melissa: $1.14 earnings per share on microsoft. connell: gerri willis joins us from the new york stock exchange. revenues pretty good. go through the figures for us. reporter: absolutely. a double beat for microsoft of the earnings at $1.14 a share, ahead of estimate of a dollar. nice beat. revenue 34.6 billion. the estimate was 29.84 billion. so that is a handy beat, top and bottom line for microsoft. most of this as you might suspect from the azure business which is the cloud business. this is something microsoft has been growing. super popular operating on the cloud. microsoft taking advantage of that. the stock already up 35% year-over-year. 23.5% year-to-date. gaining another 2% tonight as the numbers come in. back to you. connell: gerri, thanks. jonathan, john are with us. melissa will chime in. melissa: she mentioned it. intelligent cloud operating income is 3.21 billion and third quarter net, 8.81 billion. connell: the overall revenue from the cloud business on the intelligent cloud looks like it is better than expected guy

in the last week or so, i continually added to microsoft now microsoft is basically a trillion dollar market cap motorola solutions, disney, twitter. i have been adding all along you look as your exposure and say i walked into the smh somewhere around 95 and i will pair out at 118. that's the process and reasoning behind technology though, clearly i have a significant overweight when i look at everything that i have i think everyone on the desk would agree, fundamentally there are reasons why you want to stay with it. the last thing i will say is when i look at the smh, i want want to endure the amount of volatility that potentially some of the chip names present. >> why aren't their more xilinx to happen? stocks had these -- >> if you take a look at the numbers, add in facebook or microsoft, they're cutting back on cap x still high levels but still cutting back that will hit the chip stocks. that's part of the reason they're selling off today. you also have massive d rand inventories. the chips and building of inventories is not a one quarter there but much more of a two-year thing.

paul, axios has a piece out about microsoft, arguing that they have somehow managed to avoid the worsttech backlash by taking what they call a methodical approach to consumer data and a.i. and privacy. they report tonight. i wonder how nadella has handled all this >> yeah. i'm not sure i would be kind of patting myself on the back as much as that, if i were them they have a slightly different kind of marketplace at some level. i mean they're much more of an enterprise company, much more working with company data where their policies are associated with that data, and to compare themselves to organizations like a facebook or a twitter that others that are the vast majority of what they deal with are consumer data and consumer interactions protected by different aspects of privacy and also different aspects of human opinion. i think it's a little bit of apples and oranges from that perspective but at the same time i think nadella and the team at microsoft are very professional managers who have done very high quality work with that company and they brought it back from a pretty -- state

let's get insight into facebook, microsoft.e are joined by a founder and notablyformer analyst, bearish on facebook that is global president of this group. you.i will start with your business is about getting the buy side estimates. is this living up to the buy side estimate? lee: microsoft numbers are good. in aboveously came that. the street was lower than that. microsoft numbers, well. they are writing that enterprise that enterprise market super cycle. there are other companies much smaller than them that we like as well. if you have to allocate money to a large-cap technology stock now, do you want to deal with the issues that facebook is up against now with illegal stuff? do you want to deal with other things? when microsoft sits that the center of a great economic story. heard thishave argument that microsoft is more diversified than some of the more cloud companies. they are doing a lot of business work. they still have that consumer side. leigh: it depends on the beta you want to take. if you want to be super exposed,

let's start with microsoft big ownership on the desk. pete, weiss, brenda, doc, you have calls pete, you first. >> i think we've talked about this time and time again but the growth that they've had has been spectacular in terms of the cloud but there's other pieces to the puzzle when you're talking about microsoft as well. they have strength in gaming you break them down, scott, the key is going to be this, i think. how are they doing right now because i look at them every single quarter as a comparison against aws. i want to see how they are competing in the cloud space, are they still taking some market share and i think, based upon some of what i've seen already, i would say they're starting to take a little bit more and a little bit more if that's the case, microsoft still has room to the upside and i think last week i said i think it's $140 stock before the end of the year. i still think so >> steve >> yeah, so, i've sold most of my calls on it, which were trade. i've got some more to go, which i'll get rid of today because they're

amazon following microsoft and facebook. investors clearly bullish on big tech. >>> now look at the overall market. the dow is heading lower, but the dow has been hurt by 3m which turned in a very negative report this morning. 3m is costing the dow 119 points so without 3m, the dow would be up. look at that nasdaq, up one-third of 1% again. that's the influence of booming big tech. one last one for you, and it's tesla. it's losing money and demand for its cars is down. the stock is heading south. yes, it is, down four bucks, $254. what is elon musk talking about? a silent leaf blower. we can all get behind that. >>> joe biden is running. we've got the video and we've got the presidential response. "varney & company" is about to begin. >>> i'm announcing my candidacy for president of the united states. folks, america's an idea, an idea that's stronger than any army, bigger than any ocean, more powerful than any dictator or tyrant. it gives hope to the most desperate people on earth. it guarantees that everyone is treated with

