cloud revenue a huge driver behind the surge this morning, microsoft up more than 5% right now. alphabet is weaker by nearly 4%. all these numbers ahead of more results for names like meta, qualcomm, many more, jon a busy week. >> i guess the question is which one do you pay more attention to as an investor looking to survive and thrive north of this earnings week, the alphabet results or the microsoft results, dee i've got concerns. i think for the market overall, alphabet's results probably mean more -- here is my thinking. in a way part of mine is traumatize friday the dotcom bust marketing spend was a canary in the coal mine and the consumer got hit first and then you had this trickle through to business it makes sense that microsoft, which has a strong enterprise business, number two in cloud, is going to have some strong results, very diversified business if you look at the more personal computing group exposed to consumer pcs, if you look at what happened with xbox. if you look at marketing within linkedin, those areas were weak, sort of lining up with the weakness in you

again, microsoft and google reporting tonight. in overtime to break the numbers and get reaction stock reaction, ge, steph, let's do it. stock is down 11%. new 52-week low. most closely followed analyst on this stock says for the stock a miss, plain and simple on almost all fronts it is now clear collapse in the forward curve on ebitda is inevitable to anyone with excel. stocks should be down today. he has a $55 price target on it, he sees significant down side from here. you defended this on the way down what's the story now >> i am buying it at 6, 7, 8, $10. i am buying it after it fell substantially a few years ago because he came in with a great reputation and great track record that doesn't change in my book after today. i think it is such an overreaction, i can't wait to add to it and i will when i can, when not restricted. go through the numbers they beat on earnings. total revenues in line free cash flow it was down $900 million in line, that was not a miss by any means. seasonality and they reiterated free cash flow from

do you think microsoft has to worry about increased competition?i think on the office productivity side, microsoft's lead is going to be tough to overcome for anybody. >> on the cloud side. >> but on the cloud side, look, there's going to be a lot of competition. i think what we've all learned over the last three to five years on the cloud side is that the pie is growing at a rate to support a number of winners. you've seen that while microsoft gained market share on a percentage basis, aws maintained dollar share. with google, oracle coming into the market, the good news for all of them is the pie is growing. this is a secular trend that still has legs i don't see competition as necessarily a risk any time soon for azure. >> kirk, back to microsoft really quick i mean, if we're in an environment where people are starting to write about a slowdown in office, where does it leave sort of the m&a mindset and the ability to dive into new verticals, activision? i just wonder whether or not you think this is an area they can continue to bolt on and add a

microsoft's dollars are easier because of that recurring base so we like microsoft, between the two, large going in they're continues to say they -- as the economy starts to soften, but as they say, it doesn't matter what the climate is, our job is to outperform from whatever, and they've been doing that consistently. >> another name you have a buy rating on. meta platforms, company formerly known as facebook. the stock is down 47% year to date it is an ugly chart. what gives you confidence this name will come through in this earnings, giving what we saw last quarter, and what we saw coming into the spring >> i think no one expected the quickness and magnitude of the slowdown i think they're going to guide really conservative. you've got to get through this quarter again with the q2 coming up, with a 50% comp. we expect them to effectively guide pretty low like google, they had a tough set upin q2, so you have to get to the other side of the second half of the year what gives us conviction is the stock is 13 times earnings we have seen other great companies going into pitstops and fi

specifically microsoft watching alphabet after the bell. john freeman is a vice president of equity research with cfra. nice to see you. the other part of the story is the dramatic selling pressure in the stocks. yes, there does seem to be cautiousness building, but even in the case of microsoft we are talking about a once loved stock that has lost momentum, so what are you keying in on? >> cloud growth really does spell the difference for microsoft. here's the thing i think a lot of people don't get. that weird dichotomy, high-growth stocks will be hit in these kinds of scenarios where you have a lot of macro listed uncertainty with things like inflation suddenly being a problem after not being a problem for decades. it's all going to hit high-growth stocks. but when every situation from 2008 to 2009 where software stocks roared back after that, when cloud adoption first started and salesforce started its large enterprise of customers. these kinds of situations can be , you can find really great opportunities. microsoft is definitely one o

starting with microsoft, we saw an aggressive performance, robust demand from microsoft acquired linkedin and directly wrote -- broker 34% year-over-year because of a healthy jobs market. really visual in the ground for microsoft, and xbox hardware sale, up 14% year-over-year. the gaming part of the business also gained in market share over the last two quarters. back to alphabet futures, missing by a half billion dollars on the streets. it's all about tiktok right now and youtube trying to catch up with the challenger platform. also a macro headwind because of the war in ukraine. alphabet still had a strong performance, similar to microsoft, up over 40%. dani: let's check in on how the markets are faring. let's see how the markets are faring in asia with juliette saly. covid challenges, corporate earnings, there's a lot of risks in the profession today. juliette: absolutely, and for the record, i am not on tiktok. we are at a 21 month low on the benchmark index. concerns about further lockdown in china, and we've seen some upside in chinese markets on the back of that infrastructure pled

