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Facebook, twitter set to report quarterly results. More importantly get a little bit of a sense for the out look of what is a uncertain future. Well hear from some of the biggest names in american business. So lets get to it. Fox Business Team coverage. Lauren simonetti and susan li are standing by. Edward lawrence on the recordsetting Economic Growth i mentioned. Edward in washington. First we have the panel, lance ulanoff, geir i hry b. Smith gary b. Smith, scott, an erin gibbs joins us from gibbs wealth management. It will be a fun hour to go through all of this. Amazon is the big one. Amazons numbers are just coming out. In the Third Quarter, amazon already reported 96. 1 billion in sales in a quarter. That is comfortably above the analyst estimates. They were supposed to be up 32 1 2 it were around they blew through that, looks like. With a net profit of 6 billion. On the eps side, well get back to it in a moment. Comparable to analyst estimates. Then to lauren, probably, scott martin, on that, 96 billiondollar quarter from a Company Really kind of epitomized how you, for lack after better word thrive or take advantage of the situation weve all been dealing with for the better part of this year. Epitomize how you will survive your life maybe to get through all of this . I love the way you kind of analyzed or i guess commentated on the number as far as top line revenue, connell. Give or take another couple quarters this, company, boys and girls basically making in a year maybe half a trillion with a t dollars when theyre all said and done what theyre doing right now. That really speaks to how great amazon is and heres the crazy thing, with respect to the coronavirus and all the spending at home, all the ordering, delivering what not, the real story for amazon for us Going Forward as we hold amazon here is aws which was talked about last hour on the claman countdown. Yes, theyre a retailer right now, im telling you the future of this company, why this company goes higher and higher in the future because of aws and all the explosive growth that lies there which isnt even in the stock price today. Connell speaking of taking advantage of working from home, a lot of people using aws to do just that. Lauren simonetti, what do we have . Run through figures with amazon as the stock is up 2 afterhours. Lauren its a major beat. This is the july to september quarter. Eps came in at 1. 37 versus the expectation of 7. 41 12. 37. Continue to watch reaction, because in the Second Quarter they beat fivefold. So we have a big, expecting a lot to please wall street these days. One more point to give you, what is unusual, the Fourth Quarter would be the holiday sales period but also the allimportant prime day. The guidance amazon is giving for that quarter, 112 to 121 billion, far exceeding expectations, connell. Connell the estimate was 112. 3 billion for that quarter youre talking about. So even the low end of that forecast is above the estimates. Erin gibbs, want to take a shot here at amazon, then well move on to some of these other companies as they come out. I dont know what we can say about amazon from an execution standpoint. I know. They beat five times last quarter but even with wall street analysts knowing how well they beat last quarter the whisper number was 7. 90 a little higher than consensus. They ballooned through that again. The only thing we look at, what percentage is coming from aws. Typically it is about 2 3 of the actual contribution to profits. Thats really where the growth is coming from. Seeing that continued growth in aws will carry them through in 2021. Absolutely another blowout quarter. Connell im sure lauren is listening. Look if you can, well come back on the aws side. Well keep the ball moving. Google, Alphabet Parent Company is in with Third Quarter results. Susan is following that. Reporter pretty Strong Quarter, connell, coming back from the decline in ad sales the last time. Were looking earnings per share this, is the profit margin and profit number came in stronger than anticipated. 16. 40. Looking for 11. 29. Revenue 47. 6 where market was looking close to 42. 9. I will hop in on the call to listen to ruth porat to bring you comments and quotes later on in the program. Connell good enough. Sounds like a plan. Good to hear from you, susan. Well hear from Apple Earnings out later. It wouldnt shock me, gary b. Smith, if all five of the companies were talking about, twitter not in the same class, not as big as these companies, wouldnt shock me if they beat the analyst estimates in the last quarter. The outlooks will be interesting. To see amazon guiding high on sales was encouraging. Alphabet looks like it is better an mat, can the market side, stock up 10 . What do you think, gary. Alphabet and amazon are in a league of their own and here is why. The way amazon built their business, they built a lot of moats. By that i mean it is tough for competition to penetrate. You pick up the business paper of almost any metropolitan area, you see news item of amazon building a distribution center. The moat that alphabet has is the kind of a moat microsoft used to have, for that matter aol, years ago, everyone, a lot of people myself are so invested in the alphabet or google platform. Gmail, the calendar, the documents, google hangout, the pictures that it would be tough to wean yourself to move to another platform out there. Now i say that, it is a slightly different than amazon, because amazon, where else are you going to go go at this point . Maybe walmart. Just like yahoo , for example, replaced aol and others replaced yahoo , it is not that hard to move from software platform. That said, google is huge. Google does a great job. Confused google with alphabet, im sure everyone else does. They are, yeah, it is