Big quarter for apple, set to report tonight after the bell. Investors closely watching the companys Current Quarter sales and forwardlooking revenue forecast joining us this morning, brian white as well as krish sangar. Stocks had a great run here. How much is priced in . Theres a lot of optimism going into this report i think really whats happening is the market is saying, look, we believe the services story. Iphone 11 has been good out of the gate theres a lot of things we need to think b aabout. All three iphones came out in september, versus september and october. We have some tariffs that have kicked in that could drag forward. All in all it should be a decent report, but i think the Services Report is more important big week for apple tv plus, big premiere here in new york. How much of that story is understood, especially when we start now paying more attention to disclosure and accounting on that part of the business . I would say a lot of it because there are a lot of unknowns one is the accounting treatment. Number two is how much cap ex they are going to spend on original content an earlier estimate for calculation, some of the investors said 6 billion. A lot of unknowns on tv plus but its going to be very interesting to watch because the first Earnings Call is right after they announced the pricing of tv plus and right on the cusp of the launch. Brian, apple is up almost 20 since the last report. To level with investors, its iphone expectations, right so despite the services story and tv plus and all of that, that fun stuff, you know, air pods pro, its really about the guide for the Holiday Quarter and whether all of the optimism thats built up over these last few weeks bears out the numbers, right . Its going to be important tonight for sure and i think again, i think this is a little bit different, a little bit trickier of an outlook than weve had in the last few years because of the different cadence and the tariffs. But underneath this is this trend towards appreciating services, right . Were talking here apples 18 times excash which is very, very cheap s p is at 17 times so its still very, very cheap but weve come on this program before and talked about apple being 8 times, 9 times so underneath all this the market is saying, look, we get the services story and really celebrating this is apple tv plus on friday this journey they have been on for many years now. Like it or not, shares of apple have moved on every little china trade talk headline. How key is china to the numbers both tonight and also just for guidance in general for apple, especially when you have thirdparty data coming out like today saying theyre losing market share there absolutely. I think china is important for the stock for a few reasons. Number one, like you mentioned, iphone market share there which is Something Like the midsingle digits right now for iphone in china. That is number one the other thing is if the tariffs do hit in middecember, at some point in the march quarter, people may have to bake in some impact on earnings i dont think thats in the numbers yet so that is something to watch out for the third thing is also the app store does play an Important Role for apple, especially with china with the gaming downloads. So you see a threeprong situation where it does have an impact on iphone app store, which is services, and also eps with the tariffs coming out. Brian, im less concerned about tariffs where apple is concerned than i am about chinese domestic reaction to this tiff with the u. S. , more than a tiff, trade war and the fact that apple doesnt have a 5g phone. Is the Greater China revenue an important line to watch here and what apple communicates around demand throughout the rest of the cycle . Absolutely, you know. Its a huge market for them. Just like hopefully one day india will be. Theres been a lot of change in sentiment in the country just around American Products and around apple will it have an impact on the quarter . I dont think so this particular quarter. It has in this cycle for sure, right . Apple has bounced back i could see china being Greater China being up 5, down 5, Something Like that, but absolutely its a risk if the sentiment changes so negatively over there, this is an enormous market for them for sure. Wouldnt it be weird, krish, to have china guidance i mean traderelated china guidance be net negative given phase one it looks like well get a signature in november and talks will continue. Sentiment around trade in general has gotten better. Why would it be worse at apple i dont think it will be much worse to be honest around the sentiment. But like brian pointed out, i think the big question, the argument for apple and iphone is they have been losing market share in china partly because of nationalism, partly because of the trade tariffs and if you look at samsung galaxy, their market share is less than one person so why shouldnt apple be the same market share from midsingle digits. Why cant they get to less than one person i think the other way to think about it is the opportunity to grow share in india where they are also manufacturing the phones or assembling the phones. That could help offset potential share erosion in china for iphones. My last question, brian, is about apple tv plus pricing. Everyone is talking about hbo max at 15 doesnt 5 look ridiculously cheap now . Well, apple wont have a lot of content at first. If you buy an apple product, you get a year free. So really this is something you know, theyre not going to be able to monetize right away, but its a way to get users on the platform, a bigger piece of planet apple, and they can monetize that over time. So its not guaranteed success its going to take many, many years, but i look forward to it. Lastly, krish, youve got an outperform rating on apple biggest risk to your thesis . I would probably