welcome to "squawk box" right here on cnbc we're live from the market scare at times square. i'm becky quick along with joe kernen and andrew ross sorkin. here we go wednesday organization're looking at the s&p futures it's not a lot to write home about. it's virtually flat. we had marginal moves yesterday with the nasdaq slightly hoyer we've seen the others up two days in a row. take a look at treasury yields right now it looks like -- 10-year is a little higher the 2-year is at 284 i don't know if you heard knneel kas kashkari he wouldn't take cuts off the table, but he wouldn't take hikes off the table. we could do nothing. we could lower rates, but we

could even raise rates too that's interesting. >> druckenmiller talked me into no guidance. >> that sounds like what kashkari said yesterday. it could be anything. >> if you're truly independence, how can you give guidance? >> it's sort of the transparency. >> if you really don't know hourks do you give guidance? >> at least -- so that's symmetric risk i would like to believe if they needed it, they'll do it i was thinking about the dow managing the close higher, up 32 disney was down 11 what is it 7 or 8 or something? >> it's a lot. the rest of the components -- and we have tom rogers coming on to talk about disney. >> we should you know, he did not give us an indication we talked about the trading down and the experiences and what's going on at the parks.

if you look at what really happened in the market, it was on the guidance all around the parks, but there was this sort of -- >> i think there's a disappointment in the sub levels. >> he gets down and looks at what they're drinking at the parks. >> i think he's a good man. >> i think the theme parks are pretty cool. >> they are. let's talking about the breaking news. the white house is announcing a $3.3 billion investment in microsoft for an artificial intelligence data center that ice going to be in racine, wisconsin. it will create 2,300 union construction jobs and 2,000 permanent positions. it will be on the grounds where

it was going to be not that it's haunted, but there was going to be a couple of things there in the meantime the biden administration has now revoked export licenses that allow them to supply wowway with semiconductors the move affects the supply of chips for huawei's laptop computers and phones, meanwhile they've taken tougher action which natural security officials helps them engage in cyber espionage around the world huawei has denied those claims >> how come the white house is announcing the deal? are they giving them any money for it $3 billion. >> i'm not sure how much of a tax benefit there's going to be. i'm sure there's going to be some i don't know the details. >> this is how things are done it's kind of a partnership

like a china-type situation. >> no, no. >> what did -- that was a tax deal too, or was that wisconsin too? >> i think it was a state deal i think it was a state deal because foxcom had done different deals in different places and was not meeting its end of the bargain. >> i think hugh johnson threw in tow and said we cannot develop a noncarb fact he tried cauliflower, kael, squash he said, i'm going to go fix disney, which is easier than creatinging a salty snack that's low carb. >> i think it's more challenging. >> every time he was on, do you

have a noncarb snack are you going to eat pork riepds that if you set them on a napkin, they're greezing what are okay snacks for you to eat? >> yogurt and berries okay. >> do the news. >> yogurt and berries, i'm not surprised. do fritos that tastes like chili. overnight, "chinadaily" reporting elon musk testing the proposed self-driving features by deploying them as taxis the report says officials in beijing may have offered partial support. they immediately approved widespread use of them

i saw the other day elon left the parking garage, never touched the vehicle. it is close. it really is close you don't like driving. >> i prefer not to drive. >> if you're in a minivan -- >> what does this have to do with anything? >> what do you mean? we were talking self-driving cars. >> what do you mean does its have to do with anything >> anyway, it doesn't matter. >> uh-oh check your aura ring what happened? >> nothing. >> all right coffee all around. shares of ab inbev are higher. they rose 2.6%. that was slightly above analysts' estimates. sales in colombia hit

recor record-highs it grew. sale of the company's beer brands showed an 11% drop primarily because of bud light that is likely the last quarter to show aep it it started in april 2023 the company got its hardest quarter out of the way roy little to no bruises that stop up by 5%. shares lifted their highest quarter of 3 increments. revenue also beat -- it saw improvement in riders. the number of active riders grew at an active pace. we're going to talk a lot more about the quarter with that company's ceo david risher

that's going to happen at slightly higher. i know we're going to talk about this company its eats sticking by its plan to build 57,000 vehicles this year as it works to retool its ill plant and we're going to hear from ceo rj scaringe in the 8:00 hour in a first on cnbc interview, and phil lebeau is in the house. >> you gnome >> what is it? >> i don't want to drn you can since. they may trial to do something.

>> i have no idea. one of the things. >> we can search on google or per perplexity. >> did you try it? >> i did. >> and >> it pulls a bunch of different crap from all over. >> i did an interview a. i looked myself up and i was actually kind of proud i didn't realize i had served in the navy in vietnam, which i thought was kind of cool i wish i had. >> that was interesting. >> i wish i had. i didn't so they still make mistakes, i guess, right >> i think all these things make mistakes. >> it also said other stuff. is it totally down the mettle.

i think they are i searched about biden and trump. there are all kinds of horrible things about the tangerine titan and the other guy. like your facts, it's raining outside. shares of reddit are sharply higher after its first report as a public company they beat estimates of $213 million. the company said improvements to its ad platform pushed expectations and daily users steve huffman of reddit spoke about the merging results.

>> the bell curve, the average is about 25 years old, but then we keep keep they're on reddit swl. the current quarter guide' for the company is making improvements since itself ipo, itself's up by more than 65% frmg when we come back, tiktok strikes back, suing the u.s. government over the die vests ter ban bill, setting up what is likely to be a long legal battle we have the details next. and later, facebook parent meta is expanding ai image generation tools for advertisers. >> announcer: this cnbc program is sponsored by baird.

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tiktok is suing the government for trying to force the owner bytedance or else would face a ban joining us now a "new york times" business reporter

we knew a lawsuit was coming, but now what this is something that ee going to really slow things down you're going to see it probably appeal all the way to the supreme court is what some people are saying. what does this do to the time line >> so right now the time line stands as is i think tiktok said in its lawsuit they believe based on this law if nothing else happens that the tip toc app would potentially go away in the u.s. in japnuary of 2025. but we with expecting tiktok to file this suit this is really the company's last chance to say they shouldn't be banned and it's a violation of first amendment. >> it's interesting. is it national security or right

to free speech which one takes precedence is the burden of proof on the government to say this or on tiktok to say it's not a threat and first amendment should be what plays out here? >> my understanding is the government will have to prove that the first amendment violation is justified in this case, and, again, for those national security issues you mentioned. i've been speaking with folks at the national security council. they have been working on this bill for months and months, really close to a year, and they've been anticipating the arguments that tiktok will be making in court. so i know i am extremely eager to see how the government responds here to what tiktok set forth in its filing yesterday. >> former treasury secretary steven mnuchin who has said that

he is interested in purchasing this said yesterday that he thinks he would be able to find developers who can rewrite the algorithm because bytedance has said or tiktok has said it will not -- bytedance said it will not sell it with the algorithm, so they would have to have a new algorithm in place but while the lawsuit is taking place, i would imagine the company is not going to be looking to or thank youing to any acquisition or buyers. what do you say? what are the odes that they're not doing anything if they await the core process >> it's really tricky. i think they will be able to ask a judge at some point most likely for an injunction or something that might stop the clock for a period i think that if they do enter negotiations in good faith with

a potential buyer, the time line could be extended to up to a year butting you know, really throughout this filing, tiktok is making the case it's impossible for it to actually sell the business to a nonchinese owner, and they give lots of different reasons for that and so, you know, it remains to be seen if that argument is bought by a judge and if, you know, this is then litigated as an actual ban. >> if the real reason is -- and i said this in the past, that the chinese government won't allow it, how do you think that plays out in court the u.s. government says you must do this the chinese government says, no, you can't. >> it's probably not a great situation for tiktok because a lot of what they've been saying is that they are not subjected to the whims of the chinese government, but they didn't mention this in their filing

that this is a hurdle the their potential sale they also said selling tiktok's u.s. operation would hurt the ability of instagram or youtube. they also said it would be hard to pore over the underlying code saying it would take years for engineers to familiarize themselves with it and do the basic maintenance. so,ial, they've laid out a lot of reasons for whoo this is impossible >> thank you. >> thank you. on the other side of this, with oar going to talk to the cofounders that talk about how you make a bed could improve your sleep. and are you ready for this one? ftx is set to em prove their interest

118% they're getting back ve's very vary for a bankruptcy, gin the story we've heard. we're going to come back right after this

> welcome back to "squawk box. eight sleep launches a next generation sleep pod joining us right now are the co-founders of this company eight sleep. i should say up front i am an owner. i bought the first of these mattresses by the way, i bought a couple of

them it used to be cheaper. i bo it them during the pandemic and it changed my sleep forever. it's called eight sleep because it's supposed to help you get eight hours of sleep i unfortunately don't get that many, but i'm trying to make my sleep better i can do it because i did -- i use it i sleep on it every night. what is it that you're doing >> so today we're launching pod 4 ultra-the fourth generation of our product, of our best-selling technology it's a mattress cover you can install onto any mattress and it will improve your sleep. the way we do it is by wreck lating your body temperature at night and we keep adjusting that based on biometrics, things like your sleep basics, indoor temperature, outdoor temperature. >> it saved my marriage. i don't get a commission for this, i just want everybody to know. >> for now. >> what it does for those who

don't understand both sides can be different temperatures so my wife runs hers like a freezer. i mean honestly it's so cold if ever were to wake up, tmi, in hot sweats, never again. never again because it's regulating your temperature. and we're talking about this yesterday. it's my alarm clock in the morning so i don't have to wake up my wife in this case because you can make your side vibrate or heat up, which actually wakes you up. >> it can freeze you out. >> i use it, freezing myself to wake up because it depends on what temperature you had in your bed before the moment of wakeup. >> can you explain a piece of it i feel like i know too much about it the idea that you need to change the temperature of your body to get deeper sleep and how it's modulating your temperature to capture deeper sleep for longer. and i will also say i use an aura ring and i tested it.

i get deeper sleep as a result of this. >> we all have a biological clock. it's called circadian cycle. your body temperature changes during the night so when you hear people saying you should sleep at 68 degrees the whole night, that is wrong it could be right for one hour, but not for seven or eight hours in a row because your temperature changes. we keep changing the temperature for you to optimize your sleep performance. there's plenty of clinical evidence that temperature was the biggest factor before eight sleep. we didn't rein vent the wheel. we're helping your body do what it's supposed to do. >> by the way, one thing i never understood are you measuring my temperature as well? >> we measurering on the bed, but everything is based on your temperature, the outdoor

temperature, and the biome ticks. >> for the audience, it's much more expensive what's the price tag for this thing? >> it starts around $2,500 it depends there are two versions there's the pod 4 ultra-that helps stop senatoring. >> can you explain that? we don't have that one, and i do snore, and my wife asked about it how does it stop snoring >> today we're introducing pod 4 ultra-that comes with base that sits between your mattress and your bed frame and it will automatically raise your head while you sleep to stop your snoring? >> it's not going raise you up >> nope. while you're asleep it raises your head and goes down when you stop snoring. >> how does it get the readings for the biometrics >> we use the sensors in the mattress. >> in the mattress.

