josh lipton is out in san francisco. he spoke with alphabet's ceo, so, josh, we kick off with you. >> melissa, digging into this report briefly here, a couple numbers stand out, one is revenue from google properties $18.4 billion, that's search, youtube. talking to aaron kessler of raymond james, obviously as he points out, that's the highest marg margin businesses for the company up 20 pk he also pointed out reasons for concern in the report. traffic acquisition costs, what the company is paying their partners for mobile traffic. obviously when that's rising, can pressure overall margins a couple other key lines here that stand out, other revenues remember, that includes cloud, play, hardware, that clocked in at $3.1 billion. and other bets revenues. everything from self-driving cars to nest smart thermostats operating loss of $772 million finally, other key metrics, paid clicks up 52%. costs per click down 23% actually worse than expected as you mentioned, i did have the chance to speak briefly with alphabet's cfo a cou

for "nightly business report", i'm josh lipton. >> here to discuss microsoft's later quarter and what may lie ahead is alex, the managing director and senior research analyst at piper jaffray. good to have you. to all appearances, this looks like a very good quarter. if i own microsoft, do i want to buy more here? >> yeah, i think it is. and look, i think this is the third really good quarte and it's important to realize that you know, sonya has really done a great job b turn turning the battleship and making thi leading business for the company and he's done it now really, while at the same time being able to expand margins, so what we're looking for on the earnings report is what kind of investments are they going to be making next year and how do we, how do they take advantage and trust their in this market because i think ta their scale and ability to emphasize with large customers, is something that set them apart from a lot of their competitors. >> is there anything in thei no might be viewed as a weakness? >> i think that for a long time, investors have wondered if the legacy b

for "nightly busin i'm josh lipton in san francisco. >>> let's turn to a.b. mendez for more on google's parent company's earnings and the beat there and sees ahead for the company. he's portfolio manager at frost investment advisers. he does own the stock. welcome back. it's nice to have you here. >> thanks, sue, good to be with you. >> you've held this stock for quite a long time and you intend to continue to do so, correct? >> correct. we bought google shares, first bought them a decade ago in june of 2007. few years after the 2004 ipo, the company is consistently outperformed the broader tech base since then and in our view is on the cutting edge of innovation especially around artificial intelligence and machine learning and also kind of coming into its own as an enterprise cloud vendor. >> are there any nits to pick in this report other than the headline number which overall the profits were down because of the big european fine? one thing i've seen some people point to is not the number of ad clicks they got, but the price per ad click which was apparen

. >>> welcome back for more on what the ceo just said about the quarter, let's get to josh lipton, whoback at headquarters. >> the key number by this report, commercial cloud organized the rate that hit $1.9 billion. that was up almost 60% take listen. >> i'm proud of the progress, particular ly the strength of or commercial cloud results all up was a tremendous year of customer momentum with cloud, ai and dingital transformation our technology world view of an intelligent cloud and edge is resognating with businesses everywhe everywhere a place for themselves, $20 billion in fiscal 2018 azure, 97% more than 40 countries regionally back to you. >> thank you very much, josh lipton in terms of the cloud leader, now, it's really pretty much on par or exceeded amazon web services, which is a big milestone for microsoft. >> so, what does this illustrate pete's been on this story. what it illustrates is how quickly they, being microsoft, were able to make this turn and not an insignificant turn for a company of their size and how slow ibm is to make a similar turn, so all this does is reenfo

i'm josh lipton, san francisco. >>> two other dow components out today. verizon and procter & gamble. the return of unlimited data helped verizon sales surge past estimates. meanwhile, cost cuts helped beat expectations at procter & gamble although sales were flat. investors liked the news out of both companies, in particular verizon was up more than 7%. >>> on wall street as a whole the nasdaq touched a record high before tech and a big reversal during the day. the dow managed another record close. the dow rose 89 points, nasdaq dropped 40 and the s&p 500 was off two. >> royal dutch sales said profits tripled while connick could he phillips were better than expected. earnings season so far has been fairly strong, bob pisani explains why the oil patch could, could be a threat to the stock rally. >> earning are humming along with gains of more than 10% now expected for the s&p 500 in the second quarter. there's one potential little fly in the oiptment out there, and that's big oil. exxon mobil, chevron and other big names will be reporting tomorrow. someth

josh lipton in san francisco listening to the intel call and suzanne lee back at headquaters on the starbucks call. we'll check in with everyone at the hour we'll start with amazon. the last of the faang stocks to report earnings. sinking after missing estimates by more than a buck. the stock is still up 36% this year so did amazon simply run too far too fast and do you buy the dip or is this the start of a bigger sell off? >> it would be disingenuous to say i saw this coming because i didn't across the board we were bullish on amazon and i remain so but the biggest story is not the epa miss, revenue beat, guidance for the next quarter, revenue is ahead of schedule. what disappointed me and disappointed the street though is operating margins came in about half of what the street is expecting. the story for the last couple of quarters has been margin improvement. this is clearly a couple of steps back that coupled with the fact that he had a big reversal on things that we'll talk about later now you're seth up for a google type situation where you see weakness in the name. >> they are an inves

