good morning it's 8:00 a.m. at facebook headquarters in menlo, california it's 11:00 a.m. on wall street "squawk alley" is live ♪ good friday morning. i'm carl quintanilla along with morgan brenen and jon fortt. apple is inching ever closer to becoming the first company to have a trillion dollar market

gap. closing today "new york times" best selling author scott galloway is here as well as tom lee. happy friday guys. trying to make sense why the sudden gain. is it about renewed confidence in their longevity, a different demographic coming to the shares is it about share scarcity with buffett in the buy back? what do you think it is? >> it's great to be a monopoly you can take apple music, which is a vastly inferior product and grow faster than spotify you have the best, wealthiest part what part of their business isn't firing right now >> are they in possession of that much monopoly power when

you have facebook pushing on similar areas? you can argue they're a monopoly, especially if you're in the senate. you have google pushing on music, devices, as we saw, at io this week. people have options. >> trading in your iphone -- >> i don't think apple is rising because it's a monopoly. as long as i can remember, analysts used to call this a hardware company i think now it's being branded as a company as services and services have a higher multiple. >> is it premature, though, to give services that much more valuation? >> well, i think if you look at, you know, top 100 brands, apple is a pretty well-liked brand they haven't abused their customers. they haven't violated trust. they've done a great job they know so much about you with

your phone they even know when you're charging it and they don't exploit it. >> we have this discussion post earnings that with services, the margin structure, there's more opacity and we're not getting as much as we used to is that going to change? does it have to change >> at the end of the day intangibles is increasingly representing what you buy in the s&p. 77% of the value of s&p is not tangible book value. it's the future brand, future earnings powering. and it's a question of how much become are you shifting to high service sales? but at the end of the day apple is a great brand and has a lot of trust. >> it makes me queaziy because the services are so closely tied to apple's hardware sales which, for the most part, means the iphone it's not as if they're going after services ecosystem in android, in large part sure, you could kind of get apple music on android

they're not really playing in that space is wall street being fooled into thinking there's this whole separate services opportunity when really it's just sort of ancillary revenue along with the iphone if that slows down eventually services does, too >> it's iphone and the seven dwarfs iphone is the golden goose here. they're able to tack on services on board the mothership is incredible how many products can you think of cost $270 to assemble and demand the price point it does you have a product that is extraordinary. the very nice thing about apple, it gets into these other businesses it's able to sustain and grow these other margins google or facebook get into hardware, their margins are going to decline

so, you know, it's hard to imagine that this company -- as long as the iphone, as you said, it stay where it is -- it doesn't even need to grow that much smart phone shipments down 1%, iphone was up 2% and they were able to withstand margins because of what tom was saying this is the strongest brand in the world. >> tom, apple shares, we need to move 7% higher until we hit that trillion dollar market cap mark. how much -- if and when that happens, how much of an impact is that to the broader market? or is this just more of a mental thing? >> it's 25%. we believe it will reach 40% in the next decade. so many businesses are being consumed by the technology sector absolutely if i had to say which companies should have the biggest market caps, it should be companies like apple and facebook. these are great brands and

great, well-run businesses. >> it's underowned, do you think, relatively speak iing, still? >> i don't know if it's underowned but i think it's getting rerated. >> we'll watch it as it tries to climb this hill. facebook, christopher ailman says, is like a dictatorship. >> as shareholders we have almost no say because zuckerberg just controls that thing this is an example of where while silicon valley loves to have one person in charge at times, because they think it's a star, we think there's huge drawbacks to have a single person in charge of the company and have control of it. >> ailsman has been a pretty persistent critic of the company. ownership structure has never been a mystery, right? eyes are wide open here, scott. >> it's true google did the same thing.

