caroline: welcome to award you miss -- to what is due. a beat across. second quarter revenue, 85.9 4 billion. a big beat ahead of the 33% increase in revenue. they come in at almost $90 billion for revenue. that is the fast as we have seen in six years in terms of growth.

a record second quarter. earnings-per-share, one dollar 40. while ahead of expectations. ipad revenue, 78 million. really standing ahead. services coming in strong. also seeing some growth in wearables. this is a company that continues to fire on all cylinders. joe: you said it. all cylinders. as i am looking through the list of headlines breaking down this report, every single line is a beat. not just a beat but aces substantial one -- but a substantial one. at some point, we have to have a show about how much the analysts are missing estimates. the companies are beating so much. the analyst community across somebody companies has been way too pessimistic. caroline: boosting quarterly dividend. we are expecting a boost of the buyback. $90 billion to existing buyback programs.

getting update on the return to shareholders. joe: for more on the apple numbers, let's welcome the managing director and senior research analyst at neuberger berman. it seems like it is a world in which we all do things on our phones and computers. very good for the company that makes phones and computers. >> this is a story of innovation and clearly what is critical and the company has demonstrated is very strong execution across product cycles. iphone, those are all healthy, good growth in wearables and services strong. a lot to like here overall. caroline: is it sustainable? is it the fact that we are buying ipads for our homeschooling, for home working. are we going to do that for post-covid life? >> i think there is clearly an element of benefit from work and learn from home. as we look over the next two or

three years, what is going to become more apparent is technology is becoming more critical to our lives. we are going to have product cycles. i think when we look at the innovative products, this integration of hardware, software and services to deliver a compelling user experience, that is what is going to be the -- what is going to be critical. there is still going to be volatility. we think it is an interesting story here. joe: i am looking again at some of these line items. mac revenue, 9.1 billion. a huge beat. at one point, there is this anxiety that apple is a one trick pony. that it is still dependent on one product. when you look at the ipad numbers crushing estimates, services growing fast, it looks

like there is an exhilaration that is broadening out across the product line. >> i think that is i think this is a continued story of reinvention. we remember the ipod from nearly two decades ago. the company is continuing to build, to innovate, cannibalize itself where appropriate. we see with products like the mac that apple is continuing to invest. the ipad has seen a resurgence ted i've -- or a resurgence. iphone remains healthy. i would emphasize even though the market remains competitive, the iphone base is continuing to grow. user satisfaction is high. those are the elements that set this company up to create additional shareholder value over the medium term. caroline: iphone 12 on sale.

27.9 billion dollars in terms of iphone sales. the reward to investors, authorizing an increase. is that how you want it to be spent in cash? >> the first thing is the company needs to invest in its business and nurture a culture of innovation, creativity, taking risks with products in new offerings. returning capital to shareholders is an appropriate use. i would underscore that the innovation and investment in the business is the most important thing. joe: before this evening's move, the company already had a market cap of two and a quarter trillion dollars. it is great to talk about how good the business is doing, but multiples theoretically matter.

how far can this run? we all know the company is operating at an incredibly high level. is there still value here? >> i think there is still value over the next couple of years. if we look at some of the new areas, and i will take wearables as an example, this is enabling apple to enter new markets like health care. we saw what they did with apple pay, which is continuing to see strong growth. its ability to broaden out, to nurture an attractive, healthy, vibrant ecosystem developers can build on top of, that is a critical piece of creating value. i do think there is further growth and there are more markets this company has an opportunity to expand into. caroline: managing director and senior research analyst at neuberger berman. thank you for spending time

breaking through these numbers. more big news from big tech. this time, it is about returning to the employee base. amazon saying it will boost pay by $.50 to three dollars per hour over 500,000 staff. they will be boosting from mid-may to early june and it is going to be investing over a lien in incremental -- over a billion for incremental pay. joe: jay powell said earlier he wanted to see wage growth. also breaking news from dow jones. verizon exploring the sale of media assets. those include aol and yahoo!. we will see more about what the plan is. probably not a huge surprise. more next. this is bloomberg. ♪

