of microsoft have been invited to a huge party in a tent over there on the microsoft campus.ut of there? you got it. rolling stones' "start me up." >> windows 95 was the most successful software launch to this day. everybody, whether they really wanted to or not, went out and got windows 95. >> getting the rolling stones to allow their music to be used in the ad launch tonight is the sign of a company at the peak of its powers. the challenge for microsoft is to stay there. with the race now on to exploit the internet, it may soon be microsoft's turn to fear the competition. ♪ i've been running hot ♪ ♪ you got me ticking ♪ ♪ gonna blow my top ♪ it gets rid of the bugs plus is safe for use around people and pets. zevo. people-friendly. bug-deadly. (vo) get business internet from verizon, the network businesses rely on. ditch cable and switch to verizon business internet, with fast, reliable solutions, nationwide. find the perfect solution for your business. from the network businesses rely on. ♪ if you shop at walmart, you get it. ♪ you know how to spend a little less to get a

apple and microsoft duke it out, and netscape and microsoft duke it out.pectator sport. >> in the mid-1990s, apple had a couple more ceos, none of whom really grasped division of apple. as a result, the company did worse and worse and worse as the decade progressed. >> with big losses in the last quarter, with profit margins shrinking, apple seems destined for a takeover. this is a computer that even has fan clubs. >> i just love the apple, and i always have, and i can't really say why. >> everyone's rooting for apple to somehow survive, but it wasn't an all clear that apple would be around at the end of the 1990s. >> the troubled apple computer company may return to its core in an effort to boost sagging sales. apple reportedly will name its cofounder, steve jobs, as its new chairman. jobs would replace a chairman who was ousted earlier this month. >> steve came over to apple, sold next to apple for $400 million. he had no ambitions at apple at all. but steve jobs was watching apple flounder, and he just couldn't help himself, and so he remade the company

pretty strong forecast from microsoft. looking ahead, an upbeat tone on both calls despite calling out the macro uncertainty and currency headwinds that said, how good were these quarters really? both companies missed estimates. these are high-growth stocks with slowing growth. microsoft talked about weakness in gaming. alphabet saw weaknesses in youtube particularly both missed estimates within their cloud businesses dee, currency has got something to do with this on both counts when it comes to microsoft, the core cloud business did grow, meeting expectations what's weird about this to me is not that the stocks are higher it's how much the stocks are higher given that usually in a quarter like this when companies sort of meet expectations, the stocks go down we have to explain what actually beneath the surface in these numbers this quarter is better than it looks. here it's almost like you're tempted to do the opposite. >> they're less bad than maybe expected. >> bad, but 4%, 5% up good. >> 4, 5%, they look like good num

>> that's a great point and gives us confidence in microsoft and our survey microsoft a great consolidation play, they have a huge breath of offering and they're bundle into attractive packages. we see that in indications of cios, looking to upgrade their office 365 subscription from a lower level to one that incorporates more functionality like video conferencing or security where you can get multiple functionalities at a price much more attractive than if you buy the smaller individual technology themselves so that bundling capability i think is a strong point of microsoft. they have a good price performance if you will. the other side of that equation, though, is that their solutions themselves have been getting a lot better it doesn't really work to consolidate if you're consolidating onto subpar products what microsoft has been able to do is improve the functionality of all their solutions to make it more attractive to do the consolidation for cios make the decision easier for them the they're not giving up as much going for that consolidated packages >> keith, the street got all worke

and jon fortt cutting forecasts on weakening demand, what that means for consumer focus names like microsoft and apple. plus, is the cloud recessionproof a check in on the enterprise side of things ahead of results from google and amazon this hour and then finally, ever trade crypto on coinbase according to the s.e.c. you may have broken the law. that story coming up later as well, jon. >> we'll start this feed with consumer weakness. walmart warning that shoppers are spending more but getting less because they're spending it all on food and energy higher margin items like apparel and tvs therefore not moving walmart shares plunging taking down names like amazon and etsy in the process and more evidence of a consumer slowdown logitech reporting a 38% fall in profit cutting outlook on slowing demand for webcams and gaming equipment, though keyboards and mice, things like that actually sell more and shopify shares also under pressure cutting 10% of its workforce, its ceo saying he expected surging e-commerce sales to continue, quote, it's now clear that bet didn't pay off. shopify shares done

microsoft hastens to do the bidding of the u. s. government because it knows. ready the u. s. government could make life very, very unhappy for if it didn't do so. thanks for watching our 2 international stick around for more world news and just about 30 minutes. ah. in east canter. russian state will never. i've stayed as anton ending northland scheme, devastation. i'm not getting calls all sunset for a week within the 55 when. okay, so 9 is gonna be the one home with we will van in the european union, the kremlin. yup. machines. the state aunt, rush up to date and split our tea sport neck, even our video agency, roughly all band to on youtube and pinterest. and with me hold me is the aggression to day. i'm authorizing the additional strong sanctions today. russia is the country with the most sanctions imposed against it. and number those constantly growing. but i figure which of literally when was the cosigner as we speak on the bill in your senior? mostly mine the we're will ship. we're banding all in ports of russian oil and