microsoft, the breakdown in google that jeff pointed out, he's seeing some of that in microsoft, that guess the bottom line question is there still to come a flush in big cap technology which means another flush for the markets overall? >> that's my view. i think these things trade -- they vtrade very heavy if you think about valuation, let's go to that, even if they get back to 20, why wouldn't they go through that why wouldn't valuations flush through that in this environment? every other asset class has gone beyond what everybody expected so why wouldn't you expect equities to do that. some people might try to buy the dip, but, again, going back to my view that i think rates go a lot higher than the market has priced in already, i think you have a problem with tech. >> coming up, looking for more tech trades, good. we have got options for you. that's right we're keeping up with the qs on "options action. traders break down their monday morning playbook what should you be watching? much more "fast money" back in two. >>> welcome back to "fast money. markets ending the week firmly in

painting a different picture is microsoft. that was a top and bottom line beat they put up an upbeat third quarter forecast microsoft shares are up nicely, almost as much as 5% you can see that all morning and all day right here on cnbc. >>> emily tan is in hong kong with the overnight trade and julianna tatelbaum in london let's start with you it shocked investors, but the markets, they held up okay. >> oh, we had the markets, brian, in asia ending mostly lower on wednesday, investors remaining anxious over the process of the rate hikes t the ukraine war and economic slowdown and covid in china. japanese markets closed at a two-week low, down 2.1%. f fanuk down say pore yeo and kirin with losses the stocks closed down more than 1% sk hynix fell. australian shares getting dragged down by tech as well as banking stocks that's after inflation data stoking concerns of a rate hike. core cpi surging to 2.7% outperforming were the chinese markets. coming off a two-year low, hopes that the country would prioritize its economic growth

i was up in the air between microsoft and nvidia jenny was trying to convince me to go microsoft, ourest holding. i want to win this i am going with nvidia just because of the duration of this i think microsoft outperforms in the short run, nvidia to the super bowl, i think that's the winner chips are the know how in everything driving the new economy. and it is well, well off its highs. that's where you want to be. >> all right few pennies getting at it there too. steve weiss, looking to a financial stock and it is? >> goldman, sachs. the reason i went to goldman, i thought it probably had the least amount of data, that you're going to see the curve start to steepen, you'll see the calendar which has been dead since the beginning of the year open up. and that's high margin business. plus they have a lot of growth initiatives. i believe in david solomon and his stewardship of the company i think it is a growth vehicle and it will do quite well. i don't know if it will be the top performer, on risk reward basis, it is very attractive. >> i can't wait for stock draft. don't miss it. 2:0

better report out of microsoft. looks like a reaction to what you are seeing on the back of yesterday's nearly 3% decline in the s&p 500. we have continuing yields up higher seven basis points. you have the euro-dollar, when you see that interest-rate move, you are seeing the dollar even stronger. parity potentially on the horizon. we will end with crude down .8% even as we talk about the inflationary environment. growth concerns are weighing on the commodity. we start with the tech picture. microsoft and alphabet shares moving in opposite direction. here is bloomberg intelligence senior analyst. 46% growth in the asia business. how long can they keep it up? >> police for a couple of quarters there should not be an issue. --at least for a couple of quarters it should not be any issue. but with the scale and size, we think the growth rate goes down 3% to 4% potentially in subsequent quarters. kriti: i'm looking at $104 billion on microsoft balance sheet. how much more of that money can they spend? not does not take a

you saw what microsoft did.te fears of a slow down what they did in the cloud was so substantial, the stock is higher today. another example of a company you will look at the year from now and you will say i had the opportunity to get in at a more attractive valuation when there were things to worry about, worries about the consumer and the growth businesses amazon has, but the cloud is not when i'm worried about. guy: how do you think about apple? looking at the numbers this week, what is apple? in the numbers it's a company increasingly migrating away from being a hardware company, but it is still predominantly a hardware company. is the market getting to the point now where it can understand of services business? how do they fold what just happened with netflix into the narrative? i'm trying to think about how you value apple as a services business and how that is different to apple as a hardware business. mark: it's a great question and i think we will know the answer in a bit but you phrased it properly, nu

