"squawk alley" is live. ♪ welcome to a "squawk alley." joining thus morning in san francisco rbs capital markets lead internet market analyst mark mahaney and kate mitchell. good morning, guys. our top story will be shares of amazon under heavy selling pressure, they posted a major earnings miss. third quarter numbers 52 cents, well below 78. wall street was expecting. amazon says opening new warehouses, slashing stripping times caused costs to soar in the past three months.

revenue did top estimates. one bright spot was web services, growing sales at 55%. we did talk to andy jassy earlier this month. >> business is growing fast. it's an $11 billion run rate business trailing 12 months basis growing 58% year over year. the business is growing by leaps and bounds. we're trying to enable enterprises and companies run all their applications on top of our infrastructure platform and it turns out that database is an area they care a lot about and for the last 30 years they've had relatively little freedom. >> pretty amazing, jon. gene munster at piper today estimates aws is closing in on 40% of net profits on a normalized basis. incredible. >> right. with amazon, you never know exactly what the profitability of the rest of the business is going to be. so who know where is that goes from here.

but, yeah, the growth there strong, amazon's top-line strong as well. the real casualty of this quarter seems to be kind of the santa claus-type expectations perhaps about this level of profitability continuing to grow like amazon wasn't going to start plunging a lot of investment into places like india, where they're doubling down again. you know, i don't know that's necessarily a bad thing with a company like amazon based on this growth story and they've shown they can do it. >> kate, what you think of investment at this point. they've proven over and over again they can pull it off. >> they can, and they've made that sort of pact with their shareholders. they've invest ong scale and efficiency. they've been too subject to the fulfillment costs going up, they don't want to be reliant on u.p.s. and fed ex, they're building out fulfillment centers, automating it, take advantage of that. if i were their competitors, i would be worried.

aelectric san jose sharks we love it whoever's tried it, i think there's more to come. this is an opportunity to grow. >> this is a company that has always had high capital expenditures, mark, and it's telegraphed its investment plan to investors. no part of this quarter was secret? terms of what it's investing in. so is this a buying opportunity for investors here? you finally get a 4% pullback in a stock that is basically owning a secular change in an o-line industry. >> we refer to this as a buy on the blip moment not a buy on the dip, off 4%, off an all-time high, ut ice not a great buying opportunity. it's an okay one. this company is investing aggressively with three new investment arias. one is india and it seems over the last few years they've gained pole position, they're the market leader, so it seems like a smart investment. second is video content, which is a little odd from amazon, but what they're finding internally is people who engage more with

amazon on video spend more, buy more retail products. it it's a customer acquisition, customer retention tool. third is distribution. this company underinvested last year. that's why they gougt got caught in the december quarter last year, the holiday season, with not enough capacity. they're trying not to repeat that mistake, trying to get ahead of it this year. seems like a smart investment to us. we continue to like the stock. >> you call it a blip, mark. this is the first real violation of the 50-day since march. do we make anything of that? >> yeah. yes. it's the first violation of the 50-day since march. we've had times when we've been super aggressive on amazon stock. this isn't one of those times. you're a long-term holder, there's no change to the thesis. i don't think there's any change to the long-term growth and profitability profile of the company. they're making elective investmentings that are short term in nature, not india but video and fulfillment centers. i don't view this as a dramatic change in the long-term

trajectory. fourth quarter, watch out for two catalysts, aws reinvent, and then kate mentioned it, they've got the it gift of the holiday season on their hands with these i electr alexa echo doc devices. >> caught, should investors be worried about amazon fresh? after mark's question on the call last night, talking about how they've launched in north virginia, delaware, maryland, chica chicago, but costs and profitability continue to be a challenge in that area. the if they go big and fresh, that could be another one. >> it could be and it's a market that's not as proven for them. how they take advantage of it, because there is competition locally for, that remains to be seen. they're smart about -- their investments are spread across a larger footprint and they have a great brand and they're focused on current-day delivery. i think it's reasonable place for them to expand. i'm curious for it to come to san francisco.