tough to move away from them like it is tough to move away. Facebook, twitter, im not so nuts about because i think those are easily replaced. Connell its a good point. We always have the conversation about twitter, whether you can monetize it and facebook which well talk about later in the hour as the Political Risk. They both do obviously we saw on full display before congress yesterday. Lance, youre the tech guy in the group, the tech expert in the group. Gary is hitting on something seems right on, when they get you the Tech Companies they do have you. For example, apple if you have the phone a lot of times youre not leaving the ecosystem. Almost true so many areas we hadnt thought of, even in the cloud with so many people working from home and some businesses relying on the cloud, once you get in with amazon or working with google, like gary said, it is hard to leave. It is hard once youre part of an ecosystem you dont want to leave it because of the costs of doing so i have to say, amazon, google alphabet, one of the reasons they do so well is this working from home revolution, it is being forced really because we have to protect ourselves and it will not change anytime soon. Obviously with amazon it is clear why it is happening, google, working from home means we use more of their cloud tools. We may buy more chrome books. There is a whole shift in the culture that is benefiting certain Tech Companies, actually in general because i think it is our connection to the world t may be benefiting all of them. One thunk i say about google, alphabet. This may be an indication their ad business is coming back or at least started to come back in this last quarter. Connell good point. That is good question mark given where we are in the economy. This stocks looks like it is hovering in the gains and losses in couple minutes since earnings came out. Last quarter it wouldnt shock you if they topped estimates. What do we see in the numbers from facebook . Lauren let me start with the bad news, why the stock is likely down now in afterhours. They say that for the Fourth Quarter both daily and monthly active users wont be as strong as the Third Quarter but since they just reported for the Third Quarter here are those numbers. Both monthly and daily active uses rising 12 . Monthly, 2. 74 billion. Daily 1. 82 billion, both better than expected. Overall numbers in the Third Quarter for facebook eps, stronger than expected, 2. 71 a share. Revenue rise, this is mostly ad revenue, rising 22 to 21. 47 billion. So those numbers all strong. Look at the stock now, down 2 . Here is another negative as to y theyre guiding for the Fourth Quarter, this ad revenue which was stronger in the Third Quarter, it will not be as strong in the fourth as it is in this current third. Connell . Connell so that will be a question, scott, right with a lot of these companies. We said it at the top, not so much what they say about the past but what they say about the future because you know, im not sure how it will impact a company like facebook or even some other Tech Companies on the consumer side i guess, with apple well talk about later but looks like as strong as our economy was in terms of bouncing back last quarter with the Record Numbers we get a sense what were heading into now. The virus spikes, whether the lockdowns are coming and you know, the outlook for the future might not be the same for last quarter. What do you say . Yeah, thats fair. Obviously facebook has a little bit of political issues theyre fighting Going Forward, how they will operate the business which obviously still needs to be i think worked out, maybe worked out of the stock. Now to laurens point, how the stock pulled back. The stock was pretty hot t was up 5 t it was probably priced for perfection. Facebook, we forget, that tiny little Small Company instagram they own absolutely thriving, going bonkers. Im not afraid to admit it is my favorite mace to shop on, that is true on internet because they know exactly what i want. Instagram is another component of facebook, provided it doesnt get broken off, that helps the stock even if it gets pulled back. Connell not the first time you were on the show not afraid to admit. Probably something quite frankly you should have been afraid to admit. So many of those. Connell be that as it may, we love you to death. Instagram is the big driver. Think of where facebook might be if they didnt buy instagram. Twitter is coming out, i will work that erin into the conversation in terms of Political Risk. What did you make of what you saw on capitol hill from the ceos and how big of a deal is this from a operational standpoint from the companies, the pressure they would be under . It would seem, i guess, maybe a lot depends on the Election Results but the pressure they will be under from washington . As long as youre constantly bringing ceos back into congressional hearings, you will have the negative headlines and that negative push on these stocks f they dont deliver blowout numbers, investors will be more hesitant. That speaks to what facebook has done. They have beat it but hasnt blown it out. Maybe were seeing the stock pull back today. Concerns that he will lose the ad revenue, compress their margins if they have to spend money building new algorithms, creating new departments in order to address the concerns were seeing within congress. So i think it is a real concern about, about future margins and weve seen a big shift in advertisers move their dollars from facebook into snapchat and pinterest which had blow away numbers. A lot of advertisers how they were shifting dollars away from facebook and as long as theyre being hauled in front of congress, that trend might continue. Connell i will get, you gary b. , and lance in on this discussion in a moment, lauren i was looking at twitter results flashing while erin was speaking but kind of mixed the stock is getting killed. Lauren wow it really is, down 13 . Here are the numbers. Well start with revenue, 936. 