the false negative rates are tracking 25 to 35% which means one in three are coming back telling you you're safe when you're not with saliva, that number is less than 1%, and it's really because of the administration. you're able to put a lot of media into this tube that's what we're very concerned about in america, and i think if people are positive, we want to get retested and if people are positive one time, they might want to get another test to make sure they're not sick ongoing. this is the thing we have to keep working with each other, and we've got to find ways to get the costs of testing down. this is not sustainable if everybody doesn't have access to it. >> certainly the early days of testing in this pandemic have been checkered, so we're rooting for companies like yours jason, thanks for the information. good to see you. >> good to see you, too. thanks for the time. >> jason feldman with vault. good tuesday morning, welcome to squawk alley interesting market section,

leaning on big cap tech. once again ass an anchor s&p 500 first time since february, microsoft, tiktok in the news schumer says the democrats in the white house have started to move a little closer on a stimulus agreement, and of course david disney tonight, which will give us all kinds of information about the progress of parks, studio entertainment, advertising and more as we have said many times over the last few months, disney in some ways a reflection of the economy, certainly the consumer side of it to some extent. i know julia is going to be following that closely after the bell expectations can't be particularly high but we are looking for a lot more data when it comes to the parks and the attendance, when it comes to direct-to-consumer of course with disney plus and the exhibition of motion pictures, which is not something that's going on right now. >> absolutely, david, i mean, i think it will be really interesting to get some more insight into the success of that

streaming business, especially in light of netflix's earnings, you know, showing that subscriber growth, but i think the real question here, is this a tale of two different types of stocks we have seen this massive tech rally. apple shares up 15% since those earnings last week, and then you have disney, which is in some ways really trying to transition to being a direct-to-consumer company and also is stuck with these legacy businesses, which are struggling right now, like the theme parks as well as the movie business certainly something we're going to continue talking about, david. let's finish the market conversation with tony sakanaki. thank you for joining us this morning. i mentioned apple shares up 15% since earnings last week, are investors buying apple in its fundamentals or riding this tech wave >> i think a little bit of both, investors are saying this is an improved company, we're in a

downturn, it's not an eye zone cycle and earnings are going to grow 10%, and services, gross profits worth 39% of total company gross profits and so i think investors are saying this is a better company, a different company we can pay more for. i also think they're saying look, you want to ride your winners in this marketplace. apple has a forthcoming product cycle. it typically does well in advance of product offerings some investors are saying this is a different company, i'm willing to pay more. additionally, investors are anticipating strong earnings going forward, and at this time of the cycle the stock typically does well. >> now, in terms of that iphone cycle, this is a very different fall than apple usually has when it introduces its new phones not only are the phones delayed but many more people will be at

home do you think the iphone cycle is going to look fundamentally different? we think it can be a strong cycle for a few different reasons. the first one is if we look at iphone unit sales over the last two years, they have been relatively weak, we estimate under 200 million. in the preceding four years, app apple was averaging 220 million phones per year. we have been below trend, and we think there's pent up demand associated with that the second is more just of a m timing issue, which is apple typically releases the phones at the end of september, and gets a bit of a surge that's the end of the fiscal year those are going to be released in october, and that's when apple's next fiscal year starts so we're going to have an even stronger start to the fiscal year and then the third thing i think as you mentioned, people are at home, and i think the hierarchy of needs today is shelter, food and iphone and, you know, people are spending time at home.

they need devices. there's been widespread, you know, evidence of increased spending on personal electronics and apple is likely to benefit from that as well. >> our household is definitely one that has been spending more on personal electronics. a question about the services business this is one area that did not exceed expectations. where do you see that services business going, on the new work from home, school from home, period in the fall starts up again. >> yeah, the services business is now about a $50 billion business for apple it's over 20% of the company's revenues, but it's really a collection of many different businesses it's apple music, it's app store,commissions that they ge from selling apps on the app store. it's licensing revenue that they receive from google because google is the default search engine on ios. it's apple care, and so it's a

really diverse set of businesses it's recently install base driven, and when something is install base driven, it doesn't have as much as a transactional element. you're not going to see the big highs, and the big lows like you do on iphone sales, and that's part of the reason why you didn't see a beat this quarter on the transactional businesses, demand was better than the street had forecast. the service business is more install based driven it's a diversified portfolio, it came in line with expectations we believe this business can continue to grow at double digits for the next several years. >> tony, it's david. you know, a broad question here, if i might we were speaking in the last hour to david katz, a long time value investor, and questioning multiples. i believe you downgraded tesla based on valuation what kind of conversations are you having with clients in terms of how you look at things and whether there's anything to be

