steve kovach, the stock is off the high, it's been on this incredible run, is all the good news that it could possibly achieve from now on finally priced in? >> at least for the next year or so we'll see this run coming on through calendar '24, even beyond but then the question is does it run out? the other big tech earnings, microsoft getting punished because they failed to show any real meaningful revenue from all this ai stuff. it's microsoft, it's meta, it's google nvidia is the only game in town they're turning to build all these applications, ai applications we keep talking about. i think that's the next question as you look at nvidia. >> does nvidia have all the capacity to meet the demands it needs? >> it's not clear what the nature of demand is. remember toilet paper during the pandemic we all do. there was a run, people were buying more of it than they needed for a couple of weeks that's what's happening with ai chips. i spoke with frank slootman, the ceo of snowflake they also reported after the bell, data driven software company. he's stockpiling ai chips, buying more tha

steve kovach is joining me with what delivered and what has failed to impress. >> we start with a.i.esults. most failed to deliver. microsoft is the best example of this during the earnings call. shares were punished after executives said co- pilot, the a.i. tool won't generate meaningful sales this year. microsoft said it needs to spend a lot of money over the next year building infrastructure for all of its a.i. projects. all of this coming after investors sent microsoft soaring a week earlier with pricing for copilot of $30 per user per month. it is not just enough to put a price tag on the products, but investors want to sea sae salese in soon. the story is slightly different at dpoogoogle. it has made promises the core search business will benefit. most of the optimism were due to return in digital ad spending. it was a mixed bag for the a.i. names we have been talking about this year. apple ceo tim cook told me a.i. plays a role in the products, but it is mostly under the hood. not user facing. amazon tout customer wins with 3m and hsbc, but nothing about meaningful sales. meta

we start off with steve kovach and apple's big quarter. steve? >> yeah, melissa, it is, like you said, the third quarter in a row of falling sales, with revenue still beating estimates, but down 1% year on year so, revenues coming in at $81.8 billion, street was looking for 81 p$.69 billion and the eps was a bigger beat, $1.26 versus $1.19 expected. iphone, slight miss, coming in at $39.67 billion. just a couple hundred mill short of expectations there. but the story today is going to be services. hitting a new record of 8% year on year. growth accelerating there, booking $21.21 billion in revenue there. and gross margin, i want to point out the expansion there, also beating expectations, 44.5% gross margin, and it's up from 43% a year ago quarter, so, services really helping out there. and i got to speak to tim cook about these results about an hour or so ago, and talking about what really drove those services results we're seeing here and basically, reversing some of the trends we've seen. here's what we told me advertising has definitely accel

and can anyone match their strength, steve kovach has been looking into this for us. >> it's really allbout nvidia. we began this year, kelly, talking all about ai, just tons of hype and promises. but q2 earnings season, investors wanted to see results. honestly most failed to deliver. microsoft is the best example of this. shares were punished after execs said co-pilot the ai tool for office apps like outlook and teams won't generate meaningful sales this fiscal year. meantime, microsoft said it needs to spend a lot of money over the next year building up the infrastructure for all of these ai projects. all of this coming after investors sent microsoft shares soaring just a week earlier when it announced the pricing for co-pilot at $30 per user per month. the lesson here, it's not enough to just put a price tag on your ai products. investors want to see sales come in soon, but the major payoff may not come for some time. story slightly different at google. hasn't revealed how they'll make money at ai. has made promises that its core search business will benefit. most of the optimism ar

steve kovaches has more details on the quarter steve? >> yeah, melissa like you said, beats across the board for salesforce, and eps, that was the big one, after the company was cutting costs and increased its prices this year strong beat with $2.12 a share versus the $1.90 the street was looking for for eps. and revenue beat, too, but that was top line growth slowing. it's up to $8.6 billion. compare that to the 22% revenue growth reported in the same quarter last year. more positive news in here the xcompany raising its revenu guidance for fiscal year of '24, easing fears that enterprise software spending would keep on falling. the ceo saying the back half of the year is looking strong salesforce expecting up to $8.72 billion in sales for its third quarter. that's above estimates and eps guidance smashing expectations, as well. expecting up to $2.06 a share. street was looking for $1.83 and the call has been going on 15 minutes, so, i'll be back with any good headlines. >> steve, thank you. steve kovach bonawyn? >> i thought this might

