begins right now good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin, and we've been watching the u.s. equity futures this morning. yesterday you saw the dow and the s&p 500 close down ever so slightly, and i mean ever so slightly, for the dow it wasn't even a tenth of a% for the s&p, it wasn't a tenth of of s&p 500 indicated up by 13 points, dow futures close to 100 points, and the nasdaq indicated up by 62 let's look at what's been happening with the treasury market it looks like the ten-year note is yielding just about 1.16%

guys, you think it's also interesting to point out something about the short interest on the new york stock exchange it actually dropped in the last couple of weeks of january as you saw the rise of the reddit traders and the real chase, squeeze on the short sellers if you were looking at short interest, it was down by about 5.7% from $13.7 billion in short sales as of january 15th, to 12.93 billion as of january 29th that tells you a little bit about how much tougher it is to be a short based on all of the action that we saw. >> just on a couple of names, probably probably the rest of the market is just basically short. you know what got me today, guys, was in the journal, they did a great piece on where junk bond yields are, below 4%. for the first time. >> i saw that. it was a record for the first time yesterday >> and then in that piece, chicago public school junk bonds less than 2%, city of detroit

junk bonds, less than 2% so this is just -- >> that's a bet on stimulus coming to bail it out. >> add this to the list, don't we add this to the list. >> yeah, in fact, somebody did add this to the list who were we speaking with that was talking about just that, nick reader, maybe, was he the one warning us about what's happening with junk bonds, it's getting to these levels. >> isn't it another check mark, just so much money chasing whatever it can do at this point, i think. >> i'll give you mine since we're going around the horn here colin kaepernick now has a spac, did you see that >> i saw that. >> i did not see that. >> due diligence, right? >> god bless him once again, we're the last to get on board for the "squawk," i can't say it, though. >> "squawk" spac. >> i think we're probably about

six to twelve months too late at this point of the ball game. maybe not. we'll see. >> the spock or the "squawk," i don't know, everybody's doing it >> we asked him yesterday, zell, he's got one did we figure that out he's got one, so i don't know. i don't know these are the kind of things that, in hindsight we go, i mean, come on, maybe they are, maybe they're not. no one rings a bell. no one rings a bell. but city of detroit bonds, less than 2%. on the squanner, on the "squawk" planner. >> let's tell you what's going on we've got january consumer price index data coming up at 8:30 this morning fed carry jay powell is going to be speaking this afternoon at the economic club of new york.

and then on the earnings front, coca-cola, and under armour report around 7:00 a.m we'll get general motors coming up at 7:30, after the closing bell, we get to hear from mgm resorts and uber and dating app bumble's ipo expected to price tonight. that's on our agenda meanwhile, in washington, the second impeachment trial of president trump continuing today. yesterday, the senate voted that it is constitutional to impeach a former federal official. 56 senators voted to continue with the trial the latest sign there won't be enough votes to reach the conviction threshold of 67 in other senate business, the budget committee will hold a confirmation hearing for neera tanden, president biden's nominee for the office of management and budget, and the ways and means committee to consider covid-19 relief measures, part of the budget reconciliation process the democrats are using to advance president biden's covid stimulus

package, joe looking forward to later in the show for the lyft ceo, and corporate news, shares of lyft are soaring. the company said it could become profitable on an adjusted basis by the third quarter of this year, three months ahead of a previous target. cost costs were ahead of schedule, coming in ahead of schedule expects a strong summer rebound as vaccinations for covid allow more people to return to pre-pandemic normality, whatever that looks like. for the fourth quarter, lyft reported a loss. in fact, it was much smaller than expected and revenue that beat expectations. joe zimmer will join us at 8:30 a.m. eastern twitter shares are higher this morning after earnings and revenue beat the street's estimates. twitter estimated full year revenue would grow faster than cost user growth of 27% missed

estimates. the company warned that rate would slow in the coming quarters, as a boost from the pandemic fizzles it was also the first earnings call since the platform banned former president trump and here's ceo jack dorsey last night on the earnings call addressing that. >> we are a platform that's obviously much larger than any one topic or any one account 80% of our audience is outside the united states, and we have more than 50 accounts with over 25 million followers conversations on twitter every day are based on what's happening in the world, and we have proven in the past few years if we do the work to serve the public conversation, our daily audience grows >> twitter's cfo ned segal is going to be joining us in a first on cnbc interview. that's coming up at 8:45 a.m. eastern time this morning. andrew. sister shares have fallen, let's take a look at where we are, down about 4 1/2%, the earnings and revenue beating estimates but revenue from the

key infrastructure platform was down 3% from a year ago, and revenue from the applications unit, that includes web x video calling, that was flat the company warned of potential supply chain head wind as well related to the global shortage of semiconductor chips cisco ceo chuck robbins is hanging out with the gang on the street at the 9:00 a.m. hour so much coming up on "squawk box" this morning, we'll talk bitcoin trading in striking distance of its all time high, and the potential catalyst that could drive it above 50,000, and the role of business leaders under the biden administration after the president met yesterday with ceos. "squawk box" returns right after this

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welcome back to "squawk box" this morning tesla announced earlier this week that it bought $1.5 billion in bitcoin and will soon be accepting the cryptocurrency as a form of payment for vehicles many are wondering if other companies are going to join in on this trend. joining us to discuss all of this and more is gray scale ceo, good morning to you. >> good morning. >> there's two pieces to this. one is a big corporation like

tesla investing in boitcoin itself and then there's the separate component part, which is using bitcoin for payment i want to start there, if we could, for a second, which is to say, are you of the view that people are going to use bitcoin for payment, and i ask because if you believe that bitcoin's value is going to continue to go up, if it's considered an investment, it's unclear to me why you would necessarily trade the bitcoins now for a car chamath palihapitiya was on twitter yesterday showing off a piece of real estate that he traded at the time for what he thought was $1.6 million of bitcoin but in fact today it's something on the order, the piece of property he bought for $1.6 million, he effectively gave away $128 million with the bitcoin. i'm unclear why people would actually use this to buy their car tomorrow >> tesla is the not the first company to announce they are going to take payments in

bitcoin. i think we have seen this quite a bit certainly over the last seven, eight years that i have been involved in the ecosystem, and really for most companies, it's opening up yet another avenue for additional customers or additional ways for people to pay them how successful or, you know, what percentage of tesla sales will come in through bitcoin obviously remains to be seen. >> okay. so i'm less bullish on that component part what seems more interesting to me is the idea that the treasuries of major corporations are going to start buying bitcoin, we have talked about it, actually doing it through gray scale and other places because of some of the custodian issues what kinds of conversations are you having behind the scenes with other companies >> i think the important thing to remember if you're a corporate cfo or treasurer or even a leader like elon musk, we're not surprised to see this happening. they're looking at bitcoin either as a reserve asset or for the diversification benefits that it may provide, and a lot

of corporates with going -- are going to move into this. we saw this in 2020, and i think a lot more to come in this year. it's important to remember this isn't for a quick trade, right, these are companies trying to navigate a low rate environment, looking to shore up their balance sheets and they're going to be invested in the longer term >> michael when corporate treasures or cfos call you, and i imagine you're having these conversations, i don't know if you can speak to any of these conversations, i have to think that there's some dialogue about valuation, right, you have to say if we buy now at 46,000, is that a fair price, what kind of volatility are we going to have. how are we going to run this, by the way, on our balance sheet, given the volatility, quarter to quarter, what kind of investment

are we going to consider this, right? >> they're not betting the entire asset, it's relatively small positions on these balance sheets, a lot of these companies have massive stockpiles of cash. they believe there's a lot of room for growth. a lot of companies are looking at despite the massive price run bitcoin has had, it represents less than, for example, 10% of the market cap of gold, and so they do see it ripe for opportunity. >> i'm appreciative of all of the arguments in favor of bitcoin, i'm trying to get at it, and if you could try to take us a little bit -- are people not calling you? >> oh, certainly we're not only having conversations with hedge funds and endowments but now certainly corporates as well. >> so when the corporates call you, i imagine there's a conversation there's got to be a conversation about value. about where it is now. what the volatility is going to look like.

how it's going to be accounted for, right, if you're a publicly traded company, accounting for this becomes an issue, especially if there's going to be volatility. help us with those conversations. >> sure. conversation point number one starts around regulatory concerns, and actually most of those conversations are characterized by a lack of regulatory concerns. a lot of the folks making decisions around this realize how much regulatory clarity has been provided around this. i think the second piece of the conversation is around sizing and timing, and so you're seeing corporations think about anywhere from on the low end, maybe 25 basis points to on the higher end, maybe 100, 200 points over time and they recognize that they don't need to get invested all at once. they have seen other corporations, like micro strategy, leg into this trade over time, and they ultimately believe in the growth of this, so buying bitcoin, whether it's here, 10% higher, 10% lower

ultimately is not going to matter if they believe bitcoin is going to do or have the type of growth bitcoin is going to have over time, and the last piece has to do with portfolio construction where does this fit on their balance sheet. are they selling treasuries to make room for this are they, you know, taking cash out in order to buy bitcoin. where is this going to fit in their balance sheet. i think that becomes probably the biggest challenge for most investors. >> and that's a critical issue companies say should we be being back our own stock or bitcoin. that is going to become one of the alternative trades, if you will >> in fact, i actually wouldn't be surprised to see there almost being somewhat of a race now you have elon musk, you have michael sailor, jack dorsey, you're going to see a lot of visionary leaders and disruptive companies realizing that it's really moved from why to why not, and see which companies are

next to get involved in having bitcoin as part of their treasury program. >> from a technical perspective given we're at $46,540 right now, wouldn't shock me, by the way, if this thing breaks 50,000 given the rapidity of where things are give me the up side and downside for where we are right now in relatively short order if you could. >> well, you certainly know that i can't make price predictions, but if flows are any indication of investor interest on the heels of a record breaking 2020, very pleased to say and encourage that that momentum is not only continuing this year but is actually accelerating, so we're seeing very very sustained and growing demand from a lot of institutional players at the moment >> okay. michael, appreciate seeing you this morning, your perspective as always is very very helpful, especially in moments like this. talk to you soon >> thank you >> you bet

