so i think the valuation is acceptable at this implied valuation. >> a soaring intel is getting crushed and amazon is volatile, but it is back in the green as the call gets under waand y we're about 15 minutes in right now. we'll bring you the very latest right after this i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ >>> welcome back to "fast money," intel sinking after its earnings report and let's get to josh lipton. >> melissa, underlying trends are concerning that is what intel's bob swan is saying take a listen to what he's telling analysts on the call >>> our conversations with customers and partne

of a company the valuation will go higher because it becomes something that you can't live without but as the demand grows it's going to come in towards the high end of its range absolutely but then also the main question is are there margin sustainable right now they're both staying on eighty percent gross margin is that actually sustainable as they continue to grow. well as they go public and raise even more money i'm sure they'll invest in ways to create more of a demand but you're right it's funny people value the companies that are losing money because the only get better and then use a company that's when you say well can this only get worse so time will tell i've got to roll with the hot hand there's a thing we say in truth it's the flames and zoom right now it's maintaining those margins without the help of the public when you get the public so more money behind it maybe it will grow even more and maybe if they grow even more it doesn't matter about the profit margins because if you have bigger numbers you can have a smaller profit margin and still make a lot more money smaller

valuation of netflix and that affects the overall -- >> it's interesting. we talked about this and i'm not breaking any ground here ask disney got a lifeline thrown back at them last summer when sports gambling was legalized basically. we talked about it last night. it was a $99 stock and basically, sort of, it was failing in a lot of ways gambling came in and it saved espn and the stock is 18% higher than what it was and but for the move in december when all stocks fell and the stocks have been going up for the last year i'm with steve i don't think it needs to compete on price with netflix. thaw need to compete on an experience with netflix. i don't think they're going to beat them necessarily, but i don't know if it matters there's probably room for both, but i also agree with steve that until you see this at 120, so for me, i wait until they report on may 4th >> you're making the comparison with netflix what if you just took a look at disney's business, what it's valued at and what its offerings are. it doesn't have to be a netflix. >> no. correct. i do

valuations can go to any level you want. i lived through 1999, so did you. crazy valuations, but the problem with netflix is you've got four guys with lots of capital between apple, disney, time warner which is owned by at&t and comcast all getting into that business. if you're netflix, i just don't think you'll be able to grow nearly as fast and to your point it is priced at a very high valuation. they're going to lose $3 billion this year. they're going to need their own content. the latest disney movies, captain marvel isn't going to be on netflix. so you watch netflix to get content. i certainly like my superhero movies. i'll probably end up maybe picking up disney. so for their streaming service. that causes a lot of problems if you're the incumbent. >> dan, the sensational appetite tor content, do you think this will drive more m and a and if so, where? >> i really do think. it's a great question. if you like at the guys getting into this business and you say, all right, how big are they and you look at the combined side, especially in video gaming, le

includes debt in the valuation but subtracts cash pinterest doesn't have direct peers. its revenue is generated from ads so investors are comparing its valuation to other ad-based models like snap, twitter, and google companies trade on average around six times their projected 2020 revenue because pinterest also enables users to buy things on its platform, investors are looking at a basket of e-companies as well these businesses trade closer to four times on average. when compared with both the ad basket and the e-commerce basket, pinterest's ipo valuation looks more expensive at the mid-point it's about eight times projected revenue. this might be surprising to some since the ipo valuation is actually cheaper than the $12 billion it was valued at in 2017 during pinterest's last private round. still seem willing to pay that premium to its publicly traded peers though because top line growth is so strong relative to the more mature businesses in the baskets. melissa. >> leslie, thank you so given all of that, is pinterest looking like it'll be more of a value trade or a

valuation matters from an investor standpoint. not the next two months but over 12 month horizon or even over 18 month horizon the valuation matters and that's what gets us into that bucket >> as you see these f.a.n.g. stocks start to perform again, they fell out of favor, now they've had these amazing snapbacks, we got facebook reporting its earnings tomorrow. you're going to get other big names, doc, coming down the pike it's hard to get off that bus, no >> well, people did get off the bus in the fourth quarter. they're back on now. >> and it's going like 80 miles an hour. >> it feels like people are worried about the regulatory environment in that space going into the 2020 election which i agree with so, they trade at a discount to where they should relative to their growth i think it's safe to say that the big internet companies are cheaper, typically google and facebook are cheaper than where they would be if they didn't have that risk overhang going into next year so yeah, i think there's room and there's definitely room, th

