♪ san francisco, san francisco san francisco, hey, hey ♪ good monday morning. i'm carl quintanilla with morgan brennan at post 9 of the new york stock exchange. jon is in san francisco today in our one market bureau. a lot more with jon coming up this hour. three members of fang trading at all-time highs today with the nasdaq but we'll start with tesla, up again this morning. >> one reason why the stock

might be moving higher today is because of the positive reports out of china that the tesla plant in shanghai has reopened and has resumed production we say these reports because this is according to local media. we have not heard confirmation from tesla itself. unis une says workers er ers we entering wearing masks to start production carl mentioned the volume last week, 172 million shares, way, way, way above normal. now to that exclusive data it has to do with the battery cost for tesla and other automakers as they're building electric vehicles. look how much it's come down for tesla. this is according to paired energy research advisers they basically look down battery, look at the battery pack, the management system and they say tesla is now down to $156 per kilowatt hour that's at least $45 to $55 above

all other automaker who is do not use the same type of battery pack according to sam jaffe with karen energy research, this is an advantage that tesla is using and will use for years to come >> tesla has a few years' advantage. they've started a few years before the other automakers have committed to this. so they're quite ahead that's going to last over time if they continue to innovate, which so far they have >> this is important data, guy, for one reason mainly, the fact that we continually hear from people saying there's nothing different about a tesla than any other electric vehicle that is simply not true. when you talk with whether karen energy research or others, they will tell you that, yes, there is a difference both in terms of structure, the software, the chemistry. that is a different thing tesla is using right now and a big reason why increasingly when you

talk with analysts on wall street, they say that is an advantage tesla will use for the next couple years until other automakers become more competitive with them on the cost side. >> for sure the contest is far from over, phil. that's good stuff. phil lebeau in chicago no one's feeling the pain of tesla's recent surge more than the shorts, losing $8.5 billion in total in five weeks roger mcnamee is here at post 9. >> i got my butt kicked. couldn't happen to a nicer bunch of people. it may be the battery driving the business but it's jet fuel that's driving the stock it feels like, well, 20 years ago, right for those of us who have been around a while, the late '90s saw that kind of action and it's fun to watch i can't imagine owning the stock because who knows, right it's so wild and this is what makes markets

great, right because at the end of the day, it's about buyers and sellers, and the shorts, they can sit there and give you 100 pages of good data. you look at this and go it's an incredibly high priced stock, well disscovered and it has fan who support it it's a cult-like situation and wall street kweet ggets these fe to time. at the end, it comes back down to something realistic when does that happen? not until a lot of people have been burnt to a crisp. >> given your history, your

pedigree, comparing this to 20 years ago. we've seen those examples with qualcomm stock and that chart 20 years ago. does it really feel like 1999-2000 to you or is that overstated i think that stock does. i don't think in general i'll never forget being on a louis conference thing and i couldn't even go into the bathroom without somebody tapping me on the shoulder at the urinal saying give me your long-term view for qualcomm, which they meant like the next 60 seconds that's how things were then. i suspect people focused on tesla are getting that, but you don't see that broadly at all. the things that are out there, stocks driving the market are apple and google and amazon, things that are huge, hardly the ephemeral kinds of stuff we saw in '99 qualcomm was a very real business, but people were making speculative bets then that took another ten years to come true

>> roger, let me try to do what i love to do, which is take a bit of the other side. is this 20 years ago or 15 years ago? 15 years ago with the apple ipod and iphone changed the economics of not just the pc business but kind of the consumer electronics business and capture more than anybody had before isn't it possible that tesla is on the road to doing the same thing in auto? >> i think it's entirely possible, jon. we've had that conversation many times at much lower prices my issue, going back 15 year, it didn't get off trading cash value until 2004 i look at this and go there is a price at which that case is really fantastic for the stock right now, i think that whole thing is in the stock and the question is, is there more in the stock than just what those fundamentals give you?

