and you know, there really is an opportunity either around automobiles or something else that will create a next big thing, maybe not for a few years but i don't think at this point with a 2.5% yield it makes any difference. >> the stock is up 3.5%, the 13 filings are usually lagging indicators because the actions took place during the quarter. but you have icahn getting out, tepper getting out, berkshire getting in and we just got news that leon cooperman is getting in. >> exactly. the buyers now, i think roger basically isolated the thesis here. it's not anybody who is claiming to have a great fundamental edge on exactly how many units are going to be sold or exactly what the trajectory of the next year or two will be for the business. it's about $45 billion or $50 billion in net income, give or take. it seems like a massive profit fool of a financially stable company and people are willing to say selling has gotten overdone. if you remember when carl icahn took his stake he had detailed projections about how many watches would be sold. >> how much stock the company should buy back. >> everything was very specific. it was easy to scoff at the idea the most widely followed stock in the world, people had overlooked this. now it's much more about big numbers and profitability. >> none of these guys has been any good at predicting not only the direction of apple, but why. looking at the stock, ever since 2012 which coincidentally is the year after steve jobs died and the year after the verizon iphone, the stock has been a lot more volatile than before, because it was all around the iphone whereas before it seems like there were more different products supporting it. my idea people should keep in mind, if apple is serious about services, about health and the watch, maybe they should go into the health club business. it's a lot of money in that. >> they certainly are at least showing that they are interested in services in china. we are getting tim cook, pictures of tim cook in beijing visiting the ceo of a company which apple just invested in. what do you think apple has to gain from this investment? >> well, i'm not sure exactly how that investment is going to play out in terms of rate of return. i suspect it will work out well. obviously ride sharing services are a huge deal all around the world. i think the reason for the meetings in china are much more basic. i think the chinese government has turned the screws down a little bit on apple over the last few months and i think cook is over there to try to see if he can't strengthen relationships, create a more positive tone for business. he's going from there to india where i think he wants to do the same thing. you know, these meetings, he's like a head of state when he goes over there. it's a really really big deal because i believe they have 800,000 employees working on apple products so apple is a huge employer in china and obviously, they desperately need the chinese government to at least give them a neutral playing field to operate in in order to allow them to do the business that chinese customers would like to do with them. >> but when they made that investment, part of it was described as needing to learn more about the chinese market and the chinese consumer. do you think they are admitting that they still haven't totally figured it out? >> yes. and i think their retail push is partly about that. it's about getting on the ground and learning what chinese consumers want, not just in devices but also in services. these pictures of tim cook, i think in context, that's so important. these are rock stars of modern entrepreneur tech in china with tim cook that's potentially good for apple, definitely potentially good for china's innovation economy, and china is so focused on being about that, on developing their own innovation, their own consumption economy, not just being about making these devices and shipping them out for someone who has money to buy. >> i guess my question, when news of this investment came out, how grand a strategy does there even need to be around a billion dollars investment by apple? in other words, half of 1% of the cash they have on hand, why not just kind of test it out there, experiment, learn what you can? >> because we don't want another beats. that's why. >> but even that, was that a signature stumble of apple, to buy $3 billion of a company like that? >> it's a drop in the bucket. >> i think it's embarrassing that in a year and a half they haven't come out with any new headphones out of this product. it's like they destroyed the brand. don't do that again. if you keep doing that, apple, with a billion or -- eventually these billions of dollars add up. roger, right, eventually? >> well, but jon, i do think the beats thing is different. beats was a ridiculous transaction when they did it and itself-evidently -- the company was already failing when they bought it. to me, i don't understand the logic of it. i never did. i give them, you know, a pass on that because it was a mistake. the stock got penalized as it should have been. i think this is much more about becoming more chinese and i think this is about apple putting a gesture that the chinese government and chinese people will both recognize and appreciate. from their point of view, i totally agree it's $1 billion which is a ridiculously large amount of money unless you're apple, in which case it's a