good morning it is 8:00 a.m. at lime headquarters in san francisco, it's 11:00 a.m. on wall street and "squawk alley" is live ♪ ♪ good wednesday morning, welcome to "squawk alley." interesting day on this fed day as markets holding its cards close to the vest. we'll start with the busiest week of earnings season and a

big quarter for apple, set to report tonight after the bell. investors closely watching the company's current quarter sales and forward-looking revenue forecast joining us this morning, brian white as well as krish sangar. stocks had a great run here. how much is priced in? >> there's a lot of optimism going into this report i think really what's happening is the market is saying, look, we believe the services story. iphone 11 has been good out of the gate there's a lot of things we need to think b aabout. all three iphones came out in september, versus september and october. we have some tariffs that have kicked in that could drag forward. all in all it should be a decent report, but i think the services report is more important >> big week for apple tv plus, big premiere here in new york. how much of that story is understood, especially when we start now paying more attention to disclosure and accounting on

that part of the business? >> i would say a lot of it because there are a lot of unknowns one is the accounting treatment. number two is how much cap ex they are going to spend on original content an earlier estimate for calculation, some of the investors said $6 billion. a lot of unknowns on tv plus but it's going to be very interesting to watch because the first earnings call is right after they announced the pricing of tv plus and right on the cusp of the launch. >> brian, apple is up almost 20% since the last report. to level with investors, it's iphone expectations, right so despite the services story and tv plus and all of that, that fun stuff, you know, air pods pro, it's really about the guide for the holiday quarter and whether all of the optimism that's built up over these last few weeks bears out the numbers,

right? >> it's going to be important tonight for sure and i think -- again, i think this is a little bit different, a little bit trickier of an outlook than we've had in the last few years because of the different cadence and the tariffs. but underneath this is this trend towards appreciating services, right? we're talking here apple's 18 times ex-cash which is very, very cheap s&p is at 17 times so it's still very, very cheap but we've come on this program before and talked about apple being 8 times, 9 times so underneath all this the market is saying, look, we get the services story and really celebrating this is apple tv plus on friday this journey they have been on for many years now. >> like it or not, shares of apple have moved on every little china trade talk headline. how key is china to the numbers both tonight and also just for guidance in general for apple,

especially when you have third-party data coming out like today saying they're losing market share there >> absolutely. i think china is important for the stock for a few reasons. number one, like you mentioned, iphone market share there which is something like the mid-single digits right now for iphone in china. that is number one the other thing is if the tariffs do hit in mid-december, at some point in the march quarter, people may have to bake in some impact on earnings i don't think that's in the numbers yet so that is something to watch out for the third thing is also the app store does play an important role for apple, especially with china with the gaming downloads. so you see a three-prong situation where it does have an impact on iphone app store, which is services, and also eps with the tariffs coming out. >> brian, i'm less concerned about tariffs where apple is concerned than i am about chinese domestic reaction to

this tiff with the u.s., more than a tiff, trade war and the fact that apple doesn't have a 5g phone. is the greater china revenue an important line to watch here and what apple communicates around demand throughout the rest of the cycle? >> absolutely, you know. it's a huge market for them. just like hopefully one day india will be. there's been a lot of change in sentiment in the country just around american products and around apple will it have an impact on the quarter? i don't think so this particular quarter. it has in this cycle for sure, right? apple has bounced back i could see china being -- greater china being up 5, down 5, something like that, but absolutely it's a risk if the sentiment changes so negatively over there, this is an enormous market for them for sure. >> wouldn't it be weird, krish, to have china guidance -- i mean trade-related china guidance be

net negative given phase one it looks like we'll get a signature in november and talks will continue. sentiment around trade in general has gotten better. why would it be worse at apple >> i don't think it will be much worse to be honest around the sentiment. but like brian pointed out, i think the big question, the argument for apple and iphone is they have been losing market share in china partly because of nationalism, partly because of the trade tariffs and if you look at samsung galaxy, their market share is less than one person so why shouldn't apple be the same market share from mid-single digits. why can't they get to less than one person i think the other way to think about it is the opportunity to grow share in india where they are also manufacturing the phones or assembling the phones. that could help offset potential share erosion in china for

