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tv   Squawk Alley  CNBC  June 26, 2014 11:00am-12:01pm EDT

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now. >> congressman, we're out of time because of gopro. i want to have you back. really, your committee has got to get busier on this. these answers are unacceptable. >> good to be with you. >> back to the "squawk on the street" crew. >> rick, thank you so much. rick santelli. good morning. it is 8:00 a.m. gopro headquarters in san mateo, cal. 11:00 a.m. in new york city where gopro is open for trade on the nasdaq. up 30%. "squawk alley" is live. ft. ♪ ♪ i mean, how could you not
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open with j. giles on a day like today? welcome to "squawk alley." kayla is at the nasdaq covering the gopro ipo. onset here jon fortt and john steinberg. good day for tech. we will begin with gopro, the stock opening ten minutes ago. shares up 29%. founder nick woodman was on cnbc with becky quick making a strong case for miscompany. take a listen. >> people buy solutions. they don't buy things. they don't buy gadgets. helping people express themselves share their life experience, that is an ever lasting value proposition to consumers. that's not a fad. and if gopro can make it easier than any other company in the world, make it easier for our customers to share compelling professional quality, personal content, that's an opportunity that's never going to go away. >> all right. let's get to kayla first who has covered this ever since they made their intentions to become public known in the first place.
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kayla, your thoughts with a few minutes of trading under our belts. >> i think it is certainly a great open. remarkable open for gopro, which last night the indication was it could price at $26 a share. but the worry was what signal that would send to a market which hasn't been friendly to ipos in recent months. of course, this is viewed as a watershed moment of shorts with 16 ipos this week. the most money at techti attemp raised in more than a decade and gopro is living up to its name right now and nick woodman exercising some discipline. you can see how that's manifested itself in the stock price. up 31% today. it's interesting, carl, to hear him say that customers want solutions, they don't want gadgets. that was an answer in response to the question of is gopro a fad. we open with the montage of every single camera that's made its way into consumer's hands over the last three or four decades. this is in the lexicon of those
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products now but he is convinced that with the pivot to media that they will not go the way of some of those handheld video recorders. >> kayla, you raise a good point and that is it's not just about cameras, guys. it's a company in transition. we don't know if they're going to be a gadget company or a media company. and hence, valuation is a much tougher call today. >> media mentioned 88 times in the s1. i don't think they're moving to a media company. for them to put up incremental $100 million in advertising revenue on the base of a billion dollars that would be meaningful. they could go out and get a $5 million chunk from this cpg company, look what vice has done. vice is reportedly going to go $500 million in revenue this year. they don't have nearly the brand that gopro has. there you go. >> this valuation i don't think is out of control but i would point out there are some challenges ahead for the rest of the year. this is a q4 story in terms of their revenue.
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and their profit. and we won't see those numbers until january. momentum stock is doing well right now. who knows how they will do over the next six months. >> imagine if they went into the market six weeks ago. >> exactly. this is a good news for a lot of people. i think you've got to be careful with this one because this holiday season we have new iphone, beats headphones with more marketing muscle behind them, probably a watch also. there's going to be a lot of competition for people's gadget dollars. >> jon, i think we were a moment ago watching some footage. >> both of us. we both have done this. >> you skiing, at least. >> yes. >> what do you say to people saying it's a camera on a stick. >> how quickly can they get away from being flip cam and get to be a vice or a red bull media type company. if they can make that transition to jon's point, before the watches come out, before a rugged eye, samsung phone you can do this with, if they don't quickly move into media they're going to have a problem. they've done it quite early. flip cam never thought about being a media company. he's trying.
