amazon stumbles and falls. there's no way -- >> i think dan's point is you're talking about a commodity product. >> the point is -- >> the ability for anybody to catch up. i meaning thinking about who is the second largest sort of competitor, full. >> microsoft soft. >> and they are $2 billion versus $10 billion. >> i think the problem though, to brian's point, the problem is when they want to show profitability, they have the ability to paul lever. >> right. >> and spook -- >> no, wait, wait, wait, wait. >> i'm not bushel on the stock. that break when it broke down in late june, when it broke there, even for a day, to me it's a crack. >> i will say this. we're at nasdaq market site. a lot of us have known each other for a while. i broadcast from this market site the day it opened in 1999, one of the first people, and since that day, 17 years ago, amazon.com has been doing nothing but burning shorts. 17 years -- >> brian -- >> dan, listen, i'm -- >> i'm not defending the can. all i'm saying from a trader's pers

the profits at amazon are amazon web services profits. web services business to a size that can compete with their e-tailing business, they run the risk of not being able to manage profit. 5% margin is really low. cory: agreed. if there was a capital concern -- this gets back to the philosophical notion of how to run a company. do you need to get a dividend? the market used to say you have got to have dividends on stocks. back before the crash of the 1920's, just about every stock was paying a dividend. then when stock appreciation became a thing, maybe that was enough. maybe amazon has the idea that if they can keep investing the cash and have the value of the company underlying it, it might actually be worth more. joe: what about alphabet? the stock is doing nicely after hours. what interesting information have you gleaned from them? cory: i will be anxious as to how they describe their business. but we saw two trends change a little bit. one thing we have seen with amazon for a long time as they have gone from desktop to mobile is you

he is head of amazon devices.e of the things they are doing is they will try to platform.biquitous they will integrate this into cars and multiple different devices. they are going after google. they are going after scenery. -- siri. they are open wide for developers. is to be a change to the amazon thesis. emily: what about the kindle? mark: you wonder about that. they gave a couple data points of that. , thatappened with kindle is the device that give them confidence they can sell these devices at cost or a profit because they are the ultimate cross seller in the profit. you buy a kindle, guess how many more books you will buy. amazon is trying to reduce friction. you give them a device, let them carry around a card 24/7. that is the magic behind amazon's device strategy. ought like google, google cannot cross sell things effectively. apple may be can. amazon is the ultimate cross seller. they can make a business out of it. cory: when they lost the fire on with fanfare, total faith plan flop. echo launched in si

google and amazon playing in these spaces. i a amazon echo at home. every day they come out with more applications to make your smart house for a true smart house for very little amounts money. this is space continuing to grow. it is future. amazon and alphabet are two best positioned to play in the market. melissa: you have the echo? you don't feel like it is creepy? >> you want to know something? i don't feel like it is creepy. i feel like it is convenient. melissa: give me an example. what do you do that you couldn't do otherwise? >> for starters, if i'm in the kitchen, okay, thought comes to my head, add it to my list. buy milk, comes straight to the iphone, having thought, forgetting 15 seconds later. other things, turning on to my nest to the actually my ac control. i can speak to that and it can change it. it is future. those are things, especially millenials coming into the marketplace they kind of expect those things. i'm looking 43 years old it is little bit different. those are almost expected in younger generation and biggest buying demogr

amazon prime day -- amazon said worldwide orders climbed more than 60% over the last year. the hot seller is the video streaming fire tv. it helped the company triple sales of devices. it contradicts culinary estimates from tuesday suggesting sales were flat compared to last year. amazon shares popped before closing down half a percent. here to break down the numbers is our bloomberg editor at large, cory johnson. amazon says it was the biggest sales day ever, contradicting some numbers we got yesterday. how big a success you think it was? mark: i think results were generally in line with expectations. they said was three x growth for third-party sales -- they always give you these puzzles and never the exact numbers. probably a billion in total gross sales. one year ago, it was 400 million, so i think that's roughly in line. he did not gap up on this news. the fact that only moved half a percent probably tells you it was as expected. emily: why such a gap between what third-party advisers were saying and what amazon is saying? cory: i think it has to do with the fact that

