Yearoveryear. This, despite a huge boycott by many advertisers. Apple delivering a surprise revenue boost, growing 11 amid expectations of a possible decline. The company delaying its return to work, now setting early 2021 as a target date for the u. S. Campus. I just got off the phone with apple ceo tim cook. He highlighted a record quarter, Record Services revenue, and focused on the iphone result, which he says was better than expected after a fairly depressed first few weeks of april. Thanks bounced back he says the pandemic is likely helping sales for the iphone for the ipad and mac, but hurting iphone and wearables. I spoke to alphabet ceo who talked about the fragile macroeconomic environment. We will get to her comments in a moment. Lets start with apple. What you see . Were looking at the post market over the last few days and it has been a little bit rocky. Some of that was psychological overhang. Something very impressive on apple, they put up 2. 58 a share. That is exactly what was estimated prior to the pandemic. It is a 25 beat of what analysts were looking for. They were looking at the number before it was reduced for the i bought one in april when it was weak. I made a contribution there. Versus4 billion dollars 23 billion. Service is strong, solid yearoveryear growth. It could help some folks get into the stock because it will be less even though the evaluation will be provided. Beat on a june quarter, typically not an easy quarter for them. They did not provide a forecast. Wayof the stocks in a huge above the nasdaq 100 and the s p 500. Valuation is high so investors are buying for fiscal 2021. We have no actual visibility from the company on that year. A little bit of a leap of faith in part of investors on that valuation even after the massive quarter. I will talk a little bit more about what tim cook told me on the call in a moment. But lets get to the other three companies. We saw alphabet shares turned briefly negative after hours but they are back. What do you see when it comes to alphabet, and amazon . Youre right about that. For a moment it was down. 7 alphabet was down. 7 . In amazon not pull sort of thing. Sometimes they will spend and it will eat into profits. They usually get a pass for that. This time, they didnt do that. It is clear they are benefiting from stayathome. Folks really shopping online. Now deliveries are every day. They put up facebook put up a very strong quarter. It tells you investors and traders have been nervous going into this quarter as rebounded. Unlike apple, they beat the 1. 80. Te coming in at but investors were looking for 2. 40. Belowthe street but well what we were looking for before the pandemic. And also that, this is probably the temas of the quarters. Something i would like to say. I do look at the charts and the technicals. It still might be too far, too fast, emily. Emily we appreciate all your Detailed Analysis of the charts. Thank you so much for breaking that all down. Meantime, i want to get to the breaking apple numbers. We are listening to the call as it is underway. Be hereis a pretty big applele beat here by especially given the products and categories, some of the devices significantly up. What are your takeaways . It is a jawdropping. Look at the i phone number and the overall result. This is something beyond that case for both perspectives. It is massively gasoline and the fuel tanks that are apple going forward. I think that this is a potential paradigm shift. Of course, Services Continue to be the foundation of the story. Emily that said, apple had 25 of the stores closed, most in the United States, some in south america. I asked how that would be weighing on the Current Quarter. It does weigh on the results and i would expect to weigh on the results primarily on the iphone and wearables. We are not giving guidance because of the uncertainty. This is the Second Quarter in a row that apple has not given guidance. He have told me that they are thinking about potentially not giving a forecast no matter what is ahead and whether or not that is the right thing to do for apple. Saysdo you make of what he when it comes to the iphone with storms be stores being closed . It is such an important part of the buying experience. How big of an impact will that be . First, it is 6 or 7 of sales. It is smart but no doubt the environment is very volatile. I think it is a game of blindfolded dogs giving guidance. I think it is a prudent move in the next few quarters not giving guidance, i think investors are buying it. There is a huge trajectory going forward. Are 960 million iphones worldwide. Biggest product cycle since iphone 6, i think this is the stock that continues to get rated. Its back against the wall and there are other tax dollars. And this is just something beyond the best case. This is what we see in terms of numbers over the next nine months to 12 months. Emily tim cook is talking about how excited he is and wearables. He told me the air pods and apple watch did incredibly well partly because of the trends we are seeing with work from home in the pandemic. And hes also talking about supply constraints. Areipad, the mac, and we expecting a big launch in the fall when apple historically has unveiled the new iphones and new ipads a little bit later in the fall. Will there be supply constraints . We will be hearing more about that on this call. The are you expecting impact on supply and launches in the Current Quarter . From the supply chain perspective, we get wiggle room with perhaps the middle of september and it could launch. It all comes down to the next 12 to 18 months. It will normalize a lot quicker than expected. We are modeling 90 millionaire pod uses for this year. 29 million the year before. That is something that is becoming key along with services. Cook is continuing to speak on this earnings call, saying that he saw the elevated in theface time and siri quarter. I wanted to get your thoughts on the antitrust hearing. And the concern lawmakers have. They would share it before congress yesterday and also told me. And also told me that he is optimistic that people will understand. He says the app store has been a success. He thinks that