Nearly 14 billion both stocks on the move. Ross, what do you make of this there was a swerve over the last two days about them buying slack. Which is a sass based business in the tech world. They surprised everybody and buy a physical retail e. I think about the store they opened up in seattle as a test maybe they learned something there and thought this could be a trojan horse, not just b about food, but about physical location if you think about how much data they have on all of us and what we purchase and they put a ring around the dma or the local piece and start filling those stores with more than just food, it becomes really, really interesting and scary. Not only retarials, but is this a shot across the bough of every company not named amazon, alphabet, apple, et cetera you know where im going with that well, look, apple is one of the most successful retarials of all time people forget that but the apple stores i think per swear foot, theres nothing else like it, including anything like whole foods, so, i think amazon has been pushing into physical retail for a while now in some cases, theyre thinki i about t like a showroom for the brand. In other case, theyre thinking about it like distribution to rosss point amazons been trying to do groceries for ten years. Thats not really a secret, but yeah, this is shocking to everybody. I think what ends up happening is we start to think about high, maybe the market isnt so stupid maybe some of the high multiples that people are paying for Technology Companies that have enormous cash positions and the guts to do new things and innovative things and spend on infrastructure, maybe those high multiples made more sense than it lookeded at the time. Only cheap they focus on the top line for 20 years. We have to think about maybe thats a model that other companies are going to start to adopt successfully those numbers, if you could put those back the 15. 3 billion increase in market cap for amazon today. More than theyre paying in this deal it gives you an indication of how the market views this transaction. Yeah and jeff mackie pointed out they lost 25 billion in market cap did those supermarkets that compete in the space from sprouts to krogers to supervalue target they all lost 25 billion collectively in market cap meanwhile, amazon as you say, up over 15 billion in market cap as theyre spending 13 billion. I thought this was a great deal. I still believe this is a great deal i talked about the lodgistics and layout that they want to build out and who has it already. The things that they dont have already. Target has it. Walmart has it a couple of other retailers has it, ross, but what im looking at, i thought this was a brilliant play if you just did the math, 450 store, 250 bucks a square foot, figure 40 to 50,000, they paid between 5 and 6 billion, they would have built cinder block warehouses for that. Now, they have whole foods in Upper Echelon neighborhoods, lets think about where whole feoods is. Where those buildings are located right now. And you know who else is getting hit right now, big pharmaceutical drug companies. You look at cvs and wall greens, theres a reason theyre down today. Amazon just basically put a Distribution Center in upper income neighborhoods to be able to distribute as well anything that they want people should really be concerned. Just real quick, you mentioned, such a great example. Heres a company killing itself to deliver like mid single digits, you know, profit bability, earnings grous growth, give or take stock down 28 the last six months, now, its a pe of 11 yielding 4 on a dividend that used ed to be b a small dividen. Now, its like the only reason to own the name. So, like why should an amazon or any other Technology Company be striving to deliver profitability . Investors dont want it. Nobody wants it. If youre sitting, if youre jeff bezos today sitting there at amazon and you just saw a 14 billion purchase yield a billion dollar increase in value, youre lick iing your chops i think this is the first of many what other areas, i mean, courtny aloludes to whether it trugs or consumer staple, protector and gambles in the world shaking in their boots today. Where else should we be looking . Theyve done a fair bit of this they bought diapers. Zappos those are billion dollar deals. Switch. This is 14 billion. You think about industries that can circle around a consumer and what they do every day and theyve made a nice foray into media quietly i wouldnt be surprised you know were going to start to see a run on big acquisitions in the media space. Potentially. Are cars off limit theyre doing big deals, josh, because they have to if youre dwoigoing to move theo have to take big bets. Its complimentary to what theyve been trying to do and at the same time, they had to do something. Another billion dollar deal with groceries, you can order anything online. No problem fresh is tougher we saw like fresh direct and you know, some of these Companies Struggle because theyre