someone says microsoft is still cool someone says microsoft is still cool. i use it everywhere. everywhere. and someone else says cool. i use it everywhere. and someone else says i have started embracing microsoft more for business at their products are more open and their licensing guys no longer harass you and the pricing model has become more reasonable. perhaps one day they will use it for personal use as well. a bit of a trend coming along there. fiona cincotta from city indexjoins us again. do think it is still cool?|j do think it is still cool? i think it might be getting there. i like it. kind of like doughnuts. let's talk about this story in the financial times today. a space industry. of course, tomorrow is the anniversary of the moon landing, 50 yea rs anniversary of the moon landing, 50 years ago. this is this article here about the private space industry going to the men. all sorts of things. you can propel human remains up things. you can propel human remains up there apparently for a permanent resting place beyond the earth. digital libraries, all sorts of things.

could be any minute from microsoft. it would be almost a surprise if it wasn't quote, unquote a strong number. we're looking past at last kate quarters. everyone microsoft had better-than-expected earnings. seven of the last eight it looked deeper in revenue. the cloud business, what do you expect? it will be story of this. what really been driving microsoft's growth. so funny to read headlines, microsoft is the hottest company. connell: let me interrupt you, lance. give you a headline. gerri will dig through them. they beat the street on earnings. adjusted number of $1.37, better than $1.21. revenue, revenue better than 37 billion. gerri will interrupt you again once she gets more figures on cloud. that is what we expected better than expected forecast figures. >> better numbers on azure. we expect that will be big growth driver there. certainly, windows oem, installs, that has been trailing off business, even with a tiny bit of pc growth year-over-year, it will not be the story of this. connell: you think cloud busine

it's not amazon or apple — but microsoft.t has just proved again why it is the world's most valuable publicly traded company. injust three months, this giant brought in almost $34 billion in revenue. about the same amount as the value of cyprus‘s entire economy. and unlike a number of the tech giants, this company is actually making money. lots of it. in fact, $13 billion of profits. how? office software and cloud computing are proving to be the big money—spinners for microsoft. the likes of microsoft 365 and the azure business in particular. what's powering all of this? an unexpected rise in the number of new desktops and notebooks being sold around the world. they're up by almost 5%. why? companies are trying to replace old machines still running on windows 7 before support for the software expires next year. there's also the fear that this could be a much more costly investment in the future if trade tariffs rise. all of this has helped the company cement its place at the top of the wall street tree. you can how this year

i get to spend 1/6 of my time at microsoft. host: you said the biggest mistake you made professionally was that microsoft should have the android technology. bill: we were in the field of doing operating systems for personal computers. mobile phones were very popular. we were doing windows mobile. we missed being the dominant mobile operator by a tiny amount. we didn't assign the best people to do the work. this is the biggest mistake i made in terms of something that was clearly within our skill set. we were clearly the company that should have achieved that. we didn't. we allowed the motorola design to go to android. so it became the dominant noncapital -- non-apple system. host: today, you're the only company over a trillion dollars. how much better could you have been? [laughter] bill: market cap is only an indirect thing. in an imperfect way it will reflect what the company is doing. microsoft would be more valuable if we had one the mobile operating system competition. android is a huge asset for google. host: i had a cha

how did microsoft miss that business? were you surprised that you were kind of beating to that game by company that was not really a software company? the natural companies to do the cloud would have been the classic enterprise vendors. oracle. they really are not there at all. it is a surprise. it is a huge credit. that they got out in front. they did the best product. today, microsoft is a strong number 2. a huge distance to number 3. it is a source of strength for microsoft. but yes there are many companies , including microsoft she felt bad that the did not get ahead of if you were 28 years old today and you want to start a new company today. what area would you want to in. -- would you want to start it in? >> >> this is a great time to be doing innovation. there are lots of things in biology that are very interesting. given my background, i would ai company whose goal would be to teach computers how to read so they can absorb and understand all of the written knowledge of the world. that is an area where they have ye

