31st the anniversary of a black wall street which the app is named after. >> frank holland thank you for bringing us that news. that's going to do it for "squawk on the street. "techcheck" starts now have a great weekend. happy friday welcome to "techcheck. i'm jon fortt with deirdre bosa and julia boorstin carl has the morning off today an exclusive with microsoft ceo satya nadella. microsoft's vision for the future of hybrid work. another exclusive with evan spiegel. and finally, apple ceo tim cook takes the stand. the latest from the courthouse and the apple epic trial

julia? >> well, jon, stocks extending yesterday's gains. nasdaq back in positive territory for the week, although still in the red for the month dow session high this morning is 331. the major indices near the flat line at this hour. deirdre? >> julia, today we start with mixed reality. satya nadella has a vision for the future and hybrid work and joins us in a few minutes to explain. and so does evan spiegel as snap leans further into augmented reality and joins us in a few minutes as well. what's the point here? these are two names, guys, that have thrived during the pandemic and investors believe are also making tools that will work for reopening. snap works at the home and in the wild microsoft is building for an office anywhere. jon and julia, we talk about this often and look at companies that are big and looking to bigger markets snap calls itself a camera company, becoming much more than that and jon, microsoft clearly isn't just an enterprise company

anymore. it's cloud, it's gaming, it's linkedin, social networking. >> part of what it comes down to is hybrid is harder. people talk about how much you want it and workers who are really into it can be productive, julia, but when you don't know where people are exactly going to be day to day it makes it more important to know what capabilities they have, make sure they're on to the hit hit to collaborate so many are trying to think through and microsoft trying to exercise some thought leadership here and probably sell a little teams, a little office along the way. >> well, yeah. i can't wait to hear what satya nadella says about about that and ask what evan spiegel says about that as well this is an app that has benefitted from people being at home, utility for people communicating, but they see huge opportunity, jon, to really be a tool as people get out into the world.

they've been investing so much into their map technology. augmented reality technology people can buy things on the go. that will be the future. snap's role in this hybrid world that we're all re-emerging into and we'll have to talk about that with evan spiegel coming up. >> we haven't mentioned spectacles yet, but not so much a revenue thing, but it's interesting to see snap once again kind of taking this vision of the future forward. >> yeah. you're seeing that reflected in the performance this year. take a look at snap, shares are up 14% year to date because of this idea that it works sort of in this mixed reality at home and in the wild. you compare that to a pinterest right, which is more conducive to being at home, to lockdowns that is actually negative year to date. even twitter, which has been rolling out so many different product releases and is

experimenting more, julia, they're getting there, but it's only up less than 1% so far this year >> yeah. and snap is a company that does believe it can transition and did see a boost from people getting out into the world and making new friends that they could snap with. back to jon's question about those augmented reality glasses, snap is trying to show it's at the forefront. it's introducing the next generation glasses before consumers can buy them, years before consumers will be able to buy them, but they really want to be able to be leaders in this space and, of course, microsoft has been a leader in the augmented reality space for enterprise, jon. >> we got them both on "techcheck." businesses transitioning to a hybrid model, microsoft ceo satya nadella sat down with 200 ceos to talk about the company's blueprint for the future of remote and hybrid work and satya joins us now exclusively to talk about that satya, always good to see you.

>> hi, jon great to be with you. >> i want to get to the hybrid stuff and microsoft's experience during the pandemic, but i have to start off with bill gates because this is very much been in the headlines, not his personal life, but where it relates to microsoft's workplace policies and culture gates' reps have acknowledged he had an affair with a microsoft employee that started a little over 20 years ago, i believe, while he was still chairman of the board in a suite executive as chief software architect. what i'm wondering, is that acceptable in today's microsoft? if not, do you have policies in place? are you making policies to discourage that sort of behavior in the suite going forward >> jon, the microsoft of 2021 is very different from the microsoft of 2000. to me and to everyone at microsoft, our focus on our culture, our diversity, our

inclusion and particularly the everyday experience of our people is super important. it's a huge priority not just in the abstract sense it's about being able to confront your fixed mindset each day so we can prove. the fact that anyone can raise any issue, even an issue from 20 years ago, we will investigate it and take action, to the satisfaction of the person who has raised it. we have no forced arbitrations, so i feel that we've created an environment that allows us to really drive that everyday culture which is a super important thing and where i'm focused on. >> to follow up quickly is there a policy to discourage that sort of suite behavior going forward? >> there is a policy that's been in place since 2006 and where you have to disclose any