people will realize that and i am optimistic. How concerned are you about the stipulation . It is definitely in the crosshairs. That 30 fee is not just the u. S. , but also across europe. It is where we will see more of a focus. And i think they defended themselves pretty well yesterday. More regulatory perspective, amazon and facebook is going to come more in focus in the fall. Really investors are not viewing it as a major risk. But i will tell you this, it is good that these tech giants did their hearings yesterday and not tomorrow given all these results. Emily all four on one big day. Dan, always great to have you here. We will continue to listen to the apple call and bring you highlight as we have them. Also, alphabets call is ongoing as well. I just got off the phone with alphabet cost ceo alphabets ceo. We will tell you more after this. This is bloomberg bird. This is bloomberg the macroeconomic caused by the pandemic created headwinds for our business. Ar revenue declined on recorded basis and is flat yearoveryear on a fixed fx basis. Like other companies, this quarter we saw her early signs of stabilization as users returns to commercial activity online. True among different geographies. The economic climate remains pressured. Emily alphabet Ceo Sundar Pichai on the earnings call. We are continuing to listen in. The company beating on sales, 31 point 6 billion above expectations. 30. 6 billion in profit also beating. Sales did fall a percent, youtube adds only grew 5. 8 . Google nearly double the cloud sales in the order. I also just got off the phone with alphabet ceo who reiterated some of what we heard there that the company is cautiously encouraged by the performance but continues to be an ongoing fragile macroeconomic environment. And what google is experiencing is very much about what is going on in the wider economy. E have Daniel Newman good to have you back on the show. What are your big takeaways from these alphabet numbers . Daniel i thought the quarter was very good. The tech space as a whole continues to be very encouraging. It wasnt a blowout like some others, but there was a lot of concern with Small Businesses being impacted that ad revenue would be down quite a bit. I felt like google or alphabet showingith youtube growth yearoveryear despite the pandemic. The Cloud Business has been really encouraging. This is really the worst of it. There is definitely ongoing challenges with the pandemic, but we dont see closures like we have the last quarter coming again. And the overall performance was good. Despitedata shows that the fact that revenue may drop 5 , the remaining six months of willear, social activity be up 20 to 25 . Given that it is google, they dont give forward guidance, but it should show encouragement that the next quarter could be better. I would love to hear how you compare google to facebook here. Because facebook is in the middle of an advertising boycott and still hugely beat on revenue estimates, especially in advertising. We did not see as much of an uplift in google and they are not facing an advertising boycott. What do you make of that . I think it is behavior. There are Companies Pulling back, but people are spending more time. You saw the average user growth, the time people are spending are up. Active monthly users are up. The more time people spend, the more revenue is generated. For business is trying to come back, companies are participating in the boycott. If they are having success on the platform, being a place where people spend time or messages are going out, there is just a lot of time and energy being spent on facebook and i think facebook is capitalizing really well. Doing arguably very invasive things for data. And they have the right people. It doesnt have the same engagement model that facebook has. Theends to keep users on platform, spending time and energy, creating revenue for advertisers. Emily i talked to the alphabet ceo about the antitrust hearing and it certainly seems like him lawmakers have made up their minds about google and they could be pursuing aggressive regulation. I asked her how concerned she is about that. She said we are happy to engage with regulators as they review the entire industry, not just google. She did point that out. All companies are the subject of scrutiny and data Shows Consumers love our product. How concerned are you about regulation . Daniel regulation is important to make sure that we have checks and balances. As a whole, i find the timing of putting this much energy into regulating the Tech Industry a little bit alarming. There are just bigger things that lawmakers should be focus on focused on. Things from censorship to , the app store, getting people choice. How dominant are you in an industry . We did a pretty good job of explaining a certain amount of choice and each of the respective industries. I feel like alphabet really does have a huge percentage of search. We look at the way information is consumed. It is more distributed because people do use facebook and amazon as surge. These conversations will continue and i hope that we realize that these companies are creating jobs. And right now, i think that is really important. I hope we dont push too hard on this now and come back to this may be when we have some more stability. Maybe when we have more stability. Emily thank you, dan neuman of the future in group. Futurum group. Coming up, we talked to astrazeneca and where they are in the race to find a covid vaccine. This is bloomberg. Emily astrazeneca is the latest company in the race for the covid19 vaccine. Emily horton and matt miller spoke with the ceo of astrazeneca. Take a listen to what he had to say. Almost 10,000 volunteers in the u. K. And we are working our way to vaccinating 5000 volunteers in brazil. We might make that study bigger. And we will run with [indiscernible] emily good morning. You said you dont want to make a profit. You dont plan on making a profit from the vaccine during the pandemic. What about when the pandemic is over . What are the pricing plans going to be . Mr. Soriot our focus right now is to deliver this vaccine and a deal with the pandemic. Do it isn we want to that we