steve kovach on salesforce. >>> another note grabbing our attention, evercore letting the dog off thetheir words, downgrading chewy dropping price target to $35 a share citing a decrease in net customer adds and lower second half outlook after a modest increase in the first quarter. courtney reagan joins us. part of the note is the analyst did say, we were wrong being overweight on the stock. it's underperformed so far this year. what are the big concerns? >> look, when you look at chewy's quarter, it was okay. but in linish, a little softer than some expected in some of the metrics. it's going forward, i think there's a lot of concern. the loyal customers are still spending actually more so than they were a year ago when it comes to that recurring revenue. you can set your pet's items to come on a recurring item like food and the like, things you're always consuming for your pets. that is doing well. the loyal customers are spending more. the problem is that the customers they have just seem to be falling. the net adds is a real concern currently and going forward. that's part of wha

john, i will send it over to you. >> steve kovach, thank you. we are seeing a flurry of software announcements having to do with ai, we are expecting to hear more from salesforce, dream force coming up later next month. expected to hear from service now as well. several others. how long does it take to secure this stuff as new product, new versions that we are talking about, chat gpt for enterprise come out? >> we see not only chat gpt but we see google and other large software companies using and distributing generative ai technologies. it takes a while for this stuff to be secured. microsoft has had notorious problems with cloud security. recently, there was a large intrusion of government email by the chinese stealing very sensitive information based on vulnerability in well-known, well understood a soft software cloud product. i think it is also reasonable to expect some of these newer products and applications will have software and there will be new attack techniques against generative ai that we haven't seen before. i wouldn't consider th

. >> still get some key earnings reports, we are going to in overtime today as well, steve kovach firston what to expect from salesforce as we were discussing with dan ives a little earlier, just had a really nice run into this number that's a big one this afternoon. the story this year with salesforce, it's all about cutting costs and increasing those profits. we know there's activist investors like starboard, we're concerned the company is focused too much on top line revenue growth instead of profits and boy, they got what they wanted mass layoffs at the beginning of the year, plus getting rid of unneeded office space, and more recently price increases for its products now, for this report coming out in about ten minutes' time, street expecting revenue to grow about 10% year-over-year to more than $8.5 billion. that would be a slowdown, though, in top-line growth from the 22% reported in the same quarter last year. and they're still grappling with a slowdown in enterprise software espending, unclear what that will improve. it's going to be really important to pay attention to the gui

steve kovach joins us now. >> i always have a starbucks story for you guys.day is recalling 40,000 vehicles due to a software risk that can cause the car to accelerate after release the brake. it recalls elantra hybrid vehicles from 2021 to 2023. the company will upgrade the software free of charge. >>> spirit airlines will pay over $8 million to settle a class action lawsuit over surprise fees. passengers say the budget airline added carry-on bag fees to tickets bought from third-party vendors. that includes expedia and travelocity. eligible travelers seeking refunds will get up to 75% of their fees back depending on the number of people submitting a refund request. >>> and starbucks confirms it's looking at scanless pay, which is a contactless checkout method. it can identify a starbucks app users' current location when they're in the drive-through lane. the experience is just being tested with employees. zinhle, ellison, i'll send it back to you. >> sounds like lot of tracking for a little latte, but i guess if it works. >> order and pick it up, that's wha

cap the stock is a winner up 50% with iphone demand in china which is a focus for investors our steve kovachhe market set up for you >> apple expected to deliver its third quarter in a row of declining year over year sales today. as sentiment in the u.s. economy improves, some are optimistic for the second half of the year for apple. outlook from apple on the quarter and any hints executives provide that demand for iphones is recovering. morgan stanley is writing that the firm expecting to get guidance above the consensus which is thanks to stable iphone sales. dom, back to you >> joining me to discuss is daniel flax from newburger daniel, iphone is the biggest money part of the apple business according to steve, but service on the growth engine what are you watching? >> dom, great to be with you we're focused on the continuation of the ability to execute on the iphone products we are seeing the base continue to grow. we are looking ahead to iphone 15 and the new cycle for the fall which helps reaccelerates growth late this year and into 2024 the other key thing is as we he are talking about