>> the mattress cover. >> no wonder it's so expensive that i would show you the data off the ring i have the same da that that in some cases shows it. it shows my heart rate is lower and stuff like that. it's tracking you while you're sleeping. >> i thought whether i sweat has to do with my own whatever i've done that day or like honestly like if i had some alcohol and then i go through a couple of shirts, i didn't know that would stop if i was not -- if -- >> drink all you want. we'll make more. >> so it will moderate -- change the temperature to a cooler setting so i don't sweat >> yes there's definitely an influence what you're doing. working out with weights, having dinner close to bedtime, drinking alcohol, each outside of menopause, we have a lot of temperatures that's all of the information

we're trying to gather we're continuing kpanlt. so in real time we can matcnage our sleep. what is the dream sleep? rem rem? which do i need? >> you need both deep is for recovery and rem is for your brain to recover. >> like neurotransmitters or something. we don't know what it's doing. >> that is the phase when you dream and the brain is reallocating all the information from the previous day. zmoo you think that all bed manufacturers one day are going to have cools technology there's cooling technology in bed, but this is a whole other

level of it. it's just about the temperature vision we given you today. it knows so much about you. >> what else can the bed do? >> the snoring is powered by an algorithm. you don't need to remember to touch anything. >> i notice that the app is now showing -- it unfortunately will show whether you're insider lts -- >> it could be snoring. >> what? >> it could be snoring. >> it could be sleech apnea. the same data can be seen about sleep apnea. >> it's so scary

you can't ignore it. >> thank you for coming in you have changed my life i don't say it lightly it's actually kind of true really. >> thank you so much for having us appreciate it. >> he said, it saved my marriage. >> she would say it saved our marriage. >> really? >> yes the other thing she got these below zero earbud things because of the snoring on my end. >> not having to touch you or hear you has saved your marriage. >> we're an open book. this is a very intimate topic here. >> it is, it is, it is. >> thank you if you're in the morning tv business, sleep is the whole business. >> eight hours. >> i haven't gotten eight hours in -- >> you have to it's not popular >> these guys -- because i see them i follow them online you guys get like nine hours sleep. >> eight to nine. >> sometimes they're flexing online and showing their scores.

>> do you have children? >> we don't. we do not have children. we are married and we run the company together. >> by the way, that is an issue. because of the two different temperatures on both sides, sometimes if you have a kid who likes to sleep in the bid, they like to sleep in the middle, that's something you have to work on. >> you have a dog. >> the dog does not sleep with us. >> do they cuddle with one or the other? >> sometimes they go for the warmer or colder side. >> you have to get up at 4:00 on the weekends two with two german shepherds. >> i know. it ruins you. coming up, ftx creditors -- that's kind of interesting i don't know $2,500 or 5 grand one. >> announcer: executive edge is sponsored by at&t business,

next-level moments need the next-level network it! that's right craig. a team that's highly competent. i'm just here for the internets. at&t it's super-fast. reliable. you locked us out?! arrggghh! ahhhh! solution-oriented. [jenna screams] and most importantly... is the internet out? don't worry, we have at&t internet back-up. the next level network. i sold a pillow!

ftx has amassed billions of dollars to recover what it's

lost the company will have as much as $16.3 billion once it finishes selling all of its assets and it only owes customers about $11 billion. extra cash will be used to pay interest to more than 2 million customers. the surge in cash is due to a general spike in services including solana sam bankman freed was convicted of fraud some creditors could recover as much as 142% of what they're owed most will get paid 118% of what they had it's important to say this the day the company entered bankruptcy, bitcoin was at a lower point. some people would have sold during that period between now and then, but, you know, it's a remarkable shift from where we were a year ago, a year and a half ago when john ray was saying this was one of the

greatest frauds of all time and there was no money there. >> john ray is still saying it's a fraud. shareholders get nothing this is just people who have had money on the platform. so customers are going to be made whole based on where the price was. >> the whole idea -- i just -- we used to debate this all the time. >> i still think -- >> i think the -- what john ray said if you go back to look at his comments what he said about it would be back then compared to what's happened now is like a night and day situation. >> it's been a great situation, but the other stuff he said, it's a crazy fraud this wasn't like the accounting that they had that took place for this, basically. there was a slush fund that said this is the money we're using. it was a crazy spread sheet. >> and sam bankman-fried is in prison for that. we're not going to disagree about that i think he made it -- he made it out very early and i actually think it's going to come up in the appeal for sam

bankman-fried, one of the things that happened during that trial was that sam -- the jury was told repeatedly that customers were going to all lose their money. that was what was said over and over and over again. so a jury heard that, and that was in the opening, in the closing, and during all the testimony. >> to be clear, none of these customers have had access to any money over that time there were harsh letters about people who never had access. >> correct the idea that ultimately right now you're going to get 1412% of your money. >> celebrity endorsers who got paid in -- >> they would not get their money. >> they're not credited? >> are you sure? >> i don't believe they would get all of their money. >> what we know from epperson -- >> tom brady is going to get his money back >> no, not him somebody else. it was like for five minutes you get $15 million and now you're calling yourself one of the

people that lost all their money? interesting. i think that eventually -- you know, he still to this day says that's my money just like any other money. i should be compensated. coming up we'll talk to the ceo of air cap about the push for deliveries of airbus and boeing planes. we're coming right back. that you and your family need. i promise to put your long-term financial well-being above any short term transaction. everyone has a big picture. my job is to help you invest in yours. [announcer] charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com

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welcome back to "squawk box." on this day, you can have your capital day you're announcing your first dividend and a big order. >> that's right, phil. we're very excited three announcements today.

our dividend and a buyback and a $3 billion engine for leap engines which are the most advanced engines we're doing that from cfm. we're very excited >> the engines are not appreciated enough about the impact that it's having on the airlines, correct? >> for sure. like many people will call an airplane an engine stand, you know without the engine, nothing happens. the engine are the key to the economy of the aircraft in terms p of fuel. that's all driven by the engines. unless you get 15% reduction and fuel burn, you cannot build a new airplane the in-service life of the airplane is determined the engine are the crucial piece

of technology that power these aircraft >> let's talk about boeing you have a lot of 737 maxes as well as 787. do you understand why airlines are fed up and frustrated with this company >> we do, of course. we have been boeing's biggest customer for more than 30 years. we own the most boeings than anyone in the world. we understand the frustration. customers can deal with bad news if they're given enough time but when you have a summer schedule, you've sold the tickets, you've got your customers coming you've hired the pilots, paid for all the grand handling staff, and then you're told six weeks before the summer the airplane will come in october or november, that's a disaster. how do you recover from that well, you're paying big penalties for your customers you're paying someone else to

fly your customers as i said, the airlines can do a lot better if they're given the news in advance. i think that's what they'll be crying out over for the next couple of years. >> have you thought about cutting maxx orderis and say, yu know what? we can't do this we thought we were going to get exnumber of 737 maxes and you're not going to be able to deliver? >> no. we're a big believer in the maxx when the maxx is in service, it does a great job, particularly the maxx 8, which is a 180-seater aircraft. that aircraft is extremely competitive with its airbus rival, the a320. and every airline we have that has a maxx 8 in service likes that aircraft, and pretty much every one of them wants more. >> why is airbus so much more consistent than boeing right now? they have the same suppliers essentially worldwide. >> there is a lot of

commonality. to me i think it goes back to what happened during covid airbus took the decision they were not going to let go significant numbers of their most skilled engineers and mechanics. >> kept them coming into the office. >> they kept them coming into the office as well everyone they could, they brought in everyone they had -- we've also been airbus's biggest customer for the last 30 years. guillaume said to me, you're the guy who has the money. i sell to you at the price i sell to because i know come rain, hail, or shine, you're the guy who's going to show. so when the airlines were under great financial pressure, he kept reducing. he kept saying, you're going to by he didn't send home or let go the most experienced. >> did they make a mistake >> if you look at the amount of skilled mechanics and engineers that left boeing, it would be a

much higher number than what happened with airbus you cannot take a barista from starbucks and have them drill a hole in a jet's engine it tears s -- takes years and years to learn how to build a jet. >> it doesn't make me happen the french outmaneuvered us and it paid off. who's making those decisions at the time is that calhoun at boeing? >> joe, that's a decision made by the whole company if you look back at the last four or five years and said which companies came into the office, which guys didn't give up, which guys kept going? who are the winners? the french company they were doing it too it doesn't matter where it comes from the fire is in the belly. >> you would think boeing would be -- i don't know

i would hope, but obviously i'm wrong. >> it's been clarified to a degree we haven't heard before, that the airbus had the level of staffing and people who were coming in and doing their job. >> when you think about it, these are sophisticated, huge -- think about how big they are and what goes into the manufacturing of an airline. >> real quick because we have to go, next boeing ceo, when do you think they might finally get a decision >> this is one that can no but rushed we have to get the right person. that company is so important to the world. i think that the key now is to get someone who is the right person for the job it cannot be rushed. there can be no knee-jerk reaction whatever ceo comes in, financial

targets are completely irrelevant if there's not a focus on quality and anything were to happen, that could spell the end for a lot of customers and significant issues for boeing. so whoever comes in has to be able to in time, probably slowing down production, i would say, to make sure that everything is done right because the impact of another event would be -- >> there is a sobering thought we'll let you do your thing. >> thank you thank you, phil. thank you, gus when we come back, uber set to report we'll bring you the numbers and the first on cnbc interview with the ceo, dara khosrowshahi "squawk box" will be right back. . >> announcer: this cnbc program is sponsored by truist wealth, where meaningful relationships matter most.

