tv Squawk Alley CNBC August 1, 2014 11:00am-12:01pm EDT
in california and 11:00 a.m. here in new york, and "squawk alley" is live. ♪ good morning. on this friday, august 1st. payroll friday, i'm kelly evans. carl quintanilla is off today. joining me, jon fortt and kayla tausche here at post known. gopro, big mover this morning posting earnings after the bell, stock sinking even though earnings beat analysts estimates. investors appear worried since the gain of the ipo leaving the company overvalued. gopro ceo, joining us for his first interview since the report a little later on. >> when that happened be
yesterday, kelly, of course, the markets selling off in a big way. bouncing back slightly today. s&p positive. a few times this morning, nasdaq positive as well. dow down just about 35 points. you think about some of the social media stocks, gopro aside, twitter aside from earlier this week, look at linkedin. that company surging about 10% this morning, after also reporting strong second quarter earnings. other tech and social media stocks heading lower at this hour. with the new month, tech stocks, where do we go from here? joining us by phone, founding partner with alpha one capital partners. good morning. >> good morning. >> we are seeing markets slightly into the red. given how steep the sell-off was yesterday, how short determine do you view the volatility to be? >> i think the volatility is probe going to get a little worse heading into the summer, because it's funny.
everybody's all worked up about yesterday, but the s&p is barely down from its 52-week high, if you look at it. we've gone 33 months without a 10% correction in the market, and we've had a lot of bad fundamental news during that period of time. russia invading ukraine. negative u.s. gdp in q1, china's economy slowing. brazil slowing. u.s. government shutdowns, argentina defaulting and the market hearne carasn't cared be fed kept putting money into the system. i think people have sort of gotten lulled into a sense of false kplacomplacency during th time but fd fundamentals aren' good. the market is starting to differentiate between the companies beating like facebook, for example, and a company stig str struggle with profitability, like amazon. last year it didn't matter amazon missed three out of four
quarters on the line. stock was still up. >> call it the difference between good fundamentals and good stories. would you argue at this point linkedin has good fundamentals and gopro, tesla are just good stories at this point? >> one other piece of that, you sort of touched on it. you have to look what you're paying for these things. so there's the risk and reward usually in stock investing and really the risk part of it was thrown out the window for the last couple of years, where all of cared about was a good story. all you cared about was the reward. so when you look at a facebook and a google, you go, wow. google's trading at high teens mau multiple and growing its core business in the high teens. facebook is growing faster than its revenue growth. len you look at the quote/unquote story stocks that don't have a lot of profit act or go, really, i want to pay this much for a camera company? and think about the risks associated with that.
people are start doing do that for a change. >> given the geopolitical risks out there don't seem to have shocked the market too much, how much should we worry about that going forward? what do you think it might take to really shift the direction of some of these stocks even though go pro is down a bit day to day, well up from its price. linkedin up, still down 6% from where it was 12 months ago. >> an excellent question. you've touched on it a little bit with your question. the geopolitical stuff hasn't seemingly affected things, but if you look at a lot of the earnings reports that have come out, the industrial stocks have been absolutely awful. i don't know if you can bring up the xli on your screen, that's the scree industrial etf. huge misses in this space and pretty much everybody missed reven revenues, loweds quarter
numbers. ges, run through the list of names and you're seeing it show up in the number, but people have said, industrial, we'll put that in a corner and ignore it. oh. housing's having a bad time with home builders? ignore that, put that in a corner, but what people are i think finally starting to think about, maybe we can't start putting that stuff in the corner. maybe we need to start thinking, how's europe going to sound this summer? because europe's always kind of sluggish during the summer, and with all of what's going on, with russia and all of the sanctions back and forth, business is probably going to get worse. latin america, same thing. auto companies all talked about problems in latin america when they reported. ford and gm both missed their top line. >> given all of this data -- if i can jump in, again, a tough august before everybody comes back and gets things going ghen september what do you recommend people avoid and is there opportunity to be had now? >> there are a fair bit of opportunities. the things we would recommend people avoid are sort of what
you brought up earlier, which is the storied stocks. companies with no profitability but are counting on you or have sky-high multiples that people are kaunting on nice stories, you need to be careful of those. we're focused on names where things are improving slowly. pc sector, hasn't seen positive growth since 2011. that looks we may see the first positive year of regrowth later in q4. we like intel. fairly low multiple. we like apple. they have the best product story in probably three years, for example. >> thieleave it there. dan, appreciate your perspective. ended the day looking for a rebound. not finding one yet. alpha onepartners. and re/code representative, start with a couple big movers today. of course, include linkedin and tesla rallying, earnings and revenue beat, company announcing
planning to fund half of that planned $5 billion giga factory, meantime, linkedin reporting strong earnings and profit in the second quarter on an increase in newer businesses like employee recruitment which has your blood going? >> linkedin, obviously. it's trying to move into other areas. social selling is the thing jeff meaner was talking about. mostly recruiters, mostly their business is built around recruitmented and recruiting and moving into the sales effort, which say the of other companies are in. believe me, but still an interesting area because of that giant database of names. so they're trying to be the facebook of business essentially. i think it's probably, they're probably in good shape to do that. >> kara, how many different businesses do you think they end up expanding into? i mean, i wonder if this is one of those interprice-type plays, maybe they start in database, go into middle ware and applications like an oracle. will they have that level of influence, do you think, over the market? >> yeah.
