back to "squawk alley." >>> some breaking news on spotify today, our jon fortt is live in midtown as ing on as we speak. jon, good morning. >> carl, it looks like we're looking at a significant shift right now in spotify's strategic focus. moving toward a more programmed direction. with, with video in particular. so taking on youtube a little bit more. taking on radio. here's what they've said. the ceo daniel eck got on stage and brought on rishl king, who is in charge of platform and experience, talking about customized playlists for your time of kday. the idea like radio to keep you listening. they brought in some comedy central folks, saying there's going to be video here. video on some programs like nerdist news you'll view op spotify three hours before they appear anywhere else. that's significant. because we've seen youtube trying to bring on creators, video creators to put their programming there. spotify clearly trying to use their, their user base of more than 60 million users to draw not just music listening, but broader content. now the bigger business background here, i th

let's get back to carl quintanilla and jon fortt at the code conference, guys, over to you. >> thanksch, kayla. unbelievable. u.s. tech m&a is on pace to be the best year since 2000. that's lot going on in the space right now. >> and it's important to think about what the real forces are driving this. because i think it's a little bit different. i've been messaging back and forth with patrick moorehead over at moore insights and strategies, a chip industry guy who an analyst. and part of it is that system on a chip, which is increasingly important in networks, moenl era, it's been integrating some functions that individual chips from an avago and broadcom do and they're big players in the space. particularly in wireless and networking. it's two of them getting together. it's also interesting, there are a couple companies who are huge customers of both of them. apple more than 10% of revenue. for both broadcom and avago, right? and apple has got enormous leveraith company when they're in that position. samsung, a big customer, cisco, a big customer. probably also what this does is it p

guys, back to you. >> thanks so much, jon fortt, live new york city outside the spotify event.hrow up shares of pandora. pandora as you might expect is down a little bit, anyway. there it is, 2.5% or so. perhaps related to that news. >>> coming up, debating the airlines, southwest, american, delta among the worst performers today. how to play the space. >>> plus american pharoah's race for the triple crown is just one of the big sports stories happening. >>> plus last night's nba draft lottery. the latest in deflategate, much more, when we come back. the network that monitors her health. the secure cloud services that store her genetic data the servers and software on a mission to find the perfect match. and the mom who gets to hear her daughter's heart beat once again. we're helping organizations transform the way they work so they can transform the lives of the people they serve. automotright here.ion starts... with a control pad that can read your handwriting, a wide-screen multimedia center, and a head-up display for enhanced driver focus. all inside a redesigned cabin of u

. >>> let's send it out to jon fortt at the code conference with a look at what we can expect in "squawk >> hey, simon good morning. deals and tunes, we have got flip board ceo coming up rumors about a deal with twitter. try to figure out where his head is. spotify's ceo is going to join us for a rare interview and the ceo of vox, which just bought the parent company of re/code will be with us to talk about content. competition and where all that's headed. coming up on "squawk alley." [ male announcer ] legalzoom has helped start over 1 million businesses. if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom. don't just visit new york. visit tripadvisor new york. with millions of reviews and the best hotel prices... book your next trip at tripadvisor.com today. when you're not confident your company's data is secure the possibility of a breach can quickly become the only thing you think about. that's where at&t can help. we m

. >>> let's send it over to jon fortt inside the new york stock exchange with a look at more. >> we'rewhitman? >> apple wants local tv programming for its upcoming product. and we've got uber another week another $1 billion uber is looking for, this time as a credit facility and the ceo of intuit in an cnbc exclusive coming up on "squawk alley." >>> good morning, it's 8:00 at hp kwaerksheadquarters and 1:00 a.m. here at cnbc headquarters on wall street and "squawk alley" is live. ♪ ♪ ♪ >>> good friday morning, carl quintanilla is off today, joining me is roger lee partner at battery ventures and simon hobbs is here for the hour and with us as always is jon fortt. guys, good friday to all of you. let's kick it off with hp. shares are sharply higher today, after profit topped analysts' estimates. the company also saying it expects lower

jon fortt, quick reaction here? best numbers out of this record is gross margins that came in at 62.5%. cisco guided to 61 to 62. so that suggests some pricing strength. considering cisco came in high end of the range, top end of the guidance range on revenue 12.12 billion. came in at 12.1. last quarter they said service provider and emerging markets were not turning around but positioned for that should they turn around it will be interesting to see what they say this quarter, any closer to seeing a turn there because if so it could be positive for them. but you also want to hear routing and switching, new products really what's providing this boosting? cisco tends to be conservative in their guide. any areas that fell short here in the report that have them just beating on the top and the bottom? >> went to bring in dan for his early thoughts on this one as well. to jon's points and what you're looking for in the numbers, what do you see for cisco's prospects. >> jon spoke to it a bit. i i think it's a step in the

