squk xomg ghbaawbo cinrit ck in just a moment you need an idea. Its a pillow with a speaker in it thats right craig. A team thats highly competent. Im just here for the internets. At t its superfast. Reliable. You locked us out . arrggghh ahhhh solutionoriented. [jenna screams] and most importantly. Is the internet out . Dont worry, we have at t internet backup. The next level network. I sold a pillow your record label is taking off. But so is your sound engineer. You need to hire. I need indeed. Indeed you do. Indeed instant match instantly delivers quality candidates matching your job description. Visit indeed. Com hire all right, welcome back, everybody. Our next guest has been hailed as the queen of cable tv she also has some essential career advice for women, particularly those who are just entering the workforce this graduation season. And she turned some conventional workplace advice on its head want to welcome Nbc Universal vice chair Bonnie Hammer shes got a new book out this week, 15 lies women are told at work and the truth we need to succeed. Thank you for being here pleasure. Im delighted to be here. We think this is for men too. We do yes i will say, i dont like advice books i dont like selfhelp books, but this is different. And when i read this book, it is like listening to you talk youre a straight shooter and you cut right to the chase on things and you make fun of some of the silly things that are kind of, you know, these little sayings and platitudes that go out that were supposed to listen to as life rules and thats what i think grabbed me the most, things like lean in, know your worth, fake it until you make it, you turn all those things on their head. Theyre dangerous cliches and they make for a dangerous manual for growing up in our work world. And i think if we believe these sound bites, like a Misinformation Campaign against everyone, in particular women. So, i also agree with too many advice books, but theyre not enough books out there that expose bad advice. Agree thats what im trying to do here. Agree and i think the reason that this really grabbed me is because you speak the truth in a way that most kids are never going to hear these things. And not just kids, people later in their careers too lets talk about some of the great practical advice you give out and because it is graduation season, and because i have two daughters myself who are in college and coming home and who are out there starting to look around in the workforce, some of the things you say is the truth is know your the lie is know your worth, the truth is you have to work on your worth explain what you mean. I think we conflate personal worth and professional worth everybody has, you know, personal worth, youre born with it and you deserve to be treated right, period, end of conversation the only way to prove your worth at work is to work at it everyone there is a belief that personal worth at work is intrinsic. You have to earn it. You know, i think the kids growing up right now kind of grunt at grunt work. When i started out, my first job literally was cleaning dog poop. And was beneath me absolutely i still do that i do it at home. I did it yesterday for two german shepherds and a corgi this is a job im telling you, i feel your i feel you this dog made more than i made, literally and figu figuratively what happened was, you follow the dog around, you pick up the poop, you do it with a smile, people are happy to have you around, because youre optimistic and youre having youre seemingly having a good time and so when the time comes, they want you around. So theyre going to bump you up, i got promoted because i did that stuff with a smile. And by the way, despite all your connections, your son, jesse, went to work in the mail room of one of the big agencies, and he had to do the same thing. And i didnt help him get anywhere and he took a job in the mail room, and he would come back and complain like crazy that, oh, my goodness, theyre not letting me use my brain im smart. Theyre not letting me use my brain. And i would say, jesse, excuse me, you took a job in the mail room what did you think you would be doing as opposed to writing scripts at this point, or doing other stuff in basketball, thats not happening and but he was wise enough when he went around delivered the mail, packages, whatever, he networked. He smiled. He made friends with the agents in this space. And it worked for him. And he looks back with his own smile right now and realizes, okay, i get it, and hes doing great now. But, you have to work at your worth. You have to make people believe youre going to be around doing anything they ask you to do, whether it is running out for coffee, or actually doing some thinking with and for them. Another one of your lessons is just looking for mentors. Not just mentors who are supportive mentors, but also challenging mentors that while they may be the most difficult to work for, while it may be hard to take constructive criticism or just criticism at points, they are the ones who are going to teach you the most. And one of your one of your mentors, who was one of the more challenging ones, a guest of the show, barry diller, someone we see frequently too want to talk about your experience and what got you to that conclusion, that these are good things. I think were brought up to believe that mentorship should be cheerleaders. Just giving you the rara the entire time and being super supportive and being a friend. What i learned particularly because of barry is the best mentors are foils. They are drill sergeants they put the tough in tough love and trust me, barry is and was very, very tough but he taught me how to think. One quick story, we were he was my boss when in the early days of running scifi and were about to launch a show or we were trying to get permission to launch a show with a psychic and barrys question to me was if psychics are real, why are you putting them on a Science Fiction show if psychics are not real, why are you doing business with them in the first place we went back and forth, email, all weekend long and this is way before iphones, were sitting in front of computers, friday, sunday i was about to give up