josh lipton has more, josh >> kelly, another day, another potential warning sign from an apple supplier, and this time, it is samsung. the company saying in an earnings report that profitability for its display business weakened, due in part to decreased flexible demand flexible panels are the screens used for apple's iphone10, and a tough data point here in china, in q1, apple was displaced from the no. 4 position by local brands, according to new data, and apple basically trading flat today, though, down 10% from the recent high. they focused on downbeat news in

. >>> we're getting news on apple today, josh lipton is in san francisco. josh. >> reporter: carl, news breaking here that the european commission has now opened an in-depth investigation into apple's proposed acquisition of shazam, the commission saying it's concerned that the merger could reduce choice for users of music streaming services they say, carl, that apple would obtain access to commercially sensitive data about customers of its competitors you'll of course recall, carl, that apple made some news in december when it agreed to buy shazam, that music identification app, for an estimated $400 million at the time apple talked about how popular shazam was as an app for ios, talked about the number of customers it had, said that that shazam and apple music were this natural fit but again, the european commission now opening an investigation into that proposed acquisition. i've reached out to apple for comment and i'll bring one if i get it, guys back to you. >> we will watch that one closely. once again, the eu there, josh thank you very much, josh li

josh lipton joins us from chicago with more on that. tioned it's down more than 3% right now, negative for the year the latest bit of downbeat news here, note from morgan stanley's katy huberty, forecasting an in-line march quarter but lowering june quarter iphone unit estimates to 34 million that is down from nearly 41 million. remember the street is at 43 million. huberty cited poor checks with iphone suppliers and weaker than expected data from china important here, huberty does remain positive on apple, saying the story remains intact, provisions are approaching a trough and buy back remains a source of downside protection. no doubt it's been a tough week for apple. bulls on thursday, bank of america, merrill lynch and jp morgan warned their clients that e phone sales could come in below expectations after taiwan guidance citing weaker demand. apple's attempt to secure a second supplier for its high-end smart phone screens reducing its reliance on samsung has hit a snag, that lg is failing to make them, falling behind schedule. apple

record run, so much cloud in this report, investors don't even need to look for a silver lining josh lipton us from san francisco with more. josh >> john, jeff bezos couldn't help himself after amazon reported these results, crowing about the success of aws, saying his cloud business has a seven-year head start over rivals and has never slowed down aws generated 5.4 billion in revenue, a surge of 49%. operating profits jumped 57% to $1.4 billion bezos is competition here. check out microsoft ad revenue growth, office 365 commercial revenue growth 42% commercial cloud revenue up $6 billion with expanding gross margins of 57% a key advantage in this fight. his company has been selling to businesses for decades so, when customers move to the cloud it's a good bet they're going to move from office to office 365 rather than jump to a rival. then there is google analysts estimate it will generate as much as $2.5 billion in sales this year all three companies do boast big customers. so, aws has names like comcast, parent company of this network as well as mcdonald's and netflix. microsoft boasts n

josh lipton has more. >> googleey is a line for investors that refers the company's bread and butter, the companies it owns and operatean like search d youtube. revenue came in at a better than expected $22 billion. that growth is key, especially as t company continues to face competition in many of these areas. on the flip side, operating margins for core google did come down to 27%, due to higher expenses, a year ago, 31%. for nightly business report, i'm josh liplipton san francisco. >> one of alphabet's biggest generators is youtube. jul julia borstyn has details. >> reporter: ogle's utube is drawing privacy concerns. ads from 300 major companies, including amazon, netflix and nordstrom ran on youtube channels with offensive extremist content. when we find that ads mistakenly ran against content that doesn't comply with our policies, we remove those ads, we know that even when videos meet our advertiser friendly guidelines. not allideos will be appropriate for all brands. we're committed to working wh our advertisers and getting this right. it's not the first time youtube has stru

brad smith joins us from one mark with our josh lipton for more on this josh, take it away >> thank you brad, thank you for joining us >> thank you >> digging into the tech accord that kelly mentioned one part of the pledge i thought interesting, you say you won't help governments launch cyberattacks against innocent citizens how are you going to enforce that, brad >> it's a set of principles all 34 of the companies have come together, have said we will live up to, pledges us to strengthen defense to protect customers everywhere and says we won't help governments launch cyberattacks, as you said, against innocent citizens and enterprises. this is a world where we see governments do that, and we're taking a principled approach saying that's not something that we want to support >> and how far would you take that, though, brad let's say, you know, you come across a government that are using your technology to attack disdance, and now that you signed the pledge, does that mean microsoft promises to yank that contract and pull the product? >> i don't think we can fully control how everyone

