going on which is the market willing to give high quality companies credit for navigating through this period. companies having a higher floor than perhaps was feared in terms of what the trough earnings were going to look like in the second quarter. of course, massive annual declines in parts of the business for disney, but basically the market is holding up the valuation because financial conditions look good and they have a plan and obviously the growing parts of their business, the newer ones that they're investing in continue to grow faster than people even hoped. so all that stuff working together clearly $150 stock eight months ago. so it's not carving out new ground, but it's definitely more of a glass half full-type story in terms of that response. and that's something that i guess we see across the markets to some degree and julia, i do think also on the cost side, too, disney is seen outperformed what the streak was looking for. >> yeah, absolutely on the cost side i think the investors didn't realize how much they would be

saving in terms of production and marketing costs. of course, the question is sort of how that impacts the question next year when we start to see them ramp up the production again or even second half of this year. but to your point, mike, about digital, i think what really is driving this stock higher today is not just the fact that disney plus is doing so well, hitting 60 million subscribers, four years ahead of the goal of hitting between 60 and 90 million subs so really far better than expected in terms of disney plus but also the fact that the company is really doubling down on digital they're committing to build another digital streaming service, internationally, also talking about this mulan strategy, offering mulan at $30. really interesting to see the company push even further in that direction this at a time when the parks are struggling let's take a closer look at the park segment, taking a $3.5 billion hit due to the

coronavirus. joining us now to discuss that is former design manager at disneyland paris, bill cohen he is currently running itech entertainment the firm's specializing in theme park design and production. now, tell me what did you think about these theme park numbers, $3.5 billion hit to the parks. some talk on the call about how perhaps people were making reservations and then canceling them when there were spikes in cases in florida what did you make of that? >> yeah. i think that's i'm sure disappointing news to them i'm not necessarily speaking for disney don't really know the inside but living in central florida and being in the themed entertainment business, it was probably pretty disappointing that they didn't have the attendance or at least sustain the attendance from the first week or two that they anticipated. so, could have been better news for the theme parks, not only here in orlando but worldwide. >> yeah. there's also this question of half of the visitor base for

orlando comes -- does some travels comes from out of state. >> right. >> what should we make of that and the fact that disney isn't disclosing any specific numbers about capacity where do you think disney is in terms of capacity and how much do you think they'll be able to ramp that up if half of the visitors would be coming from out of state if they were willing to travel. >> yeah. so that's the question really is twofold. whether they have capacity in the parks and they certainly do. the next part of that is are they getting the demand and the attendance that they anticipated. good news and bad news they're getting a chance to ramp up at a pace that allows them to be better operators over time and really understand this challenge of reopening but at the same time, i think they were hoping to see more people come and certainly more people come from not only local, the region, but also from out of state. and maybe that's not been as good as they anticipated >> yeah. certainly seemed to be a lot of

challenges to out of state there were some comments on the call the company saying the research indicates and the booking indicates that they should be in good shape once consumer confidence returns. what do you think we should make of that both in terms of the domestic parks, of course, the park here in california is still closed but also internationally where things might be opening up faster than they are here? >> yeah. i think that's one of the many things that they have to consider they're not only a business that they have to manage and plan and strategize themselves but they are at the mercy sometimes of the local domestic government agencies you know, whether it's the state government, federal government, local county so they don't necessarily have complete control over it and then these spikes that we're experiencing, tend to kind of work against them in the press and in their communications. so, i think the dynamic is still in place that they don't know exactly what's going to happen week to week, month to month, but i

think they are strategizing how to get these things up and running. get them up and running to the point where when the demand comes back, when this kind of settles down a little bit, they'll be ready to go and i'm confident that not only here in florida but eventually california and worldwide this will pick back up once we solve some of these issues >> hey, bill, i wonder how you think seasonality gets sort of turned inside out this year because of the -- because of the pandemic one of the things we were told early on before the parks reopened in florida was mask adherence would be difficult especially in the humidity and the heat obviously that's less of a factor in the winter plus kids will be taking school online potentially. i wonder do you think the fall/winter season could be stronger than we otherwise see >> well, we hope so. i think that this is a seasonal business disney not so much because they kind of achieve capacity most of the year they don't have so many slow