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>> although kayla, part of woodman's argument is that they have grown up in the era of the phone and that's a lot different than having a business and then getting slammed with that technology as it came to rkt what. >> it is. they've watched the eruptiarupt content and how integral that is to the way that companies can establish and stake their flag with their users. i have to disagree with john steinberg here. they're not becoming a media company, they are a media company. the problem is, there's really a big question about how they will ever make money off of media because it's sort of a supplement to the product. yes, it's nice to watch the videos on the youtube channel. but given that gopro is the brand, can they have ads on that. would they alienate their own user. when you are the brand creating the content how do you have advertising on that product? it's a question that they haven't answered yet. and carl, i drew the comparison a lot of investors are making to facebook. re we remember in their s1, a big
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cloud hanging over mobile. people were using facebook on mobile at that time but they hadn't yet experimented with placing ad, is on mobile. now that's 59% of facebook's revenue but it's a little less cut and dry for gopro in terms of how they make money on that. >> i think this media thing might end up with a bit of a red herring. they want to make that work. but the opportunity for them is to make the cameras and sharing simpler. these are really professional quality cameras. you have to know what you're doing to get a good result out of them. it's easy to point them somewhere and turn them on but if you really want a video that looks good you need these mounts, you need to strategize and how you put it out there. it costs you a lot of mop any. 400 bucks for the camera alone and you pay more for the equipment around them. this is a premium product. maintain this brand and yet make this experience accessible to more people. can they improve their app. can they get into editing as well as sharing more easily. those are the key things i would want to see if i were an
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investor. >> they have 450 million youtube views in the past quarter. that's scale but not quite enough scale. look at the way turner went and bought bleacher report to strengthen in sports. if gopro goes out and bias site that has, call it 50, 60 million uvs and then does big 360 brand yields they could quickly go from being a media company without revenue to a media company with revenue. >> we will have more this hour some viewers think that we have already done too much. next up, a lot of news at google. they announced a whole host of new features. new operating system for wearable tech. new system that connects your car, health and fitness. basically google wants to be connected to your entire life and that does include your living room. julia boorstin is in los angeles more on that. >> that's right. google wants its operation system to be the backbone of your living room entertainment experience. it's pushing android tv to be incorporated into tvs, set top boxes and game consoles.
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it allows people to switch between live tv, apps, and netflix and the google play store. to cast video or music to compatible devices without being on the same wi-fi network. plus it has voice powered search. google will benefit from selling movies and games through the google play store but most importantly, google wants to own your searches on the biggest screen in your house. it's another opportunity to serve ads and gather more user information to improve ad or targeting which means higher, a d prices. google search front and center on android tv is what distinguishes it. apple tv, amazon's firetv set top box, plus the roku box. xwoogle has been trying to break into the the space since 2010 with google tv and 201 is $300 nexus cue streaming device was killed before it shipped. and while last year's $35 chromecast is considered a success, this new platform is much higher powered.
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android tv will be integrated into sony, sharp, and philips but because it will only be available on high-end sets, wide spread adoption won't materialize as quickly as android smartphones or apple tv. guys? >> julia, thank you for that. jon, your reflections coming off yesterday? >> interesting stuff. the bottom line is the clock has run out for google to figure out what to do in the post smartphone era. they've got to do it now. the cue was a failure. didn't get out of the gate. motorola had this vertical idea. that didn't work out. google tv didn't work. so now apple is coming out with this watch. everybody has been sort of spinning their gears, samsung's watch didn't work. now they've got to make theirs work because when apple comes out there's going to be a lot of attention on this space. somebody is going to zoom ahead. >> it seems like a lot of bucket of stuff. that's what the last apple developer conference was. i know john disagrees. this google conference was bucket of stuff.
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all of these different bid widgets. they've gotten away from a big, i pad type of announcement. it has this many megahertz. it has this much storage. now it interconnects this way. i'm a little bit bored. >> some people had issues with the presentation. >> three hours long. >> too long. too involved. somebody said i now know what happens at guantanamo. i mean -- >> this stuff is not supposed to excite us. when it goes on sale, this is for their eco system. this is to get people saying i'm doing to build on google's platform instead of apple's platform. i think they made a case for the developers who are behind them. but apple still has the money. if you want to make money, beyond advertising and people actually buying your software, your apps, you go with apple right now. i didn't see anything from google yesterday that's going to change that balance. >> jon -- >> one of our writers from daily mail called it google retaliating against apple. that's really what it does feel like.
