tuesday, february 4, 2020. that car you're going to sell it "squawk box" begins right now. ♪ for less there but they're going to make 10,000 dollars in profit per car and in addition to that the suppliers are so anxious to do business with tesla they give them terms. you don't have to pay for what we're giving to you for 60 days. >> good morning. we are livhe marketsite in time square joe is out today joining us is michelle great to have you back >> it is a pleasure, thanks.>>ay strong green arrows across the and from the time he takes an order to the time he pays for it it's 30 days so basically suppliers, working board. the dow was up by 143 points capital in this business yesterday. the decline on friday was down over 600 points. the dow future is up the nasdaq would open byabout and it's going to be at least a 90 points.

let's look at what is happening trillion dollars in revenue and in the treasury market value growth opportunities going forward. >> the ring tone on my phone is we have seen the yields under elon musk saying boring bone pressure because of the coronavirus and what that means. headed questions are not cool the 10-year yield picking up a from the conference call several quarters ago when he was under a little bit >> we'll talk a little about lot of duress. it's called those times of his earnings shares of google parent slowing growth in ad business giving investors reasons to sell. breaking outnumbers for youtube and cloud businesses for the first time ads generating $15.5 billion and more than troubles $4.7 billion in the fourth i said i wasn't sure to be able quarter alone. to do it but i had great we'll dig into that this hour. confidence i could do it so i did it. >> let me ask you a question, those revenue numbers. have you ever doubted in the story along the way since you have been an investor? youtube on its own is bigger >> well, i told him originally

and everyone else as well that i than viacom. wasn't sure. i gave it a good chance. initially i thought it was they've never broken out these unlikely when he came public at numbers. for years, investors were 30 or $35 a share. changed my mind when i realized i was wrong and the stock had screaming out. >> they knew it would be gone from 30 to 80 and i was out in california and we were visiting one of our portfolio significant. given how poor this quarter was. managers and we were visiting if you are going to start with elon for a couple of hours. might have to cut out early and disclosing >> you can't take it back. mike at least you're smart >> i think you disclose in part enough to have invested in to say, look, maybe the earnings tesla. i can't believe i didn't and he over here weren't what they said i sold it i said you sold it are you kidding? after he listened to what he expected some people call that distraction too. >> we talked about yesterday how said and i start bidiuying at 10 younger generations are i started buying at 160 and it consuming media. our teenagers watch youtube took me two years to uy contently. >> like tv >> instead of tv from cooking to makeup tips to people singing

>> you look at the results and some investors are disappointed because of still spending on other projects the idea was that the cloud revenue was supposed to offset those. yet, with he see some disappointment in the shares >> i want them making other bets >> you are not a share holder. a picture of a truck sitting on who cares. >> that was the surprise top of his car it's indestructible. reaction is that people were that wasn't the picture to show supposed to be not worrying. me and so i wasn't convinced for >> that tells you what's a long time and then ultimately happened to the share holder i said boy, i really think -- base same thing for years, jeff bezos was clear just one more thing and the one from the beginning that i'm not more thing is that i said that in this to turn a profit right whether he is successful or not now. i'm in this to build a bigger i'm really glad that i have and bigger thing you get to pick who your share invested in this company because i'm helping this guy saving the holders are. earth. this guy is an unbelievable guy and great business man and if that's what they want to do, saving the planet.

>> you can be a philanthropist. you are either with them or not. >> there are the shares right >> i eintended to make money. now, they are down by 3% >> you have. but there's been so many times because of the high-stock price. along the way that it was probably hard to stand by. >> that is a decline of $45. were there times that you had doubts since you began an investor whether it was let's talk about shares of tesla solarcity getting wrapped in or all the issues that got brought coming off their jump. up along the way or have you soaring at around 19% after a been steadfast the entire time bullish down grade news from the battery factory >> the 420 private equity that it turned a profit for the non-deal. >> i am aware, it's not relying on what other people are telling first time ever. we'll talk to long-time tesla me is what things i should think about, we're talking with them all the time and to try to backer that stock was up 20% yesterday. understand what issues are and it looks like it was indicated not just with elon but with up another 30% this morning. executives at the company and >> gm sold 8 million cars in the chairwoman so we talk regularly and no, i was never shaken in fact, they said they were 2018 ford sold 6 million. amazed that i just was sailing right through it tesla is just getting to 600,000 i was convinced the whole time that this was going to be a very and yet it is bigger than ford successful venture and then i told other people that i thought and gm combined. it would be.

i was convinced it would be. >> clearly people have huge >> ron, we have t los more to talk about with you this expectations where this is morning. we want to get your views on the going. >> he's weathered some down market maybe talk to you about what's happening with the coronavirus turn right now, the bulls are and we'll go through some of your other holdings as well. winning. this has taken off it's wonderful early call on tesla. meantime, we have some drama somebody that's a very early in iowa. believer and it's paid offha han if you were thinking you'd wake up and we'd have some results for you, the results have been off handsomly. delayed after the party said it >> when we return, iowa caucus chaos. found inconsistencies with the inconsistencies and reporting results delayed the outcome and return and then manually verify. many of the candidates already moved on to new hampshire. now blaming a reporting issue what exactly happened to cause the debacle and what does it and said results will be mean before we head to a break let's released later today verifying the digital results, get a check on the markets green arrows across the board. two sets of hard-copy backups. dow will open 327 points higher. nasdaq looking to open 94 inpots saying they had a heated could higher we'll be back in just a moment

be conference call >> i guess there isn't an app ♪you make everything... groovy...♪ for that >> there is not an app for that. we have numbers across our screen all the time. done yet? results. yeah, yeah, sorry, sorry. real time. nothing. you sure? hmm.mmm. we have nothing to show. >> apparently this was an app ♪come on, come on, wild thing. if you ride, you get it. geico motorcycle. just put together. >> a group called shadow fifteen minutes could save you fifteen percent or more. >> pushed by the national party when they said you have to find a better way to come up with this it was not tested. >> there is controversy to find out who was the creator and concerns from cyber security concerns >> meantime, we have somebody who may have results his own results. polster and political strategist frank. what do you know >> we interviewed about 50 people yesterday before, during and just after the caucuses.

i can tell you there are some very angry, very depressed people i myself said if you can't run a caucus, how can you run a country. this morning, this is very bad huref thousands of people came out to vote they came out for two or three hours and exercised their democratic responsibilities. they wake up and there are no votes at all we've been hearing for years about voter suppression or fraud. this is worse. it is as if no election took place. no cheap shots this morning but be very, very depressed that our [ fast-paced drumming ] democratic system failed last night. we wake up with no votes counted. no winners, no losers. just wondering does our

democratic system actually work anymore? >> assuming we get a tally later this afternoon, how consequential is the delay in terms of country and iowa's party view even of the numbers themselves >> it is significant remember, it is not about the candidates but the voters. they've heard about russian hacking and voter failure. we go back to the year 2000 where we had essentially a tie they wonder in 2020, why does this system still fail you know this will be played out >> still to come, we'll get other investing ideas from not just nation ylly but investor ron barron plus the latest on the coronavirus globally the world will be watching outbreak from china and a people came out expecting to program reminder, a special here have winners and losers. on cnbc, outbreak, coronavirus,

we were at four caucuses last the effect on the global economy, oil and your night. people understood the process investments. tune in at 7:00 p.m. eastern moving from candidate to time in the meantime, here are the futures at this hour yeah, so big push upward candidate. dow futures indicated up by 327 then they find out those votes points the s&p futures would open up by weren't tallied. a lot of people aren't going to 32 and nasdaq up by 93 squawk box will be right back. trau trust them voters themselves are frustrated ♪ yes i'm stuck in the middle with you, ♪ and angry. >> frank, the system in iowa is no one likes to feel stuck, boxed in, or held back. hardly traditional as to what especially by something like your cloud. happens across the united states it's a problem. is there any chance this caucus but the ibm cloud is different. system in the state, which they it's open and flexible enough to manage all your apps and data securely, anywhere, depend from the outside seems a across all your clouds. so it can help take on anything from rebooking flights on the fly, problem sometimes. any chance the system will to restocking shelves on demand, change after this? without getting in your way. >> there is a chance ♪ ♪ i've met with a number of democratic officials in the state. >> in the states