seasons. if they do, they throw in special events to get people to come in. but the normal seasonal cycles for attractions obviously lean heavily on the summer and then the christmas vacations. and that maybe is a little out of whack this time here in central florida and in other places of the world, halloween is a big event time. and we're going to miss that this time. so, i'm sure the hope is that, yes, because the schools maybe are not completely open that they'll see an extended summer season i'm sure they're confident that some of that will take effect, but certainly with the regional audience the people that are traveling, though, are still going to be kind of connected to what their normal school cycles are. and they'll be holidays and kind of weekend travelers, which is not the best news for disney, but at least gives them a running start towards next year. >> yeah. it will be interesting, bill, to see how those visitors spread out. a question for you in terms of

your business. you design theme parks and produce theme park attractions. >> sure. >> how do you see that business changing for this new normal even if there is a vaccine and things start to get back to normal next year, do you think theme park design will be forever changed now that we know that something like this can happen >> yeah, certainly -- listen, i hope it's not the forever normal i really like to see some of this come back we're blessed we have a business that is global in its nature we have clients throughout the world. we are in touch with them everyday, certainly every week so the way our client management techniques are a little different than they would have been a year ago from now and that's because we're trying to stay in touch with these guys and we are the source of information. so, we seem to be connected to a lot of people and a lot of the industry itself. so our clients depend on us to tell them where we kind of think this is going to go. then it also allows us to anticipate our workload hopefully picking up towards the end of the year for new

attractions, but certainly into next year where the pent-up demand and lack of spending, capital spending this year, we hope will pick up in the next year and that we won't miss too much it will just be delayed. i think that's a strategy we see worldwide. it's also happening with disney and universal, the big entertainment company. so we believe at least at this point in the pandemic process our industry is definitely affected, but the strong will survive and we anticipate a lot of this work will return to us next year. we're hopeful, any way >> well, we're glad that you're optimistic, bill thank you so much for talking to us this morning. >> it's a pleasure good to speak with you guys as well meantime, reporting on microsoft tiktok hey, david. >> yeah, carl. you can step back and just imagine the level of complexity that attends the talks between microsoft and bite dance about the potential sale of the u.s.

tiktok business. it's not just two big companies negotiating for transaction involving a unit it involves the u.s. government, national security concerns, keeping the chinese government, at least, somewhat happy as well and then you've got to deal with things like, national security and value. it's so complex. but they are making progress, according to people familiar with the situation and they do hope at least to reach -- and this is a hope again, to reach some sort of potential transaction within the next three weeks. doesn't mean it will happen, but that is certainly something they are targeting at this point as we have been reporting during the course of the morning. a lot of the recent negotiations have been between microsoft bytedance and the u.s. government in terms of trying to get a deadline specific to how long microsoft would have to transfer the voluminous amounts of code, a lot of it artificial intelligence that would need to move from china to the u.s we're not talking about something that could be taken care of in a day or a week

it will take many months to actually move that code. so microsoft has been given, according to people familiar with the situation, one year which it can do that and that is still a very significant task that it faces and one key reason why microsoft is against a small universal company that could have entertained taking on that task, but they will have a year after the close to actually transfer all the code to the u.s. answering, of course, so many of the national security concerns that have resulted in the u.s. saying we are going to ban tiktok unless, unless, it is used to the u.s., that is the u.s. version, of course, of the service. now they're focussed in part on value. doesn't mean that other things won't come in. doesn't mean that president trump won't introduce perhaps things unexpected as he did earlier this week when he talked about key money, something that still many people are trying to figure out exactly what he meant but there would be a u.s. taxpayer that doesn't currently exist in the form of tiktok.

that would be beneficial to the u.s. treasure, one could argue right now value. they're bracketing where the values might be. if you're bytedance at this point. you don't have a lot of leverage you're not having a lot of value in your business unless you can restart in some amount of time or dealing with microsoft to get the best price you can we'll see where that ends up as a business, carl, you know very well, of course, is growing rapidly in the u.s., has 55 million daily average users continuing to go up who spend an enormous amount of time on the platform one key reason why microsoft may well be interested in continuing to pursue this transaction getting to a value, at least, that would accept. back over to you >> right as the clock ticks, david. thank you for that. our next guest is the co-founder of the social phenomenon's vine and hq trivia. russ joins us to talk more about the future of tiktok russ, good to see you.

