highly valuable to ai, obviously at the core of ai. but i think value is accruing now. out towards the. application layer, apply to ai. and that means. >> if i were to do this. >> but they're going to roll a brick right over our head. we are out of time. i would love to have you back for this, but thank you for joining us today, steve. we appreciate it. also, my thanks to both mike and to robert. we will see you right back here tomorrow. right now it's time for squawk on the street. >> good wednesday morning. welcome to squawk on the street i'm carl quintanilla with jim cramer and david faber at post nine of the new york stock exchange. futures a bit soft amid some lumpy. corporate earnings guidance and continued worries about trade relations with china. ten year yield now the lowest since mid-december. as bonds focus a bit on the growth implications. a road map begins with the ai arms race, though, as. spending continues to ramp. >> alphabet and amd. >> delivering the latest. >> read on the ai boom. >> plus, apple shares. >> are under. >> pressure this morning. china

is. >> reportedly considering a probe. into the company's app store practices. and uber sees its, quote, strongest quarter ever. bookings outlook though perhaps seeing as being a bit disappointing. >> at least if you. >> look at the pre market. >> for the stock. >> we're going to. >> discuss all. >> of that. >> and. >> a lot. >> more with uber ceo in just. >> a few minutes. >> let's begin with alphabet today under pressure this morning after posting a quarterly revenue miss hurt in part. >> by a slowdown. >> in cloud company also announcing plans to invest $75 billion in capex this year. that's a big revision above street forecasts. this is what the cfo had to say about that spending strategy on the earnings call last night. >> as we expand our ai efforts, we expect to. >> increase our investments. >> in capital expenditure. >> for technical. >> infrastructure, primarily. for servers, followed by data. >> centers and networking. >> we expect to invest. >> approximately $75 billion in capex. >> in 2025. with approximately. $16 billion. >> to. >> $18 billion of debt. >> in. >> the.

>> first quarter. >> the expected. >> total investment level may fluctuate from quarter to. >> quarter. >> primarily due to timing of deliveries. >> and construction schedules. >> jim. >> that's about a 30% revision higher. meta's was only 20% higher. >> you're listening to the call and you're thinking, well, okay, it's pretty good and a lot of good stuff here. youtube is really strong and there's a lot of profit, a lot of money being made. youtube, and you get very excited. and then they just drop a total bombshell about how much they need to buy. and david, when i'm listening to it, i'm saying to myself, well, what happened to deep sea? i thought we all were supposed to be cut. did we all just get hammered on the deep sea story? well. >> kevin didn't get had he knew he knew. >> the 1865 economist. >> back in great britain. >> we're talking about a. >> lot last week. jevons paradox, because, listen, i don't think any of. >> us expected and i think we said this last. week when we got the commentary from many. >> of these. >> companies that they would suddenly. reverse their capex. >> in some way. but i think what perhaps is a bit more surprising is the increases.

>> you mentioned. >> meta's. >> which occurred on friday, i believe it was. 60 to 65 billion. microsoft, at least 80, probably 85 billion, some say will go as high as 90 billion this year. >> and then you. >> just referred to that significant increase in capex from alphabet to $75 billion. the numbers. >> are stunning obviously. and they all point. >> to potentially an overreaction. >> i guess some would argue. and what happened to nvidia. >> stock price i would add to. >> that. >> jim, that alphabet shares. >> are going to be down in part because of. >> the deceleration. >> in the. >> growth rate of cloud 30%. yes, still. >> a very strong number. >> but not as strong as it had been. >> but what do you make of the comments on the on. >> the call. >> when the. cfo said the. >> cloud misses. >> due to being supply constrained. >> more demand. >> than available capacity, doesn't that say good things for nvidia? >> yes it does. it says great things. now, what people are still concerned about is if you noticed in their verbiage that they're going to be the first to

sell. blackwell well, wait a second. i thought blackwell was selling like mad. so that was a pause. second, we have one more in this gantlet will amazon say that they're going to pause? why didn't alphabet say, you know what, we're in light of deep sea. we're going to maybe pause our spend. but they couldn't because they're an honest company. and an ashkenazi who's a cfo is not going to let them do that. i mean, carl, we sold down nvidia because of a belief that you didn't need all this capex. so far, everyone has said they do. amazon is the one that has the most that they're working on. that's away from nvidia. but if amazon says, you know what we're going to need to do capex, then nvidia is going to go up rather dramatically. >> yeah, amazon's going to be key thursday night. city today though does trim nvidia to 163. >> i saw that. >> they point out it's been. >> flat since june. >> right i mean i read through that. i said to the guys i said to jeff marx and ben stutter,

all right here they go. here come the downgrades. but the downgrades seemed almost out of sync. it it really was much more of like, all right, this thing is not moving. so like, let's get away from it. it was not substantive. the only substantive thing i really found was that i keep thinking that blackwell, which is their next iteration, is selling like mad. and to have the first customer learn that the first customer is finally taking it tells me that it's going to be much more forward and not now in front of us. but it's going to happen. because obviously, if we're spending all this money, you're going to get blackwell. so then you say to yourself, why do you need blackwell? why do you need this incredibly important platform that has software? well, you need it for both inference and you need it for training. there are people who said with deep set, you don't. now there's an outfit that i've been dealing with called ew.com. and that's not you, johnson. it's y-o-u .com. i really like yukon and what's it's one of those companies that is really ahead of deep sea. it's way ahead. so i said, oh my god, this is going to hurt a bit. and

he said, well, no, actually they're our largest investor. so i mean, they're just once again you just find this the long knives came out, whether it be china, whether it be biden, whether it be these big hyperscalers that said, listen, we don't want nvidia or we want to scale back in nvidia. and then something happened which just said, you know, i guess we can't. and then, you know, amd didn't help the case. yeah. because amd did not do well this. >> no. >> on on data. >> center in particular. those shares. >> are looking down. >> a bit. yes. >> and there we get a little downgrade out of citi today. >> yeah. >> that was something. >> on data center. >> for amd. >> but i mean just back to the bigger. >> bigger picture that we talk about often in terms of the incredible growth. >> of data. >> centers overall, i. >> did think it was interesting. and some. >> of the commentary on. >> the. >> call from alphabet, you know, among the world's most. efficient infrastructure as well. google's data centers. deliver nearly four times more computing power per unit of electricity compared to just five years ago. jim.

>> and yet. >> the numbers just keep. going like that. >> no, they. >> power consumption. >> everything else. >> and even with deep seek. >> and the efficiencies that they may have come up with in. >> some way. nobody's pulling. >> back on saying, great, but we need more and more powerful chips and we need even more. >> electricity. >> i would say. and i keep hoping that the glass replaces copper, that some people want to do, that. i keep hoping that cryogenics from dover replaces just the typical cooling product or water cooling product. they dover has to scale and the copper movement to glass is a very nascent one from actually led by a woman who's from nvidia. so i keep coming back to well, nvidia has figured this out, but people don't want. people want a price break from nvidia. they do. and maybe a lot of this was okay. jensen, while you're off there in the lunar new year meeting the president, we need a better deal because this thing is rumored to be 35,000. it's not a chip. we keep

using the term chip. it's a platform with software. that was another thing that people were missed on deep sea platform. with software, they can charge more and you can use the current plug it into the to the software. >> but i mean, if everybody. >> needs it. >> then why cut the price? there's no real competitors and they all seem. determined to just increase their compute capacity as much as. >> they can. >> i mean, again. >> back to sort of the commentary, right? alphabet's cloud customers consume more than eight times the compute capacity for training and inferencing compared to just a year and a half ago. eight times. >> no, i mean, look, when i talk with jensen about blackwell, i mean, black hole is video. i know that i talked too much about robot robots, and i know that. but if everyone gets a robot, which is the vision of the guy who runs doge, then we would all need a lot of nvidia power because nvidia has robots that don't walk into walls and aren't stupid. nvidia has nvidia. let's go back to rewind the tape about why we liked nvidia so much. they were so far

ahead of everybody else. well what happened? we found out that amd has fallen behind. we found out the hyperscalers tended to need more than they got. we did get a deep sea story out of china, which said that they didn't spend a lot to be able to develop this product, which i think has now been proven to be false. that's not just a peter navarro narrative, an anti-china narrative. there was a sense that maybe the chinese lied. >> i don't know, jim, on that. >> one, i don't know. >> i also heard the other story, which is, well, it's actually very close in terms of what they actulypent to what is spent. >> to train. >> models here as well, that the differential is not that great. >> right? okay. differential not great. that's a better way to put it. i mean, look, i think that the when you wake up and china is doing what the justice department is doing to apple, and then we think we freak out when they're actually considering it. and i don't mean to jump around too much, but i do think that. but i'm hearing the music and we didn't mention apple. and when i hear music for people at home, that means shut up. but apple did. you know when you look at what jonathan kanter, who's around these days,

is talking from the justice department, talking about what they want apple to do? well, the chinese communists are a little bit less aggressive than kanter. interesting because he. >> doesn't work there anymore. >> no he's he's going to work here. >> rattling around. >> your head. well, but i think what's interesting is. >> he doesn't matter anymore okay. >> but apple would tell you that they were really tough and i would have come out and say they were tougher than the communists. the justice department was tougher on the communists. i want to know how many communists are in the state department. >> oh, boy. really? back to the 50s. >> yeah, we're going to go right back to the 50s. stu. stu who was stu stu symington. put he challenged mccarthy. >> you're going to get he's going to get to apple. >> and the degree to which. >> they are collateral damage. if this trade war heats up we'll talk some uber as well. down pre-market. dara khosrowshahi is going to be here. >> at. >> post nine says the company just had its best quarter ever. we'll talk mobility and delivery stock is moving lower. >> take a. >> look at futures here. on another busy. >> session in. >> session in. >> the middle it's time to feed the dogs real food in the right amount.