>> joe so when musk disclosed that, how long has he been in bitcoin, is it a month now or how long? about a month? >> oh, when he disclosed it in the context of twitter >> just how long has tesla had that billion and a half of bitcoin? >> oh, sometime in january 2021. >> they said they changed it last month. >> but people are pointing out that in all likelihood, tesla has made more profit holding bitcoin for a month than in cumulative than in 14 years of selling cars i mean, they're not. >> it's possible >> they're trying to get more profitable, and they will be obviously but if you add everything up, which is, you know, that goes to your question about how the hell do you account for this if you're a company. >> right >> if you lose more or make more based on your holdings, there was a time, andrew, you know,

when i was actually in that business, and the best thing to hold back then was we'd get companies to hold preferred stock because it had all of these tax advantages the dividends that you would get were excluded from taxation. they put their balance sheet, it made a lot of money to go in preferred stock. nothing compared to the type of volatility that you would have on your balance sheet. >> this is not like a 4 x swing, you know, if you're trying to hedge currency swings or something like that because these swings are so much bigger. >> it's like a leveraged 4 x swing. >> that's the question so let's say you do very well in a given quarter, do investors give you credit for that, and let's say you do terrible, let's say bitcoin falls by 30% in a given quarter, do people just quote unquote see through that and say okay, that actually doesn't matter because that's not really an operational issue. this is where i think it gets

interesting/tricky >> well, and it's going to skt a us because we're going to be trying to report those earnings and go, well, if you factor out there's a charge here or extraordinary gain it's just going to be more work for us, which, you know. >> that too. coming up, you know luntz is going to be on talking about wall street's reputation i think you're interviewing him, andrew. >> yep >> it's in the toilet. hedge funds, wall street, what does that mean the reputation of media companies that cover wall street, where are we i mean, do you add it up how much people hate the media and double it by three by how much they hate wall street? i'm afraid to -- >> is there an 8th circle? >> i know. i'm going out. i need a disguise. anyway, fallout -- in other news, fallout from the pandemic, we're going to talk about the toll it's taking on workers'

mental health. that's next. as we go to break a look at the biggest winners and losers o. s&p 500. ♪♪ this is what community looks like. ♪♪ caring for each other, ♪♪ protecting each other. ♪♪ and as the covid vaccine rolls out, we'll be ready to administer it. ♪♪ wondering what actually goes into your multivitamin? at new chapter, we'll be ready to administer it. its' innovation, organic ingredients, and fermentation.

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. this pandemic has many people stressed out, anxious, and lonely a new report shows half of u.s. workers have been suffering from mental health issues since the covid-19 pandemic struck sharon epperson has more on the

impact and what employers are doing to try to help their employees stay healthy and productive good morning, sharon. >> good morning, joe you know, there has been a significant jump in full-time workers in the u.s. who are dealing with mental health issues during this pandemic. according to a new survey by the standard insurance company, 46% of workers reported struggling with mental health issues in 2020 compared to 39% in 2019 and 55% of workers said a mental health issue has affected them more since the pandemic began. when it comes to specific issues that people are grappling with, another survey of nearly 13,000 employees in the u.s. and 27 other countries found the majority of workers have experienced increased anxiety around job security, and found changes in their work routine and their organization stressful. almost half have felt lonely and isolated when working from home, and the result is often a decrease in productivity it all comes at a steep price for employees and employers.

even before the pandemic, research showed the global cost of mental health conditions including costs related to lost productivity was about 2 1/2 trillion dollars in 2010 and estimated to grow to $6 trillion by 2030. so companies are stepping up efforts to address mental health issues they're offering things from one on one counseling, providing access to variable therapy, meditation apps for free a number of things that companies are doing to try to help, joe. >> those are the specific things anything that caught your attention in terms of just innovation i mean, we do everything else in a different way now, i would think. >> they're doing many things in a different way. i mean, some of the standard things are even a little bit different. energy giant bp is including questions about employees' mental well being in the regular employee surveys to get a better understanding of how teams are feeling in realtime. starbucks is one of the companies offering the free virtual therapy, trying to address stress, anxiety,

depression, bank of america is doing that too, but they're also offering daily meditation sessions that are actually guided by practiced employees, and they're also having access to free mindfulness apps there's another thing that workers who are looking for help beyond their employers, what their employers offer can look into, and those are things like linked in learning, which has courses that can support your mental health while working from home they can talk about dealing with grief and loss, as well as having a more inclusive mindset. it's really important for employees to find out what their company prvovides and also look elsewhere because there may be other opportunities. >> think about someone, sharon, that might be single in a small apartment somewhere. it's just, i don't think we take a walk. >> you're hitting on something that's fascinating, joe. i talked to a scientist yesterday on the cnbc health spotlight, and he has a truly innovative approach of reaching

people through twitch, amazon's live video stream service. he is on twitch doing sessions with people, a start up called healthy gamer, his fans call him dr. k. he has thousands of people coming in and talking to him sometimes they're teenagers who are video gamers, sometimes they're the parents of teens and young people that want to know what their kids are going through. here's working with twitch, a way to meet people where they are, and where they want to get help a lot of companies are coming to the realization that the standard things they may have offered may need to change, especially because as you said, so many people are working differently, maybe alone, maybe completely isolated and feeling like they need help but don't know where to turn, and they're also trying to alleviate that stigma of asking for help and seeking help through your employer no pushback, no one is going to fault you for needing to talk to someone or needing some therapy or some counseling during this time because so many people are going through such a challenging time. >> with the kids at home

which can be its own -- >> the kids, the teens, the young adults, anybody who might want to be and be family and stay there all of that is happening all of that is happening. >> everybody's, there's some good numbers coming out, sharon with the case rates, or better numbers, and maybe some light at the end of the tunnel. because all these other things, in addition to, you know, the health concerns, the mental health concerns. thanks, sharon that was a detailed report thank you. >> exactly exactly. >> see you >> thank you, joe. take care. >> you're welcome. when we come back, we're going to talk about the intersection of business and politics, and how ceos are feeling right now about the relationship with the biden administration and later, we'll talk about the vaccine rollout progress with new jersey governor phil murphy as we head to a break, let's take a look at yesterday's s&p 500 win skners and losers.

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u.s. equity futures, they have made it to triple digit gains now in the dow up 100 points, nasdaq indicated up 57 and the s&p up14 and a quarter the u.s. chamber of commerce naming suzanne clark its new ceo. she replaces thomas donahue. tom has been on the show for, yeah, 24 years, and he's been coming on "squawk" the entire time retiring now from the organization after 24 hours. clark engineered a shift in strategy from supporting mostly republicans to building bridges to centrist pro-business democrats. the chamber endorsed more than 30 democratic candidates running for the u.s. house in the 2020 election clark is going to join us at 7:30 a.m. eastern in a first on cnbc interview becky. president biden and treasury secretary yellen met yesterday with business leaders to talk about the white house's stimulus

proposal in attendance, you had the ceo of j.p. morgan >> what business leaders had to say about approaching the issue, we're approaching this issue and to see if we can find some common ground. i know i'll find some common ground with republican friends a lot of democrats as well, so i'm optimistic. >> in attendance was the ceo of j.p. morgan, the outgoing head of the chamber of commerce and the ceos of walmart, the gap and lowe's joining us to talk about biden's stance on business is former ey ceo mark wineberger and former assistant treasury secretary, and serves on the boards of johnson & johnson, and met life. and former commerce secretary under president obama, penny pritzker mark, i want to start with you because you served on advisory boards in both the obama and the trump administrations, and i just wonder right now where you think the business community

stands with the biden administration >> well, becky, thanks, it's great to be here, and great to see secretary pritzker who was really really in the biden administration, played a huge role in outreach to the business community. i think these dialogues, becky, that we were hearing about from yesterday are very very positive, and the outreach from the biden administration on a whole host of issues early on in setting the agenda have been positive doesn't mean the business community obviously is going to agree with everything coming out of the administration, but dialogue always improves not only the current initiatives but also the relationships to help develop future policy. the good news for the business community is the agenda focusing on covid, eradicating covid, getting workers back to work, opening up businesses, it's exactly the most important issue for business, and it's what the president is focusing on >> secretary pritzker, where do you think things stand, and i do think there's a little bit of a honeymoon period right now, but

it could be a little tougher once you get past the immediate issue of trying to deal with covid. it's hard for anybody in business not to agree with getting our arms around that and resolving that first it's got to be the biggest issue. >> it's great to see you i think president biden yesterday, it was a very important meeting because i think he heard what is the impact of the economic crisis and the pandemic are having on most americans he heard that view from banking, from the sales of food, and sales of clothing. you know, and what will it take to get 10 million americans who are unemployed back to work, and i think he heard also about the importance of the american rescue plan. there were really three things it covered, need for stimulus, there's a lot of agreement about that the need for long-term investment in this country and infrastructure and innovation, and our workers, i know mark is a big believer in work force

training we've worked together on those issues, and finally, the desire to work together in the short run to address the crisis, and in the long run to address the challenges of inequity in our country. you know, i've heard, becky, over the last 18 months from lots of ceos, one of the things they were looking for from a new administration is really certainty and stability, and that's what they're getting from joe biden and his team >> secretary pritzker, when it comes to doling with the inequality issues, we were talking about big business leaders that were meeting with the president yesterday. many of them have already moved to $15 minimum bewage it's not going to be as much of an issue for them. what about small businesses. i don't think there are many that are super supportive of the $15 minimum wage when they are suffering so greatly. >> i support the president's efforts to make sure that in this country we're paying a living wage. a $7 an hour federal minimum wage is just insufficient.

and there's a real need to move that up, and i think the president's working really hard on that issue, and it will have an impact on inequity. >> he himself, though, admitted over the weekend in an interview that it might not be something that can go in this covid bill, it may have to be something he puts on the back burner. is that something you think is likely to happen given your experience in washington >> what i like so much, and i think so many do about joe biden is he's open to hearing and understanding the practical realities of the policies that he's proposing but he also knows it's really important that we invest in our people, in their future, and making sure that they have the ability to support themselves when they're employed. >> hey, mark, right now, it seems like one of the messages penny was just talking about, this idea of stability and knowing what the rules of the road are is probably a big relief to a lot of big business leaders. one of the huge initiatives that

they're going to be tackling in this administration, though, is raising business taxes and that was something the business community fought long and hard to get a lower rate for business taxes that would be more competitive around the globe do you think it gets to be a more fractious relationship once that sort of comes into play, and wyou realize there's going o have to be a way to pay for everything laid out on the table right now? >> good point, becky, and i would agree that the covid relief, the importance of getting it out there, and getting workers back to work, and the economy is the most important. the president has not included major tax increases that have been proposedin his campaign i this bill. for the same reason minimum wage, we know it's an old issue, out there for a long time. it's not going to provide the immediate impact with assistance relief, and unemployment benefits in the covid bill the bill will stay focused along the immediate relief the next reconciliation bill will deal with infrastructure,

it will deal with energy issues, and the tax offsets to help pay for some of this enormous amount of money we're spending over $5 trillion after this $1.9 trillion relief bill. it's soon to get passed at that level is out there additional spending is looked to be offset. that's where we will see a focus on tax increases and that's where i think we're going to have real dialogue the business taxes you refer to is about 6% of total revenues. it's incredibly important for creating jobs, and as we saw after the tax relief bill in 2017, we saw record unemployment levels go away, and record employment come up for our cohorts, wages go up, pensions be funded, and i think it would be hard to undo that that's going to be the big debate in the next reconciliation bill. >> secretary pritzker, i heard something this morning out of china about how they have come out with the new initiative, and because of the way the trump administration really put the screws to them, when it comes to semiconductors and saying

they're not going to be able to have access to chips, china's response has been this new plan that by 2025, they want to have a much more robust semiconductor industry of their own production in china they're doing all kinds of things to try and make sure that happens, and i guess it's an unintended consequence of one of the things the trump administration did when you look to the china, when you look to business interests in china, what is the biden administration going to be doing? >> i think there's two things the biden administration is going to do as it relates to china. first of all is make sure our domestic economy is strong and that we're investing not just in our people but also in innovation, that we're leading in technologies, like 5g, like quantum, ai, machine learning and biotechnology. that's really important for our competitiveness with china and the second is to really stand up when there are abuses going on, whether they're human rights abuses or abuses in the

international trade venues around the world, and so i think that you'll see a strong biden administration as it relates to china and one that is looking for opportunities to help american businesses and the american people, most importantly, thrive at this time. >> hey, becky. >> penny, mark, i want to thank you both for being with us yeah, go ahead. >> just one point, this is an area where the business community can engage with the president, international standards, reengaging with the world is incredibly important for stability for u.s. investment abroad, so i think this is a real good opportunity for the business community, the biden administration to take steps forward here, those standards have to be western standards, not chinese standards in order for the western businesses to compete. so that's a great area to focus on. >> absolutely. >> that's a good point mark, penny, thank you both. it's really good to see you.