gained by downgrading on valuation, when it seems it doesn't matter given how much momentum is behind these names. >> sure. david, i think you raise, you know, a couple of interesting points one is more broadly, the kinds of conversations we're having with investors are, you know, when is tech overdone. tech is out performed now seven years in a row this would be the 8th year it's dramatically outperformed this year, and we are seeing multiples, particularly for growth tech stocks at very elevated levels versus history, and so i think investors are struggling with the fact that fundamentals are clearly better for tech but at the same time, valuations are much higher there is increased risk in technology, and i think investors are struggling with that there's also been this big rotation within the market, sort of the largest rotation we have seen in the last 20 years, growth stocks versus value stocks, and that's also a

question specifically around tesla, we just had a disconnect. we believe in many of the attributes and advantages that tesla has, but we were really struggling to justify valuation that was more than $900 a share, so we had a disconnect with our rating, which was a neutral rating and a target price of $900, and we had to bring those in sign. we didn't change our view on tesla. we saw the stock run up an enormous amount and try to be true to valuation approaches and that resulted in an under performed rating. >> yeah, well, it's a lot higher than 900 bucks i mean, do you really believe it's ever going to retreat to a level like that? >> look, i think there are market factors that work, and execution factors that work. we, you know, as i mentioned had an enormous rotation, and out performance by growth oriented stocks and, certainly if we had a rotation away, we could see underperformance from a lot of

growth stocks, and tesla is the poster child for growth. manufacture, expectations are getting heavier and heavier. that's certainly possible, but that expectation is now built into numbers, and the higher the multiple a stock is, the more penalized it might be if it does fall short of expectations tesla could continue to do well, if it ultimately executes and if the market continues to reward growth there's much more risk with the stock at these levels than there was three and six months ago. >> tony, how much of that risk is around these new competitors getting into the market. we have been talking about niccola, how much does that play into your $900 price target? >> not all that much

the eb market, a little over 2 million units per year is going to go up 20 fold over the next 20 years there's lots of room for competition to grow and in parallel with tesla. i think where our valuation is centered is what you have to believe. to get to $900 a share, which is our price target, we have to believe that tesla sells 6 million cars per year in 2030. that's more than the combined size of mercedes and bmw today, and we have to believe it becomes the size of volkswagen, which is the largest car manufacturer by 2050 and we would need to have 10 to 12% margins at tesla so tesla is basically saying we're going to be way more profitable we're going to be a mass market car dpacompany, and we're going be may more profitable than a mass market car company by 2050, and that gets us to a valuation of around $900 a share

that's purely our concern. it's not that, oh, tesla won't be a significant player going forward. it's that the market is baking in tesla being a very large player and having, you know, wildly profitable margins on top of that. >> really putting that $900 in context. we really appreciate you joining us today. >> thanks for having me. we'll take a break here. still to come, he's got the third largest follower count on tiktok digital content creator zach king is going to join us next to talk about you know what in a moment we love our new home. there's so much space. we have a guestroom now. but, we have aunts. you're slouching again, ted. expired, expired... expired. thanks, aunt bonnie. it's a lot of house. i hope you can keep it clean. at least geico makes bundling our home and car insurance easy. which helps us save a lot of money

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the future of tiktok continues to be one of the key stories of the week. joining us to talk about that, the platform and what a ban or a sale might mean for the tiktok community is zach king, a tiktok influencer, currently has the third largest amount of followers on the platform. zach, it's great to have you thanks for being with us today. >> yeah, thanks for having me. >> you're no stranger to how this all works you were already a king on vine, and clearly now on tiktok. let me just start by asking what the community is saying about what may happen to the platform, whether it's a ban or a sale >> yeah, so when the news first broke, you saw a lot of tiktokers, half of them started saying follow me on instagram,