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>> all right, this is important. uber shares are moving lower despite fourth quarter revenues that beat expectations. so we've got to dig into that. maybe the stock could be wrong. uber ceo dara khosrowshahi joins us exclusively here at post nine. look i'm going to start with what i regard as being important which is gross bookings. that's always been the number i measure you by. they seem to be pretty good. but maybe you can disabuse me of that. >> well, i think they were pretty good. we actually saw acceleration. you know, usually as companies get. >> bigger, they slow down growth. >> we saw acceleration in. gross bookings 21% on a constant currency basis. it was driven by trip acceleration to trips grew 18%. faster than last quarter. and really it was driven by audience. more and more people are coming to uber on a monthly basis. over 170 million monthly active. platform consumers again accelerating on a year on year basis. and we're able to grow the top line while growing the bottom line. adjusted ebitda of

1.8. >> billion. >> up 44% for the past year. we threw off almost $7. >> billion of free cash flow. >> and we're putting it to work buying back stock aggressively. >> as well. >> okay. and that's very important because people might say, wait a second, why are they doing that? the operating income looks like a big miss. but when you dig down the operating income, you realize that there is a very big legal issue to make it. so that is not the metric that we should be focused on. >> well, i think what. >> we do is we. >> try to estimate as best the legal reserves going forward. it's not a part of day to day operations. and again, i think the truth is in cash flow, so to speak, and the 7 billion of cash. flow that we delivered on this. last year is the biggest number ever. and we think it's going to continue to grow going forward. >> do you think for some of my colleagues that they're still believe, even though waymo's doing 150,000 a week, which i'm still thinking is not all that big, that there is an existential threat from autonomous vehicles away from you, and that that could be some

sort of overhang where people are saying, i'm scared. >> well, i think autonomous introduces both uncertainty and a huge opportunity for us. if we look at the us market, for example, we think autonomous. >> alone in. >> the us can be $1 trillion market and the tech is definitely. get there, getting there, but the commercialization is going to be much more challenging, right? >> to be. >> able to deliver autonomous at scale. for perspective, we're doing 33 million trips. >> a day, right? >> those are the kinds of. scale that we operate at, and a bunch of stuff has. >> to. >> come together first. the regulatory environment has to get there, right. and it's national regulation, state regulation. city regulation. it's going to take some time. because regulators need to get comfortable with this new technology that's operating in the streets. cost of a mistake. >> is really high. >> second, what you need is a superhuman safety record, like the opportunity that you have with these robot drivers isn't just to be better than humans. they could be multiple.

>> times better. >> than humans. and i think the industry should take that opportunity and increase the bar on safety appropriately. as a result of this incredible opportunity. third, you need to mass produce these cars affordably, right? >> it's not. >> about 100 cars or 1000 cars. you need hundreds of thousands of cars. that is going to take a while. and the oem industry is definitely taking notice. they're investing. but you know, these vehicle platforms takes years to develop. then once you have the vehicles, you need to operate them on the ground. fleet operations. it's a ground kind of game. we're very. familiar with that. we already have fleets. all over the world. and then you need really high utilization because the cars are expensive. you need to operate them at high utilization, both during peak times and during. >> troughs as well. >> right. the only way you bring all that together, this commercialization is with uber and the av industry. it's going to take a while. as that time passes, you're going to see a lot of autonomous players coming in with these big transformer

models, with the deep seek moment that we that we saw, the development of this technology is going to be cheaper and cheaper and cheaper. but we think that with the safety promise and with a partnership like ours, we can build autonomous to be a very, very big. >> you obviously have thought a lot about it, but we are getting a real world test. >> case in san francisco. and i'm curious as. >> to. >> what you're seeing, because. waymo seems to be doing fairly well. >> are you losing share or. >> are people driving less? >> you know, it's actually interesting. and this goes to the scale. waymo is doing a great job. terrific partner. we're going to launch with them in austin in atlanta in san francisco actually q4 our growth accelerated on the mobility business versus q3. so it's just too small at this point to make a difference in the overall business. and this isn't like globally, this is just in san francisco. phoenix, their business accelerated la or business accelerated. >> so you'd. >> expect the same for austin and. >> atlanta. >> i think in austin atlanta it's going. >> to it's going to be. >> your business anyway. >> right. and so we absolutely do think it's going to accelerate because it's going to

be a different product coming into the uber ecosystem. and one of the ways that we have grown is building out all kind of innovative new product, you know, uber for business, low cost two wheelers, three wheelers share high capacity vehicle. autonomous is going to be another choice. and i think what you'll see in austin, in atlanta is the uptake of av is going to happen at a very accelerated pace. and what we've seen in phoenix is our customers love the product. so what's wrong with that? >> if and when there is a mishap right in a test market or as this thing grows, what's the industry. response going to sound like to reassure the public that is still trying to get their arms around this? >> well, i think that the first. >> responsibility of the. >> industry is going to be to have taken the proper care and diligence before the mishap. right. and i think if the industry can demonstrate absolute care, these are real lives, you know, in our hands on the streets, then i think there will be some forgiveness. and i think we need clarity about

safety standards. and regulators have to take their time to figure out what that right safety standard is. things will go wrong. they always do. the cost of things going wrong with autonomous is much, much higher. therefore standards have to be very high. that's why. that's why to us the bar is in human better than human. it's got to be superhuman. >> yeah. i want to get to the stock price. >> if i can. >> because our. >> viewers can see it's going to be down. >> about 5%. i talked. >> to a couple of. >> investors, right? >> or wrongly, they say that the mobility. >> guide. was a. >> bit lighter and they wonder why. >> so why was it was it insurance? was it ethics? if in fact they are correct in their assumptions? >> well, i think when you look at mobility, first of all grew 24% on q4, very consistent with q3. there were some fears of a slowdown. it didn't show show up in terms of mobility going forward is one is foreign exchange has a big effect on us. we have a really huge business in latin america. and, you know, the argentine currency, brazilian currency, mexican currency have had their effect. that doesn't affect the core business and our costs and our revenue and costs are in local

currency. so the effect on profits is much less, which is why you see the really strong profit guide. the other factor as it relates to mobility are the fires in la and some of the weather related disturbances. but when we look at the mobility business and kind of the core, there are 24% growth, very, very stable, really strong, continuing to grow very quickly in the industry. and overall, you saw our gross bookings actually accelerate, which you don't see with too many companies of our size. >> so i know that domino's would say our partnership has worked very well with you. i know that we see these situations like walmart, like costco, where they can have advertising be a huge line. how big can advertising be for you? >> well, so we've taught one is advertising. we have passed the billion dollar mark and we're kind of marching. to two. and our our targets are much higher than that. we talked about advertising being about to getting to about 2% of our bookings. on the delivery side, we think that can go higher. we're getting very, very close there. the demand and the growth

that we see from advertising continues to be really, really strong. and as you know, it's a very high margin business that we can either put to the bottom line or reinvest in some of our growth initiatives. >> i'm going to the super bowl, and i understand the no caps. can you shift will people are there going to be why can't there be 5000 new uber drivers. >> so that's actually you know, i think there might be more. >> than that many drivers. >> this is what we talk about in terms of managing supply and demand. we communicate to our drivers. super bowl is coming. it's going to be really high demand. often we give them incentives to get them to position themselves at the right times around the stadium and that weekend. so i think you're going to see plenty of uber supply. that's one of our specializations to handle the ups and downs of demand. and we think with av in the mix, we can even do that better. >> i want to thank you darren. we can talk to you all day. it's a delight because you're you're very wise to what's happening. i tend to discount the stock these

days. people don't understand. they should just listen to you. i think they get a better view. >> well. >> you know, while the stock is cheap, we get to buy it back, and that's not a bad thing. >> well, 1.7. >> billion inches free cash. >> flow will help you do that, right? yes, absolutely. my guest. absolutely. >> thank you for. >> coming on. thank you. >> take another look at the pre market. we'll get to some other movers as well. we'll watch pdg mattel. harley snap, chipotle and others as at least the dow futures have gone green. don't go away. >> we aren't building electric vehicles because it's trendy. we're building them to save our planet, to save it from all those soulless self-driving sleep pods. everyone else keeps polluting our streets with. that's why we're doing it. >> for 32 years.

