Transcripts For FBC After The Bell 20240712

Giants of silicon valley. 10 trillion in market cap. Adam lashinsky, from fortune, both fox news contributors. Along with former investment banker carol roth and tech expert lance ulanoff. Thank you so much for joining us. Scott, first to you, which of these stocks will move the market, move the most after the bell. Given where we are during the pandemic and kind of where the consumer is i think it is an amazon story and not because amazon is retail and tech with Amazon Web Services youre getting a little bit of both. Youre getting a little bit of tech with amazon and certainly get the retail exposure. Amazon in some cases, david, by some estimates is pushing a hundo billion of revenue. That incredible for reporting services. That is a big tech titan. A big retail titan. That is why it holds so much water. David adam, call me oldfashioned i look at apple of the four stocks, because sometimes they low ball numbers before the earnings come out and investors are surprised when they do. Frequently they do it and made it into an art form. I think iphone is premium product. I dont agree with stock. Amazon is outlyer because they benefit so much from what is going on now. I think the one to watch is google. It is the truest reflection of the Macro Economy in the United States and Global Economy well see out of the four today. David carol, you have issues of facebook, whether or not that boycot that happened in july will affect its numbers. Google has issues of its own in terms of censoring or charges of censoring. Those will be interesting once. The regulatory issues for both of them and the big boycott virtue signal. The big question does that show up meaningfully particularly for facebook and their numbers this quarter or something that blows by and i think if it does show up the mean any for earnings this quarter i think it become as drag on the stock for a buying opportunity because those are the type of virtue signaling events that dont seem to have a lot of tails on them. David lance, there is always questions about what apple has up its sleeve in terms of new product design, et cetera. Anything to look for . Look, they dont signal what theyre going to do during this call. They will promise a great slate of products. We definitely heard rumors of product launches in august, september, and october with everything from new airpods to new tablets and macs, including macs run on their own silicon. The big one is the iphone 12, that is supposed to happen in september. We have this bizarre environment of the pandemic. Right now he dont have a clear impact how that impacting their earnings and in six months. David scott, amazon is beating the pants off of walmart. At first it would looked like it was a horse race. Clearly retail Sales Numbers, Amazon Retail Sales Numbers have gone through the roof. Because of the pandemic they are spending a lot of their money. A 4 billiondollar spend by jeff bezos on pandemic supplies. Making sure that their workers dont get sick. That is the funny thing about amazon, david, you have to take into consideration as you look at their earnings. They play with the market, play with wall street when it comes with profits. They dont really care. Back in the day when amazon was much smaller. They had trouble making profits. Now they can turn a profit any quarter they want. Sometimes they spend, sometimes they spend less. Adam, i miss you, covid kept us apart so long i have to disagree back with you. I miss sim so much. When we look what amazon has done besides the retail. Look at the advertising. Look at Amazon Web Services. Theyre getting into health care. Amazon, guys, will almost be forgotten as a Retail Company in five years. Because they will be into health care, because the aws division will be so big. You have to focus so see their reach what theyre doing as far as business overall. David go ahead, adam. I was starting to agree with you scott. Maybe it is a matter what the focus is. All i was saying was if you want to understand is happening in the Global Economy theyre not the most Interesting Company although i take your point, aws, web Services Business is reflective of the general economy more than their Retail Success but i totally agree but the street doesnt particularly care quarter to quarter amazon is spending. The street cares how much amazon is growing. If i can jump into the aws piece, one thing everyone will be looking for what the growth number is. When you look eight days ago, when microsoft reported their azure business had deceleration in revenue. The question is amazon seeing same deceleration in revenue on aws. What does that mean. Spot on. Spot son. David melissa. Melissa lance, that is exactly i was glowing to ask as the next question, microsofts azure went from 61 growth to 350 growth, imagining 50 growth was somehow a disappointment is hard to see but it was. I know for amazon in the web Service Decision theyre looking for maybe 33 . You think that sounds about right . What would be considered good and would be considered a disappointment for aws inside of amazon . I guess that sounds about right. The thing is aws serves so many different businesses, right . To me it is actually a reflection of the larger economy, the Global Economy because it is how Many Companies can hop on to the services to try to grow. If we see deceleration, that is a reflection what is happening to the small, mead jump size and even Large Businesses that rely so heavily on amazons server business. I wouldnt say, think, what happens to amazons retail is also a reflex what is happening with peoples pocketbooks. The money they have in hands. Even though they had to state at home, they had to shop there, if they cant shop anymore it means deceleration happening too. David i understand. Lance, i have to cut you off for a second because we have facebook earnings. Lauren what are the details . Lauren here we go, revenue much better than expected, guys. 18. 69 billion in the quarter. A solid beat when it comes to revenue. Also there is an increase in engagement. Wait until you hear these numbers. Monthly active users, 2. 7 billion, more than expected. Daily active users, also more than expected, 1. 