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this is an old school battle between two platforms that are rolling out nearly identical features. >> distant third in microsoft as well. three companies that are all fighting over the exact same turf apartme different speeds and different priorities. google has been focused on a lot of moon shots and different directions for the time being and now coming back home to the eco system and realizing that consumers will stay in one eco system that they like and if you don't have consumers that are sticky in that eco system then they're not going to use android in their home, in their car, wherever. >> do you really think we're post smartphone? do you think the tv rz going to be that big of a thing? >> when i say post smartphone, i don't mean that smartphones are going awe. the growth, the energy, the margin isn't going to be in those so much anymore. it's going to be on what connects to it and builds on that. >> let's check on the markets here. it's been quite a morning. dow is down triple digits.
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now down 69 points after bullard made some comments that some considered to be hawkish. shares of netflix slipping. a buchlg of different names. they're only underweight is netflix. three $90 price target. barclays, initiating new coverage of twitter, facebook, google. they're all overweights. firm cites impressive execution. google's ad sales at twitter as well. by the way, twitter saw $40 for the first time since april 29th. when we come back, we've got a lot more coverage of gopro's ipo. the stock seeing very nice gains after open for trading. we're talking to the first major investor in the company who helped it become big. also a member of the board. river wood capital mounder michael marks is here. plus, this 360 selfie has over 9 million hits on youtube and it's all shot on gopro. the creator will join us in just a few minutes. you're watching "squawk alley."
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♪ call of the chapging face of television. google unveiling the new android tv mat form and then the supreme court dealt that blow to online video start-up ario and this rapidly expanding market of streaming devices, apple, amazon, and netflix involved
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there. can a small start-up called fan tv with a big cable deal shake up the market hierarchy? fan tv's ceo joins us this morning from san francisco to share his vision for growth. it's good to have you with us. good morning. >> good morning. >> obviously a big week. walk me through where you fit in in all this madness and how the decision on ario affects your business. >> yeah. well, we think that in this market where you get announcement every week about new device, new services coming online, consumers are getting increasingly confused on where to find, you know, sources from movies and shows and how to watch live tv. the focus that fan tv has, the company that we started three years ago, is to help organize all of those content options whether it's live tv, on demand, those apps called tv everywhere, we launched an app on ipad three years ago that has about 2
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million users in the u.s. and we announced a few months ago a device to come about in partnership with cable companies to integrate all those different sources of entertainment for consumers. so that on a friday emping when you want to watch a movie or want to watch something on tv, instead of having a stack of different devices connected to your tv, most likely a set top box, and streaming device for your over the top services and a bunch of controls on the coffee table, instead you can have this device that we're launching in four weeks, which essentially has one remote and through this the big difference with all of the announcement you had over the last few weeks from amazon, from google, is that this is device essentially integrates live tv, integrates on demand and sbe grates on streaming services. >> gilles, this base is incredibly crowded with over the top players. google's jumping in here again with android tv. apple is in it. so many other players. and the cable folks including
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our parent company comcast are trying to sort of take control of this space as well with the x1 box. how do you make money? what is the value proposition to the consumer? is it the cure rags. is it the interface? where can you make a dichbs? >> we make a difference in essentially helping consumers discover the content. it's not about really setting hardware although introducing a new device as a way for us to get into the market but we can bet our platform on other devices. we have apps already on tablets and phones. and so when you think about it, you know, years ago, decades ago, there was a ""tv guide"" that can help you decide what to watch. we're building the discovery experience and bringinging it into an interactive world. it's similar to what kayak would do for travel or mint for finance or yelp for restaurants. we're helping consumers figure this out.
