microsoft never did anything for me.but they did the polish next either you know bill didn't seem next as a factor. he didn't see he didn't seem next as good as being evil having the potential for success and so he didn't have to oppose it. first thing to look at in this product is user interface that's perhaps the most important thing about this product this is the user interface of windows 2.0 of windows in the late eighty's after basic and dos bill gates wanted his new operating system windows to become the standard system worldwide roland hansen is the man who made bill gates the software industry's number one media figure and it's also due to this marketing wizard that windows the graphics interface which would conquer the world owes its name. we realized that the opinion where you know they were calling these buoys none of these right were calling them goodies anymore they were calling them all windowing systems because they were creating windows on the screen. i said the holy crap if these are all we're doing syst

look at microsoft now versus the crappy version of microsoft a couple of years after the antitrust settlementbetter company. it is a much more valuable company for shareholders. most importantly, it is a fair company. emily: tim sweeney, the ceo of epic games. coming up, the likelihood of major league baseball playing a full season has dwindled with each passing day. what does it mean for the online world of sports betting? we will talk to the ceo of fanduel next. this is bloomberg. ♪ emily: while the nba returned to action last night, major league baseball has continued to run into roadblocks. covid-19 outbreaks among two major league baseball teams, the miami marlins and st. louis cardinals, have led to more game cancellations. joining us now to discuss what this means for sports in the world of online sports betting is the ceo of fanduel, matthew king. thank you for joining us. this has been very disappointing for my son, i should add. what is your take on how this plays out? matthew: look, i think these types of issues in baseball were inevitable. when you think about the logistics they h

steve grasso, if microsoft said tomorrow that they're buying tiktok, would you like microsoft more or less >> i would like microsoft more but what was interesting was if facebook is under the scrutiny of d.c. then wouldn't microsoft start getting under the scrutiny of d.c. if they did this deal, as well? that's the first question i ask. so i'm not sure you want to be in that camp but i think this is a perfect deal because everything that microsoft has or the majority of what they have is business facing this is a totally different angle. who do i should be a buyer of this google google should be in the running. google has no social platform and failed at it multiple times. this would be a great gift to apple. this would be a huge gift for google. >> it is not a matter of cash. we know they have cash it is a matter of a fact days ago they were in congress saying they're going to tell the truth. every single company had a ceo there except for microsoft and maybe for that reason they could do the deal but strategically to me, carter, i don't know makes no sense for a company so focused o

microsoft, microsoft. you can't say all of these companies are losing money, they're all going to go down the drain. there's all insider trading. >> how how do you look at microsoft and what's really riding on it the expect idle are going to be high, service and tools used to be the business. the business has completely diversified. who would have ever thought that servers and tools would be overtaken by other components. so is 30 the right valuation who knows, but the world that is now absent of growth, this is the only play is if you're allocating into the market right now microsoft is the place you feel as though you're going to get least hurt on a decline. they are going to experts i think significantly more volatility i'm fine with that i'm not sure the earnings will disappoint, but the expectations are high, and it is absolutely a number one core holding in any portfolio. >> what do we make of what's e rying on it es la. >> yes, tesla is a technology company tesla is going to experience d. and they'l

shares of tik tok would this be a good deal from microsoft. well i mean to talk is incredibly successful was in a very short time span that just recently served pos 2000000000 downloads off the tick top at the world wide as far as we know there are estimates that tick tock the end tire operation might be worth about $50000000000.00 so all new to us i pod for a sions would call for less and that is money that microsoft quote clearly fort but on the other side then microsoft also might be right in between those 2 struggling superpowers the united states and china so we will wait and see if microsoft is really following that path d.w. business correspondent in new york thank you. in the u.s. 3 people have been charged in connection with the hacking of prominent twitter accounts 2 weeks ago prosecutors say a 17 year old from florida was the mastermind behind the hack that duped people into making bitcoin donations it affected some of the platforms most high profile accounts including u.s. president barack obama and democratic presidential candidat

a mea cu i want to go back to microsoft. want to point out the xbox revenue, which a lot of people see as a key here for the company, the content of services revenue was up 64% on a year-over-year basis. the actual hardware part of the basis was down 49%, the idea that everyone bought consoles in the previous quarter and it tailed off. there are some concerns that with a lot of the companies doing well now, there has been a pull forward effect and a lot of the sales. i'm wondering if that is a concern for the other tech companies out there. while they may have a lot of new business whether from consumers or businesses, it is a pull forward. >>>> i will rephrase it a little bit here. with a lot of the names and videogame names is that it is not necessarily that you are pulling revenue forward, it is that you accelerated the adoption curve. that is why the stocks have gone nuts. you go for something like zoom where they were growing 30%, 40% year-over-year and now they are growing 200%, and thus the multiple has to be revised

