>> lance fritz, thank you for joining us on the heels of those earnings today >> thank you very much >> carl, back to you >> david, morgan, we'll see you later. good thursday morning, everybody. i'm carl with jon and deidre. staples and utilities are the only sectors that are green. covid cases now surpass $4 million in the u.s., rising by $1 million in just 16 days and job less claims up for the first time since march did not help. >> that didn't help and we have microsoft earnings last night. that stock is down a little less than 2% this morning let's take a look at why a solid quarter for microsoft. overall revenue growing anderro 13%.

the company's intelligent cloud bids that including azure, windows, posted $13.4 billion in revenue. that beats consensus by a bit. azure slowing up a bit. ceo had a question about that and the company's growth on last night's call asked whether or not he is concerned about it >> my own approach to this would be not to worry as much about short-term whether or not it is the growth number, i'm not trying to match an artificial number i think the world will come out

of this and it will be stronger when we invest in this space >>. >> an ad spending slow down, and they closed that acquisition four years ago right now the gaming business had record engagement. people stayed home and they played they call it'd a breakthrough quarter for gaming, guys >> yeah, xbox and surface two were nice surprises. the other big earnings move in tech is twitter. let's get to julia boorstin on that >> yeah, twitter grew, growing their monetizing value from the year earlier quarter the addition of $20 far exceeded expectations and the addition of seven million new users and

revenue declined more than expected following 19% from a year earlier quarter twitter suffering from a broad pullback in advertising in the fact that it is more reliant on brand advertising that responds more to direct ads and twitter says they're not working to build a business there now as for the boycott that started with facebook over hate speech, on that platform, and then expanded for many companies to twitter, here is what jack dorsey had to say. >> we want to make sure that we're operating under a principal of show, don't tell. and it really speaks to our actions and how we demonstrate our commitment to protecting the service. we were the first to ban political ads. political reach should be earned, not paid for we were the first to have

policies on high profile tweets from leaders >> they also say they're in the this they are talking about looking in a number of ways to create new revenue streams, look at twitter shares up 6% on this morning's results. >> an interesting contrast to what we saw with snap. carl, when you look at the daily active users, that looked good, but the revenue did not. they're seeing a growth in this. and it is trying to take the

longer view that there is engagement with the product and eventually the business overall will. >> wendy: with gdp will come back down >> down only 15 in the last few weeks of june. we'll talk more about that but clearly it remains to be seen if he will go to any of the hearings in the meantime, guys, tesla is the next team to watch revenue ahead, free cash flow, better than expected, musk did talk about profitability >> we need to not go bankrupt. that is important, but we're not trying to be super profitable either you know profitability is like

1% or something like that. 1% or 2% it's not crazy so, we want to be profitable, i think we want to be slightly profitable and maximize growth and make the cars as affordable as possible. that's what we're trying to achieve. >> let's break down the quarter with ibrihim, good to see you. >> thanks for having me again. >> so the general tone today is that you have to give him a lot of credit for stabilizing p producti production they thought fast and continued to innovate, but that credit sales are not how you want to qualify for s&p inclusion. is there too much emphasis on that point >> yes, there is and my over arching thesis in my private and public holdings is that consumer

wills be voting with their dollars from now on. they're digital natives. they grew up connected and understand the interconnectivit of everything, and i'm very bullish. so with that said, you know, tesla has done an excellent job. they eliminated the dealer model. they created the super charged network. they did a stupendous job. is it worth $1600 a share? that is only possible when you have the market flooded with retail investors who are first time investors on platforms like robinhood treating tesla like it is a technology stock and not a manufacturing stock. if you look at the margins, the incremental low cost margins, they have, if they're performing perfectly, 25% margins which is

more in line with manufacturing. so i think that the stock is through the roof, mostly because of first time investors who are excited about the brand. it iswarranted but not to this degree. >> a lot of the investors would argue it is not an oem we have been waiting for years to earn a traditional multiple they would say this is an iphone you download updates for. >> that is a great point that goes back to my original point when you're on microsoft or google, they make incremental revenue when these first time

investors, and that happens with all of us. they have to make a bet on the future is it car ownership or that transportation is a service. i'm betting on the latter. we're all home, working out of our homes, and transportation is less important once the uber and lyfts of the world transfer to autonomous vehicles, it will be a higher cost for a ride if it costs me $2, and a robot will show up at the click of a button, autonomously. why would i go through all of the nightmares of owning very expensive assets it makes so sense for the

future >> good morning, it is deidre, that point is taken well, but in a post covid world does the appeal of car ownership go up? what if tesla is not even a play as some of the bulls argue that cars are just the first wave and that tesla is really a bet on decarb decarbonization. on those terms could it be trading worth a $300 billion company? >> yes, we will use them as battery backups, you know? all of that is going to happen but when you factor all of that in and you're betting on a price today that reflects 15 years from now earnings, there is too many stars that have to be aligned for them to justify.

