here we go, to amazon . >> i'm not in amazon. i'm in dpoogle. >> he's in google. >> it's obvious. >> i agree on a technical basis. it's a breakout. there is a couple things we talked about when you talk about these companies, when you look at alphabet. look at the stuff amazon, aws. think about voice. they have dominated this echo thing. they are probably making money in other ways. it's a stickier thing. they are getting into content. >> i get it why you know everyone loves it. >> some day you will talk to my book a bit. >> still ahead, breaking down the after hours action. without a trade, we got a red and a blue phone tonight. we are going a little crazy. plus not just earnings. the government shutdown is out of the question. think again. a new development raised the stakes. what it is and what it means on an insanely busy "fast money" back right after this. ♪ hey, i'm the internet! i know a bunch of people who would love that. the internet loves what you're doing... ...so build a better website in under an hour with... ...goc

with amazon prime comes the amazon fire stick and fire tv. they are spending big as ever.hey reap the revenue, but do not always deliver profitability. james: a real way to think about the video focus, any other content focus of amazon, is how do we increase the number of engagements per day and minutes of engagement per day. you can think of amazon echo and alexa as an extension of that. it can include asking alexa, what's the weather. all of that eventually accrues to i'm going to shift a larger percentage of my retail spend to amazon. even though that's not generating topline dollars for them, it is cementing what is undoubtedly the industry's most powerful customer relationship. caroline: where next in terms of can amazon profitably go? record highs across the board for many of these stocks. i'm looking at amazon with $439 billion market cap. are you expecting continued positivity? jitendra: now that these touch points that amazon keeps adding, with the video, the ai assistants, different products and services, it brings people back to prime. once people are back to pr

in amazon and i may not get it. this might be forral b alphabet amazon. at some point, if i was going to do it, i think you could buy calling in both nyom names in you believe this upside. but overall, there's no reason to sell them right now. >> more on today's big tech earnings. let's bring in paul meeks, who's joining us live from seattle. great to have you with us. >> always a pleasure. >> we are having a very heated discussion about amazon and whether valuation matters. it matters if it's hitting on all slecylinders. do you think growth seems to be moderating and competition is is really heating up with a lot of recent price cuts. >> i think amazon web services will be number one by a large margin. i think microsoft azure and with diane green pushing the case for google cloud, they're going to have a nice run with their cloud related businesses. one thing you have to realize though, particularly when it comes to amazon visa vi microsoft, they report cloud figur figures, but aren't apples to apples comparison. i wish microsoft would be more transparen

shelley, you cover amazon and retail.mpany, the focus is .ery much on spending it has got huge ambitions overseas, doesn't it? >> a recently expanded into mexico, it is trying to get its hand in china. this is part of the growth story. they think that at some point, the u.s. will probably get more saturated. we will have to move elsewhere. that is what they tried -- are trying to build up. joe: i'm curious about amazon and the content strategy. this has become such a big thing. the idea of amazon having a content strategy would have seemed bizarre, but how much of this strategy, pulling people over to prime and allowing them to win in a bunch of different categories. prime.ll about jeff bezos has said, if we can get people to buy products on the website, the idea is give them more content. whether it is buying stuff, music, this week we saw prescriptions. it is this bill. of prime primeer -- build out of membership. scarlet: thank you so much. of course we do have some of the results i want to recap here. gopro. goprot: g

and then amazon, let's take a look at amazon today. it's having a big day.e most in about two weeks. we see up more than 1%. investors are looking for amazon to puppet $2.38 in adjusted earnings on $35.3 billion. the reason this matters, it is down significantly from where it was just a few months ago. back in october investors were oking for a number closer to $3.44. this could suggest that they could beat numbers. however, guidance could be an issue. they're always investing for the future. but a bloomberg intelligence analyst says that investors are ok with this, considering that they don't have so much share yet in the cloud. this could help. then finally, let's take a look at some of the tech stocks on the move today. paypal sharply higher on a beaten raised quarter. vonnie: thank you for that. looking forward to those earnings. amazon competitor boxed is taking on the ecommerce giant in household goods space and the start of betting is the automation system will give it an edge over its much larger competitor. reporter: thank you very much. let's bring