you tube, all these socials, because you don't want all your eggs in one basket for followers. you see people a little confused on why the ban i think a lot of the young generation doesn't understand the idea that there could be security risks and wondering if those are true or if it's for, you know, other reasons. >> if it went to another large cap tech player. microsoft obviously the most obvious example at the moment, would that mean a big migration in terms of content creators >> i think you're going to see, i mean, we love the platform tiktok, it's got so much engagement on it that's where our audiences are, a large portion of them right now, and we hope the best for that platform. if it means going to a company like microsoft to bring that to the u.s. and make it more secure, then that's great. i mean, there's other worries, though, like can you do that transfer and have the management work with such an innovative

company at the moment, which is tiktok, or will that actually be a killer in itself so there's kind of both camps there. >> we're looking at some samples of your work, and anybody who hasn't seen it already, should definitely it's not the typical, you know, kid with their parent dancing on tiktok, you take a lot of care in this stuff. is it your view right now that the technology or the platform allows you to do what you do better than any other platform >> yeah, the algorithm is incredible what it's done is it's levelled the playing field. if you're trying to crack into you tube right now, it's such an impossible game. it's doable but would take so much work. you have tiktok allowing people, i have even had staff members at my studio who have created accounts and gone viral and have several million followers for themselves creating whatever their niche is i think that's the power you have people like kambucha

girl, and that goes viral, and now he's got a whole career out of it, and can transition to other platforms like you tube. so i think the fact that the algorithm picks up a user, sends it out, starts testing it among other people, and if it's good content, it keeps spreading it it's got a different level of viralty than we have ever seen in a platform before. >> julia boar sthere, a questiot transitioning from viralty, and you're also on all of these other platforms. i'm wondering how your experience is on tiktok in terms of making money from these followers, in terms of these other platforms. it seems like that ability to make money is what would be crucial to the long-term success of tiktok. >> you're absolutely right as a creator you have to be able to financially work a brand deal or commercial in there, like you tube has done so well, having a

partner program that pays for ads, and that's incredibly important to the ecosystem whether it was in the conversation with tiktok getting banned if tiktok didn't get monetization in place this year anyway, i think you would start to see a migration from the platform, so it kind of comes at an interesting time where microsoft may be able to back them and help build that creator fund even better than, you know, they have announced now. >> and zach, i know some of your fellow tiktokers have left for a start up called triller, the number one app on the app store, similar to tiktok, same concept. what do you think about the idea of leaving for a start up where you might have more control of the money coming in? >> ultimately all the platforms are a wash in that way to me as a creator, you're not in control of your audience i tell young creators, you have

to come up with other ways to directly engage them, whether it's e-mails or tech services where you can be direct communication to your followers. at some point, what facebook did years ago to make it their business was, we only have access to 1% of our audience, if we post without boosting it or incentivizing that post. even if we have 45 million followers on tiktok, forever, it won't always be a direct to everybody like it is now that's why i'm encouraging the younger creators, mid tier to smaller tier to capitalize and bring their audience, even if it's smaller to a dedicated place where they can talk to them >> hey, zach, it's david faber tiktok may get shut down for the chinese government for lack of a better term, spying on its users. do you have concern about that for yourself and the people following you?

>> i don't have any concerns on that i'm not sure what access they have with the data i would be curious if microsoft bi buys it and they're able to look into that. i'm personally not i'm one of 300 million in the u.s. i don't think they're tracking me specifically, but i think what i have noticed in myself and the younger generation, we don't care as much as privacy, we would rather have open information for people, and technology >> right and again, back to this larger question of where you would go, where do you think you would spend the bulk of your time so to speak in terms of a platform if tiktok were to get shut down? >> well, there's two parts to that there's the creator's time, and the audience time, and the audience attention does have to go somewhere, migrating, disney plus, netflix, hulu or social, and that's going to go to probably you tube attention or

instagram reels they're launching this at the perfect intersection there's a lot of interesting things in the ecosystem for creators i'm mostly going to be bummed because i think the space does need a lot more competition in it both to change the ad rates, to have options for creators, and where they can build their little ecosystems, and so i think that's out of the whole situation, if it gets banned, that will be the biggest bummer is that, you know, we lost a solid competitor in the industry >> right well, speaking of losing solid competitors, i wonder if you are as nostalgic for vine if i am, and if you ask yourself why some of these other ideas that seemed to have so much promise were taken away from us >> what's so interesting about vine was, you know, it was bought out by twitter a few years before it died, and i love the people at microsoft. i just spoke with them on a