cablevision did the same thing with multiple classes of shares. in this instance i would argue this is an insult to dictators mark zuckerberg proposed a third class of stock last year fortunately his board rejected it if he sold his entire economic interest in the company he would still control a community more vast than christianity, more vast than the southern hemisphere plus india. we were all freaked out when castro took over a caribbean island nation of 11 million people but we have a college dropout that oversees a community greater than the southern hemisphere. >> you're equating zuckerberg to castro >> i think he's scarier. he has control of the content that over 1.2 billion people see. he cannot be removed from office we have to endure trump for six

years, putin could be dead in 10 to 20. in my view, the most dangerous person in the world is zuck. >> viewer also say scott failed to get in at 18. that's what this is about. >> i own the stock advertisers not leaving, nor are consumers. be clear, this is a dangerous situation. >> and i think the key point right there. we've had a number of investors come out and comment on facebook's share class structure, but i'm not hearing investors say that they're selling shares right now. >> it's a great business model and, you know, of course, they're doing other interesting things like now there's talk about a facebook coin coming out as they do block chain it's a company to watch. >> however much power facebook might have, it's a lot easier to get out of facebook than it is to get out of cuba. >> you don't buy that analogy. >> for me, google went public

about 15 years ago. >> yeah. >> facebook, six years ago if they have to just complain about this sort of thing, where does that leave the individual investor they've had plenty of time to try to push back against structures like this if anything, we've seen it move the other way with snap going public, with them having no voting rights whatsoever it seems if they're really serious about this, they should do something a bit more. >> this won't be a consumer-led revolution where do they go to express their outrage? facebook and instagram if you want to see who is lying, ask somebody if they deinstall facebook and instagram and anyone who raises their hand is probably lying it is a better business model for manufacturers to pour mercury into the river it is the job of our elected officials to look at these types of issues and decide whether a company like this should have greater regulation revolution will not be consumer led. people love instagram.

>> your call for government oversight regulation, scrutiny continues? that's not a new thing for you >> to have no lifeguards at the pool, just as tobacco was never able to make the connection between tobacco and cancer, nra can't make the connection between gun sales and mass shootings, facebook can never make a connection between safeguards and the risk to commonwealth 20% of gdp supposed to be thoughtful individual who put in place safeguards and occasionally throw a flag on the field. >> as facebook is now above cambridge analytica levels thanks for lighting up the phone lines again, scott galloway and tom lee. fresh news out of wynn today. contessa brewer has this. >> in the war of the wynns, elaine wynn versus wynn resorts,

elaine wynn to the board's chairman after the chairman and the board released a slue of back and forth letters, made them public over elaine wynn trying to meet with the three new directors newly appointed. here is elaine wynn's latest weather. your rejection of my perfectly reasonable request starts with the fiction that good governance requires that i meet with the entire board and the ceo at the same time. she only wanted to meet with the three women. you then use that as the basis for saying such a meeting could take place only after the annual meeting. that's on wednesday. another fiction because it's clear the entire board will be in town the night before the meeting. there's this tug of war going on, especially over legacy director appointed directly by steve wynn and has no business being on the board, much less on the commission investigating the misconduct allegations she's trying to get shareholders to side with her and not

re-elect him the shareholder meeting is on wednesday and there's a lot of back and forth today leading up to that meeting, guys. >> thank you, contessa contessa brewer for us. to today's washington agenda, president trump hoeflder hosting a round table with the ceos of auto companies and is expected to give a speech on lowering drug prices bertha coombs has what to expect on that speech first to eamon javers. >> reporter: we expect some of the most powerful ceos in the automotive industry to come to this gate to my left, to your right here we're expecting mary barra and other ceos for foreign automakers to come here. i'm told by white house officials that one thing that the president wants to hear is what do the ceos think they want

the-mile-per-hour gallon standards to actually be it could be an awkward meeting for some of these ceos who are caught bet wichwixt and in betw. the automakers ultimately what they want is one set of standards between both california and washington, d.c they don't want to be caught in that political crossfire the question is, will the president push them to lobby on his behalf and with the state of california to lower california emission standards? as we await those arrivals we'll ask those ceos what they sxkt to happen in this meeting that is scheduled to start in just half hour's time. >> indeed california elects to go its own way now to bertha, with the president's speech to lower drug prices bertha >> patients first, the aim to help medicare patients like