people are with amazon the more loyal they are. one way to get you to be loyal is get this expedited shipping and like these free videos. the one thing they did not discloses how many new prime members they got. they will buy more frequently and by a broader range of products. emily: the average of a prime membership is seven years. i assume it will only get longer for cory: that's why they are spending 2.5 lien dollars on content. more retail experience will happen within the amazon tent. emily: where might you poke some holes in these numbers? there's a lot of information we don't have and given that this is the second year and you benefit from everything you learned in the first year, maybe they learned that hammocks were -- inr in july for top july. mark: there were a lot of aggressive price offers. fashion and apparel, it's assible you could see near-term negative margin surprise. that's one thing to look at but the days sales are important but just as important are these new prime numbers that we don't have much visibility in

amazon will deliver it.stomers purchased on average one alexa exclusive deal using their voice per ticket -- per second. >> it is amazing. also, it is not just the sales it is the number of new prime customers they bring on. we know this that the company has hinted at it. the longer people are with they are. more loyal one way to do that is to spend $100 a year to get this expedited shipping and access to things like free videos. what we don't know was how many new prime members they got. anything that gets them into the program and keeps them there they will buy more and more frequently. emily: the average length of the membership now is seven years which i assume will only get longer. >> of course. that shows you why they're billion on amazon video. they want to hook people with this and get in and stay in a not be somewhere else. more and more retail experience will happen within the amazon tent. emily: where might you poke some holes in this? there is information that we don't have. given that this is th

amazon? >> and we all recall the first time when the #primedayfail, because of difficulty finalizing orders, when you try to do black friday four months early. >> it's true. >> listen, high-quality problem. >> and extremely successful in terms of focusing people, did, what, over 14 billion last year when they had their big day at a ali baba. >> we don't want that thick going down, not making the billion dollar city target. how quickly can they fix it? >> i have no idea, but i bet there are top people on it. >> top. >> computer science people? >> meanwhile, basos on the cover of "newsweek," having surpassed walmart, now buffet in their sites above b.a.r.k. >> book out above. >> $355 billion and counting. >> jugger nut. >> it is, and amazon web services. >> and at what point do you step back and say maybe the moment up is slowing. maybe all the praise and everything else. i don't know. >> you're doing that -- you're having a reset. >> i'm just wondering when everybody's uniformly positive on so

amazon prime day. new numbers on the lack of success on amazon prime day.ales were similar to last year. sales in u.k. are up 12%. shares of the everything stored dipped earlier in the day on reports of lackluster numbers. the second annual one-day sale event also experienced a challenging start. shoppers had issues with their shopping carts amazon fixed the , issue but not #primedayfail circulated on social media. i should preface this by saying even though amazon prime day did not get great reviews last year, they say they still sold more then the black friday the year before. having worked at amazon in many different capacities, what is your take on the actually successive today? guest: i worked for them a little more than five years. i suspect it's a little bit more than revenue. there are three things to consider. they are trying to push newer categories into the market. we are a retail analytics firm. we looked at more than 27,000 products being sold on the prime day and we found more than one in four items are apparel, which is not the case last year

>> amazon. >> amazon, really? >> there's a lot of love for amazon. we're fans of amazon.of amazon. i think even if there is some selling profit taking, the down side is probably limited. from what i hear, every down side or a down tick is a buying opportunity. >> why with facebook are you less sure that there's value in that company? >> less sure because -- i'm not less sure that there's value. i'm less sure that there's up side from here. what happened was the growth in ad load which is the number of times that you see the ads, is hitting a wall because they don't have another platform like instagram to open up. on facebook news feed they actually changed the algorithm to prioritize friends and family over publishers. then on the pricing side, on a like for like basis, the ads aren't increasing that much in price. mobile is already a dominant part of the mix. >> it's an interesting comparison because they have almost identical market caps. if you look at the economic footprint of both companies, facebook obviously is earlier in its growth phase but it's attacking digital

same with amazon. >> amazon building 18 fulfillment centers. not talking about software. talking logistics powerhouse that you could start seeing not only in their own earnings but in the deleterious effects in other companies' earnings. >> the problem, people cannot get their arms around the valuation. other than -- >> exactly right. >> our next guest. stephanie link. buying alphabet and amazon over the past months and joins us on the phone. steph talksing about fangs, wondering if they're back. what's your take? >> scott, how are ya? >> good, thanks. >> yeah back. never really went away. pockets of opportunity to buy them, but growth is impressive. let's just start with amazon. you said, the valuation has always been a hard one. deal with some parts. the only way to kind of get a higher level, but i just stress that not only was revenue and margins better than expected in every single segment, you had this company really focused on operating leverage, and i know everyone kind of is poo, pooing guidance, the only reason why the stock is not up more, in my opinion, but th