away from, microsoft, google, not facebook.ood seeing you. thank you very much. >>> vans of disney's "avengers: endgame," they love the movie so much, they are clamoring to see it so badly, ticket buying on ebay, right now, tickets are going for thousands of dollars right now. details how this could smash box office records and supersize disney's bottom line. that's next. ♪ delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. ni'm workin♪ to keep the fire going for another 150 years. for beauty that begins with nature. ♪ to make connections of a different kind. at adp we're designing a better way to work, so you can achieve what you're working for. can we talk? we used to play so beautifully together. now we can barely play anything... even cards with the girls. if you have bent fingers, and can't lay your hand flat, talk to your doctor. it may be dupuytren's contracture. your hand is talking. isn't it time you listened? there are nonsurgical options. t

to josh lipton on microsoft.at we expect when microsoft reports eps of $1 on revenue of $29.8 billion representing gains of 5% and 11%. keybank's brent braceland thinks the cloud business will jump 43% to $9.7 billion pushing the cloud mix to a record 33% mix of revenue. he sees azure growing. last quarter from windows devicemakers did fall 5% >> phil lebeau watching tesla. what do we expect here >> tesla is expected to report a loss for the first quarter but the three things that investors will be focused on, first of all, what was the cash burn in the first quarter. where does liquidity stand will tay talk about potentially raising capital? production guidance, does that get altered and the third thing, the most important thing, what the demand for the model 3 you can bet there will be plenty of questions about that during the conference call at 5:30. >> phil, thank you kate rogers is watching chipolte >> analysts are projecting the company to report eps of $3.01 on revenues of $1.26 billion same-store sales ex

government buys a lot of microsoft equipment, they should call in microsoft executives tell them, you helping chinese military and equipment used for censorship, this is unacceptable. lou: national left wing media, is basically bereft of interest in this subject, they should be covering it. so should business press, your sense about why there is not more of an alarm sounded in this country, is this collaboration as -- as this collaboration takes place. >> strange that mainstream media does not see the threat to china poses, the threat is dire, it growing. i think they are too busy attacking president trump and dowdownplaying real threats of country. lou: too busy chases witch hundredwitch-hunthoax. >> you are right. they are not focusing on the real threats but i am sure president trump will. lou: to chinese companies, huawei, zte, they insinuate themselves to 5 g systems and networks throughout europe. despite warnings froms united states, zte is distributing selling equipment in venezuela, other south american countries for the very specific purpose of surveillance of citizenry. thi

we will continue to watch microsoft headlines. had to break, we are monitoring the facebook investor calls. here is what mark zuckerberg had to say. >> it does not feel right for a private company to make such important policy decisions fire selves. if the rules for the internet were being written from scratch today, i don't think people would want private companies to be making so many decisions about speech, elections, and data privacy without a more robust product process. ♪ emily: this is "bloomberg technology." i'm emily chang in san francisco. despite a slow start, 2019 is shaping up to be a banner year for i.p.o.'s. several tech unicorns including pintrest, zoom, and lyft have already hit the public with shares soaring in their public debuts. and uber and slack is next up to bat. uber is expected to begin trading publically next month, while slack could make its s-1 prospectus available as soon as this week. joining us to discuss from new york we have sarah and ellen. the last time you were on, i believe we talked about inv

. >> on the earnings front, let's start with a major milestone for microsoft. we could just look at what's happening here i think we can talk about this until 7:00 tech giants market cap is now over $1 trillion it's going to trade at nigh highs today. closed yesterday at 125. it indicated up at 130 that's an all-time high. there's 960 billion was the market cap it's over a trillion a revenue in earnings beat sales jumped 14% last quarter. 73%. cloud revenue up 41% it's now one-third of what microsoft does now base revenue. since the new gentleman came in in 2014, stock is up i think 350% it's up 2.5 times or something when you think about old tech and the way you try to reinvent yourself and, you know, balmer, i guess, sort of kept it going long enough for a bridge or however you want to look at it, but it's got to be the envy of an ibm or any -- i mean, ibm predates microsoft by a wide margin, but you think of microsoft as old tech. >> it's been the most market cap for the most of the year to apple. it could sit again, but, i mean, microsoft years ago we thoug

what do you do to microsoft? i'm holding microsoft. there are others -- xpo logistics. the stock has been great up 25% since lows do i hold on in order to hold oi have to see europe improving, and i don't see it improving right now and to see europe improving you need to see a china deal we don't see that right now either in terms of this quarter. >> marg rets, s&p is a little more than 1% away from new record highs is this the week that sets it to get there and beyond >> absolutely. and i think the more important question is whether the recent rally in the cyclical areas of the market will see better earnings growth because that has been the area of the market that's seen the most earnings revisions to the down side that are most tied to global growth areas like energy which we're seeing positive indications there today. materials and industrials. if those cyclical markets can improve, that would be another leg higher >> doc, unless it continues to be a faang world and we're living in it >> those are the stocks on fire. this week keeps them going or do you get a rotati

