Considers a plan to order a for tiktok. Nership microsoft is in talks to buy tiktoks u. S. Operations. Of covid19 rising, but at a slower pace. Florida reporting record deaths. As of today, the 600 unemployment checks millions have been getting will expire. Next week, 200. To break down how investors are digesting this, abigail doolittle. We have to talk about this tech rally. Buteveryone, it seems, google. Abigail yes, a big rally for apple, amazon, facebook. Google the odd stock out. You and i were talking about quarters forblowup most companies. Apple, in particular, the stock had been up 5 , then in the afternoon around that news came reversed, and that is when apple took off, as though there was an invisible hand behind apple surging. It is hard to believe institutional money is buying the stock at a fiveyear high. They havent provided in outlook, but nonetheless, great results, each beating estimates. Apple and amazon beating, meeting or beating the adjusted earnings estimate prior to the pandemic, but almost as though they had never been reduced. Facebook not as much, but investors relieved add the sales were strong. Not for alphabet. Relieved that Advertising Sales were strong. Not for alphabet. Down 3. 3 . All this leading us to record highs for apple and facebook. , notd see record highs just on the day, but on the open, really impressive. Not the case for amazon, alphabet or the nasdaq 100, but inetheless, a nice feather cap of investors and shareholders for facebook and and willer volatility record highs, emily. Apple it is clear with surging more than 10 . A big beat on earnings. Adsple are still buying ip and iphones. Why do you think apple is surging so much given the valuation metric . Abigail it is interesting. It was surprising. It felt as if there was this invisible hand, technically overbought. It, a lot ofce of folks are saying this is a Consumer Staples stock because of the strength of iphone sales during the pandemic, the fact they were able to put up these strong numbers, beating revenue by 11 , the adjusted earnings estimate by 24 , Services Grew by 13 yearoveryear, so strength across the board, and folks want in one of the Biggest Companies in the world, best managed, one of the best managed , and frankly when you have stocks in other areas not doing well, caterpillar, energy stocks, that money seems to be going into big tex. You mentioned big tech. You mentioned apple. This is their fifth stock split. It has a history. 1987 was the first one. It took quite some time to 2005, it tookter less than two years. Here we are. Some of this does make the stock more friendly to investors, Retail Investors in particular because instead of buying a stock that is a few hundred dollars, they will be buying one they think is cheaper, even though it is not, but the optics makes it easier for that Retail Community to get in. Some analysts recommend amazon 3200, 500,ead of 600, more appealing to the retail investor. Right, absolutely, definitely makes it more achievable for Retail Investors. Thank you for joining us. Moving on to the story i mentioned earlier, the president hatching a plan to order tiktok, the Chinese Parent Company of tiktok, to sell its u. S. Operations. The personnow is covering the story. What is the president considering, and how is this within his power . Has been an interesting day. Said and mike pompeo earlier this month they were considering this, in part in retaliation. Clear what trump is planning to do. The committee on Foreign Investment had already been s purchaseytedance and ownership. So this is already under scrutiny by the trump administration, so whether we out ofave Seen Movement those efforts, it could be possible. It sounds like that plan might be on pause because microsoft has emerged as a leading s u. S. Er to buy tiktok operations, which might relieve regulatory pressure. Emily as this story was breaking, this other story that microsoft is in talks to buy tiktok broke. Obviously this is good news for tiktok . How would this help the company . Naomi it removes that regulatory pressure. Bytedance had been considering selling a majority stake in its u. S. Business because of these regulatory threats, not only the trump administration, but lawmakers in congress have been raising questions about whether the ownership, the Company Represents a National Security , andto u. S. Interests whether it was potentially censoring americans on the app. It is a headache release a headache for them and helps, depending on what the price is, get a good financial deal. What interesting though this would mean for microsoft. Microsoft has been trying to get a foothold in social media, one place they have not dominated. It willosoft ceo said be an enterpriselike Company Going forward, and it is curious how that fits into that overall. Trategy what will this do for microsoft . , in a it gives them an in young, lucrative audience, given the age group it is popular with. Microsoft access to Artificial Technology technology to gain more insight into consumer habits, in a way linkedin does not provide. It is also likely not an accident that microsoft is the is Major Tech Company that not currently under antitrust scrutiny in washington, so microsoft has a longer runway to make a deal like this. Right, you wonder if it will trigger some scrutiny. , arosoft is owned linkedin different kind of social media, not as consumer focused, but something we will continue to follow and we will have more later in the show. Naomi, thank you for that update. Stocks following a blowout, apple, amazon, facebook seeing huge surges. We will talk about what is behind those moves come next. This is bloomberg. Moves,. This is bloomberg. Moves, next. This is bloomberg. Tech. Diving into big i want to look behind the reaction. Dan morgan is with us. I want to start with alphabet, the only stock in the red today of the stocks. Looking at the massive contraction the Global Advertising market, but something facebook has not seem to feel the effects of. What makes alphabet different than facebook . Dan when we look at the four stocks, google is the only one down. I think with the street is focusing on is even though advertising revenue was above expectations, but the change from a year ago, down 8. 