my phone so long as i don't opt out the data collected from microsoft earth is going straight into microsoft'scloud system and is helping create a super precise 3 d. model of the earth this trouble's privacy advocates now microsoft insists that no photos of the gaming environment will end up online only low resolution point clouts but what about if i play minecraft at home will my apartment then be scanned and upload it as a point klout. what's clear is that in they are kompany on money from personal data as well but that's not their only source of revenue. companies that make free to play games such as my 10 o'clock she forever and plenty of money from pitches and 2017 worldwide pitches revenues reached incredible 33. players don't have to find anything but then they will have to be more patient. there's a system of time mechanisms. if i don't want to wait to carry on playing then i have to buy gold or diamonds etc so that i can start playing again faster. and of course there is the time. mentored reality google maps not only helps users find their way but also makes shopping suggestions. thi

any chance that microsoft gets it >> there is a chance microsoft is executing on all cylinders.e it open source has been brilliant and well executed they're doing exactly what investors should be focusing on, taking market share away from competitors, focusing on areas they excel at and improving margins. we saw all of those things in today's report so, you know, i think that trend continues. they are being -- the other thing president trump said he would look at google there's pressure on the competitors. that benefits microsoft. we're long-term investors. we're not trading this stock. >> 33%. >> without a doubt it's a trillion dollar market cap company. let's remember and i think it's a pretty unasailable report up a little less than 1% on a really good beat on a really large company shows you that everyone gets it and i think that the company is getting a lot of credit. it deserves a lot of credit. and only thing you have to look at for is people getting too overconfident it's a flawed story, nothing will ever go wrong with it. it trades right in line with a lot of elite secu

so i like microsoft. if i was to pick a financial i do like blackrock, they are the largest money manager in the world so if i had to go on the financial side i'd stick with blackrock and their dividend over 2.5%, it's better than the 30-year treasury so i'd rather own blackrock if i want to have a boring name in my portfolio, i'd rather own something with a great dividend like that that i think is stable and i like cyber security we look at the spinning in that space, really doubling in the next five years. there's more growth in that space than probably any other space when we think about technology >> those projections have been in place for a long time and the stocks haven't necessarily followed >> the stocks in general are expensive. there's not a lot of cheap stocks out there in that space i own pelalo alto networks is expensive. dxe technolo dxc technologies is one i've been watching for a while. it's trading half where it was a year ago and at a ratios less than ten >> roku is the last one. >> yes

same thing with microsoft.reat chart, nothing wrong with it but at the upper end of a trend channel. i probably would go side ways. >> how long do you wait? i'm long cyclicals how long do you wait some either moved side ways to lower. if you don't see the rotation, do you start to rethink your thesis on that >> it is always a risk i am always willing if the data changes, i will change my mind but i think you buy this stuff now. look at some of the financials starting to dig in laggards like schwab are right down to the 200-week moving average, looks very timely industrial names, itw, cat, these things have all gone side ways for 18 months yes, they're not great, yes, they're not leading, but positioning in them, i don't think they're over bought in any way. >> thank you, rob. >>> do you agree with rob here >> you are leading me to bring rob back but i'm smart enough to know i don't bring back the guest. >> i am not. >> here would be my concern, okay it is not a political show, but you got to look at this throug

microsoft feels like they can.hey have this incredible reach of every person in the world and how they can tap them into some cloud service. it is hard to ignore china. emily: if you can't ignore china, what could a potential impact of the trade war be? this seems to be not subsiding anytime soon. if tensions remain as they are, what does that mean for microsoft? aaron: microsoft strength in china has been around cloud services. early in that market, amazon caught up fast. amazon and azure, the market has been looking to go -- go global or access cloud services outside of mainland china. that market has potential to go strong, regardless of any iron curtain that might fall. they: microsoft felt antitrust pain in the 1990's with big antitrust hearings, but they have been largely out of the spotlight, with the recent raft of hearings at amazon, google, facebook, apple all in the spotlight. how can microsoft use that to its advantage? anurag: it is one of the biggest things for them, because they have embraced open-so

what are the potential obstacles lying in microsoft way? -- microsoft's way? anurag: macro concerns are the only thing that could prevent any kind of -- that could provide some near-term headwinds. but other than that, completely agree with erin. -- aaron. the market for cloud services is so large and we're just seeing the tip of the iceberg. at this point, the market potential just in the enterprise space is enormous. microsoft is better positioned than any company out there. emily: beyond the cloud, pc sales still a big part of microsoft business. windows, office. what is happening between the united states and china, a huge issue, given the u.s. china -- given the u.s.-china supply chain. given that you worked in china for many years, what do you think the u.s.-china trade war -- how will that impact commercial sales? aaron: microsoft is very focused on 7 billion. they keep talking about the reach. when you are ou at the amazon conference, you feel like amazon is leading the world in cloud at . at google, you feel like they want to. microsoft feels like the