in its latest earnings report microsoft saidre azure 73%. i'ves of web bush says that was big number for him showing that microsoft's cloud story is really still in the ear innings of playing out and it was better than what many on the street were looki for and microsoft's commercial cloud business grew more than 40% to $9.6 billion. for nightly business report, i'm josh lipton, san francisco. >> tre's facebohich reported a rise in revenue thanks to growth in its instagram platform and an increase in ad spending. the company, though, also announced a multibillion legal expenseelated to a privacy investigation being conducted by the federal trade commission. the stocks rose in initial after-hours trading and julia boorstin has mor on facebook's quarter. >> a big headline out of cebook that had nothing do with its user growth and advertising, $3 billion. that's the size o legal expense facebook took related to the ongoing federal trade commission inquiry into facebook's data practices, estimatinghated compa company take a loss between $3 and $

is profiting from it apple is as well and the microsoft share already because of expectations it's one of the winners this year so far twenty three percent up and twenty nine thousand. exciting ending see since i've been trying to thank you. well u.s. aircraft make boeing quarterly profits for steeply as it grapples with a seven three seven max crisis the plane was grounded around the world after the models were involved in two fatal crashes within a six month span and fixing the fallout is coming at a billion dollar price following has also now abandoned its financial forecast for twenty nine thousand. the boeing seven three seven mox was supposed to bring the company into the future but now the model which had initially sold strongly has become its biggest liability in the first quarter alone the seven three seven max generated extra costs of a billion dollars and that's just the beginning because the seven three seven aircraft a currently grounded world wide boeing will face massive compensation payments to its customers the airlines there are also a power i should lawsuits mainly f

, apple, alphabet, amazon, that's see where we stand right now microsoft up 4% to a new all-time highcrossing $1 trillion in market cap amazon jumped around 2% off its report awaiting alphabet earnings on monday and apple tuesday the options markets applying roughly a 4% mover in either direction for the stocks dan has a way to play one into the results. let's get in the money you're looking at apple. >> i mean, i think it is really important, the names, obviously, because they're nearly $4 trillion in market cap i think it is a positive thing, that microsoft was able to put up the numbers they did, react the way it did amazon, given the guidance they gave, acting the way it did, pretty decent, too next week, as you think about apple, i think it is a special situation. we started this year off, january 2nd, with this negative pre-announcement from apple. we have not seen an announcement like that in more than ten years. the stock has literally gone up 45% and nearly a perfect 45 degree angle since that. up 30% on the year i think some of the stuff that we heard out of texas instrument

david: you went to ibm, then went on to microsoft.re is a fair amount of creative destruction involved in those companies, including when you were there. what did you observe and take away from those experiences? kevin: the technology industry has this unique property. it goes waves of innovation hit the market, and the new thing disrupts the old thing, but yet it builds on top of the old thing. it's sort of reinforces the view that if you are not constantly reimagining what you are doing, consumer behavior, technology, changes in the world, a dynamic economy, a dynamic geopolitical situation can leave you behind, but it also reinforces, in the process of reimagining the future, you have to know what grounds you to the past. how do you have the wisdom of what to honor and preserve from the past and the courage to boldly reimagine the future? i believe it is that balance that is the most important thing. david: you worked your way up to in microsoft a senior position. at one point, steve ballmer brought you into a process with howard s

lou: microsoft. we have microsoft, microsoft has been working on artificial intelligence technology with china. microsoft research asia coauthored 3 studies with chinese university of defense technology. and google is opened an artificial intelligence lab in beijing in 2017. what is going on here? joining us to explore that question. fred fleitz. president of center for security policy, good to see you, fred, with everything that google, all stunts actuals -- pulled with beijing. microsoft this sounds like a very sinister and deeply troubling. >> it is troubling. this is another example of a u.s. company putting their bottom line ahead of u.s. national security. there has to be consequence, microsoft sells billionings bils of technology equipment to u.s. government, easy to say we'll cut you off, i think congress has to get involved. >> what should the administration do? >> the u.s. government buys a lot of microsoft equipment, they should call in microsoft executives tell them, you are helping chine

