♪ good morning this is the story du jour of the day. netflix -- netflix shares plummeting after subscriber numbers fell well short of estimates. guidance for the current quarter, even weaker people are leaving the house again. we'll go through the numbers apple rolling out a slate of new products and upgrade level, full recap and reaction from the investor straight ahead. and thanks, but no thanks, leon cooperman rejecting an offer by senator elizabeth warren to testify about taxes. he called her invitation self-serving and disingenuous, it's wednesday, april 21st,

2021 "squawk box" begins right now. ♪ ♪ wanna give me the run around in a sure fire way ♪ good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. i guess we're playing "run around" for lee cooperman and warelizabeth warren let's check out equities things relatively flat yesterday, the dow was down by 250 points the decline of 0.75% s&p was down too, 0.7% and then you have the nasdaq down 0.9 of a percent. remember, nasdaq, the day before, down 1%. this is a rare pullback for stocks overall sharm upticks. two days in a row. red arrows but slight declines

dow futures down 17 points s&p down 2.5 and nasdaq off by 37 we're also, of course, keeping an eye on treasury yields because treasury yields have been moving the markets recently the ten-year note is at 1.7573%. we've got news from ylan mui about a plan to make college free good morning >> good morning, investors are unveiling a plan to not just make community colleges free but households making less than $175,000 a free ride to any public university. the catch is wall street would end up paying for it the federal government would cover 75% of tuition and fees, though that could go up to 90% during the session states would be responsible for the rest.

to offset that cost, senator bernie sanders and representative jayapal it's 10 basis points on bonds and a fee of 5 basis points on derivatives. those numbers do add up. progressives say it could raise $2.4 trillion over a decade, though there are a wide range of outside estimates about how much that would actually bring in president biden was open to the idea of financial transportation tax running for office and the free college plan is based off of what biden proposed on the campaign trail. guys, what we're seeing is progressives trying to put pressure on the white house to embrace both of these issues as biden gets ready to roll out the human capital portion of its infrastructure package back over to you >> ylan, when you first started talking about this, i mentioned

bernie sanders that was behind this and i thought it was not very likely it's very progressive but then you point out it's something that biden himself campaigned for. how much support is they're not just with the biden administration, but the senate and the house? >> yeah, so, we're expecting to see who actually co-sponsored the bill along with senator sanders today. that is to be revealed later on this morning but i think what's notable here is that one of the chief criticisms of the free college for all plan it would cover college for people who could afford to pay for it this proposal lowers the cap and lowers the income threshold for households to qualify for that free college program that's a recognition among progressives that there were concerns and criticisms of the initial plan so, you know, this is something that has support from moderates as well like president biden himself. the question will be whether or not he's willing to spend the money that would be required to

put this program forward on the campaign trail, he did not try this to a transaction tax. we've already seen his new section phase of the infrastructure proposal would likely be in the $1.5 trillion price tag. so that's something that could be difficult for democrats to even swallow, as they look at something that was already $2 trillion for the first phase of the infrastructure package so there are a lot of numbers floating around. there are a lot of different ways that democrats are looking to pay for these things. and they're going to have to decide what their priorities are because they may not have that many chances to get something done >> ylan, i want to go back to the issue for the time of the financial tax. that was something that you just said it but i do recall that biden pushing for. but also it's pretty clear, i think, that the biden administration is not for financial transaction tax at all. whenever that the been raised, that's something they have not

looked upon fondly, right? >> he said during the campaign it was something that he would be open to but he never presented a plan for what that would look like. they've been pushing this for a long time. progressive democrats say it's an easy source of money but i think one concern that people like president biden would have is who is really going to end up paying for this. is it really going to be the high frequency trader that this type of legislation is intended to target? or is it as we've seen over the last year, sort of the retail investors who ends up getting stuck with the bill? so, those are some of the competing concerns that the administration is likely going to be balancing, as they weigh what are the types of pay-fors that are included in the package. >> ylan, you said this would be for any school and i kind of wonder what this would mean for tuition prices which have spiraled well ahead of inflation costs for decades

at this point. i know that state legislatures in many states have cut back on the support that they've given to the state universities. i spoke with rutgers university president last week about that and it's a significant decline over what they were paying for a decade ago which is part of the reason why you've seen tuition go up. but if you have the federal government picking up 90% of the tab, what is to stop tuition from continuing to skyrocket you think of the unintended consequences that would come with a move like this? >> yes, i think part of the other question around this program is are states going into buy it right? because as you mentioned states have not necessarily funded higher education at the levels that a lot of parents and families would like to see it. but states would have to buy into this. there is going to be skin in the game for states and local governments as well. you know, what would be the uptake would every state participate? would some states sit out? you could also have a situation of sort of haves and have not beens across the country but there is an sanalysis that

estimates an additional 2 million people would end up enrolling in college the long-term economic payoff with more people with a higher education progressives, some democrats would argue that's worth the tradeoff >> again, i just think of unintended consequences, what happens to the tuition prices what happens to competitive, trying to get into these schools would you be paying for private universities, not just state colleges, but private universities, too? it's complicated >> yes, this would only be public universities. >> only public universities. okay ylan, thank you very much. good to see you. all right, before we head to break, there are some other stories. three quick ones that we will be covering in in-depth later in the show starting with the shares of netflix dropping more than 10% after hours after the company added just under 4 million subscribers in the first quarter missing its guidance, its

estimate of 6 million. it expects to add 1 million subscribers in the second quarter. says it's not from competition, though, just from overall, people going back out. leon cooperman as we have alluded to has decided that senator elizabeth warren's invitation to testify before the senate finance subcommittee hearing on taxes was not in his best interest. and in summons to cnbc, cooperman called her invitation self-serving and disdisingenuous >> we're going to hear from two ceos, hans vestberg from verizon and adena friedman later in the show up next, apple's new offerings. i watched all of it as you can imagine. we're going to recap and talk

about the apple bottom line. as we head to break, check out shares of coinbase cathie woods' arc yesterday. the lows in the first week of trading one week ago we'll be back after this zero-commission trades for online u.s. stocks and etfs. and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year. that's decision tech. only from fidelity.

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welcome back to "squawk box. this morning, apple announcing a slate ever new products yesterday. if you missed the presentation, he are the highlights. a new ipad pro that uses the company's m1 chip used in apple computers. it's an inscreen camera, very cool for all of us doing work from home and zoom calls it automatically keeps the human subject in the shot. it pans back and forth incredible at $799 and our computers powered not intel processors and more than 50% more impact than previous models because that m1 doesn't have heat to it, they can actually make it so thin and the apple tv streaming device also getting an upgrade with a new processor and new remote that has a wheel instead of a touch pad, for all of you like me that have been annoyed

forever by the apple remote. and then the apple remote has this in it, the air tag. a new product that helps you find -- how many times have you lost the remote? users attach the tracker to keys, wallets, all sorts of things and use the iphone app to locate them. by the way, it doesn't have to be just in your house to locate them it uses the entire iphone network. everyone's phones around the world to actually find your stuff. that's the coolest part about it other new offers include a purple version of the iphone 12. and a podcast subscription, ipad shares were down 10% and closed off the load and that seems to be the way it seems to go. people buy before and sell on announcement joining now the reaction to the new apple offerings after my review

stephanie hedge at hightour and angelo russino angela, what do you think? >> you did a great recap we can closing the segment now -- no, it's a bunch of really great products. as you mentioned the imax and the ipad pros with the chip and m1 connectivity comes at a good time it's available for the second half, kind of as a product refresh as people go back to the office and back to work. so, i think the timing is really great. the problem with the stock, andrew, while they have great products and they're probably going to do product growth in the quarter of 43% and stock increase of 19%. the stock is up 99 in the past year and up 10% in the past month alone. i think of the expectations are for, obviously, continued

momentum but i think a lot of the stock is already reflecting a lot of good news in terms of the iphone cycle. and the macs and ipads and the work from home benefits. so i think the core is going to be good next week. i really do. i think maybe the highlight will be their capital allocation plan there's whispers out there of $60 billion in buybacks. and a 10% increase in the dividend so we'll see what they have to say but i think a lot of good news is reflected in the name >> angela, do you want to buy in, or rotate out of the stock >> well, i think it all depends on what happens with investors for us, we continue to have a buy on the shares. we're trying to look out more longer term. i mean, if you look at the thesis here of the last two years, really, for us, it was our belief that this was an undervalued name that needed to be reiter-rated and that story kind of played

out here over the last two years. that being said, we're very excited about the pipeline going forward over the next three to five years whether it be related into moving into hardway. whether the car, a.r. glasses, a whole plethora of stuff. we tend to look longer term out to into that pipeline, if you're that type of investor, you want to hold on to the shares >> steph, how worried are you about regulation and i ask, one of the products that they put out which i'm excited about which i'm excited about is this air tags product but it competes directly against something called a tile which has been around for a long time. and i imagine, i don't know that anything will happen to tile, they questioned all of this. they came out yesterday saying this is another example of apple abusing its power. it just feels like every time they introduce new products especially when it competes with

people who are doing similar things on their platform, there's a viereview that they'r poking the beary. >> no, i agree with that, re-rated and trading at 19 times forward, they're more vulnerable, certainly, in view of the headlines no, i think the stock has made a nice move. and we worry about regulation. just in general, by the way, we talked about this in the last years about this so it is something to be concerned about. that said, i own the stock at 6% of the s&p 500 i'm not overweight i'm market weight. i do think -- i agree on the pipeline they have really amazing things. and i, too, am very excited about the air tags because i lose things all the time i think that was the most exciting part of the launch yesterday. yeah, we're always going to have to deal with the regulation part of it and that's a big patrt of

it and thatangelo, you mentionee car. and stephanie, you're excited about the future how much do you think the car is built in or not about the excitement about this stock? >> no, as far as the car is concerned. i don't think there's much verification at all in terms of the stock in that car. i think it will help keep the multiples where it is. along with other highlights we mentioned. but that being said, as far as potential upside from actually releasing a car and the actual volume from, you know, an actual car, i don't think that's embedded kind of within the actual fundamentals and the actual stock prices itself >> stephanie, angelo, great to see both of you. maybe we'll tag you. we'll air tag both of you. maybe i'll air tag my kids, too, when this is all over. i'm not sure >> good idea >> thanks. joe.