reasonable down payment on a better relationship in china. i think it's an aspirational brand there and i think by attaching themselves, they create lots of market synergy and the opportunity for iphones to be i think more successful in the next few years than they would have been without that investment. >> tim cook is not the only executive trying to make a down payment in china. of course, we talk often about mark zuckerberg learning mandarin, making speeches there. do you think tim cook needs to make any other perhaps grander gesture? buying an apartment in beijing? learning the language? >> that's a great question. i don't honestly know the answer but i'm going to think about it because i do think china is so important to everyone. let's keep in mind because of their population and the rapid advance in the economy there, we are very close to the point in time where when china -- when people in china decide they like a product, that will become the global standard. the united states has had that privileged position for the last 50 years and we are very close to losing it, and i think what cook is doing here is trying to make sure that apple is one of the beneficiaries of the last periods of u.s. dominance. >> always great to see you and get your thoughts. >> take care. we have breaking news. let's get to headquarters. kate? >> just been doing additional reporting on the filings we have seen this morning including a filing from leon cooperman's omega advisors saying they had bought shares of apple during the first quarter, about 227,000 shares, to be exact. i'm told by a source familiar with the matter that subsequent to the first quarter, that position was sold and eliminated. they are no longer in apple at this point. it was merely a trade, a transaction, not a long-term holding. also, in terms of alphabet class a shares, that remains a substantial position for omega from what i'm told. they did sell 277,000 shares during the first quarter of alphabet class a but it remains an important aspect of the portfolio and something it sounds like they want to hang on to. >> thank you for that update. we were just talking about how the 13-f filings are lagging. we got news omega was in apple, now we learned they liquidated. >> the stock probably isn't going to take a hit on that. it reminds me on friday. tepper was reported to have bought valeant in the quarter and they said's the already gone. it shows the hazard of relying on steal filings. >> i believe we have roger for one quick thought on this. we have big name investors who got in apple in the recent quarter and are out. your thoughts? >> a lot of people don't know what they are doing in technology. apple belongs in the hands of value investors right now and it will find its way there quickly enough. i don't think we need to worry about which brands are buying and which are selling. it's got a great yield and again, patient capital will be rewarded for owning this stock. >> all right. roger, thank you again for the second time this morning. >> take care, kayla. berkshire hathaway chairman warren buffett and quicken loans funder dan gilbert are' uniting in a potentially leading a bid, i should say, to acquire yahoo!. there are several souguitors wh moved into the second round of bidding. mark is an analyst with rbc capital markets and joins us now. on the internet sector in general, you are pretty positive, but on yahoo! you seem to be saying some of the oxygen is being sucked out of the room by facebook and google. is this a smart move by buffett, you think? >> i don't know. i think it's very challenging to take a material stake in yahoo! today. if there's one broad theme, or one of the biggest broad themes across the internet sector it's have more and have lesses. we are seeing it in retail, travel and certainly in advertising. almost 60% of global ad budgets are going to two names, facebook and google, and they are consistently generating premium growth rate. yahoo!'s growth rate in advertising has been zero, nothing, for about five years. that says something about the dangerous condition of that company strategically and operationally. it's a very difficult investment to be putting money into yahoo! here. >> you say one of the stocks you do like is yelp on its valuation but what do you see happening overall? it's possible that amazon steamrolls through that business, too, as it moves into grocery and other areas. is this just a value play on yelp or do you see more of a future there than investors have of late? >> yeah. yelp has been one of the biggest underperformers in the space across the internet, we reshuffled our top buys in the group both large cap, we made netflix the number one buy and small cap, yelp is the number one buy. we thought this business hit an inflection point this last quarter. you saw reacceleration in local ad growth for basic reasons. they really accelerated their sales force rollout, got beyond execution issues that they had in the first half of 2015. it's a $2 billion market cap name, roughly. we think it still adds strategic value to a lot of different companies and has a good installed base, both of consumers and businesses, good brand equity. this thing is still one of the least expensive names you can find in the internet group. we like it on value and on growth and on the inflection point. >> you hit on netflix as one of your favorites. i'm kind of