Good thursday morning im Carl Quintanilla with jon fortt and Julia Boorstin is with us for the hour. Stocks in a whipsaw range, down a couple hundred up 100 here. S p 500 up 25 or so after the dows near 1,000 point loss yesterday. Worst day since june on pace for the worst month since march. But then you get a stock like pinterest. Good guide coming up, going against the grain. Julia, remarkable price target increases. Basically doubling what some analysts saw the stock trading to yeah. A lot of positive responses to those numbers there. Really a beat across the board, carl what is so interesting to me is what we saw in this quarter from pinterest is last quarters results were not just a blip but that this is a company that could stand to benefit over the long term from some of these trends were seeing during covid19 there is some surprising, funny Little Things like the fact that pinterest grabbed four million new users due to the fact that people are going to pinterest to find inspiration to reorganize their iphones after that ios upgrade. So Little Things like that they did warn that the users are more likely to churn over the long run, they think theyll benefit from the fact this is a place where people go with intention, often to to buy things will all the investments theyre making into shopping they see that paying off john, also, you have the fact this is brand safe content they may have benefited from that facebook and twitter ad boycott, john. Yeah, julia so interesting that we saw that big surprise from snap which had been one of the companies where the question was, well, does it really have a future under the shadow of facebook from pinterest, it will be interesting to see if this momentum and this kind of traction that theyve gotten during this time continues beyond now or if the facebooks, googles who are well, there is really only two of them, are so influential in this Digital Advertising ecosystem are able to create copycat products or policies that lock the Smaller Companies out of the Broader Market yeah. Of course, the larger question, jon, as you imply, is whether or not this is a precursor to what we might get to night when we get twitter, facebook, apple, amazon, and alphabet after the bell this afternoon. With us this morning is our ju in a capital natasha lamb the top five oldings include apple, amazon and alphabet great to see you great to see you. Pick a name of the ones we mentioned that you think might outshine we have companies that have amazing revenue beats this morning. But, you know, in this mixed tape, its tough to see a strong stock reaction i deceont think you can bea amazons positioning right now everyone is anxious as were awaiting earnings for all the companies which always leads to a lot of volatility, you know, add to that how anxious everyone is about the election and coronavirus. But theres a lot to like about some of the tech stocks and coronavirus is a boon. You know, users are spending more time online, makting spends going online if you look at what how amazon is positioned in terms of both cloud services, we saw microsoft report yesterday, 12 Revenue Growth everyone is concerned about microsofts report out because of sap and the alarm bells they set off with guidance for lower sales. But, in fact, their business was boosted by the cloud thats going to be a benefit to amazon as is the increase in retail sales retail sales just hit a precovid19 high which is really incredible in this economy. So, you know, theres a lot to like about the positioning of these companies. You are know, facebook and google, of course, are going to benefit from ad spend. If sap was an outlier more than a canary in the coal mine, as the world goes back potentially to a work from home environment, where are valuations right now how much of that have they taken that into account . Is there any argument to be made that even with those positive dynamics that theyre still rich i mean i think its a fact that theyre rich. Theyre trading in dsh30 times plus but, you know, they have been companies where theres been safety and where investors have been able to find, you know, safety in the balance sheet. Low debt, high profitability and high growth. The companies that really benefitted from covid19 trends. You know, i think the market ultimately outside of the volatility of the past few days is really looking 12 months down the road that will effect valuations and the pes of the companies i mentioned having retail sales at an all time high. Were really seeing a divergence and in two economies there is a weak economy in the United States right now that is vulnerable to this virus and theres a Strong Economy that is resilient to the virus the weak economy we see at the street level every single day, its the restaurants, its the hotels, its, you know, the malls that are empty but theres a Strong Technology in health care and manufacturing, in housing and all of those have just experienced these v shaped recoveries natasha, along the lines, we talk about a k shape recovery with the consume eastern the overall economy. I wonder if youre seeing a k shape recovery in tech you have cloud players, Luxury Consumer players like apple. Theyre doing great. But then youve got enterprise players like an sap and intel and with the short fall in enterprise and government on data center and middle and consumer players that are not. So it seems like its not Just Technology overall doing well. It depends on where you are in technology, right . I think thats true i think there is always going to be winners and losers. And the fact is that some of the largest most Successful Tech Companies are well positioned, you know, for what has unfolded over this past year, this past six months so i think that thats right if companies are, you know, if theyre dependent on that you know, on their products being in offices with these large contracts, youre just going to see weakness there theres going to be a divergence i want to get your thoughts on the shareholder resolutions