blowout quarter for amazon. shareholders must be pleased. >> scott, let me get your reaction to that, free cash. >> music to my ears. as shareholder i will not lie, melissa. what is interesting, lance mentionedded it, amazon is dropping products into your life everywhere you turn. look a lex is a, popularity. i have not seen estimates that the amount of alexas will be in homes next several years will be close to 100 million of them. there are tons of product that amazon free cash flow, they will continue to drop in your life, in your life and make part of what your life is. amazon is the stock to own if looking at retail, looking at tech, if you're looking at cloud. melissa: lance? >> so, yes, funny watching video with amazon, one of the thing i noticed is all the robots running around. melissa: yeah. >> they spent so much money on infrastructure for fast delivery. that had been a drag on the business for a time. it seems to have righted itself. amazon so so well-positioned in so many different ways to be pervas

originates with amazon. it today from one of the incomers, at 55% of product searches emanate from amazon. yesterday, i saw the insertion of a camera into a lexus. not only will they be listening to you, but watching you too. might be fine if you're trying on clothes, but how far are you prepared to let cameras into your home? all sorts of issues. because you can't go too far as far as privacy issues are concerned. talking to one media owner who competes with amazon on content and also pays for capacity on cloud, so it's a big goal to have them competing, they are frenemies competing in so many ways. looking at nuance data for cpt companies in january and february, which were weak, one of the things, of course, were the online channels. neilson does not cover the retail audit data, data channels, but amazon invites clie clients of other agencies to seattle discussing how they can effect evidencely get more market target progress, and amazon competes in such a marginal way. i was in the middle east, they boug

amazon has two businesses.overnment tax regulation needs to be performed because high street retailers pay too much tax and amazon, which sells digital goods can avoid tax. on the cloud business of amazon, there's no issue because amazon invented the cloud. it was an internal product. sorry to interrupt, amazon makes most of its money... from the cloud. we talk about microsoft and rachel explained that we used to think microsoft has gone now because nobody is buying pcs but it got into the cloud, why are they making so much money from cloud and why is cloud important? why is cloud imported? everything we do is software, that is leading the world and software is moving from the desktop to the cloud. not only your desktop but the bbc‘s computers, they used to be in—house, now they are moving to the cloud. every company is doing the same thing, why? it's betterfor users because it's cheaper, it is better for app developers, because it is easier to roll out apps. once you have a cyber security patch, put it on the

amazon will offer the games for free to its amazon prime subscribers worldwide. are not completely free since prime membership per year,ollars another big shift from last year's streaming model. twitter offered thursday night games to everyone for absolutely no-cost. part of twitter's appeal was having a social element, a way to talk about the game with other fans well watching it on the same screen -- fans while watching it on the same screen. since the partnership, twitter has lost key staff. it has averaged less than 300,000 views per minute while tv broadcasts averaged 15.8 million. amazon has a lot to prove. this is the first -- its first major push into life streaming. -- into live streaming. for now, amazon can take a victory lap. caroline: that was bloomberg's caitlin meehan -- kaitlin meehan reporting. that is making a comeback. -- mcafee is making a comeback. intel and mcafee are parting ways. mcafee will once again be a standalone, now private company owned by tpg and intel. chris young has been tapped to lead the company as ceo. he joins us from the c

amazon.le which people have been trying to leave for dead but it's just doing too well overall. >> apple trading at 17 times earnings. nothing in the 1990s was trading at that. >> they're all competing with each other. amazon wants in on services now which is google's business. amazon is there. maybe the market goes down overall. but each of them has a strong core business and they're aggressively expanding because they know they need to. if you work in tech, you have to be happy about that. >> i wonder if heavy competition could bring some pain, for example, could you see a price war in cloud as everyone aggressively tries to get in. >> i am ready for the announcement that we're cutting prices by two-thirds in cloud and wipe out profit. you have to be used to that with amazon. >> they have the monopoly on e-commerce but walmart.com starting to see results competing aggressively. any sense that could be a threat at some point? >> walmart buying jet.com was a mid life crisis hair plug. it was