>> earnings mover this morning will be alphabet, the world's second biggest company by market value beating on the top and the bottom lines announcing lit buy back $7 billion worth of stock, cost per click fell 11%. strength continues to come from mobile and the android operating system which supports roughly 87% of the global smartphone market according to idc. think talk about rising marketing expenses as they try to get the pixel off the ground. how do you weigh that versus what appears to be pretty disciplined cost management from porat? >> you know, we were a little surprised, carl, to be honest. i thought margins in the core business would be up year over year as they've been the last four quarters. the fact they've ticked down surprised us a little bit so they're probably spending more on marketing for the pixel phones and their kind of alexa equivalent devices, google at home, google assistant products. whether that works or not, i don't know. google has not had great success

as a product company in the past. the core advertising business, the reason we're bulls on the stock remains so consistent. this is now 19 quarters in a row of 20% year over year growth. for that reason and almost that reason alone this remains along for us. it's our number-two pick in the space. >> it did announce a $7 billion buyback, kate, and you wonder if the stock would be performing this well just on the fundamentals of the results that they announced. 11% decline in cost per clicks, but it seemed to be buyback that really let people off last night. >> it's a message to the street about their confidence and business, number one. two, when you look through to their earnings, that shift to mobile, their investments in mobile first, text, other things, they've learned to dominate that. it's a lower margin business but they're killing it on volume. that map, it's my most used app i'll admit including getting down here this morning. and it's really taken people and the clicks that come through for that have taken over. i think ruth is also showing she's balancing out new

investments with their core business in a much more predictable way. i think they've really settled down and they're consistent at delivery. >> mark, what is the take-away about video, give than youtube kept coming up on the call for google, alphabet last night, just the strength of true view, that impact on paid clicks and cost per click but also we see volume shutting down, hear about amazon spending money on video not to make money on it in and of itself but to fill out an ecosyst ecosystem. what's the message to investors about monetizing video? >> well, i think, jon, the biggest picture point possible is we're going through the videofication of the internet. it's only going to increase. zuckerberg said the same thing on facebook earnings call last quarter. i expect him to repeat that next week when they present their earnings. what was interesting about youtube, we think that's about a $10 billion revenue run right now. they haven't disclosed that. they talk about the new ad units

called bumper ads, six, seven second video -- >> like vibe. >> yes. like fine. >> what i've seen is the old phrase was google it if you wanted to know something. now something happens, somebody speex politics of late, youtube it. you can find it quickly. it's become the go-to. >> mark, what are your aspirations or hopes for unplugged this new video service, youtube service? and sort of how does that collide with a week in which we got both apple's tv as they're now calling it and apple's television product along with directv now? >> so, look, i think with google and youtube and the playoff video, they're going to experiment for a while. why shouldn't they? they have a billion people who go to their site.

that core advertising business is doing well for them. i don't think they should steer too far afield from that. they have a subscription service and that's showing almost no traction. they're not great in marketing the service and i'm not sure there's a lot of content on there for pretty much a premium price. stick with youtube as an asset. doing a lot of good tweaks and innovations on there and it has become the tv of anybody under 40. you're spending more time on youtube than you are on linear tv except for cnbc. >> we are getting an opening trade on black line at the nasdaq. speaking of the cloud, mentioning amazon web services. i'll take a look how that's doing today. we have a cushion at the nyse. up 44%, which is going to stand in stark contrast to gulf. we'll talk later about that in the hour. what a day. kate, mark, thanks very much. good to talk to you both. >> thanks for having us. >> thank you. a check on the markets which

have been in positive territory after that gdp number for the third quarter surprise to the upside. the dow is um 59 points, the s&p up 6 and the nasdaq up just about 9 points. that third quarter gdp 2.9% coming in much better than expected. we're also watching some pharma and biotech stocks under heavy selling pressure today. cardinal health and mckeszen hitting 52 week lows, mckesson on its pace for its worst. on the flip side, shares of mastercard trading at all-time highs. the company posting third-quarter profit growth of 21% as it attracts new customers. stock up 3%. they did say, carl, that consumer sentiment around brexit was still concerning. but they are eyeing some new tech partnerships with samsung pay and android pay early next year. >> when we come back, apple unveiling a new line of laptops

yesterday. the new touch bar getting good reviews. it's what's inside that counts. then jon caught up with shaquille o'neal asking him everything from investing to the world series. you'll never guess what shaq said. later, big news for vine users. after three years the company is shutting down the service. we'll talk to them about that. dow up 59. ♪ there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be.

