For those two companies, it was a tale of two different big tech quarters alphabet has certainly been the laggard this year. Underperforming not just its big tech peers, but the nasdaq amazon has been a standout, 70 gains. Alphabet had a low bar and amazon had a high one. Did they deliver we can look at a number of metrics, what i want to drill down on particularly is cloud. These are the companys newer growth engines cloud numbers came in only in line with expectations revenue up 29 year over year. Love large numbers but google cloud, revenue was up 45 and now the company is going to break it out as its own segment. Have a listen to what was said last night. Given the progress we are making and the opportunity for the cloud in this growing global market, we continue to invest aggressively in our gotomarket capabilities and extending the global footprint you will see information about the scale of our investments so investors are going to be able to see exactly how much google is investing in cloud this is really key to the broader term story as we digest these numbers and the share reactions today, how are they preparing for this Digital Transformation that we spent so much of this year talking about. Amazon has spent nearly 22 billion on capex this year thats a huge amount, clearly cloud is priority. For google broadly, it was the advertising story, revenue rebounding, and giving us that initial pop that we saw in shares but look, alphabet shares, theyre up barely 4 today. They were up as much as 10 yesterday in the afterhours. I think this is one of those days where we have to separate out the Stock Performance from the Business Performance if we look at the Business Performance of amazon, revenues beat, ecommerce is strong, yes, theyre investing heavily in the future if we look at digital advertising, inclusive of google, facebook, twitter, we can reach back to snap and others, i think what were seeing is that the expected holiday surge that weve seen telegraphed by adobe this week is translating into a lot of business for these players there are questions about whether, you know, the boycotts in the quarter of facebook, of twitter, would have an impact. Not really on the revenue side maybe the user growth was a little weaker for some of them but the core businesses there are really interesting and then we have apple lets dig in a little more into that josh, a lot of talk about iphones this morning so, john, a couple big issues for investors to think about apple did report and beat q4 expectations if you look at the segments, services, mac, ipad, they did best expectations. Iphone revenue, though, did miss estimates, thats unusual. Tim cook noting Customers Put off purchases because they were waiting for the new models to arrive and this fiscal q4 was different than last year saying this time in the last two weeks of september, we did not ship new iphones. And so you obviously have a big compare issue which we knew would occur. Another issue, cook declined to offer q1 guidance saying the pandemic is causing just too much uncertainty right now he did offer positive color and commentary about his new iphone lineup telling me, its off to a great start and i could not be more enthusiastic about it and were excited to get iphone 12 mini and iphone 12 pro max going next friday. Finally, china, a big, important market for apple sales falling 29 . Cook arguing thats because he didnt have the new phones to sell there during the quarter. Saying to me, a larger percentage of china revenue is made up of new iphones and so thats the reason, the number for the total Quarter Ended with a minus sign. Given what we see in the early going with the new iphones, were confident well grow in q1. Carl, back to you. Ill take it, josh. You and i were talking about this yesterday after the results. Im not sure i care about the iphone miss in their fiscal q4 because its an unusual year what puzzles me is why apple didnt give any guidance, not even conservative guidance given he says theyre confident theyre going to grow in the holiday quarter. If hes confident, why not guide to that, even if conservatively especially because it looks like theyre selling as many iphones as they can make if you look across tech, a lot of the companies that normally give guidance gave it. Did that give you pause as well . It was interesting, john, because that was that was the big boeing forgey for a lot of. Revenue for that important Holiday Season i wonder whether they felt at this point, they felt like they didnt have enough data to make that call confidently enough they did heading into this print, they had 14 days of preorders and sale for these new phones analysts will point out, thats different. Usually they would have 35 days of data. Maybe that coupled with the pandemic that cook talked about, they felt like it right now they couldnt make a confident call to give you a clear, hard forecast generally, i would say a lot of their commentary about that holiday period was positive. Yeah, josh, great point really appreciate that of course, josh lipton talked to cook last night. Well talk more about whats happening in tech today. Brad, good morning. Good morning. I wonder if you think the fact that if apple cant guide and youre few days from an election, if that at 30,000 feet the price action today. Theres a lot of uncertainty in the market today and in this year, certainly. But i think that we should expect the uncertain were living in this accelerated pace of change for the global economy. Were going from analysts log economy to a Digital Economy information is moving faster things are happening faster, disruption is happening faster and we should learn to live with some level of disruption and uncertainty. And were focusing less on the short term on the uncertainty over the next quarter and focus on the fact that this accelerated digital transition, because of the pandemic, because of other factors, is going to continue and going to keep