iphones. >> my last question, brian, is about apple tv plus pricing. everyone is talking about hbo max at $15 doesn't $5 look ridiculously cheap now? >> well, apple won't have a lot of content at first. if you buy an apple product, you get a year free. so really this is something -- you know, they're not going to be able to monetize right away, but it's a way to get users on the platform, a bigger piece of planet apple, and they can monetize that over time. so it's not guaranteed success it's going to take many, many years, but i look forward to it. >> lastly, krish, you've got an outperform rating on apple biggest risk to your thesis? >> i would probably say the biggest risk at this point is kind of like any further slowdown or deterioration on the services side because part of the whole thesis for us is iphones is looking pretty good, services is growing which is impressive i think the services growth is what is driving the multiple

higher for the name and i think that needs to be sustained for the stock to keep working. >> brian, i'll put the same question to you since you have a buy rating. >> services are important. i would also say the long-term picture in china. >> okay. >> brian, krish, thanks, guys. we'll see what happens tonight. up next, tinder co-founder sean rad, what he's saying about the company's path to profitability and the risks associat wh os we're back in a minute when it comes to using data,

everyone is different. which is why xfinity mobile is a different kind of wireless network that lets you design your own data. choose unlimited, shared data, or mix lines of each and switch any line, anytime. giving you more choice and control compared to other top wireless carriers. save up to $400 a year when you switch. plus, get 50% off when you buy any new lg phone. xfinity mobile. click, call or visit a store today.

is the recent wework ipo debacle -- just what are the risks to going public? joining us now, tinder co-founder and former ceo sean rad. sean, welcome. >> good morning. thank you for having me. >> great to have you you've got a venture good today i want to talk about that's enabling corporate and group donations to good causes first i want to talk about some of this turbulence around the idea of hero founders and just how much attention and how much compensation they deserve. as you've seen this wework thing play out, adam newman, the payout he's poised to get, what are your thoughts? >> well, i think he did an incredible job building the organization in the early days and, you know, now as they're going public, i think it requires a maturity that it

seems that doesn't exist so i think the landscape changes when the company goes public you're accountable to way more investors than your current base and your employees and i think that companies really need to do a good job of preparing for that long-term success. >> it's been about four years since match group went public. i'm sure you've grown and changed and done a bunch of stuff since then you've got this new venture. what are you going to do differently as a startup founder this time around given how the culture has changed and given what you've learned? >> so good today is a nonprofit. and the goal is to get people in the habit of giving daily, because we believe that if you give a little bit every single day, it's more impactful than giving a lot every once in a while. what good today does is every day we send our audience one charity that we curate and two charities that people can decide

to donate 25 cents to. the idea is, is to sort of get millenials, get audiences, employees at companies, waking up every morning and thinking of causes that are sort of bigger than their own and getting out of their bubble. it's a great way to start your day and it's a great gateway to further giving and learning what's out there and how you can have an impact >> sean, i want to get your thoughts on the news of the week new york state appeals court on tuesday rejecting isc's bid to dismiss a $2 billion lawsuit that was leveled by yourself and five other plaintiffs regarding tinder and tinder's valuations and what those -- what the prices were that you were paid out on this. so investors can understand, what happens next in this court fight, and do you see this as a potential win at this point in time >> we definitely see it as a potential win. so, you know, we -- my founders

and i and the early team at tinder, we spent years building the company into what it is today. we had very clear contracts in place that outlined how we would get paid when it came to honoring those contracts, the match group just blatantly lied and cheated and avoided paying us billions of dollars in compensation. now they have done everything they can to dismiss this case. they lost once they appealed that decision and yesterday at the appellate court, unanimously it was decided -- it was decided that they lost their dismissal and now we're going to court so this case is full steam ahead. >> all right i know we've reached out to iac for a comment on this lawsuit as well and i think we're still awaiting a response on our end too. but i guess in terms of lessons learned from that situation, what would they be that you would share with other founders? >> i think you've got to be