to invest $5 billion in amazon's india operation.lip card take on amazon? peter l strummed joins me live from tokyo. maybe they have home-court advantage, but amazon has other advantages. can they really take on amazon? : they do have a head start in the market. they founded it about eight years ago and have in building it slowly and steadily. they tried to take advantage of the e-commerce market. retailers are fragmented and the infrastructure is difficult in order to have reliable delivery, so they have been working hard to build and amazon-like service. the founders are from amazon and they understand the business model well. moren itself is investing and jeff bezos said he would invest another $3 billion in the market. one of the flip card -- executives, we spoke to him in san francisco and he talked about the importance of mobile. take a listen to what he had to say. >> mobile is incredibly mainstream in india. there's a fundamental shift that has happened with mobile in india as opposed to in the u.s. in india, people use an ap

revenue beat thanks to amazon prime and aws. we keep hearing from these analysts that say they reached a point where they can now invest aggressively and start posting consistent profits. do you believe it? >> yeah. i know. amazon and profits. who thought we would say that after all of these years. it's interesting. aws has been the winner here for them and allowed them to do investment in other area and still show great financial returns for wall street and i think it's, you know, one of the things that probably jeff besos will do is continue to invest. i think that they're a company that doesn't think as much about the idea of profits than any others and you'll probably see them investing in video content and other things and not doing what wall street wants all the time. it's disheartening to wall street investors. >> i wonder at what point investors look back and say remember 2016. remember that year when amazon was profitable for a whole 7 quarters. i'm wondering how long you think aws and the prime revenue will be able to

you will see effort from both google and microsoft against amazon but amazon has the benefit. emily: amazon trading at $758 a share. one analyst put a $1,000 a one analyst put a $1,000 a price target.. he thinks amazon could have a $3 trillion market cap and a better chance to pull ahead of the pack. what is the street saying? >> it's interesting you brought up the projection of 3 trillion market cap, because not too long ago, there were similar types of expectations for apple and it shows you that is a company that has been volatile the past year. if you are a portfolio manager, you cannot afford to own apple in the past. shift as we're talking about. when you look at amazon, what is interesting about the earnings, this is a company -- people aren't buying for the profits because it is a powerhouse in terms of turning out earnings. if you look at what is happening with the valuations, it has come down a little bit but you are paying hundred times valuation. when you look at the p.e. level, it's kind of hard because there is no real e on that equation. and you have a quation t

what we know is that prime consumers on amazon spend more than your average amazon consumer, so maybe not need the crop. yesterday. maybe you were not one of the 30-something thousand people who s yesterday.a maybe you were like me and woke up wondering why you bought that hazmat suit -- it was so cheap, but nonetheless, it got people to subscribe to prime for the first time, people to use pridemore, and that opens up a whole set of services that keeps them locked in as customers. when will we know how many subscribers they brought in the? we will not. the firms that monitor web traffic and try to figure out what is happening were really low in terms of trying to figure out what was going on. to tell i think is doubtful going forward. they might get the direction right, but the numbers are kind of wrong. it is a really important part of amazon as we look toward its future. i keep the ginning amazon video because i think it is so important. amy award show " -- therent," "bosch "jessica stuff -- jones," "daredevil," and all the stuff. the company has spent $2.5 billion this year on orig

ever for amazon. the profits for amazon web services were 58% of the profits the company reported. this web services business is growing within amazon and faster than the rest of amazon and throwing off an operating profit of 25%. web services growing so fast and the rest of of amazon growing fast, topline growth, the existence of profits, something of a shocker when you talk about amazon, and a strong result there. rishaad: thanks a lot for that. looking at what is going on elsewhere. shanghai after plans to buy an indian drugmaker, theng $1.2 billion for biggest takeover of an indian company by a chinese company. that would give them control of new medicines and manufacturing facilities in indy -- india. sab miller backing the takeover by ab inbev. big shareholders had asked sab miller to re-think the offer. sab miller jumping alongside shares and molson coors which will buy their stake in the joint venture. up next, the ride hailing war. how it could intensify competition between uber and didi. ♪ h

let's start with amazon. the rise and we have a chart to show exactly how they are doing. : we are talking about amazon and profits. david: fair enough, don't bury the lead. cory: they have taken every available dime of profits and reinvested in the business. is jumping ahead. thesewe want to contrast two. these are there operating margins. david: 4.2%. not: the profits are coming from the stuff always showing up at our doorstep. the profits are coming from the web service. david: here we go. >> rapidly increasing. margins.ncreasing i think it is the most important business in all of technology. 20's.you go from 12.5 to have we leveled out? here's the last chart i want to get to. 10% of the business. it is 10% of the overall topline business. 56% of their profits. it is most of the profits in this business. david: and it is growing overall very dramatically. cory: that is pretty extra to narrate. -- extraordinary. the way that amazon's business works, getting people the products quickly. can they ever have se