i don't know the answer to that. but what i do know is that it's fun to watch >> yeah. simple way to ut it. misinformation facebook and twitter are getting ripped apart this morning afte denying speaker pelosi's request to remove this video that was edited to make it appear that she was tearing the copy of the president's state of the union address during his honoring of a tuskegee airman. this was parodied last night at the oscars take a listen. >> a couple years ago there was a big aster at the oscars where they accidentally read out the wrong name and it was nobody's fault but they have guaranteed that will not happen this year because the academy has switched to the new iowa caucus app >> let's take the pelosi video first. how responsible is facebook for editing things like that >> they're not responsible for it, but they should take things

like that down they have consequences >> it's not a.i. doctored, not a deep thing >> of course it's not but it's obviously misleading in the context of politics, i think we have to recognize that we're dealing with a disinformation primary that's running parallel to the real primary and that is affecting people's voting. i mean, there has to be some impact from all of trump's disinformation on biden's campaign there has to be. i mean, you see those connections, and this stuff -- the question is do you want politics to be about facts do you want it to be about the future of the country, or is it okay to bring it to this lowest common denominator of things that provoke people's emotions without actually informing them? >> you'll admit it's dangerous, right? next thing you know they'll be requesting you to take down an ad that made you look bad in black and white. >> some things are clearly misleading and because of the way they're being targeted, i think there's a better case for

having things up when they aren't being used in targeted advertising. the issue of targeting is designed to be incendiary and that's really where the problem comes in >> roger, isn't the problem also that maybe the public doesn't know where truth resides anymore? it's about bringing political discourse and political advertising down it's been in the gutter for a long time. when i watch a political ad, i don't necessarily expect it to be completely true i expect it to be spun and, you know, the bad music and like carl said, the black and white i mean, if this were in a news program ed difficulted that way, i'd have a problem with that, but something that the president is tweeting, how accurately do we expect it to be >> well, i guess the way i look at this, jon, and this is the call we have to make as a country, is do we want to have our politics have any substance in it at all or do we want the whole thing drag dound to this low level?

the concern is this disinformation primary going on right now that isn't being covered with what i would describe as the right kind of focus, that the exact same networks that were doing disinformation in 2015 and 2016 are back at work again doing the same exact things with the exact same impact they had in 2015 and 2016 i think we all decided after 2016 that we wanted to have a little bit more balance in the content that was coming through social media and we were trying to rein them in it is really clear that self-regular galatition has fai miserably and we'll need something in there, either that or we'll lose the political system we've had for the last 200 years. >> i want to dig in into that more, especially given the fact there's a difference between what you're bringing up there, which is crucial, versus fancy video editing of events that did not take place, although not within a time a video displays that said, breaking news on

amazon out of washington >> amazon is making what appears to be an unprecedented request in its case against the government over that $10 billion jedi contract. amazon is seeking to depose president trump, secretary of defense, and former defense secretary james mattis in that case the request came in a motion that was unsealed in court today and in a public statement amazon minced no words. it accused president trump of interfering with government functions to advance his personal agenda, and it said the question is whether the president of the united states should be allowed to use the budget of the d.o.d. to pursue his own personal and political ends now, both the doj, representing the department of defense, and microsoft, which won the contract, are opposing this request. we expect a judge could rule on whether this could go forward sometime in the next two months. in addition, amazon had also filed an injunction to stop the d.o.d. from rolling out jedi

later this month the judge hopes to rule on that request by thursday, but today, guy, we see amazon dramatically escalating their case against the government over the jedi contract, taking this directly to president trump back to you. >> thank you roger, holy smokes i have to put jedi into context a bit here in terms of d.o.d. contracts it's up to $10 billion over ten years, not a very big contract per se it's been more the fact that this win for microsoft over amazon could potentially pave the way for future contracts within government, especially around sensitive or intelligence-related work. to see some of these top names in the administration deposed in this court case, i mean, that's a little surprising. >> in the context of the impeachment, though, this argument that amazon's making takes on a greater resonance if this had come up in any previous administration, you would have laughed it off.

the problem is there are lots of examples, one in the senate that the president is doing precisely what amazon is accusing him of doing here this is like the issue of disinformation we're living in a world where the people who are the gatekeepers in society, the people who are supposed to be standing up for the american way are doing a particularly poor job of doing that right now, and the consequence of that is it's really hard to accept what they say and as a consequence it's making people genuinely confused about how to go forward. it's not healthy to have corporations wanting to depose members of the administration because we used to take this as an article of faith, administrations put the interests of the country first and they would never consider doing that kind of thing >> roger, you're right, there

are echoes of impeachment here because amazon is claiming that the president used the power of his position, of his office to pursue personal gain but while with impeachment we talked a lot about political implications, especially from the upcoming election here, i think we have to talk about stock implications what are the implications here, particularly for amazon and microsoft? do you think there's risk to microsoft here or similar to what happened with impeachment where polling-wise it looks like the president, if anything, has gotten stronger after the senate trial? does this in some way strengthen microsoft's hand >> yeah. jon, i have no concept how the legal thing is going to turn out, but it would really shock me if this particular path that amazon is taking worked. i guess, you know, i just don't see the administration conceding anything on this, and as a consequence, i don't know how the case moves forward