it's, these aren't unusual things. recruitment, sales leads and using data for sales leads makes sense. it's adjacent. did something crazy you'd wonder about that. talking about doing software, interesting. i think this idea of social selling, get leads using data more effectively makes sense. a lot of selling is a lot of guessing. using date-to-to do that makes perfect sense and it's the perfect company to do that. >> kara -- >> doesn't make much money. let's be clear. >> what happens if facebook wants to be the facebook for business? >> no. it will never do it. talked about it 100 years ago. i had a conversation with mark zuckerberg. they'll never do it. >> move on. talk about tesla. quick thoughts here this morning. shares moving about 3%. news on the giga factory. what do you think about this one? >> i love the name giga factory. i think they made it up. you're enjoying saying it a lot, but okay.
bring down the cost of batteries. that's it. this company made, lost more money than ever, trying hard to move from a nis thing. only sold 10,000 cars in the quarter. not a lot of cars. again it's small and a big idea. 234e have to bring down costs and batteries, that large battery is the biggest cost for tesla. they have to find a way to make it much more efficient. makes sense. giga factory crack meese up. the press goes crazy. >> got to call it something. give them credit. re/code, head of investor relations to do the job as ecommercial giant. one of the largest ipos in history and jim wilkinson is there already. a signal they might be keeping an eye on washington, on its public relations generally as it eyes all of these various business, the "new york times" talking about it being on a shopping spree here? >> this is going to be an
important ipo. regulators will scrutinize it because it's a powerful chinese company. that shouldn't matter but it does. they're hiring significant executives. jim a well-known person. worked at pepsi. he was a big figure in the bush administration, the previous administration. the executive they hired from google, another very strong executive with a lot of history on wall street. very well-known, very well-liked. they're going to be hiring, and located here in the united states, in san francisco. so they're trying to make themselves into more of a u.s. company or a global company, i guess, in order to be more appealing i think to wall street and regulators, too. they have -- going to be hiring like that all over the place. it makes sense. >> kara from a human capital perspecti perspective, this kpicompany iss longer than a year. 2013, new chairman. wondering, should they have some of these people in place maybe prior to right now? does it feel late to you to put
in of these people at these roles? >> i don't think so. they're doing what they need to do in terms of a forward-facing company that looks comfortable to u.s. regulators and also to wall street. they probably should have you but are doing well in the business part of this business. i think very considerate with the ipo. not rushing into it or panicked and delayed it, even. they want to do this right. it's unfair but scrutinized more heavily by u.s. regulators, absolutely. >> leave it there. kara swisher, thanks. noting, nbc news group is a minority stakeholder in re/code and have a partner sharing partnership. at the top of the hour we told you -- slipping even though earnings topped expectation. nasdaq down 11.5%. still nearly double its ipo price. ceo nick woodman will join us in his first interview since that report. that's coming up next on "squawk
alley." and we're keeping our eye on the markets, just a day after the dow went negative for the year, trading to the down side now by 70 points. nasdaq and s&p in the red as well. "squawk alley" will be right back. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities
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reasonably decent jobs number, if we can coall it that for juls or because of that, the dow jones industrial shedding points. s&p off 6 and nasdaq off 23, the ten year hugging the 2% line. >> a nice take for ism. consumer confidence slips. a lot for investors to work with. seems the sell-off is continuing. sell-off also continuing for gopro. a public company reporting 8 cents for share and revenue, $245 million for the second quarter. both beat estimates. the cameramaker says expenses surged year over year and would continue to surge sending the stock lower. down more than 11% at this hour. joining our own josh lipton, nick woodman in san mateo, california. over to you, josh. >> reporter: kayla, we are here with nick woodman and luck toy have nick today, because the man is playing hurt with a torn acl,
and, nick, i heard that actually the doctor who did your surgery did so with a gopro strapped to his head? >> yep. dr. kevin stone of the stone clinic replaced my left acl a little over a week ago, and i asked him if he would document the surgery wear agopro. he agreed to. he documented surgeries with cameras before with limited success. so he was a little doubtful, but said he would do it for me, and it was a gesture, and when ri sw him and the other doctors in my postexam, stoked like little kids. we might cut it into an edit and show people what a replacement of acl looks like. >> first earnings report as a public company. right? beat estimates. stock, though, is down hard today. what do you make of that? >> stock prices will go down, stock prices will go up.