happening over the next several years and even the next couple of decades in the economy. Yeah, i guess the question would be, though, sense we have to sort of deal with the short term, to some degree, markets gotten jitters several times this year for very obvious reasons, but theyve made a habit of rushing to tech because of techs stay at home dynamics. That hasnt happened at least today. I wonder if you think its different somehow . You have to break it apart a little bit we saw very strong advertising numbers, very Good Behavior across youtube, much of facebooks platforms, even though twitter stock is down today on some uncertainty around their user growth, it was strong growth, advertising was well ahead of expectations. From that perspective, i think we dont have a lot of uncertainty. Around things like consumer demand, if people want to shell out a thousand dollars for a new iphone that has some small improvements, 5g is not really rolled out to the extent people can use it, certainly here in the united states, not a lot of compelling reasons to shell out that money you might have a lot of uncertainty going on in your life or not sure how the next year will play out for employment and for the economy yet, another huge area of strength is cloud growth if we see advertising is strong, maybe consumer demand is a little low, but cloud growth is strong and even though amazon is maybe a little bit light, these numbers are unbelievable Growth Numbers off of a high base, if you look across azure, aws. Every Big Tech Company reported talked about some kind of uncertainty, apple with holding guidance, as we talked about, that doesnt change the fact that these are still the companies that are among the best positioned if we see a strike in covid cases. Is there anything that you heard last night that changes the fundamental story or the longterm story for these companies . No, not at all. I think the reality is, this economic transition to digital was happening, covid has accelerated it and its just pouring lighter fluid on the fire every company is Going Digital theyre reimagining how business is done. These platforms are enabling that and theres only a handful of them and theres unlikely to be more of them emerge because of the value that these platforms can provide, all of their constituencies, its the reason theyve gotten so large and its the reason they will keep going as this economic transition keeps happening i would point out, you know, we talked about the big internet platforms a lot, theres the structure layer underlying them. We heard tim cook speak about supply constraints for semiconductors, facebook for the their servers and data centers, there are a lot of Chip Companies ta dont get talked about that are underlying this growth in the industry. Weve been talking about them because a few of them have been doing some mna and combining we keep on saying uncertainty. I dont think so this is some of the least uncertainty ive seen in a long time, particularly on the top line in Technology Technology is where there seems to be the most topline certainty. Digital ads are doing well, apple, their devices you have certainty in ipads when is the last time we had that its the enterprise, the oldline hardware, sap, stuff like that, that seems less certain. We dont know how much these companies are going to spend on investing in the future, maybe, which is up to them. And we dont know how investors are going to respond because these valuations have been crazy. But the fundamental businesses, they seem pretty certain these days i think thats right. Look, i think i dont know anybody whos not going to have a hang over on january 1st, 2021 but i think theres some fear that maybe there will be a hangover for these big platforms because growth has been so strong this year but i think were on a oneway street, you know, we dont want to look in the Rearview Mirror as investors and we want to be invested in these companies that are creating the future and driving the future of the markets and the future of the economy. Brad, fascinating day, obviously, so much at work good to see you as always. Have a good weekend. Thanks. Getting breaking news from the fed as they tweak some main Street Lending steve has that steve. Carl, thanks. The Federal Reserve changing some of the rules to kind of get this main Street Lending facility going it cut the minimum loan size for three of its main Street Lending programs to a hundred thousand dollars from 250,000. The fed says the fees have been adjusted to encourage provision of smaller loans allowing the exclusion of 2 million of loans from ppp guys, this is the second time that i counted that the fed has lowered the minimum on this program, trying to get it going. Its supposed to be a 600 billion program, john, but so far to date, theyve done 400 loans worth and its been much criticized out there for the terms being too tough and not encouraging borrowing from the Federal Reserve on this Critical Program that might help the economy weather the coronavirus pandemic. Important to get that money into the hands of the people who need it one way or another thank you, steve after the break, more on itr, mornings selloff. Twte the biggest laggard on the s p. Stay with us music anncr give customers access to precisely what they want, when they need it the most. With adyen, the payments platform that delivers convenience for all. Adyen. Business. Not boundaries. Facebook and twitter shares falling after reporting results. Twitter down almost 20 . We cant blame the revenues or the profits in either case, can we thats right, john. Facebook shares, theyre down about 6 after reporting results that did beat expectations on the top and bottom line, very Strong Revenue growth there. But whats been dragging on the stock, john, is the number of users in the u. S. And canada declined between the second and third quarter, a declining trend which facebook warned will continue the Company Flagging