trying to, so amazon says the only reason people are still visiting physical Grocery Stores is is because theyre driving by it or want the produce todays deal jim is the perfect answer to the question of why people have been buying this socalled fang stocks even at the elevated levels amazon gives you another smack in the face today. Obviously, this is a turn, right, going into bricks and mortar is something they havent really done in 20 years since they had the book Distribution Centers. Im man of a certain age i remember when automateded groceries came out in the late 90s ross, you might be thats the one im thinking of. That was billions of o dollars that was spent two things one, it was 20 years ago two, it was not amazon youre doubting jeffs ability no, im saying if anyone can do this, amazon can. But we have to be b aware that todays one day rope that this is worth 15 billi 15 billion moy now, from here, where do you go. Actually overdone in the costcos, the targets, is it going im not froigoing to rush in supervalue, kroger, target, costco, Dollar General, walmart. Sprout, weiss, among the names on your screen here. And these are like 1 to 2 profitability. Every name down quite substantially. Some are saying its too much, judge, as far as the sell off. I dont know if anybody on the des b k is saying that, but i put my toe in the water. I think costco is is too much kroger i bought that because just in the last 30 or so, they came flying in buying calls in kro r kroger, in a number of these stocks because of what was going on and i dont think its a good thing i dont think anyone is thinking groceries are bad whats going to happen is youre going to see margins squeeze theyre going to automate and get rid of workers theyre going to spend a loft money to keep pace with arguably the most aggressive, the most capable competitor they could possibly, like who would you least rather face in any business you follow this argument, which is the right one to make in a couple of year, dont you get to a point where im being pha see shouse, one company left in the world, and before get there, you have some governmental issues. Is it even worth considering whether a topping bid is out there that somebody looks at this and saying we cant let this happen . Like private ek quity. No, another publicly traded company. Nobody can get they wont be able to not that anybody wants to get in a bid l war with jeff been pushing for sale for mobts. Then you look at whats happening coming out of germany and overseas and europe. Theyre going to start to rethink. We want to compete exactly do they want to compete in the United States right now. Trader joes. Its a different one, but all these German Companies that come in i think two brothers one owns trader joes and the other owns what about the bigger point to be made the one being caused by the apples of the world and its not just an amazon story you think about all these Companies Looking to disrupt traditional businesses, whether its the automotive or apple poaching a couple of people from sony big deal that sort of went unnoticed, an inside move. 100 they bought two of the best Television Producers in the world today. Left sony sony hires tony, whos a terrific operating executive his first month on the job, he loses because his job to go in and restructure that place get costs out. Really fine tune it. Get it running better. Apple has no such leash on it. Right . It goes and probably pays a lot of money for these two producers who have done breaking bad and Better Call Saul this is not just a toe in the water. Theyre not going there to do one show theyve got Ben Silverman doing a show for them already, so theyre making a move and its a rounding error just as bezos spending 4 million on content the thing that stands out to me b about this deal that they just did is its a little bit outside, whole noods is a little bit outside on a brand perspective from amazon in this regard amazon has bought discount businesses diapers, zappos, to which is on the side these are things that you get great value for. Great value, convenience whole foods is a highend retailer for food. Highend products, very expensive. Thats outside of what they do yet stock just explodes. Because its complimentary. You can buy cheerios cant buy them at whole foods. Now, if i can get my Fresh Produce at whole foods in one of these highend neighborhoods, couple that with what amazon has done from a product perspective i think they have regular cheerios at whole foods. I dont know. Not the honey nut though. Regular cheerios, couple that with my fresh fruit and vegetables, what he did was he created a combination thats additive versus just replacing something. I think its incredible what theyre doing. How big is the Entertainment Industry you dont even need share. If you could have 3 market share and be sobig you have more revenue than you know what to do with, Grocery Stores, 800 billion industry you dont need, amazon doesnt need 20 share to be profitable. This