it's 8:00 a.m. in seattle. "squawk alley" is live ♪ >> good friday morning welcome to "squawk alley." what a morning it has been for the markets and for tech despite amazon, shares sliding as earnings fall for first time in two years got that miss on the bottom line soft guidance sent the stock down as much as 9% after hours as you can see, down almost 2%

joining us is mark mahney and mark blacklength. mark, we have covered some of the sources of worry in the earlier hours. i think i saw you cut your target about 100 bucks is that right? >> yeah, that's right. look -- >> what's the thinking >> yeah. we're going to buy this dip. you are getting close to a trough multiple on amazon. it's around 15 tyimes cash flow you are close to a bottom. this one-day investment that's depressing margins near term, this is the kind of investment you should expect out of amazon. it's the investment you should want out of amazon it will get harder for anybody to compete with amazon in terms of that level of delivery. the one real thing to focus on -- i don't think the call did enough justice to this -- is that aws business.

amazon, they are pivoting or adding they are going after the enterprise they are under pressure near term i think people are worried about the percentage slowdown in revenue growth focus on the dollar of growth year over year that's accelerating. that tells you we have plenty of room to grow for aws and for the cloud computing industry stick with amazon because it's the leading global retailer, leading global cloud computing company. buy this dip. >> john, your thought ssthought. can 35 be a number we live with? >> yes thank you. on the prime one-day impact, it drove accelerating north american revenue growth for the second quarter in a row. they called out a higher basket size and purchase frequency. in our data, we found a third of prime subs abandoned an item because the item is not going to get there in time. it's removing that friction point. also, we think it's adding to

the u.s. prime subs in 3q, per our data, there were 66 million prime subs versus 60 million to start the year it's adding to the cost. but it's been a huge boost to the prime value prop 35% top line growth for aws, i agree with mark, they hit the bogey they needed to hit it was a 2% decel from second quarter level. this cloud computing market is huge it's not a zero sum game aws is a leader. we expect them to be the leader going forward. >> john, bo tttom line, did amao lower prices and sacrifice have aws margin to lock in longer term contracts it seems possibly from the numbers that they did do some of that does that add to this narrative around a possible slowdown in enterprise i.t. spending it seems that's what they would do if they were concerned about that kind of a slowdown.

>> that's what they signalled. the cfo on the call said they are giving price concessions for longer term contracts. with that, you get better visibility for the business. i think their backlog was up 54% year over year i think i'm fine with it the head of aws at some point this quarter mentioned only 3% of workloads have moved to the cloud. i still think it's pretty early for cloud computing. i think we have 30% annual revenue growth next five years for aws. we're still pretty confident in kind of the long-term growth trajectory >> mark, i know we talk about the fact that aws and the profit from aws subsidizes some other businesses when you see shipping costs surpassing the $800 million mark for both of the last two quarters and now a forecast for the fourth quarter of a billion and a half more on costs

associated with one-day sh shipping, do you think amazon prime memberships are going to go up, the price >> the price i like the setup i would imagine that at some point along the way. i don't think it's the next year or two, five years, yes. expect the -- as the value improves, it should go up. you highlighted something important. if amazon had done these five years ago, we would be back in the loss mode at amazon. the fact that we're not highlights what i think is the greatest story in tech, the fastest growing businesses are advertising. that was almost 50% revenue growth that run rate is well over 10 billion or close to 10 billion you have this super high margin business the margins are coming down near term so you still have the great mix. but it allows them to do big 3 billion a year investment and

still grow margins next year that's the beauty of amazon today versus where it was five years ago. it's safer for investors >> john, should we expect more bull cases being built on the advertising silo >> yeah. great point. their ad business accelerated this quarter we had expected acceleration interestingly, investors we felt were a little disappointed in the ad growth profile the last couple quarters. off of the acceleration, we're expecting 13 billion in ad revenue this year, going to 40 billion in five years. amazon's share of global digital advertising will nearly double during that time as mark pointed out, it's at scale. it's the highest margin business it does afford them the opportunity to invest in one-day delivery and a lot of the other investments going on with the company. it's great for the mix on the market >> given this investment in one-day shipping, is the revenue

