Continue to drive Growth Stocks are poised to rally ahead of what could be the feds first rate cut since the crisis. And gaming headwinds, amd delivering a revenue warning first up, apple rising on the better than expected results iphone down from a year ago and now represent less than half of quarterly revenue for the first time in about seven years. Yeah, headlines today in the papers are staggering. New york times, apple reports declining profits and stagnant growth again wall street journal quotes richard cramer, no relation. Were these people on the same call maybe they were on the rotten apple call, i was on the straight apple call. I heard a situation where you are going to if you actually think out in the out years, it is a Service Company with the best Customer Satisfaction there is and when you get an appliance of which there are about 1. 5 billion, you are beginning to take either apple cloud or the app store, the ads, i think that you will be looking at the credit card starting tomorrow and then health care when i talked to tim cook, i was saying why not slap a 10 charge on all these things so i wrapped it all up by saying that the apple that we see now is the First Quarter of many where were going to figure out what that revenue stream is really valued at and then well put not a proctor and gamble multiple on it, which is the 24, lets give it a discounts. Lets say 20 . Wearable growing at 50 Service Revenue at 18. How can i not give it a higher multiple, but i wont because stupidly this Company Continues to be followed by people who want to be service now, sales force, workday winblad was talking about Companies Selling at a gazillion times earnings that is a bad compare. How can you rely on Services Growth when services are tied to the unit base. And if that is slowing, how did we get the acceleration. So there are 4 million subscriptions. They dont tell us how many people are subs like we want from cable we get what the sub growth is, the actual sub growth, number of people we multiply come up with the long term value of those people. And that is how we do it we say just like a credit card person from capital one well, maybe not capital one. Jpmorgan credit card person, you look at how many people keep it and what they are worth and say the lifetime value of that citi holder is x. And that is how we view apple. Lifetime value of a subscriber and then once we do that, well have it. When i played that out to tim co cook, at josh knows, crickets. They are not there yet but i will get them there. I will get them there. And what i need is just one analyst who covers clorox a 2 grower to cover apple and well get a 260 price tag. Youve been trying to get apple in a different basket for a while. You believe that this is a transitionary quarter from iphone to ecosystem. Without a doubt that is how i get at 260 that is a 20 multiple on next years numbers still a discount to every package good company but if you tip to where revenue a recurring stream, you cannot keep that multiple down. You cannot continue to give it a 16, 17 multiple. Katy huberty did complain one of the letdowns was App Store Growth did not translate into total services acceleration. I think she was using 16 growth if you include the 300 basis points President Trump please notice stronger dollar, 300 basis points you do get to 18. Was there is a certain stream that may not be that good . Ill tell you i get that apple credit card august 1 and there is a revenue stream of which all the real costs are born by goldman. Who has the leverage here assures me not to worry are you going to that hacker from capital one, that was like an Amy Winehouse story the moore we learn, the more troubling it is. She had issues. Yeah, troubled and bragging about it reportedly, about some of her activities. And thlowers the value of th credit card. But put it all together and you need to find a person in the proctor world who emphasizes technology and if jamie or any of the first name guys, get david it dto do will jamgs shoues should mak that katy covers it withlets switch firms you get the point. Someone has to do joint coverage it is a part of your thesis that it is a Consumer Products company. And when i bounced it on tim, they are not there yet they im closer and closer. And then there is of course the iphone guidance and guidance about china. Tim cooked about it last night take a listen. We saw significant improvement compared to the first half of fiscal 2019 and return to growth in Constant Currency we experienced noticeably better year over year comparisons for our iphone business there than we saw in the last two quarters. And we had sequential improvement in the performance of every category. The combined effects of government stimulus, consumer response to trade in programs, financing offers and other sales in addition titiativ additioitie effect so the take today is that kind of commentary is good enough to tied you over until we get a 5g phone of which he will not really talk about 5g. He dodged that so how does richard cramer, the distinguished richard skryam crh i never heard of until today but probably the only cramer that matters, but it is just a matter of when apple gets hit in china. So im going with cook, not cramer im putting my money on cook by the way all the key wearables, pods and everything, that was all invented after steve jobs but it is important to note that tim cook has never come up with anything yeah, youre right. One of the calls is that wearables, home and accessories are bigger than ipad citi makes the point that people are not appreciating the diversity. Who did come up with those . Under jobs or cook when is cook going to get the benefit 69 doubt im giving him the