79 billion. So facebook, right now, putting in these solid numbers. Stock is up 4 right here in the afterhours trading. Back to you guys. David lance, what about those numbers . What is really interesting to me. I was think about this before we started, even with the stop profit for hate campaign the fact of the matter is, facebooks engagement numbers were going up because were all stuck at home, and how do we connect with people . Were connecting to them digitally. Yes, people frustrated with the ad campaigns, political campaigns that showed up, fake news, maybe the hate speech but what they really were using facebook for was to stay connected. So that is what facebook will try. That is what im sure theyre going to talk about. People are still engaging with the product. Obviously the stop hate, profit for hate did not really hurt them at all. Melissa yeah. Looking at more of the data here, so that daily active users for the quarter, 1. 79 billion for june. That is an increase of 12 yearoveryear. Scott what do you think about that . It is good. Lance, great point about staying connected. Look, we got so spread apart in covid i even thought about going on facebook connecting with people. I tell you what is interesting, that is a big statement. Heres the thing though, guys, a lot of ad boycotters are not exactly happy to see some numbers such a rise as they went into the ad boycotting that is july, north part of the quarter going to be reporter until we get into october, look at fact we had testimony yesterday. I thought zuckerberg did okay. There is ad boycott looming depending to change things enough to see if the boycotters come back. Melissa hang on, i want to be speak directly to that. Facebook said first three weeks of july, year over year after growth right was approximatelily in line with q2, yearoveryear ad growth rate. Theyre saying first few weeks of july they didnt see a drop off. Who is that . Adam . What do you think about that. Let me react to. That i wrote this a couple weeks ago people can boycott facebook but the ads perform like nobody elses. Most of these marketers are fairly crave ben this some will say we hate the hate speech on facebook but they will go ahead and advertise on facebook as long as it works for them especially when cutting back their marketing spend elsewhere. I think the other thing with those great numbers is instagram. Instagram is on fire. It is in the zeitgeist of behavior. Im guessing that is where a lot of this growth is going to be. Melissa it is. No doubt. Amazon reporting Second Quarter results. Lets go to lauren simonetti. She has the numbers. Lauren lauren i had to check this a few times. Wait until you see the eps number. Expectation was 1. 46. Came in 1. 30 a share. Revenue also better than expected, 88. 91 billion in the quarter. So yes, there are a lot of eyes and scrutiny on amazon for the way they treat their Third Party Sellers. Way they treat customer data. They have proven especially during covid they are needed. You saw that with a major beat on earnings and also on revenue of 88. 9 billion in the past three months. Melissa so, lauren, that is apples to apples . That is the real number . Lauren yes. Checked it several times. 10. 30 . Lauren looking for 1. 36. Came in at 10 30. Melissa holy cow, what do you think. All me. I dead all the ordering. Right, im ordering stuff on prime that still was, is, remains the best deal on the planet by the way. We talked about that before. When you make 88 billion in a quarter you can make 10 a shear plus in profit. That is pretty easy. That is like Everything Else were seeing. Tech stocks so far look pretty strong. They have a lot of engagement. Throw the ball back to adam a little bit. He is right. There are a lot of things going on on line despite ad boycotting, with stuff like instagram, engagement in retail with amazon where these companies are printing money, making profit hand over fist. With the conditions going outside our doors here that is probably not going to change. David bring in carol for a second here. Carol, i mentioned that 4 billion that bezos spent on coronavirus expense. That is just a counting error when youre making 10 billion as an, as profit, you can afford to do that. I cant think of anybody that has that melissa 10 a share. 88. 91 billion. David i cant think of anybody with that kind of reserve. It is amazing but it was a baked in expectation. Positioned well for the future but i want to put this into perspective. We got a personal consumption number down 34. 6 today. So that means despite the fact that everybody was spending so much less, all of those extra dollars went to amazon and it demonstrates the have and havenots in this economy. Because all the money would have fon to Small Businesses has now gone to amazon. Yes. David good point. Great for amazon but not necessarily great for our a broader economy. Melissa there are those Third Party Sellers on there. Go ahead. Right. I was going to say. I dont think we can say all of the Small Businesses were nudged out. So many of them are on amazon. Third party seller business is massive on amazon. And the fact of the matter is over the last few months people have not been able to go out and actual shop at some of these businesses if there were entire bunch lenses all over the world, turned into one lens pointed at amazon because we had no other choice. None of these numbers really surprise me. Again it is an extraordinary time and amazon could not have been better positioned to sort of take it all in. David, this melissa those are big targets. Go ahead. What i was saying earlier, what this just validates for me and to carols point exactly was that there is two different ways to analyze this. One is amazon, fantastic. The second is, what does it say about everybody else . Terrible. And so you know, the Third Party Sales on amazon, that is a big number for amazon but is not big relative to what isnt happening in the rest of the economy. That is the important takeaway unless youre a amazon shareholder which is a takeaway. David not just the small competitors that might be getting beaten up. Well have to look at their numbers as well but, scott, i mentioned before in the race between walmarts Online Services and amazon, amazon won hands down. Walmart, im wondering how much theyre worried