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apple has just announced new mac book pros using amd graphic chips for 15-inch model. our next guest makes these chips and other components. let's get a look at what these graphics chips mean for the new devices. lisa su is the ceo of advanced micro devices. thanks for join us. >> great to be here. >> i know that between, you know, computer and graphics chips, that's going to be a big thrust, heading in to 2017. you've got radeon, great visibility. how important is that build-in for you, that win versus nvidia

and how exactly do you accelerate that business versus intel in 2017 with zen that's been kind of moribund for a while? >> absolutely. so, first of all, we're extremely proud to be in a new mac book pro. it's a beautiful system. you saw it unveiled yesterday. it's really with our newportous graphics chips co-engineered with apple to ensure we could get all of that performance in that very, very thin and high-performance form factor. and it is an opportunity for us to accelerate. we've grown this year and it's been really good and we've continued to accelerate that into 2017. >> huh are we going to know that you're getting the oems, the pc makers to build? when is that moment you'll be able to unveil here's how many commitments we have, get all the benchmarks? >> you know, the key for us is always a multiple-year strategy and a multiple-year strategy means great products, great customer relationships, and doing solid engineering. so we've made tremendous

progress this year. our graphics business has grown significantly. next year we'll release zen in the first half of 2017. we're working very closely with customers right now and it's all about putting out great products and great systems in both high-performance desk tops, servers, and cloud as well as notebook form factors. >> some analysts have raised questions about the release cycle for zen being in early 2017, potentially missing the holiday season. is that a big deal? >> it rally isn't. we look at product cycles all the time, and it's really not what happens this quarter or next quarter. it's really about what we're going to put out over the next couple of years. this year is going to be a big holiday for us with our game consoles, microsoft and sony have just announced a couple of new products, apple with the mac book pro, and next year we're going into the year of zen and high-performance computing. it is a multiple-year strategy. >> yesterday's presentation was amazing but for some advanced stuff, right, stuff the layman probably isn't going to do, i wonder if you think the prosumer

will continue to outpace the consumer market. >> when you look at growth over the next few years it really is about how we enable everyone to do these incredible content creation and, you know, viewing applications. so i do think the prosumer market offers growth. it's great to see the innovation apple is bringing out there. it is super cool. >> lisa, you know how wall street is. off great year then people start worrying about the comps for next year. you mentioned holiday, the updated consoles, which is exciting. how do you talk then about next year give than zen is a multiyear ramp, you know, you're just pulling back the veil the beginning of the year, it will take a while for those systems with it to actually roll out? what should people expect as far as the comps for 2017? i think first of all we're very pleased with the year we've had this year. it's all been about revenue growth for us on the top of good product execution and good customer momentum. i think as we go into next year it's really all about execution

of our products. you know, we feel very good about the cadence that we're on. it is about a multiple-year growth strategy. and from our viewpoint we're right on schedule to what we expected. >> the nxp qualcomm deal, massive in the chip industry. i know they make different chips, more about internet of things than autos, but does it change the landscape? what shakes out in your sector once that deal closes? >> you know, clearly there's been a lot of consolidation in the semiconductor business, you know, this year and it is a big consolidation year. but i would say what's important for all of us as chip companies is to keep the innovation going. you know, putting out new products, figuring out how we connect these complex systems, you know, for us it's about connecting the cloud to the user and bringing new visualization experiences. so i think if we focus on innovation as an industry, we're going to make a lot of progress. >> any update on server chips and the potential for arm to get

a foothold there? >> we are very focused on the server and the data center market. we think cloud is absolutely important and critical as we grow. we're going to focus on zen in the first half of 2017 with our launch. and i know that arm has some stuff coming out as well. >> lisa, thanks for joining us here. always great to have you at post 9. lisa su, ceo of amd. >> good to be here. >> we're rolling out our power 100 index and amd is one of the 100 companies chose frn the russell 1000. still to come, after buying it for a reported $30 million, twitter is shutting down vine. the internet is outraged. we'll get rico's kara swisher's take in less than ten minutes. first i spoke with nba legend shaquille o'neal. we have his take on investing a whole lot more. >> you can take it as a prediction or which one you're rooting for. cubs or indians? >> yankees.

