good wednesday morning i'm jon fortt with carl quintanilla and julia boorstin we turn investor attention to what we're calling the new way of working the pandemic has fueled an intensified shift to the cloud, to a.i., to remote work. and as fresh data makes that clear, it's pushing stocks in that space to higher heights

we're going to get smarter on that with our guests this hour take snow dflake, that record-breaking debut you heard about all morning, priced at 120 now indicating 19 to 195 the largest software ipo ever. their thesis, a new way to work with data in the cloud those indications as i mentioned way above the ipo price. the ceo joins "squawk alley" right after the first strad. and there's adoe bee ahead of last night's earnings. they reported 15% revenue growth the best q3 in the company's history. stock is taking a breather in the early trade. we'll ask ceo about that in just a few minutes. and don't forget about apple it's mac and ipad lines got a boost from work and learn from home imperative. major tech companies like apple are leaning into the work, learn and kperds from home phenomenon. the new way of working is rich the real question here, guys, is future upside already baked into

these valuations, carl boy, just look at those snowflake indications. >> we went into this morning, jon, looking at historic valuations on forward revenue and they've been blown away. despite the indications alone. so, yeah, you're looking at market caps well above 50 now. it's going to be really interesting to see not just what happens at the open but how much follow through we get through as you can imagine generation of investors are interested in names that have a huge head of steam and as we said last hour, blessing from the likes of berkshire. >> yeah. julia -- >> absolutely. >> you've got a front row seat to a big part of this in l.a. both watching startups and the content that gets created and has to end up relying on a lot of this infrastructure. >> yeah, absolutely. adobe is a perfect example of that with its creative suite of tools. what's really interesting is the snowflake ipo as well as

adobe's, speak to the shift of working from home and everyone has to have access to everything all the time and it's no longer about things living on servers in a back office it's really all about the cloud. and interestingly i thought that the apple business announcements really played into that as well. the fact that apple is announcing a suite of products, they're bundling things together they want to get people locked in to accessing everything on the cloud. remember, how transformative it was when apple convinced people to move their music libraries on to their ipads now it's all about accessing everything whether it's tv or whether it's accessing music all through the cloud. >> and carl, it's not without controversy, spotify already crying foul on this apple bundle saying it's an example of them crowding out others in the ecosystem, i mean, apple music is part of this bundle icloud is part of this bundle. the argument that apple is making explicitly or not if you're in with us for a penmy,

why not get in for a pound that's not going to be good for everybody. >> yeah. tonally, jon, it's a real opposite direction from what we were hearing from tim cook on the hill, right, just a month or two ago. this idea that they are faced with all kinds of heady competition. but between spotify's complaint last night and peloton's response yesterday to apple fitness, apple is having to argue now that somehow these bundling effects are maybe not as powerful as they were before. that is certainly the thesis today. they go to 140 base on the idea that when you bundle things like apple products, it's incredibly efficient economically >> yeah. a la carte versus bundle there goes that argument again we are still watching adobe after earnings record revenue, record quarter it was arguably, i would argue, the first big company to successfully shift from kind of

packaged software to the cloud adobe, shantanu narayen joins us exclusively. good to see you. quite a quarter. a lot of people are paying attention to customer churn, the rate of subscribers canceling. how big a deal is that >> thanks for having me. firstly on your show, jon. it was a good quarter all around all of our businesses performed exceedingly well to your point on the creative cloud and the document cloud, not only did we have great acquisition, in other words, new customers adopting the platform, but we really focussed on engagement and demonstrating the value of our products to our customers. so as you mentioned, even our retention levels came back to precovid levels which we believe is a really good sign. >> your stock is up 47% almost year to date so i wouldn't be doing my job if

i didn't ask, how sustainable is this rate of growth for you guys, especially given that the small and medium-size business segment is still struggling? >> well, jon, i think what's happening in the world is the businesses that we're in, namely creativity and enabling people to tell their story, what's happening with documents and accelerating document productivity and what's happening associated with every single enterprise needing to engage with their customers digitally, when you add all of this up, we think it's over $120 billion of an addressable market opportunity for adobe. i think with the pandemic and the current health situation has done is that it has created yet another inflection point for everything being digital and so, what we will have to continue to monitor is what happens in the spending environment. but as it relates to the overall