you just filed for twitter, facebook, and google asking them to add human and civil rights experts to the boards. These, of course, are also the three companies that were in the hot seat yesterday testifying on capitol hill and then they all, of course, have their earnings today. Why did you file the resolutions now and what do you anticipate to come of that . I think its clear on issues of human and civil rights these companies are flying blind they have so much power thats concentrated in the hands of a few people, particularly google and facebook where insiders control, you know, the company outright because of super voting shares and the people at the top lack the fundamental expertise required to tackle discrimination and hate on their platforms. As you mentioned yet again, we saw them being pulled out in front of congress yesterday. Addressing, you know, some issues of disinformation and hate but i think its also important to be clear that yesterdays hearing was almost purely political theater ahead of a very contentious election where, you know, republicans allege that the platforms are biassed against trump and conservative views arent being aired that is not what any of the studies have shown in fact, weve seen a prioritization of rightwing content on social media and its the suppression of mainstream news outlets that really concerns us. And thats even why, you know, going back to 2016 we filed the First Investor resolution asking the company to disclose what was happening with fake news and election interference because of that mainstream news suppression. So thats, you know, all of this is a big concern we mentioned the ad boycott earlier. You know, tend of the day from an investor perspective, this isnt about politics its not about feeling good. Its about the bottom line for shareholders and if the companies are putting users at risk with disinformation, vote suppression, sexism, racism, content that illicits violence like what happened in wisconsin, that is bad for business and the ad boycott led to 300 advertisers pulling their ads because of the failure to address all of these issues. That put shareholder wealth at risk were seeing regulatory action against the tech giants. Were seeing boycotts and litigation and, you know, that is in stark contrast to how well positioned they are at this time. Its really important they get it together. Yeah. Your spoint a go point is a gd one. Twitter is going to take you back to 2015 so were watching that closely as the hearing yesterday natasha, thanks. Good to see you. Great to see you. Thanks so much coming up next, the ceo of Marvell Technology on the companys 10 billion deal for inphi as they continue to consolidate. Dont go anywhere, squawk alley returns in two. You can go your own way its time you make the rules. So join the 2 Million People who have switched to xfinity mobile. You can choose from the latest phones or bring your own device and choose the amount of data thats right for you to save even more. And youll get 5g at no extra cost. All on the most reliable network. So choose a data option thats right for you. Get 5g included and save up to 400 dollars a year on the network rated 1 in customer satisfaction. Its your wireless. Your rules. Only with xfinity mobile. Marvell technologies striking a deer striking a deal to buy inphi it will be 8 billion that deal if you dont include assumed debt with us now, first on cnbc, marvells ceo matt murphy. Matt, good morning this is just a giant deal just in relative size, more than a third of your market cap if im reading it correctly and inphi specializes in data center broadband moving massive amounts of data quickly inside data centers, between data centers why is this so important to do right now . Good morning, jon great to see you were very excited and youre right, inphi is the leading company in interconnect technology both inside the data center and to your point as well as connecting data centers worldwide. They also have a very strong and growing position in 5g for whats called backhaul and mid haul and front haul connectivity if you look at the combined Company Revenue of inphi, 70 of revenue actually comes from both Cloud Infrastructure as well as 5g and, jon, as you know that, is very consistent with marvells straty in teregy in t market focus Cloud Companies are still buying infratru infrastructure but there is downward pressure on the financing they have this pulse multitude Modulation Technology that is pushing cutting edge you know, along with optical allowing to move a lot more data, a lot more quickly is your sense that you can get not only continued and growing revenue but also better margins from the cloud giants with this kind of technology right you nailed it, jon first of all, the transition and in optics and moving to this new modulation technique which is called pulse modulation, that is being driven by the cloud players specifically in inphi has a leadership position there. Their business is extremely strong the most recent quarter they announced this morning, the revenues were up 92 year over year if you look to next quarter which they also guided, that would imply another 80 up year over year. This company has been growing about 40 a year they have a very strong outlook as well for calendar 21 that is really on the back of exactly what you said which is very Strong Demand in buildout in the cloud and in particular the optics that connect all of the key pieces of equipment in the data center. Its a key item in terms of how the data centers are architected and defines the overall through put in terms of the margin center it is a premier company and the Semiconductor Industry its no the normally a household name Gross Margins are in the mid 60s when is marvell. So it checks the boxes on four fronts and adds unique capability im going to do a weird thing and ask you to speak for inphi so why do this deal with marvell when theyre growing the way they are, they have the margins they do . Sometimes we see m and a from desperation. Some