and i came up with, okay, barry, psychics are in the mind of the beholder, to prove that they are real or not real is impossible it is not fact it is not fiction. It is something in between it is friction therefore it is perfect for the Science Fiction channel. And at 11 00 on a sunday night, he writes back, okay, your arguments win, go. He forced me to think, to analyze, to debate with myself, to come up with something that was logical and right so even if it failed, it would be okay, because i thought it through and, by the way, this was someone who until that point you really struggled with trying to work with him and understand him and get what he was doing. You had your kickbox punching bag, you painted his name on it. I was petrified i literally hid under the table for the first probably 18 months of working for him, because i was so afraid he was going to ask me a question and i wasnt going to be able to anser. What was the turning point for you to realize that, though . The value in it. Because i think sometimes people in the moment dont appreciate the value. It was winning. Getting your i think it was mostly in hindsight did i generally appreciate who he was, what challenging mentors are about, what sparring partners were about. But i was fiercely determined to make or want barry to respect me it was something about being able to survive it and get his blessing that made me want to stick it through and i also watched a couple of people, one in particular, steven rosenberg, who used humor to deal with barry and i so admired it that i tried to follow and copy that a little bit. But it is in hindsight that you realize how much you learn from those people in your world as opposed to those who pat you on the back i had some great cheerleaders, supportive mentors too, but in hindsight, the barrys of the world really taught me. You think entry level position and if youre not entitled and willing to do it because of the promise of what can come down the road, do you think with all the talk we have now about living wages and everybody has got to make 25 an hour, is that the way we should do it, should kids expect to walk in and make 25 an hour or because we see what might happen it may be automated. There may be no entry level positions left. Exactly what youre saying. I think it is our generation in some ways, my generation, who set kids up to believe they are entitled the minute they walk through a door to better pay, better jobs, better tasks, and we the book is full of practical pieces of advice useful and helpful that totally resonated with me because ive lived through it in my experience too. Bonnie, thank you for coming in today. Again, the new book out this week calmed 15 lies women are told at work and the truth we need to succeed. I bought two copies already for my daughters and get signatures before you go. Thank you great. Great to see you. Coming up when we return after this, Senate Taking up a bill now to keep our skies and airports safe. Hear from senator jerry moran when it comes to the faa reauthorization bill dont go anywhere. Squawk box coming right back, after this. laughter at 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. Old school grit. New world ideas. Morgan stanley. With only two days until the deadline senate kmert Committee Leadership agreed to a partial faa package with nine, nonaviationrelated issues on the bill hes subcommittee and cospencer of the faa cosponsored act and watching how things are done in washington, it needs to be done. Right . Is that what your message, end of the day need to focus on whatever the distractions are, they need to be done . Absolutely. Joe, this is the Takeaway Congress should have with the concerns that have been ongoing with airline safety. We need to provide certainty, and faa reauthorization helps give the tools to the faa to do its job well and to do it better took us a long time to get an faa administrator confirmed in the United States senate that was a step in the right direction. A significant one. Again, in that certainty, and now to make sure that theres a consistent plan going forward. The last time we went three faa reauthorization there was extension after extension after extension. When i became the ranking republican on the aviation subco subcommittee, one of my goals, modest, just get our work done on time. Weve been working on this 14 months now every member of the committee and most members of the United States senate have had input in this the house has passed a bill, and its time to move forward, as you say, this extension were operating under, the first extension and i hope not a second, concludes on friday. Incidentally, because its a revenue bill thats required, an extension has to originate in the house. That means days, maybe weeks not just a simple so i really think an extension is pretty much out of the question, and tomorrow or friday you and i can have a conversation i could be totally wrong but seems to me were going to move forward, as we need to. Not a done deal, though is it . What do people want . Both sides want some things that its not soup yet. Its not. I mean, and most of the amendments that will cause difficulties have little or nothing to do with aviation. Theyre nongermane. They doan fit in the bill. This is a system of a senate that works pretty slowly and has not had a lot of legislative accomplishments. Its hard to get them around here, and a lot of perception this may be the last major piece of legislation to work its way through the senate certainly before the elections and perhaps before the new year. So everybody, all of us, have things we want to accomplish, and so you look for what we call here in the senate a vehicle to attach this to so that when that vehicle moves our amendment is included thats what we have going on here were determining what amendments are going to be considered, if any, and i would guess that that number is pretty minimal and well just kind of march our way through using cloture and time constraints to get it done. The leverage someone who wants an amendment has is just to slow the process down, causing us to miss that may 10 date. Democrats, they dont like that provision that undercuts the