reaction to apple's quarterly results. plus adp's early read on america's job growth tomorrow on "squawk box. good morning, it's 8:00 a.m. at alphabet headquarters in california, 11:00 a.m. on wall street "squawk alley" is live ♪ ♪ good tuesday morning, welcome to "squawk alley." i'm carl quintanilla with contessa brewer. jon is on assignment we'll begin with google parent alphabet today the company is on track to have

the worst day in nearly ten years, facing growing competition in the ad business from the likes of amazon and soaring costs in that category they call other bets joining us exclusively this morning is the former ceo of twitter who joins us from out west dick, good morning, good to see you again. >> how are you great to be here >> let's tackle some of the issues that google has this morning, separate from the price action what do you make of this is this the first crack starting to show in their model >> it's hard to tell what's going on with the ad business in the deceleration era i don't know whether it's amazon starting to really steal share amazon's ad business is certainly growing significantly. or, you know, sundar alluded to unspecific changes that they're making to their ads platform around machine learning and ai i don't know whether there's some sort of initial tests that they're running and starting to

train machine learning models on that are causing some of the deceleration it was hard to tell, they weren't very specific about it it certainly was surprising. you haven't heard much from advertisers out here about google ads starting to not perform or perform more poorly than we used to. we haven't heard anything like that it's pretty difficult to tell what's going on, and they weren't significant about it >> the company spent a lot of time talking about the cost of foreign currencies did you get enough of a clear picture about why they're seeing deceleration in clicks and things like that did you come away with a better understanding? s s. >> uh, no. it would be hard-pressed to find anyone who did >> meanwhile, dick, saying they weren't specific about it is the exact complaint from the sell side today they argue that management talked about uncertainty in prior quarters, basically didn't give you a whole lot to work

with it flies in the face of strength elsewhere. i wonder if you think some of the strength we've seen, for example, in twitter's metrics, may be a sign that in fact there is some rotation going on. >> yeah, you know, google's just so effective at direct response advertising, because you know, when someone types in a search term, this is an intent, very much intent-based advertising. this is a thing i'm looking for and want to get. so they traditionally haven't seen, you know, people moving away from them toward other more brand-based platforms. so it was strange. my only guesscould be that amazon, the strength of amazon's intent-based searches is starting to take some share from them and again, sundar was sort of obtuse about some changes they're making to the platform and introducing machine learning and ai that might have something to do with it. but he wasn't specific enough

about it to give us any indication of what was happening there. >> they're spending an awful lot on competition in the cloud, growth in the cloud was one of the biggest drivers of operating expense. is that something that's going to become more manageable in the future are we going to see a difference this year? >> well, i would expect to start seeing their cloud revenues grow significantly. satya at microsoft has done such a great job there, and that business is growing so effectively. and benioff of course at salesforce has been doing that for a while. it's been a little bit surprising that google's performance on the cloud-based services hasn't seen the kinds of acceleration that their competitors have seen. so perhaps what you're seeing there is sundar starting to say, look, we've got to get more aggressive here if we're going to compete as successfully as we need to with the likes of microsoft and others, and, you know, or we're going to be left behind that might be what you're seeing on the spend side from them around cloud-based services.

>> we'll keep an eye on the price action today, as you can see down almost 9% meantime, nasdaq is down today, momentum overall pretty positive as the tech ipo rush continues uber has listed, slack is listing, and we have news on wework's filing. what do we make of all of this coming to the floor in a hurry >> yeah, i guess it's one of those years. these things seem to go in waves. and, you know, there was a little bit of a drought the past few years. they all seem to be coming out this year. and, you know, you're seeing mostly positive action on these things with the exception of lyft pinterest has certainly come, you know -- came out of at $10 billion, is up to $17.5 billion now. same thing with zoom with some of the action that you're seeing on the recent ipos, i think people are saying, okay, it's time, the timing, it's a good time for us to go, the conditions are right

you know, i think of course the thing to worry about is, the thing to wonder about is, in the short term, some of these things are getting a little bit out of over their skis, over 100% in the first couple of weeks. we'll see what happens with uber, whether it looks more like a zoom and a pinterest or whether it looks more like a lyft it's a little bit disconcerting to see these things take off so much and start trading at 60 times revenues, zoom for example has to be close to that number now, which seems pretty aggressive >> given your experience at twitter when it went public and that you weren't the founder of that company, now we're looking at something very similar with uber, is there a risk for investors to be placing a big bet on a company, its ipo not being led by its founder are there advances to it >> listen, dara is an exceptional ceo. he's had public company success.