77-year-old willie dawson. her out of pocket is $150 a month on top of the $140 in premium for her medicare part d plan some months she ends up having to skip other bills to make ends meet all told the president will outline 50 different initialitie initiatives, increasing generic competition, steeper price cuts stopping short of the government itself negotiating, cutting medicare part d cost sharing requiring plans to pass out those rebates they get from drugmakers and target list prices, limiting price increases to less than inflation for high-cost drugs like chemo infusions administered by physicians secretary azar says it's all about bringing transparency to stmt. >> how do the financial arrangements work, who are they collecting money from and list

price to net price dynamic those incentives are driving it. the pharma companies, we'll get after gaming of products, practices that harm the generic industry, that keep us from establishing a competitive industry here. >> ambitious agenda, the devil is in the details. so far, analysts say, broad outlines appear manageable from the industry we've heard a lot of this telegraphed before, morgan. >> bertha, thank you bertha coombs. >> still ahead you may not be willing to go to outer space with elon musk but would you be willing to try his tunnel for free and ibm cloud, how big blue is competing with other big dogs like amazoinhan tt space. more squawk alley is coming up now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines.

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it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. internal document shows the company has created a team within its alexa unit called health and wellness, to make alexa more useful on health-related issues, potential areas they might target include managing diabetes, aging and care for new mothers and infants. we just had andy jasse on before they are building new artificial intelligence tools into the cloud.

all of this is beginning to come together for lots of different ways in the various industries that they are targeting with the cloud and ai. >> absolutely. there was the initiative with buffett and chase. here it is maybe it enters the consumer's lives through the echo device in your living room. >> i'm not sure i want to have a chat about my personal medical issues with alexa. >> adoption challenges are a separate story. >> ten years ago, ibm was leading the charge in cloud and artificial intelligence. everybody remembers watson competing on jeopardy. it's been that long. earlier this week we spoke, as i was just saying, with amazon web services ceo andy jasse. how he says they're handling it.

>> it's growing like crazy if you look at companies like cerna, expedia, ptrrks lots of machine learning is being done companies have so much data, jon. they don't have great ways of getting at that data and getting the gems out of it and the predictions to change their customer experiences. >> coming up, we speak to ibm's cloud platform chief about how oug blue plans to take on the cld competition. "squawk alley" is back after this

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welcome back to "squawk alley. tech stocks getting a boost.

nasdaq hovering near the flat line but still having its best week since march 9th dropbox reporting its best earnings a partner with bessemer venture. gentlemen, thank you for joining us today. >> good morning. >> mark, i want to start with you. first quarterly earnings from drop box as a public company yesterday. better than expected results you even lifted your price target on the stock. why is it down 3% today? >> look, first quarter expectations for any public company, we can talk about spotify or drop box, they're going to be super high they just weren't met expectations, correction i don't read a lot into it it's trading at nine times sales. i think what the market is saying or assuming is that there will be a positive inflection point in terms of that revenue growth, unchanged 20% year over

year lot of good metrics generated by the business very good solid results. that's why you would want to own the stock. we're on the sidelines on valuation. we like the fundamental story. >> byron you're not invested in dropbox but have over 100 cloud investments, given what's been pretty positive marketplace for ipos of cloud conditions recently do you expect more of those investments to go public >> i do. we saw 10 tapped ipos in q1 already. the backlog is quite strong and the buy side is clearly receptive. if market conditions hold, we could have a fantastic run for the balance of 2018 here. >> mark, what's the most important number out of dropbox? was it the addition of the half a million paid users or was it something else what should investors really be looking at here? >> three numbers, jon. revenue growth year over year,

