Our roadmap begins with shares of amazon soaring in the premarket after a Solid Earnings report. Well dig into that report plus how amazons game plan is going after netflix. And becky catches up with Warren Buffett in omaha. And more on apples rough month. What does it need to recover . Exxon and chevron out with earnings. What you need to know about big oil and all the energy names leading the way isnt the s p this month. First up, amazon up sharply after posting its most profitable quarter ever. Revenue growth the highest in almost four years. The sales in the companys Cloud Computing business up 64 . And then theres the upbeat guidance, the margins story, the operating net out of web Services Bigger than their north american business. I have to tell you, you know, on the Conference Call, the Conference Call is very flat. People understand amazon Conference Call its almost like its being spit out by amazon itself. Its just a very without any emotion. When youre seeing numbers and margins and the improvement, you feel like what do they do . The whole time theyve been doing this weve been waiting to see this Conference Call. Amazon web service, david, you were the first to flag. I mean, this is a business that i think could scale i think bob did a piece two weeks ago he said that on air. It was widely when he said that number, i said what . 100 billion business in terms of its value he believes. We were both doing the Conference Call at the same time and i said, listen, i think youre wrong. Might be conservative with the amount of money this could make over a fiveyear period. The margins in that business opposed to what we know amazon for are quite different. They are much, much larger than the business of selling people things and getting it to them. Right. And telling me about international, how you can have it at home. This is one of the they keep using the term flywheel, which is something Starbucks First talked about, thats the energy. Kind of a thing you cant, but they are. They have this ecosystem that is amazing. Then you have things like the ek co echo doing well, kindle digital, people love prime. To your point they would basically break even internationally. Yes. Speaking to a couple of people this morning was a surprise and seen as a real sign of strength for the overall company. Stock has a good shot at reversing its yeartodate losses, which we know were notable with the exception of facebook had a tough year. Well, its fa. What is that a note that follows do . It follows do. A long, long, way to run. Right. Ive got to tell you i look at this quarter and i say the bears who got short this perhaps say at 2 00 there might have been an interview with someone saying the worlds coming to an end. Theyre not even in china yet, so they dont have to worry about china. India, india, i mean, like india discovers amazon and they love amazon. Yes. So this is a defining quarter. I went back and looked at the last quarter. I spent this morning looking at the previous quarter. It was just there was a little bit of like are you ever going to make any money and what are you doing and give us time. Theres one moment in the previous quarter in the Conference Call where literally theres just kind of a, hey, guys, is this Amazon Web Services is this ever going to come to fruition . Well, it was three months. It was an astonishing Conference Call. Yeah. By the way, there was only one congratulations. I mean, there should have been a million congratulations. Last quarter they had an amazon prime day and they talked about pricing pressure. And no one believed them. Onetime only, they were a lot in the onetime previous, everyone figured it was like a secular problem. Wrong. The onetime only was right. Right. Sorry, go ahead. Meanwhile people have been talking a lot about bezos paper profits in 20 minutes last night he made 6 billion on paper. Who cares . Thats enough to buy 24 the washington post. In 20 minutes i didnt have to go to the store, they brought it to my house. Theres a rite aid across the street from me. Really . No. I go to ti have it ordered. I go to amazon, they bring it to my house. Im never carrying the toilet paper again. I wonder if youre paying more though. Embarrassment factor is so big. Really . Have you ever carried you dont go to the store. Your wife goes. My wife sends me to rite aid. Go bring those bulky products no more. I go to amazon prime. Try not to use plastic bags. Oh, god, its an ecological thing with you. Yeah, get stuck in the trees. You dont know what im talking about. No, to your Point International 27 , fx neutral growth. Strongest in three years incredible what you said, jimg, the cfo saying we attribute it to the prime flywheel. Bringing more people in and that thing just keeps going faster. You thought it was a competitor to sole cycle. What it is an earning machine. Meanwhile the dow and s p in the green, nasdaq in the red as we go into the final trading session of the month after the blue chips did suffer their biggest oneday loss since february. Becky in omaha asked Warren Buffett about carl icahn, who was on our air predicting a day of reckoning for the markets. Heres buffetts response. Well, there were probably this is the most wild there were probably 50,000 or people more that bought stocks today and 50,000 people that sold. So i dont know that i would pick out any one of them and put too much weight in what they did. Icahn said a lot of things about the need for fiscal stimulus, about his support for donald trump, obviously exiting apple. Yeah. Well, it certainly hurt the market. Wapner did it our friend scott wapner did an incredible job. But i will point out for the aficionados of Warren Buffett, seven out of the last ten years the s p has closed up half a percent after buffett. So monday. So monday youre going to get half a percent bump, typically, from