>> thank you back to the future in the old days when are john chambers was on from sysco, i asked what color i should get the servers and the routers? like the macs, he looked at me like there was -- i said, well, those routers -- that was one of my most sophisticated question right at the very beginning of all of this. and now we're back to the future do you have a favorite color on those, andrew? >> no, i need a new one so i'll probably -- >> the new one is purple purple >> would you go with -- >> okay, so it matters it didn't matter with the servers and the routers. >> because you couldn't see the servers and the routers. >> you do if you -- >> it's what you carry around. >> no, you're there. it's just a mac, isn't it? >> we're talking about the computers. becky's talking about the phone. which is purple. we're talking computers.

>> you can make it really look good in a room, you could. >> you could >> all right >> i need a couple of other colors that i'll add to the list, we'll see. coming up, coming up, stop the presses. things are going to be okay. the word is back to normal the superleague is not happening. the controversial new soccer empire unraveling after backlash from fans and governments. and later, finding room in the workplace for all of the new pandemic pets out there. we'll talk about the ceo of petco. i have a thing about bringing my german shepherd to work. it's like major in the white house. it's not going to happen "squawk box" will be right back.

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welcome back to "squawk box. plans for a breakaway soccer league in europe has unravelled. we talked about this the second half and following a laud of widespread criticism, even threats of government intervention the european superleague was announced on sunday. we spoke about it on monday. it was designed to upend the current soccer teams in europe 12 teams signed up, and it was being backed by billions of dollars by jpmorgan but the move sparked backlash chelsea was the first club to say it was jumping ship. an manchester england quickly followed and four our clubs pulled out hours later it's quite a case study when you

mix business, politics, sports and emotions of all three together but it really did raise lots of questions at the time about whether the rich were going to get richer and what was going to happen to all of these what are called second-tier city teams and the maturation around sports rights tv rights, and then macron it became a mess and now has come undone. >> and still got to get over that hump here in this country, i think, you know what i mean, the soccer hump. but we're getting there. we're getting there. slowly getting there where we all sit up and take notice but, i want to talk about your ring because i want to know if you can actually gauge actual hours that you sleep and whether that shows up on that thing that you're wearing. >> yes, it does. >> if you're burning the candle at both ends, listen up. and we do it here on this show

a new study published in the science of journal say middle age adults who sleep six hours or fewer per night, maybe at a higher risk of dementia. 50 year olds have a 22% higher rick of developing dementia. that increased to 72% for 60 year olds. and compared to people who slept for seven hours, just one hour difference the study was controlled and looked at for cardiac, metabolic and mental health issues just sleep research. you'd think we'd be much more advanced to know what you're accomplished with rem and all of the different types of sleep when you consider all thought, consciousness, econ chemically mediated.

wouldn't it be something to use your serotonin and i need seven. i seem to get up earlier i wake up 20 to 4:00 if i don't go to bed -- >> that's when i get up anyway >> if i don't go to bet until 8:15, that's exactly eight hours. i can tell in the morning if i'm drifting off is seven different than six? >> my question -- >> go ahead. >> my question, if you get a nap, does that make up for it? maybe not because you can't fall into the rem sleep and do some of the good work that's the first thing i saw there, oh, my gosh, can you make up with a nap. >> you can't fully make up for a nap. i may have to get you guys both rings -- >> i already know i'm not getting seven hours. >> well, i did 6 hours and 32 last night an 1 hour and 34 minutes of rem. light sleep, 3 hours 51 minutes.

deep sleep of 1 hour and 7 minutes. >> how much are you supposed to get? >> you're possupposed to get as much as 20% of your sleep. i never get enough deep sleep. they claim my sleep was -- gave me a good rating 83 if you get in the 90s -- i only get in the 90s on the weekend. i will say, i do this sometimes. i occasionally take melatonin gummis and last night i couldn't sleep and i did that the amount of time it took to go to sleep was three minutes according to this thing. >> it take -- >> ottoo much information >> no, no, i want more information. does it take into account bathroom breaks. >> totally >> those on there? >> you can't be in deep sleep.

yeah, if you get out of bed it shows. totally. but if you want to talk sleep -- >> i may not be getting any deep sleep. >> i may not be getting any rem sleep. >> the whole segment is i recently got an eight-sleep bed. something that cools your mattress and creates deeper sleep. it does. anyway, there's a lot to talk about, if you really want to get into the sleep thing we can do a whole three hours on it. >> and put our viewers to sleep. >> a lot of things about deeper sleep that we can't talk about anymore, anyway. >> you're on to something with the ring, though, andrew >> yeah. >> i saw that and i got nervous. >> what do you bluetooth it? it shows up on the phone >> it's all bluetooth. >> i'm like a commercial where they tell those people we're going to open a pdf -- they're

no, no, have you seen that the commercial where people walk away so, i've got to download the ring on my phone i've got to pair it, andrew? >> it's just a ring. i wear it on top of my wedding ring it's inside. i don't know if you can see, it's got sensors and just wear it i wear it, i don't think about it it goes to the phone automatically. >> all right >> they're yelling at us we've got to go. when we come back, netflix subscriber numbers returning to earth after a meteoric rise. and ahead of the break, let's take a look at the s&p 500's winners and losers ♪

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good morning, u.s. equity futures are in the red slightly after a big concession yesterday. saw some pretty big losses compared to the close of the dow. but i think it might have really start moving down in earnest but it came back into the close now, 200 points. 7 on the dow nasdaq down 34 s&p down under 2 bec. >> thanks, joe netflix taking a hit today in the free market after the company's earnings showed a dramatic slowdown in subscriber numbers because of a dip in production, they said, during the pandemic joining us right now with his reaction is tom rodgers, he's former nbc cable president of tivo and engine media and a cnbc contributor. and tom, netflix said the reason they missed subscriber numbers by so much is because they had pulled forward some of those subscribers earlier in the pandemic because they didn't have new offerings out there, and because

people are kind of getting back out there. they didn't think competition was something that was a problem. what do you think? >> well, it's a little hard to tell i don't particularly buy the notion that their programming was thin they've done much better in terms of having new programming out there during the pandemic than anybody else. they had some very big shows out there at that point, "bridgerton" "lupen. but but, look, it was a surprise that they slowed a little bit. did it derail the netflix thesis no remember, two years ago, they missed over over 2 million subs in the quarter and the stock went down. subs soared from there valuation soared from there. even last year, they had a quarter of only 2 million subs a quarter they hit 4 million subs so, look, subs are going to be lumpy. it does suggest it's not so easy to build scribers in the streaming world.

i think others are going to struggle some with sluggishness, even more than netflix does. but if i had to say would i prefer netflix's hands than anybody else's in the streaming world? absolutely >> hey, tom, let's just run through that i mean, the company really went out of its way to say they didn't see competition from all of these other streaming services as being a problem. i can see why they would say that the data may not show them that but if it is competition from other streaming services that's a bigger problem in the future because that competition is not going away how much of this do you think is subscriber growth that got pulled forward how much of this is competition, again, going back to this, do you think competition is part of the problem? it's not something you just mentioned. >> well, when they mentioned competition, they were very clear to say turn was actually lower than a year ago which is a

sign that you're dealing well with competition and additional subs coming in were the same pattern in markets where they weren't seeing competition as where they were so they had pretty good data, i suppose, to suggest that it really wasn't competitive dynamic. i think when revenue's up by 24%, when you're the leading streamer in a world that's gone streaming, and you got 1 billion cable and satellite subs out there. and netflix is at 200 million, everybody faces competition. but you got to look at the size of the market, with cable satellite subs declining people cutting the cord. and an enormous market out there that's well beyond what netflix has today. >> i guess the other question becomes, though, when you are so successful, when do you run into the law of large numbers that says you're just not going to see the same growth numbers you've seen in the past because

you're so big? >> well, you know, in the uk, they've already exceeded the number of cable satellite subs in that market they're well below still by 10 million or more. the number of cable satellite subs, a niche market does suggest they can grow beyond the size of cable satellite given what's going on in the uk. the issue with netflix, the bath thesis has changed over the years. at first it was you lose friends in office it's over. obviously, that wasn't true. and then you're going to fill it with originals, it's going to be poor quality look at the oscars this weekend, 17 movies up, 20 tv shows up at the golden globes. then it was they're never going to hit cash positives but they're spending so much money on programming now they hit cash positives. disney topping its dividend and netflix saying it's going to

start a stock. buyback. and now the thesis is competition. i will say, the one number that did give me some pause was projecting only 1 million subs next quarter the full case on netflix is it's going to hit 300 million subs or more by 2024 that suggests that you need 20 million subs, new subs a year or more, for the next four years. you have a couple quarters of 1 million subs and it's going to push out hitting that 300 million number in 2024. so, it's been lumpy. they've had quarters like this before and then huge sub growth so i do think you got to look at whether or not they're going to have a couple more of these quarters but i wouldn't over attribute it to competition. >> let's look at them as the canary in the coal mine just for this quarter if saw lower than expected subscriber numbers, what do you think that means for the other

streaming services? >> well, i think netflix has a much better hand than the others it's the leading streamer in the streamer world it's got the highest engagement, lowest turn. it's price was up 6% which is the strength with viewers. it's global scale, the huge budgeting advantage over everybody else so, i think competition is going to be much more of a factor for the others because i think netflix has the pole position if you're going to have a streaming household you're far more likely to have netflix as your streaming service. that you build the rest of your streaming bouquet around so, i think it's going to be much tougher than others i don't think disney gets quite the competition than netflix did. when you think of kids and where they spend their time, youtube is number one. netflix is number two. probably after that comes fortnite and road blocks and disney after that.

so disney is thought of as this juggernaut when it comes to kids' attention. and it faces as do the other streaming services, i think, a much more competitive dynamic than net tliflix does which is really in a category itself having been out there and developed its business model with the programming strength it has. >> netflix shares down by 8% they were down as much as 11% in the afterhours trading tom, thanks for your time this morning. good to see you. >> thank you thanks for having me >> take care andrew thanks coming up next, when we return, am dawn taking palm readings to a whole new level. you got to hear this and later the ceos from petco, and verizon. we'll talk doge coin as well remember, to listen or watch us anytime on the c nbcnbc app.