careful who you work with and particularly as you develop partners and investors you've got to make sure that their cultural values really match your own you know, at tinder it was really about being in service to the customer and waking up every day with a sense of purpose, where i think at our parent organization it was really about financial success and money. we just believe that when you put purpose ahead of profit, profit follows but that wasn't the sort of cultural value that we got exposed to while there. >> why a nonprofit this time around why not another tinder this is kind of like tinder for charity, i suppose, the one that you swipe whichever way on gets more money why not start a new money-making venture? >> you know, i think it's -- for me this is a personal passion. i think i've always -- at large

companies, we always had an opportunity to do good and i think good today is a good way to get employees involved in those decisions and which charities and causes we contribute to. so it's just something that i wish existed when i was ceo at tinder when i found out about this organization from those who contributed alongside me to get this off the ground, i just had to get involved because i thought it was a great way to get people who want to give into the habit of giving. people i think inherently today, particularly millenials, want to come to work with a sense of purpose. they want to have an impact in their lives. and good today is sort of that first step to get people engaged. >> sean rad, co-founder of tinder launching good today as well thanks for being with us. >> thank you still to come here on a big

hour of "squawk alley," an exclusive with warner media ceo john stankey don't go anywhere. the dow is down 9 points >> as we go forward on this, people aren't going to just buy content for content sake, they're going buy content because it'sassociated with other products and services. whether it's amazon who chooses to offer marketplace incentives to have video or it's at&t that chooses to put great value with pay tv or connectivity or broadbd soat wh itanasciedit, those are other reasons for people to come into the product as well. my e e career busines were in je. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555.

as massive wildfires continue to ravage the state of california, our jane wells is there with the latest on the easy fire. this story just gets worse and worse. >> reporter: yeah, this is the first fire, carl, during this 24-hour red flag warning system, actually more than 24 hours. it's not supposed to end until noon tomorrow. but the fire is now moving this way behind me.

you can't see it in the smoke back there it has grown from 15 to 200 acres. i think we have some video from knbc, our affiliate here, showing it the priority right now is the ronald reagan library, which is on a hilltop where the flames have been heading. not only is it the archives where the president's papers are kept, he's buried there along with nancy reagan so this is the priority there are some neighborhoods, some homes being evacuated the other priority is that the fire does not jump the 23 freeway which is directly behind me i'm at the underwood family farms. craig underwood has been on our air many times this farm would usually be open today. they have all kinds of pumpkin rides, they have the whole thing going. they decided yesterday because of this red flag warning across southern california to preemptively close the farm. that is a decision they are now very glad they made. they are getting ready to -- they have animals and they're

trying to form a plan on whether to evacuate the animals. the weird thing about this particular santa ana incident is that it is a cold winter wind. usually santa anas are hot and these are freezing it is a cold winter wind without any moisture in it the perfect storm without a storm if you will. we could see more throughout the day. we don't know the cause of this fire it's called the easy fire because it started on easy street, which is right near the 118 freeway. no idea, but maybe people -- i can't imagine anyone would throw a cigarette out of a car window driving on the freeway in these conditions but we have no idea the cause at this point. i want to throw out a couple of numbers before we go this is a ventura county fire din incident cal fire will probably assist. cal fire with all of the fires they have had this season with their budget that starts july 1st, this year they budgeted $691 million emergency found fighting fires so far they have spent $115 of that compared to last year when they

only budgeted $430 million and by this time last year, they had spent the whole thing. so they haven't spent as much as last year, but they have also budgeted more for it and one other thing, core logic is estimating that the costs, the loss of all the homes so far in the major fires we've had this month totals over half a billion dollars. no containment, no word yet on what's happening with this fire. we'll keep you posted. >> jane, wondering -- of course concern for all of the people and homes in that area but when it comes to the reagan library specifically, are there any additional resources available to protect that? >> reporter: well, it's funny you should mention that because one of the big things over the last couple of decades in california has been to use goats as fire protection the goats come in and eat all the brush. this is something the reagan library spokeswoman says the library has employed