relationships and the power dynamic in the workplace is not something that can be abused in any form and the most important thing is for us to make sure that everybody's comfortable in being able to raise any issues and for us to be able to fully investigate it. >> got it. let's move more broadly to talk about work and the future of work you have this study on hybrid work and part of it cites some work you've done in microsoft china saying that about three days a week of work from home is near the sweet spot and also that leaders need to normalize this satya, are you going to work from home for a set number of days per week? how is microsoft working through that >> that's a great question, jon, because one thing that we are doing is taking our entire playbook, even our framework, we've open sourced it, because i fundamentally believe different regions of the world and parts of our economy are all going to deal with what is hybrid work differently. if you think about it the paradox of the data is what you

just referenced. in china where we've been open for a while and australia where we've been open for a while, you have different things happening. in china we have 80% of the people back at least three days a week australia, it's 20%. there's significant variability. the other one is in our own survey data amongst our own employees that 70% or so want flexibility and when and where they work. at the same time, 60 plus percent want in-person interaction. right there is the paradox when you think about hybrid work there's not going to be standard keyword is flexibility to deal with that complexity, the framework we are applying ourselves is, you know, about how you change process, how you think about people, how do you form social capital, knowledge capital, human capital, on an ongoing basis, how do you change the place, right i don't think there's ever going to be another -- people are going to say, you know, things like i want a seat at the table

will mean different things i can be remote and have a seat at the table going forward you don't node to be in the room where it happened or be in the room where it happens anywhere what is fundamentally a place will change. there is no more remote or virtual selling or virtual support. it's just selling support or remote work is just work i think whether it's people, whether it is place or process, operationally will change in a significant way to adjust to what i think is a new norm of hybrid work. >> i know i've gotten used to that bookcase behind you since we first talked last march during the pandemic and i think you said you were kind of working out of the bedroom and your family helped you get set up in a comfortable positionp with we'll see how that continues. you mentioned people, places and process which is part of the framework you've used. this is happening when microsoft has to call an audible at least a year before the pandemic, you were starting this big commercial real estate

expansion out there in redwood, washington looks like a multibillion dollar project. how are you having to change the way you're planning your spaces and how people are going to interact in them as you're rolling that out and spending this money is it a significant shift for you? >> yeah, for sure, in the sense of how we use the space i think is going to fundamentally change for example, we are even doing the studies right now as we speak even in the campus that's built and that's being built, using badge data, data from the sensors in the buildings around activity, as well as the microsoft 365 data, so the meetings that are being held, who is attending, how many people are remote or in person, all of that to understand even, jon, the square footage required one of the things we found in the early research is you need at least when you are in the state you still need to account for social distancing and others you need space, but you don't want it to be such, so isolated that the purpose of why you come

to work is defeated. everything from square footage per person as well as every meeting room, right, so there's no notion of a round table anymore, you have to make sure that the placement of cameras, the desks, all are optimized for both people in person and the remote participant no remote participant will ever accept another meeting where they're seeing the backs of the heads of people in a conference room they want to be fully participating in a meeting and we are taking a full look at all of these with a fresh set of eyes. >> go deeper into that teams has had a big year it was a background i think app in a way in office before you were pushing it, trying to push it to the forefront, but for so many businesses it came to the forefront. as the team that's developing teams, i imagine had to rework the way it works how have you changed the philosophy and the velocity in your engineering organization

around that? have you shifted the focus of the sorts of capabilities that you're adding? have you been able to shift the way you're collecting information from customers about what they need to give you an edge >> absolutely, jon teams is a great example see, if you think about the simple two by two grid, right, which is synchronistic communication, whether in person or remote, if you take that, you could get away in the past being good or world class in a couple quarters today going forward in hybrid you have to be world class in all the quadrants. the fastest growing media type at microsoft is asynchronous catch-up of recorded meetings. i watch it like i watch a streaming show or news, i go back home and see, i missed that part of the meeting or replay the meeting, go to the person's comments, summaries, that's the type of capability teams has built. in fact, going forward, every