that limits on its ability to target ads will drag on revenue and Mark Zuckerberg addressed civil unrest on the platform around the election. Next week will be a test for facebook, our systems have been tested in many elections over the last few years Election Integrity is and will be an ongoing challenge and im proud of the work that we have done here. I also know that our work doesnt stop after november 3rd. So we will keep anticipating new threats evolving our approach. This as twitter shares plummet 20 again. Whats dragging on twitter is disappointing user growth. The company added 1 million monetized daily active user, thats 8 million fewer than expected Ceo Jack Dorsey says the company is making changes. Now that we have topics to follow, people are coming for one reason and staying because they find relevant topics that are interesting to them. As we continue to expand those, as we continue to prompt those earlier in the experience, such as on boarding, i think that helps us dramatically. Dorsey stressing that the companys making a number of changes to make sure that twitter is a trusted place for election news and information. But, carl, theres so much pressure on these companies right now. Yeah, there is. Stay with us, we want to get Steve Liesman who is taking the look at the publics distrust of social media days away from the election steve . We ought to send these results to jack dorsey we looked at in our survey a bunch of industries and asked americans how much they trust them social media ranks dead last we asked specifically what is your confidence, a great deal or quite a bit in these industries. Restaurants doing good its not too bad compared to what it was in 08 and 09 look at social networking. Taking a look at the impact they have on the american election. 68 saying its mostly negative, 11 say positive, and 14 say they dont know. This is what we call in the polling business flat data not that its not interesting, its flat that any area has a net impact 70 of men, 67 of women only the older than 65 group, they have a less negative view there but only because theyre in the dont know camp but most americans across all political spectrums, across gender, age, dont have very little trust the good part of this for me, theres somebody for the people that hate more than the National News media. Yeah. Steve, this reminds me of that old yogi barea quote, nobody goes there anymore, its too crowded. The numbers were down a bit in terms of users for facebook and twitter, but the revenues are up because thats where the eyeballs are its hard to parse exactly what that part means, right i think thats fair and im going to defer to julia on this one. I thought i saw Something Like 1 in 10 americans are using twitter right now. Is that right . It just strikes me that you get to a point where the press is so bad where theres less options there for them to grow because of the negativity thats associated with this industry. Steve, i think you wouldnt have noted, based on that hearing on wednesday, but twitter is a much smaller platform than Facebook Facebook talking about 2 1 2 Million People use one of their family of apps, twitter is much smaller, theyre talking about in the daily active users, much smaller in the u. S i think if you put these two products next to each other, john is totally right. Both twitter and facebook saw a real surge in user growth in the Second Quarter thats because people were staying at home, they were all trying to connect with each other in these different ways, looking for information, looking for news, and looking for that connection so what you saw is such significant user growth in q2 that its perhaps natural that q3 would have a if not a decline, at least much lower numbers, similar to that pull forward with netflix the advertising revenue has grown dramatically, advertisers are shifting from traditional to digital advertising. And they know that the ability to target on these platforms is hugely valuable, even as facebook warned that ability may be minimized next year because of various regulations around privacy and targeting. Julia, twitter may be the smaller platform, but the issues its facing are equally as big as the ones that facebook is facing when it comes to content moderation i cant get over the fact that jack dory sey is the ceo of two companies. Square, has a real opportunity amidst this Digital Transformation do you think his leadership will start to come under question again as we saw the results from yesterday, were seeing it lose a fifth of its value today hes been questioned in the past and hes continuing to be questioned on this the cfo was on squawk box this morning and he was questioned about that and he said he can get access to dorsey when he needs to it was interesting listening to the twitter call, because the vast amount of questions were not answered by dorsey but by the cfo. Dorsey takes a different approach to his leadership and how hands on he is compared to say, a Mark Zuckerberg, thats been ill say its the same for square same for square. He delegates a lot to the cfo. Carl some would say that would be a good thing under certain circumstances. Right now you would expect it to be an all hands on deck situation. Julia, steve, remarkable as twitter shares down 20 plus for the day. Were off of session lows. But the dow is 10 from its alltime high. S p, 3,252 the september low was 3,237. Well watch that carefully back in a minute beautiful. But support the leg when i started cobra kai, the lack of control over my business made me a little intense. But now i practice a different philosophy. Quickbooks helps me get paid, manage cash flow, and run payroll. And now im back on top. With koala kai. Hey more mercy. Save over 30 hours a month with intuit quickbooks. The easy way to a happier business. You make my heart sing wild thing i. Think i. You know what i think . I think you owe us 48. 50. Wild thing. If you ride, you get it. Geico motorcycle.