welcome. >> thank you for having me >> we've talked a long time about the strength of tiktok's algo, the way in which it becomes a cultural force in its communities. how long can they run into these land mines like they have in india and now here >> yeah. i think what we're seeing here is tiktok stumbling as they're trying to expand internationally. if they want to succeed here in the states they need to create a distinctly u.s. brand and bring in u.s. leadership and hopefully this deal with microsoft or another acquirer comes to fruition which i think it will. >> how do you think it answers the concerns of those who were most hawkish in the white house, at least >> look, i love the microsoft and tiktok deal for a few reasons. i think tiktok in america is a good thing we need more competition in tech, not less

and it remains to be seen if tiktok is the right acquirer and if they can actually scale the service reliably and responsibly. but, i'm also very concerned i think here we see how trump can yield his power to drive a more favorable deal for his administration and having influence and leverage like this really early in a deal could mean that tiktok could become trumptok, right this influence over an acquisition could mean influence over how user data is collected by our government and that comes with a lot of potential problems >> rus, julia boar steen here. you said competition is good in this space now speaking of competition, just today facebook's instagram unveiled reels, which is their tiktok-like tool that's going to be part of instagram how do you see that playing into this do you think reels will be a real competitor to tiktok and

could draw people over especially in the midst of all this controversy >> absolutely. i think facebook and instagram have done an incredible job in creating the types of features and functionality that video creators really want tiktok was able to evolve the medium by innovating around the creation tool and bringing lip synching and dance videos to a new generation they've also been able to innovate around distribution with their algorithms, so they can pair creators up with their niche audiences without having people search and hunt for different accounts to follow to develop a follow graph, right? following an account on tiktok isn't really necessary you just browse through the feed and you get content tailored to you. that's incredibly powerful in terms of distribution. they've always been able to innovate around monetization they successfully bring in advertising and virtual gifts

with live streaming. so creators can monetize this way. i think instagram has a challenge on their hands in competing with tiktok around distribution and monetization for creators i'm looking forward to see what comes of it and i'm also excited about new players in the world of social media and video. >> well, rus, how do you think that this evolving competitive setup filters into the conversations and in the price that microsoft might be able to pay for tiktok just because tiktok came so fast in terms of getting to massive scale that you almost wonder if that's a reminder that something else could come along pretty quickly as well. i mean, does tiktok have some kind of a mote there that they can protect? >> i think their mote is frankly pretty weak. there are lots of opportunities for startups in this tech

landscape to build something new, to innovate around creation tools, to innovate around distribution and monetization. so, apps like byte are bringing real competition to tiktok and i'm a huge fan of byte and what the team is doing there. and i think another way to compete here is just by bringing people something that's never been done before so we should expect to see a lot of activity in the competitive landscape here >> rus, i'm curious for your perspective as a ceo of a company that sold to twitter that was part of twitter for a while and ultimately folded in and almost disappeared vine was a really big deal back when twitter bought it and then there's sort of questions about whether it made sense for twitter, whether the corporate ownership -- it didn't sort of push the company to continue to innovate and be its own thing. i'm curious what that makes you think about ownership by microsoft and about what that

could do to innovation and to the relationship with the content creators >> yeah. so i think tiktok will find a really comfortable home with microsoft. and i think the administration will find that microsoft's privacy and data practices will appease them but the question remains around talent will creative engineers, creative designers and product people run to microsoft to work on tiktok? i think given the pandemic there's a lot of ambiguity and uncertainty about job preservation so maybe being part of microsoft is a good thing now days that job security is great and working on an innovative product like tiktok could be appealing but we've seen big corporations

stumble and not really bring that creative innovation that's necessary to keep a service like tiktok thriving. so, i think it will be an interesting next couple of months as this pans out. >> finally, rus, we just showed your tweet from a few days ago where you said i'm feeling a vine comeback. were you just spouting off there? or do you think there's real possibility? >> twitter so, look, i can't say whether vine will or won't come back, but i think we should expect to see a rise in creative experimentation around mobile video and social media broadly i think competitions that can evolve the mobile video creation tools beyond just dancing and lip synching involve content distribution beyond the typical follow model and in monetization, of course, for creators beyond advertising and virtual gifting and live streaming that these competitors

will see success in competing with the big players so, i think it positions twitter very well in this competitive landscape against facebook and potentially microsoft. >> well, vine still has a lot of cult status even in its absence. a lot of us miss it everyday rus, thank you hope you'll come back later and talk about this evolving chapter. thank you, rus yusupov. >> thank you. the ceo of pharmaceuticals first on cnbc as the dow continues a nice gain here back in a minute

