Transcripts For CNBC Squawk Alley 20240622

Welcome to squawk alley. The founder of aol ventures is with us. John, its good to have you back. Jon fortt is out today but Kayla Tausche is here. The dow is down about triple digits. A few select companies are driving whatever gains we have in the nasdaq composite this year. Six companies, amazon, google, apple and gillian account for more than half of the 64 billion in value added to the nasdaq composite in 2015. The concentrated gain in a few stocks is boosting concerns of dwindling leadership, a market top, some say. The nasdaq itself is up about 7 so far this year. And i think if you take out amazon and google, john, even the s p is negative year to date. People say classic sign of an aging bull market. Is that legit . Certainly a ton of consolidation and thats reason for concern in a business that is concerned. Youd rather have more diversification of broadening. Im not sure if its a causation or a warning sign. Im not ready to show impending doom yet. Jim cramer, of course, coining the acronym f. A. N. G. , were going to add another a so its faang. Theres so much value concentrated in a few other names. It signals to him theres nothing else people want to buy. Is that something thats viewed as a compelling story for those companies, or is it sell signals for the rest of the market . I think you have a number of things going on. You have the consolidation, the advanced decline going into the negative on nasdaq. You have on the s p as many stocks as hitting 52week highs as 52week lows so there is legitimate cause for concern. I think you have as much opportunity for the stocks to drop as you do for a broadening of the market that will lift everything. It is a signal of what people are willing to pay for growth of any kind. Its been a rough take today. Amazon is up 3 , right . And people have charted we know they overtook walmart. People have charted walmarts earnings versus amazons earnings and, i mean, its a compelling chart, im sure. And facebook is announcing on wednesday and im very bullish on that. We have instagram monetizing for the first time. We have the buy button. Weve got mobile and video which google and youtube showed were explosive last quarter, so im expecting good things from facebook. When people try to compare the market were in right now and the market we were in 15 years ago, they say its an entirely different story because the rally that weve seen recently is based on earnings. Carl just mentioned lack thereof for amazon. Facebook does have real earnings. Google did have real earnings. Netflix also had some real earnings, too. Im just wondering where you would see a breakdown if there were going to be a breakdown. Well, the other thing thats important here is youve got 19 tech ipos this year versus 41 in the same time period last year, so youve got far fewer companies and as a result youre likely to see higher consolidation so, again, these are yellow flashing warning signs. I dont think theyre red amber alerts at this point. Next up, some news that we got out late friday. Mobile Payments Company square filing confidentially for ipo. Its run by jack dorsey who is interim ceo at twitter. Dorsey, of course, cant run two publicly traded companies especially one that is going public. So it looks like his days back at twitter could be numbered. We reported on friday afternoon that goldman sachs, according to my sources, will be leading this ipo. Bloomberg was the first to report they had put a confidential filing in place. Jon, im wondering about your views on this situation. Of course the question when dorsey returned to twitter was is he the ceo . Does he have the right of first refusal for this job . And if not, who will it be . What does it mean now that square is going public . This is as definitive a statement as you can make that says that jack dorsey will not be the fulltime twitter ceo. He owns 26. 2 largest shareholder in square. They are talking about going public by the end of the year. Theres no way hes going to give up those reins and send those signals. As a result the board and Search Committee said we will only have a fulltime ceo of twitter. You can pretty much say hes not going to be the fulltime ceo of twitter. Does this force the companys hand to Say Something or address this on tuesday when reports earnings . You would think. Theyve been reticent to declare tifl, definitively state this and i think theyre trying to leave the door slightly, slightly ajar in case something changes. So i wouldnt expect there would be any more declarative than to date. Well look for guidance on growth. Stocks down 3 in tandem with other names including names in the social space. Why do you think growth has been challenging . Do you think its about the experience . Is there something you can draw on . I think its confusing. I think this has been terrific for the digital elite. Highfrequency users, media. Influential users which is terrific. I think the mass market has had trouble