Lets milk this and go back and forth. We dont even finish each others sent answers it will be awesome this is the first time you are back at the nasdaq in a while. I go away and then im quarantined. I went away in july and finally got back here. I went away again and came back and been quarantined another two weeks. You got to start going away whachlt are you doing . I wish these states would drop off there is 57 states on the list no there are a lot of states on the list not all states i was in a county that was like an island, nobody was there i am glad to be back there is a big krispy kreme thing. Most lights ever i was looking and i was thinking about you. I got to stop thinking about you when im not at work thats not what i want in my life you may draw me back to time square but so will crispy cream. We were talking about this the last couple of weeks i havent been in there in ea while. He said there is no one around nobody on the streets. Is that the case there is people here. A few. It is not like time square when you say time square, it is supposed to be like new years eve. Like everything, are people flying on airplanes . There are people but it is definitely down 80 , 90 in terms of the traffic there but we do have a beautiful American Flag all the time. Im looking now to see if we are banterring too much. Whose read is this you, andrew . It is but you can take it go ahead. See, in my studio, i have access to all of this information the dow looks like it will be down triple digits nasdaq looking to be off about 87 points. The treasury yields real quick and ill kick it over. Looking at the 10year note at. 679 at this point. Youve got the tiktok news. Overnight saying oracles proposal hes not ready to sign off on the deal. He said hes not in favor of the majority in ownership. The president says hell get a support. Well have more on this story at the bottom of the hour the u. S. Could start distributing a Covid Vaccine that contradicts earlier remarks. Those remarks were made to the senate those remarks were expected in limited quantities, joe . Saw that. It is a little surreal well see what happens it is being politicized both sides. One side before or after the election the other side doesnt want it watching the president explain how some of the people at the cdc and others explained i think he was confused. It is a hard case. We are getting innurred to it. I think well be talking about the vaccine today and the prospects for it your own feelings about getting it pro or nervous im totally ready id be first in line im ready right now. Im ready for my immune system i know there could be some potential side effects id certainly rather have a little spike protein than the virus itself i havent had an i had an Antibody Test a month or so ago after someone in my family months ago, didnt know she had it at all but had antibodies that would be like winning the lottery, right i have fantasies that maybe when i didnt feel exactly right, one of those days, maybe i had the antibodies wouldnt you get that test before the vaccine wouldnt you get an antigen or Antibody Test first id likely take something id like to see which one is approved first i want to understand it. I want to understand the dynamics of how it works and what the possible ramifications may be when ive talked to various doctors we get the opportunity to talk to this is a guy who gets those iphone upgrades. You wait a couple of weeks for the iphone upgrade yes i wait a couple of weeks on the Software Upgrade and ill wait a couple of weeks on this and proudly wear the mask in the meantime do you wear your mask around alone . No. Walking outside i see people Wearing Masks when they are alone if i was going to town, yes, i would have one on. Not in your car not in my own car if i go into an establishment, i wear a mask, when i come out to the parking lot, i take my mask off. Yes we are in agreement. The pandemic is the biggest thing thats happened in the entire planet. Some of the worlds most powerful Oil Producing nations will meet virtually to review the policy the opec plus meeting will focus on slash demand forecast and the International Energy agency. Saudi arabia and others will get others to stick to the output cuts isnt cheating and opec go hand in hand . Maybe even more so, youve got energy that has been top of the leadership pack for sectors. I think you had an inventory draw it got lost in all the fed stuff. What is most interesting is that the u. S. Is losing its crown as the Biggest Oil Producer we lost it because of covid. Not clear if we are going to get it back. Not clear on this you are talking about snowflake. Can either of you give me a 30second synopis of hadoop on google, there is a 10hour quick course im thinking about doing it. Maybe not. You know what im talking about. Who at berkshire took the course this is not it somehow leap frogs the Technology Well have a lot, lot more on snowflake and talk about the red hot public debut its market cap is 70 billion. An incredible story. Down about 3 premarket well have many updates throughout the morning as we head to break, lets look at shares of nikola and shares pop up the analyst defended the company after short seller remarks were overweight squawk box will be right back. Announcer todays big number, 820 million thats how much Berkshire Hathaway made yesterday on its investment in snowflake. The Data Cloud Company closed up e 2 from its ipo price. Th12th stock this year to more than double in its first trading day. You can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save up to 400 a year on your wireless bill. With the carrier rated 1 in customer satisfaction. Call, click, or visit your local xfinity store today. Welcome back to squawk box this morning a blizzard hitting wall street of sorts yesterday snowflake shares more than doubled making it the Biggest Software ipo ever. Blizzard is usually a bad thing. In this case, it is a good thing. You can debate that. Thats right and blizzards also dont normally come in september but it is 2020 the biggest ipo of the year and biggest firstday jump in about two decades. Snowfla snowflake pricing 41 above the range. By the end of the day, soared 112 giving that company a 71 billion market cap the payoff was big on paper for early investors. Sloothman sitting on shares of 4 billion and another for 11 billion stake and Berkshire Hathaway more than doubled its monday a word for investors whether they can sustain the momentum already the most Expensive Software company to debut. Yesterday a easy revenue more than doubled shares are already lower premarket today lower 3. 