taking a stick in it she seems to have the midas touch in the stocks she chooses. this is partly technical part of it is just that they have seen the vision that kathy wood has we will have much more of this on fast tonight. i will see you then, tyler thanks for watching plench "closing bell" starts right now. >> welcome to "closing bell," everyone i'm wilfred frost with sara eisen. stocks bouncing higher again let's will be at what's driving the action the unwinding the meme trades, game stop, amc all lower today we will have more on that dramatic action in the market coming up. earnings continuing to come in strong, u.p.s., alibaba coming in strong. momentum plays are in the green.

uber is up the dow is up nearly 600 points. about 2%. >> financials in the lead today. coming up on the show, allianz's mohamed el-erian says the moves in game stop and the s&p 500 are all connected. he will join us to discuss what could happen next. plus, we are counting down to one of the most important afternoons of earnings season. amazon, alphabet, chipotle, ea gear stocks higher heading into the final hour of trade. let's get to mike santoli with a lowser look at the action, mike w all sectors working right now. >> it is very broad with the exception the epicenter reddit stocks that are on the decline taking the pressure off the portfolio restructuring.

the shakeout from last week. 3.3% we gained back most of it. this is a two year chart of the s&p 500. we are hovering at the level where it fell apard part in the middle of last week. see if it can recover from that. i want to point out late january into early february of 2020. that's when you had a oopsy right there. it was a very, very orderly uptrend from the fourth quarter of the prior year just like this one was. you had this big gut check it hit the 50-day moving average as this did and it rose higher from there now i am not predicting the fall off the cliff that was obviously an outside shock that struck the market the point is we may have been in the market for a little bit of an excuse to back off some anyway look at some of these risk appetite indicators, subsectors of the marks arc investment, arc innovation, kind the flagship, almost back to the highs it has been a big bounce over two days the ipo, similarly, actually a

little bit semis are under. approximating. software is mying. semis are not going as well as the broad market they had a big run and a mixed response to earnings coming out from that group. globally, let's remind people. we have been fixated on reddit stuff, local stuff non-u.s. stocks have been outperforming the s&p 500. that reinforces the notion it is a global recovery move the dollar has been rebounding we will see if this can continue. >> dollar rebounding though giving up some of its gains today, only up a quarter of a percent. two big days of declines for the vix. is that a bullish signal >> it is, a confirming bullish signal it is not leading us to say it is up and up and away from here. but it shows you there is a tension release happening. the fact that we had an elevated

vix often tells you that if we get a selloff and it is quick and doesn't really have some selling momentum that follows it -- the vix already hasn't capped some rough patches. that means it can bleed lower and the market is maybe on more stable footing >> mike we will see new just a few minutes. dow is up almost 60 points right now. shares of game stop and other reddit retail trade names getting slammed for a second day in a row game stop down 57% rit now you can see the carnage across amc, koss, exprerks blackberry, all of those shorted names mohamed el-erian joins us. there was always going to be a limit to how much money retail traders could put behind these names. is that it did we see the end of it >> in large part i mean the limit came much faster because they were restricted from buying more. if you are going to implement a short squeeze you need to continue to keep the pressures

on the shorts. because they were frustrated and distracted to talk about silver, talk about other things, yes, that trade has now died down enormously, which means it is a green light for the rest of the market to go upbecause we no longer have the threat of de-grossing. >> explain that further. what does it have to do with the rest of the market, the broader market >> where was the pain trade? they always tell you figure out where the weak hand is if you don't know where it is, it is you. the pain trade was in hedge funds that had shorted way too much of a handful of stocks. so when they came under pressure either they had to come up with more cash for margin calls or alternatively they had to cover their shorts, which means they needed cash. what did they do they sold their longs. think of balance sheets contracting. so the people on this side, on other side of the shorts make a ton of money, game stop.

and the people on this side, holding acts lose, because there is a massive selling going on on them that was the dynamic last week, de-grossing. with the short squeeze over you no longer have that, so buyers on dip now have the green light and they have done what they have done repeatedly it has worked well for them so far? that was the theme of last week, as you said. what about next week or next months if retail investors or any investors for that matter start to feel the pain from having been long the likes of game stop? do they start to dump their longs, whether that's the bitcoins of this world or the s&p 500 trackers of this world >> so my sense is that trade was concentrated among a certain seg member of retail investors who had enormous power because they came across a really smart trade and were able to coordinate. i don't think it has broad implication, but there is another issue in play.

you will hear me repeat it over and over all this is enabled by tremendous liquidity and very low costs of borrowing so both sides this trade had leverage both sides this trade involved margin so don't underestimate that the signal all along is this market is really extending far with people going well beyond the natural habitat piling on risk and that is something that we are reason -- that we are witnessing every day. >> it is the disconnect that you have been talking about a long time now between the markets and the economy and the fundamentals liquidity spigot is still wide open, mohammad does that mean this could easily happen again >> what you saw is what my friend and colleague says you get ill liquidity in the midst of liquidity the hedge funds that were short

think i will liquidity in the midst of liquidity we came very close to a market accident you have heard me say that among the four thing that can disrupt this rally, two, we have to keep front and center one is the possibility of a market accident, and we came close. ask yourself, why is robinhood raising so much money after last week and the second thing is, we haven't mentioned yet, the yield curve is as steep as it has been for the last three years keep an eye on that as well. those two things are risk factors. er in the risk scenario, not in the baseline scenario. in the risk scenario, but they are risk factors to this wonderful rally we are experiencing >> expand for us on the second point about the yield curve. clearly, as you said, it is steep, and 1.10 is high relative to where the ten-year was six months ago but it is not high in long term perspectives on top of that, most

importantly, the fed continues to commit almost unreservedly to keeping the shortened very low which levels and what end of the curve will matter to the broader markets? >> the fed has told us they are worried about it think about their verbal interactions in the first full week this year they don't want to see interest rates go up too quickly. why? because it threatens the equity market it does two things one is you can no longer argue tina there was no alternative to equities if bonds start paying something. but secondly all of these very strong buy signals that come with the cash flow become weaker this fed -- if this continues, people continue to imply high inflation the fed has two

choices it will not like either it has to do more implicit or explicit yield curve control. or alternatively, it thats to risk a financial market volatility and the fed doesn't want to go there. keep an eye on what happens to the tens as we did forward from here. >> great to see you. thank you for joining us >> thank you >> mohamed el-erian there. up next, the stimulus conversation front and center once again in washington can a deal be reached that satisfies both sides of the aisle? we will speak with someone who has been involved until those discussions for years in the last administration, mark short, assistant to vice president pens you are watching "closing bell" on cnbc.