need for the kinds of solutions that adobe provides as well as importance of digital in the marketplace, i think that's going to be sustainable for decades because you're not going to put the jeannie back in the bottle as it relates to engaging digitally and creating content digitally. >> help us understand that spending environment what we heard from salesforce, from work day really got investors excited about the spending environment but then what we heard later on enterprise spending on things like hardware was very different story, even dev ops didn't perform at the level that some investors expected what are enterprises spending on versus what are they not spending on? >> we believe, jon, we're in this third phase of what is happening in the enterprise. and traditionally people first focus on out mating the back office and focussed on auto mating the front office for knowledge workers. it's absolutely clear that the

biggest imperative that exists in the enterprise today is how do you engage with customers, a category that we call customer experience management. and so, if you're an enterprise today and you're thinking about digital transformation, what's top of that stack in terms of where you have to invest is making sure you have insight into what your customers are doing, how they're engaging with you? what's the profile how do you deliver the personalized experience? and so we really believe that what you're seeing in the enterprise spend environment is that the companies that are focussed on this next generation of delivering customer engagement, the customer experiences and the insight associated with how to take most advantage of that data, they're going to be the secular winners moving forward >> now, john touch on this briefly, but i hope you can give us more insight into the small and medium-sized businesses, the big businesses that you

mentioned are already engaging with their customers digitally and already want to understand and measure that, but we're seeing more of the small and medium-sized businesses really push to make that shift and a lot of them aren't necessarily going to be able to survive. what's your outlook for that sector of your business? and how do you see them spending going forward? >> julia, what has to happen even for a small and medium-size business is that they have to figure out in a cost efficient way how they can engage with these customers digitally. and it is really unfortunate that given the current health situation they're probably the segment of the business that has been impacted the most it was nice to see a stimulus associated with that in the u.s. but they always represent the life blood of an economy and so, you know, our job at adobe is how can we make it really seamless and efficient for them to engage with their customers in a digital environment. i think it will be slower than

what you've seen on the individual side where the sentiment seems strong and on the enterprise side where there's no option but to engage digitally. but i'm optimistic that as we get through the end of this year we will continue to see a rebound in small and medium businesses and you know, that really represents the life blood of new business creation. so it's our job to help them with that transition >> certainly we hear a lot about the importance of that size businesses now a question about the third quarter in general now, it's usually not a particularly strong quarter for adobe and i know one thing that bolstered this quarter was the education industry in particular embracing your tools looking forward, do you think some of the growth you saw in this quarter will have been a pull forward from q4 or even q1, or do you think these trend are really sustainable >> well, we look at what we reported in q3 as well as what we are targeting for q4.

if you look at it as a second half for fiscal 2020, it's clear that it's going to be a record quarter for both the creative cloud the document cloud and increasingly the organic growth that we're seeing in the expedience cloud to your point, it's probably likely that given people were at home, there was a little bit more of in the educational segment particularly whether it was students, whether it was the institutions or the educators getting ready and ramped up for what's happening with education being at home. but we do feel like the strength is going to continue because the amount of content that's being created is just exploding. the amount of content that's being consumed is just exploding. and given that everybody is working remotely, the need to share information through documents, the need to be able to process all of your work flows digitally, that is going to be sustainable. so, we look at it as a second half

q3 was clearly as you pointed out a record quarter for the company by every stretch but we continue to believe that q4, if you look at what our targets are, that there's more strength out there in the environment for us >> i want to bring that remote working topic home to adobe. last time we talked you said, yeah, it's working pretty well but when it comes to starting new projects that's not so great when everybody is remote since then we heard from netflix as well saying, yeah, we can't wait for people to get back into the office as soon as it's safe. have your thoughts developed about productivity in remote work since we last touched >> well, first, jon, it was actually one of the nicest days because i went into the office yesterday in order to do the earnings call and prepare for it and i cannot tell you how satisfying it was. and when i was engaging with my entire executive staff who were remote, they were all a little jealous of the fact that i was