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welcome back to "squawk. amazon expanding its palm scanning human system to a whole foods store in seattle here's what's going on they'll roll it out at other locations later. the technology debuted in september at a dozen physical stores

shoppers place their hand over a scanning device. the first time they use a kiosk they have to insert a credit card to link it to their palm print. but after that, shoppers can simply pay by holding their hand over the kiosk amazon hopes to sell the palm scanning technology to other companies including office spaces a little bit like face i.d maybe like you used to use your fingerprint. you don't have to touch anything pretty cool. we'll see. i'm sure there are privacy concerns and other questions that people have about it. joe. >> you don't touch, though, you hold it above? >> this, you don't touch, you just scan your hand. >> okay. >> that sounds okay. >> yeah, you don't want to think you have to touch things the credit cards are pretty cool the ones that you just scan those now. you got that technology. you just put it over -- you got those. >> you wind your phone, yes. >> wind -- wand the phone.

yes, better if it's your palm. incremental improvements on life i suppose. coming up, a big lineup includieing verizon ceo hans be. and adena friedman and ron coughlin joins us from petco and your furry friends be right back. don't forget to subscribe to our podcast. you'll get interviews, original content, a behind the scenes access look for us on apple podcasts. or on your favorite podcast app. and subscribe to squawk pod today.

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our bets became an even bigger part of our lives in the past year with most of us spending more time at home as more people return to the office, many are wondering -- oh, my good, there we go there's freddie, the girl. opposite of gunther, his own personal domain to make sure no one comes close to our property and po 234 go will be 16 somehow survives with those other two and actually does a pretty good job of bossing them around it's almost like jurassic park for pongo but he has survived. i think he might be unfortunately blind now at 16 but still very happy still very happy and, you know, you talk about him, you feel really bad people say, hey, they live fine lives even at that point

i think he sees shadows. tmi. many of us are wondering if our pets should come back us ron conglan, ceo of petco. certain ones, ron, is that what we're seeing or gentle golden retrievers we saw what happened when president biden tried to bring major to the white house can be some issues >> my 80 pounder yummy comes to the office every day, he's a yellow lab we firmly believe if you look at pets, they helped america get through the pandemic emotionally. 83% of pet parents say their pets helped them contemplate getting through covid. 69% say i want to bring my pet with me. i think employers will be well served to make their offices more pet friendly. >> i think we have shots of coco, becky. a cat seems like a no brainer.

i don't see why every office doesn't be have an office cat. >> we have eight of them, actually >> you have eight of them? >> we have eight of them i have office fitch. we have reptiles outside of my office they make for a better workplace. actually, you know, one of the interesting things that came out of our survey, 41% of people said they'd shift companies to go to a workplace that's pet friendly >> i saw that. that is amazing. you know, i've had kids, i've had pets they're not kids but they're the closest thing to kids in terms of the real -- i mean, it's gotten to the point where i almost worry about when i get one because i don't ever want to say good-bye it's so heartbreaking when that happens. i can't believe someone -- you can't have -- you wouldn't suggest becky has an office fish with the office cat. that might -- that might cause -- >> we have a fish. we keep the lid on the bowl.

>> exactly make sure you're careful with that you're very lucky to get 16 great years with pongo my dog yummy is 12 1/2. i'm very happy about that. >> yeah. yeah in terms of metrics for your company, what can you tell us that you saw during the pandemic, like actual numbers? >> yeah. >> you're like a stay-at-home stock. >> i would argue we're a unicorn. we had a huge benefit from covid. there were 3 million incremental new pets and obviously that lifted our business. we reported for the full year back about a month ago and we had 17% top end. 100% digital growth but at the same time with the 3 million new pets, actually if you look today, there's increased adoptions, backlogs at breeders, there's more of the same in the first half of '21. guess what you might only get your gym

equipment once but these pets are an annuity they need to be groomed, vaccinated and fed the metrics are good for our business from the long-term standpoint >> the things that you retail, what type of things became most popular during the pandemic? >> people were taking better care of their pets because they're home supplies, balls, toys, treats, but also they were saying, you know what, fluffy's ready for a groom or they were more on top of their vaccinations. but we firmly believe that that increased bond isn't something that's going to dissipate when people go back to the office first of all, less people will go back to the office less frequently, but also this is part of why we want to make sure that the offices are pet friendly, to keep that bond going, and to reduce the employees' stress.

>> the heartbreaking things we see after a natural disaster, we forget about pets. everybody is going to go back and they're going to be like, where is everyone. they give so much to us, i think it's incumbent upon us to think about these things and what we need to do for them. when the movie "all dogs go to heaven" came out, what does that mean it's very clear to me because they all do. there is not a bad animal. not a bad animal with malintent that's ever been created do you i'm going to start crying. >> i tell you, yummy sitting next to me is one of the best parts of my job every single day. one of the big impediments was commercial real estate there's never been a better time for leverage. >> that's interesting to think there would be pet friendly offices. as i said, not for all pets. will not be bringing gunther

anywhere near people thank you, ron. >> thank you. >> thank you, ron. he makes major look like a docile -- >> i was just thinking major biden. the softer side of joe. when we come back, we have two big ceo interviews to come this morning first off is the nasdaq's a nade freedman and then verizon's ceo hans vesper. big talk, big numbers coming up. e all of that into one low monthly payment. they make you feel like it's an honor for them to help you out. i went from sleepless nights to getting my money right. so thank you. ♪ ♪ cal: our confident forever plan is possible with a cfp® professional. a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional.

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investors focusing on key finances lee cooperman declining her invitation to testify on taxes plus, apple lays out its new batch of products and netflix misses the mark on subscriber growth we'll have market growth and other stories straight ahead 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 equity futures. 2 1/2 hours before the market opens. the dow looking to open 35 points higher. s&p 500 looking to open 3.5 points higher. nasdaq looking to open lower, about 15 points off. we'll talk about some of the big headlines including the netflix earnings last night. shares of netflix, they're under pressure this morning. video streaming service beat wall street predictions for profit and revenue for the latest quarter those subscriber growth figures were much weaker than analysts had anticipated. another stock we're watching is verizon. company expected to issue quarterly earnings shortly expected to post growth on the top and bottom we'll have hans vestberg with us in the 8:00 hour. apple out with the latest batch of new products. updated version of the ipad and

the imac computer as well as air tags, a small device tracking small personal items often misplaced. you can even put them on a dog tag or maybe a cat tag to track your animals, guys, or potentially your children. >> that's interesting. that i might be interested in. i've bought some of the tiles that you mentioned before, andrew, and i never really used them thought it was a great idea, followed through with it maybe these work bitter if they're actually using apple's entire system to track it down i was trying to figure out how big they were. if you could put it on a tag without it being too intrusive, that would be worth while? >> it's a tag. i should also mention to apple's credit, they've opened up the entire find me network to other third parties. so tile, which i don't know if they're actually using it yet, will be able to leverage the entire iphone network. so literally if you left a bag

at an airport in san francisco and it was sitting there and you went find my bag, it would effectively try angulate other phones that are in the airport at sfo, if you will, it would know that the bag is there and then that's how you'd be able to find it using other people's phones and what's amazing about it is the whole thing is encrypted. nobody's getting information from your phone. nobody knows it's that bag though you can put a notice. >> does it drain my battery? >> it does not drain your battery on your phone because it's not -- >> i mean, if my phone is being used as part of this network, does that drain my phone >> oh. >> that's a good question. i don't think so i think it's running off of a blue tooth but wide band thing we can talk to hans vestberg the air tags, you have to replace the battery after a

year because it's emitting a signal pretty much all the time, they only effectively last a year 29 bucks a tag you get four for 99 bucks. i've looked into this. you can tell i'm interested as a consumer. >> no, i bought tiles. it's a great idea so many things we are losing around here i tag everything. >> exactly >> the fed believes supply disruptions will happen for a few months, possibly into next year steve, we heard from mike jackson, the ceo at autonation who said some of the problems they've seen in the auto industry he thinks will last well into next year. >> yeah, it kind of depends, becky, on what the definition of temporary is it's getting a little bit longer than that. you have surge in consumer

demand in the u.s. and around the world. it's going to surge more soaring prices for shipping containers in the months ahead future prices. they do raise guess how temporary the global supply issues will be how much do they push up inflation. mark szakonyi of the journal of commerce said the volumes have been getting so strong it's like christmas every month and it's just going to get wackier. in nine consecutive months through march they had 20,000 teus it's not that the ports aren't working or the containers and ships aren't there there are some covid-related issues, the real problem is the whole global supply system is overwhelmed. bruce kasman says they have

surpassed the level. he has his doubts it's going away any time soon i think the bottleneck pressures are going to be significant enough to dominate that will increase supply powers now a discussion on supply disruptions as becky just said has now become a regular feature for most ceos in their company earning reports. if the issues linger, the only way to deal with them is building out ports, ships, shipping capacity. takes years. the problem could be more than temporary, becky >> what does this mean for countries around the globe, steve? are there some countries that have benefitted more or is this kind of an equal beneficiary system >> no, it hasn't worked out that way, becky in fact, a really interesting chart that was sent to me, check out china. china's share of global exports has surged in the last year. the u.s. though, relative to how well the u.s. economy is doing, u.s. exporters have

not -- u.s. exports in general have actually under performed, even under performed europe relative to economic growth. a lot of u.s. exports are low value. what's happened is that those lower value exports end up sort of getting down in the chain in terms of the priority of getting stuff across another big issue, becky, we'll see if this eases the problem, you don't have international flights. so the bellies of these planes for these commercial planes for passenger flights, they're not available for a lot of shipping right now. >> i didn't even think of that the many, many problems that keep kind of accordioning into this steve, thank you thanks for watching it so closely. talk to you soon. coming up, nasdaq ceo adena friedman going to join us to discuss quarterly results, the state of the markets, crypto currencies, much more. before we head to break, let's

get a check on the markets quickly. dow turned around, positive. nasdaq still down. quk x"ilbeig bk."sawbo wl rhtac our retirement plan with voya, keeps us moving forward. hey, kevin! hey, guys! they have customized solutions to help our family's special needs... hey, graduation selfie! well done! and voya stays by our side, keeping us on track for retirement... ...giving us confidence in our future... ...and in kevin's. you ready for your first day on the job? i was born ready.