it doesn't affect us, because we have such a strong vision for the future. we've got a really long-term vision for the business. it's part of how i got comfortable taking gopro public is i have so much faith in what we're doing here, and it's very clear to us, and so we'll really excited about the future and know as long as we continue to execute everything will work out for everybody as gopro and importantly our shareholders. >> talk about that business, nick. in some ways you guys invented the action camera market, you dominate it now. certainly there will be companies coming after you guy, that are coming after you guys. how do you think about, nick, how you sort of protect and maintain that gopro brand at this point? >> well, you know, the action camera aspect of what we do is just a subset of what people can do with a gopro. gopro has succeeded in becoming one of the best-selling cameras in the world because we enable people to capture virtually any perspective of life and
themselves doing what they love to do in life. so self-capture is a new area of capture that didn't really exist before gopro. so our market opportunity is really significant, because the world is filled with people that have interests and are doing things they'd like to document. so that they can see themselves doing what they love to do in life and share those experiences with other people. we've already grown out of just the action sports markets. you don't become one of the best selling cameras in the world if you're just selling to thrill seekers. so it's a misconception that we're still stuck in that niche. but it's an important part of our brand, and even as we've transcended the gopro brand now represents passionate humans doing virtually anything in the world and the content that results, people still regard us for that high-energy, sports-oriented brand and it's fabulous, because it resonating
with people around the world. >> jon fortt a question for nick? >> i did. thanks. nick, at a bike shop a couple weeks ago angd they were telling me, yeah they don't sell that many gopros. a lot of customers have them already. i was at the airport last night. they were saying, selling quite a few. i have mine here. i'm not a crazy action sports guy but wonder, how do you penetrate the casual market, maybe the weekend action person who's got kids and wants to capture more of that? is that part of your strategy for growth going forward? especially in the holidays, with that coming up? >> absolutely. the best way for gopro to grow is for us to make it easier for our customers to realize the promise of why they buy a gopro in the first place. for the risk one to do-minute edit they can use to relive an experience or share it with other people. people don't buy the gopro for the thing, but for what the thing does, and a gopro enables incredible content. right now it's still pretty
difficult to go from capture to the finished edit that you can share, and so we're investing heavily in making it easier tore people to offload content from the their camera. cloud sync it, anks access to any screen in the world to watch were anytime they want it and easy edit creation tools to create short summaries to share with other people. when we do that, make it easier for people to do that on a regular basis, gopro will be much more relevant to families and households. >> look at the growth, nick, you saw last quarter that top line jumped up almost 40%. around the world, the bulk of it is in the americas. what's the opportunity as you look overseas? >> we have terrific success in amiya, and we've seen signs in apac, latin america, asia, that we have every right to succeed there. we do well in those regions. we're strong in australia. early days in asia.
europe is about a year behind the u.s. market. and then outside of europe it's about a year to two years behind, and what we need to do is -- and we're in the process of doing -- take the lessons learned from our u.s. success, channel marketing, develop retailer relationships, improve broader consumer marketing in those regions, roll that out to those regions, and it's just a matter of time and execution. at the end of last year we opened up a sales and marketing office in munich, germany, to get boots on the ground over there. we have 25 people in that office now starting to execute, and it will only be a matter of time getting it up to the level of success as the americas. >> kayla, a question? >> i do. nick, good to see you. content a little more. you said on the conference call last night that gopro related uploads to youtube doubled in the quarter. that's obviously important for the gopro brands, i'm wondering when that starts to be important to the bottom line of when gopro can start to monetize that?
