practices across the country, including our own experiences, increasing the amount of capital that's allocated, and looking at a greater range of investment opportunities. in doing so, i will increase the ability to maximize risk adjusted returns for connecticut beneficiaries. that's my goal as a fiduciary. >> always good to touch base with you, mr. treasurer. look forward to next time. appreciate it very much, shawn woond, the connecticut state treasurer joining us this morning. good morning it's 9:00 a.m. at headquarters in denver, colorado. 11:00 a.m. on wall street and "squawk alley" is live ♪

♪ welcome to "squawk alley" for your wednesday morning i'm carl quintanilla with julia bore steen, mike san tolely with us for the hour dow is lagging down 60 jackson hole tomorrow, of course, we're watching hurricane laura, the retailers but mike, crm, continues to astound. we thought 20% gain was impressive it's now at session highs of 27% today alone on what bloomberg called the best revenue surprise in a decade. >> yeah. it's pretty remarkable obviously the results themselves are emboldening people to say that this was as expensive as the stock has always looked undervalued or misvalued or didn't appreciate the durability of what they're doing on the market share side of things for the long-term. what is interesting, too, if you

look at it compared to some of the other software bell weathers over the last couple years, as big as today's move is, it's kind of a catchup if you look at how microsoft and adobe in particular their anointing crm into that class inpenetrable areas that seem like they're going to grow forever. you don't want to make it seem like it's a laggard. it's always been a good performer. and expensive stock. but it is interesting this market willing to just pay up more for this select class of companies that it's decided just are going to own the future. it's not really that much of an exaggeration to say that the big question is they're dragging analysts to raise price targets. they're changing the way the street is being forced to approach valuation the question is are they -- you know, overplaying this hand in this short-term at this point. >> well, your point about it being anointed to a rarefied

error is a good one, mike, especially on the heels of the addition of the dow which takes effect on monday mark talked to jim cramer last night on "mad money" about the company's astounding growth rate take a listen. >> i never thought, you know, when we started this company, jim, now more than 21 years ago that we would create a company that's worth more than $200 billion, that, you know, this year we'll do more than 20 billion in revenue and here we are. it's amazing look at this growth rate we're still growing this year at 22% at 20 billion. that's faster than any enterprise software company -- >> so we'll continue to watch the price action today, julia, on salesforce, even as we learn more about new companies like palentere. >> absolutely. just for salesforce, carl, so important to note that the guidance for the full year was stronger than expected it's not just the growth we've seen so far. interesting that current quarter guidance was a little soft

but when it comes to full year, they do absolutely expect these trends to continue pretty powerful stuff there now we'll learn more about palentere. interesting stuff in those companies numbers there in that s1 josh, what do you got? >> so, julia, it took 17 years but palantir now looks ready to make its public market debut remember this company was cofounded by peter teal back in 2003 its mission providing software that customers use to integrate volumes of data from images to spreadsheets into a central platform where it can then be securely analyzed and interpreted. palantir is best known for its work with the u.s. government. ceo told me his software is very useful and sometimes deadly. referring to palantir's work with the america military and war fighters

revenue grew 25% in 2019 and the first six months of this year nearly 50% but it's still not making a profit, posting a net loss of $165 million now, carp and his company clearly enjoy staying apart from the crowd. in that filing, carp ripped into his tech peers, writing the engineering elite of silicon valley may know more than most about building software, he says but they do not know more about how society should be organized or what justice requires our company was founded in silicon valley, but we seem to share fewer and fewer of the technology sector's values and commitments. having said that, the company does seem to share at least some of big tech's values palanti rerks has two class of stock, class a and class b and also plans to introduce class f shares too meant to give the founders just below 50% of total voting power. echoing steps taken by tech

giants like facebook and alphabet carl, back to you. >> wow what a story, josh thanks for that. good place to start with our next guest as well joining us is capital founder and managing partner low tony joining us for the first time good to have you with us thank you. >> thanks for having me. >> i would love to get your thoughts on palantir, sort of the color behind the s1 yesterday. the business model, karp himself what do you think investors should know? what surprised you yet on that filing >> i don't think there was anything that necessarily surprised me palantir is an amazing company it's been around for quite a while, as was noted earlier in your segment i think what's most interesting to me is the fact that it's taking the direct listing approach, which we're seeing more and more companies at least explore. i think there's a lot of innovation that happens in silicon valley and now that same mindset is being applied to the process of