corporate shares of amazon of 1.2%. our for that as well.are rising after reporting earnings -- out for that -- alphabet rising as well after reporting earnings that beat estimates. amazon dominated in getting revenue from the cloud. how long does that story continue? >> we are seeing amazon web services, which i say is the most important company in technology right now, amazon web yearces is glowing at 56% over just as importantly, -- 38%. so close. 58%. so close. it is still becoming a massive business. 9.5 percent of overall sales. 56% of profits. the result is a strong business that is growing. it is sticky. customers stay there when they have services on amazon. it is changing the world of technology. it is important because what is happening is that companies are turning over computer stores to amazon and not buying from other companies. the pain at hewlett-packard, unit, and other companies, the pain is driven by amazon. vonnie: and white box storage, if you have storage with amazon, why not stay with them? cory: and they are going up

emily: alphabet, amazon out with earnings.t company stellar earnings despite deeper losses from its so-called moonshot rate also gaining amazon. sales in that unit rising 58% from a year ago. coming, ridesharing officially rides in china this week with the government formally legalizing the gig economy. . as bloomberg. -- this is bloomberg. ♪ emily: ridesharing in china just got the green light, chinese government plans to legalize services in november, benefiting companies like uber. the law clears up regulatory uncertainty and lays out a new framework that allows them to operate in the country. the countries had previously operated and a legal gray area. china is a major battleground for uber and didi. joining me now to break it all down, our asia editor, asia tech editor from tokyo. not surprising that these businesses would be operating in a legal gray area in china like so many other businesses. how has this law changed? this is a significant decision because you have the world's second-largest economy saying in a stroke

, amazon and facebook tied.n got a little beat. a. >> all three watched this week. i'll be watching the european union banks. barclays soaring. european union stress test out later today. "squawk box" is coming next. narrator: the best place to find adventure... kubo: come on, this way. narrator: ...is in the forest. kubo: wow. narrator: so grab your loved ones monkey: don't even. narrator: and explore a world of possibilities. kubo: it's beautiful. narrator: visit discovertheforest.org to find the closest forest or park to you. now you can watch nbc's coverage of the rio olympic games live at home or on the go. expectations. >>> hillary clinton's big night. accepts the democratic nomination. wrapping up two weeks of conventions. now the real race for the white house beginning in earnest. >>> and gearing up for the olympics. we are now one week away from opening ceremonies in rio. have to get this out of the way first, today we're going to find out what the u.s. team will be wearing. it's friday, july 29, 2016 a

amazon or google. facebook or google earlier. say google amazon. >> would you rather? google. no question. zpl am i posed to say that, would you rather? is. >> say it. >> so, would you rather? >> round it. tim. would you rather amazon or google? >> glad asked. google for sure. on the multiple, you're getting 20 plus growth. you're actually seeing multiple expansion and guys that are in their space as well and i would argue that google deserves that now that they're a more transparent company. their website's growth is good. this is a paid user. i think facebook today shows you that if anything, there's a bigger piece of pie. would you rather? >> okay. google. >> i just cannot get on board. aws, so just talking to my broke r and long google. >> guy. don't play the host role. scott's sitting there. has a nice jacket on. >> i think the question's been asked. what's the question? miss something? what would i rather? no, but now i have to say google because everybody said google. >> you don't have to. >> no, i'm not -- >> i will say this. amazon had an unbelievable quarter. two qua

--ie: amazons itself created amazon's self-created holiday. according to channel advisor, the 2016 sales on prime day are similar to what we saw in 2015. not changedad been much on the day. we will get more details on the numbers later in the day. based on the pace of buying so far, channel advisor does a indicate the u.k. that prime day cells were up 11% as of noon. -- prime day sales were up 11% as of noon. aazon aside, it has been strong day. the s&p and now on track for record closes. the nasdaq has turned positive for the year. this action has continued to send valuations of the s&p 500 higher. this is the price-to-earnings ratio of the s&p, going all the way back to the 1950's. ,he green line is the average 16.5. as we approach 20 here, we are trading well of love that's well above those levels. -- we are trading well above those levels. we see a rally in energy, southwestern, freeport copper and gold and chesapeake energy higher. outcome coming up with earnings that beat estimates because of products business. lcoa. shares of 5% today.