microsoft is taking it a step further they bought microsoft the world's most successful computer gamein september 24th in fall. 2000000000 year olds. mobile version of the game is coming soon and it looks seriously cool. you can only play minecraft if you switch on the function then you need to find a free surface to start building your architectural masterpiece this is your virtual base plate because g.p.s. technology is not yet quite sophisticated enough to help design buildings to be exact millimeter microsoft has combined different technologies. one of them is tracking which can help locate free surfaces with the latest functions smartphones camera can identify feature points the idea again in this case the machines can even spill over to beyond the table so to speak. the minecraft tracking combines with mapping so that single objects can be identified the system can recognize a table and mark. then a complex 3 d. point cloud is created and uploaded to an open source cloud system the app uses the information to find its way in the real world and all gamers are able to see the obje

let me get your thoughts on microsoft. he mentioned how the stock has got up by more than one third this year. is it because of its growth prospects? tois it a stock who invents -- investors who are defensively minded like because of its slow growth and dividends. >> you hit it right on the head. stock ifan inexpensive you look at the multiple onto the 19 basis. -- 2019 basis. it is an excess of 29.4 times. they are delivering on growth. they have showcased a nice pivot. beat on the number, it is expected that the cloud total addressable market will exceed 400 million in three short years. they post of the corner where they had 32 billion or so in sales. a long way to go. not a zero-sum game because the market is expanding and they are executing. romaine: a lot of people are trying to chase the stock rally or whatever might be left. dealing withime, concerns about the economy. when you are thinking about quality stocks and companies in this environment, is it the microsoft's that investors or arebe turning to there other c

no one in silicon valley liked microsoft five plus years ago.ow microsoft is a mainstream platform company, perhaps more friendly, arguably, than amazon in the valley, but, yes, satya nadella benefited not only from being brilliant in server and tools and cloud, which he helped build within microsoft, but also, it's not a popular opinion, but steve ballmer gets too much of a bad wrap that windows server business, that enterprisebusiness really grew in microsoft under his tenure he did not get the valuation benefit, but don't cry for him, because he's the number one individual shareholder in microsoft. he's getting paid now. >> we're okay for steve. interesting story, we'll watch msft meantime, turning to crypto, k facebook's libra continues to face scrutiny. and now you have india announcing plans to ban all crypto our next guest calls the idea, quote, pathetic and corrupt. joining me today, billionaire tech investor tim draper it's a pleasure to have you on thanks for the time. >> great, thanks for having me >> do you consider this week a bruis

that's going to be a challenge with microsoft out there. that said, i think slack offers a good product. they delight their users when their service isn't going down. i don't want to harp on that too much, though. these are all cloud-based systems, all susceptible to that. slack, it's good to have the competition out there. it keeps microsoft on their toes. it's good for workers to have a choice when they can, at least. liz: dan, john, we will see who wins this one. at the moment, microsoft has more even after being founded just a little bit after slack. team slack, team teams, thanks for joining us for this. >>> when we come back, the federal aviation administration now may have to shoulder more blame in the boeing 737 max when it comes to regulating it and its design. we've got that story and more coming up. nice. but, uh... what's up with your... partner? not again. limu that's your reflection. only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪ liz: we need to take a look at what we call a hot board. this is the current i

coming up, microsoft sales grow 12% in the latest quarter driven by its cloud services. we delve into the numbers next here's another cleaning tip from mr. clean. cleaning tough bathroom and kitchen messes with sprays and wipes can be a struggle. there's an easier way. try mr. clean magic eraser. just wet, squeeze and erase tough messes like bathtub soap scum and caked-on grease from oven doors. now mr. clean magic eraser comes in disposable sheets. they're perfect for icky messes on stovetops in microwaves and all over the house. for an amazing clean, try mr. clean magic eraser, and now, new mr. clean magic eraser sheets. >>> welcome back to "street signs. i'm julianna tatelbaum >> i'm joumanna bercetche. these are your headlines >> >>> european stocks track asia higher as dovish commentary from fed officials boost hopes for a rate cut later this month. >>> shares of publics fall following a weak second quarter. >>> ab inbev shares pop after the drinkmaker agrees to sell its australian business to asahi for 10 billion euros, just one week after abandoning the ipo of its

