Investors seem to be more optimistic as Congress Continues to work on another federal relief bill. The president at the bottom of the hour scheduled to deliver another news briefing. This as tensions between the u. S. And china continue to escalate. The u. S. Has ordered that the chinese consulate in houston, texas to close china to close. China is calling for the u. S. To revoke the decision and is warning that the u. S. Has more diplomatic personnel in china than vice versa. Joining us to break down the market avenue big the Market Action are Abigail Doolittle who has following who has been following the action. Abigail tesla delivered. Considering you have the stock of more than 280 on the year going into that report. Before we look at that stock specifically, it has been another interesting, slightly choppy day. More sleepy at the end of the day. We saw this late day surge climbing. Not huge gains. We had stocks of flat. Nasdaq down at the end of the day. This s p 500 higher. This seems to do with the fact that we once again have the fed Balance Sheet expanding. That is driving the dollar lower, helping of these major averages. The new york faang index down ever so slightly, despite microsoft climbing into its report which we will talk about in a minute. There were renewed to between the u. S. And china with the u. S. Closing down chinas consulate in houston. Stock see, a chinas index in the u. S. , down 1. 8 . That is sort of a broader recap, a little bit of a risk appetite, but more neutral. As for tesla, risk on, risk on, and risk on. They basically delivered. The stock up huge on the year, now up to hundred 90 . Up to hundred 90 . They are seeing they are on target to deliver half a million vehicles. They put up a fourth consecutive gap profit in a row. That means they can be included in the s p 500. All sort of indexes and managers have to buy, another positive for the stock. Emily meantime, microsoft shares still down after hours. The company beat on revenue in the quarter. But cloud sales disappointing. Give us more of the details. Abigail this is a case of price to perfection. Youve have this stock on fire and for good reason. March quarter they put up was very strong. Really a beneficiary of the work from home trend. A piece of that is the cloud business. It just wasnt perfect. Investors wanted that. Quite frankly, you have traders and investors taking chips off the table, down 2. 6 which is nothing relative to the huge gain on the year. It is going to be interesting whether or not this sets off jitters for the other Big Tech Companies. If you recall, last week, netflix, not perfect. The june quarter was ok. But the guide here, you have another stock in a similar situation. May be an influence on tomorrows trading. Emily all right, thank you so much for breaking it down. Abigail doolittle there for us. I want to get back to tesla. Shares rising on the back of its result. Tesla saying it is on target to deliver those 500,000 cars before the end of the year. A big potential milestone. Tesla shares have been going up and up over the last few weeks. Bringing us here to break it down, we have craig irwin of roth capital. Report,ook at the minutes ago, what is standing out to you here . Craig your recap now was excellent. The key thing is 104 million gap profit, now they can go into the s p. That was widely expected. The bears are going to pull us apart and say, how did they get there . Regulatory credits, 428 million is a new record versus 354 in the first quarter. Oer 111 a year ago. The quarter really came from regulatory credits. But, we have to give credit where it is due to 90,000 units and a covid quarter is a monster quarter. Three plants under construction on three different continents. I think he has room to surprise investors with new initiatives and new opportunities for growth over the next couple of years. All in, a good quarter. Still some details we want to learn. Thats what the calls are for. Emily that said, do you think tesla deserves this market cap that makes it more valuable than any other car company in the world . Craig my answer is simple. Categorically no. Im out of consensus. I believe teslas battery costs numberser than what the are. My position is based on primary channel checks with the largest battery suppliers in the world. If that is the case, teslas prices is no different than bmw or mercedes. Haveof my friends actually a supply contract to some of these other oems. Done ae competition has very mediocre job with their evs that they have introduced to date. What investors are doing is treating tesla like it operates in a vacuum and theres no competition. That is not actually a reflection of reality. There is 180 evs that are coming to market by 2025. And to bet that those are duds is a risky bet. Absolutely not. I dont think it is worth the valuation it is sitting at right now. Emily i know that you are optimistic about teslas smaller ev, like a minicooper, but with more and more electric vehicles coming to market, certainly tesla has first mover advantage. How do you expect this other electric cars to compete visavis tesla . Craig they have to get out there and do a good job with their brand, and offer consumers a compelling proposition. It has got to come into the market at the right price, and it has got to have the performance. You look at the take on, i was optimistic about the take on before we started to see it on the street. In the performance of the take on was not where i think porsche wanted it to be. It was not where a lot of the buyers of porsche typically want it to be. So the enthusiasm for the take on has really fizzled. Back. E, i expect, to come they are not a company that quits easily. They have an opportunity to get it right over the next couple of years. Emily meantime, what is your outlook on how many people are really going to be buying cars over the next six months . You have