>> not just iowa who believe this is not representative of the country or the party. i know i looked around last night at a number of different caucuses and it wasn't representative of the gathering. however, iowa voters take this seriously. how many of you met a president, one out of four raised their hands. you can't find that in any other state. these voters are serious about the choice that they make. that's the best defense. if you can't count the damn votes and get a system that actually works out here and reports the efforts, then you lose that responsibility, that right to go first. >> this is the government officials don't have any

oversight in this. >> exactly this is the partisan matter and they've really let the voters down today >> there is a huge push for what they called tiered voting, which is, okay, you go out and vote and actually rank. if my first choice doesn't get enough votes, here is my second supporting innovative companies choice that will shape tomorrow already they are saying, if we and building workforce development do this, you wake up the next and tuition-free college programs morning and know what happened to generate the talent companies need. it could take days with a $150 billion investment in state of the art, is that basically what you have modern infrastructure, is live dynamic, in real time and a nation-leading commitment to low-cost clean energy, new york is doing more than any other state ranked voting. is that part of what the issue to build for the future of your business. is here? if we start to see ranked new york state, the state of the future. learn more at esd.ny.gov. voting, could we see the similar delay and results. >> if the process works and the

voters do what they were supposed to do, which could happen this was not the fault of the voters this is the fault of the people who supervise it people that do the technology ought to know better this is going to destroy the confidence in using technology, expanding the ability and the rights of more people to vote. this does make it complicated. they have rank voting and it worked there why did it not work here they should be asking that question and should be outraged. >> it is reasonable to be outraged my question to you is, if you had to give us numbers based on interviews and polling, and then joe biden and heading to new hampshire for where do things stand right now? >> i'm going to go out on a next week's and want to know limb

i think when votes are counted, i think bernie sanders will win more about the tax plans and for that robert frank joins us at narrowly there are several different ways the table this morning. >> one of the issues at the they are counting. heart of the primaries is the i was very impressed with the wealth tax but opposed by sander's campaign and how well buttigieg, biden and lots of other candidates organized they were. a new study finds that the there was clearly support for wealth tax could lead to a massive takeover of u.s. assets mayor pete the question everyone is asking, by overseas investors. how well did president biden do? so sanders wealth tax starts at 1% for individuals with $60 people were loud, expressive, million or more rising to 8% for the room was packed but in the individuals with 5 billion or des moines area, i can tell you couples with 10 billion or more. that joe biden did not do as he said it raise 4.4 trillion well as other parts of the state. people are wondering did he over 10 years. because overseas investors would finish third or even possibly not face a wealth tax they would have a substantial economic fourth >> frank, quickly, with all of advantage over americans and this confusion that has kind of buying and holding assets. worked its way to the process, they would all be effectively what does this mean for the cheaper for overseas buyers. national election with some

democrat up against president trump? >> it means we are going to trust each other less. it will add and faith in the and international investors would replace home grown process will slip. billionaires as owners of they'll say, you see democrats, capital. the u.s. investor worth 25 you can't even run an election, million and they own a bond that returns 5% a year. how are you going to run a the effective tax rate for americans would be 40% country. they'll say quickly, get your that's of course before any income or capital gains tax but crap together. a foreign buyer wouldn't pay any i cannot emphasize enough to the viewers listening right now that and would drive up the value of the dollar and that could more will are, not going to be, there than double the trade deficit. now there's lots of problems are hundreds of thousands of with the wealth tax but this is really pissed off people right one of those unintended now and the people who ran this election will be held consequences where you think about the economic advantage of accountable. we have new hampshire in six an overseas buyer. days and in six days, everyone will >> let's stay here got a lot more to talk about forget what happened in iowa this let's bring in ron barron that's >> great to see you. been listening to this and going through it yourself. we appreciate your perspective what do you think? and your outrage >> i agree with him. >> i'm with him. we look forward to talking to

you soon when we return, stocks surging despite a rise in >> that's amazing. so i agree with that confirmed cases of coronavirus we'll look at how companies are and people out there and taxes responding to the outbreak next. look at u.s. equity futures. dow now indicated up by over 30%s, nasdaq up by 97. we'll be right back. whether your beauty routine is 3 steps... on people. >> and a wealth tax -- >> they have assets and investing your business and all of a sudden, how you invest in your business and where does that money come from you're a new yorker still, i believe. >> no, i'm a new yorker. >> haven't moved to florida just yet. >> i do have a home in florida but i am a new yorker. i pay taxes in new york. >> you would be at a 56% or 57%

rate. >> i'm over 50 right now. >> you're over 50. are you okay at 56 >> the idea is that investment is long-term investments and as far as if you take any money away, or 57, make nature's bounty hair skin and nails step one. you couldn't have a business like mine and invest in stories. it's the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. look for our coupon in sunday's paper. and not once and people never get fired because the economy is not doing well we just take the hit and how do you do that if all of a sudden your capital is being taken away from you >> that's the wealth tax right. >> and with income tax, okay so you don't have quite as much

you have, you know, you can grow it so what do you do. [ fast-paced drumming ] i guess i aquate it and you wan to take a physical asset like the house. is there enough to pay off the taxes in the house it's the same idea you have to have cash ready or you sell off apart of your business. >> you either have to have cash or you have to borrow the alternatives so it makes it more difficult. makes it much more difficult to grow a business. if the businesses don't make enough money to expand how are they going to do that? so it ultimately passes down

into the people that work for the business >> we have a lot more to talk welcome back an update on the coronavirus about including his investments. >> there's been very sharp green outbreak arrows a 39-year-old man in hong kong dow futures up 363 points. has died this marks the second death this comes after a gain of 143 points yesterday outside of mainland china. s&p futures up by 36 the nasdaq down by 110 points. medical workers are on strike for a second day the death toll rose overnight to tesla stock up 13% this morning after gaining 20% yesterday. 426. total confirmed cases have topped 20,000. we'll talk a little bit more about that move and what it looks like eunice yoon has more for us. we'll be right back. i love the new myww program, because it's tailored to you! the numbers are really starting to add up. >> they are. it really ends up becoming a stressful sitd wags.

going through the e retail giant, this is one of several bays finding it difficult to operate in concerns of public health at this station, they deliver 150 packages to the residential area a day that was surged to over 200 a ...take the personal assessment day. the company said the way they and get matched with a proven weight loss plan. are able to do that is because find out which customized plan can make losing weight of technology that helps with easier for you! myww join today with the ww triple play! logistics and because they own a lot of the distribution, they are able to be more flexible to make these deliveries. they've been able to deliver

into the most infected areas, into wuhan in this situation, they said they are requiring couriers to wear a lot of protective gear. in wuhan itself, their couriers are wearing hazmat suits, goggles and gloves one thing that has been challenging to source has been face masks they have been able to open up a special channel for medical supplies their priority is medical supplies to wuhan. as of february 2, 600 requests were made to them to deliver donations of medical supplies. there are signs of further

business disruption for the country. one prominent event that develops in march, that event has postponed their gathering. that was supposed to be at the end of march also the canton fair which is usually held in april. very important for the global supply chain, the venue itself has canceled all exhibitions until further notice coming up when we return, this stock is in the barron the canton fair itself, the portfolio. the company went public in 1962 as a single letter ticker symbol organizers, say they cannot confirm whether the fair will and has 18 brands in it's continue these things are making many portfolio. we'll reveal it right after the nervous about the impact of the break and find out why ron likes it in just a bit