23 million. So that was a big beat. The ad revenue of that is 808 million. So that was strong. So is earnings per share at 19 cents, three times the estimate. The issue is, they missed when it comes to their user growth, really disappointing what the street was expecting. So you got to build your user base and monetize it and it doesnt look like twitter performed on that america sure in the Third Quarter. Connell wow. You want to take that, lance on user numbers for twitter . That stock being hammered. Yeah, they grew yearoveryear they grew well but theyre still, one of the things you said earlier, twitter compared to these other companies were talking about is so much smaller. It has this profile that is outsized for the size of its business but you know, that is the important thing. You have got to monetize the users an in order to do that you have a much bigger and bigger user base and theyre struggling to grow as they would like to. Connell gary, maybe i will go back to the topic that erin was talking about a moment ago with you. As opposed to running through number after number, it is kind of instructive to have a broader conversation about the companies to the best extent that we can. This Political Risk story that is out there, it was jack dorsey of twitter who really took the brunt of it yesterday from republicans in congress. What do you see in twitters future. Yeah, you bring up a good point. I think that gets to the dichotomy of twitter. I personally love twitter, and i hate twitter and i think thats somewhat is the problem with their we brought up the point about being able to monetize for users. They have. The other point keeping growing users. I go back and forth with twitter. Here is the problem with twitter. One, there was no twitter out there i would have access to so little information. You hardly ever, for example, on the covid thing, if you just read the Mainstream Media you would think we have the bubonic playing going on. Twitter, at least experts on twitter that give you the other side, if none other i can read what scott atlas is saying. The positive. The negative about twitter it, becomes so political sometimes, it is like the tower of babble out there. It is so polarizing. Some of these other companies we talked about, you can talk about amazon it is not polarizing. Not google. That is the problem with facebooks of the world, twitters of the world, they are so disgusted, say whatever value i get out of it, i will stop and not use it at all. That is the problem all these political talk venues will have going in the future. Connell yeah. That is a really good point. Connell gary, of the term experts on twitter, scott, you could argue that is a little bit of an oxymoron some days, i get the larger point we get a lot more information there. Your thoughts on twitter. I agree. The funny thing about twitter like gary b. , kind of initiated, twitter as we see with jack dorsey yesterday and himself and beard in that picture, so famously being circulated today, these guys are deciding what youre finding out on twitter. Gary b. , is right, you can find things on there, twitter is deciding what we can even read on twitter these days. He is right, that will alienate a lot of user base. You have stuff like out there, parler, i took french in college, parlay is the verb to talk. There are other competitors will steal some of twitters user base. We own twitter as a stock, connell, but it was priced really well going into the earnings report. Not surprising it is pulling back on disappointing numbers. Connell neil, had the ceo on earlier. The company is parler. Whatever theyre called french is parlay. Look it up at home. Connell those College Grades by the way on your french class. So were a few minutes in. I think the big one still out obviously is apple. So well have apple when it comes out a little bit later but is there anybody, erin, i dont know if you have any big picture thoughts, surprises, the stocks youre set up, right . I saw a stat today, the big four, taking twitter out, apple, amazon, facebook, they account for five, more than five trillion in market cap. Today alone ran up by 200 billion plus in their market cap. To pull back a little is not shocking. Some are taking pretty big hit here, with google the obvious exception to that rule. What stands outer rin, so far after the bell here . I think taking out twitter. Facebook instantly coming across being more vulnerable out of all of these and looking at the strength of amazon and google particularly were talking about Cloud Services. Even though that space of Cloud Services is getting more competitive were actually seeing overall growth and spending across the board. It is not, even if theyre all growing, microsoft, amazon, google, are getting more cloud revenue and Cloud Services that area is just growing. So i think that is the really key takeaway is this where were seeing a real trend and these are probably the more solid players whereas facebook and twitter, theyre really all about advertising and, whether they can control bias, hate speech. Whether they will have more Political Risk. Very different scenario and i think those are really the more risky ones when were talking about today and certainly the runup today has been massive. Twitter was up 8 1 2 . It would have been shock if they kept going up today. It was nice. Connell all that runup came in the regular session, ahead of the Earnings Release after the bell. Looking for as many forward earnings statements as we can find. Facebook says the pandemic contributed acceleration shift from commerce from offline to online. We all had kind of an idea that is the case. Looking ahead to 2021, this