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coming p, disney shares fell by 9.5% yesterday we're going to talk about the quarter with veteran media executive tom rogers quarterly results from uber and first on cnbc interview with dara khosrowshahi. all that coming up when "squawk box" returns and if you want a successful business, all it takes is an idea, and now becomes the future. a future where you grew a dream into a reality. it's waiting for you. mere minutes away. the future is nothing but power and it's all yours. the all new godaddy airo. get your business online in minutes with the power of ai.

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welcome back to "squawk box. uber just out with results and the stock already moving on the back of it the company reporting a first

quarter loss, revenue coming in at $10.13 billion, that's versus $10.11 billion that had been expected overall bookings just shy of estimates. $37.65 billion versus $37.93 billion. uber's ceo dara khosrowshahi is going to join us in a couple of minutes. the stock is off about 7.7, almost 8% on the back of this news and it has been, you know, consistent with what we keep seeing in a lot of these earnings reports where people get a little bit anxious about where they are, especially when it comes to food and other kinds of -- >> and high expectations >> i'm thinking of food as part of their business, delivery is part of their business consumer-related anything. >> we'll talk to tom rogers now and prices have gone up across the board, even at theme parks too. it is part of tom's thesis disney shares tumbled yesterday, guidance for the streaming division left investors somewhat

disappointed joining us now, former nbc cable president tom rogers, executive chairman of orbit gaming and entertainment and cnbc contributor. tom, thanks, good to see you the linear business, no surprise to anyone, but the numbers are a little shocking, not only revenue down 8%, but operating income from linear, $752 million, down 22%. if entertainment streaming finally turned a profit, you got more going out this side than you got coming in over here. >> well, joe, i am usually the disney skeptic as you know and the markets has gotten excited about disney sub numbers. i'm usually pointing out that there is another story there that isn't so rosy on this quarter, i think the market is being far too skeptical relative to disney performance. i actually think this was a very

good quarter, setting up a good year you're looking at a year that is going to have 25% eps growth, 8 billion or more in free cash flow, and streaming profitability. and i think that sets things up pretty well for them and i think it is meaningful that disney plus and hulu together are profitable when you take espn plus out of the equation contrast that with warner, that in order for streaming to be profitable, it has to put its hbo cable and satellite business into the streaming numbers to claim profitability. i think here to your point, though, about the whole game is can streaming profitability make up for the continued precipitous decline of linear? and the whole question there is can this streaming business scale? and i think what analysts have missed here is a major milestone

that disney has hit, and that is that the streaming business now, after four years, in terms of revenue, is equal in size to the linear business. its run rate, $25 billion in revenues, that's about 70% of what netflix revenues are. and that's a real milestone. none of the other traditional media companies can say it is scaled its streaming business now to the size of its linear business now, to your point, the linear decline continues and 22% operating income decline and when you look at the international business, 44% operating income decline on the linear side with on average linear viewing declining 10% a year, they got to continue to grow that thing. and the operating margins are a big question because of the equivalent levels of revenue to

netflix, disney is nowhere near netflix operating margins. but they have scaled the business in four years to a 25 billion run rate business. that is real achievement >> the parks business, i alluded to some of your comments there, some disappointment about a slowing of -- i don't know a bounceback there, you said prices are higher and it shouldn't be surprising? >> yeah, i'm not surprised that the parks business is flattening they have taken price up like crazy. i think testing the limits of pricing there and at some point that was going to flatten, given how aggressive they have been there. i don't think analysts have adequately pointed to the real issue for parks going forward, which is comcast, cnbc's parent company, soon to open the epic park in orlando, which is surely going to create some meaningful

competition there for disney world. it is also going to bring a lot more visitors to orlando but disney dominates the theme park business with the 60 billion infusion of capex that they planned for that. it is going to continue to dominate i think the issue for disney, the problem child that i'm looking at is hulu it not only has the comcast negotiation on the buyout to deal with, which is probably not going to end up pretty for disney it is sub numbers seem to have stalled. its daily usage is down more than any other streaming service, and unexplainably, to me, its ad revenue once again declined for the quarter you have disney cfos saying the ad market is strong. and we know that budgets are increasingly being allocated to streaming services and hulu is the granddaddy of

advertising streaming service, has much bigger ad subscribers than any other streaming service, because it has been at it much longer in terms of advertise and its advertising is declining. i just don't understand it that's a real operational area that they're going to have to focus on. >> wow yeah, not normally as nice about -- i like it when you're not as nice. but that's okay. you call it like you see it. tom, thanks. see you again soon newsweek editor at large, that sounds like a big job. just after 7:00 a.m. on the east coast, you're watching "squawk box" here on cnbc. i'm andrew ross sorkin with joe kernen and becky quick the biden administration set to announce a $3.3 billion investment by microsoft, a facility that will be built on the same land as that failed $10 billion plant once proposed by taiwan's foxconn

meantime, sticking with the chips theme, the white house also now is revoking export licenses this morning that allow intel and cqualcomm to supply huawei and bloomberg reporting that the nfl special committee concerning new rules -- new ownership rules that could allow groups of private equity investors to buy as much as 30% stake in nfl franchises talks are ongoing and the percentage in the proposals could change the owners will present their findings at the three-day meeting in nashville that begins on may 20th, that had been a long expected and debated topic as the prices of nfl teams have soared the truth is they're running out of wealthy families in america to buy them. so now we might have pension funds and sovereign wealth funds and other folks getting involved in financing football. becky? >> well, reddit is out with its

first quarter results. it beat revenue expectations and as a result, the stock was up sharply. you can see right now, up by better than 15%. last night, the ceo was on "mad money" and said twhat was becaus of the success of advertisers. >> our advertising customers are finding more and more success on reddit really at the end of the day, since reddit represents everybody's interests and passions, that means every company's customers are probably on reddit somewhere. and so simply by making the product easier to use, making our ad tools better and better, we're able to kind of realize that connection. >> that was the ceo steve huffman. joining us now to talk about it is jurorosh beck raymond james senior analyst this was a big beat in terms of expectations, not just for revenue, but smaller than expected loss. you're talking of a loss of more

than $8 a share. when does this start to get to the point of profitability >> yeah, well, thanks for having me on, becky you're right it was a great quarter they beat revenue by over 10%. certainly it is a standout within the digital ad space. they're growing their business over 30% the market is probably growing maybe 10%. they are gaining share the reason is that as steve mentioned, advertisers like to target interest and they like to target communities and you can do that really well with reddit. on the profitability point, you're right, from a gap point of view, there is a big loss this is going to probably be true for a lot of tech ipos. these options were set with interest rates were a lot different. basically they're having to reset those options, it looks like a big expense but it is not really anything

new. but the ebitda metric, the adjusted profit metric is what people focus on. that was already positive. we didn't expect it to be positive for three quarters. overall, there was a lot to like in this print. >> and it is already an $8 billion market cap company i guess i just get back to the point if they beat revenue by 10%, that's great. but you're talking about less than $2.5 million in terms of that beat because the revenue is still incredibly low, relative to some of the others that you see. may be growing at 30%, versus 10% for others that's because the base is so small. what do you have to see to continue to make you believe that this company is on the right track? >> you're right. it is a fair point their revenue base is closer to a billion dollars. some of the other midcap, a few billion, hundreds of billions as you look at google

but i think the tech investor math, for a company like this, is how quickly can it double the revenue base and if you're growing 30%, you can double the revenue base and really just a few years. and so, they can keep this up, they can go from, you know, almost a sub scale ad platform to one of the, you know, more well defined and more well scaled assets in the space alongside that, the amount at which the profitability is starting to flow through is really good. about every -- for every dollar of revenue, about 75 cents of that through to ebitda on a growth basis if you start playing that through, you can see how this can be strong, double digit, 20, 30% ebitda margin type of business, and i think that's unique in addition -- >> real quickly, the question on this company, when it was going public, was, look, it is a

really rich user base, there is a lot of data there, every company probably has customers that are talking about it with reddit chains. the problem has been trying to figure out how to monetize that while you still have so many of the moderators who are not paid, they don't work for the company. is that -- what is the dynamic you get from there is this going smoothly with that group of volunteers? >> you're right, so they're unique, right, in that it is a platform a lot of communities, you have to maintain harmony among the moderators and users, right? that's a big task. i think they have done it really well they left some of the power users participate in the ipo the same way institutional investors would. and it gave them a nice profit and certainly that's higher even today. but, you know, on the data side, that's really one of the most interesting elements of the story, you've written a lot about this a.i. cost inflation idea pretty much every company

is raising capex, why are they doing that they're trying to trend their models and what you need to train your models, you need data not encyclopedias, but real human conversation and reddit is starting to monetize that data asset. they have this deal with google, and i think there could be others. >> josh, thank you josh beck. coming up next, uber ceo dara khosrowshahi will join us that stock falling after the current quarter forecasted growth bookings fell short of estimates. we'll also talk ride sharing competition and much more. and then later, rimmian st rivian sticking with its forecast we'll talk with rj scaringe about the guidance in the ev market in general. "squawk box" will be right back.