virtual event last week with trevor noah, and there are such innovative people there. it is the problem you're going to have, can the management let tiktok, whether microsoft or another tech company, can they bring that in house but allow them to do their magic and what's really working. that's going to be the question. >> yeah, i mean, we talk about that all the time, sort of absorbing different types of assets, keeping the culture in tact, rarely has it been with a public example it's going to be fascinating to watch if it happens. zach, we hope you'll come back great insight into technology that few understood up until a few months ago thanks >> later >> carl, that question could tiktok go the way of vine. more on microsoft's potential acquisition of tiktok. straight ahead, angel investor, jason calcanis weighs in and tells us why the app should be banned stay with us

welcome back, everybody. i'm sue herera here's your cnbc news update at this hour. in north carolina, a tornado spawned by tropical storm isaias levelled a mobile home park destroying at least ten homes and leaving only two standing. meanwhile, isaias is speeding up the eastern sea board at 35 miles per hour it is now approaching philadelphia sustained winds remain at 70 miles per hour just below hurricane strength.

in southern california, authorities say burning soot from a diesel truck likely started the so called apple fire which has now burned more than 26,000 acres and forced evacuations. and three people were shot and one of them was killed at a mansion party in the beverly hills area of los angeles. aerial footage shows dozens of people celebrating without masks or social distancing for that matter police did not break up the party, but they did issue parking tickets to cars lined up outside the mansion. you are up to date that's the news update this hour carl, i'll see you later send it back to you. >> sue, thank you very much. we'll continue our conversation about the future of tiktok with angel investor jason callicanis, when "squawk alley" continues in just a moment - [narrator] at southern new hampshire university,

we're committed to making college more affordable. that's why we're keeping our tuition the same through the year 2021. - [student] i knew snhu was the place for me when i saw how affordable it was. - [narrator] find your degree at snhu.edu.

wii going to keep a close eye on shares of disney after

they trade after the bell, after the close. we will get earnings from the entertainment giant. one key is what does the future look like for the theme parks. they have been opening for a period of time, and julia, somebody who covers the company as closely as you, i don't know to what extent we're going to get a forecast from bob chapek, the ceo, in terms of what he expects next year. do you have any sense? >> disney does not give tradition that will guidance, but usually give a sense of how theme park bookings are looking generally. i think it's interesting that the orlando park just started its reopening in july. we may get a sense of how that's going so far, and how much people are booking sort of near term versus long-term. so carl, it will be really interesting to watch that, as well as those streaming numbers for disney plus. yeah, which continue to be years ahead of schedule as you know julia, i did notice this morning that bemo reiterated disney as a

top pick but i'm not sure, david, what you think is most important. i mean, we know sort of the loss of the cash burn that comes from keeping the parks open at low capacity but it would also be good to get production back up in at least for, you know, get the backlog going for next year, and of course advertising the weakness continues to get reflected in names like google and our own parent last week. >> without a doubt advertising is still an important component. certainly we're going to want to see what's going on at espn, what ratings looks like. what the distributors feel like at this point, whether they want to continue or their subscribers want to continue payinghigh fees for limited sports programming. at least there is sports programming. we know court cutting is occurring at an even more rapid pace it's been accelerating, at least judging from the numbers we have gotten from large cable companies. carl, your point on production is an interesting one.

you do begin to wonder julia, you may have insight on this as to whether there's going to be a large gap in terms of new programs on disney plus, on hbo max, on netflix, amazon prime, you name your provider, but it's a long period of time where there was nothing new in production, and a lot of people have had plenty of time to work through the libraries on all of those platforms. >> certainly productions have been shut down for so long we are starting it see productions up and going again i think it's interesting that netflix has taken the lead, really been in production for several months now, especially in its different places around the world, the fact that netflix is so international, really helping but i think that in terms of, you mentioned production, sports, once people get back to work things are going to change for disney i wonder if they have a sense of sort of the optimism around sports restarting, especially

for espn using sports to hold that bundle together and keeping people from cutting the cord, carl. >> that's a great point. there's so much money on the line, and it shows you why the leagues have been working just overtime to try to make this work despite all the public health risks we'll take a quick break s&p 43 was the high, hanging on to the narrow range, getting to the top end of it. dow's up, nasdaq slipping into the red. be back in just a moment