our josh lipton has all those details for us josh >> some surprising comments here coming from president trump regarding apple. president trump telling "the wall street journal" that apple ceo tim cook has committed to building three big manufacturing plants here in the u.s president trump saying i spoke to mr. cook. he's promised plea three big plants, big, big, big. i said, you know, tim, numbers you start building your plants in this country i won't consider my administration an economic success. he called me and he said they are going forward. i did check in with apple. they are not at this time offering a comment, kelly, on these headlines. of course, the president has made the revival of a manufacturing in this country a key central policy certainly while he was on the campaign trail. criticized ale for assembling some of its products overseas, specifically in china. you'll recall back in may tim cook did tell our own jim cramer that the company is going to start this $1 billion fund to promote advanced manufacturing jobs here this would appear though to be separate from that it's

what's ahead for the next half our josh lipton is here at one market with that story josh >> john, evener that dip in mid june the tech sector was still best performer in the s&p 500. up 16% in the first half apple, facebook, alphabet and amazon all up double digits. burnstein says bulls do have history on their side. since 2003, tech outperformed in the second half. 11 out of 14 times and every time but one when the sector had outperformed in the first half of the year now the opposite side of that trade sam stoval said that teches valuation as well as expected earnings growth are basically in line with the market as for tech events in the back half, i know something you guys are going to cover very heavily, that apple event which tim cook takes the stage on unveil the new iphone apple stock already up 25% so far this year. helping lead that tech rally in the f.a.n.g. stocks. an apple bull estimates there will soon be more than 300 moilon active iphone that's are two years old. he's betting a the love the iphone fans are going to upgrade to that new device a super cycle that investors

josh lipton, how does that look?lly, intel reporting eps of 72% versus expectations of 68 cents. revenue 14.8 billion versus an expectation of 14.4 billion. just looking through the business units, klein computing group, up 12% to 8.2 billion data center group up 9% to 4.4 bill yonel internet of things, 720 million. memory up 58% to 874 million just looking through the outlook here, kelly, q3 they are looking for revenue of 15.7 billion, plus or minus 500 million. gross margins, 63% earnings per share about about 80 cents and for the full-year revenue they raised, they are looking for 61.3 billion, plus or mainus 500 million. earnings per share, 3 bucks, plus or minus 5% kelly, back for you. >> josh, thank you let's move straight to starbucks here those results also out our susan lee has that report. susan? >> let's quickly run through starbucks, same-store sales, the most important metric when it comes to restaurant-type operators, looking at the fourth straight miss here so global comps, only up 4%. analysts are pr

microsoft earnings are out let's get to josh lipton for those hours. >> eps of 98 cents, that's versusxpectation of 71 cents revenue clocking in at 24.7 billion. the street was at 24.27 billion. just looking through the release, kelly, commercial cloud, annual run rate exceeding $18.9 billion. looking through the segments, revenue and productivity and businesses processes including the office franchise, that increased 21% to 8.4 billion that's basically in line with what the street was looking for. revenue and intelligent cloud that increased 11% to 7.4 billion. within that segment they say azure revenue growth 97% finally revenue and more personal computing that decreased 2% to 8.8 billion. looks like windows revenue from pc-makers, that increased 1% and surface revenue decreasing at 2% kelly, back to you. >> wow josh, thank you. the microsoft shares up 1% to 2% charlie, azure is growing and doubling its revenue on the year you know, that's the kind of growth people are willing to pay up for i guess. >> yes let's talk about microsoft for a second because you and i have talked about it

numbers are starting to cross here let's get straight over to our josh lipton who has the full reportphabet reporting eps of 501 verse expectations of 49. revenue $26 billion versus expectations of 25.65 billion. google properties revenue, 18.4 billion. google tazzing revenues, 22.67 billion. other revenue i'm looking for as well, other revenue that includes the cloud, 3.1 billion, and in other bets revenue, 248 million and other bets operating loss, 772 million and finally paid clicks, kelly, up 52% and costs per click, it looks like down 23% kelly, back to you. >> wow, all right. >> thank you, josh. >> so the paid clicks guys up 52%. that's compared with a 35% estimate the cost per click was down 23% compared with a 15% declined estimate the other revenues he mentioned dlus the cloud roughly where the stream is looking, 1.3 billion what's interesting, and i don't know if they break it out and when microsoft reported last week they said, oh, by the way, we'll tell you our cloud number because it doubled the revenue from last year so certainly setting a high bar. >> and i do think peo