tens of millions of people laid off. You have far less commuting. Yes, people want to commute and private cars versus on public transportation. How do you weigh those things out . Can tesla really hit that five hundred thousand car market by the end of the year . Craig tesla is unusual. It has shown a thick layer of insulation between its own fundamental Sales Outlook and its execution, versus the rest of the auto market. The buyers tend to move very differently, in a country where there are 40 Million People unemployed. You would think the Sales Outlook was pretty grim. Teslas Customer Base tends to be a lot more affluent. Maybe younger. And i think that professionals that are buying these vehicles are may be less impacted by some of the Economic Issues that are hurting many of us across the world. World,talking about the what do you see in the global picture . Obviously there is the potential to enter india, and tesla saying they will start delivering cars from their shanghai factory next year. Craig yeah. So, the most interesting thing weve seen as far as local markets is a ratio of model three sales to model x and s sales. It is actually about 25 or higher than what we have seen in the u. S. And the overall Global Market in aggregate. The chinese market, the fact that you can sell a 50,000 car is great. But the fact that you have to have may be a larger market then many of us were originally thinking is better for tesla. The minicar might even have a counter opportunity. Emily craig, you are breaking up a little bit toward the end. Were going to have to let you go. I do appreciate all of your insights. We got the most of what you had to say. Craig irwin of roth on tesla. We will continue to follow. Tesla has has a call at the beginning at the bottom of the hour. We will talk about microsoft beating on revenue, but not so great numbers in the cloud. We will break it all down next. This is bloomberg. Microsoft revenue rose in 13 ,atest quarter signaling Strong Demand for its Cloud Computing software and Services Helping to keep workers connected around the world, as so many of us shelterinplace on work from home. Shares still down after hours. I want to bring in john freeman who covers the company. Why do you think investors are not so excited about these numbers today . John well, you know, i thought it was they beat consensus, but i think there was a lot of maybe hope for more significant upside. Board,hink across the almost everything was definitely from significant sequential deceleration from the previous quarter. Emily what is your take on the cloud specifically . Obviously you have investors with lofty expectations as so many Foreign Companies have been critical in keeping the Business World afloat. Things are not going to change much it seems in the short term, unfortunately. We are not going to be coming into a new normal for quite some time. John well, yeah. I think actually downturns, if you look at it historically, they tend to accelerate technology trends. And particularly software trends. Because they tend to get out the old stuff and Pressure Companies to really use the latest technology. It ends up being a catalyst. Certainly, microsofts azure crowd cloud group grew 47 . Thats tremendous and amazing. But it was 50 something percent the previous quarter. I think it is all relative. I dont think that the cloud conversion is going to magically somehow accelerate overall, particularly for a company like the size of microsoft. Its a hard reality. A downturn will result in lower growth across the board. Except for video games. Content and services was up 65 yearoveryear. Which is in line with our video games season as well. Quite clearly, videogames are doing quite well this year. Emily i can imagine a few people might have finally bit the bullet and bought the xbox as they shelterinplace and their kids are out of school. Curious of your thoughts on Microsoft Teams which of course competes with zoom and google meet, what is your outlook for that product . Well, i look at all of those products as kind of edging another sort of collaborative area. Almost like monopolistic competition. A product which has realtime collaboration for software development. I think there is a bigger battle and i also look at the and that is why i think the regulatory pushes in these areas tend to be very ephemeral in terms of results. So yeah, that is kind of how i view that space. I think it is probably a lot more fragmented than if you look at how actually people collaborate realtime or whatever. If you take a Bigger Picture look at it, it is a much more fragmented and less monopolistic market than some regulators might say, for example. Emily all right. John freeman, always love your energy. John freeman of cfra who covers microsoft. Coming up, we will be talking eventbrite. Every vote counts. Eventbrite is committed to get out the vote this november with a new initiative. We will hear from the companys cofounder and ceo. We will take you to the white house. The News Conference scheduled to start at the bottom of the hour wherein the president takes the podium. We will take you there live. This is bloomberg. Wind with less than four months to go until the president ial election, eventbrite is launching a new campaign called ticket to vote, with the hopes of driving more Voter Registration and education on its platform. The company is partnering with headcount as part of its initiative. Joining us in an exclusive interview, cofounder and ceo julia hartz. Obviously, this is important. The mission is important. How is this partnership going to work . Julia thank you, emily. This year is an extraordinary time for the voting population. While covid has virtually made impossible,thering online gathering is growing tremendously. We have seen Online Events. Millions of people are coming to the platform to connect with one another. Our goal is to really