anurag: alphabet is far more exposed than amazon and microsoft.t has far more susceptibility to slow down. the one think about all the three companies you mentioned, in my view they are stronger today than they were two years ago structurally, on a fundamental basis. in some cases they are trading below pre-pandemic levels. shopify's absolute stock price today is below what it was at the pre-pandemic level. there are a lot of concerns you are seeing. one could argue it's already in the stock price. kriti: let's talk about the balance sheet. microsoft,, apple, they are sitting on massive piles of cash that have not been the wood. -- not been deployed. anurag: they are moving money where they can in acquisitions. the regulators are not going to make them by large companies. microsoft is in the process of acquiring activision. we will see how that plays out. the other companies, it will be tough for them to deploy that capital to buy larger companies. the most logical way they can spend money is going to be through buybacks. kriti: thank you as alway

microsoft hastened to do the bidding of the u. s. government. because it knows the u. s. government could make life very, very unhappy for if it didn't do so. they're watching our to international. we'll be back with more news in just about 30 minutes. ah, no one else seemed wrong when old rules just don't hold any rules that you have to feed out disdain to comes to an engagement. it was the trail. when so many find themselves worlds apart, we choose to look for common ground. oh.

the three things netflix cited was the global reach of microsoft, the fact they say microsoft has the best privacy protections further user data which may be a little bit of a dig at google and they also cited this idea of flexibility down the line. you have to wonder if maybe this means netflix builds out its own capabilities, maybe they will shift some of that responsibility internally. but i think there's this revelation here and going with microsoft, they are going with a partner that is a leader on programmatic ad sales, more of a competitor to google and what facebook does over at matcha. if anyone is competing for these ad dollars right now, it would be the googles and meta's of the world, they will have to invest more in the big sponsorship, big brand deals like disney would do. if you are selling a bunch of ads on disney+ or paramount plus or peacock, you are more likely to work with brands in a similar way as you would with traditional linear television, making sure you are locking in big brands across various shows. they will have to weld out that part of it now and it will

then, they will cut the spend on a microsoft. i think that is a little bit longer as we get deeper into recession. right now, i say the same way, this is a trade. if you can get some green out of this post earnings tomorrow morning, i would say take it. i think these things are way too extended. the pull forward with a way to drastic. i think you have to take the profit. >> let us get more on these results. great to have you with us, jerry. >> thank you for having me with you, melissa. >> you saw the stock turn on the dime with the comment about not seeing weakness in large corporate deals. are we jumping to conclusions? when do large companies scale back on their spend in a cycle? >> that is exactly right. that is primarily the reason we saw microsoft reversed after hours. investors are on edge appropriately so. i think there is a lot of nervousness in the investment community, especially with mcdermott making the comments he did talking about four and a change headwinds impacting the business and slowing down. the cfo making th

microsoft's results are dimmer than alphabet's. we us are not great numbers in the cloud business when it came to google cloud numbers. they came in slightly below estimates. what we are seeing with microsoft is a little bit more alarming. it seems like these companies are having trouble figuring out if we are going into a recession or not or maybe we are already in one. it will be interesting. to see how these economic conditions play out over the course of these next several earnings reports. shery: when it comes on the numbers of economic growth forecasts, imf getting grammar on the april outlook. >> what we are seeing is all of the things we have been talking about since january. all of the risks to the economy are not abating. as they talk about a central banks starting to hike, we get this one day before the fed decision. here is what the imf chief economist had to say about the outlook. it has strengthened significantly, the world may teetering on the edge of a global recession. the growth for 2023 is down to 2.9%, overwhelm

microsoft, it's been a long time since i've seen a miss from microsoft. rally before we get the last or the worst of the earnings news i think is going to be a tough sell >> where do you see opportunities? what do you like? >> actually, we're looking at some financials, not just in the united states but elsewhere, names like nm group in europe. those names we brieelieve are w reserved and fixed income we see a lot of opportunity among cream of the crop corporates. you're seeing yields well over double what they were a year ago. and in the environment where inflation will eventually slow, those are name weiss we think w add to portfolios for years to come >> are you talking treasuries or corporate? >> all of the above. the ten-year at 280 is going to make anyone's quarter or a year or anything is a little bit of a tough sell add on that treasuries here can actually provide ballast what you're seeing in the last couple months is treasuries are able to provide what they used to provide, which is some balance if a portfolio and some small level of income, but