say the biggest risk at this point is kind of like any further slowdown or deterioration on the Services Side because part of the whole thesis for us is iphones is looking pretty good, services is growing which is impressive i think the Services Growth is what is driving the multiple higher for the name and i think that needs to be sustained for the stock to keep working. Brian, ill put the same question to you since you have a buy rating. Services are important. I would also say the longterm picture in china. Okay. Brian, krish, thanks, guys. Well see what happens tonight. Up next, tinder cofounder sean rad, what hes saying about the companys path to profitability and the risks associat wh os were back in a minute when it comes to using data, everyone is different. Which is why Xfinity Mobile is a different kind of Wireless Network that lets you design your own data. Choose unlimited, shared data, or mix lines of each and switch any line, anytime. Giving you more choice and control compared to other top wireless carriers. Save up to 400 a year when you switch. Plus, get 50 off when you buy any new lg phone. Xfinity mobile. Click, call or visit a store today. Is the recent wework ipo debacle just what are the risks to going public . Joining us now, tinder cofounder and former ceo sean rad. Sean, welcome. Good morning. Thank you for having me. Great to have you youve got a venture good today i want to talk about thats enabling corporate and Group Donations to good causes first i want to talk about some of this turbulence around the idea of hero founders and just how much attention and how much compensation they deserve. As youve seen this wework thing play out, adam newman, the payout hes poised to get, what are your thoughts . Well, i think he did an incredible job building the organization in the early days and, you know, now as theyre going public, i think it requires a maturity that it seems that doesnt exist so i think the landscape changes when the Company Goes Public youre accountable to way more investors than your current base and your employees and i think that Companies Really need to do a good job of preparing for that longterm success. Its been about four years since match group went public. Im sure youve grown and changed and done a bunch of stuff since then youve got this new venture. What are you going to do differently as a startup founder this time around given how the culture has changed and given what youve learned . So good today is a nonprofit. And the goal is to get people in the habit of giving daily, because we believe that if you give a little bit every single day, its more impactful than giving a lot every once in a while. What good today does is every day we send our audience one charity that we curate and two charities that people can decide to donate 25 cents to. The idea is, is to sort of get millenials, get audiences, employees at companies, waking up every morning and thinking of causes that are sort of bigger than their own and getting out of their bubble. Its a great way to start your day and its a great gateway to further giving and learning whats out there and how you can have an impact sean, i want to get your thoughts on the news of the week new York State Appeals Court on tuesday rejecting iscs bid to dismiss a 2 billion lawsuit that was leveled by yourself and five other plaintiffs regarding tinder and tinders valuations and what those what the prices were that you were paid out on this. So investors can understand, what happens next in this court fight, and do you see this as a potential win at this point in time we definitely see it as a potential win. So, you know, we my founders and i and the early team at tinder, we spent years building the company into what it is today. We had very clear contracts in place that outlined how we would get paid when it came to honoring those contracts, the match group just blatantly lied and cheated and avoided paying us billions of dollars in compensation. Now they have done everything they can to dismiss this case. They lost once they appealed that decision and yesterday at the appellate court, unanimously it was decided it was decided that they lost their dismissal and now were going to court so this case is full steam ahead. All right i know weve reached out to iac for a comment on this lawsuit as well and i think were still awaiting a response on our end too. But i guess in terms of Lessons Learned from that situation, what would they be that you would share with other founders . I think youve got to be careful who you work with and particularly as you develop partners and investors youve got to make sure that their Cultural Values really match your own you know, at tinder it was really about being in service to the customer and waking up every day with a sense of purpose, where i think at our Parent Organization it was really about Financial Success and money. We just believe that when you put purpose ahead of profit, profit follows but that wasnt the sort of cultural value that we got exposed to while there. Why a nonprofit this time around why not another tinder this is kind of like tinder for charity, i suppose, the one that you swipe whichever way on gets more money why not start a new moneymaking venture . You know, i think its for me this is a personal passion. I think ive always at large companies, we always had an opportunity to do good and i think good today is a good way to get employees involved in those decisions and which charities and causes we contribute to. So its just something that i wish existed when i was ceo at tinder when i found out about this organization from those who contributed alongside me to get this off the ground, i just had to get involved because i thought it was a great way to get people who want to give into the habit of giving. People i think inherently today, particularly millenials, want to come to work with a sense of purpose. They want to have an impact in their lives. And good today is sort of that first step to get people engaged. Sean rad, cofounder of tinder launching good today as well thanks for being with us. Thank you still to come here on a big hour of squawk alley, an exclusive with warner media Ceo John Stankey dont go anywhere. The dow is down 9 points as we go forward on this, people arent going to just buy content for content sake, theyre going buy content because itsassociated with other products and services. Whether its amazon who chooses to offer marketplace incentives to have video or its at t that chooses to put great value with pay tv or connectivity or broadbd soat wh itanasciedit, those are other reasons for people to come into the product as well. My e e career busines were in je. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. As massive wildfires continue to ravage the state of california, our jane wells is there with the latest on the easy fire. This story just gets worse and worse. Reporter yeah, this is the first fire, carl, during this 24hour red flag warning system, actually more than 24 hours. Its not supposed to end until noon tomorrow. But the fire is now moving this way behind me. You cant see it in the smoke back there it has grown from 15 to 200 acres. I think we have some video from knbc, our affiliate here, showing it the priority right now is the Ronald Reagan library, which is on a hilltop where the flames have been heading. Not only is it the archives where the president s papers are kept, hes buried there along with nancy reagan so this is the priority there are some neighborhoods, some homes being evacuated the other priority is that the fire does not jump the 23 freeway which is directly behind me im at the Underwood Family farms. Craig underwood has been on our air many times this farm would usually be open today. They have all kinds of pumpkin rides, they have the whole thing going. They decided yesterday because of this red flag warning across Southern California to preemptively close the farm. That is a decision they are now very glad they made. They are getting ready to they have animals and theyre trying to form a plan on whether to evacuate the animals. The weird thing about this particular santa ana incident is that it is a cold winter wind. Usually santa anas are hot and these are freezing it is a cold winter wind without any moisture in it the perfect storm without a storm if you will. We could see more throughout the day. We dont know the cause of this fire its called the easy fire because it started on easy street, which is right near the 118 freeway. No idea, but maybe people i cant imagine anyone would throw a cigarette out of a car window driving on the freeway in these conditions but we have no idea the cause at this point. I want to throw out a couple of numbers before we go this is a Ventura County fire din incident cal fire will probably assist. Cal fire with all of the fires they have had this season with their budget that starts july 1st, this year they budgeted 691 million emergency found fighting fires so far they have spent 115 of that compared to last year when they only budgeted 430 million and by this time last year, they had spent the whole thing. So they havent spent as much as last year, but they have also budgeted more for it and one other thing, core logic is estimating that the costs, the loss of all the homes so far in the major fires weve had this month totals over half a billion dollars. No containment, no word yet on whats happening with this fire. Well keep you posted. Jane, wondering of course concern for all of the people and homes in that area but when it comes to the Reagan Library specifically, are there any Additional Resources available to protect that . Reporter well, its funny you should mention that because one of the big things over the last couple of decades in california has been to use goats as Fire Protection the goats come in and eat all the brush. This is something the Reagan Library spokeswoman says the library has employed in fact they just had some goats come through to keep the brush down but what weve been hearing from the scanner reports on twitter is that this is really their priority theyre asking for all hands on deck, basically to get up there. That library is on the top of the hill fire moves up. As fire jumped the road that was on the far side of the library and has been moving up, we dont know right now what kind of handle they have on it and then of course, again, not jumping the freeway coming this way. As far as we know, the freeway is still open. That is always the danger point for these fires in urban areas. Our thoughts are with not just the families and residents but the firefighters who continue to work around the clock. Jane, thank you for that our jane wells out west today. Europe turning back the clocks this week the euro close moves back an hour until we follow suit this weekend. You can catch more on todays movers overseas at half past noon easte te rnimon the halftime. Were back in a moment any. Were also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. From the day youre born we never stop taking care of you. I athere was a sports carre and a family saloon car and i always had in my mind that one day the family car could compete in rallies and racing when the mini actually came out i said this is the one to do it. Welcome back, everyone im sue herera, heres whats happening at this hour a state Department Special advisor for ukraine arriving on capitol hill for testimony in the trump impeachment inquiry. Katherine croft is expected to tell lawmakers about phone calls from a lobbyist demanding that then ambassador to ukraine Marie Yovanovitch be fired. Three people were killed at a house in long beach, california when offi