>> which is why it makes -- bezos' decision moving forward on this is bold. the chance of this working seems really low why antagonize the white house knowing the chances of what you want to get are minimal? >> excellent question. >> serious about federal contracting potentially? >> well, amazon clearly is intensely serious about taking on all kinds of -- law enforcement with ring has been a huge area of emphasis and given google's failures in medicine relative to taking data -- they've been accused of take daigh ta out of the cloud product and using it in a.i., that's created a big went doe of opportunity for amazon and microsoft to grab share. so from amazon's point of view, i think this is a very high-risk strategy, and i don't see an obvious path for it working out. but, you know, we're in one of those really weird times where

things are happening half a dozen times a day that you never thought would ever happen. >> yeah. >> and that's become normal, which if you're an investor, i think it makes everything really tough. >> yes, indeed hopefully we get news on the injunction at least on thursday. >> and i hope that journalists do with what this show has been doing since 2017, which is to take this disinformation primary seriously and recognize that facebook in particular, youtube in particular, have done nothing to

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welcome back 2019 was a historic year for women in venture capital according to a new report from a nonprofit that works with female founders and really the whole industry still the march toward gender parity is advancing slowly pam koska is here to explain

why. >> thanks for having me this morning. >> what's the environment like now? was there a big significant shift in 2019? and how much of that has to do with the economic environment? >> there was pretty significant growth in 2019 we saw 52 new female g.p.s and partners in venture capital, up 37% from the year before we're seeing positive change moving forward, and that's for venture capital firms that have more than $25 million aum, assets under management, and focused primarily on high tech, not on life sciences or corporate pc >> how much do you think broader policy has do with that? i'm thinking about, you know, california sb-826, which says, hey, if you're a public company in california, you have to have some diversity on the board. goldman sachs moving with the companies that it works with to take public, saying we want to see some diversity on the board. often vcs end up being on the board of a start-up potentially.

is that having an influence? >> i think of this as a multiimpact scenario, so having some influence, but we really believe that it is the economic availability that's at the table. last year morgan stanley said $4 trillion was being left on the table by not having diversity in the venture capital ecosystem both at the venture capital firms as well as in the number of women who are female founders that's a lot of money that's available, and if people want to have access to it and take advantage of it. >> i hear from female founders often that diversity in venture capital matters and we saw the incident at lightspeed years back, you know, harassment and how that affects the ecosystem, the controversy that kliner perkins went through what do you think is the legacy of the lightspeed controversy of ellen pow and her suit versus kp how has the ha affected the environment we find ourselves in today and the progress that we see? >> we were woborn out of that

moment in silicon valley it was an impetus that we called the momentum and is becoming a movement where change is happening. we believe it's driven by the economics of diversity and the value that's available so that sparks the awareness and now the economics are taking over, people saying it's about getting diversity around the table so that we can have more diverse perspectives and thus have a better economic opportunity. >> pam, i'm curious, is it realistic, is it attainable to think that all of these existing vc firms that don't have some sort of female partner on board, that that's where you're going to find gender parity by adding more women versus more women investors coming on and creating their own firms with their own new cultures as i get tongue-tied >> we think both yeah, no, we think both. 65% of venture firms still don't

have a single female partner on board. we see some positive changes coming through, some of the largest firms not having just one but multiple women at the table. so we think that's looking at the top of the stack we also do see a lot of opportunity coming from the bottom as well, where women are forming their new firms. so i think it's going to take both in order for us to enact the change we want to see. >> looking at your report, you highlight new york city as one of the most female founder friendly locations in terms of funds secured via venture capital in the u.s why? what is it about new york that is so conducive to this? >> i think new york just has a lot of different financial markets, a lot of different industry, fashion, retail, consumer that make it a hotbed for being open to investment in women and female founders and wanting to have more venture capitalists around the table who can make sure that there is a diversity of perspective and

