post 9, let's send it over to steve kovach. >> let's start with tsmc, shares up 1.50% after securing up to $6.6 billion in financing from the u.s. government to make chips in this country. the money comes from the chips and science act, of course, and so far intel has been awarded the most money from the act up to $8.5 billion. shares of take two interact, they're up 2% after citi analysts upgraded the stocks from neutral to buy. much of the expected growth is coming from the next grand theft auto game, which take two announced would launch in 2025. the analysts expect the new gta to drive nearly $3 billion in bookings for take-two. >> we'll see you in a little bit. thank you very much. >>> up next, billionaire investor marc lasry is back with us e. he's going to break down the fed's next move, where he is finding the best opportunities in the markets right now and beyond. we are live from the new york stock exchange. you're watching "closing bell" on cnbc. trading at schwab is now powered by ameritrade, unlocking the power of thinkorswim, the award-winning trading platforms. bring y

provide quarterly updates on subscriber numbers and instead focus on revenue and operating margin steve kovaching on the top and bottom lines and plowblowing away expectations shares fell after the company said it would disclose less data about subscribers starting next year as further result of the quarter, the crackdown on password sharing continues eps was $5.28 against the $4.52 the street was looking for subscriber adds were the beat. 9.33 million new adds. don't get used to judging netflix by subscribers the company will stop reporting subscriber numbers starting next year with the q1 2025 earnings report revenue and engagement are better metrics of success. also because of the variety of plans and ad support tiers that netflix offers as for guidance, revenue was lighter at $9.49 billion that is up 16 puer% for a year o i'm steve kovach >>> we started the show with the developing story a source speaking to nbc news, israel carried out a strike against iran overnight this is in retaliation to the drones and missiles that israel launched last saturday night three drones were shot down in t

for that let's go to steve kovach with a look at what to expect. steve? >> reporter: hey there, tyler. it will start this week with meta on wednesday, and then we get microsoft earnings and alphabet on thursday. amazon and apple are coming next week. take a look at each one of these names through the lens of ai. not big business yet for any of these names, but some are progressing more than others. let's call this your ai gut check. let's start with meta partnering with google last week to power a new version of its meta ai chatbot. the most important thing here for meta is engagement, proving this keeps people using meta apps like whatsapp and instagram and facebook. it debuted to millions of users last week starting with a huge user base to start with there. one thing to listen here is any hints at co-pilot sales. that's the digital ai assistant they're selling, and a taste of ai revenue growth from the azure cloud unit. over to alphabet, reorganizing their product teams ahead of ai this week, including bringing ai researchers into the broader ai unit c

steve kovach is back with that >> a popular name is seeing boost from a congressional aid package and a software company sinking after an interna investigation into its financial reporting. details when closing bel returns. >>> we are 15 out from the bell. let's get back to steve kovach for a look at the stocks he is watching >> let's check out autodes which is down 14% the company delayed releasin the 10k as it continues an internal investigation related to reporting the company's finances autodesk said yesterday it expects to hear from nasdaq an has 60 days to file the form >>> and snap shares are surgin 6% right now up as much as 8 earlier after bloomberg reported that the house o representatives would lump the tiktok ban in a package fo funding for the israel and you crane wars president biden had previously said he would sign the ban int law if congress passes it. >> thank you, steve. >>> still ahead, las vegas sands reporting that stocks had volatile year so far ats at stake and the key themes and metrics to look out for. and more about discovering magic. rich is being able to k

a big reversal with tech earnings trifecta in overtime and you have steve kovach of microsoft and christinat before we get to them some news on paramount. breaking news. alex sherman on this since the beginning and what you learning? >> so there seems to be some momentum in terms of getting a deal done from sky dance media and global which is been a saga for about six months now and i am told the sides are moving closer to a deal and getting closer toward coming up with final valuations for sky dance around $5 million for new equity that would dilute current shareholders which is why you see the stock down after my report and investors that are common shareholders and not a huge fan because of the dilution but these will remain a publicly traded company with 45% to 50% of the company owned by sky dance and private equity back are so common shareholders can dissipate in the upside after there is a change in leadership and the ceo of this would be david ellison who runs sky dance media and the president i am told will be our former ceo so we are moving closer toward a deal and may be finalize

