down almost 9% but we will start with maga and the president touting the four stocks what we're now calling the trillion dollar club >> we have four trillion dollar companies. one is apple, one is microsoft, one is google, one is amazon you have amazon, google, apple and microsoft. you have an a, g, a, m, you have a maga >> heath is joining us from the global conference. congratulations as always on the conference good to talk to you. >> great, thanks, carl great to be here. >> you don't cover all of the names in that group but you cover a lot of them. i wonder is it any different covering them or is there more responsibility how much is the market relying on the fates of those four companies? >> we look, those are our tech leaders. that's what the market is looking to in a lot of ways when you talk to investors, those have become market stocks. they're reflective of the direction the market is going and reflective very much on investor sentiment on where they expect the market to go. >> let's talk a little e-commerce, heath. you guys cover amazon, ebay and etsy but not shopify why not? >> we actually do cover shopify it's our software analyze covers it, because it's more of a sass model versus a real transactional model, the other companies i personally cover are. >> i want to ask you about some of the trends that are affecting shopify, which is up considerably this morning. and also affecting the companies that you do cover. mainly giving merchants who aren't amazon more autonomy but also trying to give them the kind of logistics-led flexibility that amazon offers third parties. how important is that, the autonomy plus that capability to all of the players going forward who aren't amazon? >> look, we are seeing massive growth in e-commerce you and i talked about it before, affected by the number of store closures at retail. obviously that puts a lot of pressure on logistics networks when you look at the level of investment traditional networks have been making in their infrastructure, it's not enough to be able to handle the load of 20% growth on shipment volumes from amazon, from etsy, from all of these companies trying to fulfill the demand consumers have to get things faster and easier, delivered directly to their home so it's created a void these e-commerce companies have had to step in and fill if they're going to continue to be able to grow at the rate they expect to. honestly their investors expect it to. >> we're talking logistics and transportation, that brings us right back into mobility want to get your thoughts on the lyft numbers the move lower today, seems to be directly tied to the fact this name didn't up the profitability guidance, where as uber did last week were you surprised by that >> not really. uber had a lot more room to be able to take cost out of their stock market i mean, when you look at the breadth of what uber does, their global they've got an eats business that had considerably more losses to take out of the system compared to the ride-hailing business you've got all of the other efforts that uber has. and also things that will pay off, things like freight, autonomy, elevate their ebotl business there's a lot there for uber to do to get that business to rationality. and they're also operating obviously on a much higher scale, larger scale, than lyft is so this is going to be a business where scale matters a lot, and so for them to be able to pull forward profitability, they've got a lot more ammunition to be able to do it than lyft, who's operating just in the u.s. ride-only business lyft will benefit from the same-scaling advantages over time as their business grows it's just going to take a little longer when they're just operating in that one segment. >> yes, lyft is pure ride-share and uber is a conglomerate of businesses coming together is it safe to say the con gomg rit model in the near term is more sustainable to workout positively or is the verdict still out? >> you know, it's funny how the pent l pendulum swung on that in november nobody wanted anything to do with the model, the eats business was unattractive everything was losing money outside of the u.s meant tons and tons of competition investors didn't want to deal with. and now most of that is being viewed as a positive eats business is getting more rational competition outside the u.s. is getting more rational and that conglomerate model gives them scale to be able to operate at a level to cover a lot of fixed costs, technology and customer acquisition that ultimately will make this, we believe, a much better model over time we like both lyft and uber but we think given the scale uber's operating at, you will see a much bigger business coming out of uber over the next three-to-five years period because they have so many different ways to win. >> heath, the coronavirus fears are abating. especially today and this week tonight. i wonder if you think the travel hangover will be with us for a while? how long of a legacy issue is this going to be, even if it's a matter of weeks or months? >> look, the travel hangover we have in the online space is far more centered around the competition that these companies are seeing from google and from the suppliers themselves than it is any short-term impact you're seeing from the coronavirus. these companies like trip and expedia have much bigger challenges to deal with than the fact google is capturing a much bigger share of the economics of of that business at the front end as consumers go to search more and more on their first stop planning a trip and the