wondering what you are hearing in terms of why investors have placed that company or the stock in the penalty box this year. is it just doubts about international penetration and the pace of it, or something else going on? >> there's a couple of issues but just for context here, we had this as our number one pick at the beginning of '15. after the run through the middle of last year we down played it. we had amazon earlier this year. now we are switching back to netflix. we think the market's too negative in terms of the company's ability to ramp up margins. they have taken margins in the u.s. from 15% to 35%. they are proving out the model. in terms of international growth, that was kind of the negative issue on the last quarter's print. they have shown the ability to get over 10% house hold broad band penetration, in the uk, germany, france, latin america, canada, well above that in knot america. it's a global company. these will take time to build out but will build out big. buy before the market realizes that. >> wondering on amazon's future, where do you see the biggest potential? is it in the continued expansion of that core retail business which you point out has been growing at least 16% to 24% for more than three years, or is it in the cloud business which is throwing off off this profitability? >> you know, the advantage of owning amazon is that it's a 10% company. only 10% of their addressable retail sales are online and only 10% of work processes that could be in the cloud are in the cloud. you have good premium growth, you can probably bank on in both those segments. the recent shareholder letter, they talked about three pillar pillars of growth. they talked about trying find the fourth growth pillar so that's some of the work we are trying to figure out, where it is. it's uncertain. could be devices, could be groceries or white label services or products they talked about this morning. we will see. at least in the core businesses, i should have premium growth in both parts. they are equally valuable to the company. >> mama bear diapers. i'm out of that stage but i'm sure people will be buying them. thanks so much for your thoughts. let's get a check on the markets. stocks are rallying right now, the dow up about 120 points. the s&p and nasdaq also higher by just shy of 1%. when we come back, terrible week for retail after disappointing results from macy's, kohl's and nordstrom among others. we look at what went wrong with ron johnson. plus the ceo of twitter's periscope is here to talk about competition for facebook live and more. will the republican party unite behind donald trump? greg abbott, one-time ted cruz supporter, will join us right here at post nine. they may want the latest products and services, but they demand the best shopping experiences. they're your customers. and by blending physical with digital, cognizant is helping 8 of the 10 largest u.s. retailers meet their demands with more responsive retail models... ones that transcend channels and locations, anticipate expectations... creating new ways to engage at every imaginable touch-point. it's a new day in retail, and together, we're building the store of the future. digital works for retail. let's talk about how digital works for your business. our next guest was a supporter of senator ted cruz but now says the republican party needs to unite behind donald trump. joining us, former texas governor greg abbott who is out with a new book i believe tuesday. great to see you. the book is about your very inspiring personal story, an accident that left you paralyzed at 26 and how you recovered from that and built your career. it's not lost on people that the title could be referencing the republican party this year. "broken but unbowed." >> it references in part my life. people, i don't know if you can see on tv, but i'm in a wheelchair because i have a broken spinal cord, forever unable to walk again. so my life was broken but i remain unbowed and fought to overcome that. think about this. a guy with a broken back was able to rise up and be governor of the twelfth largest economy in the entire world. but as i point out in the book, i talk about how our country is broken but must remain unbowed as we repair it to make sure we remain the best country in the history of the world. >> what about the gop specifically, the work to repair some of the fractures within the party began in earnest last week when trump and speaker ryan met. are you confident that some of those issues can be resolved going into november? >> well, remember this. this is something that we have been through every four years. kind of the same thing happened with mitt romney four years ago, same thing happened with john mccain four years before that. there is a rallying cry here and that is the country has gone off track. we believe, with regard to the obama generagenda and see hilla clinton as nothing more than an agenda of that, if not far worse. we think republicans will unite, understanding we cannot take four or eight more years of that. >> some of the sentiment coming out of focus groups is none of the above, i will sit this one out. >> if you sit it out, that means you are not participating. if you are not participating, it will lead to government off control. this is the time when the country is at a tipping point, really, where there is no opportunity to sit it out. we have no second chance