meeting will be a teams meeting, even when people are together because one of the things that, you know, the chat in teams has changed. my own life as a manager and leader completely, right flattens people talk about how the grid view flattens the organization but i would say chat flattens the organization because anybody who is in the meeting can comment, contribute and their ideas are heard. to me, being in a meeting where you don't have chat anymore will be problematic because if you want to make sure everybody can participate. i think there's really structural change coming out of the habits we built. while at the same time celebrating the human connection. >> another thing that's changed, satya, is security, the threats. we've heard about ransomware and we remember solar winds was not too long ago as you move into hybrid, the threat surface expands how risky is that? how prepared is microsoft and

the ecosystem you're a part of to deal with that aspect of remote work where now you have to not just worry about the offices and systems but people's homes, their roommates in some cases where they're living in close quarters become a security issue, night. >> absolutely. i would say it was always an issue and become really a front and center issue, right. as you said, the threat surface area has increased as well as the threat actors and their sophistication we are tracking 40 plus nation state actors, maybe hundreds of criminal groups on a continuous basis so we have to have their operational security posture as well as a technology architecture around zero trust the fact that we can take trillions of events every day and use it to learn more, to protect more, of our customers is going to be key even including home networks and all the remote sites and all of the connectivity that people will expect going forward you need to basically assume a

breach and protect yourself. that i think zero trust approach end to end starting with identity all the way to applications and end points, infrastructure, is going to be the key. >> finally, satya, we got evan spiegel from snap, the ceo, coming up in just a few minutes and he had an announcement about spectacles and augmented reality. that's your house. this year you announced that big pentagon contract, multibillion dollars for some of the technology behind hallow lens for some specific military capabilities, but are you still pushing this eventually toward the consumer as well and snap getting into this, is this good for microsoft or bad for microsoft? do you want to stay on the line and talk to evan >> first of all, it's fantastic to see the progress snap is making it's just -- evan is an amazing product leader and ceo and i admire his work. it's great to see what he's doing in terms of his own

spectacle work and in general about the progress snap is making to us, mixed reality absolutely is a new paradigm. we think about really what is happening with mesh, which is that ultimate cloud service that helps people have real presence irrespective of whether it is the snap spectacle or halo lens or anything from facebook or apple. we think going forward people will expect a rendezvous service in the cloud that helps them bridge in some sense their presence across all devices. that's a core focus in some sense and, of course, we will want to have vr goggles tethered to windows, halo lens, which is just absolutely taken off in the pandemic in the commercial context, right everybody is using it for remote assistance one of the things when we talk about hybrid, you got to remember, even during the pandemic, lots of people were showing up for work. in fact, i'm reminded by all the ceos and all the other industries of how critical it is for frontline people to be able to, in fact, get to the

expertise, maybe an engineer working from home, and one of the ways that bridge has been formed is through the remote assistance in the halo lens. we're excited about the future in commercial, which ipass, as well as the consumer opportunities both 2 d and 3d mr. >> i suspect you'll be talking more than a little next week at microsoft build, the developer conference hope to see some news from yes out of there good to see you on "techcheck. hope to have you back soon. >> thank you so much. >> sounds like, you know, he's welcoming evan and snap with open arms when it comes to mixed reality, among the other things around hybrid work and the future that he talked about. >> yes so much in that interview, jon just to your point at the end there about the augmented reality piece, he was welcoming evan spiegel, very complimentary to spiegel and his leadership of snap, but he also indicated that they are going to be competing in the commercial -- not just in

the enterprise commercial space but in the consumer space around augmented reality. it will be interesting to see how that market expands. deirdre, what are you thinking in terms of what satya said about this future of hybrid work and the role of software like microsoft especially at a time when there's so many concerns about security >> yeah. when he talked about augmented reality, people expect a service in the crowd that can bridge across devices so you know he's thinking bigger than sort of a device, a tool, but building something in the cloud which i thought was interesting. jon, i kind of laughed when he said he seemed to imply his media of choice was meeting recordings he sort of goes back and watches them i think we need to get him some more netflix series or a few recommendations. >> yeah. >> it speaks to the capability that he says that teams has built and you asked him about the amount of data that they can collect now in this hybrid work