you look at microsoft down .2%.is interesting about it is they that it was a mixed bag. 1% weaker than expected. microsoft executives saying that the number is $100 million and $100 billion deals. it hit a record. they are calling it healthy growth. shares are still higher. 2.7% after hours on tuesday. the real focus is on search. they are talking about how travel in particular has driven a lot of the search activity on google which has helped hold up some of those cuts in the travel sector that are showing worrying signs. these two stocks have felt some pain. not as bad as the mega pack. we are looking to find the bottom in this market. one of the earnings -- they have a hand in everything. it is over the strong outlook for the current quarter. it has changed the mindset. texas instruments, according to their outlook, things are looking robust. >> i want to dig into the state of cybersecurity and palo alto networks threat intelligence. they are at with a new report into cybercrime trends and prediction and the impa

you own microsoft. do you have a problem with that valuation for somebody who scrutinizes multiples as closely as anyone i know >> i do have a problem with, and first off as a portfolio manager, you have to make a decision wading in the s&p 500, it's either 5.5 or 6% it's huge. the second largest company in the s&p 500. so if you don't want to own it at all, you're taking one heck of a benchmark list. my weighting in microsoft is one-half of my weighting in the benchmark. some people will say, okay, you're actually shore it i don't agree with that, but my point being, i'm about 2.5 to 2.75% weighted in. i think the best you'll get from microsoft going forward is the earnings per share growth, which is around 8 to 10%, depending on whose estimates you're going to use. you're certainly not going to get multiple expansion and to the point you're applying, yeah, the multiple doesn't make me happy. >> it doesn't make dan niles happy either listen to what he said we'll kick it on the other side. >> you look a

dollar and the strength shriveled behind google, microsoft and google and microsoft reporting in less than an hour and how will the rest of the tech fare report with the likes of amazon and apple? we're about to prepare for you all of it next with the closing bell ringing in 50 minutes. the claiming countdown is kicking it into high gear and we're coming right back after this. first psoriasis, then psoriatic arthritis. even walking was tough. i had to do something. i started cosentyx®. cosentyx can help you move, look, and feel better... by treating the multiple symptoms of psoriatic arthritis. don't use if you're allergic to cosentyx. before starting...get checked for tuberculosis. an increased risk of infections some serious... and the lowered ability to fight them may occur. tell your doctor about an infection or symptoms... or if you've had a vaccine or plan to. tell your doctor if your crohn's disease symptoms... develop or worsen. serious allergic reactions may occur. watch me. >>> okay. so with apologies to joanie mitchell, we're going to look at clouds from both sides. microso

microsoft doesn't look good. they highlighted the strong dollar. >> i think there were narrow misses across the board. people have been waiting to see when we hit the inflection point. these companies have been performing quite well. now we have a number of factors. shutdowns in china, the ukraine and russia story. there were narrow misses on the top and bottom line. the cloud number at 40% is still good. dynamic 365 the erp which is something i have been looking at, its enterprise software and that number stayed strong. other areas it seemed like narrow misses everywhere. when you mentioned with google, the ad market seemed to be stronger with alphabet than people expected. the question is do people outside of us realize we are in a recession? you saw prime day you look at the advertising spend, it looks like people are still shopping. >> just got off the phone with the alphabet cfo and she used the word uncertainty a number of times. i expect to get even more color on the earnings call later. she says uncertain

has allowed microsoft to take over much of the data processing. and you know that, that, that, that certainly is not a good thing. and certainly, you know, micro, the, all the ukraine has essentially, you know, handed out, you know, huge amounts of authority to, to washington. so this is just another example of the ukraine delegating the responsibilities of government to an outside power. microsoft as, as operated as a, as virtually as an armor of the u. s. government.

ah, microsoft to, under order from the u. s. defense department has been depriving ukraine of digital sovereignty by controlling communication devices in the country that's according to russian foreign deputy foreign minister, a leg suit. a mullet of microsoft is fulfilling the orders of the pentagon and us intelligence agencies to take full control of the entire information infrastructure of ukraine into private of any digital sovereignty to lensky regime, has provided microsoft tools for surveillance, provocations, false flag computer attacks. apparently the notorious id army of ukraine, which continues to boast about hacking servers in russia, is also the work of microsoft. his statement came in response to a report by microsoft on alleged russian cyber attacks. claims that the senior diplomat said were not based on hard evidence. he in turn accused the u. s. tech company of encroaching on the sovereignty of other states. microsoft, however, has insisted that russia has been committing cyber warfare. russian agencies are c