to get this right. people have to participate if we are going to put america back on the right track. >> i want to ask you about your endorsement of donald trump. when you endorsed ted cruz back in late february, you said we can't be fooled by p.t. barnum. the time for clowns and dancing bears has passed. a lot of people thought the p.t. barnum in the republican primary was donald trump. how do you square your take on the race then with your endorsement of trump now? >> slight correction. that was ted cruz's quote. >> i'm sorry. >> he said that. but the way i square this is i am a ted and was a ted cruz supporter. ted cruz is a personal friend of mine. he worked for me when i was attorney general in the state of texas. i know ted, i know his conservative credentials, i know where he stands on things like the constitution, and he's my kind of conservative. listen, i may or may not agree with everything donald trump stands for. i didn't agree with everything mitt romney stood for or john mccain stood for. but here's what i do know. that is hillary and the positions she's taken, whether it be on financial issues such as regulating the energy industry, whether it be international issues such as isis or the immigration system, i know that hillary is far worse for america than donald trump would be. >> you have also voiced your support for north carolina governor mccrory in the hb 2 fight. the debate has been extremely contentious recently. you are a fierce defender of states' rights. is that what that is about? less than the bathroom bill itself and trying to disenfranchise certain minority communities? >> you are exactly right. that's an issue i directly write about in that book. it deals with the way the united states has gotten away from its constitutional design. the way the constitution is intended to work is when we have issues like this, it is the elected legislators, the legislative branch, that is supposed to write the laws. in fact, believe it or not, congress has voted on this very issue. they refuse to pass it in the aftermath of that, the president himself decided well, he's going to go ahead and impose it. that is ruling as a king. that is contrary to the design of the united states government. >> it's the content of that law, though, that has made it a lightning rod. i know we don't have time to go deeper into that topic but because this is a tech show, the last time we spoke was in austin at south by southwest, we were talking about austin as a tech. there was a vote for ride sharing drivers to be fingerprinting. uber and lyft picked up and left. i want to read a tweet from paul graham, saying i will go out on a limb and say austin has a zero chance of being a serious startup hub without uber and lyft. what would you say to that? >> for one, austin is already a dynamic startup hub. that process has already left the barn as we say in the state of texas, and there's nothing that will slow it down. the dynamics that's causing austin to be a startup hub are already in place and will not be diminished by this. point one. but point two, the issue's not over. republicans in the texas legislature have already raised proposals coming up in the next session to override the austin vote. >> you think uber and lyft come back at some point? >> i just say the game is not over. it's halftime. we will see what happens in the second half. >> governor, thank you for joining us in new york. the book, "broken but unbowed" is out tomorrow. up next, tough week for the retail sector. macy's, nordstrom and kohl's all down more than 10% on the heels of the weak earnings we got. more reports coming in the week and we will tell you what to expect and get more on the state of retail with former jc penney executive ron johnson. a fair price, quality service, and that in a new house, you probably don't share the same tastes as the previous owner. ♪ [ dolphin chatters ] so when you need a little house painting or a complete remodel, we'll help you get the job done right, guaranteed. get started today at angie's list, because your home is where our heart is. it has been a pivotal few weeks for retail. department store stocks and luxury brands have been slammed while amazon has seen new all-time highs. good time for the first ever shoptalk conference where over 3,000 attendees are exploring the next generation of retail and e-commerce in las vegas. we have a special guest there. >> i am joined by ron johnson, the current founder and ceo of enjoy, former ceo of jc penney. it's been about a year since you joined us. what has your growth been like since then? >> we are thrilled. we launched in two cities, new york and the bay area. the idea for the first year was to learn and we have had a great year. we had about as many visits what we deliver as a product, as uber did rides its first year. they were in san francisco only for a year and now we are beginning our expansion. so we are in chicago and los angeles as of now. as we move into back to school we will be adding miami, atlanta, dallas, houston and orange county so we are beginning our rollout but it's still early days for enjoy. >> what is your revenue stream like? >> revenue's growing. 