i do sense people are wise to amazon. wiser than they used to be. >> they're still spending money to create warehouses. the web services are growing so quick fl quickly. they're doing consecutive quarterly profits. >> make money. they're making money. for the shorts, that's a nightmare, right? >> i know. it's just the last thing they ever expected. i guess they can make as much money as they want. u.p.s. has next day. who gets next day? amazon prime. >> the ceo is here this morning. >> good. >> you look at all that. you look at consumption, 4.2 in q-2 is good. what is going on with business up ve investment. >> i'm going to default to nick aikens. the ceo of the largest power transmission company in the country. they say this is when the oil patch hits. this is the real slowdown in areas related to oil. i think we forget how big the oil business was until we blanched at the chevron and exxon numbers. >> exxon was not good. upstream u.s., upstream dploegl versus last year, horrible. >> american has the clusters. ohio clust

amazon's there.ally is that organic or authentic environment that we just believe in thoroughly. >> and when most recently, when someone goes under, you have been able to raise rates because you've obviously produced more and more from the same properties and able to make them bigger. >> we've done that for a long time. on that chart you're looking at, one of the single biggest reasons is the way we capitalize. i never want to have to raise money. i want it opportunistically. >> and all you've done is make it better and better. you've lowered the cost of the money. >> did you see the 30-year deal we just did? >> nthat is amazing for a shopping center. >> there is, that's been through an awful lot of changes. there's been a lot of transformational times over the last 50 year, and we raise our dividend every single year. >> there's problems in the sporting goods retail. when you've lost one of those, have you replaced it with someone who pays more. >> right now with sports authority, we have five, and

but here's -- there's a huge difference between amazon and walmart. amazon is at an all-time high. walmart is well off its all-time high of $88 last year. why do you still see value in walmart stock? >> all right. well, i think it's easier to make the case from a valuation perspective for walmart because you really don't need all that much to get the stock from valuation perspective to higher levels. if you got something like 2% or 3% or 4% revenue growth out of walmart and little improvement in the margin it would go a long way to get that stock back up towards $100 with a whole lot more beyond that. if you do the same thing for amazon, which by the way i think amazon is a fantastic business, you go and look at the valuation metrics, try to run whatever kind of cash flow model or whatever you want to run. you have to have some very lofty assumptions about growth and margins to make that math work. so for our money the way we look at it even though we're very fond of amazon's business, we think the valuation case is much better for walmart than it is for amazon. >> all right. kevin

it's a thing for amazon. people need to sign up for prime.t's what makes you but -- amazon shopper so i don't think they care as much about the margins as the shoppers and they have their own subscription services but they're just offering kind of one day discounts. >> finally guys, shares skyrocketing on the surprise success of this new video game that puts pokemon on your smartphone. julia has details. >> pokemon go is a new augmented reality app that they can chase pokemon characters through the street. it's all adding about $9 million to the game. and the first mobile game past october. and it's downloaded and the highest grossing app in the countries where it's available. the game was in fact so unexpectedly popular. and use your gps and you make it look like you're on your home screen in the world around you. it can cause a number of accidents as people walk around staring at their phones trying to find the pokemon characters and there's reports that teens used the game to rob people. now there's a neutral rating on the stock saying tha

amazon, apple, google. where is the author's -- on electronic -- >> guest: well, that's a broad question. let me start with where we are with the electronic distribution. we are neutral as to how books are published and what format, what media. we want books to be written, read, and distributed. right? so the format is really -- it doesn't really matter. depends on how the reader wants to read. but the digital media has caused some destruction in how authors get paid, how books get paid for. and this is a huge issue for us right now because why are authors making less money? there are -- we looked into the reasons. there are a number of different causes. one of them is that we see that amazon pushed down the price of ebooks to 9.99. created a standard and many case even lower. that's had the effect of causing -- devaluing books. now consumers expect that 9.99 is a threshold for what you're going to spend on a book. that means there's less money for the publisher and guess where they can -- the one budget li

amazon far and away is king here .le, slight deceleration in paid search spending. 10% compared to 13% the last quarter. again, with google and alphabet, how do they expand beyond their typical search ads? what is happening with youtube in particular. ads on google maps, that might be coming. how much money with that bring in? can google continue to make this transition from desktop to mobile? andd: amazon looking more more at third-party sales. amazon does not break out a lot of specifics. we don't even know how many people are using amazon prime. we do know that they are expanding incredibly fast. they've added 13 fulfillment centers in the last month. this always concern about the profits being squeezed. they have had hit products like amazon echo. david: more on alphabet and amazon's earnings on "bloomberg west" tonight. this is bloomberg. ♪ >> welcome to bloomberg markets. on bloomberg world work coders -- headquarters in new york, good morning. facebook and groupon shares surging after recording better than estim