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nasdaq reporting quarterly profit, 1.96 a share joining us now to discuss the

quarter, adena friedman, nasdaq president and ceo. we're this close to have you right here, adena. i know you're close because i see the flag. >> yeah, that's right. >> we're in the building but not quite back to where you will be here, but i think it's going to be soon. so the number of just earnings, up 31% from the year ago quarter. revenue up 21% why? how? what are the inner workings of what the nasdaq does that resulted in this. >> yeah, we're really, really proud of our earnings this quarter, and i would say, joe, that our earnings this time really do reflect the power of the nasdaq platform. we had 21% overall revenue growth and that includes also being able to close on the acquisition of verafin that i came and talked to you about later last year. we had 17% organic growth across our businesses both in our trading businesses 17% and in our solution segments

we had 17% growth. what it really demonstrates is the fact our clients are seeing us as a go-to partner as they're mapping all of their needs in the capital markets, whether it's technology needs to drive markets or their anti-financial crime programs or it's their analytics platform to serve the buy side or our esg solutions to serve our corporate clients. all of those performed extremely well in the quarter in addition. >> the performance of the nasdaq in the last year, obviously, that doesn't hurt and trading, things like that, don't hurt what about coinbase. coinbase, i'm told they wanted co-o-i-n so they wanted that as their stock. it has a bigger market cap than the nasdaq are you jealous? do you need to get into crypto

more comment on that whole situation. >> well, we are really, really pleased and proud to be coinbase's listing partner they had a tremendous market debut as a direct listing. in fact, it was our largest first trade ever executed on nasdaq and it is the largest market cap stock to come to nasdaq so we are really, really, really excited to have them as part of the nasdaq family. i think when we look at the crypto space in general, it is a really interesting time in the crypto economy it is a maturing element of the capital markets or the broad -- i would say the broader capital markets. nasdaq today plays a role by providing technology to several of the crypto markets, whether it's trading technology, clearing settlement or our surveillance technology is used by several crypto markets. then we also have a partnership to provide a crypto index that has been created with some investable products. we are enbeginninged in the crypto economy but more as a

technology and data provider today. >> you see that not changing you don't see it expanding >> well, i think it's still very early days when we look at how the cryptocurrencies are evolving, it's an elegant construct that's being applied into the crypto currencies and you are seeing more institutional interest and the potential for crypto currencies to become part of main street commerce therefore, as we look at it, it's still very early days in terms of what it can fall into and i think we've chosen to be more of a technology partner to the crypto economy at this point. what we do in the future, we can continue to evaluate that. >> so you are well intent in a lot of things. i've kidded you about being so woke about things. all ceos are woke. you must be okay with some type of transaction tax if we're going to pay for everyone's

college? does that sound great, the bigger the better? >> i think with transaction taxes it's been a long-debated topic in washington and state levels as well there have been transaction taxes attempted around the world in the past and interestingly, we also in addition to our markets here in the u.s., we own and operate the markets in the nordic countries including sweden sweden implemented a transaction tax years ago. what they saw was listings and trading just fled the country. any time you make one country less attractive to investors, they're going to take their business somewhere else. i think with the transaction tax the real concern is if you create friction in the markets and create friction for investors and make it easier for investors to put their savings to work, they will find alternative venues and investments to make, whether that's taking listings and trading outside the country or not investing in equities at all. we definitely are quite concerned that a transaction tax

is not the right direction to go in in terms of really driving our economy forward. >> you've mentioned if we get more people involved in stocks, in trading, all of these things, that that would be a way to achieve inclusive capitalism there are times when i think the perception is maybe the nasdaq is more suitable for gamefication of some of the stuff we've seen, whether it's reddit, wall street bets any of the recent activity that we've seen i guess it could even include some of the speculation, it's not a stock, things like dogecoin is all of that good for inclusive capitalism, the gamefication >> i would say the retail involvement in the markets has cut across all stocks whether it's listed on nasdaq or a competitor having more retail engagement on a sustain aable level is part o

our mission. we have to minimize in order to maximize the more we can get investors engaged putting their hard-earned savings to work and investing over the long term, we see that as a positive for the overall economy. how they choose to apply that and what trading strategies or investment strategies they undertake is really, frankly, their decision so long of course as it complies with the rules. in general we do see we think it's important to have everyday investors as well as professional investors engaged together in the markets. >> adena, it says the nasdaq did not sign onto the letter, the 700 leaders about the georgia voting law were you asked is there a reason you didn't sign what were your feelings for that >> well, i think that there are a lot of issues out there in the country that really are important to our democracy, and every company ceo is navigating through a relatively complex environment. i think here at nasdaq we've been really focused on our board

diversity proposal and really driving more diversity and from a governance perspective, creating more disclosures around diversity in governance and embracing diversity at the board level. we think it's one of many, many steps we have to take to create more equality in the country. >> did you make a decision not to sign? were you asked to sign was it discussed was there a reason that you decided or are any of them getting outed? >> we were not engaged at all in that particular discussion so it really wasn't an issue or discussion we had internally. >> we talked last time you were on about that acquisition, which is is it actually additive to the results? are there other ones planned >> so certainly verafin in

february so it is additive to the results. when we looked at the results we had 21% overall revenue growth 17% organic growth the remainder is a combination of the addition of verafin and fx rates we are really pleased with their business performance i think the team has done an excellent job of continuing to grow the business. it's really exactly on plan and we're just so excited to have the chance now to engage with them, to continue to drive their growth in terms of bringing them up market to more of the larger banks in north america as well as to take them to europe. on the back of that, they actually have landed their first find in europe we're really, really excited about what verafin can do. >> have you considered asking all of your employees to get vaccinated how are you walking the fine

line i like it the way it is, me, you, mack basically work here. i don't want people coming back. i guess that's -- mack that is going to happen some day, right how are you going to -- >> we are starting to have our clients come back, right and have ipo ceremonies here we've done i think a very nice job of creating a digital experience for our clients, however, there really is nothing like coming into times square and having that marquee event here at the market site. we are starting to have ipo market site openings here at the site in general as we've been anything about our own plans, we've been encouraging our clients to be vaccinated obviously not every employee is in a position to be able to get vaccinated right now so that's not really -- we have not thought about a mandate at this point. we are encouraging them. i've been vaccinated so i think everyone's kind of looking at this as an opportunity to get back to whatever the new normal is going to look like but

certainly to come back together again. >> does the new normal include bacon, adena >> of course of course. we haven't had any breakfast here yet, joe. >> i know. >> the new normal should include bacon. yes. >> it will it will include bacon. >> okay. >> i needed to get you on record. >> absolutely. >> on record for that. thank you, adena >> thank you thank you very much, joe >> i think next time >> i hope so that would be great. coming up, stocks to watch we're coming right back. time now for today's aflac trivia question. what gps navigation software app was bought by google in 2013 the answer wn bc "uahecn'ssqwk box" continues ha ha. jill is certainly upset with that unexpected bill from her back surgery. aflac! let's see that one more time. ♪ ♪ (bleep) (wincing) oooh, right in the wallet! ouch! aflac! aflac would have paid jill cash directly

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welcome back to "squawk box. i'm dominic chu with your market minute one of the key themes investors have been watching has been the reversal of another reversal we saw. let's put into context again what we've seen over the last month with regard to technology stocks up 9% again energy stocks down 5%. s&p in the middle. technology, a massive focus with a good amount of earnings reports coming up in the days and weeks that could power the trade. we'll see if technology can power the leadership role. biggest weighting in the s&p 500. one of the biggest etfs that tracks these companies is the first trust dow jones etf

ticker, edn. there's been a consolidation phase playing out in this particular etf $226 a share that's one to watch. an area of support for this particular etf, 50-day average price if you will. one of the biggest weightings in this particular etf is netflix certainly a huge focus this morning for many investors because of the earnings report last night the subscriber growth number slowing down is giving some cause for concern leading to the 8% decline in the trade market watch roku and fubotv. going down in sympathy with that move the pandemic driven surge in online viewing and streaming, yes, it was big, but it's going to be tough to beat this time around watch the particular stocks, becky. netflix, roku and fubotv all down in the premarket, becky >> dom, thanks very much verizon numbers coming in at earnings per share of 1.31

we will look at that very quickly and have more details for you when we come back. hans vestberg is going to be joining us later this morning. take a quick look. shares down by about 24 cents. we'll run through the numbers and bring you much more on the reaction to this when we come back. also, lee cooperman dec declining an invitation forrom elizabeth warren more results from verizon when we come back from the break.

earnings as we mentioned out from verizon profit came in at 1.31 a share that was 2 cents better than the street revenue beating the street's forecast $5 and $5.15 a share the current consensus estimate is 5.08. so right in the middle of that verizon ceo hans vestberg is going to be joining us to talk about the company's quarterly results coming at 8 a.m. eastern time we'll talk about the dividend. the company yielding a dividend of 4.3%. that is one of the main prerogatives of the company. they're talking about investing

more and buying more of the spectrum second prerogative is to increase the dividend. 4.3% we'll talk to them about that and much more. andrew >> thanks, becks lee cooper man has declined an invitation from senator elizabeth warren to testify before a senate subcommittee on her ultra millionaire tax act. joining us to discuss the government's attempt to tax the wealthy. we have kevin o'leary and he's the chairman of o'shares etf and we have the largest democratic pac chair. kevin, i want to started with you because we've had lots of conversations over the years about raising taxes on the wealthy and whatnot. and where i want to start the conversation is this how do you feel about not necessarily raising rates per se but raising effective tax rates?

