Welcome in to squawk alley. Dow down for a fourth day in a row. Have not seen that since february, but the dow repaired some ofthe internal damage the s p went green the nasdaq getting helped once again by a tech trade that seems almost impossible to kill. Even with invidia and the expectations last night. Yeah, in the green at the moment well see where that goes. Were going to start with some controversial ipo paperwork. It was the ipo that was and wasnt, now it is on again it company was one of the most widely anticipated listings of the area then travel grounded to a halt and with it airbnb bookings. Revenue started to rebound by june and july bookings returns to prepandemic levels. This could be a pandemic come back story, but much still has to be written. The main question will be whether or not investors give the startup a pass for this year air bnb had the record to even out profitability and enough cash on hand at one point to consider a direct listing. As losses have widened this year the Company Scaled back their more ambitious plans especially those in real estate and hotels. That could make for a leaner cost structure down the road or it could be less appealing for investors looking for that next big thing in tech. Until we get that perspectives, a confidential filing is no guarantee that it will go public soon or at all here is what we do know, its board is well equipped to take it pup lick wiblic with some oft revered names. You have the former disney and pixar executive ann mather we also know that air bnb is one of the last sharing economies pie ne pioneers to go public. It even has bezos. He invested when ayrir bnb was worth less than 70 million. So to add something about this, you spoke to brian chesky not too long ago while the pandemic was wreaking havoc on the Business Travel would have to come back somewhat sf is he pushing it a little bit here when i spoke to him a few months ago we were not at the place that we are now. Back then when we saw the virus resurge he was very optimistic the company said that gross bookings have rebounded to a level where they were at the same point last year the question, though, is how does travel rebound. He was very clear on that. He doesnt think that travel is going to come back and ever be the same that he was before. He thinks that air bnb is still uniquely positioned. He thinks in a post covid world people will favor home sharing over hotels. Yep, thats exactly his point of view so far thanks lets bring in the editor and chief of the verge good morning, good to have you good to be here deirdre is spot on. The ipo window is perspective. Customers booked a million room nights for the first time, in one day, since march the question is can air bnb move its rental stock and market out of cities and into rural areas . That is what were seeing. People are now renting houses for more than a week as they try to work somewhere else and vacation in places that are not that densely populated air bnb is one of the few economy thats does not require a city to operate. They require population density to make their population work. Air bnb can just move their stock and find homeowners in rural parte es of the country the question is if the support economy is there, clean air property managers, lawn mowers, all of that stuff has to be built around Rural America like it has built up in cities. Another big benefit is they have been in fights with big cities new york city doesnt want them there. They move out of the cities to places where, you know, small towns, small counties, want that tourism to flow. That is a big opportunity for them and it might also reduce their costs. Yeah, im youre right about the battle they had with the hospitality industry, the entrenched interest in the cities they have found ways to partner with ho tell chains. I would argue they have been relatively adept at finding good ways to be frenemies with the long term players, right that is a symptom of the precovid economy. They were becoming a dominant player the Hotel Industry realized they could not kill them with regulation post covid economy i think the company has to reset and offer a different kind of product nap is more or less what we heard chesky say it is interesting that if you dig beneath the service and what the product is at air bnb and instead look at what the assets are, they have people who have space, and people who need space. Kind of a very liquid market in those things at a time when home offices and locations are in flux. Fundamentally the data they have, the audience, the owners of capital they have, doesnt that make them still pretty valuable i think so. If you think about what all of this sharing Economy Companies have done is they have increased liquidity in the market. They increased efficiency between buyers and sellers they made it easier to find supply that has worked really well for the companies, and they depend on that base of supply airbnb can just move it. You have something, you want to rent it, it is hard to find a render from around the country i think there is a lot of upside for them, but they have to be real really fundamentally considering what theyre offering, luxury experiences in cities. You go to nashville, they cant do any of that any more. They have to recalibrate and say what were offering you is space. I also wonder if the collapse of we work is helpful to them. Now that that over hyped idea is not around to enforce any more, does that allow them to perhaps redefine themselves and go public i think the question is whether or not people want to work out of homes forever, right . Working in someone elses house is enough of a change from working in your own house, or vacationing in someone elses house is different enough, or if they need to build or acquire a different kind of stock. One of the challenges they will have as they expand is homeowners are buying up properties there is a boom in the