very solid secondly is the number of new customers that 500,000 and third is the rpu revenue per account. as they're seeing more adoption of that, that should cause it to rise and that could be the revenue growth acceleration and a bunch of these initiatives they announced with sales force, adobe and google a lot of fuel in that dropbox engine somewhere along the way that should cause reaction el ration in revenue growth. to think about the opportunity here, wonderful thing about dropbox, it's almost internety the reason i'm covering it, they've been able to show viral growth without the heavy sales presence that most companies seem to need and they're able to migrate well into the workplace individuals bring dropbox into the business and eventually

businesses adopt them. it's a nice feature of the business model. >> byron, we had andy jassy on earlier this week. he said that the opportunities in cloud could be in the trillions of dollars there are a number of companies out there, both public and private and certainly seems competition is getting fiercer and fiercer. is there room for everyone to exist? >> if you think of the tech sector broadly, it is the driver of the economy right now software is the largest investment category within tech and cloud is the growth engine within software. i think the short answer to your question is, absolutely, yes amazon has done a phenomenal job for the industry you have ibm coming up shortly thereafter, which i think you'll hear their story of how they're playing for number four behind ibm, amazon -- sorry, behind amazon, what google cloud is doing and what microsoft azure is doing you have a battle for fourth place in the infrastructure layer and application of

platform companies going into the market there's about 51 pure played power companies today and there are hundreds of high-value private companies on the bubble to go out and impacting the next wave of cloud innovation. >> mark, a couple of weeks ago, box was trading down in the $23 range. now it's up above 27 bucks a share. i thank that's all-time highs, seemingly driven, as if people had never heard of it before what does that say about the way investors are looking at cloud, that we've had this kind of effect at this point in time >> well, you know, i'll kind of echo some of the things byron has been saying and add one thing. looking at the numbers that have been printed -- or reported by ais google cloud, we're seeing an inflection point up across the industry

accelerating revenue growth, amazon, azure as well and google cloud at a 4 billion run rate. we're seeing this across the industry we're second or third inning but not deep innings into adoption of cloud and large institutions, financial institutions we're seeing finally move over to cloud adoption we've seen major wins by these companies, go daddy was a major win by aws a week ago. we're seeing more of these announcements coming up and a rising tide is inflecting up that will help a lot of boats and maybe box as well. >> gentlemen, we'll leave it there, thank you for joining us today. >> our pleasure. >> thank you let's get the european close with seema at hq. >> carl, a lucky number for european stocks, extending their weekly win streak to seven for the first time in more than three years. since the streak began in late march the broader market is up 7% some of the major markets doing

even better. london's ftse with an 11% gain, german dax up 9% ahead of france speaking to analysts this morning, dovish remarks from ecb and bank of england, decline in the euro and uk pound giving a lift to exporters, higher oil prices for big energy stocks and increase in m & a activity health care, technology. we'll move on to individual stocks moving higher today, arcelormittal, biggest steel maker posting better than expected quarterly results help in steel prices and iron ore shipments. though they said they need to address trade. european pharma, ahead of the announcement at 2:00 p.m. eastern, pharma stocks are

trading lower led by roche. >> seema mody, thank you very much cloud has been a major driver for ibm we'll talk to the man leading that division and how they plan to stand their ground against competitors like amazon and google take a look at the dow longest win streak scein november "squawk alley" is back in a minute ♪ feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

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hello, everyone. i'm sue herera the u.s. postal service said it lost $1.3 billion in the first quarter as strong gains in package deliveries were outweighed by a decline in mail volume and the cost of health care and pension obligations that is nearly triple the $562 million loss in the same period a year ago >> overseas, iranians took to the streets after prayers to condemn the u.s. withdrawal from the nuclear deal protesters voicing their anger, burning pictures of president trump and setting u.s. flags on fire and then stomping on them. former president george w. bush accepting the atlantic council's distinguished international leadership award for his work in the arena of global health. he said the u.s. cannot lead the world while avoiding the world's problems. >> very important for our fellow citizens to remember these words

from winston churchill america is indispensable for the world and the dangers of isolation loom the price of greatness is responsibilities. >> you are up-to-date. that's the news update this hour back downtown to "squawk alley." jon, back to you. >> thank you, sue. ibm was leading the charge in the fields of artificial intelligence and cloud everyone remembers watson's two-day tournament on jeopardy in which it beat ken jennings. since then, ibm is working to close the gap. joining us now at post nine is david kenny, senior vice president for ibm watson and cloud platform great to have you with us. >> great to be with you, swraun. >> lot of conversation around ai on top of cloud this week.

