good morning. it's 8:00 a.m. at disney headquarters in burbank, california and it's 11:00 a.m. on wall street and "squawk alley" is live. ♪ ♪ ♪ good friday morning. welcome to "squawk alley." i'm carl quintanilla with morgan brennan and jon fortt. busy morning obviously. we'll start with disney. still up almost 9%. shares are up following the unveiling of it's 699 streaming

service on pace for the best day in a decade, the best week in over four years. favors sat down with disney chairman bob iger and we've been listening to sound all morning long. david joins us from l.a. with even more. hi, david. >> reporter: hi, carl. we've got even more for you. long investor day meeting in which they presented great deliverable content that will be part of the disney plus service and gave a lot of information in terms of their expectations when it comes to what it will all cost and what their hopes or for actually garnering subscribers, we call it great subspecitations, 60 to 90 million is what they're looking for by 2024 by the end of it for the disney plus service. espn plus which has been in the marketplace for a little less than a year and has 2 million subs, they see it between 8 and 12,000,040 to 60 million subs of hulu which is again around 25 million right now. disney, of course, controls 60% of hulu with the close of the

fox acquisition and, perhaps, will increase its stake there if at&t sells it's 10% or even if comcast chooses to part with its stake as well. one that we haven't gotten to yet this morning involves windowing, the idea that, well, you've got all these major motion pictures that you produce at marvel or pixar or at disney studios as well, is it possible that you will compress the time that they're available in the movie theater to make them available on the disney plus platform or do you just stick with the current way things are done here's what bob iger had to say. >> this is really not about windowing to us because, frankly, those other windows are really working for us. it was mentioned earlier that our studios had two years where they've had over $7 billion in global box office. by the way, that's only on about 10 movies a year. so that's really working for us, and if it's not broken, we don't

want to try to fix it. i don't really think for us there would be any more money in it if we would to put those movies on the service a little earlier. don't forget in that window after it's available, these movies will be available for a form of rental or download or purchase physical copies -- >> you were asked toward the end of the presentation today, you'll have three services in the marketplace obviously, disney plus which we've been talking about here, hulu and espn plus which already is in the market now do you run the risk particularly when it comes to hulu and disney plus both operating at scale of confusion amongst the consumer or the different interfaces? i just wonder if there's a way to consolidate that offering that perhaps is more efficient for you. >> i think they'll be a way to consolidate the creation, meaning the technology and -- both the user interface, data

storage, all those things across those businesses but we still have a minority shareholder in hulu and so until, you know, we work our way through that relationship, i think you can basically figure that hulu's going to be run pretty much as it's been run. >> you've got hulu still standing on its own. there's the projections, 40 to 60 million subs is what they're saying, a very significant growth phase ahead they see for hulu and disney plus starting with zero right now getting to as much as 90 million within the next five years. it's not going to come cheaply, but today investors seem very much willing to look past the near term earnings delusion on free cash flow diminution to what they will believe will be a new opportunity for growth at this company as it makes this big move that we've talked about for so long in to distributing directly to its consumer base virtually all of the content that it will be creating in the

future. >> david, i'm still trying to parse iger's answer to your question about disney plus and hulu because i've got that same question. it seems like there are certain content especially the simpsons which could belong in either/or both and he was maybe implying that the only reason why they don't bring them closer together is because they've still got just 60% of hulu >> yeah, you know, it's obviously they're all suffering losses along with their partners but do you want to put all of your good content on hulu if you're disney when others will benefit from it namely comcast and at&t or do you want to let it go it's own path for now until you have complete control. that's part of the issue. there is perhaps some segmentation in terms of people who like hulu and want that edgier programming available there than is on disney plus. i think a lot of it does come to the ownership structure.