in fact they just had some goats come through to keep the brush down but what we've been hearing from the scanner reports on twitter is that this is really their priority they're asking for all hands on deck, basically to get up there. that library is on the top of the hill fire moves up. as fire jumped the road that was on the far side of the library and has been moving up, we don't know right now what kind of handle they have on it and then of course, again, not jumping the freeway coming this way. as far as we know, the freeway is still open. >> that is always the danger point for these fires in urban areas. our thoughts are with not just the families and residents but the firefighters who continue to work around the clock. jane, thank you for that our jane wells out west today. europe turning back the clocks this week the euro close moves back an hour until we follow suit this weekend. you can catch more on today's movers overseas at half past noon easte te rnimon "the halftime." we're back in a moment

any. 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.

i athere was a sports carre and a family saloon car and i always had in my mind that one day the family car could compete in rallies and racing when the mini actually came out i said this is the one to do it.

welcome back, everyone i'm sue herera, here's what's happening at this hour a state department special advisor for ukraine arriving on capitol hill for testimony in the trump impeachment inquiry.

katherine croft is expected to tell lawmakers about phone calls from a lobbyist demanding that then ambassador to ukraine marie yovanovitch be fired. three people were killed at a house in long beach, california when officials arrived at the home they founding three dead and nine injured all of the deceased victims were male no motive yet for the crime. former secretary of state and exxonmobil ceo rex tillerson is testifying in a new york lawsuit over claims that the energy company misled investors about how much climate change could cost it. he told the court company leaders sought a full understanding of how new climate regulations would affect the bottom line. brazil's president launching a fiery defense of his government while on a visit to saudi arabia, rejecting any criticism of his handling of the recent forest fires in the amazon region. this during a speech at an investment conference in riyadh. you are up to date that's the news update this

hour back downtown to you guys on "squawk alley. carl, back to you. >> thanks very much. let's get back to burbank and david faber on the warner lot who has a lot more with warner media's john stankey. good interview, david. >> thanks, carl. it was interesting to sit down with mr. stankey in addition to being the ceo of warner media he's the president and coo to at&t. we certainly spent a lot of time talking about the rollout of hbo max. it began yesterday here at 3:00 p.m. pacific time with a presentation to the press and to the analysts that were in attendance $14.99 is the price tag for what is certainly a greatly expanded content offering beyond just what hbo gives you but it is still a question mark out there as to whether given that price, it will resonate in the marketplace beyond those 34 million people who already pay

$14.99 or roughly in that area to get hbo and whether or not given the comparison with disney plus or netflix, it really is going to gain significant ground. here's what stankey had to say >> first of all, they're not the same product, okay the disney product in terms of to kn tonnage, the coverage of the type of content that it provides, it's not the same product. so we have a product option here where we can go in with a much broader demo and a much broader slate of content i think you saw that there's some pretty impressive and unique content in there. i would tell you, secondly, as we go forward on this, people aren't going to just buy content for content sake, they're going to buy content because it's associated with other products and services whether it's amazon who chooses to offer marketplace incentives to have video or it's at&t that chooses to put great value with pay tv or connectivity or

broadband associated with it, those are other reasons for people to come into the product as well. >> interesting his point, of course, in terms of continually connecting this product notjus with and or competing against the likes of netflix or disney plus but the importance that it represents for the wireless business at at&t and their firm belief at the company that it will have the effect of reducing churn in the wireless business, the linking of their wireless subscribers with the opportunity to participate in something like hbo max perhaps at some price discounts or other offerings that are associated with it. of course mr. stankey is no stranger to some criticism certainly they settled earlier this week, that is at&t and the management and the board, with elliott, their fairly large sharehold shareholder. i say settled as in got support from elliott for their plan. we outlined that on monday when

we discussed it at length. but it doesn't mean that he was not the subject of a lot of focus in terms of at least his potential ascention to the ceo job and whether or not he's done a good job previously. i did ask him whether all of this criticism and focus is something that he cares about. >> of course i care. i care about my reputation, but i think at the end of the day i get paid a lot of money to put up with a lot of different things and i understand that what i don't like about it is i think sometimes it's distracting to the people around me, the people who have to do work people we're depending on to bring important product out to the market that part of it bothers me a bit. it's not that it bothers me that they're saying things about me, i want the organization to be focused. >> is there a lot of hostility out there? do you sense it amongst the people around us here in this incredibly creative spot, or do you feel like you really to have

