i love those crinkle cut fries, thank you for being with us. >> thank you for having me >> good morning, everyone. welcome to "squawk alley." we're coming to you live from various locations on another interesting tuesday. you see the southbound hanging on to 3156 we're keeping an eye on the p l volatility for tesla adam, good morning again, good to see you >> good to see you, carl >> let's talk about yesterday and this on going debate a controversial name that burns a lot of cash to one that

becomes a cash flow power house in your words. >> we think we're seeing the part of the possible and the buzz kill of the probable coming together the world's alarmer tam. the world's most energetic, enigmatic, courageous ceo. a phenomenal human being in many regards, and then against that, and also frankly the product has a huge lead on anything else in the market on the other side of that to extrapolate that out, 10 or 20 years, investors are making a number of bets they're betting on the legacy guys failing even if they spend half a trillion trying to

succeed. and i think the big bet is against amazon, apple, and google nose are the things that concern us right now >> when you see the case there at 70, is there a symmetry on how good and bad it could get. >> if you lock most people in a room for a week or a month and say you need a $5,000 or $10,000 share price for tesla, they can dream the dream, right and you would have to have a path to get there. that may not be provable, right? what we are telling investors is to properly -- if you're going

to make 15 or 1600 basis, it has to be more than cars it has to be more than users you have to talk about tens of millions of users of the car and maybe 100 a month of revenue per unit for whatever it might be, and get that 80% software market on that. i think that is the most exciting thing about the story i think we have what it takes to do that. if you think they're a tech stock you have to expect tech competition. we need their views in order to properly map where this company is going so that is where we see the skew hey, good morning, it's john

fort i'm hold enough to remember may 1st when elon musk himself said that the stock was overpriced at 701. i mean what do you do with this as an analyst? this is running so far ahead of you but you have to deal with some winds of fundamentals, so what do you have to raid it because you like it? because it has run this far after awhile >> first i think maybe elon has a mixed track record of calling his own share prices i think he enjoys making controversial comments we have to stick to fundamentals if you just saw them being and auto company you need them to

have more revenue than toyota. the market is saying stop calling this an auto company it can be bigger than apple. that is what we're hearing on tesla right now. if you, you know, you have to stick to fundamentals. i think tesla may deserve to be $2,000 and $3,000. maybe it is possible to say that over time, as they improve that software model but to give them all of the credit right now we think it prevents an unfair risk reward, and frankly if tesla can justify 2,000, the silicon car names like s.t. micro.

l.g., sam susung this is an arms race and we would rather be the arming des r >> julia here. a question for what you just mentioned about china. you mentioned a risk in china. tell us more about that and how that is how it is impacting your stock in the coming year >> i am channelling my cold war buddies. talking to morgan brennan on your program and others that do a great job on your program, we're influenced by that so looking at autonomy, the dual purpose military tech.

he has d.o.d. business, he has security clearance he understands the cyber, space, and ai theaters that we're operating in so i think that while right now things are paeeachy, we would rather pay a lower multiple than the stock market has on china right now. i had to give them a plug, there is a book over my right shoulder from your grandfather "the discoverers. it was a very important come painon for me during covid >> adam, that is great, i have it on my shelf as well >> my eye went straight to roots. >> that is another important one as well that we need to read >> riddle me this, i remember

three months ago that elon musk was mad that california would not let him open up the way he want today what do we read into the run that the stock has had, is this a new level of productivity? running past the issues that we saw last year. this looks great compared to what it sounded like >> that is a great point rook, he has been making one of the best stories that was easy to overlook is it was one of the worst plants in the world. all due respect to the hard working men and women, it is just a very, very expensive and in some ways complicated place to make a car. and he was able to get by. the delta now is being able to make the vehicles in areas where

the costs of doing business are vastly, vastly lower that is what is on display so the story of the second quart sere that china is not just the needle, they're able to get a significant cost savings from that delta it is clearly on display, and hey, they -- their sales are almost flat. so on top of them being nearly the higher car company, they're also in many ways perceived that they might be less risky than many legacy automakers that is changing the narrative that they're a speculative stock to actually, folks, these guys if they can sir fiurvive then tr battle tested and they can sustain.