welcome back to "squawk alley. we have the ceo of another earnings mover meg? >> mike, thanks so much. and joining us from tvea it's good to see you let's start with the news of the morning. reaffirming the outlook for the year tell us about the impacts you have seen from covid-19 on your business so far and really how you're modelling the year ahead. >> yeah. we are very happy about the performance of the first half. we have shown great resilience in manufacturing and of course we had numerous challenges all over the world, but our manufacturing organization has risen to the task and we have been able to keep on supplying we're the world's biggest supplier of medication we supply around 200 million patients everyday. and the pattern we really saw,

we saw some shifts in demand patterns we had extraordinary high demand in europe in the fourth quarter, basically in march when people started hoarding at the pharmacy level, generic products and so on and then we saw a reversal in the second quarter where during the lockdown people went less to the doctor people went less to the hospital, less to the pharmacy when we look at the whole first half, we see a stabilization of earnings and then because we've been improving our manufacturing and r become more efficient, we have seen improvement in overall earnings so that part looks really good now we're in a phase where nobody really knows where the pandemic is going the next half year what we see is a pattern where europe people tend to go back to doctors, people tend to go back to pharmacies. there's a normalization of the situation. in the u.s. we still see demand being little less than what i would call normal demand and we hope that the volume demand will come back, but we're

planning for both se scenarios, both the scenario where volume demand comes back and also scenario where there will be some maybe 5, 10% less demand in the second half of this year and in both cases we think we know how to operate, how to control our cost and how to ensure that our supply chain remains in tact and we can supply the many millions of patients we supply everyday. >> i want to ask you also about the issue of drug shortages. of course, the pandemic increase demand for certain medicines you know, hydroxychloroquine being one of them listed on the shortages list from teva and other manufacturers. that of course has become a political drug and has not lived up to the hope for being very helpful for covid-19, but it is an important drug for other diseases what can you tell us about your ability to manufacture enough of these drugs that have come under such strain from covid-19 demand >> yeah. so it's a cause of complicated

situation. we saw a lot of drugs where i would call it repurposing was being pursued. so you take an existing drug and then because the pandemic is so serious and severe, you simply dry different drugs to see if they might work. and you have to think about the fact that normally when a drug is developed you have ten years of clinical development that clarifies when and how does the drug work in the best possible way. here people are trying to do this in ten weeks. that's a very difficult task therefore it's been difficult to get clarity on which drugs will work, when will they work and when will the disease progression and are they preventive, should they be used at this point or another point in the disease progression so we've been trying to work with governments and health care systems worldwide. we have been making donations in more than 25 countries and we have been focussing on the drugs that were being asked for and of course that pattern has changed rightly as you said

hydroxychloroquine was in ghaded early on now we see demand but it's less. we try to make sure we allocate products so that all patients who really need it can get it. also, the existing indications in the u.s and as far as i'm aware right now, we don't have a shortage for patients who need it for their normal daily chronic therapies. >> i see i want to ask you also, of course, about an issue that was really front and center, i think, for investors in teva at least before covid-19 happened and that was two large pieces of litigation that the company has been involved in around price fixing for generic drugs and separately around the opioid litigation, just a massive set of trials that have playing out in the u.s and i know that teva has been involved in settlement talks on both fronts. you mentioned on the call that those perhaps have been delayed by covid-19. can you just update us on how those are going and how you see these situations potentially resolving. >> yeah, sure. so if we take the opioid

situation first, then as you remember at the end of last year there was a framework agreement reached basically between the state a.g.s on one side and then j & j the distributors and teva on the other side. and our contribution was a donation over ten years of a very useful drug that can be used to wean people off opioids and we were committing to supply the whole u.s. need for this drug for the next ten years free of charge. a significant value at list price maybe 23, 25 billion and at net price maybe something like 11, 12 billion. so we're still committed to that and we reached a framework agreement with representatives from the a.g.sworking with the to get this all sort of signed, sealed and delivered but there was good progress and we had like a triggering event in the state -- new york state

trial on opioids that was coming up in february but then covid-19 happened and that trial got postponed and in this case, you can imagine that five companies on one side there's a lot of states on the other side, there's a lot of lawyers and plaintiff lawyers involved and they all need to come together to sign on the dotted line so, over the past months, we have been working with the a.g.s on the wording, on how to do the product donations and so on. it's been a good passive spirit in the collaboration, but there hasn't been the real pressure, the event that puts pressure on everybody to finally wrap it up. and i don't think that's going to happen until we see the first major trial being scheduled. right now we don't even know when the new york trial will happen so it's probably going to be unfortunately several months before we see a clarification of this situation which is a shame because it is to the better of the american people, of people suffering from substance abuse that we wrap this up, that we get products