>> sure. in terms of priorities, we're most focused on, again, realizing the promise of gopro to our customers and helping them realize why they buy a gopro in the first place, that fabulous edit they can share. when we do that, help our customers capture and share, help people share 10, 20, 30 times as much content as they are today, from their gopros, then the media opportunity comes naturally to us. because when people are creating and managing that much content on our platform, it increases the pool of incredible user generated content we can pull from, aggregate the very best of and redistribute as gopro channel programming, scaling the gopro channel, you know, now on youtube, xbox 360, xbox 1, virgin america. you can match didn't growing to
apple tv, ropedope, et cetera and as those grow, so does our media opportunity and opportunity to monetize it, first and foremost, focused on realizing the promise for our customers. >> do you see, nick, the content changing? on the conference call you talked about hunting and fishing, it becoming more popular. has the content shifted? >> over the years, absolutely. look at programs that our customers were sharing, you know, three, four years ago, it was largely sports-oriented, but as we grew in retail channels to include best buy, walmart, target, we reached more everyday customers and not just sports enthusiasts. we started to see the passions of everyday consumers. so more family life, more children taking their first steps. more people playing guitar. more adventure travel, and that, we've rolled that into the programming on the gopro channel.
the fact that we can show kelly slater pulling into a barrel with his gopro, the next video might be me getting an acl replacement, just shows that, the diverse range of our programming and the versatility of the brand to be relevant to people in so many ways. >> nick woodman, appreciate your time, sir. thanks so much. >> thank you. guy, send it back to you in new york. all right, thanks so much for that, josh. good stuff out in california. meanwhile, send it back to headquarters to morgan brennan for a "market flash." >> kayla, check out the acl surgery on tape, i want to. check out chevron moving to session lows e despite reporting better than expected quarterly profits. those higher energy prices are falling as the dlaollar strengthened. chevron trading down a little over 1%. back to you. >> a difficult market. dow off about 60 points.
more with the european close shortly and concerns about porch gom. shares halted over concerns about a capital hike. much more to come on that and straight ahead, a mystery over before it really began. behind google's top secret project now headed for the scrap mete, and a winner. two crowd funded projects. a smart home security system and personal robot assistant. the votes tally and we'll talk to the tech crowd winner a little later on. as mentioned, where we are in markets heading to a quick break, dow off more than 50 points after more than a 300 drop yesterday. we'll be right back. the ca♪illac summer collection is here.
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we have to make decisions and big bets for 30 and 40 and 50 years, reduced exposure to russian a year ago and now have a business in this oil company. >> that was bp ceo bob dudley speaking with jim cramer last night about the company's stake in russia. and the geopolitical uncertainty impacting that entire region. speaking of uncertainty, bring in michelle kaw caruso-cabrera to count you down to the close across europe. europe cited for leg lower in the u.s. markets? >> day two of very big selling in europe. weaker than expected u.s. jobs report that came out this morning moving major european averages initially off their lows, because that u.s. data reduced expectations for more aggressive moves on interest rates by the federal reserve here and, remember, that interest rates in the u.s. affect every major market in the world. every major interest rate in the world. however, the effect was temporary, looking at averages
closing at or near lows. portugal, by far worse performer, the largest listed bank, waiting to hear how they'll raise capital. shares suspended suspected of having "harmful management" according to the central bank. stock hammered. every decline eats away at regulatory capital. a prominent test to europe's commitment to the process we saw in cypress. ho who will pay for the bailout? private investors? punish bond holders? even senior bond holders if necessary? the so-called template put in place during cypress. germany not far behind in declines. dax, breaking average in two years investors growing worried about the impact of the european sanctions on russia, according to reuters, 40 european blue chips many german derived more than 5% of revenues from the russian market. this intraday chart you can see
the move up where the u.s. data, and going into the lows of the session. when it comes to the uk, weak manufacturing date ta there keeping a lid on the ftse and intraday pattern, same u.s. rates. spain lower. sharply, traders an additional argentina effect. the companies businesses long exposure to latin america. argentina defaulted yesterday. and italy, voted yes for a combo with chrysler paving the way for chrysler listed on the u.s. stock exchange. kayla, back to you. >> thanks for that, michelle. in case you missed it, and in glorious end to the mystery of the google barge, floating in portland, harbor, since october, headed for the scrapyard. the barge was apparently supposed to be a floating showroom for google glass, and other high-tech gadgets. for whatever reason, google decided to junk the project. at one point was supposed to be a facility for company parties or a data center.