and could they the -- could you get a pet from amazon?> i am sure there is a way. >> like shelter.com. >> one day, man. yeah. >> and the reits have been amazing and the hotel reits are the last takeoffs and the medical property reits are subdued and the reits and the utili utilities and i did an analysis of did you see what the dominion was one of the worst, because it is up mid-teen, and did you see exelon? when was that excellent? when i paid the bill. >> and the discretion of the best sector of july. >> did you see the numbers there from tyson? they had a fantastical number, and hershey was influenced by mondelez. and jimmy dean. you submitted yesterday that you could not boil water. >> i did actually boil some water last night and i came home alone and had to make my own dinner. >> you should have called me, man, i put on a couple of steak s. >> and i have teflon. >> we have moved up. >> but i will go to the chef boy are dee when needed. >> oh, no. >> and soups and canned soup is not where the action s and campbell soup while it misse

let's talk about amazon. you don't buy the amazon -- what would they have to do to justify?they can make money. they have done very good. everything they do is at cost. they are good at destroying other people's businesses, but every other company will be devastated. i'm more worried about netflix because amazon is getting in their business. amazon is good at destroying other people's businesses but to make the revenues, to make profits, they have to show me they can make the kind of margins they would need to justify the price tag. >> why? as long as people are believing. >> that is the story part. big story. jeff bezos and elon musk at may big stories. the story can drive the price for an extended period. it might not match up. contradict thes story, the story cannot hold. it can happen really fast. these are special companies. amazon, netflix, tesla -- you can have stories that go for a long stretch because you don't have conclusive evidence. >> people get burned all the way up because they are betting against them and have the valuations that do not go. it is easy to thi

that's something that helped amazon's products.ere in aspen at the institute one of the people from amazon got off and showed off the echo machine. a lot of people buying it here on the campus. it is a whole new way to have a user interface. there's whole new ways of doing business that have been invented by jeff besos and i'm blown away by amazon and amazon is still creeping up to record highs. >> they can come out and say it was the biggest ever and sales up 60% and that's like netflix saying the premiere of a certain series is the biggest ever but still declining to give any ratings or viewership information. >> the hundreds of thousands of kindles and fires and amazon tvs that were sold in the past two days, that really does imbed people into the amazon environment. maybe it's a little bit overhyped and you may be right. the numbers aren't fully there but when i looked at the numbers that they put out i went wow doubling tripling from last year. you keep on this trajectory. amazon invented something new which is prime day which

this was a key area of strength in amazon as well. >> yes, amazon web services continues to deliver. i was watching the results come in last night. they beat on every measure imaginable so amazon is incredibly strong going from strength to strengt and a company that didn't quite care about quarterly profits now posting profit after profit. they are the ones to beat, but don't underestimate google. they have the money. they have the people power to really build a competing business. it might take some time, but they've got a brand and they've got other businesses and other aspects. things like ma machine learning. artificial intelligence, that's going to help them build and shape their cloud computing business. >> i spoke to eric schmidt a few months ago. i just i look at the possibility of a tieup between yahoo and verizon and the increasing strength of facebook particularly in this space. i wonder whether they're at risk here in some way of seeing those ad dollar canal bliezed by facebook. >> facebook delivered incredible results this week. it has been quite a week for tech stocks.

did we just witness peak amazon? we've got the details.uchl more straight ahead. >>> welcome back. time for the move of the day. more than performances in the session. since 2011. this comes as deutsche bank recommended buying delta, shares of those today. american gaining more than 11. delta -- >> traders are investing, both on the show and when it comes to airlines, this couple of day ago. i was and out and bottom line. the information from all these guys, you're betting -- very bullish for them. you have a lot of different things, but it's getting -- i think they will -- >> blue. domestic it's down on the year. jet blue should be all right. >> some things up 20%. is that right? >> buy low and sell high. >> sell higher. >> wasn't there a book. all right. and delta. huge buyer today of the upside. >> i just generally don't find airline stocks that interesting. >> what do you find interesting? >> buy low and selling high. bullish enthusiasm stocks a year ago, it was just amazing and it was convincing argument that they found religion, as f