adopting it. Its a new modality that people need to learn and thats really leveled off their growth. Theyre a 30 billion publicly traded company. Its not like theyve been doing poorly. To get to that next level of growth, theyre going to have to simplify the product. Can you envision a product that is easier to use but sort of maintains the efficiency of the product that you and i use right now . I can. Really . I think the new ceo, a little bit more Strategic Vision and some product leadership, importantly, they have a terrific brand. Every Television Show including this one we talk about that all the time. Promotes twitter, promotes facebook. There arent that many Internet Companies that have a brand as powerful, ubiquitous and global. That gives them a tremendous amount of opportunity. Finally this morning, big interview on squawk box talking about the future of television this morning and some pretty interesting comments to say about the future of one brand in particular, that is espn. Take a listen. I think eventually espn becomes a business that is sold directly to the consumer. Where theres an engagement that espn will know who their consumers are, well use that information to customize their product, allow personalization to essentially engage in a much more effective way and also to offer advertisers more value as well. Fascinating. Talked a lot about how chinas consumers are responding to the turmoil in their capital markets, but the idea you have this incredible property, right, and youre looking down the road. Even said looking ten years down the road is almost impossible right now. It has to be five years or less. What would you do with this property, you saw the way distribution was changing. I think hes 100 right. Any company that isnt going directly i would be concerned about. The internet is the great flattener, and it eliminates the middleman. You think about what email did to the u. S. Postal service as the middleman, what its done to travel agents as a middle person, middleman. The same thing is happening to espn and cable companies. The pipes got fat enough where at first you disrupted the written word and now its about disrupting the flow of video. Totally. Whats interesting is when the sports leagues, particularly the top four, wake up and say were going to go direct to consumer. Does that leave espn in the middle again . Have some level of original programming but they do rely on a lot of the sports leagues for content. I think thats going to be very interesting. Of course scant on the details of exactly what that would look like when eventually it does come around. If youre a disfribt tributor d that make you salivate that espn could be in one of your skinny bundles or you could sell it to your customer, or does that make you fearful he would sell it directly over an existing espn platform . In the immediate to long term it makes me fearful. The problem with bundling, its not a perfect economy. The great thing about going direct and segmenting the properties is where supply meets demand. You dont need a bundle to offset some highvalue property and low value properties. I get concerned if im the middleman. Were you suggesting that the nfl would say we dont need you anymore . Can it get that targeted . The nfl network has been on the air and espn is still a powerhouse. I think the nfl has the nfl network. Theyve recently put games on it. The nba has the nba network. They traditionally used them as a stalking horse but i think over time theyre going to do the same thing that espn is doing now, we should go more direct to consumer. He also talked about the Value Proposition of espn and not necessarily in the personalities. Do you agree with that . Weve lost three big personalities. You have to sort of have to agree with it if you think theyre going to be a player in the near term. I do. If im them i focus on shoulder programming, the programming thats ancillary to the rights programming. Really establish my brand in that so im not as reliant on the big sports leagues for my content going forward. And the lurking threat of google, yahoo facebook. These are media, new media, old media all converging, digital, video. Flush with cash. Ample distribution. I would be shocked if they didnt. They being . The new Media Companies did not got a regular season package . Yes. Or at least a game to start Something Like that . They will be in the bidding process. What happens if the yahoo game that its broadcasting in the fall ends up being a dud . Is there any possibility that happens . No. And we see its not ready i dont think so. Theyre a global company. They know how to do content. Its a even if its not the greatest game in the world its compelling content, the first of its kind, a lot of fanfare around it. They will declare victory no matter what happens. Thats great. You covered a lot of ground, jon. Come back soon. Jon brod. A major deal in the pharma space, teva in a deal a little over 40 billion. Meg terrell is live with more. Meg . Reporter kayla, the deal comes out to 40. 