they have seen the rackspace before especially during these uncertainly times, guys. >> a question by follow-up rockmortgage expecting to trade tomorrow. >> rocket companies, that's the apparently company for quicken loans, rocket mortgage, as you mentioned, they are having pricing discussions right now, according to people familiar with the matter. the conversation they have shared is that, you know, demand is lower than expected they have already lowered the price range. he didn't have a filing on this. they communicated a lower price range to investors at 18 to $20 a share final decisions will be made after the close today in a brings the size of the deal down to about $2 billion, which is down about 60% from what the were targeting i put this in the camp of rackspace. they're just having trouble getting the demand out there. >>> coming up, the dow and s&p 500 higher for the fourth day in a row. materials and industrials leading the way. i haven't said that in a long time >>> "new york times" beating earnings this morning. the stock is lower even as the digital revenue tops print r

cloudlater in the show, rackspace goes public today. ceo joins us next as we datad to him about concerns, privacy, and china in the cloud. this is bloomberg. ♪ yield dumpling now 11 basis points, continuing in the knee-jerk risk-off. ♪ in 20 income a bill gates predicted a massive epidemic was coming. here we are. the bill and melinda gates foundation has committed more than 350 million dollars to fight covid-19 around the world. gates how he believes the rest of the pandemic will play out, how long it will last and when we will come out of it. the: fortunately, innovations in dioxin -- in diagnostics, therapeutics and vaccines will get us largely out of this by the end of 2021. therapeutics will cut the death rate, but the true ending comes when, between natural infection and the vaccine, we have herd immunity. for rich countries, sometime next year, ideally in the first half. emily: so we are going to be ok? bill: we are certainly going to be ok. we are lucky this wasn't a more fatal disease. i do think that this time we will pay atte

one thing rackspace does it help clients migrate their data to aws, amazon web services rackspace upfrom first two trades weeks ago and lower from its ipo price of $21 so what do you make of this potential timing of this potential deal, karnl? -- karen? >> very curious. how long have they been public, two weeks? remember, 21 was the offering price and i they hoped original price would be larger and after that opened poorly and traded poorly all until now. makes me wonder if amazon had conversations prior to ipo and couldn't agree on price, well, we'll have to go public maybe pay more, but didn't work out that way so amazon is in the seat not only do they service aws but google and azure and others. it's interesting, up $2 on potentially big news has my eye. that's interesting. >> yeah. tim? >> i think it's actually very interesting as you point out, karen. that they have customers that are also major competitors in the cloud to amazon. so, 11.9% stake is what's being discussed. the fact that, yeah, i think aws growth was under the spotlight and not the stellar part of this last block

good to see you. >> thank you thanks for having me kevin jones, rackspace, rxt.s here. we continue to see assets inflation on gold as the s&p continues to inch higher toward an all-time high let's get to the judge and the half >>> why the oracle of omaha is loading up on shares of bac and whether it's the truest sign yet that the bank trade is about to break out. we'll discuss that with our investment committee today joe terranova, steve weiss, sarat and brenda is back with us let's begin with the markets as i said, they are higher and the revelation that warren

rackspace has opened best i can tell it's down -- there it is. it's down 20%, is what we'll call it for rxt as it begins trading. that ipo is open steve, forgive me. go ahead. >> so the fundamentals wait for the yield curve are negative as well as the pandemic, as businesses shut, banks will have a tough time making money and not adding their reserves you want to be at the other end of it. that's going to be the big boost to their earnings, but i don't want to be there just now. there are other places to make money. i think buffett bought it as a bank proxy >> well, he's bought a lot of it i can seed a different time, i mean, people like to throw stones these days. there are plenty of people who have been doing that, just because, you know, the airline bet went bad, all of a sudden it's like the guy lost his touch. clearly he sees something in the banks. joe? we're talking about financials to add to that steve has been saying, why now? why trade down in quality now when on the other side of the election we could be facing a regulatory environment

. >> and rackspace. >> rackspace was kinnell of a dog, but what's going on with quicken?art of is is valuation. bankers says they can bevalued like a tech company. they had to take that down a notch, and given the size and scale of it, it had to work, so they had to price it a bit lower. >> ebitda, we're being to talk about nikola you know, they have $36,000 in revenue -- >> not much shm-ebitda what investors want is a lack of earnings, lack of a business model. the problem that quicken had is they had too many earns. they had $900 million, a growth of 36% and a 35-year-old company. so they had a proven track record of making money, which disqualifies you from being valued as a tech company. >> way too boring, dom >> i good es when you're in a establish business and you're the biggest player out there, there's no premium you pay for i looked at this as more of a commentary on what the future of mortgages will be like i don't know how robust you could see things if rates are just held at such a low level for an extent the period of time remember, for a company like quicken

you look at rackspace from 2018 to 2019, their growth on the top line was flat. so investors these days like new names, they like younger companies in that phase of the growth cycle they are not as interested in companies that have been around for 20 years in the case of rackspace, 35 years in the case for some iteration of rocket companies. so i think you're right, it's a growth story here, which is also why we're seeing such huge demand for stocks these days people like riskier, less tested companies. >> leslie, thanks so much for that roku shares as we just reported, nice beat on both lines. let's bring in research analyst tom forte. tom, are you impressed with the numbers, particularly the adding of accounts? >> i am quite impressed with the numbers. if you look at the streaming growth north of 66% on year over year basis by way of comparison when amazon reported its june quarter, it indicated video consumption had doubled. so i think what you're seeing here is strength in advertising revenue despite the fact that advertising revenue in general has been chall