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judgmenting for appetites of cloud-based ipos, it continues to be strong, up 47% on the opening trade of blackline. that's bl. 8.6 million shares, priced at 17. that was at the high end of the range of 16 to 17. and then another nearly 50% on top of that. we have the ceo coming up later on this hour and a first on cnbc interview. >> apple reporting better than expected revenue, now trading above 800 bucks a share, an increase of nearly 1,500% since

its ipo. i talked to one of most massive sflors the world, basketball hall of famer shaquille o'neal, who was an owner of google's stock before it went public. take a listen. >> my thinking is, you know, on the investment side, if it's going to change the world, it'll probably work. you know, when i was in l.a. one day, i met with some guys and, you know, they mentioned the name google and a search engine. i was like, you know what, this is going to work, this is future, i invested in that, nvrlsed in vitamin water. like i said earlier, the things i endorse are things that i believe in and products that i use. >> not sure he held on to that stock, though. i also chatted with the big aristotle about the longevity of the shaq brand and his recent deal with abg, which is buying the right to 51% of his endor endorsement earnings. abg represents elvis presley, marilyn monroe, and michael jackson. >> good thing about the names that you just mentioned is their brands live on forever. and, you know, hopefully, you

know, the shaq brand will be a brand that can live on forever. i thought it was a great deal for me to deal with abg. you know, born and raised in new jersey, went to college in louisiana, where my marketing professor told me that big guys don't sell. i wanted to prove him wrong and i've been proving him wrong ever since. the reason i did the deal with abg is because i wanted the name of the shaq brand to live on forever. when you speak about the shaq brand, i want to be known as the ambassador and i think i've done that. >> we also touched on declining ratings for live sports, the role of police in america, and he's studying for the lsat. shaq told me he doesn't really want to be a lawyer. he just wants to own a law firm, guys pip asked him what kind of law? he was like all kinds of law, sports law, criminal law. he knows the building he wants the sign to be on and he wants to get a good score on the lsat. >> that is an industry i think it is safe to say tough business but also not close to getting disrupted anytime soon. the law's going to be around far

while. >> maybe paralegals need to worry, not the boss. looking forward to the commercials for shaq law firm. >> have you been injured in an accident? >> awesome stuff. really wide-ranging conversation there. you guys covered it all. jon and shaq. coming up on "squawk alley," video killed the radio star and twitter is killing the vine star, sparking social media outrage all over the internet. if you watched our show last week, you knew the end was already near. listen to what social media star jake paul had to say. >> vine was super, super popular a couple of years ago and it's on its like dwindling edges along with twitter, but they're still both very powerful platforms. it's just about translating your content onto other platforms. now like instagram and facebook and snapchat are super popular, and so i just create content on those platforms and grow an audience there.

- we had to think a little more seriously about saving money for the future and for the kids and for their college funds. we thought, "well this airbnb is actually a great way to pay those extra bills." - every bit of extra money helps these days. we have a retirement fund of our own and i take a draw on it. i don't want to take too much either because i don't know what life is going to bring to me. i get to keep 97% of my rental price. the extra income i get from airbnb has been a huge help. - airbnb has helped me so much financially especially starting my own business. san francisco is such an expensive place to live. the way people work and travel is changing.