year, what can we expect as the tech giant reports earnings tomorrow after the bell let's get to josh liptonfrancisco with all the details. >> reporter: that's right, melissa, for q3, street going to look for eps, 1.57 on revenue, $44.9 billion. other key metrics investors are going to zero there on here, iphone units, average selling price and sales mix as well as gross margins. analysts say unless there's a real shocker in that report, investors are going to pay much closer attention to q4 guidance. what that possibly tells us about all those reports indicating that the new flagship phone will be delayed. not much concern right now about that as you point out, apple's already surged nearly 30% this year analysts don't think a shift in product by just a couple months is a serious worry but what if it does turn out to be longer? also, there will be a lot of thaengs attention on services expected to jump 18% year over yore to $7.1 billion apple has been launching a lot of original programming including "carpool karaoke," debuts august 8th. finally, greater china revenue, suffered five straigh

but first josh lipton has the cnbc market wrap. >> stocks in the day mixed. the dow lost 8 poipts.pped a fraction. the nasdaq gained two. a new survey by really website trulia finds more than half of american homeowners have regrets over their purchase. buying the wrong size home was the biggest regret among those polled. and on the world emow gee day apple kprating systems coming later this year. among the new images are a woman with a head scarf, bearded man and zombie. that's it for cnbc, first in business worldwide. keep the gam. son: hey mom, one more game? tech: with safelite, you get a text when we're on our way. you can see exactly when we'll arrive. mom: sure. bring it! tech: i'm micah with safelite. mom: thanks for coming, it's right over here. tech: giving you a few more minutes for what matters most. take care! family: bye! kids singing: safelite® repair, safelite® replace. if you could book a flight, then add a hotel, or car, or activity in one place and save, where would you go? ♪ expedia. when this guy got a flat tire in the middle of the night, so he got home safe.

. >>> we to want get to josh lipton with breaking news on hewlett packard's meg whitman, what's happeningat's right, kelly this news just crossing on hp ink that meg whitman is stepping off hp inc.'s board of directors. whitman served as chairman of hp since the separation of those two companies back in the fall of 2015 in a statement, meg whitman saying hp has now been a stand alone company from almost two years and i'm proud to have helped the company off to a great start. she, the board of directors also saying they have elected chip burg as independent board chairman he's currently president, ceo of levi strauss, that's a position he's held since september 2011 so far it's interesting, hp inc. is up about 30%. you've seen the gradual confidence build and the pc in printing and markets hpe up about 2% so far this year, kelly, back to you >> josh, weren't we this morning talking about the ricco story that she might take the uber job. is there anything to read into this news in that regard >> certainly with this news, the same stories she was likely not to accept that offer, kelly. >> ye

josh lipton joins us with that story. >> that's right.eading into this report, alphabet's google unit has been making moves to try to strengthen that cloud business it was just a week ago that it officially added google hire to the cloud service lineup that's a new product that companies can use to manage the job application process. it could lead to more adoption of g sweep which competes with microsoft's 365. google made the big decision last month the g-mail messages are no longer used to sell targeted ads. already the company's corporate customers didn't have to worry about that scamming. google wanted to make it clear if you're a business that relies on cloud service, then your information is private and secure no doubt google has a talent and tech to compete here but when i last spoke to google cloud chief dianne green i brought up one challenge that she doesn't have a sales force to match rivals like microsoft, green dismissing that concern >> we're also investing very heavily in our partners. i would pick the latter. it's just a m

josh lipton has the story for us from san francisco josh >> well, tyler, we don't know yet how many peopleousands as you mentioned microsoft, remember, employs 122,000 people in by bloomberg, the company's saying it will now divide commercial sales into two segments, one focussed on the biggest customers, one on small and medium clients sales force will target six industries, including retail, health, and manufacturing. and focus on selling software in four specific categories, including apps and ai. so why the change? so far the company's staying mum but telling cnbc microsoft is implementing changes to better serve our customers and partners but onereason could be to better align that sales force with that commercial cloud business, which is now on a more than $15 billion run rate. but there'll be plenty of competition as that sales force looks to land those cloud contracts, for example, when it comes to infrastructure as a service, a critical partof tha cloud strategy, they are amazon dominates more than 40% of that market no word yet on the timing of this announcement, it's fiscal year

himself defending the company against a much smaller rival during the conference call with analysts josh lipton has the details. josh >> that's right. he was asked about an old foe, amd, company on the move introducing products that take direct shots at intel's business it's a fight we know that's began on for a very long time. in this corner intel with a market cap of 1666 billion amd 13 billion in the last fiscal year intel did 59 billion in sales and amd 4 billion and intel dominates the market that it's in. for the market for pc prosors, 91% share according to idc and amd 9% but amd is getting a lot of attention recently introducing new chips for pcs and servers on the call, he didn't seem too worried. >> amd has raised up a bit with more recent products and you can see us responding. this is a traditional performance battle we're very accustomed to it, and you're comfortable in reacting and competing very aggressively. >> but maybe he should be a bit more concerned patrick morehead is former vp at amd. he says for certain workloads that use a lot of processors simultaneously, for example,

