we'll check in later this hour with satya nadella, microsoft's ceo.cerned about mastercard and visa. it basically sounds like they're hedging, locking in market share. this is such a secular story in terms of digital payments. the growth in emerging markets is extraordinary. 21 times for a company that actually is not spending a ton of cash. they're focusing on buying back stock. >> it was spun from ebay last summer. you're right on valuation, you're talking about eps growth and high single digit sales growth over the next couple of years. the deal they did with mastercard and visa areç great. the venmo part, the peer to peer thing, that will only be growing. they talked about mobile payments, point of sale. this is ail strong secular shift. i think you want to stick with it. >> i agree, the venmo part is very interesting. it's not what right now is moving the story. the rest is not a crazy, expensive price. the whole space is interesting. i kind of like it. i don't know enough. >> i like it too. it's more than just venmo. they got venmo when they bo

so satya nadella has done an extraordinary job with this. have one outside question, likewise for amazon and all the cloud companies, are they open to a massive hack? we've seen hacks in all sorts of e-mail servers and areas of online businesses. i wonder, is cloud -- >> as everything goes to the cloud? >> at the moment, it's crucial to their growth. if any of these companies saw that -- it's an outsized risk. >> which is why these companies are investing in their own security products. you alsoed point out this is a strong business. they compete with sales force, and those come pestipetitive jue flowing. sales force trying to challenge that. did not learn much about the microsoft linkedin combination. >> aws is the nimble. satya nadella changed the direction of this huge company and is doing well with that. >>> deal news, british american tobacco is offering to bite remaining stake in reynolds american for $50.56 in cash and stock or $47 billion in total. this is an unsolicited takeover offer, but the british group already owns 42% in reyno

i'm wondering if you think microsoft's deal making reputation is changing under satya nadella. ballmer this morning talked about the ekwan tif deal being his biggest mistake. how would you describe microsoft's deal making and do you think it's checking all the boxes? >> i think most of the deals we've seen are falling in one or two buckets, either technology tuck-ins, seeing a lot of purchasing and artificial intelligence getting the forward technologies onto the platform and able to drive innovation within microsoft. to on the other side of the fence is guys like linkedin, making a big acquisition of data and the social network that you could leverage through a lot of existing channels within microsoft. we're actually pretty positive on the linkedin acquisition. we see a lot of room for revenue synergies. we've put out a report targeting over $5 billion in revenue synergies we see accrue by fy-19. smoik better focused on how they're making need acquisitions to adjacencies to their product line as well as linkedin and the forward looking technology driven innovations on a forwa

listen to what he had to say about satya nadella's leadership thus far. >> we grew our revenue and wethe transition from a pc company to an enterprise company. and now satya's got the company doing the right stuff. he's going down this cloud path. >> and satya was going down this cloud path all along. he was running that division. but it was at that stage where investors really didn't believe in the cloud. they didn't really understand to the same extent this isn't just like another division of the company and we need to just value it on how much cash it's throwing off. so it was hidden underneath a bunch of other stuff. nokia probably not the best idea, but they made a last-ditch effort in devices. you know, skype is a nice bolt on but didn't light the world on fire as some might have hoped. but once you strip some of those things away and once the cloud grows up, you got to remember ballmer did help them get to this position, now they're really flowering. >> what's the competitive match to watch here? is it amazon and aws versus microsoft? is it salesforce versus microsoft? which on

the cloud version of their office productivity bundle, plus asure, it has been remarkable under satya nadellae investor sentiment completely change on the company. this was a company that could do almost nothing right in the technology sector three or four years ago, and now they are a company that is considered a forerunner. emily: it's a big week, david, kicking off earnings, announcements coming from tesla. what are you watching most closely? >> you have got me really excited about the tesla announcement, although i have been spending a lot of time thinking about the way elon musk talked about climate change when he announced the model 3 in the spring. to me, that was a really big vision. and i think the interesting controversy over autopilot and mobile i -- a company walking away from a good customer like tesla because they didn't agree with the way they talked about the usage of the technology, using the term autopilot, which i do think is a misleading term. but i love elon musk's big picture vision, thinking about climate change at the core of everything the company does. it would be gr