people will throw money at them. that has expanded the investment community audience for them. >> one last question on that, why do you think they -- can we say they have been hesitant to do issuing -- >> he says he wants to keep the pressure on. he doesn't want to die lute himself unnecessarily. i don't think he wants a complacent view. he wants to keep the pressure on it is not just elon's imagination and creativity it subpoena more than him, there has been a lot of turn over. it is hard to work for him, right? the ones that do are willing to put everything aside and go all in we think they be barely profitable this season if not this quarter than next

quarter, let's move on but the cash burn will be modest on our numbers they will start generating cash again in the second half. they don't need to tap the market, it is just nice to have. i don't think that elon would ever rule it out o so he won't throw that away. >> certainly at the center of so many important deplaits that go far beyond the company itself. thank you so much. >> we were talking about deliveries and boeing is out with their numbers in the month of june boeing posted negative orders this is the sixth straight month where they have not shown any order growth negative 182 planes. that's what net orders for the

mon month of june. june orders year to date negative 784 the backlog is now at 4552 planes the backlog continues from last year deliveries in june, ten planes, year to date they have delivered 70 airplanes >> thank you for that, phil. still to come are parent companies about to join the streaming crowd. we'll talk to the chairman of peacock as a big show is still dot aahd. n'goway. lundgren, you've got a one-sixty i.q., a master's in chemical engineering and you're technically a genius... and it appears you're quite the investor. i like to trade. well, td ameritrade has pros ready if you need help, say talking through a new strategy... ... just in case things, you know, get a little rocky? i'm sorry on the upside i think that's waterproof.

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our next guest is a business holder he is also former ceo of the overseas private investment corporation. ray, good morning. >> good morning. >> i understand you also have the highland park shopping center you say you have been doing rent abatement, but that is going to have to stop because you have to pay mortgages, is that right >> that is correct the open air shopping you compare sales we have don't

pretty well, but that is a relative thing to say. as i said two weeks ago, july 1st was going to be when the tide was either going to stay in or go out and it has gone out. ppe money has run out. the governors wanting to shut things down again, it is not a good situation for us. >> it seems to me there is either help or you're locking them out what we're doing is we're working with our tenants to try to keep them open. but some are doing okay. our rent collection for our center is higher than industry standards. we're in the 70s, but still that

is not a good spot to be prepandemic we're 95 plus. so we're working with our tenants. the one that are struggling the most, we have a number of restaurants there and it is really a hard time an upper scale center, we're open air, people can come in and out of the center easily >> ray, i wonder what city in texas you find the most interesting right now. they're like let's take a step back, i'm curious is that view widely held. other charts suggest that

houston might have peaked. >> i don't have operations the ppe money has run out for people in our industry landlords willing to work with people in april and may are not being so accommodating going into july and august because their mortgage holders are not our cost of goods, just in the last two weeks, the cost of peef a -- beef and poultry went up 40%, production is being shut down the last thing is the regulations. our employees, we have 1800 employees. most have children in school and when we get to this fall, i don't know what we're going to do about our employee base most of them are two parents working. those four things are the things

hitting us and you're going to see -- i don't want to be dr. doom, but in the next 30 days, you might see a third of the restaurants in the united states shut >> ray, julia here i'm in california, in los angeles, and they announced the closure of all dine in restaurants. look at the fact that you have the potential risk of restaurants being shut down. do you think that restaurants will be poerptoperated differeny designed differently >> if this is a short term thing i think things will come back close to normal. our take out, and i have 40 restaurants that are full service like restaurant website and three weeks ago the governor

shut down any establishment doing over 51% alcohol sales so we have restaurants absolutely shut down how does that look when we come back out of it i don't know we have gone from 10% takeout to 40% to 50% but we have to redesign our kitchens for a greater rush of orders and our to-go packaging has skyrocketed in costs it costs more to do a to go order than it does an in-store margin you start taking away six to eight to nine points because of the order, and you know you take it from 10% which we could eat that, but 50 to 60% of your sales, that is a whole new business model >> yeah, that is rough you mentioned at the beginning

that you have to pay the port g mortgage, bank earnings looking pretty good not because of the mortgage side but the trading side they seem to have been able to balance this out what do you think banks need to help you out is there more that they can do >> you have to real estate that banks don't hold most mortgages on shopping centers. once the shopping center is completed, it is rolled away from them. that is a big difference between now and previous recipients. banks don't have long term exposure they have corruption exposure. so it will be under assault, especially the ones stacked with