to steve kovach who has this news which is really about the next frontier, steve, of large language models, image generation as we've heard from some others and now we hear from meta >> reporter: by the way this is their new large language model, they are calling it llama 3. two important things to know immediately it will be deployed to billions of users who use face book apps, the whatsapp and so forth a huge user base for this product. on top of that there's a new relationship with google here. previously already a relationship with bing, when you ask meta a.i. a question that needs to search the web or crawl the web for the exact right answer it will credit google or credit bing as the source of that i asked meta what the nature of that relationship is, who is paying who, basically. they wouldn't tell me that, but it is also kind of a boost here for google search and bing search being tapped by the large language model, scott. >> steve kovach, thank you very much for that interesting news exactly what we were talking about earlier. >> the nature is very different from the world gardens

let's get to steve kovach with all the details. steve? >> yeah, shares are down about 10% on this. starbucks missed those expectations on the top and bottom lines following weak demand in the united states and china. overall, same-store sales were down 4% year on year with a 6% drop in transactions. the company says average ticket price is up 2%. the u.s. specifically, same-store sales were down 3%. even worse over in china, with same-store sales down 11%. now, no guidance here in the release. that's going to come on the conference call, which kicked off at the top of this hour, mel. shares down 9.8%. >> steve, thank you. steve kovach. wow, that's quite a slide in the afterhours. i'll go to you, tim, you've been lamenting for some time about the price, and apparently a lot of others are with you. >> and the price of the stock and the company is also come into a place where it's going to start to get interesting. we can talk about the charts in a second. it's a case where i do think there's a competitive landscape, there's a consumer that ultimately is trading down, and even that $4

steve kovach following that story for us, and he joins us now. steve? >> reporter: hey there, scott. yes, this is based on a bloomberg report earlier this afternoon saying apple is getting ready to put out its new crop of mac chips. we're currently on the m3 line of chips. these will be the m4 and start launching reportedly at the end of this year probably for the holiday buying cycle. and then into next year, most importantly, this report says apple is going to be marketing these or pitching these as ai chips for ai capabilities. i will also note though the m3 chip, the current chip that came out last october, and it is also in the new macbooks that were announced last month, it is already being marketed as an ai thing. so the macbook air came out, calling it the best pc you can buy. so we are already seeing apple start to label some of its machines and technology as artificial intelligence. of course, scott, nothing i just said is going to matter until june 10 when we see apple finally unveil the user facing artificial intelligence features that they

steve kovach has been listening in >> a little more color on the call from that decision to stop reporting subscribers, but first, let's go over the big results. netflix beating expectations again. and just blowing away expectations on those subscriber additions. the momentum and growth from cracking down on password sharing continues. subscriber ads came in at 9.33 million. that was compared to the just 4.5 million the street was expecting. but don't get too used to judging netflix by subscribers they are going to stop reporting the numbers and average revenue per membership starting next year with its first quarter 2025 earnings report. netflix's reasoning for that it says revenue and engagement are better metrics of success, not the number of subscribers. because of the variety of pricing plans, ad-supported tiers it offers now. as for guidance, revenue for the second quarter was a hair lighter than expectations, $9.49 billion, that would be up about 16% compared to the year ago quarter. we're about 15 minutes into the call a little more commentary on the subscriber disclosures there th

steve kovach is with us now. >> yeah, melissa, it's all about microsoft's azure cloud growth here it continues its acceleration. after slipping dramatically over the last two years microsoft reporting azure revenue growth of 31% and a chunk of that, 7 percentage points, coming specifically from artificial intelligence running on its cloud that's up from six points in the december quarter so, the story here is, a.i. is increasingly important to helping reaccelerate azure growth beyond that, of course, beats on the top and bottom lines, total revenues are up 17% from the year ago quarter what's not here in the report, details on co-pilot. the a.i.-assistant microsoft is selling. satya nadella saying co-pilot is part of a new era of a.i. transformation the call is going to kick off here, and we'll be listening for guidance and co-pilot. and of course, like we're saying, increases in capex, as well >> we'll be looking for the overall guidance for the next quarter and the full year in microsoft's call, as well. we certainly have been down the road where we see it afterhours, stock is acti

