breathe happy. >>> we need to talk about the remarkable lazarus like direction of twilio.e is a company with a very sexy concept it's a cloud-based software communication play that helps developer connect with their users. think of the text message you get from uber, airbnb? it was red hot in 2016 last year not that much better stock got hit yet again when there was some business loss from uber. that makes its recent comeback all the more remarkable. so far this year twilio's shares are have more than tripled to nearly $75 as the company's growth has re-accelerate and then some. when the company reported last week, twilio didn't just blow away the starjts they also reported a surprise profit which sent the stock flying 63 to 75 single day it may have been the strongest quarter we got from any technology company this season but after this kind of monster rally, did we miss the move? could there be more upside let's take a closer look at jeff lawson, the co-founder and ceo of twilio to get a better sense of where his company is headed mr. lawson, welcome to "mad money." >> t

emily: what's next for twilio? jeff: we are excited about the newest product we launched, twilio flex, an application platform for the contact center. one of the neat things about being a platform that developers and companies can use to build just about anything is they show us the unsolved problems of the world, and one of the top spots we saw on our platform in recent years was the fact that some of the largest, most of this dictated contact centers in the world were -- most sophisticated contact centers in the world were stuck with solutions they didn't like. they needed more flexibility than the cloud had to offer at that time. they said they would build it themselves. with twilio flex, what we announced earlier this year is a contact center for the very largest, most sophisticated contact centers in the world that gives them super flex ability, scalability -- flexibility, scalability, and reliability. emily: we hear rumors about amazon. any interest? jeff: we are focused on building a great company. we sit at

the company gives clients like app --ir b&b and what's twilio's ceo joins us now.hat did you do this quarter to boost profit? jeff: there's nothing we did this particular quarter. it's been a gradual process of building the company to focus on customer success. we have a platform approach which puts developers first. developers bring twilio into companies of every shape and size and they use it to build interactions with their customers. we see this in industries from travel and hospitality to real estate, tech companies, old, new companies, everything you can, imagine. with the usage base model it starts out small -- anything you can imagine. with the usage base model, it starts out small. it is an efficient way to develop customers. this usage base pricing model gives us this great expansion rate. the confluence of all of that is what you see in the strength of our financial performance. emily: whatsapp is your biggest customer. for example. what do you help them do? jeff: when you install whatsapp, they send me a text message to confirm your identity. twilio pow

. >> another one thank you, sue >>> twilio shares have only risen 160% this year options traders thinkng started. that really true, jon, who's in chicago today? >> it could be, judge. i know this is one that joe loved and took some nice profits on maybe time to get back in. because what are they doing? they're buying the january 70 calls. now argus, they have a $75 target on the stock. the stock is around $69. our $61 rather so that's a pretty nice upside out of argus these guys are one of the firms that proved in the european union toward data security and we know how important that is. so what do they do pluck the jan 70s. sold the jan 80s put on a vertical spread second trade, myl. strong upside activity they have earnings next week, however. i bought these, but i don't know that i'll be in it until january. i think after earnings and what they say on the conference call, that would determine how long i stay in here, but both of them, strong usual activity. and i like this bet ahead of earnings >> doc, thank you. good stuff enjoy the weekend. see you next week. >> all right thank yo

he just scored big time on twilio today, he is look iing at disne.head of earnings after the bell can't wait to hear what he thinks about that. first up, we give you a check of the sectors as part of the s&p today. s&p's up ten points. energy, financials, industrials. arleinthwa bk te adg e y,acinwo minutes. - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life. the kayak explore tool shows you the places you can fly on your budget. so you can be confident you're getting the most bang for your buck. alo-ha. kayak. search one and done. when you rent from national... it's kind of like playing your own version of best ball

deliveredaker twilio on results. to increasehought sales by courting larger corporate clients.xpanded the sales team and bolstered the product portfolio, seeking better ways of engaging with customers. twilio customers currently include uber, air b&b and bigger corporate stalwarts like coca-cola. finally, the trump administration says the judge who approved the at&t takeover of time warner ignored common sense. the department of justice is trying to reverse the deal's approval. antitrust officials say the judge ignored the core argument time warner would have added bargaining power over rival pay-tv companies that pay for it s programming. that does it for this edition of "bloomberg technology." that is all for now. i'm emily chang. this is bloomberg. ♪ ♪ ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near o

do you think money is coming from microsoft to twilio? i think the little guys would get pulled up in the wake of a b beta of two. should the big boys be killing these guys >> such different assets it does not matter i am saying this kind of after hours move is typical. that's all it is >> it is a good sign >> well, it is not a bad sign from momentum stocks their guidance was not anything to stick at. you loo k at the stocks, the trade is 63 forward. so if nothing else you know in the environment that we find ourselves in, if momentum stocks will tell you anything maybe this is a bit of a white flag in the short term >> carter says that may not be the case for much longer we'll break it all down for you on plasma. >> another acronym >> there is a lot of way to play momentum m.t.u.m. let's talk about what you call value. the first letter of these five sectors, these are defensive assets this area of the market, just take a look at some of these numbers to put these in context. these five sectors, you got 32 stocks and 63 utilities and perc

shares of twilio popping after the cloud communications company boasted a surprise profit compared to loss and cited growth in voice and messaging products and then there is etsy, which surprised analysts, upping the full year outlook, jumping more than 10% for the week. the rally we have seen in online consumer oriented companies like these continues to speak to the overall firmness of the consumer economy. so who knows, maybe it is time to call these the junior f.a.n.g. names scott, back to you. >> call them something, seema. thank you very much. the performance has been great mike coe, how do you bet on these? >> we'll look at math now. and specifically we'll look at selling a put. why are we looking to sell a put? buying a stock here, stock is right now trading at an all time high we might want to own it at a slightly lower price we're looking to sell options. options on the stock like match are extremely expensive. finally, when we sell options, we usually improve the probability of profit. we can take a quick look right here and we'll notice that the stock traded about 5115 or s