about amazon right now. You know what is funny about that, david the world i know were in a pandemic. Weve seen the numbers as carol pointed out to gdp the world is big enough for a few companies. Some yes, will get left behind. Frankly left behind in every recession, jobs are destroyed, capital taken away. Walmart online, sales are accelerating. Companies like costco are doing okay. There are other places existing outside of amazon. Eastern nike, some of these other companies are Still Holding on to the global brandscape. So to me there is a lot of other choices out there and amazon i think as jeff bezos pointed out in his intro yesterday and his testimony, amazon is winning because they deliver. I mean that as kind of a pun. They do what is right by the customers and customers are very happy with them. That is why they keep shopping there. Melissa so far away from it, hang on, hang on. Before we get too far away from i want to point out the numbers we were talking about there. Saying 88. 91 billion in revenue. The estimate for the Third Party Sellers had been 16. 89 billion. 16 as a portion of that 88 when youre looking what is the sizes of the Third Party Sellers inside. Also amazon saying they provided one time thank you bonuses totaling 500 million to all front line employees and partners. Carol, that is a big focus is those amazon workers. We heard so much how hard they were working what kind of dangerous positions they were put in. That is one of their liabilities in the sense that they need a lot of people, trying to bring in a lot of robotics, theyre always hiring but then their workers are trying to unionize and push back. Talk to me about all of that . You will not hate from me on amazon because i think they are doing the right things. They certainly set us all up for having an easier pandemic life, to tie what youre talking about to what scott was talking about, walmart and other companies should thank their lucky stars amazon has been pushing them to modernize their supply chains because otherwise they would have been completely out of the position in the pandemic. None of us would have gotten anything. The fact they have done all the right steps made all of our lives and david competition is good. Competition is good. It is. David thats one thing. But i have to ask one question to lance about aws the Cloud Computing and the Advertising Services amazon has been getting into more and more, how much of an effect is that having on the overall numbers . Numbers look good on aws side. It looks like decent growth. I didnt get to go deep into it. It certainly seems to be doing well. So, you know, as far as i can tell the outlook right now is good. I was going to bring up one other thing about amazon though, just trying to imagine, the pandemic if there was no amazon . Because we talk a lot about how, winners and losers. If there was no amazon, like, what exactly would we have done . What would have happened to the economy . Melissa i would have spent spea lot less money. At the risk much being a contrarian, when i was a very little boy the Department Store in chicago, Marshall Fields delivered anything you wanted them to deliver directly to your door. Im not minimizing what amazon has done. I have just think its a little silly to say we wouldnt get Home Deliveries if it werent for the blessed amazon. David we should count our lucky stars. Melissa i had no idea adam was that old . I am wellpreserved. Melissa okay. Lets go to lauren simonetti. Right now looks like we have the Second Quarter numbers out of alphabet. Parent company of google. Lauren guys, another massive beat. Earnings per share, 10. 13 versus estimate of 8. 21. Big beat on revenue too, 38. 3 billion in the quarter compared to 37. 37 billion. So, again, one of the big tech giants, now three of them so far have hit it out of the park, beating on the top and bottom line. Shares of alphabet however are only up slightly right here in the afterhours. David unbelievable. There was a big question, go ahead, adam. You wanted to chime in. We should mention by the way, adam is, adam has a google spouse. I do put that out there. I have no insight as a result into what we just heard. So look it, its great. Heres my hunch. Is that the u. S. Economy at least definitely was improving during the quarter. So the very interesting thing will be as with facebook, to hear what Google Alphabet says about what theyre seeing in the Current Quarter and what their forecast is if theyre willing to make one. That is what i would find interesting as a tell on the economy. I think this is a big turn around for them. They were sort of guiding to advertising revenues going down. So if that has shifted, that is certainly a good look, but i again imagine we have bifurcation and tale of two economies. Perhaps youre getting some Bigger Companies reenergizing their spends but not necessarily the little guys. I think that digging into that information is going to give us the Important Information where we can see across the board or just bifurcated. Melissa let me provide a little bit on that. Quarterly google advertising revenue, 29. 876 million versus 32. 492 million. So a little bit lighter than expected, that 29 number. That is on quarterly google advertising revenue. Lance, your thoughts . Yeah. I mean im just looking at these numbers and they dont, i mean they dont seem to be growing as much as you might expect. I mean yearoveryear the numbers dont look as strong but maybe im misreading this. Im looking through all of it. Seems like theyre doing okay but theyre not killing it, because my guess, google makes so much money on advertising and so many businesses had to pull back on this. They had to like recalibrate or pull back and i know that had to have an impact. Im still digging into it but it doesnt look quite as much of a rosy picture as maybe we think . Do we have cloud revenue by the way, guys. Melissa operating margin, 24 , Second Quarter operating margin 24 . Operating income 9. 