he has a tremendous track record that's well understood as a public company's ceo so i don't think there's any issue there. it will be interesting to see what happens with it, whether, you know, the retail interest in it is excessive and it comes storming out of the gates or whether it looks more like lyft. i really have no idea what will happen there slack will probably look a lot more like what we've seen from some of the recent enterprise software ipos like a zoom or an octa, whether you've seen real strength there hard to tell what will happen with uber. but dara is an exceptional operating executive. he'll be really clear with the street about what's going on and i think that will generally be helpful to uber's shareholders >> we were just looking at some tape of you, dick, from november of 2013, the day of twitter's ipo. you went public at 26. and the next day, the inter-day high was 50.

normally we don't get to talk to executives in the days following the initial trade. but i can't imagine there's anything but satisfaction at that or is there a feeling that, hey, maybe we mispriced it on the downside >> no, you never t r, you know, really want to do when that happens is get back in front of the company and say, you know, let's not get too excited about what's happened here right now, because we're not going to live in a world where the daily price of the stock doesn't necessarily reflect what we did in the company yesterday. i got in front of the company the night of the ipo and said, look, we all know, we didn't prove the financial metrics of the company by 100% today, so just understand, the daily performance of the company is no longer going to be in lockstep with the moment to moment stock price. and that's something that you have to train the company to become resilient too over the course of the last nine years, at places like pinterest, generally speaking, the stock

price reflects what they know to be true in the company now after nine years it's a $10 billion company, two weeks later it's a $18 billion company the employees have to get used to that. it's not something they're accustomed to. >> given that, what do you think of slack's decision to opt for a direct listing rather than an ipo? >> you know, i don't really know why stuart went that right he might have seen what happened at spotify and decided that's what he wanted to do as well he has a number of people who have to be selling in the ipo because that's the place the supply is coming from when you do a direct listing. maybe there's some of that so i'm unsure why stuart went that route given the performance of these enterprise software companies that have close to 100% year over year revenue growth like zoom, like octa, twillio, et

cetera, i think slack is in pretty good shape with a direct listing there. >> i always tease you, dick, about cost low capital management you're a savvy trader on your own. if you could get a piece of allocation, is there one thing you would be most interested in? >> you know, any scrambling behind the scenes i'm doing in the background and on the side, i think the slack ipo, given what you're seeing from other enterprise software companies right now, has to look pretty appealing. the others, we work in uber, it's hard to tell what's going to happen there in the early going. i'm not sure i would jump into those on day one >> all right i'll keep that in mind dick, stay with us we've got facebook's f8 conference today we'll hear from zuckerberg this afternoon. for a curtain razor on thiszois, we'll talk to julia boorstin

>> the big question is what he'll unveil about the privacy focus on social networking he discussed last week. he talked about conversation in the living room rather than news feeds in a town square the question is how facebook will profit from it. throughout these presentations over the next few days, there is specification that facebook could unveil a redesigned core facebook app messenger will be in the spotlight, analysts hoping facebook will show more of its business potential we're also looking for plans to integrate facebook's messaging platforms, the back end there. we could get an update on facebook's dating service as well, as well as new revenue streams. it's worth noting the executive lineup onstage could look very different than in years past, especially since facebook has lost a number of executives.

we'll have to see how the company shifts with its scuff team carl, over to you. >> julia, i just wanted to jump in here, what does this mean for the business model, all these changes? >> you know, contessa, that's really a good question zuckerberg talked about this a little last week in earnings he reassured investors that it will be a while before we see dramatic changes in terms of ads shifting away from news feeds and stories. i expect we'll hear a lot about how stories ads will be in the forefront here and also e-commerce if facebook can convince people that it's all about personal interactions and they're in a trusted safe space, it's more likely they'll make a credit card transaction and make a purchase >> julia, thank you. dick, what do you think of the renewed focus on private messaging for facebook >> well, i mean, some of this is of course a reaction to facebook