i think microsoft is, has, it's very close to the u. s. government and sometimes is a great deal of overlap. so certainly i think that the got the ukranian government at the b as to be half of the. ready us has allowed microsoft to take over much of its data processing and you know that, that, that certainly is not a good thing. and certainly, you know, micro, it's, the ukraine has essentially, you know, handed out, you know, huge amounts of authority to, to washington. so this is just another example of the ukraine, delegating the responsibilities of government to an outside power. microsoft office has operated as a, as virtually as an armor of the u. s. government. during the whole, russia gate controversy, microsoft issued reports that were very. ready for was the u. s. government government position. clearly microsoft thought it was important to cooperate with washington to avoid any kind of regulatory crack down by washington. and i would see microsoft activities in the ukraine as essentially roughly the same thing occur where micr

microsoft hastens to do the bidding of the u. s. government. because it knows us government could make right very, very unhappy for if it didn't do so. or that doesn't for me, the so i will be back within 20 minutes with another full infrastructure new say with ah, lou, the nuremberg trial ass irvin's on the housing head of a vast sabotage section to testified. on september, the 12th 1939, a chief admiral connors with instructed by 3rd ry foreign minister. a yell at him from reagan truck. oh, it's necessary to reach out to the ukrainian nationalists with whom intelligence had already had military contact to cause an insurgency in poland, which would have as its result, the extermination of poles and jews from the testimony of an arrested member of the organisation of ukrainian nationalists in the summer of 1943, i was indeed given a rifle in the village of sketch of a vod noise district and joined the ukrainian nationalist organization which committed mass, murder of po, churchy, no stand, no. it would be to let me reproduce skim

can i start with why microsoft >> i think, one, brad smith, the president of microsoft, is on the boardrectors of netflix. in retrospect that is kind of obvious. relationships matter and that's a deep relationship. i think also microsoft brings deep pockets they have no competitive business with netflix. so on the people's side and the lack of conflicts which everyone else in the industry somewhat has with netflix, that's the starting point for a deal. >> forgive me for asking, i don't think of microsoft as a big ad platform. what am i missing? what have they been up to? >> one thing to remember they own linkedin and they have a pretty sizable ad business they definitely don't have a television ad business so that's a real starting point for both companies and they're in it together now this is an advertising road trip, i guess you could call it. >> what is the mark douglas take on all of this i can see why people are saying, listen, you need to have a $5 a month offering because you're just getting too expensive and there are too many other options out there, but commercials -- i don't

so, you know, i love microsoft microsoft is one of my favorite long-term stock holdings yes, it's downoday, but when you look at the way that microsoft performs on earnings overall, you know, you have 14 out out of the last 15 quarters that it's beat earnings, 13 out of the last 15 quarters that it's actually tradedhigher in the eight-day time frame post-earnings, so generally that means there's buyers coming in after the fact microsoft is sitting down on a key area of support right at 250, and i will warn viewers 240 is a very critical area. with the $12 expect market--maker move it's expected we break to a new low this year but the thing is microsoft is relatively need on earnings. the biggest move over the last 15 quarters was 2.6% we're already down 3% today, so i think it makes to sell put credit spreads here and give yourself a couple of weeks in case we initially do fall. i'm wrong if it breaks 240. >> if it breaks 240, you throw out this playbook. the halftime panel last hour was much more negative on microsoft because of the valuation it sounds like what you're saying is that

alphabet, matter, microsoft, amazon, apple, microsoft up 4.5%. is below the yield for the recession indicator. new yorkers have been seeing a lot of shocking video but it could be applied to any big city whether the administration admit it or not there is a crime surge. this is a teenager who jumps a subway turnstile. a cop stopped man the kid takes a swing at him and gets the cop in a choke hold. it is a saturday night brawl, the teenager charged with assault on a police officer sunday morning he is released back on the street for carrying a loaded gun and crossbow in a car. this kind of thing is happening wherever the rules have become pro-criminal. the first instinct of democrat activists is to side with the bad guys and humiliate the police. they reporting buckets of water on police who could not respond. their hands were tied. after seeing mayhem in the streets, some are backing away from their defined the police policies but the damage is done. the victimhood mentality has taken hold. my guest is leading the charge against the work brigade

google and microsoft were very stable both on revenue growth and margins, then of course microsoft wasble to provide a very strong q3 guide which is exactly what the market wants to see. google was very strong on google search. it was actually surprising to see the company's strength on google search. tesla and netflix have actually signaled that we may have bottomed the fundamentally for those stories in q2 because they are guiding for delivery growth in the second half for tesla, and a return to subscriber growth for netflix in q3. so again, the market is looking for not so bad or better than feared. they do not necessarily need perfect quarters. google and microsoft were actually very strong. they have emerged as leaders during these very challenging macro times. and as tech investors, i would say that more companies than not have given us signals of strength coming out of q2 what should have been the nadir of tech financials. yvonne: in terms of the guidance for the third quarter, in terms of the v volatility -- in terms of the volatility, how big of a risk is that? beth: it is int