it is an issue to have two of these separate platforms in the marketplace, different interfaces that you are both -- that you're still controlling, both of them. >> david, great stuff. more to come from david faber later. let's bring in michael nathanson. he joins us on the phone with his reaction to investor day yesterday. michael, how should we be thinking about disney differently than we did the day before yesterday >> carl, i'll tell you, i think for me the aggressive price point which they started really speaks tons about their commitment. they're going to suffer more losses because they're starting out in a low price and also the sheer volume of content they're committing to in the first couple years. you have the simpsons. they bought back movie rights from other people. the idea is bigger on the content side and the pricing is lower. i think people have to look out now, three/four years about how

big this opportunity can be. i thought they did a really good job of getting you to look past those losses and thinking about the long-term asset. i thought it was a really smart strategy how they laid it all out to you. >> yeah, i realize they don't expect to be profitable until 2024, a lot of detail there, but are you surprised to see the stock up 9%? it's a hugemove for this name. >> i thought it would be up 4% or 5%. i actually did. i think people were positive about the investor day but they were nervous that the hype about it wouldn't be justified, right? i thought it was a good day. it was really positive. the vibe in the room -- you guys heard there was a gasp when they put up their price point, the room gasped. when they put up their targets for subscribers, people also did a double take. i thought it was really positive energy, but i'm surprised, you know i'm really pleased because for years we've been telling people

that disney can do this, they have the assets. in a day you had a real change in sentiment and you see it today. this is the beginning of what's going to be a relook by investors what disney could be three or four years from now. >> michael, given that, what are the implications for apple and anybody else, no matter how much money they've got who might want to freshly enter this space without a big catalog and charge any kind of a monthly price that's significant for their content. can they do it now >> that's a great question. you mentioned the key asset which is library, right? i think -- i think investors don't realize the value of libraries and we've been pointing that out as well and saying look at what drove netflix in the beginning. it wasn't originals. in the first four or five years it was catalog, right? they got to 25 million subs without really one or two shows. our feeling is for apple to play this game, it's going to be

really hard because they don't have that flywheel of back library and even amazon, people go to amazon for one or two good shows but there's no continuity of viewing. you don't go back to amazon to just spend time with the service. i think what disney has done is they've showed you the value of their library and i think it's really hard for others to play this game. one of the names we've been talking about for a while is at&t with hbo. if at&t was smart, they would use the warner library to make hbo a better service but at this point they're going in a different direction. you're right about library and that to me the hidden value of all these companies. >> by that logic, does that mean good things for the likes of viacom and our own parent with universal or not >> well, it's interesting. so we upgrade cbs to a buy this year because we started looking at cbs's value and saying, you know, cbs has a ton of library tv content that another service

would use. i think -- i think when it comes to these other companies, nbc u has to commit to what disney has committed to. i don't think they will. so far they want to build an a bot service not an s bot service. they bought -- everyone's now realizing that there's two flavors here. there's an s bot which is what disney and netflix are and there's advertising video demand which is where viacom and nbc are playing. so the question longer term will be will they pull back more library content from the likes of netflix or will they continue to selling to netflix? at some point you have to be all in i think to get the street's attention and that's what disney did yesterday. >> michael, near term and long-term, how do you think this plays out with hulu? we know the aspirations to bundle all three of these streaming services potentially longer term but you do have these multiple stakeholders in addition to disney, how do you think all of that shakes out

>> good question. i heard david before and i asked him yesterday, like, you had not talked about hulu international, why haven't you done that? they said, well, we have partners in hulu. what you like do if you're disney, you want to build out hulu as much as you can on other peoples' dimes. at some point, i think it makes sense to have a more connected service hulu and disney plus but i think you don't do it until the ownership structure cleaned up. we'll see what happens. if they start going internationally, especially into europe, will comcast want to be in that partnership, will they want to support the partnership or say, look, that's probably not what we want to do and we're willing to cash out? the hulu partnership question is is a key overhang here. >> finally, michael, the bear arguments recently have come from analysts who thought that the fox deal was always too

expensive and that somehow that library was delieu tiff to disney's family friend brand. any legitimacy to that point >> well, i would say yesterday you saw nat go, you saw simpsons which is surprising. i was really interested in where the simpson's would wind up and you saw fox shows and movies. to me it goes back to hulu. i think the hulu asset with all that fox tv content and disney content in one hand, that's one to me the ultimate value is on the fox asset is controlling both tv content and hulu globally. what we saw yesterday -- and i heard bob say to david, you think there's more to come when it comes to hulu and fox. look, i've been wrong. marvel i remember very well saying that's expensive deal,