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bring your own device, or trade in for extra savings. stop in or book an appointment to shop safely with peace of mind at your local xfinity store. 46 minutes left of trade another strong rally day on wall street stimulus nerks are ramping up once again in washington ylan moi with a look at where

things stand right now >> sara, senate democrats just had a virtual meeting with president biden and treasury secretary janet yellen will the administration argued their case for biden's $179 trillion covid relief package this comes as both the house and the senate are starting the process to pass the bill without any republican support and top senate democratic chuck schumer said biden is totally on board with that plan. >> we share president biden's desire to advance this legislation in a bipartisan way, but the work must move forward we are not going to dilute, dither, or delay because the needs the american people are just too great. >> there is some resistance within biden's own party democratic senator joe manchin of west virginia said he does not support the $15 minimum wage that's in biden's proposal still, manchin said he had vote

to move forward with this process but hopes that the actual bill would be targeted toward the quid crisis back to you. >> much to discuss on stimulus and other areas in washington. let's bring in former chief of staff to vice president pence mark short mark, good afternoon thank you for joining us. >> thank for having me on this afternoon. >> i want to get to stimulus in just a moment and other latest developments in washington but i wanted to start with the final days of the trump administration you were in fact bar trd the white house at one point because of the stance the vice president took towards the president it. wondered how that left you feeling as you left the white house at the administration end. were you a supporter of the administration or a critic >> wilf, i am proud of a lot of things that we accomplished over the four years in the trump-pence administration and i was very honored to serve, and i was very proud of the vice president can the courage he showed on january 6th. i think that, you know,

unfortunately, there was some bad advice i think that was provided to the president about certain powers that the vice president may or may not have. i think the notion that anyone would believe that our founders would destow on one single person the ability to throw out election results i think is pretty absurd. but the reality is that we accomplished a lot in those four years and i think there is a very good record that the president has that he can be proud of over those four years. >> to your point about those finals days and weeks, if it is the case that the vice president and his team, yourself included, showed courage in standing up to the president around january 6th, do you regret not showing that courage a little earlier in the weeks. >> i think the president was clear with the vice president

throughout the process about what he believed his functions under the constitution would allow. to be clear, i think that when i say the vice president's courage, it was in that moment when despite people attacking the capitol, the vice president never vacated the capitol. he stayed there, was in constant communication with the leadership and said we are going to finish the vote and work for the american people tonight. he was one of the leaders in making sure that there was not a delay and that various protocols were followed and that the senate and house came back together and completed work that night roughly about 4:00 a.m i think that's the courage that i am speaking of >> one more question from me. >> okay. >> what is the status of the relationship between pence and trump? what does that mean for vice president mike pence's future? is it going to be with trump, or without him? >> i think that they have had several conversations that have

been cordial in the last few weeks. and i think, again, in a the vice president is very proud of the relationship that they had and what they accomplished but i think that at this point the vice president still has a very bright future but i know that he and his spouse will consider what doors they think the lord is opening for them and decisions they make in the future and now is really not the time for them to be as focused on it. >> mark, looking forward what is your expectation of bipartisan support for a big stimulus bill in the coming weeks? >> wilf, i think it is really the only pathway forward i think it is important to remember that thus far there have been multiple bills passed that allocated $4.5 trillion for covid relief when you lock at what the biden administration proposed there are some areas where there is agreements and some where there is not as you know, we passed the historic tax relief under budget reconciliation in 2017 on a very

partisan basis but it's hard to see how many of the things in the biden plan can muster approval through budget reconciliation in other words a senate parliamentarian would say raising the minimum wage to $15 probably doesn't fit under a budget reconciliation. a lot of the elements of their plan will likely fall out anyways. really the only way forward is to find a way to partner with the republicans to get 60 votes. otherwise, there is not really a way to do it because either the parliamentarian will rule them out or as you just reported, senator manchin doesn't support a federal minimum wage of $15. so really, the only path forward is finding pathway to 0 votes. >> i think there are two studies they are going to be cite

showing that an increase in minimum wage would increase the budget and get it in that way. don't you think it is early to start alarming warning bells over the debt when the trump administration added $7 trillion over the last four years >> i think it is a fair point, sara i think the reality is that both republicans and democrats failed to show restraint when it comes to spending taxpayer dollars i think that's unfortunate having said that, i think even if you put that aside we can have a distinct, separate argument that says that raising minimum wage to $15, even the non-partisan budget office has said it would kill 1.5 to 3 million jobs in america. that's probably not good poll see. even if i can accept your points that both democrats and republicans failed to hold the line on spending the realize is that some of the pieces of this

proposal probably aren't going to be good for the economy regardless. >> i wonder if you thought about whether the terms for stimulus checks ought to be tightened there is plenty of anecdotal evidence to show that a lot of americans used those checks to invest in stocks are they meant for spending in the current year or many for long term investing, as in stocks >> i am one who believes that the direct payments is not really good policy some of the concerns with unemployment insurance as well the first bill we passed that included an extra $600 it became difficult for people in the hospitality business to encourage laborers to come back to work because in many cases they were earning more than when they were at work. there has to be acceptance that a lot of people were put out of

work through no fault of their own and so extending unemployment insurance makes sense for them raising it significantly above the $300 -- the biden proposal is $400, i think is a mistake and i think many of the direct payments have also proven to be less than beneficial to the overall economy. >> mark short, thank you for joining us. >> thanks for having me. after the break, the short story of game stop mike santoli hosts a discussion today with noted short selle rs block about game stop and the reddit traders we will bring you those comments next ♪♪ ♪♪

dow up 570 shares of game stop, though, are tanking following last week's furious rally. earlier today our mike santoli led two interviews on cnbc pro focused on the game stop saga from the long and the short sides. mike, what were the highlights >> i spoke to tom lee of fundstrat, and carson blake of muddy waters tom bullish on the stock market. carson arc long time short seller, looks for companies overvalued maybe even frauds. they both agree the game stop squeezing flash reflects energy and power from retail investors that's likely to stay around here's tom on the public's rush into stocks. >> kinds of increased participation is very good for markets because, number one, it's going to create a lot more natural buyers and sellers because retail and institutions

don't always match but it's also going to create disruptions to the way wall street might have been dominating markets for the last ten years because now there is a potentially new source of money coming in. i think people are really underestimating how much money that ultimately represents. >> obviously we have seen that disruption both traders on both sides of the meme stock trades had legitimate motivations but ultimately both overplayed their hand quite a bit here's carson. >> what do i make of game stop obviously there was poor risk management by medical kin vin capital and maybe some of the other short sellers that were in the name but i don't see anything illegal that happened here n. my view -- and i don't -- look, i have to be very clear that i don't understand wall street bets psychology i only went on it for the first

time about a week and a half ago. and i think there was economically motivated. >> by that he meant there was a core fundamental and technical thesis a few weeks on wall street bets that supported the idea of a higher game stop price but it got detached from the fundamental thesis both believe there is an important role for short sellers. if you had a market without shorts people can't take as aggressive a position on the long side and you don't have enough capital flowing in the right directions if you don't have shorts. you can check out a recording of these conversations on cnbc pro. >> make sure to check that out cnbc.com/pro plenty of other ternl there as well. the countdown is after as amazon, alphabet, chipotle and