because part of the issue that's happened -- that's taking place in this country is the wealthiest in this country are not paying nearly the same effective tax rates as the quote, unquote, rate card. i sometimes worry that we got into this over what the actual number is but we're not really even talking about the real numbers. >> the problem is, andrew, you have to ask what issue are we trying solve you may argue that the wealthy don't pay enough tax but the wealthy create all of the jobs in america so let's -- you know, i mean no disrespect for the leadership on the pragmatic investor, entrepreneur, i support companies that create jobs let's look at how many jobs jeff bezos has created in the last 20 years versus, let's say, elizabeth warren, how many jobs has she created. she should be creating policy that creates jobs. i would argue that policy does

exactly the opposite how many jobs has bill gates created. how many jobs have giant entrepreneurs that have been successful in america created? a majority of the jobs we don't want them going anywhere else. the fact is any time you try and create friction and do something that would cause them to look elsewhere, employ their capital, that's a huge mistake. you haven't touched on the philanthropic endeavors including cooperman. why do you want to punish our entrepreneurs. where is this coming from at a time when we have 9 million people unemployed. we want to covet every entrepreneur and try to get them to start a company and not penalize them for being successful what country would do that it's not america america doesn't do that. it's the promise of america that tracks all of that capital so these ideas are bad ideas not constructive and they

destroy job creation >> you're on the other end on this one >> well, i think, first of all, i thought your question was right where we ought to be we have a -- you know, there's some serious issues. i'm going to put aside the elizabeth warren/lee cooper man side show because that's what i think it is. there are serious opportunities and issues here. we all suffer from talking about taxes as if it's some penalty or reward taxes are the price we pay for the civilization we want and so rarely do we start with what it is we want the opportunity here is to ask ourselves what kinds of investments in ourselves should we be making in order to create the kind of expanding economy that reaches everybody out to the middle and the marginalized and not just up to the well connected. on the wealth talks, i am not a supporter. i don't think the problem is

wealth i think the problem is greed it's the hoarding of the benefits and so the idea seems to me that we ought to be talking about is how do we get effective rates, effective so that we meet our needs starting with what are our needs. infrastructure broadly defined how we reinvest in ourselves education, enormously important. health care. the kinds of things that the public invests in that creates a platform for private investment and personal ambition. >> kevin, you believe in investing in yourself and you believe people need to have opportunity and somebody's got -- somebody's got to pay for that and if we think about it the way deval just said, not in the context of penalizing people, i don't know -- there are people who want to tax people to penalize people. i can tell you i have no interest in that i want to figure out a way to pay for the things that create opportunity for everybody, right?

the question, of course, is how do you do that >> deval raises good questions i'm pointing out that these very successful, wealthy individuals don't hoard anything think of the advances in space exploration and space race that has been funded out of private capital keeping america at the fore of exploring beyond the world. i mean, come on, that came out of private dollars now you can say i would like the government to decide where that money goes or you could do what's happened for the last 200 years and let american entrepreneurs decide when it comes to health care, there's all kinds of models to explore around the world would you prefer the canadian model, which is basically free health care? it's okay except if you have a cataract or you need a hip replaced, you're going to wait a lot of years for that. the british model where there's half paid for and a society net, the swiss model, the same. there are other alternatives to

tax the rich because they are the source of our economic growth they are what makes america great. >> kevin, i'm sorry to interrupt you but let's be clear i haven't said anything of what you just said. i just made the point that we shouldn't be about talking about taxes as either a penalty or a give away. we should be talking about what kind of civilization we want i'm not talking about having government replace the private sector i've spent most of my life in the private sector. >> deval, we want this civilization we want this america we don't want to change anything this is the most successful country on earth. >> i don't think we want a failing infrastructure i don't think we want failing schools. i don't think we want folks who do not have economic mobility, which used to be a signature element of this country. and you and i both know that all of the stats and the reality shows that that has stalled out. we can do things without taking

everybody's goodies away we can do things where we are all contributing to building a better future. you talked about health care i was responsible for implementing the health care reform in massachusetts. it was a public/private undertaking. we reached 98 plus percent of our residents with health insurance today. there's not another state in america that can yet meet that. >> deval, i was there when you did that i was a resident of massachusetts and i moved here to florida because your taxes were too high. i moved to build my businesses that's why i'm here. that's why i'm here. there's a competition going on around the world >> kevin, i think it's great that you're there. you look terrific, but what we did and the judgment that we made was that we were going to build our commonwealth together. we came out of recession faster than most other states we have a 25-year employment high that was not about government

doing things that the private sector can do better, it was about government partnering with the private sector and not for profits to build to our common goals. that is not -- >> i totally agree with you. it's great to have an objective and a goal, i get it, but let's start with the basic premise where else on earth would you want to be america's not perfect. versus what? versus what? where would you rather be? this country provides a baseline for economic growth that's unprecedented, even in its current state coming out of a pandemic looking at gdp growth in q4 maybe at 9%. hasn't been seen since the '50s. let's not mess around with it. it's done well for 200 years. >> i don't think any of the conversations about how to rebalance our tax system are about messing around with a good thing, it's about making sure that good thing is actually accessible to everybody. i grew up a poor kid i had tremendous opportunity

made available to me, and i tried my very best and continue to try my very best to make the most of that opportunity, kevin, but it is also true that alongside the grit and the personal responsibility and the encouragement and mentorship of other people there were food stamps when we couldn't eat. there was a great public school with great public school teachers who made a way for me there were student loans subsidized by the federal government there was a transportation system that enabled me to get to and from the job site i was able to get where i had an opportunity to prove myself. and whether it's lee cooperman or me, every single one of us has help, and sometimes that help comes in the form of government we just have to ask ourselves that fundamental question. there is absolutely demonstrated proof that this trickle down economics actually creates

expansion in our economy it may create expansion of wealth, that is true. >> but there is lots of proof that raising taxes on the wealthy damages economies. look at france look what happened in sweden >> nobody's talking about what france is doing. >> guys, we're going to have to continue this debate because you know it's not going anywhere and i hope we can have both of you back, kevin and deval. it's a good conversation and it's an important one and one that's happening in washington and around the country and the good news also, we're scheduled to speak with leon cooperman next week on "squawk box." we should do this, actually, guys can i do this? i'd like to issue an invitation not only to lee cooperman. i think we should issue an invitation to senator warren part of the issue was he didn't want to go to a place where she had home court advantage let's call this switzerland. let's have them both come on we can adjudicate this --

>> he said he didn't want to debate her you're going to invite him to come on with his interview >> in an objective way they can have a discussion without her up on a -- on her chair and his in his chair and feel like it's unfair. we can have that conversation. we can have a fair discussion in the public i think we should -- i think they should both come on and we should have the conversation together >> all right let's check before we go to break, let's check on the futures. futures right now are indicated mixed. we've got the dow up a little. nasdaq down about 32 s&p down a little over -- bitcoin is 55,000 again. it's been weak for a couple of days we're going to speak to noah blackstein, dynamic funds. check out the shares of verizon right now reporting quarterly numbers. check them out nothing's happening.

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get started today. all right. let's get you caught up with some of this morning's stock stories. earnings out from verizon. profit came in at 1.31 on an adjusted basis that was 2 cents better than the street expected. revenue better than the street expected the stock down by 39 cents

netflix shares have been under pretty extreme pressure despite being on both the top and bottom lines. investors have been focusing on subscriber growth weaker than had been expected. down by 8.2% it had been down as much as 11% last night csx fell 2 cents short of estimates. revenues came in above forecast. 12% of the s&p have reported of those, nearly 26% have come in ahead of expectations we have been seeing big beats but we've also had some very high expectations in the market ahead of that. joining us now is noah blackstein noah, what do you think of this? earnings have been quite a bit better than expected it doesn't always lead to the gains you might have traditionally expected in the stock. >> well, you know, i think that we've -- november 9th i guess was -- around november 9th was

the approval of the pfizer biontech vaccine followed by the moderna one. you know, na really triggered a rally, especially in the re-opening stocks. many of those stocks have gone well beyond where they were in 2019 there have been a lot of expectations behind a lot of these reopening stocks, behind a lot of this normalization. i think the good thing about this earnings season is we're seeing things getting back to normal in terms of what we're seeing from some of the banks and some of the medical companies as well. life is beginning to return to normal i think that's important, but there are a whole group of stocks which, you know, what i would call the junk rallies in the first quarter, really, which are more than discounting a lot of this. so the question is when do a lot of those stocks get back to earning what they were earning even in '19. that's going to take a little bit more time. probably 2022, 2023 for some of

these reopenings to earn what they earned in '19 normalization is the key that's a positive longer term. >> yeah. i guess i keep going around and around trying to figure out valuations we've always known that interest rates are gravity on stock prices that's something buffet has talked about if interest rates stay low, i guess how do you then figure out valuations for what's fair value? you still don't put that into the equation or you do where do you put your money? >> well, for me, i'm always trying to figure out what the present value of that future growth is worth and looking more at some of the secular growth names. many of those names have gone sideways for the last six or seven months, investors have piled into this reopening trade. i think that now that so much of the value of the low quality names have had such massive moves, i think the opportunity for investors is you get a 90%

move in interest rates in the first quarter, i think interest rates will drift higher over time but it looks very similar to the fourth quarter of 2016 with that 70% move in 10-year yields yields chop sideways, head towards 2% now as we're normalizing, i do believe we're normalizing. in the last segment there was a lot of criticism of capitalism the fact that we had a vaccine approved in november, half has received one dose, half of u.k. one dose and half israel two doses. that's a testament of the unbelievable supply chain and people should be celebrating these companies. we're seeing that. the question is how much is discounted in the stocks once we reach our cruising altitude, what is the cruising altitude are we back to where we were or at some level lower? there is a lot of slack.