microsoft, we'll hear from them later. the sentiment in valuation set up for this stock is interesting. it's the indispensable blue chip stock now. people have reason to love it for its steadiness and the growth profile and the financial sturdiness this is showing more than 90% of analysts like this stock but that's been the case for a long time for the faang type names, the nasdaq 100 names it's not paid to fade the optimism of wall street in fact, it's not all that optimistic or enthusiastic when you look at the price target it's not far above where we are right now. on the valuation side, getting rich this is a long-term look at the valuation price earnings multiple on a forward basis of microsoft. it starts on march 10, 2000. that was the peak of the nasdaq bubble back then that's when it traded above 60 times forward earnings here you see it's accelerated to the upside about 35 times earnings right now. it's aggressive by almost any measure unless you look at it compared to things like corporate bond yields under 2% t

this product is very different than what microsoft has to offer.his is a great opportunity to buy slack in the low 30s you know, trading at half the multiple of sales that zoom is and then the last point takeout interesting question when wants to compete with microsoft as far as teams or who as far as big ones google making it so news the ceo founder of slack takes over collaboration tools for google and really takes on microsoft in the space. so that's something i can tote he see $19 billion enterprise value seems way too cheap for in asset. >> coming up gilead seems to put the rally on pause but will big news give it a boost? semi conductor stocks taking a brooe breather but is the stock ready to run thnaaqe sd leads to a record high back in two. stay with us. >>> welcome back to "total request fast money." with the recent news of remdesiviris the worth the trade? it appears to reduce the risk of death in severely sick patients? guy? >> back in april i think it was when you first started hearing about rem ddesivirremdesivir, tk traded up to 85 to

what is a potential microsoft acquisition of tiktok mean for microsoft?on't know microsoft enough from a stock standpoint, but from a consumer facing, if you leave off xbox, a lot of what microsoft has done has not worked out very well. using skype. everyone is using zoom. gotou look at mixer, which sold off, their competitor to twitch. you look at minecraft, which is amazing, but i don't think microsoft has meaningfully innovated. linkedin looks like nothing has happened to it since they bought it. microsoft has not been exactly awesome with consumer-facing tech. i can see why microsoft wants to buy it. it may not be so exciting. what it means for tiktok may not be great given microsoft's history with consumer-facing internet apps. caroline: does this help anyone? ifthere is a big difference, you were to tell me that tiktok is being shut down or severely hobbled in the u.s., that would be very good just competitively for snap, facebook, and twitter. it is a war for consumer time, and it is an app taking a lot of people's time. in thed help everybody cons

now could microsoft really buy to talk to ferguson has that and more coming up on business you can get more on our website. i'm scared that my work that's hard and in the end this is a me you're not allowed to stay here anymore we will send you back. are you familiar with. the smugglers with lions and. what's your story. 'd with numbers and women especially in victims of violence. take part and send us your story we are trying always to understand this new culture. you are not even a turnoff and yet you want to become citizens. in full migrants your platform for reliable information. on. how know can you go after the united states post has dark declines the news from the europe isn't any last bleak of course i mean numbers from across the continent show the staggering impact the coronavirus has had on the economy. also coming up could an american takeover of tank top quell u.s. concerns about chinese buying. say those 2 on our friends here everyone wants to spend your money it's a wonderful. as u.s. troops prepare to withdraw from germany residents of the bavarian thailand where many o

or it could microsoft really buy tick-tock kit ferguson has it coming right up on the business don't go away. what secrets lie behind small. discover new adventures in 360 degree. and explore fascinating world heritage sites. w world heritage 360 getting up now. blockbusters from nigeria you know that's what money would. do to me. centric. and successful beyond belief. this is the way we do it. would start aug 7th on d w. how no can you go after the united states post historic declines the news from the europe isn't any less bleak of course i'm a number as from across the continent show the staggering impact the corona virus has had on the economy. also coming up could an american takeover of take tongue quell the u.s. concerns about chinese spying. say those on our friends here every once in germany it's a wonderful. as u.s. troops prepare to withdrawal from germany residents of the bavarian tag where many of them are posted are fearing for their lives. ferguson welcome to the show. this week several major economies reported record lows in the 2nd quarter today the eurozone economy

