Hitting record highs on their quarterly results. Amazon says sales in Web Services Division up 43 year on year. Microsoft says that they grew in the same period and alphabet beat consensus. Despite backlash from advertisers on controversial content on youtube in recent weeks. Guys, this is like a feast of information that we got in the past 18 hours. Overarching narratives or lessons were seeing right now . Overarching narrative is that the economy is headed into where these companies are both technologywise, consumer habitswise in a great position and theyre now reaping the benefits of many, many, many years of investing. I think another message is that this cloud movement, giants like amazon to some extend, microsoft, google wants to be in that pact eating traditional Enterprise Data center now in the way that smartphones ate into the pc business. You see that in intels results. Data center group didnt perform the way analysts hoped. Intel sort of hinted at that a quarter ago. The street didnt fully embrace it. The Cloud Business and data center was strong but that traditional business of companies individually buying one off servers not what it once because. We see it have an impact across the board. They have grown their market cap in the last eight years equivalent of gdp of south korea and they are defying a lot of big numbers. Amazon comped up 20 four years straight. As they get bigger, their growth has not decelerate. It was microsoft left out of the pact but facebook is coming next week. Thats a big one too. Goldman has a report out today this debate on whether or not the market is being led at least the nasdaq being led by a handful of giants and overshadowing anything else any other company does. They say relative to history, the concentration, the density is not what it was in 2000. No. The market itself is very expensive across all sectors. If you look at technology relative to the rest of the market, talking to big Institutional Investor saying when i look at google at 20 times forward earnings and a Cereal Company at 20 times forward earnings with far lower growth potential, thats an easy call for me. More money into google. One has activist investors and some say the Cereal Company is more attractive right now. Everything is expensive. There was a study out this week that argued if you look at valuation were somewhere in the 1997 range where you still had a couple years to go before things truly went you have another two to three years of extraordinary returns and we throw in the towel and use new economic model and proactivity paradigm shift. You dont think were there . I have no idea. I always like to talk my book. Ive been in cash for a year now. And a bullish call a couple years ago. Way too early. Absolutely. If you look at valuation, its more widespread. More concentrated in 1990s and it did go higher but median stock on a lot of different measures when you sicyclically adjust, its different. Whats different is large tech is probably more healthy than ive ever seen. You talk about you cant even count all of the horses. There is five, maybe six. Look at facebook. Intel is looking good. Microsoft. Google. Amazon. Apple which people have been trying to leave for dead but its just doing too well overall. Apple trading at 17 times earnings. Nothing in the 1990s was trading at that. Theyre all competing with each other. Amazon wants in on services now which is googles business. Amazon is there. Maybe the market goes down overall. But each of them has a strong core business and theyre aggressively expanding because they know they need to. If you work in tech, you have to be happy about that. I wonder if heavy competition could bring some pain, for example, could you see a price war in cloud as everyone aggressively tries to get in. I am ready for the announcement that were cutting prices by twothirds in cloud and wipe out profit. You have to be used to that with amazon. They have the monopoly on ecommerce but walmart. Com starting to see results competing aggressively. Any sense that could be a threat at some point . Walmart buying jet. Com was a mid life crisis hair plug. It was a company panicking trying to look younger. Biggest writedown in retail history. These four companies only competition is regulators. They are pulling away. They wrap themselves in a blanket. No one can catch them or slow them down except someone in brussels or washington. We look at a chart like this, this made the rounds earlier today looking at Retail Stocks over ten years and how amazon just left them all in the dust. Someone said its a shame the other retailers didnt start their own Cloud Business, which is true, right . The disruption of retail is real, but its not like kohls went into web services. Amazon is the anomaly for being able to do something that is so far afield from its core business and make it successful, and if they didnt have the longterm view they take where they are willing to lose their shirts for five to seven years, they never would have been able to do it. Thats like saying its a shame newspapers didnt start on social network. If they have the tools. Jwhen you have cheap capital you can play in traffic and be a threat to any industry. Amazon is going to spend 5. 5 billion on original content. 2. 