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we think the market needs somebody like this because all of those companies that are launching devices and stores also have a vested interest in really sort of specially focusing on their content wheres a it's pretty clear now in 2017 most consumers in the u.s. will want both live tv source and with a top source. it's less -- it's more about enhancing where i want to have most of the options. when you have netflix with 35 plus new subscribers and then you've got 100 million households that have live tv, it's a matter of both, it's not a matter of either/or. >> a lot of people who watch the show are investors in cable, charter, how should they feel about the fact this the companies are not building their boxes successfully and ultimatery have to farm it out to roku and apple and google and you. what is that relationship like? doesn't that make them into dumb pikes, basically? >> no. first of all, increasingly -- so
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you've got the pipe. you've got the devices. then you also have the content. you can see that most of those companies are now investing increasingly in original content programming. you see netflix doing it more and more and amazon. i think this is one way those companies are going to differentiate is by creating content that becomes very -- that becomes exclusive to them. as a result of that though, as a consume fer you want to watch "orange is the new black" as well as what's watching on live tv you have to combine the two services. i think in 2014 it's hard for companies to content for consumers on an edge where download all the apps i want, i don't really have one system or another, i can have everything. it's really about the content strength. it's very important for cable companies that said it's very important to -- for them to create the user experience basically because if you look at your living room in 2014, you have a beautiful tablet, you know, ipad.
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you have a thermostat, but you have a really, a ellie tv. so i think it's going to overdo the cable company's user experience. our strategy is actually to work very closely with them to do that. we've announced cable which is the second largest cable company in the u.s. and they will be able to offer their users a significant upgraded user experience without really losing any of the value proposition. >> it's been said, the worse thing to happen to television was that set top box with the brains and the house. it's very hard to upgrade. gilles, please come back. thanks for your time. when we come back, still have our eye on gopro rallying this morning on the nasdaq. and speaking of gopro, 36 countries, 300 days, 9 million hits on youtube. one gopro camera. the creator of the 360 degree selfie will join news just a moment. this is "squawk alley."
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♪ about 36 coupleries, 600 day, 5 motorcycles. that's what our next guest needed to pull off on epic three-year 360 degree selfie using only ago pro camera. with now nearly 10 million views, alex joins us on the cnbc news line where he is back at work on the next installment. alex, good morning to you. thanks for joining us. >> good morning. thank you for having me on. >> it's an amazing piece of tape. you know we're here covering the ipo of the company. i guess my question to you would be, why a gopro? >> i think we all had an opportunity to see at least gopro video in our life now. it's become a huge not only great product itself but has
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really become a social movement as much as a selfie as, such as my video now almost 10 million views. it's just become almost a social thing that's very interesting how it's working out. so why not? i'm surprised gopro took this long to go public. >> alex, a lot of people's excitement about gopro has to do with the idea that they can become a media company. you're right in the middle of that mix with your 10 million views based on what you shot. how do you handicap the chances? what's the value to you of those 10 million views and how has gopro interacted with you, if at all, around that? >> you know, i think the value is within -- as far as being able to express yourself in a certain way. i think gopro has really allowed the opportunity for the average joe, including myself, almost three ago to begin something to start a social movement and really start something that's never been done before. gopro is interactive with consumers. they're really more about how
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use the product, very happy about you using it and really want to be a part of the whole thing itself rather than trying to sell you a camera. it's about being able to express yourself in certain ways. gopro has reached out to me, their interest as far as, you know, what i'm doing very authentic, kind of unique. it's a new approach and new way to go on with how selfies are and how epic videos are going. it's interesting how things are going. >> alex, congratulations on great videos. you feed right to my question saying that gopro reached out to you. let's say you got a $20 cmm on that and on 20 million views, $200,000. what would be a fair split between you and gopro if they were to distribute that to you? >> i think the way digital media is working, i don't think anyone is quite figured out how to monetize it the complete way. i think gopro is doing a great job starting it out. i'm not getting 20 cpms per click. i think the way it's working for youtube and certain video sites