apparently now, jon, it's nothing. >> the barge goes the way of debarge. you know? big, for a little while, then evaporating. i loved rhythm of the night, and now the google barge gaez off into the night as well. so -- >> i would never in a million years have known "river of the night" was debarge. >> of course it was. last dragon sound track, fantastic. >> wow. my music and movie trivia is lacking a little. that's the inspiration i needed. >> slightly older than you. >> just slightly. >> in my head now. we'll see if that google barge pops up anywhere else. meanwhile, u.s. markets moving to the down side after the dow fell more than 300 points yesterday. we are moving a little bit more towards the flat line, but still clearly in the red. the dow down by 42 points. it was nearing triple digit losses earlier in the session. what's driving action today, we'll tell you when "squawk alley" comes back. avo: waves don't care what age you are.
teaming as they did, mr. ackman buying allergan shares as he did, as part of that bidding group, he would point out with valeant, in violation of insider trading laws. rule 14e-3, s.e.c. rule, valeant had a duty not to disclose i its -- its potential tender offer, which by the way was not making originally for allergan shares but has now moved to, and, therefore, mr. ackman's buying the shares with that fore knowledge of a potential tender offer was insider trading. a lot of discussion about that in the past. of course, when we first saw the transaction, and ackman vehemently disputed any notion of it, but this raises the bar yet again in this heated battle whether or not it actually will pass muster with the court, of course, is something yet to be decided. >> this question had been brought to bill ackman several times, and his defense was, in
any situation where we were becoming an activist and hoping the two companies would merge, we would buy stock in both company, but this is basically saying the knowledge of the fact that an offer was going to be made, is insider trading. >> correct. and followed through with a tender offer, bought that's 14e-3. the duty in she when it comes to a tender offer. kayla, we don't want to get too technical. the original offer from valeant, unsolicited, not a tender offer. not saying we offer right away. they have followed through with a tender offer, which allergan reclaimed was their plan all along, and, therefore, again, this allegation. now, typically insider trading cases are brought by the s.e.c., civil here. this is civil. and/or criminally by the doj. they may be looking at this and maybe this ratchets up the heat on them to look at it more closely, but that's where you usually find these kinds of things. >> exactly what i was going to ask. why weren't re talking about the
s.e.c. in the middle of this instead of a drebt lawsuit? >> the direct lawsuit will have the effect if heard and perhaps even successful of actually being heard and done prior to when valeant might be able to succeed in its takeover, where it as if there was any s.e.c. action on this, long after allergan was already a part of valeant. >> and research and facts? >> had an opportunity to read the complaint and say this, it reads really fun. it's a fun read. i didn't bring it all down but will try and tweet it out. you'll enjoy it. >> weekend reading? >> between a billionaire hedge fund manager and valeant. good stuff. well done. >> david faber, thank you, a complicated situation. watching the markets trading lower after the dow fell more than 300 points in trading yesterday. bob pisani is on the floor with the latest. a slew of economic data. some positive. some sap the market was right
for a pullback. what do you hear? >> a lot of people waiting for the european market to close because a lot of people feel europe is a major part of the problem. look at the s&p. jobs report pretty good, actually. >> and -- bob, sorry, we have to jump in on you there. we want to move to tesla and talk about what's happening with this company after second quarter earnings, topped expectations. phil lebeau in chicago to tell us more on what we need to know on all of this now. phil? >> kelly, a nice pop for tesla this morning. stock at one point up as much as $10 a share. pulled back a little from that. clearly investors thinked what they heard on the earnings call yesterday. tesla beat the street earning 11 cents per share. 7 cents better than the estimate. revenue coming in better than expected at $858 million, and why is there so much enthusiasm this morning regarding tesla?