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and so their margins get squeezed. very typical of what's happening at this moment. >> all right, jim, let's get the opening bell here in the cnbc real time exchange of the big board. it is real estate brokerage compass. and our friend robert reffkin there on the podium at the nasdaq platform as a service via. jim ross. william, watch some of these. i don't know would you argue that the guidance this week mark some of the others? e.l. has been difficult or not? >> funny you mention those two because of china. if you have china then you are open for question because people say, well, wait a second. if you take a look at merck, did they really deny their people gardasil, which is a terrific vaccine? and then you say, well, wait a second, maybe the vaccine problem is rfk jr. pfizer, i thought, had a good number. well, what was going on there? rfk jr. so you've got this kind of split where the drug stocks are really getting hurt. it's hard to get them moving. you do

have this endless debate about how much people have to spend capex, and we've heard it from almost everybody. but i think that in general, when you get up in the morning and you see a sea of red and you think everything's going to get down by the time you get here, you say to yourself, well, wait a second, what really went wrong? disney was down hideously today and i found myself saying, david, i know you're doing this. why are they selling it? so you you dig, you dig, you dig, you speak to you, john. you get back and forth and then you realize maybe they're selling it because it's wrong to sell. >> well. what? they're selling it because it's wrong to sell. >> they are looking at a particular line. oh yeah. well, in this case of disney. >> plus, that didn't happen. >> no. but disney plus was i mean, there are many, many lies. and one of the things that's happened is we should tell people there might be 12 important ones if one was bad disney plus because they decided they had a little bit more churn because they raised numbers. and then people say, well, wait a second, netflix doesn't have

churn. and all i can say is netflix is a beast. and if you're going to go up against, you're going to make a comparison. netflix. i mean, that's like making comparison to the 27 yankees. >> netflix is a beast, by. >> the way. i'll give. >> you another beast. let's get back. we'll get back to disney. and no, youtube is a beast. getting back to alphabet. absolute beast, shares of. >> which are down 7%. we obviously spent a lot of time on. >> alphabet's quarter at the top of the hour. >> youtube was not an. >> issue though. 14% growth there. in advertising to $10.5 billion in advertising revenue for the quarter. >> you annualize that. >> put a. >> nice multiple on a. >> 14% plus grower, and you probably getting a market cap that's not that far off. if this was a public company from netflix, given. >> those kinds. >> of numbers. >> and obviously some of the metrics are amazing. viewers globally streamed. >> over 1,000,000,000 hours of youtube. content every. >> day. >> every day. >> so compared to like cable companies that, you. >> know, not as. >> not it's. not it's.

>> a little bit better, it's a little. >> bit better to watch some cable companies for the same price or lower the last decade. >> it's a little bit better. >> in fact. >> that's more than. anything else. >> youtube is number one in terms of that. but back to your point. >> disney's numbers, you know, were strong. they've hung in. >> there. >> in terms. >> of. >> subscriptions with a significant raise in prices, which got them. >> to profitability and fairly significant profitability when it comes to direct to consumer, where they are now just going through some of the. >> numbers here, you. >> know, $293 million in. operating income. >> versus $138. >> million. >> loss for the year ago period. and moving into. >> more and. >> more profitability. so that's significant. >> for them. >> and it yes. >> it's not netflix. let's not forget. >> that netflix quarter because as i said yesterday, it just it silenced everybody. >> in the. >> industry for. >> a while saying whoa.

>> my god. 18 plus million subs. >> added. globally over. >> 4.5 million added domestically. everybody's like, they're out of people. how can that be possible? and yet it was. we haven't seen any growth numbers in subs from our comcast peacock. nothing. disney plus nothing. >> in fact, they are pointing. >> to a. modest decline. >> in disney. >> plus subscribers in the second quarter for their outlook. jim. >> but at the same time, i think bob iger would say how many ships is in does netflix have? how are the netflix theme parks doing when they release a new movie? i mean, netflix, i thought that the theme parks were supposed to hurricanes. everything was supposed to be, you know, the gods turn on them. obviously the fire wasn't in this quarter. and i say, you know what? that's a good business. and now netflix doesn't need it because netflix walks on water. i mean, netflix is incredible, but when i look at what disney is doing, i say, geez, you know, i thought that theme parks were too expensive. obviously not. i did they use salesforce, by the way, and it's

really kind. >> of uses. >> salesforce, very big salesforce, and they're getting a lot more out of an individual customer. by the way, you johnson, formerly of pepsico, he runs a conference call that says to me what a pro these guys are pros, i like that. >> i'm sure you do. >> yeah. >> nice chat with him on squawk this morning where he did talk about continued consolidation, at least the number of offerings that consumers will have to juggle. >> right? right. >> yeah. >> back to netflix. >> right now. and they're starting to get ready for. the rollout of espn plus of their streaming service. for them, it's a tile right now, but it's obviously going to be more robust. >> i'm there for that. i need to have that for my excessive gambling that i do. because of schefter. >> i didn't even know that that was part of. >> the no. i just like schefter very much because i have a gambling basis. other than that, maybe this weekend. >> i did see a. >> bright spot for. >> for the yet to be named cable. >> spin off of comcast. you did. and that was in. >> comments from mr. iger as.

>> well about. >> linear networks. >> let me put this in some perspective. >> you may recall an interview we did in the summer of 2023, where at. >> that time. >> mr. iger recently sort of back in charge, raised the prospect. >> of potentially. getting out of the. >> linear networks. he is saying. >> things that. >> are quite different right from that period of time. more than a year and a half ago. at this point. take a listen. >> we actually are at. >> a point. >> where the linear. >> networks at our company are. >> not a burden at all. they're actually an asset. >> we are programing. them and we. >> are funding them at levels that actually give. >> us the ability. >> to enhance our overall television business. >> that obviously. >> includes and leans into streaming. >> which, let's. >> face it, is really the future of the. >> television business. so while. >> i won't. rule out the possibility. of some. >> of the smaller.

>> networks in some. >> form or another. being configured differently. >> in terms of how we how we. >> bring them to market, maybe even ownership. but we're not right now. >> we actually. >> feel good about the hand that we have and. >> the. >> manner in which we're. managing both the linear and the streaming businesses across the. >> board at disney. >> linear networks. >> did have a. >> decline of. 11% in operating. >> income, but still. >> about $1.1. >> billion. >> in that category. >> guys, i just thought those were. >> interesting comments. >> obviously. >> and we. >> are going to be. >> living life in the not too distant. >> future as a public company of our own on the fortunes of our linear networks. >> i like the fact that for most streamed shows in the us blew up on disney plus, gray's anatomy, family guy, bob's burgers. i'm not sure you know that one. >> i do. i know. >> them all. you do? >> yeah. >> no more. do you really? yeah. good for you. >> yeah. and what? you're on youtube.com. you're on youtube, right? you're not on cable

anymore, right? >> i was on youtube and cable. now i'm back to cable. well, go back to you. i don't know, it's i'm all over the place that. that's why. >> i looked at the. >> youtube numbers. >> that product spectrum. >> every day. i think it's appropriate number. >> of latency. it's got latency. you know, what's going to happen is you're going to see saquon run for a touchdown on cable and then maybe what, eight seconds later he runs for a touchdown on youtube. and that could be a problem if you're doing like inter game gambling without. >> a doubt. >> which is why. >> i'm on cable right now. >> there you go. >> yeah. >> nice story i think it's the journal looking at the eagles offensive line, the tallest and heaviest in super bowl history. >> yeah there's a there's some great videos being put out that vic fangio the guy who was our defense. you got to watch this video because he's just basically saying i'm throwing these cards away. i'm throwing that cards away. what's the best pizza in philadelphia? i don't want to see arrogance. i don't want to see arrogance. i want to see hungry. i want to see let's go hunt. but there is an element

which just says they're not looking like 2022, where you kind of felt that they were in awe of disease. now down. yeah. >> okay. >> that that was a bad quarter. did i do that? no one where no one watches bob's burgers but you. you listen to them. and in 2022, they were they were scared about mahomes. now they just focused on themselves. and i think that's better. howie roseman has put the great piece about howie roseman yesterday. can i just go ahead. >> can i stop this. >> and go ahead. >> about amd for a. >> minute by. >> the way. but yeah can i talk about amd i mean i know you got this big game coming up. whatever it's. >> called i don't care. why don't you explain to me disney. >> i did explain disney to you and i think i did a darn good job of it. let's move on to amd. now why don't you explain what's going on there? double digits. >> oh, you were so good at digits. you were so good at disney. why don't you take a shot at amg? >> all right. >> data centers came in at a lower. >> number than you anticipated. >> let me. >> just say. >> the they have a transition going on to. >> so you're going to defend