5 billion and the split of cash and stock. 6. 5 billion in teva stock giving allergan a stake. It can drop its bid for mylan and will consider its stake in mylan trying to figure out what to do to that. Folks are respond to go this positively for teva and allergen. Teva, it makes it one of the top ten global makers. For allergen, the chance to pay down its debt and consider other deals. Folks are speculating a lot about what it could look to buy next, big potential buys in the works there. For mylan, folks not responding as favorably, down 10 on that teva bid. They say it has a knock for making wealth destroying decisions. This puts a lot of pressure to do that deal with perrigo. Their stock up about 4 . Were in an environment in health care where it appears consolidation gee begets consolidation. Allergans ceo saying consolidation among pharmacies went into the rationale for doing this deal. And now youre seeing allergan might be able to turn around and do more deals and mylan may be forced to buy. Were in the middle of the swarm. It seems we have a new deal every single day, meg. We appreciate you keeping it straight for all of us. Meg tirrell at 30 rock. We want to check in on the broader markets. The dow, s p and nasdaq are trading lower for the fifth day in a row. That hasnt happened since january. The dow is down by 104 points. Off the lows. The s p down by a third of a percent. The nasdaq down by about half of a percent. The nasdaq still up about 7 this year. Still up about 1 for july. Thats a different story for the dow and the s p. Grubhub, the first mover advantage for that company could be eroding that stock down 10 on that down grade and shares of box rallying, overweight at pac crest citing additions and new partnerships as reasons for its upgreat. That stock up 2. 25 this morning. When we come back as you probably know by now china got crushed overnight posting its worst selloff in almost a decade. What it means for Companies Like alibaba. Going forward with facebook and twit they are week. What to watch and there are crowd funding campaigns for movies to potato salad. A closer look at a few Success Stories when squawk alley continues. Or building the best houses in town. Or becoming the next highlyunlikely dotcom superstar. And us, well be right there with you, helping with the questions you need answered to get your brand new business started. Were legalzoom and weve already partnered with over a million new Business Owners to do just that. Check us out today to see how you can become one of them. Legalzoom. Legal help is here. A top trade overnight for china, shanghai down, posting their worst day in eight years. Thats impacted a lot of stocks across the board in europe and here in the u. S. Including alibaba which is now trading lower by nearly 3 . An analyst with web bush, gil, youre saying you think a company like alibaba, its business model, is insulated from the volatility were seeing. Why do you think that . When we talk about china decelerating, were talking about the overall night and infrastructure. One of the important things happening in the chinese economy is that the economy is shifting towards consumption. And that is where alibabas positioned. Alibaba is the one absorbing all of that growth. In china, remember, theyre not going to be able to scale up malls fast enough. Consumers are going straight to online commerce, ecommerce, and alibaba has overwhelming share. So even though the overall economy is slowing, Investment Infrastructure is slowing, growth in consumption is spectacular and alibaba is the greatest beneficiary for that. This certainly, gil, seems to be the longterm trend for the middle class for ecommerce in china. You have 90 million individual investors that are borrowing money to invest in the stock market, sometimes putting their houses up as collateral. Are you saying you think the 90 people in the market are mutually exclusive from the 350 Million People buying on al alibaba . Unlike americans most of our stock market is Retail Investors and 401 k s and long Term Investment planning that impacts future earnings growth, it appears to me from what ive been able to observe the chinese Retail Investors are the more speculative investor. They speculate on real estate and now on the stock market. Theyll speculate on something else. Theyre more like their play money as opposed to longTerm Investment and income money. Though they obviously will be impacted, its not as broad as when we have a stock market correction, everyones 401 k goes down. Yeah, weve within down that road. Thats for sure. For a long time when alibaba went public, the discussion was about their aspirations coming to this country and further into the west. Do you believe that collision course or wouldbe collision course with amazon is a nobrainer, that amazon can roll right over them . For alibaba thats the longterm plan. Were very american and western centric, so thats what we care