thought this is clearly an example of a disease that we have to tackle globally. Everybody has to be vaccinated and protected. And we want to bring the vaccine to as many people as possible around the world. The vaccine is very expensive. Have 2 billion doses of capacity. Gone,en the pandemic is the needs for the vaccine will be delayed and we will have to look at how we manage it. But right now we are focused solely on the pandemic. Matt so you dont have any idea about pricing afterwords . As you point out, it is relatively inexpensive to produce. But of course, you pay for research and development. This is what you do. Sell it todrug and people that need it as a profit. Still no idea what the prices will look like . Our view is that we will continue to provide the vaccine at a very low cost for low Income Countries because they can vaccinate their people. And we intend to make a reasonable profit in the richer countries. The pricing will be appropriate and reasonable because we want people to be able to get vaccinated. And definitely low and middle Income Countries. On both sides of the atlantic, there are these reports about russian hackers. Are you a victim of this russian hack . And what impact has this had on your research . We have looked at this. It is very sophisticated and we have some of the best Cyber Defense that you can imagine, actually. We have come into contact with the u. S. And the u. K. Government, the defense unit the Cyber Defense unit. We are very protected. We havent seen any signs that we have been hacked. Fact, we have a collaboration with partners in russia for many years. U. S. Companies, they will menu the vac for us. Will manufacture the vaccine for us. For the important path supply chain around the world. The ceo of astrazeneca. Coming up, we break down facebook shares poised to hit a record high after a big earnings beat. This is bloomberg. Welcome back to bloomberg technology. Facebook shares spiking after hours now, almost 7 , on the back of a big earnings beat. Secondquarter revenue, 18. 7 billion. This appears to show the massive ad boycott has not had a Significant Impact on results. Isning us to break it down deborah of the marketer. How has facebook been able to pull off this kind of beat in the middle of a huge boycott . This is a really great question. This is why i love following this company. I have been following it for 14 years. You dont know what to expect. These q2 results are not related to the boycott. The boycott did not start until july 1. Few advertisers may have started to pull back early during june, during the black lives matter protests, but we are seeing is how facebook did as a company during the Global Economic downfall, and it did really really well. Emily that said, they do give some color on july, saying that in the first three week of july, revenue is up 10 yearoveryear. What do you make of that . Debra that is sobering when you compare it to q3 of last year, up 29 . Is reflective of the uncertain states of the world economy. It is hard to read the tea leaves on what is going on with the boycott, because many of these advertisers that pulled out were committing to pull out for the months of july month of july. We have a day now until the end of july, so we are going to be watching what is happening starting august 1. I know some advertisers have committed to staying out of facebook and other social platforms for the balance of the year. At the end of the day, facebook has millions of advertisers, and what we have seen during q2 and into july is that there are a lot of advertisers that people have been able to pull in that are endemic to digital that are somehow related to staying at home or being away from your typical activities, that have been able to advertise on facebook. That shows the power of the company. Emily just a reminder of the scale of this company, 2. 7 billion monthly active users, using the family of facebook products, not just facebook, but also instagram and whatsapp. The company says they are expecting daily active users to be flat or slightly down quarter of her courser. Quarter over quarter. What does that say to you . Debra we saw a huge rise on facebook and instagram over the course of the pandemic. We are seeing now a sign that maybe facebook is going to be reaching a ceiling as a result of that. Snapchat said something similar last week during its earnings report, where it had also achieved pretty strong gains, but it too did not forecast as much growth. It did not forecast as much growth in q3. My take away is that the pandemic effect is basically over for these social platforms. Emily basically over. So you think thats the end of the impact of the pandemic that we will see, even though we are still in the middle of all this uncertainty, virus researching in the u. S. And around the world . Debra as far as user growth, i think so. People are not staying at home as much. Housebound. There is certainly a lot of uncertainty about what you can do and the economic effects. I think that initial phase where people were really trying to figure out how to live their lives in this new sort of ,eality that we have been in and they were turning to social media to talk about it, to learn, to engage, i think we saw that growth, but i dont know if we are necessarily going to see a lot of new growth coming on in q3 and q4 as the pandemic wears on. Meantime, Mark Zuckerberg was certainly a target at the antitrust hearing yesterday. All four ceos had rough moments, but the tough questions were directed at zuckerberg. The issue around buying instagram to get rid of the competition, about copying the products and features of other services, and about anticonservative bias. Republicans railed him on that. It certainly seems like a lot of lawmakers have made up their minds about these companies and the threats they have posed. I am wondering how concerned you are about regulation, for facebook in particular. Debra yesterday was a pretty brutal attack across the board on all four companies. Perhaps apple got off a bit lighter, but it was definitely a pretty brutal attack on the other three companies. It is Crystal Clear that congress has a lot of beef