virus will be greater than you can always watch us live on the go on the cnbc app previously thought we're right back with the >> we just mentioned that nurses answer send us a tweet about it in just in hong kong were going on a moment i recently spoke to a group of students strike because they are not about being a scientist at 3m. happy with the boarder being i wanted them to know that innovation is not just open with china. how does jd.com convince about that one 'a-ha' moment. science is a process. delivery people to go into some it takes time, dedication. of the hazardous areas it's a journey. we're constantly asking ourselves, 'how can we do things better and better?' what we make has to work. >> a lot of workers for jd and we strive to protect you. at 3m, we're in pursuit of solutions that make people's lives better. others are from those locations. in wuhan, there are a lot of if they saw you on the street would your advisor recognize you? people volunteering to try to at ameriprise, we see you as more than a client. help we hear a lot of stories of that's why our advisors care about what's important to you. people personally driving their they offer personalized advice to help you prepare cars taxi drivers deciding that they for what's expected and even what's not. are going to drive their taxis ou thereedompersonalized advice to help you prepare to live financially confident. and bring patients to the

hospital forever free. with the right financial advisor, life can be brilliant. you are seeing a great upswell of humanity to help with the sick there i think with jd, a lot of the workers, they get paid as well and wear protective gear but there are people willing to do this work. >> every day, we are getting more implications of how global this impact was. cathay pacific was cut in capacity by 30%. we've seen the impact of american airlines where they've decided they are not flying there at all there is a dramatic reduction in demand in the desire to move around until this is cleared up. >> absolutely. it is hitting travel, tourism. you were talking about it

earlier. macao will be hit hard the chief of macao, which is the world gambling center and very the unparalleled landscape of park city, popular among chinese is getting or the famed peaks of whistler, you've faced the hassle of lugging your gear hit. the chief today said they are through the airport. with ship skis, you're just a few clicks away from having your skis, suspending casino and gambling snowboard and luggage shipped from your doorstep to your destination. operations as well as with unrivaled pricing, entertainment related to the real time tracking ship skis delivers, hassle free. industry for the next two weeks. that is likely going to hit the ship ahead and go catch those first tracks on fresh snow. bottom lines further for major ship skis. your skis. delivered. casino operators such as wynne or las vegas sands who have a great presence in macao. >> a lot of these updates are coming by sectors or companies the estimate is that the lunar new year has been extended through february 9 that's six more days

any word on whether that is a moving target? >> i think -- so the official end of lunar new year was yesterday. it was the third but there is an extension from a lot of different provinces telling their businesses during this period that they don't want their companies to restart operations because they are concerned about this virus spreading. a lot of the people i've been talking to are really unsure if given the retail interest in these factories are going to this stock you could make an argument to split it if it stays open next week there are concerns that it might at these levels. >> if it's retail they should buy barron funds that owns tesla not necessarily be safe. the numbers have been going up so they don't have to do it themselves. >> that's a good advertisement. >> i don't think it's a great the health commission today idea to split stocks mentioned the death rate saying buffet never split his stock except when it got really high it is 2% world high but higher and he gave you that baby thing. i don't think it pays to do here that. >> it was more of a way of

there are a lot of concerns about how quickly the virus can letting other investors sweep in that's get in and get out. spread and whether the >> let's go back to the whole government has a handle on it. idea of discipline in the portfolio. you said one of your portfolio president xi jinping said he managers asked you if it should will get a handle on the lighten up situation. he's been rallying officials to you understand the question. it's had such a huge run and make sure that this happens. you're not selling anything even there is a lot of questions though. >> no, i was hoping that our about whether or not the business can grow so i could government will pull it off. have more money to invest in >> thank you tesla. your reporting has been amazing. >> so add even more to the position. >> yes. we appreciate it >> are you adding to the later, we'll tell you what position now. >> if it was up to me i would but the way we're structured if precautions you should take if you plan to travel in the next we have real estate and we have few weeks. emerging markets and we have international and we have small tonight, a report called cap funds, they can't buy tesla stock today. so let me go to price for a outbreak:coronavirus when we return, crude prices second that, you know, process for a trading in bear territory second and then price. market on fears that the outbreak will hurt oil demand plus the biggest movers all after the break and long-term growth companies

and competitive advantage and a look at the surge in equity great people growth companies competitive advantage, invest for the long-term, great people futures. opening up hire. so it's a very simple process so and the dow up 311 points. people can't do it more in a moment so very few people in 1999 would have bought amazon and held it when the stock went down and then the stock went up dramatically so regular people without knowledge of understanding business how can you possibly hold on how can you hold on to tesla stock when it goes up and down and you're a retail investor and retail people would come in and go out so my idea is that we don't invest in the market on what's happening in the news. not on asian flu or spanish flu, not -- >> right. >> not on impeachments and not on oil -- nothing like that. it's strictly on fundamentals and when you talk about holding

for the long-term, so two companies, primerica and nsci went around 2008 both said you enabled us to go public i have forever indebted to you they said that it was $20 at the time spinning out. it's now 125 we have held on every single one. next thing, ended up getting to kind of go or -- >> in 2008. and come to america and comes up with the idea of morgan stanley. and $15 a share in 2008. it's now 300. >> and he asked me to speak to his board last week and he

wanted to understand how is it possible that everyone is buying and selling his stock and they hit a speed bump how was it possible that you invested this whole time and never sold a share and he said that what he wanted to do was have me speak to his board to have them so that i could sipeak to them, how do we with stand pressure to sell? how do we do that? >> what's the answer though? >> the answer -- so he said the answer was that he thought that i believed in him and then in addition to that i really like the business there's 20 to 25 people and it turned out that the former president of fidelity management was sitting in this meeting and then he says you're friends with peter lynch and and puts a

telephone and speaker on it. and calls and says mom what did you owe the speaker and i said mom, what did you always tell me when i was young she said well, i always told you can't tell me a regular person in the next ten years. >> i have a couple of questions for you. >> elon musk compensation. he captures 1% of the company for every $50 billion of the company he moves into the market share. are you happy with that >> announcer: today's big number, 20%. that's how much wti crude

dropped in the past month. falling below $50 a barrel on monday to its lowest level in over a year. we are keeping an eye on crude oil prices this morning. >> he thinks that retail wti rebounding this morning after it dipped below $50 a investors understand this more than institutional investors barrel yesterday anything below $53.28 represents >> peter lynch would say that people when they go into a mall a decline, which is considered and 30 or 40 years ago when they bear market territory. go to a gap store they understand that that was an interesting investment this morning it is up. and i think the same thing when retail people, my grandchildren, in russia, they'll held one guy is 5, one guy is 7 and discussions about further my 7-year-old a couple of years production cuts due to the ago says to me grandpa that those cars, they are very bad impact of coronavirus. for the environment. tesla is good for the environment. sony's third quarter profits even children. tesla has built a whole business no advertising you watch, everybody knows the name tesla isn't that amazing

when you build a business beats. consumers wait for the new play without a dime spent. >> the stock was up 20% station 5. sorkin family is waiting for yesterday. it's up 12.5%. that as well it's up $100 in the premarket. maybe it's a lot of people raising the annual profit. figuring it out but do you worry about momentum moves bp's fourth quarter profits >> think about it and i'm fell still topped analyst estimates responsible for other people's money. i'm the biggest shareholder in raising the dividend all on the our mutual funds and so on the other hand, yeah, i think about last day as the ceo hands over it but i do think that we're going to make it in the next ten years. the reigns tomorrow and nxp >> you say something before the commercial break that some people on twitter seem to pick semireported better than up and said look, even if expected fourth quarter profit outlook is slightly higher i thought that elon musk was doing the right thing. it is confident that demand trends will improve. good news there. >> bringing attention to a special event. hockey fights cancer the second annual play like a pro hockey game. with private equity elite from i always say investing in elon all over to raise funds. musk, betting against him is