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time for a cnbc news update with ray held solomon. >> in florida, a some better police procession. police transported the bodies of two fbi agents killed. two other agents remain in the hospital in stable conditions. the fbi says a suspect is also dead. under pressure from regulators, tesla is recalling nearly 135,000 model s and model xv vehicles to fix possible touch screen problems. the company disputes the need for the recall saying there is no defect. if you are unsure who will win the super bowl maybe

nicholas the dolphin can assist. he is on a six super bowl streak he is picking the chiefs there is confusion in the pool because a dolphin named winter chose tampa bay. sara, the dolphins have spoken i will send it back to you. >> maybe they are not always right, like the groundhog. hopefully. >> hopefully >> thank you. silver having a wild week. up next we will break down the moves with the ceo of hecla mining the largest silver producer in the u.s. we'll be right back. sold to the onion lover in the front row! next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowed-out loaf of sourdough bread. don't get mad get e*trade and get more than just trading

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welcome back 25 minutes left in the session let's have a look at some individual market movers pfizer reporting mixed results with an earnings miss and revenue beat this morning. the company says it is expecting to generate about $15 billion or roughly a quarter of its total revenue this year from the sale of its covid-19 vaccine. the stocks is down 2%. draftkings is surging on news kathy wood's necks generation etf bought 50,000 shares the stock jumping 9%. unit reporting an earnings and revenue beat saw an 18% increase in revenue

due to package delivered market. be sure to catch an interview with the ceo of u.p.s. tonight on mad moan at 6:00 p.m. eastern time. >> wilfred, the rally in silver is pulling become today after the metal hit an eight-year high yesterday. hecla mining feeling it. giving back all of the gains from yesterday falling by 20%. the ceo of hecla joins us now for a cnbc exclusive it must be crazy to watch all of this what has been your reaction as silver has gotten caught up in the reddit traders versus hedge funds drama on the way up and now on the way down. we are a 130-year-old company. so we are kind of used to the roller coaster ride that we see in silver that occurs periodically

so this isn't unusual. and we are built to survive these moves. and we are happy that the share price is actually up 8% for the week so -- >> net/net, you are a happy guy. what is different, though, than 100 and whatever years ago from our founding is the appeal of etfs and the fact they have become so useful we saw slv, the silver etf from black rock attract $900 million one day last week. which is the most ever the commodity etfs are a little bit different because they have to be backed by face call silver how does that change the whole game and evasion for you in terms of demand for silver >> it opened up people investing in silver in an easy way before it was complicated. they had to hold the silver themselves you know, they had all the risk of loss of holding that silver now they are able to invest in

the etf. so it's really just made it much easier, democrat advertised if you will people owning silver. it has been great i think net for our business silver prices are you know five times what they were 20 years ago. >> and so who do you think the marginal buyer is now? rather what is their reason for buying silver? is it a hedge asset a protection asset or because of exposure to its growing use in different areas? >> it is both of those things. it is a monetary asset, and, you know, gold is not too far from its all-time highs silver is halfway there. i think investors see that then they also see that growing use as an asset, as a metal that decarbonizes our economy it's critical for any electric vehicles it is critical for photo voltaic

cells. it is clearly a metal for the future >> evs in particular have been a hot area for investments all the spacs, tesla, of course. to what extent is silver necessary for electric vehicles? gm announcing it is going 100% electric by 2035 how much silver is needed for the production in this vision coming out from these companies? >> it is a critical element of it because of the conductivity of the metal and the resistivity of the metal the expectation is you are going to use three and a half times more silver in the vehicles of the future than in the conventional vehicles that we have today what's your take overall as to the influence the dollar has had in the last nine months, the rally that silver had pushed it back to an eight-year high not

to the sort of 11-year high that others are, willing at if the dollar stabilizes or strengthens from here, do you think silver will plateau at best >> certainly if the dollar strengthens it provides head wind for silver. provides head winds for really all commodities but i don't think that's the expectation to see the dollar strengthen. >> thank you for joining us. >> glad to. we are greerg up for a big afternoon of earnings, amazon, alphabet, chipotle all set the report we will tell what you to expect as we go inside the "market zone" next you are up 178% t sonhe&p

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>> announcer: the "market zone" ü is sponsored by etrade. trade commission free today with no account minimums. 16 minutes left in the trading day. we are now in the "closing bell" "market zone." commercial-free coverage of all the action going into the close. cnbc markets commentator mike -- mike santoli here to break down these crucial moments of the trading day. courtney gibson with us as well. stocks jumping for the second straight day both the s&p and nasdaq less than 1% from all-time highs. amazing how quickly we get back there. s&p up 1.6%. dow is up 545 points the high was 630, or 1.8% at the moment, and the nasdaq up 1.7% mike, strong rally, up 3.2% over two days, suggesting that the game stop-led stress to smart,

behind us. >> yes at least for now i think a 4% decline high to low was a quick little shakeout. bull markets don't give you a lot of time to decide if this dip is worth buying. i think it is sort of back to trend. one of the key things is, nothing that was going on last week really did bleed into the credit markets, didn't really derail the rise in treasury yields so it wasn't really seen as a macro tress event. that's all to the good i still think the s&p hasn't necessarily said okay we are back to our orderly ways of ratcheting higher every day and keeping the angle of ascent we had going into this year i think you can see it as a very good bounce. let's see if it proves more from here. >> up already 3.2% for the week, courtney, has this opened up any opportunities for you? >> hey, sara, wilf, good to see you guys, mike as well it's interesting

i actually started buying on friday that was a really interesting opportunity where you hadn't seen some names at those levels since october, right so when you saw kind the vix spiking, you saw some of the fear in the market, in the stock market you saw fear in the bond market. you had the ten-year below 1%. we are finally seeing that now creep back above 1%. ic it is still up there today. i did pick up names i really really liked some new positions even in the paypals of the world and added to those names that i thought were too beat up because either a someone was raising capital or they were taken down with the dip of the market. >> what did you sake from the likes that the fanks or microsoft and apple reacted so badly to strong earnings was that only because of what was going on with the game stop type of short squeeze? or does it worry you that for the rest of earnings season

valuations already priced in strong numbers. >> anyone who is pricing in valuations in these names is selling them going forward is likely making a very big mistake. i think with those names, they are some of the most liquid names in the market, some of the biggest winners. what do people do, they are generally selling their winners when there are challenges in the market and this need to raise cash i think you saw some awesome earnings i think people bought the rumor and sold the news. big mistake. i think these companies have long term prospects for growth and you want to be in them for the long term. i don't know whether you like google alphabet because of where it is today or because it is only trading at 35 times p/e or you like the fact that you know search is coming back. there is a lot of reasons to be these names. can't think of any you would want to be out right now. >> up 2% into earnings uk card spending, including