is facebook, we continue to face a significant amount of uncertainty. That is forwardlooking comment not exactly reassuring from facebook. Stock down 2 afterhours. Gary b. , want to take big picture here what have you learned so far . Shocking they dont know what the future will hold. That is out of corporate marketing boilerplate, 101. Yes, so captain obvious has reported for duty. But you know you dont know what will happen . Just one comment because weve really not talked about apple and youre talking about bug picture. My concern, i love apple. Probably everyone here does. I have the latest iphone. I have, maybe one generation back on the ipad, you know with the apples of the world im taking par with the services which is a different story. To worry about company like apple because i have an iphone 11 i guess. Im starting to wonder, like, what more do i need after that . It is probably now has more functions on there than i really would ever need. At some point, it has a camera, all this. You want to get the new technology. Im wondering if theyre running up against people saying you know what i have is great and that impacts in the future their hardware sales. Connell it will be interesting when they report. They probably ran into that last quarter with a lot of people, lance, waiting, thinking to themselves, well, as much as maybe people identify what gary is saying a lot of people are thinking i want to upgrade to the new 5g phone. I will wait until it comes out. It is out now. Give me preview of apple with the numbers. What are you looking for . Because of the late release of iphone 12 ive got here. 12 mini, the 12 pro and 12 pro max. They have only put two of those on sale. That will all happen later. I hope apple gives us excitement around the phones. Usually tim, will Say Something tim cook of apple, this is fastest selling phone ever, talk about one particular model without giving any actual information. The big story for apple again will be services which continue to grow really fast. Theyre about to launch apple one which is their First Services bundle. I think that will help accelerate it even more. None of these things have happened. Were in a pregnant pause for apple a lot of stuff that didnt happen this quarter, will impact the next quarter a very big way. It will be about, reading tea leaves of what is to come for their sales, their holiday sales and Services Business but i hope they tell us a little bit something how is apple tv plus doing . Connell that is part of services. Revenue supposed to be there at 13. 7 billion in that unit of Services Compared to 63. 7 for the company overall. Well find out shortly we think from apple. Panel stays with us. We continue on the breaking earnings day. Like tech earnings bonanza here after the bell. Well be back with the apple figures. Stock up ahead of numbers. Dont go away. Ive been involved in. Communications in the media for 45 years. Ive been taking prevagen on a regular basis for at least eight years. For me, the greatest benefit over the years has been that prevagen seems to help me recall things and also think more clearly. And i enthusiastically recommend prevagen. It has helped me an awful lot. Prevagen. Healthier brain. Better life. Connell moments the away from the last of five big earnings reports out of the world of technology were covering this hour. Were waiting for apple to report figures. Alphabet googles Parent Company had big numbers. Apple in the afterhours trading is just about flat, like running up like the rest of the tech stocks during the session. Our panel with, erin, gary b. , scott, are with us. Well get to susan li as soon as the figures cross. Lance was talking about a little bit, or was talking a little bit before the break, guys, what he was looking for services. Obviously the iphone, maybe we look next quarter rather than this quarter because the 12 is just out. Scott, what in terms of that you would look for with apple here . Something we may not get but something i think it is important to think about buying apples stock as we have been, something speaks to what gary b. And lance talked about at the show. Apple search is basically on the forefront of what were going to see with apple Going Forward in 2021. They will take, took a guy from google three years ago, developing what they thought would be a. I. And siri stuff. But in reality they built out apple search. They didnt update the latest ios that changed some of the search features. If anybody noticed that, that is little secretive thing they did on the latest ios update. To me it is the 5g super cycle, connell. Apple search is key Going Forward. That is gary b. , lance, that is the kind of thing that can take over some things gary b. Is so hooked into google about. Suddenly apple will be in player with hangouts, pictures, all stuff they need to do when they look at similar things google is doing today so well. Connell erin, first to you after the numbers are released if history is any guide lance. 70 cents a share on revenue of 63. 7 billion. Here they come as they cross the wires. Susan, what do we see . Susan all in all Strong Quarter. Lets get to it. Profit beat 73 cents for the quarter. Analysts called 70 cents. Beat when it comes to sales 63. 7 billion what they made in three months. Analysts something closer to 63. 7. They saw alltime record in Second Quarter for mac sales and services. Iphones came in at 26. 44 billion, slightly less than anticipated for the quarter. Analysts were calling for 27. 93 billion when it comes to iphone revenue. Ipad a beat, 6. 79 billion, higher than analysts forecast, something a little bit over six billion. Mac, here you go, Record Number for mac sales, nine billion. That is work from home, educate from home trend helping mac sales. Record quarter for mac sales. Analysts were calling for something under eight billion. Wearables a fast growing division, a beat here, 8. 