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are working, i think there's a huge thing here and a huge potential for investors to really see how you can monday noize -- not that but you can grab ahold of the market in a unique way either through gopro going into the media thing or youtube or other servers that can really be a part of it. i think there's a huge opportunity that anyone has quite seen just yet. i think gopro has a vision to foresee this. >> alex, it's still requires a captive, loyal audience to be using gopro's hardware. it's so secret that every single competitor is trying to figure out how to rival gopro in this space. i wonder if sony, cannon, nikon, if these companies tried to make a product that would do something similar to gopro what would it take for you to switch over to that? >> i think there's a lot of potential for huge market, you know, with the selfie thing. everybody wants to capture their own moments in their own ways and share with it their own family and friends in a certain
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way, rival cellphones almost. but the gopro is so amazing just because it's so durable. i've seen this thing being stepped on by elephants, lost in the ocean for three months. just really amazing things this camera can do. i think sony and the other companies have a long way to go within development. most parentally, like i said before, it's a huge social movement. gopro is about the consumers and the people we behind it. i met some of the friendly people working at gopro as well. everyone is excited to be a part of the company whether you're a consumer or working for them. it's awesome just to be a part of this great product but not only that but the movement itself. >> alex, take care. look forward to seeing your next installment. alex chacon joining us talking about gopro and on a day where we're certainly giving it a lot of cover ramg. let's get to simon hobbs and the european close. >> for the record, the 28 leaders of the european union are meeting in belgium where the uk is likely to face a humiliating defeat from keeping
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him from being the next, u executive. for the markets that's a flat market if you took a weighted average. after yesterday's 1% loss, basically you've been able to stem four days of losses now to end flat overall. the big surprise is the uk house builders. the bank of england came in with the new rules to regulate what is the housing bubble. nowhere near as bad or as harsh as people expected. you can see the jumpoff had in some of those so far today. i guess the big news for many continues to be the fact that the u.s. or the securities regulation new york is suing barclays. barclays stock is down quite heavily today. barclays operates the largest dark pool in this country. the allegation is that they not only aided high frequency traders within it but told the clients they weren't going to do that and rooted some of the trades to themselves. barclays is down. credit suisse operates the first largest dark pool in this country. back to you. when we come back, gopro has opened for trade as you faux by now.
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healthy 30% gain. we're going to show you a little throwback thursday. this is gopro a decade ago back when it was still using disposable cameras. speaking of gopro, we'll talk to one of the first major investor on the company. still on the board. river woods michael marks, former ceo of flex tron anythings is up next. ♪ ♪fame, makes a man take things over♪ ♪fame, lets him loose, hard to swallow♪ ♪fame, puts you there where things are hollow♪ the evolution of luxury continues. the next generation 2015 escalade. ♪fame
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♪ you're probably up to speed on gopro by now. opening for trade about an hour ago. 30% gain on day one of the ipo. you might not know the story though behind the founder and that, of course, is nick woodman. for that we're going to turn to josh lipton later on. for now though, michael marks is the founding partner of river wood capital. gopro board member and investor. michael, it's good to talk to you. >> thank you. nice to be here. >> how are you feeling about today? >> well, obviously this is a grit day in the life of the company. it's a fantastic opening. you know, nothing could be better than this. >> how much -- how hard of a journey was it to this point? >> well, i wouldn't say it was a hard journey. we made our investment three years ago. the company was already doing very well. you know, nick is a fabulous entrepreneur as you know and the company was profitable when we made our investment and they just continued to grow fast and make better and better products
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and recruit better and better people. it's just been terrific. it's been a great ride. >> michael, it seems the challenge for growth right now for gopro is in software partly, making sharing easier, making editing easier. also in media. who are the key people on the team right now who can get gopro where it needs to go. >> well, you know, the team has been on the road for the last two weeks, you know, answering these questions for everybody. we just added tony bates as i'm sure you know as the president who brings a lot of that capability. but there's a big team already at the company that's working on all of these different aspects of the business, from the hardware side to the editing side, software, you know, the platform and media. so there's, you know, this is an 800 person team already. and big teams working on these things. >> walk us through, what do you say to skeptics who say this business is littered with bodies of companies that have been come mod advertised out of business, right? >> sure.