almost as high as $90 billion slack has a valuation of $17 billion.some of the recent ipos have taken flight. zoom video, pinterest, levi's posting big gains. lyft is getting used to its gains, falling 25% since going public how should you play this hot space? mike is looking at one stock that's more than doubled since its debut last fall, that would be yeti. take it away. >> any austinite is going to be a fan of yeti and their products this is a phenomenal product, the stuff they're making the thing is this is a stock that's really taken off, as we can see here. obviously, some ipos have been pretty disappointing going into earnings, right now, the options market is implying a move of 15% in either direction. given how far it's moved and the fact that it basically has been progressing straight up at a 45 degree angle here, i think there's some chance that the earnings here might result in a somewhat modest move certainly to the upside, there might be some limitations. we'll look at trading a call calendar here. because we have this high implied volat

valuation support still exists.t's a little bit higher across the other tech sectors we cover, so i think there's a little bit better expectation going into software versus internet this q1. >> mark, looking at both you, your universe and brent's universe, a lot of outperforms but not neither one of you for twitter. what's the problem >> twitter is an asset that surprised me with how well it fundamentally recovered and how well, the stock it over the last two years. i think they have a challenge this year in terms of just tough comps and margins need to come down. they had a couple of really nice events last year including the world cup which generated nice 30 to 40 million in inkreeltal revenue. all of that spend -- you remember that facebook kind of amped up on last year in order for platform security. i think twitter needs to do some of the same things and they're sort of warning people, that's our interpretations that margins need to come down a little bit. if we were going to get constructive on the stock, it w

but the valuation on pinterest versus facebook facebook is valued at fifty times what the high end of pinterest ranges be so even though it's only ten times as many users the valuation is fifty times more so if pinterest is able to scale their advertising revenue you could be looking at a real buying opportunity when they go public i'm definitely going to have my eye on this one because i think the valuation is exciting and the so-called down round might be an opportunity for investors to get in yeah exactly so i think we're seeing like a much slower pace of growth here whereas most investors in the private market they're actually accustomed to more of a j. curve or a hockey stick kind of trajectory so i think right now what we're seeing is that the private market is actually sucking a lot of the value out before it even has a chance at the public market but you're saying that right now is an opportunity for us. yeah i'm just looking at the comps two hundred fifty million users which could grow and all the upside in revenue and i was like the fact that it's already gone down so we're

remember, lyft was 50% above the last valuation.rest initially looked like it was about 25% below -- >> let me stop you and let's get to bertha coombs. >> opened. [ applause ] >> reporter: guys, zoom is now open here at $65 even as they have tremendous interest still coming in at the end over all this stock price $36 a share that was well above the upward range also an upward offering as well, tremendous interest in this ipo this morning. pinterest not quite yet open but zoom having a strong debut. jon fortt is over on the other side and has a little more here, jon. >> yes. i can see the ceo from where i am, he want standing over there in the throng watching the book build, he was over having conversation interestingly with a small group of people. he has been focused on the culture of this company as well as on the growth. it'll be interesting to see how he puts into context this huge opening that they've had, of course, they've priced above the range and that price, 36 have been blown out from where it's opened. trading at $64 a s

valuation less than it fetched in its last valuation round.gram, twitter, even more face possible fines over a u.k. band under a new law if they

nathan it's been a wild ride for this stock and even though it's well below its price, the dean of valuation says it's still not worth the price it's trading at now and plus big banks under pressure this week as the ceo head to the hills tomorrow and the companies gear up for earnings later this week, but the chairwoman says investors are getting it all wrong she'll explain we throw it out tonight with the market sell-off and the dow fell 200 points and the s&p 500 snapping an eight-day winning streak and royal investors that the biggest loser today, small kwaps. the russell 2000, getting hit the hardest, sending the group down more than 10% from its highs. back in august leaving the broader markets into the sell-off are small caps is it still safe to buy stocks? pete, we'll kick it off with you. >> still think it's safe to buy stocks it's one of the messages looking at different things and i'm impressed with what i saw today out of different techs obviously, we see the semis have had pressure and they've had a great run and some bounces here and there. i look at volatility and liquidity and