automatic refunds. Hows that is that a dealbreaker are republicans who needs to give on that i mean, i think theres i think that issue, what i would say is that what we have reached a conclusion in the committee is what needs to take place theres bipartisan broad consensus. So i mean, the give has to be with those trying to amend a bill that hawaii a long history in getting accomplished, but has broad support. Id say the amendment that stands out to me is the issue of slots at Ronald Reagan national airport. The bill that, the underlying bill adds four slots, four additional sorry. Five slots five slots going for landings and takeoffs, round trips a day. The virginia senators in particular who have a strong interest in dulles are attempting to take that provision out. That would be the amendment that is germane that has a lot of conversation slots are always important as different communities, cities across the country are affected by flights to reagan national. All right senator, whats today . Wednesday. Well see. Its not its not done until its done, but good to have you on and detail all the nuances for us senator, thanks. Always good to talk to a person who is welltraveled in kansas, joe, thank you you remember that huh . Just thinking about that. I do. I love it hayes and russell and lawrence, i can reel them off. I know kansas well. Youre good get you to wichita, air capital of the world, aviation front and center. One place not been because its not on the way to boulder. Youre watching squawk box on cnbc. Im joe kernen along with becky quick and Andrew Ross Sorkin. An unexpected net loss First Quarter. Revenue up 15 year over year. The white house says President Biden will travel to wisconsin today to announce a plan for microsoft to build a 3. 3 billion hightech facility, or center. That facility built on the same land. Yep. Like the this is where Taiwans Foxconn once planned to build a 10 billion factory. In the criminal racketeering trial bill wang. Set to begin today here in manh manhattan. Jury selection, and prosecution say the implosion caused more than 100 billion in overall lawsuits intel saying the Biden Administration has licences for exports of certain consumerrelated items to a customer in china. The Commerce Department said yesterday it was revoking licences related to huawei intel says it now sees revenue for the Current Quarter below the mid point of the previously forecast range but expects to remain within that range the stock today, though, down by close to 2 . Meantime a quick look at futures ahead of the market open still about an hour and a half to go. Dow opened off now 11 points s s s p 500 off about ten points and 4. 8 two year 4. 841 close. Get to dom looking at the premarket movers, good morning, andrew, becky and joe. Caught up on the latest earnings news and in anticipation of one coming up. Shares of affirm up 4. 5 now premarket around 200,000 shares Trading Volume the Digital Commerce platform maybe best known for namesake buy now pay later installment purchase system. Reporting a smaller per share loss than consensus estimates. Better than expected revenues and a more bullish quarter expected and shares up about 4 as a result now. Shares of trip adviser, tanking. Down by roughly 15. 5 . Around 80,000 shares volume. Generally a good Earnings Report profits came in better than estimates. Revenues in line with expectations, but more than any of that, the company also said that its special committee evaluating potential for trip advisor to be an acquisition target determined that a transaction is not in the best interests of shareholders at this time. That bit of news sending shares lower. Rallied quite a bit. Now sharply lower from those highs. Keep an eye on that and, of course, becky, on the watch whats happening with fox and see those in the next maybe half hour or so sends things back over to you. Thanks, dom see you in a bit. When we come back, professor and podcaster Arthur Brooks joins us to talk autbo the ub unrest on campuses across the nation well be right back. So this is pickleball . Pickle ah, these guys are intense. With e trade from Morgan Stanley, were ready for whatever gets served up. Dude, you gotta work on your trash talk. Id rather work on saving for retirement. Or college, since you like to get schooled. Thats a pretty good burn, right . Lets talk markets right now joining us for that is emily roland cochief investment strategist at john hancock injechlt management emily, you say that the markets right now are kind of like a teenager why do you say that . You want to explain . Sure. Weve been in a period Economic Data for april are actually coming in pretty disappointing last week consumer confidence, twoyear low both ism, manufacturing and services pmi slipping into contraction. Of course, the april jobs report missed expectations by a mile, but risk assets were loving it because were back in this bad news is good news feedback move where youre seeing excitement that maybe expectations that the fed can cut are being revised. So were seeing risk assets take off. Bitcoin surging. Unprofitables, growthtype companies leading. Chinese equities moving in parabolic fashion. Feels like a little bit of a phase. A moody teenager would go through. Kind of erratic, can be unpredictable, can be strange, but you know they end at some point. Were suggesting maybe to ride the phase out and continue to lean into higherquality Companies Trading at reasonable valuations. What happens in that space . I was going to say do you think markets come back on i think theres only so Long Companies can operate at higher rates. Right . Eventually something is likely to crack or likely to see unemployment go up and experience economic contraction. That type of environment we suggest fading riskier assets still owning equities but those higherquality stocks with better ability to navigate that cycle. We still Like Technology stocks. You like quality, great balance sheets, lots of cash, great return mega cap poster child for that of course, a little valuation issue. Those stocks over bought doing bulk of heavy lifting from an earnings standpoint, but look at Something Like the s p 500 growth index its