our steve kovach joins us now. steve, so many interesting facets of this earnings report i'm so curious what you're expecting now in terms of the new iphone cycle and that expected launch in september >> yeah, julia, i think that new iphone cycle, iphone 15 probably going to come next month and get a few weeks of sales out of this quarter for apple, i think that's largely behind that bullish commentary around the iphone segment that we heard from apple last night, saying they expect to see a re-acceleration of growth there. along with that important services business. so, look, there are a few reports hanging out there that there might actually be a price increase on these new iphones. if that is the case, that's going to help keep revenue growth on the iphone segment even if unit sales remain flat that's something that i know investors like to take a look at one of the key things in a few weeks when we learn about the new iphones is whether or not there's a price increase again, apple overall showing that hardware

josh, hold your thought here, too, because i'm told steve kovach will join us for a news alert. apple has sent out an invitation. is that the case? >> reporter: that is the case, scott. >> oh, yeah. i'll be there. >> reporter: the iphone 15 event, september 12th is the date. the same thing that we talk about every year, scott, new iphones, probably new watches, those will be the key things. as far as what to expect, apple is basically admitted they're going to do this. the biggest thing to the iphone will be the plug, that charger on the bottom, will move to usbc, the universal plug that android devices use and every other gadget on the planet uses now. so we're going to hear a lot about chargers and plugs and things like that coming up at this event, scott. this is as expected, september 12 is the date, and they usually start selling a week and a half later. the following friday is when you can expect to see them go on sale. >> it just lets us continue this conversation about tech, guys. going for six of seven up days on the nasdaq. we asked whether tech is stabilizing. that wa

. >> bringing another layer to the story, steve kovach is live outside of apple headquarters in cupertino, california. we've been talking about the install base, what it means, how important it is for apple, its ecosystem, its brand, revenues what are we going to be looking for this afternoon when apple reports? >> reporter: dom, the headline we're expecting to get revenues will fall and the big question is can apple return to growth. a little hint at what to expect for the current quarter. the new iphone is going to come out to the end of the quarter, a couple weeks of sales. to your services point, what morgan stanley wrote last week, the install base, if we get updated numbers on not just the apple ecosystem install base, macbook sales have fallen dramatically the last couple of quarters we've seen signs from intel and amd that maybe the pc market has bottomed out, apple has experienced it as well qualcomm and their warning saying smartphone sales will be down low double digit percentage does that apply to iphones what i want to hear from tim cook is what they see on demand side, has i

steve kovach is in cupertino, with a preview of what to expect from apple earnings. >> hi, tyler. revenues are expected to be down for the third straight quarter. it is up nearly 50%. like you said, demand has been really tough on not just iphones, but all consumer gadgets throughout the industry this year. and the real question going into this earnings report is going to be whether or not we see some guidance from apple on the recovery in that demand. so we are also expecting some stories out of countries like india and indonesia, but not enough to make for those markets like china, which have had some very troubling economic data over the last few months, which is the opposite story of the united states. one thing i'm interested to hear from tim cook is any outlook or commentary from the strength of the u.s. economy right now. and besides iphone sales which is the most important segment, but services is another thing to watch. we saw last week, meta and google reported a resurgence. apple could benefit through their app store apps and things like gaming could also help with appl

steve kovach joins us live from san francisco.iming going into a quarter to raise the price targets here >> and also following a lot of other calls we've gotten over the last several weeks wedbush and morgan stanley are at that $220 price target. thursday is the earnings we know from the loose guidance apple gives, not formal guidance, that sales are going to be down they guided towards low single percentage points, that includes iphone both are saying iphone sales will be down about 1%, 2%, 3% year-on-year that echoes what we've seen the last couple of quarters from apple. that demand is really falling for consumer electronics we see that across the pc industry we see that in the mobile chip world from qualcomm and the likes. despite the growth story they're telling in india, as these notes often note, it's not enough to make up for what we're seeing in china, what we're seeing in the united states. demand is still down f of course, we're going to get new iphones, certainly next month, at the tail end of the current quarter. the

steve kovach joins ahead of that report. >> the third quarterly revenue decline in a row for apple that's what we're expecting. that's largely due to tough demand through the macro environment through the first half of the year and it's not enough to make up -- despite the growth we've been seeing in countries like india, indonesia, they're talking about that story of growth in emerging markets but not enough to make up for what we've seen following demand in china and the united states we are expecting some green chutes and return to growth as we saw from meta and google last week is coming back to the app store and possibly a resurgence in gaming. like you were saying earlier in the show, julia, it's the outlook for the current quarter and beyond that everyone will be hanging onto apple doesn't give formal guidance but they get some sign posts of where things are headed morgan stanley analysts, for example, are looking for a stronger than expected guide with return to double digit percentage growth for the services business. of course, we're here in the september quarter, julia, that me