20 times our launch month but it's up in very small bits. every startup tries to get to $1 million its first year. that's what air bnb did. i don't think uber did even a million dollars its first year. we exceeded that threshold and as you grow, you hope to go up more like a hockey stick but you got to earn the right to do that. >> so you are operating in a space that we would call startup and call e-commerce but are selling traditional goods for the most part, consumer electronics. this past week has been a mess for department stores. is that falling tlhrew to consumer electronics? >> fundamentally, people have choice today. do i shop digitally or in a store. it used to be we would go digitally to research but now it's so easy to buy digitally. amazon with one click and one hour delivery in many markets. that's pretty convenient. people buy from apps, people buy from text messages. as the ease of shopping digitally grows, the desire to go to store goes down. what's interesting for us is i believe that the first 20 years of e-commerce or digital commerce have all been about convenience. but in the physical world, some stores compete on service like apple stores or nordstrom. no one's quite figured out how to deliver personal service if you want to start digitally. that's what enjoy does. with enjoy, you can order the product, within four hours, we will hand deliver, we will set it up, but we will provide an experience which you can't get from amazon. so we are kind of in experienced digital where most in e-commerce is still in convenience. but this is an example of how the world's changing because you can do so many different things than we did in the past in a mobile economy. >> you think traditional retail is dead? traditional department stores? you ran one for a long time. >> i think it's very difficult. it's still 93% of what we buy is done through stores. but we are in a period where for years, retail has grown but slower than total because online's grown faster. but there's been relative growth. we are now heading to a period where many sectors are in absolute decline. >> like? >> macy's, for example, last week, closing 40 stores. it's absolute decline. that's something they haven't faced yet. that's going to be a very big challenge. >> i think jon has a question. >> jon fortt here. here at the stock exchange. got a question about where you see the long-term opportunity for enjoy. is it with maybe individuals who are working in their homes with really small businesses and need that kind of support, or is it more with individual tech technophobes? do you see yourself partnering with stores who can't offer the level of experience stores can? >> we are starting in consumer electronics like amazon started in books. our product is an experience. we have to learn how to deliver that. we have to deliver a great person and a product fast, and create magic. so our short-term objective over the next few years will be to prove our model in consumer electronics. we already learned the customer isn't somebody who is a technophobe. it's someone who enjoys value, convenience and health. in today's world, people don't want to do things alone. they like to do things together. the millenials are known for being -- they care more about experiences than buying things. they will go to air bnb to experience a neighborhood in a city and they don't go to a hotel. in the age of experiences we have to learn how to deliver experiences. i think enjoy applies very broadly millenials, boomers, whatever, but it's for any product where you can use a little help. >> mike has a question. >> so let's trigger a little bit of flashback as if you were running a physical chain retailer again. we heard announcements about jc penney reorienting toward home goods and furnishings. is there really any way out aside from just shrinking and trying to get used to this serial discounting world? >> yeah, i think there is. but you have got to reimagine what happens in the store. so much energy has been put into trying to do something online but online doesn't create any emotional connection for a customer, and it's been kind of a false strategy i think to put all this energy into trying to be convenient online. you have to figure out how do i take digital devices in a mobile world and reimagine what happens in the store. if you can do that, it changes. an example. i look at sole cycle as an experienced digital company. you go on your phone, you pick your class, you pick your instructor and reserve your bike and you pay for it online. then you have an experience in the physical place of exercise that goes way beyond exercise because you are part of a movement. stores have to create movements through experience. then i get a product. but there aren't a lot of people that are reimagining that but you are seeing that with some of the newer entrants. >> i think we will talk about that. you and i actually have to run because we have to run to the stage here. thank you so much for joining us, ron johnson. really appreciate it. >> thank you. great to be here. >> back to you guys. >> thanks, courtney, for bringing us that special guest. europe closed just a few minutes ago. let's bring in simon hobbs. >> some of the european markets weren't open at all today, germany and switzerland, because it's the day after pentecost. the trading was negative, catching the dow drop from friday and we cut many of those losses working through the session. broker brodowngrades are leavin stocks. today, the finance minister suggested that it would be a one-way ticket to a poorer britain, echoing the bank of england, the