steve kovach at microsoft. we'll start with deirdre bosa. >> i've been listening to your conversations intently zuckerberg raising these concerns over gen a.i. that applies for google as well revenue contribution is still unclear, but for google it is expected to show up in the cloud. continues to spend bill, warning that capex spend will be larger. how does sundar pichai protect search ads while embracing gen a.i. and chatbots? look to core search advertising numbers. the advertising numbers were lower than expected and some thought, uh-oh, gen a.i. is pulling away from search google, too, needs a new ceo they still don't have one. potentially an announcement tonight. we'll be listening maybe a small chance of this, some are looking tonight for a dividend especially after meta sur surprised markets by issuing one that could offset some concerns around spending. it has withheld for a long time. >> jim, what are you expecting you're a shareholder >> i am not expecting a reaction in either. the multiple different

momentum from recent quarters with the boost in subscribers and the password crackdown we have steve kovach with more >> netflix has been on a tear and coming off a quarter where it smashed new subscribers and growth the big reason for that is cracking down on password sharing and in addition to that is the ad supported plan shares are up 2.6% on that growth the street is expecting 4.5 million new subscribers. that would be double what they gained in the year ago quarter revenue should be up 13% what we don't know is the advertising and gaming businesses at netflix which is unclear with the cost of licensing keeps the subs subscriptions enough to keep people on the service. it has more than 23 million subscribers with the plan with ads, but it is unclear how much revenue that is bringing in. we will have a major event coming up, but the boxing match with jake paul and mike tyson this summer is all hyped up. frank. >> this fight is a social media phenomenon i'm nervous for jake paul. it looks scary how big of a part -- for netflix, live events how big of a part is that the strategy going for

steve kovach has it. steve? >> hey, tyler.according to "the wall street journal," ibm is in talks to buy hashicorp, a cloud software company. shares up about 7.5% there they were halted they're about to resume trading here hashicorp has $5 billion market cap before this move hefty premium on top of that to get an ideal of what the deal would cost shares of ibm are down 1% on this, tyler. >> steve, thank you very much. report on ibm and possible acquisition. >>> let's pivot to another name making headlines in the technology area today. that would be softbank, reportedly investing nearly a billion in a push to develop ai. deirdre bosa has the details in today's "tech check. >>> we have always known that softbank would go big on gen-ai. they talked about it for a long time many took it that softbank would invest as a conglomerate the nikkei is looking to develop over large ai model. >> the models of today cost about $100 million, plus or minus factor two or three. i think we're going to see models trained in the next year are goi

steve kovach, nice job from our d.c.eau as well to get that exclusive video and sound om fr sam altman on the hill. >>> mike santoli is next with his mid mid. ♪♪ hello, mia. are you ready to meet your demise? man, we really need to upgrade your trash talk. ♪♪ nice shot... shot... taker. who programmed you?! i'll see you tomorrow. the future isn't scary, not investing in it is. 100 innovative companies, one etf. before investing, carefully read and consider fund investment objectives, risks, charges expenses and more in prospectus at invesco.com. >>> senior markets commentator mike santoli joins us with his "midday word." yesterday, we were down and out, and today we're back. >> back to a degree, scott. also, you know, yesterday down and out for sure, but it was relatively contained. i think that you got into this position where the rise in longer term bond yields just throttles the market breath, so the internals looked weak yesterday, they don't look great today, but there's not a ton of motivated selling across the big

steve kovach joining us. >> in indonesia, some comments came out saying he will look at investment in the country. they don't do much there yet, i also note he was in vietnam. they do some manufacturing. potentially to go to india to go to similar meetings, why is this happening, we have been seeing this play out in indonesia. we have been seeing this theme play out for the last year to 18 months or so as we saw all these problems that covid shutdowns in china caused for apple supply chain and sales in china which were down 13%. this is apple diversifying away from china both on the sales front and on the manufacturing front. the iphone production has doubled in india, it will be a panacea for apple to open up more manufacturing. the vast majority is still happening in china absheer we often hear tim cook say, he will say this again. these emerging markets are growing rapidly. >> china has its own human rights concerns but doesn't indonesia too? >> india does as well, not to mention, accusations of state- sponsored assassinations, that's another issue that apple continues to face not