about. From their perspective, they think in terms of decades and more. And so for them, the onslaught on the western markets is probably three to five years away. Theyre far more focused on developing a domestic economy, cross border into china, crossrd boer throughout china. They have a growing presence in russia and india that are promising. At some point they will want as their growth decelerates in china, five or ten years from now and in other emerging markets they may decide to he can panned inexpand into the wee investments in zulilly. Those are little longTerm Investments as opposed to a fullon with amazon and ebay. At the same time amazon and ebay are having no success in china in their domestic market and less success than alibaba in some of those emerging markets such as russia and india. Alibaba is doing fine and has a thought out longterm plan for how to grow. And alibaba even strongarmed ebay out of the region several years ago. They tried to operate there and weve seen what happened. Gil, im just wondering, were looking at alibaba shares down. J. D. Shares down. Across the board. Is that just the psychology that the china fallout could hit those companies, or do you think that is investors saying i dont want to be in those names if there is some sort of mention on the Earnings Call about nearterm volatility . Why are we seeing that trade today . There has to be some impact. If the world is worries about growth in china. The chinese stocks will be impacted first. As you talked about in your programming, a slowdown in china impacts the entire world. What im trying to point out the Chinese Consumer appears to still be doing fine which means that this is more after psychological effect, affecting all chinese stock as opposed to what alibaba should be worried about or is likely to mention on their conference call. When you have bridgewater saying theres no safe place to invest in china, its going to get some attention. Gil luria, we appreciate your time. Up next, the apple watch available outside the apple store. Can a business have a mind . A subconscious. A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . A new sea chance to tryew look. Something different. This summer, challenge your preconceptions and experience a cadillac for yourself. Take advantage of our summer offers. Lease select cts models in stock the longest, for around 399 per month. It appears china will continue to try to prop up its ailing stock market. The dow jones is saying country will continue the Market Measures its been implementing in recent days saying it will increase its buying of stocks through a Company Owned by China Securities regulator to the degree that these stocks are even open for trade. Stocks fell 8 . We talk about the breadth of the markets, decliners 75 to 1 gainer on the market over there. The apple watch is coming to best buy starting august 7. Both the apple watch and apple watch sports models will be sold at 300 best buy storts making it the first nonapple retailer to sell the watch. Apple and best buy are both trading in negative territory, though. We know what the tape has seen today. Well see if they can replicate that. Setting it up, as we know, a customer process. Interesting to see if best buy can deliver on that front. Yes, but 300 best buy stores by the holidays, apple has 453 stores. You cant deny that is a big channel for apple to enter. Stocks did fall for a fifth straight session down to a twoweek low now. Reaction to the selloff in china overadd showing any data that indicated an improvement. Shares of ubs fell in swiss trading. Ryanair a 25 jump in quarterly profit but disappointed by not boosting guidance for the full year. Philips a bright spot. The Dutch Electronics Company Rising on better than expected Second Quarter numbers as the weaker euro boosted sales. Well see what our session looks like once europe gets put to bed. When we come back, this chart tells you all you need to know aboutface book and twitter lately. Facebook seeing a nice gain in the past three months while twitters down over 30 . Will we see more of the same with both Companies Reporting late they are week . Well talk about that in a moment. [ male announcer ] some come here to build something smarter. Some come here to build something stronger. Others come to build something faster. Something safer. Something greener. Something the whole world can share. People come to boeing to do many different things. But its always about the very thing we do best. Heart healths important. But its always about the very thing we do best. So you may. Take an omega3 supplement. But its the ingredients inside that really matter for heart health. New bayer pro ultra omega3 has two times the concentration of epa and dha as the leading omega3 supplement. New bayer pro ultra omega3. New bayer pro ultra omega3. No students ever been the king of the campus on day one. But youre armed with a roomy new jansport backpack, a powerful new dell 2in1 