76 billion for the quarter. Wearables, analysts closer to something 7 1 2. Another Strong Quarter for apple watch and the other wearables in that division and also for the Services Division which includes apple tv and music. Lets get you there the tim cook comments. I just got off the phone with ceo of apple, the Largest Company in the world. When it comes to the iphone revenue miss in september, if you take out the quarter, split it up between midseptember and after, customer demand was growing double digits. That is enormous momentum far beyond what we guessed or estimated. What the about 5g super cycle on iphone 12 . This is big one for apple. Probably the most important iphone launch in years. I can tell you were off to a great start. I couldnt be happier how theyre going. I have only five days of data. For the apple quarter, set alltime record for the mac, alltime record for the services. September quarter record for wearables. We set quarter records in americas, europe, asiapacific, india. Great strong Second Quarter in part to the online store response there. Greater china, china represents 20 of their sales, beat internal expectations. What about the wearables, the ipad . He says were also very positive and very positive response to that september announcement of the apple watch series 6. I see the ipad 8th generation, ipad air, we do tomorrow well ship apple one, which is the Services Bundle you buy one get all of the services. Were on target to ship Apple Fitness plus before the end of the year. What about the u. S. Economy broadly and stimulus . Tim cook says i continue to be optimistic here. I do think that a sim plus package is needed. I would encourage to work with everyone together. Im fairly confident if that can occur we can continue the bounceback we saw last quarter with the gdp number we saw today was quite good. Finally what about the work from home trend . He says i think it will be a little while, balance across the winter with people being assigned more. See that in the cases now so i would encourage everybody to follow the Health Professionals advice so we all Work Together to get rid of ourselves of this thing. Cash equivalents, guys, 192 billion in gross cash. I would say all in all pretty Strong Quarter. Connell interesting as always to get the insight there in the phone conversation you had, susan with tim cook. What would you say about his tone, especially state of the world . How does tim cook see things now . Susan sounded very optimistic. He encourages people to go out to vote to make your voice heard. As i mentioned to you, you saw a slight miss with iphone. But you had tough comparables from last year when the iphone 11 was launched on september 20th. Comparables are tough so it become a miss with respect the iphone sales. You saw work at home trend. Theyre buying marcs. Theyre listening to apple music, watching apple tv. Theyre educating from home, other Hardware Devices picking up slack from the iphone. Connell interesting. Good reporting, susan as always on apple. Better than expected but the stock is down. Erin gibbs, by 4 to repeat what susan said at beginning, expected 26. 4 billion with revenue. Iphone on delivered. Five Business Segments make up apple. The iphone miss. We know the timing of the iphone 12 release. What do you take away from that . This might be a bit of an overreaction because wall street has been calling for apple to have better diversification across its product lines and less dependency on the iphone. Impressive growth on wearables, macs and services is exactly what wall street is calling for. The big beats in the areas are really positive. Im not so worried about the miss on independent phones for this quarter. It is delayed. Also their next quarter, their first quarter, typically is includes about 50 more revenue than any other three quarters of the year. That is makeorbreak quarter. Whether we see the iphone sales, whether that is critical making the yearly numbers. I know they havent been so great giving us guidance but i think, i would let them pass on missing those iphone numbers for this quarter and kudos to beating on all the other lines. That is really what wall street has been looking for. Connell by a lot. Especially on the mac number was huge at nine billion. Beat by over a billion. That is good. Connell lance, what would you say . Trying to imagine what would have happened if apple looked back in time when the ipad and mac werent doing so well, if they pulled back innovation. Apple never did. They stuck with them. They worked those businesses and primed for this moment, this unimaginable moment. Other companies are seeing this. These people need new hardware and ipads and macs. These numbers growing are unsurprising. Iphone number is not even remotely surprising to me, when you have the new phone delayed, people paused and waited especially because they knew 5g was coming. I think the estimates were too high there so they were surprised by this number and im not. Of course, yes, the next quarter will be huge for the new iphones. Then we have, you know, incredible growth on Services Side which again not really surprised about. Great moment to have right before the launch of apple one because that is really going to change how people perceive the collection of Service Offerings apple has, including Apple Fitness which is brand new. That will be interesting to see how this accelerates this part of the business which tim cook really wants. They want to rely on more than hardware like iphones. Connell the stock is at about 110 give or take there, scott. It was up 50 this year. It is down four 1 2, 5 afterhours. Would you buy more apple. What do you think of the stock . Yeah i would. I like this level, connell. Weve been buying it