is on the same day citi puts out a note that says apple for athena health, never say never. So everybody is thinking about disruptive places to look. Thats a good mostly fa lly fang names are ones looking to do this. Amazon is a very Different Company than say facebook. Much more diversified. A lot of cash. A lot of liquidity that it can get when ever i wantt wants. One thing is infrastructure. Could they by fedex . Probably the large deliverer of products in the country. Own your own air force i mean, right . How about if all of these Companies Want to get into autonomous driving cars and build cars, why not just build a car man fufacturers then youve tensions and unions. Still, in all of these thought experiments like athena and apple. Apple is pretty public about wanting to own the operating for autos and maybe some component of it. I dont think they want to start manufacturing autos. I dont know if they do or dont. Googles approach with waymo. Google wants to be the software and possibly an uber competitor. I think google, like the all the money being made in phones is not making the phone thats fox con stuff its operating system and services that get sold through it i think theyre thinking that one. The drum beat of apple tesla will start again chlgt it has to now. Thats the logical brand matchup elon is thevisionary you think apple does something as heres a question elon has to be a successor. How does the stock react if elon musk is running apple it goes through the roof, right . Hes a visionary the shorts will say now, we have a bigger target plays by his own rules. There was a lot of unusual activity in this name, just very, very quick, back in april. Yep. Pete, whole foods pete did it on the show talked about the unusual activity lets listen what he said april. Thats a pretty violent move to the yup side, so its interest tog see today ooefb more interesting somebody came out there, november 34 calls. 5,000 of those were bought paid a big preem yul . 40 very aggressive buying its interesting im in this one. Probably will be for probably one to two months. I like whats happening. Its really in play. Youre talking abougust. They bought november. But also august a couple of days either proceeding that or right after that november 34 neuberger beermen was talkin about you have to get a strategic in there or sell the company. Januaa was also purshing for c e change it was out there and people were say i think it might happen. They ended up being right and got rewarded for it. Yep take a quick break talk about snap after the break. Okay well do that after a short break. Nothing. Wel meac lco bk. Deartheres no other way to say this. Its over. Ive found a permanent escape from monotony. Together, we are perfectly balanced. Our senses awake. Our hearts racing as one. I know this is sudden, but they say. If you love something set it free. See you around, giulia i love how usaa gives me the and the security just like the marines did. At one point, i did change to a Different Company with car insurance, and i was not happy with the customer service. We have switched back over and we feel like were back home now. The process through usaa is so effortless, that you feel like youre a part of the family. I love that i can pass the membership to my children, and that they can be protected. Were the williams family, and were usaa members for life. Call usaa today to talk about your insurance needs. Become a villain again. Mmm. [ minion babble ] [ minions cheering ] [ minions sighing ] [ minions cheering ] [ minions booing ] okay minions, were going back to villainy. [ minions shouting ] so bad so good that im so bad. [ honking ] so, youre villains now . [ nervous laughter ] i mean, hello sweetie. Despicable me 3. Rated pg. [ mhow was work . G ] well, actually. Youre fired [ screaming ] lucy and i were invited to not work at the a. V. L. Anymore. No minions were going back to villainy. [ cheering ] so, youre villains now . Oh no no. No. No. No. No. [ laughing ] [ evil chuckles ] yow yes. Despicable me 3. Rated pg. Second worst perform er on the dow today. Matthew boss is the analyst. He joins us today for aour call of the day squl look, we upgraded nike four years ago to an overweight stocks outperformed the by 40 over that time but a number of things have changed. Were e seeing a move more from performance to lifestyle offering now Going Forward, this north american marketplace is just really in a consolidation mode we think nike may be the one that faces the most disruption year to date, weve had 4,000 store closures and everybody talks about the Department Stores and whos exposed the most from a brandened perspective. Our math is that 8 to 9 of those closures have nike product in it. A lot of changes underway. A big announcement yesterday from the company, but those are changes that are going to take time and nike is is going to have a lot of turbulence over this period. You mention in your note, recent field work. Done by either you or your team over