out to people and that we get the financial support to the states so that they can handle this issue the other issue the allegations from d.o.j. on the criminal investigation on price fixing, there we have the precision that all the evidence we looked at in no way indicates that teva in a structured organized way were part of any cartel or were part of any price fixing. we are still in discussions with doj on this. of course it's always nice if it can be resolved in a friendly manner with a settlement, so we're pursuing that. but it could end up that way could also end up with us going to court >> all right a lot of updates there we hope you'll keep us posted. thanks so much for being with us. >> thank you so much >> all right, julia? >> thanks, meg coming up, shopfy competitor big commerce going public on the nasdaq the ceo joins us on the other dodef e ea n't go away.

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♪ welcome back, everybody i'm sue herrera. here is your cnbc news update at this hour. in beirut, officials say at least 100 people died and more than 4,000 were injured in yesterday's massive blast at a warehouse storing explosive material lebanon has declared a two-week state of emergency in beirut and the government has ordered house arrest for anyone involved in managing that warehouse all the

way back to the year 2014. new york city is setting up covid-19 check points at key entry points to enforce the state's quarantine orders. travelers from states on the quarantine list will have to register or face a $2,000 penalty. the university of connecticut has cancelled its 2020 football season because of the pandemic the huskies are the first major college team to do so. you are up to date on a busy news day that's the news update back to you, mike. >> sue, thank you very much. online shopping tech provider big commerce debuting at the nasdaq this morning shares have not yet opened after its ipo was priced last night at $24 per share. that was above the upwardly revised range of 21 to $23 joining us first on cnbc is ceo of bigcommerce brett belm. good to see you. congratulations on the deal and talk a little bit about the business we've been describing it shorthand fashion as being a competitor to shopify, of

course, now $130 billion market cap company. is that an apt description what is the distinctions between what you do in terms of producing online marketplaces and what they do >> yeah. we're bigcommerce is a software platform used by 60,000 businesses around the world to create beautiful, successful ecommerce. we're a software service platform like them, the two biggest in the world, bigcommerce differentiates by having far more enterprise functionality built into it and open and flexible. we allow our customers to configure every part of their ecommerce operations from the platform to payments, point of sale, fulfillment, shipping, marketing, to exactly their business requirements. and so, we end up being a better fit for established companies, complex companies, business to business and business to consumer selling >> so, more established companies. in other words, less likely to be the ideal fit for just an

individual startup that is merely getting going >> interestingly big commerce started as an snb centric platform like them and over time as our customers have grown, so as our focus on serving the mid-market and enterprise segments, including 30 of the forbes global 2,000 largest companies. >> julia boorstin here google, amazon, facebook and instagram and ebay we heard about facebook about how important commerce for these small, and medium size businesses will be for that platform how important is it for you to have the social media piece of it to drive awareness of them trying to do ecommerce >> extremely important bigcommerce has been a partner to facebook and instagram from the beginning of shops and ecommerce on those platforms many of our customers have found

them to be among their most effective marketing channels, whether that is re-engaging existing customers or using their local targeting capabiliti capabilities so we're big fans of what facebook and instagram and social media in general can do for businesses trying to grow. >> brent, it might become a standard question here for companies that do become public in a traditional way, have you considered merging with a special acquisition company, tiger global subscribe for a large portion of the ipo we see the stock soar in the debut and people refer to money left on the table, was that part of your thought process? >> bigcommerce did not consider the spac option. that's best suited to companies who have the capital on the balance sheet that they need we needed to raise money in essence to fuel our global expansion, further product investment and so a traditional ipo was the better route for us.