microsoft and alphabet will be leading things off today.s for a preview is o ur reporter that covers these companies for us. how high is the bar this quarter? >> i think it's about what management will say on the call about future demand. what's in the bag has already been done. i'm not concerned about that. the question is, what is the tone about future tech spending coming into the second quarter and a second half. guy: how big of an impact would a positive message have here? the question we asked at the top of the hour is whether or not we are seeing earnings -- whether the macro environment is the dominant force? even if there are good numbers, is the macro impact of higher interest rates, will it be so great that the -- will continue and that will be the ongoing narrative? >> you are right, the biggest thing is inflation and what it does to interest rates. but if they come out and give bad guidance along with inflation, obviously that is worse for the stock and valuations. one thing we wrote today is if you look at software names, comp

let's talk about the cloud and microsoft. how is google cloud doing with respect to microsoft? i know it is still in third place. daniel: yeah, google has been competing, and we've seen oracle with the uptick. they still came in over 40%. the concern is that it still not profitable. they did narrow losses in the most recent quarter. i still feel the company is willing to make those capex investments and they understand their ambitions are not to be in third place. their ambitions are to compete and to be on par or above the competition with azure and aws, so they are going to have to spend big. the market has to realize it's going to take some time to get there. some of the key partnerships, investments, market cap are all indicators, and 40% growth. azure is still growing at 40%, so that spending is not necessarily accelerating their achievement of parity with azure, and we will see what that does later this week. emily: which brings us to microsoft earnings and it is a beat. i wonder if you think they are better insulated from macroeconomic headwinds and uncertainty that we a

the market is going to gain alphabet microsoft ahead of the reports "after the bell" you cannot miss that. also talking about warren buffett he used to be the world's richest man he is now poor baby number six at age 91 he is throwing his doors open to berkshire hathaway in the shareholder meeting this weekend after a two-year hiatus, we will spend the weekend with warren and omaha nebraska as woodstock precapitalist return nebraska governor pete ricketts on what the annual event means for the cornhuskers as president trump plans his own competing event just down the road, working to tell you about that the all electric f150 assembly line, the very first one will get instant reaction on the electrifying occasion, breaking news the fear is here, take a look at the vicks the volatility index blasting to the 30 ceiling. it is up 14.5% with the risks and worries in the strike of the heart of the bull market for now. let's pick it apart and look at the nasdaq at the low the tech heavy index 426 points, wiped off the board at the moment down 343 points, s&p down 78, was down 2% now down 1.

by the hacking group, which microsoft calls strontonim, and also known as fancy bear.shing emails to ukrainian organizations as well as targeting governments and think tanks in the european union and the united states. the company redirected those domains to a sink hole controlled by microsoft which allowed the company to suppress the russian activity this isn't going to put the gru occupant of the hacking business all together, but it does remove infrastructure that the russians were using in this campaign. microsoft says it's part of an ongoing effort, and they have used this process 15 times before to seize control of more than 100 strontonim controlled domains. this is a sign of the times with american companies going toe to toe against the russian intelligence services. fascinating. >> and fancy bear has been around for some time why didn't microsoft take this step sooner? >> what microsoft said is they have done this before, but this time, they saw this opportunity and they went after it microsoft has a pretty aggressive security operation and they have been doin

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microsoft topped out in november-ish it is sideways ever since. and where do you buy it.nto earnings on the 28th of april. >> the notes about this note was talking about channel checks and discusses with ir. that is interesting because sometimes ir will give the street a hint and sort of soften the street up, the numbers will come in light. that wouldn't shock me if that were the case here so, i think maybe they have -- not maybe it is not just an educated guess maybe it is firmer than that. >> the bar is high i mean 19 to 21% for the last six quarters in the second largest business which is massive by any measure so, i think that could be. it is what ir will do quite often and what is notable is that the long-term moving averages are slanting down the negative sloping 100 days not something that microsoft has had forever and it just tells you that what guy had said, that it hit the highs back in october of november and and the bar is so high for clearly one of the most defensive high quality names that you could own but the fact that it is down 10% in the last five sessi

visit snhu.edu >>> take another look at microsoft today.om uba warning 365 growth deaccelerate microsoft, the worst performing of some of the bigger tech stocks carl, you know, we're noting just a few days ago that microsoft is now more than half a trillion dollars in market cap away from apple. yes, there's this office issue but they just closed the nuance deal they've got the activision blizzard one on the burner we'll see where that goes. there are a number of different thesis that one could focus on in microsoft with growth going forward besides office >> indeed. that's you know, 3.5% on microsoft is going to get your attention and we mentioned the ubs note we now believe it's prudent to begin modeling a deceleration given the combination of the pandemic, work from home boost fading and office 365 penetration getting close to 80%, jon they do point out though that their checks argue that google cloud leadership has all but given up trying to displace it at the king. >> there's talk about google docs and sheets ten, 15 years ago and it w