with jon fortt and deirdre bosa today a make or break week ahead for he can nolg as key names like microsoft, apple, google, meta and amazon all report results. we will talk about the key risks to watch out for and that's on top of results from nearly a third of the s&p as bofa warns stay out of the in networking names we will discuss that finally don't miss an exclusive with the ceo of klarna this hour the company's valuation plunged 85% or almost $39 billion. >> carl, back just in time for our super bowl, that is big tech earnings, that kicks off this week every mega cap name you can think of along with smaller but not small names, nxpi, shopify, nearly a third of the s&p, 40% of the dow will be reporting results. dom chu joins us with thebreak down i'm rested and ready, it's going to be a big one. >> it's going to be the super bowl like you said this is going to be what constitutes the biggest influence on where we could see markets going with regard to the fundamental side of that equation, charts aside, macro economic conditions aside. for the s&p 500 the make or break is not at all --

look at microsoft yesterday. very rosy forecast, and that forecast moved microsoft, which was down initially off earnings, and that's back up i think it's interesting what matters this season, is different from last season now forward guidance is so critical so we're going to embrace more guys coming out. >>in >>ing. >> looking forward, not backward jeff kilburg of sanctuary. thank you. >> joo that does it for us on "worldwide exchange. i get to have the next couple of days off but you're going to see me on "squawk box" in a little while stick around a big fed day, earnings day, stock futures are up good morning, byhe t way short break. "squawk" is next vchlt a great day. >>> good morning it's fed day the central bank set to hike rates ahead. we'll tell you what to expect right ahead. alphabet and microsoft missing estimates in the latest quarter. we'll tell you why the stock is higher. >>>ouster at credit suisse the ceo is out after taking the job. today is july 27th, 2022 next week is august. "squawk box" begin

microsoft hastens to do the bidding of the u . s. government. because it knows the us government could make life very, very unhappy for if it didn't do so. acclaimed american novelist stephen king has admitted that he's quite fond of world war 2 nazi collaborator, sta pon been dera, saying that he was, quote, a great man on a call with a duel of russian pranksters, one of whom pretended to be ukraine's president lensky. the best selling author even pledge to use his influence on the u. s. media to engage in information warfare against moscow. there are our people who have flaws with human beings. we do that are bad choices and then there are things that we do that are great choices. so you know, on the whole, i think ben dera is a great man and you're a great and, and the value of the comedians, known as von and lexus. previously got renowned british author j. k. rowling to say that she had changed. harry potter's lightning bolt scar into a ukrainian trident symbol of that country's national identity. now they've exposed stephen k

let's create >>> let's turn back to alphabet and microsoft today. nasdaq, which is up 2% we're joined by other own deirdre bosa with more >> a sense of relief this morning, certainly evident in their stock movements, relief that make -- results from both alphabet and microsoft, they did -- there was no meltdown revenue growth still in the double digits. the markets, they'll take it more importantly, perhaps, they were optimistic. they were still there, strong dollars, lower pc sales. resilience and alphabet. they were able to deliver despite the headwinds, certainly proving more revisilient. microsoft signed a report number of azure cloud contracts they also forecast 40%-plus cloud growth in the fourth quarter. beyond the better themed, both companies did express uncertainly about the macro, and take google's youtube, just 3%, down significant ly. >>> dee -- for more, make sure you join us. >>> no shortage a topic today. we'll turn to chipotle results it's up 14%. indicate rogers joins us now with chipotle's ceo brian niccol thank you so much, sara.

apple and tesla are leading on the nasdaq, microsoft and amazon are lagging.ng its full-year estimates for microsoft, reducing its price target to 312 from 352 the concern, the stronger dollar and the outlook for i.t. spending during a potential recession. analysts at deutsche bank, though, say microsoft screens as the top name in the software space in terms of quality and price to quality steve kovach joins us. how is microsoft able to combat the currency headwinds and negative outlook for i.t. spending is it a safe bet or not? >> it depends on who you ask if you ask satya nadella, he says it's a safe bet he just does not see cybersecurity and i.t. spending going away he didn't say it's not going to slow down, it might, but he sees that as such an important thing for literally every business out there to be spending money on even in a recession. so he's if not in the short term optimistic, he's very long term optimistic and microsoft is in good company with these price target cuts earlier we saw cuts for apple, netflix, alphabet and by the way, those names ar