>> gotch ya. we'll certainly watch it as it opens today, brent, and congratulations again. brent bellm of bigcommerce. >> thanks so much. coming up, online dating getting a boost during the pandemic we'll discuss with the cfo of match group. that's next. stay with us ♪ ♪ ♪ ♪ ♪ ♪ ♪

shares of match group are soaring. that stock up about 12% now after reporting strong growth in profits and revenues with more people turning to dating apps during the pandemic. joining us now is the company's coo and cfo gary swidler gary, thanks so much for joining us today tell us what drove these better expected results when for the most part people weren't really leaving their houses to go out and actually meet people to date >> yeah. that's true. they're not able to meet people as easily. obviously you can't go to a bar or restaurant or even to work or school and meet people right now. so, that's presenting a

challenge for people but they're still yearning to meet people, to get out and socialize. and so, doing it online, doing it by video is the next best thing and people are doing that across the world right now and that's helping our business. >> gary, i know the introduction of video chat is a relatively new thing and also seemed to be very successful. how much do you think the use of video chat and just this surge in usage is going to last once things start to open up again? >> you know, we've always thought that video was a great tool for dating, dating online, because it gives you a chance to meet someone and interact with them without actually going out. and sometimes you feel like it's worth meeting that person in real life and sometimes you don't so you can make a good decision and adoption of it has been pretty slow because people, you know, have preferred to meet in person but now since that's not possible, they're using video dating as next best thing. i think it's working out very well for people and i think people will continue to use it even once the pandemic passes.

>> any other trends that you're watching that you think ar going to stick around? is there anything that you think could drop off in the third quarter? i know your third quarter guidance was much stronger than analysts anticipated where is that additional revenue going to be coming from? >> well, you know, we operate a portfolio of businesses. and what we saw in the second quarter was strength across our portfolio. so tinder has been great for us. it's the global leader in dating had another great quarter, but we saw some of the brands that have been around for a while like match, ok cupid, plenty of fish performed well. hinge is a hot brand doing incredibly well. some of our brands outside the u.s. were doing well strength across the board that all contributed and that momentum from q2 really is going to carry into q3 for us and we're optimistic it will carry beyond that. >> gary, the letter to shareholders says we're able to look ahead with a little more predictability assuming no other curveballs

come our way that's a little cryptic. what curveballs could you be talking about? >> well, you know, we were optimistic at the beginning of the year that we were going to have a great year. obviously nobody was projecting the pandemic or anything close to that. so that was the big curveball. you know, what's unknown now is what happens through the rest of the year so the trends in our business are great and we feel very good. but, you know, we're worried about a potential resurgence in lockdowns or severe impacts in the pandemic in the fall obviously a lot of people are worried about that and that is the kind of unknown that's out there but not something beyond what we see with the pandemic. that we think is the big unknown. >> yeah. i did see one headline cross this morning that more popular dates involve walks in the park and barbecues outside because eventually you have to move from the digital portion of this to meeting someone face to face so you -- it's interesting you do need -- you can't have a complete lockdown because people need to graduate to meeting in

person but clearly if we all went back out we might use the digital portion less >> yeah. look, i think that, first of all, people meeting in real life is good for our business if they go out with people in real life and meet them and are happy they want to keep meeting people so it's a positive for us but we have been incredibly impressed with people's creativity through the pandemic, people doing video dates on each of their terraces where they have the same meal and do it by video. now people with a little bit of the ability to go outside, people are meeting in the park, people are meeting for picnics, things like that people are creative. they're resilient. they don't want to be locked in by themselves forever. and so our customer base is really doing a great job coming up with great innovative ideas and it's really inspiring and we're getting successful results out of that, engagements, marriages, longer term relationships. so it's really fantastic >> gary, just fascinating how dating has changed in these weird times. things have also changed for you. this is your first full quarter since completing your spinoff

from iec what is next for match, either in terms of incubating new dating services, maybe looking to acquire something what's next for you? >> yeah. i mean, i think that'sall on the table for us you know, we've done a pretty good job over the last few years incubating things. we incubated tinder and vlk, two smaller apps focussed on the latino and african-american community. we made a small acquisition to try to build in the muslim community globally we have done a lot of really interesting things incubation wise we bought hinge which was a great brand and combined with them to make it even better. so all of that is on the table when we see opportunity either to buy or to build, we're going to do that we have a lot of resources we have a lot of runway. and we will do both. incubate and try to buy things to continue to build our business and drive growth. >> gary, thanks so much for joining us today match group share is up nearly 12%. >> thank you so much

as we go to break, take a look at shares of teladoc and livongo. decent size losses here a good take with the s&p up 25 points we're back in a moment. bringing together these two companies is the next step in creating a paradigm shift in what people can get from virtual care regardless of what their clinical condition is. and i think it really has the opportunity to be that destination for coums nserno matter what they're looking for in health care