can microsoft save this market? we hope so. we have special guest senator tim scott what needs to be done for order in the united states and the world. a very special show. all that and so much more on "making money". ♪. charles: so as you can see the market in full retreat today as investors continue to grapple with how to assess you know, the really what is going to be record federal reserve tightening. deliberate attempt by the federal reserve to curb our economy, not break it. meanwhile they're increasing signs that maybe the economy is slowing and breaking on its own. also early pressure on the market, increasing, earlier today, when the new home sales came out. we saw a decline of 8.6%. the street thought we would only go down .6 of 1%. prices continue to surge. the average selling price over 500,000. here is the thing, supply is up big time. nasdaq is center of attention getting absolutely crushed. megacap growth names continue to move down sharply even though we've got a nice decline in the 10-year bond yield. that is n

and that's the story around office going forward, using that pricing power microsoft has in office as they run out of room to sign up new customers once we get on the earnings call, i'll be back with more >> steve, keep us posted the declines in the afterhours, on top of 3-plus percent declines earnings, tim, not too bad here. >> in google's case, down over five sessions. a disappointed by youtube. when i think the ad revenue and think of google, and a company that's still going to grow 20% maybe this is a bit of a disappointment this is a company that is a laeler, 29% in a $660 billion global market. it's a company that should not be thrown into high multiple tech land. i'll $140 a share next year, a 16 multiple on 23, with big buybacks coming. look, half 6 the s&p reports this week in a market that's freefall this is extraordinary crosswinds in fact, i think held to its own standard, these numbers were not bad at all. >> they weren't. it's not about the valuation of these particular stocks, but a rerating the ever the overall markets, karen what did you make of the quarters in the c

peterffy will join us and top tech analyst pulling back ahead of earnings including alphabet and microsoft down 1.5 and 2.3% reporting later trait to the market sell-off and the key question for investor, is it a buying opportunity or is there more pain to come? joining us phil camperelli and eric john stand. good to have you both. i know you're on opposite sides of this trade. bill, i'll start with you. harder to make the bull case on weeks like this week and months like this month and on years like this where the nasdaq is now 22% off the highs. what's your case >> yeah, sara, good to see you good to be with you again. listen, we fully acknowledge this is a rate hiking or normalization cycle that not many investors have ever seen before there is 100 priced in for three basis point hikes in a row and 250 for all of the year. what makes that jarring is as recent as december the fed thought we'll do three 25 basis point hikes. go back to '94 to get anything like this. why is that clear or key because in 1994 there were no faang stocks there was not even an internet so i think that false sen

microsoft alphabet, that would be google, lauren, would you start with microsoft.ee up 4% this morning, the highlights from the report. lauren: they grew all 3 of the major segments, they raised their prices in the quarter and still grew 17% and windows grew as well. so i'd make the argument that the bulk of microsoft's revenue is recession proof. it's resilient, it was a $49.4 billion revenue quarter for them. stuart: okay, alphabet, not so good, down 80 bucks. the youtube division, i thought that would be stiller but apparently not. lauren: the ad sales on that division is going down. that's one theme because of russia and inflation concerns are starting to pull back, you will see likely when meta facebook reports. the other is cloud business, it's popular but not profitable. that's the problem. so we will see tonight when we hear from apple and -- and meta, sorry, not apple, from when we hear from meta tonight. are they going to go more the way of microsoft which would be positive or in this case google? stuart: i'm just looking at the highs, google the high was

in the premarket, down about 4/10 on microsoft.month of april has been tough for some of the big names. everyone is talking how important earnings are through the week. tuesday and wednesday facebook then amazon and apple. euro dollar has a one dollar six and handle. in 2016, we had a $1.03 handle and i argue that would be an objective for a weaker euro. it could become a problem given where inflation currently is and the ecb taking things more slowly. tom: i agree with that strongly that this is a radically different point for the euro and for everything else out there. 6.55 on the u.n. and the correlation between euro-in, low wall street has it tattooed to its brain. jonathan: i don't know where this is going. euro-dollar could be breaking down to charity. tom: that's part of it. jonathan: can the ecb set out this rate hike? tom: my experiences they get overcome by them. the real issue is you get a 104 euro and the story suddenly changes. let's continue on the american economy. we are in a fed quiet period. what are they studying

microsoft rebounding from losses earlier.irst-quarter earnings did pretty well, cloud services demand looking strong. twitter, we continue to watch. we are hearing that elon musk's plans to buy out the company will come with a $1 billion termination fee. we continue to watch alphabet, perhaps peering back some of those earlier losses, but that makes in earnings really hit the stock after hours. haidi: and of course, the focus on tech, alphabet reporting first-quarter sales fell just short of analysts' estimates, a rare mix for the tech giant. . let's get to our west coast reporter ed ludlow. ed: overall revenue growth was 20%, $56 billion in the first quarter. the street was looking for $56.1 billion, so it was a modest mix of estimates. in europe, they saw the headwinds from the conflict. there businesses where they place ads in other areas beyond google search. and youtube was really interesting, revenue came in softer than expected. there are two issues here. the first the executives talked about was the changes that apple