there is a clear sign of intent coming from amazon. absolutely, and the people just look at their investments and their strategies, which are regionally different, the pricing strategies are also different. it is basically telling you they are expanding by localizing their strategy in which is working for them. caroline: mexico also a new area that they are launching prime. what about the content side of the business, james? with amazon prime comes the fire stick and fire tv. they are spending big. it reeks in revenue but does not always deliver profitability. james: right, a wheel -- real way to think about the video focus and any content focus is how do we increase the number of engagements per day and minutes of engagement per day? you can think of amazon echo and alexa as an extension of that. if we get you to touch amazon in some way, eight, 10 times a day, that includes video are asking alexa what the weather is, all that eventually accrues to i am going to shift a larger or -- percentage of my retail spend to amazon. even though

amazon is as well.ities for global expansion beyond the united states and a few other key markets it is in. they do need to be scrutinised by regulators very carefully. as he spoke about, amazon is marching overseas that march is taking a toll on yahoo! japan. the company shares dropped 10% on thursday after warning it would raise its marketing budget by nearly 50% and that says it struggles to compete with amazon, the us online retailer has been investing heavily injapan including splurging on warehouses and robots to launch an amazon prime servers. staying with earnings and first—quarter profit at chinese internet giant bai du wrote about 7% from the previous year but the company is warning that earnings in its current order would be less than expected because of restructuring cost. bai du shares fell on that warning. nintendo expects to sell 10 million units of its new switch game console over the next year, beating big on the follow—up to its poor selling prior unit. they issued the forecasters they

to the big amazon story. there's always a big amazon story.m thursday night nfl games. what a story? look at that stock go. we will be right a back. delivers more complete relief. flonase helps block 6 key inflammatory substances that cause all your symptoms, including nasal congestion and itchy, watery eyes. flonase is an allergy nasal spray that works even beyond the nose. so you can enjoy every beautiful moment to the fullest. flonase. 6>1 changes everything. nicole: we see up arrows across the board. nasdaq with new highs driving the dow, all names to the upside, caterpillar continues to jump. earlier this week -- [inaudible] nicole: as i mentioned nasdaq all-time highs. they are taking a looking at record closing highs. some of the names on the nasdaq that are hitting all-time high, amazon, ebay, microsoft and apple and these are all soaring, walgreens' ceo that approval is coming in the next week. maybe a year and a half for that. fox business 5:00 a.m., lauren simonetti and i will see you there. re on a perfect car, then smash it into a

it's the same story with amazon. retailers — it dominates online shopping, and still saw sales grow over 22% to almost $36 billion for the three months to march. three quarters of a billion of that was profit. amazon has been growing sales in double—digits for 20 years. microsoft too is raking in huge sales. many people wrote it off as a victim of the decline in pc‘s and the rise of tablets and smartphones. but it's become a leader in cloud computing. it made revenues of over $23 billion although they were only up 6%, and that was less than wall street was expecting. but are these tech titanstoo dominant — simply too big — and too powerful in their respective industries? that if they remain under scrutiny. some practices, adding conventionally, you'd have to say yes. they would be up to 50% of the e—commerce market. knocking out a lot and traditional retailers as well as on line rivals but it's not behaving in the two —— traditional monopoly way. with price gouging. consumers still get a pretty good deal. prices are

i'm looking at amazon with a $439 billion market cap.ou expecting continued positivity coming from amazon? >> now that these touch points radiozon keep adding with , ai, different products and services, it brings people back to prime. once people are back to prime, they spend more, so this cycle has a lot of runway. just of markets they are starting to enter. there are international markets with lots of headroom for the retail segment. business continues to beat expectations in terms of how big is this market, and that number keeps going up. they have into markets to support that growth longer-term. it is just a balancing act of how much should we invest and continuing to show these positive roi numbers the revenue growth. caroline: i will ask this when we discuss alphabet, but the growing advertising side of that amazon is starting to show off, art these key competitors. we see them fighting it out in cloud as well. >> absolutely. these are two of the most unlikely competitors that people try to separate mentally, but they are in the bu