realizing liquidity for investors. it will be interesting to watch this we have seen a couple other high profile direct listings with spotify and slack. so i think this combined with the trend towards the special purpose acquisition company, is spaks, this is something that i think is an interesting trend, kind of trying to hack the process of getting a company listed >> right no believe me, it's gotten so many people's attention the risk factors in the filing were really interesting, as i'm sure you are aware they sort of point to -- i won't call it reputational risk, but they included in the risk factors the degree to which they're shrouded in secrecy, some argue the degree to which they might be reported on from time to time given their client base. how significant is that to someone like you >> i think the way that i look at it is you have to really focus in on the fundamentals there's always going to be some extra baggage that comes along with certain types of companies,

especially high profile companies, companies that are not very transparent but i think the materials well outline the risks. and i think it's prudent for an investor to take that into account. but again the focus has to be on the fundamentals in this case just looking at the path to profitability, also thinking about the cash that's on the balance sheet to be able to support the company, kind of going back to the direct listing process. most times when a company goes public through the normal ipo process, capital is raised as well because shares are sold in this sense and direct listings, capital typically isn't raised but there's another hack which is doing a financing prior to the direct listing to kind of have this hybrid approach of being able to raise some capital and then turn around to the direct listing so i think those are some of the fundamentals to look at. another interesting thing which might be the reason that

palantir decided to stay private for so long is just the fact that there's a lot of integration and customization that often happens with their work and so i think part of this was the ability to be able to provide more of a true software solution so then the company could get valued much more like a software company as opposed to a services company. >> lo, julia bore stin here. you mentioned some of the hacks that palantir is doing in the way it's going public. interesting two of your top holdings, spacex and sofy expected to have eventual ipos i'm wondering how as you look at what palantir is doing in terms of their approach to going public, how do you think that will impact those two companies and some of the other major startups, major private companies as they think about offering their shares? >> yeah. this is something that's been interesting to look at over the

past 20 years or so because you look at some of the companies that are in the technology space like google. you know, google was only private for about five years so from the time it was founded until the time it reached the public markets, it was actually only five years, which is amazing in hindsight to look at how long these companies are deciding to stay private today so, i think there's a lot of things that factor in. you know, number one, companies are staying private longer because they're able to realize their dream while not being in the eye of the public markets and under the scrutiny of all the filings that are required and trying to manage to the expectations of analysts so that's a positive in that we're seeing these companies come public in a much stronger financial position the ability to have a solid customer base and to be able to kind of chart their own path moving forward so i think that a lot of companies are exploring this as an option. i think there's also a lot of

regulatory process that's required to go a traditional ipo where as it's a little lighter with direct listing technology already exists obviously there's also the talk about the pop on an ipo and whether or not that is money being left on the table. you know, is it the case when the ipos are priced by the bankers, you know, is this pricing actually reflective of the demand that exists in the market and the company doesn't really realize any of that additional ipo pop. so i think that's another consideration. >> yeah. no, that's a great point in fact right now the s.e.c. is on the tape voting, commission voting to ease rules on the disclosure of risk factors maybe in some ways responding to the trend that direct listings had become the other big topic for us this morning is this etsy piece on amazon this new blog post in which josh silverman argues that amazon is trying to wipe out its

competitors by backing california's consumer protection bill and says amazon supported the bill as an abuse of market play amazon, lo, is one of your top holdings how much leash do you give etsy on something like this >> well, there's the process of thinking of marketplaces as a way to connect buyers and sellers. and so i think what etsy and josh is saying and josh is an ebay alum and ebay was the inventor of this model i was an ebay alum as well and there are already laws in place to be able to protect buyers from sellers that are selling fraudulent goods, counterfeit goods. and this particular bill, the way that i read it, it really is focussing on online marketplaces and kind of carving online marketplaces out from some of the other methods that connect consumers directly to sellers in a gathering. think about an antique shop.