. >> david katz, thank you for that >> jawbone is going out of business josh lipton, the story that'se high flyer. >> jawbone sold fitness bands and secure jawbone suffers from a number of inflicted wounds and failure to adapt to a fast moving market and he hopes the competitive markets like fit bits. there is a role that the apple watch role here to wearables that jawbone sold. jaw bbone is not the only store there are also online retailers, one king lanes and fad.com and we are seeing a shake up of a funding boom that started to receive a ton of money that could not sustain business models >> ryan, back to you >> coming up the single best global stock ideas for your portfolio one bank's best of the best league that's coming you. maybe stock is not your thing we'll show you awesome ways to invest in baseball items including the babe ruth's former bat for one of them. we'll be back. yeah, well it was $30 before my fees, like the pizza-ordering fee and the dog-sitting fee... and the rummage through your closet fee. who is she, verizon? are those my heels? yeah! yeah, we're the same siz

josh lipton joins uses from san francisco with the new details josh >> that's right, kelly so the news is coming as a bit of a surprise but by 2022 microsoft hopes to bring bebond connectivity to 2 million people in rural america as you mentioned, there's 23 million people living in rural communities without reliable high speed internet service. microsoft wants to change that by improving access through what's called tv white spaces or unus channs used to liver broadband access they will have the system up and running and brad smith talked about the issue today. >> this is an issue near and dear to our hearts at microsoft, broadband connectivity for the nation we're not a telecommunications company, and we don't want to be one. we're not a broadcaster, and we don't want to be one either. but we are a technology company, and we're a technology company that for 42 years has focused not only on building better products but on creating bigger markets. >> microsoft tells cnbc its financial commitment is substantial but emphasizes it's not seeking to profit from this project. microsoft execu

are coming, not in the ceo office, the company is planning a major reorganization let's get to josh liptonsan francisco with the latest. joshua >> big changes could be coming to microsoft sales force reports indicating that thousands of people here could be losing their jobs now in a statement, microsoft is largely staying mum saying that mie vo colorado soft is better serving our customers and our partners but in a memo obtained by bloomberg companies and laying out exactly how they want to reorganize this sales force, commercial sales being divided now into two groups, one focussed on those bigger customers. one focussed on smaller to medium-sized clients, they're going to tackle and focus specific verticals, specific industries, retail, manufacturing, and health. and they're going to sell software four specific categories that'll include ai and apps why the big changes now? could be that the ceo wants to better align with the business he covers his name he says they have the right technology, infrastructures of service with azure, 365, but the point is, they now need a sales force that

strongest performer, the small cap russells apple naming first senior executive to manage in china josh liptonth details. >> apple has tapped a veteran engineer for that role china native isabell gemahe will head the operations. everything from apple pay to car play to home kit, this appointment comes at a critical time for apple revenue in greater china has dropped on a year over year basis for five straight quarters when i last spoke to ceo tim cook, he said the iphone 7 and 7 plus were performing well there, but that the company wasn't doing as well with previous generation iphones now currently by market share, apple is in fourth place behind others hope for the bulls of course is that apple will win over a lot of new fans in china when it launches that new iphone in the fall that's anticipated to boast and equip for a stronger ar experiences among other features beyond the product, apple is also dealing with a tougher chinese government, just last year, remember, regulate tlers suspended itunes movies and ibooks, all big issues that isabell will now take on when she assumes her new role i

josh lipton joins us on the set with the hottest start up trend in china. >> here's a number, 1$1.3 billionat's how much money two chinese bike sharing companies, mo bike and ofo raised in new funding. here's the concept fans download an app which lets you locate and unloekck a bike nearby mo bike charges 15 cents for 30 minutes. unlike traditional bike sharing programs, they don't have to park at fixed designated racks like citi bike with these you drop them off wherever the trip ends mobike's ceo davis wang talked about the surging growth his company is enjoying. >> we are transporting more people than taxis in china in some cities -- we are transporting more people than subway which means mobike is becoming one of the major transportation platforms in most of the cities we operate >> now, it was noted that monthly active users in this market were growing at 100% month over month still mobike and ofo support a combined 50 million rides each day. they operate in more than 100 cities they have 100 million registered users. they control fleets of 6 million bikes each mo domingu osho bike clo