trading at a 45 premium to its 20year average. You want to balance that with stocks actually on sale. Looking at things like midcap stocks particularly industrials that are benefiting from all of the fiscal spending going on stan did a great job talking about this on your show yesterday. Follow where that deficit spending is going. Infrastructure projecting in the United States. Seeing a booming environment in the midwest right now and looking at midcap stocks the best way to play that given their overweight to the industrial sector. Thanks for coming in, emily. Thank you. From tesla shares falling on news of the doj probe. More on that story after the break. Plus hear from the ceo of ev maker rivian, president emeritus Arthur Brooks and lyfts david risher stay tuned youre watching squawk box on cnbc. At pgim, finding opportunity in fixed income today, helps secure tomorrow. Our timetested fixed income suite, backed by over 145 years of risk experience, helps investors meet their goals. Pgim investments. Shaping tomorrow today. Welcome back to squawk box. We have news just crossing the Justice Department investigating whether tesla committed securities or wire fraud by misleading consumers and investors over its driving capabilities according to a new reuters report just out citing three people familiar with the probe testing autopilots and selfdriving assists with things like steering and lane changes, but not fully autonomous watching shares of tesla fall on back of that report. About 3. 5 phil lebeau is onset your thoughts on this report not surprising. I look at this report, and weve known the dodge was looking into autopilot and full selfdriving, and i think it makes all the sense in the world that washington would come back and say, you have made comments, elon musk, or tesla, that essentially give the impression that its 100 handsfree. The fine print, weve said this and everybody has said this. They are nowhere close to 100 Autonomous Vehicle technology, and they will say that in their fine print apparently what the dodj is saying, sure, in the fine print. But did you sell it . Did you tell customers you basically will have autonomous driving . Two questions how much of this is about what the company and musk has told investors about the prospects of selfdriving and the speed with which it may be available . Correct. Versus, what was told to customers. Which is to say theres certain teslas you can buy with the whole selfdriving capabilities and people weretying that and putting up an extra fee in part because of the expectation didnt say have it today if you buy it now you get in and just update the software and youll have it counterargument from tesla is that we have not told people they are buying Autonomous Vehicle. Not told people there is a certain date when it will be autonomous we have told them we believe it will be autonomous at some point in the future. Thats where tesla will come down obviously with the doj. How much engineers saying five years off. Sure. And a comment from musk saying, a year can off sure thats a big part of it. The difference in the debate. The puffery clause. Something basically yew allowed to do some of this if they outlaw puffery i have to quit no one can run for president on either side. I mean, puffery, its kind of a fact of life. Were going to see this over the next 10 to 15 years. Who knows if elon musk and tesla, if hes still running l tesla 10 to 15 years from now. He is pushing selfdriving there has to be a decision about moral choices. Not happening next year, im not saying that. Down the road, at some point, autonomous driving, full selfdriving will lower number of deaths and accidents anywhere there will be some and we have to make a decision, are we okay with a computer that hits somebody in an intersection versus you or i where we sigh thats human error id asked others about this are you of the view the new full selfdriving, they call it, at tesla. Yes. Is, which is now powered by a. I. In a different way than some of the Machine Learning and other programs used in the past, is it major step change in how close we are to actually seeing this work in practice i think it is especially for everybody i talked with, experienced it and a used it on a regular basis having said that, look at adam jonas note. All say the same thing close in, where youre driving in neighborhoods or in the city and so forth, you still need to take control of the car. Thats that final 5 is going to take so long to capture and figure out so when somebody says, well, theres going to be a robotaxi, pick me up at my house take me here, drop me out. Thats not happening soon. We did see with cruze, in san francisco. We did see that in a geo fence theory not widespread at least not soon. What people expect. Phil, dont go anywhere have you back in a little bit. After this break, highlights from a conversation i had yesterday with ceo alex carp and former chairman of the joint chief of staffs general mark milley including whether technology would lower the cost of war in the future. Does it ultimately cost more or less. Cost more on less i actually think it will cost less take the money a lot more of that on the other side of this break it stay tuned youre watching squawk box and this is cnbc. What took you so long . Im sorry, there was a long line at the thai place. You get the sauce i like . Of course youre the man i wish. The future isnt scary. Not investing in it is. Nasdaq100 innovators. One etf. Before investing, carefully read and consider Fund Investment objectives, risks, charges, expenses and more in prospectus at invesco. Com at corient, investment objectives, ris wealth managementses begins and ends with you. We believe the more personal the solution, the more powerful the result. We never lose focus on the life you want to build. Its time for Wealth Solutions as sophisticated as you are. Its time for corient. Welcome back to squawk box. In washington, d. C. Yesterday at the Ash Carter Exchange on interNational Security, i monitored a conference on intelligence in warfare and asked general mark milley about the politics of war and the protests were now seeing across College Campuses. Israel has a right to defend itself they were the one attacked brutally on the 7th of october. 