i have four items, two minutes hard to do microsoft, alphabet, meta. >> unbelievable, microsoft >> and you, andrew, no matter what kind of compliance we have, no matter what people are looking at, you can still have a guy -- you cannot predict fraud. i think that that is the great lesson that the government has to recognize we can't predict fraud microsoft, what can i say? azure amazing. amy is great there were clowns selling the story before amy she's always stabilized the stock. i think alphabet is terrific did we think ukraine was annexed to germany there are countries in between gm, i think she did a good job, people feel like she didn't sell too many cars, raw materials boeing, it's a duopoly >> jim, you did five items in two minutes. thank you. we'll see you in a couple minutes where you'll probably get ten. >> mattel? real the guy's booked tonight we cancel? if so, i have to scramble and get andy jase. sorry. i referred to that interview 100 times. 100 times. >> thank you, sir. >> you're welcome. >> see you in a little bit >>> joining us right now for more on the markets is jim

it's a tale of two techs microsoft soaring.chinese internet stocks doing well, pinduoduo higher salesforce is rebounding but meta, alphabet, netflix those names continue to get hit hard small caps down a third of 1%. still ahead, the cfo of another big earnings mover, spotify. what he makes of the street's negative reaction to that print. and after the break, mike santelli looking at the strength of the u.s. dollar into today's dashboard as the dollar induction jumps to multiyear highs. some of the top search tick ergs on cnbc.com. actually, we started out with yields a little bit lower on the session. we turned higher now prices there selling off microsoft a big earnings winner up 5.4%. boeing a loser, down 9.4%. tesla a 12% sell-off yesterday alphabet down had 4% on earnings we'll be right back. trading isn't just a hobby. it's your future. so you don't lose sight of the big picture, even when you're focused on what's happening right now. and thinkorswim® is right there with you. to help you become a smarter investor. with an

tom: we can't talk about this without microsoft. antitrust regulators within the european conduction -- european commission. what do you want to see microsoft change? michel: we are not the only one. a german company has a similar claim and there is also the u.k. company which has a similar claim against microsoft. we believe today that microsoft has a position where they are using the positioning in some software like 365 in the storage positions to impose their cloud solutions in a way that is not reversible, and that is the reason why we make this claim. we do believe that our customers deserve the diversity of the cloud and they should have the freedom of choice and should not be imposed by the stickiness of those solutions or legal constraints, tightening constraints of technological constraints where you have no choice. we are asking all of these cloud providers to be open, reversible, and treasure a bowl. it means a change of contract, a change of tightening. you want to take some data from one cloud provider to another one,

it looks like microsoft and alphabet are closer together than microsoft and apple any rumblings abouthy that might be >> it's fascinating. apple is to have the slowest top and bottom line. it is the one with the most impenetrable balance sheet and buyback story. microsoft has a bigger valuation premium than apple apple got expensive, but it was microsoft that people felt like it was a one decision stock, trading well above 35-times earnings what is going on is compression valuation that has hit the area that had richer areas. >> interesting where that compression hits and when. mike, thank you. >>> let's stick with stock for today's feed next guest saying cash flow is king and queen with names like alphabet and adobe are ones to watch. it's good to see you why adobe and alphabet in particular is it really the cash flow part or is there something else to it >> john, first, thanks for having me. when we think about what's happening in the economy, all much the doilsials being turnede inflationary environment, the interest rate hiekes upcoming, e feel like that environment has punished t

and earnings aren't helping either nasdaq's down 3% as google and microsoft get set to report tonight. both stocks having their worst months in years. let's begin with the latest on the losses we're seeing. >> we're below what we were yesterday. that gives you an idea of how things have progressed if you look at the dow industrials right now, down 453. now, to give you an idea at the elow thfz session, we were down roughly 574 points and the last trade off 1.5%. the real out sized dekleiner, maybe no surprise, it's more intense with the nasdaq compaused. we were down 425 points to give you an idea. tilted towards the low end but a lot more focus on the nasdaq and trade. if you're wondering what the lows were over the last year, the 52-week low, that would be 12,555 one bright spot in energy. far and away one of only two in the green, utilities being the other. but the spider sector etf is up today. and wti rebounding after yesterday's sell off tie high to conerns about china's economy. and if you look at the big tech trade, kelly pointed out this idea we were hyperfocussed on what's g