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>> camera on a stick. you've heard all this. >> absolutely. well, from the time we made our investment there have been a lot of skeptics. we made our investment the company just finished the year with $65 million in revenue and last year just under a billion. and continue to grow rapidly. so obviously i'm not a skeptic. i have a pretty good answer for this really. you know, what you see, this isn't a commodity product. you say i just watched the piece with alex on. you see how much passion there is around this product and you're showing videos now that is fantastic. you know, this is a -- there is a lot of authenticity here. and that's really important. the people who run this company from nick on down are users of the product, they are enthusiastic about it, they're always coming up with new ideas to make it better, the products are much, much more sophisticated today than they were two or three years ago. the idea that a company is going to sit there and say, gosh, gopro is doing well. why don't we do something like
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gopro. that just isn't a recipe for success. you've seen them. already been a number of entries and just having no progress. this is not only product but it's community, it's, you know, passion, it's authenticity. it's very hard to replicate that. we're very bullish about the future of this company. >> michael, there's obviously a wealth of con at the present time that the company has at its fingertips. the possibility of it becoming a media company. i'm wondering from the board perspective and from inside the company, is the point of this to become a media company, to charge for content or to get ad revenue or is the point to become a media company, to build the audience to sell more cameras? >> it's all of those things. i know, i've been watching the coverage and there's a lot of discussion about this and as i said, the management has been on the road giving their vision for the future. it's very obvious that the content from these cameras and these people who are using the cameras, incredibly compelling. you're showing it all day today. it's out in times square. when we have board meetings,
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there's a feed that runs on the tvs, sort of latest feeds. and, you know, in a four-hour, five-hour period we may watch that feed, you know, ten times. we may see the same video go by ten times. it's just as compelling the tenth time as it is the first time. that is what content media is about. it's having people wanting to share and wanting to watch this stuff. that's for sure happening. so there are lots of ways to monetize this in the future. it's going to be great fun to see the company go down these different paths. >> one last question, michael. >> sure. >> this morning woodman was asked why not price this more aggressively. you certainly had the leg room. he said he wanted to share the love. what were those conversations like? >> well, you no, nick said it best. one of the things that -- look, nick is the best entrepreneurial i've ever met. he's just a riot. he's always talking like that. there's truth to that. look, pricing stockton ipo is, you know, it's more art than it
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is science. the truth is, this has been a terrific ride with the company. everybody has had a good time. investors are doing well. the employees are doing well. sharing that with the new investors and having the stock up 30% or 32% today, i mean, that's all good. so could we have priced it high higher, made a little bit of extra money for the company, sure. that wasn't the driver. we want everybody to be on this road with us and having a good time doing it. >> michael, thanks for your time today. congratulations. >> it's really fun. thanks for that. >> michael marks, founding partner of river wood capital. gopro board member and investor. let's send it over to dominic chu. >> we have interesting news on verizon. the german government is going to end the contract with america's biggest telecom company by market value. officials there say the actions being taken due to fears that it would be letting u.s. intelligence agencies spy on german sensitive communications. now, germany has been one of the more outspoken critics of u.s.
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intelligence fathering policies in the wake of edward snowden's revelations about spying eye the nsa. verizon's current contract will not expire until next year. still a very interesting development with regard to one major company in the u.s. and allegations of spying by the u.s. government. back over to you. >> dom, thanks. when we come back, video you have to see. the founder of gopro, nick woodman, pitching his product on caucus almost a decade ago. that's coming up. but first, rick santelli, what are you watching today? >> well, i'm watching all the numbers. what a difference a day makes. yesterday many economists, i remember joel still looking for lofty, lofty q2 and beyond gdps. but maybe that's not so true after what we learned today. what did we learn? of course that's the tease, isn't it? come back after the break and we'll talk about it.
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shift as the broad market pulls back the momo names are staging a comeback. does the role reversal last? speaking of comebacks, tiger is back. teeing off on nike stock. we're going the find out how the traders are playing it ahead of tonight's earning results. we are going extreme with the gopro ipo. wait until you hear how the traders are playing this one. plus, getting unique gopro view of the cnbc newsroom. that and much more ahead on "the
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halftime" report. back to you. >> thank you, michelle. great throwback thursday for you here this morning in honor of the gopro ip organization. check this out. this is gopro's founder pitching the product qvc in 2005. >> when you want to take a tote graph it pivots up, takes a shot. it stays attached. you don't have to worry about droming it. it locks back down. >> hasn't aged a day since then. that shows you how much work is involved in getting one of these things off the ground. >> it's a little smaller. they've got some more creative mounts. that's a good thing. that's how you get that $.5 billion valuation. >> we see how it closes. obviously having a very good morning. let's get to the cme group and rick santelli and the santelli exchange. >> this is really an exciting day on so many levels. the first thing i want you all to do is look at a chart of the dow jones industrial average but it would be the s&p and
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equities. see what happened is mr. bullard started speaking and what was he talking about? airing on the hawkish side. he's not a voting member but it still made the market nervous. let's look at tens. yields are moving down. is there something there that makes sense or doesn't make sense to you as viewers and listeners and on the radio what i see on the chart is the dow moved down dramatically but so did yields. hey, aren't higher prices supposed to give us higher yields? that's the constructirux of the situation. let's go back to the future. in january i thought that one of the biggest fundamentals to keep interest rates low -- actually two -- was the relative value trade of what's going on in southern europe and king sovereign in the form of the boon but the second thing was that there is only, and i'm stressing this, there's only one hedge for an equity market, should it come up with a correction, you know, those things that haven't occurred in like forever. well, it wouldn't long treasuries. let's frame this out.