18 billion. That is for alphabet. Who was that, sorry . Go ahead. Melissa, i was looking at crowd, that is an area could be disappointing potentially. To laurens point the stock isnt reacting as much. Google, call them as we have all day today the big four, google has been languishing a bit, sluggish all year. If you look stock returns as well. You can see that in the price. Probably there is little slight disappointments in the world, dispointments in this state are 20 growth, 30 , versus like Single Digits but if you just look at google overall, it is get back on adams bad side here, i dont know if their stuff is that special right now from what were seeing from the numbers. That is again why i dont think it tells you enough about the economy versus some of these other names. Melissa scott, as youre saying that were watching the stock tick higher and higher next to you. It is now up 18 , or 18 points. 1 . Melissa, we own it because its a dominator still look at ones we looked at today, apple obviously forthcoming here. I would say google is the weakest of the four. David i want to asked adam whether or not he thinks politicians, i think they did as usual kind of a blase, blase to bad job yesterday dealing with executives particularly google when they were talking about the market they have in advertising and it is huge. Just tremendous but are google executives worried that there may be some attempt to break up google because of the fact that the politicians think they have too much of a market share in advertising . I think theyre very worried. It is not a one quarter or two quarters out concern but it is a big concern because theyre the close, you put your finger on it, david. Theyre the closest thing among these four you could assemble the data to make them look like a monopolist. They have such a dominant, majority share in certain of their markets and if you think theyre concerned about washington, d. C. , theyre way more concerned about brussels which is very meaningful to european markets. David yeah. Melissa okay. Press pause for one second. Hang on guys, wait until we call on you, that would be great, there is so much talking all over each other. Lauren simonetti. Go to her with a little more on amazon. Lauren. Thank you for calling on me, melissa. I was looking at grocery segment this is where it is difficult for amazon to come pete with walmart, number one in groceries and food stores out there and they are competing, melissa. They increased the grocery delivery capacity by over 160 in the quarter and they tripled their grocery pickup locations to help support customers who dont want to leave their homes. On line sales tripled in the quarter compared to last year. This is not just a big increase year over year. This is a massive increase year over year in almost all the categories they do business n yeah, they can take the whole First Quarter profit, or whole Second Quarter profit of expected 4 billion and spend it on growing their business and on their response to covid19. Then have a lot of money left over still. Look at that. The stock is up 6 1 2 . It is about fast math here, 52week high is 3344. Theyre not that far away. You can do the math for me, everybody. Melissa thank you for that. Lance, ask me about you, i wonder if this sticks i was loyal Amazon Grocery user but i couldnt get a window for the first period the time we locked in. I understand it is way up. I learned how to shop at bunch much other Online Grocery places. I havent been back to Amazon Grocery since even though im a Amazon Grocery person. I dont know, how do you slice and dice this . Fresh direct, instacart, ive been talking to people for months. So interesting to talk about the first experiences shopping for gross is online. Amazon was not only name i heard. Its a place where you have really good competition. The key has been delivery, making sure people can get what they want. But, amazon has so many tools. The best infrastructure for delivering stuff in almost real time. Thats. That is the picture that the competition faces. Now more, just wind behind its back. More money into it. To buildout more infrastructure. It will be hard for anyone to compete . Melissa adam . Well, the numbers would suggest, melissa, youre the, youre the usual one in this i think, im not looking directly at the numbers. My hunch is that they dont have the same grocery delivery infrastructure in every major market. So he have emphasized some over others. Clearly theyre doing all the business they can and then three times it. Melissa yeah. No, i think that is exactly the point. The reason why i couldnt get a slot because everyone else was out there trying it for the first time and getting a slot and kind of goes back to the point someone was making earlier, scott, i will ask you, that amazon has pushed everybody else to develop, to figure out supply chains. To figure out how to do this, to get up to date. If not, they will come in and eat your lunch or maybe deliver your lunch i guess. Deliver your lunch. To that point, i guess, melissa, funny with the competition, say substitutes out there that you found as well, the fact remains were in a material world. Were living in one and im a Material Girl or boy as it were because that is what is really driving this. Look at some numbers out there. You look at ad spend, instagram and facebook that is getting to consumers. Look at amazon revenues. That is consumer driven. Google search for people want to buy. That is the points where are driven home showing up in earnings and profit. David it is really a tale of two tapes. Bottom right hand of the screen, dow industrials down 225 points today, but as you look to the lefthand side much the screen here, facebook after hours up . Or close to it. Amazon up well over 5 , closer to 6 . Alphabet is laggard. Theyre all in the green. Were wasting on biggest of all in terms of market cap. Apple earnings are expected any minute. Bring back scott martin, adam lashinsky, carol roth and lance ulanoff. Lance, i i want to start with y. Apple has been known for products among Everything Else. People are not that anxious to buy iphones macs. Correct me if im wrong, but i think more interested those close sistered at home in macs than getting a new iphone, right . Certainly. It is interesting, because apple released recently the iphone se. The most affordable iphone getting into the whole pandemic. Maybe that was a bulwark against what is happening here. The Premium Products probably sliding down in Sales Numbers. So certainly that is going to be an issue. The thing to watch for apple is really the Services Business. That has been the fastest grower. That has been the most consistent business. It is 17 of their earnings recently. That is honestly what im really watching because if their services are not strong, which is apples future, that is going to be a concern. David adam, i got to tell you, i cannot talk well enough about the all of the Services Apple provide. They really focus on Customer Service more than anybody else, do you think . Here is the story to watch there, that Services Business. David got to stop you dead in your tracks. Numbers are out. Lets go to the best source ever on apple. That is our own susan li. What do the numbers tell you . Reporter fantastic quarter, that is what number tell me. 2. 