>> yes. >> you've been having commercials and talking about ai for a long time. microsoft, google, amazon all talking about this how is ibm going to use watson to accelerate growth in cloud in this environment >> we can always do better the core cloud is among the big players. people may be surprised about that part of the business, looking at the whole thing and ai and watson are certainly a key part of it you're right, jeopardy was seven years ago. a lot has happened since then. ibms contribution to the field is making it work for businesses, whether that be oncologists, radiologists, lawyers, accountants it's a very different ai than an ai that would power a canister in the home. >> a lot of people don't understand infrastructure as a service, platform as a service,

and the different revenue and profit models behind each. how do you explain where ibm's relative strength is among those areas and how it affects the way the revenue and profit are going to break down and grow >> certainly when you sell things as a service, there's a subscription that ramps up over time quite nicely. most of my life i've run subscription businesses. it's taking the stack and moving it to awe subscription business. where ibm is differentiated is the focus on the core enterprise to build a cloud service solution the way you would on a web service platform is one thing as a commodity to take all your applications, everything you do in a bank, airline, retailer and be able to transition out that's what ibm uniquely does. you bring your whole company to the cloud. >> in light of that, you go in, meet with the business, meet with the company and make the pitch and say come work with us and not with google or microsoft

or amazon or one of the other competitors, what does that pitch actually look like what do you say to them? >> mostly we focus on what they're trying to do the cloud is kind of like dial tone it's the basics. what's interesting is all the things you can build on it what do you want to do if you're american airlines to change the way you serve your customers and how do we help you modernize the whole thing? we give them a real cloud journey that brings all their pieces to the cloud. >> to morgan's point the value added from big blue is the totality of the cloud experience you argue your rivals don't offer 100% of that envelope? >> it's not -- we're in most of the world's companies today so our value is actually above that, as it has always been, to actually help them have a vision on how the whole thing can move and how they can integrate that.

our ability to integrate and educate is a big part of that. >> you're on the board of best buy, i believe. >> i am. >> chances are they won't go all in with aws. i'm just guessing. >> yeah. >> so ibm is probably in a pretty decent position versus maybe microsoft, maybe google as a business like that that's very large, looks to move more of its operations to the cloud. what do you think will be critical in terms of capabilities and timing of what you have to offer? >> i'm not going to talk about best buy that's for who better -- but generally. >> generally. >> generally, right? all those companies have decades of history which have to be modernized with a private cloud and connected to a private cloud we have a lot of advances in technologies that advance those how to modernize their estate, put new applications on the public cloud, how those connect. it will keep going from there.

we're just beginning to see edge computing. all of our connectors between public and private will connect between public and edge. ibm is really the best place to go to on how the whole thing connects. >> microsoft is doing azure sphere, being able to put chips into devices like video cameras, the internet of things that connect to the cloud, can secure them and add other services. amazon, andy jassy was talking about adding other things. ibm has a great legacy in chips. >> yes, we do. >> how much are you working on that how much should we see from ibm that deepens the ability to have connections to the cloud when it comes to iot >> $6 billion r & d budget, a lot of that is going to deciding the next infrastructure, including chips and all the hardware up that makes a big difference our history makes a big difference we're in the early days of how

cloud works. it's far more sophisticated than people think than the last kind of decade. we look ahead, a lot of our hardware and systems investments are very much looking at the ibm cloud as their destination. >> all right david kenny, at ibm in charge of watson and cloud platform. lots more conversations looking forward to having with you. >> looking forward to t thank you. elon musk posting this time lapse video on his instagram account showing the first leg of the boring company's tunnel in lncht a. the tunnel is almost done and the boring company will be offering free rides to the public in a few months, pending regulatory approvals separately, spacex is planning to launch the newest and most powerful version of its reusable falcon 9 market this afternoon after the original launch was scrubbed less than a minute before blastoff yesterday due to a technical issue.