in the office. so i think there's yearning to go back and, you know, collaborate with people and get energy that you do off people. i certainly see that as a sentiment not just at adobe but when i talk to all the other ceos i continue to believe that products that have a well-defined interface, those we continue to be extremely productive but what we are trying to do at adobe is how can we in an extremely safe way bring back people when it comes to the brainstorming and you're kicking off projects i think we'll continue to see a little bit more of that. we're not going to mandate that employees come in if they don't feel safe. but i do feel like being able to bring people together in a collaborative environment is something that we should continue to push on because it will enable not just workers to feel emotionally better about what they're doing but it will also push these projects faster in a good manner >> and finally, mna, again, last

time we talked, you were not too eager to make a big acquisitions and boy, when we look at where snowflake is indicating this morning, not that that's something that adobe would buy, but it's representative certainly of what valuations are doing in certain cloud-connected segments i mean, has your thinking changed at all or as an investor inquirer are things looking rich for you? >> well, jon, first, you know, as it relates to the two large acquisitions that we made, we did announce on our quarterly earnings that the adobe commerce had a really great quarter we're very deliberate about making sure we deliver value from the acquisitions that we made and we integrate. we feel really good but we're always going to be on the lookout for great technology and great people

and understanding that cultural aspect in this environment when you can't necessarily sit with them and brainstorm on what you might do together, i think that's going to slow mna for a little while but we will always be on the lookout for great technology >> you sound maybe a little more open than you did a few -- a couple of months ago i don't know maybe i'm reading too much into that shantanu, always great to talk to you >> thank you so much for having me stay safe. >> you, too. great interview, jon now still ahead this hour, snowflake ceo frank slootman first on cnbc in the biggest software ipo ever and former cnbc disrupter, of course. latest indicates opening between 200 and $205 rit tethbrk. stay with us before money, people traded goods.

tools, cattle, grain, even shells represented value. then currency came along. they made it out of copper, gold, silver, wampum. soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. that's why it's time for digital currency and your investment in the grayscale funds. go digital. go grayscale.

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there's another big software ipo to get to this morning, not named snowflake. the israeli born js there frog expected to have its first trade at the nasdaq any moment now jfrog ceo joins us now congratulations. thanks for talking to us this morning. >> thank you for having me good morning from california >> so, tell us what are you planning on using the proceeds from this ipo for?

>> jfrog is a dev ops company. we're focussing on a mission we call liquid software we're taking care of software updates all over the world, making sure that software updates are flowing seamlessly from the developer's fingertips all the way to the end user. you might call it a dev ops company. this is how we practice software updates all over the world >> and how will you be using these proceeds, any interest in acquisitions or continuing to invest in the business >> not sure that i'm hearing >> curious what your direct plans are with the proceeds from this, if you're interested in acquisitions or investing the business what comes next after this ipo >> oh. so what comes next, first of all

we have to go back to the swamp and work and work hard and unfortunately enough for us we have an amazing team of over 600 frogs in 14 different countries and 10 different offices we call the swamp. the frog is focussing on providing software developer tools from developers to developers and to support the community which we call dev ops. >> one thing about your story that is worth paying attention to is close to a break even operating loss i wonder, how important -- how do you prioritize profitability? how do you see investors viewing the importance of profitability at this stage of the game? >> that's a great question thank you. i think that jfrog is a company that was born into the recession of 2008. so by definition, jfrog is a very efficient business. actually it's part of our dna. we built the company not to just

provide the community and developers all over the world with great software to accelerate the software processes and to accelerate software updates but also to build a great business so, while doing so, we listen very hard to the community, making sure that we are solving their pain, providing them with solutions that they actually adopt from the bottom up we have no field cells we have no reps in the field and basically our products are being bought and not sold. that helps the company a lot when you have a superior product and you have a great community the business is scaling efficiently. now the responses we got from investors, especially during covid were amazing the fact that jfrog is cash positive for the past five years, our path to profitability is quite clear actually we turned profitability earlier this year. i think that was a big plus.