1 , and over the quarter down 11 , compared to facebook, which beat expectations at 18. 3 billion, they had an increased of 10 yearoveryear in advertising revenue, quarterly basis, they were up 5 was so comparing and contrasting the numbers between facebook and google, we would have to zero in on advertising revenue numbers come to exceeded expectations and is continuing to grow, where as google is showing negative growth from the First Quarter and the same Second Quarter a year ago, so i think the street was a little bit focused on that, and that is why we saw good performance from facebook and google down. About what is us driving the decisions of appetizers. Facebook in the middle of this massive and boycott this month, so we will see the impact of that in the current quarter, so happening on amazon, and not google. What are the trends behind the scenes that might be impacting where advertisers are putting their dollars . Dan you are right. We heard the news a couple of weeks ago that quite a few customers of facebook because of concerns about hateful language and so forth on the website were going to boycott spending money for advertising revenue. What does that mean . If we took the top 100 customers facebook,acebook they would represent 1 of the total top line revenue, and 76 of all facebook customers are huge players, small, not fortune 500 companies, so i think that is something that a lot of people are concerned about. Not allaid, it has impacted yet. It will Going Forward, but amazon is becoming a bit of a player in the space, and eating into google space in terms of search, so we are starting to see overlap in what a lot of these companies are doing in terms of the areas they are focusing on but the fact facebook had such good numbers, that defied concerns about boycotts and so forth. Emily how successful has facebook monetizing instagram and whatsapp . Dan that is huge for them Going Forward in terms of a huge growth driver. Something they have done a lot in terms of trying to monetize. That is a huge area of growth Going Forward. When facebook was getting bad news about cambridge analytics, a lot of people dont know they have instagram, whats up,essenger, whatsapp messenger, a ton of subscribers on these platforms, and they are slowly moving forward in terms of monetizing them, so those are huge growth drivers, especially whatsapp. Emily lets talk about this rapidly emerging social media is in thektok, which crosshairs of the u. S. Government, but now this headline microsoft is and talks u. S. Operations, what do you make of that . Dan it is huge. We think that microsoft like apple. They have a tremendous amount of cash. You talked about linkedin and that acquisition that cap them into the business area, but now expanding into a market where they dont have a tremendous amount of exposure, right . We think of microsoft, their presence in gaming, on the weerprise, the cloud, but dont think about him as a company that has any real exposure to the small, in terms of young people, we think of snap and so forth, so i think this is a good move for them if they can get it to go through, because it will give them exposure into a market that they really dont have much of a presence in right now, and they have a tremendous amount of cash. It would be a great opportunity to use it. It would add to other areas they are in. Hopefully it will go through for microsoft and they will pick up tiktoks operations, and that will be a feather in their cap Going Forward. Emily thank you so much for joining us to weigh in on this friday for have a wonderful weekend. Coming up, more big tech. We look at one company we have not mentioned there, amazon, huge numbers, expectations, what the demand in ecommerce means for the tech giant. This is bloomberg. Amazon out with secondquarter results yesterday. It was a humongous quarter was showing signs the company can make money, in fact, much greater profits than expected. Despite spending heavily through the pandemic. I want to bring in our guest. Workedfor amazon for amazon for 10 years and helped it to launch its advertising business. Melissa, great to have you. We would love to hear your high level takeaway from amazons notlts, a company we have seen big profits from, despite the money they make. What is your take . Yeah, it is pretty insane. It was their largest quarterly profit in their history. I was surprised. Prioritizedit, they essentials, hand sanitizer, toilet paper, the grocery business grew. They sold a lot of stuff. On the call yesterday, they said it came from a reduction in marketing, so they did stop spending on Google Search for 12 and other things. Business grew faster than the other business, and it is much more profitable for amazon. Aws, of course, is very profitable as well. The other bucket, usually advertising, that group 41 , inline with the advertising data we are seeing from our clients as well. Dip,w that take a little either in april or may, depending on where clients were in their lifecycle inventory, but it was driven by inventory out of stock and a dip in advertising, and continued growth from there. They i want to talk about rise of amazons own advertising business. The pointet ceo made about how amazon is a competitive threat in the advertising business, rapidly encroaching on facebook and google in the Digital Advertising market. How quickly do you think amazon can catch up to him . Melissa there chair is still small, but eating into Google Googles share. In a recent survey, it was 49 of product searches start on amazon, and 22 start on google. Declining,y are amazon is increasing, but still a small percentage, which