amazon and apple. mentioned, amazon marching toward $1,000, am getting back near its all-time high in terms of market valuation. those are the usual suspects that lead and panera bread is one of the big winners with the takeout price coming from j.b. holdings, giving a little cake and physicfizz all-time highs t. >>> let's get to the cme group, rick santelli and the santelli exchange. rick? >> thanks, carl. when we look at markets these days, there is so much out of rhythmic commuter driven trade. i am not questioning how good and granular it can be. there are times where i like to get out the old protractor. i will bring it in the future. one of the old brain exchanges that opened in the midwest, gave them out as gifts, the old plastic triangle. it had little hole ns it. there were 45-degree angles, various angles, we call them 1 x 1, 1 x 2. it was slope and geometry. you have heard me talk about one of the big issues with just watching price is that one of the rules and the reason these angles work i

amazon and alphabet otherwise known as google. m amazon going up.ove $9 the -- 900 a share and moments from now, the dow will probably hit 21,000. back in a moment. break through your allergies. try new flonase sensimist instead of allergy pills. it delivers a gentle mist to help block six key inflammatory substances. most allergy pills only block one. new flonase sensimist. >> now, there's a lot of background activity that will be the backstop to the market today. first of all, extremely weak economic numbers coming out of the first quarter. we're only growing at .7%. that's about as weak as it's been for a long, long time. other story, the big technology companies are reporting simply spectacular earnings, certainly, that's true of google and amazon. you can see their stocks go straight up at the opening bell. and by the way, we're going to open only 19 points away from the 21,000 mark, the trump rally is holding. this morning, we're off and running and open for business. where do we open, there's the question, 20,984, 20,987. we're going to hold

amazon and google are up. intel and microsoft are down.il recovering a bit on day 99 of the trump white house. road map we'll begin with tech stocks climbing mostly in the premarket. microsoft and intel are moving lower. >> we've got a first look at the economy under president trump. it was a weak first quarter, the question of course is has growth picked up since then. >> starbucks out with results, the stock is slipping. a live and exclusive interview with ceo kevin johnson and now chairman howard schultz. on the tech earnings front, amazon as you may know by now surpassing forecasts, getting a lift from the cloud business. alphabet also above consensus as mobile search helped to drive ad sales higher. microsoft and intel beat on the bottom line, but miss on the top line. jim, there's a lot to get to last night. >> last night was incredible to listen to -- not to the amazon call because amazon said, our cash flow is fabulous. all true. but the alphabet call was about how we're not a search engine company that's driven by advertising alth

obviously, amazon qualifies. secondly, this is something where you don't have as much of a margin of safety, stocks that might have a high valuation. and finally, situations where you might have capital constraints. amazon is a very high-dollar stock, owning 100 shares of it is going to cost you about $90,000 so maybe there's a cheaper way to take a long bet. taking a look here, we're basically trying to identify where we think the stock could go, number one, where it's come from, so the risk we're trying to avoid so right here we can see the stock closed around $900. you know, what we can see, by the way, this is trading right on the highs so we can talk to -- we can talk to carter about this, but i was looking at the 925 level because i think if it's going to break out, that's the number your going to have to look for so just looking at the trade, i think you can buy the 925 call, spend $26.10 for that, sell the 1,000 strike call, that's going to give you more than 10% to the up side. obviously, the net price h

more on average on amazon purchases.ith facebook and youtube bid on those rights after the largest line of streaming video strategy last year, twitter weighed in on losing those rights, saying, quote, since last year, we have collaborated on over 40 live stream partnerships and we will continue to bring the best live content to our customers around the world. twitter also announced its scheduled to stream some mlb games, doing one every friday for the season. there is no question the sports considered more valuable than anything else to drive live viewers so many options. just like the sports rights on television, there is a premium for the one category that people always want to watch live. melissa. >> you think the $50 million price tag was anything to drive up content costs for the networks? they still had the right, correct to stream those same gain games on their own platform? >> they have already locked in their price. this is a totally different right. they can stream on their own platforms. they already figure3d