58 for the quarter. The estimates were a little bit 2. 04. Again much higher than expected. As for revenue and sales a major beat, 59. 69 billion is what apple did in the quarter. Estimates calling for something close to 52. 25 billion. I just got off the call of tim cook and telling me about the quarter in terms of what happened. It was pretty good. First of all another major headline that just crossed. Apple is splitting their stock. Four for one stock split because the price has gotten too high. They want to make sure there is more general ownership among the public. That was a major headline came through. Another one because we had quotes from tim cook, bring it up in terms of Services Since it was also another blowout quarter there. Says we grew revenue in each of the product categories. Set june quarter records for mack wearables and services and grew revenue in each geographic and in the americas, japan and rest of asia. Talk about the services record as you mentioned and device sales record as well. We saw marked improvement in may and june after the covid and coronavirus pandemic lock down across most of america in march and april. Iphone, ipad, mac, had phenomenal quarters in his view. Lets move on to talk about the openings, store reopenings here in the u. S. Weve got 75 open today, across the world. Were making the decision store by store, county by county depending upon local conditions according to tim cook. As for the u. S. Economy i asked him if he was still bullish in terms of what he is seeing right here in america. He says im still bullish because we went into this very strong and i think, i think more stimulus is required but im optimistic that will occur. I do think that we can have a strong bounceback. I also took the opportunity to ask him about the antitrust tech hearings yesterday. He says i think people watching the whole thing, what became clear was concern about data. It was also clear that didnt relate to us. I hope that people understood my explanation that the app store is a feature of the iphone. As you see its a blowout quarter. Theyre splitting their stock into four to make it more affordable. Rappel is rallying in the afterhours. David huge. Melissa can i add a couple more details here, if you dont mind . They say they will be Carbon Neutral by 2030. Third quarter operating cash flow at 16. 3 billion. As you said they approved four to one stock split. Iphone revenue, 26. 42 billion. Services, 13. 16 billion. So thats a little bit more color. You can see there in the afterhours. Im looking at the stock. That is up better than 5 . Lets go back to our panel for some reaction. Adam, your thoughts . I think the story of the day is these fantastic earnings are clearly reflecting a quarter where business was Getting Better around the world, in particular in the United States. The market was down today because of the concern that the market, that the economy is not going to be Getting Better Going Forward because of the widening pandemic crisis. And so, no one can dispute these companies have fired on all cylinders. People are buying awful lot of songs on itunes to make a little joke about the many, Many Services that they sell and the big question will be if theyre right, that the good times have returned and everything is hunkydory from here out. I somehow doubt that. Melissa lance, let me quote a few regions for you then. Europe revenue, 14. 17 billion. Greater china, 9. 33 billion. Japan 4. 97 billion. What do you think apple is telling us about what is going on around the world . I mean it looks like theyre bouncing back honestly and i know they sometimes talked about he had had winds in various places including china and i was think about china before this because were in a very weird place with china. Obviously apple manufactures a lot of products there. They manufacture and also sell into there but the numbers look actually really good. To davids point, i was looking at those mac numbers. Those are really something. That is the kind of growth we havent seen on the mac side in a while. Melissa carol, what is so important to this about the viewers, if youre not necessarily an apple stock . If were on track where we are now, it could add Something Like 144 points to the dow tomorrow. Looking at all the blockbuster it numbers were telling you about right now, this indicates really what traders will be trading on and looking at tomorrow. Do you agree . Yeah, i mean i do. Obviously these are hands full of tremendous tremendous companies from market standpoint, do represent outsized portion of the market. A lot of people dont understand how we can see a gdp number, personal consumption number so bad the market going up. This is why, because you have outsized Large Companies doing the right thing. There is differ between wall street and main street. The fact that were hear about a stock split, we have not heard about a stock split from a Major Tech Company i cant even remember how long. Even though it doesnt change the overall valuation of the company, it changes the dollar value per share which means that somebody who maybe only had 50 or 100 to invest can buy a share of a company they may not be able to do so before. So i think that is a big piece of news for the Retail Investor as well. Melissa david . David im just wondering exactly what all of these numbers are going to mean tomorrow as we see, i mentioned before. We had 225 point decline today which wasnt as bad as it was earlier in the day. Scott, i will go to