i remember when ceo satya nadella came in and talked to me about doing $18 billion in cloud revenues in a couple years' time. i thought he was being aggressive. yet microsoft's cloud business is now on track to hit $20 billion -- not $18 billion but $20 billion by 2018. i think he's going to pull it off. the man is continually underestimated, but not by me. speaking of underestimated, did you see mcdonald's roaring up today 3%? that move makes perfect sense as steve easterbrook, the ceo, delivered 3.5% same-store sales growth, an astounding number compared to the 1.5 figure that the naysayers, who don't he's accomplished, were looking for. easterbrook has re-energized the most important constituency, which is the franchisees. while people keep thinking the breakfast all-day menu is all he's got up his sleeve, i can safely say you ain't seen nothing yet. much more technology and innovation to come. do not ring the register. you know what else is worth hanging onto? alkermese. last night the drug company announced some very positive data on its breakthrough antidepressant that works wh

matt: and this is satya nadella, the ceo, this is his wheelhouse. absolutely, which is one of the reasons microsoft has been making this transition for some time, and doing relatively well. scarlet: let's get you microsoft results, which just crossed the bloomberg. first quarter earnings per share of $.50. on an adjusted basis,, $.76 a share and analysts were looking for $.68, so that's better than the highest estimate from the analysts we have surveyed. in terms of revenue, first quarter adjusted revenue of $22.3 billion, also better than what analysts when looking for, anticipating $21.7 billion, so that 22.3 billion is at the high end of what analysts were looking for, so a beat on the bottom line and the top line. more personal computing, that's one of the business lines. the revenue for the quarter was $9.29 billion. analysts with him for $8.9 million, so a beat. intelligence crowd -- intelligent cloud, the consensus estimate was just over 6.1 he $5 billion. anurag, i have been looking at these headlines. first quarter total unearned revenue. i

. >> it's a vote of confidence in satya nadella. >> see you tomorrow. >>> kelly is back here tomorrowoney" starts right now. >>> "fast money" starts right now. live from the nasdaq overlooking new york city's times square, i'm melissa lee. tonight on "fast," media legend and former fox president peter chernin is with us about what he thinks the next big thing in media could be. >>> our traders separate fact from fiction and give you the best move. >>> and stocks falling after a bernie sanders tweet. what other names could be in the

who's the satya nadella at apple? >> we think it's johnny ive. i don't fully agree with that view.nk it is -- for a big company given their organization, i think they can rack quickly. it's a concern in my mind but i think apple could be -- >> did steve jobs do the newton? was that steve jobs? >> might have been before. >> was that a bob scully situation? >> but he just had some kind of weird intangible style just knowing exactly what it would be. i don't know. is that still in the dna of apple now for the tv? it'd have to be a great tv. >> but i think it's two things. it was the innovation piece but also just the perfectionist. i don't know. now that you have the new ios, do you have bugs on it? it will occasionally bug out. >> i have to turn it off. >> occasionally it will crash on itself and go back to the main screen. >> yeah. >> those are things in a steve jobsian world would be so unacceptable that it wouldn't reach -- it would never reach you. >> or are we -- >> he was a i believe to keep that culture. i think they understand the customer experience. >> yes. we all like this

satya nadella on the conference call. >> customers continue to choose the microsoft cloud to help transformnizations. our commercial cloud annualized revenue run rate now exceeds $13 billion. and we remain on track to achieve our goal of $20 billion in fiscal year '18. once enterprise customers choose one of our cloud services, they continue to adopt more services. >> microsoft shares have now doubled since august of 2013. the stock hitting an all-time high. general electric earnings topping estimates by 2 cents. ge is also narrowing its 2016 earnings guidance and increasing its stock buyback program by $4 billion. slightly lower in trading. reynolds american has acknowledged a takeover bid from british american tobacco. the bid is worth $56.50 per share. that b.a.t. does not already own. >>> other stocks to watch today, shares of alkerm erk s surging as it says its drug to meet depression met the primary goal. planning to speak to the fda. and paypal better than expected results. the growth in customer accounts the company says it continues to see rapid growth for its one click and mobile