i have microsoft, apple, amazon. i chose amazon on the police chief and pull back that would be the one that hurts me the most i've stayed with microsoft and apple, i've been proven to be incorrect by that decision looking forward, these technology names are the economy. they are predominant in terms of the sector weighting of the s&p. that's why investors have to take an opportunity to allocate. >> amazon is coming off five down days in a row no one expected when you said you were taking some profits in amazon, you don't have to time the tick perfectly it's hard to call the top. it's hard to daul the bottom it's the bigger picture trend. >> these aren't even tech stocks think about amazon is basically a consumer discretionary it's transport then you think about facebook and alphabet have been removed they are now communication stocks it's growth equity there's a premium for growth equity there's a scarcity value being placed on companies that are able to grow by 20% a year during the worst global pandemic in a centu

look at amazon versus apple versus microsoft here to yo you have amazon leadn the way. apple and microsoft have more price history, but all three of them going back to 1997, we can't even see the other two lines. in fact, this is very humbling for all of us. $10,000 invested in 1997 in amazon is worth 32 million so the final chart this is the chart of amazon. i've got several annotations you see those flat lines, four of them? amazon has had three distinct periods where it went sideways and thing a big breakout you see the second instance from 2013 to 2015 and breaks out and of course this most recent instance where it was flat from 2018 to 2020 and broke out after each breakout we see a percentage game. that was up 315% all you have to do is advance 25% from here. that would take you to around 4,000 a share, which would be the $2 trillion mark so of these three, it's anybody's guess. it's a horse race. my guess, i'm betting on amazon. >> technically, carter, at the beginning of this new move higher started when? >> two and three years after consolidati consolidation. w

microsoft is a u.s.rnment doesn't have to worry about surveillance. that's why it was potentially looking to ban tiktok. they believe that its chinese parents were using that user data for surveillance purposes. it was a bipartisan concern. so that's where we are right now. the one thing i think from what i understand microsoft is trying to get its hands around is, if it only buys the u.s. portion, how does it compete globally in this -- with this short video market? you know, this is a big global market. facebook is developing its own product. bytedance theoretically would keep the rest of its operation so if they take out 80 million u.s. and they have, what, 720 million still, you know, globally, how do they get scale and compete in that business broadly? i think that's part of the discussions that are going on right now. if you saw president trump, he confirmed a couple things earlier today. he confirmed as we reported earlier, maybe -- i think we were like a minute before bloomberg on this, that they

is that helping microsoft team which is a zoom competitor?o 75 million at last count. they capitalized with gaming on xbox and surge in gaming spending during the month of march and beyond. >> it is all about technology. when you tell me tesla is worth more than jpmorgan, i mean -- susan: home depot. now a blue chip if you look at the size of it. >> it is worth more than general motors, ford, fiat chrysler and honda combined. extraordinary stuff. thank you, susan. we'll have more on this later. >>> another showdown with china. beijing says we'll retaliate after america orders the chinese consulate in houston, texas, to shut down by friday. chinese diplomats are burning documents, ouch. >>> nba providing the first look at the socially distant court when the game returns next month. black lives matter is parented down the side of the court. we'll show it to you. >>> baseball is back. it makes the return tomorrow. bookies are ready for return of sports betting. they're expecting a flood of bets. we'll have more. >>> the pandemic hurting black ow

i believe it is 130 $6 billion large for microsoft.n this tech boom, what are they going to do with all that cash? shannon: at this point, they are investing very aggressively in their core business. spending for data centers. you have seen significant growth in their azure and cloud business. if you look at what azure has done, and one quarter on a year-over-year basis, they grew as much as they generated three or four years ago in the total business. so microsoft continues to focus on organic investments, and they have made some smart inorganic investments. github, linkedin. they are clearly not done on that front. tom: there's an understanding that amazon has a retail world they can take out over two, five, 10, 20 years. is at the same for the cloud, and for microsoft and azure, is it the same idea that the cloud just grows and grows? shannon: it does slow. one of the things the covid crisis has shown is that remote work is something very important. remote learn is something, at least if you have the capabilities. to do that, to a l

connell: microsoft is much larger. you mentioned the market cap. we'll see that in other stocks, with tesla later this hour and we've seen such a runup. tesla in of itself a story. we've seen a runup in some technology stocks that sell the news, kind of phenomenon going to be with us for a while we think? >> yeah. it is pretty unique for this era. only a few times when you've seen that. as you said, connell, tremendous concentration. microsoft is the best example. it is about 1.5 trillion in market cap. it is alone bigger than 120 of the smallest members of the s&p 500. the top five or 10 names of the s&p and nasdaq. they are the market. that is what makes these earnings from microsoft as we're seeing in tesla which we'll get any moment, so vital to everyone's 401(k). connell: we'll talk more details about microsoft as we dig through the numbers. let you know if there is anything on the outlook side. 38.03 billion. that is the number on revenue. that is better than expected. $1.46 earnings per share, that is better than expected. the cloud number,