here. is that what you're going to do. >> no you're not not okay. no you can't because it was indefensible. they basically talked about how things are going to be flat, that they don't really have the right chips right now. they are doing very well versus intel on the less expensive cpus, but they're kind of missed the cycle now. they'll catch up in the second half, but you don't hear them in the mix. that's the problem because they don't have the right gpus. >> well, here's. >> what lisa. >> sue, this company's ceo, of course, had to say on the call. >> oh. >> you have it. yeah. specific to data centers. take a listen. tell me that. >> the data center i business 2024 was an outstanding year as we accelerated our ai hardware roadmap. >> to. >> deliver an annual cadence of new. instinct accelerators, expanded. >> our raycom. >> software suite with significant uplifts in inferencing and. >> training. >> performance, built strong customer. relationships with. >> key industry. >> leaders, and. >> delivered greater. >> than $5 billion of data center ai revenue for the year. >> all true, but ai revenue is

flat to down for the first half, and there's going to be margin dilution, which is why you're seeing this. there's an inventory bill. there's poor leverage to what they're doing. this again cuts to you know who i don't need to say it anymore because i say it too much. i'm betting. >> well, next month is the anniversary of the high, which when it was 227. >> well. >> i mean, there was a time look, she was putting up, she was putting up very, very big numbers. she is i took about $5 billion projection. she's making that. but what most people say is wait a second. this is a halcyon time for what she makes the gpus and she's not delivering. now we're going to hear, i believe from from we'll hear from and you're going to hear arms saying, listen, we're winning that arms race in cpus too. and so there's just a lot of them. and they they have a they have a confluence of things with, with jensen. but i just come back and

say rene haas doing better at arm. jensen huang doing better in nvidia. intel doing worse. but their cpus and it's just it's a product glitch so to speak. but look i think she'll be back. they're making a lot of money but it's got it's fallen very much out of favor. and we got a downgrade today. and i just feel that people just say, you know what. nvidia won. nvidia won another round in the long knives are out for nvidia. we're waiting to hear what they're going to do with china. we know that there are a lot of people who say that amazon is going to talk about more custom chips. maybe that's broadcom. but amazon so far is not using amd gpu. and that was what the customer that they really needed. and i don't see it. >> do we think the apple weakness today is about this these headlines that china may i approve of the app store of their own. >> yeah. i mean i think that they're trying to figure out what to do. the chinese now that was we may look at it now, this is something that i think if eddy cue were here executive at

apple, he would say, oh my god, we just did that with justice. now we got to do it with these guys. but you know, david, when you when you go after something that is a really good margin business like their service revenue, everyone just gets a little bit nervous. but the stock has been down down down down, down. people are saying well i don't know, maybe it can stabilize her. yeah. >> i mean that said, everybody looks at what the hyperscalers are spending on capex and then looks at apple and says, oh, maybe it's going to work out for them. >> because they're not spending anything. >> right. even though i would argue, at least at this point, their ai initiatives have not been taking the market by storm. >> not yet. well, that's. >> is that a. >> convivial way to do it? thank you. has anyone just watched what meta does? >> yeah. meta goes up. >> every day. just goes up every day. >> 12 in a row. longest in its history. it would go for 13 today. it's never done that before. >> well, that last quarter was beautiful. i mean, when you talk to them, you realize they figured a lot out. and i remember chiding them for thinking that i wasn't going to be number one. it is number one. now, remember, it's more for

social like i'll look at it to see who what act i can see when i go to the super bowl and that i will tell me. but if you look at it for high energy physics, like my nephew and writer would be, would do because he was a greek and latin scholar, switched to high energy physics at harvard. he was, he might say, you know what? meta ai is not for him because he was in the same class as zuckerberg. >> you know, the second biggest ad buyer on meta was last month. teemu. >> teemu. >> as we're. >> now heading. >> back to. >> that, headlines from the postal service about yes. >> no. >> yes. >> no. yeah pdt was down three premarket. >> i think. that we don't seem to know. we don't have a handle on what to do with pdt. >> no. you know, no, i guess we don't. but i mean teemu and sina are huge. were you remember when they sent the advertising numbers surging their meta previously social? they used the platform very aggressively. >> have you been hit by the teemu box like my daughter does some social. she suddenly gets $200 for the teemu stuff. it

arrives. >> no. >> you know, i'm like i'm watching the smokey the bear ads and she's talking about teemu. we're all in the same boat. >> let me change and move the conversation to another name that you like. chipotle. >> okay, so. >> this is another story this morning. stock down about 4%. top line grew at 13.1%. total revenue was $2.8 billion. and same store sales up 5.4%. not enough. >> no because they did talk about the future. and the future was not great. january was not a good month, negative month. a lot of people are going to hope to be saved by the honey chicken, which is incredibly popular. but there was a by the way, the costs were fine. a lot of people were worried about avocado. turns out they sourced 50% away from mexico. that was good. they're doing a lot of stuff behind the scenes that i think are very good to bring costs down. but i mean, carl, when you have a weak january, people just say, look, what have you done for me lately? and what have they done for them lately is not great. as much as i think

scott is doing a good job. and what can i say, they didn't shoot the lights out of the january. you dove in on on food costs and avocados. >> that's what i thought was going. >> to be. and here's what scott told jim last night. our supply chain team has done a remarkable job over the past couple of years, with vendor diversification across all ingredients, specifically avocado. we've moved into other countries of origin like peru, dominican republic as well as colombia. and today only about 50% of our avocados are sourced from mexico. >> yeah, that was very important because i think the big wrap was wait a second, mexico tariffs. what does it mean. we also got a similar thing by the way mattel. >> i was just going to say. >> that yeah that in a crisis for. >> mattel i know they import a lot of avocados. >> huge huge avocados input into the toy. >> i mean mr. potato head also. but they got mr. avocado head. >> although mattel went a step further and said we will look at

raising prices jim. yes, they i think they only sourced what, 40% from china. >> right. but they kept that barbie has has. >> priced as mr. potato. >> head chocolate. doesn't you can put through price people don't buy them now a lot of i've been doing a lot of work for slide show. and when you go into costco and you go on to amazon, you find that there's a lot of products that have been commoditized, but you can't commoditize barbie. david, not a chance. >> no. no way, no way. >> barbie. i want you to know. >> that barbie lives. >> and they have a lot of movies coming. you know, christ is hitting out there buying back stock furiously. >> spot that chipotle ceo joined you from. was that his office or his or his home? do you know? >> same place i don't know different from you. remember that guy you used to run the sec? that thing. >> gary gensler with the fireplace. >> yeah. well, i sometimes i come in and i get the. and the amazon's got that fireplace on my tv. what is that about? >> i don't. >> know, jim. that's because you don't have youtube. >> i, i don't have youtube tv. yeah. >> it's true. youtube by the. way when hearst does the tush

push, you don't. >> he just calls it the sneak. >> he gets the he gets a touchdown. but on the youtube it's not even third down. >> it's been a busy morning of data. we got adp came in a little warm now services pmi with rick santelli. hey rick. >> yes and s&p global. here's the pmi. these are final reads from january's mid-month. read. we go from mid month 52.8 on the services to 52.9 on the composite. very similar. we go from 52.4 mid-month to final read 52.7. so both improved, but they both still come to the best since the end of last year. d's of 24. but maybe what's more noteworthy, these are jan final. the last time we were under 50 was jan of 23, jan of 23. it's been above 50 ever since. the trade balance today was the second largest in history at 98.4 billion. and if you look at a chart, we're on pace on a ten year to close at the lowest yield since the 17th of

december. and that was basically the last time we closed under 4.5%. squawk on the street will return after a short break. >> the bond report is brought to you by pimco, a global leader in active fixed income. >> bitcoin is the best performing asset, but its volatility has kept many on the sidelines until now. introducing the world's first suite of downside protected bitcoin etfs capture bitcoin's upside potential with downside

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but there's a company called fmc and that's an agricultural company. they sell food machinery companies based in philadelphia, and the stock is down 35% today because they have inventory problems. too much of the chemical crop chemicals used for seed corn, potatoes and sorghum. i just remind that there are certain industries that are in this economy that seem to just, i don't know, like we have to stay close to ag. that's a very, very bad number. and i'm kind of shocked because it's a pretty reliable company. but the ag business may be not as great as we think, judging from the fact that they have a lot of insecticides herbicides. so i'd stay stay close to ag. >> that's interesting. you know, it's a hard it's a hard environment to read. this trade deficit could largely be about people front loading tariffs. >> it very well could be there's tremendous confusion for anyone who's trying to bring things in. we at flexport on you got to move. you got to get your stuff in before this stuff happens because you don't know what's going to happen with tariffs. i