this would be the maiden voyage f final version of falcon 9 will be able to launch ten times without scheduled maintenance and up to 100 times over the course of each vehicle's lifetime musk also saying he plans to demo two or bital flights of the same rocket booster in the same day by next year and again reiterated a vision for rocket launches as routine as airline flights. all eyes will be on spacex later today when that rescheduled launch is expected to happen. >> i think this week has been stunning, both in ai and cloud, mobility, space. this loop video. robotics a lot has happen this had week it's been really interesting. >> it's been an extremely busy week from a tech perspective. >> boring. >> boom, boom. >> i'll be here for a few more minutes. when we come back, robots in

action how machines are changing the way major companies dobusiness but first, rick santelli, what are you watching today >> you know, i'm watching how stubborn interest rates are. thinking about the long-term implications of all of that debt taking more interest in our debt, literally. we'll have to take much more with regard to interest expense rising our debt. we'll talk about all that afr e eak.te

i'm scott wapner top of the hour, march to a trillion, that is what apple is on after the stock goes for its longest winning streak in eight years today. plus, getting ahead of the president's speech and one analyst says don't be a bonehead and miss the big surge about to happen in tesla shares. he'll join us for the call of the day that takes place in 15 minutes, noon eastern. carl, see you then. >> scott, thanks. cme group in the meantime to check in with rick santelli and get the santelli exchange. hey, rick. >> hi, carl. i like fridays and sometimes i like to go big on fridays. we'll have a macroview friday. i love auctions because i love to bring you, the viewer, into what really is an exciting area of the fixed income market many countries have historic

amounts of debt but yet we issue it rather frequently and we find there's plenty of buyers for it. although one of the biggest buyers for it are central bankers and maybe at some point they will be less aggressive buyers therein lies one of the rubs there's a lot of rubs when it comes to what's going on in the world with debt and how many agencies of governments are aiding and abetting the growing debt levels. think about japan. think about the european union not only do they, of course, have debt, a lot of it owned by their central bank but they have negative interest rates and no way that i can see, especially japan, to normalize or come up with a terminal rate like our fed is trying to do to give themselves any insurance to get into a downturn. i specifically bring up japan because next week may be their first quarter of negative growth in two years and this comes at a time where during their growth period they never even thought, never even dawned on them that maybe they

should start to normalize. so i woke up thinking of senator alan simpson he is a member of a committee for a responsible federal budget and they issued something based on office budget data. this is a pie chart. we can see if you look at the big boys here, it's net interest, social security, medicare these three alone are on automated pilot. medicaid not nearly as big we always talk about defense yes, it's grown. but still represents 5%. this is basically over the next 8 to 10 years, where our budget is going to look like. where the growth in the debt comes from but the point of this is simple. other mandatory, which is 7%, just so people understand, there's been a lot of talk about

snap in food stamps and i'm sure there's some waste there but this is still a small number this lonely 6% right here is what we try to do. this is going to balance the budget it's insane. this is the only thing that could almost remotely save us from this so hopefully at some point when we get better growth we will start tackling the pie before we'll all be slicing it so thin you'll be able to see through it like a piece of string carl and the gang, back to you. >> pie, rick santelli, thank you. as more jobs becomin automated, aditi roy is in california she's not a robot but is looking at some of them. >> hi, jon that's right here is how this works i throw in an apple into the