going down the path of amplifying whatever seems to be popular or a lot of hyperbole in the news which ended up causing issues around the 2016 election. i think they're not going to obvious sly say that explicitly i think you'll here more from mark about the intertwining of the services facebook, instagram, whatsapp, he seems to be committed to bundling those things together or integrating the back ends of them obviously it would make it harder for any regulation to come in and split those things up but i just think mark is intent on more tightly integrating those services that will enable them to more tightly integrate the kinds of advertising that they want to serve across those platforms and the data will be obviously easier to exchange at the back end if the services are integrated my guess is that's what's going on there and you'll hear more about not just the privacy but the

intertwining of those services >> finally, dick, we talk a lot about the public relations issues, the way engagement has held up in the face of those stories. i wonder, has developer interest, do you think, held up in a similar fashion >> you know, it's a great question i think that probably the short answer is no there's certainly -- it's such a massive platform that you're not going to lose everybody. there's going to be significant interest in it, that's where most of the social activity is, most of the social engagement is but i do think there's been a little bit about stepping back, and probably some, is facebook going to even be allowed to do some of the things the short answer is there is some stepping back from developers and they'll just be a little more caution abous about anythi announced there because they'll want to know that that thing is

going to be around in a few years. >> dick, we chopped a lot of wood, thank you. coming up, meg whitman for an exclusive, talking tech and streaming media. and uber executives in new york as we get closer to that long-awaited ipo, we get ready for the road show. dow is down 117 as we get headlines from chief of staff mulvaney about china trade we'll talk about that after a short break. don't go away. 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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markets took a spill a few moments ago as chief of staff mulvaney is talking at a conference a couple of headlines here, not much to go on, it does suggest u.s./china trade talks are likely to be resolved one way or the other in the next two weeks. it goes on to talk about the likelihood of passage of the usmca, that that has an a better chance of passage than an infrastructure deal. the dow is down 95 points. david is out at millken. david? >> reporter: carl, thank you as, we are at the millken global conference in los angeles. you may remember her, she would come on and join us pretty much every quarter, meg whiteman, nice to see you. >> thanks for having me, david

>> reporter: you're based in los angeles. >> yes, we have moved to los angeles. >> reporter: and you're running a company that is getting set less than a year from now to produce short form content, highest end production alue, for essentially people's wireless devices, more likely phone than not >> yes >> reporter: why will this be something that people want >> you probably figured out, the name of the company is a contraction for "quick bites," people are on their phone more often these days because there's better bandwidth and more content. we're going to go after white space, high quality content bringing together the best of hollywood and silicon valley every morning you leave your house with a little television in your pocket, like when you were waiting for me to show up, a chance to watch six or eight minutes of something great so we've got incredible content

coming we're doing great innovation on the technological side >> reporter: nobody doubts your ability to innovate, and mr. katzenberg, your partner, as well people are watching half hour or hour shows why do you believe that something in a shorter form will appeal to people who seem to be happy watching, in shorter bursts, longer shows >> at the height of advertiser-supported tv, internet companies created an incredible viewing experience, youtube, snapchat, doing great things but we're doing it at a different quality level. we will tell long form stories but in ten-minute chapters my best analogy is "the da vinci code," 105 chapters, each

chapter is five pages long because down brown saan brown s have five minutes, i want you to read one chapter people don't have a lot of time and to create story arcs for on the go people, we've got a big audience >> you haven't yet settled on a pricing metric >> yes, we have, $5 a month, $4.99 a month ad-supported, and $7.99 a month ad-free. >> reporter: the creators you're going to for this content, it's a good time, i would assume in this town and others, to be a creator of content >> it's an amazing time here >> reporter: is it ending up being more expensive than you anticipated? i know many people are buying in and you have the support of studios as well, but is the prospect of creating content even more expensive than you anticipated? >> it's not more expensive than we anticipated in the business

case, because one of there was a renaissance going on in hollywood. every day there's a new entrant in this. but content creators really like this because they know the cellphone, the smartphone, is the next big screen. if we're right, movie, televisions, quibi so they want to develop for this device and we've made it an attractive proposition for them first, we start, we have to pitch, explain what we're doing. now much of hollywood is coming to us with ideas, which is of course what we want. >> and of course you want a hit, get word of mouth going, create a sense that this is what people want >> certainly we want a hit, what we caught lighthouses. we're going to launch something called "daily essentials" which will be, in 6 1/2 to 8 minutes, a wrap-up of news, a wrap-up of sports, music news, celebrity news, gaming news.