>> becky, great to see you thanks. >> thanks. when we come back on the other side of the break, futures in the green, what's moving the markets right now. dow up almost a hundred points, plus a big show still ahead, we're going to talk to lyft's cofounder, john zimmer, and twitter cfo ned segal after that company's quarterly results today. we're back after this. we see breakthrough medicines getting to patients in record time. at emerson, our automation software is empowering

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♪ you'll see we've got nothing in common no common ground to start from ♪ ♪ and we're falling apart ♪ pepsico has picked a new name for its pancake mix and syrup products after dropping the aunt jemima brand logo last year, acknowledging the company was based on a racial stereotype, the new name, pearl milling company, referring to the 1888 maker of self-rising pancake mix that later became aunt jemima. the brand plans to announce a $1 million commitment to support black girls and women. andrew. meantime, we mentioned this app the top to have the show, colin kaepernick leading a group taking a blank check company public he's going to serve as cochair

of mission advancement ko corporation seeking to raise $280 million in an ipo the spac is looking for various different consumer businesses, trying to target those consumer businesses the board is made up of members who are majority female and 100% black. kaepernick last played in the nfl in 2016, but since the season he launched player protests to the national anthem to bring attention to police brutality, and systemic racism joe. >> thanks, andrew. coming up, why technical signals in the market may be showing some signs of unease, and maybe what you should do to adjust your portfolio with that in mind that's coming up next. ♪ baby take my hand ♪ don't forget to subscribe to our podcast. you'll get interviews, original content, and behind the scenes

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our next guest says that the technical signals in the stock market are creating a sense of unease to tell us why that matters and what investors might want to ask, katie stockton, founder of fairly strategies. what you're talking about looking at your charts, katie, is it fair to say you're a little more conflicted >> yeah, you know me, i'd much prefer to be bullish from that perspective, there are risks from a technical standpoint we have moment behind market and we always want to respect that momentum. however, there's a good reason why people feel a little uneasy about this past runup. we saw six successive updates

for the s&p 500. the last time we had that many updates in a strange was late august and we saw a pullback of 10% or so. so to a period that people are thinking when those runups tend to fail, they usually occur a few times a year and they often reflect the, i guess, frenzy of buying but we're seeing the frenzy in the s&p 500 but bitcoin. looking at lumber prices looking at the fintech space and the ebas you name it. you can see that on the small cap front so folks are wondering whether this is sustainable. >> you point out there's a lot of extends areas i think a really good chart is the russell. and the type of momentum that we see in small cap you keep pointing out that looks

crazy and extended but why get in the way of momentum that's what i mean by conflicted >> that's right. i'm really the first person to be respectful of that momentum but when you look at that chart of the russell 2,000, such an incredible steep upward that it's really very difficult to sustain. so, there say point at which that momentum falters and with the past steep-up move, it tends to do so in dramatic fashion we're getting into a time frame of last year's corrected phase, i think it was february last year where we saw the gap down so, we're going to sort of keep that in mind and be aware of any loss of momentum, any downtick for the s&p 500. for what we're watching, 3871 model for the january high, a minor breakout, although not a breakout like we saw in november in the early stages. but a short-term breakout, nonetheless. if that breakout holds we'll be respectful of momentum but if we

see that s&p 500 dip back below, i think we have a proproblem ane in store for a pullback. just the spread between the indices doing this with 50-day moving averages and that spread is, of course, even greater for things that have really outperformed in the russell 2000 >> yeah, there's a lot of things that seem overheated so, you have a good memory it was a year and a half ago you know, i don't think you charted it do you remember when i asked you kind of tongue in cheek, bitcoin was going to have a having in may. i asked you whether the charts were indicating 50,000 in bitcoin. everybody wrote up that the cnbc anchor is predicting 50,000, because i asked you about the having coming up >> it's been a while, right? >> little did we know, yeah. i don't think -- you didn't give

me a serious answer when i asked you that, i don't think. >> no. >> you should have >> i didn't, to that >> you should have, you should have, think about that >> to analyze bitcoin, bitcoin is one source of momentum, right? it seems to be a gaining acceptance of another aspect of class in an institutional size that embodiment is definitely there. it's just a matter of market timing do we want to chase the short-term upmove? or do we acknowledge there's a lot of volatility for bitcoin to come and perhaps for good reason and perhaps wait for that opportunity when bitcoin is a little bit closer to support >> okay. all right. i'm taking credit for -- >> yes >> andrew, what's up >> real quick, katie, on bitcoin, what do you think the support level actually is, though >> you know, it moves very quickly over time. it's almost like a trailing stalk loss

traditionally around 29,000. probably up to 30,000 by metrics. when you see the moving average base models to discern that. so the longer it takes for the pullbacks to develop in a way, the downside risk is captured as less, right? as it moves higher over time it's a moving target around 30,000 you don't have any indications right now of a pullback to that level. but as with equities and everything else, i think we should be really respectful of any loss of momentum there and watch the short-term gauges and short-term levels to understand when that's happening and react accordingly. be really respectful of gaps, if you see any gaps down on these charts, that's something that's easy to identify and also something that usually you bring reaction to. >> katie stockton, thank you you can get your long term on it, whether it's 100,000 that's what novagrat says.

if you see something, let us know thanks, katie. we'll see you, bye when we come back, the chamber of commercial names a new ceo for the first time in more than two decades. suzanne clark will join us to talk about the business climate under president biden. executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business. they know exactly which parking lots have the strongest signal. i just don't have the bandwidth for more business. seriously, i don't have the bandwidth. glitchy video calls with regional offices? yeah, that's my thing. with at&t business, you do the things you love. our people and network will help do the things you don't. let's take care of business. at&t. some see a grilled cheese sandwich and ask, “why?” i see a new kitchen with a grill and ask, “why not?” i really need to start adding “less to cart”

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track after the markets snap a six-day winning streak for the dow and the s&p. nasdaq closed higher, but check this out, futures higher this morning across the board. earning season rolling on, coke, under armor, gm, all ready to report. we've got the market numbers and reaction straight ahead. plus, a first on cnbc interview with the incoming chamber of commerce ceo suzanne clark. she's the first woman to run the nation's largest lobbying group in its 900-year history. that interview straight ahead as the second hour of "squawk box" begins right now ♪ good morning, welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with becky quick and joe kernen. take a look at u.s. equity futures at this hour

we're looking up dow up 80 points, nasdaq, looking to open 30 points high s&p 500 looking to open probably 12 points higher a couple big headlines to tell you about right now, could new york be removed from the new york stock exchange? the new york stock exchange president stacy cunningham said that could happen. as state lawmakers issue a transfer tax on stocks in "the wall street journal" this morning, cunningham said that lawmakers have been sent a letter warning of unintented conse unintended consequences. and softbank to invest 900 millions in the company, and had a stake in pacific biosciences that new investment is going to be a real help it will be made, i should say, in the form of a convertible debt instrument. and yet another spac deal in the news

fitness company beachbody will merge with forest road acquisitions in a deal worth $3 billion. former tiktok ceo kevin mayer is a strategist adviser, and joining the board of beachbody becky. we've got coca-cola results just crossing the stage. sara eisen has more on that, sara, good morning >> hi, good morning, becky coca-cola beating on earnings estimates meeting on revenue importantly, i think this is the biggest statement of all for coca-cola, reinstating guidance since the pandemic took a chunk out of coke's business and they do see a return to growth, both on the return to single companies to high single-digit growth and earnings growth to return to 10.5%. the stock is a little higher in premarket trading. i just talked to james quincy

the ceo and chairman of coca-cola. he said lockdowns continue to drive the quarter that's what put the pressure on the business half of coke's business comes from away from home. the restaurants, stadiums, movie theaters however, he noted this is really important, this quarter coca-cola only saw global unit case decline 3%. greater than what they've seen in the pandemic. why? he said they've learned to adapt. the quick service restaurants have figured out delivery and takeout. and that makes a big difference for coca-cola, the at-home channel which he called it has done relative well they figured out what the consumer wants multipacks, people are going to the clubs like the costcos and stocking up more completely changed the behavior. versus the individual cans that we used to see, for instance, growing in the convenience stores some of those changes is what

drove the better performance in the first quarter. and gives confidence to say, and he made this point to me, james quincy, that they expect to return to growth levels of 2016 behind the economy of growth levels of 2019 yes, coca-cola is tied to the overall economic environment what they saw in the quarter is, say, better growth in china versus europe where we saw lockdowns and u.s. kind of in the middle but they do expect as some of the restructuring plans they've gone through including layoffs and focusing on bigger faster brands like topo chico they're going to release coke coffee more innovations coming and hopefully, more opening up of the world and businesses and events should be helping coca-cola. guys i want to mention another really important headline out of this release which i can give you a little context on.