fact hotels have done such a good job whether you're talking about hilton, marriott, hiatt, in terms of lilding up thebuild loyalty programs and capturing customers on the back end as well the coronavirus will have an impact on numbers in the first quarter. that's a short-term problem. the longer-term problem fospace >> what's more challenging, solving the search-related conundrum for booking companies or researchers trying to unlock the amazon puzzle? >> i think it's much more challenging for the travel companies. the reality of it is, when we all search, we start with google google has a better mousetrap for this because that's where the information lives and the fact we're dealing with such a tight supply environment as we all know as travelers, it's tough to find a hotel room. occupancy rights at an all-time high that means hotels are in a great position to believe able to take advantage of that by squeezing otas on inventory which means google is the consumer's best first stop planning that trip. the otas are caught in the middle as middle men and until juan of those two dynamics change, particularly on the supply side, it's only going to get worse. >> heath, you guys have been pretty negative on red thin and zillow, kind of the technology real estate place for quite a while now, i guess about a year and a half lately since the fall both of those stocks have performed pretty well. what would it takes to get you guys to shift your sentiment in that what are you looking for the likes of zillow and red fin to get more positive? >> those stocks have done really well honestly, we missed them multiples are clearlfl things getting better in the housing market, the competition environment getting a lot easier as intra capital going into that space has started to pull back i think what you're seeing and what we need to see is just some stability there. i think if we can go into a period where we're not seeing those kind of swings in the business model changes you see both of the companies make and they prove out to be the right ones for them, i think we can get more comfortable with them but in the meantime we think there's another of that positive baked into these multiples we would still be a bit more on the cautious side at these prices. >> heath terry of goldman, we miss having you on set but we will look for headlines out of the conference thanks again. >> thanks, guys. we are, of course moderator until fed chairman powell's update on the hill steve liesman? >> what's ahead is how markets are reacting while stocks are surging, bond yields rising and the probability of a federate this summer is declining the july cut we were monitoring fell from 55% yesterday to 50% about now. it's still around 80 for december powell repeated his concern over the coronavirus, that it could hit china and spill over to the u.s. but also repeated the current fed policy likely to remain appropriate and future changes rely on, quote, a material assessment of the outlook. markets seem now to be taking that to heart that at least for the next several months the fed is likely to remain on hold. powell did say they will act aggressively with qe and guidance if rates fell to zero he did raise two alarm bells first on the debt levels -- >> it's very hard to say at what level be concerned i would say be concerned now what is happening is the gdp isn't going up as these move other countries have got to high levels much larger than ours. what it means is that 20 years from now we will be spending those tax dollars, our children will be serving the debt instead of the things they really need. >> powell works cyber attacks remain a major threat to the financial system senators from both parties went out of their way to say they support the fed's independence, even with the immediate criticism of the monetary policy of the president. >> steve liesman, thank you. later today, do not miss ceo of goldman sachs, david solomon, sitting down with an exclusive interview on "the closing bell" at 4:00 p.m. eastern and next, another exclusive from the ceo of google cloud don't go anywhere. back in two. liking the now platform? every time it takes care of something for us, we celebrate. how often does that... got it. servicenow - the smarter way to workflow. but in my mind i'm still 25. that's why i take osteo bi-flex, to keep me moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex - now in triple strength plus magnesium. welcome back to "squawk alley. lately we've been talking a lot about google cloud ceo thomas kurian it's rare google as underdog story he's leading there in the cloud. i sat down with him in san francisco yesterday in a cnbc exclusive talking about the company's massive growth competition with amazon and microsoft, and the upswing we're seeing in cloud investment overall, why that's the future of technology. take a listen. >> a lot of people are seeing cloud as the future of technology and so they believe that these companies will grow significantly in addition to the hyper ka hyperscalers and one of the strategies we at google adopted is recognizing platforms in the end that are differentiated not just by the cloud provider solution but an ecosystem. an example is snowflake, a partner of ours that delivers solutions to customers. >> what does that doed to m&a environment? snowflake is a special case maybe, but if you're looking and have been to snatch up key pieces in this environment, is it getting too expensive >> no, it's not. >> does that mean you will keep shopping >> we have not said if we are or not. we