imf, answering back to the 300 business leaders who signed a letter to leave in this morning's daily telegraph, arguing that regulations from the european union undermined competition. separately, the uk prime minister spokesman says he is standing by his very vocal criticism of donald trump on the muslim ban. that's relevant because donald trump did an interview with uk television over the weekend in which he suggested he probably would not have a very good relationship with david cameron and seemed to suggest some sympathy with the vote to leave the european union. >> i think if i were from britain i would probably not want it. i would want to go back to a different system. a lot of what's happened and i have dealt with the european union, it's very very bureaucratic, very very difficult. >> donald trump's words haven't really put a negative bias to sterling. the pound is actually higher. also, fitch came out with a suggestion of other countries that would be affected from the brexit, those who had gdp or imports greater than gdp. two stocks are moving, telecom is higher and anglo american is also one of the top gainers today after bank of america, merrill lynch upgraded it to buy and virtually doubled its price target as well. they have doubled in value as you can see so far this year. don't forget it's down 80% from where it was five years ago. b of a thinks they will have the disposals at market value. back to you. >> thank you, simon. up next, facebook saying live is its faster growing product ever. here's your cnbc news update at this hour. the supreme court ducking a major ruling on obamacare. it told lower courts to seek a compromise between the government and faith-based employers who object to opting out of obamacare's contraceptive coverage. the department of defense releasing video that is said to show coalition air strikes on isis targets in iraq last month. the video shows strikes on a fueling station near mosul. rescuers finding the bodies of 17 people who were among the 20 university students and two guides who went missing in floods and landslides in western indonesia. one student was found alive and was being treated in a hospital. four people are still missing. the british royals announcing a campaign to tackle mental health problems in the uk. the duke and duchess of cambridge and prince harry meeting with various partners charities working in mental health. they say they hope to end the stigma which can stop people from seeking help. that's the cnbc news update for this hour. let's get back to "squawk alley." >> thank you, sharon. one of the great battles playing out on social media is the one over live video streaming. facebook has got its enormous audience. periscope was earlier to the game. they aggressively added new features, ipntroducing a search feature. joining us it kayvon beykpour, the ceo. always great to have you. i want to ask, facebook doesn't count views the same way you do. it's kind of all over the map in terms of knowing exactly how many people are viewing a stream, interaction, that pattern's a little bit different. what do you think the competition, the fight, is really about at this point? what's the high ground you are trying to take? most people can only go live on one service at a time. >> you're right. for us, what we are really passionate about is how do we build an experience that makes it compelling for you to go live. it's not just about the number you see that shows you how many people are watching. it's about what about that experience makes it engaging enough for viewers to spend time watching you live rather than seeing some video you uploaded beforehand. that comes down to the interaction, comes down to how possible it is for viewers to actually impact what they are seeing by commenting something to you and having you two seconds later respond by either taking them somewhere else in the room or answering their question. that interactivity is the magic you don't even get by watching tv. all the viewers right now are watching at home, the very curated, beautiful experience but it's not interactive with the way mobile devices allow you to with a platform like periscope. for us, unlocking that sort of interaction is the key to making periscope special. >> so when it comes to live, do you see the future of it being sort of what we have seen with youtube where it turns out that more talented people, whether they are in mainstream media already or emerging, end up commanding a higher percentage of the views? are you actually going to end up courting a smaller percentage of periscopers to draw in the bigger audience? >> it's always the case that people who are great story tellers and great entertainers can create really compelling experiences on any format. but i think what's interesting about platforms today and periscope certainly tries to embody this as well, is that you can make it easier and lower the friction for people to create and bring people along. if that friction is low, then the bar for being a very compelling creator gets lower and lower. that's true down to if you are messaging with someone or broadcasting live with someone, i think we can bring that br lower and lower so you don't have to be an expert broadcaster or expert commentator to captivate an audience. that's certainly true in the case of citizen journalism. it's not just about who you are, it's about where you are and what