world and it's an interesting and perhaps a little bit of a scary thought that all of our meetings in the future can and maybe will be recorded and that ceos and management can look back on them and perhaps that means more progress, it means more scrutiny as well and that could be a good thing, but also maybe a scary thing. >> yeah. i don't think -- anything to worry about outside of maybe microsoft employees going back and streaming the meetings i think it's important to note on that first conversation question that he addressed around bill gates, it's phenomenal that now this is so much satya nadella's company he can talk about how policy as shifted and we're talking about things that have to do with microsoft and bill gates is a bit of an afterthought when it comes to the operations of this company. 20 years ago, bill gates, even though he had just stepped down as ceo, was without question the most influential person at the

company. when nadella took over he emphasized gates would be an adviser. i don't think many people think satya needs gates' day-to-day advice any more. >> he sounds the part and proving it in his actions. meanwhile another big story we're watching, tim cook, takes the stand very soon. we will get you the latest next. an exclusive with the ceo of snap as you've heard a big hour of "techcheck" is just getting started so it's another day. yeah- that's what most people think. but in business it's never just another day. every day is the day.

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say. here apple says, oh, no, 30%, 30%. i mean it's criminal well, it's not criminal. >> let me ask you this though -- >> it will be criminal. >> that was some sound from barry diller earlier on "squawk box" that hasgone viral. he was talking about apple and those app store fees and the legal battle royale between the two companies, epic and apple is nearing an end apple ceo tim cook is on the stand today for the very first time josh lipton has the latest what's going on? >> so, julia, tim cook was escorted through an underground garage this morning, so we don't have any good visuals of his arrival to show you, unfortunately, at that courthouse in california where apple is battling fortnite maker epic games apple wrapping up its legal argument in that fight here's what we expect from cook today, roughly three hours of testimony, about 90 minutes of

direct examination by apple lawyers, one to two hours of cross-examination by epic lawyers, then about ten final minutes of redirect examination by apple attorneys cook expected to testify about a range of issues, apple's corporate values, business and operations, development and launch of the app store and competition faced by the company. this is, of course, a high-profile moment for cook as he defends the iphone maker. the pressure is on he's used to it at this point. cook has been ceo for nearly ten years and he's prepared for this fight, reportedly including hours of practice from former prosecutors chosen by his legal team back to you all. >> yeah. josh, thanks for bringing us the headlines. a long day for him, but not that he isn't used to it. new ar glasses and 500 million active users that's the latest out of snap's development conference evan spiegel joins "techcheck" in a cnbc exclusive. that's next. stay with us

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is making. product leader ceo and it's great to see in terms of his own spectacle work and in general about the progress snap is making. >> that's microsoft ceo satya nadella singing evan spiegel's praises and spiegel is going to g join us in just a moment >> hi, jon good morning here's what's happening at this hour home prices soared in april to a new record high. the median price is over $340,000 up 19% from last april. apple fell unexpectedly a third straight month fedex raising surcharges for large shippers in some cases the

fees are doubling. the changes go into effect on june 21st and fedex shares are up following this news shares sinking for the parent company of vans. down about 8% after posting mixed quarterly results. big earnings beats from many other retailers. it is official kansas city southern abandoning its merger agreement with canadian pacific. the railroad's board says $33 billion bid from canadian national is a better deal and kansas city says it has paid canadian pacific a $700 million termination fee which will be reimbursed by canadian national. back to you. >> thank you so much, rahel. snap yesterday hosting a partner summit in which it unveiled a range of new augmented reality tools enabling virtually shopping for many of them. there were tools for content creators to help them make money on snap's platform

joining us now to discuss, snap's big investment in augmented reality and what's next is snap ceo and founder evan spiegel thanks for talking to us this morning. >> great to be here. thanks for having me >> so evan, you got some compliments from satya nadella about your expansion in the augmented reality space. i want to start with the news of the morning which is that you're buying an augmented reality hardware company waveoptics for about $500 million tell us why it's so important to have hardware at a time when it's going to be years, you said, before you introduce true augmented reality glasses to consumers. you have the spectacles, they haven't taken off. why so much in augmented reality glasses if you say they could be as much as ten years away? >> we're excited to partner more closely with waveoptics. we've been working with them for many years on wave guides, the piece of glass and spectacles that allows you to see 3d