plus, it's amazon's world and we're just living in it. but if you missed the move in the stock, we've got a way to buy it for less and we'll explain how when "options action" returns. . welcome back to "options action". i'm domenic chu. probably one of the single biggest stock stories of the week had to be what happened with amazon.com. now that stock ended an eight-day winning streak yesterday on a week where we saw three new record highs in succession, which means that amazon stock has now made 11 record inter-day highs just so far in 2017. now despite the momentum pause over the last couple of days, the total market cap of the campaign increased by $6 billion this week alone. to put that in perspective, that's nearly as much mark cap in a week as ralph lauren as a company is worth. or it's the total market cap of kohl's as well. if you think that's impressive, try the 20% in the stock this year. >> that translates into a whopping $71 billion in added market value or like roughly adding the size of american express. but can that run las

a lot of consumers love the disruption amazon has brought.ring to the economy of large? >> there is a huge opportunity for distribution companies. amazon is also a retailer, which is the same thing what these distribution companies are. they need to embrace the third-party seller marketplace, which is what amazon has been doing for 20 years now. that business model is called the platform business model. those business models have a winner take all dynamic, which means there are only one or two companies that dominate in industries market share, so they are highly fragmented. the marketplace is valued more than the veneer distribution -- linear distribution model, so they could be in a position to drastically increase market share if they were to look at revising their business model structure and embracing that marketplace model, letting third-party sellers sell alongside them on their website. caroline: let's see how quickly that disruption comes are these companies respond. wonderful to have you with us. that does it for this edition of "bl

look at amazon is a force to be reckoned with. that will be much, much bigger than it is in five years. look, i wouldn't want to be running target or any of these bookstores or any of these businesses that compete with amazon. i think they are in for a world of pain in the next five years. >> mike mitchell, thanks, guys. a lot to talk about today. >> thanks again, guys. appreciate it. >> when we come back, u.k. parliament vote tog give the green light to the proposed snap election. we'll talk about the market implications next as we head to the european close. plus, the reviews are in. hear what walt mossberg has to say about samsung's new flagship smartphone when we come back on "squawk alley." question you ask,tant but one i think with a simple answer. we have this need to peek over our neighbor's fence. and once we do, we see wonder waiting. every step you take, narrows the influence of narrow minds. bridges continents and brings this world one step closer. so, the question you asked me. what is the key? it's you. everything in

how do you explain amazon? >> effectively amazon is becoming all of retail.ow do you grow into valuation of amazon? artificial intelligence, purchase history, credit card, basically takes you off the table and they start sending you two boxes twice a week. one with stuff they think you want. one empty. put stuff you don't want back in the box. you stop shopping everywhere but amazon. zero click. send them on a rocket ship to a trillion dollars. the most disruptive company in the largest economy in the world. >> we're talking about the store. interesting concept store. what amazon is trying to become is a delivery company. that's where they see they can get the most benefit and give the most value. >> a delivery company? >> that's what they are trying to win here. they own less inventory. they are just doing arbitrage on warehousing. >> they want to be fedex? >> i think on some level that's what they're trying to disrupt. they want to close that last mile. >> and upgrade today has nothing to do with selling goods. it's about sponsored goods on your ad business

amazon is not extended at all. i like it, and i like the trade. >> listen, the stocks up 85% from its february. i'm just telling you that we know -- >> it's not about that. when you have a stock that has 800 p, 400p, it's not about evaluation. if you get into charts there's not a steep angle. >> but can i tell you what is steep is gaining the market cap, and we're actually witnessing things we've never seen before isthin market. >> and there's never been a stock grow like this. there's never been an asset this large growing at this rate. >> people recognize this not as a business but all business. when we think about the risk that something like netflix might potentially face, amazon's one of the flas places you're going to look at. when you're dealing with microsoft and oracle and their cloud business, we're concerned. >> do you think the chart looks -- >> no, i think it checks back to the 850. a lot of people think this is going to be the first trillion dollar company, not apple. but apple also had 20% -- >> do y