made a number of smaller acquisitions ee last affile, app sheet, a number of them we always wish to pick up acquisitions that complement our product strategy and strengthen it and wherever the right one we find, we may choose to acquire. >> sounds to me like he's going to keep shopping specifically there. i was talking about how snowflake's valuation went from $4 biological to $12 billion plus in less than a year and a half and i also asked why google doesn't disclose margins like amazon and microsoft, that's what he said. >> that's a question for sundar. >> you're open to it >> i'm not saying we won't disclose margins but just saying we will get towards it in a sequence of months. >> that's cloud marginesque ly, guys it's interesting, when thomas kurian, i heard the announcement he's going to google, i thought this guy is from oracle. that will be potentially a culture clash. wonder how it will go? it's been interesting to see how much google's culture moved closer to. they're becoming a lot more enterprise-like as they mature some people at google might not like it or be comfortable in their core business, but if they're going to succeed in cloud, it's absolutely necessary. >> it's interesting to hear you see that and the culture and how it's played out and conflicts in other parts of the business in recent years. >> yes you would be also very pleased to know we talked about military contracts. >> oh, yes >> how microsoft and amazon have been vocal about saying, yes, we're going to work with the u.s. government ones thomas kurian, same. he's absolutely going to work -- >> he's on board >> very much on board with that enterprise and cloud direction. >> interesting. >> we talked about a.i. and types of work google is not going to do in china he said, yes, there are those types of work. i think we'll put the whole thing up online. probably do that it was a rich conversation always fun to talk to thomas kurian talked to him a couple of times this year already. he's great. >> blowing up by name at least everybody is talking about him to a large degree. still to come akamai shares sutting a boost after strong relts. dow is up 185. stay with us and i'll to know about medicare. first, it doesn't pay for everything. say this pizza... 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good morning. >> good morning. >> this story is kind of following the trajectory of other conversations we've had, particularly when it comes to ott, over-the-top streaming. things like disney plus, et cetera, that are affecting the business for you guys. as we look out into 2020 with more streaming launches, with olympics coming from the parent of this network as well, how much of that is baked into expectations already, or how much upside do we think there might be for that? >> it's a little of both we are excited about the potential for traffic growth in 2020 as you mentioned there's a lot of big events. also the u.s. election major streaming launches, and we're a big part of all of those. so that's factored into our guidance but there's potential for upside as well it should be an exciting year for akamai. >> how much of a difference is there between streaming services and then some technology that runs over the network like gaming we've got a couple big consul launches at the end of the year from sony and microsoft. online is a big part of their stories. google and microsoft and others working on more gaming capabilities through the browser. is that just a blip compared to ott or potentially significant >> no, that's significant as well the two big drivers of traffic on the internet are video or ott, and the software downloads and gaming downloads they drive a ton of traffic as well the majority, little more than half of our traffic is video, but close second is the software and gaming downloads. >> the security story for you guys as well even in election season, we saw what happened in iowa when it came to people using personal phones for an app meant for voting how much is security going to continue to be part of the story in some of these both applications that coming to the network in 5g and also some of the streaming that we are seeing what's the opportunity there since that's been growing, what, 29% year over year for you guys in the latest quarter? >> yes, we're seeing fabulous growth in our security business. we're well on a path to achieving more than a billion dollars in 2020 for our security products many we're bringing new products to market to protect enterprise applications some of the kinds of things you mentioned that should drive further growth i think security is a problem across the board big media is a big target for the hackers. obviously banks, commercial transactions of all kinds are targets, personal information. and now you have the elections the real worry there is that denial of service attacks or misinformation, corruption of data, could help suppress votes or in some way alter the outcome of the elections, which is very concerning concept >> yeah, jon just mentioned the 29% year-on-year growth for cloud security, certainly it's a business continuing to ramp up for you. whether it's the start of the year with worries about cyber attacks coming from iran amid heightened tensions there, just this week the u.s. charging chinese military officials in connection with a 2017 equifax hack as we have all of these events play out, are they continuing to drive more demand? do they translate to more business for your services >> yes, absolutely the attack landscape is moving very quickly it's