slow ask steady wins the race and the valuation is reasonable and they've made a transition. so cisco was fine here and it t continues to grind higher. >> i forgot when we were doing. >> and the rules >> a different game. mark 10er tepper is up next. >> fade it over the last three years they haven't grown at all and they're not executing well on their internal initiative and i don't know how they will execute on their acquisitions and again, they're not growing so i would be avoiding this one. >> maybe this could be a value play >> it could be a value trap, too, melissa ibm to me, despite the fact that it's an interesting valuation, they've seemed to begun turning this titanic it's not the titanic, but it's certainly nothing to get excited about in terms of earnings growth or positioning, frankly at one point it was a bitcoin play and i don't know what's going on >> anymore >> no, they have a block chain division they make an awful lot of announcements and again, it's the growth to go back to the titanic and it trades like it has an anchor around it and it just doesn't trade

also higher today amid the market strength is a rush of ipos with some very lofty valuations dependingics. are things getting too frothy? joining us are two venture capitalists phil, co-founder of the ai focus ventures all turtles and senior adviser at general catalyst and paul holland also here at post nine bob pisani good morning to all of you bob, i will start with you after the record closes yesterday for the s&p and nasdaq, just to categorize where we're at in terms of markets and the role ipos have been playing >> i think the important thing is earnings are holding up they are not going down. they're getting better i think we're going to be flatish, not down. we have the fed behind the stock market essentially let's be honest about that and china is improving and europe at least is stabilizing there's your four factors. look at the ipo market lyft is now the outlier. the ipo rush since levi strauss has been successful, all the big ones have been to the upside, zoom, pinterest, all up. lyft is not. you can debate is it because they have big losses, because the pricing was wrong? w

and so i don't think that high valuations are an issue.hink lack of an ability to see the future and appreciate where paying those valuations is worth it is where investors make mistakes >> let's double click on this idea of kind of a weapon of both capital defense but also destruction. or disruption. in zoom you had amazing capital efficiency which was why the return was so extraordinary. when you look at areas like banking with robin hood or when we look at areas of ride sharing or we look at areas of food delivery, where soft bank has moved in with massive checks and now you have competition that is diseconomic on a unit level, what is this going to do to the overall returns of these businesses that now have to raise dramatically more capital to compete with diseconomic behavior we've seen this with china which has been very destructive to their overall value. >> if somebody says the share price is $100 versus $10 the average person thinks that $10 is cheaper, even though it's all relative we see the same thing playing out in the fund-r

and the valuation that you say to yourself it's not the 16 times earnings and for apple that is prettyand this is not a company that we're expecting to see explosive growth and quite the opposite. this is a trade that makes a great deal of sense and another thing is if you have no trade in apple. this is trading an in the money call spread trying to make sure that you don't get the elevated decay that you get in options and still taking a modestly bullish bet and this makes sense. >> it depends on how it reacts to the numbers and you've had two upside moves and two muted forms. so was netflix apple is the one in many ways, obviously that's the most interesting and it's the lowest beta and 12.5 off its high and exactly as dan said, it is an uninterrupted almost unnatural in that sense and there's more downside risk than there is upside potential >> apple doesn't have the kind of fundamental propellant embedded like microsoft did. microsoft surprised us with better acquisitions in the cloud space than we might have expected and that's still a growth business for them it's a growth busine

earlier estimates have seen a valuation of up to 120 billion.hey are expected to set the terms as soon as today. of global is the head asset allocation at societe generale. and here to talk tech is matthew from bloomberg intelligence. they give for joining us. -- as always,g thank you for giving us some of your time. why did amazon shares not react as positively? thew: basically, guidance for revenue is still growing well, but no better than the markets are looking for an you had profit guidance somewhere below q1 beat. so there has been this? about how much they will invest. how muchuestion about they will invest but there will still be a big drag. francine: uber looked at lyft and repriced. matthew: it is interesting because the price tag would value them pretty much the same as lyft. they potentially have much more attractive growth opportunities and perhaps are trying to leave a little bit on the table. rather than take too much themselves. we will see where the enterprise and is up, but there is still a huge amount of potential. francine: f

>> the way miller get the valuation of the alts is twofold.hat level of free cash flow can they generate on a five-your basis, and we also use a special methodology called some of the parts where you give a high valuation for the fee related earnings. if you look at where blackstone is today, pretty c corp conversion, you are looking at a stock that should've been in the mid-40's. now that they are c corp and ownership opens, there is potential upside to that. let's take it one day at a time and also remember, the long only's cannot own the stock until july 1. blackstone has a really nice day today. we think it will outperform over the next few months, but it may not really work until july 1, when the long only's can own it for the first time. shery: greg, great to have you with us. a very news timely day. thank you. coming up, the world's largest pop firm banking on legalization in the u.s.. canopy growth cutting in deal that may usher in a wave of consolidation in the industry. that is next. this is bloomberg. ♪ shery: this is bloomberg mark