that they can make different investments. of course, you know, one of the things we see as a low light in the analysis is that not only do 65% of companies don't have a single female, but women of color are not well remitted in the venture capital industry today. that continue s to be a problem we want to focus on and the industry needs to focus on >> a lot of progress still to be made i guess we still need all rays >> and a lot of other voices in the industry as well >> pam, thanks >> thank you so much >> european markets are set to close in a few minutes mode mold h seema mody has a breakdown >> the w.h.o.'s director warning this morning that the spread of the coronavirus among people who have not been to china could be, quote, the spark that becomes a bigger fire. heading into the weekend, europe had 30 confirmed cases of

coronavirus, and that has swelled to 40. most new cases can be tracked back to a french ski resort where is a group of brits were staying. several travelers returning to the uk tested positive for the virus and one british national who had returned to his home in spain. banks in ireland and banks that have exposure to the country are trading down by a substantial amount after the left-wing sinn fein party over the weekend pulled off a major political upset in ireland the party's main object sich ivt unify the country. we wait for final results of that election. let's get a news update from sue herera >> hello, everybody. here's what's happening at this hour the department of justice announcing that four chinese military hackers have been charged with breaking into the computer networks of the ek kui fax credit reporting agency and stealing the personal information of tens of millions of americans

the four are also accused of stealing the company's trade secrets. >> the scale of the theft was staggering as alleged in the indictment, the hackers obtained the names, birth dates, and social security numbers of nearly 150 million americans. >> china's president xi visiting a hospital in beijing, thanking the medical workers for their handling of the coronavirus outbreak he also had a video call with some medical workers in wuhan, the center of the epidemic china reporting a rise in new cases today, denting any optimism that disease control measures might be working. the head of iran's nuclear agency says tehran will not hesitate to strike back when necessary. al akhbar saleh speaking at the agency in vienna you are up to date that's the news update back to "squawk alley. morgan, back to you. >> sue herera, thank you after the break, fred smith's

heir parent weighs in on the coronavirus impact fedex is seeing the company's president and chief operating officer joins us next markets. the business of trading goods and services. nasdaq operates among the largest markets in the world. and our technology powers markets from indonesia to chile. great markets are built on a foundation of trust and integrity, forged through leading edge technology and a smart regulatory framework.

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changes lives everywhere. everywhere. everywhere. everywhere. everywhere. welcome back to "squawk alley. we're continuing to monitor the impact of the coronavirus, more than 900 deaths so far and 40,000 infections worldwide. fedex is responding with humanitarian aid to china containing surgical masks,

coveralls, glove, and more the stock up nearly 10% over the last week. it's now up about 1.5% in today's session so far fedex president and ceo raj subramanian joins us now in a cnbc exclusive raj, thanks for being with us. definitely want to get to the impact of coronavirus, but first, why the stock has rallying in recent days. launching a pilot program express residential packages into the ground network for delivery how broadly can this be scaled when you talk about cost savings, how much could be realized >> thank you, morgan, and thank you for having me today. so we are very excited to move residential packages that can be delivered by ground, so residential packages for express that can be delivered by ground, we're going to move that over to the ground company

this is about last-mile optimization and it's about improving efficiency it will be kicking off in greensboro, north carolina the opportunity is really good >> historically fedex has made the point to keep separate the express and ground segments. could this bring more integration between those two businesses >> so, let me be clear you know, we believe in operating independently and managing collaboratively what is changing here is the fast-growing residential market. and if you think about it, two trucks coming to your neighborhood, delivering residential packages, especially in the evening, that's what we're trying to optimize and as the market for residential packages grows and there's opportunity for efficiency gets more greater it allows express to be the time-definite company,

especially in the business-to-business segment, and it really makes express the express. >> the past year and a half has been tough for fedex in terms of earnings reports, guidance cut, conference call, a lot of focus on the macro environment, the trade tensions called out as chief culprits we have a phase one china deal usmca has been signed. there's more clarity about brexit does all of this spell a recovery for fedex this year >> the last 18 months or so the global economy has been a two-speed economy. the first is the slower manufacturing growth and the faster consumer-led and tech-led economy. ever since the signing of the phase one deal and also the issues around brexit and the usmca, the uncertainty has reduced and we've seen the