if we can get you to be interested in three of those a day that you really like, that you depend on, that creates the daily consumption habit and the other kinds of content built on that >> reporter: we're in a world where there was a proliferation of services that stream. disney plus, i was interviewing mr. iger as they produced their service at $6.99 what do you think the willingness of the consumers is to have all these different services including yours at $4.99? >> think of the car industry at the turn of the last century, at one point there was a hundred car companies. now there'sthree or four i think there's a lot of different business models. i think disney was remarkable in its announcement >> reporter: why did you think it's remarkable? >> they have such a library of content. it was beautiful produced. look at what "end game" did this weekend, it was historic but we're a different use case

a lot of these services are at night. we think our use case is monday through friday, 7:00 a.m. to 7:00 p.m >> reporter: how are you going to know it's working, how will you define success >> really the key metric for us tend is paid net subscribers, how many people try, how many people actually subscribe and how many people stay it's a classic subscription business i think we'll know at the end of the first quarter, are we on track for our base case, our goal case. what are people saying about the service. by the way, it's so wonderful, for the first time in 20 years, and you will appreciate this, i do not have a legacy platform. i get to build the at the beginning of platform from scratch. so we can instrument it and develop it in a way that we would never have been able to do so the technology innovation, and making video look great on your phone, is very much part of what we're doing but in the end, paid net subscribers. >> reporter: so we've got a little while yet and ask you

about how it's doing, given that it's not launching until april of next year we sat down and talking briefly and you said the work is more akin to what you did at ebay than at hp. why is that? >> it's a startup. i was employee number one in march a year ago we now have a hundred people we're building something and that's much more akin to ebay i loved my time at hp but that was really reinventing an american icon. when i joined, it was $129 billion in revenue >> reporter: how many employees? >> 325,000 plus 80,000 contractors. this is so much easier in many ways, i can manage walking around, i know everybody who works at quibi it won't be like that forever. >> it's funny, devon was here, talking about ebay, and we were

having the same kind of conversation as we were having 25 years ago are there debates about re-energizing it, the difference between large sellers and medium and small businesses >> you have to remember, i've been gone from ebay for ten years, in the life of the company, that's a third of it, basically, more than that. think about how e-commerce has changed. when i was at ebay in the early days, we were explaining to people what the internet was our first ad was, www.ebay.com, it's on the internet so e-commerce has changed. the world is changing at a breakneck speed. >> reporter: you talked about it when you were running hp in terms of the rate of change increasing and the need to do certain things >> it's just amazing >> reporter: do you worry about it when it comes to quibi, that there will be something that outruns you? >> sure. >> reporter: every day there's a new announcement >> startups have an advantage, we can move fast, we can pivot

we see what needs to be done and we have a singular mission and so we just have to stay on our path, which is this, you know, on the go use case, very high quality, short phone content that fits into people's lives with a unique technology platform i'm pretty optimistic. as you know, i could have done a lot of different things. and i decided this would be -- i thought it was a fantastic idea and thought it would be very successful >> reporter: i'm glad that we got a chance to catch up, good to see you meg whitman, ceo of quibi, back to you, contessa >> thanks, david s a coming up, shares of app falling. legendary early apple investor alan patricof joins us and as we head to break, a look at the worst performing stocks on the dow apple is a laggard there don't go away. what do you see? we see a billion more people breathing free.

