ebitda up 15%. i think what you saw today with the analysts consensus was really nice example of how unpredictable things became in the height of the coronavirus pandemic and so there's a range of opinions there. i don't think investors put a lot of stock in the consensus number i think they are looking at what the actual numbers were and or path forward i'd be remiss if i didn't give a shout out to our tremendous team members. 38,000 team members who really stepped up over the entire course of this pandemic and delivered for us we threw a lot at them in a really rapid pace to try to adjust to situations on the ground and i couldn't be more proud of how they handled themselves and delivered for their communities and for their guests >> a shout out, i'm sure, acros your large system. revenue was down mostly in the second half of that first quarter has people drove less, consumed less fuel i imagine that maybe they were carrying out more pizzas but at the same time they probably weren't staying in the

some trade in p/e some trade in ebitda they trade at different levels it's stock specific that you havelook at. no general rule. >> vic in long beach, california raytheon can i get your thoughts. >> couple of thoughts here this is kind of a chicken way to play boeing. if you're noticing what's going on with boeing, it's rallying because they may get the 737 max up in the air tonight. now raytheon supplies jet eng e engin engines, all sorts of things the other good thing to think about, this kwaert, the second quarter is the first quarter since the merger with united technologies after they report that quarter, analysts will sink their teeth into what it means and what the earning power of the company is. i think they will be pleasantly surprised. this is a good time to buy it. >> shannon from norm in wisconsin. dell seems to have found traction and momentum. is it worth to it buy more shares now >> well, it's all about vm wear. it's about a third of their operating propere ining profits. the gains are as a result of that position. there's talks about a spin off i don't think it's in del

bike rides up 118% and they lowered their ebitda loss by about 35 million for q2. look agent the cities reopened, number of ride share growth doubled to trip the national average. i expect as estates and cities reopen that's going to significantly boost that growth in terms of ride share so if you think about the elevated implied volatility over the past few days and the fact the stock moved quite a bit on this pro guiositive guidance, a limited upside on lyft but the $35 support is pretty solid. trade structure looking to use, one to sell to volatility. july 10th weekly explanation, selling 36.5, 31.1 -- 31.5 put payings 3ds 1 for the put. net-net collecting $1.90 on the credit spread about 35% of the w width and breaken, $35.60. right below the level i expect lyft to stay above. >> hmm well, mike, tony liked your trade. what do you think? applaud what he's working with here for lyft? >> yeah. despite the fact i was buying a put spread and he's selling one die like it. there's a time and place for every trade. sometimes makes sense to buy put spreads and sometimes

bike rides were up 118% and they lowered their ebitda loss by about 35 million the number of ride share growth is double to triple the national average. as cities reopen, that's going to significantly boost that growth in terms of ride shares if you think about the elevated implied volatility here over the past few days and the fact that the stock has moved quite a bit on this positive guidance, i think there's somewhat limited upside here on lyft, but i do think that $35 support is pretty solid. the trade structure i'm looking to use here is one to sell volatility i'm going out to the july 10th weekly options expiration and i'm selling the 36.5, 31.5 put vertical i'm paying about 1.3$1.30. i'm collecting about 1.90 on this credit spread the break even price on this spread is about $34.60 which is right below the $35 support level that i expect lyft to stay above. >> mike, tony liked your trade are you going to applaud what he's working with here for lyft? >> despite the fact that i was buying a put spread and he's selling one, i do like it. sometimes it makes sense to buy put spreads a

i would stress we are a highly profitable company from an ebitda standpoint.te cash flow and that is allowing us to invest in growth initiatives around expanding the market. we are experiencing a high growth market that has secular trends and allowed us to continue to invest in recycling. backers: private equity -- i am sure they are pleased with the exit. own.ou are sort of on your how do you change that and pay down with the amount of money you have raised and what structures do you want? reporter: >> the shares we issued were all primary shares and the primary use of proceeds is to pay down debt. i will not get into specifics but that being the primary, that has a meaningful impact on our capital structure and allows us to continue to invest in the market. not ourur market is types of materials. reporter: you have 1500 employees and several factories in the u.s. how is the pandemic affecting everything for you now from the decision to go public to being able to continue making the outdoor furniture? we make outdoor decking and living spaces. we highlight an