>> this piece is that there was this internal uproar over questions of sexual harassment at microsoft and actually allegations of pervasive sexism. it started with a woman who was an employee of microsoft, been in the same position for six years and felt that she was prevented from actually having access to other opportunities at the company because of her gender and this -- she emailed this out to a group of people and it went on -- it was very serious of -- brought on people that the woman felt the company had not adequately responded to. >> this is a sign of the times i will say and critically important not only for microsoft to get to the bottom of but for other companies to watch. we happen to have had microsoft's head of human resources at work event earlier this week talking about some of these -- for what the culture is doing right now. blauz some of the things coming up in this email chain or old. can they show with some degree of confidence the employee base that they're ready to actually address this stuff >> microsoft's response is really interesting to look at here. the f

on wednesday we will hear from facebook and microsoft. every facebook and microsoft.acebook earnings report becomes an assessment of whether users are abandoning mark zuckerberg's company in the wake of the recent scandals. so far it hasn't been the case. quite the opposite actually. analysts predict despite everything it will be another strong quarter of user growth and increased revenue mostly thanks to continued success of instagram. under its chief executive, microsoft is enjoying a resurgence because of the phenomenally successful cloud computing business, second only to amazon. one analyst predicted microsoft might report the cloud computing revenues are up 70% from this time last year. then on thursday it isjeff bezos‘s amusan. wall street a nalysts thursday it isjeff bezos‘s amusan. wall street analysts expect the company to bring in $60 billion of revenue from the quarter up 17% on this time last year —— amazon. however is on‘s own guidance suggests it won't be as much as that. we will see. dave lee reporting. let's turn attention to trade talks, not between

meantime, pete, let's talk microsoft. i know you're in this name >> i think it was plenty of upside i think it was last week or two weeks ago, i'm talking by the end of the year and look at the growth in revenue, and look at the growth you've got in gaming. this is a company that just continues to pump out exactly what the market needs especially given the run that it's had. microsoft has been in this almost straight-up move it feels like and it's been one of the most impressive. how much cash they've got, minimal debt and they've made acquisition acquisitions and this is slowly eating away at the market share from aws. >> there say decent read for enterprise and if people want to look for clues on the economy, the fact that they're continuing to see the operating leverage and pete talked about azure. exciting >> we want to go to phil lebeau. tesla's stock down 2% and just got the numbers. phil, give us thehighlights. >> it's a bad number if you're looking at the top and bottom line for tesla in the fourth quarter, a loss

to work withu want amazon or microsoft?is one of the biggest things we are seeing right now, and all of these legacy companies, this is really the time for microsoft to shine, before -- because the growth rate was from the likes of uber, lyft, and those companies would typically start off with amazon, but for amazon, it has been working with these legacy enterprises for decades, and this is where they want microsoft's help, to become like an amazon, or they want to compete with those entities. uply: microsoft shares are 33% from a low in december, along with some of the rest in big tech, but it is not far off from that $1 trillion market cap. what are you looking out for this year? anurag: the single biggest point that we need to focus on right now is whether there is any change in corporate spending. that really can put a dent in this entire tech rally, and so far, we are not seeing it. we are seeing broad-based growth from almost every enterprise software company that we have seen or any i.t. services company we have seen

facebook and microsoft. okay, facebook's up a fraction now. microsoft down a fraction.se stocks. maybe that means they're looking at a blowout profit report this afternoon. i'm not sure about that. i'm going to be watching. we're going to break it down for you tomorrow morning, and watch fox business this afternoon. we'll cover it. >>> two dow components have already reported, boeing. it's going to take a billion dollar hit on the grounding of the max jets. when you know the number, that's a good thing. maybe that's partly why the stock is up this morning. and the hit to its cash flow is not as bad as expected. and look at caterpillar, down despite reporting higher profits. it says it might be losing market share in china. that's the problem. down $3 there on caterpillar. >>> speaker pelosi, minority leader chuck schumer getting ready to talk infrastructure with the president next week. my opinion, pelosi will push for a gas tax of some kind, and i don't think president trump will accept it. will this be another go-nowhere meeting? like the border meeting where nancy of

david: you left microsoft to become a ceo for the first time.de you make that decision and what was it like to become a ceo? until you've been a ceo, you've not been a ceo. kevin: i am very grateful for the journey i had at microsoft and the experience bill and steve enabled me to have. when i joined microsoft in the early days, we were a small company, just trying to bring technology into the world in a way we felt was meaningful and could change the world. we achieved that. at a certain point in my career, i always wondered, this has been a great journey at dylan steve's company. what would it be like at kevin's company? when i received outreach foreign opportunity in silicon valley to lead juniper networks, and certainly the founder of juniper networks was there in the prior ceo, wonderful people. here was a small company that also had a vision of changing the world by bringing internet connectivity to the masses. it was an opportunity for me at a time in my life where i felt like it -- if i'm ever going to do this, now is the time. i look ba

azure takes microsoft. i will sell microsoft at $132. liz: wait, wait. multiple brokerages woke up this morning before the open and hiked their price target. you already have a sell level? what about buy level? >> my target price has been $132 coming in. i intend to sell when it gets there. it almost got there today. didn't quite get there. then i'm probably going to 142 on my balance. i still like the name. however, the strength in the business cloud is going to lead to amazon earnings tonight when we hear about aws. amazon will be your next $1 trillion company again. my target price there is $2100 but it's about to be probably somewhere between $2300 and $2700. my technicals on this are so wild that it's hard for me to narrow it down until i see the numbers. liz: phil, we are looking at amazon at the moment which is moving higher by about two-thirds of a percent. he could be right. there's a huge company that's doing big business. >> could be right? what do you mean, could? yes, of course. he's right about amazon as well. listen, amazon has changed the