1,200 people were slaughtered. Not just killed in the conduct of war they will slaughtered. Beheaded, butchered. Raped in front of their husbands stuff that was not even a hairs breath removed from what the nazis did. Apply that to the United States, 50,000 to 100,000 people dead in a morning. Can you imagine what we would do i mean, seriously. So israel has every right to defend itself. War is a horrible thing. I had a lot of years in combat, shot at, blown at, whole nine yards. Right . A horrible, brutal vicious thing, and unfortunately because the character of war is going to be in dense, urban areas, that the very conduct of war is going to have very high levels of collateral damage. Theres almost no way around it, but if theres any morality at all you need to get into it, achieve your political objectives, get it done. Get it done fast and get it over with. Just as a side account. The most jarring piece of it talked how lethal war in the future will be with Artificial Intelligence possibly more lethal and given the expectation more combat will happen in cities, in very dense areas. That the kind of war we see in the next 25, 30, 50 years, that the kind of damage and potentially collateral damage. You think technology could prevent that, but the shifts in that. Civilian. Part of what he was talking about, an idea politically you have a very short amount of time if theres attack on one end, to retaliate. Because the moral pressures and political pressures become almost too great to bear. And so from a political standpoint, if youre going to have a political cal ckey y l queue lis, go out and do it quickly. Looked totally indiscriminate the other hand heard every possible thing that can be done, evacuationwise, israels done a great, great, gone to great, Great Lengths to try to minimize civilian casualties. Which is true . Depends what youre reading and watching. Maybe somewhere in the middle show you this, because i think it speaks where we are in society today. Ceo never one to hold back calling out Corporate America for its silence following hamass attack on israel october 7th. What he had to say yesterday in washington about the protests across College Campuses, and potentially hiring from them as well. Of course, ive been calling out the thin, corrosive, cancerous ideology that addresses below judaism, christianity, jewish that is now affecting our universities, because its dangerous to america. It is dangerous to allow discrimination on our klCollege Campuses simply because the people are being desiscriminated against, those ho view themselves progressive need to stand up its divided mostly people in the corporate case people are like, are you sure you should say that and are like, you know, supportive my intellectual circles, yeah a lot of people on the israel issue uncomfortable with my position and i sometimes fight with them. But ill tell you. Its important for building a Software Company that you say in public what you say in private we kind of just think these things that are happening across College Campuses especially are, like, a side show. No they are the show. Because if we lose the intellectual debate you will not be able to deploy any army in the west ever. And that thats, of course, there are adversary es talk about why theres no tech scene in china or russia no tech scene. No software companies. Bring the intellectual battle to them you want a tech seem to support for gdp you need a free, open, democratic curious environment keep the equity that you build like, were just not showing up for that debate, and that is the debate where we win or lose. It is a fascinating conversation eric schmitt part of that panel. And a director part of that panel. Quite something to see them all debate the future of war, and technologys impact on it. Just his take on these things. Oh always makes you think it over. And wrapped in a emphasis on aggressive. Goes on to sound like a a huge but you know where his vote is so you can i dont know what his vote is and dont really care, but what hes a biden guy i dont think hes a trump guy. Anyway well, that can be do one thing or the other right . Phil lebeau is still here with us onset with a special guest joining us at this point, too. Bring in r. J. Of scaringe ceo of rivian. Wider than expected loss stock under pressure today and a lot of people looking for your guidance rest of this year one relief affirms your guidance in terms of production and targets out there. The other hand people are looking at the ev market and not sure to expect what your take yeah. I mean, theres an ongoing discussion just around how rapidly the entirety of the Automobile Industry will electrify. Our view and conviction is very much over time well see the entirety of of, you know, of our vehicle population move to electric propulsion. This is going to take time and key for that is giving customers lots of choices. Speaking of choices, youve got the r2, your next model which is a crossover utility vehicle, or small suv. However you want to phrase that. Youre going to build that in illinois, have lower capex this year in part because youre not gelding in georgia are you confident you can begin production by end of next yearin First Quarter of 26 we couldnt be more excited about it exactly what were talking about in terms of creating Customer Choice our decision to launch the r2 out of our normal illinois facility, as you said, only to drive capital efficiently and more importantly remove risk from the launch and allow us to start deliveries first half of 2026 and incredibly confident in the product and confident in the execution of that launch. R. J. , a lot of people say were entering an ev winter, if you will, and it will be tougher to sell evs to people. Especially here in the United States what do you hear from most of your customers coming out of internal combustion vehicle primarily or coming for evs significant customers have never owned and ev before. First ev experience is through the lens of rivian thats really our goal our goal is to take the more than 90 of customers who been buying electric vehicles today, give them an