and it's also helping us, the management team, to deploy our capital into our goals gives us a lot of flexibility in times like today. >> i want to ask you about the dev ops space. i'm paying a lot more attention to that these days these companies that are providing developers tools to make their work more effective in this cloud era. what do you think is the key thesis to drive to make you more successful do you have vision beyond? >> it's a very good question and what we heard during the past two weeks is that actually this space is getting more and more crowded people are a bit confused of what considered to be called dev ops versus what are services

provided to the world of dev ops. let me be clear, the key elements that dev ops are here to solve are speed how can we become faster how can we secure the software that we release faster than ever how can we be more efficient because if i will just tell you, let's hire 1,000 more engineers, that's not a good enough answer. how can we have the same software everywhere in the world. even this interview is being taken via technology and software supported it. if i were to ask what version of the software, i guess that you would not be able to answer. people just want to have a seamless process, fast releases, secure and if that's the experience, then we don't know what the version is now, on the other hand, when you need to download the version and reboot your devices and start all over again, that's a completely different experience.

this is what dev ops is here to solve. now, when you speak with frogs, what you will hear is that we are looking at the beyond. what dev ops serve the world of liquid software which is part of our vision, what we see is a seamless process of software moving from point a to point b seamlessly and easy without any versions. >> and just a final question about covid. how it's impacting your business but also operationally how it will impact your business particularly your offices in israel as that country goes into another full lockdown. >> well, covid i think it's a great point, but we have to look at what covid has done for dev ops versus what covid has done to all the companies in the world. it's changed our world and the pandemic and the lockdowns, the shelter in place changed our world forever.

in terms of dev ops, covid actually crystallized what we're saying everything is powered by software and if everything is powered by software, then software updates are vital. and this is our mission. we are envisioning a world when software is versionless. in terms of our employees, i have an amazing team i have a team that actually moved from working in the swamps in our offices to work from home and still very committed and very engaged in supporting our community. millions of developers that are using jfrog tools are being supported by over 600 employees that are working from home this is why i'm saying this is a team with a heart of a frog. >> shlomi, thanks for joining us lots of frog metaphors there. >> thank you very much. >> good first -- >> stay safe. >> first day of trading. carl >> may the frog be with us >> julia, we're watching facebook as well this morning

taking a dip overnight on this journal story saying that the ftc may launch an anti-trust suit against the social network, a lawsuit potentially before year end. still a lot more this morning "squawk alley" including snowflake's debut, indication 220 to 225 we're not far away from doubling that 120 price look at that we're back in a minute diane retired and opened that pottery studio.

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♪ ♪ welcome back, everybody. i'm sue herrera. here is your cnbc news update at this hour. daylight along the gulf coast is revealing scenesof flooding an damage from hurricane sally after it came ashore earlier today. and officials say the worst may be yet to come

in gulf shores alabama boats are on land and cars are under water. 10 to 20 inches of rain are possible in parts of alabama and florida with a few places potentially getting up to 35 inches of rain in england, people are lining up for covid testing as the government falls short of its promise to create what prime minister boris johnson boasted would be a world-beating system. today johnson is saying the top testing priority should be with people with symptoms as officials work to increase capacity and fifa is estimating the covid pandemic has cost soccer clubs around the world $14 billion. as matches slowly resume after a month's long pause you are up to date i'll see you again in an hour. carl, i'll send it to you. >> all right, sue. thank you very much. we are keeping our eye obviously on snowflake indication now 230 to 235. what an amazing story this has been just watching the indications come in. again, if you are just coming into the story, biggest software

ipo ever, biggest ipo of the year and pricing 28 million at 120. so not far from doubling that. we will continue to. in the meantime, apple remains a story the new watches, the new ipads the new bundles a lot of head livens to sift through yesterday. josh lipton will get us start on that hey, josh. >> so carl, it was only about 60 minutes long but apple's event was jam-packed with news let's start with that new ipad air costing $599 bumping up the price by 100 bucks, which tells you how confident tim cook is in demand. comes with a 10.9 inch screen, new powerful processer the ipad has been clearly benefitting from that work from home trend will this be enough to keep that momentum going more people are now also trying to stay fit at home. apple has an answer for that, too, with new watches like this series 6 remember, apple now dominates

the smart watch industry with more than 50% share. and even a new fitness service for the watch called fitness plus that will offer video classes for workouts for about $10 a month. we know a lot of people love peloton. could they now be convinced to switch to this new service or even do both and speaking of services, perhaps this was really the biggest news of the event. the long rumored apple bundle is here called apple one actually a set of new bundles. the basic service costs $15 a month. there are services we know that do face challenges because of the pandemic's impact like apple care, but others like cloud storage, music, video offerings are setting records. apple is now offering fans a new way to access them and one advantage for apple its huge base of subscribers gene munster telling me by his math it's at 500 million and counting back to you all.

