gene munster is manning the red phone. josh lipton is out in san francisco. he spoke with alphabet's ceo, so, josh, we kick off with you. >> melissa, digging into this report briefly here, a couple numbers stand out, one is revenue from google properties $18.4 billion, that's search, youtube. talking to aaron kessler of raymond james, obviously as he points out, that's the highest marg margin businesses for the company up 20 pk he also pointed out reasons for concern in the report. traffic acquisition costs, what the company is paying their partners for mobile traffic. obviously when that's rising, can pressure overall margins a couple other key lines here that stand out, other revenues remember, that includes cloud, play, hardware, that clocked in at $3.1 billion. and other bets revenues. everything from self-driving cars to nest smart thermostats operating loss of $772 million finally, other key metrics, paid clicks up 52%. costs per click down 23% actually worse than expected as you mentioned, i did have the chance to speak briefly with alphabet's cfo a co

. >> for all things amazon, gene mon munster joins us as we wait for the talk there is the phone and gene. >> one metric that i don't remember you talking about was 27%. that's up from 24% last quarter. so let me put this into perspective. a leader in market share e-commerce they're accelerating their growth and they're accelerating the pace of their market share this is a trifecta of a lot of good things happening. it's a concern that they'll continue to spend like drunken sailers. i think they're sending like a company that wants to take over a lot of industries. there are three industries that amazon is going after that are secular growth e-commerce is 10% of the bottom line today cloud 15% of business is done in the cloud and if you think about video content, 10% of video spending is done online verses the air so this is not a valuation type of a company. i'm very encouraged by these results. going to be tuned into what they're going to say obviously on the call but there's a lot to be positive here. >> why is the stock down $34 now? >> because operating guidance for the septembe

we will speak with gene munster and brian johnson live from new york.loomberg. ♪ ♪ david: this is bloomberg. the annual conference in sun valley, idaho continues. david gura is there with a very special guest. david g.: i'm here with sir martin sorrell. first what you think about facebook and google. how much are you occupied with them? who might be able to compete with these titans, amazon or somebody else. >> google is number one in terms of media destinations. all of our competitors they represent clients and facebook announced case would be the third. it is challenging to become the second. the spending we are seeing by clients on facebook, despite all the challenges about fake news and fraud on the internet and measurability and consumer brand safety and political brand safety, it continues to charge ahead. not just in the united states the worldwide. the alternatives, the third orces, that could be an aol ath. you have him on the program and that is one potential. snap is another potential. appave a 16% stake in nexus. there are forces that could

oning up, gene munster amazon, apple, tesla.st innovative piece of technology since the iphone. this is bloomberg. ♪ alix: exxon out with quarterly results. one ofe the biggest -- the biggest laggers not helping itself. production estimates also missed. joining us is a niche kapadia -- is anish kapadia. and ubs and has a cell on exxon. your initial take on earnings? anish: overall, pretty weak results, especially in context oil majors that reported yesterday. if you take the earnings, those earnings probably include some gainssale gains, so probably end up being even weaker. the key thing the market is probably looking at is cash flow. are cash flow generation was less than $7 billion on a clean basis. 15% looks like it is about below consensus. the key thing on exxon's cash flow is exxon generated, for a third quarter in a row, 15% less cash flow then shell. exxon has a 40% higher enterprise value then shell. it is increasingly hard for exxon to justify that premium valuation it is trading on, given the weakness and -- in cash

emily: interestingly, gene munster, who long covered apple says he thinks the model three big asmodel 3 will be as the iphone. he says that apple should buy tesla. take a listen. should buy tesla. elon musk probably is not going to let it happen, but that could transform apple. emily: alex, what do you make of it? alex: i think a lot of people would be impressed. apple has yet to make any advisable deals -- beats -- emily: which for them was a huge leap. of thehey love the idea visionary ceo. and of course, apple has a track .ecord of visionary ceo's the big question is about the fundamentals. apple is a company that does a 20% net margin. the margins for the automotive industry are dreadfully weak in comparison. be luxury carmakers do a 12% to 15% net margin on a good year and that's a big hurdle to bridge that. emily: carl, what will the biggest challenges before the model 3? >> i think getting the car out there at the rate he is talking about and finding that audience, we know he has a lot of backlogs deposits,over 350,000 but whether those come to fruition when you put options on