on the downdraft. Mention 110, this stock was up close to 130, 140 couple months ago as we buy into the 5g rollout. Apple to me hasto be owned Going Forward. The 5g super cycle will take couple months but once it is going it will be selfsufficient. You look at Services Side of things very strong. He no i say this all the time im not afraid of to play with my kid, play the apple arcade. If you havent played games on apple arcade, for 42yearold man just as fun for kids in six, seven years old range. Connell at least you worked your kids into it this time. We can give you a pass. I dont play those alone on a dark night. Thats true. Fair enough. Connell that is another story. I wouldnt, as they used to say i wouldnt have led with that but that being said were not going to give you a hard time with your kids. Well go back the other way, go to lance next to me there in the boxes. From the technical point of view what do you, we havent talked about this yet, you held it up already, what do you think of the iphone 12 . Oh, the 12 pro, obviously it is their best iphone ever. You know, apple may sometimes do incremental updates and it is always making the iphone better but they did a big redesign here. Went back to some classic looks and feels. Integrated with the true depth module and the best screen ever. I think that people do want these new phones because the changes are big enough for them, not only does it have the three cameras. It has a lidar censor, augmented reality is big deal not only for games, where you put the piece of furniture before you buy it. If you dont want to take pictures before you leave your house, it is a important addition for stay at home world. I like what apple has done for the phones. They are fun it use. Apple is not disappointed on the innovation side. I like it. Connell that is always been the history there. This one, 5g what everybody talks about. I want to get a little bit in, thank you, lance, to the specs of the phone itself. Erin, the big thing for apple, you guys singing its praises understandably so, strength in the numbers with the iphone sales taken out there is a fair amount of pressure for the company for that Holiday Quarter that you mentioned earlier . Right, it is about q1 for them, the holiday period where, like i said in general theyre talking about 50 more revenue than any of the other three quarters of the year. Whether people will continue to spend on technology, still seeing, surprising amount of positive Consumer Spending even with increasing unemployment numbers and potential new lockdowns but those, those gadgets and your phone could be that one big spend that youre willing to spend, particularly with the big enhancements. We complained about People Holding their iphones longer. There is long are turn over cycle. It takes more for something people switching phones. You lose a day switching to a new phone and moving all the data on one phone to the other, reorganizing it. There is that hurdle but i think this one, apple showed they tried to offer enough enhancements to make it worthwhile. Connell you sound like one of those people that dont back your phone up enough. It us easier to turn it over. I do. [laughter]. I have. Connell free advice we give out. Free advice. Widgets, yeah those widgets are pretty cool. Talk about amazon for a moment. We can keep talking about apple as well but circle back, scott to the beginning of the hour, amazons figures are just, kind of eye popping when you talk about just overall numbers of 90 odd some billion in sales. That was a record, 96 billion in sales. On aws, i think you were one of once that brought that up at the beginning Amazon Web Services what would you say about that figure, up 29 yearoveryear better than expected and the positioning there because that kind of brings the conversation when we compare these companies, the big five weve been talking about to each other, amazon, google and others in that cloud business, obviously microsoft not today, but is the other big one there, aws has been some sort of a juggernaut during this stay ad home period. Aws is the most exciting component of any of those Companies Earnings that you mentioned so far including microsoft in my opinion. Aws is the future of amazon, boys and girls, im telling you. It is not their retail business. The information and money that theyre getting in to aws and revenues, i mean those are exactly what the future of this company will be about. Whether they spin that off Going Forward because it is going to get so huge is the question. Not so much worried about that today as a stockholder, one that will keep buying amazon here but if you look at the growth as you noted, connell in aws, in its infancy. The numbers are absolutely astounding. There is no reason to believe that is going to stop anytime soon and not keep propelling the stock higher. Connell would you buy more amazon . I asked you the same thing about apple, scott. What about amazons stock because that is really run up . I would. I love pullbacks. If we get pullbacks from the election any things that come out i would buy the stock maybe on a down day, not a day like tomorrow but i think you should be accumulating here. Connell these five companies, the stat i saw cross on the wires are 20 of the market cap of the subpoena 500 which es crazy. Erin in terms of stocks, weve seen different reactions in terms what happened in the regular session, some pulling back off of highs, do you like these stocks at these levels . So i still like amazon but i also love a sale. If you see any negative numbers around maybe, hesitancy around who say sales that pushes the stock down i say jump in. I think this is opportunity for apple to buy as the stock continues to go down by tomorrow morning. But i think those are two very, such strong balance sheets. We know, even if they face