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welcome back to "squawk box. uber out with results this morning, reporting a first quarter loss, revenue at $10.13 billion versus $10.11 billion expected overall bookings shy of estimates, $37.65 billion versus $37.93 billion joining us is dara khosrowshahi, uber's ceo we appreciate you joining us this morning want to talk about the report, i think it surprised some. you look at the stock down just a bit on the back of the news. i think in large part because you had been hitting, you know, you had become profitable last year and then here we have this loss this year >> yeah, i think when you look overall at the results, they continue to be consistently strong, right? if you look at our top line

growth, incredibly strong, and if you look at our guidance for next quarter, we're between 20 and 21%. ebitda growth up over 80% on a year on year basis and then 1.4 billion free cash flow during the quarter over 4 billion of free cash flow next quarter. now, the reason why we moved into a loss, the biggest reason why we moved into a loss was that we got significant equity stakes in certain companies like didi and other companies out there. and we had to take a markdown of $700 million for those equity stakes has nothing to do with the operating business, but we did have to mark down those equity stakes that resulted in a loss we don't expect that to keep happening going forward. but you can't, as you know, andrew, predict the markets. >> so, when you -- to the extent that investors should look through those equity stake

writedowns, if you will, and look at the operations, when you think about the operations over the next 12 months, how is it looking to you we had now a number of ceos come on over the past quarter -- this whole earnings season, and say, you know what, it feels like things may either -- are soft now or will get soft in terms of what their expectations look like. >> we keep looking for signs of softness, just because we read all the news that you read and talk to the folks that you do as well but we're not seeing signs of softness, if you look at our guidance, it is between 20 and 21% for next quarter that's super strong. when we look at consumers, are they trading down on uber eats, are they eating at less expensive restaurants, we see no evidence of that frequency is up. our both retention is up and mobility and delivery as well. so we're not seeing the kinds of signs of weakness that other folks are talking about.

hopefully that will continue, you know, one interesting trend we're seeing is that people are getting back to work, actually, if you look at workplace and look at commute and office, people are absolutely getting back to work, workplace hours are stronger than let's say leisure hours. and also travel continues to be strong as well travel growth, very significant rates on a year on year basis. >> speak to the issue of pricing on the mobility side this is getting picked up in a car, given that in truth it appears that lyft, your biggest competitor, has gotten more competitive or tried to get more competitive on prices that forces you to bring prices down in certain markets. >> we see pricing in the u.s. as being stable so you saw our mobility business, for example, grow 26% on a year on year basis globally so the growth rates that we're seeing are very significant. and overall the majority of our growth is coming from audience growth, for example, audience increased 15% on year on year

basis and frequency as well. people coming to uber more, especially as a higher percentage of our consumers become members of uber one program, frequency is up 6%. gross bookings grew 21% year on year trip growth was 21%. we're not using price to drive growth, which might be different than some of the other companies out there. >> speak to the uber eats piece of this, that has been the piece you continue to invest in. and the question is is that -- how quickly is that part of the business going to be profitable? >> that part of the business is profitable, happily. our growth rate was consistent this quarter, 17% year on year basis. most of the growth is coming from audience and frequency. retention rates are up as we continue to add selection. we got over a million members now, sorry, a million merchants now on the platform. so we're seeing eaters come back to us or frequently more

predictably as it becomes a habit, so to speak, and we believe we have gained category position in ten of our ten biggest markets. uber eats continues to grow and is profitable. so ebitda for uber eats business was at a record margin, 3% of gross bookings, up over 80% on a year on year basis we're at a point as a company where we can continue to grow at outsized rates compared to our scale, while continuing to increase profits and increase profit margins. >> yesterday you announced a deal with instacart, where folks are using the instacart app, and can use your service how much is that going to be a game changer or not in terms of what it means over the next 12 months of the business >> we're very excited about the instacart partnership. we view it as being highly strategic. when you look at our penetration, especially uber eats penetration, and you look at our category position, we are

super strong in the big cities you would expect that, right the uber name is an urban kind of a brand and we believe our most significant growth opportunity in the u.s. is in the suburbs, in the less dense areas. that's an area of strength for instacart. they wanted our content because they know we got the best selection, the best service, the best pricing out there, and so we now get to put the uber eats brand and service in front of, you know, the over 10 million instacart customers who tend to live in the suburbs, tend to be highly affluent, kind of shop at -- with big basket sizes so we're very, very pleased with the partnership and the potential we see going forward. >> how much of that was about trying to box out doordash >> well, we compete with doordash every day so, i wouldn't say necessarily trying to box out doordash, but they're a strong competitor, we think we're a stronger competitor and we think that having access now to the

instacart customer, that tends to be -- there is a lot of overlap between the instacart and doordash customer, we think that's a strong strategic move, the deal is going to be profitable for us, so we kind of have the best of both worlds in terms of topline growth and profitability that is highly strategic. >> when you think about your competitors today, who are they actually >> our biggest competitor andrew is the personal car ownership. it is that car in the garage, that second car in the garage, and if you look at everything that we're doing, we're trying to build out more and more services for you to leave that car alone. whether that's reserve, so you can get to the airport, or whether that's renting a car on uber, or coming to uber eats for your dinner or your groceries as well the biggest competition is car ownership, it is a tough competitor, but we continue to make progress against personal car ownership. >> has there been any shift in

your mind about robo taxis there was a period of time we talked about robe yeo taxis, evy quarter, and we effectively stopped, you stopped that investment as well now we're starting to hear -- elon musk has been in the background on this, but now he's very vocal about turning tesla into a robo taxi company we're starting to see more technology that seems to actually be working. do you have a different sort of view about this now? >> well, we think that the autonomous technology brings incredible promise, incredible promise in terms of improving safety, lowering prices, making mobility available for everybody, which we think can increase the overall market share of our services. and, listen, we would -- i would never underestimate elon musk and tesla, we're big fans of his. they're clearly the leaders in evs and we have a lot of teslas in our marketplace

at the same time, i wouldn't underestimate what we bring to the table in terms of the uber brand, in terms of matching pricing, routing technology, our payments, fraud, identity, safety technologies as well. and so as a result, we think we're in a great position to work with any and all ev manufacturers as the technology develops safely, including tesla, by the way, because what we're seeing, what we can bring with this network is higher utilization of ev assets and we think -- >> do you see the sea change there are people in the tech world whothink that the new tesla fsd, the full self-driving, which is now running off of a.i., really the major shift in this, that there was a step change in what it is capable of doing, and that we now might be actually dramatically closer than we were a year or two or three ago >> i think the early promise that we see with newer a.i. models and imitation learning,

what we call 2.0 is very exciting now, remember, ev had very strong early promise as well early promise hopefully will result in faster development and we'll see how that develops and, again, because of the demand that we bring, we can drive enormous demand to this promising technology if it develops, we think it will be a huge positive. it also allows a lot of smaller players to develop this technology, just like you saw kind of in the early days, loms, a bunch of big players, saw open source smaller mod s les come i, we think the same could be true of the invitation learning models we're seeing on the market we think it is promising we're going to be a player in the space. >> -- looking at uber without any uber drivers it is just all robo taxis? >> i don't think it is going to be all robo taxi anytime soon. and we think that if -- when the

technology comes in, there will be a transition. and you will have essentially hybrid networks, sometimes robo taxi may be the right answer for you, sometimes a person may be the right answer for you and going through that transition we think we're uniquely situated as a marketplace to essentially have any and all safe ev tech along with human drivers on our network. we'll be the most dependable network, we'll be available everywhere, and we think we can kind of steer through this transition and really thrive through this transition. >> dara, appreciate you joining us this morning and look forward to seeing you very, very soon. hopefully we'll do it in person next time. thank you. >> thank you >> appreciate it coming up in the next hour, we should mention the lyft ceo david risher will be with us. >> it is a weird transition, you think about a company that has done so well because it didn't have capex to put into it, but it has the issue of labor and some of the struggles that come with that, for them to do this

it would be a cap heavy. >> they would not do it that way. >> just do it around the edges >> they would be the network and then other people would have the car and put the car into the system i mean, i don't want to speak for them, but that's how it's been described in the past. >> that makes sense. otherwise it is too heavy of a lift, so to speak. >> right lift still to come, one of the -- one of most powerful women in media and entertainment bonnie hammer joins us to discuss her new book, which aims to empower women in the workplace and then in the next hour, rivian founder and ceo rj scaringe and then harvard professor and podcaster arthur brooks joins us to talk college campus unrest, he's all about happiness, he needs to ramp it up a little every time he comes on, things are worse. "squawk box" is coming right back. >> time for today's aflac trivia question which pc vendor has been the global market share leader since

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shares of shopify plunging in the premarket the online retail platform reporting first quarter earnings and revenue that beat estimates. shopify said it sees second quarter revenue in the high teens compared to the analyst consensus of 19.6% current quarter margins are expected to decrease by 50 basis points compared to the first quarter as the result of the sale of its logistics business the stock kind of taking it all in, down by more than 16% this morning. okay a special committee at trip adviser said it is determined that there is currently no transaction with a third party that is in the best interest of the company. authorized the committee to engage in discussions about a potential transaction. that happened back in february the online travel company also just reported earnings, eps

beabeat ing estimates and revenue. the stock down on the back of that at 16 -- down 16% on the back of that news. chinese state news outlet china daily says china would welcome tesla's robo taxis the idea was floated by elon musk during his visit there in april. eunice yoon joins us with more >> reporter: the state backed newspaper cited sources as saying that chinese officials told musk on his whirlwind trip that china, quote, welcomes tesla to do some robo taxi tests in the country and hopes that it will set a good example. now, tesla wouldn't comment on the report, but the move could potentially be very good for tesla because it would be able to experiment with its robo taxi technology in an environment that is a regulatory environment that is much more conducive than the u.s. elon musk said he hopes to unveil the robo taxi on august