i'm not saying that the tesla model is not a great one, it is stellar and they will be a massive company and they will branch out into other verticals. my home right now being constructed up in the hills of los angeles is going to have a tesla battery and a tesla solar panels, and two tesla's in the driveway, that's great and i'm a small percentage of the market and i have a personal rip wi relationship with the company. that does not justify a $300 billion valuation today, maybe 15 years from now. >> good morning, it's john tesla is $1600 a share right now and he said it was expensive at $700 a couple months ago you don't have to be anti-tesla to think it is expensive

are there other stocks that you can buy that are not as expensively priced and that are perhaps a better value what would those be? >> great question. first let me identify something that the market has not talked a lot about. the price to sales ratio the price to sales ratio is now higher than alphabet and facebook and approaching mic microsoft. other stocks that are, you know, there is a lot of private companies unfortunately that are going to be going public that will help in the electrify indication -- ele electrification of the future. >> give us a few names. >> there is sonovo it is self serving for me to

talk about, but it takes all of our garbage, industrial waste, commercial waste, and it keeps those molecules in perpetual motion, turning them into energy and other products so none of stl them have to go into the atmosphere ever again. everything that we throw away, and the average american consumer is responsible for about five pounds of garbage per person per day it will be reaching about three pounds per person per day. we're going to be buried in all of that waste. and this company is turning that into energy, biofuels, and plastic. the only solution i have found to real recycling. imagine that world where our planes are powered by our garbage. our electricity grid is powered by our gargarbage. that's the future we're moving

into finally just to push back on the robinhood narrative, it is an institutional holding it's not pets.com. they would certainly argue that, and what kind of a draw down in the price would make you interested in buying fresh shares >> excuse me -- >> do you need to get that >> so, i'm 100% conceding that this trend of ibrihim, i think we last your audio on that we hope to have you back a good conversation and a good way to start the conversation. guys carl, that happened to me as well you get a call and your audio doesn't come back. after the break, still another earnings mover to get to the stock falls by more than 7%

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welcome back, a surge in demand for work from home technology is still a high need, at the same time trading about where it was a week ago and it had a strong year. david henshaw is joining us now

on another exclusive, good morning. >> good morning. >> we just heard from you and we talk about microsoft seeing a demand for remote work tools at the same time you're seeing a continued shift toward your subscription model give us an assessment on how the conditions are affecting your business >> yeah, we're going to a subscription revenue basis now we're up 54% year on year. those numbers are looking great and it is flowing through the rest of the pml and as you mentioned ahead of the q 2 and the broader expectations for the full year. >> are there bottlenecks in a you're having to work out in your ability to supply the demand right now are there customers who want to

move more quickly than they did in the past. what's the opportunity and challenge. >> the great thing is our digital workspace is built on public cloud platform. mic microsoft, azure, and we can scale rapidly if we require that you take a big step back to think about this great work from home experiment and i think the change that everyone is realizing is that remote work is in fact work 40% of the workforce is working remotely and generating 60% of the output in the country and the benefits that leadership is seeing is a reduction in costs it allowed them to rethink work on a much more protracted blasis i think that is great for us

>> david, good morning, you have been a greet work from home play, shares are up 40% year to date, i wonder a question for you and many of the steps that have gone up this year is how sustainable is it and how much of your current growth is pulled forward. what is your outlook whether or not the lockdowns are lifted and if the economy continues to rehope >> i think it opened minds to the benefit of remote work, not just productivity but the idea that you can reduce costs in travel, trade shows, et cetera it is great from a business and personal standpoint. now the tooth paste is out of the tube and it will be hard to go back. there has been a lot of research in the area and most businesses now are pointing to a hybrid

work model that look more like one to three days of remote work per week and then they leverage their physical infrastructure for the activities performed in person i think the hybrid model is customers that land on a going forward basis? >> are you saying it is sustainable? i think some analysts are on the conservative side? >> we have done well in the first half of the year we significantly outperformed expectations and we increased our expectations for the back half of the year i think it is important to be relatively proven given the economic dislocation so of course we're being truth a -- prudent and realistic.