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welcome back to "squawk alley," areeveryone i'm sue herera venezuela opposition leader juan guaido says he's begun the final phase of his plan to oust nicolas maduro he was joined by lopez who has emerged from house arrest. he's called on the military to back him against maduro. north korea's vice foreign minister says the u.s. will face undesired consequences if it fails to present a new position on denuclearization talks. the second summit in vietnam between president trump and kim jong-un collapsed without an agreement. iranian president rouhani says iran will continue to export oil despite u.s. sanctions. in a speech broadcast live on iranian state tv, he says americans will see for themselves that they cannot stop iran and a wild fire in southern

england has destroyed a large part of the woodland that inspired the children's series "winnie the pooh." the stories were about pooh and his friends. that's the news update this hour, carl, back to you. >> sue, thank you very much. european markets are closing. dom chu joins us with today's action >> markets mixed in trading there today, kind of like ours fractional losses in many of the major bourses across continental europe a key piece of macro data setting the tone, a preliminary read on first quarter eurozone gdp. economists were looking for a slightly better number euro stat also showed employment 7.7% in march, down from 7.8% in february big stock movers of the day,

danske bank was down, they're still underscrutiny for allege money laundering activities. standard chartered bank rose, posting 10% gain in quarterly profits, announced a $1 billion share buyback program. airbus was lower on the day, posting slightly better than profits but a slight miss on revenues airbus was helped by more commercial jet deliveries. three stocks to watch in that european trade, contessa >> thank you, dom. leslie picker joins us now with more on uber's ipo. >> reporter: we're here at the mandarin oriental hotel in new york city. hundreds of investors will come here for lunch today we're already seen the ropes lined up downstairs on the way to the elevator which will take them to their lunch destination.

now, uber overall has been doing things quite differently, especially as it relates to other ip ochlos that we've cove recently they've said save the dates to investors on friday, telling them the lunch would be today, but that they wouldn't disclose the exact time and place of the event until the morning of, a few hours ago they were informed that it would be here at the mandarin oriental. they also asked firms, even large firms, for specific names of attendees some firms were limited to just one attendee each, which is sometimes different from a lot of these ipos that we've seen recently i'm told they'll check i.d.s to make sure that one attendee is the person who rsvp'd to come today. why are they being so secretive? i think they're trying to tamp down the hype a little bit, they're concerned too much hype could make it difficult to price this deal. i'm told they may be concerned about protesters coming and

disrupting some of the proceedings today, guys. >> it's going to be a very busy few days ahead, leslie picker watching the uber ipo, of course and the road show. when we come back, apple reporting earnings after the bell tonight we'll talk to alan patricof about the company, managing to stem the tide a bit, now down only 46. we're back after a break what's a hedge fund? a mutual fund? an index fund? what should i ask my investment professional? how do i know if they're even legit? edgar? who's edgar? how do i read a 10-k? what about fees? what's an etf? 529 plan? 401(k)? how do we plan for retirement? where do i start? empower yourself with the free tools and resources on investor.gov. before you invest, investor.gov. ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95.

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welcome back to "squawk alley. apple of course prepares to report results tonight after the bell josh lipton joins us more with what to expect tonight hey, josh. >> reporter: so carl, we're here at apple headquarters in cupertino. apple's stock in the red right now, carl, but it has been on a tear, surging more than 40% since its lows earlier in the year analysts will point to a few different reasons for that move. they'll say apple with that guidance did lower the bar for the year that allowed investors to maybe feel more comfortable moving back into the name they'll also point to favorable seasonality in the company's share repurchases. now the question for investors today is, can its ceo, tim cook, keep this momentum going apple is expected to report eps of 236 on revenue of 57.4 billion. now, iphone revenue, that's expected to come in at $31 billion. that would be a sharp drop, down 18% from a year ago. one challenge, we know, for

apple's iphone franchise, its business in china. remember here, apple execs did suggest in q1 earnings that trends in china improved in january, at least versus december so did trends continue to improve? we're going to find out today. also in focus, services. faster growing, higher margin. a bright spot with the iphone franchise under pressure, apple unveiled a new range of services in news, viewing and gaming, although one analyst says services will decrease from here this is the quarter when apple typically unveils its results. they're expected to increase buyback by $50 billion with a 10% boost. >> that's good news for investors, thanks, josh. yesterday, goldman sachs' ceo

shed some light on their new venture with apple >> less friction for consumers, no fees. what can we do to have lower overall rates, cash back instantly, more flexibility. and so it was an opportunity because we don't have any legacy platform, to think creatively and say, how do we make changes at the margin that are good for consumers. >> he was talking that new apple credit card. are changes at the margin enough for apple to make a dent with us here to talk apple, faang, and the impact of huge platforms, legendary tech investor alan patricof, good to see you today. we know a lot of the challenges for apple already. they're going to exist this quarter. china lagging in iphone sales. is that bad news already baked in, and is there enough of an upside on services and new ventures that apple has announced? >> well, i don't follow apple as a public stock, i deal with the private market