like betting against humanity. with the help of msg's garden of if you want the guy to succeed, i get that if you thought about this investment or i hope you did dreams foundation. that is being used to try to this strictly on the financials. >> i did it on the financials. fight the vicious disease that i felt i had no down side and no down side and even if they affects many children. learn more at band of weren't very successful, they were going to be the leader in this business and they could be parents.org. when we come back, disney acquired i thought there was no down making some headlines with plans side. >> i thought the worst case we would double our money. >> separate question, given how to release a version of the hit bullish you are on the company, given that elon musk tried to take this company private, some musical "hamilton" in theaters people thought that was crazy. do you think he was trying to >> later ron baron will sit down rob the shareholders with us at 7:00 to take a >> i think he was really victory lap for his big bet on discouraged. if you worked the hours that he tesla. works and are under the stress right now, we look at that he was under and he was being attacked relentlessly by yesterday's s&p 500 winners and losers losers ♪ imbedded interests who wanted him to fail and so if you're in business and all of a sudden the oil companies will be impacted negatively by what you do and the car dealers are impacted by

what you do and the oems and the short sellers and so all of them are up against him and this guy is standing alone. wouldn't you be upset about the way people treated you if you're doing something that you think is great for the world through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growi business. and everyone attacks you every day. why would you think that's from finding out what's selling best... acceptable bad idea. to managing your fleet... i thought it would be better off if you remained a public company and if you went private i was to collaborating remotely with your teams. interested in participating as a giving you a nice big edge over your competition. investor to allow other that's the power of edge-to-edge intelligence. investors to be able to continue to hold their investment apps except work.rywhere... position in tesla and i was why is that? is it because pele love filling out forms? being considered as an entity maybe they like checking with their supervisor to see how much vacation time they have. and i recommended against doing that but that would have been beneficial if i was chosen to or sending corporate their expense reports. continue investing in the company. >> we're going to continue this i'll let you in on a little secret. conversation in just a moment. in fact, earlier, we showed you

they don't. by empowering employees to manage their own tasks, this chart take a look at it. paycom frees you to focus on the business of business. it's a ron baron investment. to learn more, visit paycom.com it went public in 1962 and has a single letter ticker symbol. dana-farber cancer institute it's hyatt more about that after the break discovered the pd-l1 pathway. and get other ideas from pd-l1. legendary investor ron baron when it comes to using data, they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. sad my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere.

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"hamilton" to the big screen they'll be out with its earnings ron baron has been talking with after the bell us this morning about tesla. they'll release 2016 recording we just showed shares of hyatt of the show featuring the as we were heading to a break. that's a stock you bought into original broadcast way the company reportedly paid $75 when. >> 2008-2009 and i was an million for the rights expected to be released in investor when i started my october 2021 career in the 1970s and jay is a disney is set to report president and chairman of the quarterly results after the company. he was one of the first people closing bell today and unveil to help me in business the first subscriber numbers for the streaming service. so i had a very good feeling and bob iger will be on cnbc i'm friendly with tom since right now, stocks indicated up 1979 1.7% >> they are recording for stage, 1979 the product we'll see in the and it was amazing theater will be something in the theater? >> no, no. what happened has happened and there's 17 people that were this is wild, i think. on the forbes 400 that were from a year or two ago, when he was

still in it. there. 17 people out of 400 and then they filmed it the original cast. the family begins to feud and to the stage production figure out how they're going to manage money instead of having >> i don't think anyone has ever him manage money for them. they want the money. so goldman sachs. spent $75 million to buy a film. i don't think anyone has ever bought a film that has been >> this is the one year chart. finished the film is done what you are seeing here, clips >> so goldman sachs and walton go ahead and say to the of what it looks like. investors the other shareholders it will be very interesting to we'll buy your stock and it was see whether it translates in the $56 a share at the time. he said we'll pay 56 or 55 or theater from what see -- from something like that and they buy the film theater to what you see stocks from them and with the intention of going public at some point in time and now it's in the theater theater 2008 and 2009 and now it's >> that could have done something like, for example, goldman sachs and $55 stock. and they go public with $26 a

share. "evita." >> "cats." >> would you watch it? and we're one of the largest you go to the opera. shareholders in the company. 25 or $30 a share. >> i do. stocks now trading at 85 or 90 >> there is an experience of being in the room. and it's a confusing investment >> right for most people. we sort of have it to ourselves will this translate on the so we keep buying the company with 175 million shares when screen. >> it does they went public to now 105 met opera does hd screens that million shares sell out all over the world. the company bought back 70 million shares and they continue >> $75 million worth to buy back stocks they think the real estate is >> i don't know. you asked first, what would the worth 120-130 and basically they're shrinking the experience be like i think absolutely if you can't get to the theater, the movie theater is fine. the economics discussion is different. >> i think this is about getting them on your team and on the board $100 >> they'll sell more than $75 million in tickets >> i don't know. it will be interesting to see. when we come back, we'll talk about google's parent company after being the only

faang stock to miss after earnings revenues for the season we'll talk about that more next. don't miss your squad news maker capitalization they don't have to have that of the morningment r, ron baron. invested and all of a sudden they go to this management theme which is worth a higher multiple and because you go from $10 to $100 in revenues it's confusing to people. i saw the growth. >> let's run through very quickly a couple of other stocks a couple of minutes left in the hours. that stock is down 3.5%. >> we own 480 stocks and the top 40 stocks represent 45%. i don't own google it sounds like a great company i love the commercial. it's really touching, nice, heartwarming. >> it made me cry. national gaming that's a stock that you bought into in 2002

it was $25 million public after three mile island in the 1980s we investing with them and that went down to 3 or $4 million. invest in the company then and it's a number of different enterprises that come from that. and they also have other casinos of which we have invested and now what's going to happen is they're going to benefit from the acquisition and they just bought -- do you know about this >> i do know. >> i never heard of this before.

and it's going to be worth a ton. this is another great that's a really great guy. >> we appreciate your time this morning. it's been a pleasure having you here and we hope to see you again soon. >> thank you very much. >> congratulations tesla on that wild ride this week but not everyone is convinced. we're going to talk to a bear right after the break to see where he thinks the stock is going the opposite direction plus more. we'll have the latest on how markets are reacting we made usaa insurance for members like martin. an air force veteran made of doing what's right, not what's easy. so when a hailstorm hit, usaa reached out before he could even inspect the damage. that's how you do it right. usaa insurance is made just the way martin's family needs it - with hassle-free claims, he got paid before his neighbor even got started.

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maybe they like checking with their supervisor to see how much vacation time they have. the final company to report a or sending corporate their expense reports. faang name i'll let you in on a little secret. google shares are down about 3%. they don't. joining us now, an analyst and by empowering employees to manage their own tasks, paycom frees you to focus on the business of business. tim lesko who is a partner at to learn more, visit paycom.com gran granite investors. what is the metric most important to you is it missing on revenue operating earnings or details for the first time >> similar to facebook, you had what would be a solid but not stellar quarter. numbers came in line probably a few hundred shy. we saw a big deceleration of u.s. revenue growth. that will be areas for concern

where people think about the broader market and big picture slow down and focus for the near term >> some people were complaining about the idea where they are having to rely on youtube and other areas for growth it was opposite when facebook reported they said they are getting all their growth from only that area and not other areas like instagram. >> i will say that for google, it matters a little more when you think facebook and instagram, fairly similar. this revenue mix determines that profit growth going forward. >> tim, you are a share holder, what do you think about the we will go live to the hawkeye state. >> and shares skyrocketing this earnings >> earnings are great. morning. a day after the stock saw it's best day in six years but should it is still significant growth hard to find this kind of growth investors take a breather. >> you're holding the whole at this reasonable or multiple

in the short run, that's always what happens >> if you are shocked by the street's reaction, do you see this as a buying opportunity >> certainly for people looking for that kind of growth. i think the fear is a little overdone >> is that you, would you be buying today >> we own a full position in it. thing. we'll take a look at it. good morning, everybody welcome back to squawk box here we are long-term investors so on cnbc. we're live from the nasdaq timmicly not trading off of market site in times square. earnings clearly 4% down would add us to reference. >> how much is it constrained because of the regulatory overhang, antitrust proceedings in the united states and as a result futures up everything else in europe. sharply this morning right now green arrows across if not for that, where would it the board and right now they keep building now up 376 points. be >> that probably is the number one question we continue to s&p futures up by 39 feel it is almost an impossible nasdaq up by 122 and if you take a look at the treasury market question to answer because of so that ten year yield is what we many factors to consider watched so closely this morning.