that is about an $84 billion valuation. previously they were talking about $120 billion valuation.ative there. i think that is just the market response to the fact that their growth has slowed and they are seeing some interest, investors questioning uber eats' growth at the moment. still a lot of interest in that business as well. vonnie: olivia, thank you. guy: still ahead, we are going to be talking about oil. oil is being battered this afternoon. brent is down by 3% come but wti down by 3.5%. that's next. this is bloomberg. ♪ ♪ guy: from london, i'm guy johnson. vonnie: in new york, i'm vonnie quinn. this is "bloomberg markets." guy: it is time now for our stocks of the hour. big oil a big focus. chevron beating estimates, while exxon stumbled, posting its biggest refining lost in 17 years. emma chandra is here with more to find out what is going on. let's start with exxon. emma: there was a big miss. atnings-per-share came in of5 versus expectations $.78. they also saw production below 4 million barrels a day. refining really the weakest part, putting in its poorest performance

>> the valuation we all know on the desk, ridiculous but it just continues to go to the upside and ink people just love the ceo. for that reason, scott, i think executing just fine. the problem is that if you look at it. we all see it and the good side of what's happening right now but everybody seems to be not looking at, hey, this valuation level for their peers is absolutely ridiculous at this point. >> the valuation level is always sort of. >> it was always high but it's, now it's at that point where things didn't go so well i mean, they had those new stories that came out. that was the start of it and the sell-off but valuation, you've got to get your arms around that, right? we talk about mcdonald's maybe being a little bit high. how about chipotle it's ridiculous. >> it's insane it i'd rather buy amazon at this level than chipotle. >> they make tacos, come on. >> burrito bowl. >> a minute left final trades brenda, start us off. >> abbott labs this is a company in the health care sector wrapped up in all kinds of political chatter but has not participated in the rally thus far

. >> pinterest is seeking a $9 million valuation now investors are trying to decide is that expensiveis it cheap? ipo values are decided on a relative basis. investors will take pinterest multiple enterprise value to forward sales and compare that with its peers in the market. pinterest doesn't have direct peers. it's somewhat of a unique business with the site that provides various how-tos, decorative inspiration and recipes. but it's revenue is generated from ads, so investors are comparing its valuation to other ad based models like facebook, snap, twitter and google. this basket of search and social media companies trades on average around six times the projected 2020 revenue. because pinterest also enables users to buy things on its platform, investors are looking at a basket of e-commerce companies as well such as amazon, alibaba, far fetch wayfair. when compared with both the ad basket and the e-commerce basket, pinterest ipo valuation actually looks more expensive at the midpoint, it's about eight times projected revenue. this might be surprising to some since the ipo valuatio

we're valued going into earnings season >> i really don't think valuation is a reason for concern. not with the alternative of where yields are on bonds right now. so yeah, the market's a little bit above average but i don't think that's a big deal. because of the alternative is just not that good as it pertains to tech, look, technology stocks are a lot not back to their all-time highs of last summer. just certain pockets like cloud and software they're the valuations, so i think there's still opportunities within technology. >> and finally, what about places like energy or financials >> financials, i think that's an area that's very interesting it's lagged significantly last year and has finally started to cap some wind as yields are going higher companies that are heavily regulated and very, very attractive so i think those can have wind at their backs for the second half of the year. >> thanks. kara murphy and andrew slimmon. >>> wynn resorts rallying with a big up more than 7% this week shrugging off recent regulatory concerns over the gaming hearings in massachusetts. casino

a massive valuation.d be a $9 billion valuation, the last valued at 12. >> investors who had bought an earlier will see this near deca high end, but the those who investor recently see the price go down. and then there's the fact that pinterest has had to wait this out. we look at the valuation relative to last round. we don't look at how much they should've kept moving, where you can investor money elsewhere. they are waiting out to grow their valuation which never comes. shery: tell us about the timeline for the ipo. eric: they just updated pricing. another aggressive move forward. on a friday. expected to uber drop its perspective this month, will begin its roadshow. pinterest on top of it. these companies really want to get out the door right now. amanda: pinterest is losing money, which seems to be the name of the game. how do the metrics look? when we thought about it earlier, we thought, how is it monetizing itself? is it turning eyeballs into actual dollars? eric: they want to set themselves up as