but they proved us wrong. any time they bought ip they proved us wrong. go back and read all the reports, pixar, marvel. we were saying that's a crazy deal, but they know what they're doing when it comes to matching and monetizing ip. you can't judge them on the first year of this. it's a five year deal. >> yeah, yeah. i think a lot of former critics know exactly what you mean. michael, thanks for the time. important day. appreciate it very much. >> thank you. another very big story today, uber out with its ipo filing last night. leslie picker has been digging through that release, hundreds of pages. joins us now with more. >> this is an ipo years in the making. uber revealing its pro-spec tuesday last night, 300 pages for investors to pour over before choosing whether or not to participate in what is expected to be about a $10 billion offering here. now the takeaway from those documents is this, uber has

fought through the competitive market for ride sharing, it's expanding into new areas like food delivery and freight and new markets across the world. top line growth appears to be harder than outright expansion and losses from operations while those came in at about $3 billion last year. commercialization of driverless cars could wind day help propel uber to profitability investors say much in the way aws or amazon's cloud computing platform started pumping out cash in recent years. amazon had similar language, actually, about its losses and it's ipo prospectus from 1997 about how it may never turn a profit. while there's no guarantee uber may become as lucrative as amazon has, that may not matter in the short run. in the ipo market these days, earnings have taken a backseat. in 2018, a whopping 81% of companies went public without eps tied for the highest proportion ever with 2,000 which

is in the throes of the dotcom boom, investors don't actually care. the average day one pop for companies without earnings was more than double that of profitable ipos last year. guys >> yeah. leslie picker, thanks for that great overview. now let's bring in renaissance capital kathleen smith as well as david chau who invests in both lyft and uber. good morning to both of you, kathleen, ipos are risky and if this $100 billion valuation sticks for uber it's going to be tough for a bigger company to swallow. if you're thinking about investing in uber, what do you have to believe about this company for that to be the right bet for you? >> well, i think first of all, this is going to be the largest u.s. ipo in history, one of the largest on a scale of the facebook ipo, so the important thing is the market's going to have to absorb a very big deal

and history shows that big deals may be hard to absorb in the market. facebook's deal is a good example, and on top of that, investors have a particularly hard time with a company that is not earning money and has the scale of losses that uber does. so investors are going to look at uber and say, wow, it's like lyft on steroids. it's got five times the revenue, but it's got three times, two times the operating losses. now, also, uber is decelerating in its growth. so i think that there are going to be question marks even though uber has the bigger platform but it's spending a lot on that platform. i will say on a positive note, uber's put together a much better governance structure than lyft. it has one share -- one vote for each share as opposed to to the super voting set-up that lyft had. i think that's a point in its favor. i will say the pro-inspectus is

set up to show there's insider selling and that's a negative for investors that look at this. why would insiders sell. this company needs money. it should not be selling shares by insiders on this ipo. they should wait. >> david, why did you invest in both >> i think fundamentally, if you look at the needs of the millennials and the gen z they'll be 60% of the consumer and they don't believe in owning a car. my son is 19 years old. he doesn't want a driver's license. he says i'm saving you money, dad, by taking uber and lyft instead of paying for parking and insurance and so, i think this macro trend of the younger generation diving into the on demand economy and uber is basically king of the hill. >> kathleen, many different businesses here, it's a

pro-spectus that has hundreds of pages to it, but lots of terms. you've got gross bookings, take rate, contribution margin, monthly active platform, consumers are map cs, a lot for investors to digest there in terms of the key metrics they should be watching and does any of it really matter if you do have top line growth across these biggest businesses slowing? >> profitability definitely matters and that is going to be the issue in figuring out what is uber worth. now we have a very good comp in the marketplace, lyft, now trading 15% or so below it's ipo price. investors are not going to just ignore that comp when they look at uber even though uber's the bigger company. so lyft is not traded well and it's going to be incumbent upon uber to set a valuation based upon, in this case, we'll have