for "nightly business report" i'm josh lipton in san francisco. >> now as strong as stocks have been, c smodities evenonger this year, with geopolitical tensions causing investors to put money into raw materials. is that momentum expected to continue? point could geopolitical head winsds become a problem? joining us is our friend chief market strategist. always good to see you, author. >> nice to see you, bill. >> those are the head winds. we also have the tail winds which appear to be the earnings, fundamentals that are still meeting theh expectations for the most part. what to you make what's going on lately? >> well, it's interesting. so commodity side bring up interesting point. think about the first quarter seeing the dollar weaken by about 10%, obviously ay beneficis going to be commodities, agree owe political concerns very much like we saw in syria, 8% in oil last week. there is a fewer disruption of supply, those commodity places move higher, than harbor of safety when you go into the precious metals. so seeing the bid over thlast couple of weeks. i think the dollar equation

i'm josh lipton.e did just bring you a few minutes ago the headlines that apple is planning to reportedly use its own chips in mac computers. the timeline here, perhaps as soon as 2020 in turn, replacing processors from intel intel in response to cnbc saying they don't comment on speculation about their customers. apple, in response to cnbc saying they declined to comment. apple reportedly provides intel about 5% of its annual revenue certainly this would be part of the broader trind we have seen in cupertino, designing more of their processors inhouse you can see the pressure intel is under from that headline. design chips inhouse, it also means you could get costs down potentially, keep the secrets closer to the vest, and it gives you that much more control over the hardware and software. we'll stick on the story, bring you more headlines as they come. back to you. >> thanks a lot, josh. josh lipton in san francisco >> retail stocks are under pressure, getting hit a bit worse than the broader market

josh lipton has more, josh >> kelly, another day, another potential warning sign from an apple supplier, and this time, it is samsung. the company saying in an earnings report that profitability for its display business weakened, due in part to decreased flexible demand flexible panels are the screens used for apple's iphone10, and a tough data point here in china, in q1, apple was displaced from the no. 4 position by local brands, according to new data, and apple basically trading flat today, though, down 10% from the recent high. they focused on downbeat news in the company's suppliers, not just samsung, but semi tim cook said in the past hard to draw broad conclusions based on a limited set of data points because the supply chain, he says, is that big and complex. there's another point that even if the 10 is softer than expected, the 8 line could be strong and give a lift to overall iphones, and apple, of course, reports next tuesday guys, back to you. >> josh, thank you very much looking forward to that. speaking of tech, gearing up for an afternoon of big earnings like microsoft, i

move ahead, but there was a deceleration of azure growth this quarter, perhaps due to seasonality josh lipton, cnbc business news, san francisco. >>> renault has confirmed its 2018 targets after reporting moderate growth in revenue for the first quarter. it was up a lower than expected 0.2% on the same time last year as the french auto group saw sales in key asian markets falter set backs in india, china and south korea offset gains in europe and russia. >>> daimler has seen first quarter earnings before interest and taxes dipped below expectations the figure came in at 3.3 billion euros as currency pressures weighed. but daimler did see sales boost profit margins at it's mercedes-benz luxury vehicles unit. >>> shares in eni are lower after the oil major posted a sharp rise in first quarter profits boosted by higher crude prices and output. the company also confirmed its guidance the chief executive confirmed the firm's goal of being cash neutral for the year at a brent price of $55 a barrel. >>> norway's sovereign fund reported negative first quarter returns on investments citing falling sto

josh lipton brings that to us. >> eps here 53 cents thap is sma that is smack in line what the revenueooking for. so the total value of products sold on the site, $23.6 billion. that was up 13%. let's get to the guidance for q2 between 50 and 52 cents. looking for revenue they were looking for $2.64 billion. analysts projected $2.69 billion. and they're calling for $2.30. street was at $11 billion. just digging in here kelly, looks like market place platforms delivered. stubhub drew revenue of $232 million. gmv up $1 billion. call starts at 5:00 p.m. eastern. >> thank you ebay shares are down nearly 6% right now. so investors' reaction is not too hot on this one. speaking of ebay, they famously spun out deidra. >> trying to reinvest investors the stock has not -- eps of 57 cents. that's higher than the 54 cents street was expecting revenue of $3.69 billion that is greater than the $3.6 billion that analysts were expecting. also want to talk about guidance lowering its gap eps to $1.76. however, raising its full year revenue guidance will raise it to a range of $15.2 billion. payment vo

josh lipton is live in san francisco with more details. y, josh. >> michelle, apple's home pod started off with a bang in the last week of january, captured 38% of the market in unit sales. that's versus 49% for amazon's echo family and 10% for the google home, according to slice intelligence but by late february, weekly sales slipped to just 4% of the category on average. all told, during homepod first week of sales, it took 10% of the mark, trailing the competition. market share, we know, that's one important metric but revenue is another between late january and april 1st, homepod controlled 19% of revenue in the category, and that lags amazon but does beat google gene munster of luke ventures says homepod is the best-sounding smart speaker out there, hands down, but he also ran the speaker through more than 780 queries to test its smarts it answered 52% correctly, underperformi underperforming alexa and cortana. still, apple is going to ultimately sell 7 million this year this certainly isn't the first time product tim cook has faced cr