indexes start to come back in january. that's a good sign but, again, now the situation in china, we have to see where things go, but we are most importantly taking steps to make sure we have the right capacity to deal with this market and also to really lean in to e-commerce so the portfolio that we have now in place is market leading we have launched the residential delivery and that's going great. we are at a terrific peak. it's great growth. now we're announcing the increased efficiency for e e-commerce deliveries and residential deliveries >> you mentioned coronavirus we have manufacturers in china that remain shut some regions are extending their shutdowns. heaven forbid this outbreak continues to widen, continues to stretch on for longer than initially anticipated. what could that do love to trade

flows and the global economy at least from the fed ex line >> when i talk about this topic, the first thing i have to say, safety comes firstalways at fedex. and, you know, so we're making sure that everything we do is essentially around that and making sure everybody has got the right equipment to deal with the packages, to do business in china. we continue to fly in and out of china. now, we also contributing to the society at large, and, you know, we've sent million of shipnt of masks and alcohol wipes to china. we're moving 5 million more masks this week. we're doing our part for the society at large as far as how this evolves for the global economy and the supply chain, only time can tell we hope and expect that, you know, this will pass, you know, in a couple of weeks or months and that the flights get normalized but it's too early to tell and

we are definitely monitoring the situation very carefully >> you mentioned peak season before coming into holiday, company caution, costs elevated as the network is handling record volumes again how did peak season go for fedex especially since you had amazon coming out and blocking third-party sellers from using the fedex ground network >> yeah. it was perfect for us. i'm proud of the fedex members cyber monday, 78 million package, 17% year over year. our fedex home delivery, an increase of 42% year over year in the time frame. we tarted moving over the weekend doing peak, delivered 8 million packages on sunday we are proud of our service performance. we did not lack the service standards during peak like our competition did.

we delivered 18% of our packages one day early. the decision by amazon did not have a material impact on our numbers and we are proud to serve the small and medium customers who rely on our service for peak and the rest of the year >> raej, that's a good point a lot of those look at the stock and say naturally they're a victim of global trade slowing down on a macro level that makes sense, but others argue that's been a bad card you've been dealt and accentuated by weak execution. what do you tell those people? >> i think, you know, we are leaning into e-commerce, put the best foot forward in the market place. we look at the period of the last 20 years. you know, we have gone from in fedex ground in market share up roughly 5% and now 30%, gained share in 19 of the 20 years, and now owe ear taking the next step as we are further optimizing the last mile. i think, you know, we haare investing for the future and

we're very confident where we're headed >> finally, raj, you talk about steps around the last mile and investing for the future, decision by fedex not to renew some of the contracts with amazon has affected some earnings results we've seen u.p.s. pick up market share as well. why longer term does it make the most sense for fedex to decup from amazon and put the company on stronger footing? >> if you look at the marketplace, 2016 there were 15 million parcels per day in the united states. we expect that market to go to 100 million parcels per day. there is a lot of growth we have a very, very diversified customer segment from small, medium, and large businesses, and thiey're growing with us. it's a lot easier to manage when you're not dependent on one custom customer it's a much better strategy over the long term. >> raj, thanks for joining us. fedex stock up 1.5% today.

>> thank you very much let's get a "market flash" on slack josh >> so, carl, let's check out shares of slack, which is surging right now off this headline -- ibm is deploying slack at every single one of its employees, about 350,000 people worldwide. this would make ibm slack's largest single customer to date. the ibm manager in charge of this, business insider, that this all came about for a pretty simple reason, its employees like using slack this comes as slack goes head to head with its big rival, microsoft teams. back to you. >> all right, josh we'll watch that early going still. as we go to break, can't get enough "squawk alley"? watch us live or anytime on the go on the bccn app download that today and don't go anywhere low sugar tastes great! high protein low sugar so good!