to look at just sales and some gross profit metric. it will have to be at a good discount so that the shares get absorbed into the market, get a lift on the ipo. it cannot structure a deal that breaks the ipo price and conditions are different. the owners of uber right now are many of the firms that buy shares in ipos, fidelity, t. rowe. they have to find awhole set o owners to agree on evaluation in the marketplace. it's going to be a big job to set the right price on this and, as i say, if you're selling shares insider shares as well, you think there's going to be push back on that. >> this is a really interesting point, david. i wonder -- there's a ton of variables for any new issue but to kathleen's point, we've talked for years about these companies that have been able to stay private for long because there was a bunch of dry powder

in venture capital. is the time in which they've spent being private another variable that investors should consider once they come public >> yes, but i think it's a net positive. when you look at -- when amazon went public in '97. it was a $500 million market cap. in '99 when they were about lyft's revenue size, he was losing $700 million but the market cap was $28 billion, which is much higher than lyft's valuation. and so i think because these companies are going public at a more mature, larger revenue based stage, i believe it's actually a safer ipo than probably investing in amazon in '97. and fundamentally, you know, uber is a very different company from lyft. uber is more of a horizontal

play. it's going into food. it's going into trucking. it's going into virtual kitchens and it's more international. >> right. >> and, you know, lyft is more of a consumer transportation play and uber wants to own the entire horizontal base of on demand economy much the way amazon has, you know, grown from bookstores to selling anything. >> interesting point. i wonder if safe is necessarily what you want in this case or do you want just as smart as amazon but point well taken. david and kathleen, thank you for being with us. up next, jameia going public behind us opening for trading just a short while ago. stocks up 50%. it's being called the amazon of africa. the ceo is gngoi to join us on the other side of this break. stay with us. all in one place.

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what! so, you can get more into what you're into. whether it's more laughs, oops. epic escapes, or high-flying thrills, get more into what you're into. just say "watchathon" into your x1 voice remote, or download the xfinity stream app. xfinity watchathon week, free. now through april 14. jumia the first ever african unicorn opened for trading just moments ago, being referred to as the amazon of africa. shares are up 50% in early trade. the ceo joins us here now at post nine for a cnbc first on interview. welcome. >> thank you. >> i'm going to start by asking you we've been asking about all of the tech ipos that have been coming to market and losses of nearly a $1 billion last year, what's your path to profitability? >> it's to get revenues higher

and costs lower or stable. it's a mathematical equation and for us if you look at historically we've been growing very well. we have a very healthy business model and we're very confident about our execution and the relevance of e-commerce in africa and the capability of jumia to drive more users to reach it. >> we talk about -- we talk about the quote/unquote -- it's a very big couldn't tent, many different countries and cultures. where is the growth for you and where are you focusing >> the uniqueness of africa is for the sellers. it's very hard to distribute their products because of the inefficiencies of africa and the challenges that the infrastructures present and with technology we have built a platform that's very effective for the sellers to distribute their products and consumers to shop. in africa there's very little retail and the solution is to go

online and go on jumia. the relevance of e-commerce in africa is very strong given the unique nature of this continent and we are benefiting from that as consumers are now using online and internet. they get to discover and get more choice, more selection and better prices on jumia. >> jumia operates in africa but your headquarters are in germany and dubai, top executives are french, you're engineering talents in portugal. is it important to get technical talent in africa to be more of a really african company as opposed to a european company? >> we are completely african company. we operate exclusively in africa. we have more than 5,000 employees in africa. as you point out -- >> but those are the warehouses, not engineers. >> the reality is in africa there's not enough developers, for example, and we know that and we need to collectively address that. this is what we want. it should be like this one day. we need to work on that.

it's not going to happen overnight but this is something we have to do for sure. >> when you think about long-term risks, is it about mobile penetration is it about political uncertainty and turmoil? infrastructure buildout? how would you rank those three things, for example? >> very low. very low. in my markets, 400 million internet users, right? >> it's done. mobile's in. >> it's not done. facebook is investing in a lot of companies are investing. i've got 400 million internet users and the last year, 4 million consumers used jumia. i have a lot of -- it's not about internet penetration. we are already, you know, helping sellers deliver all over africa. for us it's about continue to go drive the adoption and helping consumers discover the benefits of e-commerce. when we ask the people who have never used online shopping yet the reason why, the number one reason which comes out is i don't know how to shop online. so that tells you that it's not about infrastructure, it's not