joe: ijoe: let's get a quick recap on those apple numbers that just came out. basically crushing on everything. q2 revenue, 89.5 a billion. all ahead of the 7.7 we estimates. every category. iphone, ipad, services, macs, all crushing estimates. stock up 3%. caroline: apple sales crushed wall street. other news on big tech to amazon saying they are hiring tens of thousand jobs in the u.s. boosting pay for three dollars an hour. amazon makes more than 100 billion per quarter in terms of revenue. it is investing in people. they are doing this sort of political gesturing as apple did as we start to hear president biden talk more about tax

increases, about the future corporations in particular. we are going to be turning to president biden who is set to unveil the details of his tax overhaul this evening. when he delivers his first address to the joint session of congress. >> he has come out where he has come out at 28%. we are willing to compromise. the answer to your question. we think this is a reasonable proposal. it is not as high as it was. 21% was unreasonably low. by the way, most business people will admit that. they were expecting it to go back up to something reasonable. we put forth one proposal. investments over eight years

paid for over a 14 year period, but there is compromise. if the republicans were to come back with a slightly lower rate, maybe we pay for it over a longer time. i'm sure we could find that common ground. >> your job as secretary of commerce among other things is to be a liaison with the business community. as you are a liaison, what did they say to you? they say i don't want a higher tax increase or i can live with something? >> some have been for it. microsoft, salesforce. a number of companies. they have come out for it in favor of the jobs package. others have said yes, there ought to be an increase in the corporate tax rate. everyone seems to agree it is wrong we have so many companies

who paid no taxes last year and we have to close loopholes that enable that. a lot of people, maybe they feel 28 is a bit too high. 26, 27 might be a better number. i have made dozens and dozens of phone calls to ceos across industries. they agree we need big investments in infrastructure. they applaud the president for calling for not just traditional infrastructure. they like the investments in research development, broadband, technology, semi conductors. they know that higher corporate taxes are a way to pay for it. >>'s talk about the individual increases part of the care bill. the president has said no tags increases for anybody who is making 400,000 or below. the people above that, they was he a tax increase that will go

as high as 39.6%. you expect that will be compromised as well or do you think the president is determined to get everything he is proposing? >> the president wants bipartisan action. if compromising is a part of that, it is what he wants to do. the only thing that is unacceptable is getting nothing done. we have to get things done. the capital gains, treating capital gains like ordinary income will be controversial. is there room for compromise? maybe. but, he feels we have to raise those taxes and we will compromise as we go. joe: you were listening to u.s. secretary of commerce gina raimondo. here to discuss the biden tax plan is the unison advisor and founder, bloomberg opinion columnist. thank you for joining us.

all kinds of social issues involved. also, people want to know what it means for the markets. from the eye level, what is your research telling you about changes in tax levels and what it means for us? >> you know, or has been a lot of debate about -- there has been a lot of debate. i wanted to see for myself what is the level at which companies actually pay taxes. we have a lot of data at bloomberg. i dug up all the data i could find, which is roughly data on 800 public companies. income and tax paying going back to 2011 tiered i was surprised by the results. what i found was that in 2018 when the corporate tax rate went down from 35% 21%, the amount of money companies paid in taxes

did not go down as much as you would think given the gap. and so it raises the question for me, what happened and what can we expect if we raise the corporate tax rate back up? the higher the tax rate, the greater the incentive for companies to start it effectively to find a loophole. i fear if we raise the tax rate back to 20% and we don't close the loopholes, we are now going to raise the revenue we think we are going to raise. we can talk about how high the rate needs to be to get to our revenue goal. caroline: joe manchin, the key democrat talking only about loopholes and getting people to pay what they already of and getting the -- already owe. what loopholes need to be the first and foremost focused on? >> there are so many.