time for the big money movers like netflix investors are focussin insing o guidance steve kovach is hereh more on the stock >> it is not because netflix beat expectations on the top and bottom lines blowing away expectations further on the sub des subscribers. the company will disclose less about subscribers next year. the momentum and growth cracking down on password sharing continues. don't judge netflix by the subscribers. the company will stop reporting quarterly numbers and average revenue per membership starting next year with the q1 2025 earnings report. it is also because there is a number of pricing plans and shared plans and ad supported tiers that mix up the picture. here is how greg peters explained it on the earnings call last night. >> each incremental member has a different business impact. all of that means is the simple math we did with the number of members times the monthly price is less accurate in capturing the state of the business. this change is motivated by wanting to focus on what we see are the key metrics that we think matter most to the business. >> that news

steve kovach is here. >> tim cook met with world leaders out there and southeast asia and hinting at investments in the region and also this is as they look for new areas following steep sales drops and having to diversify its supply chain. stops included were vietnam indonesia and singapore and he met with the leaders of each of those countries and those are also the countries we have heard him .2 is areas of record sales growth but not growing enough to make up for the decline in china and in indonesia he said he would look at adding manufacturing and in vietnam he met with the prime minister and talked about increasing investment in existing manufacturing and in singapore announcing a $250 million plan to expect -- expand offices there. india has reportedly rapidly increased manufacturing of iphones in the country since the last meeting but ahead of the earnings of apple in less than two weeks it is important to know that these are long- term initiatives and apple is relying on china for sales and the vast majority of its supply chain. >> what would it be doing in indonesia? >> th

steve kovach joins us now. steve, happy friday. >> happy friday. federal regulators are opening an investigation into tesla's december recall of more than 2 million vehicles over its auto pilot feature. the national highway traffic safety administration cited concerns over the effectiveness of a software update tesla issued as part of the recall. it was meant to fix a critical safety gap in auto pilot, the agency found from a nearly three-year investigation that was published today. >>> also, former president trump's campaign is considering revamping the federal reserve should he be elected, according to a "wall street journal" report. some of the options in the highly secretive plan include trump consulting on interest rate decisions and removing turn fed chair jerome powell. >>> and southwest is considering to end its signature open seating, in an effort to drive up sales. the carrier said it was cutting costs by reducing head count and shutting down operations at four airports. >> just flew southwest the other day, a free for all trying to get a

steve kovach is here to break down this for today's tech check. >> yeah. this is interesting deal.e high level first. microsoft is spending $1.5 billion for minority stake in g42, an ai startup based in the uae. one of several that microsoft made in several months. the move is designed to lock up another major customer for its azure cloud. as part of this deal, microsoft president brad smith will join g42's board and they will use microsoft's cloud to run its ai models. and additional billion from the two companies together will also go towards training a local ai work force. micro soft has a growing number of ai footholds around the world. just the last six months or so, $2.9 billion investment in ai infrastructure in japan last week. opening ai office in london, small investment in the french startup and $3.5 billion for data centers in germany. now, what microsoft gets out of today's deal, not just a stake in some hot ai startup, it's also a guarantee of more business for its azure cloud unit the middle east. the more ai activity happen on azure, the more money microsoft makes.

joining us more to talk more about this is steve kovach. we're not supposed to worry about content.'s so much out there. >> this is becoming a pr blunder. we kind of learned some of this last year when jon stewart left apple and the reports are he wanted to do a story on china, artificial intelligence and now we are learning from what he said last night, bring lina khan on and interview and apple told him no. i asked apple, they're big silent. they want this to blow over. but what's interesting about this and a lot of commentary has already been bandied about. this ties back to the doj lawsuit. i want to read you this one part it's kind of bananas, but i'll read you this part of the doj lawsuit. quote, apple's conduct extends beyond just monopoly profits and even affects the flow of free speech. for example, apple is rapidly expanding its role as a tv and movie producer and has exercised that role to control content. interesting argument here. >> come on. >> basically saying, you know, because apple is rich and successful they don't get to choose -- that's like saying -- >> tiny, ti