about -- it's about consumers getting used to it. >> there is an infrastructure and logistics challenge, though, i'm fram with an entrepreneur on the ground in zam ba, to what degree can you work with local entrepreneurs, local companies to really build out that logistics infrastructure that was so successful for amazon. >> we are doing exactly that. thanks for asking that question. our network of partners is a network of local entrepreneurs. we have provided them with technology, tools and processes and that's how we deliver the products because we have this very wide network of partners who are local partners and they know the specificities of their region and we are working with them and helping them given them the technology, the tools and knowledge and process and the data to operate their business more effectively and that's how we have been able to deliver to consumers everywhere. 50% of our packages are going

into the city and 50% into the second cities in the rural areas. it provides a lot of inclusion for consumers who have not necessarily the right access to retail. >> sasha, thanks for joining us here today. >> it's a pleasure. >> shares up 61% in these first moments of trade. we appreciate it. >> thank you. a lot more still to come from david faber's interview with disney's bob iger and later a deeper dive into uber's ipo filing.

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good morning, once again, everybody, i'm sue herera. here's what's happening at this area. indonesia has said it ended a tsunami warning that was triggered by a strong earthquake. this video showing panicked residents on the streets of a coastal town. the u.s. geological survey says the quake had a magnitude of

6.8. secretary of state mike pompeo arriving in santiago, chile, this morning. he's set to deliver a speech on the latin american policies. he'll visit paraguay and peru. islamisted abducted two cuban doctors that killed body guards near somali border. it was the second abduction of foreigners carried out by the al qaeda extremist group based in somali. suedennese protesters that says it has no ambition to hold power for long. this ousting the current president. they denounced the military statements as a farce. it is a busy news day. that's the news update for this hour. i'll send it back downtown to you. >> thank you very much. as we go to break, that big deal in oil this morning, chevron acquiring andarko, $33 billion and it surging on

lomo "ews. a t resquawk alley" is still ahead.

homer simpson here proud addition to the simpson family and i salute our new corporate over-lords. >> homer simpson announcing his arrival on the disney platform. the stocks on pace for the new decade. let's get out to l.a., david

faber with a lot more with bob iger. i don't know if you noticed murdock in the trash can in that clip. >> yeah, that was pretty funny. it was cute. the point is, 30 years worth of that show is going to be available immediately on the disney plus platform, which is not insignificant for fans of the simpsons, frankly, who isn't a fan of the simpsons? come on. the point yesterday, of course, was about showing just how robust the service is going to be and how many hours of program will be available immediately and then over time as licensing deals expire on other platforms and disney's able to pull back some of that content as well. all of this, of course, taken in the larger context of the big move away from the traditional bundle the model that's been followed by so many content providers and is proven to be so profitable but slowly but surely

going away. i did talk to bob iger about the bundle itself and about where things stand given we started talking about the deterioration back over seven years ago when we first started to see some in the subscriptions to its very important still espn service. >> on the espn front, the back office and the backhouse so to speak is the same but the user interface is different because there are two very different products. also, i studied the marketplace very carefully and we both know if you're in the same business in many ways, we're on -- we're being distributed to the home on platforms that were created many, many years ago that served us well and the consumer extremely well over now decades, but i think in today's world, i don't think the consumer really wants to buy 150/2 hundred channels of programming for a fairly significant price when they're not interested in many

of those channels and in some cases, they can't even find them. i think what we're starting to see in terms of that platform is not necessarily the popularity of these channels decreasing, consumers are starting to say, wait a minute, the price to value relationship, even though i'm getting a lot of content and a lot of quality isn't really there because i don't need all of that. >> i know, but you know a lot of this started and you and i have had this discussion and some of your peers, if you want to call them that in the business look at you and say that started because of espn, because of how much you're charging for it because you paid all that money for all those rights a long time ago. >> i think we were a convenient scapegoat in that regard. i think all of the channels -- i know that espn charged more per subscriber than a lot of the other channels, you have to look at the value that was created there both for the consumer and distributor, advertising rates on live sports, distributor, the