microsoft's market cap with this move now topping $1 trillion microsoft up 4% to $130 a share and a $1 trillion market cap now to the bad , kind of. some in the government may view as bad behavior. let's get right now to elizabeth schultzy to break down facebook's big quarter and maybe just a small worry elizabeth. >> good morning. investors are shrugging off the bad, these locally woes that facebook is face, and instead looking to an overall strong earnings report. facebook reported 15.1 billion in sales in the first quarter. that is 26% growth year-on-year, and user growth was in line with expectations too facebook saying it's going to satisfy $3 billion for an expected charge from the ftc this is related to data privacy issues, and it said that charge could be as high as $5 billion it's investigating facebook in the wake of the take a listen. >> part of building trust will be deferring to a public process on how to make these trade-offs. i understand that any regulation may hurt our business, but i think it's necessary eenl that regulation will help establish trust. >> now, so far i

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>> first of all, microsoft is a company that i have owned since '6 $65. they re-created themselves, diversified and given the enterprise customer base exactly the things josh is talking about to grow their business they are so relevant to any company's survival looking forward into the future. if you think about it, they've done all of the things -- they've done all of the things ibm hasn't done correctly. so nobody's knocking the companies. >> but are they worth the val sfwhags. >> let me answer your question if you're a fortune 500 company, you have i.t. workers. get what those i.t. workers are certified on they're certified on microsoft so when the decision comes down with what they're going to do with the cloud, of course they're going to lean towards what they already are certified to use that was always microsoft's trojan horse they have these people certified on their services in the boardroom. literally the cio of every major fortune 500 company and companies around the world that is why their cloud has been so relentlessly competitive in corporat

let's go on to microsoft. azure, the software-maker's inud unit, was up some 73% revenue, blowing away every estimate on the street. strong consumer demand. the prophet was boosted, including -- the profit was b oosted, including by deals with new clients, which bodes well for microsoft. let's take a look at tesla, which has seen stocks fluctuate after hours. it was up earlier. now it is slightly down. that has a lot to do with comments on the call by ceo elon musk. return thed to company to profitability, but there's a big dent in that from the actual numbers. they were expected to be ugly. $2.90 perd loss of share, twice the average loss that analysts had expected of $1.30. it has raised the demand question again. musk made a declaration that tesla has entered an era of sustainable profits. he said that earlier in the year. it was per map -- perhaps premature. he is reiterating that vow, but there are a lot of questions about demand for tesla going forward. paul: elon musk says all sorts of things, doesn't h

look at microsoft.ut cloud stories in tech where growth is still in the early innings. we continue thinking these stocks get re-rated higher. alix: is that why the market totally ignored the $5 billion potential fine? dan: that is more potential background noise. investors are focused right now on where is the growth. if you are not chasing growth, you might be doing your resume later this year. david: is the big story here actually growth in the cloud? it is not as flashy as facebook. it is completely disruptive, taking all of those locally stored pieces of data and centralizing it. it is one of those things that is driving a secular trend, along with things like payment processors and internet of things. tech is probably the most disruptive industry, and doesn't need to trade at an astronomical premium to the rest of the market, but right now it is not that much higher, so that is a great area to focus on. alix: dan ives of wedbush securities, great to see you. samana of wells fargo will be sticking w

michael, amazing when you look what is happening with microsoft.en apple was cool and microsoft was a dinosaur. and yet it has come storming back. what is going on here? >> it is an example of the transformative of power moving to the cloud and also having a terrific ceo like nadella. when ballmer was there, no offense, mr. ballmer, that company was stuck in neutral, mired in legacy business with pcs. nadella, five years as ceo totally transformed the company. cloud sales are up 41%. neil: is that what led to the turnaround? i understand that people, forget that microsoft is still responsible, software standard for eight out of 10 pcs out there. >> that's true. neil: and you know, from spreadsheets to word documents the like, i get that. but are you saying its future what it harnessed on the cloud is enough to propel and justify this runup? >> well it's a big factor. the margins are insane when you move to the cloud. first of all they have cloud hosting. neil: right, right. >> for clients. those -- neil: they make a lot of money off that. almost li

microsoft the real stand-up today. kelly, back to you. >> one of the greatest comeback stories of all time. dom, thanks. welcome to "the exchange," i'm kelly evans. >>> some key economic data was out today. durable goods orders climbed nearly 3% in march, handily beating street estimates weekly jobless claims jumped, but it was a holiday week. and thanks in part to big beats by facebook and comcast over the past 24 hours, earnings overall are no longer expected to shrink this quarter, according to refinitive bob pisani joins me now with what that means for the market. >> it's good news, kelly the earnings recession we were all fearing in december is not happening, despite misses from 3m and u.p.s strong beats today from facebook, from microsoft, and cnbc's parent, comcast, were the key to raising s&p 500 earnings estimates from dow 2.5% two weeks ago to essentially flat today. we've only got 40% reporting, but the trend is going in the right direction. but comments in the last 24 hours reminding investors, perhaps chin