year over year comparisons have peeked some of the restaurants that have closed aren't going to reopen those plans are going to take time to get full when does business travel resume the peak year-over-year comparisons have passed us now you need to look at relative valuation and relative growth in the companies. >> i think most sectors are trading above where they were a year ago so we've already assumed that we're back to normal growth and then beyond that if you're looking at the growth stocks as a place where, okay, you can make more of an argument for the valuations there, is this something that you embrace or as an investor do you kind of hold your nose and say this is the one that i feel most comfortable with because i have to find somewhere to put my money? >> you hear a lot of people talking about technology but really what's performed, whether it's game stocks, the viacoms or the value oriented areas, cruise lines, airlines that have gone sort of parabolic in this period of time, whereas, those stocks

have gone sideways the valuation story has normalized for the value names you have to look at '22, '23 you're assuming duration risk. the other thing you're assuming is the stocks have huge price momentum in the cyclical areas and momentum areas, that you're a momentum and duration investor in value as we pass the peak year-over-year growth areas, a lot of the large growth stocks are companies with 15, 20% growth rates throughout the pandemic given their sideways move, i think cyclical investors would be better off moving over to those areas of the market for the next couple of years, actually, at least just too much discount in the reopening and cyclical trade as far as i'm concerned. >> okay. noah, you sound pretty laid back about things you sound like you feel pretty good is that a fair assessment of your overall views of the market

right now? >> you know, i think things are all -- we've been through a lot. it was 2000, 2008, the pandemic, we're not laz ssez-faire about anything, but we're always looking at things. if we knew what the next big thing was, it probably wouldn't be it. you always have to keep your eyes and ears open at the end of the day, for us, finding companies that can grow significantly is the way over the last 25 years we've made money. that's probably the way we're going to make money over the next 25 years. we stick to that process and investors should stick to their process, whatever it is. >> it's reassuring i like it. good to talk to you, noah. >> thanks, becky >> thanks. coming up when we return, verizon out with first quarter earnings this morning. we are bae going to dig through those numbers with its ceo hans vestberg is going to join us straight ahead as the final urho

of "squawk box" comes up right after this

cal: our confident forever plan is possible with a cfp® professional. a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional. ♪♪ good morning, verizon beating wall street estimates for its latest quarter but losing more wireless customers than expected. we have a first on "squawk box"

interview with ceo hans vestberg coming up. meanwhile, netflix shares tanking. new subscriber numbers disappointing and giving light guidance for q2. leon cooperman says no thanks to an invitation from senator elizabeth warren to testify before senators. he called the tax hearing a show trial. we're going to bring you the latest details as the final hour of "squawk box" begins right now. good morning and welcome back to "squawk box" here on cnbc i'm joe kernen along with becky quick and andrew ross sorkin u.s. equity futures at this hour have been more or less around the flat line. the nasdaq has remained in negative territory you can see it down about 34 points right now the s&p is indicated down under

2 points and treasuries once again below 1.6. not a whole lot of headway being made in the last couple of sessions searching. the markets seem to be searching for some direction here at 1.57 now on the 10-year there are a few of the stories that investors could be talking about today. netflix shares, as we have been talking about all morning, under pressure company beating street estimates on the top and bottom lines, however, global paid net subscriber additions came in at 4 million. that was 2 million less than expected more than 2 million. they were looking for 6.2 million projected by analysts. netflix also said it only expects to add about 1 million subscribers in the current quarter. going to talk much more about the company's latest report a little bit later in this hour of checking out some market caps. netflix today is going to be

down a little based on $549 price, it was at 243 billion i just checked out our parent company, comcast 247 billion. so almost the same streaming company versus just a multi-varied asset mix at comcast. then there's disney which i guess is kind of a combination of both. 331 billion. so that's where we're standing right now. it looks like that european soccer super league is over before it got tarted spanish, english team abandoned the project in the face of criticism. new league argued it would increase revenues for top teams and allow them to spread that wealth being backed by $6 billion in debt financing by jpmorgan as we just were talking about, the top billionaire investor lee

cooperman declining an invitation from elizabeth warren to testify on taxes. in a letter sent to cooper man warren said she wanted to talk about her ultra millionaire tax which is just a couple of pennies. just a couple of pennies which would raise taxes on the wealthiest households in america. co cooperman said he believes in a progressive tax but not interested in participating in a show trial he said he would tune in becky? >> thanks, joe. verizon out with quarterly numbers just a short time ago. the communications giant beating street estimates for both profit and revenue but it did lose more wireless subscribers during the quarter than analysts had anticipated. stock down 29 cents. joining us is hans vestberg, verizon's chairman and ceo thanks for being here this morning. it's great to see you. >> thank you for having me great to be here

>> let's talk a little bit about what you saw during the quarter. revenue was actually up year over year. what was driving things? what was the biggest part of your business? >> i would say that our strategy -- our differentiated strategy is working. in this quarter all our businesses are growing verizon media is growing 10% verizon business group and consumer group is growing. overall we're growing 4% finally we have several vectors of growth happening at the same time it's a good quarter and be with that we have the profitability coming along with it and the cash flow. it's a good quarter. it was a little bit different quarter because in the beginning of the quarter we talk about consumer side where stores stayed closed because of covid-19 then if you look at march, we had a strong march when it comes to consumer sentiment and growth so it's been a little bit different in the quarter when you look at the sentiment for consumers. media and business group, they basically have been fairly equal

in the quarter it's a little bit different in the quarter. overall our strategy is working and as we laid it out three years ago. now it's starting to be improved whatever we have decided for >> you have a pretty good feel for what your customers are doing, broad sense of consumers across america at this point i know you've been tracking them through the pandemic you could tell in new york city last april and may that people really weren't moving that much. you saw that their cell phones were much more stable in one place. you didn't see the transfers like you've been seeing in the past what do you see now? what does america look like from your perspective >> you're right, becky in the height of the pandemic we saw movement down almost up to 50, 60% in urban areas that is all coming back. we still are a little bit lower on the movement between sales and regular sales. only down 10, 15% in urban areas

right now. what we see is a couple of other things we see people continue to have a lot of video conferencing. they have longer calls when people speak on the phone today, they are speaking longer. that is still continuing since sort of the are epicenter of the pandemic so we're going to have a couple of behaviors continue even after a post era of the covid. >> i know you've been investing in the network how much strain has that additional usage put on your network? >> basically nothing i mean, the network is so good and so reliable. remember, in the beginning of the pandemic the first week we increased in 2020 because we didn't know what was going to happen even though all traffic moved out, it was a different type of traffic, the network held up very, very well. we haven't had any challenges on that we'll always have a lot of head room in the network. more head room with all of the spectrum we have >> yeah. let's talk about that spectrum purchase too you were the biggest spender in

the last c band spectrum option that came up $53 billion by verizon overall that spectrum auction brought in about $80 billion last summer when people were talking about that auction they thought it would only bring in 20 to $30 billion. what happened? what made this spectrum become so much more valuable over that time what convinced you to spend that amount of money on it? >> first of all, we expected this to be very competitive. this is the largest chunk of spectrum auctioned ever in the united states. it's also a mid band certain spectrum that is roaming for the 5g worldwide and very efficient both for capacity and speed. so that's why it's a high value. for us, this is a spectrum for generations. this is more spectrum than we have had since we started verizon that we acquired in this moment it's unheard of that so much spectrum is coming out for us this is paving the way for the strength that we already laid out

we can accelerate our business cases for 5g and we can amplify them and reach even more for us this is a great moment and we were very happy with the outcome. >> hans, there's another one of these 5g spectrum options coming up in seven months time. do you think the demand for that spectrum is going to be as great as this past auction >> so we're just getting the material out for that auction. i would say it's not comparable to the c band. it's a little bit different. different output powers. it's not the very used band in the word there is some restriction on it. it will be different we will look into it if it fits in our portfolio we're really happy and satisfied with the position we have with a millimeter way we have acquired it and leading the charge in the 5g market and now with the c band. >> what can you tell us about the dividend spending money in the company has been your number one priority, but growing the

dividend you've said is your number two priority. right now it's pretty healthy at 4.3% what do you do to goose that >> no, you're right. we have a very clear captive privatization. invest in the business that's what we're doing. secondly, it will put the board in a position that they can continue to increase the dividend we've increased in the last 15 years. with the cash generation we have and the prudence of financial we're doing, that shouldn't be a problem to put the board in that and continue in that thirdly, we want to pay down our debt because we came down to the levels we wanted before the auction and now we still get back to that clearly we've seen four to five years and we are down to the depth levels we want to have of course, we raised a lot of money in the quarter, 25 billion. extremely good financing and then average of 17 years on that 25 billion we're in a really good position and we have done this before and i also can say really proud of

that team, that 25 billion we have 9 banks that were sort of minority and inclusive firms. we also have allocated capital to them in this bond offering. it was the biggest bond offering in the corporate history if the book was 120 billion. >> hans, can we just talk for a second about the competitive landscape and how you see it right now. you know, t mobile appears to be doing very well, especially on post paid wireless phone subscriptions. i think there's an expectation they're going to have great numbers. at&t obviously struggling with a lot of debt. i'm curious where you -- what you think of what's happening there but also building out at this moment. how do you see all of this shaping out right now? >> someone was a competitive market remember, the connectivity and growth, it's more important than ever for society

so we are in the right sweet spot for business but i feel really good about how we are completing it. we have the best network we have a great brand. we have offerings that go all of the way from mobility to home broadband, mobile edged computer enterprises and we have verizon media group with it growing over 10%. i have a range of assets and different strategies towards the other so i can grow them all that's what you see coming together in this quarter this is what we've been working on for years to get this structure right and see that we're leveraging on network. it pays off. i feel good about competing on post paid, in the pre-paid market and of course on the business side where we're basically leading in all areas >> hans, we heard from netflix last night stocks down about 8% this morning because the subscriber growth was much less than the street had been anticipating earlier this morning we spoke to

tom rogers he looked at this as kind of a clue of what's to come from some of these other competing streaming services he thinks if netflix subscribers growth is less than expected, then you can certainly expect that from all of the other streaming services i know you don't have your other streaming service but you partner with them including disney, including discovery plus, including apple. i just wonder the type of subscriber demand you've seen from your customers on this. does that make sense to you? >> first of all, i'm not sure about that i think we have a clear trend and that trend will continue we're going to see much more streaming services over the top services over time if that is meaning you're going to have three or four different type of subscription services or more over time, then there are always hiccups here and there but the trend is clear that's why we are working so hard to have a broad offering and then we gave the optionality

to our customers disney+ has been a huge hit. disney+ we launched exclusively. huge uptake. discovery needs to talk about what they are seeing overall, this is differentiation for how we work and getting the optionality and extra value. we can migrate wecontinue to migrate our customers to premium unlimited service and to unlimited services and that's part of our growth generation that we've been t talking of for quite a while we reach the gdp growth we want to get through and continue. >> hans, one question we've been kind of putting to a lot of the ceos coming on our air, asking them about some of the corporate responsibilities, some of the voting rights laws that come up and questions about that you did not sign on to this signatory that many of your

peers did. i think 9 of them signed on that they have that voting rights >> they're the signatories we made our own statement around that we're going to have the things that we think are right for the company and for our values and where we see that diversity inclusion is a value and we need to make sure we are speaking about that customers are expected and employees are expected that's why we're speaking about that the last couple of months and we don't leave anybody behind and we are taking our corporate responsibility