think about even a flee market those are the same types of dynamics it's just that these marketplaces do it online. so, you know, look, we all have to realize that amazon is in the business of trying to sell as many products as possible. amazon started selling directly to consumers and then the technology was so good and it built out such robust infrastructure it made sense to open that up and allow third parties to be able to access that infrastructure and process as well. and i look at the ability for these other marketplaces, like etsy, that are competing on a different level. you know, they're bringing more homemade and craft types of goods. historically those have been able to compete kind of showing that even going back to ebay the originator of the model, there were these certain vertical needs. but, you know, i think, look, it's tough to be able to compete against amazon it feels like amazon is coming after every particular type of

industry that sells goods directly to consumers. so i can certainly understand the frus tlags and viewing this as potential play for amazon to be able to further its depth into the consumers as the place to turn. >> more broadly, lo, along those lines, though. we have this public market that has given trillion dollar plus valuations to five or six of these massive entrenched incumbents that now potentially could be -- it could be argued are anti-innovation or they're basically exploiting their advantages of scale in a way that maybe make them targets of regulators or other competitors. how do you think of that as you look at your own investments and how you think it will play >> yeah. we're investing at a much earlier stage when companies are just getting started but these are actually the questions that we have to assess when deciding whether or not to

go after a particular opportunity. these are the types of questions that entrepreneurs and investors are asking themselves as companies get started. will this ultimately lead a company down the path to being in the crosshairs of one of these larger companies like a facebook or a google or an amazon and so i think when there's that level of wanting to understand whether or not this is going to be something that a company can do to achieve or will it just get wiped out by one of the larger companies, that's going to open the eyes for anyone especially on the regulatory side who want to really understand if there is a level playing field for companies to be able to compete so i don't think we'll see a slow down. you know, what we're seeing is the recognition that technology is woven into the fabrics of our lives. i think in this post covid environment, one of the things that we've seen aside from the unfortunate effects on our human lives is that we have a

dependence on technology it's interwoven into our lives in every aspect. and so we want to continue to see the innovation that happens from these early staged companies. i think it's fine for the larger companies to want to partner, potentially acquire, but we want to make sure these young companies are able to compete. >> right lo, that was fantastic we really hope you'll come back because there's a lot more to talk about that we didn't get to today. thanks very much >> thank you take care. >> lo toney, plaxico capital manager founding partner julia? >> carl, a lot more to discuss there, especially as we see the regulatory piece of this. now, as we go to break, take a look at shares of hpe after beating on the top and bottom line shares up about 6% we'll discuss with ceo antonio neri next. don't go away.

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and our profit was up 33% and eps 45%. we feel we have stabilized the revenue, and we are on our way to see incremental improvement as we move to the quarters ahead. and all that hard work was due to the excellent result we got in our backlog and also the cash flow from operations, which in return return significant free cash flow for the fourth quarter. >> to what degree would you attribute the strength of these large, cyclical waves that we're getting as a result of the pandemic how much of that is playing into the new fundamentals of the company? >> yeah. i think obviously we still navigating through the pandemic

as well as micro uncertainty, but what i see when i speak to our customers and partners is the need to continue to digital transformation on the back of the explosion of the data. we continue to see and that's the demand in the areas that hewlett packard industry grew 82%, which is actually i believe is growing faster than any. and the reason why that's happened, carl, we provide a true hybrid experience from the edge to the cloud for all the apps and data. that's also fueling our models in term of revenues with air growing 11%. but also what we see is the need to bring resiliency to the i.t. and their operations obviously powered these new remote work force and ultimately

extract every bit of value from the data and that's what we're doing. our portfolio is unique. we have a clear strategy to become the platform service company and we are starting to see the momentum >> yeah. question for you about your guidance i think it's interesting that you declined to provide guidance last quarter, but now you're back to forecasting. how much insight do you have into what kinds of both consumer and corporate trends you're going to be seeing in the back half of the year >> yeah, julia so, we provided guidance for the year on eps of 1.30 to $1.34 the reason why we have good line of sight on the sequential improvements that we expect. and the fact that we delivered very, very strong performance in q3 we expect orders to continue to grow for the next quarter and we