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what's noteworthy about it is for the first time the restaurant delivery platform will own and operate its own distribution centers those centers will be in eight cities across the nation, including chicago, dallas and redwood city, california

they will manage the inventory like spices or sauces. each location will carry about 2,000 items. i spoke with the cofounder tony xu, and he tells me it's a bit like the express lane inside a store, whether it's a grocery store or a convenience store or a pharmacy this is doordash's latest bid to grow market share in the hotly contested battle over online/on demand delivery. it appears to challenge places like instacart and amazon, but xu stresses doordash is unique since the pandemic doordash has added retailers like 7-eleven stories and cvs which carries

essentials s he addings that expansion beyond restaurants has always been on the company's agenda since march doordash has extended the market share lead over rivals, captures nearly half of the meal delivery sales in the u.s. in june last month uber announced the deal to buy postmates and julia, it will be interesting to see what commentary they have on uber eats back to you. >> thanks so much, aditi coming up after the break, another company making its debut on the nasdaq this morning nt.ceo of rackspace will join ay with us ♪ come on in, we're open. ♪ all we do is hand you the bag.

simple. done. we adapt and we change. you know, you just figure it out. we've just been finding a way to keep on pushing. ♪

rackspace is going public this morning joining us first on cnbc this morning is ceo kevin jones good morning good to see you. >> good morning. thank you for having me. >> maybe it will open as we're speaking, but pricing at 21, closer to the bottom of the range than the top, even though we know the markets have been salivating for everything regarding cloud services any reason why you think enthusiasm might not be as acute today? >> look, wee very pleased with how the ipo process has gone the enterprise value of our company has appreciated from 4.3 billion last time we were public to 7.6 billion today so we're pleased with that this is one of the largest tech ipos of the year as you mentioned, the market

fundamentals are fantastic, and, you know, right in the middle of this tectonic shift to multicloud, we'red leading multicloud solutions company, so we're excited about the future. >> how are you going to balance investor interest in how to leverage that huge tailwind, but also start to chip away at some of the debt. >> yeah. look, in terms of the momentum that we've got, we've got tremendous momentum in our sales performance. this past quarter our sales booking group grew 107%. year over year we're profitable with terrific cash flow. in terms of the debt, we underwent an lbo leverage is not a concern for us whatsoever our company has 90% recurring revenue, very strong free cash

flow generation. we can operate this business with a comfortable level leverage over of long term what we will do is use some amount of the ipo proceeds to deleverage the company over the long term, you can kind of think about us maintaining net leverage levels in the 3 to 4 times area, with the ability to flex up and down, depending on the opportunities in the market. >> you mentioned the end markets are thriving right now it seems like a hot area of tech, but what has changed during the time you've been private, now that you're public again, in terms of the competitive set, and in terms of what you'll be going up against. >> yeah, great question. you're exactly right the market is hot, and rackspace technology is a completely transformed company. before the take private in 2016, we actually competed with aws and hyper scalers. today we do not compete with

them they are our stronger partner. we've also down four acquisitions since the go private, so now, you know, we're the leading pure play multicloud companies. we have 120,000 customers in 120 countries, and fantastic momentum for the future. >> kevin, julia boorstin here. a question for you about your customers and their plans to do remote work as the coronavirus -- as we find solution to the coronavirus. how many of those customers do you expect to be in an all-remote solution, whereas some will be half and half what does that mean for your business and the services you're offering to them >> great question. for our business, the pandemic has really, you know, acceler e accelerated years of digital transformation, and made it clear to customers, you know

that having a multicloud strategy is no longer nice to have what we have seen from customers during the pandemic is an urgent need for them to save money. the multicloud does that customers want to scale up and down, and also customers want to pivot to new business models and then multiclose is fantastic for that you know, we're seeing 75% of businesses today having, you know, predominant kind of remote working and, you know, going forward into the future, we expect that to continue to accelerate, which is great for our business, because multicloud is right at the center of our strategy >> one of biggest secular shifts certainly of our lifetime, kevin. we'll wait for the open. we appreciate you coming in to help us raise the curtain on it. good to see you. >> thank you

thanks for having me kevin jones, rackspace, rxt. mike, the meltup continues here. we continue to see assets inflation on gold as the s&p continues to inch higher toward an all-time high let's get to the judge and the half why the oracle of omaha is loading up on shares of bac and whether it's the truest sign yet that the bank trade is about to break out. we'll discuss that with our investment committee today joe terranova, steve weiss, sarat and brenda is back with us let's begin with the markets as i said, they are higher and the revelation that warren