if someone would suggest more the yield has ticked higher. than one number, they probably have not looked at that enough >> you see what is going on on the aws side how indicted or not are you about google 1.584% and we're still awaiting some of >> i would say personally six those results. out of 10. there is enormous strategic value. it helps the narrative but in terms of playing from behind, they are in a distance third we currently have 0% of the >> zadistant? official results more than you thought? the app based reporting system >> this speaks to the disclose that was supposed to make the results quicker and more you're transparent did anything but if we look where youtube is and last night the iowa democratic party said that the app was not hacked. cloud is, it was very close. there was no intrusion. not a ton of surprise there. particularly azure, those growth rates are striking you do start to think how much momentum do they need to build

to catch up. the general counsel sends a >> all of this stuff they are letter saying campaigns deserve throwing money at. full explanation and opportunity one hand people are arguing that to respond before any official you have to take risk with r&d results are released other campaigns like those of and a lot of people look at that pete buttigieg and bernie money and say, wow, that's a sanders are already claiming their own victories on their own terms with their own data and waste. are you a fan of that spending then president trump calling it or would you rather they didn't? an unmitigated disaster after he captured 97% on the republican >> that gets back to a couple of side of the caucus, he said the years ago when they brought in only one that can claim victory ruth and continued to tell us about those bets is him yesterday, we began to see more numbers from google, which is a >> another primary will take really big step forward for place a week from now but share holders. we really want to know what the margins are with each of these whoever is set to win the iowa businesses and how they are caucus will not have the benefit growing. of the momentum and big push we don't love the other bets we don't like space shots but we among grass root support do love driverless cars and >> what does it feel like on the other areas. they've done a much better job ground there >> it depends on where you are disclosing who they are.

they're exciting the turn out was a little lower. >> thank you for joining us and it was closer to 2016 today. coming up, are you traveling during the coronavirus our next guest will tell us which precautions to masks have limited usefulness a simple surgical mask is going to get moist in a small amount of time. it's only useful for 10, 15, 20 and a lot of the air has been minutes. taken out without any official data. >> he said that the people there are very angry and will be extremely angry at how poorly this has gone. i mean, i know that you're up in the middle of the night there. it's very, very early. any sense of whether or not that's going to be true? not that you're going to have a lot of chance to interact with people that i assume went to bed late last night. they spent a lot of time in person trying to put their

support behind the candidates. the campaigns are angry and there's a lot of people on the ground who are angry about the way this went own. thank you. that's the political story of the day. president trump is also set to deliver the state of the union address tonight. 2020 campaign now underway and it's yet to be concluded >> that's absolutely right

and a day ahead of what we expect to be the grand finale. we have a state of the union tonight and we respect a relent leslie optimistic tone from the president of the united states here's what we do know about the speeches not much but white house officials briefing us said that the theme here will be the great american come back tonight we do expect that the president will criticize socialism on the democratic side. we expect he's going to talk about lowering drug prices and his issues including immigration and national security

you remember that famous clap back moment. will we see a repeat of that tonight and how will the president handle that and of course there's a number of presidential candidates could be in the chamber we're not sure where all of these will be tonight. we expect he will not be there and some of them have the opportunity to be there and the president certainly has the opportunity to speak to members of the senate. elizabeth warren and the question is will the president address any of those folks specifically tonight. welcome back to squawk box tesla is taking another leg up and the senior adviser to mike this morning bloomberg's 2020 campaign.

we'll talk all about it but let's start with you stock up again at 6% this morning. we'll talk all about this back this mess for the iowa caucus, to new news around batteries how is that going to play out being profitable and panasonic for here and much more. meantime, they do have airlines that now have limited air travel to and from china as you know due to the coronavirus outbreak and given the lack of diversity in the state and these results will be a real problem but we want to talk about ways it's also a really good day for you might want to try to protect yourself not to china but even in the president trump who pointed out united states. joining us to talk about the assistant professor at lsu and they couldn't run an election. how are they going to run the tulane university. good morning to you. country? for those that out performed we were talking to dr. scott last night major pete buttigieg gautley yesterday. he said that actually a mask, did, warren looks like he had a everyone likes to wear masks and things on planes but that may good night and amy klobuchar, not actually help the cause. what would you do? they lost an opportunity here to build on it. >> there's certain times that you can use and some that are

not very effective the ones you can get from a and the vice president didn't regular drugstore, that's not have the night he was hoping going to help because the mesh of the mask, the particle of the for. they have the right and should call into question all of these coronavirus or most viruss are going to go through that especially if it gets wet from you reathing results. >> there's another camp and he wasn't there >> there's a lot of democratic voters now looking for somebody who lines up with their own policies and values and also has >> doctor, i went on amazon looking to buy some masks and 40 the ability to be at his of them are going to cost me doorstep and beat him and it's $240 plus $80 in shipping. is that higher than normal. been clear for quite awhile that mike bloomberg fits into that >> it's a little bit of a gouge spot that's why he got into the race. that's why he has been gaining but they're not very comfortable in the polls and that's why his so you're going to wear them and candidacy is going to continue to gain momentum then after about six minutes throw them away because you'll be like get this off of my face. >> what would you do

if you had to fly across country there's a division between the today asking for a friend, what liberals of the party. would you do is there anything that you would he's a pragmatic progressive he cares about all the same do issues as elizabeth warren and >> i've been in three different bernie sanders cities in the last three days. he wants the math to ad up i'll tell you what i did he thinks taxpayers should have i wiped off my little area transparency into how this things are paid for and he also now granted we use hand has a strong standing in the sanitizer for these types of things but they do not kill business community virus. let me be clear. they don't kill virus. they help wipe it away >> before i answer the question they are just bacterialcidal i want to say i'm the best editor you ever had. and then i'll answer the so anything woulclorox wipes question. >> does that disqualify you from doing the interview. with me. is that something that actually tes kill the virus. clorox wipe does not have bleach there's a few that it would be then no. helpful oddly enough for bernie we think about bleach but you sanders or elizabeth warren to have to look at the actual wipe. >> what are the two other things win iowa or the early primaries in a way to frankly freak out if

you would do. >> don't touch your face get a flu shot wipe hands and wash your hands you will the more moderate with water and soap. based -- if i believe there's a that's the most important thing more moderate base within the you can do democratic party and it will >> thank you. >> people have died from flu already. >> thank you then surge is that a strategy appreciate you being with us this morning. >> thank you. >> our strategy from the >> you bet. beginning is just to be >> thank you >> when we come back our guest advocates for who mike is and host for the next hour is what he has done legendary investor ron barron. i think he respects everybody else in the field right now. he is one of tesla's major investors and he was in that stock very early as you can see he's taking a little bit of a victory lap. i certainly think he can unify >> oh my god. the party and appeal to a broad >> and many other big names. pluratilty of voters and most importantly capture swing voters and independent voters that may stay tuned he's going to be right with us not have as much other candidates may not have as much so we'll continue on that line. >> i do think one of the questions that we'll be seeing going forward is we talk about progressive lane in this party and a moderate lane but, in fact, the voter blocks are don't

break out quite as simply and s people weigh all sorts of different issues here and those like bloomberg and buttigieg and biden and all of those looking to be the moderate in this race is going to be very dependent on that very ke block.