a level of cooperation you're going to need to achieve what are significant goals? >> you know, i've been through a lot in my career i've had a lot of great opportunities and been through a lot of interesting moments i think eight major m & a transactions in my career. putting businesses together isn't the easiest thing in the world. oftentimes you buy a company, you pay a premium, you can't run it the same. you have to make changes. >> and of course they are making significant changes and they are, and he has been at the forefront of this, carl, trying to put together the disparate some would say creative parts of the business to have them cooperate more than they had been in the past the water tower, you can't quite see it, but it has been draped in hbo max signage and that's not insignificant. it is a real reflection of the fact of what they're trying to achieve.

sankey saying probably the first time the words hbo have adorned anything on the back lot at warner brothers. >> david, great stuff. i thought it was particularly fascinating the way he referenced amazon and you went on to ask him about whether young adults would actually pay for the service, especially given the price point that they released with the service. how did he respond to you on that what did you think of that >> you know, he thinks that there is going to be value there. that a younger demographic will be willing to pay for. and he did point out, of course, over time as they age and their taste changes, there's perhaps going to be more of a willingness to want a service like this. he also introduced the idea of a family plan in some fashion, morgan, sort of indicating at least that there might be some opportunities they see to sort of get younger people, so to speak, which is a key demographic they're focused on with the hbo max -- the max part

of it, if you will that they might be able to get to those -- that group that way. but it remains sort of -- the price remains a key question they're looking for 60 million incremental subs to be added to the 34 million people who are already subscribing to hbo right now over the next five years not that heavy a lift in some ways but at the same time hbo has been a property in the marketplace for a very long time, a premium property that, well, 34 million people subscribe to, not the 60 plus million that netflix has so you do wonder whether they'll be able to bridge that gap, get to those numbers domestically, the 50 million that they're targeting, and we'll have to wait and see. >> david, now we've got hbo go, hbo now, and hbo max i'm already confused i mean i know that -- >> yeah. >> -- that some of it is for people that already subscribe on tv, but is the consumer going to

be able to digest all of this? do you have hbo? you either have it or you don't. is it go, is it now, is it max, is it max go what is it now >> you know, jon, they are going to be -- as they said yesterday, they are all in on hbo max that's the product that they will be significantly marketing. i think the expectation is if you are an hbo subscriber, you may want hbo max because the price differential is so little. if you're hbo go, again, you're going to move to this new platform because of the added content, the breadth, the depth of it, all the classic movies. you can go through a lot of different things the real question to some extent is what are the cable companies going to have to say we didn't actually discuss that in terms of any pushback they might have because you are going to see people potentially say to their cable provider, well, all right, i don't need hbo here anymore and they will go direct to consumer and sign up obviously digitally for hbo max.

so that certainly will be an important component over all of the change that they are expecting to take place. >> max, plus, i would love to be a fly on the wall for some of these meetings around names for these streaming services david faber, thank you up next, my exclusive interview with navy secretary richard spencer. what he told me about the jedi contract, boeing, a whole lot more and later, another exclusive with the co-founderand ceo of quk al "sawley" continues after a quick break. phone any. (woman) but to businesses, we're a reliable partner. we keep companies ready for what's next. (man) we weave security into their business. virtualize their operations. (woman) and build ai customer experiences. we also keep them ready for the next big opportunity. like 5g. almost all the fortune 500 partner with us. (woman) when it comes to digital transformation... verizon keeps business ready. ♪

i wouldn't be here if i thought reverse mortgages, took advantage of any american senior, or worse, that it was some way to take your home. learn how homeowners are strategically using a reverse mortgage loan to cover expenses, pay for healthcare, preserve your portfolio and so much more. a reverse mortgage loan isn't some kind of trick to take your home. it's a loan, like any other. big difference is how you pay it back. find out how reverse mortgages really work with aag's free, no-obligation reverse mortgage guide. with a reverse mortgage, you can pay whatever you can, when it works for you, or, you can wait, and pay it off in one lump sum when you leave your home. discover the option that's best for you. call today and find out more. i'm proud to be a part of aag, i trust em, i think you can too.