debit and credit cards on security brokers surging 300s last year. the firm citing reddit investor hype and saying the growth has been driven by 18 to 29-year-olds >> mean pooil while, mark cuban on "squawk alley" this morning. >> i wasn't telling people to buy more at all. in fact, i said, look, any of us who have traded long enough have been through the pain of making mistakes the key is to learn your lessons. if you are going to hold the stock, if you can afford to hold it, you know, you -- i am not a fan of selling into a diving market and so i told them if you can afford it, to hold on. but i am certainly not encouraging anybody. that said, i am a fan of what's going on with wsb, and i like the idea of this collective buying and i think it could really have an impact on the markets in the future. >> mark cuban in support there, mike

what do you make of either that or the fact that british -- what did i say, millennials -- young millennials? i don't know if they qualify as that are charging these broker trades on their credit cards. >> it is old zs, young millennials. >> okay. >> it shows you that there is a sense out there that it's somewhat an easy game. and i think it was reinforced over the last ten months because there were some easy wins based on your entry point. there is a incumbent come uppance to the late entries. thing a grates that paid for that stock last wednesday or thursday is vastly above where we are right now a lot of money was wiped out in that trade if you chased toward the end. i don't think it will go away. we surged from hertz and american airlines and carnival in march and april to the cloud stocks, to spacs i think it is a new lasting energy this this market.

i think it makes it a jumpy energetic unpredictable tape but it doesn't necessarily mean it is all for the good or for the wins i also doubt a message can be maintained for any old stock it was very specific to game stop on multiple respects. >> why aren't they more worried about the retail participation peak we have been looking at fun manager surveys so long and we have a better take on that it is hard to read on the retail side clearly experiencing big losses all of a sudden, game stop or elsewhere, could that not turn the tide of what has clearly been a trend over the last year for equity market levels in general? >> i suppose it come i just don't think that it goes away that quickly. i think these are phases, they are not moments. and you know, it's really not that -- it's not even a-year-old that we have actually been this this mode of seeing that much money rush from that direction

so, yes, at some point it is going to lead to a little more pockets of irrationality maybe it does get overdone in an overall sense but it is tough to think that's going to be the thing that will take the market down we have we were in a bull market without the little guy throwing money at it for a long time. >> kourtney, does the increased participation change your perspective. >> i don't think it is a risk per se i think risk has a negative conno connotation. more participants in the market creates more liquidity for everyone selling somebody is buying ultimately may the best man or woman win. i don't think it is a negative piece of the equation. i think people need to change their models to account for

potential risks in the market. when i heard that barclays stat, last year credit card debt went deny by 10% and more than $4 trillion was pent up in checking accounts and $5 trillion in savings accounts that's a lot of money in the market for people to potentially invest people are not being frivolous out here you might have some folks that decide they want to take some incremal bets here and there or trade. then others are looking at their 401ks in a different light than they were before they didn't know what a value fund was vgs a growth fund now you have people participating in the market. that is a good thing from my perspective. uber taking a billion dollar shot on alcohol delivery start-up drizly. >> it comes down to screens. that is the next leg in the delivery wars, uber is essentially playing catch up with drizly.

they have fallen behind door dash and go pub in the third party goods delivery market with just an 8% share drizly gives another vendor to plug into the police man but that authored has had mixed results under the ceo. wall street likes the news uber up more than 7% today >> lots that we have been discussing that sound out. uber is a great service. it alougs you to get out of the oddity in new york where you can't buy both beer and wine this the same store. it maybe exposes again a new york specific factor of a massively inefficient product where the same product can be differently priced in different liquor stores. my final point, which kind of brings it back to the market is it is a service you think will

suffer significantly when lockdown ends. mike, it is a relatively expensive price -- yes, all stock, but relatively expensive price compared to their revenues. >> i think, yes, there might be some incremental demand that the current service enjoys -- because on demand convenience is a bigger deal. i think that's why uber decided to have a little bit of a food foot hollywood in this area is this it is also taking a category that was virtually zero, spending in on line alcohol and coming up into something and seeing explosive growth even if we can't see numbers like this continue even know we know wilfred is a big buyer. kourtney, what do you make of uber they doubled down on eats, buying post mates, and buying this and getting out of some of their other strategic bets

during the pandemic. where does that leave them coming out on the other end? >> i think uber is doing exactly what i would want any growth company to be doing in the market right now and that is investing, investing, inest having for the future they could have sat back on their laurels and said you know what, uber eats is doing well. i am going to stick with it and we will focus on that since the ride haling businesses that sloan down during the pandemic no they are thinking where can we invest our capital they have investments outside the u.s. and then the innovation front. i am thrilled with what uber is doing in continuing to reinvent itself at the beginning of the pandemic people thought this stock was going to zero. look at where it is today. >> it has been a big shift speaking of, amazon headlining a big day for earnings after the bell let's get to deirdre bosa for a preview. >> amazon is set to join the $100 billion revenue club tonight. that's an exclusive one.

it only counts apple and walmart among members currently. amazon, without the fourth quarter 2020 was already amazon's most profitable year ever that's as it spend billions of dollars on covid relief and further rolling out its one day shipping model up heading into earnings. >> down almost 10% since the last earnings. kourtney, i wanted to ask you whether these trends will continue post pandemic, just the amount of e-commerce shop asking buying and whether companies like a lulu or amazon are thinking in terms of guidance whether the online shopping boom continues or whether people go back to the way it was. >> sara, i amabsolutely a very

proud member of lululemon. what i am most proud about is how the management team really took the bull by the horns and adapted to the new structure an line and e customer r commerce for those companies that did a great jobbist approximating they will see long term growth that probably most wouldn't have expected when you think about an amazon or retail in general the market is less than 20% penetrated at this point, right? with amazon you think about aws and haek haem are not on cloud cute -- computing. now amazon is in the 100 million dollar club. on the euro chart, tiny pick up nothing too major but cnbc can confirm that former ecb chief

draghi has been summoned by the president of italy and likely been invited to form a government as prime minister the government recently brokedown. the euro bulls want the see fresh elections avoided and draghi seen as someone who might be able to bring together various factions as he is not a distinguished member of any of the political parties. likely he will be invited to form a government, having been summoned by the president. the euro taking a little bit of a step up on that news we just need mark carney to become the canadian prime minister and janet yellen is back in the game all good mike, two minutes left internals. >> i think markets in general would like to avoid elections whenever possible as long as possible not possible here. look at breadth. better than three to one advancing to dee kleining in the new york stock exchange.