laptop, and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Hello, everyone. Im sue herera. Here is your cnbc news update. Turkey has called for a nato meeting tomorrow to discuss threats to its security after a suicide bombing in turkey last week. In oslo native secretarygeneral says that he welcomes turkeys contribution in fighting isis militants. Iraqi forces have recaptured Anbar University from isis following fierce battles. The university is located just three miles from the provincial capital. The militantheld city of ramadi. Japanese automaker mitsubishi says it will end production at its auto plant in illinois due to dwindling output. The president of mitsubishi making the announcement in tokyo today. Shares rose 5 on that news. And dozens of people gathering yesterday for a vigil to honor the two victims of last weeks deadly theater shooting in lafayette, louisiana. Those attending the Church Service in honor of the victims. Lets get back to squawk alley. Thank you, sue. It is a busy week for earnings. 153 s p components reporting just this week. And among them twitter reporting tomorrow afternoon followed by facebook on wednesday. Lately these two companies have been moving in opposite directions to say the least. Julia boorstin, what should we expect . Reporter facebook with advertising revenue and its family of apps with advertising potential have sent that stock soaring to around an alltime high which is in contrast with twitter which has been struggling with stagnating user growth and Big Questions about its direction. Twitter, whose shares are down about 7. 5 the past 12 months, is expected to meet lower guidance for slowing revenue growth. But the real concern is that its user numbers will continue to stagnate which is sure to be blamed on recently departed ceo. The company is in an awkward transition lacking new vision as the Search Committee looks for a new ceo and while twitter has talked about a big product makeover called project lightning which is designed to help ad users, that wont be rolled out until the fall. Now its a very different story. First facebook whose shares are up about 28 in the past 12 months has nearly five times twitters user base and the stock has been bolstered on confidence earnings and revenue will continue to grow albeit at a slower rate. In facebooks success has to a certain extent come at the expense of twitter since facebook has invested heavily in two areas where twitter used to dominate, sharing news and following public figures to keep them within its ecosystem. They say they see growing traction but one thing to keep in mind as we head into earnings over the next two days, it is an expectations game and since sentiment is so negative, there is a chance of an upside surprise. Carl, back over to you. It will be an interesting tuesday and wednesday night, julia. Thank you very much. Julia boorstin. Sticking with social, facebook could give google some competition with that rapid increase. Joins us today an internet analyst over at piper. Gene, good morning. Good morning. Your universe is one of the few areas thats working. So what is the pressure like on you or anybody, any of your colleagues on the street to say these valuations are getting lofty enough, were out . The pressure is always there. From our take its part of the fundamentals and whats the probability the fundamentals can exceed expectations. Were always vigilant of that pressure but at the end of the day the good news, the reason the stocks have done well is that theyve got some openended opportunities. Facebook is probably one of the most unique stories in that sense. Interesting to see some of the headlines that came out in terms of the number of views per user on youtube. What should we know about the Facebook Youtube google war . At the end of the day theyre going for video dollars. Google does about 8 billion views on youtube and facebook has done from a billion to 4 billion. Thats the struggle between advertisers is to those dollars and ultimately the nice news aboutface book coming from almost no video and in googles case youtube is a huge property. One of the things importantly about this story is that the sense is that facebook is slowly grabbing attention away from google and video in particular, but on the last Earnings Call, google mentioned the views on youtube adibi tded a twoyear h. This mystery on video between youtube and google thickens but at the end of the day both of them are really well positioned for whats a secular growth theme. Theres been this contentious debate over what constitutes a view. Facebook had said a threesecond view was something advertisers should pay for. They changed that last month and said advertisers would only be charged after a viewer watched a video for ten seconds. Twitter makes you watch the whole thing. Im wondering where the debate will come down and whether youll see any impact on facebooks video ad revenue based on that change. I think the debate still needs to be worked out. Tidese er advertisers will