there or maybe collective ly what is that refer to . So, if you parse into the north american marketplace, nikes deaccelerated 900 basis points over the last 1200 months versus the last four years within that, the shortfall has been wholesale so its foot locker, dicks sporting goods, the Department Store channel. And thats where when weve been in the field, youre seeing a much more promotional stance in fact, nike moved off of map pricing and so in the Department Store, youre seeing 25 off buy one get one 50 off. The norm is now that you can get nike on discount, under armour the needing to follow suit, so youre seeing a much more promotional landscape. Thats a big change in sector versus what weve seen in the past and thats to me what ties to more competition and that competition is coming into the space. Because fashion is a bigger part of it and so are price points versus in the past, where it was simply performance, nike could outinnovate, outmuscle its competition. I think its going to be harder for them to do in the next couple of years. Its jim. Im a small shareholder in nike. By saying small, i want to add to it. What youre doing today is helping me not that thats why youre doing it. But heres the question. This definitely not. Carry on this seems to be this might be something they get through in a short period of time there are some positives here. They have an internet press ens thats growing so that the bricks and mortar exposure is less china and asia still a relati relatively part of the overall picture. Any thoughts there no, so, you bring up a great point. The one of the things that does concern us is that international has expanded 15 on average for the past three years. Going forward they cannot afford a hiccup in china or europe, which has expanded extremely again, mid teens growth in those regions. To me, the north american marketplace will be in disruption over a multiyear period this focus on experience and service and they think they can cut their lead times in half this is whats needed. The larger will survive. Nike will be a survivor. Theyre a good company well run i think its going to be longer than you think the north american marketplace this will be a name that will be back to at some point but i dont know that its goinggoing to be as near term. What about under armour i know youve spoke p about it already. Is there a halo effect in any meaningful way to the warriors win ining the nba title and cury and the curry force . I think the bigger effect is that when nike has a cold, hard for anybody in this space to be 100 he wialthy. So i think what under armour is finding is theyre needing to react. Theyre needing to look at the pricing and promotions thats happening. Urn armor would say that apparel picked up from a promotional standpoint in the fourth quarter. Those are things that under armour has to follow youre nod the leader in the space and that dwen is really whats happening here from a larger picture perspective, which then. Matt a carry over effect to the foot lockers of the world its a very high degree of mix with mike. When nike is suffering through this period of softer sales, its harder for same store sales. What i hear you say is that north america is much worse than you, yourself, expected it to be at this point. We put a piece out, we talked about a 25 reduction in Square Footage that we thought needed to happen. With the Retail Real Estate picture, when you dig deeper into that, the Department Stores need to take a 50 cut to the square foonl picture and from a branded perspective, nike has the most exposure to that. So, its really taking the analysis that we had done more from the brick and mortar retailer and now tieing it to the brands and thats where we came out with nike having the most exposure. Nike is the one. Theyre in the sporting, the Department Stores, theyre everywhere appreciate the time you guys own this name nobodys happy. If it sneaks below, i could stom it. This is a longterm play you know over the longterm like he admitted, nikes going to come over it its just a matter of the time is there a case to be made for selling the stock today . I dont think so. If youre selling it, i dont think this goes below 48 just put the money somewhere else if youre a trader, definitely now, its below 51. Its just a killer buy i dont think it stops on a dime earnings are coming up i think its next week i dont feel like being a hero and guessing whether those earnings are going to be good or bad. Its the 29. I actually wholly disagree with the premise that its more important to be concerned with the distribution of the products versus the demand. Demand for the products is incredible thats not changed and you know, in a lot of way sales growth is slowing ebbs and flows this has been going on for 25 years. No one should be surprised they have strong and weak quarters. Bigger picture i think from nikes perspective, theyve invested a lot in e commerce a lot in market an online. They were doing that before a lot of other brands, theyll figure out how to get the product to customers, whether its through a Department Store or not i think within a couple of year, its not really going b to be relevant what will be is do people want nike its been a bad bet to say they havent. Thats why i like you lets go to commercial. Shares of snap have fallen. Maybe you guys could do a little snap chat. Fallen over 40 from their all time high. Drexel hamilton though says this ipo 2. 