projection that amazon gave for q4 you think conservative or is it reflective of just an expected lack of demand? >> i don't think there's a lack of demand. ebay called out an issue in terms of fourth quarter. amazon said it's not a material factor to them they usually have deceleration going into the fourth quarter. this is a combpany that was all consumer discretionary it's less seasonal than it was in the past. that etch plaxplains a little o deceleration there's one-off factors. they did call it out i think there's a couple of one-time items my guess is that -- my guess is that they are probably a touch bit too conservative in terms of the q4 guide

i think the overall growth is this is a company that i think can sustain 20% growth with a lot of different levers. it's one of the most diversity large cap tech plays retail, advertise, cloud, and some other businesses we will see in the next year or two. >> last night, there was this conjecture that maybe they were trying to sandbag on guidance. i think the tone i'm hearing this morning is, we have to take them for their word on this. >> i think that's right. they have come in on revenue the last year or so right below the high end it's a good number it's about 21.8% that's a good number for this quarter. obviously, as we talked about the operating incomes being impacted by the prime one-day investment to be clear, the demand signals are robust that's usually when the stock works. unit growth is accelerating. acceleration in north america and international.

things are good despite it being down a couple percent today. >> indeed. as we said earlier, off the early morning lows john, mark, have a good weekend. see you soon >> thanks. >> thank you coming up, the other big earnings mover this more than, intel. shares continue to rise after a big quarter, upbeat guidance on interview with the ceo those results is next. don't go anywhere. does your broker offer more than just free trades? fidelity has zero commissions

for online u.s. equity trades and etfs, plus zero minimums to open a brokerage account. with value like this, there are zero reasons to invest anywhere else. fidelity.

welcome back to "squawk alley. dow is up right now. >> we have seen a call end between the treasury secretary, the u.s. trade representative and their chinese counterpart. a readout was just provided to us by the office of the u.s. trade representative that says that they spoke today with china's vice premiere on phase one of the trade agreement they made headway on the issues. they are close to finalizing some sections of the agreement discussions will go on continuously at the deputy level. the principals will have another call in the near future. there's no mention in this statement of whether another round of in-person talks by deputies will be taking place, when that would take place and where. the treasury secretary said it was expected there would be another in-person round of talks before this agreement.

earlier today, kellyanne conway said they are working toward a deal but the president won't sign a bad deal. they are close to finalizing some sections of the agreement >> the preliminary good news, the market likes, thank you. shares of intel continuing their surge this morning up better than 7% at the moment after the company posted another record quarter for revenue and raised its full-year outlook i spoke with intel ceo bob swan last night on those results, why he is calling it the best quarter in the company's 51-year history. take a listen. >> everything was stronger than we expected this quarter if you think about where we were 90 days ago, we had a view that the quarter would be roughly $18 billion. but we closed, as you indicated, $19.2 billion.

a billion two higher than we expected we saw strength across the board. it was the best quarter in the company's 51-year history. the data centric collection of businesses, which you know is a very important part of our growth story, set records. dcg was a record year. our memory business had a record quarter. our mobile i business had a record quarter we saw very strong growth across the board as we went from q2 to q3 because of that, we raised our full-year outlook. we took earnings up.raised our k we are on page for our fourth record year in a row good momentum going into the second half of the year. >> i asked swan more about that upbeat guide, particularly in the face of tariff uncertainty

and where his level of confidence comes from. >> confidence really came out of the billion two higher in q3 as we try to dissect where we saw the strength coming from and what would continue through the rest of the year, we do think there was a little bit of pull-ins from the fourth quarter into the third quarter while the fourth quarter will be stronger than we expected, we do think that we had about $200 million worth of pull-ins. we still expect the fourth quarter to be stronger than what we thought back in the july time frame. >> intel shares popped as much as 9% after hours on those numbers. dips down quite a bit from there. now it's up 7%, which is about the highs of the after-hours session. pretty close interesting detail in there about the pull-in that we saw from q4 to q3.