graphics in the world and the projectors that help project that light on to the glass these are sophisticated and complex components and it takes many years to push the boundaries of what's possible to increase the brightness and field of view which makes spectacles much more immersive, to reduce power consumption and weight to make the product more wearable this represents a long-term investment in the future of spectacles and we're excited to be working with their team more closely. they bring so much expertise, years and years of development to the table and now we're really able to work together over the long term >> but i have to go back to the time frame here. how soon will it be before consumers can actually buy these augmented reality glasses before they become a money maker for snap >> we've been taking a step by step approach with spectacles. we started working on them seven years ago. this is our fourth version this is only for creators. we have 200,000 people using one

studio to build augmented reality lenses and now can distribute in one click on spectacle. we're focused helping those to he release more broadly to consumers there's all these experiences ready to go on spectacle. we don't have an exact timeline to share today, but we're working on future versions of spectacles and excited about the possibility to release them to consumers in the future. >> before i get into more of the features already out there and that you talked about, yesterday i just want to return what satya nadella was talking about, microsoft has been a big player in the enterprise augmented reality space. i'm wondering if you can imagine competing with them in that enterprise space or what you think about microsoft becoming more of a player in this area that you're so interested in and with consumer products >> we really admire microsoft in everything they're doing they've been leaders here in augmented reality as well. it's been fun to collaborate

with them and our teams talk a lot about the future of ar it's something we're all passionate about you know, i think our focus today is primarily on creatives. we believe that spectacles are an amazing creative tool to take what's inside your imagination and make it real in the world around you that's been our focus. i know they've been focused on epts prize and military applications but i'm sure over time, you know, we'll be able to see all the different ways that ar can be applied. i think the thing that makes ar so exciting today is despite it being such a nascent technology, it's already used by hundreds of millions of people every day on snapchat alone and hundreds of millions more around the world for something that's so new, the market is already huge and growing really quickly. >> yeah. it will be interesting to see how snap and microsoft become competitors in the future. now, i want to hear a little bit more about the tools and the services that you announced yesterday. a lot of them are about shopping

facebook and instagram have talked about how important shopping is going to be for their platforms. how crucial is shopping for the future of snap >> ar plays such an important role in commerce and we've been so excited by the uptake i think a lot of that was spurred by the pandemic as retailers moved t try on and trial of their products online what was amazing to see was the conversion rates really increase when people were able to try on products in augmented reality and that spurred a lot more investment into tools to help different retailers and brands bring their products to life in ar what we released yesterday were more tools to help empower ar commerce there are now voice commands to interact with lenses as you're trying things on ask for different types of apparel. we have a true size technology that shows you the exact right fit of new sunglasses on your face and, of course, really sophisticated tools around simulation so people can try on outfits and see the fabric drape

over their body the way it would in the physical world. so there are a lot more tools for folks to build really sophisticated lens experiences and continue driving commerce through augmented reality. >> good morning. it's deirdre you talked about competition with microsoft, but you're also facing competition from the likes of other big tech like apple and facebook that may be targeting more of the consumer market but they're doing so in public snap on the other hand is building spectacles in public alongside creators and developers talk about that decision and the benefits of doing it that way out in the open. >> hey, deirdre. it's a great question and get to the heart of our strategy which has been to learn and collaborate together with our community. what we found building all of these tools like lens studio for the 200,000 lens creators that are already using it today, is that we get to just listen to them and hear what's working, what's not working so we can iterate and improve our

developer tools. that's the same for spectacles we've already gotten this next generation of spectacles into creators hands we're learning what creators want to build and how we can improve the interaction using gestures and voice and gaze so all of these learnings help us accelerate our development of ar technology overall. so we found that that collaborative approach has worked well for us and powered a lot of our innovation. >> you also introduced a number of tools for content creators to make money on the platform does that indicate that you're trying to make sure that those content creators stay on snap as opposed to going over to tiktok or to instagram? how much of that is about the competition between the platforms? >> we find that content creators like to use lots of platforms for different reasons. but what we can do is really focus on making sure that the creator experience on snap chat is super compelling not only because we have a large audience and amazing creative tools including lots of ar lenses and

our new product story studio, a standalone application launching to help people edit videos in a precise way and be inspired by the trending content on snap chat, but also, because we provide monetization opportunities for creators, whether direct payments through our spotlight rewards program or now through gifting where fans can essentially use snap tokens, which is in our in app currency to buy gift and give them to creators we're excited about all the new ways we're able to help creators monetize and build their business including linking shops, for example, to their profiles so they can sell merchandise. we'll continue to evolve the platform to meet the needs of creators and make sure that snap chat is a great place for them to build their business. >> when you talk about these in app purchases and spending, if it's within ios you would be paying 30% of that to apple because it would be within their app store. right now tim cook is testifying