>> all right, josh thank you for that wire's editor in chief nicholas thompson joins us with his take on the event good morning w. great to be here. >> so, going in to the event, i mean a lot of the discussion circled around why are the phones late? i wonder how much of yesterday did enough to offset that? >> i don't think it offset a lot of that, but the phones are late for totally understandable reasons. weaver in a pandemic it messed up the supply chain. so my sense is that the perception of the people watching, the perception of people at apple is that it's okay we'll let the company be a little late. you know what, the watch looks pretty good. so on that front, i think they're fine >> all right you singled out the watch just then does that mean that you think that was the lead yesterday? >> i think the most interesting thing is the watch and i think the ability of the watch to use infrared lights to measure your blood oxygen level at this moment, at this moment of coronavirus and panic about

that very fact is a very smart thing and it's a real technological advance. we don't know how useful it will be it might mislead people or freak people out it's a real advance. the most important thing for apple as a company and as a business is the push towards the subscription bundles the three tiers weirdly three options for apple one, but regardless, options for bundling different apple products my sense, though, is that the bundles aren't going to be an amazing deal they aren't going to be that exciting for consumers people will buy them it will make the company money but it's not cool, neat and new where as the watch, cool, neat and new. >> the watch is cool and new but the bundles do have that opportunity to lock people in to the ecosystem and i'm curious what your reaction is to spotify calling out apple for using its half, using it powers perhaps inappropriately. what did you make of that? >> so i'm fully sympathetic with

spotify on their other anti-trust accusation against apple which is the fact that apple taking 30% cut in the app store creates unfair advantage and disadvantage and using apple's monopoly in the app store to hurt competitors. that i buy spotify's argument yesterday that there's something anti-competitive about bundling apple music with apple tv plus and apple news plus, i find less persuasive, right. spotify bundles with hulu. i don't think a bundle is a real anti-trust problem but what's so interesting about spotify in this context is part of the reason why i think the apple bundle won't massively succeed is because people like spotify so much. and so if you have a spotify account and you're happy, the apple bundle isn't really a deal so, i think spotify was complaining little much yesterday. they should just go out and compete. >> i don't know, nick. i'm not sure i agree with you

because i mean, bundling what was a big part of what the browser thing that microsoft had to do with anti-trust wise was about all though you can go a la carte on this and i'm on spotify but this will make me think about it at least. but i want to talk about the ipad, too. because we haven't and just last quarter the ipad did more revenue for apple than the entire wearables category. so, isn't there a big opportunity here if this productivity shift that we have seen up to this point has legs if it wasn't just a pull forward in demand of q4 buying, but was, in fact, a second christmas? >> yeah. i do think that actually you are correct. people are shifting to the ipad because of the moment that we're in the main news about the ipad is apple's exciting new processer which will also presumably be in the phones they're going to announce in october. so the real advance in processer

speed which makes a lot of applications work more efficiently. also, the ability for touch id which is great during a pandemic face id doesn't work as well if you have a mask. it's a great new feature to add to the ipad air. the ipad is a big market opportunity for apple and yesterday will help them make more money on it >> nick, i want to go back to the watch. i totally agree. the health advantages, the technology really does seem like a big leap forward right now i'm actually thinking about buying an apple watch for the first time i've held off for quite a while now. but curious what you think about the watch and how it plays into this new fitness app do you think that apple could really be a rival to peloton is this going to be a new type of fitness app how big of a business could this possibly be for apple? >> so, i think it's very smart for apple to continue to brand the watch not as a fashion object, which is how they presented early on and much more

health and fitness have an announcement you talk about the watch and fitness app is a very smart thing. on the peloton specific part of that question, you know, the market reacted peloton's stock plummeted momentarily when the fitness app was announced i actually don't think that apple's watch and new fitness program is a real come pelt tor to peloton. a lot of people buy a $2,000 bike with peloton. apple doesn't have a bike. based social networks and connections. not something apple is good at it may be a compliment to peloton. they talk about the apple watch integration. i do think apple's fitness app is a smart thing to launch i think there will be a business there. i think it will grow quickly now that we're all at home desperate to exercise in our bedrooms and closets. and i don't think it's going to really kill peloton. >> yeah. that's a really good question to