we're kon we're continuing to do large scale, and it points to the important of continuity >> what are the differences that you're seeing geographically how are they responding to this? how is their work from home demand emerging connecting to their broadband penetration. is there areas of larger opportunity for you? >> think we're certainly seeing it globally. you will see a big spike in the first quarter that corn respores to the way we we act it is getting a little more steady it has been a little more general up and to the right.

growth outpacing the u.s. as some of them get into the hybrid mode the u.s. is still stuck in the single motive of working from home >> and finally what is happening with your wfs? are you hiring laying off or tripping are you rebalancing? what is the status >> we're expanding and investing in this period of time our results have been quite strong but we're using this as an opportunity to really focus not just our partnerships as well as customer kmesuccess in e long term. we have increases investment across the board >> that sounds like good news. the ceo and president at citrix, thank you. >> thank you >> take a look at shares of chipotle, a beat on the top and the bottom a smaller loss than expected,

but it has not been enough to keep shares in the green this morning. we'll ask the ceo about those results later this afternoon when he joins the show exclusively just after 1:00 p.m. eastern. don't miss that. squawk alley returns in just a few minutes.

welcome back, everybody. here is your cnbc news update at this hour. florida reporting another surge in deaths from covid-19. a record 173 lives were lost since yesterday. new confirmed cases are also rising again with more than 10,200 added in just the last day. three out of four americans support requiring face coverings in public. that is according to a new poll from the "associated press." and the luxury homes of convicted sex offender jeffrey ep ste epstein are up for sales one is listed for $88 million, another for $22 million.

they will set up a compensation fund for alleged vtiicms for my mother my father my grandmother my brothers and sisters my friends for going back to school the bbq the lake the beach my place for my neighbors my community my people my country my home for him for her for them for you. ♪

companies are on a hiring spree. seema moody has that story >> jobs up 55% since june when the conversations of racial tensions really took center stage. a review shows illumina and levi strauss are among those looking for hiring diversity heads turnover is high and they're often under paid data from glass door show that people maybe $170,000 and that

is less than other folks in the c suite. >> it is looked at as overhead and not a strategic position >> and many ceo's don't have a seat in the boardroom. and a leading network of cr inclusion officers >> for an officer to be successful they have to understand the business. they have to understand the strategy they have to craft a strategy that aligns with the business and they need to partner with leaders across the firm. they also need to partner with the board so the board can help to drive this across the firm. >> a lot of room for improvement. a year ago they unveiled a

possible showing there must be at least two candidates in every board room >> i wonder if this is being shoe horned in because you already have a chro, chief human resources officer. sometimes they are under that, sometimes they report to the ceo, but it doesn't seem to have a really clear place or mission. >> and we did interview a number of former officers, and they said the same, they many times lack that communication. they're giving a lot of kastask, but cannot enact change. >> on that point, john as you say they seem to be shoe horned in sometimes, when i look at private companies it feels like chief diversity officers are put in once a public is already

company, but when they stay frooi private for longer that could take longer. was there any information on the private market and the private companies? >> that will be one area to catch. goldman sachs made it a policy that the companies they take public must have racial or gender diversity on the board of the company they take public perhaps that will change going forward. so clearly there is a lot of room for growth here as we look at the diversity, not just at the entry level but the board level as well. >> all right, thank you. after the break -- >> we're at record high levels of debt. both domestically and internationally. we have five companies sucking up up all of the oxygen. not just economically but politically.

and i think there is a a desire to break em up >> would you break them up >> yeah. >> okay. one of the top 100 venture capitalists in the world acourting to "new york times" wiighs in on those next, geoff les formally of founders fund, will join us after this break.

silicon valley is split on a big question they're calling for a crack down on big tech's power. our next zeguest is a fellow

venture capitalist jeff, good morning and thank you for joining us you didn't just disagree, you said that you could not disagree more strongly with those comments, tell us why. >> good to be here i very strongly disagree, the idea of breaking up the big four tech companies facebook, apple, amazon, and google i think that is a terrible idea for consumers and it doesn't solve any of the under lying problems that folks have and most importantly anti-trust. breaking up companies. it was meant to address one specific issue and that was the issue of competition and breaking the companies up it did not address that nor did they do anything anticompetitive. so i quite strongly disagreen.