everything being said. .t is also a huge endeavor it obviously drains their bottom eps in terms of ebitdand compared to topline growth. and profits are essentially going to be negative in terms of growth. all right, many stories there. we will continue to follow them. synovus trust, always good to have you on the show. coming up, employers are rushing to innovate social distancing at work. software weome new will tell you about. will it be enough? we will discuss. this is bloomberg. ♪ emily: amazon is deploying new social distancing software across its warehouses. the software called distance assistant warns employees when they are too close to their colleagues. it is the latest effort by the e-commerce giant to address their practices. i want to get to bloomberg's math day -- bloomberg's matt day with the details. little bitworks a like the augmented reality experience from pokemon go. employees are filmed on video cameras with depth sensors. they see themselves in footage when it happens. superimposed around them, little green circles follow them around. thaton as software detects someo

what is really ailing in these companies is really revenue and ebitda. should improve because the liquidity gap has been healed in a very big way. trillion gdp.$21 to fed has added $3 trillion its balance sheet. a $21 trillion gdp. if you think about it that way, that is 28%. >> on the bankruptcies for a second, will that be the liabilities on the balance sheet or what will that be? >> in aggregate, we think it is the $400 billion. it is currently $100 billion. we think it is a fourfold increase from here. romaine: we were just listening to bruce richards, speaking a little bit earlier on bloomberg tv. we want to turn to the events of the past six months, from the return of the covid-19 crisis to the latest social unrest in the u.s. our next guest has researched and written extensively about the progress in society and tug-of-war's that sometimes threaten our advancement. steven pinker joining us now. great to have you here on this program. we have been spending time over the past few weeks talking about what some looked at as i guess unmitigated risk in

new metric by taking the rule 40 score and dividing it by the price to sales multiple let's say the ebitda margin should be five times the size of its price to sales multiple. who makes the cutoff some old friends, dropbox, livango, adobe, chegg. of course i sold adobe too early. let's get specific if things go haywire, i have four stocks worth hiding adobe systems which we had on the show last night. it is unique in that it is a balanced cloud stock the stock still has reasonable valuation selling just over 35 of next year's sales estimates, not earnings, but sales. this is the only cloud company that has reported for the most difficult period of time shut down in march, april. the ceo is a genius. adobe illustrator makes you better than you are. and this cloud based platform i think will do incredibly well. schools will likely keep going digital to slow the spread of the virus. security sales force, the king of the cloud, we have been recommending this one and it's been good every step of the way. they sell cloud share to more businesses it's a smart thing and a reasonable valuation and

that's going to be the ebitda driver their liquidity is pretty good as well. i bought two new positions active is an auto parts company. even though second quarter you'll see production rates down 50%. these guys are still gaining share. it's like the connectivity in the car. they have great technology and out growing the market by eight to ten points. i think they can be a beneficiary and stanley black and decker it's kind of a hybrid. people are do it yourself. it's a go back to work it's also a roping because 30% of their revenues are tied to very beat up industries like industry and auto. they have the restructuring story under way so the margin shoel should hold up >> when you talk about a name like wynn, it's up 22% in one week >> yeah. i was buying it in march and in april and in may i really feel like you're going to have the reopenings come in stages and as we learn about more and more of the opening, that's the most important market for them i don't think people are as much aware that it's certainly starting to open as you get more data point, i thin

in terms of ebitda, we're looking at last years. there are better ways to approach that and we're looking at that in asset based approach. that's something we're looking at our big focus has been on getting the facility open. we're looking at past pre-pandemic earnings in any case we're not taking into account the effects of be pandemic for that purpose >> thank you, chairman powell. >> thank you senator van hollen >> thank you, mr. chairman and ranking member welcome chairman powell. i'm a little late to the hearing. i was on the floor of the senate calling for us to take up the justice in policing act and addressing an urgent way issues of systemic racism i'm glad you made the statemen you did in your opening remarks. i wanted to ask you about a statement made by rafael bostic. the president of the latlanta fe where he wrote systemic is a yolk that drags on the american economy and a commitment to an inclusive society also means a commitment to an inclusive economy. do you agree with that statement? >> i do. absolutely >> it's urg