8th. for the chinese, they want to be leaders in a.i., autonomous driving as well as other dv advanced technology. so having tesla here, testing out the robo taxi backs the national agenda. now, what was also interesting is that the state paper had also flagged that tesla still did not have a full approval for a broader rollout of its fsd or full self-driving -- driver assistance technology for its other cars they said that there needed to be approvals for data collection and data transfer, paper also played down the announcement of a deal with baidu, saying that it is more for the accuracy of the math than for fsd. not clear why the chinese wouldn't approve this or discuss it in this way, however, the chinese government has approved similar driver assistance technologies for tesla's rivals

here in china. >> live long enough, i guess i heard earlier airbus is much better than boeing because of the capitalists in france and now i hear that china has a much less stringent regulatory structure than we have here. so, what is in it for china, i don't really understand why they would be so -- >> well, the chinese, why they would want to do it, the chinese really, really want to be leaders in these technologies. so, in terms of the regulations, the belief is that the government is more willing to maybe turn a blind eye on certain things or allow certain things to happen in order to achieve what they see as a bigger goal, which is becoming the technology leader. >> the first robo taxi, they start taking it apart, this is how you do this, this is how you

do this, is that the idea? >> let's hope not. >> thank you, eunice see you later. coming up, bonnie hammer, vice chair of nbc universal joining us to share her new book "15 lies women are told at work." don't miss this. "squk x"omg ghbaawbo cinrit ck in just a moment you need an idea. it's a pillow with a speaker in it! that's right craig. a team that's highly competent. i'm just here for the internets. at&t it's super-fast. reliable. you locked us out?! arrggghh! ahhhh! solution-oriented. [jenna screams] and most importantly... is the internet out? don't worry, we have at&t internet back-up. the next level network. i sold a pillow!

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all right, welcome back, everybody. our next guest has been hailed as the queen of cable tv she also has some essential career advice for women, particularly those who are just entering the workforce this graduation season. and she turned some conventional workplace advice on its head want to welcome nbc universal vice chair bonnie hammer she's got a new book out this week, "15 lies women are told at work and the truth we need to succeed. thank you for being here >> pleasure. i'm delighted to be here. >> we think this is for men too. >> we do >> yes >> i will say, i don't like advice books i don't like self-help books, but this is different. and when i read this book, it is like listening to you talk you're a straight shooter and you cut right to the chase on things and you make fun of some of the silly things that are kind of, you know, these little sayings

and platitudes that go out that we're supposed to listen to as life rules and that's what i think grabbed me the most, things like lean in, know your worth, fake it until you make it, you turn all those things on their head. >> they're dangerous cliches and they make for a dangerous manual for growing up in our work world. and i think if we believe these sound bites, like a misinformation campaign against everyone, in particular women. so, i also agree with too many advice books, but they're not enough books out there that expose bad advice. >> agree that's what i'm trying to do here. >> agree and i think the reason that this really grabbed me is because you speak the truth in a way that most kids are never going to hear these things. and not just kids, people later in their careers too let's talk about some of the great practical advice you give out and because it is graduation season, and because i have two daughters myself who are in college and coming home and who are out there starting to look around in the workforce, some of

the things you say is the truth is know your -- the lie is know your worth, the truth is you have to work on your worth explain what you mean. >> i think we conflate personal worth and professional worth everybody has, you know, personal worth, you're born with it and you deserve to be treated right, period, end of conversation the only way to prove your worth at work is to work at it everyone -- there is a belief that personal worth at work is intrinsic. you have to earn it. you know, i think the kids growing up right now kind of grunt at grunt work. when i started out, my first job literally was cleaning dog poop. and was beneath me absolutely >> i still do that >> i do it at home. >> i did it yesterday for two german shepherds and a corgi >> this is a job

>> i'm telling you, i feel your -- i feel you >> this dog made more than i made, literally and figu figuratively what happened was, you follow the dog around, you pick up the poop, you do it with a smile, people are happy to have you around, because you're optimistic and you're having -- you're seemingly having a good time and so when the time comes, they want you around. so they're going to bump you up, i got promoted because i did that stuff with a smile. >> and by the way, despite all your connections, your son, jesse, went to work in the mail room of one of the big agencies, and he had to do the same thing. >> and i didn't help him get anywhere and he took a job in the mail room, and he would come back and complain like crazy that, oh, my goodness, they're not letting me use my brain i'm smart. they're not letting me use my brain. and i would say, jesse, excuse

me, you took a job in the mail room what did you think you would be doing as opposed to writing scripts at this point, or doing other stuff in basketball, that's not happening and -- but he was wise enough when he went around delivered the mail, packages, whatever, he networked. he smiled. he made friends with the agents in this space. and it worked for him. and he looks back with his own smile right now and realizes, okay, i get it, and he's doing great now. but, you have to work at your worth. you have to make people believe you're going to be around doing anything they ask you to do, whether it is running out for coffee, or actually doing some thinking with and for them. >> another one of your lessons is just looking for mentors. not just mentors who are supportive mentors, but also challenging mentors that while they may be the most difficult to work for, while it may be hard to take constructive criticism or just criticism at

points, they are the ones who are going to teach you the most. and one of your -- one of your mentors, who was one of the more challenging ones, a guest of the show, barry diller, someone we see frequently too want to talk about your experience and what got you to that conclusion, that these are good things. >> i think we're brought up to believe that mentorship should be cheerleaders. just giving you the ra-ra the entire time and being super supportive and being a friend. what i learned particularly because of barry is the best mentors are foils. they are drill sergeants they put the tough in tough love and trust me, barry is and was very, very tough but he taught me how to think. one quick story, we were -- he was my boss when in the early days of running sci-fi and we're about to launch a show or we were trying to get permission to launch a show with a psychic and barry's question to me was if psychics are real, why are

you putting them on a science fiction show if psychics are not real, why are you doing business with them in the first place we went back and forth, email, all weekend long and this is way before iphones, we're sitting in front of computers, friday, sunday i was about to give up and i came up with, okay, barry, psychics are in the mind of the beholder, to prove that they are real or not real is impossible it is not fact it is not fiction. it is something in between it is friction therefore it is perfect for the science fiction channel. and at 11:00 on a sunday night, he writes back, okay, your arguments win, go. he forced me to think, to analyze, to debate with myself, to come up with something that was logical and right so even if it failed, it would be okay,

because i thought it through >> and, by the way, this was someone who until that point you really struggled with trying to work with him and understand him and get what he was doing. you had your kickbox punching bag, you painted his name on it. >> i was petrified i literally hid under the table for the first probably 18 months of working for him, because i was so afraid he was going to ask me a question and i wasn't going to be able to anser. >> what was the turning point for you to realize that, though? the value in it. because i think sometimes people in the moment don't appreciate the value. >> it was winning. getting your -- >> i think it was mostly in hindsight did i generally appreciate who he was, what challenging mentors are about, what sparring partners were about. but i was fiercely determined to make or want barry to respect me it was something about being able to survive it and get his

blessing that made me want to stick it through and i also watched a couple of people, one in particular, steven rosenberg, who used humor to deal with barry and i so admired it that i tried to follow and copy that a little bit. but it is in hindsight that you realize how much you learn from those people in your world as opposed to those who pat you on the back i had some great cheerleaders, supportive mentors too, but in hindsight, the barrys of the world really taught me. >> you think entry level position and if you're not entitled and willing to do it because of the promise of what can come down the road, do you think with all the talk we have now about living wages and everybody has got to make $25 an hour, is that the way we should do it, should kids expect to walk in and make $25 an hour or

because -- we see what might happen it may be automated. there may be no entry level positions left. >> exactly what you're saying. i think it is our generation in some ways, my generation, who set kids up to believe they are entitled the minute they walk through a door to better pay, better jobs, better tasks, and we

the book is full of practical pieces of advice useful and helpful that totally resonated with me because i've lived through it in my experience too. bonnie, thank you for coming in

today. again, the new book out this week calmed "15 lies women are told at work and the truth we need to succeed. i bought two copies already for my daughters and get signatures before you go. >> thank you great. >> great to see you. coming up when we return after this, senate taking up a bill now to keep our skies and airports safe. hear from senator jerry moran when it comes to the faa reauthorization bill don't go anywhere. "squawk box" coming right back, after this. (laughter) at 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley.

with only two days until the deadline senate kmert committee leadership agreed to a partial faa package with nine, non-aviation-related issues on the bill he's subcommittee and co-spencer of the faa co-sponsored act and

watching how things are done in washington, it needs to be done. right? is that what your message, end of the day need to focus on whatever the distractions are, they need to be done? >> absolutely. joe, this is the takeaway congress should have with the concerns that have been ongoing with airline safety. we need to provide certainty, and faa reauthorization helps give the tools to the faa to do its job well and to do it better took us a long time to get an faa administrator confirmed in the united states senate that was a step in the right direction. a significant one. again, in that certainty, and now to make sure that there's a consistent plan going forward. the last time we went three faa reauthorization there was extension after extension after extension. when i became the ranking republican on the aviation subco

subcommittee, one of my goals, modest, just get our work done on time. we've been working on this 14 months now every member of the committee and most members of the united states senate have had input in this the house has passed a bill, and it's time to move forward, as you say, this extension we're operating under, the first extension and i hope not a second, concludes on friday. incidentally, because it's a revenue bill that's required, an extension has to originate in the house. that means days, maybe weeks not just a simple -- so i really think an extension is pretty much out of the question, and tomorrow or friday you and i can have a conversation i could be totally wrong but seems to me we're going to move forward, as we need to. >> not a done deal, though is it? what do people want? both sides want some things that -- it's not soup yet.