read the microsoft press release. extended shutdowns in china. . the ongoing war in ukraine issues with russia, take your pick. tom: and the red sox are in last place. there are many issues out there. life goes on. these corporations are going to adjust. they come back. get over it and move on. lisa: there is this feeling, to me, that perhaps some of the bad news has been baked in. even with all the warning signs and you could have found pessimism, what does that say about the market? tom: the middle-class class is flat on their back, the president will address that, we heard from former president trump yesterday. basically, they are killing it. jonathan: louis vuitton. futures, .9% on the s&p 500. the nasdaq 100 up 1.4%, a sigh of relief from google. you will be trouble today, aren't you? slightly stronger euro in the mix, .2%. lisa: today the main event is at 2:00 p.m., a rate decision followed by the 2:30 press conference with fed chair jay powell. guests include the former pimco chief executive officer and a bloomberg opinion columnist, bill du

key earnings kicking off tomorrow with apple and microsoft. news results after that disappointing second quarter number from snap last week joining us now is dan niles. dan, it's making moves in the wake of what we got from snap. what are you doing >> well, we had put out a note a couple of weeks ago talking about how we had concerns over ad spending for the internet companies and that would affect everybody, including google as well as all the other big names. and what you saw on friday was really much worse results coming out of that market than anybody anticipated. remember, snap said in june revenues were up 30% year over year that's -- sorry, in april, revenues were up 30% year over year and by june that had gone to zero. for us, we had covered a lot of the shorts that we had put on in the internet ad space because snap was down 39%, dragging everything else with it. but we also sold a bunch of our longs. right now we have more shorts than we do have longs in the portfolio, and we think this is going to be an ugly week for fundamentals an

look, growing 40%, as microsoft did in cloud is great. and you'll see great growth in amazon but i think you have to look at that andy jassy is doing a great job and it may take a few quarters to flesh out, because he's finally focused on profitability. so i'll be back in amazon at some point maybe this quarter on apple, i'll be back also. i actually think apple misses this quarter, because the consumer has been stretched. and it's a retail company, much more so, i believe, than it is a technology company because they sell directly to the consumer, primarily. so i think you've got to be a little concerned about both. they're not devastating blows for the company under any circumstances, under any, you know, scenario so if they do crash, then, i don't think they'll crash, but if they do come meaningfully, i would be a buyer >> joe, you own amazon the stock has been a tremendous disappointment, right? down 29% year-to-date, and we have these new questions because of walmart, we already have these questions. walmart made us think a little ha

what about microsoft >> you know, microsoft is the blue chip in the tech space. have some legitimate problems fx is going to be a problem. the consumer pc market is going to be a problem. that's about 30% of their revenue. those are all valid. it's not quite as defensive as we would have hoped. it's down from its 52-week high just about the same amounting that the nasdaq 100 is you would hope it would have been a little bit more defensive with a trailing 12-month pe of 27 and a current year pe of 22 it's not cheap, but it's a strong number two in the cloud space. i think it's a hold to accumulate the interesting thing about the cloud space, somebody is going to spin off their cloud division i don't know if it's microsoft and azure or amazon and aws. when that happens, that is going to be fun to watch. >> will it though? okay final name, snap, it's crackling today, but can it pop higher. >> i remember when snap came out, we all loved the idea that our messages would eventually disappear. i think all that's disappearing with snap is the opportunity to make a profit

work, not anything that the customer will see, but it will be microsoft sales teams that sell and microsofty that will handle the apps that we all see -- the ads it is not a as big of a player in the ad space as google or comcast. emily: right. it was news to me that my croissant had a burgeoning added service. -- that microsoft had a burgeoning added service. is there some rod or goal here, taking on some of its competitors -- broader goal taking on competitors? lucas: it microsoft said laster its ad business was $10 million which is not as big as some of the big companies. not as big as google or facebook. they acquired xander, and add business that at&t had built up last year in a deal that was estimated at a billion dollars. xander is not the best in class, but it try to compete with google and facebook. obviously so did linked in, so it is building a robust add business to compete with layers like amazon and google and facebook. emily: so here is the question. i mean, we have heard content is king, it is all about content. is it all about the content or is an ad supported service that

we will talk more about microsoft resilience as well. teacher -- futures have played well for the ftse in recent days. the dax was the underperformer because of gas. it was really weighed down by that gas story. ongoing expectations that things get tough in europe through the winter. the dollar euro ounce just a fraction but not recouping the losses of yesterday a lot of earnings and the fed to think about. we have a number of great interviews today including the deutsche bank cfo, he will be joining us. we will talk to ecuador's -- equinor's management, a credit suisse chairman and we will hear from mercedes-benz. and also from the mining center, rio tinto's jakob stausholm. we look ahead to the big fed decision and big market moves in asia. matthew blocked sam will take us through the big tech earnings, and lyubov is covering the european gas crisis. that has been developing over the last 24 hours. the fed has picked up a two day meeting that will almost certainly conclude with a 75 basis point hike, but the trajectory after that is a