>> yeah, i like microsoft.>> tony, your thoughts >> i have a short put credit spread here on microsoft, so i'm not expecting such a strong here on microsoft i think it's going to be more of a muted move just like last quarter. >> the thing going into this earnings season is we're seeing this rotation out of technology into value names mike, i wonder how you think that factors into some of these reports we're going to be getting? >> yeah. this is going to be a really interesting earnings season in general, i think, not just for microsoft but for a lot of different stocks, because of course the last earnings season really didn't tell us too much about what the impact would be now we're going to have a much better sense of that microsoft is interesting because it plays off the themes of work from home and all of that. i like a lot of their products even though zoom, slack and some others have gotten some attention for it i'm just long on the stock i don't have to have an options position, but i do like it. >>> tim

to microsoft shares. they had a huge beat one of the names jim cramer said is on an insane terror as of late do microsoft's earning numbers justify the move up in stock the last couple of months? >> i think so where we are in 2020 which has been a crazy year for everyone mentally, physically or whatever >> what? what's going on this year? what do you mean >> clearly microsoft is the winner from their benefitting from increasing shift from the cloud. they are the beast coming into this, any sort of tnt survey you came across amazon and microsoft are one/two. the most crowded stocks on planet earth now, there is time of azure decelerating last quarter, we saw 61% and estimates close to 65% growth. so some disappointment there you also look at netflix post up a couple of weeks ago. the stock really struggled to create momentum. we could see that with microsoft in the near term >> joel, always a great guy. we appreciate you coming on. a good one good luck to your mets i don't mean this year but forever. joel,

microsoft shares declining after the bell. on the back of its earnings results, sales of its azure cloud prod debt -- product disappointing. overall, stocks closing slightly up. investors seem to be more optimistic as congress continues to work on another federal relief bill. the president at the bottom of the hour scheduled to deliver another news briefing. this as tensions between the u.s. and china continue to escalate. the u.s. has ordered that the chinese consulate in houston, texas to close china -- to close. china is calling for the u.s. to revoke the decision and is warning that the u.s. has more diplomatic personnel in china than vice versa. joining us to break down the market avenue big -- the market action are abigail doolittle who has following -- who has been following the action. abigail: tesla delivered. considering you have the stock of more than 280% on the year going into that report. before we look at that stock specifically, it has been another interesting, slightly choppy day. more sleepy at the end of the

aswath: that is more substantive, especially microsoft. microsoft is a money machine.s profits like no other company other than apple. when you are investing in microsoft, it is a very different type of story than the tesla story because there is more on the ground. valuek at the base way of you can draw that you do not have with some of these younger companies. described tech companies as aging in dog years. microsoft is an old company in dogeared terms. it is a company that has been able to find growth when people had given up on it. excitementt of the of microsoft is its reincarnation story. maybe it has found a way back. that would be reaching, but i think there is more substance investing in microsoft than with tesla. francine: if you look at some of these big faang companies, what is the regulatory risk? i'm thinking about facebook. i do not have amazon is one of them -- they could actually be broken up by regulators? aswath: i'm not sure amazon or facebook can be broken up. -- thisicrosoft in 2000 is an ecosystem you're getting into. they could break up instagra

that might be the consolidation that you need in a name like microsoft. some of them are coming back airline stocks after terrible reports. my point is not that we should go pile into the airlines and sell apple to do it. if you're right, and i think you are. we should have a reality check that reality check can simply be consolidation at the top they move sideways for a while and the rest of the market catches up >> i don't know. >> that's a healthy transaction in a stock market that's about 3% from its all time high. >> maybe, liz, the reality check is the naysayers need to get a reality check and say there's nothing -- there's no reason why these stocks should go down or you should get out the reality is they are better positioned than everything else. that's the reason why they are where they are in the first place. there's no reason why that's going to stop any time soon. maybe that's the reality check rather than saying maybe these things have come too far too fast >> i think a lot of the stocks were the recovery trade. are they going to slow down o

is microsoft one of the more attractively valued ones sh. >> i don't know.vely valued i guess it depends on whether you're looking at revenue growth if, you're really factoring in cloud. that is why story is important sfligt a lot of people valuing microsoft now are doing it based on cloud and investment in being plate form that other people build on top of. tiktok is not that if you're buying tiktok, it's an application argument that now you're integrating big users, big consumers of data, big communities into that platform you have to buy those. as opposed to just get them to rent the space from you. the valuation question is an interesting one. it goes to story as well >> john, thanks very much for joining us on that potential deal we're out of time now. scott and mark, thank you for joining us >> thanks, guys. >> up next, coronavirus testing capacity is a hot button issue and the u.s. is still struggling to keep up with massive demand we'll talk to the ceo of hologic. we're be back in 90 seconds. my name is janelle hendrickson, and i'm an area manager he