retail loans that is what the shadow banking market that is not really regulated, it is off blast sheed, and it will be pension funds and firms hurt on that >> ray, good luck, it is a difficult time for sure. thank you for being with us. >> i appreciate it thank you. >> still to come what are our parent nbc universal streams service means. peacock saying they are expanding their number of titles we'll success with matt strauss. we return in two minutes so, if your network's down, you're down. verizon knows your customers need to reach you seamlessly. your team needs to work from different places across many devices. plus, you want the security

trusted by some of the largest companies in the world. and that's why you trust us. the most reliable network in america.

welcome back, everybody, i'm sue herera here is your cnbc news update at this hour. philadelphia is canceling public events because of the pandemic they have not revealed specific events, but it will likely include the philadelphia marathon, the thanksgiving parade, and parade on new year's day. and the last of the city's

casinos will reopen in atlantic city on july 26th. >> four former heads of the cdc are criticizing president trump and his administration for un r undermining their advice for political gain you are up to da,ly tesee you again in an hour "squawk alley" will be back in a moment when we started carvana, they told us that selling cars 100% online wouldn't work. but we went to work. building an experience that lets you shop over 17,000 cars from home. creating a coast to coast network to deliver your car as soon as tomorrow. recruiting an army of customer advocates to make your experience incredible.

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a new streaming service is joining a crowded field. p pea peacock is being released, matthew strauss, thank you for talking to us today, one day ahead of your big launch >> yeah, thank you for having

me i'm excited to be here and i appreciate the invitation. >> you're launching into a very crowded market we have been talking about subscription overload, subscription fatigue and there is plenty of other services as well >> i think if you look at it from a broad perspective, it you love television there is probably no better time than now. we think in a competitive market we have identified a white space opportunity which is to launch a premium add supported service that taps into the breadth and the depth of what we offered nbc universal. the strategy is unique in a few different ways we will deliver an on demand offering, and we have linear

channels in addition to creating a service with a lot of timely and current programming like news and ports so we think is the combination of things that creates a unique experience, but it is also available at a very affordable price of free. and we're seeing that the market is moving towards looking for other options and alternatives beyond just a traditional subscription service >> now you mentioned sports, but we're waiting for a lot of supports to come back. and you thought you would have the olympics right now when you announced peacock's launch for the summer how much are the changes to your production schedule, and the lack of supports, impacting you ability. >> i think it turned out to be

very effective for us. we had a lot of learning peado p peacock has been available for three months to 15 million subscribers. i think you have have tv usage increase aross the board it is very familiar to people. i think it is programming that people dwraf date towards. it is like comfort food. alongside current season programming and you know we said very aggressive targets for officaurours and what we were planning to accomplish and we beat it within 60 days of launch tlhere when we launch tomorrow, we're expanding that offering with original programming and the olympics was certainly something we were have

and it is also when we have olympics in a short amount of time and so many other things coming like "the office" is coming exclusively to peapeacock the nfl wild card game is on peacock. we're moving premier league games exclusively to peacock so what is exciting is what we're launching with tomorrow and if you look at the longer term trajectory, there is just a lot of positive things that we're excited about that we know are coming in the next several months and the next several years. >> now you havele sizing model, the subscription version and you're offering peacock through them and dock cast looking at the different pieces of the puzzle, what will define

t the success? >> we are a premium ad service no more than five minutes of ads per hour it is very uncluttered environment. in the next several years we think 30 to 35 million active accounts as you mentioned, there is also a subscription version so we think a way for son to access the a it will really cap into the pulse of what people are looking for. and people who love television and they just want access to more there is a five month version as well so we're giving consumers

choice we were able to structure deals with cox and comcast to bundle peacock hat no additional cost we have similar arangements wit the country for free it will give us the scale that we're looking for for advertising. >> matthew, this is john fort. i get the difference that peacock offers being free, but it seems to me unlike that is your move, primarily, free driven by advertising you need to be on the two biggest over the top tv platforms, particularly roku and amazon fire tv. what does it say about the structure of the over the top eco system right now >> i think that there is no