already saw that in month three of this past quarter and also let's remember that despite the fact that we clear a big portion of the backlog, we had more than $500 million in q3, we still have a portion of the backlog to continue to work on it. and also we have dig nif kant amount of what i call backlogging customer acceptances for the very complicated businesses when you bring it all together strong performance in q3, strong cash flow as well and the line to continue sequential improvement, we will continue to double down on that innovation i talked early on where we see the demand >> antonio, you make the case that those parts of the business that are as a service type areas growing nicely, clearly they're offsets in some other legacy areas because top line growth, even next year, not really expected to materialize in

organic way. do you see a way at some point down the road where the overall company in terms of revenue generation can get back to growing based on the mix of some of these faster-growing areas? >> we believe so, michael. i think it is obviously a question of time because the reality is when you pivot to as a service model, obviously all that revenue is deferred but the fact of the matter is that we can actually recognize the harder revenue up front if customers adopt in that consumption model. so, our model is actually incredibly flexible. the moment we accelerate this is good for our infrastructure. it's good for our services because every time we attach 100% of the services and it's good for that revenue. obviously we have a portfolio

that's heavily weighted to infrastructure today but, that will continue to pivot and we will think over the next three years as we said before we will deliver everything as a service. >> antonio, finally, sort of a qualitative question on guidance i mean, you're part of a growing population of companies that have resumed guidance, but what's the calculus there. seems like it would have been an easy call to say there's too much uncertainty going into the fall, we're going to hold off for another quarter. >> no. we believe q2 was the bottom of the year i mean, obviously q2 was another good quarter let's remind ourself q2 for us was a full quarter impact of covid because of our fiscal year, right? which is february through april. and i felt it was very, very proactive for us to give that confidence to the market that we believe we are on the u-shape of the recovery and because of line of sight, my leadership

principle is when you know something share it with the street we felt we need to hold ourself accountable. in the end, we're holding ourself accountable. we can see it. we are confident we will deliver against our guidance and obviously as we get through october where we bring the security analysts together with us, we will talk about 2021. >> well, that's certainly born out in your willingness to come on in quarters that were strong and in some cases not as strong. so we thank you for that we'll talk to you next time. >> thank you very having me, carl >> antonio neri. as we head to a break, take a look at shares of urban out fitters. up 20% this morning after the retailer posted a surprise profit of 35 cents a share that's despite a 13% drop in same store sales stock is now on pace for its best day on record thoerks it is still down around 10% so far this year 'lbeig bk.wel rhtac

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the saga between mcdonald's and their former ceo is far from over our kate rogers has more on that hey, kate. >> that's right. we're getting a statement on mcdonald's on the continued probe in the firing of easterbroke and the reports improprieties by the hr and whether he covered up for other employees while he was ceo mcdonald's saying in a statement the board will follow the facts where ever they may lead adding that our board and ceo are

committed to leading with integrity. we know actions speak louder than words since being appointed ceo in november, chris has installed a new chief people officer, announced refreshed values with input from employees around the world and has committed to making these values part of everything we do we will continue to make changes where necessary to support all parts of our organization. remember, mcdonald's is suing to easterbrook, moving to fire him with cause instead of without clause to claw back some of the severance dollars. easterbrook said the company knew about allegations and about his relationships with other employees when they negotiated that severance package we should add the company's new chief people officer coming from boeing and has been reviewing the company's hiring practices as well as criteria around how the company handles employee complaints mike, back over to you. >> kate, thank you very much for that update. time now for a news update with sue herrera she has that for us right now. >> i do, mike. thank you very much. here is what's happening at this hour, everyone.

hurricane laura is strengthening quickly. it is now a category 3 storm with sustained winds of 125 miles per hour storm surge is now expected to hit 15 to 20 feet in parts of louisiana. cnbc.com has more on how refineries have prepared for this storm. the u.n. nuclear watchdog agency says iranian governments have agreed to allow access to two suspected nuclear sites. dates have also been set but not disclosed for the inspections of the sites where iran is suspected of having stored or used undeclared nuclear materials. and along the u.s. border with mexico, drivers are reporting wait times of up to ten hours. the long waits come as the trump administration resumes cracking down on non-essential travel you are up to date that's the news update this hour julia, i'll send it out to you >> thank you so much, sue. coming up, he works with some of the biggest names in sports, including megan rapinoe

