Well as eric jackson of Spring Owl Asset Management and an outspoken critic of management teams, including yahoo and viacomm. Earnings in revenue beat expectations. A big win for Ceo Jack Dorsey who, of course, runs two companies. The stock of square down more than 20 so far this year. Prior to todays move. I did speak to dorsey last quarter about the path to profitability. Square has been a very strong and really predictable business for us. And were really happy about that because we feel like we have a real understanding of how the business grows and what it takes to move it forward and can really understand what to do next. Predictable, of course being the keyword. How much of a victory is this quarter for jack dorsey . Short term its a great victory, longterm its a problem because square catches mass of competition from everywhere. And not only is card readers now, you have apple pay and new infrastructure. A lot of new technologies that could be developed that could really hurt the company in its core products. And then the other business getting into also us is september to believe major competition. So im not that optimistic as just because of one quarter. Mike, a lot of people look at a move like this, up 12 for a stock thats been beaten down and say its probably just short covering. Hold up of that is this . Short covering is always an element of when you have a better than expected result in a stock that people really do did have a lot of ammo aimed at, i think. 14 and change just a couple of few months ago. So its not as if this move today really undoes a lot of concerns, but it definitely was better than feared and at least kind of showed some fundamental momentum. And its exactly eric the opposite move we saw in twitter after the quarter which was done 14 , but this is the first time that analysts did not have any questions about the way jack dorsey spends his time and how he runs two businesses on the call. Well, investors and analysts are funny that way. If you surprise expectations, you beat expectations and you put a few quarters together like that, saw right with the world. People want to believe in jack dorsey, people want to believe in square, and so, there was no question this was great quarter, great results, if you can keep doing more of these, putting more of these on the score board, whats not to like . I like this, i like this company, i like this company for a lot of reasons because its going to own the Small Business world which its doing quite well in and even if you think its going to struggle competitively in the future, dont you look as a takeover target . Dont you have to look that way . A year, two, three from now, somebody whether its apple, american express, paypal, you name your guy who wants to take it out. Well, they would have bought it by now if they were interested. Its not as i maizing technology for apple companies that are benefit themselves. Yes, theres an issue of getting the card readers everywhere. But thats what it is because some of the other Large Companies have others to take advantage of, apple really now has massive distribution and with apple pay, its now done deals with all the major credit card playerers and with the banks. Many other Big Companies coming in from a different perspective and if square was applied, it would have been done by now. Thats my view. Interestingly on the call they talked about the fact that they have larger merchants signing on, Institutional Investors participating in their lending product which is up sharply and they will be profitab profitable, at least on an adjusted basis this year, mike, thats got to count for something. It means that, you know, they are potentially gaining a little bit of share in this very crowded space. And i guess theres excitement over the sort of contacted solution for the credit cards, which has been a point of frustration for the entire industry and consumers everywhere. Meanwhile, we have a strong game for viacomm. Comes ahead of a key ruling tomorrow where the red stones lawyers must defend his move to oust five viacomm directors. On the flip side, 21st century stocks, that stock falling on a miss on revenue. Profit did top analyst estimates said the Company Wants to protect fox newss unique and important voice. Eric, lets start with viacom, this is a company youve been critical of. It was thought that the quality of the quarter that the company put up would possibly shield them from having to ink a settlement sooner. What happens now . I think theres still an enormous heat on phil leap. They preannounced a bad quarter a few weeks aegs. They beat those lowered expectations. If you compare this quarter to a year ago, period, its obvious this kbaen is still in, you know, difficult position and on the call, tom the coo indicated there was a chance that revenues could drop mid to high i thinkle digits next year and also pointed to the leverage ratio which is a big concern for investors as being high over 2. 5 times. So theres still pressure and to me to listen to them talk on the call. You think nothing was wrong. He was boasting about love and Hip Hop Atlanta being a juggernaut for viacom. Who needs walking dead and game of throws when you have love and Hip Hop Atlanta. Dont you think to yourself, okay, something is going to happen in terms of a catalyst until the next several months, new management or ultimately its a takeover target . Are you looking at the operations of the business anymore . As an investor. No, i mean, you know, you listen top phil leap and you say whats the end game here . Obviously how much its going to take for you to leave this company basically is what it comes down to. There were settlement talks reported on last week that apparently broke down. I would expect that those would continue. Hes got to go. I mean we said in our 99 page report, this is a bankrupt culture thanks to him. So yeah, something will happen, new leadership or