. ♪ >>> welcome back to "fast money", take a look at shares of rackspace, dropping since going public9% rise in sales and 100% jump in bookings, shares back above $21 ipo price. a slew of brokers initiate the stocks, karnl karen, rackspace is it worth owning. >> it's in the cloud space so anything related is great. but i bought it after the close today after they announced earnings when the stock traded down, the reason was today is the first day they could come out with estimates and price targets and everyone very bullish. it made me just think, you know what, they've must have known what these earnings are and think that they're fine and so maybe the market is overreacting to the earnings because they got the stock so pumped up on all the analysts report so for that reason i bought it after the close today. >> there's a nice trade for karen. see how it pans out over the next week. time for final trade, around the horn, carter you first. >> s&p 500 all-time high starbucks, lowest high time buyers. >> karen. >> i'm sticking with rackspace as my final trade. >> i went weakness in the

take another look at rackspace. that's a cloud company, went way up monday. is thinking of investing in them. susan? susan: rackspace up again, outperforming now in a down market today and it spiked on that reuters report that amazon was in talks to buy a small stake in the cloud services company. rackspace makes sense for amazon since it's a company who helps companies and other companies move their data over to the cloud, to amazon web services and other providers. financial terms of the deal have not been disclosed. rackspace is only worth around $3 billion and change so it wouldn't be a huge investment for amazon. amazon, though, is the world's largest cloud provider, nearly 40% of the market share. i know when we think of amazon we think of online shopping but this is the money maker for them and by the way, the stock is rallying again today big-time in a down market. that's despite first of all, its competitor walmart's big earnings this morning and going against the remote work trend, they are hiring 3500 to work in their offices in six cities. maybe n

i also just wanted to point out rackspace. know you mentioned this earlier in but potentially in talks with amazon. they only went public a month ago. $21 a share below it's indicated rank, 15% up today, amazon looking at it. so i think we can look at that as well. so we will begin with tesla. you mentioned that morgan stanley upgrading the stock to equal weight you can see that shares of tesla are up more than 7% in today's session. the analyst behind that call, morgan stanley's adam jonas joins us now good morning and thank you for bying with us. you were on just last month defending your targets, so why do you turn? >> yeah, you have to stay flexible with tesla, right the message here is if you're going to buy tesla at the old target or the new target today, it has to be more than cars. more than cars times price and the pathways are on model supply and software service. it is clearly not enough to get to the price today, but we found $60 billion by working with our tech colleagues on the idea of tesla announcing technologi

a tale of two moving in opposite directions we'll start with rackspace particul technologies down 19%. it priced its ipo at 26. and e-commerce priced its stock at $24 some big news there. it's not all hot and it's not all fun and games in the ipo market, kelly. >> but certainly if you're a platform like shopify, big commerce, at least it is today dom, thank you investment. >>> let's move on to payroll growth we found out it's slower than ever as covid rolls across the country. still, the june number rose sharply higher that continues a recent trend. steve is here to break the numbers down for us. steve? >> thanks, kelly, a big miss on the adp jobs report for july that suggests the economy slowed during the month, the adp at 167,000. that compares to an estimate of 1 million. the june number was revised up, however. it doesn't really tell us that much, in part because they immediately true up, adp does, their number to the report there's the number, 167 estimated at 1 million t the goods sector up 1,000, services 166,000 the report showed jobs losses in medium-sized businesses and cons

this year >> right now it's a hot time for ipos to focus on tech or cloud technology you look at rackspaceyear to date lem lemonade, that's down 10%. >> just because it's good for the company, maybe not always so much for the investors >> by the way, kelly, when it comes to something like airbnb, despite the timing going on in the business, this is a company that got very large in the private market and have a lot of employee stock compensation. some of that is set to expire. there are sort of a lot of things driving it instead of, hey, this is the perfect moment to go public >> that's true, in some ways they're all kind of desperate whether it's because they're that hot stock of the moment, or in airbnb's case because of the options expiring always something to keep in mind >>> let's talk about shares of chipotle they raised it $300 a share to 600, citing their drive-thru and delivery gaining ground. the stock has been on a tear, up about 50% on the year. >> when you get those spicy nuggets, i'm going to chipotle i'm a big fan of chipotle. they have one great stat right here 60% of their