so we take that as a positive not only for the primaries but general election too. >> surging to what levels. he was around. his unfavorability ratings when the campaign started were around negative .9% minus 9 in the communities of color. and that's happening because we're campaigning in cities. we are in 35 states and we have over 1,000 people on the ground. we have people in cities and rural areas and suburbs and they're getting to know mike's candidacy and his policy prescriptions. he cares about affordable health care, better education and high quality jobs. >> i think that definitely, definitely could happen but i think buttigieg and biden and bloomberg will be fighting for

that mantle so it's just going to make that picture all the more muddles. >> sarah, tim, i want to thank you both >> thanks, becky. >> thank you. >> coming up, when we return, can anything stop tesla? shares of the car maker are soaring this morning that's incredible. but is tesla too hot to handle current rallies we head to a break. this year tesla is going to do >> what are the biggest long-term goals on tesla. around $32 billion in revenues >> i think it's going to be and they're going to do $100 1,000 in 2020. he speaks to the stock's billion of revenues within four remarkable rise and much more. years and potential for a the second hour of squawk box begins now. trillion dollars within ten years. so basically you're looking at the very start of what tesla -- what is going to happen with tesla. this could be one of the largest companies in the world [ fast-paced drumming ]

joe is off and michelle caruso cabrera is hanging out with us this morning. we are about 2.5 hours away before the market opens but boy are things looking up >> let's bring you a couple of others at this hour. but the death toll from the virus has now risen to more than 400 and the total number of

confirmed cases has risen above 20,000 only the second outside of china and the economic fall out continuing as well the biggest gambling hub asked all casinos to shutdown and they'll cease all the disruption because of supply chain disruptions. >> i think that investors were worried more about the other issues than actually the disclosure of the cloud youtube business the first in it's history was meant to frankly be the

[ fast-paced drumming ] opposite it is a beautiful transition to our next guest >> we're joined by ron barron. he has been a firm long time supporter of tesla which someone of the year's hottest stocks he first told us about the company's potential in 2014. >> the opportunity is not to do 35,000 cars. it's for 100 million a year. maybe in 8 or 10 years they could do a million or 10 million in a year. they could do 10 million so the potential is enormous. >> the stock soaring more than 80% this year. that's right this year and by the way it's only february 4th today so you're talking about 80% gains

over the last month and a few days it's $140 million. he joins us for the hour it's great to see you. >> thank you for inviting me >> let's start with the obvious. this is a major holding for you. >> we can show you where they got it from. what do you want to do >> let's work into the processing part of this. let's just start off talking about the ride we have seen over the last month or so what have you thought as you watched the stock go up 80% from $400 in change to this morning $836 in the premarket. >> you have to remember in 2014

when we were buying our stock >> he's the senior research and as you know the stock went analyst and he has a sell rating on tesla and $350 price target between 350 and 1880 and 250 so on the stock below the famous it's all over. 420. so you're watching this and thinking what? >> it's simple i can't believe this stock it's insane. this is a big separation. it's very difficult to get started because dealers would prevent them from electrical issing them in different states but in a period of time since 2014 the stock price didn't change very much through that >> this is largely the fear of summer through that summer our stock missing out. >> it can't be was 230, 240 the number of large hedge funds calling in and the number of at the same period of time, the institutional investors calling company's business, we focus on in saying where does it stop the business and not stock what's the negative catalyst prices it's definitely not retail the company's business had grown it started off retail. from $2.8 billion of annual there's no question. revenues to 25 billion of annual but the momentum is huge it's fear of missing out revenues >> you say the real value is the company is up 8 fold the stock is up 20%, 10% $350. >> yeah. >> that's my number

now this year tesla is going to do somewhere around $32 billion in revenues. i guess they're going to do $100 billion in revenues within four years and that potential for a trillion dollars in revenues within ten years so you're looking at the very start of what is going to happen with tesla. >> a trillion dollars in >> you have not liked this company for a long time. >> you forget, i upgraded for china last summer so when everybody was saying it's the end of the world i upgraded for china and i downgraded twice revenue. so we're thinking $750 billion since then because i try to have a little bit of discipline around valuation in revenue when people are saying that the battery business is going to be as big as the car business. financing was going to be a big problem i'm saying that doesn't make any sense to me tesla has no problem accessing the market if they need to and i was actually defending the stock so what we're talking about is a aggressively when it was going business that right now demand is overwhelming for the product below 200. >> what do you think is happening here this is crazy to watch that they're selling and they're stock up 20% yesterday and now constrained as far as making as up almost 15% in the premark many cars because they don't have enough batteries. that doesn't happen. >> yeah. so there's a couple of things

so it's a nice move and macro things on a global basis, announcement today in making money and the plan to have in reno but they need to have more right? there's die vestment of oil and batteries. they're going to have a battery day in a few months. gas stocks and huge interest in they have all the analyst coming sustainability and socially responsible investing is front, out and they're addressing the central for most of the issue of where are they going to come from. institutions globally >> you're clearly still very particularly in europe you can't sit down for a meeting bullish. >> it's moved 80% since the with a tier one institution without them bringing up sustainability and there's very few credible ways to play it beginning of the year. everything ends up being small cap, microcap and they can't buy do you think, you know, i still have a large position even if i the stocks. >> they can't buy the big gms or sell a little or no you're holding the whole thing. fords or toyotas or anybody >> not a share. >> not a single share. else it's not just electric vehicles. >> no. >> one of the portfolio managers they're also fossil fuel based. was saying shouldn't we sell a little bit i said i'm not selling anything. >> a lot of them have specific mandates that if the company this is the very beginning does have precipitation in both parties they can't play. >> what about the wonderful >> the number one car maker in the world. >> toyota. metrics that ron went through. >> a little bit more 12 or 13 million they're going to sell 10 million cars he starts talking about the

revenue numbers. >> so that was my question if he's right that number that we're looking at is orrect effectively tesla has to become the next toyota for these numbers to be what they are. >> yes so how do you consider the competition and why are you convinced they'll be the next toyota. >> so how come if it's so easy to make a car how could tesla possibly be successful and how come they can't just question them why can't they do that they can't just redo the whole there's two big ssues. process. governments will help them. >> exactly the other thing is these guys are waking up. so you know, it's a check of mine it's not completely confirmed yet but i believe volkswagen is pulling forward mass production from 2022 to 2021 and they need actual samples delivered i'm hearing from a lot of people this year in preproduction so basically here you're toyota

samples. >> of ev cars. >> for components. or general motors or ford and i key components come along and i say we don't so there's -- these guys are need to make those engines waking up and they're saying do anymore let's use my battery and you already have these $200 it faster. billion invested in engines are >> what happens if tesla does going to stop that introduce a battery. that's one challenge they were fined saying how come you're not moving faster. >> that does give them a moderate advantage here in nevada but verses the other global producers there's no structural advantage on and where is that money coming from that's one number two is the dealers distribute these all the around the country. franchises, irrevocable and the materials. >> can i show you a chart? dealers make money on servicing he tweeted a chart that said the cars so if you have all of a here's bitcoin in 2017 versus sudden a replacement and that's tesla in 2019. all the distribution, all of a

or 2020 if you're watching what sudden a replacement of an happens with that. i don't know what this tells engine, it has all the service you. i do look at this and say it's requirements for the batteries really volatile. do you look at this and say it's momentum i don't know how to play into this. >> fear of missing out that's, you know, that's what i'm going to write it up to. why could you say i'd like for i think it's fear of missing out. you to sell the electric cars >> of hearing a new story. instead of the engine cars they don't make their money that hearing china, the china plant way. they have to totally revamp the going better than expected. >> but you know what has changed whole strategy. >> the whole system. >> i have a question from rick here a little bit? i think the short message or the reader at black ock. arguments on the short side is no longer about fraud. they used to say that he was -- or spinning or misleading. >> or can't make the cars. >> or he can't make the cars or he's not going to be able to raise the money. all of these things. all of that is now -- is that really off the table at what point is it too far was there's still some people ahead of the medium term cash that push the f word out there i don't subscribe to that. flow. >> at the last conference call, i never have elon noted that the -- i'll get >> i use a different f word. to that in just a moment >> yeah. no reality -- elon noted that the demand for >> now free cash flow.