from the highs in march, and concerns are growing about the company's long term prospects in china josh lipton has more on what to expect from san francisco. josh >> reporter: wilf, mainly in china, estimated 17% of total apple revenue, in the final quarter of 017, but the news out of the country has not been so inspiring lately in q1, they overtook apple to take fourth place in the market, according to the data, and it's an important metric, making money is another, and apple controls 70% of total smart phone profits in the country, according to strategy analytics, and still they are not the only one with down beat news. morgan stanley says after accelerating iphone share gains into the december quarter, shares then reversed in the march quarter. now, we know tim cook faces fundamental challenges in china, idc estimates the market over there is actually going to contract by 2% this year still, creative strategies argue that apple remains well-positioned long term in that country, given its strong brand name, he says, and he thinks new models in the fall, sharing many of the design features of

thank you. >>> let's bring in josh lipton for how tech is reacting to the trade troubles and how theyimpacted >> from the 1300 product categories listed there are many high-tech products like industrial robots, semiconductor machinery and consumer like plat panel television and certain kinds of cars, electric and gas-powered and leaving out other consumer favorites like mobile phones, the tech industry response not happy the itic, the trade association who remember -- remember include apple, amazon, microsoft call the tariffs counter productive they say they will raise costs for both tech companies and consumers. >> some uld be felt by consumers immediately agai thugprices on products, many of them would be felt through the cost structure of companies that are incorporating input and building things and employing people and finding the cost they phase to do all of those things are going up >> now the chinese released their own list of more than 100 u.s. products that will get new tariffs and there went many tech products on it but still they worry about further chinese retaliation aga

our josh lipton.ne company feeling the impact of saudi crown prince mohammed bin salman, amc entertainment will open saudi arabia's first movie theater in more than 35 years. >> joining us with more in a cnbc exclusive is ceo of amc entertainment, adam arron. good to see you. >> thank you kelly, i always save my news for your show. >> you better. >> it's great to have you with us tell us more about opening this first movie theater in saudi after so long. >> well, these are historic days for amc, historic draays for th country of saudi arabia. we've been working on this for six months i've been to saudi arabia twice. i had the honor of meeting with the crown prince at the palace to hear from him directly how important it is the modernizing and moderating of his country to reopen sin mass after a 35-year absence. we partnered with a public investment fund farming a joint venture and we're going to open a lot of movie theaters in saudi. our goal is to have about 50% of all theaters that will open and ser

now let's get to josh lipton he is on amd josh >> michelle, let's dig into the numbers here a bit besidesm and the top computing and graphics revenue segment, $1.12 billion, up 95% year-over-year up 23% sequentially. that's going to include desktop and notebook processors. it's also going to include graphics chips for pcs this is where cryptocurrency demand would show up that was about 532 million that was down 12% year-over-year, though up sequentially that division is going to include a game consul chips as well as chips for data center. as for the guide, michelle, that second quarter revenue guide of about $1.73 billion, that is stronger than what analysts had expected and they're also calling here for gross margins about 37%. analysts covering the name will be quick to point out that cryptocurrency noise has been a big driver for amd over the last few quarters we're going to listen to what ceo dr. lisa su is going to say. tomorrow dr. su will be on cnbc at 9:00 a.m. eastern, diving deeper into these results. so be sure and check into that one. michelle, back to you. >> you bet we will

. >> thanks very much josh lipton.y the way alabama traded lower off backs of first quarter earnings report since 2009 every first quarter since 2009 lower. this according to the spoke. how do you like ibm? >> i have liked it i don't think they get enough credit for what they are doing on blockchain. the issue her is revenue growth. the street wanted to see revenue growth constant currency taking out what the u.s. dollar added to it. zero revenue growth. a big company with a lot of different moving parts i love what they are doing with blockchain hyper ledger product they have interacts with public chains, different coins. i think that's a huge, huge opportunity for them. >> doesn't trade like a blockchain stock should trade, like take mean -- >> last year they may double, expected to have $80 billion in sales. it didn't move the needle, matter the most important thing cognitive solutions we all know what's in there, your buddy watson >> grew 6% year over year. >> this is one of their faster growing businesses, excitin