as we parse whether there's an i.d. spending slowdown, can we look at amazon and microsoft and see hints that was can you look at intel? i think you can look to intel. the fact that they are supply constrained in their chips -- they haven't been able to deliver the supply it's not clear to me whether you really can look at intel as a picture of demand then if demand were to slow, they don't have enough supply even to meet demand if it were slacking. we will have george curry in he is feeling the pain of a slowdown >> how can you have a texan and 3m in the three week as you have intel and lamb research? >> i was thinking the same thing. >> it's very confusing, especially because when you look at goldman's call on the slowdown, a lot had to do with

sentiment. we just got some news that sounds like, maybe these talks with china are going better. is that going to impact sentiment? will ceos, purchasing departments start to buy again in i.t. spending i don't know there's something going on out there, particularly with those core names like hpe, like cisco. i'm not convinced it's just sentiment quite yet. >> shares of intel are up 7.5% on the heels of this report. a big interview you will not want to miss clivy.e an spiegel joins us exusel dow is up 164.

woman: what gives me confidence about investment decisions? rigorous fundamental research. with portfolio managers focused on the long term. who look beyond the spreadsheets to understand companies, from breakroom to boardroom. who know the only way to get a 360 view is to go around the world to get it. can i rely on deep research to help make quality investment decisions? with capital group, i can. talk to your advisor or consultant for investment risks and information. when ywhat do you see?orld, advisor or consultant we see patterns. relationships. when you use location technology, you can see where things happen, before they happen.

with esri location technology, you can see what others can't. ♪ but we're also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. from the day you're born we never stop taking care of you.

we have had mixed signals on enterprise i.t. spending morgan stanley and goldman pointing to a slowdown intel suggests there might be a

different story. some companies feeling some pain with us now, net app ceo george curian >> good morning. good to speak with you again >> yeah. good to talk to you. we are looking for answers about what's really going on here with enterprise spending. you and your team have said the issues that net app have had are one-third your own sales execution, two-thirds macro. how much is sentiment? how much is real caution that could bleed into 2020 no matter how this trade dispute starts to work out >> let me tell your viewers about net app. we help the world's leading companies store, protect and access their data to make their businesses go fast this is a core part of what you see as digital transformation. while there's some degree of

uncertainty about the overall macro that's affecting and making people more cautious about spending on i.t., we're well positioned for the data centric era. we are excited about the work we're doing with customers and feel like we've got a really strong position in the market. >> given that, how much of this is just fundamental weakness that customers might be seeing that's causing them to make a different type of decision about investing in equipment how much is just, well, we're not sure how this agreement is going to work out, so we're going to take a little pause and see? is this a short-term thing or should investors buckle in for a rocky start to 2020? no matter how these talks between the u.s. and china develop. >> you know, i think it's really tied to the economy. i think what we see with our customers is they continue to prioritize the transformation of

their business data being the heart of that we're excited to bring 5,000 of our customers to our customer conference next week where we will share with them a huge amount of innovation that we're bringing to help data driven transformation happen. i thinkthere's unquestionably some degree of uncertainty about gdp growth that's affecting confidence in customers. but we're prioritizing the work we do around the transformation of our customers' businesses that we think is enduring. >> you do have that conference coming up. i'm curious, some of the technologies you will be emphasizing if you can let us know about that a little bit in advance. i'm also curious, when it comes to the sales motion, we heard from amazon last night it sounded like they're doing discounting to lock in longer-term contracts. is that a part of what companies are trying to do, anticipating