>> if you think it is a issue, and that is related dominance, e solution europe has been very forward thinking, very vocal, but they have essentially given out fines that amounted to speeding tickets and it has not really changed anything >> i think that is a fair point. i think the reality is that the anti-trust laws are outdated and broken they were built around an industrial economy and the way to protect consumers today in an information technology is different. i would say our laws are very outdated i'm, in fact, the anti-trust laws that break up the companies, break up with google, for example, it is quick likely

that rather than driving prices down for consumers it would drive prices up. it is possible that google would have to monetize something like gmailaggressively. so i definitely don't think that the anti-trust laws today accuracy the issues that they're intended to. i think in terms of privacy i think that is a very real issue. if you look at the antitrust law it's is not meant to address privacy. i think we need sweeping laegs here if is very unclear that that is what the power tigss want to work on. that doesn't get them the sound bites. you need something that pull ngs with hyper personal data and drop things that are less

important. >> jeff, good morning, it is john, what kind of new antitrust and frame work do we need? >> i'm not a legislature, but -- >> that might make you more qualified on the kinds of laws we need. i'm not asking you to craft it here, but what should the back -- impact or the concept be >> i think the reality is that the big four companies have grown so much that they represent very large swath of the economy today. if you invested in the fang eight or nine years ago you would be up 8x so the public certainly had access to invest in that growth story, but these are huge

companies. i think we need legislation around privacy that puts the users in control and quite honestly i think we should be looking a lot more closely at china. things like tic took, and theik energy there, and i think that is a biggest threat than facebook having so much power. >> is there any level at least on some of these companies, any size that you would argue is too big or runs afoul? >> from what i have seen, and i don't spend my days researching what they do, but from what i have seen they have not violated any laws so the reason these companies are so big is because they look for innovative products, and from everything that i have teen

-- seen it has been within the letter of the law. google has the most power, so i think i'm most skeptical of them that would be what i would take more of a look at, but you can't break up tech companies for being big. that's not the intention you have to have engaged in anticompetitive behavior and i have not seen any evidence that that is happening with these companies. >> jeff, i want to switch gears a little bit and ask you about special acquisition purpose companies that have taken off and provided new paths to the public market. just yesterday air bnb ceo said it wasn't off of the table for them what do you make of the trend and the idea that disclosure could take a back seat if companies go this route? >> sure, i don't believe in the trend. i think there could be one off

stocks going forward that might be quite successful. you have an asset that appears to, you know, to the investment banking industry, many of the folks that would be investing, and then there is a group of investors that have a contraria belief, i think air bnb has been a company that has been extremely hard hit by coronavirus but if you look ahead travel will evolve in a direction of it's very beneficial to air bnb. so at least me personally i don't want to have to ride an elevator up or be in a crowded

hotel and interact with hundreds of thousands of guests i want to stay in a private place to avoid catching the coronavirus. i think air bnb has liquid inventory that ho tetels don't so i'm bullish in them so i think we're just in a kr crazed mania of stocks right now and i would be very careful about getting involved in a spat >> fair enough, but you were an early investor in lyft and that was a difficult ipo that had a difficult time sense then. perhaps the ride sharing companies would have been better off if they went that route? >> the company basically priced the ipo pretty close to

perfection from my vantage point, i invest in these companies before they go public. i invested in lyft many, many years before it went public. and the purpose of the ipo was to raise money for the company so in lyft's case there was not a huge pot as a retail investor i think if you look historically to the most recent stocks, a few others, they have had pretty good pots. so if you're a day trader and you want to play around with stocks, do so and you might get a good pop from the vantage point of a company with an early investor i don't think you want a huge pop on the ipo, you want one that raises the right amount of capital an the best price. i would argue that lyft was successful >> jeff, i want to ask you about

your investments and how those companies are weathering this difficult period the athletic is one that is a bedrock and at a time with no sports that has to be a challenge. are you continuing to fund or encourage these companies to stay at a steady state are they having to cut what do you see happening across different types of companies >> sure, athletics is tracking excellent. extremely positive on that company long term. obviously as you know sports are restarting right around the corner we're quite optimistic that that company has a really bright future many years of cash in the bank to fund operations some of the companies have to cut staff and that is always extremely difficult when you have to do that just given the

changing environment they have tried to be really generous i tried to be really thoughtful about how to cut those, but overall the place in the economy that it wants to be is in the very early stage private technology companies "t the athletic was found in 2016. we invested in 2018 and it was many, many years to go before a company like that would look for that kind of liquidity that is the part of the economy you want to be in. the early stage technological growth type of arena it is jars to be in a world where you go to a grocery store and everyone is wearing masks and face shields and the public and private markets are soring. but i like hiding out in the very early stage investors