the reason main street doesn't work is the ebitda limitation. i yields back. >> we'll continue to talk about this issue and pay attention to what you're saying to us about it with that, mr. cleaver you're recognized for five minutes. >> thank you very much thank you for being here chairman powell for being here again. i know you have been asked about black and brown business owners being left out of the pot that we have clearly intended to help during these down times. i'm frustrated like a lot of people not only in congress but a lot of people around the country. what is your philosophy mr. secretary. maybe not philosophy but what do you have to say to the person why weren't rule and minority businesses more equally supported in the emergency program? what do you think happened >> well, let me just first say, we need to all do a better job at making sure that we have sources of funds for those businesses and to support those businesses in the ppp we have worked with lots of different people to make sure that the cdfis get there. across the boar

in terms of companies, ebitda is basically just pretax cash flow, a widely use metric, but there are other metrics, as the secretary mentioned, probably the next in line is something along the lines of acid-based. that is something we are looking at with the treasury. >> under the mainstream lending program, you reduce the minimum threshold from $1 million to 250 thousand dollars, and then expanding the program to nonprofits with more than 50 employees. however, many small businesses may not need $250,000. mr. chairman, has the fed considered eliminating the minimum loan threshold altogether? chair powell: we had not considered eliminating it yet. we are just getting rolling with loans, as you know. we can, once we get up and running, look at lowering it again. but you get into a different kind of lending. these are personal loans rather than business loans. generally guaranteed by the business operator. we can look at that. that is something that we will look at once we get up and running. concerning that you have that threshold of $250,000 when, say, a small business in st. louis n

> -- by a security loan, average leverage is 63%, so normal real estate is levered 15 to 17 times ebitda, to put it in main street terms. that's well outside the range what you have stated by rule that you can do. my question again, is do i have to pass a law you can go lend into this space? or do you have the authority right now to say, you know what, there is a problem, we're going to take action. >> i think some of the problems in that space will be better served by fiscal policy. i think we can probably reach some of them as well, so the answer might be both >> okay. thank you. madam chair, i yield back. >> ms. weston, you are granted five minutes >> thank you, madam chairman thank you, chairman powell, for joining us today and all that you're doing in these difficult times. one of the most stabilizing things congress did was to extend unemployment benefits by extending it an extra $600 per week on top of the benefits that the state provides in virginia, or maximum weekly benefit is $378, so the extra money has been a huge relief to the over 822,000 virginians who have filed for unem

i don't view it as that cheap or an ebitda basis. that's not how these things are measured it's high quality. they are the ones that you go to for the grocery stores and the at home delivery for the restaurants. their business is bad there. it's manging up for it elsewhere. i think it's phenomenal. in terms of small cap value, yes, it has performed. i don't know if it will or not financials which make a part of it, i don't think are going to form for a bunch of reasons i mentioned. let's keep in mind that it's not going to be another 15-year period and you should have balanced portfolio growth will continue because of the trends those trends that have pushed small cap value are now different trends that's why i think they will continue to perform. value stocks are not cheap airlines are looking at bankruptcy how is that cheap because the stock prices are cut in half or three quarters >> a lot of those stocks have ripped off the bottom in the quarter. a month to date american is up 26 delta 12.5 and united 23 bring in mike mayo he's m

community looking at cash flow and also financial resources more broadly in terms of companies, pre-ebitda it's pretax cash flow t there are other metrics. probably the next one in line is something along asset based. that's something we're look at with the treasury. >> under the main street lending program, you reduce t the minimum loan threshold from one million to 250,000 and then by expanding the program to non-profits, would more than 50 employees. however many small businesses may not need 250,000 has the fed considered eliminating the minimum loan threshold all together >> we have not considered eliminating it yet we're just not rolling with loans. you get into a very different kind of lending when you're done lower. these are personal loans rather than business loans. they are guaranteed by the business operator. we could look at that. >> i mean, it's kind of concerning that you have the threshold of 250,000 when small business in st. louis needs 100,000 to survive through this pandemic until they get back on their feet any consideration give tennessee -- given to accommodate >> we