that is making microsoft pandemic and recession-proof.g among smaller businesses and reduction in ad spending on linked in. here are the expectations. $1.34 a share. microsoft has beaten the street past 16 quarters straight. revenue rises to 36 1/2 billion dollars. stock up 32% this year. that is helping to power the broader market overall. tesla, charles, knocking on the s&p 500's door. it may be included in the widely tracked index if it posts another profitable quarter. they are expected to report a profit of three cents a share on revenue of $5.36 billion. three things here. tesla is buzzy. its market cap is bigger than toyota which sells 10 million cars a year. tesla may crack 500,000 cars a year. elon musk, he is worth more than warren buffett. tesla cut car prices in the quarter. that could hurt its bottom line. not to mention the california factory was off-line. the stock is up over 500% in 2020. some other names real fast reporting after the bell. las vegas sands. revenue, expected to drop 83% from last year as people stay away f

they approach microsoft.icrosoft was one of the companies i was noticeably absent from the tech hearing this week. it is one company that -- it is probably the one company that would be regulatory late allowed to grow and buy tiktok. i didn't know what tiktok was before reporting this whole thing. other than my 1-year-old niece uses it to share videos. music videos. but both sides really believe that it is spreading like wildfire over the last couple years. 80 million u.s. users. that it gives a lot of traction on data for its users. and as you know, every chinese company, as a u.s. subsidiary, every chinese company essentially is owned and operated by the chinese government. bipartisan support for clipping its wings because there are people that believe they were using this data -- >> neil: but putting that bill away -- with microsoft potentially buying it, because unless there is a full and complete separation from china, it might have a tough time passing here, right? >> yes, and i will tell you about the

microsoft which is not on that chart. it's down about 4.2% they were basically flat over the last two weeks as the s&p 500 has gone up. it has been about heaviness, pullback, you know, cooling off of that sector of the market that is essentially the whole story today. we have this huge bounce in the big growth names and average stock is suffering so it is sort of a jumpy unstable market as the overall s&p 500 has got tone this level that seems a little tough to break above that recent range. but it's mostly about -- this is what the rotation out of growth is going to look like some days there are the handoff of the baton. i think that's what we're seeing in theindexed. >> i own microsoft and alphabet and amazon i've been selling amazon and sold out of facebook some of the stocks are having a big run. even with this correction today, i mean, apple was up 83% from the low. microsoft is up 48% from the low. it accounted for 80% of the returns in july alone. so it's been very concentrated its very crowded they're very well lo

we'll dig into the numbers from tesla, microsoft plus, the dow closing above 27 k for the first time since june 9th. the bank of america says market rally may be on pause. the company you may never have heard of soaring 50% in its market debut how big is investor appetite we'll get answers. we'll start off with tesla the electric carmaker jumping in the after-hour session, despite the staggering run into this report let's go straight to phil lebeau with all the details. >> a beat on the top and bottom line and the beat on the bottom line is significant. let's run through some of the numbers. much better than expected earnings per share and it's a fourth straight profitable quarter for tesla. $2.18 is how much it earned in the second quarter the street was expecting three cents profit revenue just over $6 billion as i mentioned, a fourth straight profitable quarter for tesla. we know the significance of that it is the last hurdle the company needed to clear in order to be included in the s&p 500. let's drill down some numbers within the report that are going to get attention operating

i will also probably play microsoft. microsoft has also been a darling. it's not going to be as explosive but it's very very important for the market for microsoft dto come through or nt be a led wihead wind. if i were to choose between snap and [ inaudible ] i would go with snap. liz: he's got a plan. [ speaking simultaneously ] >> i agree. the chart looks so enticing on twitter. it's been rallying up big. i just think it's getting ready to be upset with the earnings. i don't think twitter is going to hit it. i don't like their management, i don't like the way things are going over there. i think if anything, if we are going to see a bad surprise in the tech sector, i think twitter is going to be the one. on the other hand, microsoft, that stock hasn't really performed as well as people thought it should. it's really been kind of lagging a little bit the last couple weeks. i think that's one to beat. i think microsoft is going to kind of get on top of that. if i had to choose, long microsoft, short twitter. liz: i know a lot of names have not yet reporte