>> it's not. i mean, and most of the amendments that will cause difficulties have little or nothing to do with aviation. they're non-germane. they doan fit in the bill. this is a system of a senate that works pretty slowly and has not had a lot of legislative accomplishments. it's hard to get them around here, and a lot of perception this may be the last major piece of legislation to work its way through the senate certainly before the elections and perhaps before the new year. so everybody, all of us, have things we want to accomplish, and so you look for what we call here in the senate a vehicle to attach this to so that when that vehicle moves our amendment is included that's what we have going on here we're determining what amendments are going to be considered, if any, and i would guess that that number is pretty minimal and we'll just kind of march our way through using cloture and time constraints to

get it done. the leverage someone who wants an amendment has is just to slow the process down, causing us to miss that may 10 date. >> democrats, they don't like that provision that undercuts the automatic refunds. how's that -- is that a deal-breaker are republicans -- who needs to give on that >> i mean, i think there's -- i think that issue, what i would say is that what we have reached a conclusion in the committee is what needs to take place there's bipartisan broad consensus. so i mean, the "give" has to be with those trying to amend a bill that hawaii a long history in getting accomplished, but has broad support. i'd say the amendment that stands out to me is the issue of slots at ronald reagan national airport. the bill that, the underlying bill adds four slots, four additional -- sorry. five slots

five slots going for landings and takeoffs, round trips a day. the virginia senators in particular who have a strong interest in dulles are attempting to take that provision out. that would be the amendment that is germane that has a lot of conversation slots are always important as different communities, cities across the country are affected by flights to reagan national. >> all right senator, what's today? wednesday. we'll see. it's not -- it's not done until it's done, but good to have you on and detail all the nuances for us senator, thanks. >> always good to talk to a person who is well-traveled in kansas, joe, thank you >> you remember that huh? just thinking about that. >> i do. >> i love it hayes and russell and lawrence, i can reel them off. i know kansas well. >> you're good -- get you to wichita, air capital of the

world, aviation front and center. >> one place not been because it's not on the way to boulder. you're watching "squawk box" on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin. an unexpected net loss first quarter. revenue up 15% year over year. the white house says president biden will travel to wisconsin today to announce a plan for microsoft to build a $3.3 billion high-tech facility, or center. that facility built on the same land. >> yep. >> like the -- this is where taiwan's foxconn once planned to build a $10 billion factory. in the criminal racketeering trial bill wang. set to begin today here in manh manhattan. jury selection, and prosecution

say the implosion caused more than $100 billion in overall lawsuits intel saying the biden administration has licences for exports of certain consumer-related items to a customer in china. the commerce department said yesterday it was revoking licences related to huawei intel says it now sees revenue for the current quarter below the mid point of the previously forecast range but expects to remain within that range the stock today, though, down by close to 2%. meantime a quick look at futures ahead of the market open still about an hour and a half to go. dow opened off now 11 points s s s&p 500 off about ten points and 4. 8 two year 4.841 close. get to dom looking at the pre-market movers, good morning, andrew, becky and joe.

caught up on the latest earnings news and in anticipation of one coming up. shares of affirm up 4.5% now pre-market around 200,000 shares trading volume the digital commerce platform maybe best known for namesake buy now pay later installment purchase system. reporting a smaller per share loss than consensus estimates. better than expected revenues and a more bullish quarter expected and shares up about 4% as a result now. shares of trip adviser, tanking. down by roughly 15.5%. around 80,000 shares volume. generally a good earnings report profits came in better than estimates. revenues in line with expectations, but more than any of that, the company also said that its special committee evaluating potential for trip advisor to be an acquisition target determined that a transaction is not in the best interests of shareholders at this time. that bit of news sending shares

lower. rallied quite a bit. now sharply lower from those highs. keep an eye on that and, of course, becky, on the watch what's happening with fox and see those in the next maybe half hour or so sends things back over to you. >> thanks, dom see you in a bit. when we come back, professor and podcaster arthur brooks joins us to talk autbo the ub unrest on campuses across the nation we'll be right back.

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let's talk markets right now joining us for that is emily roland co-chief investment strategist at john hancock injechlt management emily, you say that the markets right now are kind of like a teenager why do you say that? you want to explain? >> sure. we've been in a period economic data for april are actually coming in pretty disappointing last week consumer confidence, two-year low both ism, manufacturing and services pmi slipping into contraction. of course, the april jobs report missed expectations by a mile, but risk assets were loving it because we're back in this bad news is good news feedback move where you're seeing excitement that maybe expectations that the fed can cut are being revised.

so we're seeing risk assets take off. bitcoin surging. unprofitables, growth-type companies leading. chinese equities moving in parabolic fashion. feels like a little bit of a phase. a moody teenager would go through. kind of erratic, can be unpredictable, can be strange, but you know they end at some point. we're suggesting maybe to ride the phase out and continue to lean into higher-quality companies trading at reasonable valuations. >> what happens in that space? i was going to say do you think markets come back on >> i think there's only so long companies can operate at higher rates. right? eventually something is likely to crack or likely to see unemployment go up and experience economic contraction. that type of environment we suggest fading riskier assets still owning equities but those higher-quality stocks with better ability to navigate that

cycle. we still like technology stocks. you like quality, great balance sheets, lots of cash, great return mega cap poster child for that of course, a little valuation issue. those stocks over bought doing bulk of heavy lifting from an earnings standpoint, but look at something like the s&p 500 growth index it's trading at a 45% premium to its 20-year average. you want to balance that with stocks actually on sale. looking at things like mid-cap stocks particularly industrials that are benefiting from all of the fiscal spending going on stan did a great job talking about this on your show yesterday. follow where that deficit spending is going. infrastructure projecting in the united states. seeing a booming environment in the midwest right now and looking at mid-cap stocks the best way to play that given their overweight to the industrial sector. >> thanks for coming in, emily. >> thank you. from tesla shares falling on

news of the doj probe. more on that story after the break. plus hear from the ceo of ev maker rivian, president emeritus arthur brooks and lyft's david risher stay tuned you're watching "squawk box" on cnbc. at pgim, finding opportunity in fixed income today, helps secure tomorrow. our time-tested fixed income suite, backed by over 145 years of risk experience, helps investors meet their goals. pgim investments. shaping tomorrow today.

welcome back to "squawk box. we have news just crossing the justice department investigating whether tesla committed securities or wire fraud by misleading consumers and investors over its driving capabilities according to a new reuters report just out citing three people familiar with the probe testing autopilots and self-driving assists with things like steering and lane changes, but not fully autonomous watching shares of tesla fall on

back of that report. about 3.5% phil lebeau is onset your thoughts on this report >> not surprising. i look at this report, and we've known the dodge was looking into autopilot and full self-driving, and i think it makes all the sense in the world that washington would come back and say, you have made comments, elon musk, or tesla, that essentially give the impression that it's 100% hands-free. the fine print, we've said this and everybody has said this. they are nowhere close to 100% autonomous vehicle technology, and they will say that in their fine print apparently what the dodj is saying, sure, in the fine print. but did you sell it? did you tell customers you basically will have autonomous driving? >> two questions how much of this is about what the company and musk has told investors about the prospects of self-driving and the speed with

which it may be available? >> correct. >> versus, what was told to customers. which is to say there's certain teslas you can buy with the whole self-driving capabilities and people weretying that and putting up an extra fee in part because of the expectation -- didn't say have it today if you buy it now you get in and just update the software and you'll have it >> counterargument from tesla is that we have not told people they are buying autonomous vehicle. not told people there is a certain date when it will be autonomous we have told them we believe it will be autonomous at some point in the future. that's where tesla will come down obviously with the doj. >> how much engineers saying five years off. >> sure. >> and a comment from musk saying, a year can off >> sure that's a big part of it.

>> the difference in the debate. >> the puffery clause. something basically yew allowed to do some of this if they outlaw puffery i have to quit no one can run for president on either side. i mean, puffery, it's kind of a fact of life. >> we're going to see this over the next 10 to 15 years. who knows if elon musk and tesla, if he's still running l tesla 10 to 15 years from now. he is pushing self-driving there has to be a decision about moral choices. not happening next year, i'm not saying that. down the road, at some point, autonomous driving, full self-driving will lower number of deaths and accidents anywhere there will be some and we have to make a decision, are we okay with a computer that hits somebody in an intersection versus you or i where we sigh

that's human error >> i'd asked others about this are you of the view the new full self-driving, they call it, at tesla. >> yes. >> is, which is now powered by a.i. in a different way than some of the machine learning and other programs used in the past, is it major step change in how close we are to actually seeing this work in practice >> i think it is especially for everybody i talked with, experienced it and a used it on a regular basis having said that, look at adam jonas' note. all say the same thing close in, where you're driving in neighborhoods or in the city and so forth, you still need to take control of the car. that's -- that final 5% is going to take so long to capture and figure out so when somebody says, well, there's going to be a robotaxi, pick me up at my house take me here, drop me out.

that's not happening soon. >> we did see with cruze, in san francisco. >> we did see that in a geo fence theory not widespread at least not soon. what people expect. >> phil, don't go anywhere have you back in a little bit. after this break, highlights from a conversation i had yesterday with ceo alex carp and former chairman of the joint chief of staffs general mark milley including whether technology would lower the cost of war in the future. >> does it ultimately cost more or less. >> cost more on less i actually think it will cost less take the money -- >> a lot more of that on the other side of this break it -- stay tuned you're watching "squawk box" and this is cnbc.