turbulence ahead >> you know, i think that what you saw -- you mentioned microsoft as an example of a company that is doing really well in the market we have a broad relationship with all the leading cloud providers. and they are helping drive innovation and speed in their customers and we're a core part of doing that. what we're announcing at our conference is we're bringing all of the innovation we got in the public cloud to customers' data centers along with the experience that they get of buying on demand like they do on the public cloud we think that that will help customers make transactions move forward, because they can do it on a subscription model rather than a long-term commitment. we are excited of that >> speaking of your relationships with cloud providers, you got a dna relationship with the head of google cloud, your twin brother thomas

do you expect to see more shaking up, more movement among the leading providers and a chance, perhaps, for some challengers to gain some share >> you know, thomas has done a really good job and has had a strong start at google i'm excited for him. we work with all the leading cloud providers. it's a way to build applications that allows them to go really fast and be really portable. it can run on anything from a mobile phone to a large-scale data center. we have awesome technology alongside that we're excited to showcase some of it at our user conference we look for the long term. we're well positioned. we're really focusing on enabling customers to go fast using data. >> always welcome on "squawk alley. thanks for being with us. >> thank you be well. i bet those are fun dinner

conversations, family dinner conversations. european markets set to close in a moment markets here approach record highs. a breakdown of today's action overseas >> markets are finishing higher across the european continent. they are digesting corporate earnings and the latest on the brexit development we dive into some big earnings movers look at shares of european luxury retailers those shares rallying. on the other hand, you have french video game maker plunging to a new 52-week low after the firm lowered its guidance and delayed the release of three upcoming games you've got budweiser parent under serious pressure today after its earnings missed expectations those shares off by 10%. also saw their market share

shrink further in the united states belgian-listed shares saw their worst drop since 2008. another extension could be ahead for the uk's exit from the european union days ahead of the previous october 31 deadline eu ambassadors have failed to reach a consensus on the length of the extension some uncertainty but markets are higher for the week in europe. >> and here as well. we got our s&p record close. 2025.86 is what we needed. we got that. we are one point away. dow above 27k. let's get a news update. here is what's happening at a nato news conference in brussels, the defense secretary says the u.s. will leave more american troops and vehicles in eastern syria to help prevent

islamic state militants from gaining access to oil fields controlled by u.s. allied syrian kurds. >> we are taking some actions. i'm not going to get into details. to strengthen our position to ensure we can deny isis access to the oil fields, because we want to make sure they don't have access. >> fighting broke out in the epicenter of anti-government protests in beirut clashes occurred when supporters of hezbollah entered the area. he hezbollah's leaders urged them to avoid the protests. felicity huffman has been released from prison scheduled to be released on weekends she was sentenced to two weeks in prison. let's get back over to "squawk alley. thank you.

we are making a push for record closing numbers right now. the s&p is at 3026 if we closed here it would be a new record closing high. we're just flirting with the edge of a new intraday high. more "squawk alley" right after this break stay with us ♪ ♪ ♪ ♪ ♪ it's how we care for our cancer patients- like job. when he was diagnosed with cancer, his team at ctca created a personalized care plan to treat his cancer and side effects.

so job could continue to work and stay strong for his family. this is how we inspire hope. this is how we heal. we love you, daddy. good night. i love you guys. cancer treatment centers of america. appointments available now.

we got a closing record high on the s&p, surpassing the level on july 26 at 3025 and change.

talk about what it means -- by the way, triple qs would have a record if not for amazon the smh, semi is at a record high. >> s&p would have a record high if not for amazon. it would matter if it were flat. it's a little bit more of the same the market has been resilient and broad and kind of capitalizing on the fact that i think people were not positioned for good things coming into earnings season. it's not been necessarily a big burst of enthusiasm. i don't think you are seeing a lot of somebomoney chasing this market things were good fluff enough tp the ball moving ahead. i think there's a lot of pull being exerted by the advanced decline, the cumulative breath, the groups that have gotten traction that has made people say maybe this is well supported. credit markets are firm right now as well. >> we had market pmi yesterday