ebitda is a component of main street program. there will be industries and businesses in which that is a detriment and perhaps disqualifying for them. i particularly raise this in the hotel industry where it would be more advantageous for them to be able to rely upon their 2019 net earnings. i am interested in your thoughts in that regard, and i am also worried about the indication by treasury and the fed that we will operate under the cares oflosophy of the purpose cares, and the main street program under the spirit of cares, which is i guess a pretty uncertain term. i am looking and i think our businesses are looking for more certainty as to the nature of how this program is going to work. can you help alleviate this and this is' concerns, the concerns about it and any thoughts on ebitda? tda,powell: in terms of ebi we are looking at last year's. we do run appreciated and in some industries there are better ways to approach that, for example an asset based approach. that is something we are looking at. the facility -- the focus

the reason why main street doesn't work for commercial real estate is that ebitda limitation. >> thank you very much. mr. powell, the issue of commercial that we've talked about is on my radar and we'll continue to talk about this issue and pay attention to what you're saying to us about it. with that mr. cleaver, you're recognized for five minutes. >> thank you very much, madam chair. i'm sorry. >> yes. >> thank you very much, madam chair. secretary mnuchin, thank you for being here. chairman powell, thank you for being here again. i know that you've been asked by a number of members before me about the issue with black and brown business owners being left out of the pot that we have clearly intended to help during these down times. and so i'm frustrated like a lot of people not only in congress, but a lot of people around the country. what is your philosophy, mr. secretary, maybe not philosophy, but what do you have to say to -- why rural and minority businesses equally supported in the emergency program? what do you think happened? >> well, let me just first say, we need to all do a

buy side price was a sticking point here large investors did not want an enterprise value six times ebitdaeavily indebted grocer and that multiple was higher than where kroger is currently trading. they had to lower it and reports show that serbres was unhappy with the lower price and close to walking away again but they didn't, they first invested in albertsons 14 years ago and tried taking the company public in 2017. the deal was pulled. two years ago albertsons pursued a merger with rite aid which would have given albertsons access to the public markets but shareholders opposed that deal and it fell apart. this time around the ipo seems to be set with a listing at the nyse, the highest profile company to debut there since the floor was shut down. executives are still expected to ring the opening bell virtually just a few minutes time, guys. >> leslie, we will talk to the company later on this morning. i think on "squawk alley." leslie picker watching albertsons big deal going on today. nike is the other story regarding consumer spending, that big surprise miss as the wholesale model con

in caesars regional, revenue flat to up 2% year over year ebitda, the earnings are up 35% to 40% thoseoved by 1,000 basis points las vegas strip is not performing so well but they have just raised the limits in the hotel occupancy to 80%. and they're seeing bookings now pacing 30% above the same period last year for conventions for 2021 but these regional numbers are really sending -- these are cost that's came out of this business and may not return like buffet, low limit tables, the entertainment really incredible margin improvement that is leading to such stunning earnings numbers there, guys st. >> contessa brewer, thank you. >>> we've got lennar earnings out. diana olick has the numbers out. >> really nice beat for lennar $517.4 million that is $1.65 a share. revenue of $5.3 billion. now chairman stewart miller said that business rebounded significantly in may new orders were down 10% year over year. but deliveries ended the year flat ended the quarter flat year over year we resumed starts and land spend to match the improving market conditions and this rebound has continued into

. $1.8 billion in ebitda they are monetizing that program by essentially saying, okay, this is goingey expect that they will keep this open -- >> that was last year. what's -- what's the revenue -- >> what is it for -- >> what's the revenue this year? >> reporter: they did not give that they gave a briefing on that becky, if you look at airline bankruptcies, we've said this going all the way back to 2000 if you look at all of them, what is the holy grail when it comes to bankruptcy that is protected first and foremost before anything else? loyalty program because they are the most valuable asset in many ways that the airlines have, and what united is doing here, we'll see this likely with other airlines as well, is to say, okay, you know what, we will collateralize this this will be the mortgage behind this $5 billion loan we've got 100 million subscribers and you're bringing in more than $5 billion a year in sales, i think that they believe that this is a smart move and i think most people will look at it that way you'll see other airlines do something similar in the future. >> look