my involvement with apple goes back so far. i heard tim cook last week and came away so impressed what he was talking about is a realistic approach to the fact that regulation is on the horizon. he's not fighting it, he's leading the whole effort the second thing, he's talking about apple in the health care business he's talking about, whether it's the iphone watch or whatever else he has in mind, that we're going to be monitored in terms of our health, that we are going to not just the simple things we have now, as to how many stairs we walked up or how many feet we ran or what our heartbeat is, but he's talking about having an impact on our total health, which opens up a whole new area. then you top that with, you know, his revenues for his iphone users is so large compared, for example, to an android user i just think apple is -- you know, the market can handle 6 or

7% off for the year, for the quarter, excuse me, overall. he's got so many things going for him, i wouldn't bet against apple. >> how long do you think it takes, we've grown up learning how to digest the phone cycle, the hardware cycle, watching supply chains. we have to retrain ourselves, right, now, to understand margin on services, growth on services, things he's talking about in the next 30 years. >> yes, but i think that same approach you just talked about is more applicable to the new ipos and how we're going to adjust their growth rate from quarter to quarter and their earnings losses, and how steep they are, what their number of users grows or doesn't grow from quarter to quarter and how those rates change i think we're in a new paradigm, perhaps, or a shift in focus the focus is going to be on this enormous wave of ipos that are coming out now and how the market is going to adjust on a quarter to quarter basis >> given that, and given you

have these companies coming to market who aren't showing any profits, in fact they're showing massive losses and they don't really explain how they're going to get to profitability, what's your take on this new paradigm, as you call it >> "duh. i happened to look at a statistic yesterday, just by accident the total market value of the entire new york stock exchange when i started, and we won't date it, was $300 billion for all 2,000 shares at that time. and we announced yesterday microsoft has gone over $1 trillion we have two other trillion three companies are $3 trillion compared to the entire -- i'm sorry, i lost my train of thought. so yeah, i think we're living in a very unusual environment we haven't seen this since the '70s, where companies can go public with huge losses that have to be funded, and the only

way they're going to get them funded at the moment is through shareholder capital, because they're not about to turn the corner i mean, there are a couple i think slack is in a good position that may be why they're doing a direct listing and they have to go through the whole normal ipo process. but, you know, and i have nothing against any of these companies, they made a phenomenal success, i've said on this program before, i wish i were an investor in uber and i had kind of oblique opportunities, but uber, we worked, i met with adam newman, we have to see how they're going to keep funding these losses >> uber wants to be the amazon of transportation. >> no, no. they want to prove that they can lose -- they can fund a lot of losses up front just like amazon did. >> but they also want to -- i mean, they're brafrmgdz onchingt uber eats. the way that amazon was a book

seller in the beginning and it's far more than that now uber has aspirations here. can they make that happen? or are they too big for their britches >> i don't know, the competition going into a couple of other activities, they seem to be doing very well with uber eats but there's competition in that area also. i think, if i were a new issue investor, i would be carefully watching and seeing what growth rates happen in the very early first quarter, second quarter, third after they go public, because investors can get squeamish so fast, i mean, and they lose -- people lose interest, and then all of a sudden your stock is, you know, wherever look what happened to lyft >> exactly we know that, to your point about the new issues, investors are hungry for yield, hungry for

secular growth tying it back to apple, to put a period on it, how does apple make themselves look compelling in that environment? >> i don't think apple is going to spend any time comparing itself against any of these other companies. apple is in a more established part of a portfolio strategy now. people are buying all these new issues, possibly buying into flip at a fast appreciation. i think, you know, they want to mark their portfolios and show they're in the latest and greatest that has a lot to do, cosmetically, with attracting people to funds. i think we'll be in a period of volatility in ipos they're not all going to go up they're not going to all go to dramatic premiums. one thing that's very interesting, though, a lot of the companies that are going public are almost household names, whether it's slack, or wework, uber, pinterest.

that's an interesting point, even beyond -- the impossible burger will probably be coming after it but that's an interesting trend. it's a very interesting time how are you going to keep track, frankly, if you're an ipo investor, of this enormous new portfolio that you're going to have they're coming out fast and furious. they're expecting, what, a hundred companies this year this go company >> at least. more like 180. >> you have to have some young new college grads. >> hopefully i've got some in my portfolio, freshmen, sophomores, maybe even juniors, or maybe even graduates >> that's how you do it. mr. patricof, thank you so much for joining us >> you can call me alan, that's okay >> yes, sir, alan, there we go the e-scooter business, coming up. looks like fun, right? o events.