welcome back in what's already been a busy week for aerospace and defense, i sat down with richard spencer, the secretary of the u.s. navy one of the things we discussed, that $34 billion f-35 deal struck between the pentagon and lockheed martin. it's the largest contract to date for the fighter jet program which will include aircraft for the navy i asked secretary spencer what it signals about military spending >> the reformation efforts we're doing in the pentagon itself, how we do business, how we conduct contracts, how we let contracts, buying smarter, being a more intelligent client to know what the market needs from us so we can extract the most efficiencies and get our requirements fulfilled the other is actually on contract specifics, how we're buying smarter you look at the f-35 block contract that did provide amazing savings. look at how we buy the virginia

class submarine that we're letting with general dynamics and newport news we are buying smarter. >> some of the navy ship building programs like the new aircraft carriers have been under scrutiny cost overruns, delays, and he says that is changing. we also talked tech, including the military's transition to the cloud, how the jedi contract just awarded to microsoft will affect the navy and how it speaks to a broader push to adopt more commercial technologies and make business with the government feel, quote, less cumbersome. >> i look at our smaller company supply base, which make up the largest numbers of suppliers we have when we come in and go here are the cyber rules and regulations we have, it's two big feet at the front door and the poor small company goes i can't afford to do business with the government, it's to cumbersome cloud gives us a step forward. we keep data in the cloud and

the contract data is used. it actually puts technology to the advantage of us. >> that was a wide-ranging interview, to say the least. we talked a little bit about priorities for the navy too and this military modernization push how much in terms of future investments will go toward the so-called legacy programs and the ship building programs versus what he calls force 2.0, weapons of the future. we talked about a.i., quantum computing. he's even thinking about 3-d printing and how they basically stay ahead of the curve of their strategic competitors out there in the world, namely china, russia, some of the other geopolitical threats we also talked about boeing, given the testimony on the hill and everything that's going on with the 737 max, which is commercial business for boeing given the fact that they are a key defense contractor, says they're watching it closely and

that in general, though, boeing is marching along as asked on some of those programs with the navy guys, wide-ranging interview check out more of it on cnbc.com. >> the military has been talking about modernizingthe purchase process for a long time. that was one of the talking points about jedi ahead of them deciding who was going to get this contract. i'm really curious to see how that plays out does that mean the margins aren't going to be as good for microsoft because the government expects parity in how things are priced does it mean they are actually going to make decisions more quickly about exactly how different technology platforms need to be specced out we'll see. are they going to announce that? >> i think there's a lot more discussion to be had about jedi. we talk about this as an up to $10 billion contract over ten years. but the minimum required payment is only $1 million one of the other things we talked about too is also just

this idea of capital flows as a national security issue. it's something that you raised recently in a "wall street journal" op-ed. >> did he have a view as to whether or not the microsoft award was politically motivated? >> no. you're not going to hear that from -- navy is not involved in the contracting process. truth be told your not going to hear something along those lines from the dod in general. there are very specific rules and regulations, protocols in place for how contracting happens. things like protests, which is what everybody is expecting from amazon now we'll see if we get that next week unfortunately it's a part of doing business and it's a part of the contracting process for many big high-profile programs. >> all right right after a quick break, a cnbc exclusive with lime co-founder and eo brad bao. later, apple's latest headphones the air pod pros available today. we'll test them out here at post 9. we've got two pair don't go anywhere. we're back in less than three.