coke is going through a major legal battle with the irs in back taxes that's one of the reasons why the stock found a number of downgrades from analysts over the quarter because this is going to be costly coca-cola is putting out a worst case scenario in this release that it could cost the company $12billion if the irs completely wins now, the ceo told me they don't expect to lose this case they expect they have a hard and solid case and they don't expect that number to come to fruition but they wanted to lay it out because it is weighing on the stock and uncertainty. he expects this legal battle, joe, to go on for a few years. i would say as far as the $12 billion number the analysts were projecting anywhere from 10 to 13 so it should be inline and priced into the stock which is why you're not seeing any negative reaction there. but it's a huge portion. >> you have to get in the weeds to explain the company's position versus the irs' position is it about bottling or some

type of previous spin-off or acquisition? >> you know, it's a multi -- i don't fully understand it. we'll get more color, we've got james at 10:00 a.m. on "squawk on the street. but it's about back taxes for multinational companies. and you can imagine, the company's position might be changing the rules after the facts might not be so helpful. >> what's the hard seltzer, what's the brand name? >> topo -- >> oh. okay >> maybe this is different than the character from the -- people are like ed sullivan -- who is ed sullivan? anyway, welcome to my world. thanks, sara we'll be waiting to hear >> thank you >> $12 billion is a pretty big number coke's a big company but that's -- i don't know if it's material but a big number. united airlines meanwhile

making a big bet on future of flying think jetsons and urban air mobility i hear things like that it just makes me nervous, phil unless you perfect anti-gravity, it just makes me nervous anyway, what are you talking about? >> joe, you don't believe in electrotechnical takeoff aircraft it's the future. leading leading one in starts up the evtol space. archer is spaked by united airl airlines stellaantis. this is a company developing evtol aircraft with delivery starting in 2024 just a reminder, evtol basically looking at aircraft can carry up

to four passengers they are piloted it's not autonomous at this point. united ordering 200 of these from archer. think about being in downtown new york and zipping out to laguardia. here are the co-ceos of archer talking to us yesterday. >> we want this to be an affordable means we believe the entry point in the market will be $3 for passenger mile >> it's incredible seeing how big the market can be. the partnership united gives us a chance to get to get to market first and helps us accelerate our time line. >> united ordering 200 of these in a $1 billion order. so they are ordering 2 of these archer evtols. now, the first delivery is expected in 2024 still unclear from united if it will operate these if its regional partner mesa will operate these

that needs to be sorted out down the road make no mistake, this is a bill deal for united saying we will have air mobility vehicles in our future theoretically, you could be going from somewhere in downtown, or hollywood to l.a.x. and zip out there. to go out there and part of the entire united experience becky, back to you >> phil, i understand this whole idea of needing to continue to invest in your business during the pandemic even when times are tough, but taking a billion dollar investment and doing that at the same time you're asking congress for money to keep your employees on board looks a little weird >> well, this is part of what scott kirby, the ceo of united airlines said they will do they will make investments like this remember, in december, they announced a multimillion-dollar investment in a carbon-capture firm their belief is, look, we have to do something to bring down our carbon footprint that is a reality facing all

airlines around the world. they believe this is one more step towards doing it. yes, this is a firm order for $1 billion worth of aircraft. but let's be clear here, it's not like united is spending $1 billion right now. it is placing this order when the aircraft are delivered, then you are making the final payment. so there is an undisclosed investment being made in the spac and certainly, some investment in terms of ordering the aircraft, but it's not a billion dollars that united is handling over right now >> do you think they'll go back and ask for more money, we've heard it from american airlines? >> it's the industry >> it's coming >> you have two choices for the airline industry, becky, you either right-size your business to what you have at the end of march, which would mean more people being furloughed or -- and the airlines, as well as the flight attendants, the pilot

unions all of them have said, look, we want to be ready in case there's a snap back in demand so keep us in the payroll. and congress says we want them back for a demand. >> you understand -- >> yeah, i understand. >> yeah. it's an odd time to have big plays about other things that you're doing to invest in the future while you're saying i can't invest in the people because there's no demand here i get that i get every one of those arguments, it's just putting all of these together at one time looking a little weird >> well, i understand. that may be why united at this minute is saying, hey, look, we're making these investments scott kirby came on our air when they invested in the carbon. capture firm this is a big deal, guys this is the first time you will see an airline investing in

urban air mobility actually ordering these aircraft >> phil, thanks. good to see you. >> you, too. when we come back on the other side of the break, a new poll out about how retail investors feeling about the market, robinhoods and wthheer or not they're left behind in investing. "squawk box" returns after this. ♪

welcome back to "squawk box. a new poll out this morning that shows a majority of the people believe the stock market is rigged against amateur investors in favor of large professional investors. frank lunt in a deep drive with how folks feel about hedge funds and robinhood. frank, let's start with a sound bite about hedge funds this morning. >> what is so bad about hedge funds? >> i'm very fond of hedge funds and they help middle america >> it's just people who put blood, sweat and tears who would have failed without hedge funds putting themin the corner. >> term hedge fund is terribly defined. i don't think any of us here actually know, you know, what a hedge fund is. >> so, frank, that's what i was

really going to say, and your last person polled maybe said it best how well do you think the american public even understands what a hedge fund is in truth, versus the perception of them? >> not well at all but that's their responsibility. that's their fault and if i would say one thing in waking up this morning, i noticed that you playe aero aerosmith's "eat the rich" as a lead l leadin to the segment. this is an industry that isn't trusted. one of the challenges, quite frankly, they got no one explaining what they do. i don't mean lobbyists i mean people who are responsible for saying -- explaining the process, explaining why they are important to the investment community. because right now, with democrats in control of the house and senate, you could

absolutely see some sort of constraints, additional regulation, because that was key in all of this that the american people want to see some sort of balance between the retail investors and the hedge funds. and they don't see it -- >> yeah. frank, real quick. before we get to the next shot i want to show it in a second. what percent of the group you polled do you think even knows that hedge funds typically manage money for other people, as in pension funds or things of that sort? >> before the group began, very few. there was something that was emphasized by those who support hedge funds. but, andrew, some of the greatest critics come from the trump side not just the biden side. some of the greatest critics are small c-capitalists believe in economic freedom and think that hedge funds have actually upset the markets and give people an unfair balance.

so, don't assume this is just left wing pabulum. that some people who voted republican this time, they, too, believe there's something unfair about wall street. >> i want to get to that in a second but let me show another piece of video your focus group was showing a pretty strong consensus there needs to be more regulation. listen to what they have to say. >> i don't think anybody is saying that hedge funds shouldn't exist. but i definitely think all of the big money entities need to be regulated carefully so we don't end up with more crashes >> and you don't think the s.e.c. is doing a good job regulating them as it stands? >> i think it comes down to people want more regulation to make things fair part of thing is more regulation being replaced, they'll just find another way around it it seems every time you put something in place, someone will find a way around it >> there you go. i think one of the challenges for them, and i'll give you an example because i was looking this morning at some of the

websites both the hedge funds and the retail firms people like robinhood. on their posting on january 29th, there's no essence of priorities and principles. they don't explain what they're about, or why they give the advantage to the investor. there's no q and as or faqs. >> right >> and these are things that investors want to look for that explains to them exactly what they do and what side they're on in fact, the language, andrew, we stand with our customers, people don't believe them anymore. they don't believe that wall street is in it for the average person they believe that it's in it for the big and powerful and, please, for viewers out there, i'm not of that side. i'm delivering this as a warning based upon the focus groups, based on the polling half of americans now want more restrictions or at least more regulations on hedge funds and 45%, which is close to an all-time high, want it on wall street

so something is going on with the messaging and communication. >> i want to show you another clip then i'm going to ask you a question on the other side of it lastly, when it comes to robinhood, the group felt a reckoning is coming. i want to show you what they said >> i want to ask you about robinhood. do they help democratize the stock market should they be allowed to do whatever they want to do >> absolutely not. who am i to tell me with my money i can't buy or sell. they work for me they should have no say-so in it >> everything goes back to the definition of being a free market if it's a free market, you cannot tell me what i can or cannot do. >> so, frank -- go ahead >> at least they didn't talk over each other like i just did with you and i apologize at least, in this industry, or talking about finances, people still have respect for each other. but i'm warning those watching that that respect is rapidly

decreasing because they're not communicating effectively what they do, how they do it. they've not laid out their principles they've not laid out their priorities and investors, quite frankly, think it's all rigged against them >> here's a very medic question. what are we solving for an investor's view of both freedom and the idea that the individual can do as well as a professional is that what we're trying to solve for? or are we trying to solve for a system which creates the most efficient system possible to create as much economic wealth for as many people as possible because those may be two very different things in truth. >> that's the perfect question my answer is we should be solving the latter, but unfortunately, we're solving the former that because everything has become so politicized and so democratized which should be a

good thing it now means people who are less sophisticated, less involved who want their piece of the american dream, they want a piece of the pie which they have a right to, those people could actually bring down a system that has worked well for this country for the last 100 years this is a wake-up call, literally at 7:22 a.m., this is me shouting at you, listen to the voices of the people pay attention. if you don't resolve your communication, your marketing. if you're making short-term profits but people feel like they're punished in the long term, like that woman who said it's my money, that's your wake-up call this morning. pay attention. your industry is under threat. it's under jeopardy.ne waters announce she's going to have hearings in a couple weeks fun don't hear me and the voices of the american people, she's going to deliver to you in two weeks' time >> frank, it's always good to see you, it's a fascinating poll and the results, i think there's

a lot of lessons in there for a lot of folks to think about what the next steps are we appreciate it and hope to have you back very soon to continue this conversation >> thank you, andrew >> see you in a bit. >> becs. >> thanks, andrew. when we come back, barbie and hot wheels driving the market for mattel why they say the covid toy bottom is not a one-off. we have that story next. and the woman to lead the chamber of commerce, suzanne clark leading the nation's largest lobbyist organization. she joins us in just a few minutes. "squawk box" will be right back. >> time now for aflac's trivia atastion wh w blackberry's original name the answer when cnbc "squawk box" continues ering for sophie. same way he got me money to help cover her hospital bill when my health insurance didn't pay for all of it.

but this isn't fair! that's exactly what i said! but then i learned health insurance isn't even supposed to cover everything. wait...for real? for real real. luckily i had aflac. aflac!!! get help with expenses health insurance doesn't cover. go aflac! !mm-hm! get to know us at aflac.com. use a single hr software? nope. we use 11. eleven. why do an expense report from your phone when you can do it from a machine that jams? i just emailed my wife's social security number to the entire company instead of hr, so... please come back. how hard is your business software working for you? with paycom, employees enter and manage their own hr data in one easy-to-use software. visit paycom.com for a free demo. hon? first off, we love each other...