very dangerous. new kinds of attacks out there and a lot of those companies turn to akamai because we're in a unique position to defend them it makes a big difference for the growth of our security business >> tom leighton, ceo of akamai, with those shares up better than 3% thanks for being with us. >> thank you european markets set to close in just a few moments. seema mody has the breakdown overseas. >> the german dax hitting a multi week high. some of have to do with earnings as well. 4q results beat the sweep but 50% of the stores in china are closed due to the coronavirus and it's seeing a serious drop in traffic and sale in the last ten days in response the luxury parent of gucci e. saint laurent, among other brands, are postponing production in china. and now they're expecting a bullish second half of the year, saying the supply will continue. and this comes after italian realtor montclair held its notes regarding the coronavirus. these stocks performed well in the past month but montclair held up relatively well compared to its peers. >> seema, thank you very much. let's go to sue herera hello, everybody here's what's happening this hour the u.n. human rights department releasing a list of more than 100 couples that operate in the west bank settlements. it's drawn fierce reactions from those in the area. u.s. troops were attacked in northeast syria after coming under small arms fire. syria news agencies reported one person was killed and another one in the incident. residents of a pennsylvania neighborhood are being forced to evacuate as the land slide threatens the only road in or out of that community. local officials say the problems started last week when the streets started to buckle with parts of the hill crumbling down the roadside the nfl reinstated myles garrett, two days after the cleveland brown defensive end met with nfl commissioner roger goodell. he was suspended indefinitely after tearing the helmet off the head of another player and hitting the pittsburgh quarterback in the head with it. that's the news update morgan >> sue, thank you. when we return, shares of lyft getting crushed post earnings down 8 1/2%. n'gonyerults after the break dot awhe. ndary terrain in tell, the unparalleled landscape of park city, or the famed peaks of whistler, you've faced the hassle of lugging your gear through the airport. with ship skis, you're just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. with unrivaled pricing, real time tracking ship skis delivers, hassle free. ship ahead and go catch those first tracks on fresh snow. ship skis. your skis. delivered. so w>>i'm searching for info on options 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increasing regulatory and antitrust scrutiny yesterday they were called on to turn over decades of acquisition information. and last hour we spoke with amazon's pr chief, former white house secretary jay carney about the new scrutiny here's what he told us -- >> we cooperate with any government entity that wants to talk to us and ask us questions and investigate it if they so desire with whole foods we're about 3% or 4% of grocery many, many of the chains you know, big chains you know, are significantly bigger than we are. the competition matter, i don't see the argument we're somehow anti-competitive >> joanna stern of "the wall street journal" and eli pa tell of the verge join us now double trouble as i like to call it i want to get your response from jay carney given we are seeing the ramped-up scrutiny now. >> yes, it's interesting whole foods, i didn't get to hear the question that was the response to. but whole foods is the biggest commerce ee tailor in the world. yes, they own a smaller supermarket. that's my response >> we asked about the ftc's request for prior acquisitions, whether this was a show request or companies will have to do real work in complying and he pointed right to the buildup ahead of the acquisition, would amazon basically become grocery in america? and his point is we're not anything wrong with that >> jay's on a war path lately. he's out there defending amazon. most big grocery stores i don't think have a gigantic cloud computing business throwing profits at them to operate at lower margins. this is the issue with amazon. and many of the stores are smaller but competitors, who might be bigger, do not have the availability to basically play pricing games that walk right up to the line and that is increasing the scrutiny. >> so the ply wheel makes them different? >> yes it's funny there was a letter amazon was asked to stop the profit of cross culture. amazon for years basically made no profits they built that engine. >> walmart has no trouble lowering prices. walmart has super-low prices but they get treated by the street as a company who has slim margins in a lot of areas. amazon can choose not to make money but still get an amazing multiple, which is currency for them they're a tech innovator instead of low-margin grocer and that matters, right? >> yes ultimately the convention wisdom is when amazon wants to turn it on, they will turn it on why do they have the ability they locked up the market. if amazon wants to sell you no brand iphone charging cables at a sky-high price, you might never cross shop and they have that margin at well. >> and also the concerns about the tax rate amazon plays. take a look at that. >> we just follow the law. if people have an issue with the tax rate that any company pays, their issue is with tax code, and not with the company. >> we covered a lot of ground in that