- [spokesman] if you've tried college but never finished, (group cheering) snhu lets you transfer up to 90 credits toward you bachelor's degree. - [woman] it doesn't matter how old you are, you can do it, you can finish. - [spokesman] finish your degree at snhu.edu by the way, she's the it wasnext mozart.g day. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places.

another $300 million round earlier this year bringing lime's total valuation to $2.4 billion. but is an ipo ahead in what has become an increasingly crowded mobility space brad bao joins us exclusively. brad, thanks for being on with us good to have you welcome. >> great to be here, thank you >> before i talk about some of your longer term plans and what

that means regarding a potential ipo or anything else along those lines, first let's talk a little bit about growth at lime, because the last time you and i spoke, you mentioned that the numbers were very strong can you break those down for us? >> yes lime is the global leader in the micromobility space. we are operating over 120 markets in over 30 countries as a company we're only three years old. so we are the global leader in the micromobility service by any metrics. regardless if it's trips, numbers, users, number of markets. roughly about two weeks ago we announced we had generated over 100 million trips and that's twice as fast as any other company in the mobility space that we know of. what it means to the society, that we brought down, you know, the car trips by roughly about 25 million miles that's enough for about 1,000

times. >> are you profitable on those rides? what do your economics break down to? >> we are economic positive as a company for the entire quarter last quarter and we're profitable in the last majority of markets furthermore, we believe that we're going to be profitable as a company in 2020. so, yes, the economics on the business is very strong. >> brad, there's a plague of scooters in some cities right now because people are just riding them to their destinations and dumping them on the sidewalks, on lawns, all kinds of places like that. i view that as potentially the biggest danger, perhaps, of the long-term viability of your business how quickly can you work with cities to get a consistent solution to that >> yeah. we are determined to work with the community and cities that we provide our service in so month ahead before any market

launch, we sit down with the cities and discuss what's the plan to incorporate micromobility into the urban transportation and how are we going to roll out and make sure not only is it convenient and affordable for the users but also is considerate for the pedestrians and communities around and parking and other things are the things we're learning together with the city, how to further improve and as a way of example -- >> who's doing the best job? who's doing the best job where is it working? >> i think there are a few -- of the company i belief thve that e is doing the best job. but in terms of the cities, there are cities learning faster take paris how they converted some of the car parkings into scooter share parkings and adding more bike lanes to protect the safety of the riders and many cities are advanced on that front as well seattle being one of them. poland we're really proud of the

collaboration that we have with the city of poland. >> the cities where adoption is best, is it more about demographics or geography in your opinion >> i think it's more about perception and also in terms of like their embracement of the new technology that it can help to fight and combat the traffic congestions and also pollution that we're facing on a daily bas basis. we are facing exactly the same challenge every day. the traffic getting worse, the pollution getting worse. and also equitable access to mobility options is getting worse. so i think the -- that part takes a little bit of time for folks to wrap their head around. instead of adding more cars to the road, you know, we can embrace the new technology and new form factor of electric sustainable and affordable options. that will really make a huge difference we have cities that are more progressive on this front and we have seen cities a little more

conservative but we are providing them with our knowledge, data sharings and learnings from other cities to help build the profit. >> just to bring this full circle, what are your plans? would you take this company public how are you thinking about it? >> yeah. you know, i believe we will for two reasons. one of them is that it brings in more disciplines into the financial and operations of the company, which we are aiming for the long-run and we are aiming to be the best partner for cities so we got to be a trustworthy city the second part is a unique thing. i always have in mind we have tens of millions around the globe, and they are fighting against the pollution and the traffic congestion with us we want them to have the opportunity to be part of lime, owning some of the stock of lime. >> brad, thanks for joining us

today. ceo of lime. >> thank you. >> yeah. there is a new gadget out today, the airpods pro. todd has got a pair. i got a pair, too. we got four. let's talk about them. how different are these from what came before them? what's the value like? because they're expensive. >> they are expensive. >> yeah. >> so very different completely redesigned. you get a little bulkier case here than the last model but you get noise canceling, which is huge. that means you can block out background noise if i were to put them on right now, i can block out all the noise of the exchange right now and just hear my music or podcast or you guys talking. and then there is also a transparency mode which is really cool. so if you are on the subway and you need to hear the stop or announcements, you can turn that on you can hear everything else for $250, that's expensive