microsoft paid money to this developer a long time ago and no relationship.ell, theirs is no longer actually a related problem. here is more in another in early march, microsoft itself suspended the sale in russia of a lawyer about the past vedomosti newspapers note that the closure of access to the catalog of monotype fonts does not mean that now russians are forbidden to use them. ain, volodya thank you all. thank you. we have just one of these fonts in the folders. so we use, we will use. thank you, not the trunk, i am with an economic review of companies that, due to sanctions, leave the russian market, partially occupied by our manufacturers. the best food for kids. toys even make diapers with us, well, work in conditions growing costs and limited supplies are helped, for example, by the free port, vladivostok, where a facilitated business regime operates, sergey will tell about how, where and how children's goods are made . goods for children's hygiene in just one minute at the vladivostok enterprise produce 420 products. every month, millions of packs

one of the things i think about both alphabet and microsoft. the megacap earnings, they both have reasonably strong performance and strong fundamentals as your prior guest was saying, the the earnings are reasonably attractive cloud, advertising, and e-commerce, it's three big pillars for alphabet that look pretty resilient today. >> right, but kanyi, what you're talking about, those secular shifts that are still impact, especially when it comes to cloud names and even chip names, which are getting hammered in the current market environment so, you know, what do investors do in this do they hold onto cash do they sit this out typically, is this a time to look for opportunity >> if i were an investor looking at the public markets right now, i would be ready to look for opportunity yet because i do think that we do still have a downside ahead of us and i think it was dan niles earlier who was saying that, i actually agree one of the unfortunate things about this, is that if either alphabet or microsoft underperforms, you're going to see a disprop

the microsoft results exceeded analysts expectations. it's cloud business performed particularly well. well for a closer look, we go now to our financial correspondent, yann's quarter in new york. now, yes, tech companies had a blockbuster year in 2021 thanks to a greater demand for software, for digital advertising space. due to the pandemic pushing people online. what do these latest results tell us now? well, overall, it does tell us that what happened in the past couple of years is not that easy to repeat. so how much can those huge tech companies grow? look at an alphabet, for example, they did have an impressive revenue growth of that 23 percent and they had to quarterly revenue of $68000000000.00. that is impressive, but investors will use to even higher growth rates, but that is tough to achieve. and also if you look at microsoft, for example, pretty impressive, what happens to the cloud business, but also there, it looks like growth might be limited in the future, and that's why investors are not overwhelmed by those recent numb

emily: later, an update on that microsoft activision deal.l street seems to be betting it's going to fail. we tell you why next. this is bloomberg. ♪ xfinity mobile runs on america's most reliable 5g network, but for up to half the price of verizon, so you have more money for more stuff. this phone? fewer groceries. this phone? more groceries! this phone? fewer concert tickets. this phone? more concert tickets. and not just for my shows. switch to xfinity mobile for half the price of verizon. that's a savings of over $500 a year. switch today. emily: welcome back. anyone concerned about falling chip demands need look no further than qualcomm for reassurance posting better than expected earnings. thanks in large part to the ceo plan to diversify the company beyond smartphones. he joins me now. you ended the call by thinking -- banking analysts --thanking analysts but reminding them welcome is more than the chip company. -- reminding them that qualcomm is more than a chip company. >> we are now growing across all business in a number of differe

after the close, you will hear from apple bet and microsoft -- from alphabet and microsoft.tomorrow. i can hardly wait to hear from mark zuckerberg. tom: just think if they merged. jonathan: meta and what? alphabet? tom: alpha meta. [laughter] jonathan: i cannot see that happening. tom: jon and i watching em. we now bring it up with joe mathieu. it is something a bit off the radar, but it just won't die. the gentleman from west virginia will not let the keystone pipeline die. we are balanced and all that. where is the keystone pipeline in the zeitgeist of mr. manchin and everybody else in the mathieu world? joe: it is bubbling. we would not be having this conversation right now if the white house took that more seriously. the $1.5 trillion that joe manchin said he was open to passing nine months ago would be even more than likely generated right now. so i do wonder if there is a little bit of remorse at the white house about this. but joe manchin says he's talking to republicans here about a climate energy bill so that democrats would not have to use reconciliation to do it.