0, thats what they say this is. Your chance to buy the dip brian white is the analyst behind the call, joins us live from the New York Stock Exchange welcome. Hi. Just going to be frank how can you urge anybody to buy this stock ahead of the lock up expiration is it a reasonable moresponsibl move the stock is down 42 from its peek its back at its ipo price weve seen a lot of stocks weve covered over recent years. They start to have the lock up expectation. Down 42 priced 17, i want to own it here lock up or no, i want to own it at this price. How much is due to fundamental expiration is the Company Operating well enough to get to a level you think it can theres no guidance given. Even on the call, there was no guidance given Going Forward weve seen a will the of innovatilot of innovation, we just saw a couple of big announcements mcdonalds is using snappily kagss to try to recruit 250,000 workers over the summer and pepsi has snap codes theyre using for a promotion. You said its going to grow 100 , but youre talking about a tiny base because they just started the ad biz inside of 18 months ago theyre not going to grow 100 ferris in engagement metrics and definitely not in user growth. At the epd of the day, isnt that the more important thing to investors thinking thabt as you know, an investment as opposed to oh, analyst got the earnings too low this quarter like the way people think about the stock is about growth of users, right well, its a very good point. And when you look at snap, we have to remember, theyre very different from the other mobile apps and social messaging a piis out there. They tap into millennials. Thats a majority of their users and what advertisers are trying to reach and theyre very, very difficult to reach, so when mcdonalds does this initiative, that really speaks to they want to reach these people and cant find them. Thats whats very powerful about this the other thing is the ar tlend, its opening up. Youre going to see it on the iphone 8 the ios 11 a couple of weeks ago. They are a very early pioneer in this a rrkr trend an were goin see more thanks for being here we appreciate it what do you make of this call . You know, i was a bull. Id say im still a bull, but if youd watched a bullfight, they come out and put lances into the bulls neck, so ive got a few of f those in my neck. That suggests youre a very, very shortterm bull no, in fact, in fact, im a banglade one which may be about to fall im in it for the long run i think i was surprised, frankly, stunned to some degree they missed the first quarter. Shouldnt miss the first quarter. Have a repeat of that in talking to advertisers, in looking at some of the metrics on app downloads, which have not been good this quarter and in talking to some in the sales community, i think the its a rough quarter. I dont know if theyre going to miss or make i think tas rough quarter. Im in it for the long haul because even if they go back and look at facebook, go back and look at the history of facebook, it came out at 38, few months later, it was at 18. Took three quarters a year later, it was at 23. Ki kids under 15, theyre on musically. Theyre going live and doing chat on 20 different apps. Absolutely. I think musically is an Interesting Company that wont figure out how to monotize because music in itself, we could sit here and talk about spoti fy and pandora and they just got a big partner very big partner in sirius and in turn, liberty and live nation potentially. But theyre di veerting attention. Snap chat has ageneration it embraced it starts to look more like twitter, which is reason bable to a big group, not facebook sized group. This is not a one or two or three quarter. Im in it. Probably higher. I might buy more they are having operational angst right now. They are not operating the way facebook operates nor should they be expected to. If youre in this thing for a shortterm trade, id probably get out. If you believe this is meaningful to a generation, we dont talk thats its two businesses its a Communications Business and a Media Business as the only millennial sitting up here. Youre not, i am. Both of us. As the millennial, if you have a dollar as an advertiser, one dollar to spend, you are fot knot get ago return on that by giving it to snap chat you can give it to facebook as an advertiser, if you have a dollar, especially with zuckerberg with his eyes squarely on this company at this point in time. He can mimic it, repeat it and give me two year, snap chat is irrelevant just going to sit around salad and