into cbs, both of those could be wig bins for shareholders and so thats why we are in the stock and why we think there is still a lot of upside here. Be back on the story of 21st century fox, executives on the call last night talked about moving quickly to stem the fallout from the roger ailes situation. Im wondering, on the report card for crisis management, what grade would you give fox here . They havent done it too well. The media followed this one immediately and take an lot of action. Done a more severe cleanup. Everyone now wonders about whats really happening within fox. So i dont give them high marks. But nevertheless, i think fox has a very loyal, Stable Customer base, so theyll get over it because the people they are appealing to watch their channels religiously. So they can survive it. Eric, you think the fact that the murdochs talked about the fact that the voice of fox will not change, is that meaning that there is going to be inherent stability in the business to you . Well, i think so. I mean obviously thats been the big moneymaker for them and the company, and so it makes sense not to change it. I think the most promising part of the call last night for them was that the murdochs indicated that theyre going to fulfill their remaining stock buybacks, but they hinted theyre going to slow those in the future. And instead reinvest in the creative part of the business. And i think thats, thats note worthy. I think thats unique if the immediate world, thats the right thing to do. Weve all seen across a bunch of companies, not just media, theyre that theyre waning shareholder and buybacks as pooded to recreating the business. So viacom and other Media Companies would learn a thing or duofrom that point. Mike, theyve been a buyback machine though. Theyre raising the dividend too. They are, and i think there was sort of a modest but disappointment that in fact they didnt down scale a little bit their buyback intentions. I think off lot of investors in the big old media stock is that just one capital return, steadiness and capital return. Even though eric says theyre going to reinvest in growth, not every investor is it reinvesting growth or take somebody out . Building a device. Thats what this is and where you think they do it in a disappointed way or not is the question. Finally, tesla shares, take a look where the they are this hour. Theyve been flirting with the flat line throughout the morning. Revenue missed analyst estimates but ceo elon musk still optimistic about the second half of the year, take a listen. Reporter were aiming to do internally is to do better than 2,000 in sales and deliveries. And combined estimates. You know, i feel fairly optimistic about achieving that goal. Yeah. I think so our core business is actually doing quite well. We are reminded every quarter that this is a company that operates by trial and r ror, musk saying he was in production hell until june. If youre an investor, what would you take away from the call . Well the call sl saying the right thing, youve got to realize that this is the offer that we talked about about square. Now elon has a vision, he has a longterm strategy. Wl his announcement in massive plan, if you think about it, he could only be in the Energy Industry. Hes a tesla consumer. I know what hes talking about. And i would be the first to line up to buy his new product. Very bumpy ride because thats the way it goes in the tech industry, especially when youre innovating like he is. But longterm, i see an amazing future with tesla. Because i looked at the Longterm Technology brand. Eric, the company did reiterate 500,000 vehicles in 2018, but thats a milestone thats quite a ways away, what does tesla have to do between now and then to shore up vers confidence . Well, theres going to be a big gap between now and when they deliver the model three. Some time next year, we dont know exactly when. And they have a history of slipping their dates. They spent a lot of time on the call talking about production, they didnt spend a lot of time talking about demand and basically theyve had two quarters in a row where they havent met vehicle delivery number expectations. And yet, they are still predicting delivering Something Like 50,000 cars between now and the end of the year. That would be sort of a you know, considering what the trends have been, an astronomical jump in demand. So, you know, were skeptical, were short in the stock and we think if theres no risk to the downside here than upside, especially over the next year. They also dangled the carrot of the model live of those playing at home, pa spells out sexy, very muskesk, is that enough for investors . Well the investor is short term, this is why my friend is going to lose his shirt. Its like the short sellers had, you have to look at grand vision, these people are talking about technologies that could change the world. Were talking about impacting the transportation industry, impacting the Energy Industry and on the side, elon is actually on mars. So thats a vision and the amazon and the facebooks now. I want to look, i want to root for elon as much as anybody, look at the sew already city situation, have to raise a ton of money at some point. So potential regulation coming up with the idea of automation, he says were going see a fully Autonomous Vehicles that not only blow our minds, but blows his own mind. That may be coming. Dont you think well see head wind before we get there . The question is whether you can get through those wins. Yeah, short term, lots of bumpiness. Longterm, youre looking at just like amazon, we were pessimistic, look at the tlerm vision that they had. Facebook is the same story that longterm investments they were able to manage their way to it when youre producing hardware like elon is, its hard. But longterm, he could, you know, really dominate many industries, and this is why i consider the lot more value able and the stock price