5 . Just an amazing move with fed liquidity. Saying he thinks it is Portfolio Managers who are overweight. Apple and other names are desperate to the story when is the last time you shared the story . I think it was last year what companies could be prepping to go public. It wasnt a wellknown company one of these that hits to what you were saying earlier. Youve got this tremendous concentration of Tech Companies in the s p 500 right now more than youve seen in decades. Portfolio managers are looking beyond those names this company came out. They have tremendous topline growth almost three times for 2019 still unprofitable theyve spent more on sales and marketing. People see this as a skarsity play of top line growth. Do we know how and why berkshire got such a large piece of this . It is so unlike them you are right a lot of reporters are trying to figure out who is behind this. Is it buffett him self interestingly, they took a 250 Million Private Placement alongside salesforce and also participated in 4 million shares in a secondary offering with the ipo all of that took place at the ipo price, 245, so they would have paid double amazing. Nice day for them. Amazing to see them participate in these prices, these valuations lets talk more with an analyst. Managing partner, can you start by telling people why snowflake is such an asset in value here over the last decade, weve heard so much about this trend towards big data the next evolution is really big data management. The point is to create Intelligence Software and for users. It is the precursor for ai is it is that bridge. They help companies more intelligently in the cloud. We were talking about it. Who are the rivals in this space . How much of a lead does it have . When i think about their competition, some of the biggest are actually the companies they work with. Aws, google, microsoft with azure. Those are the ones i would be the most focused on. Others in themarket that are the same game, data bricks, which is private still if i were an investor in snowflake, i would be focused more on those bigcloud providers instead of shutting those others down the market we know they like to go down the market streak. They would be a candidate for that what is the valuation this morning, what are we talking about in terms of the multiple does it generate earnings . It doesnt generate earnings yet. In our rough estimate. It is somewhere around 70 times next years revenue. If you make it the time of the ipo, that is one of the most Expensive Companies in the software market. We are cautious here the valuation is rich. There is a restrictive float in an ipo these moves can be exaggerated there is not enough sellers to meet the demand in the market. Well see more volatility in the name and investors might get more chance at the market valuation. I read a quote that someone said the pandemic accelerated this Cloud Adoption or migration by 10 years. We are hearing everything. The pandemic, stayathome it is ccelerated is that true and why do you agree with that . 10 years feels aggressive to me i would believe maybe a year or two. Weve seen production of productivity software. Much of that managed in the cloud. When i think about the opportunity managed in the cloud. Working beyond the work at home trend. I think it is more like a year or two that is be egg accelerated. This doesnt mean the trend is real the real longterm trend i dont think it has been accelerated that quickly when people talk to you about the 70 times revenue name. To use the imperfect analogy, the last Ipo Berkshire bought into was ford in the 1950s as crazy as it might sound, i think it does. When we think about the trend towards ai and the amount of data that will go into creating Intelligent Software applications i think youll see the necessity for applications like snowflake increase by 10 x over the next 10 years i think there is a huge growth opportunity. A lot of that is priced in and people realized that there is a real market, giant market a decade out. If i were an investor. We are very long term focused. You have to be patient i think there is a real market behind it. Fascinating we appreciate it so, guys, i was just thinking about this. Thinking about jeff bezos. This was founded like seven or eight years ago and on the notion, we are going to compete with amazon, aws they said nobody can compete they sold books online eight years ago, already the leadi leading. You have a guy in south africa that was like, hey, can i use some of your extra server space and then thinking, we should do this for everybody i wasnt thinking about the cloud maybe opening up my commador to store something. Coming up, key details for airlines and the ceo from moderna with an update on the vaccine and the trials thats at 7 00 a. M. As we head to break a look at the biggest premarket declines in the s p 500. [ engines revving ] its amazing to see them in the wild like th shhh. For those who were born to ride, theres progressive. Welcome back we are now two weeks away from a key deadline federal aid linked provision on job cuts. You