5 billion at hbo. Only outspent by netflix which will now lose 2 billion in cash because they have to outspend amazon. Amazon has the allies at the end of the war, amazon has 38 gallons of gasoline. Theyll win every war with sheer brute force. When you speak, its like youre reading something thats bold declarations. Carl cant tweet that stuff fast enough. The dispute between qualcomm and apple heating up. Chip maker cutting its profit forecast saying it doesnt expect patent license revenue. I spoke with qualcomms ceo earlier on this issue. Take a listen. Or not. We dont have the sound right now. This is remarkable because qualcomm already knew this was an issue. They expected some revenue from apple through the contract manufacturers on this. Take a listen now to what steve had to say. I think were probably not going to engage in a battle of press, but i think we have a very strong case and as we start to respond people will hear a different narrative. I dont know if this is the narrative that he had in mind. Apple meanwhile has a statement as well saying weve been trying to reach a Licensing Agreement with qualcomm for more than five years but they have refused to negotiate fair terms. This comes down to the fact that qualcomm gets a percentage of every smartphone, selling price of every smartphone that goes out and they argue, hey, this is no good without the technology that we built in for broadband. If you think about it. They have Camera Technology and all kinds of technology through the founphones. Snap couldnt exist. The ecommerce surge wouldnt be happening if not for core fundamental technologies. Apple says were not having it. Doesnt make sense. We built the technology. We shouldnt have to pay you so much. At the same time, this has been the arrangement for a long time. Not just in this area of technology. Apple wants to tear it down. Clear why they would want to but these are really big impacts when a company the size of apple can basically make a half billion dollar in revenue disappear. I love when a ceo states hes not going to wage in a battle in the press on cnbc. Theres two sides to this transaction. I think its unreasonable that apple charges me 700 bucks for a smartphone. Apple knew about this agreement. This goes back to how powerful they are. They decided to say that we are so powerful that we can basically wave the middle finger at existing contracts and you come out on the wrong end of this. I dont understand their argume argument. What happened in this business a lot of people thought wouldnt happen including me, i thought that it would get commoditized. I will pay for the next one and apple is going to suppliers saying you know that profit you have . We want a big chunk of it or well find a way to replace you. Theyre playing chicken right now. I wonder if this escalation, jon, has implications for any of the other chip makers . Are they winners at all because of this . Ive been waiting for something similar to play out perhaps in cloud. You have intel right now that is traditionally just been this data center. They destroyed rivals. When you got these big cloud players that are increasingly controlling so much of the market, at what point do they have Pricing Power . On facebook either you agree to my terms or ill go with amd cluster instead of buying intel chips for my cloud. Intel says well able to innovate fast enough through acquisitions and other things that were doing that our performance will be so much better they wont be able to do that. Well see in three to five years if you end up with the same kind of qualcomm apple dynamic perhaps playing out in the cloud data center. And henry tapped into the key point here. Most Profitable Company in history because they achieved something no Company Achieved in history, premium priced product and low cost leader. This is margins of ferrari with production volumes of toyota. So much power in terms of Pricing Power but commands the premium price. I dont think weve seen that in the history of business. Do you think regulators tolerate it . In this administration. People think its great to own a ferrari dealership and work for facebook and own real estate in San Francisco and everyone is out of work sitting on their couch with a big tv and a phone greater than power of apollo 13, i think theyll break these companies up. Your product is so great that people ought to have it. If your product is that great, you get to do that. You have a tiny percentage of the overall market. Thats the remarkable thing. They sucked profit out of the entire market into their small market share. Thats apple. Google has 90 market share. Amazon is soaking up 50 of online growth and 25 of retail growth and they can go into any industry and crush the incumbent. I think theres a counter to all of these points. A lot of people believe that the next step will be convincing consumers you dont need any other retailer. 100 . Time will tell if he can go that far. Guys, that was great. Good to see you both. When we come back, an exclusive with gopros nick woodman. Ceo of one of the hottest ipos day is going to join us at post nine and later on, Academy Award winning director ron howard will talk to us about his new series on the life of einstein. Thats next. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. A used car,. 95, you can trade with a clear advantage. Show me top new artist. [ applause ] [ laughing ] show me top male artist. My whole belieber fan group. Its not a competition, but if it was i won. Xfinity x1 lets you access the greatest library of Billboard Music awards moments simply by using your voice. And thank you so much. The Billboard Music awards. Sunday, may 21st. 8, 7 central. Only on abc. Gopro shares are taking a dive this morning down 5 off the companys First QuarterEarnings Report last night. Josh lipton has more from San Francisco. Good morning, josh. Good morning. Were joined by gopro Ceo Nick Woodman on the call. Nick, thank you for joining us. Thank you, josh. Happy to be here. I want to hop right into camera shipments here, nick. You shipped around 740,000 cameras in the quarter. Thats down about 50 from just two years ago. Isnt that a clear sign of market saturation here, nick . No. The market is far from saturated. When we look at data that shows us whether a customer of a hero 5 camera which