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tools. >> that's cnbc pro everything you need all in one place from a source you trust. >> go pro with a flash sale offer for a limited time at cnbc.com. slash pro flash terms and restrictions apply. >> good wednesday morning. welcome to another hour of squawk on the street i'm sara eisen with carl quintanilla and david faber live as always from post nine of the new york stock exchange. stocks are under a little bit of pressure here. you do have some sectors that are green like healthcare, catch up, financials, utilities, technology, real estate. but overall index down communication services at the bottom of the list. that's because of the selloff in alphabet, which right now is down about 8%. match group also taking it hard. some of the media names are a little bit weaker. so it's kind of a mixed bag. earnings front and center. take a look at treasuries. we have had some data. adp private sector will go over that. but there's

continuing to be a bid here in bonds. the ten year yield now at 4.42. we were at 4.5 yesterday. so moving south the two year yield just below 4.2. we are 30 minutes here into the trading session. here's the movers. we're watching alphabet and apple weighing on the markets for different reasons. reports that china may be targeting apple's app store practices. that's hurting apple and alphabet down on fears about its capex guidance, how much it's spending more on those stock movers coming up. we're also keeping a close eye on semis. amd's data center revenue missing estimates. qualcomm and arm reporting after the bell later. but nvidia is higher and so is broadcom. mattel shares are soaring after beating estimates, the toymaker saying it expects barbie's performance to improve this year. big reaction there up 17%. >> got some data today. a little bit more headed our way right now. let's get to rick santelli. hi again rick. >> hi carl. indeed these are the second set of service pmis. these are from ism. and they're not final reads. they are the

january read expecting the headline number on the service index of 54 comes in at 52.8. lightest since nov of 24 last month a subtle revision on its final read from 54.1 to 54. even now, let's look at new orders 51.3 much lower than expected. sequentially lower than slightly revised 54.4. that would be the weakest level since june of 24. if we look at the service employment, a very important number. we had adp today. it was positive with a positive revision. friday's the big job. job jobs report comes in at 52.3. it is sequentially higher than our last look which was 51.3 52.3. well 52.3 would be the best read since nov of 24. and finally, finally, if we look at the prices paid and this of course we have to look at it backwards. we don't want this one going up, but nonetheless it is sequentially lower 60.4

sequentially lower, much lower than the 65 ish we were sort of looking for. how does that fit in? well, 64.4 was our last look. if we look at the nov number it was 58.5. you can see how it slips in moving in the right direction. these numbers are pushing yields to fresh lows. fresh lows. haven't seen these on a closing basis in long maturities since mid december. sarah back to you. >> okay rick thank you very much. i'll just add to the data dump today, the adp private sector jobs report which came out again not very correlated lately to the government jobs report that we're going to get on friday. but worth mentioning because i think it shows still where having a healthy spot in terms of jobs. so total private payrolls up 183,000. that was better than expected. and if you look at the breakdown, it's not hard to see where those jobs are coming from. they're coming from the services part of the economy. so as rick just mentioned, services number coming in a little bit light. bonds reacting to that but still

in expansion mode compared to the manufacturing portion of the economy. so that, you know, overall there's the breakdown. it shows you where the jobs are and not manufacturing subtracts. and some of the services, parts of the economy still like leisure hospitality do well. also pretty solid wage growth as well. they break down how much people get in terms of a wage increase. if you stay in your job, if you change your job, still pretty solid numbers there. so let's see what friday shows. you know, the market has been a little bit expecting some moderation in job growth. we'll see what that nonfarm payrolls look like on friday. and then the only other economic data point to mention today just because it's so top of mind, we got the trade deficit for december. so that final monthly figure and it showed a much wider trade deficit 98.4 billion. that was the biggest we have seen in terms of the negative number since march 2022. why? because everyone was trying to get ahead of trump tariffs. and so the imports actually soared. so this is why

when people say businesses should not be surprised to see this tariff announcements, and they weren't they were planning for it because imports soared and a lot of it was industrial equipment because they were trying to hoard and buy before prices go up on tariffs, which they were vindicated by as we got some tariff announcements this week, even if they were delayed. >> can i ask you about the treasury funding a little bit? >> sure. i know that people are watching this closely. it came out at 830 because it was the first one under scott bessent, the new treasury secretary, and he had there was some there was some expectation that maybe he would sell more debt at the long end instead of the short end, which is what yellen did. but but it was unchanged from when yellen did it. >> basically maintain the same policy as the previous administration. yeah. tilted towards the towards the short end. >> at least for the next several quarters i think was was the comment. but yes it was it was retained. and there is a belief that eventually he's going to wait more issuance to the long

end but didn't happen. so turned out to be sort of an unchanged number. they got to raise the debt ceiling. remember, they're still kind of in like emergency mode. on measures to try to raise the debt ceiling. >> yeah. where are we on that? are we. >> you know, we're still in these. we're we're still treasury is we hit it. but treasury can do special measures. as treasury secretary yellen said, you know for a few months until we exhaust that. so that's coming. >> yeah i mean government runs out of money in 37 days. it's coming. right. and a lot of discussion this week about the house and their budget process and whether the senate's going to try to leapfrog them as the margin in the house is making life difficult for speaker johnson, at least. >> yeah. and is it going to be all in one bill either way? i mean, i would hate to see the drama over the debt ceiling right now. don't expect hopefully that will necessarily see that with the republican majority, but it's something for investors to watch. aside from that, the trade policy is still dominating conversations. and because it's earnings season, we

really got a taste of how companies are thinking about it, planning for it, talking about it. they're all having to answer about it. i mean, for chipotle. listen to what the cfo said. clearly avocados are big for mexico. >> here's our guidance does not include the impact of the new tariffs on items imported from mexico, canada and china. we sourced about 2% of our sales from mexico, which includes avocados, tomatoes, limes and peppers, and less than 0.5% of our sales from canada and china. if the recently announced tariffs go into full effect, it would have an ongoing impact of about 60 basis points on our cost of sales. >> mondelez cfo also talking about it, they're dealing with the high cocoa prices, which is aside from the tariffs, but we'll also be affected by tariffs if they go through. listen. >> we expect an adjusted eps decline this year given the unprecedented levels of cocoa costs in our chocolate canal. this decline is expected to be

approximately 10%. this outlook does not include the impact of the potentially significant new executive orders imposing 25% tariffs on us imports from mexico and canada. this would create an additional headwind to the business, but given the fluid and rapidly changing nature of timing, it is difficult to provide a reliable estimate of impact for the full year at this time. >> i think the upshot with some of these company executives is they're not baking it into their forecast because they they don't really have the guidance on when these tariffs hit and whether they will actually go through. so it's not doing that, but they are being more precise about exposures to what they import from mexico canada, china. mattel i mentioned mattel is a big winner. they say china is going to represent less than 40% of global production for toys, compared to an industry average of 80%. and with the us representing about half of our global toy sales, our tariff exposure in the us related to

china should be about 20% of global production. so we are getting specifics for analysts to start putting into models. if we do see these tariffs go through, it's why you see the market sell off on tariff days because they have you know, investors have to reassess the earnings outlook on its costs and potential demand destruction. if these companies have to raise prices on consumers. >> yeah. well, it's also potentially weighing on shares of apple, which we'll take a look at now, of course, down about 1.6% on reports that china is taking aim, perhaps at the tech giant. eunice yoon is in beijing and can fill us in on exactly what may or may not be happening here. eunice. >> thanks, david. well, chinese regulators are reportedly considering launching an investigation into apple for anti-competitive practices. bloomberg is citing sources. cnbc reached out to apple as well as to the chinese government, but have not yet heard back, so we have no response now. the issue is an apple policy that requires the

company to get a cut as much as 30% of all revenues of the transactions on the apps on its platforms. now, this has been a long standing point of contention point of contention between apple and its partners, as well as state authorities. in fact, since late last year, state media including the global times, a communist party paper, have been describing this as the apple tax and saying that it's a monopolistic as well as unfair to consumers. now, this also comes as apple has been struggling to maintain its market share because of competition from local rivals. and as it looks to seek to get approval for its ai services and to bring them to this country. it also, of course, coincides with what we've been reporting all week. the fact that there are these latest rounds of trade disputes between the us and china guys. >> the fact that companies are now being targeted specifically

pvh was yesterday, i mean, apple potentially today. this is a new chapter. i wonder which companies how come, how worried companies are and who else should be worried. >> yeah, i. >> think companies are worried. they already were starting to become concerned when the pvh case first came about. and then yesterday it was also google. people were surprised that the market regulator said that they were looking at google for anti-competitive practices. google has a very large market share when it comes to the android os. it makes a lot of money here. you wouldn't think that because the search engine isn't allowed. but it's interesting that they are singling out companies. and one of the reasons why this this report about apple has become so important. >> you appreciate that. we'll talk soon. eunice yoon in beijing this morning. meantime, alphabet's the other maj7 name. under some pressure today, the company reports a revenue miss. but more importantly, says capex spending will be more than the street was expecting. let's talk