roger lee partner at battery ventures and simon hobbs is here for the hour and with us as always is jon fortt, good friday to all of you. let's kick it off with hp. shares are sharply higher today, after profit topped analysts' estimates. the company also saying it expects lower expenses when its pc and enterprise business is split into separate companies. that's not saying it's going to be cheap. earlier this morning. our david faber asked ceo meg whitman whether she regrets splitting the can and if she thinks other ceos should follow suit. here's her response. >> i say this is totally the right thing to do. you cannot believe, i can already feel the difference in the companies in terms of accountability, focus, cost, more focus on cost. you know, less of that insatiable desire to hire. it is really, you could almost see it change in the culture before your very eyes in a really positive way. so i'm excited about it. >> she's excited, roger, but it's time consuming, it's expensive. the $1.8 billion restructuring charge did spook investors a little bit. what's your take on the progress? >> so

times" and kayla tausche who will talk to the ceo of grub hub later on and joining us at post 9, jon fortt a year of carl's suits on "squawk alley" that was my big take-away from that montage. >> try the tie, it works. >> you work it better than i could. >> in apple, according to "the wall street journal." dropped plans to make a television more than a year ago. it was looking at new features such as ultrahd and cameras to let you make video calls, but ultimately executives did not think any of those features were compelling enough to enter the tv market. nick bilton you tweeted 100% correct and have additional reporting on the story. what do you know? >> i started reporting this in 2011 when i spoke to walter isaacson, the biographer for steve jobs. he told me that steve jobs wanted to make a television and he had come up with this idea that siri would be the way you would interact with it. he thought remote controls were hideous and i have to agree. they are pretty hideous. and he believed that the television experience was completely broken. and they have built dozens of proto types. i

. ♪ >>> welcome to "squawk alley" for a thursday morning, joining us jon fortt at post 9 and bao zoomas opened for trade. we want shopifiy. >> we start out with apple. morgan stanley raising their estimates for both the iphone and the apple watch. the firm expects 53 million iphones sold in the current quarter up from a previous estimate of 50 million raising estimates on the watch by 20% to 36 million sold in the first 12 months. meantime a respected analyst at kgi securities lowing his estimates on the watch saying the demand is slowing down. cutting his annual shipment estimates in half. shares of apple this morning up a little bit finally above 130 today to 131. but we had ubs a few days ago, raising, everybody believes the iphone is tracking better than the street is giving the company credit for. >> and the phone number, the phone sentiment is a lot easier to trust than the watch. i don't think you can trust anybody's positive or negative feeling about the watch right now for a couple of reasons. one, we don't know exactly what's going do happen with supply short, tim cook said

. >>> let's welcome jon fortt to the program. >> remember the apple television rum that are wouldn't on it has finally thrown in the towel. and we've got the ceo of grub hub live from chicago and the tinder co-founders we caught up with coming up on "squawk alley." d . >>> taking a look at the major indices rights now, the s&p 500 is flat. but beneath that you've got movers especially in retail. the best performer on the s&p 500 right now is tjx, as dom pointed out. tjx coming out with better results. the worst performer on the s&p 500 is urban outfitters which came out with disappointing results and guidance weakness in the an throw pollgythropology sales. >> we've lost $60 a barrel on crude as a result of some fairly bearish notes from goldman. >>> julia boorstin with a quick news flash. >> take-two stock sharing this morning after reporting earnings after the bell yesterday that topped estimates. driven by stronger digital sales, the company also issued guidance that was far stronger than wall street analysts had expected. now, revenues did fall short of expectations. stock also a

. ♪ ♪ ♪ ♪ >>> welcome to "squawk alley" for a tuesday, jon fortt out today, but kayla tausche sheer onthat's looking a little more interesting. dow is down almost 180 points. as the dollar has an eight-year high against the yen. euro has fallen below 109 for the first time in a month. the tech sector one of the biggest laggards this morning. down about 1.66%. leading the way for solar, hp

. >>> let's send it over to jon fortt with a look at what's next on "squawk alley." >> i think jane'sk alley" viewers, paypal ceo, is important because the company is getting ready to spin off of ebay. >>> also the morgan stanley note out on apple. it's bullish on the iphone and the watch in contrast to other information out there we'll dig in and an alibaba-backed ipo? didn't do so great this morning. but that hasn't stopped alibaba stock from going higher. all of that and more on "squawk alley." ♪ ♪ [ male announcer ] tora bora fallujah argonne khe sanh midway dak to normandy medina ridge the chosin reservoir these are places history will never forget but more important are the faces we will always remember. ♪ ♪ >>> good morning, it is 8:00 a.m. at paypal headquarters in california and it's 11:00 a.m. here at cnbc headquarters on wall street and "squawk alley" is live. ♪

. >> i have a question for you, jon fortt. chambers has been leading the company since 1995.then including the tech boom. the tech bust. i mean how different is cisco now as a company in its business than it was in 1995? >> oh, my goodness, dramatically different than in 1995. part of chambers' stump speech he likes to give at the events and elsewhere is how well the company has done at navigating what he calls market transitions. and there have been several. the routing and switching business that they have gotten into, now they're in the data center era. they have moved into this era of the data center reasonably well. they started to sell servers a few years back and they have gained a lot of share in the department. but their core business is still declining, it's not the -- the other businesses that they're building up don't have high enough margin and growth to make up for that. i think the big question is how far away is chambers really stepping when he's executive chairman? he's been there the entire time that chuck robbins has been from when robbins was practically a