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the future of tiktok remains an open question this morning, and if you're looking for provocative idea about what the future may hold. let's check with jason calacanis, angel investor, and founder. >> thanks for having me on the program. >> yeah. what do you think happens here >> well, first off, obviously we

need to totally have our heads examined here in america because we literally are taking about kamgucha girl, and this generation is completely soft. they are a generation of snowflakes who care more about their follower accounts than they do about getting s.t.e.m. degrees and building important companies and being entrepreneurs and capitalists. this is a lost generation in ple america and china is laughing at us we care more about our following counts than their care about s.t.e.m. degrees, and starting companies and candidly becoming a superpower we're sitting here on cnbc, and talking about your follower counts and how important that is give me a break. they built a tesla factory in under a year, carl it's ridiculous. >> microsoft might take some issue with our priorities being backwards given what they have built. would they be a good care taker of this platform >> absolutely.

sure microsoft can buy it that's fine. apple should not buy it. axios was talking about apple buying it. apple has no idea how to do content moderation that's a terrible idea because microsoft has dealt with communities, content, and having the bing search engine, they have the ability to deal with scrubbing content, and dealing with those issues. i'm not sure apple has the dna to be able to do this, but, you know, our country has to take a really deep look and understand that china is absolutely going to demolish our country if we don't get our priorities straight, and that's really the bigger issue here is the relationship with china. we're changing the end of movies in america just to make an incremental couple of bucks there. we're allowing them in our app store, and you know, which obviously means that the ccp has complete access to that information. any "new york times" journalist who believes that, like, they're not having the data is completely naive and lost their

minds. of course the chinese government has every piece of information and we're sitting here talking about follower counts while students in hong kong are being arrested and when daryl morey, the greatest mind and basketball in our country stands up for the people of hong kong, he gets admonished by other players and other owners in the nba. it's disgraceful we need to stand for human rights and, we need to realize that if we don't win capitalism, and if we get soft, and this generation of snowflakes cares more about their follower counts than they care about building, world dominating companies we are going to lose to a communist country that is going to have massive power over us. this is a very serious issue, and tiktok is the tip of the sphere. >> jason, we talk about it all the time we talk about it all the time. but the pawn in play. >> i'm mad about the whole dialogue. >> i get it. as are a lot of people, but the pawn in play right now is

tiktok it's unclear to me whether or not you think an outright ban, india, is appropriate or whether it can be used to establish some kind of reciprocity in china itself. >> that's the obvious one, carl. if they're allowed to bring tiktok here, and they're allowed to have access to all of those microphones, location data, and let's not be naive other countries have tracked navy seals and elite law enforcement folks. that's what's at stake here. i know it sounds crazy but do a couple of google searches, what happened with facebook data during the iraq, and afghanistan wars people were being tracked on the systems to be assassinated here: reciprocity, which the chinese government will never do any american that works for tiktok like the guy from disney, what's going to happen to him is what happened to terry semel, yahoo had to worry about

employees going to jail and being tortured, unless they handed over dissents, religious leaders and people who wrote books. this is a massive human rights issue. we should ban it they should not be allowed in stores when it comes to hardware and making cables, maybe it's an easier place to have engagement. we have got somebody in the white house right now who his style of negotiating i don't think is going to do very well in a nuanced situation like that if the pandemic and our reaction to that is any indication, we need to get this guy out of office and have somebody in office who can manage this because this is the existential crisis, not only for america it's an existential crisis for humanity and democracy and freedom. >> jason, it's david faber, i'm not often on the show, so i don't get to listen to you you're all over the place. i mean, by the way, kevin mayer, the ceo of tiktok probably looking for a new job right now.

either he's getting shut down or bought by microsoft. that guy doesn't have a job. i wouldn't worry too much about him. but let me just come back to you on the young people thing, calling them all snowflakes. >> soft. >> you notice the protests that have been unprecedented around the country, and the fact that they have been populated largely by people under the age of 30 who seem to want to absolutely change things. i don't know where you're coming from. >> absolutely fantastic, that, the anti-racism protests occurred that is a good sign for this generation but the weak spot right now is that we are not investing in building great companies this generation does not believe in capitalism. they believe in socialism and we're up against a competitor. we're up against a competitor who believes in capitalism combined with communism. and by the way, that is going to roll over our version of capitalism it's going to roll over our version of capitalism if we're not careful, and i think that we have to take it more seriously,