steve kovach has the headlines. >> news out of the supreme court saying that this is in the ongoing case epic games the company that makes fortnite and apple. a few years ago epic sued them basically saying that before this case can get to the supreme court apple is allowed to keep its current payment rules for in app payments this is a big contentious thing between developers that apple takes a cut of every trin. in the original case apple lost one count of the several counts that said developers basically can't put messaging in their apps that tell people you can go outside of the apple ecosystem to make these payments justice kagan according to reuters putting out a ruling saying apple is allowed to continue doing that until this case gets to be heard. this is a minor setback for epic games, but still this case has a long way to go before it's finalized, court. >> thank you very much for bringing us that update. shares of apple moving lower we talked about earlier in the show how they are below the 50 day moving average. >>> new developments out of washington as the white house takes

st steve kovach, the analysts have been all over the map on this.period between the june report and the phone cycle beginning tends to be good >> yeah. that's right but look, today, the reaction's loud and clear we're seeing apple down 4.5%, and the reason investors wanted to see apple return to topline growth in the current quarter, but apple warning about a fourth quarter in a row of declining sales. if you're keeping score, that means apple's full fiscal year will be a down year. now, it's a tough environment for hardware demand, even as apple sees growth accelerating again for services let's talk about what the analysts are saying. for example, ubs, this morning, saying, some of the growth improvement apple predicted for iphone and services will come from better foreign exchange, not necessarily new iphone demand but goldman analysts, a little more bullish, especially on the services front, pointing to that install base of 2 billion devices, and a return of advertising and sales in the papa john store. n app store this report putting pressure on

steve kovach is here to help us make sense of it. >> i guess if you tried to pick one it would be we went through this really tough 18 months in the video gaming world, tough compared to the pandemic when we were all stuck inside. >> sure. >> kids playing more video games. we saw hyper growth from roblox, they opipo'd in the thick of th pandemic there were supply chain issues, the supply has caught up to demand take two, same thing as roblox, huge boost during the pandemic what we saw from roblox, though, is they had to spend a ton of money, guys, in order to maintain all the new users they were getting during the pandemic, that's infrastructure costs, hiring new people, they're starting to dial that back, i spoke to the company's cfo about this on the results. what they're projecting here and this was a huge discussion point on the earnings call this morning, you guys are spending so much, margins aren't great, you know, losses continue. they're saying it's going to get better next year, we're spending what we need to spend now to keep up with all the demand that we had, all the per

steve kovach is here and has the deep dive on this. this is an usual situation? >> yeah, exactly. give up and get the deal through. microsoft will let a french studio best known for games like assassin's creed, they will takeover licensing deals on cloud gaming services for 15 years. this means microsoft will still sell activision games the traditional way, and putting those games on streaming services, that will fall to uv soft. this new offer is set to put a third party in control of the streaming games. the cma says it's not a done deal yet and will still scrutinize these new terms and make a decision by october 18th. by the way, guys, over here in the u.s., the commissioners have a chance to review the deal again before deciding to try again on its own in an administrative law point, guys. >> is there a point where it no longer makes sense for the deal if you have to keep chipping and chipping and chipping away? what is the thing they want? >> the mobile business. maybe one day the netflix gaming will come to fruition, and that's where all the money is in gaming. that's most o

steve kovach has been following the story and joins us now what's happening here? >> yeah.they partnered with a company ias, publicly traded company i didn't know this until yesterday. what they do -- they claim they can do is -- if you're an advertiser, before your ad goes on to the twitter, they can determine whether or not it will be next to so-called brand safe content. this is a move to attract advertisers back, whether or not this technology works as advertised is a whole another question, i guess. but this is -- this company works with other platforms as well this is not like a new or novel idea. >> is it a keyword >> they do key words and also do level, like how restrictive do you want it to be? or how loose do you want it to be >> can you be near people and not near other people? i don't want to be near any politicians, for example. >> that, i don't know. i don't know if it's that granular. >> we were talking about dave portnoy. if he was too hot to handle, can you say i don't need -- i don't need to be near dave portnoy others may say i want to be next to every el