it's still early but showing signs of stabilization >> yes >> you got who knows maybe gm, the time says rank and file is going to ratify. reuters has a piece that the strike might take 40,000 off of non-farm next month. >> sure. you got a mulligan on the number probably i think the market for a little while now has been very fixated on the little curling higher in the economic surprise data and the global indicators that says, maybe the august/september scare was a passing panic and not something that was really the mr precipice of a recession. >> today but just this week, how much is he werie i earnings vere >> 3m fell hard, things haven't on paper changed similar situation for caterpillar, up 5.5% for the week now >> trade got out of the way in my opinion

today, a little more confidence that this is perhaps going to happen i think when we got to that initial agreement, the signal was, no further escalation, we're going to look for a way out of this. that allowed the market to say, what groups have been unduly punished by this i think you want to look at 3m or caterpillar or heavy global industrials that had been beating up on the way in that's what's happened by the way, european auto stocks acting better. stuff that people had left behind managed to come out the big question is, is it just a bounce is it because the rubber band was too tight? is the metabolism increasing >> in tech, something weird has happened if you look year to date, semiconductors helped bring us here some of the strongest movers then apple hit an all-time high today. at the same time, over the past

month, you have had roku and stitch fix and tesla and some names that tend to move down when something like apple moves up, everybody is happy. >> almost everybody. i think you have a real reset in software happened in a lot of the cloud names and things like that that did, in fact, hurt a little bit on the way up to the highs i do think it's been inclusive >> finally, twice as many companies last two days have guided down rather than up does that mean anything? >> certainly, i think what's telling is that, yes, they are guiding down relative to the published estimates. what was priced in for the fourth quarter is probably not great things the market and analysts were not speaking same way. i don't think you want another week of that next week, if we still have -- unless the market is basically calling ceos bluff and say, we get it

you are guiding down based on august thinking and not on october thinking that might be one case >> pen to paper maybe on the first phase of a u.s./china trade deal maybe record highs for stocks. what does it do to the fed next week >> the fed, i think it's largely baked in because they have not had the opportunity to readjust market perceptions the last five fed meetings to march, you had the market at a record going into it it was the occasion for a pullback, especially in the two times you happened during earnings season. that's your history. right now, the market has been acting like it's okay if the fed says, we might be done and on hold for a while here. because the mid cycle adjustment idea that really spooked the market early this year when it was talked about, because they wanted the fed to be maximum easy, is now seeming like the premise of where we are in the markets. >> thanks.

more on the market's record high and today's rally next. don't go anywhere. we're back in two. than just free trades?ur e fidelity has zero commissions for online u.s. equity trades and etfs, plus zero minimums to open a brokerage account. with value like this, there are zero reasons to invest anywhere else. fidelity.

fidelity has zero commissions for online u.s. equity trades and etfs, plus zero minimums to open a brokerage account. with value like this, there are zero reasons to invest anywhere else. fidelity. here is a look at what's coming up. new intraday highs is this the break skroouts for stocks where is the better place to invest in tech right now old school like microsoft and intel or the growth names like amazon and alphabet? we will debate that.

profits with a purpose we will talk to bobby turner he is making an impact in our neighborhoods and making a nice return doing it. all at the top of the hour we will see you in 20. >> see you then. facebook beginning the rollout of its news tab which includes nbc universal, "washington post" and a host of other notable newsrooms partnering with facebook as well as business insider, ceo and editorial director henry blodget. >> thank you for having me. >> as the ceo of a publisher that's going to engage with facebook, what do you think of it >> we're excited we think it's a smart move they have tried everything they could come up with to get a good quality of news within the news feed the problem is, they have discovered that what people engage with is primarily political content that either hurts the team they are rooting against or helps the team they are rooting for. there's really no way to get around that. now they are doing what a

newspaper has done, what a network has done and what others like apple, microsoft and others have done, which is say, these are high-quality news organizations. you want to be looking for objective news, here it is in this special tab >> some have complaints about that list. >> of course always all right. everyone will fight. facebook is smart. they will keep their standards up ultimately, it will settle out. >> we have seen facebook engage with news or make attempts as news before. how is this different? >> this is taking -- before, what facebook has done is said, we're going to judge quality by engagement and interaction as i said before, it skews wildly politically now they are saying, no, we're going to judge the providers we will put them all into this tab. then we will see ultimately what people like and we'll probably get more of that i'm sure they will have metrics around it. it's putting a fence around news