end on because the products keep coming, nick but people still are waiting for the show me content on apple tv, on apple gaming. we'll see about fitness. peloton is very good and adept at creating compelling content i wonder how much of that -- you think that will be the next chapter watching them basically stock up these new products we've been getting in the last couple of quarters >> they will definitely be trying but what is so interesting about apple, kind of going back to my initial point is they are great at hardware, right in they're great at the phones and the ipads and the watches. when it comes to the content, just as you mentioned, it'd plus is pretty good news plus people are lukewarm on it's not in their dna. they're trying very hard see how well they succeed, but that's partly why i'm not as optimistic on the bundle success as many others are >> yeah. interesting. nick, it's great to have you back we always love checking in with you. thanks so much.

>> so much fun to chat with you. thank you. as we head to break, latest indications on snowflake as we await the opening trade for what is the biggest software ipo ever 235 to 240 that is in the area of doubling where it priced last night at this valuation it would be bigger than dell technologies, which owns emc, the enterprise storage leader by the way, bigger than vm ware and closing in on service now slootman's previous company at 88 million ceo frank slootman will be with us immediately after the first trade. before money, people traded goods.

tools, cattle, grain, even shells represented value. then currency came along. they made it out of copper, gold, silver, wampum. soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. that's why it's time for digital currency and your investment in the grayscale funds. go digital. go grayscale. give you one more check on where snowflake is indicated to open let's see, we have to zoom in for me to be able to see it, 235 to 240 still that's in the range of doubling the ipo price, ceo frank slootman moments away when ever

this thing opens stay with us ♪

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welcome back we continue to be on snowflake ipo watch. priced at $120 a share is now indicating to open between 235 and $240 a share that would be almost doubling. joining us now leslie picker, who you know a lot more about this ipo process than i do

but this was already the biggest software ipo ever at the ipo price. at this price, i don't know, what do you call this? >> it's the biggest software ipo ever at the ipo price. it's the biggest ipo of the year at the ipo price now you're seeing a doubling here i mean, this is what people will point to and say, oh, they left money on the table, but these are also the deals that are extremely difficult to price because you've got such a unique environment going on here with regard to software, investors are clambering for the idea that they have this growth at scale, tripling their revenue last year, more than doubling the revenue in the first six months of the year. rarely do you see companies that are this big that have that kind of top line growth potential and while estimates indicate it will slow down next year, you're talking about slowing down to like 90% growth. so, in this current environment where there is kind of a scarcity of biggrowth deals to invest in, this one has been

attractive to investors and that's why you're seeing, you know, a slower open, a potential for a doubling in today's trading. guys, i can't remember the last time that an ipo that was the biggest ipo of the year that was multibillion dollars like this doubled in its debut usually that's reserved for some of the smaller ones. but i guess the float here is on the smaller side especially given the private placements with berkshire hathaway and salesforce josh, would you agree with that? >> yeah, i think there's some interesting broader and bigger trends here than just snowflake, too. investors are just so eager, they are so enthusiastic about owning these faster-growing cloud names. and these names continue to perform very well because companies need their tools more than ever if you're going to manage remote work force and collect and access data from wherever you might be. you need these tools you need these companies you can see the way investors are piled in if you look at the clou, the etf

that tracks those cloud names is up more than 90% from its march lows snowflake clearly benefitting from that, too you look at the growth of this company, 130% in the first half of this year, guys >> yeah. certainly, josh, interesting because looking at snowflake as it snowflake as it competes with amazon, google and microsoft, it is also dependent on their infrastructure and i'm wondering if there is a sense of potential risk should those companies start to raise the prices around the infrastructure costs these rows can kind of frenemies here, but it does pose a question for snowflake >> i think a lot of investors probably look to the guy who is heading up this company, frank shoot ma slootman and see how he will manage it. he is such a well regarded well