this week, microsoft, tesla. they're both teed up. i think tesla will be the biggest influence on the overall market. eddie, i would like to know what you think will be the most important earnings report for the week and what exactly do you think will happen? >> charles, i agree with you, i think tesla will be the most important and i think microsoft's right behind it. look how much tesla has run up. they have to deliver a pretty strong number. the consensus on the street, some think there is profitability, and some think extreme losses. if they come close to profitability i think the stock will skyrocket in my opinion. that could be the flame that starts this next leg up. if there is a huge loss, i think there will be some severe short-term pain in the stock. personally my opinion i would buy the stock on the dip because i don't think you can compare tesla to other car companies. they are an a.i. and technology firm in my opinion. charles: sure. i've already gone on record last couple weeks, david, i think tesla will be the mother of

>> thanks. >>> and speaking of, slack is actually down 3% microsoft slightly higher. slack files an eu competition complaint against microsoft. deirdre bosa has the latest. deirdre? >> hey, jon. slack is accusing microsoft of violating eu competition law with its teams messaging app in a few different ways -- one, by forcing users to install teams because it is bundled with office two, by blocking its removal and three, making some functions inoperable with rival software so, slack, essentially, wants to see teams sold as a stand-alone product. and guys, this is a new twist in that rivalry that has been building for years now, when teams entered this field in 2016, slack posted a blog that said, "congrats. we are genuinely excited to have some competition." slack even offered some friendly advice since, "this is harder than it looks. slack's ceo, stewart butterfield, he was just on our air, guys. you remember talking to him a few months ago and he said this >> this perpetual question, which is, at this point a little buzz puzering for us, but at some point, microsoft'

liz: microsoft is at $203 right now, down just a fraction.ld you buy it here ahead of next week's earnings? >> i would buy it. in my opinion, microsoft continues to be the best pure play cloud name out there. i think what you are seeing in this covid environment, it's accelerating the cloud story. as much as we can talk about zoom and slack and some other work-from-home names, docusign, the heart and lungs is microsoft. awf from well with amazon is continuing to benefit. you look at year out, you will see a $2 trillion market cap on microsoft although i do expect the first trillion dollar company to be apple going into what i view as a massive iphone 12 super cycle. liz: you know i'm looking at apple right now. the chart shows we are at $386.44. it's up 87% over the past 52 weeks. the market cap stands at $1.6 trillion. i'm wondering do we see apple 400 by the time it reports numbers? >> i think it's $2 trillion cap by end of year, december 31. i think ultimately in terms of earnings, i view it as a shrug the shoulders in terms of the actual

what is your countermoves against microsoft? you said that's an interesting offering that they have, we don't do that. will you eventually be in a position where you really need to do something that is more intense with video because you've got 12 million. at least the last number we got, i know you have more than 12 million daily active users, but you guys haven't put out a new number since march. i would love to know how many and what you are going to do when they start saying we love slack but we need to see people. >> well, if you do what we do at slack the company, we are customers of zoom and i understand the question, but ultimately people use different software for different use cases. if you look at our largest customers and they are very large, veterans affairs, among a dozen other agencies in the u.s. federal government. our last quarter, we announced amazon getting a site license for slack and verizon, but yeah, there's financial services, health care, retail, as you probably know, pretty much every media company, al

microsoft. microsoft went into its earnings at 35 times trailing 12 months earnings everybody gets they are doing that i get we have to strike a balance. yes, there are going to be these periodic quakes in the space there's a lot of hot money in there. there's a lot of new investors and they will be volatile. the key to having made money in names has been to eat the corrections and learn to live with it. not try the out guess every one else about when they will happen >> well, i think given those names, i would say amazon probably would be the most i say that because of the fact we know how great amazon is. we understand the balance sheet as well. we also look at the p/e. you look at the multiple there and it's always been something of a head scratcher for everybody. if you're any type of value type person, it's really difficult. i know steph has jumped in there a couple of times and done well. i get it i think of all the names that's one of the names where if you want to talk about stretched, i

they did not at the end of the daybreak up microsoft. but they managed to change his behavior so i would say there is a pretty good outcome. >> is there other ways to change behavior then, other than breaking up -- if what you're going for is a behavior change >> there might be regulation and oversight, but i'm an oldfashioned free enterprise type i think you should try to find single strong issues and let competition bloom. i think if you look at google, you have your movies business and so on, those feel like different businesses people could be interested in a range of different things to invest in that is easier to understand. >> it is interesting you know, microsoft in terms of software sales went from like stooif to 40 in 15 years, and that decree flattened out. what do you do to growth or a share of sales >> i think if you spun them off, that would be good all around. one of the major headwinds aws is facing is that it is trying to sell it's web services. a very wide range of businesses and they're all increasingly competing. you