it has to did with its 2015 production forecast. morgan stanley out today saying these guys are 20% higher than we expected them to be. tesla is weekly production at the end of next year, 1,923 vehicles per week. that works out to a production rate of greater than 100,000 vehicles annually. by comparison, at about 800 vehicles we are week now. you can see a major ramp-up coming from the model x hits the seam pli line next year. july auto sales coming in from all automakers today. these are good number, but not quite as high as many expected. basically between 1% and 3% below the estimates. and nobody is complaining here. talk about general motors at the bottom. up 9.3% for the month of july. suv and truck sales up more than 25% in the month. turned in nice numbers there, but some people a little worried. fleet sales for the month up more than 20%. gm estimates that the july industry sales pace for the
entire industry will come in about 16.7 million xreek vehicles. hearing that from a number of people inside the industry. look how far they've come over the last four, five years. go back to 2009 and you see the sales down at 10.4 million. that's 16.7. that's basically what we're expecting for this month and for the whole year probably coming in about 16.4. that's the expectation as of now. guys, back to you. >> yeah, and phil, to have 9.4 the low end is certainly a long way from where we were. phil lebeau in chicago. thanks. the moment is finally arrived. all week asking you to vote for cnbc's tech crowd winner. the two crowd funding projects facing off this week, a smart home security system and a personal robot assistant. this week's competition's winner joins us. that's on the other side of this break. ♪ ♪
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tom of the hour from here in the new york stock exchange, the long-awaited correction starting? if so, how do you play it? spending the entire hour with us for portfolio protection. tesla beat earnings expectations and the ceo elan musk, bold predictions. the latest with morgan stanley's adam jonas el telling us live what he thinks about that stock. a huge week for ipos. that and much more at the top of the hour. see you soon on the "half time"
show. >> thanks, scott. a check on the markets. kelly watch aring the dow as its slipping into more negative territory. >> thanks. the dow jones industrial average, down almost 90 points. europe poon markets closed and hasn't stemmed the selling pressure this morning. s&p down 9, worst week in over two years. nasdaq shutting 30. talk of what's going on in portugal. if portugal has to contribute in recapitalizing this bank who else will be on the hook if needed? one source of concern this morning. >> one of many concerns, of course. we want to talk about the s&p and nasdaq, too. both are actually still up about 4% for the year. as we start the month of august. the dow turned negative yesterday but those indices are still in the green, if you're counting on a year to date basis. meanwhile, the votes tallied and the time has come to crown this week's "tech crowd" leader.
the two crowd funded projects facing off, a smart home security system called blink and personal assistant robot jibo. when it came to where you put your money, semiconductors came out on top with nearly 79% of the votes. joining us now from boston is the company's co-founder don schultzinger. good morning and congratulations. >> thank you very much. nice to be here. >> it's good to have you. media's background is in semiconductors and chips. how was that the natural segue to make a smart home security system? >> well, turns out that the products we build, semiconductor chips, are going into a number of different markets. wearable cameras, dashcams and home monitoring systems. as we sold these products to the oem channel we began to understand exactly what the requirements were, as we looked at our own requirements in our own homes and locations, we felt we had a great idea to come up with a battery-operated system
and the core technology we had been developing lent itself to these types of devices. we had an idea to create blink, the first-ever battery powered camera where the batteries last for a year. you can place it anywhere. absolutely no wires involved. you can move it around. you can put it over a door, in a bookcase. you have a total flexibilities about where to place it and how to use it. that product just didn't exist and we thought it was really an opportunity, so we decided to take it directly to the crowd funding community, because we thought we could get direct feedback from customers. lo and behold, a great success. exceeded goals, developed a great community of users out there and it's been fantastic. >> it's the battery that's made it so popular? when you priced it at $49, sold out too quickly. now raised $358,000. how many can you make and how far will this get you? >> i think the sky's the limit, really. we have through our semiconductor background, we have tremendous relationships in asia, with manufacturers and
odms. so production of these types of devices is something we're well familiar with from our long history in this industry. and i think that blink is just the beginning of a great product line we can offer to consumers, where battery operation is really critical and you have to have long-lasting batteries. >> curious how much you're doing in software. especially considering apple's ios8 includes a number of home control possibilities, android as well. are you taking add vong vantage those in rolling outside the product next year? >> absolutely. the product itself is quite easy to use. we have very straightforward modes, but the environment we work in and the internals of the device rein heally lend themselo home integration systems. android, other environments, we plan to add those capabilities in the future. right now we're focuses on