interview, joanna. >> what was the question there >> it was about the fact that they have been under an incredible amount of scrutiny from lawmakers and others about the very low tax rate they paid historically over the years. also talked about hq2 and what we've seen play out, especially with the whole incentives debate here in new york city. which we know ultimately meant they pulled out of queens. >> yes, and also talked about the loss of the contract with the pentagon. >> oh, yeah. >> and the president abuse of power is what he's alleged when it comes to procurement. >> i think you jay's been the head of pr for a long time he's very vocal lately, obviously coming on your air they don't have a lot of friends, right i think they need to make their own narrative very forcefully. hey, we're actually a good employer hey, we pay the rate bernie sanders wants us people to pay, even though we might not like anything else we do. we will pay more taxes if we have to but not voluntarily. >> customer satisfaction of amazon product is pretty high. the cities where they are a big employer, i have to imagine they're popular. is that a fool's errand? is that a misguided notion >> sure, but i think all of this is about amazon's power and tech company's power. looking ahead to 2020, i was thinking about it this morning, is bezos more of a political pawn than all of this than let's say zuckerberg when we're looking at the future and the tech company's cost -- >> here's where carney differed. he said we're not taking your personal thoughts and monetizing them for free. >> your data. >> we're packaging goods and delivering them to your door. >> that's a great target. >> it's a lot easier no first amendment issue wrapped up in that we think about this all the time facebook takes a lot of heat from people because it doesn't have a great story about the utility it provides. public serving and friends amazon, the amount of utility they provide is a huge buffer of public opinion people like amazon because they push the button, think the price is low, whether or not it is, and things show up the next day. and that further answers teenagers across america and wh the utility offer and that might buffer the political stuff but the ftc, doj, heavily focused on tech companies. west coast companies but definitely companies. >> and the flip side of that is part of the reason is the company under scrutiny like other big companies, yes, maybe they're not quote/unquote monetizing your data but they have vast swabs to work off and they can compete against customers in certain marketplaces. >> and it comes back to what eli mentioned before, aws. this is a company that runs the internet in some ways. they're behind pretty much everything we use. turning back to one of the day's biggest laggers, lyft. those shares down about 8% shares tumbling after the company posted a wider net loss. many maintained its profitability target at q4 2021 after ride share uber moved the targets up to the end of the year stocks moving pretty aggressively on this today i think it goes back to -- we're having this debate earlier at the beginning of the hour about pure play ride-share versus conglomerate model at uber and now they have businesses they're looking to cross pollinate more aggressively. >> yes, i think lyft is the in the race to acquire customers. their chase promotion is a smart promotion. i see people talking about it. they completely dropped uber because they have the chase sapphire card. they want the points that's working costs going up, revenue going up losses going up as well. that is a kbbad cycle they haveo break. i think self-driving efforts bear some mention. that's the way they will eventually cut their cost. they are saying they're making progress there but that's a long-term payoff to turn the switch to profitability, versus what uber is doing against costs. >> to be fair the stock down just 9% and still friday's levels arguably before we got uber's earnings that had people hopeful lyft would have to say the same nice things about profit targets that uber sediment so maybe the story hasn't changed that much even in the stock. maybe this is just about the price war betwee yeah, i think l some encouragement about how they plan to get to that profitable mark. they talk about eliminating some of the extras, eliminating some of the perks of getting people over the big question is how that will affect riders how will it affect when they start to up probably some of those prices they gave a lot of evidence in the earnings call towards that they said nobody at the company takes first class. >> we played that bite this morning. >> everyone is really -- i'm encouraged by that i look forward to sitting next to logan green in coach. logan, you can buy me a drink. >> new framework for ceos. >> that's what i'm thinking. >> they've got the delta partnership. >> do they >> he's got to have status on delta. >> not flying economy there. he didn't say economy plus. >> we will talk about t-mobile/sprint in a second. but the take is on ride-sharing, deepest discounts in the past. wireless serves, deepest discount in the past are we getting to a scale where people will pay more >> whenever you see a duopoly, you see them signal it's time to raise prices and they follow each other up the chain. that's classically what at&t and verizon have done. that's t-mobile's entire argument uber and lyft of duopoly i feel bad, juno, you didn't make it. it was a great ride. uber and lyft are the duopoly and prices will go up and up. >> and we will all just buy scooters what are your take on t-mobile and sprint >> you've got the guy here to talk about that. >> before we came on joanna said she was ready to rant about 5g. >> the time we have. >> just 5,000 words a minute this decision i think is very surprising to let it go through. 