, what is microsoft, why is microsoft involved microsoft is a very neutral noncombative technology companytechnology companies like to partner with they have what it takes to build something like this. and if you know anything about the history of silicone valley, then you know when facebook, in 2007, was preparing to really start to monetize what they had built, they went to microsoft for help getting the ad business up and running that's now arguably the greatest ad business in the history of the world. microsoft was there in the early days, remember they took equity from facebook in order to do that deal and they made a lot of money. netflix at a $70 billion market cap, could they have a bad report on tuesday, totally, do you think 70 billion goes to 35 billion, i don't i think a lot of the risk has already come out of the stock so i'm going to stick with it and see what happens. >> highs of the day right there for shares of netflix. earning season speaking of gets into full swing next week, a quarter of the dow more than 60 s&p companies getting ready to report we'll set you up ahead o

and they turn around microsoft shares? -- the turnaround in microsoft shares? >> microsoft shares will be up double digits. they ended the fiscal fourth-quarter below estimates on the top and bottom line. this company had a well told story, overseas sales and profits that was evidenced in corporate pull back on spending on cloud and software. you take the asia or cloud unit, they are saying that there are fewer deals, the volume of deals is down. $100 billion deals, it has hit a record. a mixed picture, the market like s what it is hearing. in the near term, it is going to get worse. heidi: what about alphabet? >> they have missed or just met almost every metric that they put out apart from one, that was the motto that mattered, and revenue came in higher than expected -- the one that mattered, ad revenue came in higher than expected. we see this from credit card providers, that held up well. youtube was interesting because there are social media ads. they broke off from the same period a year ago. i think what is interesting about alphabet is that there is som

i'm not -- microsoft is microsoft, right? i own it and will continue to own it.rms of those tech names. >> neil: there's a theory out there that the market is sort of a barometer for eventually how the economy will go. it was selling off the before the economy started sputters. a lot of people in this month of july, a few days to go, it's been getting some traction here. so how do you see the market telling us what the economy might be looking like? >> well, it is. the market is a discounting mechanism. trading out four to six months from today. today's trading is not today. it's what the market thinks in four to six months. that's taken into account. so all of this damage that we've seen over the first six months -- back in january it was telling us what may and june would be like. we're right where the market told us we were going to be. what i'm still concerned about and we'll find this out tomorrow and thursday when we get -- what the fed will say and really about what he says going forward. the same way that these companies offer their guidance going forward

view, joe, on microsoft? are you concerned about enterprise are you concerned about currency, which they've already told you you better stand up and take notice of what's happening in currency, and that was six weeks ago that they said that? >> i don't like the sequence of earnings for the week, and remember, i'm saying that from the perspective of being pushed into a long position in the queues but what the market has done here recently i am long alphabet, i am long microsoft. they have already guided a lot of negative news already i think from a sequence perspective, the expectation that you could have is that alphabet and microsoft are going to give you the better earnings outlook and the better probably guidance and performance i'm more concerned as we move through the week so i think tomorrow will be for me personally the best of what we're going to see this week. >> really, that's funny because i could suggest maybe microsoft could be the most quote, unquote worrisome of the week. i mean, alphabet's goi

i think people are excited about the microsoft relationship. maybe 225 and then maybe falling again. >> dna, what do you think? we're sitting about 216 right now. >> i think they did a good job putting the whisper out of expecting a loss. they probably gained here and the fact that it's not down a lot, down 35% last quarter and 25% the quarter before that, i think it speaks to the fact that the company knows their challenges and they want to monetize every household, and we'll start getting more and more of how they're going to do that say over the next two quarters. i think the valuation for the first time in a long time looks attractive. the competition is here, and that was a pillar of the barricade for a long time. but i want to make a bet on reed hastings. >> and what do you make of the ad about the 2023 event? do you think it should be sooner or does 2023 feel right for you? what does that do for you as for the company adding more revenue? >> i think it's smart or appropriate that they are talking in measured terms about the impact of the

hispanic microsoft is safe. talking for technology. as a sector. >>> i am long on microsoft and apple. i'm short on idb. i feel like the low hanging fruit, for the bear market there compared to banks. apparently not. >> the comments that we are having around microsoft, and the enterprise comments, these are the ones that started to percolate this week. we have not gotten those yet. we have talked about inventory issues. we talked about inflation and consumer spending power. we have not heard about enterprise, especially the places where people think they are, secular. they think the move to the cloud is secular. they think software is secular, that goes on forever. that is the parts, microsoft, again, i'm not wishing for doom and gloom. i want to hear something out of microsoft you're going to hear something out of apple. >>> you want the band-aid ripped off wax>> a little bit, a little bit. i never like that as a kid, but i like it now. >>> the entirety and the prime minister is trying to step down. first, pinterest is popping and tra