microsoft trading at all time highs.o worth noting that the rebound we have seen in semiconductors from highs in april to may lows. it is rebounded here, it fell about 20% from april to may. and since then the index rallied about 19%. yesterday, closing at its highest level since early may. index up half a percent, a number of earnings next week will give us an idea of whether that run can continue. on the international front, we have secretary pompeo visiting south america to talk immigration. taiwan among foreign policy experts is becoming a bigger focal point. lastly, the u.s./iran heated rhetoric, that continues to be a focal point for oil investors. that's why oil is higher in early trade. guys, back to you. >> thank you very much, seema mody to the bond pits, rick santelli at the cme in chicago. plenty to work with today, rick. >> yeah, oh, boy, yeah i'm kind of going on the music end of it. watching everybody do the moon walk here in the fed i'll tell you what, this is really everybody should ponder how the wonder

microsoft, a great company, they've been killing it. that is actually getting to be a little bit more expensive. so when you ask the question, is it okay to buy here, if you go home long, it is the same as buying it here i am long on facebook, i am long on alphabet, i am long apple i think that today was, you know, started off as fed, but i think it is already priced in. i am long but afraid of this market i like we are getting back to fundamentals we are just starting earnings season we will have a lot of new information the next week or two or three i think that to me is what i'm going to -- what i really care about the most, and then second to that is the trade deal. >> i think when you look at these, i think facebook still is a buy because of the growth rate they've got right now. i think google has gotten punished too much. >> and that growth rate is not threatened by the looming regulatory things. >> i'm not concerned. >> handcuffs, for instance, for the ability to acquire another company potentially? too big already? >> i think i

and microsoft is better positioned than any company.ly: beyond the cloud, pc sales are still a big part of microsoft's business. windows, office. what is happening between the united states and china is a huge issue given the u.s./china supply chain. given that you worked in china for many years, what do you think the u.s.-china the trade war, how will it impact commercial sales for microsoft in china? aaron: microsoft is very focused on this seven billion. they keep talking about the reach. at the amazon conference, you feel they are leading the world in cloud. at google, they feel like they want to. microsoft knows that they can, and they focus a lot on the incredible reach of every single person in the world and how they can tap them with some sort of cloud service. it is hard to ignore china in that context. emily: so if you cannot ignore china, what could a potential impact of the trade war be? this seems to be not subsiding anytime soon. so if tensions remain, what does that mean for microsoft? aaron: the strength in china has bee

microsoft has also -- the subscription revenues and things like that. only amazon has subscription revels they have prime, and you cited prime day which they extended by 12 hours this year kudos to them. it looks like singles day was made by ali baba this is a great way to get consumers to spend we also know it does pull forward a lot of the interest if not the outright buying, and they have put some things out there as a loss leader nonetheless. >> yeah. >> like amazon, like google, but these aren't nearly as exciting to me from the cloud side. >> sure. >> as apple will be because apple, we all have these billion devices around the world, and those billion devices putting stuff up into the cloud, that is going to be just mana from heaven. >> you're nodding your head, joe, when jon was talking about microsoft being better over amazon and do you think there should be a discount to amazon's valuation given what the government may or may not do >> when you reflect back on one year ago, there was so much of a reliance on what the results were going to be fr

how can microsoft use that to its advantage?it is one of the biggest thing for them because they have embraced open-source. more than 50% of the instances in azure are on open-source, which is remarkable for a company that did not believe in these kinds of products. the policy of being friendly with their rivals and being able to embrace any other project from the competitors will play in their hand as regulators look at large tech companies. emily: coming up, the chair of the house financial services committee, maxine waters, says mark zuckerberg should testify to congress on the crypto play libra. we hear from her next. and bloomberg technology is livestreaming on twitter. check us out at @technology. this is bloomberg. ♪ >> earlier heard from democratic under john warren. was thetocurrency plan focus of a plan. we caught up with her after that hearing. requestme here at our to tell us what libra is. they are in switzerland and all those questions we ask. theink he skirted some of most significant questions. he did not answer