and saying, we're not going to weight as heavily your particular engagement with the stories. >> facebook has resisted this for quite a while. actually, making a judgment about what is credible and what is not i'm skeptical that they are going to put their money where their mouth is here and promote this to sort of change the culture of the news feed they sort of like to let a million flowers bloom instead of saying, we're going to have a garden, we're going to put vegetables there and flowers there and promote the vegetables do you think they will promote the vegetables >> the tab will be there >> are they going to point people to it are they going to do for news what they did for marketplace? are they going to use algorithms to promote what they judge to be credible >> over time in the feed if they invested a lot in the tab, which they have, i assume they will want to alert folks to it. people do consume news there's a reason people get a newspaper and watch news

broadcasts on television i think it will get that play. i think it's their way of protecting the news feed to be what people want to share. they didn't want to mess with that they were concerned, obviously, about what folks would say if they messed with one side politically versus another side. it's a hot button issue. >> after this week where we saw zuckerberg taken to task on political ads, do you think it's possible any other major platform will say we're out of the political ad game? >> in politics, i think on the news side to come back to that there are companies that have found a great solution to this problem. they include apple, microsoft with msn news and others where they have said, look, we are going to have a spectrum of publications on the political spectrum on the political ads, that's a tough question facebook is an easy punching bag right now. everyone loves to go after zuckerbe zuckerberg networks have to run political

ads. they don't make judgements why are you asking us to make a judgement like that? that's a reasonable question whether people want them to say this political ad is okay, this isn't. you can imagine the firestorm that's going to create. >> that's why i'm asking, do you think someone is going to say, we're not going to take any. the revenue doesn't seem that substantial. >> of the digital ones we have had cable networks say that, which is interesting i'm sure they will come under fire the other networks, i would say they would try to stay as far as they can away from it. >> thank you >> great to be here. nbc is included in tab the video game industry is on a tear. there's an issue many video game developers don't want to talk about. cheating with more money on the line, hackers try to find vulnerabilities that let players get special advantages a survey by a security company found 60% of online games were

negatively impacted by cheating. gaming the game. ♪ >> eliminate the taerrorists. >> reporter: this is the same video game but in the version on the right, the player has special solve wear or cheats that makes it easier to win. >> we will see him in a second >> reporter: in this modified game, you can see the enemy through walls. a distinct advantage bill is an 18-year-old recent high school graduate don't let his age fool you he is an expert in hacking video games to create cheats, something he knows could ruin the game >> i don't think that i'm either good guy or necessarily a bad guy. but i think that a lot of what i do can be interpreted as being

the bad guy. >> reporter: to find cheats, hackers find vulnerabilities in the game's code. it's an advantage people are willing to pay for >> for the higher end cheats, i sold them for hundreds of dollars a month. usually $100 >> reporter: insiders and cybersecurity experts tell cnbc that cheats are a huge threat to the growing video game industry. >> why would you want to play a game you can't win it's not fun anymore >> reporter: alex works for information security consulting firm trustedsec which helps video gamemakers keep your product secure. >> you buy cleats or add-ones. >> reporter: he showed cnbc websites >> they can be like a professional athlete using steroids >> reporter: from a halo tournament in chicago to a 16-year-old winning $3 million at the world cup in new york,

the video game industry is on fire and expected to bring in $174 billion in global revenue in order for games to succeed, players say developers must stop cheaters >> there was people across the map hitting me and instantly killing me >> reporter: gamers say it's uncommon to find cheaters at tournaments with money on the line >> if somewhere were to hack a tournament, they would get disqualified i hope so. >> reporter: at most tournaments, they control the computers and consoles and keep a strict watch when it comes to playing at home, it's an ongoing challenge for gamemakers >> you are fighting a battle you have lost. when i have my computer in front of me, i have physical access. it's difficult for me to prevent me from cheating the best thing they can do is make the bar high enough where it's not worth my time