cramer, hes here what did he say put them both op both. On the key, major key were you listening. I was listening to it from the car. You have a longterm snap bull ill be it waivering he will be a longterm holder. The shares that come off lock up i find that to be a debilitating thing. Its in two tehran chs. Im not talking about a trazer im talking as an op ratder. I look at this business. There was a report that kim out saying only 7 marketers which is bad news on one hand and i look at the first i mean, i would have come up, i know a lot of companies that are making good content for snap kids love snap my problem is this class of stock, they can report whatever they want. I was with judge leo the other day, the chief justice we were talking about this notion you can do whatever you want, judge glasscock, do whatever you want if you dont want to make money, they cannot make money they have every right no not do, do they have a right to go and buy a beer company its pretty antishareholder this drex e el hamilton call that snap doubles or goes to 30 bucks, snap ipo 2. 0 is is here going to give you an idea see theres a guy at this table. Theres a guy at this table who after this conversation, if you recall, list p b, we want you to play a role of o senior statesman. And i will buy the stock should i pay you now . You think im kidding is. Very vocal about that yes, thank you. Management is key i said this couple of times ago when i was here. I said its all about execution. Now, people were racing out of facebook in the first year. Remember they were racing now, what mark had done and i said this three, four months ago, he had put an amazing team in place evan, give evan credit this guy has created something that even has Mark Zuckerberg scared agreed. Give him that. He is a product whiz. Hes come up with something unique hes hired people of his generation to create a problem that really resognates with people that is vastly different than i got to go smooz ad buyer, operate this thing with real mettics, hold people accountable. Doesnt mean they have to while theyre try iing to figur out an ad model, theres a company reaching millennial, has one of the best ad models you could imagine. Its called live nation and why are we wasting our time with a company at the stage where it may or may not figure it out when you have companies that have facebook, has already figured it out, is doing incredibly well. And has the ability to disrupt everything snap chat is doing. Facebook is a Different Company. Look, there were a lot of people trashing yahoo when i was there about they dont talk to, only old people use yahoo . The truth was when you looked at the metrics in 2012, as many people of a millennial generation were on facebook. There were more millennials on facebook, but they dont engage with facebook at the time amount of time that millennials do on snap chat. So all im saying is if snap chat can find its operating leverage, give it some time. Nobody killed mark zucker werg in the first year. The stock came down. I like this for what it means to this this generation i see the comparison from a Traders Point of view to snap thats the same. I think the user growth at facebook b still accelerated during that 18 month, 12 month period well see what the user numbers are. Thats great point that said, twitter is a Different Company. Its a one Dimensional Company it really is its done one thing. They got all excited, released a tweak to the interface yesterday which was meaningless and users killed them on it. Its a one Dimensional Company its a stream and thats all theyre trying get snap chat is a multidimensional xaep its a camera company. But its a Communications Device and its a immediate can area company. Its true messenger. In fewer would play the eric schmidt role, it would happen. Without it, i dont want to touch it they have to get their narrative right. Theyre finding their legs i think the team did a great job getting this thing public. And i think evan i like him, too evan is a great product guy well give jeff lucas some time. Theyve announced a couple of ad things let people use credit cards to buy ad, they bought placed, an analytics company. But on the reverse side, i hear things coming out of there, a lot of executives leaving, a lot of turnover. They got the find their metrics they can operate the business with and thats true for everyone from uber to even facebook and facebook has a bench and a set of people that are just world class operators and ill keep going back to that for the next year or two if you have me on again because that is how companys succeed or fail. I got to wrap first couple of year, insta dpram, it was about showing people how cool you are. Its great right now, zuckerberg has it so we want more followers he has people doing with this. With d. J. Would have said this, too, but hes so snap worthy can i put you on my story absolutely. Better get rid of that one of my fathesources. With this 7, with the 7 listen tim, because i know