>> there are a couple billion dollars in the infrastructure plan going for the biden white house infrastructure proposal going towards broadband. how do you see that playing out? what does that mean for verizon, if anything? >> first of all, it's a plan so we haven't seen it being improved we haven't leap frogged 5 to 7 years how we use technology. we clearly see it in all countries including the united states broadband will be important. then i divide it in three areas, accessibility, affordability and usage of it. you need applications for it i think that importantly is that what we're seeing in the u.s. on accessibility is a private investment that broadband provides in this country including verizon, that has worked during the pandemic the networks in this country was working

better than any other part of the world. just giving all the consumers and customers it so i think that's important. any price regulation there i think is contrary productive for the investment and bridging the gap. where we need to work is affordability. to find the plans and broadband for all segments of the market that is meeting the needs. there we need to work more together we're going to be vocal about that there and as a company >> hans, i want to thank you for your time today. it's good to see you >> thank you very much >> take care by the way, folks, tomorrow don't miss our exclusive interview with at&t interview john stanky off the first quarter results they have as well. coming up when we return, is there room for compromise on president biden's $2 trillion infrastructure plan? we spoke with ohio senator rob

portman this hour just yesterday. in a few minutes we're going to hear from the democratic argument mazie hirono ar> deep dive into netflix first quter mix. stay tuned, you're watching "squawk box" on cnbc

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welcome back to "squawk box," everybody. the futures this morning a little bit weaker after two days in a row of decline in the markets. dow was down by 250 points this morning indicated down by another 20 s&p futures indicated down by 5 this morning and the nasdaq off by 42. andrew >> thanks, becks meantime, first amazon had one click ordering now it's got one-hand payment technology company is bringing its palm scanning payment system to a whole foods store in seattle technology allows shoppers to pay for items by placing their palm, put it over a scanning device that's how you do it the first time a shopper uses the kiosk they have to insert a credit card to link it with their palm print after that shoppers can pay by

holding their hand over the kiosk. amazon hopes to sell it to other companies including retailers, stadiums, office buildings another version of face i.d. or something like that. of course, those amazon go stores, you walk in and you walk out, you just leave, which is also amazing so we'll see which of these technologies ultimately wins >> magic, all of it. coming up, we'll speak with hawaii senator mazie hirono, corporate tax hikes, many on the left are hoping for. also, a bill that actually i think she introduced that could be voted on as early as today. stay tuned, we're watching "squawk box" on cnbc how do you find companies that are driving the right outcomes? if you care about economic equality and social justice, which firms are addressing it in their workplaces and their communities? for nearly 40 years, calvert has delivered

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competing figures for president biden's infrastructure plan being batted around as per usual. some republicans want a roughly 600 to $800 billion package. democrats want more than 2 trillion joining us now to talk about dc's battle over spending and potential tax hikes. senator mazie hirono the great state of hawaii with the lowest property taxes. thanks for joining us. we're going to talk with you about the covid-19 crimes pac

that you co-authored let me mention your memoir it's called "heart of fire, an immigrant daughter's story." i want to talk -- we're going to talk infrastructure. since it might be today, are you expecting your bill to be voted on today senator schumer said it could be today. >> could be today, could be tomorrow depending on how the republicans want to deal with some of the amendments that some of their members want, which maybe have nothing to do with the bill itself. we'll see how that goes.

congress needs to stand up. >> 150% increase in antiasian hate crimes in the 16 largest u.s. cities. exactly what does the bill do to address this because there are laws on the bo books. you can't do this anyway how does it customize it to this problem? >> there are hate crime laws federally. not every state has hate crime laws all of these kind of crimes and incidents are vastly underreported. what this bill does which i call a very noncontroversial bill requires department of justice to appoint a person to expeditiously review these kinds of crimes and incidents and to work with state and local law enforcement to enable them to do online reporting and to expand to advocacy groups because the aapi community which represents

over 40 racial groups, 300 languages, they need to be reached out to so that they know that when thee things happen to them, they should report it. >> and we will be paying attention whether it's today or tom tomorrow certainly seems like something that shouldn't have a lot of resistance, one would think. >> one would think. >> the infrastructure, senator cornyn said we will do 7 or 800 billion of pure infrastructure if you will focus it the latest thing is there are some bird bath concerns about a lot of things that are in the 2 trillion that eearen't going to pass muster. if you do it on reconciliation you will miss out on things. will that make you more inclined to work with republicans on a

smaller bill >> this is not a time for a small half measure approach that the republicans like to focus on 600 billion versus 2.5 trillion, that is a huge gap this is a time for us to think big, move big, move large because we need to get our economy back on track. we need to create jobs for people i realize that certain segments of our economy are doing fine, wall street and others are doing fine tech industries are doing fine during the pandemic, but millions of people are out of work this bill will get our economy back on track. republican thinking is really limited. they don't consider removing lead pipes to be part of infrastructure and of course it is. >> there is somewhere between 600 billion and 2.5 trillion

where you could address a lot of infrastructure, much-needed infrastructure i guess my real question, senator, is there any chance this is not done under reconciliation is there any chance the two parties decide on something? there was hope there were going to be, you know, signals sent out that president biden would do things that way on a more bipartisan -- i guess you'll blame it on republicans, but if it's reconciliation, that certainly isn't bipartisan >> but it also means we actually get things done for the american people that's what the democrats are focused on when you have not a single republican voting for the rescue bill, that gives you an idea of where they're coming from. and they're not coming from a place that says we should be helping the vast majority of

people in our country, they're very focused on helping wall street corporations but it's not good for the rest of our economy, even jamie dimon has said when we brought the attention to providing resources for hard-hit communities, economically distressed communities, that is not going to help overall the health of our country. coming from jamie dimon, i think we should all listen. >> it's not just republicans you might have trouble paying for it with a 28% corporate tax because of a democrat or maybe a couple of democrats, senator manchin. do you think there will -- would you support and do you think there will be a compromise on that part of the legislation the 28, maybe it will be 25? >> there could be because

there's no doubt there are tax cuts without a single democrat voting for it. we're in a situation where everybody should be paying their share of taxes and the corporations are not if we're going to argue about the amount of increase for corporate taxes, maybe there's a compromise there but, of course, where i am is that we should raise the corporate taxes to 28%, and there might be compromise there, but there are other issues that have to do with tax overhaul. ending the tax breaks for fossil fuels? my goodness, that should have been done years ago to close tax havens for corporations. to a number of other things. >> when you say the tax cuts benefitted corporations greatly, that almost sounds like you're saying that in a negative way. can you explain why it's bad

i don't know if you think a corporation means the ceo or means -- a corporation, i think, includes shareholders, it includes employees, it includes, you know, being able to invest in research and development and to expand and to compete globally all of these things that work to make the private sector the economic generator of all of the things that we're using. why is it bad that corporations benefitted from that bill? >> when that bill was passed without any input from democrats, that was supposed to be -- it was kind of like a trickle down situation they were supposed to create jobs, et cetera. they weren't supposed to increase massively the pay for ceos, et cetera. there's all kinds of evidence that says the 1.5 trillion in tax breaks for 1% of the richest corporations in our country certainly did not trickle down to create good-paying jobs for our people it was mainly benefitting corporations and so they are not

paying their fair share in taxes. you have some corporations that pay zero taxes that is totally unfair to say the least. >> senator, we didn't get to talk about "heart of fire," pretty great story coming here when you're 7 years old. coming from what island? what island? >> i live on oahu, honolulu, which is where the majority of people live but we have a very diverse state and every island has unique charms as you probably know. >> you're right, i do. i've said that many times. the absolute worst island is otherwise the greatest place on earth. >> there you go. >> am i right or am i right? >> you're right. >> i haven't been to linai because i don't think -- steve case hasn't invited me i'm kidding. >> there's another guy that owns that island now.

>> senator, great to have you on today. >> thank you >> hope to see you again good luck with "heart of fire". >> aloha. >> i have not been there yet anywhere, when we come back, we're going to break down the new line of products that apple teased and we'll dig deeper into netflix' earnings. the numbers and guidance they've given the street are investor fears big enough to justify the 8% drop we saw in the stock stock was down as much as 11% last night. those stories and much more next "squawk box" will be right back. . worth is a partner to help share the load. wealth is saving a little extra. worth is knowing it's never too late to start - or too early. ♪ ♪ wealth helps you retire. worth is knowing why.

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welcome back to "squawk" this morning two faang stocks in focus. shares of netflix tanked after they missed first quarter subscriber numbers julia boorstin joins us. want to go to josh lipton. he has a wrapup of apple's latest unveil. >> apple packed a lot of news into that 60-minute show let's start with the new high end ipad pros. the first to feature the m1

chip it's a custom designed chip, faster revenue surging 41% in the company's q1 apple unveiled a new imac. it uses the m1 chip. it's a lighter, sleeker machine. both the ipad and imac will be available in the second quarter. the chip shortage is not having much of an impact on the new products apple debuted the air tag which helped to track and find misplaced items, keys, wallets it costs $29 and is a direct challenge to tile. it wasn't just hardware. apple announced a new podcast app including a redesign and subscriptions adding fuel to its rivalry with spotify and others in the audio streaming war no surprise that tim cook is interested in this space this year emarketer says nearly 118 million americans are going to listen to a podcast at least

once a month now over to julia boorstin for a look at the netflix numbers. julia. >> thanks so much, josh. well, netflix may have beat expectations on the top and bottom line, but its disappointing subscriber growth and guidance sent the stock down 10% in after hours trading now down 9%. they do tell an important story about the impact of covid and the streaming landscape. netflix was right. it added 20 million and it was a pull forward with first quarter subscriber growth. 4 million coming in less than 2 million lower than expectations while guidance for 1 million additions in the second quarter, that's less than 1/4 of expectations this comes as the domestic market does mature this is the third straight quarter of under 1 million net additions between the u.s. and ca canada the netflix co-ceo reed hastings says the user growth decline is

not a result of competition. the largest competitor is linear tv and the second is youtube it's a pull back of the pull forward and covid. >> it's intensely competitive but it always has been we've been competing with amazon prime for 13 years, with hulu for 14 years it's always been very competitive with linear tv, too. so there's no real change that we can detect in the competitive environment. it's always been high and remains high. >> hastings and his co-ceo ted serandos says they're optimistic about growth and the numbers restarting they notice churn has decreased despite price hikes and they say there will be more shows and original films launching on the service in the second half that should help bolster the growth, andrew. >> julia, netflix experimenting on cracking down on password

sharing. what's the company's plan there? >> reporter: well, it was interesting. it came up a couple of times on the call and they said they didn't want to turn the screws on their users they didn't want people to feel upset or uncomfortable about the way they were starting to enforce this crackdown they wanted to make sure the people watching netflix are paying for netflix they will address it and they will limit the amount of password sharing we didn't get the details but a number of estimates say over half of households or half of households are sharing passwords. i think they're going to move carefully and slowly in that direction. >> real quick, any estimates of what they can capture of that? 50% of these things are being shared to a second -- do they get, you know, 10% of those people >> no, no estimates. very cautious. they were very cautious. they think they're going to be able to figure out different types of subscription offerings so maybe you would have more

than four streams but they didn't even address the numbers, they just said we don't want anyone to feel like we're turning the screws on them. >> okay. we'll see how they feel about that julia, thank you great to see you joe, over to you. >> thanks, andrew. coming up, additional commentary on the netflix numbers that you don't want to miss with light shed partners rich greenfield. he was right he was right about "what's my agent. i think i might be learning how to speak french just from watching it. we're also going to get him to weigh in on the nfl's announcement that red zone will be available on hulu's service by august. stay tuned, you're watching "squawk box" on cnbc