question that it is available on every platform when we launch tomorrow you can down load it on mobile devices there is certainly a pea peacock website. there are other tvs and visios, apple, and google. they are peacock and it is not only free to consumers but also free so we think that over time we will have, you know, full distribution our hope is that the platforms will see the value of peacock and the consumers that purchase these devices have purchased

them on the promise they're going to get access to the apps. we're going to do everything that we can to make it as turnkey as possible. i'm confident that over time we will have national distribution. we're not judging ourselfs in a very short term around how we will perform in the next month or few months. w we have a very long term view, and for thus is not a sprint, it is a marathon. and we have a lot of endurance >> it is kind of hard to remember, but a big part of the streaming was tall eant and ak i

decision costs >> we come to the stable with talent and a unique proposition. there is so many touch points across the company question structure deals, one of them is "brave new world." a series that we're really excited about, but also alec baldwin for dr. death, based on the pozcadcast. we feel good about our ability to attract talent. >> you mentioned your originals, and while you're launching with some, there is not as many because of covid and the impact on production.

how it l it impact the ka dance when you reintroduce more to the service? >> well, you know this is where i guess there is a silver lining there is no question with the pandemic that we had productions impacted particularly no different than any other streaming service or network there is such an increase in tv consumption, they have been the beneficiary of that and we're fortunate that we have such an expansive catalog and it is not just nbc universal but that we were able to structure deals with other studios and third party networks we see ourselves building out for a platform we didn't call ourselves nbc plus for a reason. we called ourselves peacock because we have the ambition of being able to build out this

premium ad supported service we have been really fortunate that we were able to structure deals with so many other providers. we said originally it would be 15,000 hours, and even though the entire team is at home like the rest of the country, we have not lost any momentum. we have been able to structure deals. we don't have as much originals that we initially planned for the back half of the year. they have several originals that we're releasing between now and the end of the year. as i mentioned earlier, given that we have such momentum, given what we were able to accomplish is that going into january of next year we feel really good we'll have even more originals than we initially planned. >> just a final question about the advertising business here. i have been reporting a lot on

the ad boycott of facebook and the question of whether or not advertisers are not going to continue to put as much money into this social space, what are you hearing from advertisers are you benefitting from that facebook boycott and what trends are you seeing there >> i would say we're not benefitting. as a news service we have to build a new brand, we have create awareness we're looking at ways of advertising. one of the things we're fortunate about is that internally we have symphony, when we use the power for all of nbc universal. peacock is one of those, so you're really starting to see us as a company mobilize every part of the cable networks, digital

networks, every part of the company is firing on all cylinders to promote peacock and to support us. we have as much as we have plan'd they are trying to amplify peacock and create awareness for consumers. >> we look forward to checking it out, matt strauss, thank you for joining us ahead of your big launch >> some action on the dow, but nasdaq having trouble getting out of the gate. we're mid wway through the sessn. e w is up 311. we'll be right back.

that is right, it is down more than 60% from the march lows, the big winner this is year include names like nvidia they pin the surge on two big surging. expectations were just too low and no the near term he says business appears better than expected analog devicesy agreed to by maxim for nearly $21 billion and it raised it's current quarter revenue guidance next is structural the highlight and importance of tech and chicks has been highlighted, so what are the top picks? he says nvidia, nxp, and

broadcom he says the took is cheap. there are risks that chip investors need to think about, too, though. rbc points out two for us. how will economic turbulence impact demands like smart phones and pcs and increasing tension with china is another question mark china is still a link they're going to take share from intel and he lies applied materials, too julia, back to you >> thanks, josh. a quick programming note as we go to break. this thursday cnbc in partnership with acorn is

hosting a virtual live town hall session bringing together americans affected by the current crisis financial experts will answer their questions to help them reset and rebuild their financial futures. that is this thursday at 7:00 'lbeasrn wel right back, stay with us ereeligible for medicare. gimme one minute... and i'll tell you some important things to know about medicare. first, it doesn't pay for everything. say this pizza is your part b medical expenses. this much - about 80% - medicare will pay for. what's left is on you. that's where an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company comes in. this type of plan helps pay some of what medicare doesn't. these are the only plans to carry the aarp endorsement for meeting their high standards of quality and service. so call unitedhealthcare insurance company today and ask for your free decision guide. with this type of plan, you'll have the freedom to