he's testifying about that very issue which epic sued apple about. i have a two-part question for you on apple one, what is your perspective on that 30% cut that apple takes of anything that happens on its platforms? number two, have you started to see an impact from apple's change from your ability to target ads >> i guess at a high level we feel like snapchat wouldn't exist without the iphone and amazing platform that apple has created. i'm not sure we have a choice about paying the 30% fee and, you know, of course, we're happy to do it in exchange for all the amazing technology that they provide to us. in terms of the software, but also in terms of their had ware advances, which has made the ar experiences on snapchat much more immersive, better at mapping the world around you apple has been a great partner for us and helped us to grow our business over time and we're aligned with them on the changes they're making to help protect

privacy. so far, the early investments we made starting almost ten years ago to protect user privacy on our platform are really paying off and we've been able to help our advertising partners navigate those changes, migrate to ski network, apple's way of measuring advertising efficacy and so far that transition has gone smoothly for our business. >> fascinating you have a very different perspective than barry diller and tim sweeney at epic about that 30% fee, the fact that you're happy to pay it evan spiegel, ceo and founder of snap, thank you for joining us to talk about all of your ar innovations you rolled out yesterday. >> thanks so much, julia appreciate it. >> guys, fascinating stuff here. the idea that he's so eager to par participate in the 30% fee and partnering with apple, how different snap is than facebook on so many levels, jon.

>> i was going to say, jokingly, kind of, i think we found the first thing out of snap that facebook is not going to copy. its feelings about apple and this ecosystem i want to put that in the context of satya nadella just singing his praises as well and i wonder whether snap is going to be able with snapchat to have that like button moment that i think accelerated facebook in such a special way, deirdre. i don't remember how long ago, but that created this broad surface in which facebook is relevant snapchat still an app, i see augmented reality stuff, but when does it become something people are doing as part of their shopping experience regularly in the physical world? that could be -- >> well i would say in terms of the physical world -- >> leading the way in terms of -- >> julia, i was going to say we talk about gaming leading the way in terms of a meta verse but

this is what snap is creating to when you think about shopping and they're doing with augmented reality. maybe they're trying to create something there. his comments on apple so interesting. he said i don't think snap would exist without apple and if the company considers itself a camera company who has made more innovations in this space than apple. we're looking at apple versus epic, front and center, heard from barry diller, but heard from the ceo of major gaming companies like zynga and they're on the apple side as well and say we're happy to pay the fees if it keeps the ecosystem clean and safe >> yeah. look they certainly benefit having that good relationship with apple for sure, but it's interesting, i think that what we've seen from snap it is becoming more of a utility outside of communication originally snap was a messaging tool between friends and now they have all of this map technology that is going to be over laid on the world around us i think as people get more out

in the world, we are going to see that map feature really becoming part of things. speaking of apple, apple ceo tim cook is testifying now here are some pictures of cook entering the building just a few moments ago. we'll get you the latest details. that's coming up when "techcheck" returns. stay with us

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taking you back to that oakland courtroom right now. tim cook in the elevator there has taken the stand at the apple versus epic trial after arriving less than an hour ago. josh lipton has been listening to the testimony if open he could have heard the latest comments from evan spiegel. i hope someone texted them. >> tim cook is on the stand. arrived this morning at that courthouse in california where we know apple and epic are battling it out. he's on the witness stand. the first part of what is going to be a long day for tim cook. about three hours on the stand roughly. he is talking first and foremost about privacy, safety and security they are critical, cook says we know epic has criticized apple during this trial saying its app store wasn't as secure as apple was implying.