about that and apple this morning as well. barton crockett is with us. rosenblatt securities senior analyst has a hold on alphabet a raised his target to 205 from 193. a buy on apple with the 263 target. barton good to see you. good morning. is the capex number at alphabet the story. >> i mean it's clearly a key part of it. i mean i think the you know, it's no secret obviously, that the hyperscalers are growing, spending 40, 50, 60% this year. and that's great for nvidia, great for the other equipment suppliers, i think for the services companies, what you need to see is that that that investment is paying off, that you're getting a return on that. we're seeing that in spades with meta, you know, with google, it is less clear because, you know, the acceleration in the core business is not, you know, been what we've seen at meta. and then there's this cloud of uncertainty. does ai create the opportunity over time for there to be, you know, more competition in search? you compound that with the

antitrust, you know, risk to distribution. and i think there's some longer term concerns that put a cap on the multiple people want to pay for google today. >> right. but isn't the notion that search kind of keeps chugging along? was one of the positives from last night? >> search was certainly a positive from last night. and i'm talking more, you know, bigger picture. i mean the investment in ai is making, you know, google's search better. it's making, you know meta's advertising better. but it's also enabling people like perplexity to come in with a search, you know, solution that is, you know, uniquely competitive with, you know, google. and we haven't really seen that before. you know, duck, duck go was not really competitive. so, you know, i think that it's a new world. and there's concerns that was not front and center last night. >> how about apple. how are you sort of calculating or or looking at political risk and some of the collateral damage that some of these corporates

might absorb. >> well, look, i mean, this is very surprising. i mean, i think we went into this year thinking that it should be like it was last time where apple was carved out from the trade wars, you know, and the trump tariffs. and that's not happening. and china is responding you know. so this is right now different than we expected. you know we do you know see that this is a volatile situation. so i'm hesitant to really think it makes sense to jump on any one news point today because, you know, under the trump administration, it could be a very different news point tomorrow. and, you know, and obviously no one is really an expert in kind of china antitrust law. but it does feel like this is very much tied in with the trade process. i mean, why are google and apple coming up now? and they didn't come up, you know, at this level a couple of months ago. and it seems to be the tariffs, which suggests that there's a lot of room for the us and china and trump and china to figure something out. you know, that sets this to the

side because nobody benefits if there's a full out trade war. and i think they both understand that. >> want to get back to alphabet? i mean cloud obviously was up 30% but the growth rate decelerated. maybe another reason why there was a bit more weakness in the stock price. not along with that capex guide. but they talk about being supply constrained. i mean, again, you noted this. nvidia shares are up. barton. there's no you know, are your expectations that they're going to continue to decelerate in cloud? >> no, i'm not i mean i do think that there's a lot of noise in that cloud number. i think cloud is a source of strength for alphabet google right now, you know, our survey work would say that you know, it managers at large enterprises, you know, think if anything, you know, google is the best position of the major cloud providers ahead of microsoft, ahead of amazon web services. so i'm not worried about that. and, you know, i do think that that was more noise than substance, that number last night. >> so what are you worried about then? >> well, you know, i think that

like i talked about, i think that there is concern about the long term prospects and search and i think that puts a capper on the multiple people want to pay for alphabet. you know, my rating is neutral. my price target is up a little bit. so i'm not negative, but i'm not going to be overexposed to apple. you know, when we're going through this process of determining what the antitrust outcomes will be and what's going to happen in search? >> barton. it's a lot to a lot to digest. we'll keep close. barton crockett, appreciate it over at rosenblatt. >> great. >> thank you. >> here's our roadmap for the rest of the hour. shares of amd plunging what analysts are saying now about the stock following a miss on key metrics. >> plus disney beat profit estimates, although they are guiding towards losing a few more on the streaming side in terms of subscribers for the next quarter. we're going to dig deeper into those results. >> and a big interview coming. the ceo of shell will get his outlook for energy demand and prices and production as s&p is lower, but vix still just hovering around 17. squawk on

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♪♪ with fastsigns, create factory grade visual solutions to perfect your process. ♪♪ fastsigns. make your statement™. gina costa... looking simply stunning... what's this? she's opening her fidelity app.... to buy that stock... with no fees or commissions... because what does gina got? gina's got the look. that never gets old. talk about easier investing. business did report a profit, but they're guiding towards losing some subs q1 to q2. joining us now from post nine is loop capital. analyst alan gould has a buy rating price. target's 125. so what did you think of the quarter? alan.

>> hi, david. i thought it was a pretty good quarter. you know, they did beat on the bottom line. there was a lot of a lot of the beat was on the cost side. revenue was about where we were expecting. but if you look there's sort of four main things. dtc sub growth was higher than the street was looking for. and they reaffirmed the billion dollar target for the year. >> in terms of profitability, in. >> terms of profitability, we knew that there was going to be churn after the price increase. didn't know it was going to extend into the second fiscal quarter. in terms of the growth in the dtc business is more than outweighing declines in the linear business. dtc was up about 400 million. linear was down about 100 million parks. they said it beat their expectations. i mean, there's a lot of concerns about parks because parks really is the engine. that's the core earnings at the company right now. so parks did better than expected. they reaffirmed their 6 to 8% guide for the year. and i wish they talked about yeah we're

running ahead. our expectations are higher but did not change or upgrade any of the estimates. >> or is that why the stock is not you know is down a little over 1%. >> i think. so i think if we would have seen any increases in guidance, the stock would be up. the quarter was certainly fine, but there was a little bit of caution and hedging. and given the macro environment, i guess it's not surprising. rarely do companies raise estimates in the first quarter. >> yeah, i mean, they are talking about that modest decline in disney plus subscribers compared to the first quarter for the outlook as well. right. >> and the rpo is a little less than i was looking for at disney plus. so again, it was a cost side. disney plus costs of programing costs were down about 115 million year over year. now last year you did have a full quarter of hotstar, including soccer, excluding including cricket. this year you only had a half quarter of hotstar. >> what's the thesis on disney like? what? how does it all tie together? sure, for the narrative. and do you think bob

iger has successfully done that? because what we just ran through or like a lot of separate businesses, right. >> i think the thesis on disney is it's one of the great brand companies out there, and they've always been able to move their brands to be in the most valuable area, whether it was moving to parks home video years ago, now they're moving it to streaming, you know, and the disney brand is what's key. that's what iger did. he bought pixar. he bought lucas. he bought brands. so the key here is this is one of the great brand companies. the stock traditionally has traded at a nice premium to the market. you know not surprisingly it's been trading at a discount to the market the last few years with the traditional media companies as they're making the transition from linear to digital. disney seems to be on the right track. iger seems to have taken it on the right track, didn't mention the studio at all. but you know, studios turning around. >> to was a hit. >> yeah they had some hits right. >> and moana too, if you think about it, a couple of years ago that was supposed to be a direct

to consumer video, was supposed to just go to disney plus. and iger looked at it and saw moana. moana, the original was one of the most streamed, was the most streamed movie on streaming. he said, why are we putting the sequel to streaming? let's put it onto into the theaters. and the movie's done over $1 billion at the theaters. >> parents just want to get their kids out of. >> the house. >> it was. i mean, it was not even close to as good as moana one, i have to say. >> you know, overall, though, alan, i mean, i've made this point a number of times, netflix quarter, in terms of additional subscribers was just a blowout. yeah. and nobody's come close. i mean, the peacock numbers obviously far smaller. no additions here, no real additions. can anybody truly compete with netflix when it comes to the streaming world? >> i mean, netflix is clearly won the streaming wars. it's a debate who's who's going to be number two. and it may be a distant number two. >> you think disney can successfully be number two? >> i think number two is probably disney or amazon, depending on how much amazon wants to put into it. and we don't know how the rest of the world is going to turn out. it's not going to be separate.

peacock. paramount+. yeah, max. i mean, there could be some combination of the others. there has to be. >> and finally, i mean, he did have some nice things to say about linear networks, which we pay close attention to on the call. i'm sure you do. they're not a burden at all. in fact, they're actually an asset. >> wasn't that a reversal from what he told you? yes, it was. >> a year and a half ago. but yes, i mean, he seems to be getting a little more constructive on them. you buy it? >> not really. i mean, i think he also said we're we're investing in the to the degree necessary to grow our streaming business, which is where the future is. so i think they're managing the decline by spending less money on, on content and marketing on the linear businesses to manage the decline and the transition to digital. >> right. well, yeah, there was down 11% operating income. yeah. but you're going to put a buy on the big spin off from comcast, right. sure. >> especially cnbc. that is the golden jewel. >> alan you can come back. alan gould loop. thank you. thank you. >> another earnings mover to watch novo nordisk shares rising

on its q4 profit beat strength thanks to strong demand from its wegovy obesity drug, posting a 107% year on year increase in wegovy sales alone. the stock still down more than 25% over the last year of trading. we'll be right back. (vo) weight loss is changing. for so long, i felt stuck on repeat. i tried, and tried again. lost weight, gained it back. but zepbound means change. zepbound is for adults with obesity, to help lose weight and keep it off. activating 2 naturally occurring hormone receptors in my body, zepbound works differently. it's changing what i believe is possible when it comes to weight loss. it's changing how much weight i lose. up to 48 pounds. and it's changing what happens. don't take if allergic to it, or if you or someone in your family

