Welcome to squawk alley. The at Home Technology story continues to deliver big you can see there sonos up 26 this morning after strong earnings want to talk to the ceo in a minute and nvidia also delivered solid results on pc and Data Center Demand beating on both earnings and revenue. Sales up 57 from the same period last year though its lower this morning on modest guidance second biggest gainer on the s p 500 year to date though. Julia, its really interesting how, you know, stay at home stocks maybe suffering a bit but some of the Underlying Technology driving some of that action doing quite well well, jon, one stay at home stock that is not suffering today is roku. That stock up over 6 . Driven in part by the circulation of reports saying that roku could be near a deal with at t to have an agreement for hbo max to be included on roku which would be a big deal and speaking of hbo max, i have to mention that news that wonder woman 1984, the big wonder woman sequel that was scheduled for Theatrical Release on Christmas Day is now also going to be on hbo max. Very untraditional and speaking to the fact that there are so many challenges now, carl, for the Movie Theater industry and a big push for things to gone o streaming whgo on streaming when the theaters close. I was thinking about the warner movie with wonder woman, at announcement you brought us with universal and cinemark and talking about all streaming. There is very little discussion of traditional ways of getting content through theaters to consumers. Not through Movie Theaters. Not a lot of live music going on the but, boy, people are streaming at home and so lets get to sonos we just mentioned the shares skyrocketsing on better than expected q4 results revenue jumped 16 on strong in Home Entertainment trends during the pandemic sonos Ceo Patrick Spence joins us now in a first on cnbc interview. Patrick, underneath the strong results you also did quite well on direct to consumer relationships. The that percentage moving, what, up into the 20s even with this surge yeah. You got it, jon. So its actually 21 of our sales over the past year thats up from 12 the year before so 84 year over year growth you know, our system really lends itself to having that direct relationship with the customer you know, people are engaging with our app every single day. And so its been a really one of those things where weve seen, you know, a few years worth of transformation over the course of the last 12 months. But customers are definitely saying that they are excited to engage with sonos directly and excited to add sonos to their home. If i were an investor, i would be concerned about google, amazon, apple. All of which have streaming speaker products apples just come out with the home pod mini at 99 you know, all of those direct kpep competito competitors to you but also content providers on your platform. What do you say about the growth that youre experiencing in the face of that competition you know, jon, we hit an Inflection Point in this quarter. I keep saying that because, you know, weve been that for 15 years. We have grown and been successful through the great recession, through all of the early days of audio and people saying, you know, bose or sony is going to take you out big tech is in the category. Now the pandemic really, you see the power of our model. Its unlike any other. You know, were tractiattractinw customers and then add more products to their system over time it gets better we see higher nps from customers. So we have a really compelling power in our Business Model in the system that benefits both customers and now investors are really seeing that power too patrick, we are a sonos family have sonos speakers all over my house. If you think theres been any of that phenomenon of the pull forward. When you look at your growth this past quarter and then at your guidance for next year, do you have the sense that a lot of this growth would have come in the Fourth Quarter or in the First Quarter or Second Quarter of next year if we were not in this pandemic situation and as people start to get out and about, theyll be investing less in their homes i think this is the power of the sonos model and Business Model where, you know, we had last year 41 of the sales actually went through existing customers coming back and adding in their sonos plus, we had our 15th year of more than 20 growth in our new homes. And so we consistently shown whether its pandemic or not that were growing the number of use. Were growing customer thats are coming back to buy more. And the other thing is the product revenue. We dont share that publicly we believe we have a strong system that whether were locked down or not, were going to have a successful year. Patrick, jon mentioned a number of the tech giants that are friends and competitors. Do you think some of the new products that they have in the market this Holiday Season could prove more of a threat than they have in the past you know, its been six years that weve been, you know, seeing big tech enter the category and try to do what we do we havent seen anything in the short term through the introductions of the new products we continue to innovate and execute and stayfocused on you see reflected in our guidance really a continued belief that our unique Business Model, our unique system base model is something that consumers are going to continue to enjoy and now investors are actually seeing the benefits of. I know you were asked about holidayen ott cal holiday on the call. We were talking about the shipping capacity with the upss and fedexs of the world. How tight might it be come christmas . Its funny. Last quarter we were talking about, you know, the huge amount of demand and how do you deal with that from a supply perspective . The deem did an amazing job with that you talk about the container shortages or poor congestion but our team is doing an incredible job we deliver the kind of growth that we have so there are challenges that are industry wide. But our team is doing a great job working around those you know, customers will see from time to time delays in getting product. It isnt right up to the level that we hold ourselves to but it is a very Big Christmas and most people will get the products patrick, Business Model question for you why doesnt sonos have a subscription model to make it easier for, you know, the loyal customers to keep up with the latest equipment its a big lift per unit but, you know, you seem to get some software benefit. Were talking about this just a few months ago so why not you know, we just started our first subscription service, jon, last week with sonos radio hd. Were starting to get into that world. I think youre right that people are looking at bundles and affordability and some of those things now our products, you know, they start at 179. If you look at other products, 99. So its a pretty be attractive price point to get into a Premium Experience from sonos. Subscription services are part of the future. Were excited about our first one. We have more plan in the future. Im talking hardware subscription is that something we should look for perhaps in the future . You know, weve experimented with that. I do think that is something that well experiment with more in the future and see if that really resonates with customers for sure all right well look forward to that meanwhile, were looking autoup the stock chart. Patrick spence, ceo of