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still no fans in arenas or stadiums as professional sports moves forward with the new normal post covid. although both the miami dolphins and university of miami indicate they'll try with limited capacity this fall our next guest, joining us now is casey wasserman, ceo of wasserman. thank you for talking to us today. i know you represent a wide range of players, dozens of nba, mlb as well as nfl players and i know each of them is different, but can you give me an overall sense about how they feel about their health and safety and whether they feel comfortable returning to play? >> i think for the most part

they feel incredibly comfortable. the leagues have all done a great job. obviously there have been a few issues, mostly in baseball, mostly with one team but where there has been a bubble, whether the national women's soccer league, the wnba, obviously the nba and the nhl, they have done a spectacular job. and it shows that if you take the right protocols and have the right measures in place, that you can keep the players safe and you can produce a great product for tv it's not obviously the full experience of a packed venue but it's a great experience. and now that you got some teams returning to their home markets with the right precautions and the nfl is obviously going to be next, you can execute a season it's going to be a season clearly unlike any other, but you can have season. that is, i think, good for everybody. >> you represent a lot of nfl players. what do you think is going to happen with the nfl season and how much money could be lost for a lots of different people, including your company should the season be cut short?

>> well, look, if the season is cut short, it's just -- it's frankly just a prorata adjustment for all parties i imagine the nfl will do everything they can and i expect them to be successful in having a full 16-game season. and i look forward to it it clearly will be different in different cities i imagine l.a. won't have fans and dallas will. and/or some version of some capacity and you're going to have different things around the country. but the games will be played the broadcasts will be on. i expect the ratings will be incredible and people's excitement and engagement just like they have been for the other sports that have started will be up significantly. >> yeah. casey, we certainly have seen a hunger for live sports and those ratings. you do mention that mlb and i know you represent a number of mlb players. they were battling with the team owners about getting paid for a full season when the season has obviously been shortened how does that kind of conflict and all of these situations that

we're seeing arise, how is that going to impact the way you negotiate with these leagues going forward? >> well, look, in the major leagues in this country, there's collective bargaining, so the players have a union the owners have a bargaining committee. i don't think anybody, either side, is particularly happy with how the process went i think they're happy to be playing baseball and having people talking about the great performances of great players playing for great teams on the field. but clearly the relationship between the players and the owners and the league in baseball would be at the lower end of the quality of relationships compared to a league like the nba. and so, it's something everybody has to work on there is going to be a labor conversation coming up and all those things will be factors. and it's the reality we live in. obviously baseball has a history of labor disputes. and let's hope that calmer heads prevail in these uncertain times and we can actually all work

together to produce a great result, which is lots of baseball played on the field in front of full stadiums >> casey, i wonder what the premise of those conversations is going to be in a few months meaning, teams really don't know if they have the budget for no gate revenue, exactly what is going to mean for appetite for renewal of the broadcast rights and everything else. do you see a major effort to shift the overall economics of any of these team/player kind of equations or league finances through all this or is everybody just in wait and see mode >> no. look, i think next year will be interesting in leagues that operate with salary caps because salary cap is base on projected revenue. and if some percentage, whether it's depending on the league 30, 40, 50% of your revenue is from tickets and you have 0 there, for example, in the nba next year f they ran the salary cap based on projected revenue with no fans, i imagine every nba team would be in violation of salary cap today for committed

contracts they have today for next season. by the way, if you cut the players no, team can sign them that's not a situation that produces good result for anybody. what you have seen over the last decade is the leagues almost all evolve to where the players and the owners are truly partners. they are 50/50, essential gross revenue participants and it has been good for the health of those sports the media dollars are obviously the biggest piece of the pie the fan dollars, sponsorship dollars all those contribute and they have produced extraordinary results for player salaries but also for team valuations and that means that the system is working so i don't think you're going to see a big change in that you're going to see some adjustments that are necessary and appropriate in a time like we are in where you may not have any fans, which is a significant portion of the revenue but that's appropriate but those aren't long-term, systemic changes >> now, i think it's worth noting here, casey, in addition to running your company, you're