>> reporter: hacking video games was a topic at this year's defcon an estimated 30,000 attendees. that where we met bill and security researcher jack baker >> because there's so much money on the line now, there's been a lot more of a focus on how can i make money off of that >> reporter: you are a game developer, publisher what can you do to prevent the cheats >> they watch for signatures there are ways they can look at behind the scenes to see if people are using these things. a lot is very reliant on users reporting. >> reporter: microsoft is the maker of first person shooter game halo. >> it's never really had a huge issue with hacking, thankfully for us, competitive integrity and experience of players online is crucial >> reporter: epic games declined an interview instead sending a statement saying in part, we will continue to pursue all available options,

including revoking access to fortnite to make sure our games are fun, fair and competitive. bill hasn't sold cheats since last year. today, he has no regrets >> i'm trying to transition more into the information security field. game hacking has been an extremely valuable learning opportunity. >> reporter: he demoed cheating. the maker of the game telling cnbc it does not tolerate cheats and exploits used in game. players found using cheats are penalized or banned. his demo was against computers back to you. >> video game cheats have been around almost as long as video games. a generation remembers up, up, down, down, left rig, right. is it online gaming that has changed the economics, the fact that so many people are trying

to do it now and there's so much more money to be made? >> reporter: that's right. you look at third party surveys. they will say most online games are impacted by cheats at this point. to your point, more games, we're not just playing on pcs and consoles smart phones, tablets, ton of money up for grabs you are affecting the game play. if people feel they are not fair, people feel they are not fair, they may stop playing all together. you see the publishers taking action. they're using anti-cheating software. they will ban cheaters. they're not afraid to take people to court if they have to, guys. >> it's a great report. kudos to you and the investigative team on this one. i'm curious if as this business continues to get bigger and cheating risks continues, if this is something that will change the way future games

actually get developed from the start, if that's even a possibility. >> the problem is designing a cheat, the way cheats are developed, it comes down to the game and how it's coded. some will be very difficult to create. others are much more easy. certainly, it's on the radar of the publishers. they can expect more cheats. they have to stay one step ahead. if you are creating the popular games, that's obviously where you are more aware. if you're creating and selling cheats -- when i was being shown where they are targeted, fortnite, of course, camup. no surprise there. >> josh lipton, thank you. we're watching shares of progeny popping. joining us first on cnbc is ceo.

congratulati congratulations. pretty smooth debut here. maybe you can walk through the model and talk about what led you to this day. >> thanks for having me. what we essentially do is we offer to large self-insured employers a comprehensive solution. what's very unique about us is that we have been successful in showing that you can have a great patient experience and you can save employers money at the same time. >> i was going to ask about the competitive landscape. talk about characterize sort of the competition that's out there and then the edge. >> so the competition frankly for us is a status quo. it's employers that turn to their traditional health carriers to provide a fertility solution. we really do everything differently from the benefit plan design focussed on outcomes as opposed to limiting access to care, the extensive amount of guidance and support we provide

and our network is very unique. we have the top fertility experts in the country to ensure that they're utilizing best practices and making sure members are having the best outcomes. >> it's amazing, because i remember with some of the big tech companies starting to offer some of the benefits around things like egg freezing to their employees, it was seen as such a big and sort of unusual type of benefit to the offering. since then, so many more companies have come on board with these types of benefits. how big is the opportunity here and what are the industries that are adopting them? >> we think the opportunity is very large. every company regardless of the industry is really seeing value from the types of fertility solutions we provide. while you're correct that the companies were initial leaders, it's becoming much more mainstream as frankly the issue

