Revenue did top estimates. One bright spot was web services, growing sales at 55 . We did talk to andy jassy earlier this month. Business is growing fast. Its an 11 billion run rate business trailing 12 months basis growing 58 year over year. The business is growing by leaps and bounds. Were trying to enable enterprises and Companies Run all their applications on top of our infrastructure platform and it turns out that database is an area they care a lot about and for the last 30 years theyve had relatively little freedom. Pretty amazing, jon. Gene munster at piper today estimates aws is closing in on 40 of net profits on a normalized basis. Incredible. Right. With amazon, you never know exactly what the profitability of the rest of the business is going to be. So who know where is that goes from here. But, yeah, the growth there strong, amazons topline strong as well. The real casualty of this quarter seems to be kind of the santa claustype expectations perhaps about this level of profitability continuing to grow like amazon wasnt going to start plunging a lot of investment into places like india, where theyre doubling down again. You know, i dont know thats necessarily a bad thing with a company like amazon based on this growth story and theyve shown they can do it. Kate, what you think of investment at this point. Theyve proven over and over again they can pull it off. They can, and theyve made that sort of pact with their shareholders. Theyve invest ong scale and efficiency. Theyve been too subject to the fulfillment costs going up, they dont want to be reliant on u. P. S. And fed ex, theyre building out fulfillment centers, automating it, take advantage of that. If i were their competitors, i would be worried. Aelectric San Jose Sharks we love it whoevers tried it, i think theres more to come. This is an opportunity to grow. This is a company that has always had high capital expenditures, mark, and its telegraphed its Investment Plan to investors. No part of this quarter was secret . Terms of what its investing in. So is this a buying opportunity for investors here . You finally get a 4 pullback in a stock that is basically owning a secular change in an oline industry. We refer to this as a buy on the blip moment not a buy on the dip, off 4 , off an alltime high, ut ice not a great buying opportunity. Its an okay one. This company is investing aggressively with three new investment arias. One is india and it seems over the last few years theyve gained pole position, theyre the market leader, so it seems like a smart investment. Second is video content, which is a little odd from amazon, but what theyre finding internally is people who engage more with amazon on video spend more, buy more retail products. It its a Customer Acquisition, customer retention tool. Third is distribution. This company underinvested last year. Thats why they gougt got caught in the december quarter last year, the Holiday Season, with not enough capacity. Theyre trying not to repeat that mistake, trying to get ahead of it this year. Seems like a smart investment to us. We continue to like the stock. You call it a blip, mark. This is the first real violation of the 50day since march. Do we make anything of that . Yeah. Yes. Its the first violation of the 50day since march. Weve had times when weve been super aggressive on amazon stock. This isnt one of those times. Youre a longterm holder, theres no change to the thesis. I dont think theres any change to the longterm growth and profitability profile of the company. Theyre making elective investmentings that are short term in nature, not india but video and fulfillment centers. I dont view this as a dramatic change in the longterm trajectory. Fourth quarter, watch out for two catalysts, aws reinvent, and then kate mentioned it, theyve got the it gift of the Holiday Season on their hands with these i electr alexa echo doc devices. Caught, should investors be worried about amazon fresh . After marks question on the call last night, talking about how theyve launched in north virginia, delaware, maryland, chica chicago, but costs and profitability continue to be a challenge in that area. The if they go big and fresh, that could be another one. It could be and its a market thats not as proven for them. How they take advantage of it, because there is competition locally for, that remains to be seen. Theyre smart about their investments are spread across a larger footprint and they have a great brand and theyre focused on currentday delivery. I think its reasonable place for them to expand. Im curious for it to come to San Francisco. Earnings mover this morning will be alphabet, the worlds Second Biggest Company by market value beating on the top and the bottom lines announcing lit buy back 7 billion worth of stock, cost per click fell 11 . Strength continues to come from mobile and the android operating system which supports roughly 87 of the Global Smartphone market according to idc. Think talk about rising marketing expenses as they try to get the pixel off the ground. How do you weigh that versus what appears to be pretty disciplined Cost Management from porat . You know, we were a little surprised, carl, to be honest. I thought margins in the core business would be up year over year as theyve been the last four quarters. The fact theyve ticked down surprised us a little bit so theyre probably spending more on marketing for the pixel phones and their kind of alexa equivalent devices, google at home, Google Assistant products. Whether that works or not, i dont know. Google has not had Great Success as a Product Company in the past. The core advertising business, the reason were bulls on the stock remains so consistent. This is now 19 quarters in a row of 20 year over year growth. For that reason and almost that reason alone this remains along for us. Its our numbertwo pick in the space. It did announce a 7 billion buyback, kate, and you wonder if the stock would be performing this well just on the fundamentals of the results that they announced. 