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investor. >> go pro with a flash sale offer for a limited time at cnbc.com pro. flash terms and restrictions apply. >> welcome back to squawk on the street i'm silvana henao with your cnbc news update. president trump said this morning he wanted to strike a nuclear deal with iran, nearly seven years after he withdrew from an obama era agreement that sought to curb iran's nuclear program. the president said on social media this morning any reports that israel and the u.s. would work together to, quote, blow iran into smithereens, end quote, were greatly exaggerated. a u.s. military plane carrying more than 100 deported migrants arrived in northern india today. it is the first time the u.s. has used a military aircraft to

transport indians who had illegally entered the u.s. the flight comes after president trump invited indian prime minister narendra modi to the white house for a visit next week, and the cia is now offering buyouts to its workforce in the latest move by the trump administration to overhaul and scale back the federal government. the offer of eight months of pay and benefits is similar to deferred resignation offers proposed to other federal employees. however, some cia workers are not eligible, including those handling high priority tasks. david. >> thank you. savannah. well, let's take a look at shares of amd because they are down more than 10% this morning, despite what was at least a beat in terms of what analysts expected for profits from the company. it did miss estimates in that key data center segment. kristina partsinevelos is here. she can sort of break down the numbers for us and the street reaction. christina. >> there was also a growth that was pretty muted for the first

half of 2025, and why oppenheimer says the second half of this year will really be under scrutiny. and amd is, quote, now clearly a show me story. bernstein, jp morgan rosenblatt all examples of companies that at least drop their price targets by 25 bucks. hsbc betting shares are going to fall to $110. wedbush argues the data center gpu missed, david, that you mentioned already in q4 was not really in the cards, which is why you're seeing the stock sell off a lot more today, 10% while morgan stanley quote says the sense is that the mi 350 helps modestly. so that's amd's ai gpu. but the real potential inflection point is likely. the mi 400 in mid 2026. in other words, a ways away, investors were pretty negative going into this earnings report, with shares down over 38% just over the last year, underperforming the stock's chip etf, which is a great barometer that's up 8% during the same time frame. qualcomm got to switch gears. on the other hand that company is up over 19% over the last year and their earnings are out over the bell. three main areas of focus for this

particular name. first, you got smart phones. the company is winning with androids lining 100% of samsung's new phone chips, which is up from just partial share before. although they are losing apple as a customer in the in the near term. the second focus is auto and iot, where peers like on semi, texas instruments, nxp, i reported weakness and then finally i. recent advances in efficient ai. ai models like deep seq suggest sophisticated ai can actually run on less powerful chips, which could potentially accelerate edge computing adoption, which is really where qualcomm excels. that's the edges, the laptop or our phones. lastly, arm earnings. they make money by licensing chip designs to companies like qualcomm, for example, and over 50% of the revenue stems from smartphones. and the royalty rates are actually moving higher, which means more revenue. and the data center segment seems ripe for growth as its customer base for its ip licenses expense. they're able to benefit from that. i push and why the stock is running up over 2.5% into earnings today david.

>> yeah interesting to see that. and it's a market cap at this point is actually exceeding that of amd's i think neck and neck. christina thank you. >> thanks. >> speaking of arm, the ceo will join us tomorrow morning. that will be in the 10 a.m. hour of squawk on the street. >> meantime, after the break, the ceo of shell is going to join us on how the company is navigating these global trade tensions, including the latest chinese tariffs on american chinese tariffs on american energy w ♪♪ only servicenow connects every corner of your business, putting ai to work for people. pfft ... every corner? every corner, nick. ow! so kate in hr ... hey kate. can focus on people, not process. oh actually, i have a question ... keep up, nick. do you have to be sick to take a sick day? patty in it is using ai agents to deal with the small stuff, so she can work on the big stuff. agents like secret agents? secret agents i control. with your mind? you know ... i played a secret agent once. - we know. - oh gosh ... i liked it. over here, ai gives tina the info she needs to get the job done. nick, what did we say about touching?

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with no fees or commissions... because what does gina got? gina's got the look. that never gets old. talk about easier investing. that's my secret to better odor control everywhere. >> oil and energy remain in focus as trade negotiations continue between the us and china, the country retaliating against the us tariffs with a 15% tariff on us lng coal exports and 10% on us oil imports. those come though, as us exports to the country have pulled back from their recent peak, now only accounting for less than 5% of total oil exports. our next guest, leading an international supplier of lng to china and the broader global market, shell ceo wael sawan joins us now. while it's great

to have you back on the show, how do you think, first of all, the trade fight between the us and china and potentially broader than that is going to impact oil prices and production? >> i think what it'll do is we're going to have an extended period of uncertainty, and i suspect some volatility. supply chains are rerouting. you see energy markets are rebalancing at the moment. and of course, the threats of sanctions and tariffs and challenges in certain global arteries like the red sea just means that we're trying to find a new equilibrium, to be able to deliver, to deliver energy. the biggest question is going to be the impact on on the economy and what that means for markets. and as a company, what we have really focused on is building resilience in the company. and you'll have seen from our results last year, last week the big focus was really continuing to deleverage, have the strength to be able to actually weather whatever uncertainty brings in the next few years. >> does it get offset for you at

all by the fact that, you know, the trump administration has been very bullish on further lng expansion? >> no, i think the and that's one of the things we welcome from the incoming administration. the role of lng is going to be critical for the coming years for multiple countries. and so i do think what is going to be key is making sure that we find those balances. and we are indeed the one of the largest players, the largest international energy company in lng. and the key is having multiple supply points, of which one is the us. but there are multiple other supply points. and making sure that we are able to actually match our customers demand with the supply that that we are able to access. >> what do you see on the demand front at this point? >> we continue to see strength. actually, we see right now tightness for the coming year at least. there hasn't been a lot of net new capacity coming through in 2024, and we're not expecting a lot of it in 2025. though the demand continues to

strengthen, driven by things like, for example, lng into trucking in places like china and india, but also industry. and you see that happening across the world. europe, of course, is growing its demand for lng because of the interruption of russian supply. so we are bullish on the growing demand for it. and at least in 2025, the markets will remain tight until new volumes come through from qatar and the us. >> well have these new wrinkles in sort of the evolution of technology and deep seek and so forth pushed you to reconsider your long term power forecasts, at least for north america. >> i would say the picture is still evolving. what is clear is that the demand for energy is going to grow, and that i and what it brings will undoubtedly have a strong push on on that demand. the question is just the quantum. is it going to be a doubling or a tripling between today's demand for data centers by 2030? and so it's really more

the range, not the direction. what we are doing is making sure that for all the opportunities we are pursuing, both in the renewables side as well as gas supply, we're locking them with customers whom we trust to be able to have a long term perspective on this and managing through that uncertainty in in a way that allows us to manage the risks that come with the volatility that's ahead of us. >> so at this point, the investments and the capex and the build out, you don't think we're in the neighborhood yet of being over our skis over the long term? >> difficult to say. the approach we're taking, i have to say, is one of more of this disciplined approach at the moment. i mean, we're we're slightly sort of controlling more of the capital because what we see is that uncertainty that i referred to earlier and in a period of uncertainty. my own belief is focus on what you can control and build resilience and strength because you don't know what the weather of tomorrow is going to bring. that doesn't mean we miss out on opportunities, but we also have

to be able to sort of keep an eye on on where things are going. and at the moment, it's just too foggy to be able to make a call one way or the other as to what the trajectory is going to end up being in the next few years. >> what about russia, ukraine? what are your expectations of what's going to happen there and what's the impact, if any, on your business? if they do come up with some sort of deal? >> again, difficult to call exactly what will happen there. i mean, what's clear is that from a and let me focus on the energy bit of it. from a gas perspective, europe really needs gas, which is why these lng flows into europe matter. and of course, the sanctions or the potential extension of the sanctions on russian oil, not to mention iranian oil, will also create some imbalance in the crude oil markets. and so we're we're the largest energy trader in the world. and we're beginning to see some of those disruptions play through. now, of course, while that creates uncertainty for people depending on oil and gas, for the largest