awesome choice, something thats exciting, desirable and a great buy for the money and pull them out of their internal combustion vehicle to the ev. Done that with the r2. In california, the best selling vehicle over 70,000. Agreed compatible with the charging network and use the Supercharger Network at some point. Are you worried about elon musk basically gutting the supercharger division at tesla you know, were really excited about the way weve approached charging with our partnership with tesla we have a great tactical relationship with the teams at tesla. Those that used it on the tesla notework very easy, plug in the charge, all the payments, back end is our Software Team worked on with teslas Software Team and thats still very robust. In addition to that were also building our own charging network. This summer opening it up to nonrivian customers as well, and the key for charging networks is up time. Few networks have high up time teslas is 99 ish net time. Ours about the time. 98 net time incredibly high performing networks, both of them as we continue to build our network in addition to what you see tuesdesla, important in pulg others into ev vehicles. Seen reports about potential partnership between rivian and apple, of ourse, killed its ow car ambitions but may still have other ambitions, and people speculating maybe a partnership with you could lead to something. Can you speak to whats going on we dont comment on speculation or rumors. On these types of things i would say, as company weve got a history of great partnerships largest, amazon, that partnership, starting to see manifest on roads every day with our delivery vehicles that we build for them. One slightly different way to ask this, then you have been very outspoken about having your own operating system for the rivian. Thats clear spent a lot of money and time building that. Would you ever share any of that space with potential partner, or not . Yeah. It is a great question weve approached the entirety of the electric the architecture andlet network architecture, software that sits on top of them, from the view of building that ourselves its all very integrated, Core Technology the foundation of a lot of what we built as a company. This certainly has value outside of, beyond just our own products, and there are lots of different ways we could leverage that, but we dont have anything to comment on today, but its certainly something we recognize of significant value. All right r. J. Thanks for joining us r. J. Scaringe, ceo of Rivian Company reporting q1 results lots of news. A lot of news this morning. Coming up, aei, Arthur Brooks joins us in this season of unrest. Making an urgent plea to freedom of speech and respect for diversity of thought on u. S. College campuses squawk box will be right back. Our next guest has ideas for calming unrest on College Campuses this graduation season. Bring in Arthur Brooks, president emeritus of the American Enterprise institute. Professor at harvard and columnist for the atlantic. I dont really understand a lot of whats happening. I think theres percentages of why a lot of students are involved some of them arent students, obviously. Youve tried, for happiness i think some people that age are just happy when theyre demonstrating. Maybe that to me looks like theyre very unhappy with living in this country and what we stand for. Yeah. I do a lot of work at harvard with the alumni and the alumni, they love their reunions usually bring me in, the happiness professor. Talk to them what they want to hear about, love and happiness befuddled whats going on at campus my university and every university i was here, we liked each other. Disagreed. Loved our professors challenged to learn new things truth is, the difference between what our alumni experienced and a lot of young people experience today on campus is more ac activism, let intellectual inquiry. Activism is more and more prevalent. Too prevalent. Go to college to learn things and be challenged not to be told one side is right the other evil thats the biggest problem balance is all wrong and led to a lot of the unrest you see today and upheaval. Activism for the sake of activism some of it. Yeah. One week this cause next week at a demonstration for that cause and the past five, six, seven years seen how much wall street. Occupy wall street their fault. Now its israels fault. Activism has a place in American Life today. Im not against activism per se. When it becomes too prominent in American Life, you see look, i talk to ceos all the time and figuring out 3 of professional activists blowing up their slack channels calling them all sorts of name. Also unproductive employees and can do something in the private sector fire them. Thats what theyre starting to figure out Political Parties completely hijacked by 5 activists look, the rest of us are the 90 who dont hate each other. No. Im in the 5 . The 5 exaccent trists werent alolowed to have a conservative come to commencements or speak at colleges demonstrations someone slightest bit right of center. But now, all ideas aired prohamas ideals are fair game figuring out on campuses for whatever reasons that free ideas and free thought, the interchange, the competition of ideas is fundamental to a free society. However it comes about, take it, quite frankly. Im doing commencement exercises at Providence College in a couple of weeks. Lucky there is one. A commencement. Well, also a Catholic School with a lot less of activism going on but you find peemople e a lot more tolerant. Ill take it different views is what college is all about not to be safe intellectually unsafe. The most thrilling of all. And last week, a book out called the age of grievance. The idea that the whole country and maybe world is in a state of grievance. Theres more grievance than ever beforish,e and the grievance feeds upon itself. Which is to say social media and different channels we have people always trying to oneup each other on grievances thinking, how can people get to a place they want to oneup each other on happiness or sanc satisfaction, or is there more to grieve about . Are you kiding me the worlds better than its ever been lots of things to worry about