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looking at how diversity affects those picks. >> i want to take a look at the cover of the warner music ipo. the two million dollar meal had a 28 underwriters. a third of those was a special business ig nation for minority owned business enterprises it paid out $79 million in fees half of which wasn't to the lead underwriters everyone else were the minority owned firms generates just over $100 million in fees so issuers have been adding more of the firms to their banking line yumups. so far they were worth 41% but we crunched the numbers and there is a big gap for what they're being paid

oj avera on average these firms are making just 12 cents on dlart compa dollar compared to the fees generated by bigger firms. it gives the illusion of diversity an other small firms general ratsed fees worth 22% of the total fee pool on average. the first large i ipo to elevate the fees is raising capital right now. he hired four minority owned firmed to be co-lead managers. guys >> great reporting speaking of ipos, the ceo of

ncino joins us after the break ads rsawait the company'fit tre. we're back in two.

it's been a rough open for some cloud and software names. >> these are some of the highest flying names of the year they wi they are coming back to earth. it's lower by about 8% over the last two sessions. momentum names giving back some of their gains year to date. as the morning progresses, they are coming back from session lows i believe docusign may have turned positive. down more than 15% since monday,

those shares have tripled year to date. just remember the companies are heading into earning season. investors perhaps tempering expectations a bit ahead of that back to you guys >> thank you speaking of cloud and software stocks, provider of software institutions is set today back to you at the nasdaq. we are joined by the ceo good morning >> good morning. thank you for having us. >> great to have you we just got some earnings from banks and puts and takes, they are doing some good business while other business is suffering. for somebody like you that provides cloud services for financial institutions, how is it been weathering this pandemic >> we've done fantastic through the pandemic and helped our banks to drive over 50 billion

dollar to small businesses to the program. we also assisted in the uk to be the largest lender in that program. we, as a company, truly can optimize and drive that level of proficiency needed in these times and proud of the flexibility of the software and how we can scale from the largest banks which gives us community banks access to the do i understand -- kind of technology only accessible to big banks. >> i know you stated in your s1, that some of your contracts have an option where the customer can buy it out for a termination fee. it seems to me like a downturn like this would be the time when you would see a spike in terminations if it's going to happen has that happened? >> no. we have seen no cancel lags like that we have seen a spike in uptake

because people have to work from home now they need flexibility and approve loans on their iphone, tablets, et cetera it's allowing our banks to continue on without any interruptions. banks have not moved to the cloud and have to cycle people through offices. i'm extremely optimistic we are many the trend whether it's regulation we address the four pillars banks need, refr knvenue increa, compliance this is the trend of the future. >> where do you see your growth coming from? we see your list of clients. a big range there in terms of big and small banks. do you see more growth in terms of the smaller banks do you see yourself added more different services to your software packages? >> yes we have two main growth levers

that we look at all time we are busy international expansion. we have a great office in lon n london one of the major instans to international expansion and the thing about cloud, we can get in there and out the box. we get over 100 languages, over 100 currencies and the full entitlement engine we have launched our retail and small business solutions and we are seeing uptake on that. it's never been done before. >> you are located, your headquarters is in wilmington. north carolina does have the

research triangle. i wonder how it will affect businesses like yours. your talent is more approachable by companies that otherwise would have looked in other bigger metropolitan areas for talent >> that's interesting. >> we had around 250 people out of 10,000 applications we don't see any problem >> okay. can you give us a flavor for the interest you saw leading up to

today. >> i will tell you i think this whole cloud wave -- >> sorry got to interrupt you not sure if you're watching this the stock opened at 72 -- it's just over $71 a share. it's at a rise more than 100%. >> that's very exciting for our employees now. we got fantastic feedback. it should be quick and easy on dwrour phone and the bank employees should have that same flexibility. >> yeah, at the very least, it's going to be a bit easier to get people's attention with your

stock up at this moment more than 140% as it opens. thank you. >> thank you so much >> congratulations john, there's been a couple of constructive headlines. pe lohse saying she will delay august recess. goldman tomorrow julia, thanks for the help let's get to the half. thank you. i have a feeling he just became very wealthy welcome to him and his team. i'm brian in for scott new worries about loan losses and oh, yeah, some big losses overall for the first time in a decade but not all financials are treated equal. we will go inside and find the good and the bad technology, one of your worst performers on this tuesday we hav