steve kovach joins us. >> nestle allegedly added sugar and honey to infant milk sold in poorer countries, while the same product in european products did not. that's according to an investigation by public eye. regulators in india confirmed they launched an investigation into the issue and nestle tells reuters all products are made in strict compliance with international standards. mortgage rates are on the rise, rising over 7% for the first time this year according to freddie mac. high inflation and the rate hikes from the reserve have pushed rates higher. and this is the craziest story of the day. colorado governor signed a bill into law wednesday that products a person's biological and neurological data, making it the first of its kind. consumers will be able to have access to their data while companies must disclose how they use it. it comes as technology companies expand their reach into the neuro technology industry. back over to you. >> fascinating. so i imagine that also involves your brain waves. >> exactly. >> not just your thoughts. more to come, i'm sure. thank you. >>> princ

let's bring in our steve kovach to bat around the ethical question or moral question or business question>> doesn't seem legal. >> that is my read >> it is deceitful >> the piece makes it outas if it is a clandestine effort, which it is with their own email addresses. there were times when they go to conferences and they say they're from own email addresses, not representing themselves as they are. sometimes they go to conferences and they say they're from big river. my question is, do we think as amazon seems to suggest in the article, their spokesman, this is a normal course practice in does walmart, for example -- is walmart selling product on am amazon's marketplace as another company? >> amazon in the piece, by the way, they hint at that, they think walmart is doing that. this is like an extended version of maybe let's go back to physical retail of walmart maybe sending shoppers into a target or vice versa. that's okay. we have no problem with that this is an extended version of that it also speaks to these open marketplaces that we had so much trouble talking about shrink and theft

steve kovach is here to tell us where to look with a.i. >> the fun starts this week.ek big tech earnings thing. meta on wednesday and microsoft and alphabet on thursday and amazon next week. i want to look at the names and through the lens of a.i. which is not a big business for any of them yet. here is what i'll call the a.i. gut tech. you have meta partnered with google to power new investversion of the a.i. chatbot. it is using meta apps. meta's a.i. chief is teasing a better version coming soon. you have microsoft with the copilot sales. listen for those numbers there. and the azure cloud has reaccelerated lately. and alphabet is including a.i. researchers into the broader a.i. unit deep mind. next week starts off with amazon. not much consumer facing with a.i., but hosting a lot of a.i. activity just like microsoft. with apple, really not much of the a.i. story right now, but expecting that to come at the developers conference in june. more of the concern right now is the declining sales for apple, especially in china. shares are the only one in the group down 14

strategies still, i guess, good steve kovach, sometimes it can turn bad, he joins us with more on how.i. is impacting both tech giants. got to spend money to get there. but then -- but then when you start spending too much, there comes a day. >> there will be more spending right let's talk about the two monetization stories on artificial intelligence. it is clear right now we're still in the very early days and not a lot of disclosure from either company on what's working, just some promising nuggets of information showing both companies could be on the cusp of something big. for microsoft, we saw the a.i. sales in the azure cloud unit. it contributed 7 percentage points of the overall 31% year over year revenue growth that's up from 6% quarter over quarter. but, that's where the a.i. story kind of ends as far as monetization goes. lots of mushy talk from ceo satya nadella on co-pilot. we have no idea how well it is selling, but little nuggets of information here nadella did mention a handful of companies that bought at least 10,000 subscriptions to co-pilot as for google and alphabet

we will talk to steve kovach in the next hour about this. >>> the magnificent seven doing the heavy lifting for tnasdaq. for more on the tech sector and internet stocks, we are joined by marc mahaney. marc, the big stocks are picking up. let's start with amazon. that is the best long-term call. >> it is our number one pick in the internet space. >> why? >> we think we had an inflection point. we had aws growth acceleration and record high retail operating margins. i think in the shareholder letter yesterday and interview with andrew, we got a couple of data points to that. for the company, we will have record high free cash flow margins this year. when you have that come together, you have more of a re-rate in the stock. 25 times free cash flow on the numbers next year with the 220 stock price. this could go 20 or 30 times free cash flow at 40%. that is reasonable. you can get up to 2 250. i think amazon is still one of them which is a high quality asset. >> in terms of what we are seeing right now with a.i. and what that could mean for apple, the stock which has been under more pressure th