delivering blink. such a tremendous response, but we definitely are planning to integrate with third party environments. >> and don, a lot of those third parties the competition is heating up. we wish you the best of luck and congratulations again on being crowned the tech crowd leader today. >> thank you very much. appreciate being here. >> co-founder of media semiconductor. thanks very much. take a look here at mobileye shares soaring, in a difficult market. up 54% or $13 just about. a closer look at that and, of course, the broader market, still under pressure this morning. speaking of which, rick santelli, how do you say sell jaf in portuguese? >> how do you say sell-off in portuguese? oy vey! that's how we used to say it. and good technical analysis. are you haves glazes over eyes? if you are, find out exactly what i mean by that, and show up
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side of the break, contributing to some of these escalating losses mid-day in the session. certainly we will keep an eye on the markets. right now firmly into the red. the dow now down triple ditch it's. kelly? >> wow. certainly going to raise eyebrows. no snapback after yesterday. straight out to the group, craig melv melvin -- the cme group, rick santelli. >> that's the point, kelly. first of all, knock three times before we get to answer directly the linkage between stocks and fixed income market, let's look at something really easy. really easy. okay? we've talked many times that if all you did was play extreme range created by treasuries, on may 12th, the 266 high yield close other the 28th low year cloed close at 244, been easy to keep out of trouble. trading dough, trading in the range. one two, no three.
244. one, two, and now we're making another bee line. should we get a close? got to be on a close. 244 or -- lower in yield. look for some big follow-through. you know, the fact we missed it here and it was close, remember, it's not about train day. and to my point, intraday. yesterday, the intraday high yield, 261 after the early morning regarding compensation. but where did it close? 255-56. intraday moves get you in trouble. you need to have your plan and it needs to be predicated on the most efficient price. the close. the longer the period of close, the more efficient. a monthly close is much more technically significant than a daily close. as for directly what's going on? you know, we talked to ean-claude trichet. he says ridiculous lowering markets, bad news can be good, and good news bad because of the
sugarcanesian buzz banks give. obviously, that's run its course. even though the data disappointed many, it was very normal for the type of recovery we have and the normal type of recovery is disappointing hisser to historically but not recessionary. to that end the market crossed this path that that number is good enough and if janet yellen and company are true to their word with respect to normalizing policy, predicated on certain data points, which are holding true, the stock market now has to basically do it or get off the pot. why? because at these levels, nobody knows what type of an exit or how messy anything the fed does, and ending of purchases, raising of rates, is going to push stock prices. if they go lower, rates will follow them, it's the only hedge onboard. back to you. >> it could be sooner and sooner, rick. thanks soar in a as always. a quick check on the big ipo of the morning.
mobileye defirning the trade, the biggest israeli ipo in the u.s. listing hostility in israel as a risk. up 66% trading at 3882. the broader markets sliching to the down side. dow down now 1/10. more when "squawk alley" comes back. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.
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i'm seema mody with a nasdaq as session lows down 1% on the day. seeing a notable drop in old school tech stocks all pay a dividend and referred to as the value plays in tech. hp, cisco, ibm, oracle trading to the down side and weighing on the tech sector as well as the broader nasdaq. interesting, social media seen as a vol time secretator showin bit of green. earlier shares playing a big role in the outperformance of the social media index this week. kelly and team back to you. >> seema, thank you. and jon fortt, not many safe havens found here? >> no. and risky valuation stocks, gopro down more nan 14%. having trouble. >> feels people are fleeing to
treasuries for safety, though. seeing the yield on the ten year below 2.5 again. 2.49 we're seeing now. you can see the move is stark mid-day. >> this with a down near its session lows, art cashin pointing out moments ago, sliced try 1920 on the s&p things get interesting as traders look for the next level of support. hand it off to a group of them. time for the "halftime report" with scott wap nesh. >>. >> welcome. meet the players. jon najarian, and josh brown, also steph any link, and kenny and steve liesman back at cnbc headquarters. begin the conversation right now. kenny, what are we seeing in the market deteriorating a little from where we were not even 30, 40 minutes ago? >> right. understand there was a lot of technical damage yesterday. right? broke through the -d