the model y is going to be >> it's behind them so yes there's very large contributions to one time benefits and the quarter is 7 million more vehicles 7,000 more vehicles out of the channel. but the reality is its a good later. then you have the 16 wheeler company. the financials are sound and the truck and autonomous driving reality is -- sometime >> a great company. and then you have utilities. >> even a great company but not we need massive batteries. a -- >> it's an expensive company. it's going 100% a year >> three times bmw that's going to come on sometime and then ten years out there's still a lot of growth coming and that's rich. that's a big bet you're going to have these and then in addition to that, you the big question when i'm know, you're going to have talking to people is do you logistics business like amazon think the other oems are going to catch up in two years or ten

years. and the real money for them has. being in it and everything else so say they make a 15% profit and you're going to take that piece out and get compressed the margin, that doesn't mean they're reporting it because whole structure doesn't really they're going to take money and work and overtime that's going spend it to grow faster. to have to change so we make a lot of money investing in businesses and tesla would be building factories and that's when we're investing in it and penalizing profitability. how much is this worth if you have $15 billion of profitability in four years, in and the complaints about being charged for downloads that people didn't want and they butt four or fyffe ears dialled into. >> still like hiccups you get over. >> i will say the conversation has changed. tslaq is not something that people are talking about anymore. that's gone, right >> i don't know how much that

was front and central. i try to stay to the middle of the road and i hear it all but >> do you care if they don't the reality is decelerating and have profits from time to time do you care if it's not a straight profitability shot? are you okay to stand by with 50% off and i think that assumes them >> he has 6 billion in cash right now. tesla operates in a vacuum the take on -- yeah it's a little bit of a disappointment on range but the model s can't makeit around. so it crushes it it's a wicked cool car and probably going to end up going for the take on -- you know, as the wicked cool car. tesla has the update on the what's going to go on here and roaster coming on the back end then they didn't know how to of this year so we'll see how make cars so well and they spent that compares but, at some $15,000 of capital for every car they're going to make and that point, you know reality is going investment is producing a gross profit of that $10,000 a car for to set in. saying that we're going to have more model ys is aggressive. $50,000 car. in china, now they know how to . >> there's been criticisms by some short sellers and that was

a sign often that a company was about to go. >> i hear from a lot of people that have gone in from interviews and come out the door screaming saying we're running out. elon, he is a very difficult manager and i probably shouldn't use the word difficult i should say unreasonable. he doesn't want to hear a no he wants to hear this is what i got wrong. this is what i learned and this is how i'm going to fix it that's a challenging culture to operate in it's like apple many years ago. >> he deserves credit. he deserves a lot of credit. >> thank you >> you short the stock.

it's evaluation driven and it's put me in a tricky position. that's where it is. >> thank you appreciate it. >> when we come back is the u.s. ready for a pandemic reaching it's shores. the work that still needs to be done to bolster health care defenses and protect the economy from a major outbreak here as we head to a break, let's take a look at our stock of the morning. no surprise. tesla is now up 15% in the premarket after gaining 20% yeery. ua b wl be right back. we set out to make the best bike on the market,

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>> coronavirus still spreading the death toll at 427 with well above 20,000 people sickened more on the urgent need for better testing good morning. >> good morning, andrew and with no vaccines or medicines yet proven to work against the coronavirus the first line of defense is identifying and isolating those that are sick and to do that they need diagnostic tests but in china there's reports of shortages i spoke with ian subpoena duces tecum lipkin last night and he described one lab was running 5,000 tests a day. in addition to the sheer volume

one issue is the sensitivity of the test and uncertainty if someone tests negative if that's due to them not having the virus or due to the test not picking it up. the cdc plans to submit an emergency use authorization to the fda to allow public health labs across the u.s. to use it's tests so samples don't need to go through the agency in atlanta. we also heard from several companies in the space but they're developing diagnostic tools and those tests but get the emergency use authorization to be used here as well. work is moving quickly on therapudics and vaccines and the patient improved though experts say that's not enough data to conclude that the drug works and we'll expect to hear more on the earnings call this amp. >> it's already being tested. >> yes, so it was used on a compassionate basis and this was published in the new england journal of medicine over the weekend and they're starting a trial in china as well and they expect potentially we're going to get more information.

>> a few more voices and impacts of the coronavirus he is a senior scholar at johns hopkins university center and drew is the chief market strategist at metlife investment management and doctor let's start with you just in terms of how prepared the united states is, how high this ranks, what is he saying. >> the u.s. is trying to prepare it's health care facilities in order to receive what is going to be a surge of patients as this virus spreads in the united states we have to assume that containment is going to fail based on this wide spectrum of illness it's very important to get that ramped up do we have enough personal protective equipment all of those are important tasks

that we're doing this will be a mild pandemic i don't think people are going to see high case fatality rates bu but it's going to be burdensome. >> is it worth still doing them at this point? >> that's an open question in our field and there's a lot of debate on both sides of this once we have seen the way this is transmitting in china in a we have seen person to person is spread in other countries that it's in over 20 different countries and it's a respiratory virus with mild symptoms that really argues against containment. it's going to become apart of our family that causes disease and it's important that we get a handle on what the severity is and who has the risk factors so that we can protect those individuals and many people are going to get mild illness and it's going to be a flu line illness for many people but for some it may be very severe and then the icu.

what do you think is the likelihood of those measures in the united states and benefits and draw backs of the measures >> it's hard to project because they're really political decisions and not scientific decisions so we don't really believe that closing schools can have a big impact because often the children will congregate somewhere else, for example like a mall and this something that you should only do if so many students are sick and you can't have a productive day at school then it might make sense to close the school for that time period but it doesn't necessarily always make a big difference when you're dealing with an outbreak this is something that gets done at a political level as people want to see their local governments doing something rather than something that's scientifically based. >> how do you wrap your hands around what economic impact this

is going to have on china and the global economy and potentially the u.s. what does that mean when we look at what's going to happen with economies around the world. >> for china there's going to be a growth impact. it could be as much as you're looking at between 5 and 6% for the year that will have knock on efforts for the u.s. but what will determine that will be how widely spread this becomes. >> that's assuming that it's contained by the end of the first quarter or -- >> for china, yes. it's containment into the first quarter. if it's not contained by the end of the first quarter then you have to revisit the numbers. there's a lot of open stories there. obviously markets this is another situation. i have come on here before and said, you know, i didn't go to school for biology i went to school for economics and when i look at a range of outcomes the range of outcomes is from over here to over here and you can't price them and when you can't price something

in the market what do you do you take risk off. >> here's what surprised me today. we were reporting earlier that hyundai now said it's suspending production because of problems with the supply chain. that to me is the next level of things if it's not just places of business that are being shutdown but then other places that can't do their business because of relying on parts from china that aren't getting there. >> that's something that everyone is, you know, supply chains are extraordinarily complex. you saw this post fukushima where people didn't know what the supply chains look like. after this people are going to look at their supply chains much more carefully and they thought they had a handle on it because post fukushima people adjusted their supply chains pretty aggressively they're going to take another look at the supply chains would be my guess. >> thank you great to see you thank you and great to see you. >> also a programming note for you tonight cnbc has a special report called outbreak coronavirus.