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and it may not be the one you're thinking of. mike >> we say it's more recently become that, microsoft 20 years ago you could say it was exactly that right now the market is trading microsoft as checking off all the boxes of what is most preferred by investors today consider all the categories that it leads in, right people love tech but they love software even more they like large caps, mega caps better long-term secular stories like cloud very sturdy free cash flow generation, all these things the market is valuing more highly every day, microsoft embodies. if you look at the etfs, it qualifies as momentum, quality, low volatility, mega cap growth and esg, which i wouldn't underestimate is as well as dividend growth and buyback. the problem is, if it's going to become a problem, is the valuation. it's at an 18-year high with the

p/e multiple that premium has expanded to quite a degree right now arguably it's overowned by hedge funds and all those etfs there's also an element of potentially hiding because apple's got a china issue, they're closing stores, microsoft is not closing any stores so as people decide that the u.s. is a haven within the world, tech is a haven within the s&p, and software like microsoft is a haven within tech, you wonder what the limits are to how high this can go. up more than 1% today on no news >> in the grand scheme of thing, we'll probably ask the same question, jedi material or not >> i wouldn't say it is. i don't think it throws the bigger picture story of cloud off course for microsoft but something might become material if not that >> mike, you said that you can't please everyone. that's the excuse for specializing

but is it a problem that microsoft at least right now seems to be pleasing everyone? does that mean that as you imply perhaps it's overowned and things could turn around on it quickly, or there's some other danger ahead >> i don't think, jon, the fact it pleas almost everyone right now, is in itself a problem. the problem is if people become too xla sent thinking it's a one-way bet and almost any price is okay to pay for a dollar of microsoft's earnings that's where it could get dicey even on a technical basis, if you look at the acceleration skyward in the stock, it's more overbought than it's been since late 2009 when it was shooting out of bear market i think there's a lot of things to tell you. any imperfections in the story are probably going to bite or for that matter if the market decides rates are going up, we are going to see a cyclical upturn and we want to buy semis and caterpillar more than we want to own software, that's

where you could see the relative performance lag a little bit >> there's been wall street chat they're the rally to new records that we saw in u.s. equities last week is the reigniting of there is no alternative to trade amidst the coronavirus uncertainty and concerns it almost sounds like it's the tina trade been the mega cap universe >> exactly the process of elimination with what seems too risky to own and i'll just buy more microsoft >> the carbon negative put the cherry on the top. >> without a doubt look at the thematic etfeshetfeshgss and it has a 6%, 10% waiting, it is environmental responsibility, even all other kinds of esg stuff, women in boardrooms so i think it's the stock for the moment you don't want to say it's wrong. i mean, it's 3% free cash flow

yield, and that's the growing rate for businesses. that's where it trades i don't want to say it's gone completely out on a limb but it's aggressive at these levels. >> stock is up again today mike santoli a "market flash" on roku julia boorstin has that. >> roku shares are up about 5% this morning reacting to two analyst reports, one an outperform rating and a $160 target saying the disney launch was positive for roku and that its international expansion will be a key catalyst for growth d.a. davidson says coronavirus may prove a risk to roku's supply chain, to the creation of those boxes, but that roku could benefit from consumers staying home due to coronavirus-related concerns back to you. >> julia, thank you for that after the break, a huge new

funding round for snowflake this morning. john sits down with the ceo exclusively. that's next. ♪ the amount of student loan debt i have i'm embarrassed to even say i felt like i was going to spend my whole adult life paying this off thanks to sofi, i can see the light at the end of the tunnel as of 12pm today, i am debt free ♪ we have no debt, we don't owe anybody anything, and it's fantastic ♪ we're committed to making college more affordable., that's why we're keeping our tuition the same through the year 2021. - [woman] i knew snhu was the place for me when i saw how affordable it was. - [narrator] find your degree at snhu.edu. and when you open a new brokerage account, your cash is automatically invested at a great rate.

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and voice for an amazing price. call today. comcast business. beyond fast. a $479 million funding round of series g led by the likes of dragon ear pushing snowflake's valuation up over $12 billion, making it one of the most

valuable in the area frank slootman joins me at one market great to have you. >> good to be here >> storage, technology built on the public cloud tell me what's driving this series g you raised about this much money back in 2018, and you have still got most of it if not all of it in the bank, right >> yeah, that's correct. this was not really raising money. it was about establishing a strategic partnership with sales force. of course the price of admission to do that is of course for sales force to have an opportunity to benefit from that partnership as well. so that is really the pretext for what's going on here >> now, last time we talked on "squawk alley," if i remember correctly, you said that there was a window to go public before the election at the end of this year you also said you would consider