are not allowed to do that we could see mass layoffs on october 1. Airlines and labor unions are approving calls. Airlines could furlough or layoff more than 30,000 people when the current term expires. Another round could be approved. Dont get me started on this could be another 25 billion it is possible Share Holders in the airlines could benefit from this you are trying to paid me you want to support corona capitalism, go with god. But im not going to do it everyone will say airlines are essential. It has nothing to do with being essential. If there is a private market, let the private market do it if the taxpayer is going to pay for it, there should be again win benefit for the taxpayer we need the money, we are willing to give the Share Holders some of that how can you do that . You started with, you know how i feel so im not going to be bated into this. Did you see that people are messaging me saying oh, my god. Hook, line and sinker. It is better when you argue with guests than with me. It is a good thing, andrew. You got to stand up for what you believe in i love it. For some reason you love long trips and the front of the plane. Airlines it is about fairness for the share holder and fairness for the taxpayer but we are bailing everyone out. Why pick on the taxpayer it is your money. I just drove 13 hours i drove down 13 hours and back 13 hours i want other people to continue to own Airline Stocks and fund the industry and keep it viable. Keep all the jobs, keep all the flights. I like the roots and the convenience. I didnt know you have become a socialist. Ive been with you 11 years some of my stuff is rubbing off on you this whole corporate cronyism and socialism efforts, i didnt know it was reverse. Coming back, the fed pledges to keep rates low for years well give you some portfolio picks as well. A look at the s p 500 winners and losers as business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will. You can rely on the people and the network of at t. To help keep your business connected. When it comes to parenting, youre a pro. You know reflexes are key. You know your kid doesnt step around puddles. And wet shoes, not cool. You know what else isnt cool . Those cheap leaky diapers. Because with luvs, you get the prolevel leak protection youre looking for. Luvs, parent like a pro. Good morning welcome back to squawk box. Dow off about 212 points. Looking to open off about 29 points joe. Signaling no rate hikes with the conference yesterday afternoon. We said from the beginning we would try to provide support and stability in relief in the acute phase and support the expansion it is here and well along. Ahead of the Investment Group also tasked with coming up with all the duration and fixed income i read that and got nervous you got a lot developed. Because it was the fed we are trying to interpret, i want to go to you. Saying we are staying at zero for years was good what you said might have gotten more clarity and how the Balance Sheet had gone off jackson hole set up a longterm framework. They wont tighten because they are too low. The meeting statement that goes higher and is real ieszed. If there is any disappointment, they didnt help with the outcome id call it the modest disappointment they should probably start with whisperings that the fed has good objectives. How would they get there was there anything that disappointed you, what is not to like about that yield . I like that as an Equity Investor and managing bond portfolio, i feel your pain. It is really hard to find a yield right now. My clients, 60 are baby boomers. They need income you start being loo looking at these, it is a great world to be invested in so much cheaper than your Blue Chip Companies the things that have to do with the reopening of this economy. What did you think of snowflake, ryan . Outrageous, 100 one day. Sounds like a lot of College Students in their dorms on zoom that need something to do. I have to think it is pure speculation. People justifying that these Amazing Companies at the forefront of things like this, that they grow into their valuation. They are seen the same way years ago. We dont need to mention any names but look at what has happened in valuation. No longer below. No longer 50 to 60 billion some are multiple of that now. You have to buy them now or you are never going to get them. 100 years trunkated. Are you going to short it you can make your clients 100 return are you ready to step up and do that or are you just talking about it after looking at tesla and seeing where they are right now, im not that bold. A short squeeze is always around the corner the end of the day, it will look bad. This is like 992000 you are seeing the street justifying that has to be a bad sign from where im standing im not confident enough to short the market i wish i was that good lets say everything is up out over its skis. That is just snowflake lets say those are overvalued in equities. Would that be good for fixed income they would not be exposed. When you have the 10year treasury at 67 basis points. I think ryan mentioned those discounting profits. Hasnt been lower. That is propelling risk assets stocks, bonds, sharply higher. From that sense, all of these markets have been linked discount rates are all below one. It makes sense that profits are now in bigger prices than what we pay for today the fed wants that and is trying to support those positions i think so long as the economy recovers and we get a vaccination, the optimism in the stock market doesnt need to end badly. Ultimately, well have disappointment it is not clear to me, stock market is taken off. There are pockets of excess in tech there are also parts of the market that are down there are cross sectors. As far as the s p is concerned, it always has its place. Ryan, is that a quarantine thing or are you going to a club tonight