a couple quarters of a downturn, if we do see a dip in gdp in the u. S. , they will easily be able to weather it. Well continue to see growth in aws. Google as well. It is all about the Cloud Services. Were seeing a longterm trend in growth in Cloud Services. Even though there is more competition, with microsoft coming into play, there is still room for all these companies to grow. The margins are off the charts. Theyre contributing over 50 of profits. So those are my top three. Connell we were very busy, she has been very busy, susan li on Conference Calls with various executives throughout the hour. We heard moments ago what tim cook had to say. Susan you got off the alphabet call with the cfo. What did you hear there . Susan yeah. Ruth porat, this is a great quarter for her to talk about since they crushed estimates and revenue sales up 14 . Porat when i asked her about the election and political ads how the fact they are banning all political ads how that might impact the bottom line, we have quite an army of people focused on what we call trust and safety and focused on protecting the quality of content. Weve been doing work quite some time to be ready for the election. Were quite focused as sundar said yesterday in the Senate Commerce hearing. Weve done a lot of work to be in that position. What about the antitrust case filed with the doj last week contending alphabet has way too much control of search and Online Advertising . I asked her if there is going to be an overhang like what microsoft went through in the late 1990s and early 2000s . She said look our view on the doj case it is deeply flawed. People choose google because they choose to not because they are forced not because they cant find alternatives. The company is focused on delivering for users and businesses. Connell, last quarter alphabet saw the First Sales Decline in the companys history. The fact they crushed it in those three months after september, that is very encouraging. Connell crushed it indeed. The stock is off to the races up 9 . Stock, you want to take the Political Risk question susan reporting on some of those comments on the election and antitrust . I thought Sundar Pichai escaped the worst of it but on relative basis with jack dorsey and Mark Zuckerberg yesterday. What about google and the risk of politics . Yeah, there is risk there, from anybody watching yesterdays commentary or question and answer whatever you want to call that, dog fight, catfight, i mean there is risk there. Yeah, i guess theyre lucky that google is lucky and zuckerberg and dorsey were on the call that took a lot of emphasis off the company. That is the thing. If you go into the political space, depending what happens too, in a matter of days that could change the tone as well. So you have to factor that in as an investor to these companies. I think it is worse, maybe a little bit more for some facebooks and twitters. Theyre under more of a heat lamp than google Going Forward. There is willingness as ive seen the companies doing it so far, weve seen it for years. This is not the First Political history these guys have had. They do okay, come out okay getting in front of congress. I dont think that is going to change. That is something consider Going Forward that could affect the stocks at points. Those are buying opportunities in my opinion. Connell how do you consider it, erin, if the democrats sweep into power take all three branches does a lot of risk suddenly go away . Will companies be under pressure no matter what the regime in washington is . How do you look at it on the investment side . Google is a little different because it is antitrust issues. Then also has bias and manipulation issues. I think by far in the safest place. We saw that in congressional hearings. When it comes to bias, manipulation, theyre in a safe space. Theyre pretty good handling. It is about antitrust. That is where they might be more vulnerable if we have a full democratic sweep. When you talk about facebook, twitter, more of social media, about bias, manipulation, blocking, that type of thing, i think that would continue regardless of who is in power. So i dont think that that risk is going to shift with democrats and republicans. And theyre going to be in the front lines, have heavier Political Risk versus google, even with antitrust, there is probably a lot of ways to get around it, in order to maintain their dom nancy. Connell i actually have to finally wrap it up. Great coverage by all you guys, thanks, lance, scott, erin, susan li all over it. Gary b. And lauren earlier in the hour. The big five in from the world of technology. The reason we have to wrap it up to move on to at least some other news, remember we had the last Major Economic report before the election came out earlier. It did show the economy growing at the fastest pace ever in the Third Quarter. We have the white house weighing in on that live next. Nonvalvular afib can mean a lifetime of blood thinners. And if youre troubled by falls and bleeds, worry follows you everywhere. Over 100,000 people have left blood thinners behind with watchman. Its a onetime, minimally invasive procedure that reduces stroke risk and bleeding worryfor life. Watchman. Its one time. For a lifetime. Nellie young lost her devoted husband. Without him, things were tough. Her last option was to sell her home, but. Her home meant everything to her. 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Lets go to Edward Lawrence live in washington with more on those numbers. Reporter positive Economic News really turned the day around. The real gdp for the Third Quarter, as you heard the president say, came in at a whopping 33. 