alibaba, amazon now has one in china.mers, they are looking for quality from japan. that is why you see so many of them in japanese department stores, electronics outlets and really everywhere, snapping up made in japan -- ordinary goods, household goods. a lot of this is driven by the need for quality and the trust that they have in things that are made just across the pond. betty: and what did amazon do to make this deal work? reporter: well, it is simple, really. all they had to do was translate the japanese version of into chinese. they had already done this with english to serve the ex-pat community here in japan. now they have done it for essentially chinese speakers, well everywhere for that matter. they also added on a special shipping rate. the negotiated new shipping rates to get things from japan to the mainland. it looks like a lot of people are responding to that as well. betty: so what else can we expect from amazon locally? they are putting a lot of effort into india. they see that as the next biggest growt

amazon has created its own holiday.mart shares higher today. >> eithery moving, i think people generally treat it as a broader phenomenon than just let me find specific deals on amazon. >> kelly, i will say that actually walmart is see a nice bump up. hook logic, another outside source that we've been talking to saying, look, conversion is up. they monitor about 45 din retailers, but it seems to be help retail, maybe they're going to a web side, so actually it may be helping more than hurting. sorry, guy, i didn't mean to jump in there. >> walmart's had a stealth rally all year. i still think valuation is pretty reasonable. much quarter had an amazing year, and earlier this year, you saw a 2014-like quarter that scared everybody. obviously february didn't help. one has to wonder, is next more like 14? clearly the guys in the bull camp think more 2015. glue today president obama hailed the officers' service at the protest against police violen violence. >> our entire way of life in america depends on the rule of wall, in

amazon with strong command on e-services and cloud business.amazon ceo jeff besos results were boosted by licensing fees for the star trek series. nicole: they maintain that level and that was a disappointment to some. we some some fluctuation, in the end the nikkei finished higher, the shanghai composite index down a half of 1%. hang seng in hong kong down one and a half percent and korea kospi down a quarter of 1%. lauren: in europe we are wait if for results of the stresstist. the cac in paris not even a point. the dax in germany 45. nicole: taking a look at u.s. stock market futures down for the week, down for this morning, s&p futures down 4. lauren: it's been rough for oil. trading right now at 40.60 a barrel. gold down 3 bucks, 13.37 an ounce. nicole: microsoft will shed jobs as the company retools sales and operations and dismantle phone business. the company plans to court challenge to the irs relate toddies puit over the assets to ireland in 2010. how mobile games break in millions, revenue from app purchases, $38 billion per year. la

because amazon doesn't play by the rules. there are points in time where it doesn't really care about what it earns, because it's interested in rapid growth above all ilelse. it will sacrifice. if it sees a way to grow rapidly in india, for example. it might be willing to take some hit to its bottom line to stop the bentonville giant. you don't want this company to pay a dividend. because that would mean its ceo, jeff besos couldn't come up with a bottom line. it's amazing. it's apr''s anticipated to have billion in sales. amazon, you really have to believe that it will do the same thing to every other retail category that it's already done to books and electronics and even apparel. you have to believe amazon will destroy the mall if it thinks it can advance far past its closing price of $745. amazon might very well be able to do that. the rest of the retail stocks are sure trading as if that's what's going to happen. for me, that means if you're a young investor and you take a lot of risk, as this stock is risky by nature, g

let's start with amazon. the world's largest only retailer reporting fifth straight quarterly profit. results beating estimates on both the top and bottom line. the company seeing strong growth in cloud business and an increase for subscriptions for prime program. here is cfo talking about prime day. >> record day for amazon devices. it was a great day for small businesses and sellers. we saw great year improvement in their sales and more importantly a great day for customers. globally say saved over double what they had saved in prime day 2015. >> the moving of the stock makes him the third richest person on that forbes list. passing warren buffett. it collects precipitation. >> will you explain -- not to me. i know this pretty well. >> the expert on the set though, squall alley over here. squak alley. >> no pointing at me. >> as the expert. >> dropbox, you can get a video on a dropbox. >> think of any business that needs server space somewhere and processing power somewhere. so if you with a dollar shave cl