you have this $1 billion valuation. are you specifically putting your money with these new funds? mike: global expansion in terms of asia where we will be applying for licenses and key markets, like singapore. also, japan is passing a new bill around crypto derivatives. we will be applying for that in japan as well. also, markets such as u.s. and europe where we can bring the local liquidity that we generate from japan to the global market. yes, we will be in the u.s. later this year and look into eu as well. ramy: you mentioned singapore. it seems like a friendlier place with regulatory as well as taxes. why the move from singapore to japan? mike: japan, when you look at the retail fx market, it has always dominated the world. japanese users compared to preferred. 401(k)s they will look at the u.s. dollars and japanese yen and trade because japan is a large export country. to the japanese retail customers, cryptocurrency was the new shiny adjacent market to the forex. emily: used to work at softbank. masayoshi son has

what's the trade >> yeah, i mean, we have the highest valuation in three years.owest dividend yield in this sector in three years and of course the rates are really the story here. also, employment we have low unemployment that's really the two propellants. we have 5 g buildouts for the towers and on the apartment reits we have seen them slow down some construction there's some capacity there. so you have both the valuation question and possibly some operating issues that could basically cause this rally to end. here's a situation where the options are not particularly expensive. i was looking at the june '86 puts that gives us adequate time if it does reverse the way that carter indicated i think there are good fundamental reasons it will do that even if we don't see or hear anything about a potential rate increase. this is an inexpensive way to take a bearish position in it. of course if it does continue to rally we're risking a relatively small amount of the current level here. >> the call on yrl and the trade itself. >> the direction i think is the right play

what's the trade >> we have the highest valuation in three years we have the lowest dividend yield in in three years and of course, the rates are really the story here and also employment. we have very low unemployment and that's the two propellants and 5g buildouts on the towers and for the apartment side on the apartment reits, we've seen them slow down some of the construction and there is some capacity there and you have both the valuation question and possibly some operating issues that could basically cause this rally to end here is the situation where the options are not particularly expensive. i was looking at the june 87 puts and those were $1.85 and that gives us adequate time and reverse the way carter was indicating and there are good fundamental reasons if they do that even if we don't see or hear anything about a potential rate increase and this is an inexpensive way to take a position in it and if it does continue to rally, we're risking a small amount of the current level right here >> brian, your thoughts on the direction, the call on nyr as well as the trade itself >

that implies a valuation of a diluted basis of 90$90.5 billio at the high end of that range.of their marketing process, uber is trying to differentiate themselves from lyft which went public several weeks ago and down about 21% from its ipo price the differentiation for uber is touting its size and scale as well as global reach and really honing in on this idea that they have a much more diversified business model in freight and eats and other new areas. some key problems still remain especially as you look at the q1 financials also disclosed this morning. these are projected financials but still they give you a picture of what they're looking at from that standpoint. they showed operating losses of about $1 billion for the first three months of the year and top line growth has slowed some key questions for investors will remain as they continue their road show over the course of next week and the week after. >> uber trying to distinguish itself from lyft, maybe that lyft experience coloring the anticipated valuation here let's turn to slack. deid deidre >> busy days for the

>> i say valuations would definitely be one. you need to make sure you're diversified because there is way better buying opportunities in terms of the value perspective overseas but yeah, i would say, valuations and who knows. we actually might have a melt-up on your hands this year. at this point i think it is wise for investors to take profits and reallocate. deirdre: before that erin, i know you're watching financials and you're pretty bullish, right? this is the first group reporting earnings in this new earnings season you said you feel pretty good? >> financials are the first reporters and there are a couple things going for them. one, they have actually have positive earnings growth for q1 which only three out of 11 sectors have. deirdre: good to be a medalist. >> good to be positive. good to be growing. actually they still have pretty low valuations. with the headwinds of the fed is going to maybe even potentially cut rates or keep it flat, that certainly makes it a little harder for them to make money with the flat yiel

the valuation saw it as less than the $120 billion valuation that many bankers told uber it could fetch of rolled their eyes at but despite the local elower va, it could be the lowest ipo since 2018 >>> amazon's earnings per share had a huge beat. wall street was looking for $4.72 a share. amazon came in at $7.09 a share. amazon cloud revenues were up by about 41%, so it was helped by some of the same things that helped microsoft amazon shares up by less than a percent. >>> and the first read on first-quarter gdp is due out in less than 90 minutes economists expect to see a reading of about 2.5%. we're going to bring you the number and instant market reaction as soon as it hits. >>> well, a few stocks are on the move this morning. intel most significantly, shares are sharply lower. it wasn't the just-ended quarter that was the problem here. both earnings and revenue beat for the quarter. the real story, the outlook intel slashed revenue guidance for the year intel's new ceo, bob swan, partly blaming china for the slowdown >> our conversations with customers and partners across our pc an