4-3 mergers in wireless have typically only led to higher prices and worse service canada only has three carriers skie sky-high prices. the judge in this case brought the hype that sprint is a bad, mismanaged company and t-mobile is a great company. >> that's hype that sprint is a bad mismanaged company >> i don't think -- >> yeah, that's true. >> the new york stock exchange, what do you do if the company made bad calls and in a bad financial situation? yes, somebody propped it up but some things propped up a lot of stuff and we all understand eventually fall down. >> it is wild to me soft ankle makes bigger belts on hamburger-flipping profits or building schools than wireless services. the easier business to be in in some ways. great, sprint was bad. t-mobile was almost acquired by at&t, they flipped the management and became t-mobile there's a playbook that exists whether you can get cash in spectrum for sprint, open question the judge bought the hype of john seaver, incoming ceo. they will keep running t-mobile as a challenger brand, even when they get as big as verizon. >> we regret to inform you they died of embarrassment that we will lose the race to 5g. >> we just don't know what 5g is going to do yet. i spoketo samsung this week, who said they have to put bigger batteries in phones for 5g. >> charlie irving was here and called a maverick 15 times in the decision whether they will move forward to use the technology they're betting on, software, all of this stuff, none of that is proven there are no vendors for it. are they going to do it? that's an open question. if they create this fourth competitor, maybe this all works out but no one knows if they do it. >> let's bring it full circle, if they do are they going to do it with a company like amazon, as we're getting reports of that, or apple or any company that would like to get into the wireless business or other three -- there were four but now three. >> there were three competitors and kind of someone limping alongside saying i'm still in here. >> we're able to dunk on sprint now but the court ruled sprint is back. >> the market has been dumping on that for a long time. kind of like the guy in the wheelbarrow in "monty python's holy grail." i'm not dead yet. >> i heard from a couple of readers who are sad about this because they like their sprint service and are wondering what will happen. there are sprint fans out there. hello to all of the sprint fans. they don't pay anything, but they don't get any service and they actually have good mid-band 5g. >> and that's what t-mobile wants. >> we will leave it for now. >> thank you for the "monty python" reference. >> and coming up, more "squawk alley. after that segment, how could you? and watch any time on the cnbc app. dow is up 170. when you look at the critical issues facing our world, what do you see? we see breakthrough medicines getting to patients in record time. we see harnessing natural gas unleashing the promise of clean energy. we see engineers simulating the future to improve today. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved. but we're also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. from the day you're born we never stop taking care of you. i'm scott wapner here's what's coming up on "the halftime report. is this market as bulletproof as it seems what can derail the record run th are the stocks a gamble because of the coronavirus spreading. and you heard about the high-flying f.a.n.g.s but other stocks hitting big highs today we will go through the list straight ahead looking forward in about ten minutes away. >> looking forward to it too, scott. thanks coming up, first it was fortnite and now league of legends. bringing ee sports to high schools and colleges around the country and they join us next. stay with us we see a billion more people breathing free. we see access to fresh food being the global norm, not the exception. we see homes staying cooler, without the planet getting warmer. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved. a new kind of investor with an app that's changing the way we do money. download robinhood now. welcome back announcing a new partnership today with riot games, becoming the exclusive platform for league of legends games and championships here in the u.s., following a similar partnership with epic games and fortnight a few weeks ago. founder and ceo, delane parnell joins us now good to see you again. >> good to see you again, jon. >> tell me how your vision is progressing now and then we'll get into some controversy. the vision for what e-sports are going to be in high school. >> sure, yeah. as far as it relates to our relationship with the games, fortnight operates outside of our partnership with the nfhs and the individual state associations it operates as a national club league within our club products, smythe, another game we offer nationally as the company continues to grow, today we have three product products, varsity product, which supports league of legends and rocket league and it's in partnership with the nfhs and 18 state associations we also have a club product, which supports rocket league, league of legends, fortnight and smyte nationally in states we're notpartnered with and smyte an fortnight specifically nationally. >> about