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i'm scott wapner here at one market in san francisco. we have another big show coming up chamath is with us exclusively today from his future of his firm, social capital, the tech ipos and soaring valuations to facebook, we cover it all today. plus, a top five financial adviser with us on what to do with your money right now, andy chase of morgan stanley wealth management gives us his top plays with stocks hitting new highs and tech investor dan niles will be here as well he's making some new moves in his portfolio. you won't want to miss them.

all top of the hour back here in san francisco. carl, we'll see you in just a few. >> man, what a week you are having out there, scott. we'll see you in a bit, scott wapner let's get over to the cme group and get the santelli exchange, rick >> good morning, carl. there was a time where the phrase, silly season, was purely aimed at the political landscape and many times the stretch right in front of a presidential election but i think silly season should be expanded to pretty much about every six weeks when the fed gets together with the fomc gang trying to figure out if they need to adapt any changes to policy, keep things steady, try to give us some insights into what they're thinking, definitely silly season. if you think about it, the president's own advisers continue to point to the notion and i really think they believe this, and i still think there's a possibility of their reality being closer to a reality than many think, and i'm referring to 3% growth in gdp quarters for

many quarters ahead. but that is so incongruent with the notion that in the same breath, many advisers and the president himself want more stimulus listen, the reality is, more of less fed ahead is probably what's going to occur. i even read today many are thinking that we need an insurance ease you know, we have nine traunchs of economic insurance. each one of those was a quarter point from 0 to 25 we are far surpassed the snugging up of any other central bank and what's more, when you look at the notion that inflation may have peaked in this cycle even though the cycle may have more runway and growth certainly seems to be 2% or higher, which is a surprise, it really seems to me there's always going to be armchair quarterbacks well, now there's armchair fed chiefs but thank god that there's only one and i think jay powell is going to be neutral in doing very little for many more

meetings ahead, carl, back to you >> rick, we'll find out. rick santelli. when we come back. despite backlash against scooters in big cities they continue to grow in popularity with consumers and investors 'lgeso dai othat when we're back in a minute. -al. ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.

we had a mid-morning selloff, didn't last long, though, s&p working its way back to the flatline. we're back in three minutes.

scooter company bird is launching a new monthly rental program. aditi is in san francisco with more hi, aditi. >> hi, contessa. riders in san francisco and

barcelona will be able to rent bird scooters on a monthly basis. under the plan, customers would pay $25 a month and the scooters would be delivered to their homes. daily users now pay $1 to unlock the device and then between 10 cents and 33 cents per minute of use. the company does say it also decreased permanent rates in other cities the micromobility market is booming. the number of riders taking trips on these devices doubled in 2018 from the previous year as they scale up scooter and bike share companies, though, are facing some growing pains. lyft recently pulled 3,000 e-bikes from new york, d.c., and san francisco because of a braking issue and something uber has delalt with as well lime, which is backed by fide y fidelity among others doubled its valuation to $2.4 billion

and there's also the consumer backlash and city regulations these companies are grappling with back to you guys >> got some safety issues in there as well. fascinating. >> and it's going to be interesting to see how they navigate around the regulations that these cities put into place. >> aditi, thanks obviously a big afternoon on tap. we've got that infrastructure meeting at the white house with dem leaders and apple after the bell tonight let's get to the judge >> carl, thanks. welcome to "the halftime report." live once again today from one market in san francisco. as we continue our focus on all things tech and we begin today with another very special guest. chamath was an early facebook executive before going on to start the venture firm, social capital. a billionaire in his 30s, part owner of the golden state warriors, this guy's seen the limit for this rising silicon valley star and then chamath went through a self-described identity crisis. it's good to see you back. >> great to see