caroline: what is that valuation?ast private valuation was $15.1 billion, so it has been moving down a little and we have been tracking that. uber clearly watching that. theerest had to set below last private valuation. those are important data points. caroline: for what it is worth, $16.1 billion is the current market cap. romaine: i feel like with the ipo frenzy we have seen, or at least the demand coming out of the gate, it seems uber could command a little more or push the envelope. raise $8y want to billion to $10 billion, so not just getting some people excited, but getting a huge number of people excited about the price. size, and if you are a story stock, you want to make sure it goes in the right direction. they don't want a facebook situation, or what lyft had. they want to say, we set this at the right price, people made money, and we strategically moved it up as there has been appetite. joe: for some ipo's the main goal is to discreetly liquid stock currency and a chance for investors and employees to rais

the valuation is whatever goldman says it is well that's true you know earnings are real curse for a company like i.p.o. like goober simply because you've now got a figure that will give you a price earnings multiple so the last thing in the world they want is earnings at least for a while. you know some other stocks are pretty well pumped and i notice that the stories to keep them pumped to continue to evolve to them biggies apple and facebook have changed the business models apple has been experiencing weakening sales with the i phone which is a huge piece of its revenues so they came out with an announcement maybe six weeks ago about how they're going to get in the streaming business and of course the stock took a big leap as though there is big money to be made in the streaming business but the fact is it's hugely competitive and the margins just for making movies that people will subscribe to see are now. not nearly what apple's been making for a life with with iphone facebook is another they have a hugely profitable advertising model but they're very vulnerable to getting marke

do you think this is a fair valuation? dan: it has been a mini nightmare scenario.o roll out, to drop the ipo price second day, was something that i think not just tech investors, but everyone in the valley are watching. the big issue here is profitability. that is the fundamental issue i continue to hear from investors all day on valuation. we have an eight hour price target. it continues to trade down now that the fears about valuation continue to speculate. will: you don't think lyft be profitable in our lifetime? >> they are losing a billion dollars every year. we seem to be way behind uber. that seems to be the issue here for investors, the growth that the company has is phenomenal. it is a trillion dollar market opportunity. ,rom a valuation perspective what do you pay for that? i think, this continues to go lower, it does get more attractive, but profitability is really what caps the valuation. that is what we continue to hear is putting more and more pressure on the stocks. emily: on friday, the ceo said two things. one, that lyft would be profitable. two, t

a big valuation. then all of a sudden it's lost nearly 40% of its value since the highs that we saw on the first day since the ipo down about 21%. how exactly does that play into the discussion about the ipo landscape overall and with, of course, the multitude of banks in the underwriting process for the big ipos coming up >> that's a big question pricing is more of an art than a science, and what lyft did, it's a perfect case study they raised the price range during the process and then priced at the high end of that range. investors thought that was an effort to capture the last dollar and didn't feel like they were getting as much -- as much of a benefit out of it now, that has already impacted the likes of pinterest it's impacted uber pinterest is coming at a pretty conservative valuation, especially relative to its last private round. uber is said to be looking at a valuation of about $90 billion to $100 billion, and that's down from $120 billion that was initially it was seeking it's clear that

a $90's ipo could see billion valuation.sident xi jinping says there will not be a harmful depreciation of the one. the u.s. is said to consider concessions in trade talks. good morning everyone and welcome to "daybreak europe." it is just on 7:00 a.m. in london. total get through to first. adjusted net income, 2.7 6 billion dollars. the median estimate was 2.78. a touch light for first quarter adjusted net income. total repeats it expects its 2019 production growth of more than 9%. that's what i'm looking at here. on theming through bloomberg japan interim dividend of 66 euros -- euro cents her share. per share. those are some of the numbers coming through from total. the focus is on output growth and cash flow generation. that's what we will keep looking out for us these numbers keep coming through. let me get to sony. we are deep in earnings season. a lot of stuff coming through on the bloomberg. sony, net income at ¥500 billion. the estimate was ¥563.07 billion . softer on the full-year net income for sony. full-year ope