gene munster is with us, managing partner at loop ventures.at screen that we just saw, that to me is testament to the success, power and wealth of the big five technology companies. and it makes me think that sooner or later the politicians are going to come to get 'em. what say you? [laughter] >> i think, yeah, but it's not going to change. these are going to continue to be some of the most profitable businesses. i think if you're someone who's this school who's looking to make a ton of money, i think you've got to go to the tech market. three of the top five most wealthy people are the tech-related -- stuart: it's not like the dot.com bubble of the 1990s. a lot of people say why shouldn't9 i sell the big five now. it's a different situation, isn't it? >> it is. the difference here is these companies -- bill gates is going to get surpassed by jeff jeff bezos, and the reason is they're aggressively disrupting e-commerce, but they're going to go after cop tent. i think the difference here between what was happening in the dot.com bubble is thos

analyst gene munster believes sales will peak in 2019 and replaced by an entirely new product.s us with the bloomberg consumer tech reporter mark gurman. >> what we do know is they have launched ar kit. the next will have a 3-d mapping chip that will be especially geared for premium ar experience. thatscent acquisitions apple has been acquisitions. when you think about those three together in about the most is aal use case for a.r. formal wearable, it seems logical. the three-year is a best guess. weasel confident apple will have a new product category, but the timing is a guess. emily: you have done some reporting on this. google glass not a success. snap check spectacles not a six -- snapchat spectacles not a success. apple's next big product category. how they differentiate? apple comes a unique position with your bringing the hardware expertise for making small devices. they also have the software. google did not have an operating system that it could apply to a device. android was in its infancy when google blast came out. ios platformobust that important different devices

you have "the addams family" and then "the munsters," you have "bewitched."am of jeanie." imitation is the sincerest form of television. if one person is doing this fantastical hit, we're going to do that. >> now, is that considered a crime? >> i'm afraid not. there aren't any laws to protect us against bad tv shows yet. so you're safe. >> well, thank you. >> what i'm surprised by are some of the shows i can't even imagine the pitch meetings for. like "hogan's heroes." >> it's a story about american prisoners of war in a nazi concentration camp which doesn't sound like it's a funny comedy. >> why don't they trust us, schultz? >> that shows you how weird the '60s was right there. >> there is another one of our fine shows this year. pit stop! a moving story of an effeminat e race car driver who was really an astronaut for the mafia. 9:30 eastern time, 8:30 central time, quarter after 2:00 pacific time. ♪ so nice, so nice. ♪sweet, sweet st. thomas nice. ♪ so nice, so nice. ♪st. croix full of pure vibes. ♪ so nice, so nice. ♪ st. john a real paradise. ♪ so nice,

we will be talking to gene munster in that comparison later on in the show. cosco up by 2%.eat estimates. almost double what the essence of -- what the estimates were. missd-quarter revenue did estimates. sales were slightly better but it was pizza hut the real culprit bring yum china down. after years of payroll growth, somewhat disappointing so far this year compared to the previous months. companies complain they can't find of workers. on the eve of the june payroll report, michael mckee joins us from boston with more on what people are calling the skills gap. michael.in with you, the message in the data, the signal from what we have seen over the last couple of months? michael: it's interesting. the government is forecasting tomorrow that 177,000 net new people were hired in the month of june. that can be a lot higher. let me show you a chart. job openings have been rising all year. they are now at a record level in the u.s. look at how hiring has lagged. business leaders say there is a skills gap out there. people that were laid off from jobs in factories don't have the

photos from game shows, including "family feud" and "the dating game" -- also, sitcoms like "the munstersd "laverne and shirley." >> there was about 200,000 photos and books in that collection, and suddenly, howard was in business. >> at just 18, howard officially launches his own company, called personality photos, and sets up shop inside the family home. >> the pictures were everywhere -- on the bed, under the bed, turn the oven off, put them in the oven. but, boy, what a treasure trove. >> after howard's mother dies in 1978, father and son become inseparable. who was taking care of who? >> i think it was mutual. howard was basically alex's legs, and alex was the business guy. >> in the days before the internet, newspapers, magazines, and tv stations rely on independent dealers like howard to provide them with photos. and howard builds an impressive client list. >> howie would physically walk to the major publications and meet the editors and say, "hey, i have all these archives." 'cause nobody had what he had. >> picture an editor on deadline who needs a shot of fred gwynne or one of a