of infertility is becoming much more well known and common place in the market place. >> you point to a survey that shows that two thirds of employees, two thirds and up depending on the category are willing to switch jobs to ensure fertility coverage. that's a powerful incentive to take up your services i imagine when the labor market is tight. but when the labor market loosens, what happens to your model? people aren't so concerned about holding on to employees? >> we view what we do as a have to have. the part of the workforce that's in their child rearing years is an incredibly important part of the workforce. those employees know that fertility is very common and that treatment for infertility is very expensive. so they know that unless their employer provides sponsorship, they will never be able to afford it. employers are understanding that

it's recognized as such by the w.h.o. and a.m.a. they're realizing that this is an important and essential part of benefits packages. we feel well positioned regardless of economic cycles. >> is the price for some of these fertility treatments going to come down especially as more companies and more potential patients go to these models? >> well, we'll certainly -- fertility treatments are expensive. we have been able to accomplish and hold pricing relatively constant over the last several years. our model is really all about value for our employers, because our outcomes are so far superior, we are able to show employers that our solution will save them money which in today's environment is very important. you mentioned before, what happens in an economic down turn benefits that save employers money will be more important. we do feel well positioned.

>> thanks. congratulations. nice 21% move here as you go public at the nasdaq. >> thank you very much. it's a big day for us. we're really proud of it. the dow is back above 27 k. we're basically riding just a point below an all-time high on the s&p. i am totally blind. and non-24 can make me show up too early... or too late. or make me feel like i'm not really "there." talk to your doctor, and call 844-234-2424. hi, my name is sam davis and i'm going to tell you about exciting plans available to anyone with medicare. many plans provide broad coverage and still may save you money on monthly premiums and prescription drugs. with original medicare, you're covered for hospital stays and doctor office visits, but you have to meet a deductible for each and then you're still responsible for 20% of the cost.

next, let's look at a medicare supplement plan. as you can see, they cover the same things as original medicare and they also cover your medicare deductibles and co-insurance. but they often have higher monthly premiums and no prescription drug coverage. now, let's take a look at humana's medicare advantage plans. with a humana medicare plan, hospital stays, doctor office visits and medicare deductibles are covered. and, of course, most humana medicare advantage plans include prescription drug coverage. in fact, in 2018, humana medicare advantage prescription drug plan members saved an estimated $7400, on average, on their prescription costs. most humana medicare advantage plans help you stay active and keep fit by including a silver sneakers fitness program at no extra cost. and, you may be able to save on dental and vision expenses, because coverage is now included with most humana

medicare advantage plans. you get all this coverage for as low as a zero dollar monthly plan premium in many areas. and your doctor and hospital may already be a part of humana's large network. if you want the facts, call right now for the free decision guide from humana. there is no obligation, so call the number on your screen right now to see if your doctor is in our network; to find out if you can save on your prescriptions and to get our free decision guide. licensed humana sales agents are standing by, so call now. driverless cars, or trips to mars. no commission. delivery drones, or the latest phones. no commission. no matter what you trade, at fidelity you'll pay no commission for online u.s. equity trades.

tech is already doing well. came out and said they are close to finalizing some parts of a trade deal. we have the s&p record close shooting for the high of 3027.98. dow less than 400 points from its own record close. >> semi conductors have helped us get here. today's semi conductor of choice intel popping 7.5%. despite the supply issues above 56 bucks a share right now, about 56.19. a multi-year high, 58.78, not too far away. >> the other big earnings mover is amazon. after that stock fell as much as

nine percent last night after the big earnings miss and the softer than expected guidance, it's now down just one percent. we've had so many analysts say buy on the dip. it seems investors are doing just that. >> next week the fed and then facebook, apple, starbucks, g.e. let's get to the judge. carl, thanks. i'm scott wapner. we are on record watch as stocks surge. so is this the beginning of the long-awaited breakout? it is 12 noon and this is the halftime report. >> the road to record highs. the stocks that are fuelling this market, and how you position your portfolio from here. another huge week for earnings ahead. and a major moment for f.a.a.n.g., alphabet, apple, facebook on deck. shares of goldman sachs up more than 25% this year. and a big new bull call on t