the guests are now able to stay longer, stay five days, enjoy another day in san francisco and spend more money in the neighborhood. my guests are able to extend their stay and spend more money on activities and restaurants. - the extra income that i get from airbnb has been a huge impact in my life. i'm melissa lee. a heart stopping moment for republican vice presidential candidate mike pence. his campaign plane skidded after a bumpy landing in pouring rain at laguardia, the 737 coming to a halt partially off the tarmac and on the grass at the new york domestic hub-. no one husband hurt. the faa is investigating. air strikes hit a taliban commander's home in the east of the country. reports of just two to four people were killed and dozens injured. the taliban is blaming american

and afghan forces for the attack. >> the u.s. coast guard seized a self-propelled semisubmersible vessel with more than two tons of cocaine on board. the drugs with worth more than $73 million. five suspected smugglers have been arrested. egyptians have a new way to let off steam in a scream room. each visitor gets ten minutes to go for it. when their voice gets hoarse, the soundproof room contains a drum kit. good to have backups. back to "squawk alley." >> thanks, melissa. let's count down to the close in the uk and across europe, about a minute late. seema is at hq. >> another mixed session for stocks in europe with europe's broader market finishing the week down about 1%. there is one thought that is percolating among investors. and that's the disconnect between the economic data and earnings. recent data pointing to an improvement in europe's growth story.

today's reading, confidence in the euro area jumping to its highest level in 2016 yet earnings from the like of abm bev reporting lower than expected third-quarter profit. beer sales declined specifically in the second largest market, brazil. this also comes after heineken cut its outlook. you can take a look at pharma, denmark's know vnovo nordisk do. but sanofi rising after they lifted its guidance. also in focus are the financials, ubs posting a jump in pretax profit helped by domestic business and cost cuts. here's what its ceo said today. >> if you look at q-32015 for the industry was a very tough quarter and we had a strong quarter so, our comparison year-on-year is a little bit misleading. >> lastly, russia has been in focus for a variety of different reasons. its role in syria, allegations

it's meddling in u.s. politics. but experts say in order to understand president putin's operative, one must take sbooth into account the economic challenges russia has been facing. its benchmark rate was held steady at 10% by the central bank today. inflation has slowly been coming down but still a major concern for policymakers over there. russian shares, though, have really been a standout, um 31% year to date helped by the stabilization in oil prices as well as the move the the russian ruble. kayla, back to you. >> thanks so much, seema. so long, vine. the six-second video sharing app bought by twitter in 2012 for a reported $30 million announcing it's shutting down in the coming months. another twist in the tale of twitter. joining us now is rico executive editor kara swisher. kara, is there something twitter could have and should have done to stem the decline in usage or was this bound to happen? >> i don't know. be snapchat, i guess? something.

it's another example of twitter having a product that was really early and interesting to this area of live streaming essentially. and sort of blowing the execution. they also have periscope, which is getting i think shellacked by facebook live. again, a great product, an amazing entrepreneur running it, same thing with vine. and they just didn't have what it takes to make it into a really popular product. it is snapchat? a lot of ways if you think about it or could have been. they lost all the people on it that became vine stars, moved on elsewhere to better platforms and that's what people do. again, it's a story of execution, which i think is the issue around this company almost completely at this point. >> could scale have helped it? the fact that twitter only has 300-odd million users or has over the course of the life of vine versus facebook having 1.3 billion and snapchat having more than twitter as well. >> sure. >> share users on a platform. is that enough to keep something asflooif well, you know,

snapchat started with nothing. i mean, again, it's not an unsimilar product. it's just a product that has been -- you know, that was sort of to wayside, didn't get as much attention. there's so much going on, so many varying managers and different people that came and left. you know, i think we can all agree that twitter -- there's something really wonderful about the twitter products. they really are. and so the question is why can't they get it out there? and i do believe that it's, again, an issue of execution, of consistency, of focusing and really backing things. one thing that facebook is known for is backing things and keeping going through difficult times. >> kara, i wonder if there's something in maybe mistaking a gimmick for product uniqueness and quality. 140 characters, sure, feel how you will about it. vine was six seconds and stayed six seconds. it wasn't like it was easy to stitch things together like snapchat did. they didn't e strovl product. instagram did longer videos. youtube's are super long.