i think microsoft has executed well -- there are some differences i think microsoft has executed wellfrom the paradigm there are many, many big players globally. it's not just about the united states, it's about the global markets, asia, europe, etc. out it changess those competitive dynamics with respect to microsoft. flax, always good to have you on the show. thank you for looking ahead for us. coming up, we will dig into what this will look like, how it will play out on wednesday. all ceos will be appearing virtually. that's next. this is bloomberg. ♪ former top trader at goldman sachs is rediscovering what it takes to succeed as a long short investor as he leaves the capital through the covid-19 crisis. exclusively on "bloomberg front row." >> are they better or worse? i think any company that is going to have advertising exposure will be hurt if the economy does not do well. the question is, how much? what we like about those two is that as an investor who cares this rather than just soundbites, it's something we can gravitate towards. environment, most of all know yourself and m

microsoft, not absolutely perfect but only because microsoft spoiled us by huge beat after huge beats fast as people thought but incredibly fast i think analysts will raise numbers, not lower numbers and raise price targets, not lower price targets so if the stock comes in at all, what can i say? we got to buy the stock of microsoft. tesla, what can i say? i don't know if it's a stock i like to say there is always a bull market some and i promise to final it here on "mad money." i'm jim cramer and i'll see you tomorrow narrator: welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ i'm meagan bowman. i'm from ogden, utah. i live with my husband, wes, and our two beautiful daughters. entrepreneurship has always been inside of me. ever since i was a little kid, i was doing bake sales and haunted houses and any other way i could raise money for myself. since childhood, my life has been a little tough. finding a career path was tough, an

. >> that didn't help and we have microsoft earnings last night. that stock is down a little less than 2% this morning let's take a look at why a solid quarter for microsoft. overall revenue growing anderro 13%. the company's intelligent cloud bids that including azure, windows, posted $13.4 billion in revenue. that beats consensus by a bit. azure slowing up a bit. ceo had a question about that and the company's growth on last night's call asked whether or not he is concerned about it >> my own approach to this would be not to worry as much about short-term whether or not it is the growth number, i'm not trying to match an artificial number i think the world will come out of this and it will be stronger when we invest in this space >>. >> an ad spending slow down, and they closed that acquisition four years ago right now the gaming business had record engagement. people stayed home and they played they call it'd a breakthrough quarter for gaming, guys >> yeah, xbox and surface two were nice surprises. the other big earnings move in tech is twitter.

microsoft is back, the stock is up 60% from the march lows and has helped lead the sector as comeback josh lipton has more on what investors should watch hi, josh >> check out that stock. it's up more than 30% already this year. easily outpacing the broad mork. the ceo has strong tailwinds at his back, offering products and services that should benefit as more of us work, learn and play at home. the street thinking azure will continue to perform strong her they'll also focus on office 365, and teams competents with rival services slack just accused microsoft of andy-competitive behavior in a new eu complaint, but microsoft firing right back, telling cnbc with covid-19 the market has embraced teams, it says, in record numbers, while slack suffered from the absence of -- and then there's gaming, which represented about 9% of the company's revenue. it should also outperform as people now search for in-home entertainment due to the pandemic there are potential challenges, though, too. after this kind of stock surge, and analysts say there could be noise around certain business segments, t

you know, microsoft just came out with earnings, they're solid. it's got the azure and the teams and the halo holding in there, and of course the search market is not locked down by google and youtube. and helen of troy i really like. it's the company you own their products but you don't know its name braun, revlon, infusium, you've got their stuff in your house and their earnings came up 22% even in this time of covid some pretty good names and they've been doing well, we think they'll continue to do well >> sticking to the yellow brick road thank you both we appreciate it today >>> got news on mcdonald's kate rogers is joining us. kate, what's happening >> kelly, well, mcdonald's joining other big retailers and restaurants including starbuck's and walmart warning their customers to come in with face coverings. they say they're adding protective panels to front and back and it's opening its dining room services for an additional 30 days. in the beginning of july, they said they would take a three-week beat. it's now extending that pause for anoth

where will tech go from here where does an apple or a microsoft go from here longer term, i think, higher but they're so high already and so overbought. all these value plays are trading at trough valuations so my downside is limited there. i'd rather be a buyer of that than holding onto limited upside. >> let's get some more analysis on tech. it will be a big week for tech earnings the sector already hit hard this week carter says there are a few names in the space flashing even bigger warning signs >> it was a bad week for tech. not fatal, but tech worst sector on the week. what we also know is we're approaching a record that was only set one time before, which is to say the sector, s&p 500 technology, has now gone 96 sessions without having three down days in a row the longest stretch ever was 108. inve it was in the july to december period of 2004 after it ended, tech dropped 15%, twice the rate of the market drop in the period. let's look at a few charts what we know is that key tech stocks and by inference tech sectors and tech aggregates are all breaking trends. the first is apple