stocks at today's valuation? >> well, i think there are plenty of opportunities in the u.s. because as mentioned in your earlier segment the upside move has been somewhat lopsided. banks have been heavily beneficial -- benefited from this upside move there's other areas in the u.s. which have not moved in lock-step. and this is the butte yif a i go broad market like the u.s. it's the beauty of having the world to choose from you could always find little pockets of value >> isn't europe cheaper for good reason they've got brexit they've got much slower growth some people say teetering on recession. super easy interest rate policies that's weighing on their banking sector you want to really be there with all those risks? >> that's exactly what is scaring people away from europe. however, when all those forces that you mentioned, all those scare stories, have had very little major influence on ability for european companies to create value. yes, at home they face some lower earnings but don't forget, most of these big european companies are multinational. they have exposure to

why do we not care about valuation? yeah, we care about valuation but the growth is so high, they're going to be earning more and more -- that valuation, if you're pricing it on this, will come down. >> it's not just growth. growth is a very important reason but it's also recurring revenue model, high cash flow, capital return to shareholders it's got all of the characteristics you would notice and investors are taking notice and why the skyy is up 23%, 24% year to date because investors like those characteristics of companies. they're not commodity characteristics. >> rob is exactly right. and that's why when you hear people do cyclically adjusted price earning ratio comparisons between now and the '70s or 1980s, when you think about the companies driving the s&p 500 then, companies that melt copper, are we going to compare that to a microsoft, which creates a cloud platform and can relentlessly add more and more customers and scale that up and have profit margins approaching 30% as far as the eye can see? you will see

i agree with careen and the valuation. is the competition in the price and is that the stock getting its knees knocked out of it and i think that is, and i'm still not sure they're going to win. again, when i look at uber eats and the competitors in the space, i think it's crowded and the margins are slim >> i feel you don't order out much >> i do order out occasionally >> imf not a grub hub guy at all. >> you pick up the phone and actually call a restaurant >> i let them do whatever. this is another case and i think it's like a lyft where you have so much competition out there and can they make money and if the valuation is as high as you were intimating was as high, i don't want to have this stock. i think there are better opportunities. >> you are mocking >> i call the restaurant and say i'll be there in ten minutes. >> and you go, and you get in your car >> sometimes, i get a slice of pizza and wait that's what we do here the grub hub stuff -- so 20 years ago. for more ongrub hub and what i next for the company do not

obviously, equity valuations are a function of the discount rate. there's something real here. but we've soon overshoots. you talked about extreme bullishness in one of your notes. how do treasuries figure into your assessment? >> we keep an eye on it, but i focus mostly on the equity market the yield curve is a problem even with our financials, and we acknowledge that, but i think that's a legitimate debate about whether or not ten-year, the yield curve itself, are reflecting what's going on with the economy. i'm not quite convinced either way to be honest and that's not what driving the financial call. i would say what i'm a little more focused on for risk signals is the cftc data on equity market futures poxing. what's interesting there is you can see seeds of a melt-up starting if you looked at the data in march, you saw s&p futures turn slightly parabolic, back to october levels, not back to skran levels we haven't seen the same followthrough on others like the dow, the russell futures, the nasdaq futures they're still low. but we need to watch that. i think we got two gre

caroline: we are closing in on a valuation of $1 trillion.le, facebook, fourth quarter -- first quarter revenue rose. it was ahead of the 25% expect. earnings-per-share, a big miss. there was a 3 billion-dollar hit in terms of a legal expense with the ongoing federal trade investigation, yet to be resolved, all caught up with the cambridge analytic a investigation, as well. it could hit $5 billion. it will be interesting what they say about this, with the potential costs in regards to this issue. caroline: with more, let's go back to leigh. facebook, taking charges, seeing slower growth. leigh: yes, i had a friend who writes it going to work for one of these companies is functionally no different than going to work for a bank in 2005, just a different dress code. it is a similar story. they have a money tree. they make money every quarter, pretty easy, and now, they will push the envelope on every single thing, and they will be willing to pay the price. romaine: paying the price, we thought -- talk about 3 billion, five billion dollars, there