shows. Short term not, i agree. Its always about balancing a longterm vision with a short term reality. Well see how this plays out. Thank you both for joining us today. Lets get a check on the markets here. We have most markets holding pretty steady it looks like, dow barely up at all, about the flatline and treasure yields olding steady and oils as well. Waiting patiently for the jobs number tomorrow. After earnings and revenues both my the estimates. Expresences along with lower revenue from hotel books. And when squawk alley comes back, Hawaiian Banks opening. The companys ceo will join us live. New polls show a big bounce for Hillary Clinton after the democratic convention. But can that bump last until november . And nice game for shares of godaddy, revenue beating estimates. The companys ceo will join us in an exclosive, thats later on this hour, squawk alley will be back in a moment. Hey gary, what are you doing . Oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. First Hawaiian Bank, its the largest bank ipo in nearly two years. And they are priced at 23 a share, that was the top end of the price range for the company. Joining us now from the nasdaq and first on cnbc interview is bob harrison, the companys chairman and ceo. Bob, welcome and congratulations on your stock pricing at the high end and just about to open, people are wondering though, what is a nice bank like you have in hawaii doing being owned by frances bmp in the first place . We got a great relationship for many years. So the last 15 years, theyve been a terrific owner of ours. Its mainly bmp i believe that is selling shares in the ipo today. Whats the reason for that . Is it just a strategic need to sort of realign its portfolio or does the bank need capital . You know, ill let them speak for themselves, theyve been for 15 years now and really let us run the bank as we see fit. You know, i see you wearing a lei right now, youre probably one of the coolest heads in midtown for that fact. We think of hawaii as surfing, talk about where your demand is coming from, where people are borrowing and the state of business in hawaii. Sure. Hawaii is doing very well. We have a core market and also operations, but the economy has done well for many, many years, and really underpinned by three things, tourism, of course, the military, and government as well as construction and real estate prices. Bob, you know, i wonder what your Growth Prospects look like given that off strong market position already in hawaii. You have more than a third of the states deposits for example. What is the Growth Outlook look like . Ive with been able to grow organically for a long time. We feel the strategy and taking care of customers is really the difference that allowed us to be successful. In fact, were 158 years old this month. Youre the first bank going public in nearly not first, but the biggest going nbl near if two years. A lot of banks have said, you know, were going to hold off for now or the demand isnt there. What were investors telling you when you took your story on the road . We really enjoyed meeting with a lot of new people and we really have a great number of successful media. And i think the what we seen is a really good response. So well see where trading is later today, but were excited. Life as a public company, as a ceo and chairman, how are you preparing for that . Well, ive been getting not a lot of sleep, i think thats the first criteria and spending a lot of time on arps. I think with those two out of the way, its only upside from here. Interestingly on the campaign trail, here in the continental u. S. , weve had one side of the aisle talking about how the economy is doing so poorly that it needs to be shored up, on the other side, the last eight years have been the best in recent memory. Since you are approaching the u. S. Economy from sort of an outside observer standpoint, what are your thoughts . Well, i think the economy and focussing on hawaii has been very strong. About 60 of our business is coming from the mainland u. S. And about 40 from the international locations. Probably about half of that 40 from japanese travelers. So we really see a nice balanced growth in our economy. And i think the National Economy continues to do well. Are there any policies beyond a simple rate hike that would make your business better . All bankers were looking for your option, but no, i think we work well with our regulated and dont see any issues with that. So business as sushl fine. Well bob, we wish you the best of luck today when you open for trade. Well keep our eye on the shares when they open. We appreciate your time this morning and congratulations again. Thank you very much. Appreciate it. Bob harrison from First Hawaiian bank. I think we should all be wearing leis this morning. Major setback for intel and plans for wearable tech. The full story when we come back. But whats it cost to modernize a School District . Whats Critical Thinking worth . A basketball costs about fourteen dollars. What does it cost to build a new sports arena . Whats team spirit worth . A Telecommunications System isnt cheap. Whats it worth to talk to your mom . Whats the value of one more tree . A forest . A walk in the woods . Whats the value of art . Art open to the public. The value of capital is to create, not just wealth, but things that matter. Morgan stanley. Capital creates change. Welcome back to squawk alley. Talk about too hot to handle, intel recalling all, repeat all of its basis peep smart watches because of overheating issues. Customers have been complaining of discomfort, blistering, even burns. The company tried to fix that with Software Updates but nothing solved the problem. Intel acquired the Company Behind the smart watch back in march of 2014 for a reported 100 million. The watch failed to capture even 1 of a wearable fitness tracking market in the two years it was on sale. And youre look at shares rig