microsoft's leading the dow. amazon is up 4%. ibm tonight along with the busy calendar of earnings in the next four days. >> absolutely right. i'm trying to take a step back further and look at what's happening more broadly in tech i see this digital infrastructure trade taking shape today. look at peloton. it's up 9% you think about the digital infrastructure for fitness, a time when it's kind of hit or miss whether people can gather inn provides some of that not just in the bikes but in the apps spotify up almost 7% twilio, which provides payment and tracking services, data services, those apps up 7. service now, amazon up considerably most of those stocks also up quite a bit over the past few day days >> you're right on peloton, wedbush puts them at $66 saying a blowout quarter is possible. mark may joins us this morning to talk more about this. mark, good to see you. welcome. >> thanks for having me back >> after a week when people wondered if this trade was still fresh, is today another reminder that it's hard to keep this n

you look at a name like tesla that's pulled back, microsoft just came out with really great numbers.n a bit. i'm really not expecting anything different from that next week when you see the big names like amazon and google come out. but i do think to that point, if you see a pull-back in these names because this is the new normal of technology here to stay, i think you got to dip your toe into the water and buy some of these names on the pull-back. charles: i think you're 100% right. netflix is one that's already ready to rebound. we talked about the covid, new covid trends. there's one i want to talk about. shares of a company called pool, your swimming pool, up again today, up more than 43% for the year. demand for backyard swimming pools is surging. is this something that you chased? i feel like i missed this but i also feel like if i buy it today, i can make money on this in the next week. >> yeah, no, it's so tough because like you said, everyone has played -- we talked about toll brothers, talked about sherwin williams, everyone is looking for some way to capture on this trend.

. >> right tonight is microsoft, also tesla.ou know, listen, we've said it many times, it's not a stock market anymore, it's a market of stocks and it's a handful of stocks that we are really talking about. yesterday, jim, we did see a little bit of weakness in some of the names you just mentioned but overall that has been the story of this market many of the sectors down 10, as much as 20%, but the biggest name, the mega cap names have performed extraordinarily well, leading the average, higher for the year the s&p up .82%, it's the nasdaq that really is just incredible, up 19% this year guys, certainly talking about vaccines is important, we do it and i assume we will be doing it hopefully a lot of mornings to come, not just what we're seeing in early results, but the dod stepping in, they may do that for some of the anti-virals making their way through phase two and potentially phase three trials as well i have to mention china this morning. jim, the tensions are going straight up, kind of like tesla's stock price. the housto

the nasdaq comp down 2.3%, apple and microsoft both down more than 4%. "fast money" starts now. >>> "fast money" starts right now. i'm melissa lee. tim seymour, karen finerman, tim kelly and bonawyn eisen. plus, if you're looking for safety is gold still your best option and there were a couple bright spots in this thursday selloff >>> we start off with a major reversal in the market the dow dropping more than a percent with apple contributing more than 100 points to this loss there was tesla. after its broad earnings report, shares were up as much as 6% but end of the day down by 5 it seems like the momentum trade, the big cap tech trade got unwound a little bit today. >> yeah. is this another one of those rotation moments we had one in mid may and one in mid june maybe we have one here in late july if you think about the move in big cap tech, apple is down about 5.5% against the s&p in the last ten days. across the board you've seen this essentially across the tech space. if you look at small cap stocks, the iwm, the etf that tracks the russell 2000 it

microsoft says it makes video calls feel more natural.ed to promote social distancing in south korea. 300 drones were used in this display above seoul, which reminded people to wear a mask, wash their hands and included message to key workers. it was not advertised in advance to avoid drawing a big crowd. here in the uk, things are opening up. but we are still being told to only get public transport when it is essential. and that has led to a surge in sales of e—bikes. the leap has been unprecedented. in may, as an example, we sold more bikes than we did in the entire year in 2018. a decent e—bike can easily cost well over £1000. and there are hundreds of brands to choose from. but the vast majority of them run on tech from just one manufacturer. the number of bosch—powered electric bikes in the uk would be somewhere between 60 and 80 percent. but the difference between e—bikes is how they are powered. some have hub drive motors which track your pedal rotations and power the bike's wheels. today though i am using an even smarter crank dri