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welcome back to "squawk box. in washington, d.c. yesterday at the ash carter exchange on international security, i monitored a conference on intelligence in warfare and asked general mark milley about the politics of war and the protests we're now seeing across college campuses. >> israel has a right to defend itself they were the one attacked brutally on the 7th of october. 1,200 people were slaughtered. not just killed in the conduct of war they will slaughtered. beheaded, butchered.

raped in front of their husbands stuff that was not even a hair's breath removed from what the nazis did. apply that to the united states, 50,000 to 100,000 people dead in a morning. can you imagine what we would do i mean, seriously. so israel has every right to defend itself. war is a horrible thing. i had a lot of years in combat, shot at, blown at, whole nine yards. right? a horrible, brutal vicious thing, and unfortunately because the character of war is going to be in dense, urban areas, that the very conduct of war is going to have very high levels of collateral damage. there's almost no way around it, but if there's any morality at all you need to get into it, achieve your political objectives, get it done. get it done fast and get it over with. >> just as a side account. the most jarring piece of it talked how lethal war in the

future will be with artificial intelligence possibly more lethal and given the expectation more combat will happen in cities, in very dense areas. that the kind of war we see in the next 25, 30, 50 years, that the kind of damage and potentially collateral damage. you think technology could prevent that, but the shifts in that. >> civilian. >> part of what he was talking about, an idea politically you have a very short amount of time if there's attack on one end, to retaliate. because the moral pressures and political pressures become almost too great to bear. and so -- from a political standpoint, if you're going to have a political cal ckey y -- l queue lis, go out and do it quickly. >> looked totally indiscriminate the other hand heard every possible thing that can be done,

evacuation-wise, israel's done a great, great, gone to great, great lengths to try to minimize civilian casualties. which is true? depends what you're reading and watching. >> maybe somewhere in the middle show you this, because i think it speaks where we are in society today. ceo never one to hold back calling out corporate america for its silence following hamas's attack on israel october 7th. what he had to say yesterday in washington about the protests across college campuses, and potentially hiring from them as well. >> of course, i've been calling out the thin, corrosive, cancerous ideology that addresses below judaism, christianity, jewish that is now affecting our universities, because it's dangerous to america. it is dangerous to allow discrimination on our klcollege campuses simply because the

people are being desiscriminated against, those ho view themselves progressive need to stand up it's divided mostly people in the corporate case people are like, are you sure you should say that and are like, you know, supportive my intellectual circles, yeah a lot of people on the israel issue uncomfortable with my position and i sometimes fight with them. but i'll tell you. it's important for building a software company that you say in public what you say in private we kind of just think these things that are happening across college campuses especially are, like, a side show. no they are the show. because if we lose the intellectual debate you will not be able to deploy any army in the west ever. and that that's, of course, there are adversary es talk about why there's no tech scene in china or russia no tech scene.

no software companies. bring the intellectual battle to them you want a tech seem to support for gdp you need a free, open, democratic curious environment keep the equity that you build like, we're just not showing up for that debate, and that is the debate where we win or lose. >> it is a fascinating conversation eric schmitt part of that panel. and a director part of that panel. quite something to see them all debate the future of war, and technology's impact on it. >> just his take on these things. >> oh -- always makes you think it over. >> and wrapped in a -- emphasis on aggressive. goes on to sound like a -- a huge -- >> but you know where his vote is so you can -- >> i don't know what his vote is and don't really care, but --

what he's a biden guy >> i don't think he's a trump guy. anyway -- >> well, that can be -- do one thing or the other right? >> phil lebeau is still here with us onset with a special guest joining us at this point, too. >> bring in r.j. of scaringe ceo of rivian. wider than expected loss stock under pressure today and a lot of people looking for your guidance rest of this year one relief affirms your guidance in terms of production and targets out there. the other hand people are looking at the ev market and not sure to expect what your take >> yeah. i mean, there's an ongoing discussion just around how rapidly the entirety of the automobile industry will electrify. our view and conviction is very much over time we'll see the entirety of -- of, you know, of

our vehicle population move to electric propulsion. this is going to take time and key for that is giving customers lots of choices. >> speaking of choices, you've got the r2, your next model which is a crossover utility vehicle, or small suv. however you want to phrase that. you're going to build that in illinois, have lower capex this year in part because you're not gelding in georgia are you confident you can begin production by end of next yearin first quarter of '26 >> we couldn't be more excited about it exactly what we're talking about in terms of creating customer choice our decision to launch the r2 out of our normal illinois facility, as you said, only to drive capital efficiently and more importantly remove risk from the launch and allow us to start deliveries first half of 2026 and incredibly confident in

the product and confident in the execution of that launch. >> r.j., a lot of people say we're entering an ev winter, if you will, and it will be tougher to sell evs to people. especially here in the united states what do you hear from most of your customers coming out of internal combustion vehicle primarily or coming for evs >> significant customers have never owned and ev before. first ev experience is through the lens of rivian that's really our goal our goal is to take the more than 90% of customers who been buying electric vehicles today, give them an awesome choice, something that's exciting, desirable and a great buy for the money and pull them out of their internal combustion vehicle to the ev. done that with the r2.

in california, the best selling vehicle over $70,000. >> agreed compatible with the charging network and use the supercharger network at some point. are you worried about elon musk basically gutting the supercharger division at tesla >> you know, we're really excited about the way we've approached charging with our partnership with tesla we have a great tactical relationship with the teams at tesla. those that used it on the tesla notework very easy, plug in the charge, all the payments, back end is our software team worked on with tesla's software team and that's still very robust. in addition to that we're also building our own charging network. this summer opening it up to non-rivian customers as well, and the key for charging networks is up time. few networks have high up time

tesla's is 99%-ish net time. ours about the time. 98% net time incredibly high performing networks, both of them as we continue to build our network in addition to what you see tuesdesla, important in pulg others into ev vehicles. >> seen reports about potential partnership between rivian and apple, of ourse, killed its ow car ambitions but may still have other ambitions, and people speculating maybe a partnership with you could lead to something. can you speak to what's going on >> we don't comment on speculation or rumors. on these types of things i would say, as company we've got a history of great partnerships largest, amazon, that partnership, starting to see manifest on roads every day with our delivery vehicles that we build for them. >> one slightly different way to ask this, then

you have been very outspoken about having your own operating system for the rivian. that's clear spent a lot of money and time building that. would you ever share any of that space with potential partner, or not? >> yeah. it is a great question we've approached the entirety of the electric the architecture andlet network architecture, software that sits on top of them, from the view of building that ourselves it's all very integrated, core technology the foundation of a lot of what we built as a company. this certainly has value outside of, beyond just our own products, and there are lots of different ways we could leverage that, but we don't have anything to comment on today, but it's certainly something we recognize of significant value. >> all right r.j. thanks for joining us r.j. scaringe, ceo of rivian company reporting q1 results

lots of news. >> a lot of news this morning. coming up, aei, arthur brooks joins us in this season of unrest. making an urgent plea to freedom of speech and respect for diversity of thought on u.s. college campuses "squawk box" will be right back.

our next guest has ideas for

calming unrest on college campuses this graduation season. bring in arthur brooks, president emeritus of the american enterprise institute. professor at harvard and columnist for the "atlantic. i don't really understand a lot of what's happening. i think there's percentages of why a lot of students are involved some of them aren't students, obviously. you've tried, for happiness -- i think some people that age are just happy when they're demonstrating. maybe that -- to me looks like they're very unhappy with living in this country and what we stand for. >> yeah. i do a lot of work at harvard with the alumni and the alumni, they love their reunions usually bring me in, the happiness professor. talk to them what they want to hear about, love and happiness befuddled what's going on at campus my university and every university i was here, we liked each other. disagreed. loved our professors challenged to learn new things truth is, the difference between what our alumni experienced and

a lot of young people experience today on campus is more ac activism, let intellectual inquiry. activism is more and more prevalent. too prevalent. go to college to learn things and be challenged not to be told one side is right the other evil that's the biggest problem balance is all wrong and led to a lot of the unrest you see today and upheaval. >> activism for the sake of activism some of it. >> yeah. >> one week this cause next week at a demonstration for that cause and the past five, six, seven years seen how much -- wall street. occupy wall street their fault. now it's israel's fault. >> activism has a place in american life today. i'm not against activism per se. when it becomes too prominent in american life, you see -- look, i talk to ceos all the time and

figuring out 3% of professional activists blowing up their slack channels calling them all sorts of name. also unproductive employees and can do something in the private sector fire them. that's what they're starting to figure out political parties completely hijacked by 5% activists look, the rest of us are the 90% who don't hate each other. >> no. i'm in the 5%. >> the 5% ex-accent trists -- >> weren't alolowed to have a conservative come to commencements or speak at colleges demonstrations someone slightest bit right of center. but now, all ideas aired pro-hamas ideals are fair game