what buffett has to say. Be aware of that. It gives it up more than half of the time by the end of the week. So youre going to come in with that rosy hue, traders decided to sell off of buffett, maybe you buy today i mean sell off of icahn, buy today, youre going to get the same gain typically that carl icahn took away. So this is a, you know, when worlds collide icahn, wapner takes the market down, buffett with becky takes the market up. Only one is going to be treasury secretary. Probably i guess in a Clinton Administration buffett wouldnt take the job. I dont see that happening. I dont either. Good point. Be on the 32 bill, icahn. Icahn did warn on markets since september and since then s p up 11 . I was going to point that out, but you did. Yesterday kind of chided me for not calling him on an interview that was like going the guy suke dropped a bomb that said icahn fired me and said to scott why didnt cramer called me, well, because i didnt know, the interview going on, i could have said we have to hold off, cancel tonights show. Lets get ahold of icahn, lets run a rerun, but i was mid show. It was a bomb. I called carl on wednesday and he didnt call me back when i heard that he was he had exited all of apple. Were even. Im still waiting for that call back. Well, i tweeted im sorry. He thought i read tweets, wapner did not have his pc ob on so he was not reading my tweets and i felt very hurt. But i know jack was watching. And jack knows this weekend im taking over the company. Thats right. Im being facetious. I cant do it because im at the white house correspondents dinner. So im delayed a week in taking over twitter. Whats the matter . Okay. When we come back, its been a rough year for shares of linkedin, as you know, but the stock getting a lift on better than expected numbers and guidance. Well have a live and first on cnbc interview with jeff weiner when we come back. Stocks at the highest since that debacle in february. Look at the premarket, nasdaqs down six straight and remains the only major index in the red for the month. Were back after a break. Why do we have aflac. Aflac. And Major Medical . Major medical boyyy, yeah berr, der berrp. I help pay the doctor, aint that enough for you . Theres things Major Medical doesnt do. Aflac pays cash so we dont have to fret. Something families should get like a safety net even helps pay deductibles, so cover your back, with. Aaaaaaaaflac learn about one day pay at aflac. Com rap linkedin out with results. We want to bring in ceo jeff weiner from the Company Headquarters and Julia Boorstin joins us from l. A. Good morning to both of you. Jeff, this must feel a lot better than february. Good morning. I just wonder, all those worries about Enterprise Spending that came out of your prior quarter, were they misguided . Yeah, i dont know that there were any significant concerns on our end. The core of our recruiter business has remained solid. And we saw continuation of that in the First Quarter. But, jeff, looking at whats changed over the past three months, your outlook is so much rosier than it was last quarter when your comments and your outlook sent the stock down 34 in one day. What has really changed in the past quarter . Well, i think weve seen stronger than expected performance relative to our own plan internally. And as the year progresses we get better visibility into how were performing. So i think in addition to that some of the bets that we place ed in the latter part of last year for example, weve seen accelerating growth in terms of consumer engagement. And by virtue of the way the ecosystem works that has also had a chance to lift a few of our business lines as well. What has been go ahead. Im sorry. Its jim. I was just going over the last quarter. And i know that you said maybe the perception, but your cfo said at one point that there was continued pressure in europe. Continued pressure in asia pacific. Before that this is right from the Conference Call, so im not its not just the gies of the situation, in previous said headwinds prior periods displaced it wasnt there were things that basically said you had secular decline. Are you saying it wasnt secular it was one off . I dont know that it was secular, jim. With regard to the regionals in what were seeing, interestingly enough we saw Strong Performance across all lines that may be more about execution than it was about a secular trend one way or another. With regard to the display dynamic, you know, weve been able to stabilize that. And weve seen stronger growth coming from our sponsored content business. Tell us about your sponsored content business. Its been growing very fast. And my question here is these are basically ads. Who are you competing with . Is it facebook . And is facebook moves more into the work space, is that going to be a big problem in terms of competition . Yeah, were very focused on btob, its a large addressable opportunity. We think we have opportunity there by virtue of our members and the context in which we serve those members. Weve got a wonderful opportunity for marketers to be able to target influencers and Decision Makers within organizations. And the growth of that business is not only a byproduct of the accelerating engagement trends that we saw, but also increasing focus on sponsored content. We really doubled down on that this year. And were seeing the benefits in the byproduct of that. Jeff, its david faber. I mean, to be clear, the stock collapsed last quarter in part because you lowered guidance and you did so because of Talent Solutions which still represents 65 of revenue. It grew 46 in 2014, 41 in 2015. I think the streets modeling 27 growth for Talent Solutions this year. The question, i guess, from a lot of your investors is, when will that stabilize . It was down 700 basis points year over year, are we at a stabilization point, or