♪ now the answer to today's aflac trivia question. what was blackberry's original name the answer -- research in motion the company changed its name in 2013 a few stocks to watch. mattel reporting adjusted

quarterly profit of 40 cents a share. 17 cents above estimates revenue topping street estimates. toymakers' results were pr propelled by strong sales of barbie and hot wheels. and under armour, analysts expecting a loss of 7 cents results of surge of online sales. ceo patrik frisk will be on "closing bell" at 7:00 p.m hanes brands, shares relatively flat the company reporting a beat on both the top and bottom line, thanks to growth in it's innerwear and athletic wear sales. and when we return, general motors results and the new ceo of the u.s. chamber of commercial "squawk box" coming right back

cisco,

♪ general motors results are out, phil lebeau rejoins us and has the numbers. hi, phil >> joe, surprised to see the shares of gm up 3% after the

company reported a much bigger profit than expected for the fourth quarter earning $1.93 a share versus the estimate of $1.64. basically 29 cents better than expected adjusted ebitda, 9.9%. revenue, better than expected, no surprise with the strong demand for full-size pickups, and suvs $35 billion. the estimate was just for over $36 billion. a couple of notes here, one, the full-year guidance for 2021, the company is not giving that until the analyst call later this morning. we'll hear from the new cfo paul jacobsen, when he runs down what they're expecting for 2021 the company is planning to invest at least $7 billion more than $7 billion in electric and autonomous vehicles this year remember, they're investing $27 billion through 2025

expect that to be a big part of the conversation between analysts and paul jacobsen and ceo mary barra when that call happens later on this morning. guys, back to you. >> phil, thank you the chamber of commerce is naming its next chief executive. suzanne clark will take over the nation's largest lobbying organization next month. she'll be the first woman to lead the century-old organization she joins us here. thanks for being here, suzanne so many topics to talk about the last four years for everyone, there are conflicts and, you know, different ways to think about things for business, versus conservative ideas, versus populist ideas versus the trump administration can you just describe priorities for the -- you know, your organization and how you navigated those. >> well, first of all, thanks so much for having me this morning. and, look, i think any

organization, any business, any media outlet know we're successful if we stay in touch with our purpose and we know what we're doing at the end of the day, the chamber of commerce, we wake up every day and say what can we do to help job creators we know what a job does to the family and community, and staying true why we wake up every morning has helped us navigate, as you said, some pretty turbulent times >> just not to gloss over it, you made entreaties to the organization that made to the other side of the aisle, democrats made by probably your predecessor, and that was pointed out in terms of lobbying effort at this point, the biden agenda, how much of that would get thumbs up from you in the chamber of commerce? and with trump gone, would you see a return to more

conservative principles? or are you going to embrace a bipartisan approach? >> okay. there's a lot to unpack there. let's start with, we've worked with every administration since we were founded over a hundred years ago. and there was a lot to work with in the trump administration. you know, we think the trump administration did a lot of good things on taxes, on regulations, on judges, and we were proud to support those efforts. at the other end of the spectrum, we at odds on some trade and tariff and immigration issues that's true with every administration, right? and it will be true with the biden administration there are things we can work on together and there are going to be things that we're going to fight because we just think they're not good for american workers and job creators we think on the economic agenda to getting people back to work where we can work together and there are places like there are with every administration where we're going to fight >> how about raising the minimum wage to $15? does the chamber of commerce support those efforts?

>> $15 feels like a political number, not an economic number, right? $15, in some places, in the middle of the country, is really different than what we might be experiencing on a coast. so $15 doesn't seem like the right number it's possible the minimum wage needs to be increased. but that's not a decision that could be made uniformly. >> so, the chamber would advocate for raising the minimum wage federally >> i think the chamber would say, if you could get to the right number that made a difference for americans without putting americans out of work, right? i mean, what the studies say is that a raise to $15 an hour puts something like 1.5 million out of work. we already have 10 million people out of work and that is not the right place to start >> in general, you think that the federal government should be going into the marketplace and deciding what a minimum wage actually should be so the chamber of commerce would say

there is a minimum wage the federal government should have, but it may not be $15? is that what you're saying i'm trying to understand is that what you're saying? you do think that there is a certain level where the minimum wage should be set by the federal government >> i think that's right. but i think that number shouldn't be politically motivated. it should be economically motivated. and according to the laws of supply and demand. >> right that would be the way it's set now, just by market forces how about raising taxes? which tax increases would the chamber of commerce be supportive of? on the individual? on corporations? should the trump tax cuts -- would the chamber of commerce advocate for rescinding those tax cuts >> it is absolutely not the right time to raise taxes on any american and on any business it is not the right thing to do in the middle of this economic crisis >> okay.

how about when the economic -- when the pandemic has been -- when we're in a better place, how about then what's the proper level for corporate taxes in the united states, in your view >> i can't imagine a situation where the u.s. chamber of commerce is going to support a rise in corporate taxes. >> okay. then so some of the other regulations, that we've seen, in the early days of the biden administration, is the chamber support of some and not others in terms of, for example, keystone, in terms some of the other environmental initiatives that we've seen, some of the trump deregulation that was rolled back. what does the chamber think of that >> look, this keystone project was not an environmental decision that was a political decision. that was the most studied project in the history of man. i mean, how many environmental review did that pass

five, at least, beginning with president obama. so the concept with every administration we're going to have businesses start over on their strategies start over on their tactics, that's just politically motivated. there's no environmental reason that that project should be cancelled. >> let me try to get a feel for the parts of the biden economic agenda that we know about, which ones would you say the chamber of commerce is most supportive of, that you've heard? because if you're going to work with both sides, i'm just trying to find something that chamber really can get on board with, with the biden administration. >> well, look, i think, you know, we were at the white house yesterday with the president on the pandemic relief. and our first and foremost biggest priority is getting timely and temporary and targeted relief to the americans that need it the most. i think that's number one. i think number two is infrastructure if you really think about what the crumbling state our

infrastructure across this country and the drag that that is on the economy, i believe that's a second place we can work together. i think there are places in immigration that we're going to be able to work together so there are places that we can work together that i think help lift americans, american businesses, out of this economic crisis >> right does the chamber have a feeling on how much money we really should be spending at this point in terms of what we've already spent? i mean, we all -- you understand that where the dialogue that's a little strange trying to figure out just how much we spend, who gets the benefits. is there any concern with the chamber that deficits are going to run too high at some point? infrastructure would be expensive in adding to things. so, even that is something that i would think businesses need to consider >> i think you're making an important point. i think in normal times this is why you see us against running

such big deficit numbers you have to be able to act in a crisis like this but this doesn't seem like the right time for americans to decide that we're suddenly going to worry about the deficit in the middle of a pandemic -- in the middle of a situation no one has ever faced before in this ensuing economic crisis and as i said earlier, we need something that's targeted, that's temporary, that's timely, that's really aimed at the people that are in the most trouble here so we get to the other side of this and get back to economic help >> suzanne, it's tough i'm not sure i envy you, your position the amount of wokeness that's coming into all businesses with usg. it's a different world the chamber of old and old tom that used to come and, i don't know it seems like some of that needs to be left in the past and some of it needs to go forward. but i think some of it needs to stay the way it was. i know you probably have to

grapple with these things. >> i could not agree with you more and what's -- let's be clear about a couple of things, number one, tom and i are different people we have different personalities. i, for example, are funnier than tom and i'm allowed to dye my hair so it's not as white as his. there are differences between me and tom but let's be clear about something, the way the chamber of commerce shows up for american business is not going to change. >> good. that's a great answer. it's great seeing you, i hope this is the beginning of a beautiful relationship between you and "squawk box" because maybe we can do all of this, try to find the center that will help businesses and more importantly all of the workers in this country. >> listen, i really hope so, because at the end of the day, the adults have to come together and say america is one vote. we've got to go in the same direction. that may take compromise, you

but let's grow in the same direction. we've got stuff to get done here let's act like a business and get it done. >> adults, sometimes, anyway, thanks, we appreciate it >> thanks for your time. >> okay. you're welcome when we come back on the other side of this break, the ceo of akamai technologies is going to visit us. poincheck out coke, after rertg earlier this hour. where things stand up now close to 2% we're back, after this we want a hybrid. and so do retailers. which is why they're going hybrid, with ibm. a hybrid cloud approach with watson ai helps manage supply chains while predicting demands with ease. from retail to healthcare, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm. you packed a record 1.1 trillion transistors

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still to come this morning, akamai's stocks. tom leighton after this. and new jersey governor phil murphy will join us to talk vaccine distribution and much more and john zimmer will talk about results and twitter kraef ned segal. t "squawk box" right back.

just an additional note on gm, we told you about what they said earlier, we noted that the company did beat estimates in its latest earnings report however, the company is also giving a lower than expected four-year outlook because of that ongoing worldwide shortage of semiconductors. we've been talking about that a lot lately it's based on that comment but something affecting not only the entire auto industry, but other industries as well that stock turns down by one cent earnings season continues and akamai's technology stock under pressure too after saying profit fell, thanks

to, maybe not thanks to but because of higher costs and operating expenses the company also announcing a restructuring. joining us to talk about it is tom leighton, he's the ceo and co-founder of akamai technologies tom, it's down by 10%, what's your reaction to that? >> actually, we delivered a great 2020 our dps up 16% to $5 a share revenue 3.2 billion, up 11%. and we're especially pleased with our security business which got over a billion dollars in revenue last year. up 25% all in all, we're pleased with 2020 results and looking forward to future growth >> street is not sharing your enthusiasm, why do you think that is? >> you know, sometimes, that happens. and we're in this for the long game sometimes there's bumps in the stock price.

we've had pretty steady growth over the stock price the last several years and i imagine that will continue. the market is a little strange these days in terms of a very heavy weighting on hypergrowth and akamai is very pleased with 11% growth in revenue. and 16% growth on the bottom line last year >> tom, what are you seeing from your customers in terms of the services that you provide? let's talk about maybe security and demand, you may have seen for that >> there's huge demand for security services. as you know, recently malware has been in the headlines for the solar winds attack but malware is pervasive across a lot of attack factors and we have products that prevent or identify those kinds of attacks. so very strong, you know, bookings in security there's also denial of service attacks, ransom d dos attacks were extensive last year again, we're in an unique

position to help major enterprises fend off those attacks. they don't have to pay the ransom money and, you know, account hacking where the criminal is trying to take over your bank account. your gaming account, your commerce account you know, those attacks were up by a factor of more than 4 last year so that's an important area for akamai to help customers in identifying when is it the real person who owns that account that's trying to login >> in june of last year, your company started watching accounts receivable pretty closely. i know some of your customers were looking at extending the terms of their payments up to 90 days has that continued has that tightened up? what are you seeing now? >> you know, i'm surprised it hasn't been worse given the global economic conditions obviously, there's pressure in the travel verticals, and in commerce -- now, commerce is interesting because commerce need akamai's services more than

ever but commerce companies that had a significant brick and mortar presence are hurting and we are helping customers in the affected verticals, help them weather this storm. and return for the long-term relationship >> you took a charge of just over $26 million in the most recent quarter for restructuring. i read through the parts in the relief that detailed the restructuring, why you're doing it what you're moving around about three times. and i have to admit, i still don't fully understand it. why are you doing it it sounds like a lot of people already there leading things have been promoted to new jobs, doing these things? why is it costing $26.8 million for that restructuring? >> well, there was a reduction in force as part of it, and that results in the restructuring charge about 2% of the roles in the company. now unbalanced, akamai is