. >> josh lipton, thank you. >> i also note that we've been visiting with the other tech companies includingefense contractors so the saudi crown prince expected bhil he expected while he's there to visit the sunnyvale location i learned the visit is going to be happening today he's expected to see the satellites and cutting edge space technologies according to a senior lockheed martin official expected to see the key spo components that the saudis are buying right now saudis are putting a lot of money into defense contracts right now. including based on that arms deal that was struck last year by president trump about $28 billion in orders just for lockheed to be carried out over the next decade alone. so this, of course, comes after he visited with boeing last week and also signed an agreement to do a joint venture with boeing that will repair and update military aircraft in saudi as well the other thing to watch >> stocks getting a nice push here as europe's about to close. germany's going to close almost up 3%. let's get to seema mody back at hq >> that's right, carl. european stocks ral

. >> josh lipton out west, thank you. >>> shares of spotify is moving lower on their second day of trading. let's get to seema mody. >> shares of spotify fallen more than 6%. it was steadily throughout the day. spotify is still above its reference price of 132, close to sessions low and well below its peak near 169 yesterday. keep in mind spotify still has a sizable lead in subscriber number compares to many argue of its next big competitor. it is not a great start. spotify debut, the second day of trade, kelly >> i think it is a rip roaring success for something this novel on wall street >> you know it is changing in tune a little bit. >> very funny, we know the real test for these companies come within the first quarter or two when they put out the first report, yeah, they're not making a lot of money >> also, on that price of ratio, it is still much, much cheap than netflix what we said yesrday, wow, what a massive support it is of tech valuations but relative to netflix is low you said funny but your face did not display that emotions. >> i didn't mean it. >> i could sense that. >> but

back to you, tyler >> jim is hyperventilating >> josh lipton right now just says the -- right here, rightow. right in the -- just -- you have to follow josh because had they been watching him on twitter, they wouldn't have picked this >> we want to show you a chart blue apron is spiking up 36% short interest on this stock but mr. wonderful, you get the stock's closing price. if the stock holds on to this gain, that works against you >> very interesting point. >> that's right. at the end of the day -- >> who gets the bar on that. >> i was going to say, look, i think the beardstown ladies, understanding what they do, they have to be, oh my god, apple dropped to the 12th pick in the draft. is my math right but you know, katie, you know her well, she's on your show from time to time. she had cautious comments. she said buy the tip but you got to say to yourself, katie, now tony makes you wonder >> it didn't drop because of character issues it's not one of those kind of situations something happened in the dorm or anything like that. it dropped off handsets and the china retaliation, possible

josh lipton, explain this. what's going on here, josh >> reporter: kelly, taiwan semiconductor reported results, and investors, as you mentioned, not happy. the company offered a second quarter sales forecast that did did miss analysts' estimates on the call, executives talked about weakness from a, quote, very high end smart phone. they never did mention apple by name on the call specifically, but the team at morgan stanley pins that forecast miss in part on older cuts from the iphone10 processor. they don't account for 20% for the revenue, and apple is under pressure today as are its suppliers. check out names like skyworks, broadcom and serious lodging what's it mean for apple investors? bottom line, rbc says softer iphone10 data points should not be surprising at this point, in his opinion, in saying that muted iphone units are now well understood by the streets, still, telling me he is bullish on apple, coining a strong free cash flow, outside capital allocation and a bet that gross margins move higher from

here >> the top story, apple weighing on the dow today, the worst performer in the index >> cnbc's josh lipton looks behind what's behind the downward move, josh? >> moving lower on heavy volume, down 4% right now. stock negative for the year now. one cause of concern here is morgan stanley now predicting weaker iphone sales in the june quarter, lowering the estimates to 34 million from nearly 41 million. the reason, poor checks with iphone suppliers, and weaker than expected demand from china. they lowered june estimates to 39 million from nearly 44 million. despite the down beat, they would be a buyer on weakness arguing that the services story remains in tact, and that b buybacks are a source of downside protection. one reason analysts are feeling more cautious, for example, weak demand in the industry, but it's not just news from analysts, the journal out with a story today noting that apple's attempts to secure a second supplier for the high end smart phone screens reducing reliance on rival, samsung, hit a snag, that lg is struggling to make them and falling behind schedule. apple report

earnings, got that flash from alphabet 993 the eps, well ahead of expectations at 9 it 28, and josh liptons. what are you looking at? >> as you mentioned, alphabet reporting eps of 9.93, versus expectations of $9.28. revenue, 31.31 billion, the street at 30.3 billion, and looking through the segments, google properties, about 22 million, google networks, 4.6 billion, and google advertising revenues, 26.6 billion google other revenues, that's play, cloud, and now nest, 4.3 billion. other revenue bets -- other bets revenues clock in at 150 million. other bets operating loss around 571 million. total tack comes in at 6.3 billion. that means total tack as percentage of google's advertising revenue here is 24%. paid clicks on google properties, that is up a much better than expected 59%, and cost per click, that is down 19%. guys, back to you. >> josh, thank you very much for that headline beat on revenue and eps and underlying metrics like cost per click down more than hoped for, a good metric, and total tack up more than expected mike, your first reaction on these numbers, certainly, looks li