apple 960, microsoft around 940.hey're both headed there. >> you look at this as a great turnaround story is turnaround the right word i mean from -- i'm curious how the desk views this. it's not like the company was doing bad. the stock was so stuck in the mud for so long, they were so tied to one particular part of the business and through nadella and the leadership of him and his executive team and being now in the right place, is that a turnaround >> i think it's a typical face of fresh eyes. new founder, fresh eyes saying what can we do here? we will take microsoft, their products, and continue to upgrade the product outlook and we can put it on a subscription base rather than just selling a license for it so you've got to keep going. we can take other things that they do like the cloud was seen to be an easy one and expand there. the cloud i more worry about because it's a commodity of business and you see real pricing. but they keep adding products, they keep adding functionality, so you have to go after it to

is it buy or sell facebook and microsoft?ut tesla joe terranova. >> mm, not so hot. >> we'll see paul meeks is going to join us just ahead with his take stay tuned to "squawk box" right stay tuned to "squawk box" right here on cnbc empower yourself with the free tools and resources on investor.gov. before you invest, investor.gov. on investor.gov. plants capture co2. what if other kinds of plants captured it too? if these industrial plants had technology that captured carbon like trees we could help lower emissions. carbon capture is important technology - and experts agree. that's why we're working on ways to improve it. so plants... can be a little more... like plants. ♪ >> we're on air. >> well, maybe craig heard welcome back to -- i said craig, you're my favorite actually, bert no, no, brian. mark no -- >> there's so many favorites. >> so many, so little time anyway, there are the futures, down 2.39. the nasdaq up 11 1/2 and the s&p up a point so far this morning being buffeted, so to speak, by boeing and caterpillar boei

even small divisions of microsoft like the surface line of devices, which now makes microsoft the fifthiggest pc maker in the u.s., even that did well. everything increased. brad: we could have three $1 trillion tech companies before long. sarah ponczek, nico grant, thank you. we will speak with intel ceo bob swan on friday. coming up, amazon is expanding cloud business in asia. how it is competing with alibaba amid trade tensions between china and the u.s. next. this is bloomberg. ♪ brad: as we discussed earlier, revenue from amazon web services jumped 41% in the first quarter. meanwhile, aws is pushing deeper into the asian market. earlier this week, amazon's thed services are announced new regional infrastructure center in hong kong as they grow business in china. the aws director of greater china alex young sat down with david ingalls in hong kong to discuss. alex: globally there's about $4 trillion spent on i.t. by enterprise based on our projections. about 10% is being spent more directly, on infrastructure capabilities. so it's still a very early stage. david: so 10% of $4 trilli

microsoft, 72%. andrd the cloud digitalization.bout microsoft results is the operating margin increased at the same time. they have reached that critical mass where the investments have all gone in. you can grow at these rapid rates and at the same time you have the utilization. you are in the absolute sweet spot. that is why the $1 trillion market caps. you areicrosoft positive on an cloud as part of that story. we did not see quite a positive report from intel even though there is some element of cloud in that business. the shares closed flat with amazon because there were question marks over the spending on their delivery service. our the high-margin parts of the business enough to offset concerns around spending and the impact on profit? in the last five years have you asked that question? every single time, this management team have executed and beaten all expectations. they have this in their dna now. the only difference is now it is a much larger company. moving the needle gets trickier. intel is still far behind the curve w

it would appear he is quite good. >> very strong quarter at microsoft.worth mentioning, as you say. commercial cloud up 41%. >> david, it's a huge business. >> to 9.6 billion. >> how he's do it? >> azure -- >> azure that's the cloud business. >> right talk a bit about that business overall because you've spent so much time on it. not just microsoft and aws but so many of the other providers service now. >> john donohue, the new customers are taking three products used to be one product used to be on boarding for hr. now it's pretty much everything having to do with customer he interface. you got your cell phone, david >> i do. >> you can introduce yourself. you file that you've joined the company by using your cell phone. it's over in an hour david, these companies, they used to take two days to on board. now you're on board and you're making money for the company the second hour you work there no more dead weight. he does it of course, he's a model. he's a model ceo, right? >> yes >> he's like probably four inches taller than daniel craig. he better wat

for: it was not a debacle microsoft this quarter.eason, there was broad-based growth at the company led by cloud computing efforts. we saw azure, its public cloud, down from lastch quarter. but it has continued to grow at massive rates. microsoft also got a boost from 365,ce products, windows cloud products. the sentiment was high among smallors, even divisions of microsoft like the devices, which now makes makes off the fifth biggest pc maker in the u.s., even that did well. everything increased. brad: we could have three $1 trillion tech companies before long. sarah ponczek, nico grand, thank , thank you. we will speak with intel ceo bob swan on friday. coming up, amazon is expanding business in asia. how it is competing with alibaba amid trade tensions between china and the u.s. next. this is bloomberg. ♪ brad: as we discussed earlier, revenue from amazon web services jumped 41% in the first quarter. meanwhile, aws he's pushing deeper into the asian market. earlier this week, amazon's cloud services division announced a new region