is connected to see if they have other gopro cameras as well, we see that very large percentage of customers are new to gopro. Not owned a gopro before which would indicate were bringing new customers into our community and what we see in terms of unit volumes is a year ago in q1, we had heavily discounted go pros in the market to clear the channel and in 2016 we had too much inventory in the channel. In the First Quarter we sold through that inventory at retailers so you had significant higher sell through of lower priced product that we discontinue and shifted toward our premium line of products and thats contributing toward our goal of returning to profitability. Netnet, this is all a positive. You tick off this good news but the stock it down today. Its down 40 in the past six months. I can only see one buy rating left on the name. Whats the fundamental part of this story that the street is just missing on gopro . Well, you know, truth be told, we are executing a turnaround. We have had several rough quarters previously. We executed extremely well on the First Quarter. Two restructurings. Im sorry. I got to interrupt you here. Let me some news breaking. Let me toss back to sarah here. Sorry for interrupting. We want to get to President Trump right now in the roosevelt room of the white house signing a new executive order on energy and offshore drilling. Lets listen. He will go down as a truly great vice president. Many thanks to secretaries wilbur ross and ryan zinke. Very proud of the job theyre doing. Were also pleased to welcome many members of congress and Energy Industry leaders in the white house. I want to get them immediately back over there because i know theyre voting on lots of different things. We cant spend too much time talking about drilling in the arctic, right . We are opening it up. This is great day for American Workers and families and today were unleashing American Energy and clearing the way for thousands and thousands of high paying American Energy jobs. Our country is blessed with incredible Natural Resources including abundant offshore oil and natural gas reserves. But the federal government has kept 94 of these offshore areas closed for exploration and production and when they say closed, they mean closed. This deprives our country of potentially thousands and thousands of jobs and billions of dollars in wealth. I pledged to take action and today i am keeping that promise. This executive order starts the process of opening offshore areas to job creating energy exploration. It reverses the previous administrations arctic leasing ban so hear that. It reverses the previous administrations arctic leasing ban and directs secretary zinke to allow responsible development of offshore areas that will bring revenue to our treasury and jobs to our workers. [ applause ] in addition, secretary zinke will reconsider burdensome regulations that slow job creation. Finally, this order will enable better Scientific Study of our offshore resources and research that has blocked everything from happening for far too long. You notice it doesnt get blocked for other nations. It only gets blocked for our nation. Renewed offshore Energy Production will reduce the cost of energy, create countless new jobs and make america more secure and far more energy independent. This action is another historic step toward future development and future with with a real future i have to say thats a real future, with greater prosperity and security for all americans, which is what we want. Im very proud of the people standing behind me. Im far less proud of the people standing in front of me. The media. This is a very important day. I want to congratulate wilbur and ryan and all of the people that worked so hard to get this put together so quickly. Its going to lead to a lot of great wealth for our country and a lot of great jobs for our country. God bless america. Thank you very much. [ applause [ applause ] big question. Who is going to get this pen . I dont know. [ applause ] whats made this job harder than you thought . Moving awfully well. Getting a lot of things done. I dont think theres ever been anything like this. Its a false standard, 100 days, i dont think anybody has done what weve been able to do in 100 days. Were very happy. One day before his 100th day in office, thats the president signing that eo on offshore energy. Brings his executive orders signed to, i believe, 30, which is above obamas 19 in his 100 days and bushs 11. Eamon javers, offshore energy or Congress Voting to extend funding, or a Health Care Vote that will not come tomorrow, theres a lot to watch today. Absolutely. You heard nbcs Peter Alexander there at the end asking the president what is it about the presidency that was harder than you expected . The president not really answering that. That was a reference to an interview he gave yesterday to reuters in which he said that the job of president of the United States was harder than he expected. Working harder than he did in his previous job and that surprised him. That comment got a lot of attention around washington as people try to pars exactly what the president meant by that. And what it might mean for the rest of his presidency. This is a white house focused on the offshore drilling issue. They say that the revenue to the federal government from leasing in outer Continental Shelf has fallen 80 from 18 billion in 2008 to 2. 8 billion in 2016. They would like to change that around. Were going to have to watch and see whether oil and Gas Companies feel like these leases are worth really aggressively pursuing given where the price of oil is right now. The administration feels this review is a first step in that direction, carl. Its also not the first time that were seeing an executive order from President Trump aggr