big time benefit of the doubt i think he will charge for health care. He always talks about how this saves lives. He will charge for the credit card i go the Biggest Issue is t that i said listen, are you ready for the deluge of people who want that card he tells me that it is just a regular statement. But hes telling me that they are ready. I dont think anyone is ready for what will happen with this credit card. I think that it will be amazing. Well find out a lot more in the coming days. Goldman apple card . You have the best well of course i worked there. Best brokerage with no card right now but they are up to speed and best Consumer Product tech company together offering a credit card . What is in your wallet what did you think was in your wallet lets bring back those vikings that was a good campaign. We didnt do the grub hub i want none. Deep sub referencing, jim when we come back, shares of amd have soared almost 900 since lisa su was named ceo. Well talk to her about the earnings, game plan for growth, gaming take another look here at futures as we wait for the fed at 2 00 this afternoon dto experiencer gthrilling performance. Now, at the lexus golden opportunity sales event. Get 0. 9 apr for 60 months on all 2019 models. Experience amazing at your lexus dealer. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. You are seeing amd which is the terrific rival to intel trading down despite ongoing traf he tariff headwinds i dont know why it is surprised them joining us now is ceo dr. Lisa su a lot of people saying there is a demand issue i look at what you have been telling us ever since the stock was at 18 at the beginning of the year, now 32, that there was going to be a gap quarter so to speak between consoles and this is what happens when you get a gap quarter. Good morning, jim great to be with you this morning. Were very pleased with our Second Quarter results we grew revenue 20 sequentially and weve launched a slew of new products across pcs, data snta e and graphics yes, we did revise guidance a little downward due to game consoles and if you think about it, game consoles are great overall market, however microsoft and sony Just Announced their new consoles just here a couple months ago and that caused a bit of pause in demand. But if you look being at overall i think that we feel really good about the markets and particularly about our new products so lets go over some of the demand issues so to speak. Pcs. I saw good demand and i believe i saw big share take from a company that was always the dominator intel. Did i read it right . So on the pc standpoint, overall pc market is good as you say. And then for us, we did very, very well in the quarter we saw notebooks grow substantially. Double digits sequentially we saw a number of new platforms come into play we also launched new set of products our Third Generation desktop products which got great reviews. So im pleaed with where the pc market is going. And i expect in the second half of the year well continue to gain share and grow revenue in that market. I look being at what can happen in the Fourth Quarter, a lot of people worry about execution risks. Only thing that im worried given the fact that you have out executed everybody is perhaps china. Where are you on the risk china for your Fourth Quarter . Best way to look at our business is were all about our new products and if you look just in the last 60 days, we started ramping three new product families so new desktop processors, new graphics processors. And were just about to introduce new Data Center Processors yes, we are forecasting Significant Growth in the second half of the year and that is on the back of the new products as it relates to china, it is a very fluid situation in china. I think all of us in the Semiconductor Industry are watching it closely. We have stopped shipping some product s to a couple of our customers on the u. S. Entity list but we have great products that are back stopping some of that and so we feel good about the Growth Prospects and you got to feel for investors in the space because every day they are given what seems to be conflicting information, where is the bottom, stockpiling, pricing how simple can you put it in terms of where we are in the cycle from your perspective . So when we think about semiconductors, you should think about it as a secular Growth Market it is a good market. There are pockets of inventory whether you are talking about some of the data center issues in the first half of the year or some of the volatility around china, but for us, there is new demand people want to build new data centers, ensure that they get better capex efficiency. People want new gaming products. And so as a result, i believe if you have a strong product portfolio, you will see growth even though there is a lot of volatility in the market lisa, i want people at home to understand what you are trying to pull off here. You have three new products including rome when it comes to you wasnt built in a day but maybe a quarter. These are remarkable achievements for an amd that used to be cash strapped, used to have too much debt. Look, anyone who takes the stock from 18 to 32, ill give them a victory lap. Tell people what it takes to have three brand new products coming out all at once this is all about execution it takes many, many years to get these products ready, really three or four years. When we think about it, we knew 2019 was going to be a special moment we knew that it would be an Inflection Point for our product portfolio. We were aggressive on technology, first to market in these High Performance markets the team is extremely excited and executing well i think rome is a very exciting product. Next