also chair of the los angeles olympic committee for 2028 and you've become an advocate for the idea that athletes should be able to have a political opinion to be able to advocate for things on their jerseys, when they're playing in the olympics how important is that to your clients? and why have you decided to take such a stand on this >> well, i actually don't think it's political i don't think being anti-racist is political i think that's basic human rights that ought to be the standard which we all operate under. and my view is the ioc has a rule, probably appropriately, to restrict political speech and protests on the field of play at the olympics and my point is simply that being anti-racist is not political. and we have seen some other leagues do incredible things the nba has done incredible work the wnba has done incredible work mls, even european soccer has done a great job of allowing athletes to have a voice, have

their -- whether it's to take a knee in unity, moments of silence, some messages on their jerseys as the nba has done. those are appropriate and thoughtful around a subject in my mind that is absolutely the standard which we all need to operate which is sort of no racism is acceptable and my point to the ioc was this is the reality we live in. this is the standard we should all hold ourselves to. and the ioc has a platform and it's going to happen and they ought to create an environment where they create an opportunity for the athletes to have a voice on how and when and where it happens. that is not all political speech all the time this is anti-racism, speech protests, opportunity to discuss in the right forms in the right way. and i don't think there's frankly much debate about it >> well, casey, there's so much more to discuss and i hope we'll be able to have you back as we have more live sports return and then, of course, ahead of the olympics next year thanks so much for joining us.

>> any time. appreciate the time. ♪ guys, we're watching facebook today came within 68 cents of 300. not too long ago of course, a lot of targets now in the 315 range, but the market cap closing in on 850 billion now. we're back in a moment

facebook shares rising again, hitting an all-time high again. we are joined by ubs tec analyst eric share dan to talk about this call. eric, good to have you on. 330 bucks a share, basically little over 10%higher from here so it's not exactly like, you know, everybody on the street is cheer leading this stock tell me about the rational behind what you think the shares are worth right now. sit basically just, hey, this is the market we're in and willing to pay for these digital economy or something going on specifically at facebook right

now? >> well, there's two things really i think number one, there is a lack of growth around some pockets of the market and an ability to pay for growth at reasonable multiples this stock is still trading at multiples that are nowhere near where it's traded historically at different all-time highs prior. and the earnings power going forward on the other side of covid-19, we look for continued 20% plus top line growth, continued margin expansion so i think when you look at names not only like facebook but also alphabet, we have notes out about both of them in the last two days you'll see a recovery in digital advertising you'll see some of the ecommerce things that you talked a lot about on cnbc today also play out the forms of digital advertising being the enabler of those shift to ecommerce and with facebook in particular the reason why the stock has been so strong in the last two days has been they flipped the switch on this facebook chaps product to

allow merchants and businesses to sell direct to facebook users across facebook and instagram and facebook is becoming ecommerce player over time as it is an advertising play and that's what attracting investors to relook at the name as well. >> yeah, on the ecommerce opportunity, i see that in your report here you think it could be $10 billion in revenue for facebook, let's say by 2023. as the company is growing revenues 20% a year, revenue 2023 is probably going to be 150 billion. so 10 billion out of 150, i just question, look, what the market today should be willing to pay for that portion of the company's top line three or four years down the road. is that really the specifics of a revaluation for this stock >> i think it's one element of the revaluation. i do think investors, especially in recovery names are now going out to '22 and '23 and looking at a return to core margin, core earnings power this is not one of the tech stocks out there just trading on

revenue multiples or gross profit multiples there's real earnings and cash on the balance sheet and free cash flow supporting the shares as well. there's multiple elements to the call and i will tell you, the note we put out came out a little over a day ago. and i would tell you a lot of clients and a lot of investors believe 10 billion could be too low. and that understates the opportunity. so, we did a sensitivity analysis this is the number we land on. and it's interesting to give you the feedback that many investors believe it could be a much larger number than that. >> eric, julia here. i reported on that note yesterday. it was interesting because you talk about the opportunity in ecommerce and how this is a huge, huge potential for facebook but what i'm wondering is do you see facebook diversifying into actually generating revenue into the transactions themselves or do you think this is really going to be just about the advertising opportunity around ecommerce. is this truly a potential to diversify revenue streams or