growing. we added net last year about 600 positions and we'll net this year at several hundred positions more what you're seeing is, you know, increased investment in areas like innovation, new product development, security, serverless computes, iot, 5g, and areas of growth. at the same time, there are areas that we think won't be as productive in the future and we're reducing there and that's what's resulting in the restructuring charge >> in terms of why you're doing this, focusing on the two directions, what are you seeing a shift in the business that caused this? is there a shift in demand >> i think you know, there's increased emphasis around the security products. now a third of our revenue at $1 billion a year and growing very strong at 25% last year. and one of the major aspects of the reorganization is to bring all of our security products together into one team that's

focused just on security in our prior model, we had the company divided along verticals. and we had the media vertical, the carrier group. and we had, you know, the rest which we call our web segment. and now we're focusing around product areas, the major, for example, product change is insecurity and the cdn business which is $2 billion of revenue and generates a ton of cash that we use to invest in new products for future growth. >> with the solarwinds attack, what did that change in terms of what your clients are worried about? what your customers are worried about what you need to be doing? >> you know, i do think it's a wake-up call you know, that zero trust is really important, that we have to change the paradigm of enterprise security. i think people knew that before, but when you have something like this happen, it just really

reinforces that the old way of protecting yourself in the enterprise just is not working and so, it's really important to embrace, you know, new cloud security defenses. the kinds of things that akamai is helping our customers with. you know, when you have that kind of malware in an enterprise, very typically, it needs to communicate with command andcontrol outside of the enterprise an that's a point at which you can detect it and stop it. and akamai sells services to do that >> tom, thanks for joining us today. we appreciate it >> thank you very much >> andrew. >> okay, thanks, becs. real quick, before we head to a break, you got to check out bitcoin right now it's falling nearly 3%. let's show you what's happening on the screen if we could. you're looking at bitcoin a little over 3% $45,777. we'll try to dig into what this price action is about.

talked about this obviously being a very, very volatile instrument meanwhile, another big hour of "squawk box" straight ahead we're going to talk to new jersey's governor phil murphy. and lyft co-founder john zimmer. and then we'll hear from twitter cfo ned segal. "squawk box" returns after this. it's hard to hope, hard to cope with crisis. so we get to work. we mend, fighting for every person in every neighborhood; we, the coming of the common good. so dare to care, to be hope-sided. we're never divided, when we live to give, we always live united.

good morning, earnings posting this morning from two economic bellwethers, we've got the highlights from coke and gm. and two big companies who just reported we're going to speak with lf president and co-founder and cfo of twitter this morning. update on the covid vaccination drive in one of the nation's hardest hit states, new jersey's governor phil murphy joins us live on the race for the state final hour of "squawk box" begins right now

good morning welcome back welcome back to "squawk box" here on cnbc i'm joe kernen along with becky quick and andrew ross sorkin where's the cat, bec turned into the bec -- saw him earlier. >> kicked him out. he was here before the show started. >> the cute little -- it was like this big two weeks ago, what happened. you're feeding that thing. >> grew. anyway, u.s. equity futures at this hour up about 100 earlier. up about 90 now, up 44 on the nasdaq, s&p up about 13 treasury yields, at this hour, about 1.17 i'm laughing, andrew, because i heard you might explain what might be happening with bitcoin to be down 3%. 3% how can you possibly explain what's -- what did you come up with why is it down 3%?

>> you know, i'm trying to dig intole -- >> what could it possibly be >> you won't understand it >> it moves 10% on any given day for no reason whatsoever >> well, oftentimes, we see people tweeting, obviously, elon musk saying things >> i'd wait for 5% anyway. it was at 45, 47, 42 >> and no tweet. >> exactly >> no tweet, it's not up >> right it is -- it is a big final hour. we're going to make it in fact 65 minutes we've gotten clearance now from the governor phil murphy coming up it's so big, it's going to be a 65-minute hour >> you get clearance from jim cramer >> yeah, we need clearance from jim for the new york side of it. murphy gave it to us for new jersey lyft co-founder john zimmer and twitter cfo ned segal -- oh,

that's right >> we got to borrow from david and jen -- i don't think they'll give us the okay >> yeah. let's get you caught up on some of the stories that investors are going to be talking about today. first up, check out shares of general motors after the company posted earnings and revenues above what street was expected for the fourth quarter however, it's pared some of the gains for the company because of that ongoing worldwide shortage of semisemiconductors, as a res they're not able to produce some of the models as quickly as possible gm plans to produce autonomous vehicles this year down about 7%. ford saying it's not able to make the f-150s as quickly and that is its most profitable vehicle. the f-150. check out shares of

coca-cola they're rising after the analysts beat expectations on the bottom line and especially matched revenue expectations coke also reinstating guidance organic to grow in the high single digit range and earnings growth at 10.5%. part of the trend we're starting to see after some companies are reinstating guidance after not having it last year because it was too murky to figure things out. as part of that you can see stocks up 1.25%. the ceo james quincy telling sara eisen he expected coke levels to return to the levels of 2019 before the global economies gets to that point also president biden and treasury secretary janet yellen sitting down with some of the biggest business leaders in america to talk about stimulus spending

jpmorgan's jamie dimon calling the conversation constructive and focused on an economic recovery from covid. joe. >> someone did tweet about bitcoin. and i have confirmed it, andrew. >> what's that >> i see it right here someone did tweet about bitcoin. i have confirmed it. the blue check mark is there person has 8.4 million followers, lindsay lohan tweeted bitcoin to the moon. exactly two hours ago to her 8.4 million followers. so, you were right -- >> not the same reaction when elon musk tweets that. >> you're right. someone did tweet. what's funny, i'm looking at melissa lee follows lindsay lohan. >> for some reason, every time bitcoin goes up, we try to explain why it goes up >> no, we don't, no, we don't. >> 10,000 -- elon musk --

>> every last little tweet of some person. >> okay. up 3%. you micro analyze the 3% move. you'll get a long way with that. new jersey hitting a covid vaccine milestone. 1 million doses administered the goal is to get 4.7 million vaccinated by the summer for more, let's welcome in new jersey governor phil murphy from new jersey we'll try to save some time for the end, governor. you were making extravagant claims about new jersey's pizza on national pizza day. chicago is mad the deep dish people new york is mad. we'll let you do that at the end but much more serious things to talk about at the beginning, sir. and that is, you've got, i think, just under 1.1 million vaccinations administered at this point so, you've surpassed 1 million this week. how is that working?

>> yes >> how is new jersey able to increase and are you satisfied with the progress >> joe, good to be with you. not satisfied yet. but we've made a lot of progress it's in the context of an enormous supply demand imbalance which exists everywhere. it certainly exists in new jersey but we've got almost 300 points of distribution, including six mega sites that can do several thousand doses a day and we are, you know, each day is getting better and better we still need more supply. i'm confident that the biden team will deliver the goods. it won't be overnight. but this is a work in progress but as you say, this is now broken well through, 1.1 million. and we're making undeniable progress and that's, again, with two vaccines, moderna and pfizer potentially good news at the end of the month from johnson & johnson. and iconic new jersey firm, i might add.

if that comes online, it is approved, that's a game-changer for the positive so, slowly but surely we're getting there. >> what else are you considering, governor? i mean, you must be considering, i don't know, different distribution centers what is the rate-limiting factor right now? is it still just supply and what new jersey is able to get its hands on >> yeah, supply, joe, without question the limiting factor i'll give you an example, we opened up a call center a couple weeks ago. we had a lot of seniors not able to access our website. i said, you know what, let's get a call site up and running we've got 250 people manning it. that is now getting well on its feet again, you've got an seean nenos supply demand. the biden team is doing a

fabulous job it won't be overnight, but we will get this. >> becky >> hey, governor, the biggest question is why are smokers in line to get this vaccination over teachers? >> yeah, there are two types of people right now, becky, that are eligible one group are the team that we need to help defeat the virus. there are several types of folks on that list but health care workers would be the big one. the other group are the most vulnerable so this is not speculation this is based on the data on the facts who's gotten sick, who's been hospitalized, who have we lost that's really two categories, 65 years and older seniors. and under 65 years old with chronic health conditions. so that includes the stuff you would expect, diabetes, heart condition, cancer. it also includes obesity and yes, it does include smoking. so, it's a false choice to compare smokers, anyone under 65

who is the most vulnerable including if you're an essential worker and educator, you're eligible right now i hope we'll get to educators sooner than later. they're in the on-deck circle and, again, i hope will get there soon >> i understand the need to try and protect the most vulnerable, and obviously if you've been a smoker for decades you may have a much heightened risk if you get covid. but i've also known people who said i'm going to become a smoker this week so i can get the vaccine. it's frustrating when you're somebody who hasn't made those life choices to see those people jumping the line >> yeah, there may be some of that, no question. no system is perfect there's not a lot of it based on the evidence we have folks are doing the right thing and they're stepping up to the plate for the right reasons. and again, we're going to be able to expand this. we're talking now a matter of weeks as opposed to even months. we're going to be able to expand this meaningfully, and i hope

soon >> i have a little birdie -- i watched what you do. i heard you went to methenny and watched front line workers getting the vaccine. that's an important place for my family how much of your time is spent monitoring the progress there? 90%? >> yeah. >> you have one job and that's it right now >> yeah, well, we are being tested as to whether or not we can walk and chew gum in government i suspect anywhere. the pandemic is goal number one. we've got an economy, joe, as we've talked about, i've got to deliver a budget in the next couple of weeks. mother nature has intervened of late we've had the national moment of dealing with racial justice and racism there's a lot of ball its in the air right now. and the big one, though, is

getting the pandemic solved and that's job number one. >> governor, i don't know if you saw the politico case. it points out that you weren't that well-known, you were elected. the middling poll numbers, i don't know if you saw this, then the pandemic came along and you're now at 60%. but republicans -- i don't know if everyone knows this, you're running for re-election this year you're the only incumbent running for re-election. everybody is watching to see how the pandemic plays out in this election and i guess the gop is already trying to, i don't know, focus on new jersey having the highest per capita death toll. or people that died in the nursing homes. do you feel comfortable that your response is going to be by voters taken very positively >> listen, joe i am up for re-election and i'm proud i'm

running i frankly spend almost no time on politics. we wake up every day trying to get it as right as we can. we got clobbered last spring, as you know, particularly with our seniors and long-term care like a lot of other states and a lot of other places in the world every single day we try to get the best result possible save as many lives as possible save as many jobs as possible, frankly, as well and frankly, i'll let the chips fall politically where they may. >> yeah. i think that's where the per capita death toll comes from, just a very early stages and i guess, would you say new jersey hit its stride in the subsequent ways that we've seen? because, i mean, everybody's had to deal with this around the entire globe >> yeah. >> not just cities here in the united states. >> yeah, the metro new york city reality was the first big area, that includes new jersey, especially our northern counties and we got clobbered we came together

we broke the back of the curve and we drove it almost into the ground over the summer but we're not immune to that second wave. and we've been dealing with that now for months i think it's crested these variants, obviously, are a concern, so that's something we're keeping a close eye on i think it's crested and, again, folks came together and did the right things and we will do a full k accounting, i promise you. a full postmortem on what we got right or may not have gotten right but i promise you this, ever day i wake up and our team wakes up, as i say, trying to save every single life we can. >> is the deadline i guess now february 18th on recreational marijuana bill that was extended what do you -- what's the delay? are you going to sign it are you expected to sign that legislation, i guess >> yeah. it's something that we've wanted, and the big reason as i've said on this program before is social justice.