lean into specific engagement and create a positive change by helping to make it so easy to register to vote. We have partnered with heth with headcount, an organization that has helped over 600,000 young people registered to vote at leave events. And we have taken their method online. Effectively, our creators can set an option in their event to allow people to just easily hit add to cart and be able to go through a registration, and that is going to make it much easier for people to get educated and make sure that their voice gets heard this election season. Are in theously, we middle of a social, economic and Health Crisis as we move toward this election. Im curious how that has translated into activity on your platform . Are you seeing a rise in more activism related events . Julia we have seen a rise of activity a fact is it is him of activism this a year. The goal is to help voices that have been unheard, be heard. Eventbrite is that platform. Toare enabling our creators use the platform for things that they would be doing otherwise. Being able to elevate voices, being able to educate people, being able to activate the action that needs to happen in our country. I think as we see communities come together online, there has been a tremendous rise in terms of using your voice to create positive change. If you go to the eventbrite homepage, you will see thousands of social justice and Racial Equity education events. And that is not by accident. Our community has come together to really give this moment in time the significance that it deserves. And we are seeing the activity on eventbrite just continue to grow and swell. To that is really something be optimistic about and be hopeful about. Talkedobviously, we have about how the in person event has been, at least it is certainly on pause, and it may be forever different. Are you seeing coming back at all, even as we come out of this . Or will a vastly larger percentage of events be virtual over the longerterm . Have the live events never been more directly in vat impacted in our generation. You have to go way, way back to find a time where there has been such great disruption of something that is an innate human need. Gathering together in real life. What we are seeing is with the advent of technology and the benefit of us being in this age of innovation, people are finding each other online. 85 of consumers who are attending Online Events new the creator prior to covid. So they are just finding them online. And creators are seeing that Consumer Behavior shift and the adoption of these online formats. And they are hosting more frequently of events. I cant predict the future perfectly, but i can tell you what we are seeing now. Instead of large format in person gatherings, we are seeing people pivot two more niche focused events online. Instead of a big music festival, we are seeing fan fueled listening jams online. Or living room concerts. Instead of a big business conference, we are seeing more hyperlocal meet ups happening. As it becomes more safer for us together in person, we believe we will see more small format hyper local gatherings. People will not be crossing borders or traveling a far distance on airplanes, for instance. But they will be driving to see and connect with their communities. I think a fundamental question for the live event economy is really when are we going to get back to those big events . Thats not the problem that we are trying to solve. Our core market is about the small to mediumsized events. And we can scale up to hundreds of thousands of people in online gatherings. Emily now, i know gender equity is something you are really passionate about. And we have sympathized as moms, as parents who work with schools not reopening in the fall. I wonder how you are thinking about this . The case has been made that this is much harder on parents, certainly, and working parents. How are you thinking about that and how are you helping your employees navigate that with no end in sight to this status quo . Julia certainly, in the u. S. , we are faced with one disappointment after another in terms of the outlook on reopening schools. I think as we look forward, we have to prepare for the worst. As an employer of over 600 people around the world where we largely have gender equity, it is really imperative for us to think about this as a family problem. And even more so as a dependent care problem. So we are looking way looking for ways to partner with organizations to come up with creative solutions. We are starting to see communities come together to form pods for their kids to be educated together in a smaller environment online, if they are doing Distance Learning. I think especially for those children who are under school age, this is a real issue for everybody. And we are unified in the impact. My focus has really been on solutions that can help to drive us through this era in time without particularly women taking decades off the advancement that we have made in gender equity. Which i know is something you care deeply about. Emily is the school in Distance Learning actually, we will have to leave it there. We are running into this press conference at the white house. Julia hartz, always appreciate you joining us and for your insights there. Coming up, we are going to be talking about a firm and shop a fight teaming up to offer more selectable payment plans via shop a fights one million plus merchants. We will have a wideranging conversation with macks left chin. We are standing by for a News Conference at the white house. We will take you there live when President Trump takes the stage. This is bloomberg. Businesses are starting to bounce back. But what if you could do better than that . Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Emily welcome back to bloomberg technology. Im emily chang in san francisco. Canadian ecommerce giant shopify is teaming up with a fi