bin. the machine uses vacuum technology to grasp it it's all part of uc berkeley's auto lab research center on robots we'll hear from one of the most highly anticipated speakers at highly anticipated speakers. the ceo of boston dynamics the softbank owned company just released really interesting video of its robot taking a jaunt around the neighborhood and also jumping over a log. it also released video of its four-legg four-legged bot, the spot mini running around offices, dodging obstacles and going up and downstairs jeff bezos is a big fan, the amazon ceo tweeted a picture captioned taking my new dog for a walk while they might seem like they would be at home in an amazon fulfillment center, we caught up with a start-up that's focused on the fulfillment dhl is one of their cliernts they make robots that can be

autonomous, can get up and running in eight hours, which is very little time in that world it can navigate around obstacles and also work alongside humans and lift very heavy cartons. let's listen to its ceo. >> we can take something from assembly area in the manufacturing plant and put it onto a conveyer. we have part of the robot that can connect to a cart and move a cart around. so when you put a whole bunch of packages onto a cart, the robot can come pick up the cart. >> all of this, of course, inevitably brings up the whole issue of job displacement. a recent study found that in 60% of occupations, about a third of work activities can be automated. back to you. >> fascinating stuff, adiaditi. >> when we and back, a fairly fairnotes investor claims elizabeth holmes was, quote, bullied into submission.

why he thinks the ceo did a great job. >> take a look at the s&p, trying to get over critical levels here, right around 2726 "squawk alley" is back in a minute mr. elliot, what's your wifi password?

wifi? wifi's ordinary. basic. do i look basic? nope! which is why i have xfinity xfi. it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. draper defending theranos founder and developer elizabeth holmes listen to what he said >> i feel that we have taken

down another great icon. this woman was -- came to me when she was 19 years old, and she said i'm going to transform health care as we know it. and she got bullied into submission this was a start-up, and it was a great vision, and it was a great technology she's going up against some very powerful people in the drug companies, the ama, the fda. all these people, she's transforming health care somebody goes in and tries to transform health care, they're going to get attacked in a lot of different directions, and she was. and this is one of the cases where the entrepreneur was defeated >> draper was an early investor in theranos. he said the company could have been a big winner and still feels great about backing holmes i'm sure the "wall street journal" and john kerry, who helped uncover some of their behavior would agree >> this is jaw-dropping. i was watching "closing bell,"

as i always o, and the idea he would defend this. she didn't have this, she didn't have the technology she said she had. it really makes me wonder from the vc community's perspective how truthful and straightforward do founders have to be exactly what they have when they're offering it to the market, especially in health care. >> bottom line, s.e.c. said this company committed massive fraud. i would imagine what other investors think, i can't imagine they share the same sentiments >> also had thoughts about what it takes to go public these days and how much more difficult it is given the costs and regulations. we'll hear from draper next time, i'm sure, as well. >> "squawk alley" will be right back, as the dow holds on to gains. it's up 53 points. stay with us sir. get domo. it'll connect us to everything that's going on in the company. get it for jean who's always cold. for the sales team, it and the warehouse crew. give us the data we need. in one place, anywhere we need it. help us do our jobs better.

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this easy-to-understand guide will answer some of your questions and help you find the aarp medicare supplement plan that's right for you. dow had a big run. s&p as well, thanks in part to apple and the earnings parade is going to continue next week with home depot, macy's, walmart, nordstrom, deere, and others >> a strong week for tech, a strong week for nasdaq, despite sitting at the flat line today the biggest loser in the nasdaq 100 today is semantic, down almost 35% on news of an

internal audit >> you know who's winning? facebook near all-time highs. getting close to that $190 a share mark just shrugging off all of those issues seems so long ago. scrolled up in the timeline. >> that's right. refresh, refresh have a good weekend. we'll see you on monday. let's get to the judge and the half >> welcome to "the halftime report." i'm scott wapner our top trade, the apple streak. the stock goes for its tenth consecutive up day would be the longest run in eight years. what that means to your money and the broader markets. with us, jim, josh, jon, sarat here as well apple, that stock getting closer to a trillion dollars in market cap. doc, this thing is recharged, and it doesn't seem to want to slow down, all beit a little blp let's call it flat, but