Housing Market here. People are buying all sorts of things and they need to renovate the homes to make them desirable. Contractors are on short supply. Were seeing Big Box Stores experience sales booms getting the stock online to pivot the business model, when airbnb is not in charge of it, will be a challenge for them the price of lum bber will definitely point to that then we have the protrump Conspiracy Theory group qanon. I understand they like me very much. I dont know much about the movement i heard it is gaining in popularity all right, so we have the president s point of view, i guess, obliquely is facebook getting more stringent on the restrictions theyre going to put in place . I think they have to be and i think just to be completely blunt the president not knowing much about a group that likes him very much and is on a fbi terrorism list, that is iffy they have to cut against the essential nature of a social network. What do social networks do they bring together people of like interests they amplify your interests. They are designed in a very direct way to create movements whether or not that is about knitting enthusiasts or conspiracy theroi stherorists facebook is not great at this but they have to start Getting Better i wonder if theyre Getting Better because theyre scale and size is so large at this point that theydont need spents as much as they did three or four years ago . They will always need advertisers. Facebook managed to ride it out. They did very well they have a huge response for advertisers. But if the repetition just keeps getting bad der. The question is whether or not they need qanon supporters as a stwee constituency they make it clear that they dont think they do. Let me push back on that just because it is fun. I know that facebook takes a lot of heat. I also know the stock is near alltime highs even though the company will say its a tech company, its really a Media Company. We know that people, in general, say they dont like the media. Regard less of what peep might say, they dont like facebook. We see that in the results maybe facebook has largely dodged a bullet here it is just a Media Company so of course people dont like them. Is. Yeah, we want to trigger additional responsibility. We want them to feel added life and responsibility whether or not you think the broad public likes or dislikes the media, the question for facebook is do they want to take responsibility they dont make it, they just distribute it. And what is their responsibility we did one in december and were doing another one soon facebook is just showing you things, and you kind of dont know where they came from, and a lot of times it is things you dont want to see. That has always been their issue. None of the things have turned into a essential utility it doesnt provide that utility that people love you know even as we talk about new school tech, im obsessed with that old school amply fier behind you. Well see you next time, thanks. Yeah, always good to with here coming up, the top stock on the s p for the year so far. Well break down nvidias monster run and its earnings, ayitxt st wh us good morning, mr. Sun. Good morning, blair. [ chuckles ] whoo. Im gonna grow big and strong. Yes, you are. Im gonna get this place all clean. Ill give you a hand. And im gonna put lisa on crutches wait, what . Said shes gonna need crutches. She fell pretty hard. You might want to clean that up, girl. Excuse us. When owning a Small Business gets real, progressive helps protect what you built with customizable coverage. And im gonna eh, eh, eh. Donny, no. Oh. Taking a look at shares of nvidia it has been positive at times in todays session. Theyre posting an earnings beat on the top and bottom. Tj rogers joins us now tj, good morning good morning. So nvidias results bolstered by gaming. An acquisition in networking doing well is nvidia the most important chip stock out right now because of the moves its making i think getting named the most important chip stock is like being on the cover of sports illustrated. It means your next season will be lousy i like nvidia. I like what they have done a 4 billion quarter, 2 a share. Worth 300 billion now oneandahalf times what intel did. This up and down is speculation. It is not worth commenting on. I see, obviously, the gaming company, but i see their biggest thing now is that their servers are bigger than gaming and that is the mark, Everyone Needs more compute Everybody Needs it all of the time and theyre getting into it and theyre taking share away from intel. If you have to pick someone on top, pick a tech company i said most important, i did not say best a chip engineer, raj, is joining us i wonder if what theyre doing next is trying to purchase arm would that be a positive for you . Would it be a negative given where nvidia is invested and where theyre succeeding what would that add . I dont think it would be smart. From a financial perspective they were acquired for about 32 billion. They will have to pay over that. I think strategically it doesnt make a lot of sense from my perspective. Arm primarily is competing in the smartphone space this is an area that nvidia walked away from a few years ago. They decided not to get into the Smartphone Market and i think there would be a lot of regulatory and antitrust issues im skeptical of that happening. I think nvidia is a phenomenal story. We think it is one of the most perpetual growth stories from 4 billion to 15 billion in a Straight Line and they are dominating ai and that will be the future. The legacy of arm is very much in smartphones but they have important embedded technology in design and what not. And in the 5g area that is important, isnt it . Yeah, it is the way to make servers and cell phones. I agree it would be a distraction. Nvidia has done one thing very well they have done Computing Power happening on to ai and were just at the beginning of the ai revolution