microsoft up 4% to a new all-time high crossing $1 billion in market cap and it jumped off its reporte're awaiting alphabet earnings on monday and it's implying a roughly 4% move in either action for those stocks and dan has a way to play one of them into the results. you're looking at apple. >> it's important for those names and it's 4 trillion in market cap and microsoft was able to kind of put up the numbers that they did react the way they did amazon given the guidance acting the way they did, pretty decent, too. next week if you think about apple it's a pretty special situation and we started with the negative preannouncement from apple and we've not seen an announcement like that in less than ten years and a 35-degree angle and it's up 30% on the year and some of the stuff that we heard out of texas instruments and intel and xilinx and this week and their guidance should give you pause as far as apple's rally year to date and why it could consolidate there's a scenario that if it's just good enough the stock doesn't rally and the stock could go down materially so to me, the way

microsoft is at $124. all dow stocks, obviously helping the dow move up 25. >>> here's a story i'm interested in. beyond neat. they make plant-based meat substitutes. soon you can own a piece if you wish. it's going public. ashley: piece of meatless whatever. stuart: would you buy it? >> i would buy it along with their big competitor in possible foods. we talked about it a couple weeks ago. for science, i did a taste test just this week. stuart: and? >> they are amazing. it's very difficult to even figure out which is the beef and which is the replacement burger. they have done an amazing job with the science. i like the impossible burger a little better. but this is a buy. they are both a buy. stuart: you are a chemical engineer. >> yes, sir. stuart: that's why you did the taste test. ashley: and a foodie. >> the last round of funding for beyond meat was $1.3 billion. they are talking about the ipo right in line around $1.2 billion. for people watching at home, they do get an opportunity if they believe i

i also like microsoft.ose 90% growth markets in their cloud features and if they do, i think it's going to help them -- stuart: do you think putting mark zuckerberg on the sidelines does anything to prevent the regulation of the industry and facebook in particular? that's the issue. that will hurt their bottom line. that's changing their business model. if they change the business model, that really hurts them. >> right. stuart: the market doesn't think they will change the business model. what have you got, keith? >> i don't think so. respectfully, i think that's a great point but zuckerberg is the problem. he's missing in action. he hasn't taken ownership for any of the faux pas facebook has committed. if he gets to the sidelines, they can get down -- liz: it's a brand credibility issue. stuart: we will find out wednesday or thursday, where the big techs are. check the big board in the very early going monday morning. we are down 78 points. 26,480 is where we are. flat profits -- i'm sorry, flat sales but

microsoft and disney hit record highs.n 59 points, s&p down 6 and-a-half and the nasdaq down 18 points at 4:00 on wall street yesterday. european indices this morning are lower. fq100 down 21 points, a third of a percent, the cac in paris down 13, dax index lower by 17. in asia overnight, mixed story there. you have the bank of japan saying it's not going to ease and not going to cut right now. it's not going to raise either. the nikkei average as expected from the boj, the nikkei average was up one of half half of 1%. china, the index there down two and-a-half percent overnight. the bank of japan said it will hold rates until -- at zero until the spring of 2020. there is concern about slowing growth in japan and reaching the 2% inflation objective. resignation revelation, magic johnson reportedly resigned from the lakers after accidentally being copied on an e-mail about bad job performance. his own. all those stories coming up. joining me to break it down, dagen mcdowell, the wall street journal assistant editorial page

qualcomm, intel, cisco or microsoft. >> i own microsoft i will applaud both jim and pete and i think your call on intel was better when you're looking at it from an investor standpoint with a long-term optic. i think what happened yesterday is very favorable for intel. i applaud bob swan for acting quickly, pivoting out of a business that he wanted to get out of this gives him the opportunity to do it now you've got intel at a 19-year high, clear runway, straight ahead, they could focus on the priority of the business. they get out of these 5g modem chips. i think this is fantastic for intel. >> you make a very good point. >> jim, qualcomm, intel, cisco, microsoft. from somebody who owns at least two or three of those. >> i mean, i think they're going to have different trajectories qualcomm is the name for me right now because i see that 25% rise coming relatively soon. intel and cisco will rise 25%. i think it will take them a little longer. but boy, i love all three. i own all three. >> i own all three they're like my kids i'm not going to pick one >> i got four. qualcomm, intel, c