you. At one point we were down 500 points on the dow. It came back. The problem with todays market is, you dont know whether some news on the pandemic is going to drive the market down despite good numbers, at least numbers looking in the rear view mirror. Thats true. David, if that happens. I think you take the dips as opportunities to buy. Youre right about the market breadth and color today. Although nasdaq rallied most of the afternoon into these numbers. These numbers out of apple, gosh, guys, are so gorgeous. Im thinking of another madonna weave in here. If you own tech or nasdaq etf like we do, this is like a prayer. If you like that one. You all encourage him by laughing. I cant stop myself. The other thing, adam and everybody else knows this, watch mac sales. Susan talked about the hardware sales, washables, those tend to lead my friends, services into the following quarter. The fact theyre so hardcore in hardware now that is big news for services for apple somewhere down the road. David adam, what do you think of that . I think its a blip. It makes total sense. We know a lot of people bought personal computers. I marveled at the mac business for years. It is slow growth annuity cash cow for apple. Last quarter it was a higher growth annuity cash cow for apple. I wouldnt look for them to repeat. David adam is kind of our Debbie Downer here. I think it is good news, dont you . Thats okay. I think it is good news especially since it was apple were always talking about the phone. So were not necessarily talking about in this discussion so the other thing we arent talking about in this discussion, the numbers melissa gave were actually pretty good with numbers out of china but there is a big geopolitical issue there. You saw that apple announced they are starting to move some of their supply chains to india. There are obviously a lot of geopolitical issues around china. To the extent that escalates that could impact Something Like an apple which still has meaningful percent of its revenue in china. I do think that that is a big risk for apple, much bigger from any of the other companies. David lance, im wondering if apple is concerned enough what is happening with china so they are bringing some of their manufacturing back to the United States or at least moving it out of china, is that happening . I think they have to be concerned about that. They have to be concerned about tariffs. They have to be concerned about the geopolitical situation. They dont want to be caught flat food. Im sure theyre preparing. I want to Say Something about services. The risk apple has now, you see Services Great trajectory but when tim cook was talking yesterday about the app store being basically a feature of the iphone, that was to say to make it not a separate business because if apple is forced to allow other people to host iphone and ipad apps, that is going to be a problem for Apples Services bottom line. So i think that is the risk, that is the fear that. David i want to ask, melissa, what do you think about is upbeat mood on the economy on the bounceback . Melissa well, i dont know. I want to believe it. I want to think thats the case. The problem is that people are feeling Different Things at different times. You see, i really felt like we were on the rebound overall. Then all of sudden you saw what were calling a second wave but i think unfortunately is just that you need to get herd immunity going. There is almost nothing we can do to stop the virus overtaking an area. In new york, it sort of ravaged the city so badly, now i hate to say it, everybody is is going to get it got it type thing. I dont know about the rest of the world as it recovers. I wonder if other parts of the same country that didnt get ravaged before will in the future. Now i have taken over from adam the Debbie Downer position. Sorry about that. David we havent even talked about how commercial real estate, were talking today about stocks that have in some way benefited by people being stuck at home. Maybe overall they would be happier if we werent. But they have benefited from that. A lot of companies as we mentioned, melissa, even though were opening up more in new york now, a lot of companies are not filling up those old Office Buildings the way they used to. Melissa yeah. David you wonder how much of a hang over were going to have. By the way, amazon looks like, that was just a temporary blip. They are all up except for alphabet. Go ahead, melissa. Melissa along those lines, i dont know if you heard Charlie Gasparino reporting in the last hour, talking about the fact he is talking to different banks and bankers. A big group ever people are itching to get out of the house to go back to midtown. As much as companies are sort of pulling back from that, thinking were saving so much money having people at home, maybe we dont want to have big foot prints and big offices maybe people never go back. There is a group ever people that work outside the house for a reason and really dont want to stay home every day and want to work from a office and are more productive there i wonder if this idea that work is going to be different forever and ever isnt quite the case . I would be interested in our panels point much view on that. I dont know, lance, what do you think . Well, obviously a lot of the Tech Companies are making the decision to keep a lot of the workforce working from home through next year. We know google announced that. Twitter is not requiring anyone to come back in. I do wonder about this, what this is going to mean to major metropolitan areas where these companies have basically created significant bases. Its a change. But you know, my big thought here is that what weve seen across all of these stocks is a reminder that the future, no matter what you think of these Tech Companies, the future is digital. It is how we connect. How we get things done. That is why theyre all doing so well. That is why they will probably continue to do well. Melissa this is the cfo on amazons call right now saying the profit jump was because the company was able to ship more than expected and customer purchases were on more profitable products than it had expected. Thats pretty interesting. Adam, what do you think about that . They were able to ship more