new jersey, we inherited the widest nonwhite gap of persons incarcerated in america. and the overwhelming reason are low-end direct crimes. we're getting there. i'm still optimistic we'll get it done. we've got a couple of principles that we cannot violate, number one, no one wants to put more kids into our criminal justice system, including most especially kids of color and at the same time, voters voted to legalize at-home use of cannabis no one has voted to legalize it for our kids so getting this right and respecting both of those principles is what we're trying to do and i'm still optimistic we'll get there >> someone -- i can't confirm this -- we've got to go, governor, bgetting back, it's tough, the pandemic got to be over soon. we're hoping, governor, back to something lighter, is the pizza place in becky's neighborhood? someone tweeted in there is there a specific place you're

talking about, just all new jersey not all new jersey pizza -- huh? >> well, that shot is in newark. but it was from maplewood, new jersey but we've got great pizza parlors up and down the state. we're number one, joe, there's no debate. >> there's no debate there's no debate. >> no, no. >> new york, brooklyn -- >> no. >> huh chicago? >> no, it's over the votes are in we won >> you know, i've never discussed -- >> i agree >> this guy from new hampshire said something, anandrew, about new york andrew, you went crazy remember sinunu -- you never liked that >> i like to be generous to the governor so this one. >> i would love to invite him across the bridge so he can have a realize of pizza >> you there go, there's some trash talk

>> i respect our competitors, but the votes are in >> we'll have to get dave portnoy to come and do a taste test >> oh, man, i'm going to tune in for that i'll be validator. >> can we go 65 minutes? can you make this hour 65 minutes? >> i can't, but jim cramer will never speak to me again. >> you're right. he's a new jersey guy. all right. thanks, governor we'll see you. >> take care, guys >> okay. andrew coming up, when we return two big interviews you don't want to miss, lyft president and cfo of twitter going to join us. we head to a break a few of the morning's top headlines. nasdaq suing the s.e.c. over a planned overhaul of data and that overhaul supply and demand data in public fees

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welcome back to "squawk box. robinhood ramping its lobbying in washington. some bills on that would negative impact robinhood's negative model that includes a bill that would impose a 0.1% excise tax on transactions the move to register in-house lobbyists includes a pretty big ramp-up to companies that were previously contracted out. joe. up next. the chip crunch could the global semiconductor shortage end up spurring u.s. companies to ramp up manufacturing plus live interviews from the

co-founder of lyft and cfo of twitter. and right after these quarterly results check out the shares of lyft surging in praremket trading. stay tuned, you're watching "squawk box. fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere.

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thanks sofi for helping us get our money right. ♪♪ welcome back, everybody. semiconductors are the brains of the power technology and right now there is a massive shortage of those brains. josh lipton is taking a look at

how we got here and what it means for some key industries. josh, every morning we hear about more industries and more companies that are being impacted >> yeah, becky, that's right this is the most severe shortage of semiconductors in years that's how analysts are describing the chip crunch to me what's the reason for this tech analyst patrick moorehead chocks it up to sharp recovery, like phones and cars no letup in the work from home trend either. people still buying all the pcs. bottom line pressure of supply across the board there's no easy fix here making a semiconductor is complex. lead times up to 26 weeks are the norm to produce a finished chip companies feeling the pinch. gm announcing it's extending a temporary shutdown at plants due to the chip shortage and telling analysts on the morning call that the shortage could cost up to 2 billion this year

sony says it can't produce enough new game consols citing that same issue. patrick moorehead said the product highlights the need for domestic manufacturing right here in the u.s. trying to avoid the problem in the future, in fact, last month, if you remember, congress did pass legislation that included federal incentives to do just that as part of the national defense authorization act. but lawmakers still need to appropriate funding towards those measures back to you, becky >> hey, josh, you said the lead time can be up to 26 weeks are we talking half a year before we catch up with this or is it going to take even longer >> yeah, there is no easy fix here there is no switch you can just flip, making a semiconductor can be costly. it can be complex. it can take a long time. that's why you're seeing the effects across the chip space. but it affects companies, you know, in different ways. i was talking to bernstein's stacy rasdon and stacy covers that sector

qualcomm, for example, they recently reported results. they are supply constrained. that stock is down 10% nxpi, say lot of exposure to the auto sector and stacy notes they're shipping everything they can make another name to watch, tmfc, the world's largest chip contractor. >> josh, thanks, good to see you. ♪ okay welcome back -- well, welcome back, when we come back, i should say, we're going to talk about the path for profitability for leyft, we'll talk to the company's co-founder here on "squawk box. so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your...

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♪ welcome back to "squawk. signs of a pandemic recovery and the latest results from lyft, the ride sharing company reports a smaller than expects loss with revenue beating the forecast and could reach profitability earlier than expected by the third quarter of this year shares surging after the results came out stock up over 10%. joining us here on cnbc is

co-founder and president john zimmer great to see you, john congratulations on the results >> thank you >> to us what the recovery looks like but also how you're thinking about growth versus profitability, in terms behalf that balance looks like in terms of how you're approaching this going forward? >> yeah, first off, the team has done an incredible job exceeding expectations in exceeding expectations in pulling the annualized cost. we targeted $3 million last year to pull out. we reached $360 million pulled out of our cost structure. so we're incredibly happy about that as we look forward, we expect an inflexion point in q2, we expect it to be a an incredible well proportioned recovery stock. comes out of the vaccines being distributed going into the second half of next year >> reason i mentioned this idea of balance between growth and

profitability and clearly, you're cutting and the question is how much of the cuts cut to the muscle, cut to the bone? what does that mean for growth does it change that trajectory either way >> no. we're still very early on in what we want to build. so, our focus will be growth the cuts that we did last year, we put our heads down and we built better infrastructure. and so, there was a reduction to the team size. but the primary work that we did is foundational. just built a better business built a better cost structure that will impact our ability to grow >> you have been focused on passengers in vehicles, while your biggest competitor uber has spent a lot of its mind share building out the food delivery business how do you think that differentiates both of you and to the extend that uber is going to get bigger does that make it harder for you even on the passenger side so that perhaps they'll be able to

discount in the future in ways that might be more challenging for you? >> yeah, we've been hearing this for almost a decade. lyft has been that underdog that has been doubted, counted out multiple times and we keep coming back stronger we keep growing our share. our focus is paying off and will continue to pay off. they've shown they're not winning in the food delivery space. that there's not the synergies that they pointed to and our focus on transportation, with passengers, will help us win in this space. >> you are sticking with your investments and building on an autonomous vehicle, in that effort cuber has stopped. speak to why you're staying in i'm curious what you first thought when you heard the news that uber was getting out of that business. >> i don't react too strongly to what our competitor does again, my co-founder and i have been at this -- lyft for over eight years but working together for over 13, focused on the same

mission. we're focused on what we control what we do and what we believe is the right strategy. and it is paying off and will continue to pay off over time. in terms of autonomous, we feel incredibly well positioned that has all of the capabilities to increase the per mile autonomous vehicle and increase the cost per mile of an autonomous vehicle. what we're doing there's multiple aspects to it including fleet management, investments that others aren't making in the business so, we have a two-prong strategy which is developing our own data-driven autonomy as well as working with the open platform which allows other companies with great technology to put their vehicles and make the most money on our platform >> you made some comments recently about not being in the food business but suggesting you might be getting into the nonperishable business what does that mean? >> so the way we look at delivery more b2 b we are not building a consumer

marketplace for food delivery or other products what we're seeing, the trend in the pandemic is obviously more delivery, more e-commerce. and what retailers are looking for is a partner a partner that doesn't step in between them and their customer. and in the pandemic, they had to move quickly and get on to these third-party platforms. but coming out of it, they're looking to build their own infrastructure of which we can play a really big part, being their logistics to help them have nationwide coverage for delivery within the city. without needing to have someone else get between them and their customer >> and speak to the issue of pricing and what you're seeing across the country right now, competition in certain markets where things are coming back stronger than others >> the east coast is coming back a bit more quickly and stronger than the request coast in some cases that's been true throughout the pandemic. in terms of pricing, our team has gotten incredibly good at finding the right balance of

supply and demand. of drivers and riders and the right price. we've also created new products that allow us differentiate a standard price or product to lyft riders asking them if they want to wait and pay a little less which helps us manage our marketplace better >> one of the biggest issues, obviously that all companies are confronting is the vaccine and how to deal with the vaccine and employees. in your case, contractors. do you see a day where you will require all of your drivers to be vaccinated? >> we're looking into that i'm not sure we'll get to that level. our focus is on helping our driver community get early access as essential workers on the front line, helping to provide people with rides that they need during this time we've been successful in multiple states already. moving them to the front of the line and we're going to continue to work to help them get access. >> could you see a day, turn it around -- could you see a day

where you require a vaccine passport or a test result for a customer to get into the car, to protect your driver? >> what we've done is we've required masks we've required people to certify, self-certify, that they have not been in contact or near someone that has covid that has worked well we've created additional mask verification technology. on both the driver and rider side so we'll keep looking at what is best to protect the safety of our drivers and riders we're happy with the work we've done so far. we're happy that vaccines are being distributed. and we want to make sure our drivers and riders have access to them. >> the final question, and maybe it's a little far out there. if we were having this conversation five years from now, what do you think the marketplace that you're in actually looks like? >> well, i'd say, lyft, the leader in north america on ride share. i think that transportation as a service is something that people

really understand. our users are subscribing to transportation, subscribing to lyft as they do music or videos. and with lyft, they get access to everything from new york city citybike access and autonomous vehicles as well where you won't need to own a car anymore. we'll have a lot to talk about in five years. >> i hope we get to talk between now and then in the meantime thanks for joining us this morning. appreciate it very much. >> thank you >> thank you, john >> becky >> thanks, andrew. when we come back, twitter's cfo will join us to break down the latest quarter along with impact of president trump's ban and the possibility of revenue sources. right now as we head to a break, check out shares of big companies reporting quarterly results. deca-cola up 2.2%.