1 for the Third Quarter. This is just the first estimate, so it could be revised up or down. Still, that in combination with new jobless claims coming in at 751,000, under estimates, for the last week showing the economy is going if in the right direction even though a lot of people are still unemployed. Former Vice President joe biden saying the recovery is slowing if not stalled, and helping those who are at the top while leaving working families and Small Businesses behind. President trump has a very different take on this. He says this shows that his policies in place will get us back to that record employment and when the coronavirus passes and his administration saying it will have one of the best years on record if President Trump is reelected. Listen. Inventories are going to be rebuilt this quarter, the momentum is going into the Fourth Quarter and will go into 2021, assuming policies ared good. This is not a one withtime impact. This is going to go on. Its a strong, strong recovery. The vshaped concept that i coined a while back looking pretty good right now. Reporter and the economy is one of those top issues for voters going into the election, connell. Connell Edward Lawrence live in washington. Tyler goodspeed joins us, White House Council of economics acting chair, thanks for your patience as we work through those big tech earnings this hour. Ill try to be as forwardlooking as possible, a huge number last quarter of 33 at an annualized basis in terms of growth. So i guess were about twothirds of the way back from what we lost during the pandemic. As you look at it, when do you think we can get all the way back . Well, first, connell, yes. We saw that in the three months through september 2020 the u. S. Economy grew 33. 1 at an annual rate. Not only did that exceed Market Expectations of yesterday, but it also exceeded by a factor of 2 what the Nonpartisan Congressional Budget Office was forecasting just a few months ago. And if we cast our minds back to the spring, consensus forecasts were for the u. S. Economy to contract during the four quarters of 2020 by 8 or more. So we have pared that loss by more than half. And i think there are two primary reasons for that. First is the fundamental strength of the u. S. Economy on the eve of this pandemic which helped to prevent greater labor market losses, ited to prevent it helped to prevent worse deterioration of balance sheets, but the second factor was the scale and the speed of the response of the Trump Administration to the worst macroeconomic shock to hit the United States economy in almost a century. I think when were casting our minds ahead to the Fourth Quarter, as my colleague director kudlow mentioned earlier today, yes, we do see sign of momentum particularly in inventories, but also we do see resilience in Consumer Spending and also in housing markets. Connell if you adjust it for inflation, i think the economy size is still about 3. 5 smaller now than it was at the end of last year. So on the current there trajectory as we bounce back from the pandemic and, you know, as you just went through, the bounceback so far has been very impressive. Is getting back to where we were a 2021 story . Is it a 2022 story . Whats the earliest that you see us being back to the level we were before we got hit by this . Right. So as i said, consensus forecasts back in the spring were for the u. S. Economy to end 2020 8 smaller. Weve pared that to 3. 5 . A 5 Fourth Quarter would further pare that loss to 2. 5 . But theres no doubt the administration, the president certainly remains committed to Additional Support to achieve the fastest possible recoir in the u. S. Economy recovery in the u. S. Economy. Two of of the really important things in cares act that we think helped stabilize the u. S. Economy and facilitate the rapid recovery we have observed thus far were the 650 billion in the Paycheck Protection Program as well as an Employee Retention tax credit to help preserve the matches between employers and employees and make sure that the job losses, the majority of the job losses that we did observe were expected to be temporary in nature. And also from the household front, we engaged in the Economic Impact payments that were very targeted to lower income households as well as enhanced Unemployment Insurance benefits which, again, were designed to help folks who were most in need. And when those enhanced benefits exe firedded earlier this summer, the president in the absence of action by the part of congress stepped up and engaged in executive action to provide that continued relief. And when we look at the data, we think that was instrumental in helping to deliver the strong economic numbers we saw today, ask thats also why the is keen on delivering additional targeted support to make sure we get back to full employment as quickly as possible. Connell all right. So the takeaway if your comments is that the stimulus matters, and that will matter in terms of whether the continued vshaped or if theres some sort of a stumble along the way. Tyler, thank you. We have to wrap things up. Again, we had all those earnings, and we really appreciate you coming on from the white house. Tyler goodspeed. Deep breath. We got through the big five tech earnings. Some are off to the races. Some, like twitter, not so much. Thanks for joining us. Lou dobbs tonight starts right now. Lou good evening, everybody. There are only five days remaining in this campaign until election day, and President Trump today making a Campaign Stop in yet another major battleground state. The president rallying for nearly an hour and a half in the hot tampa sun. He goes from the freezing cold of michigan and wisconsin, then to the blazing sun of florida. Not complaining today, certainly. Actually, not complaining about the cold in the midwest either. The president rallying in front of tens of thousands of supporters across the country. Thousands of those supporters and anoth

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