amazon echo, google home, maybe one day even rory.the digital assistant is upon us. all of these are trying to be wide ranging all—purpose artificial intelligence systems. that is the technical term, horizontal intelligence systems. that is the technicalterm, horizontalai. that is hard. to cover a lot of subjects and too many tasks, these things have to understand a lot of things. rory, tell stephen i will call him in the office after my train journeys. first it works out what i said. then it pulls out the important words. then comes the reasoning and context it needs, and it does so by scanning my calendar and my train timetable and guess is that he is the stephen in the office, not the friend, and then the right action needs to be performed, schedule the call and let him know. but rovs best placed to do that? —— are these. 0r but rovs best placed to do that? —— are these. or should we speak to other specialist vertical ais that it do onejob other specialist vertical ais that it do one job really, other specialist vertical ais that i

on one hand, amazon c.e.o.ged $5 billion for growing the e-commerce is giants presence and taking on the local leader. the other c.e.o. is said to be closing in on the deal to merge snapdeal with flipkart to fend off amazon. also joining the fray is ebay. it just gave flipkart $500 million in india for exchange for equity in a cross-border deal. one number worth noting. the latest funds valuation, $10 billion. that is down from the more than $15 billion valuation given in 2015, making this a down round and serving as a warning that the indian e-commerce market may not be the same growth driver for these companies as china was. now, artificial intelligence is quickly being adopted across every sector, including the fintech sector. one company utilizing this creditogy is lantern based in newport beach. the startup provides an interactive credit report that allows customers to see how actions might impact their credit score. the company also partners with banks and uses computer learning to provide offers to custo

amazon is also trading higher. alphabet and amazon are on their best pace. western digital is up nearly 3%. apparently, the supply-demand -- isc is pretty profit pretty positive. we do have some losers today. at qualcomm,g starbucks and time. qualcomm is lower by 3.5% after apple said it's ending its licensing payments at this is not a surprise. one analyst told our team earlier it's worse than expected and qualcomm has cut its estimates and starbucks beat earnings every so often but missed comps sales for the first quarter. weakness continues in the u.s. and finally, time is plunging, on pace for his worst day ever. this is after they did not get the lending mark. shares are getting a bidding today. mark: we are lower for a second day. it happened at the beginning of the week. we are on track for the third straight month for our best run since may of last year but down for a second day today led by telecom, real estate, and media. it's about banks today. that barclaysu shares are down by 5%, the biggest to clients in the june, europeang the latest lender to

we seen it with amazon, yesterday agreeing amazon red does not happen that often. march looks works, april looks better. weather better. so you have a couple of things that are tail winds. so i do think at this point it probably is the tipping point where retail, those names that were thrown out for a bounce. >> for a bounce. >> the set uplooks favorable for seven names because guidances have been leaving sandbags. so i would stay away, 100% from the lower quality names, you might think you get more vix because we have a bounce. >> more of a move. >> they have been beaten down. i would say, looking at skechers, it's a name throwing off free cash flow. they get 50% of the catch you're shore. they will have over a billion dollars in the balance sheet by the end of this year. that's a name you could say i want to own, burlington stores, a safe name. look how much that stock's held in. so you can make -- >> did you see the data points about under armor losing? you still want to own skechers? they're buying skechers, but not under armour? >> skechers are throwing off ma

to see a 4% pop on amazon.ow we have the race to $1,000 stock between amazon and alphabet. >> an interesting breaking down of detail. we will dive into that with more detail in a moment. let's look around the rest of the world in terms of what asian markets are doing. mixed this morning. shanghai positive. japan and hong kong negative. you said earlier this has been the best week in 2017 for european markets. france is up over 4% for the week as a whole. most of that gain -- all of that gain coming monday. we have been flat to down or slightly up since then. ending on a positive note this week for all of the european markets, apart from the ftse 100, which is weighed down by barclays. >> as for the broader market picture, the ten-year treasury note yield, not a lot of action. we're set to get first quarter gdp today. the estimates have been moving down on this one. could get a sub 1% growth number. the good news is most of wall street expects that number to rebound in the second quarter. the ten-year yield has