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dependable gold distributors in america. ♪ welcome back, everybody. shares of twitter on the rise after the company's fourth quarter results. social media company beating analyst estimates for earnings and revenue but falling a little

short on expected user growth from the street. also warning about how costs are going to increase. joining us right now first on cnbc twitter cfo ned segal the stock up by 9% this morning. ned, good to see you anything new since we talked >> i'm sorry >> anything new since the last time we talked >> quite a bit we've had a quarter we're so proud of and there's a lot going on in the world. i'm glad to be here this morning. >> you know, one of the things that we've pointed out every time we've talked with the company's results is that user growth was below the street's expectations i think it's probably fair to say it's above what the fear drop could have been that's something that i saw at least one analyst note this morning kind of looking through things there was a lot of concern that the user growth would take a steep drop after you all banned president trump. and we saw a lot of people leave the platform as a result talk a little bit about what you're seeing there.

and how you feel about things in the future >> sure. first, just as a reminder, we added 40 million people to our use last year, 5 million last quarter. we grew 27% year over year we did show a little more detail on this quarter and year as well given all of the things happening in the world we thought a little more clarity made sense in january, we added more dau than the average of the last four januarys. hopefully, that gives people a sense for the momentum we've got and the hard work on the surface and around the world secondly, we expect dau to grow about 20% for the march quarter. that's against a tough comp. we grew year over year in 2020 when that covid joined us in march already. >> in terms of the pandemic, as you mentioned that was a big driver for growth. people spending more time at home and looking for things to

do and signing up for twitter was certainly one of them. as we come out of the pandemic, what are your thoughts, not just about new users coming in but the amount of time people spend on twittery. >> we don't focus on how much time people spend as helping them find what they're looking for when they come to twitter. if we help you find the topic. the information, whether around the super bowl, politics or entertainment, you're going to come back over and over again. we want twitter to be a daily habit for people where they find conversations they want to be a part of and where they learn from those conversations that covid group that joined us in march, they've retained better than previous groups has which tells us we're doing something right with the product and helping people than we have in the past. the top of funnel tends to be healthy and consistent we're getting lots opportunities every day all over the world to help people find what they're looking for on the surface >> another thing i found several analysts point to the strong ad recovery, how much you were

doing with that. that was something several pointed to for why the stock's up today, too. what are you seeing in terms of advertising -- the fight for advertising, not only from other digital platforms, but also what happens with more traditional advertising forms. how you try and steal ad dollars from them as well. >> well, there's multiple hundreds of billions of dollars that grow every year, that are spent on digital ads and a lot of that money is moving from other places, where are tv or billboards as consumers change where and how they spend their time. advertisers are just adjusting where and how they look for their next customer and re-engage with their existing customers. that's been great for twitter. it means when a fan isn't in the stands during a game because of the virus, the advertisers are looking for them on twitter. we have 40 of the super bowl advertisers, advertising on twitter at the same time it's a great example of that

we think, a lot of these trends they change for good, people's habits even when they get back to the stands, they'll be spending their time on twitter an incredible second screen where they can engage with people around a topic or event that they're most interested in at the time. >> ned, there's also been a lot of questions coming about, what will happen in terms of the subscription model for you all i know you have analyst day in a few weeks coming up. what can you share with us now, about how much of an impact that will have in terms of revenue? >> well, we've been thinking how we can help people with premium services on twitter. as a consumer, we might give them more features for a business we might help them create a business presence on the service. that's an area you'll see us test over the year and more from us over time we're going to continue really hard around that big digital ads market because that is the place where we feel like we have the most room to grow. in the very near term here

and the pace of innovation on our revenue products where we just announced a new version of nap and clicks product as well there's so much room for us to grow at the end of the digital ads market while working on the subscription products as well. >> and, ned, it's andrew here. i have a real cfo question here. >> i don't think i can handle it >> no, we just watched elon musk take corporate treasury money effectively and invest it in bitcoin. and given jack dorsey's interest in bitcoin, i'm curious what your reaction to that was and how you think of that potentially for twitter itself >> we watch closely what other companies do to see what we can learn from them. when we think about our balance sheet, we think about matching how it's vinvest invested relate to how we're paying people, paying a service provided to us

or paying employees. so we've done a lot of upfront thinking considering how we pay employees if they ask to be paid in bitcoin and whether we need to have bitcoin on our balance sheet should that happen it's something that we're thoughtful about over time but we haven't made changes to this point. >> what would be the tipping point? what is it that you're looking for, waiting for, that would actually put that over the top for you to make that decision? >> well, one of the key things we're looking at if people are asking to transact with us in bitcoin, because then we would consider whether we're transferring dollars to bitcoin at the time of the transaction or if we wanted bitcoin on our balance sheet ready to complete that transaction when we hedge currency or do business in other countries and think about the exposure we're trying to match our assets or liabilities and take bitcoin to all of the other risks we have

>> the other question i want to ask you about is an emerging competitor of sorts which is clubhouse. i notice you're a subscriber like so many of us who jumped on in the past month or two twitter building its own version of clubhouse in the form of something called spaces. do you think of them as competitors? what's the opportunity set there? >> growing up in the valley, i love innovation and trying new consumer products it's been fun to watch this area remember, twitter started as 140 characters then we added images then we added video. then audio tweets. when we see something like this, audio spaces where people can be part of a live conversation or observe one as another way to serve the public conversation. it's been fun to watch others try this as well we've got something in early beta called spaces and we'll continue to work on this over time and something we can roll out more broadly as well >> hey, ned, washington is

definitely gearing up to look very closely at you and some of the other social media networks. in fact, paul meeks feels this is going to be a full-fledged assault. what are you doing to gear up for that how are you prepping you? >> remember, jack testified to congress a couple of times in late last year, and spent a lot of time talking about section 230. we believe in transparency and choice and we think we have a really important voice around this conference because when people just hear from larger companies, they may get a different perspective that doesn't serve the millions of web sites and apps where a consumers' perspective whether it's around audio space ors product reviews or other things where you will see an individual is sharing their point of view on a web site that is owned by somebody else we want to see that speech protected, and people continue to be able to offer those points of view. we think that through

transparency, that is telling people the choices that we're making, how we're using their information, and how an algorithm work, and giving them choice allowing them to turn the algorithm off, which we do on twitter, so you can have a purely reversed chronological time line as an example. these are things that we think will serve the industry well this is going to be a really dynamic time for our industry, for our company and i'm sure we will spend a lot of time this queer tal-- this year talking m about this. >> one of the analyst notes i read this morning showed a little concern, the factor, the additional expenses that you're gearing up for this year, and additional expenditures to build out some of the networks what would you say to the analysts on the street to say we need to watch and see what happens with this and how necessary do you think those vexes are. >> we want to invest to drive growth we grew expenses 20% last year

and want to grow 25% or more this year. we never felt clearer about our strategy we never felt clearer about our innovation, the pace of innovation has never been better and it gives us the confidence to continue to invest and accelerate our pace of investment this is going to to go more towards engineers and product people than it will towards finance people as an example, we want to lead with technology solutions but there's so much work to do, beginning with revenue products but all across the company and we're excited to invest this year to deliver even better results for people over time >> a year from now when we're talking to you, what do you think it wilke look like in terms of the ad revenue you've brought in versus the revenue you've brought in from some of the new initiatives from subscriptions and other products i would expect ad revenue to be continue to be the vast majority of our business for some time but i hope you'll see us experiment around subscriptions in a way that shows people what the possibilities are for

consumers and businesses and i hope we have a lot more people use twitter and i hope we move further and further down the advertising funnel and get closer and closer to begin a transaction to buy something on twitter, and we're just going to keep plugging away at those things over the course of the year and i'm excited for you to see all the results. >> one more question for you president trump was banned, former president trump was banned, if he came back, ran for office again, and was elected president, would you allow him back on the platform >> so the way our policies work, when you're removed from the platform, you're removed from the platform whether you're a commentator, you're a cfo, or you are a former or current public official and so our policies are designed to make sure that people are not inciting violence and if anybody does that, we have to remove them from the service and our policies don't allow people to come back. >> so no >> he was removed when he was president, and there would be no

difference for anybody who's a public official, once they've been removed from the service. >> ned, thanks for your time good to see you. >> thanks, becky >> let's get to c nbc headquarters i know jim is listening and it is, andrew did ask a fascinating question about companies that are looking to perhaps do something on their balance sheet, after elon musk, so it's at 45,000, you have to be out of your mind, wouldn't you, jim, i mean i understand that you might want to transact with customers and things, but katie stockton said the support level has moved up to 30,000 how could you be a cfo or someone and decide to put bitcoin on your balance sheet when it's at 45,000, it could be at 30,000 in a week? >> i still think it has to be part of the menu i think you have to ask your treasurer or cfo how much business you transact as ned

said in a great interview, with bitcoin, it is, remember, it's, it's a property, you don't want to buy cash and have to pay taxes on cash and people do it, and i saw a lot more craziness, when they were doing these really put bonds for treasury, or option rolls for treasury, and we put it on the menu, if you use it, if your customers want to transact it, it's a good diversification. i think every individual should have some. >> being in the dollar has its own, i guess, down side, too. >> yes >> being totally in dollars, or bonds, or short-term instruments or junk. >> we're still saying, you put it in van gogh and put cash in roth co's, that would be even better, and we really should have, we have to consider this on the menu. it doesn't mean, i thought that was a great answer >> 40, it just, it just is, i don't know, i think you would be - >> i think it has to be on the menu >> all right >> did you see katie's chart of

the russell, jim what the hell is that? or jump nk bond yields right now it is all one big picture of zero interest rate, isn't it >> yeah, i mean obviously, there are issues in the economy and there's issue with health, and i thought the governor murphy interview was good by the way and there have been some big runs and we still have a bunch of good quarters that we have, and i'm sanguine, but with the bitcoin thing, elon musk is smart, i think it has to be considered, and when i hear from paypal, dan schulman that it should be on the menu, it should be on the menu, schulman is god in this country and he said it should be on the menu. >> you see how many quarters where 4 x issues caused this and this and this and it would be 4 x, ten times the normal 4 x. it's a small amount. >> all right >> it would be interesting we should be able to invest in

the interest. >> we will see you in a couple of mutines and "squawk box" will be back in a second and we will welcome you back ♪ ♪ we made usaa insurance for veterans like martin. when a hailstorm hit, he needed his insurance to get it done right, right away. usaa. what you're made of, we're made for. usaa

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see the futures up across the board, dow futures up by about 136 points s&p futures up by 19 the nasdaq up by 65. and then you would be looking at some pretty high numbers nasdaq closed at a high yesterday. that does it for us today. we're going to hand it over to "squawk on the street. but before we do, our last little bit, happy birthday to you. jim cramer, happy birthday to you. i that does it for us. it's his birthday today. happy birthday bye. >> happy birthday, jim happy birthday jim as right, good wednesday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber we're looking for record highs across the board as earnings are solid, the covid trends are looking quite good, and core inflation runs cool, for the second month in a row, despite some commodities of multi-year highs, our road map begins with twitter on a tear, on track for the eighth straight daily gain, rallying nearly 20% in the past