>> if you are going to get access to it, jeff, thank you for being with us today. hope to talk to you again soon >> my pleasure thank you. >> we're going to talk to scott boras about that and what mlb needs to do to pverent the spread of covid this season. after a break. 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.

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baseball is back tonight with a shortened season. dozens of safety protocols no fans. players can't spit here to talk about that and a lot more is baseball's most powerful agent, scott boris. welcome back it's a good day. >> it is we're all really excited i know the players i represent

have been waiting a long time for this day we're all very excited >> i remember a couple of months ago when the koreans were starting to roll out their own protocols. we thought we'll see if they can make this work your general view is korea, japan, taiwan have created a pretty reliable play book here >> i think so. i think our protocols are more advanced our testing is more extreme. our protocols are more defined and disciplined. i think anything that is involved with a testing process you'll have a rate of false positives but overall, i think baseball players were very steadfast about their preparation. we came in and really had a 1% positive when we started that was real great sign that we were going to be about to

effectually operate a league >> you say baseball is a socially distanced sport unlike basketball and football. does that mean you personally are less confident in what the nba or nfl may do? >> well, i can't really address it other than the fact that certainly when you have in basketball that you have the nature of the game and you are really competitively interacting and breathing and exercise in the performance of the sport where the transfer of droplet -- the isolation of the league sg far more important in baseball they are playing indoors. baseball is an outdoor sport distanced. i think it's certainly, from what we have seen, we have a

clearer opportunity for success. not to say that if every one is isolated in the nba and such that they cannot carry this out. i'm very hopeful for it. >> scott, you're putting rigorous testing in place, the proper precautions can't help but note that basketball and hockey are playing in bubbles where baseball will be traveling amid the pandemic does it point to larger issue that player safety is a negotiation rather than a given? how does it factor in when making these deals >> i think every player understood the concept of the league in asia they have been traveling be p t the procedures of leaving the ballpark, traveling, the

isolation from the general population is an important protocol that they have carried out and had great success with it the points of light were made aware to every player and every player had to make their own personal decision. overall i feel that having an operational protocol to look at helped a lot of players understand the relative risk factors and what consideration they would make in making their decisions. >> good morning. my understanding is you have a 60-game season players are being paid less than in 162 game season not every league and every sport, players aren't willing to take pay cut what's your take on what's fair in this kind of situation? >> every player i represent feel we should have played 110-game

season and could are done that this is a collectively bargained dynamic. players are taking around a 65% salary cut to play this season i think it was clear every player felt it was important to play for the fans and major league baseball. they made that sacrifice it's something that i felt players considered the betterment of the game in doing so also, the requirement that players miss the game. they want the play they love the game this is what they do while the season is unusual, the course is like a college season. they are out performing and competing and many in ways it allows them the preparation base for the 21 season which was very important for their considerations >> we had a lot of discussions

about ppp money. you had some entities show up on the disclosure list. was that a good use of your time and effort and what did it do for boris? >> we're small businesses and i know we represent nearly 100 major remain active and we have 140 employees. we made them throughout the process. kept them working for players in doing what they are doing in bargaining and all the medical education stuff we had to do keep their clients represented appropriately. these were necessary and heldpfl event. >> with the sound effects, the fans, the cut outs, is it going to be weird or are we going to adapt to that?

>> i think the main product you're going to see players that you recognize and the greatest players in the world what goes on in the stands and around that, i think will be different but the reality of it is that, you know, while the issue is the cake is the same, the frosting may be a little different. >> scott, we can't wait for tonight. thanks so much scott boris. have a good one. let's get to the judge >> thank you appreciate it. thank you. to "the halftime report. a stunning call on apple why one major wall street firm says to avoid it we'll debate that today. tiffany is the ceo of momentum and iz