look at the volume split not nearly as impressive why? because half a billion shares between game stop and amc on the new york stock exchange are to the downside other than that it would be a strong breadth day but it is going to muck up some peoples's calculators. the vix having a crush in volatility down to 26 back into the range it was before this blip looks similar to what we saw in november around the election that really sharp shot higher and then a quick deline. net bullish. >> 45 seconds until the end of the session. off the highs but still a gain dow up 480 points. 1.6% nasdaq also up 1.6, s&p 500 up 1.4% that takes the gains for the week over two days for the s&p 500 to about 3%. all 11 sectors are higher. health care is at the bottom

at the top, financials, industrials, consumer discretionary, all three up more than 2%. dollar off ten basis points. silver down 9% ten-year up to 1.1 the likes of game stop down sharply. game stop itself is down 60% at the close. s&p up 1.4%. off the highs but a healthy session. as it was yesterday. >> nice back to back gains for wall street. welcome back, everyone, to "closing bell. i'm sara eisen here with wilfred frost and mike santoli, cnbc senior markets commentator look at how we finished the day. dow closing up by 476 points 176% biggest impact on the dow was goldman sachs. financials were the best performing sector in the entire market we talked with mohammad al aaron

about the yield curve steepening every sector closing higher. the s&p up 1.4 overall nasdaq also rather rallying thanks to big tech names like tesla which was one of the big contributors, up 1.5 and the russel up 1.1% everybody is higher for the week keep in mind, we were coming off the worst week for stocks since back in october. we have a lot of earnings coming out this hour, amazon, alphabet, ea, chipotle we will bring you the numbers, have instant reaction and tell what you to do with the stock exchange courtney stays with us -- joins the conversation. mike santoli to you, first what does it tell you. >> actually, five or six days in a row you have had a little bit of a fade into the close

it hasn't necessarily told you how the next day was going to go it is a positive to have two back the back gains. you can go back into what are considered to be more reliable mega cap growth stocks yes, it was broad. i think you want to withhold judgment whether it is back to that same upward slanting market because really we are back to where we were not even five or six days ago and we will have to see how woe absorb this little two-day pop >> kourtney. as far as -- you said you were looking at the opportunity to buy some stocks that had been beaten down, some of the hedge funds rerisking as a result of all of this short retail sales action, short squeeze. what kind of deals are you finding? do you see opportunity there. >> we saw what financials did.

the xlf has made all-time highs. i am a huge proponent. i definitely love financials and i love tech. there are companies that blend the two together even if you didn't play in game stock there are names that actually you can be in that are going to do well and did well due to with a? real tilt, markets moving. when you think about volatility and volumes trading, there are tremendous opportunities in the marketplace. or you could go traditional banks. i have loved them for a very long time. i bought more bank of america -- >> courtney, my apologies. i want to jump in and get to the alphabet numbers crossing over revenue $56.9 billion. the forecast was for $53 billion. eps coming in at 22 .30 per

share, forecast for 15.90. a nice beat on both lines. on the individual lines. rfrs revenue coming in at $52.8 billion. cloud coming in at $3.8 billion. the forecast there was for $3.8 billion. that's largely in line with expectation. sara, top and bottom lines, nice beats, up 4% in after-hours. >> just want to point out some news on amazon which is also moving after hours as we get earnings big announcement it looks like they are going to be a ceo change at the top of amazon this is obviously huge juice. andrew jaffe going to become amazon's ceo replacing jeff bezos, who will be the executive chairman obviously, bezos the founder, long-time ceo. the stock is down 1.5% after

hours. we will dig through the earnings as well. but that's a huge sort of news item, mike, as far as ceo change, hard to imagine a bigger deal than amazon. >> absolutely. tremendously big news. i don't think it was necessarily handicapped. reminds me a little bit of when bill gates roughly 20 years i think after microsoft's ipo step down from day to day control of microsoft. not surprised to see a little bit of a reflex lower in amazon. executive chairman, he is staying on as the biggest share holer, i am not sure it changes the broader picture. >> i was going to bring up the point on aws, on the move, higher now afterhour he ran aws a long time that's cloud business.

it is the profit driver for amazon growth moderated as it faces competition from microsoft and google all trying to capture market share from cloud. analysts point to the market share reach of retail in particular and what they have been able to do with how we shop, e-commerce during the pandemic what they have done with grocery. deirdre bowsa has more on this shakeup. >> i am just looking right now at this memo that jeff daze owes issued to his fellow amazonians. he tends to focus on new products and early initiatives and he says, as we well know he is well-known within the company. he has been at amazon almost as long as jeff bezos bezos says he will be an outstanding leader and has my pull confidence. i am looking through this right now. he says as well that they

decided to use their large scale and scope to lead on important social issues. he says he finds his work leaningful and fun he said as much as i still tap dance into the office i am excited about this transition. i would say, you talked a lot about andy jassy is well-known -- he led and really created aws which gave amazon a seven-year lead in the cloud that others are still trying to catch up to. there were concerns a couple of months ago when one of the top executives stepped down, jeff wilkie andy jassy has always been the one, the person that many people looked to that has really helped bezos build the company. but it is surprising this is happening now because bezos is still young and he tap dances to

the office i am not sure anyone expected him to retire this quickly now i will dig into the financial results and bring you knows as soon as i get them. >> i have been doing that while you were reporting there aws, slully a slight miss this corn but year every year in terms of gains revenue coming in at 156.6. a $5 billion beat. doubling their eps estimate. it was 723 came in at 1409. going through the individual lines quickly. aws revenue was forecast at 12.8, came in at 12.7. international revenue kaem in nicely ahead of forecasts 37-4, the forecast was 32 low pressure 4. and it was really on noorgt

american and international sales that was beat on the revenue line looking a of the the guidance as well for q 1, revenue guidance was expected to come in at 95.7. they are giving a guide of 10 to 106 biological for q one a nice beat there. interesting to be interesting if i dig in deeper to see whether the eps beat has come through. they were forecasting $2 billion in covid costs for the first quarter. i have got to dig in and see if i find that for the past quarter. anyway, strong beat on the top and the bottom line. >> in terms of revenue guidance for the current quarter above the consensus forecast, it is a company that's not overpromising on a forward looking basis not the biggest quarter on

retail anyway. >> jon fortt able to join us nice numbers, but no doubt you are more keen to reflect on this pretty significant news on the change of the ceo? >> andy of course has been at amazon for nearly 25 years and he founded amazon web services in 2003 and now, i have talked to him many times about the founding story of aws, about his relationship with jeff bezos i think it's interesting that just a few months ago the head of amazon's consumer unit, which is the more traditional amazon.com part of the business -- he stepped down. now andy jassy is being elevated to this position it goes to show just how