emily: the big question is can microsoft keep it up? that expectations are so high, can the company continued to deliver in a new tech economy. >> we have expanded it to amazon in the last few quarters because there is such enormous demand for the services they are providing. this is only the beginning of an incredible boom that will continue in as her -- in azure. emily: it is not a zero sum game? >> absolutely. every study tells us we are in the early weeks of a long game. microsoft is on the verge of becoming the corporate cloud. fresh off the last few days of heir biggest summit in vegas and cloud reaches a partner, but the big theme is trust. not just trust with partners but in the enterprise relationships to expand those. which frankly is a differentiator from google and amazon. emily: that said, when you are the most valuable company in the world, and microsoft does have more than a trillion dollar market cap, what are the challenges? what are the potential obstacles lying in microsoft's way? >> i think macro concerns are the onl

microsoft is on cloud nine. the lgest publicly traded company today topped earnings estimates and reported record revenue thanks to owth in azure. it is clear that microsoft big investment i the cloud appears to be paying off. at least one analyst said the pace of growth at this scale is unprecedented. that helped lift the stock and initial afterhours trading tonigh john ford has more on microsoft's quarter. >> one take away frommicrosoft earnings today is cloud momentum continues. the company's feet was grounded in azure's strength. but not just that. office and linked in also continue to be strong and ha particularly tt unit including office and linked in helped the profitability of microsoft. just get even stronger than it had been in the past and that's why i trillion dollar company and still going on at the end of the fiscal year. for "nightly business report" john. >>> now to microsoft's fellow component boeing. late today the aero space company said it's going to take a nearly $5 billion charge for proble

doc was -- >> microsoft microsoft, mel microsoft and silver the silver version of microsoft. >> onlyding. ual. look, momentum is going to continue the stock is doing well. does well in down days i still think par is a target. >> brenda? >> disney. one thing we didn't mention earlier is hulu. hulu plus disney plus will be a winning combination. >> goldman sachs they had a very good earnings report i like the sector. but the 50-day moving average is crossing the 200-day moving average to the up side that's called a golden cross it's wonderful this is the time to own goldman sachs. >> abbott labs stay with the stock. this is exactly what you want from your company. delivering buy more >> thanks, all thanks for being with us that does it for us on the halftime report. "the exchange" begins right now. >>> it sure does thank you. hello. i'm brian in for kelly today here's your lineup at this hour. the market's next test no, it's not earnings. it's the debt ceiling. nancy pelosi says that they need a deal by tomorrow to pass it before congressgoes on its lon august recess. if you make it, w

microsoft, you know, still trades at, you know, an evaluated but reasonable valuation. asml put up great numbers. and obviously, you know, a very competitively advantaged company, with a monopoly position in what's called euv, which is semiconductor capital equipment company, where its technology will be inserted for many, many years, to continue to propagate moore's law. and then, you know, we expect the digital add ecosystem, particularly around social in the facebook numbers, and the ad numbers from amazon should hopefully continue to show progression there. google, a little more muted. and then, you know, this continuing narrative out of the semiconductor companies like we heard out of tsmc, where things aren't getting worse things have been adjusted a little bit for supply chains and for huawei, but things look to be getting a little bit better from here. >> okay. now, let's bring in synovus trust portfolio manager, dan morgan dan, that was a set-up to what i consider to be a deeper question for investors here we're in such an unusual period, take microsoft for exa

you know who would have guessed i mean microsoft and the stock has been a bore for years here on wall street but then also was the new c.e.o. . that was really quite a run that microsoft had just in the positive 2 years the stock price has almost doubled and now the company came was the earnings report after hours and in comparison to last year's quarter they saw a gain of profit by almost 50 per cent they blew away earnings and old saw a profit and also revenue expectations of the stock is up in the after hour trading and microsoft is the only company on wall street at the moment that has a market valuation of more than one trillion dollars in the quarter with the latest numbers from new york thank you central banks in south korea indonesia and south africa lowered benchmark lending rates thursday days before the u.s. federal reserve is expected to do the same central bankers cut interest rates to spur economic activity lowering the cost to borrow money makes loans more affordable but it also makes investing more difficult worsening global economic indicators as well as persistently

microsoft headquarters .of things is providence going to do here and how will it impact patients? peter: it is great to talk to you again. we will be bringing microsoft toud and a.i. tools providence st. joseph health to all employees in all 51 of their hospitals to improve gillick -- clinical outcomes and the day-to-day workings. some the care business. it is intended to bring much more data and data intelligence to the people that matter. emily: let's talk about some specific examples. there is an example in our bloomberg news story about this partnership about a knee surgery in particular and how you and they can use data to get a better handle on what works and doesn't work. explain that. peter: that is really a great example to bring up because it was one of the examples that really impressed me the first time we went deep with providence. if you look across all of the arthroscopic knee surgeries, you find tremendous variations, sometimes as much as a -10x variation and a 200x variation in cost. if you p