respected executi in enterprise tech i think he says that he is more marine corps than peace corps. not interested in making friends but he knows how to run a business taken three companies public so i think that clearly investors have a lot of faith in frank and his history of success. >> and there is such intense pressure on the infrastructure side, competition between aws, azure and google cloud i'd be surprised to see prices of storage go up that would pass through snowflake. but leslie, this is the first time in a while that i've seen what might be a big hole blown in the argument about if the stock pops on the first day of trade then you left money on the table. it feels like the ipo process itself brought new attention to this stock that it might not

have had otherwise i mean -- but maybe i don't understand the internals of this process. >> yeah, i think you're right. clearly they raised a lot of money. the biggest software ipo and lgalso what is interesting 2020, i wouldn't say you have a new are administmarginal buyer, glancing yesterday at some of the reddit forums and you have a new cohort of retail investor interested in ipos, they serve as the marginal incremental buyer on the first day of trading. >> absolutely. and bob pisani said that it is one of those mornings where we wish that we were on the floor to watch it happen in person >> yeah, the book filling process of this is very interesting because there is

such a huge amount of bidding that is going on so that is why it is taking a long time. a great morning to be on the floor and explain how the process actually works it is actually very old fashioned. there is a bit of traders on the floor bidding to buy stock and there are of course people on the phone, gold man and other book runners building the book from people indicating what they want to buy and sell so it is a slow process when you have a lot of interest and basically the brid has gone straight up you. that is rather unusual to see that straight up like that and it is indicative of how strong the demand is i think part of the problem here, like why is this happening, why are getting twice what we had a few days ago potentially. and i think the main issue here is that this is a very rare pure play on cloud computing. in a way like amazon is not for example. so how many really pure plays out there of any size.

there aren't a lot and i think that is a major factor but it is not the only one so if you look for example unity software, these guys do half of the online games, and they just upped their terms today. they are going public too this week 44 to 48 and it was 34 to 42 yesterday. so it is general interest in softwa software the same with j frog, they were 39 to 41, and 33 to. just a couple days ago. so it is not just this particular company that is out there. the whole world needs to up sgrad their software, every company, because of the demands of everybody moving online and everyone who provides some kind of service that does that is the beneficiary >> certainly all about the cloud. but interesting, leslie, i have this stat here that ten ipos this year have more than doubled

their ipo pricing in their first day. just give me a sense of that kind of move and what that might indicate for other ipos coming up >> for investors, this is great. they are doubling their money in one day. so they will say keep the good times rolling. they like to see more ipos come down the pike because that helps them outperform the broader market of course that also kind of flips the script to the companies which say you know, there is always that kind of tug of war of, well, i want a good first day performance because that helps drive momentum for the future, but i also want and need this cash to grow my bis and business and be competitive. and so it could be at much as $3 million or $4 million today, that is a lot of money that i could be using in a competitive space as i try to live up to this potential that i've

marketed to investors. so good on one hand because it helps investors feel good good getting that allocation, but for companies actually seeking this process, it kind of falls right into the hand of the people who are saying that maybe this isn't the best way to go maybe a direct listing is more efficient. the company can really try to maximize the amount of money that they are able to generate from these types of deals. >> yeah, i'll be very interested in your further postmortem on this day once we see how it all shakes out and we'll stick around because we're still going to interview frank slootman even as we hand the ball to scott wapner and halftime in a bit. but this is interesting because snowflake goes public where it is indicating right now, it will

be above vmware. so to see is snow 234r5flake mas debut there, that is amazing big shoes that it has grown into fr so its story is just beginning to be told we'll take a break and -- or maybe we won't take a break. carl, we continue to watch this stock be and where it is indicating at least, it hasn't moved that much in the last ten minutes. who knows whether we're getting closer to an opening >> yeah, we were obviously hoping to get it done before noon it does not look like that it will happen. but you will talk to frank slootman on the half in a few minutes. and we should remind people that we're getting a ton of headlines on vaccines, head of the cdc saying that one may not be available to the public until next summer.

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and your investment in the grayscale funds. go digital. go grayscale. welcome to the "halftime report." stocks are pretty much at the highs of the day the big story today, snowflake going public, not open yet but the indications are incredible $230 to $235 a share is where it would open right now priced at $120 that valuation right now would be worth more than two twitters. keep that in perspective as we talk about this stock and what it means in the broader tech landscape anwh i