i went to law school many decades ago. i took a class in corporate taxation. in those days, it was the -- the corporate tax code was a maze of holes and inception's. it was a gold mine for lawyers and accountants to go through . it is not going to be the kind of thing where you can point to one or two things you can easily close. it will take an overhaul of the tax code to accomplish this. that is a very heavy lift. it is easier to raise the corporate tax rate. you might be able to get to the same place. ultimately, a more tax -- a more complicated tax code is less transparent. it is viewed as being less fair. also, it is easier to get around. i think we would all be better off if we spend the time on the front end to make the tax code

simpler and i think -- by the way, it would also mean the corporate tax will be lower, which has some benefit its optic as well. -- optically as well. joe: what does it mean for you thinking about it as a portfolio manager? as an investor, we are going into this season where taxes across the board, whether we're talking about corporations, individuals, capital gains, it all seems to be on the table. it is all out there. lots of discussion. markets not anxious about it right now. is this a source of anxiety for any reason or is this a bad reason to be negative? >> i mean, it is funny. i am working on a piece for tomorrow. my editor might be mad at me for previewing it, but i will say where this comes into play as

what happens ultimately to corporate earnings. what impact does this have on corporate earnings over the next several years? the reason that is such an important question is i think investors do not realize the returns from the market during the last decade largely came from earnings growth. 10% of that came from earnings growth. with the valuations where they are, it is hard to expect them to expand farther. with dividend yields at 1.4%, the return has to come from earnings growth. if you're going to have a higher corporate tax rate, you will probably have lower earnings. that will have an impact on expected return and investors have to think about that. caroline: opinion on all things tax. we thank you so much. we will have special coverage of president biden's joint address to congress from bloomberg tv and radio beginning at 8:30 p.m..

you don't want to miss it. this is bloomberg. ♪

all right -- joe: the coins have been going up a lot lately. we know the story. mostly up into the right. let's talk more about this. general partner of the venture capital firm. going to focus on crypto. thank you for joining us if you go out and buy some coins lately, they have all been going out -- going straight up. from the vc perspective, where you going to be focusing on the corporate opportunities? >> thanks for having me on. you are absolutely right. there is a lot of speculation in the market right now. if you look underneath that, there are the strong equity companies that are being built to help crypto cross the chasm.

if you look at the landscape, you will see the majority of them are focused on the coin. our core -- our firm focuses on the equity companies. these companies are carving out a market worth trillions and they are chipping away at the market share. look to coinbase's listing. caroline: why are companies going this route rather than the coin route given coins seem to do well? >> institutions are here. there is a significant gap in the tooling. the solutions to those end up looking and feeling like traditional tech companies.

energy services, digital asset intermediaries, open finance and crypto adjacent companies, which are traditional tech companies that interact with crypto in a meaningful way. joe: you mentioned coinbase. fairly straightforward business models. other crypto companies doing things on custody and security. when you look at the ecosystem, what companies do you want to exist or what problems do you still need to be solved in this space? >> it runs the gamut. there is a blue ocean opportunity for everything from treasury management to payroll to taxes to authentication services. we are seeing an array of different opportunities, which is exactly what we are positioned to do. caroline: where is it being built globally? >> based on where our firm is

located, we are typically in san francisco. based on where we are located, the lion share of where we are seeing companies is in north america. we do make investments outside of the u.s. we are seeing founders from nigeria, latin america, and other places, the middle east. the reason is because crypto is not a local phenomenon. it is a global phenomenon. it does not know any borders and it was designed to operate that way. caroline: thank you. wish we had longer. the new fund. looking at coins. looking at apple stock after hours continuing to rally. an amazing set of numbers. joe: incredible set of numbers. i will be watching apple and the coins. i'm going to go back and read

the conference call transcript. super interesting about what they had to say about the semi conductor shortage. caroline: getting their second quarter production. extraordinary. chips is where it is all at. we will hear what comes out of the earnings calls. that is it for would you miss -- what did you mess. ♪ so you're a small business,

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emily: i'm emily chang in san francisco. this is bloomberg technology. coming up, apple sales crushed wall street estimates. second-quarter revenues surging. ceo tim cook saying apple in time -- and products helped users meet the moment. more on the numbers and