>> bricks and mortar retailer, if amazon's converging to walmart, does the valuation of walmart come> i mean, we talked about the whole foods deal a couple of years ago and it seems like what are they doing here? it starts to make a lot of sense. you look at kohl's and 12 1/2 times, and that's probably right in the middle and 20% shortage and everybody's been betting and it's up 11% today, to your point. this probably has room to the upside as well and you will retest levels that you last saw last summer which is north of 80 bucks and from october 2017 to july 2017 at kohl's and traffic at those experimental stores where they're taking amazon returns are up 13.5% 13.5%. >> absolutely. it's a brilliant idea and incredibly creative idea for kohl's to do this and it's a great idea for amazon and they go to a bricks and mortar store without having to buy it part of it was to have a distribution center and now they've got to return something that they didn't have to buy, so i think it helps amazon. to your point about the earnings and it's hard to compare amazon's rating or p-e ratio with

chipotle's not trading on valuation. that's for sure.onald's isn't trading on valuation. >> one thing that's really making me angry about the technology is the inconsistency and i just will point this out really quickly when you do the starbucks app and you put in your order and it loekts the nearest store, you walk in, you never have to speak to a human being, it's sitting on the counter waiting for you, your name is on a sticker. it is like -- it's literally magic. you cut an entire line, no matter what time of day. when you do that with chick-fil-a, you have to check into a kiosk even though you ordered on your app and put in a code and then they first start cooking the sandwich so it's like, what did i need the app for? >> are you speaking from experience >> i just want everyone to get on the same technology standard. i don't have time for that what am i using the app for if they're not going to turn the grill on before i walk in the place. >> he's got to get to the next place. >> everyone should do it the way starbucks is doing it a

true however, you're talking about a stock now with historically low valuations what does that mean? the last five years, mid-range valuation is 17 times forward earnings and traded as high as 21 it's trading 13 times next year's earnings and that's number one, number two, those earnings i just talked about and i'm disrupted with all of this and everything you hear now is noise. the reason why the stock has gone from 280 in my opinion to 220 is noise maybe it will come to fruition i think there is a 10% chance, but that's what the market seems to be betting on which leads me to my third point, the market is shooting first and asking questions later and what they're simply saying is we don't want to be in the space and we get it's a great company and great valuation. as a matter of fact, they guided slightly higher for the next quarter and the market doesn't seem to care you add that up and the revenue go away and at these levels it's the same low we've made basically of march of 2018 i'm sure we have a chart i have no way to know how to get it up there, but i'll give it a -- oh! see,

it could pump up valuation, but it could be good for a trade here in the entire face because the whole space will a be higher or what the takeover value is. >> okay. meantime, we have breaking news. zoom pricing the ipo let's get to leslie picker for the pricing. >> melissa, this is according to a source with the pricing discussions and i am told that zoom has priced its ipo at $36 that implies an offering size of $751 million a valuation of $9.2 billion in the oshmarket cap and pricing i dollar above the range i am told that this ifrp could have priced even higher than that based on the demand that came in the door and the company wanted to stay conservative to ensure a debut tomorrow. >> leslie picker at headquarters and this was expected for the software company, priced above the range? anybody following this >> privately, they had this thing valued at a billion. what did leaslie value it? 9 billion. >> pinterest, i have a page and we traded trade it or fade it? >> value trade and i said value trade. >> karen makes a good point. it's not a value at all. >> no, it's not. unvaluation.

but the names that have great valuations and fundamentals, scott, those are the names there's a great name i liked and i wrote it too long, xylox, why is it pulling back so much they have great numbers but when you start to look underneath and say, look, from a valuation perspective, is it in front of itself the answer is probably yes. >> we asked this yes and no one was willing to go with that. >> i owned calls in there so i want enough to go with that and i thought the earnings were enough to pull it higher i was wrong. >> joe, you sold out of the smh today. this is a critical question if you own chip stock. >> but he's not negative. >> no. >> but you have to take -- >> you have to look at your portfolio and say to yourself, what have i added? in the last week or so, i continually added to microsoft now microsoft is basically a trillion dollar market cap motorola solutions, disney, twitter. i have been adding all along you look as your exposure and say i walked into the smh somewhere around 95 and i will pair out at 118. that's the process and reasoning behind technology though, cle

why we think valuation is above the historical average, we are not purely driven by valuation >>. in a low yield environment for an extended period of time. a reallyyields important to get us to the point where we are today where we think we are getting paid for the risk. that has turned out to be the case your today. the fed taking their foot off the brake has been extremely important. as you know, we thought the last two hikes were a mistake. we think by the end of this year they are actually going to cut, and that is going to be supportive of the markets. alix: on a fundamental level, you want to also look to earnings. inside the bloomberg you can see the earnings estimates in the u.s. starting to move higher. the blue line 2020, moving higher. the argument would be you are going to buy now because you are anticipating a second half rebound. >> to be clear, we are neutral between stocks and bonds. in a 60% stock portfolio we would be at 60% stocks. expectations on earnings has come down so much that if we are going to take risk and get paid for risk and there is going to be a s