buying more here >> buy more here >> buy more here twilio still long, still think it goes higher >> gott the 30s. >> jim, farmer jim >> roku. reports of a the close today stock doesn't always respond well however with today's drop-off i think it sets it up well for a pop. >> facebook. look at facebook up today snapped down today i think now it's the level of who will get more market share >> pete. >> electronic arts >> "power lunch" starts now. >> you started winding and he's got to go out. i'm looking at the clock >> final trade >> entire mets team. executive producer of that show, i can't even imagine what he's going through a moment ago give me a little bit more pete on your final trade. my ey on your final trade. my ey apologys. >>> electronic arts. options come in every single day. >> all right >> i said my piece on facebook it will go higher. >> you don't think there's a peak >> i'm open over here. >> you're out. >> we have 20 seconds now. >> go. >> tyler, you ready? >> i'm ready now >> you got it. >> thanks. i'm tyler mathison tariff tit for tat gives concerned as china announces

going into earnings twilio is the most crowdle pl zillow is set up well from an expectations perspectivesy is fine as well showing competence last quarter after the report and talked about a price hike from the commission perspective. they talked about a monthly subscription fee they were charging from my perspective that's a real confident play from their perspective. i think it's a nichy sort of play that can continue to work. i'm confident there. after that i follow with zillow and say that their business model is strong. it's interesting to hear what they say about the capital raze. but ultimately all three are solid long-term plays. jeana david likes them all how does it look. >> the biggest challenge for the space is going to be valuations. if you looks at etsy it's 60 times forward multiples zillow at 80 times forward multiples and zillow yet to make earnings. you know, this is going to be a challenge as the market starts to consolidate from growth and towards value. we have seen great stimulus beauyed spending and put that spending forward in the first part of the year i think th

. >>> stocks to watch today include twilio which recorded a second quarter adjusted profit, better thanxpected guidance for the quarter. and the stock is up 15% right now. it's gained more than 200% so far this year. that's not the only internet company that should be making investors happy and money today. etsy's second quarter earnings did fallshy of forecast, but revenue topped analyst's estimates. the online marketplace now expects revenue to rise as much as 35% this year that stock is up 9% after hours. etsy's ceo will be on a "squawk box" first on cnbc interview >>> weight watchers second quarter earnings beating forecasts. the company is raising its guidance for the year. shares are lower today because weight watchers reported a small drop in subscribers from the previous quarter that stock down 4% it's had an amazing run. stock is up nearly 99% year-to-date weight watcher's ceo mindy gr s grossman will be on "squawk box. maybe she can get together with the ceo of etsy. >>> shares of zillow today, that stock tanking, down nearly 16% landon dowdy is here to explain why. >> zillow

. >> update on twilio, i have probably 35% of my original position, see many analysts continue to comethe price target higher and higher 90s, 95s, probably a few hundred price targets. >> qualcomm, upgrade, they have a buyback in place, they're buying back 10 billion now and 20 billion behind that to buy back the stock will continue higher. >> microsoft, this is the company that we think will benefit, continue to benefit from the transition to the cloud. another huge theme we like to play where it is estimated that only 10% of total work flows are in the cloud, so huge runway for growth here, i think the company is going to be focusing on operating margin improvement >> pete. >> you know how much i love home depot, lowe's, going over 110 soon. >> that does it for us on "halftime. "power lunch" starts right now. >> we'll see you in a couple of minutes. welcome, everybody, to "power lunch. here is what is on a packed menu for a thursday everyone will be very poor that is what the president says will happen if he is impeached he brought it up what would the markets do if that dramatic eve

jim is talking to senator elizabeth warren and he'll be talking to the ceo of twilio, jeff lawson uptuned "squawk box" will be right back. >>> time now for your stat of the day. in the months since the start of q2 earnings season financials have led after similar moves the sector tends to pull back the following week >>> welcome back to "squawk box. we are watching retail stocks this morning here's what's going on macy's posted the stock down more than 5% though. a look at the retailer ins the red. jc penney's, kohl's and nordstrom and sears you can put on the list. eddie lampert making a couple of steps there to buy the kenmore brand. >> right i think $400 million is the price we had seen mentioned in the reports. >>> let's take a final look at the markets this morning futures at this point are down by 160 points for the dow. s&p futures down by 17 the nasdaq futures off by 64 we have been in the red all morning long but we have seen those losses accelerated over the course of the last three hours. if you take a look at what's happening in europe, red arrows across the board in fact

eunice will join us with an update on that >>> stocks to watch, twilio reported a second quarter adjusted profit of 3 cents per share, beating expectations of a loss of 5 cents per share. the stock is up more than 200% this year. wow. up some 19% overnight. >>> etsy's second quarter earnings did fall shy of forecast, but revenue topped analyst's estimates. the online marketplace now expects revenue to rise as much as 35% this year that stock is up 9% after hours. up 200% over one year. etsy's ceo will join us at 7:30 a.m. eastern >> the last time josh was here, he brought me an etsy made picture of myself. i don't know if you remember joseph likes to show that image of me on a dune in saudi arabia. so they had that turned into an illustration >> really? i did not see that >> by the lovely folks at etsy maybe he'll come with illustrations. >> i came in late notice >> there's a lot of crafts, craft gear on etsy as we all know >> it's kept its uniqueness. a lot of people thought amazon could launch its own crafts sub tab, but no such luck. >>> weight watchers second quarter earnings beating