so you should tell my microsoft? sell my microsoft? a portion of your portfolio it is, stuart -- stuart: a lot. [laughter] >> you know with, look, this is going to be a difficult environment for anything with a higher multiple even an outperformer like microsoft. you have slowing profit growth across the s&p 500, you have slowing growth across the global economy, decrease liquidity, runaway inflation. that, you know, with all those things going on, i'm surprised the market's not 15-20% lower than where it is right now, but so that gives me a little bit of hope. and the labor market and the consumer are still doing fairly well. the lay labor market is absolutely on fire. it's hard to be a hero and sell all at the top, buy at the bottom. so i'd be lightening up on these volatile, high multiple stocks on days of rallies, and i'd be buying these high quality names yesterday or even today. stuart: you've got 30 seconds to tell me you think elon musk can transform twitter. >> yeah, he absolutely can. it just depends on how committed he is to

microsoft is up 60%. even walmart, from a retail/e-commerce perspective is up 25% in that two-year span, an interesting way, jon, deirdre, to look at amazon from a lens of valuations from a number of different viewpoints it's tough to call given amazon's growth profile last two years. >> what's interesting, dom, i think, is that amazon has the strongest cloud business in aws, and nobody's questioning that, through all of these labor costs, and logistical issues really, it's the e-commerce and logistics businesses, that account for this valuation discount, and they're probably giving more of a valuation discount, in a way, than is apparent in the charts, right? >> and not just that you have to look at the reasons why that valuation discounts's happening with regard to the e-commerce, the consumer spending side, and of course the transportational logistics side. those sides are maybe more exposed to some of the cost pressures that could be anticipated over the course of the next couple of years, perhaps, we

apple and microsoft too to be frank these are not high-volatility names relative to other technology stocks so the options premiums in those specific names are not going to be quite as expensive. if you are looking at higher flyer types of names netflix, tesla, for example, this would be kind of trade better suited to you if all you have is apple a very similar structure would make a good amount of sense same for microsoft and it's not going to cost that much more really because those aren't particularly high implied volatilities. >> let's switch gears check out xbi biotech etf dropping 17% since january, now down 32% in the past year but tony sees a long-term break out brewing in the biotech space a lot of investors want to hear this, tony how are you playing it >> yeah i think we've seen a constructive bottom bottom if in biotech. first chart we see xbi, the etf, has declined by more than 50% over the past year or so but over past two months we have completed this bottoming formation, inverted head and shoulders, that really targets as far as 118 to the upside. if we look at lines

microsoft cybersecurity cloud even the google part of cloud and amazon.ok at apple, more tesla in mind. the pent-up demand cycle for iphone the continues to do next year's underestimated along with the services side. services beat the whisper. that is the story that is emerging here. apple continues despite everything. we are seeing demand outstrip supply. >> we are getting details on elon musk pitch when he made a pitch to buy twitter that his pitch featured job cuts and other ways to make money. certainly hinted at wanting to move away from advertising, being more interested in this obstruction model. his pitch does focus on turning it into a more profitable business, boosting cash flow, monetizing the platform. he also brought up his track record at tesla and spacex. spacex has proven his success. what do you make of that? >> from a business model perspective, i think they're going to apace obstruction model. in terms of some of the job cuts some of the cost-cutting, this is a leveraged buyout. the only difference is he is leveraging tesla shares to do

the two biggest constituents of the nasdaq 100 in order are apple and microsoft. collectively they represent about 22.5% of the index and if we start seeing basically broad global slackening of demand about smart phones and pcs and of course the potential to see the push through of increased cost through the supply chain eventually to customers, who by the way we saw some data this week, might be spending about $5200 more on the average u.s. household year over year due to inflation alone these things start adding up. to me i think this is the time you're going to want to start reducing your elf po sure. that was about $10 so we'd be spending about a quarter of the distance between the strikes we site that a lot but maybe we can put some other numbers to it to give it some context. that means if it falls about 11% or so you're going to capture about 8% back in terms of the value you're going to get from this, so it's going to mitigate a pretty significant portion of a decline should you get one down around 10% to 12% i'm not saying that's what's going to happen bu

what you have left is google, apple, microsoft microsoft showed yesterday, they continue to deliver on azure, linked in, even games. i think that over the next few years. there will be new names that do better than faeng names. >> go to the negligence investment committee calling joef ee negative joe ter november a he says don't believe the hype my words, not his. expressing point of view where the market is heading. >> do you realize how long i am in the portfolio of equity names? i am fully invested. we had dramatic reversal friday. recovery attempt monday, failed on friday, sold some s&p futures on the failure monday. you have to do that to protect against risk i like what we hear from earnings i am not getting out of microsoft, alphabet, apple, i am holding on to these names and everything in the portfolio. those are the names that have a v shaped recovery. but let me ask you, scott, dollar is at a five year high. what's the message on earnings the economy is on fire federal reserve is way behind. and until they catch up, the market walks on egg hels >> euro is a five year low vers