you are able to see and what you can share with people. i think the fusion of all those things together creates a platform where it's not necessarily the case where you have to be -- have to have the largest audience or even most compelling story teller. sometimes you can just be in the right place at the right time. >> the problem, though, as we scuff discussed with you a few months ago, it's a little too easy to pull out your phone and record a baseball game or football game or something that is copyrighted by someone else. you told us it was still early innings, you were still figuring it out, similar to what youtube went through a dk aecade ago. how is that going? >> people are realizing there's more compelling usage for this platform. the world is big enough, that's not going to stop someone from doing it, obviously. that's why we have policies and procedures to deal with that stuff. 99.9% of the way people are using the platform like periscope is far more interesting. that's the stuff we focus on curating. if you see your featured broadcaster, more interesting usage of where we can add value in the world, helping you see the world in real time through other people's eyes. >> one of the interesting elements of all the energy being put behind the idea of live is that a parallel trend is people not being interested in linear real-time stuff. they have video on demand and you want to pull what you already know. why does it seem like a compelling business opportunity potentially to actually try to kind of fertilize this area? >> well, i think first of all, it's about attracting an audience you wouldn't have attracted before. why would cnbc want to be active on periscope? they are able to tap into an audience that's not necessarily sitting at home on a television screen watching cnbc. that's one aspect, tapping into an audience that maybe has been unlocked before. two, it's new experiences that you couldn't otherwise have before. like the fact jon can sit in his bedroom periscoping and have people asking questions about what it's like to be in his shoes, that's a new type of interaction that even as a tv show host, you don't really get that same type of experience. i think those two things together make it an interesting avenue for any organization, whether you are an individual like jon or whether you are the mets or the dodgers -- >> can you -- >> if you can attract an audience of people to watch something, a piece of content you are creating without any advance notice, jon can go live or the dodgers can go live and ten seconds later, have hundreds of thousands of people watching, i think there's something interesting to be done there around monetization, whether advertising, sponsorships or whatever strategy you want to. the key focus is building an audience, building a mechanic that's interesting enough for people to spend their time using the product. >> i was in the basement, i would never periscope. >> looked like a bedroom. >> i would never periscope from the bedroom. >> things could get really interesting. >> that's a nice-looking basement. >> ceo of periscope, always great to have you. up next, take another look at apple shares. one of the big reasons for the market rally this morning, up 3.5%. good for much of the dow's 142 point gain. berkshire disclosing that stake of 9.8 million shares in the company. certainly that is something to watch this morning. first, rick santelli, what are you watching? >> you know, i just have to jump in on the whole brexit conversation. as we get closer to june 23rd, there are so man dy dynamics th are common above and beyond brexit. there's a certain form of nationalism throughout the world right now and big governments want to get bigger and want their missions to get easier. think trade deals with the uk and the rest of the euro zone. that's after the break. olay regenerist renews from within... plumping surface cells for a dramatic transformation without the need for fillers. your concert tee might show your age... your skin never will. olay regenerist, olay. ageless. and try the micro-sculpting cream you love now with lightweight spf 30. coming up, markets might be higher but we will talk about the bearish call on stocks that has wall street buzzing today. plus, what berkshire's apple buy really means for that stock in the months ahead. and conflicting calls on lululemon today. we debate who got it right today. see you in ten minutes or so. >> sounds good. see you then. we are close to session highs on the dow, up 145. rick santelli has the santelli exchange. hey, rick. >> thank you, kayla. why the june 23rd exit vote? i'll tell you what. it's surprising to me that it isn't more overwhelming in one direction or another and i do think the direction i'm surprised isn't larger is the vote to leave. they say it's a close call but nobody knows for sure. things like this are different -- difficult to poll. people don't always give you the same opinion they will have right when it gets down to that last second where they have to make a decision and it is a big decision. but it is also a lot like y2k. we are preparing for kind of an unknown. we probably overcompensate and the outcome may be nothing like we expected. granted, i guess it could be worse but what is worse? what's really going on? what isn't surprising is all the issues going on in turkshe uk a going on everywhere. think about the