week well launch it in San Francisco. You will see a number of customers, number of new plas forms. And the key is it is all about execution. When we promise product, we need to execute on that time line so were all about meeting our commitments. Analysts are really focused on the next quarter. The other day someone won 3 million playing a game amd specializes in this. Do you see a world where we have a much larger group of gamers including people who may want to go attocollege at 100,000 a year and the way they get this is an ncaa scholarship for gaming is it growing double digits so we should be thinking about 2020 if i can go out that far i know the analysts cant. Well, i think that you are right, gaming is a very exciting market and if you think about it, you have gaming now on every platform you have gaming on pcs, consoles, gaming in the cloud. And even on mobile so our world is how do we get the best User Experience there i do think gaming is a growth secular Growth Market over the next couple years. I do think our technology is well suited. If you look across all of those markets, at the end of the day being partnered with the Biggest Gaming Companies like microsoft, like season any ioig, google, i gives us a good place to be. Do you follow the president on twitter because you mentioned list of companies that are you not supposed to sell to. How do you be a ceo and you can sell but maybe tomorrow not sell, or you can sell. Have you ever thought this would happen to the ceo of amd well, looking i think that we are very cognizant of the fact that it is a complex world out there. Clearly there are a number of issues with china as it relates to trade and National Security concerns we fully understand that and our goal is to have a diversified business, one that can turn on a dime sometimes we are turning on a dime, but id say overall when you look at the growth that were seeing and the new products that were putting out there, i think we feel really good about where things are and well continue to follow very closely the macro situations i hope you dont mind me asking, what is a good example of you turning on a dime look, when we talk about how we position our products, take a look at our portfolio today from a pc standpoint, i mean we are offering leadership performance at every price point you look at some of the new graphics products, when customers call and customers say hey, wed like your help to get our data center up and running, were there in 24 hours because that is the way this business operate right now. So last question. When you took over, what was your share pc versus intel and what would you estimate it now weve made Good Progress in share gains. If you talk about where we were, we were probably high single digit pc market share a few years ago. Market share has not turned overnight, but weve gained five or six points over the last five or six quarters. And im even more excited about what we see second half of 2019 and 2020 so from the standpoint of market share, i think that were still underrepresented in the market i think people are still getting to know amd and what we can offer to the market. But i feel really good about where were positioned and this is a journey as you said, rome wasnt built overnight action but we, but w making progress. Congratulations lisa su, thank you so much thank you when we come back, well get kra cramers mad dash. And still have to get to ge and ea, talk some china as well and ea, talk some china as well and the fed on this big fed day. What about him . Lets do it. Come on. Ing ] this summer, add a new member to the family. Hurry into the mercedesbenz summer event today for exceptional offers. Lease the glc 300 suv for just 419 a month at the mercedesbenz summer event. Going on now. I felt completely helpless. Trashed online. My entire career and business were in jeopardy. I called reputation defender. They were able to restore my good name. If you are under attack, i recommend calling reputation defender. Vo theres more negativity online than ever. Reputation defender ensures that when people check you out, theyll find more of the truth, not trash. If you have search results that are wrong or unfair, visit reputationdefender. Com or call 18778668555. Dow looking for a gain that will be almost entirely apple. Well see what the opening bell brings us in about five minutes. Dont go away. So. How are you feeling . On a scale of one to five . One to five . Its more like five million. Theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. 2 1 2 minutes to the bell. Lets get a cramers mad dash. Ge reports a number where there is a guide up. Trying to get power under control. Certainly industrial billion dollar cash flow better. Here is the problem. It is not changing the persons mind that matters which is steve tussa and the people who like it continue to like it. Steve says combined power were worse. Health care material okay, but aviation big miss. Aviation is max. They are hurt by the max as is u. S. Gdp for that matter yeah. But larry is a good ceo. He included that even with his raise. Here is the way i look at it we are four quarters from ge being a Boring Company that we dont really want to focus on. But not yet. And i know that larry is new cfo coming larry is bringing in his people. I dont think that he is trying to get the band back together so to speak but there is going to be reliability to the numbers and that is the reason why the stock could go up. It does feel a little like 3 m in that 3 m opened up big and then the tusas of the world took over the story line and people regretted that they paid up. So there is no rush to buying ge off this quarter it is a 2020 story once again the reset meani