did they try so hard to be different that they became irrelevant? >> i think it's just not evolving the product. that is about execution. i think that's been one of big stories of twitter is not evolving the product. people love a lot of the product. people who are on the platform, ill's obviously relevant in this election, it's the center of so much activity, political activity right now. and the question is how do you evolve product to make it something? now, other people have done it with their products and so the question is why can't they do this, and who can do it better or should it be bought again or whatever. and i think it's going to stumble along. i don't like comparing it to yahoo! because i think it's a much better product, a much more dynamic product that they had. but you see flashes of yahoo! here as they had some of the greatest products at yahoo! and then they blew it. you see them in pieces of other places that then took them and made them into major things. so, you know, it's sort of the expression the plains are covered with the bodies of pioneers, you know? that's what it teals like here

in a lot of ways. >> it's easy to say they haven't evolved the product but every time they made attempts to change things, i'm thinking of the enhanced time line, there was an outcry. rip twitter, how dare you remove my raw feed? >> yeah. >> there is reason to be nervous about changes things people have demonstratively taken to. >> i don't care. who cares? they get paid a lot of money. this is a company that should decide what its destiny is and work through it. mark zuckerberg has had plenty of those, trust me, and some he backtracked on, others he kept pushing through with news feed and others. you know -- >> messenger. >> you have to trust your instinct around product. >> messenger. i don't know. when people don't like things i do, i don't care. i just do them. >> i remember several years ago i said, wow, this mark zuckerberg guy is different is during one of those big pitch fork moments with the use wrers he said we thought about it, we

listened, looked at the data and saw all the mad people are wrong basically and we're going to go ahead and do what we decided to do. they had data. does twitter have the right data and the people looking at them who can determine what the product should be? >> probably. probably they do. i think probably the issue is it's a very reactive company. it's always been a reactive company. it's always responding. it's always talking. you know, i really like tease people. like it's not as if these people are not talented and jack dorsey is indeed a visionary. he created two amazing products, square and twitter. you cannot deny this. i think the question is this group of people not able to coalesce in some way that pushes a product through. if you look at snapchat, which didn't exist when twitter was at its peak, you have to give it to evanspiegel, who's evolving and doing different things, discovery didn't work, he changed it and shismted it pap lot to do with his execution and tastes and it's a really hard

thing to do. at this point under this much scrutiny it's incredibly hard for the twitter executive team to pull this off, especially because of the scrutiny, not just media but investor scrutiny, there's activist shareholders lushi ilurking aro. everything they do is questioned. it difficult to be successful in that environment. >> is this the only product on the chopping block or is this the first of many? >> you know, i think they'll keep periscope, but, you know, what is it? where is it going? how does it fit in? everyone else has integrated these products, like instagram has a similar like product in the thing and they are features, obviously. so, you know, i think they're going to sell off assets. we wrote that two months ago about selling off various assets, maybe mopub, a bunch of others. i forget which we mentioned. the question is -- again, it's like yahoo! they bought tumblr, what did

they do with it? nothing. it sits there. it's a wonderful product. they bought and assembled things but didn't assemble them quite right and now they're pulling them apart. i think they have to get to the heart of what they are and just stick with it, cut costs so that it rationalizes itself and just put their heads down and make a great product, and that's -- i don't know what else they can do other than that. >> proxy season is just around the corner. we will see. kara swisher, always good to see you. have a great weekend. >> thanks a lot. when we come back, cloud software firm blackline making its market debut today. looks pretty good. up 48%. we'll talk with the ceo in a first on cnbc interview. later on it may sound like something out of science fiction, but what doesn't from uber these days? why it says an unmanned flying drone may be your driver in ten years. i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses,