u.s. there's a large percentage of the zcitizenry and those in government who don't like executive orders, where one word comes in, very little debate, think about the board of education and federal funds to schools right now. this is a lot like the issues that people in the uk are experiencing. they really don't have a federal constitution for the euro zone. treaty of lisbon, they tried to get one, it didn't pass. in this country, putting the federal overlay on all these states because this is really kind of a battle between the federalist perspective and the states' strength perspectives that we had in this country a long time ago, before the internet, hit one button you could move money anywhere you want, social media, where everybody gets a voice immediately. all of this just makes it so much more difficult. the u.s. when it was states versus a federal overlay that worked together, was much easier to accomplish in simpler times. but i think the one area i find that's really important is regulation. when i look at regulation issues with the brexit notion, i see trade deals that are going to get more complicated. governments like things easier. maybe easier isn't better for the people. but movement of migrants. but regulation is a lot like dodd-frank here. it really is. because it favors the bigger institutions like too big to fail banks. i'm reading more and more that smaller companies in the uk think they would have a better crack if it wasn't for others making these large looming rules and compliance. i don't know how it's going to turn out but i have a funny feeling it will be a whole lot more like y2k, a lot less fear and a lot more well, hey, it's come and gone. what do we do now. back to you. >> thanks for that perspective. up next, not a lot of movement in square today but that's likely to change pretty soon. we tell you why in just a moment. ♪ you're not gonna watch it! ♪ ♪ no, you're not gonna watch it! ♪ ♪ we can't let you download on the goooooo! ♪ ♪ you'll just have to miss it! ♪ yeah, you'll just have to miss it! ♪ ♪ we can't let you download... uh, no thanks. i have x1 from xfinity so... don't fall for directv. xfinity lets you download your shows from anywhere. i used to like that song. tomorrow marks 180 days since square's november ipo which mooeans many employees an insiders will be able to sell that stock. the company expects 64 million shares and warrants could be exercised, could be sold. the stock has gone negative today. the stock is down about 28% so far this year. when we talk to jack dorsey, he said this is an event that every company that goes public faces but 64 million would triple the amount of stock outstanding. >> clearly there's the opening for this to be a lot of pressure on the stock. i'm reminded of facebook, when this really started to be the thing everybody watched, facebook was cut in half from its ipo in the first lockup expiration hit. that was a great buying opportunity. you almost front-loaded all the anxiety about it. i'm not saying square is similarly positioned but it is something you have to keep in mind, you can't necessarily handicap exactly what the supply-demand dynamic will be around this. >> at $9.30 it is getting very close to its $9 ipo price. we will keep an eye on that. up next, stocks still in rally mode. the dow up about 150 points. more on the market moves in just a moment. take a look at shares of alphabet or what we still call google these days. stock is actually up about three quarters of a percent despite a report in the "sunday telegraph" saying the company could face a record $3.4 billion antitrust fine in europe which would relate to google's alleged promotion of its shopping service in web searches at the expense of its rival. the article points out this is just about three times what intel paid in 2009. >> it would be a record fine, like forcing them to buy beats. but google has done a masterful job thus far in dealing with the eu and containing the damage in these accusations. the real danger for them is that instead of being as pragmatic as they have, they start to go trau ultra-principled and start to harm other investigations and start to pick apart the mobile business model. >> worth noting this is a different situation than that situation which is still being investigated. $3.4 billion. the company had $7 billion in cash at the end of the last quarter so just about half that. >> it's obviously not going to cause that much pain but you don't want to just be writing checks and getting nothing back and presumably if it doesn't really cheat business practices down the road i don't think investors are looking to europe as necessarily being impaired in terms of alphabet's business. >> heck of a speeding ticket. >> exactly. >> the report said that could come as soon as early next month. we will keep our eye on that. with a strong market rally on our hands today, let's send it to "halftime" and scott wapner. thanks so much. welcome to the "halftime report." our top trade this hour, is it time to get short stocks? with us for the hour today, joe terranova, josh brown, pete najarian. we kick it off with the markets and the bearish call being heard around wall street despite the green on your screen. bank of america seeing a severe summer slump coming. dropping that note today, the ominous prediction just hours ago. i have the note in front of me, you say put your shorts on, it'