the stock goes down every day. Thats a guy from amen, brother, i like that guy with this and with with the resolution camera, with we are now in a mode of fashion show. Everybody wants, no t just about showing people youre cool its about getting you to watch me and that is brilliant. Zuckerberg figured out, do a video. Not saying that snap cant do it im saying that snap has to say you know what, were smart, too, but what we need is a guy who can sit down with advertisers and not be irrelevant. They are sampling. Its not going well. Im done with you. I think twitter versus, we actually can we do a twitter and this is a great one. We are so lucky. Twitter and snap are the same price. Okay. Which one goes to 25 first snap. No question im with them. Snap would do it. Twitter has you, no, no, which one is bigger risk i have a bilimit order for snap. We have these two huge overhangs of that. Right i want to ask you this. Whomts to compete with amazon. Ask the same question. Who want to compete with facebook right now who want to compete google. Thats it and thats it. Anybody else, you better just hope they want to buy you. What were you saying, twitter has yahoo problems. Twitter is starting to resemble their talent drain is significant. Theyre trying to hire people. I know some people theyre talking to theyre willing to pay big number to get them s doing everything he can to make that company run well. Jack, again, two companies sarah can run square. Look what square has done. And jack can move over the fact hes not listening to me is annoying that said, theyve plateaued. Been around for a while. Theyre at a number of users advertisers, the shine is off from an advertiser standpoint and theyre one dimensional. Just that need thats why i like snap more. I think is an Artificial Intelligence play. A lot can be done with it. Just like doing live nation with the Artificial Intelligence you see twitter now as it is i see twitter about what it could be very hard as weve learned very hard to change the dynamic of how people see a company. But, it gets cheaper, gets bought ive been saying that for a long time t i see twitter at the lows of the day and i see snap with quite rossen and snap some way, thats the only reason i can see snap spiking right now some of these stocks that are destroyed by the amazon move came back. Before you do go, before you go, give us he stays, i go. Im going, too. Let me get up a little riff on this amazon thing and how we should be thinking abt most disruptive thing ive seen in my career in terms of what it can do a t. O. A second because it wouldnt be if it werent kroger call yesterday where they said all right, its going to have to be done on price. We are going to go after the germans, well go after walmart. After target and did they know at moment they were going to have to compete with the behemoth and jeff bezos, first, he wanted to entertain us. Then he wanted to clothe us and now, hes going to feed us prime. Amazon private schome today, you get your eggs free. Tomorrow, you get your milk for free you want to go walmart . Uber does 3 billion a year in delivery already maybe he hooks up with lyft. Are you sad . Is the walmart customer, whole foods customer, i dont know that was the Dollar General sell off some costco were overdone such a big bet on food. Its a big country. Not everyone is a prime sub. A lot of prime sub, not everyone is a costco. I feel like theres seg menation the deflation has hurt them so much. Heres the deal. Knocked down a little bit. Amazon doesnt feel its not like you brick it, it doesnt plead. Poison it, it doesnt die. Could you recommend buying cvs today if youre looking at other areas . Yes why i dont like that managed care, but i chartabitable trust owns heres one this is kind of like giving right now, im giving the skins the bootleg for cousins. Brian corn el right now, pick up your phone, brian, list ben to e hes got to call kroger and say im giving you the food area i gave cvs the pharmacy, you have the food. Lets go beat them lets get together lets join them. Can a kid from white stone do that i think he knows how to play what about a topping bid . And the possibly for that. Who can compete walmart maybe who wants to if its so complimentary to what amazon has by the way, do you want to grab that because i want to put in a good word. My executive producer is going to kill me jelks week is big week not unlike february 20th to february 24th the alleyed big week, the army, the air force where we did daily precision bombing of germmy. Lloyd blank fine on monday and im just beginning a big week. Its going to be saturation daylight precision bombing of all other net works. E latest big name tweeter lloyd blankfein. Thank you. Yes, yes. Thank you we love when you just show up. I had to. You kidding me our ota at our mini camp, my coach says we got a fantastic one. Giants have a good weekend really . Really you think its going to be a weekend . Youre not going to work tomorrow because of amazon have a