and improve. Truth is our standard of listening is rising. Ow Health Getting better environment at least in the United States getting cleaner. More freedom than weve ever had. Level of grievances happening on campus, happening everywhere. By the way, i think part is media and social media because people see distinctions between where they are and where they, where they want to be. You know, in a way they didnt before. Right. You could argue maybe thats good transparent. See where you can go also reads envy. Envy and the culture today you have people expressing vict. Thats malignant narcissism. Taken over by narcissists and sociopathic leadership that celebrates vick testimonihood as if it was virtuous having people live in grievance. How does it end took a long time for colleges to staff their entire administration with this echo chamber of left and americahating individuals. For sure. The greatest thing about this is that america always wins out, because people get sick of it youre going to see. Things are absolutely going to get better and already are starting to turn, because were having this conversation were not afraid to have this conversation on National Television we would be if this actually were getting stronger and stronger this would be taboo, as a subject. On the contrary were laughing at it at this point. Its going to get better. One of your first books i read talk about actual percentagess probably still there. 60 of people not of this mind. It is of course. You know 1 a page and charged for the index. You read that. Says he did charged me for that, too it was like this is maddening maddening. I didnt get paid for the can you read it again the truth is we dont hate each other in this country i do believe just as was in the 70s, proceeded to the 70s after bitter polarization in the late 60s, early 70s, got through to a better time leaders actually bring us together people get sick of it and they say, new. Ceos need to say enough with activism and the culture stand up for our parties and only way to do that, stand up for our own side, whatever that side is. People elect the members of the where are those communities . What are they thinking . What theyre thinking, are these leaders actually good for doing the things i need in my particular district. Of course, theyre not thinking what is this actually doing to the and give that to you you know youre looking at me. I know youre looking at me. I mean pretty good presence. Numbered on this show. Only so many. Its true look all of us look at the political environment were in today. People on my side. Always a center right guy. Capitalism, three cheers american defense, you know, traditional life absolutely the new i believe in this people trying to radicalize the right are hurting america. We need to talk about that why . People on the left are not my enemies, challenge my point of view but i want to live in a country where theres a Free Exchange of ideas. Means mime grateful for those who disagree with me. I love you. I bring people together. Thanks. Oh, yeah. My favorite show. Its the only place you can really come versus the i love this this is a real discussion every single day ip know whats going on in america. Thank you, arthur. Love that happy event thank you. When we come back, lyft ceo david risher joins us after this join us first after following the Ride Hailing Companies better than expected results. Stay tuned youre watching squawk box and this is cnbc. 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Chair brought a case against elon musk jay, what do you make of this news and what do you think the prospect of charges, either criminally or civilly being brought . Good morning. The news doesnt surprise me, and i think there were rumors about this a little over a year ago. And it doesnt surprise me, because of, you know, the attention that is paid to this company. The change in technology and practical application, that autonomous driving would bring, and, frankly, the fact that many analysts touted this as a comparative advantage for tesla. Sort of two questions that the report raises. One, about comments and that elon musk has made to investors about the timeline with which wed see full selfdriving and the other to consumer es some of whom paid for vehicles that have, quote unquote, full selfdriving capabilities, or at least a system in place so that when its ready they can drive it and use it. Of course, there were expectations that would be available already years ago. So how you think that either criminal prosecutor or the s. E. C. Might think about those two things there are a couple of things here first, im just starting this story. The mail wire fraud statutes cited by the doj, and the securities claims about the s. E. C. They have many of the same elements, andrew and i think the people understand that the wire fraud statute is remarkably broad, and the securities law, i would say, is a subset of that activity, if you want to be, to what i would say is highlevel about this and involves an attempt to fraud intention many fraud of somebody is a decisions that has to be proven what ill note not here is theres a lot of atmospherics around this that we all know call into question when and if selfdriving would actually be realized, including regulation, insurance, all sorts of factors that are beyond the control of a company so, this is not as complicated or not as simple as a simple statement and reliance but intent is very interesting. Having covered elon musk for a very long time, he does have expectations, very High Expectations, and i think genuinely does think that things may come quicker than they sometimes do, on one end, and yet on the other, i imagine, inside of tesla, theres debate happening, email traffic with one engineer saying, you know, its going to take us a decade, were never going to be able to do what were telling folks to do, and others saying that maybe we can, and sort of does that would that create a legal liability . Andrew, youve used the perfect word there expectations expectations can differ, and we have seen through time, particularly in technology, where expectations have been way too rosy, and weve also seen circumstances