means there is a lot of opportunity and room. Emily last question, because amazon, obviously some interesting highlights, able to triple grocery orders, but also running out of space. People are ordering so much they dont have a place to put all of it. How does amazon confront that challenge . Melissa that to me was the biggest kind of big challenge to brands and sellers, running out of space is not a good thing. Hit,we saw when covid every day was prime day without being able to plan for it, so what that means is brands will have to scramble to have dropship capabilities, hybrid accounts. Sellers may not have space for them to ship into, so a lot of brands and sellers will need alternative names to get their products into amazon. Also one of the things rand manufactures are doing right now brandon manufactures a Brand Manufacturers are doing right now, they may not have all the colors or the units to choose. Question, iquick have to ask you about jeff bezos s performance. He was backed into a corner more than i expected and did not have some of the answers. What did you think . Melissa i think he had good answers and deflected by saying i will look into it and it didnt have the exact answers people were looking for, but the hearings will continue, and they will be a thorn in his side for a while. I dont know if investors really care. Well, melissa,t, thank you for joining us and sharing your perspective on all of that here. Great to have you here on the show come especially given your inside knowledge of the workings at amazon. Thank you for joining us. I want to get to some quick breaking news. James murdoch has resigned from of board of news corp. , course a Family Company his father founded, effective immediately. James murdoch has resigned from news corp. Over disagreements over certain editorial content published by the companys news outlets and strategic decisions. We will continue to dig into this and look at the letter mr. Murdoch provided to the board about his resignation and will bring you more highlights as we have them. , microsoft,tiktok twitter, the big hat, and who is behind it. Save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, you only have to pay for the data you need, starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. Welcome to camp tonsafun on xfinity its summer camp, but in your living room. Learn how to draw with a minions expert. How to build an indoor Obstacle Course plus. Whatever shes doing. And me, jade cattapreta. The host of es the soup camp tonsafun. Its like summer camp, but minus the poison ivy. Unless you own poison ivy. In which case, why . Just say summer camp into your xfinity voice remote to join. Emily welcome back. Back to tictoc. Earlier, we discussed the president executive order that bytedance divested personal leadership of tiktok. Inrosoft seems to be position to buy the american operations. We are also hearing about an arrest being made of the recent twitter hack of politicians and industry leaders. We want to get to kurt wagner. There are three people who are now alleged to have been a part a this operation, including 17yearold who just graduated from high school. Tell us what we know. 17yearold who was arrested today is a florida resident. I believe he lives in tampa. Hes being charged with something, i believe, 30 different felony charges for what he and a few other people ,id which was, as we now know gain access to a handful of very prominent twitter accounts. This is just the latest kind of detail to come out of that investigation. Twitter actually said last night that part of what happened with the employees were due to handing over some information and credentials via phone calls. We are slowly learning bits and bits about how this came together. Yes, the arrest of a 17yearold today is the latest news on that front. Emily what does it say about twitters security if a 17yearold who just graduated from high school was able to compromise this platform in such a massive and highprofile way . Kurt well, its obviously a problem. We actually had a story earlier this week that included the phone call detail which i think is important. It just goes to show you this is not just a technical hack, this was social engineering as well. This was a very advanced way of not only getting into twitters systems but then taking advantage of those systems once they were inside. The company has said they have cut back on how many employees actually have access to some of the systems that could reset platforms while doing this investigation. Our source on monday said there were more than 1000 employees and contractors of the company that have that kind of access. This is clearly something thats a major red flag. As we head into election season, it is something we hope twitter will clear up quickly. Emily now, im so curious about this tiktok news you have been following with microsoft in talks to buy tiktoks u. S. Operations. How exactly would that work if microsoft bought the u. S. Part of a company that is an app used by millions of people use around the world . Kurt it is incredibly complicated. I think you are asking the same questions we are asking. I think the important thing to remember here is that tiktok is basically broken up into two apps. Tiktok version that is available in china. Then there is tiktok which is available in many of the western countries including india. What we have seen is that they have tried to delineate between those two Services Even though they are very much the same product. To say that one of them is kind of contained within china and the other is outside of that. It is unclear if this would be microsoft buying everything outside of china or there would be a third version of tiktok, a version that microsoft buys, a version for the rest of the world, and then a version in china. It is incredibly complicated and i think those are questions we are waiting to have answered. Emily meantime, the president has made h