important this cloud business has become to amazon overall of course was born out of the core needs of amazon's e-commerce business and the thought that, boy, they could use this same infrastructure and the same flexibility that they needed to change the game for enterprise software and enterprise infrastructure in general. now that expanded in so many directions they are innovating in hardware, driving a lot of what is happening not just in the enterprise but even in the chips business this move from amazon is being and andy jassy has in some ways been underaappreciated in technology over the last 20 years. but he has been pretty well appreciated. i will say. >> certainly appreciated by his boss, becoming ceo i want to highlight we are keeping track of all the after-hours mafg apple is up 7% on a earnings

beat chipotle is flat you can see them on the side of the screen jon, the big news here, jeff bezos handing the reins to any jassy. this is a stock -- i mean we have to talk about jeff bezos and what amazon looks like without jeff bezos, who is the founder, right famously started in his garage, had the vision that a lot of people on wall street didn't see. then they did and then they rode that wave. it was a tremendous one becoming not just the most important online retailer, buyer of whole foods and now major cloud player john, what does this company look like without bezos running it >> i will want to hear more about exactly what bezos is

going to do. you know, he's stepping down from the role as ceo i would be shocked if he steps away from mz entirely. i just don't believe he's capable of that. more detail i will want to hear. keep in mind larry he will fin hasn't been the -- [ no audio ] >> may have just lost jon fortt there. we will get him back up and make sure we come back to him meantime, dear great bosa has been looking through the release and has that news for us. >> in this memo he says as executive chair he will stay engaged in certain initiatives but he also said he is going the use time and energy to focus on some other products including the di one fund, blue origin his space company and the "washington post." he says among my other passions.

he said he has never had more energy and he is not retired in the last few years it was you don't bet against amend and jeff bezos. what if he is not there. i think it has to do with the bench of talent he developed andy jossy is there. we have seen several go to start-ups over the last couple of years one went to airbnb so there has been a little bit of a exodus but they are able to keep a tight circle. that's why it was a shock when jeff wilkie left late last year. it is a way of keeping him in the company. he is important. >> interesting, snapshoting this particular quarter, aws revenue

12.7 rrz the oettle revenue over 157. aws is a tenth of the revenue. operating income, approximate.8 million, the total for the quarter, 4.5 it is a huge part of the multiple exchanges but skills one would need versus to be crude a retailer >> you would think although it is all mostly systems and data centers and deciding on capital budgets and deciding how aggressive you want to be getting out there. it is a faster growing segment of the overall economy rather than services and top line retail that's why you have the growth without a doubt it is a bigger job. i think what jon was going to say, he was pointing out bezos becoming executive

chairman, and larry ellison six or seven years ago stepped down as ceo of oracle but has remained there as a presence there have been khouw ceos ahead of him there are ways to have more or less involvement in as a chairman i depends how much is actually cede to the new people. >> jon, we were cut off earlier. what were the thoughts you were finishing off? >> i don't have to say anything. mike said it that's exactly the point i was going to make is that larry ellison hasn't been ceo of oracle for white a while but is very much present and influential at that company. you lock at bill gates stepped back from the ceo role but still had an outsized presence at microsoft for years. there is nothing like a founder. there just really isn't. and jeff bezos is such an integral part what have amazon

is, his presence will sooning felt there he has been doing a lot of different things for a long time i want take this as a mund shift in what amazon is or necessarily how it is focused. i think it is a statement about the value of aws and the things that amazon has been innovating in there about you think about the scale of it -- yes, if you are just looking at revenue, that's one thing. but the retailer part. i mean the gross revenue there is an entirely different beat than what you have got in aws, infrastructure, platform as a service, building out server and networking infrastructure. it is data base now. it is chip designed earlily. really there are a lot of areas where amazon is expanding and could expanther panned under

and andy jaffe -- jassy. people have to understand the scale of what is happening in seattle. intentionally saying seattle because it is amds amazon, microsoft, and lately a lot more than that. it is impress oif. >> amazon now unchanged. down a little bit after-hours. we need to hear from an investor kourtney even if what john says is true and it sounds like he plans to stay on as executive chairman and won't be far away. without him running the day to day business, does that change the investment thesis around amazon >> look, as the founder of that company i highly doubt that he would have put someone in that seat that could not do as good if not better than him andy has been there 25 years that's a long time when we talk about skillset and talk about managing a business, i am sure that he has had a

tremendous amount of exposure across that business, and influence one might not even know that he has had i think this is an incredible had boy jeff, by the team at amazon by their board in positioning them for the future. i don't know about you, but it is not going to change my decision to have 15 more amazon packages delivered the my house tomorrow let's put this in perspective as to what amazon as an institution is and as an investor. as a brokerage firm on behalf of a number of different international clients no one is running a fire sale on amazon due to this news. >> peter remind us what the valuation is like. i guess an impressive beat on the bottom line for this quarter. >> i think for amazon, we are about 80 times 2021 earnings i think the reason whether the jassy move is so important and

astute on the part of the company is we have to think about what comps are going the look like for next year. i mean a lot of demand and a lot of activity has been pulled forward due to the pandemic. and the businesses that made tremendous maybe two or three year's worth of progress in just a year so i think the really interesting part this is that it focuses left issors on the future on the business that's growing the pfastest and away from what are going to be interesting comps.amazon announy will become ceo. let's bring in tom forte he has a buy rating anon it.

first to you, tom, interesting watching the share price reaction understandly people negotiably worried at the fact that jeff bezos might be stepping down but the executive chairman role. he will still be there what is your take on andy jassy. >> amazon is declaring that it is a services company. you think about aws, you think about retail as a service, empowering third party sellers to sell products on amazon, delivering those products on behalf of third party sellers. so i think that this is a declaration that amazon is a services company when you go back in its history, when it launched aws and embraced a relative strong marriage versus their first-party retail business that is why the stock is where it is today. i think andy jassy can lead the company forward as a services

company. >> in the statement, amazon called it an optimal time for this transition. i think jassy was always seen as an heir apparent why is it happening now? >> i acknowledge it happened earlier than i would have anticipated. looking back, when jeff well kyi retired i think that tipped off that jassy was to be the heir apparent jeff bezos is happening off the company when it is incredibly healthy. he is giving jassy a very strong amazon amazon, if you think about it, is potentially at a turning point when you think about what they are doing in health care with amazon pharmacy w testing their employees for covid, with clinics for their employees' families for quid. again, i think it is a declaration that long term amazon is a services company. >> ed lee, clearly, jeff bezos

still going to be executive chair. also the release says he will have time to focus on the day one fund, bezos earth fund, blue origin, "washington post." and other passions he is going to remain a very busy man of course. >> he will be a busy man founder life companies are founder like for a reason. i am going to take it a step further and ask how much of this leadership change is a de facto versus a du jour change? in other words these other interests are things he has always spent time doing. day one, it is a key phrase for him. every day is day one, you cannot rest on your laurels, you have to continuously innovate and come up with new things.