where expectations have been way too pessimistic. I go back to the deal the days of doing deals in the mobile phone area where the projections about what wed be able to uese our mobile phone fo were grossly understated, and then you have things like, could we ever, and right in the musk area, could we ever do what hes done with spacex could we ever have commercially viable astronaut launches . There was great pessimism that the u. S. Could never do that then there were times when expectations proved to be wrong. Its one of the Amazing Things about tech investing is that reality and expectations are often out of whack jay, we appreciate you coming in and helping us think through some of this im sure well be talking a lot more about it with you very soon thanks. Inuseof ft up, the c oly jos i welcome back to squawk box. Shares of ridehailing platform lyft jumping in the premarket after the Company Guided to higher than expected gross bookings joining us right now is lyfts ceo. We spoke with derek earlier about their earnings clearly, youve beat here, and the stock is up 4 or 5 , and it sounds like your expectations are improving. What are you seeing . Customer obsession drives profitable growth. Thats been our strategy for the last year since i took the job, and i love what im seeing were up 23 in rides, 21 in bookings, and its because it turns out when you do really good work, when you get pricing right, when you get etas, pickup times fast, customers take you more and more, and its wonderful to see riders and drivers on the platform getting out and about, living their best lives. How much, though, is this about pricing . There are clearly markets where i think that you have been become much more competitive on price. You know, about a year ago, when i joined, we really decided to price competitively, and we havent made a real change to that strategy in the last year, so i dont think our incremental growth, lets say, you know, weve gotten more new riders than we have had in six quarters, i dont think thats really about pricing i think its about all of the above. Price right, pay right, pick people up fast, innovate, women plus connect and all sorts of things, im proud of what the team has done. Weve done a lot of things right, and i think people are responding for that reason you said all sorts of other things i want to talk about other sorts of things, because there are a number of partnerships, including ones that you have with chase and jpmorgan and some others that may be leading to some of the increased pickup in terms of folks using the product. How much do you ascribe to thos promotion or promotional partnerships so, its about 20 . 20 of our ride buying comes from partnerships, but i wouldnt just say theyre promotional. Theyre meant to be deep partnerships were one of the very few companies that delta allows to earn sky miles on their, you know, when you take a lyft you mentioned chase. Chase sapphire allows us to accumulate 10x points. I dont want to sound too huckstery, but these are partnerships with really Important Companies that take Customer Obsession really seriously, and by partnering with them, we do great things together do you have any concern about what youre seeing in the marketplace at all about strength of the consumer trading up, trading down around the country . Are there pockets where youre seeing any weakness, and frankly, on the other end, are there pockets where you see strength this is not just lyftspecific, but what youre seeing in terms of Economic Impact this is so interesting. Let me give you a couple of data points we ask our drivers every quarter, how do you see sort of the economy . We dont ask are things Getting Better or worse . We havent seen any change in there, and weve got a million and a half drivers on the platform, 1. 25 million drivers on the platform, so that gives us a sense that they dont see any particular weakness. When we look within our segments, commute is actually up, which sort of makes sense because a lot of people are still going back to work party time is up party time is after 5 00 on friday and saturday nights, up 26 instead of 20 or 22 , our overall growth rate. When we look at modes, wait and save, our economy option, is actually flat, and the premium modes are actually up a little bit. Our premium modes are growing faster than standard so, you know, its so interesting for all of the discussion about, you know, economic concerns, at least in the sort of 20 to 30 kind of average ride, were actually really not seeing that in fact, if anything, were seeing little indications of the opposite, which i know is maybe unusual, not what people expect, but its what we see david, i want to thank you for joining us congratulations on the earnings this morning look forward to seeing you again very soon, hopefully inperson ooid love that. Thank you so much. Its been a lot of news to digest today as the program has rolled on. The dow looks like it would open down about 54 points, the nasdaq off about 98 points, the s p off about 20 points. Right now, the tenyear note at about 4. 494 the twoyear at 4. 843 we had the earnings from lyft on one end, both lyft and uber saying consumers, they think, are in better shape than we expect, but we saw disney. Uber did fall on the fact of those writedowns, some of their business, but now were looking at this big tesla story and what is going to happen legally with that company and one of the richest men in the world we will see. Its wednesday. What . Hump day. Wont be look whats that thursdays the best day thats tomorrow. Thursday is the best day. We are going to pass it off to our good friends on squawk on the street. I think that david faber is still out in l. A. At the milken conference he forgot his ties. Join us tomorrow. Squawk on the street begins right now. Good wea good wednesday morning little equity pressure premarket as some wellknown names guide lower. Shopify, uber, intel, twilio oil, below 77 for a moment. Our road map begins with tesla, though, under the microscope today as federal prosecutors reportedly examining whether the company committed securities or wire fraud also ahead, we got some Growth Stocks that are moving in differ