shares microsoft shares are higher than 1.9%.ugh to ease concerns over that trade related slowdown? this is bloomberg. ♪ ♪ vonnie: live from new york, i am vonnie quinn. this is "bloomberg markets." of microsoft soaring after the company reported earnings that beat estimates, driven by big revenue gains in the company's cloud services. commercial cloud revenue was better, but will that moderate? >> the big question as we go into next year, we have not seen -- microsoft has not seen any trade related tensions. another large software company sap has. do we see something coming in the next quarter or not? as of last night, no problems. vonnie: what can we tell about trade on those results? >> it is a mixed bag. sap had direct results. they had delays in contracts. clout bookings were late. for microsoft, all the bookings were good. they were specific in the way they addressed this. vonnie: why such a surprise? >> always the issue is some of cloud products, there is accelerated demand from oldest all industries -- almost all industri

microsoft co-founder bill gates recently made news by describing one of his biggest regrets while he was still the head of one time world's most valuable company gates said he wished microsoft would have gone toe to toe with google's android to come up with a solid alternative to compete with apple's i os in an interview with village global gates said of the situation in a software world particularly our plan. forms there are winners take all markets so you know the greatest mistake ever is whatever mismanagement i engaged in that caused microsoft not to be what android is that is android is the standard apple i phone platform and it is amazing to me that having one of the greatest mistakes of all time currently enjoyed makes up roughly 75 percent of mobile operating system markets apple accounts for just over 22 percent the other operating systems are barely blips on the radar microsoft has tried over the years with a windows mobile operating system but they never really caught on what gates is talking about here is a full fledged effort to make a universal alternative to apple simi

it's division a ws generated more revenue on its own then mcdonald's microsoft's intelligent law business brought in over 11000000000 in the 2nd quarter even though google klout revenue is fos more than amazon's all microsoft the alpha division includes cloud still generated $6200000000.00 this quarter now with me in the studio is mark since he said it takes specialist this is to be a lot of money to be made in the clouds other any significant other plays so the money is made not on the cloud because we've seen over the counter kind of fluff you think they're in there is made of data and the cloud is one of the ways of how companies can access data personal data and so forth with the players there of course we have to think about cloud as a service as infrastructure or software and services the biggest player here is of course facebook question because a cloud based company where is making money on advertisement about it wouldn't be possible if it wasn't for the fact that they run the entire centralized cloud where we interact and exchange our information so the other players commercial p

stuart: microsoft. say it again. >> microsoft. the cloud revenue up 5% in this last quarter.soft in the last quarter gained 41%. talk about turning around a battleship. susan: they paid $34 billion for red hat, 22 quarters of declining revenue growth. at a point do you give a pass to the top management tier? stuart: at what point does top management -- susan: by the way, that's closer to $200, when warren buffett was saying maybe i'll keep it. now at this level maybe not. stuart: let's get to microsoft. they report after the closing bell today. i think this could be a pointer for the whole market. that's what i think. what do you say? what are you laughing at? >> of course, the whole market depends on microsoft in your view. stuart: let me make my point. microsoft is the one big tech company which has not had a serious selloff in recent memory. susan: it's a trillion dollar company. stuart: it has no image risk. they are part of big tech but they are not under attack. >> as i mentioned before, i actually don't own the stock. it's a great company, i know you own it. it's doing

i am excited about microsoft. it has become one of our top holdings of all the major big .ech companies we are really happy with the results. emily: there is an irony that microsoft, after all the antitrust pain it went through in the 1990's, was not on capitol hill this week. how much do you think it helps that they are not a part of this antitrust conversation we are having? enormously.lps i think if you had told somebody having that we had been angst about technology, antitrust, and microsoft was not a part of that conversation, they would not believe you. emily: ross, netflix, the opposite story, historically a volatile stock, but this quarter is more interesting in that we had "stranger things" come out and the forecast looks good, but the slate for last quarter was weak. ross: we think that was part of the strategy. because "game of thrones" was such a global event, isaac they held back on content because there was no need to release it because everyone was obsessed with "game of thrones." this shows competi