he's been the guy at the top who can sort of do the more fun stuff, right, innovate very much in the vein of how start ups, even long running startups have been running i think maybe there is a formality to what has already been that way the thesis on amazon shouldn't change for that reason, if anything it is more official you are going the look for more -- he was interested in drone deliveries for a while look out for more crazy and fun ideas from him, i think amazon benefits from this more official change from what he has already been doing. >> maybe why we are not seeing a huge reaction in the share prices mike, what do you make of it it is down half a percent or so. would you expect it to be more given how intertwined bezos is

in the business that is amazon >> i don't know that i am surprised. i don't think it would be expected to be down that much more, probably because it's considered to be just such a powerful machine, and that -- jeff bezos's culture that he's created there, i mean you don't even have to be part of the company to have memorized the letter to share holders from the 1997 prospectus. i think it has become a cult of how we do things i don't think for those reasons it is going to change course there has been one line of criticism out there, as we look at all the other things that jeff bezos has been interested in devoting time and resources to, asking the question is he more outward facing right now, paying attention to other things he obviously got a divorce

there has been the whole thing about a headquarters contest, where are we going to move and more showing up at hollywood industry stuff i don't think people wanted him out by any stretch of the imagination with you i think already there was a sense that it was less nose to the grindstone every day and that basically the company is what he built and the culture is what he constructed. and i think he can have some faith that's going to persist. >> tom foley, aws has the highest profit margin. should it be a focus for him to improve profit margin in the other areas of the business ahead into absolutely. you look at their efforts in advertising, at their efforts in enabling third party sellers to sell on margin which is a higher effort than first party stails sales on amazon. i think again amazon as a services company will benefit from a higher margin than the original amazon retail hear the we think about >> andy jassy becomes the ceo of

amazon, the head of aws. thank you, everybody, for weighing in, we appreciate it, tom, courtney, ed, lee, mike santoli, the works coming up, more on this decision, amazon's stock move, what it means for the future of this company, amazon getting a new ceo. plus, an analyst who sees more upside for this stock moving sharply higher on after-hours. we'll be right back.

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busy news afternoon here after-hours movers all around. amazon with the big news that jeff bezos is stepping aside as ceo. andy jassy will become ceo bezos will become executive chairman the big mover is google. parent company alphabet on the back of strong earnings. wanted to hit alphabet for a moment we have been so focused on amazon it was a big profit beat looked like a wretch beat as well as the ad business comes back from the depths of covid. >> yeah. >> what do you see the stock came into the report at a high. it was outperforming the other faang names. i think it has the benefit of having comeback potential because the ad market should get better but i always say this, pretty much every quarter you can say we have never really seen

companies at this scale that are growing 23, 24, 25% wretch and operating income it is this kind of business advantage has the market was paying up aggressively for when we said there is only five stocks in the whole market that's all that matters. i think it proves it here when it came down to alphabet i think there are probably going to start to be questions what is it going to do with its cash it is rivaling apple in net cash it is conspeck use it does in the have to spend very much on capital versus what it takes in and doesn't pay dividend isn't all that aggressive on the buyback side a longer term thing. >> ed lee from the "new york times" can us. clearly great numbers driving the stock higher interesting to see the google cloud number $3.8 billion of course for amazon, the cloud

is the most profitable part of the business for google coming in a.12 billion loss on google cloud which is slightly more than the loss a year ago in the same quarter. interesting there that it is not delivering a profitability yet though clearly the advertising business is in this quarter in particular when you consider both aws and google this the cloud performance, microsoft the winner perhaps this quarter in cloud? >> definitely. alphabet or google cloud need to spend more now to catch up i mean they are gaining steam but they are a distant third to amazon and to azure. i think that -- you know, that investment i think is absolutely key. the fact that advertising came back really strong in the back half of last year is certainly helping them not just alphabet, but facebook all digital players. i have done channel checks of my own with media buyers. what is happening partly is that a lot of the money that

traditionally has been spent on tv they are really just now moving into digital at an accelerated rate so of course alphabet and facebook always benefitted from it but they are now benefiting each more as are. so of the smaller digital publishers as well expect that to continue. what we want the hear from on the call is more color on how they see their cloud business. they need the market share how much more they plan to pump into that. >> going back to the amazon story, ed lee, thank you very much, we will keep an eye on the after-hours movers also want to check shares of chipotle, falling after missed expectations on both the bottom and top line joining us an allist who is overweight the stock given the backdrop, the stock had run up so much, near the highs. this was a miss, what happened

>> i think the stock price movement is just high expectations any, you know, opportunity to buy it lower really be action oriented in that way the comp when you round it was in line with consensus 6% comp is really what the street was looking for what is going to be important on the conference call is what we say in the comps january ask the algorithm. they are producing higher volumes with digital efforts, how much can thee juice the margins with the benefit of bigtal. >> is this a reopen stock or has it benefitted a lot from being great digital and deliveriwise during the lockdown. that's a great question. the stock did well when we were let's say closed because they were proactive versus reactive a lot of that is the operating structure, the ownership mix and the balance sheet. i think about it this way. the last year or two of the

stock working and the performance was about recovery going forward, it's absolutely about unit growth. and it is going to be the single largest or really only growth stock in terms of large cap restaurants. so it will dominate in that way. >> she's a buyer nicole thank you very much for weighing in on a busy news afternoon. nicole miller reagan on which i boatly. up ahead, more on the big story of the hour, amazon ceo jeff bezos announcing he is 'lbestpi dn. wel right back. sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh]

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we are back. time for a cnbc news update with rahel sol snoo >> hello wilf. here's what's happening at this hour, everyone >> may yorka has been confirmed secretary of homeland security he is the first immigrant and first latino to lead the department. another spacex rocket test ended with an explosion. it launched sufficiently but failed to land evenly and weapon up in flames the cdc reporting 550,000 new

quooid vaccinations today. half of yesterday's figure nearly half of the vaccination sites in the northeast were closed due to a massive winter storm. italy's next president may be former european central bank president draghi. >> all over that one whatever it takes. rahel solomon thank you. josh lipton has more on alphabet's quarter the stock is surging what can you tell us. >> beating on the top and the bottom, surging 23%. had the chance to catch up with the cfo. we talked about the trends and themes she saw in the quarter. she talked about an increase in advertiser activity in the quarter, customer she says unlocking budgets they had paused earlier in the year an increase in consumer on line activity called that notable strength in search and youtube

google cloud, wretch there up nearly 50%, that business losing about billion in the qur i asked her what the pathway to profit is in that category. she said they are in investment mode infrastructure and salespeople margins will improve as they benefit. competing with microsoft and amazon she says the d.o.j. lawsuit is deeply flawed. people use google not because they can't find alternatives the conference call kicks off at 5:00 p.m. eastern. back to you. >> interesting the get that reaction on the answer trust suit josh lip ton thank you. up next, much more on this big story, amazon, jeff bezos is stepping down as ceo andy jassy of the cloud business taking over. we will talk to a friend of andy jassy and former amazon employee when "closing bell" comes right back