on the other hand, it's smart of apple to create a pro line because they have already been selling millions of these things, the regular airpods. they're the most popular headphones in the world, they say. so what do you do next introduce some more expensive models and sell to more people who want noise cancellation, right? everybody has these bose headphones on because they want noise canceling. >> i wonder if this is going to cannibalize beats by dre or some of the other headphones they have. >> i have reviews the beats headphones, too. i know they have the power beats pro, which are really great. although, these are supposed to stay in your ears, too, and are sweat resistant. but they tend to be different audiences from what i have heard. they still continue to sell to people who were buying beats in the past i know the beats solo brand has

been like their most popular ever, so that's why they just released the solo pro. >> they had a whole marketing campaign of the silhouette with the white cord draping down. do these stay? could you run with these >> yeah. they stay in your ears and i think better because they have three different tips this time a lot of people i talked to that didn't like them in the past said they were painful because they were plastic or they didn't stay in their ears now there is three different tips so you can find the size that fits you right. and there is software that helps tell you that there is a good seal and that the tips fit right. >> karl, i'm going to embarrass myself on live tv on purpose this time. i've got tiny mutant ears, right? in the past airpods weren't good for me because they would fall out. these silicone tips, i've had them for 24 hours. they stay in. >> that's impressive. >> they stay in. >> they're also $250

not everybody is in that market. >> right. >> but the noise cancellation works. i can tell you that. >> and i think there is a huge market, as we know from apple fans who are willing to spend a lot of money so, you know what, if they were able to sell at $149 or $159, then $199 with the wireless charging case, i think they're making a good bet to see if people will spend $250, closer to $300 once you add apple care plus, which you should because if you don't get apple care plus, it is like $189 to replace these altogether otherwise it's $30. >> thanks. wweill have a lot more. we're back after break the drive is sponsored by american electric power, boundless energy

if you're on medicare, remember, the annual enrollment period is here. the time to choose your medicare coverage... begins october 15th and ends december 7th. so call unitedhealthcare and take advantage of a wide range of plans with a variety of benefits... including an aarp medicare advantage plan from unitedhealthcare. it can combine medicare parts a and b, which is your hospital and doctor coverage... with part d prescription drug coverage, and more, all in one simple plan... for a low monthly premium or in some areas, no plan premium at all. take advantage of primary care doctor visits... preventive dental care and an eye exam... all for a $0 copay. plus, earn rewards for completing other preventive care activities, like flu shots and annual physicals.

you could also get over $150 in free health and wellness products. so now's the time to look at unitedhealthcare's variety of plans, and let us help find the one that works best for you. also ask about our ppo plans that let you see any doctor who accepts medicare, without a referral. and take advantage of in-network costs, at home or traveling, when you see doctors in the unitedhealthcare medicare national network. with many of our medicare advantage plans, you'll have $0 copays on the most common prescriptions. in fact, last year our medicare advantage plan members saved an average of over $6,500. and with renew active, enjoy a free gym membership and up to $115 in rewards for staying active. you can count on our guidance and support to help you get the most out of your plan. we can also help you schedule appointments or find a specialist. annual enrollment ends december 7th. start taking advantage of all the benefits... of the only medicare advantage plans with the aarp name.

we make it easy to enroll, too. so call unitedhealthcare or go online today. [sfx: mnemonic] reaction to quarterly numbers. which companies offer an edge. >> if you tell a young person, why don't you be like elan it's a negative role model, where the response is, that's too hard i can't do that. >> that's peter thiel last night. says it is actually a negative role model for people because he's too hard to -- who could possibly live up to his standards, right >> all the role models are kind of negative in that sense, like

you, karl. i can't say i want to be you but also elan doesn't seem very happy. i think that's a problem. >> in a couple of hours we will learn a lot more at the presser at 2:30, apple, facebook, etsy, lyft. >> it will be another big day for earnings let's get to the judge "fast money halftime report." >> thanks so much. i'm scott wapner stocks in the fed, a critical decision on interest rates less than two hours away now. the record-setting rally perhaps hanging in the balance it's 12:00 noon and this is the halftime report. the fedex pe expected to cut rates again. what that will mean for this record-breaking market apple earnings after the bell. facebook also on deck. the traders take their positions. ge, the stock having its best day in over a decade is it time to get back into the stock? boeing