cable company, the satellite have traditionally been better, for instance, and those channels are in demand and it's an open marketplace and the more in demand you have, the more pricing leverage you have. i don't think that espn should be blamed for what we're seeing today. i think you just have just different -- you have a different consumer today and the more choice that has entered the market -- >> your grandkids or kids are not going to subscribe to this bundle. that's just not happening. you believe that, don't you? >> i believe that they will continue to watch a linear television. i think live sports and certainly news and maybe financial news, by the way -- >> we always hope. >> -- continue to have value and people will be interested in it. i think long-term, i think you have to consider that linear television will be more popular than just programs. we're in the -- in the short-term we are still very supportive of the channels that

we own and that we're distributing. we'll continue to put resources behind them to create great programming. i think long-term you have to put the consumer first, so going all the way back to how this started, if we put hulu and espn and disney plus into one product, the only way you can get these things is, one, that's doing exactly what the consumer today doesn't want. if there are consumer that's want it that way, we'll give it to them that way and hopefully, ultimately and all three, one user name and one password, make it real easy for them to do it in a discount. >> that discount, of course, no details on that but the idea being that if you are one of those people that gets espn plus and disney plus and hulu, you will get some sort of a volume discount, but this is the future. it was fully embraced. you heard michael nathanson talking about it last hour as well. this is where they are going at disney and they're being embraced right now by they're

shareholders, aren't they? >> they certainly are, david. given the fact that this is the future and bob iger just laid out his vision for that, all the expansion and investment that's going into rolling out these streaming services i also thought it was noteworthy that he told you that he's probably going to be stepping down in 2021. how should investors think about that in the midst of this transition >> it wasn't even probably. he made it very clear he will. >> yeah. >> of course, when it comes to mr. iger and retirement dates, suffice to say that they haven't always held, have they he did make it clear in both the meeting and in our conversation that he intends to hold firm to that date, morgan. he says, listen, i asked him -- you'll be in the middle of a transformation, don't you want to say till the end. much of the transformation will already have taken place and the board is focused on who the next person will be who takes it all the way through that. he's 69 years old. he'll be in his early 70s and still very young, it's still two

and a half years away. a great deal will go on between now and then working their way towards the profitability of these services, but it does appear he seems serious this time, although we'll revisit it when we get closer to the date. >> all right. sounds good, david, great stuff, thanks for bringing it to us. disney stock up 9% right now. take a look at shares of apple as well as we head to break receiving a downgrade over at new street to sell. stocks down about .8 of a percent. the major averages rally. we got a lot more "squawk alley" straight ahead. to inspire confidence through style. ♪ i'm working to make connections of a different kind. ♪ i'm working for beauty that begins with nature. ♪ to treat every car like i treat mine. ♪ at adp we're designing a better way to work, so you can achieve what you're working for.

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i'm brian sullivan. coming up today on the "the halftime report" will jamie dimon's comments give the rally another leg up chevron buying anadarko, which stock in the energy patch could be the next one to be bought and the 5g stocks that you may want to buy before a big announcement at the white house today. the "the halftime report" beginning at noon eastern time. john's it's hard to believe, we'll do all that stuff in 14 minutes. i'm not ready. >> you're ready. you're ready. we'll see you then, brian. meanwhile, when we return, former nyc limo commissioner is with us here. we've got that uber s1 coming from all angles and we'll back in just a moment. ♪♪

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that's what inspired us to create america's most advanced internet. internet that puts you in charge. that protects what's important. it handles everything, and reaches everywhere. this is beyond wifi, this is xfi. simple. easy. awesome. xfinity, the future of awesome. uber is revving up for its public debut the largest ride hailing program revealing that it has 90 million users amid stalled revenues and losses of 2 billion a year. revenues are rising. the former head of the new york city taxi and limousine

now visiting. great to have you back. >> great to be back. now that we've got a look at lyft and uber's numbers, kind of an interesting spotlightuber's s interesting spotlight on how the competition between the two has been lowering the pay that the drivers have been getting. lyft is losing more than uber is as we look out on where the business is heading, do you see that stopping based on the way they're handling their business? >> i think their biggest cities, where they have the highest volume is where they're going to have the highest competition so i don't see that stopping i see cities stepping in to put a backstop, like in new york city established a driver pay minimum, so they can only go so low in terms of actually paying the drivers. that doesn't mean they can't continue to compete on