just further the strength in advertising? >> well, that's a really interesting question because i think there's going to be a couple different forms of this not only is there facebook shops, which is them becoming more of an ecommerce platform, you could see companies like shopify and yesterday announcement from big commerce which we don't cover that can be plug their merchants into this platform that's more of a take rate model where you can see facebook itself being the ecommerce platform, taking a take rate those are things investors are more aware of that happen on platforms like amazon and alibaba. but then you can also see an environment where there's going to be continuation of growth in things like instagram shopping where that's much more of an advertising unit when you look at your instagram news feed and see what looks like an advertisement that's trying to incite you or induce you to shop, that's an advertising unit that's not ecommerce so there's a number of different avenues, both through the advertising channel and the

ecommerce marketplace channel that they're going to be having some exposure to these themes going forward. >> eric, thanks very much for running through the rational for us appreciate it. facebook up 6%. >> thank for having me ♪ >> certainly be talking about ecommerce on facebook for a while. coming up after the break, the man advising tiktok's media strategy, he joins us coming up. ayitusn o nus.mite st wh ♪ 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. ♪

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michael cason joins us now thank you for talking with us today. >> my pleasure we always enjoy a chance to have a chas tiktok is a client of yours, and i know you have worked with kevin maher for years, but you also work with the advertising agencies you have said you believe that tiktok and its survival is essential for the advertising landscape. why is that? i think competitive friction is a good thing, and we believe based on the conversation we've had with the largest advertising agency holding companies and the brands themselves and chief they reach a particular demo, and i

would say the marketing industry is kind of staying above the fray of the politics in this consideration, but are looking at the competitive nature and again the demographic that tiktok seems to reach so effectively in a fair and open competitive market, which i think we are all prideful of, generally speaking, in the united states. >> kevin was brought in to build tiktok's advertising business, still relatively nascent considering how many users it has. give me a sense of how you see tiktok trying to build its credibility and its relationship with brands right now and how important it is to simply reassure advertiser that it's going to be an ongoing concern

>> well, i think it's one of those times when we have a bit of a disconnect between maybe d. i don't want to say wall street in this case, but two different streets. the streets where tiadvertisers, and where people are playing out political intrigue they both play here, and certainly it's a bit of that cloud, but i don't think it's getting in the way of advertisers making decisions the i'm proud to say kevin has been a friend and associate for many year, but all one needs to do is look at the success he had launching disney plus, maybe one of the most successful consumer launches in history to get to the levels they did. again, his experience will bode he well.

the marketers that we have spoken to and interacted with are very, very supportive of tiktok as i said, it's a way to reach a prime demo i do my sort of mother-in-law research, watching meyer grandkids, who are interacting all the time with tiktok therefore, if you're interested in reaching those people who will be making the purchase decisions sooner than later, it's a great place to do it. it's a competitive player, if you clear whatever the cloud might be, i think you have a winner in terms of what they can capture in the advertising space. >> in terms of the potential buyers, will they be more confident in investing and big commit miles an hour should microsoft be the buyer

which buyer do you think is most beneficial >> if i'm to believe what i read you have several on the one hand and microsoft on the other hand. it will replayoff harsh potential cloud is, so advertisers feel entirely comfortable. i think either one of those is very satisfactory to the advertising community. both oracle and microsoft represent wildly strong brands, oracle certainly a little less in the consumer-facing world, microsoft certainly with linkedin and xbox, as you know, have experience in this space. i think either one of those are

a absolute. >> we would love to have you back on soon thing you for joining us. >> thank you so much, julia. a great discussion, julia. obviously it's going to be an interesting next few hours as then powell in the morning let's get to sully and the half. >> thank you very much welcome to "halftime report. i am brian sullivan? for scott again today. stop us if you've heard this one before another record high for the s&p 500 and nasdaq apple hitting another street price target the cyclicals may be about to break out in a big way we'll tell you wide. joe