>> i think amazon is a fantastic company. it has nothing to do with amazon.as to do with is the valuation on amazon that underlines jeff bezos wealth has for years continued to defy most economic laws which make share prices a function of profits or cash flow, and amazon has done a fantastic job of constantly push ing the envelope on valuation. it does not generate a lot in profits. >> they weren't even profitable a short time ago. >> what is interesting about what they have done reminds me of what jane jacobs says about successful cities is their import replacing. amazon has taken every major cost on its balance sheet and turned that into a new business line. a new revenue center. they have taken their i.t. and put it in the cloud. they have taken transportation and started to do it on their own. it's really fascinating that, yes, it may be 20 years but it may be another 20 as they execute on this plan. >> it's a great example of a company that's managed for the long term and investors for a couple of decades have been willing to give them the benefit of the

amazon will take care of you, just let it be. i'm like, okay, no. >> reporter: she says amazon refunded her the full amount. amazon telling us, if a customer experiences an issue with their account, our customer service team will work directly with the customer to resolve the matter. david, to add an extra layer of security to your account, enable two-factor authentication, that time, amazon will text your phone a unique code any time you try to sign on. david? >> thank you, rebecca. >>> when we come back here tonight, new developments in the yo urgent search for a family lost at sea. >>> also, the urgent warning for every pregnant woman in america. authorities now telling them, they should be screened for zika. >>> and then, the suspected car jackers at the car wash. the driver you're about to see fight them off. that's life. you diet. you exercise. and if you still need help lowering your blood sugar... ...this is jardiance. along with diet and exercise... jardiance works around the clock to lower blood sugar in adults with typ

amazon is amazon.g, they say everything, when will it be a proxy for everybody else? reporter: that is a good question. amazon is jockeying to be in the top five most valuable u.s. companies, or companies in the world. i'm not sure when that will happen because i think the psychology behind consumer spending is what is driving amazon to new heights. what do i mean by that? you know when you go to the store on checkout line want to buy impulse line or chapstick or eyeglass fix that fixes eyeglasses, when you're at amazon you buy things. you buy a gold-plated spatula or buy the multiple yoga mats. you do it, people like getting things in the mail, or presents or boxes in the mail. charles: you spoke to my wife, didn't you? >> i did research with your wife. charles: every time i go home there is amazon box in front of the house. i cut a deal with them, get a distribution center out at the house. we both save money. it is crazy. >> it is crazy. for 15 years wall street is saying official bookkeeping rules

will amazon's one-day shopping bonanza be a boon for some small sellers? all that and more tonight on nightly business report for tuesday, july 12th. >> good evening. >> welcome, everyone. it took more than a year, but stoc are at new highs. again today, the blue chip dow index follows the s&p 500 into record territory. all those obstacles like brexit slowing global growth, they were on the back burn e for now. japan hinted at more stimulus, oil prices rose, energy stocks followed and investors regained their appetite for risk for at least this day. the dow jones industrial points. nasdaq added 34, a new high and s&p 500 rose nearly you factor in dividends in this ur news nor investors. >> the s&p is at a new high, but it has been there really all year if you include dividend gains of roughly 2.2%. the s&p 500 has hit record highs ten times once you factor in those dividends. how important is this whole gain? they count for half of the s&p's total returns over long periods of time, so since 1988, the s&p 500 is up about 720%. the total return which include

amazon has massive expectations. well even if you are complaining about what was being offered. they still spent over a billion dollars. it'll be bigger bigger and better this year. sandra: it is hard for me to understand the target and wal-mart think they will compete by offering free shipping. they are a little to the game. dagen: i got free one day overnight from zap those the other day. >> the free shipping coming out whatever. the deals are sort of ho-hum. s. ideals are not any better than their weekly promotions. they are honing in on the fact that these deals are for everybody. you don't have to be part of the club for half a membership fee. these are deals available for a longer period perhaps in there trying to get the mass in there. dagen: you can sign up for prime and do a free trial and then not pay for it. >> you could do a free trial. most people do the free trial and end up becoming members. that is what amazon is hoping. something that 14 million new members join last year. a lot of those guys turn in

and tonight, we take you inside amazon's answer to black friday. amazon prime day, as it's called. and the clock tonight. so, we asked rebecca jarvis to join us with the deals you can still score this evening. >>> also, the new information coming in today about the popular country music star who had been searching for his son. >>> and the pokemon go craze reaching new heights tonight. but there is some real push-back over where the game should be played. some saying, you can't play it here, and we ask, why were people playing in these locations in the first place? you'll understand why. a dvt blood clot. left ther what about my wife... ...what we're building together... ...and could this happen again? i was given warfarin in the hospital, but wondered, was this the best treatment for me? i spoke to my doctor and she told me about eliquis. eliquis treats dvt and pe blood clots and reduces the risk of them happening again. not only does eliquis treat dvt and pe blood clots. but eliquis also had significantly less major bleeding than the standard treatment. knowing eliquis had both...