than they thought is saying a lot when you talk about amazon because they were already operating at full capacity . Go ahead. Did you say they were able to ship more than they expected . Melissa yeah. Purchases were on more profitable products that the margin was. So two separate things here. I was thinking about this earlier. Remember i said earlier the street doesnt care how much they invest. They are investing so much in the shipping infrastructure use. Weve seen the airplanes, seen vans in our own neighborhood. So that is showing fruit. I just think that, i am surprised that they are selling higher ticket items only because so many people were ordering staples, laundry detergent, toilet paper if they could, et cetera. Maybe that was earlier in the pandemic. In the most recent quarter people are buying everything. That is translating into higher margin products. Buying home projectors. Melissa what did you say . Were going to susan with more . Lets go to susan li. She has little more color what is going on right now. Forgive me, susan. Susan i know its a very busy day. I got off the phone with alphabet ceo ruth porat giving more color for google. A bit disappointing with the advertising revenue. They were coming up a little bit light. Listen to the cfo, ceo, stabilization is into the business. According to ruth porat, overall Revenue Growth following a rough First Quarter. It was rough. March really fell off. She says it gradually improved in this quarter. When i asked her about predictions forward, what she is looking at in terms much the global connie. She said no one can predict the future. The main point she is trying to make in this call, its a frag gail fragile economic environment. They used a stock repurchase. Part of use of capital and ongoing repurchase program. When i asked ruth about this, the primary use of capital to invest, support longterm growth which were continuing to do. We look for opportunities to act sell rate through acquisitions and Strategic Investments we thought through for the past quarter. We talked about the antitrust hering yesterday. Not giving that much color. I will leave that to sun day pichai, heading up the earnings call. My conversation from ruth, things are stablizing, it is still unknown how we head into the rest of 2020. They have 50, 100 billion on the balance sheet, they are willing to spend that which is stock positive. David susan, thank you. Let me go back to carol if i can because we heard tim cooks response about the economy in general. What do todays numbers tell you about how the economy bounced back . I know were going into another downturn at least in the past week or so. Weve seen spike in cases in the sunbelt but are these numbers telling you something about the way america is getting back to work . I think there is a temptation to read a really good story without realizing that it is excluding half of the economy. That is a part that really scares me the most. Is that half of the economy is small business, is the backbone of the economy and that is where were seeing the shutdowns. That is where were seeing people who are saying, maybe were not coming back ever again. And i dont think that were putting enough emphasis on the fact that that eventually will become a drag that will bring down everything. These Companies May continue because of their positioning and their unique propositions, to continue to do well but that does not mean that theyre going to lift up the other 50 of the economy with us. I think that is the really scary thing for me as david scott, i understand exactly what carol is saying but i always, i dont think you can fail to underestimate the capacity of americans as long as we got a free market working for us to be able to adapt to the circumstances. We saw it after 9 11. Weve seen it a lot after these crisis. Well see it again here. Obviously depends what happens with the pandemic. I think we do have the capacity to adapt an change with the circumstance. What do you think . Im with you. David, kind of to the point it of your question. A lot of americans are not working. America is trying to make it work to some degree. Carols right. There are a ton of Small Businesses that are shut down, never coming back, or just hurting in general but then there is other ones that i talked to are selling stuff online more than they ever have. They are reinventing sales tax ticks now. Theyre doing fine. The problem is, a lot of those businesses that are small, that are still open are probably not going to pick up, say all workers and maybe revenue that has been shunned or lost by the other half of Small Businesses that were shut down. Reality that is what happens in recessions. That is what happens when capital gets destroyed with things like this. This is not a gardenvariety recession. Probablier one than weve ever seen. David we could go on. Up unfortunately we have to take a quick break. Scott, adam, carol, lance, stay with us. Well be right back. I wanted more from my copd medicine, thats why ive got the power of 1,2,3 medicines with trelegy. The only fdaapproved, oncedaily 3 in 1 copd treatment. With trelegy and the power of 1, 2, 3, im breathing better. Trelegy works 3 ways to open airways, keep them open, and reduce inflammation for 24 hours of better breathing. Trelegy wont replace a rescue inhaler for sudden breathing problems. Trelegy is not for asthma. Tell your doctor if you have a heart condition or high Blood Pressure before taking it. Do not take trelegy more than prescribed. Trelegy may increase your risk of thrush, pneumonia, and osteoporosis. Call your doctor if worsened breathing, chest pain, mouth or tongue swelling, problems urinating, vision changes, or eye pain occur. Think your copd medicine is doing enough . Maybe you should think again. Ask your doctor about oncedaily trelegy. We know times are hard and were here for you. Find support at trelegy. Com. David fox business alert. Look at apple with another blockbuster beat on earnings. They do four to one split. Many people thought they were not seeing a split on this environment. Susan li. Susan david we have no guide against Going Forward because of the uncertain outlook for the economy given recovery after the coronavirus pandemic. Another highlight here is services. Looks