11 decline in cost per clicks, but it seemed to be buyback that really let people off last night. Its a message to the street about their confidence and business, number one. Two, when you look through to their earnings, that shift to mobile, their investments in mobile first, text, other things, theyve learned to dominate that. Its a lower margin business but theyre killing it on volume. That map, its my most used app ill admit including getting down here this morning. And its really taken people and the clicks that come through for that have taken over. I think ruth is also showing shes balancing out new investments with their core business in a much more predictable way. I think theyve really settled down and theyre consistent at delivery. Mark, what is the takeaway about video, give than youtube kept coming up on the call for google, alphabet last night, just the strength of true view, that impact on paid clicks and cost per click but also we see volume shutting down, hear about amazon spending money on video not to make money on it in and of itself but to fill out an ecosyst ecosystem. Whats the message to investors about monetizing video . Well, i think, jon, the biggest picture point possible is were going through the videofication of the internet. Its only going to increase. Zuckerberg said the same thing on facebook Earnings Call last quarter. I expect him to repeat that next week when they present their earnings. What was interesting about youtube, we think thats about a 10 billion revenue run right now. They havent disclosed that. They talk about the new ad units called bumper ads, six, seven second video like vibe. Yes. Like fine. What ive seen is the old phrase was google it if you wanted to know something. Now something happens, somebody speex politics of late, youtube it. You can find it quickly. Its become the goto. Mark, what are your aspirations or hopes for unplugged this new video service, Youtube Service . And sort of how does that collide with a week in which we got both apples tv as theyre now calling it and apples Television Product along with directv now . So, look, i think with google and youtube and the playoff video, theyre going to experiment for a while. Why shouldnt they . They have a billion people who go to their site. That core advertising business is doing well for them. I dont think they should steer too far afield from that. They have a Subscription Service and thats showing almost no traction. Theyre not great in marketing the service and im not sure theres a lot of content on there for pretty much a premium price. Stick with youtube as an asset. Doing a lot of good tweaks and innovations on there and it has become the tv of anybody under 40. Youre spending more time on youtube than you are on linear tv except for cnbc. We are getting an opening trade on black line at the nasdaq. Speaking of the cloud, mentioning amazon web services. Ill take a look how thats doing today. We have a cushion at the nyse. Up 44 , which is going to stand in stark contrast to gulf. Well talk later about that in the hour. What a day. Kate, mark, thanks very much. Good to talk to you both. Thanks for having us. Thank you. A check on the markets which have been in positive territory after that gdp number for the Third Quarter surprise to the upside. The dow is um 59 points, the s p up 6 and the nasdaq up just about 9 points. That Third Quarter gdp 2. 9 coming in much better than expected. Were also watching some pharma and biotech stocks under heavy selling pressure today. Cardinal health and mckeszen hitting 52 week lows, mckesson on its pace for its worst. On the flip side, shares of mastercard trading at alltime highs. The company posting thirdquarter Profit Growth of 21 as it attracts new customers. Stock up 3 . They did say, carl, that Consumer Sentiment around brexit was still concerning. But they are eyeing some new tech partnerships with samsung pay and android pay early next year. When we come back, apple unveiling a new line of laptops yesterday. The new touch bar getting good reviews. Its whats inside that counts. Then jon caught up with Shaquille Oneal asking him everything from investing to the world series. Youll never guess what shaq said. Later, big news for vine users. After three years the company is shutting down the service. Well talk to them about that. Dow up 59. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Apple has Just Announced new mac book pros using amd graphic chips for 15inch model. Our next guest makes these chips and other components. Lets get a look at what these graphics chips mean for the new devices. Lisa su is the ceo of advanced micro devices. Thanks for join us. Great to be here. I know that between, you know, computer and graphics chips, thats going to be a big thrust, heading in to 2017. Youve got radeon, great visibility. How important is that buildin for you, that win versus nvidia and how exactly do you accelerate that business versus intel in 2017 with zen thats been kind of moribund for a while . Absolutely. So, first of all, were extremely proud to be in a new mac book pro. Its a beautiful system. You saw it unveiled yesterday. Its really with our newportous graphics chips coengineered with apple to ensure we could get all of that performance in that very, very thin and highperformance form factor. And it is an opportunity for us to accelerate. Weve grown this year and its been really good and weve continued to accelerate that into 2017. Huh are we going to know that youre getting the oems, the pc makers to build . When is that moment youll be able to unveil heres how many commitments we have, get all the benchmarks . You know, the key for us is always a multipleyear strategy and a multipleyear strategy means great products, Great Customer relationships, and doing solid engineering. So weve made tremendous progress this year. Our graphics business has grown significantly. Next year well release zen in the first half of 2017. Were working very closely with customers right now and its all about putting out great products and great systems in both highperformance desk tops, servers, and cloud as well as notebook form factors. Some analysts have raised questions about the release cycle for zen being in early 2017, potentially missing the Holiday Season. Is that a big deal . It rally isnt. We look at product cycles all the time, and its really not what happens this quarter or next quarter. Its really about what were going to put out over the next couple of years. This year is going to be a big holiday for us with our game consoles, microsoft and sony have Just Announced a couple of new products, apple with the mac book pro, and next year were going into the year of zen and highperformance computing. It is a multipleyear strategy. Yesterdays presentation was amazing but for some advanced stuff, right, stuff the layman probably isnt going to do, i wonder if you think the prosumer will continue to outpace the consumer market. When you look at growth over the next few years it really is about how we enable everyone to do these incredible content creation and, you know, viewing applications. So i do think the prosumer market offers growth. Its great to see the innovation apple is bringing out there. It is super cool. Lisa, you know how wall street is. Off great year then people start worrying about the comps for next year. You mentioned holiday, the updated consoles, which is exciting. How do you talk then about next year give than zen is a multiyear ramp, you know, youre just pulling back the veil the beginning of the year, it will take a while for those systems with it to actually roll out . What should people expect as far as the comps for 2017 . I think first of all were very pleased with the year weve had this year. Its all been about Revenue Growth for us on the top of good product execution and good customer momentum. I think as we go into next year its really all about execution of our products. You know, we feel very good about the cadence that were on. It is about a multipleyear growth strategy. And from our viewpoint were right on schedule to what we expected. The nxp qualcomm deal, massive in the chip industry. I know they make different chips, more about internet of things than autos, but does it change the landscape . What shakes out in your sector once that deal closes . You know, clearly theres been a lot of consolidation in the semiconductor business, you know, this year and it is a big consolidation year. But i would say whats important for all of us as Chip Companies is to keep the innovation going. You know, putting out new products, figuring out how we connect these complex systems, you know, for us its about connecting the cloud to the user and bringing new visualization experiences. So i think if we focus on innovation as an industry, were going to make a lot of progress. Any update on server chips and the potential for arm to get a foothold there . We are very focused on the server and the data center market. We think cloud is absolutely important and critical as we grow. Were going to focus on zen in the first half of 2017 with our launch. And i know that arm has some stuff coming out as well. Lisa, thanks for joining us here. Always great to have you at post 9. Lisa su, ceo of amd. Good to be here. Were rolling out our power 100 index and amd is one of the 100 companies chose frn the russell 1000. Still to come, after buying it for a reported 30 million, twitter is shutting down vine. The internet is outraged. Well get ricos Kara Swishers take in less than ten minutes. First i spoke with nba legend Shaquille Oneal. We have his take on investing a whole lot more. You can take it as a prediction or which one youre rooting for. Cubs or indians . Yankees. Well, you know, im sitting in new jersey right cowboys. Osu. I dont know how many would agree with you. Approaching medicare eligibility . You may think you can put off checking out your Medicare Options until youre sixtyfive, but now is a good time to get the ball rolling. Keep in mind, medicare only covers about eighty percent of part b medical costs. The rest is up to you. Thats where aarp Medicare Supplement insurance plans insured by Unitedhealthcare Insurance Company come in. 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