passengers subsidies which will be an enormous source of loss. these companies when they came out, the projected technology companies, we don't have the overhead and the filings make it clear they're fundamentally transportation companies and they are experiencing the over head and expenses and liability that comes with ground transportation, which is not an easy business. public -- uber operates -- the ride shares in total in the u.s. are starting to scale up to the total national public volume and that transportation is highly subsidized. it moves a lot of people this is the same kind of subsidy in a different version. >> your point is more true when a quarter of your bookings come from five big markets. >> yes. >> they have to smooth that out somehow, aren't they >> they got into markets that had robust public transportation

and taxi. >> and stole share. >> right and now they're competing against each other and, you know, you can see very clearly, like in new york city, where the trip data is out in the open for the public and investors to look at, which is a great tool for investors how that ebbs and flows. >> under the risk factors, for uber specifically, they do talk about government regulation nancy pelo in a city like new york, there's minimum driver pay as someone who until recently worked for the city, is this something you expect to see rolled out in more cities and have there already been conversations maybe from new york on out with some of those other places where this could be the case >> absolutely. just on april 8th, london passed their congestion surcharge on

the ubers and they'll be charged an extra fee for going into the congestion zone. until april 8th they had been excluded from that so london is following suit. you have cities like sow palo where they're charged per kill omter. these cities are realizing the drain on public transit and the need to get something back from the companies using the road space and taking customers off of public transit. so certainly big cities are going to be talking to each other more and as part of my work with nyu i'm going to facilitate that because it's important how to handle new companies coming in and the infrastructure demand. >> uber pool, getting multiple people in a car at a time, very important to the business model. they're trying to push that out,

ways to grow it more quickly do you see any regulatory problems with that or is that something that cities would welcome? >> cities would welcome it and in regulation they're favoring it both in new york and london, the congestion fees are reduced when you have shared rides. cities see that as a more efficient way of moving people these are certainly complimentary to public transit, it can't be everywhere at all times. that's not in dispute. but if there's ways to make it more efficient and incentivize it, more cities are taking that approach. >> we know that autonomy is the holy grail from these companies. we had comments like from ford that true autonomy is way further out than people thing. do you agree >> i think maybe the technology

will get there it's the cultural shift that's going to be harder this in between stage where you try to integrate fully autonomous vehicles in a world where not anything is fully autonomous one works with a certain logic that is extremely exact and the other is humans and we're so unpredictable. that will be the slow down, where these companies are expanding in the more short term is scooters and dock less bikes and cities are getting smarter how to introduce those like asking for data upfront, what areas are you going to service, we want to make sure there's service in all parts of our cities they have more competition in those areas so i think regulation will have a stronger hand with dockless bikes and signals. >> they'll have to learn the hand signals so famous for new york drivers. >> you get those too

>> we all do dow trying to hold onta 200 point gain here. we're at 2901. "squawk alley" is back in a few minutes. servicenow put our workflows in the cloud. this changes everything. you're right sir... everything. no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead.

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musk's spacex last night the most powerful operational rocket in the world launched a satellite into orbit ant three minutes after lift off from kennedy space center. a synchronized landing triggering sonic booms that set off car alarms around the area a minute later that middle booster made a landing first time we've seen all three boosters recovered but also goes to their mission to ureuse more of their hardware spacex is looking for another $510 million, with shares sold at nearly 10% premium. this is one of the ones to continue watching. out of this world.

>> video like that doesn't hurt when you're trying to raise money. >> precisely. >> it never gets old every time we see it happen, landing zones 1 and 2, unbelievable we'll watch for the market to hold the gains dow up 200 plus and a slate of earnings coming next week. let's get to sully in the half welcome everybody, i'm a brian sullivan in for scott with today's rally the s&p about 1.3% from its all-time high, the same for the nasdaq and dow as several big stocks on several big fronts make several big moves. ford are making investors take notice. j.p. morgan surging on earnings but diamond's comments may be the bigger reason to buy stocks. disney releases its new plan the stock is flying into