today it would be cellphones, a down andbidirty business, i thin it would be a distraction for them they would divide their attention. Right now getting in the Server Market and having servers pass over for them their gaming business, they have all of the market in front of them that they need. They have all of their focus and theyre doing a really good job at it. Theyre in a great time right now where theyre market tap is at about 100 billion. Intel is just over 2 billion. Nvidia is 300 billion what a turn about from where we were a decade ago. Which of these do you think is being underestimates the most at this point the rise of the stock price is just a phenomenal thing from my perspective i think it has more tail wind, more growth in front of it we increased our price target this morning to 600 it reflects roughly 2 billion the Gross Margins are approaching 66 . Hoping to get to 68 over time and the operating margins. I think there is positive events that are helping we have a move to the public cloud. Pretty much every type of compute workload is happening in the public cloud whether or not it is the signs of computing, rendering, what have you there is a huge amount of workloads. That means analytics, speech, text, it is no longer going through basic processing that is happening. Number two the computational requirements to support this level of workloads is going up massively. So the ceo on the call is saying the compute power is going up 10x per year the last three years it went up 3,000x in terms of Computing Power. This combination of comeputing power and the workloads compounded by the stay at home economy is fuelling a very big Growth Market for nvidia and every hyper scaler is designing around it. So bottom line, despite or because of that run, you still like nvidia, raj, tj, thank you. Thank you still to come this morning, apple, as you know, crossed that 2 trillion market cap line yesterday. Well want to hear what byron wien says about it retirement yu want to follow your passions rather than worry about how to pay for longterm care. Brighthouse smartcare℠ is a hybrid Life Insurance and longterm care product. It protects your family while providing longterm care coverage, should you need it. So you can explore all the Amazing Things ahead. Talk to your advisor about brighthouse smartcare. Brighthouse financial. Build for whats ahead℠ brighthouse financial. Were committed to making college more affordable. , thats why were keeping our tuition the same through the year 2021. [student] i knew snhu was the place for me when i saw how affordable it was. [narrator] find your degree at snhu. Edu. Closer look when some Companies List cash on their Balance Sheets leslie picker explains yes, much of what is listed as cash is not cash at all corporations are holding nearly 400 billion worth of bonds issued by other companies. The researchers poured through the footnotes of fcc filings to find that a large portion of Corporate America is running mini bond portfolios apple being known for being cash rich, but they had about 280 billion in cash but 14 of that was cash or cash like securities 42 was tied up in Corporate Bonds and billions in things like Mortgage Backed securities. The other top holders include microsoft, apple, cisco, and a trt at t the researchers say there is little transparency over the risk levels of these holdings and the market shock earlier this year valed sorevealed somec problems since they were stuck with liquid assets. You think this is supposed to be a safe line of cash for a rainy day, but they turn into something you cannot use at all. They are urging policymakers to look at how Corporate Cash might not actual i will be helpful as we think it is during a crisis, carl leslie, great hit. A great look at what is going on the s p continues to vast late betwe vacillate between gains and losses the white house is waiting for answers to questions about Steve Bannons arrest. He is expected to plead not guilty after his arrest and indictment along with three others on charges they took money that had been contributed to build part of a wall on the southern border. Lawyers have filed an appeal to delay an enforcement that years of tax returns must be turned over. They say it needs to be looked at extensive and protracted criminal activity at the Trump AdministrationAnthony Fauci is back home and said to be doing well after having a pollup removed from his vocal cord carl, youre up to date, back to you. Getting a vaccine update from j j we have headlines saying johnson and johnson is planning a 60,000 person study for their trial and their experimental covid19 vaccine they want to start the trial by the end of september and it will study not just in the United States but other countries as well with other high virus transmission rates the company is saying, as to the reason why, what they want to do is enroll a robust number of participants determining the safety and efficacy of this drug. This is about twice the size of the other studies being put forth right now by companies likes astraseneca, pfizer, and others as well well wring ybring you more as n more thank you, dom lets look at tesla. My goodness up more than 5. 5 . Getting really close to 2,000 a share ahead of the expected split. Up more than 20 just this week. Wow. Stay with us getting some response from the white house, lets get back to amon jabbers. Thats right the white house now distancing themselves from steve bannon they say, as everyone knows President Trump has no involvement in this project and felt it was only being done to showboat and perhaps raise funds. President trump has not been involved with steve bannon since the early part of the Campaign Carl the allegation here is that steve bannon and three other men raids 25 million for a we build the Wall Campaign to privately build some of the wall the allegation was they were skimming some of that money for their perso