like they doubled services to over 13 billion, six months ahead of schedule which is stock positive. I also want to highlight the wearables division, we know theyre doing very well when it comes to selling airpods and watches. Theyre telling us it is a fortune 140 did on its own. One last point to leave you with. Very important for our viewers to understand this. Tim cook reminds us all he is still very bullish on the u. S. Economy. Bring up the quote. Im still very bullish because we went into this very strong. According to tim cook. He does expect another stimulus package to come through. He thinks it is required for the u. S. To continue growing. He says im optimistic that will happen at some point. Yes, i do think we can have a strong bounce back. Heard President Trump, quoting tim cook in vshaped recovery, didnt give a letter whether v or w, he have said we can have a strong powns back and he is still bullish on american economy. David let me ask you about china. Is he nervous about the growing tensions with china which are the worse ive ever seen . Sues zoos susan i asked himself about the china fleas business. It cam off in january and february where the production was hurt as well. Theyre looking at recovery and sales. New cheaper iphone se helping. It has been a very positive and successful launch. He talked about the Worldwide Developers conference with over 20 million watching. The key all in all he did not sound concerned about. David what about jobs is apple talking about job cuts. He didnt say anything about job cuts. They hold 190 billion in cash. That four for one stock flit will be effective in august. When youre a cash is king in this type of recessionary environment apple is in a good position. David susan li. Thank you very much. Melissa. Melissa a mission out of this world. Nassda launching the perseverance rover to mars to look for signs of past and current life on the red planet. Here is astro physicist Neil Degrasse tyson. Thanks so much for joining us. I asked my own 13yearold quantum physicist here at home what i should ask you. So the rover is carrying 4pound helicopter to fly on mars . Do you think it is going to work. What signs of life might they find, do you is so a couple of things. Yes, the first time were going to attempt an airborne vehicle. Its like a dronestyle helicopter on another planet. Just to remind you, this is not some black box landing on mars, its the size of an automobile, and it weighs a ton. Its clad with all manner of scientific experiments and instruments, international participation. One of them is this helicopter. Its a test of concept. Can we fly on a planet that has liss than 1 less than 1 the atmosphere we have on earth. Its a test of concept, but its a really cool test of concept. Melissa do you think theyll be successful . I dont see why not. Aerodynamics is something thats been with us for quite some time, definitely, you know, since the Wright Brothers figured out how to fly. Weve been thinking about it, weve had powered choppers for most of the 20th century. Not from the beginning, of course, but about mid century they came in, so its a mature branch of flying physics thats being tested there. As for finding alien life, thats the holy grail here. There are experiments thatll be looking for organic molecules, the history of water and minerals and the rocks. Of course, is if life just walked up to the craft and said hi [laughter] that would be, you know, yes, that would be evidence of life [laughter] on mars. But thats not the kind of life were expecting, at least not on this mission. Melissa no, that would be really exciting if that happened. Theyre also going to try and convert Carbon Dioxide to oxygen, a lot of that has to do with trying to see if life can be sustained there as well. Let me turn you a little bit to spacex and this return to earth thats happening on sunday, because we were so excited to see that launch. We havent seen this kind of return to earth in about 45 years, so my quantum physicist wanted to ask you, what is going to be different about it now . Yeah, i dont think much. Its a very sort of blunt way to return to earth. Its a capsule, and the capsules moving very fast in orbit, basically about 5 mile per second. And so you have to somehow dissipate that energy. And so when it plunges back through the atmosphere, the heat shields we think of that as some dangerous point of reentry. Yes, it is dangerous, but its highly desired because its youre basically aerobraking as you return. Thats a very similar thing that happened in the entire apollo era, and its going to when it gets slow enough through the atmosphere, it deploys parachutes and plunges down into the ocean. In this case, into the gulf. So the return date, august 2nd, is a little bit contingent. Theres a Tropical Storm bearing down on florida, and you dont want to land in a storm. That would be bad. So melissa yeah. Were monitoring that. If thats a problem, theyll stay in orbit a few more days and let the storm run its course before they return. Melissa yeah. They want to make sure everythings perfect. We dont have any more time. Thank you so much for coming on and answering our questions. We love to have you, and theres this renewed interest and enthusiasm in space we should all have a quantum physicist in our homes, the way you do. [laughter] melissa well, i am very blessed to have a quantum physicist at home. Hopefully, hell stay for a very long time. Dr. Neil Degrasse Tyson david and im blessed to be here with you, melissa. Melissa yes, absolutely. Thank you to david asman and to our audience on this big earnings day. Whoo, that was a big show this you go lou good evening, everybody. President trump this hour set to hold a News Conference in the White House Briefing room. Weve received no guidance yet from the white house as to what he will be addressing. We will be bringing you the president s remarks as soon as he takes the podium. A reminder, i will be interviewing President Trump next week. The president has decided hasnt decided exactly which day, but as soon as we know, well be telling you precisely which day, so just join us all five days and be safe and enjoy the interview. As we await the president , the radical lefts persecution of his former national