of the m a were seeing is not that. What makes now a key time to do this and what makes marvell the right partner for them sure. Yeah no, this is very much a combination of two growing companies. Hes joining the marvell board as part of this transaction. They were not looking to sell. The they have a great plan on their own. But as we got to talking, we shared our vision of being the leading chip company in the world that moves data, stores data, processes data and secures the worlds data, the move piece of it fit extremely well and theyre view that cloud and 5g were the most important markets for inphi are very consistent with ours as we started talking, we came up with a number of opportunities to drive revenue synergies and incremental growth over the long term as well i think its going to be a great fit. Were going to integrate the inphi team into the marvell family and we can accomplish these things and with two of the markets and long term secular Growth Trends which is 5g and the cloud. Matt, to that point about the value of having these two companies together, now that youll really be able to offer an end to end solution yshgs , s that so important from a competitive stand snoint. Surtandpoint . Sure, as weve seen this week and this year, m a and semiconductors has been robust one of the reasons for that, its not the only reason, is that there is a huge benefit, julia, in scale. Not only in scale in terms of manufacturing and cost, but also scale in terms of Product Portfolio and offering and the type of accounts that we do business with, these are the large hyper scale accounts you know, in fact today, i think today is almost faang day. There is a number of results coming out today youre seeing strength from a number of these tier one Cloud Companies as well as the 5g companies h theyre really looking for partners, julia, that can come to them with a total solution for a very long term deep partnerships and the types of products that we do both ourselves and inphi, theyre fundamental to the architecture of how data centers are built or how 5g networks are built or in the future how car the in car network is built. And so they need partners who have a full solution set and a broad set of capabilities that they can trust and that they can partner with for a long time i think the combined scale of the two companies certainly reassures our customers that thats that were extremely viable in that regard. Matt, one last quick question just onboard sentiment when it comes to m a weve seen a lot of deals in the past couple of weeks and energy and in tech. Is it a sense that were going to go out and actively hunt for targets or is it more of our lines are open if you have something, give us a call . Well, i think youre carl, i think thats a great question. I think youre seeing certainly, you know, in 2020 and i have to think that some of this had to do with the pandemic as well its really forcing companies to i think it is showing which companies are strong and growing and robust and in the right segments i think its also showing where Companies May need to decide to combine or merge up or scale up with other partners. Weve been fairly inquiztive over the years and we have really sharpened our focus our view has been, you know, we want to be one of the leading companies in the space we want to find like minded partners and so from our board sentiment, weve been very much aligned around growth and growing the company. And there is a scarcity of assets, too, carl. If you look at the number of m a deals that have gone on over the last four or five years and even into 2020, there is fewer and fewer, you know, pieces on the chess board if you will. And so we viewed inphi and extremely strategic because they have revenue scale theyre growing and theyre in some of most attractive end markets. From a timing perspective, we see an inflection in the business and we thought this was a perfect time to join forces. Well, a big move for you guys matt murphy, ceo of marvell. Thank you for being with us. Thank you adobe says another round of stimulus checks could boost online sales by more than 11 billion this holiday season. More data from that report next right here on squawk alley. Reentering data that employees could enter themselves . Thats why i get up in the morning i have a secret method for remembering all my hr passwords. My boss doesnt remember approving my time off. Lets just. Find that email. The old way of doing business slows everyone down. With paycom, employees enter and manage their own hr data in one easytouse software. Visit paycom. Com for a free demo. Two years worth of ecommerce growth in one year and even more with a stimulus deal those are a couple of the big picture conclusions from adobes annual shopping forecast this prediction is based on adobe data from more than a trillion visits to retail web sites including 80 of the top 100 sites. Some of the catalysts beyond the obvious and covid19, large retailers, those valued at more than a billion dollars, are expected to offer deals earlier this year and smaller retailers are expected to have higher traffic and increase in customers. And another interesting note from this report, consumers are going to do 42 of their shopping from smart phones julia, this fits right in with the results we just got from pinterest and shopify over the past few hours the ones were good to get from alphabet, facebook, and twitter. All these retailers need ways t drive eyeballs and this is the way they do it. Thats right, jon also, if you look at what we just heard from pinterest about the importance of Small Business they saw a big boost from small and medium business. Facebook talked a lot about how much they have benefitted from Small Businesses as they given those Smaller Companies tools to not just reach consumers with ads but also to sell online. And its notable here they say that small retailers will will see a larger boost to the revenue. 170 107 increase versus only 84 increase for large retailers. Carl, i