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if the equity's market response to higher prices is lower but it isn't the same in treasuries, there can only be one reason. treasuries are looking at how all of that affects the fed and how the fed affects the prices of equities. let's all take it a step further. yesterday we had the minus 2.9%. and, boy, oh boy, every economist on the planet was trying to dismiss it. this is antiquity. call it sue. all that may be true. now what happens? we get the income and spending up in bers today and gdp not for q1 but for q2 has taken a real hit today. there's some now in the 2s. the ones in the 3s are putting out notes they want to see a couple more important data points before they potentially move down to the 2s. and one of the main issues of that is real consumer spending. q1 it was about 1%. q2, it's tracking under 2%. remember, the 1% was associated with a lot of things in the
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noise column but minus 2.9. so higher prices normally would affect interest rates in a way that is more reflective of the stresses of inflation and how it affects your yields and your real interest rates. in this case it's how it affects the real level of the equity markets. back to you. >> rick, thank you. when we come back, gopro dominating the headlines today going public on the nasdaq. the head of listings of nasdaq will tell us how he lured the camera start-up to his exchange. helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury, get medical help right away for an erection lasting more than four hours.
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welcome back. a big day here at the nasdaq. 94 ipos have traded on this exchange year to date president bruce is the executive vice president at nasdaq. bruce, thanks for at nasdaq joins us. thanks for having us. >> thanks for having me. great to be here. >> up 33% but what on behind the scenes to get this company out of the door? >> really about the underwriter for the ipos. the underwriter was jpmorgan, priced the deal last night and built the book this morning and started a little widing ago so a very exciting day. >> it's meaningful and textbook example that you guys carry in all of your pitches when you have something like this go off without a hi. a lot of ipos in the pipeline. what's the story the nasdaq is telling to these companies right now? >> i think it's similar for go pro. nasdaq is the home for innovation and technology and we share that same passion with nick and the go pro team when we
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sat down and they said we belong on nasdaq. >> a lot of good techs on file, box among them. now there are reports they are raising new funding. what are you feeling, healthy time for companies to go public or is the market still soft? >> investors are looking for new opportunities, new companies to invest in. goes very well for the ipo market. we'll see a very strong vault, a record number of companies that have applied with you. >> the big one alibaba expected early august. have you heard from the company and what do you expect them to do? >> well, alibaba is a game changer like all the companies listed on nasdaq, apple, google, amazon, go pro, home of game changers. >> what are the stakes for this company if alibaba chooses to trade on your competing exchange? >> it's just like every other ipo. we want every other ipo to become the nasdaq. we think innovative companies and the best time for alibaba to list. >> bruce, feels like it's going to be a busy fall.