a direct listing people who have been following that know. if you don't ipo, there is not the same money raising opportunity at that moment so one thing you might do is raise a big series g, which you have done. is there still a possibly to see you guys about public before the election >> yes, there is i mean the two are really totally unrelated. we get a lot of questions, does this change the trajectory for an ipo as i said, it doesn't. the timetable, when we will or will go, all of that still holds. it is not an essential balance sheet transaction from equity to cash. >> is a direct listing kinds of after all the vc meetings and buzz at the end of last year still an attractive option to consider. >> one of the advantages that i feel an ipo has, it gives us an opportunity to really build our shareholder base as a public

company. those are different kinds of entities those are people who can hold multibld positions for five ten years so on. there is aspects to an ipo that actually help us achieve those objectives. >> mike santoli was just talking about microsoft, which has been on an amazing run, part of the reason why investors want to be part of it is because of its position in the public cloud amazon recently reaching 52-week highs as well. all of this, including google, have calked about infesting in the sales force. they are clearly trying to drive growth zep desk, another cloud player, not in infrastructure, also investing in growth. what is happening in the cloud in 2020. is there a specific opportunity guys like you are chasing? >> it is a massive transition. the biggest thing ever in the

world of computing where literally all work loads that have been built up over a 34-year period are now moving to the cloud. it is going very, very fast. it is almost hard for an organization like ours to fully assert the opportunity that's unfolding in front of us that's why everybody is investing like crazy. >> to hear you say that makes me think we might still be undercounting the opportunity. mobile was a big opportunity mobile and cloud are tied together considering things like open source and things like that that you say came before, you say this is much bigger? >> much bigger it is the entire computing infrastructure that built up since the 1950s and 1960s. everything from the last sentry is transitioning to the cloud. there is less and less reasons to resist the cloud. the last ten years we had conversations about privacy, security, and so on. it is going away people are staring at each going we have to go, time is not our

friend. >> how do investors determine where the profit is going to be and therefore the best investments cloud wise in the beginning we talked about infrastructure and general storage. now we are talking more about higher value software and services that sit on top of the cloud. what is your bet on where the value is going to be >> clearly, software has better unit economics than storage and servers. you know, all things being equal, that's a better bet. >> therefore, do you think there is going to be consolidation where potentially the microsoft, amazons, googles, even ramp up their m&a activity to leverage their existing positions, got to mention ibm of course with the red hat purchase leverage their infrastructure positions and also add to the profitability and round out the mo >> potentially you would have to ask them what is going on if you look at the public cloud players it is

consolidating. in other words, the market share of the top three is actually increasing in order, it is not proliferating. it is actually coming together, aws, microsoft, and google all doing well >> finally, coronavirus, we talked about it in the context of thing like sem conductors, supply chain hardwares is that having any effect on the cloud ecosystem that you can see? >> not at this point there are peripheral issues. for example, we are having a big sales kickoff event in vegas this week. we thought pretty hard whether we wanted people to travel, where to travel from it does affect us, in the end we decided to did it and pull the trigger. it does preoccupy a little bit of mind share but it is not the same as for other types of enterprises. >> we are seeing that with mobile world congress in barcelona. mr. shootman, with snowflake, thanks for being with us >> back to you. >> jon, thank you. getting a check on where we

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20 years ago today, pets.com went public. a cautionary tale from the dot calm double, surging more than 30% in the first day of trade. gone by november of that year. guys, i don't know where you were at the time, but we got our share of sock puppets here at cnbc. >> we sure did the ceo of that company at that time was julie wainwright, now the ceo of real rail that ipo'd at $20 last year, trading around 14 and change right now. talk about a chapter two >> i was out here. i was out here, a relatively new reporter for the bay area, covering this. and cosmo.com, and other ideas that it wasn't time for them

yet, but they have come around >> wonder -- i have to check and see what the sock puppets are going for on e-bay it is going to be a busy week. consumer names this week in terms of earnings, hasbro, hilton, denny's, before we pivot to cisco and expedia and nvidia late fler the week let's get to the judge. >> front and center this hour, the question facing every investor, are the bulls really still in charge of your money in this stock market? that debate gipts rye now. this is the "halftime report." earnings, economy, and an epidemic where the street stands on this rally. amazing amazon, shares hitting new record highs why it may be time to add this name to your basket. fedex rallying on an upgrade. it is our call of the day. a flood of results this week and one stock getting its price target raised to a new street high ahead o