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coming up, a surprising take on televised sports. citron's andrew left will be with us atalking about his next target. see you in about 15. >> sound good, scott. thank you. blackline opening for trade at the nasdaq today. joining us is the ceo, theres tucker. after what is apparently by all accounts an impressive debut. good morning. >> good morning and thanks for

having me on. >> it's rare that we see a new issue have so mch riding on the pricing and what the proceeds will allow you to do with long-term debt. it was a great price, right? >> it was. but it's one stop along the way. now we have to perform. >> what are you going to do with the proceeds? >> we will certainly pay off the debt and then we will going forward use it to grow. >> you want to walk investors and viewers through where you fit in the cloud story, which is the strongest story going right now in terms of ipos? >> absolutely. you know, blackline helps companies modernize their accounting and finance processes. it's a very little-known secret that mostly people are still using spreadsheets far lot of things, and we help them out of that. >> therese, we had brad smith from intuit on a few days ago and of course he focuses on the

small, very small and midsized market. how broad do you expect your focus to be in terms of customer acquisition? are you going to focus on just the largest companies? do you see diversification into smaller companies along the way? >> we see terrific demand both from what we define as midmarket companies that are 50 million and up in revenue all the way up to the largest companies in the world like coca-cola or costco or kimberly-clark. so we actually have some companies that have three user, some that have 3,000. >> those companies that you mentioned are legends in the american market and they're no strangers to finance and accounting. they've had to be doing it for decades. what is it about blackline that sold them at the highest levels? >> you know, our products are really designed to add value to the business users. the accountants. and i think that's why they decided that, you know, going with us and the cloud and trusting us was very important.

>> there's an increasing move for consolidation in the cloud. it looks like a lot of the bigger players, whether it is amazon, microsoft, the likes of oracle trying to buy up specific pieces, applications in the cloud. do you have a specific argument for why a company like blackline should remain depth and why customers should deal with multiple different cloud vendors? >> yes. first off, blackline already recognizes that many companies have multiple erps. we serve as a switzerland. we're a very neutral central workspace for where accountants can go every day. and since we interface with more than 30 different systems, we make it very easy to integrate whether they're using erps in the cloud or on prem. >> a lot of people wearing pink socks. you've got pink hair this morning. is that permanent? >> it is permanent.

i've actually had pink hair for about two years now. i like it. >> and is that related at all to race for the cure, breast cancer research? >> you know, it's not. i guess it could be given family history, but it actually started out as a marketing joke and i liked it so much i kept it. >> well, disruptive marketing works a lot. we've seen that. and you certainly will be remembered not just for your hair but for the action and the price today. congratulations, therese. thanks for coming on. >> thanks so much. >> therese tucker the founder and ceo of blackline. still to come, first driverless cars. uber says in ten years you might be hailing an unmanned drone for your commute to work. grace santi, what asa rick santelli, what are you watching today? >> all the excitement. the second biggest factor for excitement down here may have been today's gdp number. the first number, the biggest excitement factor down here is

probably wrigley field. but what we're going to discuss is the big number, 227. tell you after the break. audi pilotless vehicles have conquered highways, mountains, and racetracks. and now much of that same advanced technology is found in the audi a4. with one notable difference... ♪ the highly advanced audi a4, with available traffic jam assist. ♪ what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers)

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snoo the ride-hailing service releasing a 97-page white paper revealing its network of unmanned flying vehicles all connected its mobile app. according to uber the aircrafts could be ready in five years and an initial network could be in place as soon as 2020. here's the confusing thing to me about this. unmanned flying vehicle, plane. you still need a backup pilot, right? planes already have autopilot. what are they trying to do here? i'm not getting into a plane with a bunch of people and nobody knows how to fly if something goes wrong. i don't know about you guys. >> i wouldn't like to do that. an unmanned aircraft. >> you don't dispute the improvement in a.i. as a regulator of traffic. you need to spend more time with musk. >> that's great and all, but when i hit turbulence with two pilots in the cockpit now, i get nervous. forget about unmanned. anyway --

>> yeah. >> let's get to the cme group this morning and check in with rick santelli and get the santelli exchange. hey, rick. >> hey, carl. thank you. you know, it's interesting to try to figure out where will a ten-year note close this year? i think i have a pretty good idea. 227 was the big number. 227 was also -- let's show a chart that starts actually not on december 2015 but december 1st of 2015, and i want you to take a good look at that chart because there's a lot of factor on that particular chart that give us a good clue that there's a high probability we're going to close unchanged on the year. all right. let's go to the white board. see that blue? that's the same chart you were just looking at. let's go through it quickly. we started a big move on the 29th with the yield of 230. okay? and at the same time bund yields were at 70 basis points down to ten. we move from 230 to 166.