tune in at 7:00 p.m. eastern time for the latest on the virus and the impact on global markets. >> coming up, where to be a buyer in the current volatile market environment his take next. plus jp morgan's disney analyst is going to tell us what investor needs to bewatching i tonight's first quarter earnings and check out who is trending on twitter. yeah, that's ron baron if you want to know why, just check the chart. tesla shares soaring about $900 a share after baron joined us on squawk earlier this morning. here's what he told us. >> if you have 15 billion of profitability why wouldn't tha be worth $300 billion in five years or four years. on top of that, the solar roofs that's another 40 or $50 billion business a year. and that's just starting up as well so there's always increments he says he's going to go 50% a

ye ar

>> we have been trying to make sense. we have tesla on one hand and coronavirus and then you have

the futures looking to rip this morning. >> for me i'm surprised it hasn't been more of a catalyst because i see complacency in the market the put call ratio is still very low. aaii came out with a survey yesterday. the lowest percentage in two years. but the market is not as stretched as it was in the beginning of 2018 and that's a positive and whatever volatility we end up experiencing i would say we would be buyers there because it's happening within the context of on going expansion and bull market. >> not stretched as much in terms of valuation

it was something like 60% where today that was more like 18 to 20% and from a technical perspective and overbought perspective i don't think we're where we were there and if you look at positioning so a good proxy for hedge funds it's not nearly as long today. >> it's possible if the markets continue to roll the way they are, a week from now the coronavirus, i don't want to say it's been come and gone because we're talking about deaths and planes aren't flying but why is that not baked in. often times other things have been overdone and i accept that but at some point there has to be economic damage here.

is china makes up a much bigger part of the global economy today than in 2002 but i don't know that the coronavirus is going to be with us through the end of the year but maybe the market is just looking ahead to the better pmi numbers out of europe. the better pmi numbers here in the u.s. yesterday so that may be what the market is looking for but i would not be surprised to see additional volatility here >> thank you appreciate it. >> thanks, guys. >> disney is set to report first quarter results after the bell today. this will be the first time that we have numbers since the service launched in november

joining us with what we need to be watching is park attendance. we have jp morgan media analyst. what's the most important number coming out here of the ones we just mentioned >> about the subs. the sub number is important, but think what's more important than the sub number is -- >> subs for disney plus? >> for disney plus, and that stands for subscriber. >> thank you. subscribers for the disney plus platform. more important than the number, which will be a big number forth north of the 20 million is whether or not they will say that the growth in number of subscribers, net number of subscribers continues post the december quarter. we know it will be -- we'll see a pickup in growth in march when they launch in most markets in europe. but has it contained and grown in the u.s. since the manned loran came off the air since the

end of december. >> what would be a shockingly low number that would concern you or one that would be amazingly high >> for a total number of subscribers? we think they'll be a little bit north of 20 million. i think the shock in the number will be something in the teens i think it's highly unlikely given that they had such a strong start. and an amazingly high, wow, north of 30. >> north of 30, all right. >> yeah. >> let's talk a little bit about the coronavirus, because that is going to have some impact just because they've had to close some parks and shut down things. what -- how do you kind of figure that out? how does that play into the revenue line how is that an impact and is this something that you figure you'll just see through because there will be an end eventually? >> i think it's a big deal and not a big deal. it's a big deal because it is a big number. they've closed shanghai disneyland and we know that hong kong was going to lose 80 million in the december quarter. that's when the park was still open. so even though i don't think shanghai disneyland is quite as profitable, they close the park. so i think you'll see a guidance

for a loss north of 80 million for the march quarter. it is a big number. don't forget the studios, right? moulin may or may not open in march, we'll see. but i think investors are focussed on disney plus. they're focussed on what's going on here. and i think they'll see that eventually there will be an end. we don't know when, to what's going on with in china with the coronavirus. i think you're right, i think they might look through it. >> thanks so much. i spent too much on hamilton. 75 million for filming of the stage. >> i want to take that back. i think if you count what the ability to run it on disney plus, i think that actually it may make sense. >> 75 million for hamilton, was that a good idea or not? >> it's a different strategy. it's a little bit riskier but think it's a coveted property and competitive environment. >> so it's worth it? >> we'll know when we know. >> netflix could have picked it off or somebody else would have picked it off. but do you get 75 million at the

box office it's 75 buy it. there's no additional production costs, but then you're going to spend another 75 to $100 million to market it. >> yeah. >> so the question is could can you get $175 million back? we'll see. >> not just at the box office. >> that's the question. >> it's a unique asset. it's got the original cast. i think it's -- i think someone else would have grabbed it and i think disney was right to grab it. >> very quickly, the stock has run up rampantly after the last year. is everything good news built in already in disney plus >> the assistance no. i think it will be rerated if we have a great sub number that people can sink their teeth into and people want to know if the growth has continued. that's upset if we get that. >> thank you. a programming note, a first on cnbc interview with bob iger happening at 4:00 p.m. closing time after closing bell. and tesla bull run, talking all about tesla gave us a preview of what he sees for the

company down the line. >> what's it going to be worth i mean, gee, i can't see how -- of course i can see, but my idea is that in ten years this is going to be at least a trillion dollars of revenues and it's nowhere near ended at this point in time. there's a lot of growth opportunities from that point going forward. >> i want to get down to the new york stock exchange to talk tesla and much more of that stock on a tear. jim, i know that you've been bullish, but are you that bullish at this point? >> well, i said that it would certainly be worth more than twice what gm and ford, if you add them up. still not there yet. it's got a little work to do. but, yeah, i just think that it's a technology company, got a value it like a technology company now with the earnings. i've also said that remember april, as you said in the call, there's going to be national battery day. zhant mean doesn't that mean hes something about the battery? he doesn't do these things

without having the goods. i think the berlin factory will be a game changer. i'm still on board. i haven't left it. it's been 500 points since i started. a lot of people feel i'm late. but if i'm late and i get 500 points, i'm kind of happy. i don't thinkthat's bad. >> we had a bear on earlier who put the value at $350. didn't say to short it right now because there's clearly a momentum game or something happening right now. >> there is a buy-in every morning before the market opens, that's just actually brokers who can't deliver the stock coming in and buying the stock. that's why you see that pre. i've had buy-ins when i had my hedge fund. but can it get ahead of itself on a given day when sellers come what's interesting it doesn't seem to be able to find a natural level where sellers come in because they're like ron baron. gees, the shareholder base is kind of like me. they're believers. >> loyal. >> two other companies for you real quick. i want to hear your views on alphabet because i can't make heads or tails. >> it was a great quarter. people should shut up.

they didn't miss. honestly. we finally found out that cloud is doing well. we finally found out that youtube is doing really well. the main thing is we, trying to get away from search. now they're getting a way from search. that was a gleeful conference call. but the reporters, the headlines, the generated headlines by the computers stay was bad. but there was -- of the ten analysts, only one was neutral. all the rest of them loved it. >> okay. >> and i don't know if that's a buy. >> we got the house this afternoon. >> iger does have it to deliver. just because his green bay packers didn't deliver. >> what do you think the disney plus number will come in at? >> oh, wow. carl, what's the disney plus number going to come in? carl's here. it's going to be huge! it's going to be huge because it's the biggest giveaway ever. even favor's going to take it and his kids are hitting college. favor doesn't take anything. >> okay. thank you have mr. cramer. >> and he's got it. favor's tied up for disney plus. it's the only thing he's ever

bought in his whole life. i mean, other than going to marshal's with me, boom, he bought that. >> we'll wait to hear favor on th ia ttatn lile bit as well. jim, see you in a couple minutes on "squawk on the street." >> yeah, okay. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today.

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let's get a final check on the markets and what a run we're seeing this morning. dow futures are indicated up 500 points. nasdaq indicated up 130. the s&p up by 41. let's hand it over to "squawk on the street." we'll see you guys soon. ♪ >> good tuesday morning. welcome to squawk on street. i'm kyle along with jim at the new york stock exchange. equities are rallying around the world as china injects another 57 billion in market liquidity. tesla's pair bollic action continues today. europe's up about 1 1/2%. the ten-year getting close to 1.6. and oil is increasing after a bear market