i was a bit surprised on microsoft's numbers on the cloud.dest deceleration in the next quarter, which is unbelievable. close to 50% growth again going into the next quarter. this bodes well really well for aws. tom: we have to go back to the basic question i always ask because it is something that i don't understand, don't think the public understands. the size of the universe of these companies, your timeline out to where that universe becomes full, we are out two or three years. you are out a decade? tom: the way i think about it is, the moat for these businesses are getting stronger day by day. the old fallacy was they are hitting a trillion in market cap, they cannot go any bigger. i don't think that will happen anymore. tom: we spoke to fidelity. a contra fund is a lot like the index, ex-semiconductors. 40% of his portfolio is computer, technology. what percent is that going to be in six years, 60%? anurag: if he is allowed to, that is probably going to be the case. tom: at this moment right now, is apple under owned because lawyers are

vees issau, microsoft, the biggest contributors >> down 7.5% and that's off the lows . >>>for my next guest says visa showed us the money and you need to look long and hard for other stocks just like it. here's with the pick is the chief equity strategist. and good to see you. you know, visa a, with in some ways, is a barometer there's more than visa investors breathing a sigh of relief you think this shows how important stock selection is >> absolutely. it's nice to be with you again it's a very interesting report and we own visa and i was pleasantly surprised by the report because there's so much head winds in terms of international travel and war in ukraine and they were able to boast a rate number. it's ironic that boeing, who relies on international travel as well, is suffering right now. we think that's somewhat short term and may prove to be a long-term opportunity. >> i don't want to ask you early on in the segment. we got to talk about boeing. if stock selection is more important than ever, then getting it wrong hurts more than ever, right? i know we've talked

so she called us, we had a word with the microsoft rep who reached out to susan. they refunded the recent $69.99 charge. susan saw a lesson to point to here. she pointed out that if she'd overlooked this annual charge, shame on her. this is why i like bank and credit card alerts so very much. can you see each and every transaction flash across your e-mail or inbox. and when one of those notifications makes my head tilt i scrutinize it immediately. our team is available at nbc bay area.com. click the responds option from the main menu or call us,at88-996-tips. >>> home buyers may start to get a break in this red-hot housing market. the national inventory of listings declined. and some sellers are also lowering their asking prices. higher mortgage rates are also deterring home buyers, but home prices are still well above what they were in 2021. >>> today a guilty verdict in salinas to the man who confessed to starting a fire in big sur. it destroyed 128,000 acres, 14 buildings and may have killed several endangered birds. the man said he did it while tending an ille

microsoft and alphabet after the bell and u.p.s.nd general motors today and more outlook as more growing worries as we move ahead for the year we have greg hahn with us now. greg, how closely are you watching earnings and guidance >> we are watching them close. we are actually looking at a couple of names. microsoft and google which are both in our portfolios >> what do you want to hear them say about the future valuations have come down. t have they come down enough to reduce expectation >> we will never been able to c the bottom microsoft and google both fit that factor. the answer is yes. we will continue to add to them. we have room in the portfolio to add to those positions brian, you can pick up microsoft at $10 a share on earnings, that's down from 32 or 33 times earnings last year we have some value there for a stock that's growing the same with google >> just because it comes down doesn't mean good value. the valuation comes down five points business is slowing more than that valuation will come back in line you still see s

that is according to a report from microsoft. that includes at least six nationstate actors who have launched 230 operations against ukraine since before the invasion. microsoft says it shows hacking is playing a bigger role than previously known. groups allied with russia had been preparing for the conflict since as early as march of last year. microsoft executive also says the company has seen limited espionage activity targeting nato and the seas. still to come on al jazeera. from the frying pan into the fire, why a bid to stabilize the cost of cooking oil could push food prices to a boiling point. in india, the hottest march since records began. ♪ >> we have what whether in the forecast. thursday not too bad. elsewhere largely dry. a disturbance up to the northwest toward christmas island. that is going to become a next hour. you can see the wetter weather moves across southern australia through the heart of the country down toward the western side. more showers in the forecast for sydney as we make our way through the weeken

haidi: for microsoft, it was a narrow beat, but the cloud division remains very strong.d: yes, microsoft is a cloud story. the sell-side reaction, shares are higher in after-hours. the cloud fared better than expected. it is still a driver of growth, solidly in the number two spot in the market behind amazon's aws. they had some other spots as well. it talked about the growing market share in videogames. xbox is doing well. but it is the subscription in digital services for gaming driving that. we have a headline crossing the bloomberg -- microsoft expects fourth-quarter revenues to be softer by about 110 million dollars, directly relating to the conflict or war in ukraine. that is interesting, the impact these tech giants are feeling from what we're are seeing playing out in europe. haidi: really fascinating as you make that connection there. our bloomberg west coast reporter, ed ludlow there. earnings are becoming a drag on markets, investors weighing whether companies can withstand tightening fed policy. for more analysis on that, our correspondent for asia and mliv c