microsoft, we will focus on the sector, next. this is bloomberg. ♪ dani: welcome back to "bloomberg daybreak: europe." microsoft has become the latest tech giant with the brakes on hiring. the company said they have many open jobs in the cloud business. microsoft look -- joined google, both pausing hiring. jobs report flashing about 80,000 jobs. we are talking to william hobbs. what is this hiring pause, what does it tell you? william: first and foremost, when you seek headlines slowing hiring, the first thought is that central bankers are trying to cool. with regards to tech, when we entered the year it looked to be a little bit of frost in some parts of the market. there was too much disinflation. i would not read too much into it. dani: i love this idea that some of the slight pain in the tech sector is above monetary policy. i love what you write about inflation in your notes. it has been an ongoing theme for some months. would you want to fade this inflation trade? william: if you look at the uncertainty, not preview you cov

it is really two giants, amazon and microsoft and alphabet it does distant third.growing, the base case for amazon is its cloud business is worth much more than its e-commerce business, promising for years to come. jack: subsidizing the e-commerce business which could be interesting down the road. speaking of e-commerce the consumer slowing but i hear the hough household managed those bargains on amazon.com. what is the future for the retail business? jack: i needed the coffee maker and the kindle and the nerve, i decided to return what i was going to bring to disney world. when i want to know about e-commerce i check in with b of a security because they have access to credit card data and they think e-commerce could beat by a little bit and prime day was quite strong. let me add a word about advertising. that's related to retail. when you do a search on google or facebook they guess your intentions and maneuver around whatever privacy constraint apple is putting on. if i search for popcorn salt, the fine-grained that helps it stick better, no question that i'm int

i google, amazon, microsoft, and apple. they all assure us that they're not listening in on phone calls or using our phones, microphone to spy on us while we're cooking and then sending us ads for a frying pan. for example. technically, this would be possible though, but let's assume that the companies really are speaking the truth. how can we still be so perfectly targeted with ads? companies like meta and google make money through advertisements. personalize ads are especially effective at the more the companies know, the better they can target you. instagram's parents, company meta saves information that users leave when they use the up. that includes everything you share with other users voluntarily, like photos, comments and likes. but the app also stores meta data from photos and videos that you upload, like where it was shot, and what it to picks. if you're constantly logged into instagram, facebook on your phone, you're also sharing your location as instagram, facebook, and what's up all register. where when the at

breaking news out of microsoft.e are seeing microsoft will be slowing hiring in some groupsing hiring in some groups and cutting many open jobs as the economy weakens. we have already seen today the market take a hit after google announced they would be slow wearing hiring for two weeks. wearing hiring for two weeks. lyft is also one of the latest tech companies to stop hiring amid mounting inflation fears and rising inflation. we have seen apple also planning to slow hiring according to people speaking to bloomberg. now we are getting the latest on microsoft, the latest one to slow hiring in some groups and eliminate open jobs and in the u.s. economy weakens. let's bring in our next guest and continue the conversation when it comes to european gas demand. she sees it more resilient than expected. samantha dart's head of natural gas research at goldman sachs. tell us about european gas demand that prices have surged. where are we heading for the winter? samantha: we have seen industrial demand for natural gas down y

companies reporting this week, including alphabet and microsoft.spotify and amazon come later in the week. very interesting deceit, particularly around microsoft and amazon's of the cloud services part. but also bundles, given the hit we sought snap and twitter last week. how much will that slow down on meta-. let's check on the futures as week lit up, an hour away from the open here in europe. gains for european equities yesterday, a mixed picture on wall street, nasdaq futures down .3% as we lead up to those big tech. futures europe pointing to point does a loss of .1%. the gas rate, further reductions from your russia to europe, energy meetings -- ministers are meeting. ftse 100 futures, -- dax futures essentially range bound as things stand. the fed decision on wednesday, expectations for a 75 basis point hike. also the inflation sector out of europe, as manufacturing gazes desk gauges point to a slowdown across the european economy. this is the old pictures of 3% on your to year is up 2.88 under five years, we see that yield inversion between

shares of our alphabet down and microsoft as well, they report after the bell today. lots of anticipation. google is trading at lower levels. if that breaks, that will make people nervous. walmart is the worst performing stock in the dow after that woman warning, and also the worst. walmart is saying that inflation is causing consumers to pull back outside of the grocery space in particular, and it is rippling through the entire sector. target down 4%. amazon down 5%. costco down 3%, tyler. >>> walmart is not the only company to give insight into the consumer. there is also mcdonald's, general motors, at&t, marriott to name a few. they are painting a picture of whether the consumer is starting to crack. we will take a close look now at demand and spending in retail, and restaurants, and automobiles as well, and what it all could mean to the economy and to your investments. we will start with the industry leader walmart. as she mentioned, it is down seven, nearly 8% right now, trading slightly above where it was at the start of the pandemic. courtney reagan starts us o