how many students how many students nationwide at this point do you have, how many do you think you can get to? >> yeah. so we're not at a place where we're ready to release our numbers. we certainly have a lot of students in a lot of schools participating in all of our products we're super excited about the growth that we've had. and we want to continue to offer an incredible experience for amateur e-sports. >> what you're referring to for viewers who aren't caught up on all of this are some controversy over just you guys offering f t fortnite even in club play because it's associated with schools. some people at the school athletic level are concerned, hey, this is a game that's a shooter, even though the violence is cartoonish, we're uncomfortable with that being included this is sort of a new twist on the whole video games and violence argument. what's the way that you think investors and the broader public should be thinking about that? >> yeah, no, that's a great question, jon. i think, you know, ultimately, kids are playing -- certainly, we understand, first off, the sensitivity of the issue and our primary focus and commitment is to making sure that kids are able to play games they enjoy in a structured environment with an adult who can teach them about both the mental and technical aspect of the game and help them develop as individuals and put them in places where they can exceed in life we, you know -- our relationship as fortnite specifically, that partnership again is outside of our relationship with the nfhs, the individual state associations, so kids are able to ip inhat directly they don't need to be associated with a school to do so as it relates to the individual school levels, schools and districts essentially have the ability to build a team within their e-sports program if they want that's very similar to other sport sports sachlt a state doesn't offer lacrosse. >> soccer versus -- yeah. >> but not even outside of the school environment to go as far as to say club but if a state does not sanction lacrosse, a school or district can still participate in it. they just won't participate for a state championship so as it relates to fortnite, schools and districts have that optionality. however we've been explicitly clear since the start and announcement of that partnership that that relates outside the relationship with the nfhs and individual state associations and kids in schools who want to participate can, and it's an option the other thing i want to say, too, if i can add one more thing, jon. >> yeah. i don't know how much time we've got. quickly, if you can. >> i think the biggest -- one of the most positive things about play vs and the environment we're able to create is that kids are playing video games they care about, fortnite or otherwise, at home, with strangers and friends withno parental or adult supervision. we're able to put them in an environment with an adult or multiple adults who act as their coaches and help them participate in something that they enjoy with a community of friends and peers and it is certainly a safer environment than an unstructured, unsupervised environment you know, we're certainly excited about that and we've seen massive impact on kids, whether it be a decrease in behavioral issues, an increase in standardized test schools, improvement in gpas. and, you know, we think that the impact we're able to have by building the structured environment by kids who want to participate in e-sports is no different than the impact than kids who play football, basketball, soccer or lacrosse. >> now i'm out of time i'm not going to get my last question. >> sorry, jon. >> i wanted to ask you about funding. mepefully we'll get to that next ti delane parnell from playvs who says our bank isn't tech enough? everyone, look at your phones. the design thinking, the digital engineering, security, blockchain, and we will be first to market! yes. when we do we launch? unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks. and when you open a new brokerage account, your cash is automatically invested at a great rate. that's why fidelity leads the industry in value while our competition continues to talk. ♪ talk, talk while our competition continues to talk. when yowhat do you see?itical issues facing our world, we see breakthrough medicines getting to patients in record time. we see harnessing natural gas unleashing the promise of clean energy. we see engineers simulating the future to improve today. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved. in case you missed it, confirming earlier this week, n nasa target launch date may 7th. it still puts spacex on track to send humans to soil in space since 2011 in a move that would beat boeing for those bragging rights, cnbc also breaking the news this week that spacex has hired nasa's former chief bill gerstenmaier as a consultant, widely considered one of the most renowned experts in this field so a big hire and just continues to make spacex a company to watch with with some big milestones ahead. >> all right let's get to the judge >> i'm scott wapner, front and center this hour hitting new highs once again as it seems nothing at all can derail this rally. but is that really the case? it is 12:00 noon and this is "the halftime report." >> announcer: new record highs the one factor that can derail the rally. the trillion dollar maga club. microsoft, apple, google and amazon should you keep adding to your positions? plus the other names keeping the market great place your bets, wynn and las vegas sand