good fathers day my daughter says this fathers day, its really inconvenient o a sunday, so do it monday. Whatever they want love you guys. Happy fathers day to everybody and whatever good man look forward to next week you bet im done. You thought about running . Is snap . Im telling you thats what i wanted to talk about. I got to go how about this pivot. Amazon should go get Mcgregor Mayweather instead of going to cable, pit over the top direct you cut out the 5050 split. They could make so much more sfl who wins the fight mayweather in seconds i agree i was saying three ten years in boxing, first round. And its strategy and management just like fun as he was what, 15 years ago . How about yahoo , they did own fantasy. And you knew that. It was a good demo lost opportunity. All right. If the snap thing happens, well talk first, okay all right, thank you finders fee Ross Levinson, jim cramer, more ralph time after this. Dynamic performance, so you can own the road. Tracktuned handling, so you can conquer corners. Aggressivestyling, so you can break away from everyone else. Experience the exhilaration of the bold lexus is. Experience amazing. Welcome back to the halftime report. Im Jackie Deangelis crude oil edging higher as the u. S. Dollar is weakening a bit crude is tracking for its fourth straight week of losses. Its the longest weekly losing streak since august of 2015. Jeff, should investors expect continued volatility in this space . Weve seen an 8 drop in the vix, i do see continued volatility next week a lot of bearish data dating back to august 2015. Look at the data weve had saudi arabia next week should have a chance to combat the rhetoric maybe they talk about their exports, the u. S. Imports bring that number down to get it back into range we go higher as were tethered to 45, jackie you have a chart thats showing why gasoline supply may be capping crudes gains that would be different than the seasonal trends. Tell us why. Yeah, jackie, when you look at this chart, first you must realize that every half of every barrel of crude oil is refined in it gasoline you see supplies are at a fiveyear high at least. Demand for gasoline is down 5 so jeff talks about going higher for crude oil but its not going to happen unless gasoline demand picks up after the fourth of july for more futures now head to cnbc. Com you can catch our live show on tuesdays and thursdays at 1 00 p. M. Eastern time. Brian, i just need to know if the customer app will be live monday. Can we at least analyze customer traffic . Can we push the offer online . Brian, i just had a quick question. Brian . Brian. Legacy technology can handcuff any company. But yes is here. Youre saying the new app will go live monday . yeah. With help from hpe, we can finally work the way we want to. With the right mix of hybrid it, everything computes. A used car, hidden in every swing, every chip, and every putt, is data that can make the difference between winning and losing. The microsoft cloud helps the pga tour turn countless points of data into insights that transform their business and will enhance the game for players and fans. The microsoft cloud turns information into insight. Deartheres no other way to say this. Its over. Ive found a permanent escape from monotony. Together, we are perfectly balanced. Our senses awake. Our hearts racing as one. I know this is sudden, but they say. If you love something set it free. See you around, giulia thithis is the new new york. E . Think again. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. You didnt know we had over 26,000 local activities listed on our app. Or that you could book them right from your phone. A few weeks ago, you still didnt know if you were gonna go. Now the only thing you dont know, is why it took you so long to come here. Expedia. Everything in one place, so you can travel the world better. I want to point out that stock right there, snap is up 3 it is off the highs of the day you probably just heard, we hope you did, Ross Levinson make an impassioned pitch on the longterm prospects of snap and why he is still a believer in that company that stock is one to watch today. Lets do final trades. Jimmy, kick us off merck, its been in a down trend and i think its going to continue there were too many competitors that came out of the conference. Courtney gibson bought disney is that your final trade it is my final trade. We have 117 price target on the name now however 11 million folks for the hang high, love the name. Josh brown . Krocostco selling putts is bullish. Have a great weekend. Thank you maybe a better one now. Power starts now forget the puts on pot. A multibillion dollar merger, a deal which seems to be generating as many questions as answers. Were going to talk about all of it, plus could all of this push walmart to make a splash deal of its own . Its gone deeper online. Analysts say the real fight is now on outside of that President Trump in miami this hour just landed and getting ready to unveil his new cu