and we have to really think about what is our relationship going to be because if we don't put human rights at the start of every business discussion with china, then humanity is going to flip, and we're right on the border of more people in this world living under authoritarian control than in democracy. everything in the world is going up and to the right in a great way in terms of life expectancy and poverty going down the one thing that's stalled is people living in democracies, and that is the existential crisis for the second half of our lifetime. >> even with the current state of our democracy, and even with this anti-immigrant fervor that this administration has had, this is still the place you probably want to come to start a business it's still probably the place you want to try to come to get educated if you can get in you're not going to china. >> no, but you're going to canada or you're staying in china or you're staying in india because we have decided this our immigration policy is not going to be based upon how likely you

are to create the next tesla and spacex or become the ceo of microsoft or google. we're basing it on, i don't know what, some political partisan, you know, trying to go to people's most base instinct and fear that people are going to steal their jobs we need to have a point based system, like canada, like the scandinavian countries and like australia. it's a simple system how much value are you going to provide to this society in terms of your advanced degrees, and as that goes up, your cans chances of going in go up. we have some amount of slots for dissidence that's a very important point. this is a multi-facetted discussion we have to, first of all, let these really intelligent people into the country and we have to have them want to come here. they're not going to want to come here if the goal of this country is to trend on tiktok. our goal needs to be to change

the world by getting to the moon first. we need to build great high paying jobs. we need to stop vilifying capitalism, stop vilifying entrepreneurs. sure, there is a wealth discrepancy in this country. we're not running over our citizens with tanks like china did in tiananmen square. we're not torturing book sellers like china did in hong kong. this is an authoritarian country with a ruler for life. wake up, people. this is going to be the existential crisis for humanity that is probably more acute right now than even global warming. >> jason, julia boorstin here, i want to shift gears from the education crisis you're talking about and shift to a different kind of education crisis i'm also here in california. my kids are also not going to be

going back to a physical school in the fall. >> brutal. >> and you drew a lot of criticism for your decision to tweet out that you're creating a micro school and trying to hire a teacher. why did you decide to put this out on twitter >> well, because every person out there is doing it. i mean, we're seeing every family discussing what are we going to do with our kids in september because all due respect to zoom, which, by the way, i think has handled their china issue very well in terms of getting their servers out of china, and really addressing that issue seriously i do give them some credit for that, but we are absolutely pathetic that we couldn't shut down bars and churches, et cetera for 60 days and let our kids go back to school i think this is going to continue what i think parents should do is create pods, and i didn't come up with this, pandemic pods has been trending for a cup of months now basically hire somebody who is out of work for whatever amount of money, chop it up between

five, six, seven parents and have a pod in your backyard or open air place if the weather allows for it or a smaller pod and get tested regularly and have all of those teachers be b employed i'm trying to find a teacher, who can handle four to seven students in my backyard, we're lucky enough to be in southern california, which is basically 65 degrees every day we'll have somebody here so that mom and dad can go to work, and this is what we should be spending the stimulus money on, and by the way, i'm infuriated as well, today in general, with everything because the fact that our government cannot pass the second damn stimulus bill, sorry for my anger how dear them go on vacation without solving this problem for parents and people who are suffering and getting some

unemployment or stimulus hire a person who's a retired educator and educate your kids if you can do that, and i think micro schools and pods, they might stick with us post pandemic, because i think it's not a bad model. >> jason, i'm sure it seems easy to do in northern california but i don't need to tell you that the argument that it's the pinnacle of privilege to do this plays with a lot of people this is not something most americans can do >> i don't know if that's correct, carl. i mean, if you hired a college student for 15, 20 bucks an hour who's out of work right now, and we have 10, 20 million americans available, and six families, you know, chop up five hours at $15 an hour, $75, 10 bucks day, 20 bucks aday each. i think it's available to all americans. if you're talking about hiring a 60, $70,000 teacher for one student, that's privilege. i'm going to pay for the bill of this, and invite three or four