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redefining insurance. big news this hour leadership change at amazon. jeff bezos will transition to the role of executive chairman in the third quarter, aws chief andy jassy will become ceo joining us, bill carr, former media executive at amazon.

also author of a book about amazon, working backwards. it comes out next week how surprised are you by this change >> it is pretty big news quite the end of an era for a man who will certainly go down in history as one of the greatest business leaders of the 20th if not the 21st century. >> what was your position there? how well do you know andy jassy? >> i know andy well. i joined the company back in 1999 and i became the vice president of digital media in 2004 so my role was one of the founding leader of what is today known as amazon music, prime video, and amazon studio so i launched and ran those businesses for a decade on a worldwide basis. during that decade i worked closely, day in and day out with jeff bezos to help formulate the vision and the details of those big businesses .

>> so bill, talk us through if this is a blow to the company or a step up given that you will have jassy in this role but still have bezos as executive chairman >> well, it's -- i think you will see a continuation from, you know, where they are so having read the letter that jeff shared with the company, it sounds like he plans to devote most of his time to working with the company on their new product innovations. and, you know, honestly, he -- beginning in 2004, he was spending a substantial pouring -- portion of his time working with my team and my boss steve cussel in digital media and then working with andy jassy to help formulate amazon web services. i think that's probably been how he has been spending the majority of his time since all the way back in 2004 andy yasy is an amazingly talented executive look, he started and launched and ran one of the most

successful businesses in the world today, amazon web services the company is in great, great hands with andy jassy and his leadership. >> i also want to bring in our reporter on amazon who has covered amazon and jeff bezos, deirdre bosa out west. there are books written about jeff bezos and i am sure there will be many more case studies there are questions here questions whether the work remembers going the yunnize, questions about the treatment of warehouse workers during the pandemic of course and of course some political questions as well around anti-trust and whether amazon for instance rips off some of its third party sellers or prioritizes its own. how is andy jassy going to be able to take all of these on and how big of a risk or threats do you see these as. >> it is a good point, sara. while this is arguably the most successful phase in amazon's history it is also one of the most challenging

unionization labor issues, anti-trust issues. but when they history books have been written about bezos, jassy does play a major role you would think he would be well equipped having worked alongside jeff bezos for years i talked with another officer of the company, he said that andy brings his own skill set, he is a visionary leader in his own right, he understands what makes amazon a special place he says there will be continuity he said jeff will have input on all new businesses in what he calls a one way door decision. those decisions are not reversible, unlike two-way door decisions. amazon lingo then we wonder who will take

over aws, the cfo said they are not announcing anything as to who will head up aws he said they will work out those details between now and the third quarter when this leadership transition happens. on some of the covid costs which have been billions over the last year those are going to shirt downwards in the first quarter he says that's mainly due the volume, they are expecting volumes to drop by 25% from q 1 from f 4 the call is still going on i will hop back on and bring you anything else. >> bill, to round things off, what do you think are the best skill sets that jassy has? and some he might not have you said you worked with him closely and he is a friend of yours. >> andy is an extraordinary leader, as the reporter commented. i mean, he's worked with the company for more than 20 years

and worked side by side with jeff during this period of time. look, he and his team have invented an entirely new category caught cloud computing. a category that back in 2004 thou one would have thought amazon would have any right to participate in such a thing. it would have been the place of oracle or ibm or microsoft you know, he's created a runaway hit. so he's an incredibly inventive leader he is an incredibly detail-oriented leader who dives into all the salient details of his business he knows -- he knows how to manage she's a shrewd operator. he's going to be a great leader for the company. furthermore, both jeff and andy and the men other leaders of the company have spent the past 20 years building a whole management science, really, when we call the amazon invention

machine in our forthcoming back we call working backwards that describes the scaleable repeatable processes that enabled the business to grow and scale and manage the diverse set of businesses all around the world. i think andy going to be great. >> bil perspective. thanks for jumping on the news line with us >> my pleasure thanks for having me on. >> shares of alphabet also moving up next we'll dig into the numbers. plus an analyst's take a busy closing bell will be right bark dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack,

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. up next, annagist's take on amazon ceo change. what it might mean for your money. closing bell back in a couple.

a bloke buster hour for news headline by the leadership change at ceo. jeff besos will become the chairman andy jassy will become the ceo in q3. alphabet stock up. decent beat on both lines. price target of 2150 first of all, your reaction to the amazon leadership change news >> i think it's not a shocker. he ran the business to one of the biggest software business on

the planet they're using it to underpin their back end this is the bulk of the profitability for amazon it lets them experiment in the other segments of the business that are less profitable like retail so we think ultimately this is a great move i don't think that really much is going to change obviously, if you're a software individual, which i am, we're excited, because this is the recurrent visibility that calm me -- we think this will firmly establish that they're going to spend aggressively against microsoft and google he's an incredible leader and what'd they've built in aws is hard to kpre hence given what they did in the face of all these other tech giants that were chasing them that were really software dna. >> what did you make of alphabet

numbers? >> phenomenal. best top line in two and a half years. best bottom line in three years. azure outgrew the glooulg cloud, so microsoft's taking share and the azure number is bigger than gooumg this is a cheap stock. we see it going higher on a 15 times even thatbidta both are back to the big news on amazon you mentioned you were excited as someone who covers software and someone who knows andy jassy and the juggernaut he's built inside of am don, but the bulk of the company is retail right? they own whole foods

so many aspects. what does the appointment and the future look like fore that, which has been in such a great growth period because of the pandemic and does face some tough komps as wez come out of covid. >> yeah. look, the retail business is phenomenal we think it's long lasting we believe they're in great shape. there is going to be a deceleration in the retail business and that's why the softer business is so important. the revenue gross stream, that they've been recording between 40 and 60% backlock gives them encouragement that the slow, that it continues to power forward with high margins. again, average sizers are flocking to this it's a high margin business. again, we don't want toe

reemphasize the retail business. they're not going to lose altitude because they have all these other businesses that no other retailer has >> thank you for joining us. much preached. reminder that during the actual session game stock closed down the nasdaq was up. we're out of time on closing bell bell. "fast money" starts right now. >> this is fast money. guy, tim, steve, and bonneau tonight on fast we're tracking the alphabet, amazon and chipotle stocks on the move. we'll break it down straight ahead. plus break out your rally cap. the best day since november. find out why the yolo game goes bust. getting back down to earth