amazon books was the first company's physical store. it opened less than two years ago, this year physical book stores are expected to be in 11 locations throughout the country. on the surface, it looks like your typical book store, with title gadgets like amazon's kinds him and echo and fire tv devices showcased around the states, with a likely goal of encouraging customers to join its online prime membership program and then there is the push for the grocery store business with the goal of getting rid of the checkout counteru counter. it is another technological leap that dramatically changes the way by eliminating the cashier. >> it's typical. they already have those takeouts. >> it's convenience. if it's an automated process, they put crutches on my car, it seems quick and easy and better for me. >> reporter: for now, brick and mortar is an experiment and a tiny part of amazon's overall business. it may be a part of jeff bezos business, an expansion is a byproduct of. that last year they took over a staggering 70% of the new downtow

amazon echo, google home, maybe one day even "rory."f the digital assistants is upon us. now, all of these assistants are trying to be wide ranging all—purpose artificial intelligences. the technical term is "horizontal ai." but that's really hard. in order to cover a lot of subjects and do many tasks, these things have to understand a whole lot of things. take this example, rory, tell stephen i will call him in the office after my train journey tomorrow. first it works out what i said. then it pulls out the important words. then comes the reasoning and context. it needs to scan my calendar and my train timetable and guess is that stephen is the stephen in the office, not stephen the friend, or stephen the other stphen. and then the right action needs to be performed, in this case schedule the call with stephen at 10:20 and let him know. the question is, are these horizontal ais best placed to do that? or should we maybe instead be talking to a number of specialist "vertical ais" that do one job really, really well. well, one company th

we love amazon. simply because we love the cash flow it's produced and the optionalty over the long term that that gives us as shareholders. we think they are intelligent allocators, and as they grow, cash flow grows, enter in new fields, areas, and outside of maybe just what the consumer business has been so far. there's a lot of opportunity for amazon due to the free cash flow generated now. >> larry, which is your pick? >> i bet on the other horse, google. google and its friend, facebook, are taking more than 100% share of the growth in global advertising. they built up very, very solid businesses that are basically in vulnerable to competition. in the last year, google added 4,000 people or so, and they added per employee added, $3 million in revenues. that's a phenomenal sample of american productivity using tech, and i don't see really anything that gets in their way, and in the last quarter, they grew revenue 22%. they converted 30% of the revenue to operating cash flow. google has an advantag

google, facebook, and amazon are partners of ours.are focused on a , business models side of brand advertising. i did advertising for 20 years. i see an open lane in space in the brand, and that's where we are going. >> is marissa mayer going with you? >> right now, the executive team is marissa, plus me, planning the executive outcomes in terms of leadership, which we will announce during quarter two. i will repeat what she said and what i've said before, which is that marissa will stay through the next phase. the next phase will be a mixture of the two executive teams together. i will look for more information in quarter two about that. caroline: that was aol ceo tim armstrong. sticking with the web, president trump has rescinded a role that requires internet service providers to ask for subscribers permissions before using their web browser history. -- history for marketing. i spoke with the founder of the world wide web and asked his thoughts on the signing of this new bill. >> i think this is a step in a bad direction. a disgusti

you would have the formidable rival to amazon.ng to remember about the marketplace in india is it is still relatively nascent. the distribution channels are fine in tier one cities. in tier two and three where growth is going to be, there will be a massive need for investment. amazon can fund investment from its own cash flow is. companies like flipkart will have to rely on money from external sources. this is an industry burning a lot of cash. we are seeing negative growth margins, billions invested every year. it is going to be a battle. amazon is well positioned given its capital base to succeed. plus, they lost in china. they lost to alibaba. they want to prove to investors they can win in foreign markets like india. caroline: the winner being alibaba, who at the time was backed by [indiscernible] taking a page out of the playbook. he seems to be willing to sacrifice some valuation in snapdeal which could merge with flipkart. there are rumors we might see an 85% cut in evaluation of snapdeal if we does the accommodation of the