energy trader, it creates opportunities as we look to rebalance those trade flows around the world. so we see quite a quite a bit of opportunity as well emerging from that, as we monitor the situation and try to understand the discontinuities that are taking place. >> i mean, the other big wildcard, of course, is the middle east and president trump sort of renewing maximum pressure on iran. i'm talking yesterday in a joint news conference with benjamin netanyahu about the us taking over gaza. i just wonder how you are calculating what's going to happen there and what it means for oil and gas production and supply. >> we haven't seen a huge impact, even through the more the very difficult last couple of years in the middle east. we haven't seen a lot of interruption to physical supplies of crude. it's been more than plugged by many other locations. and so we see that less in terms of the physical impact on crude. what it does,

of course, do is, is the uncertainty that plays out there and the potential spillover impacts around the world, including economic impacts. and that is more the area we look at. so a proxy we keep a very close eye on is, for example, demand in china, how the industrial sector is behaving in in europe. those are the those are the second order influencers that we keep an eye on, which i think will impact, at least in the medium term, the demand for energy. >> well, there's also opec right. and how that might affect their strategy and how i mean, president trump and his davos speech said he's going to pressure opec to lower oil prices and ramp production. what do you expect to happen there. >> all i can expect is what i'm hearing from from opec as of their decision. was it earlier this week, which in essence is they're going to continue with the plan that they had. clearly the key elements of course, that are impacting the overall picture at the moment are

chinese and global demand. and the decision by opec. once again, i mean our focus is what we can control. and so what you find is as that uncertainty continues to unfold, all we can do is to make sure that we have more and more points of supply, that we are able then to link to the multiple customer connects that we have. and in a world where those connects become tougher for others to be able to deliver on, that's where shell can differentiate itself and where we are trying to position ourselves as a company. that connector of energy between suppliers and customers. >> a lot of moving parts. well, thank you for taking the questions. so much to get to today. appreciate it. >> thank you very much. >> well, so on the ceo of shell. meantime keeping an eye on washington dc today and all of these senate committees that are working on trump administration confirmations. us senate commerce committee now has approved 1612 to advance the nominee for commerce, howard lutnick. same with the senate finance with rfk jr. senate

intel with tulsi gabbard and pam bondi has been confirmed as ag. so those things are moving quickly. >> in the betting markets. you know, people bet on the confirmations. obviously we wait. we await the senate full vote. but on howard lutnick, that wasn't seen as a tough one because he's even gotten support, vocal support from democrats, including senator chuck. >> schumer, and a lot of good color reporting on the big white house push behind the more controversial nominees as we go to break watch. shares of match today, one of the biggest laggards on the s&p under some pressure following some disappointing q1 revenue guidance. not the only guidance today that's been soft company also announcing that zillow's co-founder spencer rascoff, will be taking over as the company's new ceo, effective immediately. shares down 7%. stay with us. >> what makes a comfortable retirement? >> it's having the. >> money to. >> retire on your terms. that means having a smart plan for how your money is invested, how long it needs to last, perhaps

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trading below 98 k. yesterday, new white house crypto czar david sachs met with lawmakers. it was his first public appearance since taking the role to talk about the administration's priorities. also spoke with cnbc about the group's goal for a bitcoin reserve. >> i guess it's possible that the sovereign wealth fund could decide that they want to make bitcoin or digital assets part of its portfolio. you're going to have to ask the incoming commerce secretary, howard lutnick, about that. the item that president trump asked our working group on digital assets to study is whether it's feasible to create either a bitcoin reserve or some sort of digital asset stockpile. and so we're going to be looking at that question. we haven't committed yet to doing it, but it's one of the first things we're going to be looking at. >> bitcoin prices up more than 40% since the election. also sort of commented that maybe an even higher priority is stablecoin legislation, which has big implications for the treasury as well. >> yeah, the bitcoin sold off as a result. i think there were just such great expectations

that this administration already is going to make it a priority. so maybe lack of specific sort of market moving news. but clearly, you know, they are moving and they're they're looking at it. so i think market now is a show me with the bitcoin policies. after the break, we're going to take a closer look at elon musk's role in the trump administration, now designated as a special government employee. and also coming up on money movers. don't miss ceo of ares management on the company's latest earnings and some leadership changes. the stock more than doubling over the last full year of trading. we'll be right back. >> cnbc crypto world is sponsored by crypto.com. trusted by over 100 million users worldwide. >> don't buy another stock

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governmental employees, and according to the federal office of government ethics, that means musk won't be able to serve for more than 130 days during any given year. now, we don't know on what date that clock started on musk's job, but it is ticking, so that's a sense of urgency for him. if he wants to serve longer than about six months, the white house is going to need to find another role for him. a special governmental employees are also required to file public financial disclosure documents within 30 days of assuming their position. given musk's vast holdings, those documents could make for interesting reading. the other rule that could come into play here is that special governmental employees are prohibited under the criminal statute from personally and substantially participating in any particular matter that would have a direct and predictable effect on the employees financial interests. now, given musk's vast holdings, that could mean he can't be involved in anything affecting the auto industry related to tesla. nasa and space exploration that's related to space x media, social

media related to his x platform, and even infrastructure projects that the boring company may have an interest in. now, musk has a history of tangling with or ignoring government regulators, so enforcing all of this could be tricky. but outside groups can be expected to sue the government to ensure that he follows the rules. so that may set up some battles to come over his exact status. but carl, we talked to the white house yesterday about this. they say he will follow all of these rules, so we'll watch for that. >> meantime, nbc's got this piece up, eamon, that musk has, quote, received quiet white house reminders in recent days that his power is not unchecked. i wonder what you make of that. >> well, they're saying he needs to report to the chief of staff at the white house. it's been a long time since elon musk has had a boss. we'll see how that works out. >> yeah, eamon, you know the headlines around the treasury department and so-called access that doge was given got a lot of attention. what do we really

know there in terms of these recent reports that it's read only. yeah. >> well, the treasury put out a statement yesterday saying that the access is read only, which means that at least so far, these new doge employees are not inputting code, changing the way the payment system operates. but i think the question is, you know, with these new employees from doge coming in to get this access, the unknown that we don't have the answer to right now is what is the goal of that effort? what are they trying to do by by gaining that access? and what are they going to do with that data once they have it? we don't know the answer to that. but this is extraordinarily valuable and sensitive data that they're getting access to the idea that new people would have their fingers on the keyboard in a new administration is not necessarily sort of outrageous on its face. the question is, what changes are they contemplating? who's ordering this and where is all this going and that we just don't have visibility into. it's been, frankly, a little bit difficult to even figure out who the people are, who are making these decisions and executing this playbook inside these

organizations. there's been some effort to keep their names confidential. and that's not how the federal government works. >> but, i mean, they've been musk has been very clear about what he wants with the information, which is he wants to find the waste and fraud and the abuse of taxpayer payer dollars. that's why i've been reading the democrats criticism so carefully. and i'm not i don't understand what they're so afraid of. they're they're they're throwing accusations. everything from he's taking our money to, you know, aoc's he's unintelligent. like, it doesn't make any sense. >> yeah. i mean, i agree with you. like i said, the idea that, you know, new people are coming in and have their fingers on the keyboard is just, you know, on its face, not outrageous. and, you know, not even that different. you know, it's the backgrounds of these people where they come from, you know, that is new, right? we haven't seen people from the tech industry come in and do this. typically it's government people who do it, but this is a new administration with a new approach. the question is again, you know who ordered this? what's the intent with that? and

what happens to the data and what changes do they make to the payment systems. that's where you could get problems. but we haven't seen any of that yet. so we just don't know. >> yeah eamon thank you eamon javers in dc. we're keeping an eye of course on a lot of movers due to earnings. you've got alphabet shares down sharply amd shares down sharply as well. uber shares accelerating their losses. also we'll have a lot more coverage of those names and more coverage of those names and many others in the -what've you got there, larry? -time machine. you gonna go back and see how the pyramids were built or something? nope. ellen and i want to go on vacation, so i'm going to go back to last week and buy a winning lottery ticket. -can i come? -only room for one. how am i getting home? sittin' on my lap like last time, ronald. fine, but i'm bringing this. [ whirring ] alright. or...you could try one of these savings options. the right money moves aren't as far-fetched as you think. there it is. see? told you it was going to all work out. thanks, future me.

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symbol and xl. >> invest with an advantage with cnbc pro. >> cnbc pro gives you the tools that you need to become a better investor. >> go pro with a flash sale offer for a limited time at cnbc.com. slash pro flash terms and restrictions apply. >> good wednesday morning. welcome to money movers i'm carl quintanilla with sara eisen live on the floor of the new york stock exchange today. some big concerns for big tech. apple finds itself in the crosshairs of chinese regulators. while the street shows some worry over alphabet and amd's ai ambitions. we're going to get to that in just a moment. >> then pfizer out with results, beating estimates, sending the stock to an all time high. ceo frank bisignano is with us at post nine. he is also president trump's nominee for social security commissioner. >> ben harris, asset management ceo mike arrighetti. aum surges to a new record just under half $1 trillion, with more than $13