>> figuring out on campuses for whatever reasons that free ideas and free thought, the interchange, the competition of ideas is fundamental to a free society. however it comes about, take it, quite frankly. i'm doing commencement exercises at providence college in a couple of weeks. >> lucky there is one. a commencement. >> well, also a catholic school with a lot less of activism going on but you find peemople e a lot more tolerant. i'll take it different views is what college is all about not to be safe intellectually unsafe. the most thrilling of all. >> and last week, a book out called "the age of grievance." the idea that the whole country and maybe world is in a state of grievance. there's more grievance than ever beforish,e and the grievance feeds upon itself. which is to say social media and

different channels we have people always trying to one-up each other on grievances thinking, how can people get to a place they want to one-up each other on happiness or sanc satisfaction, or is there more to grieve about? >> are you kiding me the world's better than its ever been lots of things to worry about and improve. truth is our standard of listening is rising. ow health getting better environment at least in the united states getting cleaner. more freedom than we've ever had. >> level of grievances happening on campus, happening everywhere. by the way, i think part is media and social media because people see distinctions between where they are and where they, where they want to be. you know, in a way they didn't before. >> right. >> you could argue maybe that's good transparent. see where you can go

also reads envy. >> envy and the culture today you have people expressing vict. that's malignant narcissism. taken over by narcissists and sociopathic leadership that celebrates vick testimonihood as if it was virtuous having people live in grievance. >> how does it end >> took a long time for colleges to staff their entire administration with this echo chamber of left and -- america-hating individuals. >> for sure. the greatest thing about this is that america always wins out, because people get -- sick of it you're going to see. things are absolutely going to get better and already are starting to turn, because we're

having this conversation we're not afraid to have this conversation on national television we would be if this actually were getting stronger and stronger this would be taboo, as a subject. on the contrary we're laughing at it at this point. it's going to get better. >> one of your first books i read talk about actual percentages's probably still there. 60% of people not of this mind. >> it is of course. you know -- >> $1 a page and charged for the index. >> you read that. >> says he did charged me for that, too it was like -- >> this is maddening maddening. >> i didn't get paid for the -- >> can you read it again >> the truth is we don't hate each other in this country i do believe just as was in the '70s, proceeded to the '70s after bitter polarization in the late '60s, early '70s, got through to a better time leaders actually bring us

together people get sick of it and they say, "new. ceos need to say enough with activism and the culture stand up for our parties and only way to do that, stand up for our own side, whatever that side is. >> people elect the members of the -- where are those communities? what -- are they thinking? >> what they're thinking, are these leaders actually good for doing the things i need in my particular district. of course, they're not thinking what is this actually doing to the -- >> and -- give that to you you know you're looking at me. i know you're looking at me. i mean -- >> pretty good presence.numbered on this show. >> only so many. >> it's true look all of us look at the political environment we're in today. people on my side.

always a center right guy. capitalism, three cheers american defense, you know, traditional life absolutely the new -- i believe in this people trying to radicalize the right are hurting america. we need to talk about that why? people on the left are not my enemies, challenge my point of view but i want to live in a country where there's a free exchange of ideas. means mime grateful for those who disagree with me. >> i love you. >> i bring people together. >> thanks. >> oh, yeah. >> my favorite show. >> it's the only place you can really come versus the -- >> i love this this is a real discussion every single day ip know what's going on in america. >> thank you, arthur. >> love that happy event thank you. when we come back, lyft ceo david risher joins us after this -- join us first after

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with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley welcome back to "squawk box. the news this morning. talk about it. justice department s.e.c. investigating whether tesla and securities wire fraud of misleading consumers with self-driving capabilities according to a new report this

morning from reuters cited three people familiar with the probe former s.e.c. chair jay clayton joins us on the "squawk" news line he was s.e.c. chair brought a case against elon musk jay, what do you make of this news and what do you think the prospect of charges, either criminally or civilly being brought? >> good morning. the news doesn't surprise me, and i think there were rumors about this a little over a year ago. and it doesn't surprise me, because of, you know, the attention that is paid to this company. the change in technology and practical application, that autonomous driving would bring, and, frankly, the fact that many analysts touted this as a comparative advantage for tesla. >> sort of two questions that the report raises. one, about comments and that

elon musk has made to investors about the timeline with which we'd see full self-driving and the other to consumer es some of whom paid for vehicles that have, quote/unquote, full self-driving capabilities, or at least a system in place so that when it's ready they can drive it and use it. of course, there were expectations that would be available already years ago. so how you think that either criminal prosecutor or the s.e.c. might think about those two things >> there are a couple of things here first, i'm just starting this story. the mail wire fraud statutes cited by the doj, and the securities claims about the s.e.c. they have many of the same elements, andrew and i think the people understand that the wire fraud statute is remarkably broad, and the securities law, i would say, is a subset of that

activity, if you want to be, to what i would say is high-level about this and involves an attempt to fraud intention many fraud of somebody is a decisions that has to be proven what i'll note not here is there's a lot of atmospherics around this that we all know call into question when and if self-driving would actually be realized, including regulation, insurance, all sorts of factors that are beyond the control of a company so, this is not as complicated -- or not as simple as a simple statement and reliance -- >> but intent is very interesting. having covered elon musk for a very long time, he does have expectations, very high expectations, and i think genuinely does think that things may come quicker than they sometimes do, on one end, and yet on the other, i imagine, inside of tesla, there's debate happening, email traffic with one engineer saying, you know,

it's going to take us a decade, we're never going to be able to do what we're telling folks to do, and others saying that maybe we can, and sort of does that -- would that create a legal liability? >> andrew, you've used the perfect word there expectations expectations can differ, and we have seen through time, particularly in technology, where expectations have been way too rosy, and we've also seen circumstances where expectations have been way too pessimistic. i go back to the deal -- the days of doing deals in the mobile phone area where the projections about what we'd be able to uese our mobile phone fo were grossly understated, and then you have things like, could we ever, and right in the musk area, could we ever do what he's done with spacex could we ever have commercially viable astronaut launches?

there was great pessimism that the u.s. could never do that then there were times when expectations proved to be wrong. it's one of the amazing things about tech investing is that reality and expectations are often out of whack >> jay, we appreciate you coming in and helping us think through some of this i'm sure we'll be talking a lot more about it with you very soon >> thanks. inuseof ft up, the c oly jos

i welcome back to "squawk box. shares of ride-hailing platform lyft jumping in the premarket after the company guided to higher than expected gross bookings joining us right now is lyft's ceo. we spoke with derek earlier about their earnings clearly, you've beat here, and the stock is up 4 or 5%, and it sounds like your expectations are improving. what are you seeing? >> customer obsession drives profitable growth. that's been our strategy for the last year since i took the job, and i love what i'm seeing we're up 23% in rides, 21% in bookings, and it's because it turns out when you do really good work, when you get pricing right, when you get etas, pickup times fast, customers take you more and more, and it's wonderful to see riders and drivers on the platform getting out and about, living their best

lives. >> how much, though, is this about pricing? there are clearly markets where i think that you have been become much more competitive on price. >> you know, about a year ago, when i joined, we really decided to price competitively, and we haven't made a real change to that strategy in the last year, so i don't think our incremental growth, let's say, you know, we've gotten more new riders than we have had in six quarters, i don't think that's really about pricing i think it's about all of the above. price right, pay right, pick people up fast, innovate, women plus connect and all sorts of things, i'm proud of what the team has done. we've done a lot of things right, and i think people are responding for that reason >> you said all sorts of other things i want to talk about other sorts of things, because there are a number of partnerships, including ones that you have with chase and jpmorgan and some others that may be leading to some of the increased pickup in terms of folks using the product. how much do you ascribe to thos promotion or promotional partnerships >> so, it's about 20%.

20% of our ride buying comes from partnerships, but i wouldn't just say they're promotional. they're meant to be deep partnerships we're one of the very few companies that delta allows to earn sky miles on their, you know, when you take a lyft you mentioned chase. chase sapphire allows us to accumulate 10x points. i don't want to sound too huckstery, but these are partnerships with really important companies that take customer obsession really seriously, and by partnering with them, we do great things together >> do you have any concern about what you're seeing in the marketplace at all about strength of the consumer trading up, trading down around the country? are there pockets where you're seeing any weakness, and frankly, on the other end, are there pockets where you see strength this is not just lyft-specific, but what you're seeing in terms of economic impact >> this is so interesting. let me give you a couple of data points we ask our drivers every quarter, how do you see sort of the economy? we don't ask -- are things

getting better or worse? we haven't seen any change in there, and we've got a million and a half drivers on the platform, 1.25 million drivers on the platform, so that gives us a sense that they don't see any particular weakness. when we look within our segments, commute is actually up, which sort of makes sense because a lot of people are still going back to work party time is up party time is after 5:00 on friday and saturday nights, up 26% instead of 20% or 22%, our overall growth rate. when we look at modes, wait and save, our economy option, is actually flat, and the premium modes are actually up a little bit. our premium modes are growing faster than standard so, you know, it's so interesting for all of the discussion about, you know, economic concerns, at least in the sort of $20 to $30 kind of average ride, we're actually really not seeing that in fact, if anything, we're seeing little indications of the opposite, which i know is maybe unusual, not what people expect,

but it's what we see >> david, i want to thank you for joining us congratulations on the earnings this morning look forward to seeing you again very soon, hopefully in-person >> ooi'd love that. thank you so much. it's been a lot of news to digest today as the program has rolled on. the dow looks like it would open down about 54 points, the nasdaq off about 98 points, the s&p off about 20 points. right now, the ten-year note at about 4.494% the two-year at 4.843% we had the earnings from lyft on one end, both lyft and uber saying consumers, they think, are in better shape than we expect, but we saw disney. uber did fall on the fact of those writedowns, some of their business, but now we're looking at this big tesla story and what is going to happen legally with that company and one of the richest men in the world we will see. >> it's wednesday.

>> what? >> hump day. >> won't be look >> what's that >> thursday's the best day that's tomorrow. >> thursday is the best day. we are going to pass it off to our good friends on "squawk on the street." i think that david faber is still out in l.a. at the milken conference >> he forgot his ties. >> join us tomorrow. "squawk on the street" begins right now. ♪ good wea good wednesday morning little equity pressure premarket as some well-known names guide lower. shopify, uber, intel, twilio oil, below $77 for a moment. our road map begins with tesla, though, under the microscope today as federal prosecutors reportedly examining whether the company committed securities or wire fraud also ahead, we got some growth stocks that are moving in differ