suggesting we know apple fired back at that and gave new data saying it rejected almost 1 million apps submitted to the store for the first time last year cook saying that his company's apps review process is not perfect, cook saying in that courtroom, but saying we do a really good job. more talk about security, cook saying ios is far more secure than the competition remember the backstory here, epic is trying to force apple to allow it to install alternative app stores on iphones and cook is reiterating why that's a potential problem from a security standpoint as he sees it for users for the commission rate on the store they're getting into that as well and cook emphasizing in court that 85% of apps on the store are free for the rest he says 15% for developers that have less than 1 million in revenue per year that covers most developers or 30% for others rivals have responded to apple's moves. cook pointed out google has now also lowered its fees, cook

saying developers in his words are pleased from the move from 30 to 15 how about the impact of the app store. cook is saying it's been in his words an economic miracle and given consumers access to an enormous level of innovation developers do incredible work. going to keep listening and bring you more headlines as they come. >> thanks. i know i've had a few conversations with tim cook over the years. you've had a lot more. i don't envy the lawyers who have to cross examine him this morning and afternoon. we'll see how that goes. and now moving on, remember wee work some news from them next "techcheck" is back in two ♪ it feels so good to be cared for. ♪ ♪ back up now, ♪ ♪ just a little more. ♪ ♪ the feeling someone's always there, ♪ ♪ just to show how much they care. ♪ ♪ the feeling you're not alone, ♪ ♪ now she's a part of your home. ♪ ♪ with so much to protect each day, ♪

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get the food you love with perks from... - [group] grubhub! - [announcer] grub what you love. wework releasing some of its first quarter financials its net loss surpassing $2 billion, almost four times the amount from a year ago period. within that about $500 million went to a settlement with co-founder adam newman it included nearly half a billion dollars in restructuring and other expenses red to building exit activity while there are signs of recovery from the pandemic revenues fell near 50% year over year and wework lost more than a quarter of members over the last

year the ceo has said a focus on flexible work coming out of the pandemic could boost its prospects, and it is certainly what he is selling to investors in the upcoming spac guys, these latest financials, it is just a peek under the hood, does tell us there's still a long ways to go, julia >> certainly it will be fascinating to see how that evolves. it definitely plays into the conversation jon had with satya nadella from microsoft checking on shares of virgin galactic, lifting off again after an upgrade at ubs, up 27% just this week up about 4.5% right now. read more on that call at cnbc.com/pro "techcheck" is back in two

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morgan stanley saying that you can actually teach an old dog new tricks, upgrade img data dog to buy citing the company's growing market share in the cloud. those shares are up 1.5% "techcheck" returns after one more quick break some say this is my greatest challenge ever. but i've seen centuries of this. with a companion that powers a digital world, traded with a touch. the gold standard, so to speak ;)

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you don't need to be in the room where it happened you can be in the room where it happens from anywhere. what is fundamentally a place i think will change, a process there is no more remote selling or virtual selling or virtual support. it is just selling, support, or remote work is just work so i think whether it is people, whether it is place or process, operationally will change in a significant way to adjust to what i think is a new norm of hybrid work >> that was microsoft ceo satya nadella, with us earlier this hour, talking about the future of remote work and hybrid and doing it all together. you know, it is not easy

returning and going to this hybrid schedule, i think, julia, is part of the point here, especially because of this dichotomy, people saying they want flexibility but also they want to see people in person in the office it is kind of like i want flexibility, but i want everybody in the office when i'm in the office. it reminds me of the word problems in high school math where you had to figure out which gnome was wearing which color shoes and which hat. all of a sudden interaction tift becomes tough >> yes, you are saying people want their cake and to eat it, too. but i want to point out we are continuing to watch tim cook testify in that apple lawsuit. he said that the app store is an economic miracle and he just said he is not a gamer, so fascinating stuff coming out of the lawsuit and his testimony right now. >> who would have thought? what did we learn this show? satya nadella likes to watch meeting recordings, tim cook not so much of a gamer i wonder what kind of media he is consuming as we close out the show we should note we are continuing to watch the apple/epic trial

the nasdaq has turned negative on the session, underperforming the dow and s&p 500 but still on track for a positive week, up about half a percent on the week we will continue to track markets. next week is a busy one. let's get to "the half" now. ♪ ♪ all right. thanks welcome to "the halftime report." i'm scott wapner only the greatest debate in the market right now, is the environment bullish or bearish for your money investment committee tackling that big question this friday. joining me, brynn talkington, manager partner. michael farr, the president of farr, miller and washington. jon najarian as well let's go to the markets. dee just told you about the nasdaq turning negative. the growth is looking for its first positive week in five. the dow is positive better than 200. s&p is positive. ten-year note yield at 162 it hasee