. >> gene munster was on a couple weeks ago, overall very bullish on the stock but also said he wouldn'trised, we had the conversation, to see the stock trade back down to the mid 130s i'm probably paraphrasing. i agree with him then, i agree with him now there's a good chance we revisit the old high of may 2015 of 134 or so. >> i think it's going to be a little less bad than that. if you look at the chart on it, it's bouncing around around the 100 day. i think, let's say 145ish which is really tight here so, you ask, i'm long, and i'm staying long who's buying they're buying they have a massive company buyback. i think they're going to be there on any weakness, they'll be there i think you hold it or add on weakness. >> all right as tech continues to struggle following its huge runup this year, our next guest says apple earnings could cause a double dip. let's go off the charts with rich ross of evercorps isi >> look, it's about to get a little weird in technology and i think it starts with apple let's go to the chart. we might as well start at the tom her top here clearly stock's up 28

new york stock exchange joining us this morning from one market out west, ethan kerzwhile and gene munsterappy friday to everybody. talk some markets and tech here. the nasdaq extending the win streak to ten for the first time since 2015 the index posted the 41st record close of the year. last time the nasdaq had a win streak longer than 10 was a 12-day streak back in july of 2009 what a week it has been for tech, gene we had s&p 500 tech sector recovered that 2,000 record. we had the ad line, some argue, get a little extended here how are you feeling? >> still feeling good about certain names. i think some names will be displaced. the quick ones that we think will be the winners, if you look around ai, robotics, ar, that's google, tesla, apple, those are great plays. the ones i don't feel good about are ones that had a great week like netflix so to answer your question, generally good but on a case by case. >> ethan, how are you feeling about microsoft's numbers last night? the stock was up sharply after hours until guidance came out. onest things that jumped out at me is the commercial b

how about that but let me say this real quick, the aforementioned gene munster, they have a quarter coming up apple on august 1st. that's right around the corner let me tell you, it will be there like that. >> he mentioned this might be the quarter with you see the selloff down into the mid or high 130s. >> let's say one thing, this phone that's been pushed out is supposedly between $1,000 and $1,s 200. i don't think there's demand for that phone the phone they'll release on time will look like the s, sf 6 or 7 people have not been inspired enough to upgrade their phones frequently if you get a form factor that looks like the 7 and 6s, i don't think you should expect that you get whatever the ten-year anniversary -- >> timeframe in which people upgrade -- it's almost consistently a two-year level where people upgrade nothing to do with inspiration at all. >> okay. >> we saw cell phone -- we saw their, you know, their units decline year over year for the first time ever last year. >> i think it's somewhat priced in here. i think 18 is2 is a fair numberr the stock. i think it's going to be a

joining us now, long time apple analyst gene munster, that's quite a statement, mr. munster.want to back it up? >> i do. the iphone really took the concept of a phone to a computer in your pocket, and that's what really broke the game open. it wasn't just a phone, it was a fundamental shift. we think that tesla model 3 has the same opportunity to change a car to being an autonomous, and what is missing how people think about the model 3 is the affordability piece. in a recent study we looked at cost of a model 3 compared to the everyda i toyota camry and found over a five-year period, only 13% more to own a model 3, fully autonomous. and the sticker price, 42%. to kind of put this altogether, is an affordable autonomous electric car can have the same dramatic impact on a paradigm shift as the iphone has. stuart: that's a powerful endorsement of the model 3 from tesla. do you own tesla stock? >> i do own tesla stock. i do not own a tesla and i want to make one point on that. i've been in a tesla once. and it's a game changing experience. there are about 200,000 teslas on the r

was a gene munster speaking on bloomberg today.on the future of the electric car industry, we are joined by analyst colin the character. his team is out with the latest forecast on the industry which is calling for a dramatic shift to electric cars in the next decade. he joins us from london. what are you looking for by the year 2030? >> what we are looking at now is this potent bevy of policy, technology, and economics pushing us toward an electronic vehicle future. on the policy side, you have tightening fuel economy regulations, aggressive targets out of china. on the technology side you have falling battery costs, down 73% in the last five years. that will continue. on the economic side, that will push electronic vehicles into cost competitiveness somewhere around 2025 and 2029. littled us to say, a over 50% of all passenger vehicle sales being electric 2040.0 -- by julia: jean was talking about the tesla model three and said it is only 13% more expensive over five years from a toyota camry. i wonder where we get to the break m

i want to play for you one comment from gene munster, the tech analyst we follow here, what he thinkshould do tesla. elon musk will probably not let it happen, but that could transform apple. got that hint at the end, he's talking about apple buying tesla. the next that could be stage, but i have a hard time seeing elon musk work for anybody, much less tim cook. >> the prospect of the applecart coming through, that seems to have been pushed back alongside a lot of things for apple. i'm not sure that marriage could work. one of theseve in excitement and hype for everybody, but these are lofty ambitions when it productionese targets, 500,000 cars in production. we will see if he can reach those targets. >> absolutely, but do they have the materials to make these cars ? that includes the lithium for these batteries. we will be watching tesla shares on monday. that is it from "daybreak asia." ♪ whoooo. i enjoy the fresher things in life. fresh towels. fresh soaps. and of course, tripadvisor's freshest, lowest prices. so if you're anything like me... ...you'll want to check tripadvisor. we