be the ones to work through that. I dont know where theyll consolida consolidate. There is a lot of debate about that. If you look at the importance here to facebook, they have a powerful way of measuring the social graph on top of video and theyve really done a nice job of the news feed. I think of it in the context of i dont know how you define the view but theres more ad dollars theyll shift over to facebook. Gene, were already preparing for Republican Debate here at cnbc. Well be entering a big ad cycle when it comes to the election. Is that going to be material and if so who is best exposed to it . Facebooks best positioned to capitalize on it. I suspect when they get their next Earnings Call this week that theyll get some questions about that impact. If you look back a few years ago at the last political election, they talk about that being a few percent increase into the numbers. It was a december quarter or the september quarter. I think that is something thats going to benefit facebook. Unfortunately, its more after once in every four years type of a benefit. Yes. Thats plenty for a lot a people. Amazon bucking the trend today up another 1. 5 . Are you shaking your head at some of these levels now and the way its behaving . Well, its kind of back to where we started. In the sense theres such big opportunities ahead of them. Were not shaking our heads. I think one of the most important parts of the last Earnings Call was that they accelerated unigrowth so it went from 20 in the march quarter to 22 . Thats the first time they accelerated unit growth. On top of improving margins its understandable this surpasses walmart and traditional retailers are probably the places where amazon is going to steal market cap in the future. Do you think, gene, that the buying activity in some of these names would be less dramatic if there were other things, other stories were working within the nasdaq . An outsized gains for some of the names because there havent been others working elsewhere . I think so. That plays into it. When you look at the opportunity for upside, i thinkuniquely positioned. I dont think this group would be performing as well as it is. Gene, its good to see you again. Well see what the week turns out to be like. Gene munster talking social names today over at piper. A quick look at the markets. The dow is down 131. Session lows down 169. Were not that far off. The market didnt like the european close or the headlines saying that chinas top regulators plan to increase state buying of stocks. Of course were watching those 200day moving averages. The dow sitting below its 200 day. The s p dipping briefly below it. Fresh off that massive earnings report, as we just said, amazon now has its sights set on the grocery business. Well get more on that in a moment. First, rick santelli, what are you watching today . Reporter exactly what youre talking about right now. So whats the news of the day . China is going to keep throwing everything including the kitchen sink at their stock market to stabilize it, to turn it back to the upside. This will all be about fundamentals versus funds meddling after the break. Hi my name is tom. Im raph. My name is anne. Im one of the real live attorneys you can talk to through legalzoom. Dont let unanswered legal questions hold you up, because were here, were here, and weve got your back. Legalzoom. Legal help is here. Ive got two reasons to take thats why i take meta. Meta is clinically proven to help lower cholesterol. Try meta today. And for a tasty heart healthy snack, try a meta health bar. No students ever been the king of the campus on day one. But youre armed with a roomy new jansport backpack, a powerful new dell 2in1 laptop, and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. Coming up at the top of the hour, stocks sinking again and are now in the midst of the first fiveday selloff in six months. So is even more pain ahead for investors . One of our traders sells almost all of the stocks in his portfolio. Hell tell us why hes heading for the exits. Looking at the Health Care Sector with a Top Health Care fund manager who is up 14 so far this year. Kayla, well see you in about 20 minutes or so. In case you missed it, according to a report from the Silicon Valley business journal, amazon is developing a drivethrough grocery store. Apparently youll be able to order items online, schedule a pickup at a dedicated location. Amazon is expected to Start Testing this concept in Silicon Valley. The stock has been on the rise up another 1. 