microsoft for so long felt like it was oh, good old microsoft now suddenly it's hitting all-time highstalk about technology and how this weeks earnings have real power? what kind of impact might they have on say the nasdac and s&p overall? >> well right now the market is really looking for direction. we got the fed pivot that turn their back from the old regime or turn towards this new regime of lower for longer, at least being on pause so that's out the window now. we've been dealing with that and we got back to where we were ahead of that big sell-off in december so now the market needs a new direction and it's going to look for that from earnings. these big tech names you talk about facebook, amazon, you talked about those names, if they have consistently delivered when it comes to earning day despite all the bad headlines and negativity they've come through earnings and shown good numbers and if they continue to do that we can get another leg up in this market but if we do get a pullback that that can spell real trouble for a market running out of gas. liz: everybody by the way sho

so, this is the microsoft cybercrime center? >> tom burt: it is.t is the home of our digital crimes unit. >> stahl: tom burt is a vice president of cyber security at microsoft, which was enlisted to understand how "game over zeus" worked, and to identify where the infected computers were located. >> burt: well, this is omaha, nebraska, and the f.b.i. reported that the first infections they found were here in omaha. >> stahl: and then you begin to see what? show us. >> burt: well, you see where all the infected computers were that were part of this criminal network. >> stahl: oh my goodness. whoa. >> burt: these are the infected devices connecting to the internet throughout the united states that were part of this game-over zeus criminal enterprise. and now you can see how it was really a global-- a global network. >> stahl: a global network of a million infected computers under the complete control of this cyber thief. you know what's almost as interesting as where the red dots are? is where they're not. >> burt: that is interesting. >> stahl: so l

slack, google, microsoft. how do you take on companies like that?: yes, so, i google and microsoft is one thing, and slack is something else. aboutis really synchronous communication. if i need to ask you do you want to have lunch with me? slack might be a good tool. anytime you are speaking with people outside the organization or if i am asking you on the status of the project, email is better. we use slack at front. i do feel like companies also and some time for deep work thinking. if all of your communication is happening on slack, that might not be the best way. google and microsoft are doing email. they have focused on team collaboration. for them, it is a hard thing because they have millions of users. they can launch a separate product, but i don't think it will happen anytime soon. if you look at how email has evolved, in the past 15 years, innovation has happened. the last one was 2004, gmail introduced threading and that is it. i'm not worried about competing against google and microsoft and slack. emily: you released a new workplace effi

del and microsoft, the next stage of cloud, i think microsoft will be the winner. investors were expecting large numbers, these were ones that we almost fell off our chair when it comes to cloud numbers. it's a major feather in the cap for microsoft. i think they should print his earnings press release off and frame iframe it. cheryl: they probably will. let's move on to boeing and the quarter and the costs associated with the 737 max. >> this is a short-term issue. i think you're looking at a company that them -- it's a due duopoly, it's them and airbus. you're dealing with a software fix. i think they're going to 42 planes per quarter as opposed to 52. they decided to pull back in terms of the amount of cash that they're using for share buybacks. on a cash flow basis, the way a that this company is valued, should have some negative impact but this is something that's a little bit of a hiccup down the road. cheryl: we've got amazon after the l bel bell today. there's so many earnings. can't get to all of them. thank you so much for being here. be sure to watch "mo

microsoft is now part of that exclusive oup, b what happens to stocks when their valuations enter thetratosphere? >>> box office blockbuster, superheroes are known to break things and disney's avengers are breaking record after record. those stories and much more tonight on "nightly business report" for this thursday, april 25th. >>> and we do bid you a good evening, everybody, and welcome sue is offtonight. it was a case of the blue chip blues. the world's mos recognizable stock index was the problem child today. the dow fell sharply led lower by 3m which saw its worst te one-day r going back to black monday of 1987. 3m's weak quarterly report dragged other industrial stocks lower, as well and by the ilose theustrial average was down 134 points down to 26,462, bth nasdaq was higher, up 16 and the s&p lost just one poi. andhere's a closer look at 3m. investors punishe that stock after the company lowered its profit outlook and said that evenue fell in most of its divisions. bob pisani has more now on today's mixed market and the signals the earnings season is sending. we're about a qu

microsoft pre-and during ballmer, and then after. tell me about the gentleman running microsoft. he? ceo. he is not a bombastic he looked at the strength, made some savvy acquisition, and there are lessons that companies like facebook can tell from him in the way that he is navigated -- has navigated microsoft's relationship with regulators to make sure they are on a more even course going forward. tom: microsoft has been an extreme -- a complete failure, up 22% for the last 10 years. on bloomberg opinion, writing it up in the heart of tax season. the banks' collapse we see in germany and politics, howard dean will join us on his thecratic party, on gentleman from delaware mr. biden will run for president. stay with us. this is bloomberg. ♪ moving is hard. no kidding. but moving your internet and tv? that's easy. easy?! easy? easy. because now xfinity lets you transfer your service online in just about a minute with a few simple steps. really? really. that was easy. yup. plus, with two-hour appointment windows, it's all on your schedule. awesome. now all you have to do is move...