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welcome back to "squawk. before the break we heard about netflix's disappointing subscriber ads in q1 we'll dig deeper into the stock story of the morning with rich greenfield, lightshed partners co-founder and recommender of all shows including "ask my agent. it was a good rec. let's talk about the stock were you surprised more importantly, what does this portend not just for netflix but for, frankly, all of the sort of stocks that have won during this

pandemic and even the subscription business model itself which seemed to take off like a rocket and now there's questions about its staying power. >> first of all, andrew, the quarter was disappointing. no way around the fact that other than guidance for q2 being more disappointing than the q1 results, that said i want to remind everyone watching today, this has happened before, many times, actually. i mean, the reality is forecasting netflix on a quarterly basis has become increasingly more challenging as the subscriber base has grown. the size of the beats and the size of the misses have grown notably. if you go back, i remember being on "squawk" in the middle of 2019 after that q2 print, we tend to all have a habit of over extrapolating any one quarter and try to change the entire future of where the world is going. if you take a step back though, i want to get to your question on all the other platforms, the

reality is, what's going on? everyone is shifting to streaming. your parent company has jumped in with peacock, discovery, paramount is part of viacom. never one is moving towards streaming. all of the best content is moving to streaming. you had hans on. verdict verizon just reported, a crazy rate of decline in video subscribers. comcast is talking about losing upwards of 2 million video subscribers in 2020. so the underlying trend of the shift to -- from linear to streaming is just beginning. remember, on a global basis, just keep this one stat in mind, in all of asia pacific netflix has 27 million subscribers it's a market with hundreds of millions of potential subscribers over time. so, again, it's very easy to get caught up in the negativity and being upset about q1 numbers

the reality is there's a long way to go. we're still pretty early in the transition to streaming television >> okay. fair enough. but the larger question is what does it portend for the subscription business more broadly in terms of just the pace of growth and how much was sped up by the pandemic. therefore, how do you calculate what comes next? >> well, i mean, look, the way we were thinking about it is if you were to look at -- if you take netflix's q2 guidance, you look at the prior four quarters, q3 through 2020 through q2, 2021, they're projecting roughly 16 million subscriber net adds over that period of time in the four quarters before that, which was obviously driven by the pandemic, both really q1 and q2 and a really good end to 2019, they added over 40 million subscribers in that prior four quarters again, andrew, if you go back to what does this mean for the future, the average of those two periods is obviously, you know,

in the high 20s. i think the reality probably lies somewhere in between, right? this is not -- you're probably going a little too far too fast. look at disney think about the explosive growth of disney. does anyone think disney is going to have the type of growth in the next three years that it had over the past 12 months between launching and the pandemic surge all of these factors have led to, you know, really exponential growth that is going to be hard to keep up with, but the underlying trend, especially as the rest of the world starts to catch up in terms of demand for streaming television, i don't think the underlying trend has changed at all there may be a bit of a pause. the one other thing i want to highlight, i think you and joe just highlighted about "call my agent. the reality is netflix and all of these services are really driven by, you know, blowout content. when they don't have a blowout content or show in a given quarter, i do think that they end up suffering and so i think we do realize that net ads, not

churn, but net adds -- gross adds, sorry, are driven by huge programming. if you listen to netflix, they could be lying, but the comments seem to center around the second half slate is incredible and really heavily weighted. the type of numbers of numbers could see in the second half of this year, my guess is it is really going to surprise people and i think we will be having a very different conversation as we move into q4 than we're having it right now. >> you called "ask my agent," it's called "ask," sort of close, you know, but in french, it had a different title you know what the title was in french, rich. >> no, i don't. >> ten percent >> the french word for it, ten percent. and every french sentence ends in a word i know and all of the stuff before it.

like facade or controversy and i'm getting where i can speak french now rich, give me another, because i love it, my wife loves it, it's all set in paris, and real location, with real french movie stars, by the way, too, what season are you on, now, rich >> i'm on season three if you haven't watched "lupan," watch that, season two in q3, the most watched series in q1. new series i think when new shows come back, you got to really, you got a really heavy weight q3, q4 slate. and movies >> rich, one of the questions i wanted to get to is this idea of churn. it was not as high as i would have anticipated in part, i thought it would be higher simply because we are, and i want to say, "call my agent" is a great show, obviously in french, it's a show with subtitles, you know, there aren't those sort of marquis

shows on these services right now because of the production issues that happened before, and so my question, i think longer term, is what kind of churn are we going to see? or do you think that everybody is going to have such a fabulous slate, come q4, that nobody, that nobody leaves any of these services >> well, look, i think the question you're asking is can everybody win. i mean we tabulated recently, we did a blog post and we tabulated if you took everyone's protections out to 2024, global subscribers would be like 1.2 billion, from like 600 million last year, it's pretty staggering in terms of sort of that growth. my gets is yes, there are going to be clear winners and clear losers, i don't think everyone will be able to achieve their expectations, i think there's, you know, these service, it's really quite easy to add subs in year one, for all of these new services, as you start to get into year two and three, like consistently adding subscribers,

year after year, just a lot harder, and i think that's why you're seeing disney i give bob a lot of credit, he's dramatically ramping the spend at disney plus, after realizing how hard this is in year one and that's why the content budget has doubled and so i do think it's going to be, you know, the answer to your question is andrew, it's all dependent on spending, if they don't spend enough, they're going to have churn. the reason netflix doesn't have churn is there's so much content to watch, that it's hard to leave once you're there. are they bringing in as many new people no but the people who are there are sticking because there's so much content there. everyone's going to realize there's a reason why netflix spends $17 billion on content. they need to keep people and it is really hard in that spot to keep people. >> rich, thank you at some point i want you to come back because i want to talk about the nfl and hulu, but another day, another topic talk to you soon. >> great for hulu subscribers. not so good for fubu subscribers. >> we'll talk about that

>> thanks, andrew. >> hey, joe, parlevoux francais? >> speaking french now >> every sentence, when you see the subtitles, oh, it sounds just like, but there's a lot of words that i actually -- >> a lot of words. >> i'msounding like such an ugly american, and i am, the ugliest of all, but god, love paris. love paris. >> let's get over to cnbc headquarters and check in with jim cramer hey, jim, 16 hours ago, you tweeted that you weren't sure there was enough to really figure out how to trade netflix on that right now, but you've got a lot of time to look this over and do your research and i wonderwhat your take-away is now. what happened? how do you trade this? >> i do believe the derisk, as

rich said, basically, it can be beaten and not necessarily the correct one. these guys have not been upgraded in the forecast and i think the most important one in the whole call was saying listen, there are 800 million tvs, it's the top, other than china, that's how a lot of, it has a lot of room to grow. i agree with that. i think they were constrained by what they were showing i don't know, i mean i think this is an opportunity i really do. i mean maybe they can take it back to 490, but becky, or becks, i like that, i like the becks, i do strongly believe that these guys are so confident and it's not made up, $5 billion buyback, they're fixing the balance sheet, there's so much that's good that i still think they're having a great time. one day there will be a conference call where they literally say, okay, maybe things have run out. that's not this one. this was was basically pull through and don't worry about it and i agree with them. i think this is a very good

story. >> there's the call. stock's down 8.4%. can't wait to hear more. see you in a few minutes. >> thank you, becks. >> thanks. "squawk box" will be right back. all the things, all around you where you learn, work, and fly we help make them healthier. we are the people of abm. for more than 100 years, we've been a leader in making spaces cleaner, from the things you touch to the air you breathe. today, more than 100,000 of us are innovating to ensure spaces are more efficient, healthier and safer.

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welcome back to "squawk box.

we've got notable analyst calls driving pre-market action today starting with shares of norwegian cruise lines, gaining over a percent, roughly 300,000 shares of volume helped along with goldman sachs, upgraded to buy from neutral and they cited factors like better fundamentals on the horizon once sailing resumes with demand being driven by that pent-up kind of leisure demand travel watch those shares as well next up are shares of coinbase down about a percent 100,000 shares of volume the recently public cryptocurrency exchange gets started with the coverage of rosenblat with a buy rating of $450 price target based on optimism over the long term prospects of coinbase given the widespread adoption of crypto and a long term category leader. end on shares of amazon. down fractionally. 10,000 shares of volume. the web services giant gets named a top pick by oppenheimer. already a outperform rated stock and gets upped to $4200 a share. and they call it the best large

cap pick and talked about investment in categories like grocery, pharmacy and advertising markets. >> i just like that you described what amazon was, what did you call it? that's nice that you do that i wasn't familiar with it. >> just in case. >> thank you, dom. thank you, becky thank you, andrew. make sure you join us tomorrow "squawk on the street" is next good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber futures are soggy again, after the worst day for stocks in about a month. investors reacting to netflix, verizon, the apple product announcement we will see if we can avoid three days down for all major indices. we haven't done that since early march. our road map begins with the netflix sub stumble. shares are down ahead of the open on top to be the only faang stock now negative for the year. >> plus, it's all about apple. a bi