would they ever be tended to do something like that with amazon web services? >> it is an interesting mental schism what they are making profit in the business work. even as they cut costs and services. they are really fueling the rest of the business. t portends to greater growth . compare this to the other giants and technology. is approaching the market cap of a company like microsoft. you see spectacular growth. amazon, we are starting to approach some of the biggest companies in the world. >> characterize it for us. >> we have seen strong growth. across all verticals. it is fairly interesting. the markets get ahead of actual results. the economic result has generally been strong. we don't see that in other sectors. spending continues. >> this isn't about earning season. i'm curious about the fcc and the change. there is some real concern about fcc policy. rules on the fcc. the rules about 90 trilogy -- i think a lot of the companies are concerned now. how they gone quite over immigration or is there more to come from the tech ceos? the ruling is ultimately

i'm going to start with amazon. looking at one of my favorite functions, and was recommendations. i am looking at the price target in yellow creeping almost above $1000. as a consensus price target for amazon, there is plenty of buys, yellow meaning hold, not one sell. >> cloud momentum continues. demand is strong. profit margins are healthy. on the retail side, the market demand is strong, but more importantly, amazon's fulfillment program is on fire. they have grown their sellers by 70% last year. they sell directly to prime members. prime members get more selection and the story continues. where it does have a downside is , this growth we have seen, is on the cost of the equation because it puts near-term price pressure on the company, so the growth trajectory is strong. it's the cost of volatility that withve gotten used to amazon in a lot of ways. that is not going away. caroline: certainly some of the raised expectations of this seem to be on the amount they continue to spend. that does eventually filter into

amazon can fund investment from its own cash flows. flipkart have to rely on money from external sources. currently this is an industry burning a lot of cash. literally negative gross margins, billions of dollars being invested every year, so amazon will be well positioned given its capital base to succeed. plus, they lost in china. alibaba, and want to prove to investors they can win in foreign markets like india. caroline: the winner being alibaba. -- taking another leaf out of the playbook there. do you think therefore that the money -- it is interesting, he seems to be willing to sacrifice valuation in snapdeal, which could merge with flipkart. there are rumors we could see an 85% cut in valuation of snapdeal if we see a combination of the two. it looks as though -- himself is willing to take a hit to win. >> that would be an interesting transaction to watch and see how it is structured. he may be willing to take that loss on snapdeal if he can get a larger stake in flipkart. he likes to have stakes that are in that more meaningful

doesn't amazon report earnings? >> tonight. >> she gets amazon at the current praise.y an egg she was already -- >> there could still be a cylinder use behind. >> all i'm saying is i hear that pick. i think it's a very good chance though she picked it about 45 minutes or whatever it is too early. >> i'm picking the fourth pick in philadelphia eagle draft that's on saturday. and the problem is this four rounds and the draft was on saturday rkts you can take into account amazon you may be right but the problem is we're stuck with -- >> beardstown ladies did it though. >> bell, that chime show it is fifth pick is in. tim see mknown from fast money. tim who are you taking. >> you sitting down brian? >> no. can you tell. >> all right. value yent pharmaceutical. first of all we'll a complete ball club right now. after deflation gate i think it's time for non-correlated as success. >> can you speak english please? >> at the end of day to understand the equity in this stock you have to understand the debt. what's bumper going on, this is a company that's active in the last thr

we believe amazon shares are fairly valued at current levels.hen do we care about valuation when it comes to amazon? >> that's a great question because it hasn't mattered recently, although now with about a $450 billion market cap, we think investors will want to see profits. we expect second half rleverage. everything has a price. we think the risk reward is more balanced here. we'd like to see improved margins for the stock to move higher from these levels. sxwl your concerns specially, one of the reasons is your concern aws, amazon web services. you say less near term service given the price cuts. are we seeing a lot of competition in cloud? >> yes, so amazon for a long time, hadn't had much competition with microsoft, google is getting more competitive in the space. so, we think it's a three horse race going forward, but we expect more competition. and we think analysts are now expecting good growth for amazon. less upside to both revenues and marnlgins. we're less likely to see revenues going forward. >> why remove the price target? you've