. >> and as fortes larks we've got gene munster, a really interesting note saying the release of theke apple's iphone moment. >> starbucks quietly down 10% in the last 30 days what happened? >> rising rates, flattening yield curve or rising rates, but there's still a flat yield curve. usually signals recession but nobody is talking about that. >> thanks for watching "power lunch. "closing bell" starts now. >>> hi, everybody. welcome to the "closing bell" today. i'm kelly evans at the new york stock exchange. >> i'm bill griffeth a lot of red across the board and nasdaq is giving back yesterday's gains, and tesla now has seen a 20% pullback from its most recent highs. talk about what's behind that decline specifically, among other things coming up here in just a few minutes. >> tesla down another 6% today big moves. >> yeah. >> meantime, protesters clashing with police in germany outside the g-20 sum

we'll talk with jean munster about tech's recent run with the dodo 8w wn7.uncompromising performance at the lexus golden opportunity sales event before it ends. choose from the is turbo, es 350 or nx turbo for $299 a month for 36 months if you lease now. experience amazing at your lexus dealer. [car tires screech] [bell rings] >>> welcome back to "squawk on the street." utilities the only sector in the green. this as oil prices fall on some renewed concerns about possible oversupply in the global markets. big laggers is transocean and chesapeake energy. a slew of these energy names are expected to report next week on monday we have petroleum and big energy will provide a bulk of the reports next friday, of course, with chevron and exxon due out before the opening bell on that day. so as we talk about energy, oil prices certainly a focus to day as oil prices are down 1.5% overall for the day. we'll see if that sticks around for the afternoon. that does it for this hour of "squawk on the street. let's send it back downtown for the start of "squawk alley." back

. >> retired back in the '80s and '90s gene munster, paul meeks, good to see you both.nk you for joining us today >> thank you >> thank you >> thank you >>> we are heading to the close here with about six minutes left the dow is virtually unchanged right now. the s&p a little bit higher, the nasdaq's leading higher, and again, oil, a big mover to the downside today with decline at about 4% and we'll get all of that coming up here. >> by the way, nike said there's a lot of kids that buy air jordans today that don't know who michael jordan was >> we're in the midst of wimbledon. the most famous tennis shoe out there is the stan smith. >> oh right. >> how many people know that he was a tennis play per. >> exactly he played in the '50s and '60s >> if only he saw his shoes now. up next, afterwards we're going to talk to william cohen about the rising tensions in the korean peninsula and the implications for markets and security stay with us the power of a low volatility investing approach. the power of smart beta. power your client's portfolio with powershares. before invest

gene munster, a really interesting note saying the release of the model three is like apple's iphone moment. >> starbucks quietly down 10% in the last 30 days what happened? >> rising rates, flattening yield curve or rising rates, but there's still a flat yield curve. usually signals recession but nobody is talking about that. >> thanks for watching "power lunch. "closing bell" starts now. >>> hi, everybody. welcome to the "closing bell" today. i'm kelly evans at the new york stock exchange. >> i'm bill griffeth a lot of red across the board and nasdaq is giving back yesterday's gains, and tesla now has seen a 20% pullback from its most recent highs. talk about what's behind that decline specifically, among other things coming up here in just a few minutes. >> tesla down another 6% today big moves. >> yeah. >> meantime, protesters clashing with police in germany outside the g-20 sum my. we'll be live on the ground with the very latest. >> a lot of action there as anticipated. >>> and a health care proposal from republican senator ted cruz is gaining apparently some traction on capito

the last few hours, angela merkel has been in paris as well having franco german discussions with munsteryou like. the one who might be able to work most closely with president trump. whether he can bring him round on issues of climate change, let's be realistic, would be the message here. but the fact that you cannot have an america alone on the world stage is seen across the piece is critically important. and maybe the new french president is the best person to do that. certainly the message we get is that their telephone conversations initially have been very warm. mr macron speaks very good english as well. they have interesting business as well, common ground there. oh, and the olympics — both the us and france have good news about hosting the games. so they have a few things to get the talks underway. good to talk to you, david. many thanks indeed. the natural history museum has unveiled the skeleton of a blue whale in its entrance hall. it weighs 4.5 times and is suspended from the ceiling with wires so it appears to die down from the building onto visitors. —— dive down. quite a d