the actual high for the year was the first trading day, which was the 4th of january at 2024, but i digress. right off the bat we have the 166 low here. we have the 230. the average, of course, is 198. remember 198. also, very important. a double bottom. if you recall, back in july of 2012 we hit 138. in july of this year we hit 136. double bottom. that means double bottoms are huge if you are a technician that's been following the fixed income market. from that point forward things get very orderly from a technical perspective. let's go back in time. okay? we're hovering in the mid 180s. that was the last significant top in may of this year. 186. the previous one was 192. in april. then 1 98 on the 11th. the 198, of course, matches. all this is very important. ultimately with that double bottom we're going to challenge the first one. probably challenge the seconds

one. we are going to in my opinion, and then the third one at 198. here's the real kicker. okay? everybody wants to put a spin on the numbers. it's election season. i get it. i don't like it, but i get it. there's more than an election spin here. i think it's going to being a december to remember at 227 for another reason. i fully suspect that the fed is going to raise rates. the spin out there is things are getting good. 2.9. rah, rah, rah. wages going up. they're tightening for good reasons. i think that's a bit of mularckey. i urge you to go back six, seven years and look at all the quarters that we've had that are as high or higher than the 2.9 quarter we had here. it's about sustainability. i think the fed is going to be forced to raise rates. the spin will be better and really highlight the better numbers. all in all if i had to wager right now, i would say unchanged on the years. the december repeat of a fed tightening could be the ultimate catalyst to get us there.

carl, back to you. everybody is going to be watching tonight. here's scott wafner. the judge will be at wrigley field. >> then we're going to cubby bear. i'll tell you that. rick santelli in chicago. excited for the cubs. fly the w. a lot more on that in a moment.

>> hoping to change the way people eat, but apparently it's making some sick at the same time. a company halting sales of its main product as part of an investigation into why users were getting sick after ingesting many of its products. the company claims all of its tests came back negative in less than 0.1% reported sometimes. they hope to have revamped products back on sale early next year, but for a product, john, that was named after soylent green. perhaps a little bit of an auspicious title. >> i mean, i don't personally get this whole trend in silicon valley instead of just drinking this instead of eating meals. hopefully that's going out of style. if if you are an alphabet or google, the meals are free anyway. just be healthy, ladies and gentlemen. >> if all you have to do is go

upstairs to get nutrients -- >> first you won't fly an unmanned drone, and now you won't drink soylent. >> we don't even know you anymore. >> i eat food askand trust peop to get me around. i'm weird. >> we continue to watch not just the broad gains in the markets. dow up 58. this ipo action, what a contrast between an ipo related to golf here, which is essentially flat, and then over at the nasdaq the cloud blacklined. we just talked to the ceo. up 50% after pricing at the high end of the range and said a lot about where things are interested right now in terms of new issues. >> or at least how well folks in finance are pricing things perhaps, kayla. >> or how well they can gauge investor demand after a drought of ipo's. zto earlier this week too. >> we want to share some exciting news for our squawk alley family. one of our senior producers, shannon semenz gave birth to a

baby girl. carol wallis bucher. eight pounds, 22 inches. a big congrats where, we miss you here, but that is a gorgeous looking girl. zoo looks like she has a set of lungs too. >> that's it for "squawk alley." have a good weekend. see you monday. let's get over to the judge and "the half." >> welcome to "the halftime report." health scare. why several stocks in the drug space today are sinking this hour. what it means for your money. with us for the hour today, jim levinthal, josh brown, jon najarian, and the president of luke capital. good to have you here today. >> thanks, scott. >> let's begin with the wreckage in the health care space. the etf's that track that sector down. health care down 3% this week alone. it is one of the wakest prfs sectors where, i don't know what you do with these names, but you have mes