5 so far today. We saw the experiment with lockers where you order something to a locker, not necessarily panning out the way the company hoped. Sourcing regular people to deliver. Theres no Distribution Channel theyre not willing to try. Lets get to the cme group and check in with rick santelli. Get the santelli exchange. Rick . Reporter markets are tough to understand sometimes. As i read most of the blogs and news of the day regarding china, most of the news is framed as follows. Will china be successful in stabilizing the market . They worry that the chinese will stop throwing some of this help, the life preservers in the market so the dynamic becomes about the helping, about the extra funds, about stabilization, about putting the market to where people are happiest and where investors hire the better. I look at it differently. When it comes to markets, to truly have a stable market and to have a market that is going to reflect fundamentals at some point even if post crisis we get off the track a bit and try to build confidence with various initiatives, in the end the confidence is because the markets ultimately are supposed to work as investors are used to them working. If the price of the shanghai composite or any market is just something written down by a central planner and ultimately put north on the big board in some process by throwing mopey money at it, is that the same . The fundamentals giving way to funds meddling is not a good dynamic. I think that latter part is where most of the market unnerving is coming from regarding equities. Consider this. In this country and many countries, we know that the Political Class likes to view a solutional problem as throwing money at a problem. But when you get beyond election cycles, what many voters realize throwing money at something isnt the same as fixing it. With equity markets in particular the issue looms much larger because only two outcomes can happen. If the chinese are successful, there was already a trust issue with the measurements trying to measure, trying to quantify the economy. Post this, if they dont succeed, the outcomes are obvious. In the end i think that theres still an effect where investors need to put money somewhere. The problem is those somewheres are real shrinking island and an awful lot of feet trying to remain dry. Kayla, back to you. And we havent seen the end of the story for sure. Rick santelli, our thanks to you. What happens once that initial round is over . The ceo of indygogo will join us with a closer look up next on squawk alley. No students ever done the full hand raise in ap calc. But your stellar notebook gives you the gumption to reach for the sky. Thats that new gear feeling. All hp ink, buy one get one 50 off. Office depot officemax. Gear up for school. Gear up for great. Welcome back to squawk alley. Some of the big tech movers. Its the social media stocks feeling some of the pain both facebook and twitter are down 2 and 3 so far. You can see in trade both Companies Set to report quarterly results. One bright spot here is amazon. Com you can see up by 1. 5 . The Company Still riding high as the market cap. Goldman sachs raised the stock with a buy rating. 6 a share. It used to be 570. A rough day, i want to call your attention to fitbit, down by 7 in trading so far. The Company Still worth about 8. 7 billion. Still resint hot ipo taking it on the chin so far in trade today, kayla. Its been rare to see a down day. First get on a crowdfunding site. Indy iegogo says the new startu incubator. Slava rubin is here. Its great to see you. Thanks for having me. Why is this happening now, do you think . I think more and more vcs are trying to mitigate risk. They want to see that the data is being proven out, will it work, will it not work . Prove it to me. The companies are going to indiegogo, proving the markets, proving who is going to buy and how and then all after sudden the vcs, wow. Im investing. There are some companies that go on a crowdfunding site and raise way more than they intended to. That would still be a signal of popularity. Whats keeping vcs from piling morme money on companies that dont need it . Some companies have receives multiple rounds of funding after the campaign. 15 million round and then a 40 million round. Were actually now seeing 13 investments have happened the first half of this year. Thats every two weeks. Just a whole different way of thinking about it. Its really speeding up. Is this what you had in mind when you built this thing . Defensemen k youre seeing the derivative effects. Because theres the validation of the product, because theres the validation of who will buy it and the market these other players out there that are looking at similar data, oh, im starting to get more transparency into my answers. Its not like youre saying we built this for the little guy. Youre not going to put the cap on the amount of money you could raise, right . Or the players involved. We want it open to everybody whether its a small, brandnew independent, or trying to do r d on a product which we have ge and other companies doing that sort of validation. It should be open to everybody and then it will benefit everybody. People ask will it be indiegogo or vcs that win . I think its complementary. The more the vcs will be able to do good work and everybody will win together. Misfit is the name that stands out. Its become a household name in the wearable space. Is there a company thats done this thats