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pipeline getting crowded. >> late. laugh having you here. >> the head of global listings at the nasdaq. carl, back to you. >> thank you very much. >> one big question is who stands to make the most money in the company other than nick woodman? we'll talk about that in a minute. a lot of the action at nasdaq includes go pro and seema is there with what's moving. >> the whole cnbc team coverage for go pro. up about 30% on its first day of trade. we did look at some of the high-profile ipos that also saw a first day pop just to see how shares were trading since going public. grub hub up about 30% on its first day of trade now up about 36% from going public. mobile iron up about 22% on its first day. shares trading up by 11%, its ipo and two chinese internet players trading well above their offer price, so those numbers just give you a little bit of perspective. now in terms of big tech moefs movers in today's trade, the nasdaq is down on the trade. yahoo! is one of the worst
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performing stocks in the nasdaq 100. retailers also weighing on the nasdaq after bed, bath & beyond reported disappointing reports and chip stocks losing steam. mkm partners saying the semiconductor stocks are the most overbought since the tech bubble burst in 2000 so a lot of traders watching this tech subsector after its run over the past couple of month. the philadelphia semiconductor index up about 17% year to date. carl and team. >> thanks a lot. who does stand to make money in go pro other than nick woodman? we'll take you behind the numbers in just a minute. when folks think about what they get from alaska, they think salmon and energy. but the energy bp produces up here creates something else as well: jobs all over america. engineering and innovation jobs. advanced safety systems & technology. shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. when we set up operation in one part of the country,
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vo: hurry in and lease the 2014 passat s for $199 a month. visit today. we take you to london where former "news of the world editor" rebekah brooks is making a live statement. >> when i was arrested it was in the middle of a maelstom of controversy, of politics and of comment. some of that was fair but much of it was not so i'm grateful for the jury, very grateful for the jury to coming to their decision. >> what's your reaction to the extent of criminality that has been exposed at the two papers you worked at? >> i would like to say it's been a time of reflection for me.
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i've pernd some valuable lessons and hope i'm the wiser for you. >> do you wish you had done more to expose the criminality, mrs. brooks? do you wish you had done more? >> i think that said i'm incredibly proud of the many journalists i've worked with throughout my career and the great campaigns that we have fought and more. as the chief executive do you wish you had done more to expose the criminality? all i can say is today my thoughts are with my former colleagues and their families who face future trials. i'm going to do everything i can to support them because i know how anxious the times ahead are. >> can i ask you whether you've -- >> do you feel bad what's happened to andy coulson? >> what i'm going to do now and i hope you don't mind. i can't say too much today. i have to be careful for my former colleagues' sake but my
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thoughts will be with them and their families and now we're going home. >> how do you feel about what happened to andy coulson? >> has david cameron -- >> that is rebekah brooks in london surrounded by lawyers, reasserting her inn sense and discussing the news, of course, the verdict that was handed down earlier. >> when it comes to incisive questions, carl, nobody asks or ignores them quite like the brits. >> that's right. >> you nuclear grand of media. >> this go pro chart making a lot of people happy this morning. our robert frank is back at hq with more on that. >> hey, carl. nick woodman is released on paper, this 56 million shares worth 16.2 billion. he's selling 3.5 million shares about, $84 million today. he'll still own 48% of the company after the sale this. ipo is a little unusual is n that half the shares are coming from executives and other
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current shareholders. we've been told that his 800 employees deserve a reward. let's take a listen. >> they deserve liquidity and an opportunity to deserve some of the hard work that they have done. i'll still roughly own a third of the company when this is done. >> some of this wealth is staying in the woodman family. his father dean woodman has 7.2 million shares worth over $2 million. he's not selling and woodman's sisters selling over 100 shares worth $3 million and executives are selling 10% of their shares, not a big amount and they are still very vested in this company's big success. unlike other tech ipos that have had lockups, could be a big concern for investors. back to you. >> robert, thank you very much. a couple names have haven't been mentioned so far this hour. $41 holding on to a gain.
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>> zoo lily doing well, nice mention from analysts continuing to do well but when i look at the names are doing well over the past week, zoo little and blackberry and facebook, splunk, a lot of momentum names. >> would have been so easy if you had only known. as we get back to headquarters, emcaruso-cabrera at the half. >> welcome to "the halftime report." here is today's game plan. tiger is back. the golf legend is back on the course and will trading the tiger affect? >> help me, i'm poor. the department of education getting an "f" in today's worst trade, and extreme ipo. go pro is surging in its nasdaq debut and find out who on the desk already owns a piece of it. got an allocation. how are the pros trading gpro? let's meet today's starting lineup, skwon


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