families who can't afford it to hang out in our backyard until hopefully we solve this pandemic i don't know, i did the numbers and it seems to me, teachers are highly under paid in this country, the average salary seemed to be 45 to $70,000 and if you put 5 to ten kids in your backyard or if you have an office space that's empty, i have a friend in new york who told me they're using their old office space since nobody is allowed to go to work, and they're going to have a giant conference room and the company is going to pay for somebody to come in, and you still have the teacher doing the distance learning but you have somebody in the room with the kids to actually help them learn and take the lessons they did on zoom before we're cutting each other down, anytime somebody comes up with a creative solution, we feel the need to destroy them. we need more entrepreneurial solutions. >> that's what twitter does. >> destroy people, yes >> next time bring a point of view, okay >> yeah, i'm sorry

i'm just, this pandemic has got me on tilt i apologize to everybody that i'm so upset right now we have to solve this pandemic please wear a mask please do not go to bars, young people just for a month or two. >> we're all walking on mental egg shells, jason. we'll talk to you again soon thanks. >> all right guys, thanks. >> jason calacanis >> yeah, carl, jason is not one to mince words. our next guest is one of the biggest gainers in cramer's covid-19 index, up around 80% year to date e ceo is on the other side of this break stay with us t cover everything ...only about 80% of your part b medicare costs.verything a medicare supplement insurance plan may help cover some of the rest. learn how an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company might be the right choice for you. a free decision guide is a great place to start.

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we're keeping our eyes on shares of virgin galatic the shares down about 13%. the company expects to raise approximately $460 million from the offering we'll be right back. stay witus h

ring central has its shares up more than 70% year to date. you can see under a bit of pressure today this after the company reported

better than expected numbers joining us is the founder and ceo. nice to have you with us i want to start off on a relatively new product offering launched at the beginning of april. your ring central video product. entering a field with a number of other competitors what are you seeing there in terms of users and user growth and new applications >> first, thank you for having me super excited about ringcentral. it's relatively new. introduced it two months ago very good adoption we have over 10,000 paying accounts now using ring central. most of ringcentral new customers are getting video and it's secure. it works well. it provides good quality video and it's going to do well in the market could not be more excited about

it >> educational opportunities there given how many schools, unfortunately, will be remote or partially remote are you opening a lot of university and primary school accounts >> huge opportunities in education. huge opportunities in telehealth huge opportunities with first responders in general and certain governmental agencies. as a matter of fact, we are making it available to covid-19 responders for free at no charge it's been well received. it's very early but we think it has a very bright future >> julia here, vlad. i know you have a couple of key partnerships you just announced an expansion. how important are these

partnerships in expanding those partnerships to your future growth >> we're a partner oriented company. our growth is tied to our success with our partners. the latest announcement was that a german company is now going to be using ringcentral exclusively to address their install base of 40 million on premise users. this is now coming on top of a virus. a hundred million strong install base you think about it, out of the entire world base of four to five hundred million traditional pbx users, about a third of those will now be offered ring central based technology as the goal for product as world speculation is moving from on

trend yun fipunified communicat. unified communications as a service where ring central is leading, of course >> we were just looking at a big wall of all of your -- some of your different customers i'm curious as you look towards the second half of this year and towards next year, you know it's pretty diverse range of customers. do you think those customers, those companies will continue to operate remotely for the remainder of this year and how does their plan to either return to the office or continue to operate remotely impact your potential growth >> that's right. we used to say that ringcentral is about empowering people to work from any location, any mode and any device the any location part, at this

point, it's a must have. we don't see an end in sight of course, we seen this changes will be pre-determined because we're all hoping for vaccine and we're all hoping for the world to get back to normal. having said that, i think people have now experienced firsthand that organizations can stay extremely connected and extremely productive, if not more productive by using remote communication tools like ringcentral. we see many customers accelerate their migration to the cloud i think we announced yesterday that we actually had record sign

ups for new businesses as well as very, very strong expansion within our footprint work from anywhere, work from home is simply going to be here to stay for the foreseeable future >> thanks for joining us appreciate it. >> thank you >> remarkable story, guys. basically changing the way we work probably for the rest of our careers in ways that we probably don't yet understand. the fact this technology, which was already there is being used at scale through companies like that pretty amazing interesting session as we get ready for the half this afternoon we'll look for

disney as we have talked act earlier in the hour. we'll get beyond meat. activision will come out with earnings as well we'll continue to watch developments and headlines coming in from this explosion which does seem to have done quite a bit of damage. let's get back to headquarters thank you. welcome to "the halftime report." can anything stop big tech we debate that today with our investment committee let's do what we always do look at where stocks are nasdaq