does it still have more declines ahead . The core of the business, which st north american recruiter sales, our enterprise sales, is ab shuts lyabsolutely. Its been stable the past four years. Thats where were going to continue to focus. Growth catalysts for the overall towns solutions includes launching next generation of recruiters, first overhaul to that product that weve had in roughly seven years and were already seeing strong lifts in exactly the right areas there, far greater efficiencies and effectiveness for our recruiter customers. Weve launched two new skews. Weve acquired a company, we Just Launched referrals business, we see upside in our career pages area, which is an area thats been fast growing part of our business, talent, branding talent media. And we havent necessarily had a chance to innovate there. Thats going to be an area of focus Going Forward. The core of the business remains stable and we think we can continue to add Growth Drivers and catalyst Going Forward. Another issue raised by some investors is stock raised comp been as much as 16 to 17 of revenues. Given the decline in the stock and your ability to need to attract talent, how are you going to get that down to a lower number, which i know a lot of people who own your stock or think about it want to see given how large a percentage revenues it has been. Yeah, we want to remain and strike the right balance exactly to your point. We want to continue to be in a position where we continue to attract world class talent and at the same time were cognizant of stock based comp percentage of revenue. As we talked a little on the Earnings Call we saw 100 basis points of improvement with regard to that expense. And Going Forward we think we can find our way towards far greater leverage in that area. Were going to start to see ongoing improvements in terms of stock based comp as percentage of revenue. Do you think cash based comp has to go up though . If so isnt that going to hurt operating margins . No. I think cash based comp will remain largely stable. Its just a question of managing stock based comp. And i think were already starting to see the right trajectory there. And were going to continue down that path Going Forward. Jeff, how is that position with linda. Com going . Can you give us any expectations now as youve had the company for a couple quarters and what its going to do for your earnings and revenue down the line . Yeah. So were largely through the integration of the team. And thats gone better than we expected. It happened faster than we expected. Right now were largely focused on the consumer elements of that business and the enterprise elements of that business. With regard to the consumer part of the business, deeper integration of linda content throughout linkedin. Com, which were excited about. We can ago gregate content not just course work. We seep deeper integration with our general subscription package, which were already seeing the benefits of. And weve seen very strong improvements in the User Feedback that were seeing for people that have had a chance to see the benefits of that integration into their existing general subscription package on linkedin. Going forward the second half of this year we believe theres meaningful enterprise opportunity for linda and our learning Development Efforts as we continue to build out course work thats in high demand from the enterprise. And were going to continue to develop the enterprise product suite. So were looking forward to launching that in the second half of the year. And, jeff, finally from me, i mean, you mentioned the mobile app of course. Youve seen real success there it seems in terms of Marketing Solutions. Are you expecting that is going to continue to ramp in terms of your ability for example serve as successfully . And have that become a more robust part of your business . Yeah, thats absolutely the objective there. With regard to Marketing Solutions and sponsored content, were not only benefitting from the launch of that mobile app, which is accelerating unique user sessions, page views, engaged feed sections where the inventory is generated for our sponsored content, that is happening on mobile and desktop. The desktop acceleration was a bit unkpmted. So looks like the rising tide is lifting both of those boats in terms of the channel mobile and desktop. Were also seeing increasing online for marketers there. Weve improved our targeting capabilities. And weve just now started to pilot a program where we can sell sponsored content off of our network. So were looking forward to seeing results from that. Still early days. Finally, jeff, weve been through a week where we saw twitter raise questions about the stickiness of social overall and arguably those were canceled out by facebook. But i just wonder where you think we are in the overall narrative of people wanting to be on social networks, at least this this country . Yeah, i think people wanting to be connected with one another, wanting to feel like theyre heard, wanting to grow closer with people depending on the context, whether thats their personal lives, whether thats within a work environment, i think social is clearly here to stay. I think the means through which people are connecting whether that be traditional social platforms or this evolution and increasingly towards messaging, i think thats always going to be evolving. But i think these social platforms are very much here to stay. Jeff, its good to see you. Congratulations on this quarter. Jeff weiner of linkedin and our own Julia Boorstin joining us in l. A. Well get the mad dash and opening bell after a break. They work all the time. Sup jj, working hard . Working 24 7 on mobile trader, rated 1 trading app on the app store. It lets you trade stocks, options, futures. Even advanced orders. And it offers more charts than a lot o