sonos, thanks for being with us thanks, jon speaking of that busy Holiday Season, still to come, how macys and other retailers are preparing for Holiday Shopping which is just a week away well take a closer look after the break. Dont go away. You can go your own way its time you make the rules. So join the 2 Million People who have switched to xfinity mobile. You can choose from the latest phones or bring your own device and choose the amount of data thats right for you to save even more. And youll get 5g at no extra cost. All on the most reliable network. So choose a data option thats right for you. Get 5g included and save up to 400 dollars a year on the network rated 1 in customer satisfaction. Its your wireless. Your rules. Only with xfinity mobile. Retailers trying to cash in on consumer apps and touch Free Shopping as the new way to buy things walmart, target, lowes, macys all saw their Digital Sales soar but as we look to q4, which retailers developed the best strategy to support the ecommerce boom and who is the right metric to determine who is winning . Join ug us joining us is andy dunn, chair of the baby Clothing Company monica andy. Welcome back good to see you again. Thanks for having me. I wonder how youre thinking about i mean, this is basically a massive share grab by the giants. How much of it do you think is riding on digital and even in the case of target, you see these year on year numbers come down a little bit quarter to quarter. You know, does that really mean a deceleration or not . What im thinking about is where is the share coming from its common to think about walmart or target or amazon taking from each other i think the story one layer deeper may be the brickandmortar players who havent figured out this yet the way that walmart has, the way that target is doing theyre the ones that are making space. So i just started look being at recent store closures, right pier one, 930 stores games stop, 500 out of 5500. Gap closing 10 of the fleet i honed in on a fascinating one which is gnc it is closing doors rapidly. It was a small story in the news but you may have seen that bayer acquired a stake, a 70 stake in a vitamin brand. And i thought that was an interesting vignette i think what well see is large players who do brickandmortar and Digital Wealth like walmart and target thrive. A lot of other players in the brickandmortar space who are not good at digital are going away and then you have the really interesting upstarts Specialty Retail brands that are going to start to team up with Larger Enterprises and thats where you see kind of the middle where you dont want to be so the names you mentioned, gnc and gap and the others are specialty. Are you is the argument that there is no scale in specialty to do this well enough to compete . There are older stores. The u. S. Has most retail Square Footage per person by a factor of 41 over germany. So i think people like simple narratives but the simple narrative doesnt aplichlt its n apply. Its going away for players that havent been able to pivot to digital and strengthening for players that v well see increasing momentum at walmart, target, some of the other folks that are at a large scale able to make the investments and its the people in the middle, the j. Crews of the world that will get crushed. What role are social Media Companies going to play in the Holiday Shopping season . Weve seen tiktok, pinterest and facebook make a push to sell items. Is this the year that numbers really take off . I think it is fascinating to hone in on the tiktok. The tiktok phenomenon. You know this is something thats been relatively recent. Due to some funny stuff happening on our national scene, you have an investment coming in pt i kn but me seeing someone who i greatly admire in Doug Mcmillan getting involved in a board role there, its really fun to see the way that commerce and these social platforms are converging. And you look back with how bad facebook is thought of, you know, thank god for them that they acquired instagram, right and so im particularly bullish on the role of instagram and tiktok to drive new and exciting things for genz and millennials. Facebook is a juggernaut because of who they are. I think theyre vulnerable right now. Andy, you were just talking about gnc and gap being overstored it seems to me that they might also be overmalled right . A lot of the stores are behind these parking garage motes and mall castle walls. Its hard to get into them in this environment if you dont want to go there is omni channel you think especially during this holiday q4 in figuring out a smooth connection between digital and physical going to be key to who wins in retail i love the question because i think if you do have physical, it can actually help if it is destination physical the way that costco and home depot and lowes and walmart and target you kind of go there its an experience if youre in a bundle like at a mall, it end up hooking a little bit like a credit default swap, right . You got some triplea stuff like an apple store or a lululemon store and then a bunch of stuff going away and so if youre, you know, double b, triple b, if that stuff tarts to fastarts to falla house of cards apple and lululemon cannot be the entire mall. Finally, andy, i want to ask you about something that Doug Mcmillan said on the call this week the way we make money today and the way we make money in the future will be more multifaceted whether its marketplace or advertising, walmart plus, walmart fulfillment. I mean it strikes me that in the case of your form employer, theyre not just thinking about taking share i mean, theyre thinking about ways to make money that weve never thought of in a walmart way before well, i think that sam waltons mantra, you know, save money live better it now has two more words, words five and six which is save time and thats why i think when we see pickup whats being done with rapid delivery, walmart plus, the idea is time is money. Families are busier than theyve ever been. I think people playing offense to save people time is as valuable as delivering them value. All right fascinating take in whats been a Pretty Amazing week for retail in general andy, that was helpful really good. Thanks for helping us make sense of it today. Good to see you. Great to be with you. Thanks and startup affirm is the latest name announcing intense to ipo adding whats been adding to, i should say, whats been a busy week for Companies Filing to go public with he have details on that next dont go away. Hi, my name is sam davis and im going to tell you about exciting plans available to anyone with medicare. Many plans provide broad coverage and still may save you money on monthly premiums and Prescription Drugs. With original medicare youre covered for hospital stays and Doctor Office visits, but you have to meet a deductible for each and then, youre still responsible for 20 percent of the cost. 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Carl, what i think is so interesting here is this was really just an extension of that outdoor mall this doesnt really get disney any closer to selling tickets. That is what they want to do to get people back into the amusement park, the rides part of things, carl. But it comes as new York City Schools are shut down. I mentioned with cramer earlier this morning, julia, s p 500 cut disney to triple b plus yesterday from a minus because of the view that even with