gone wrong . There are firsttime entrepreneurs on indiegogo and they have to learn and as part of the vcs investing they need to provide more than just capital. Sometimes theyre hoping to provide diskri bugs, experience and other things. This is becoming a global phenomenon. You have sleep aids getting 7 million just a few weeks ago or you have gbo out of massachusetts in america getting well over 30 million or you have another company out of finland. You have all of the world looking at indiegogo for this data. Is it like the new focus group to figure out whether theres a market for your product . I think indiegogo is for entrepreneurs. It used to be that you had to have your own agent for youtube and now on youtube if the data shows that youre popping, people are flocking to you. The same thing on indiegogo, if the dollars are going up its proving that its working, the vcs and investors are flocking. Its not your fathers potato salad anymore. Its going to get really exciting with some of the equity crowdfunding stuff out soon. The crazy times we live in. Slava, come back soon. A big investment in a Fantasy Sports site bringing it into the billiondollar club. Well talk about that. The dow is down 120. The gumption to reach for the sky. Thats that new gear feeling. All hp ink, buy one get one 50 off. Office depot officemax. Gear up for school. Gear up for great. To build something smarter. Some come here to build something stronger. Others come to build something faster. Something safer. Something greener. Something the whole world can share. People come to boeing to do many different things. But its always about the very thing we do best. But its always about the very thing we do best. When youre not confident your companys data is secure, the possibility of a breach can quickly become the only thing you think about. Thats where at t can help. At at t we monitor our Network Traffic so we can see things others cant. Mitigating risks across your business. Leaving you free to focus on what matters most. Nbut your stellar notebook full hangives youn ap calc. The gumption to reach for the sky. Thats that new gear feeling. All hp ink, buy one get one 50 off. Office depot officemax. Gear up for school. Gear up for great. A potential vulnerability in 95 of Google Android phones. Josh lipton has more on that from san francisco. Hey, josh. Reporter well, carl, we saw the headlines this morning, mobile Security Experts saying they had detected this hole in googles mobile android operating system, one that would let hackers break into someones phone and take over just by knowing the number. It could have had real effects, allowing people to copy the data, delete the data, take over the microphone or camera. With this response to cnbc saying the security of Android Users is extremely important to us. And so we responded quickly and patches have already been provided to partners that can be applied to any device. Well send you any more headlines as they come. Back to you. Well keep our eye on that. Thank you very much, josh. Fantasy site draft kings is giving another 300 million round of funding, the latest led by 150 million from 21st century fox, a sports unit, and brings the valuation to 1. 2 billion. But it comes with strings. Draft kings will spent 250 million on advertising at fox over the next three years. The company has an exclusive advertising deal with espn for 250 million. Baseball is a High Frequency game so it tends to do well on daily fantasy, but theres nothing that keeps with the envelonfl. So were heading right into that season. We also ask every time we talk about daily Fantasy Sports, im marveling theres a market for that. We had nigel giving away 2 billion this year. They tend to give away most of the money that comes in. He said 90 . This is going to be an interesting season to see if this unicorn valuation is deserved. Theres a lot of money chasing this space, too. From big players. Meantime, continue to seek extended weakness and negative breadth. People tweeting charts of the number of s p names that are obviously relative to their recent highs and how thats matched up with prior downturns. Not a lot is encouraging, kayla. No. 50 new s p 500 52week lows. Only one new high and that is allergan. Thats special. So thats a special situation there. And then in terms of earnings, tomorrow things really get off to the races with ubs, gillian, panera, twitter and ford. And then facebook, mastercard, marriott, p g later in the week, a lot to chew on. A lot for you to chew on. Im off. The judge is back in session. Back to headquarters and the half. All right, carl, thank you very much. Welcome to the halftime show. Joe teranova, josh brown, pete najari najarian. Our game plan looks like this. Health check, the top pharma fund manager on the latest wheeling and dealing and what to expect from the flood of earnings this week. Stock shakeup, why our defending champ blew up his portfolio again. What hes buying and selling. We do begin with the