waterloo can't beat them literally join them, jon. >> and i wouldn't ignore the data aspects of this they're a premium retarial if they can get people to pay through prime, you can correlate that >> mackie coming out on top, he's got a 27% share price surge. stays on as ceo with amazon. see what happens >> over to the half. top trade this hour, supermarket superdeal, what amazon's stunning buy of whole foods means for everyone else in that space and how it's yet another sign big tech the is taking over the world. with us today, jim, josh, jon, courtney gibb on is here, the president of loop capital. also is is ross levinson, the tech and media insider cnbc contributor as well joining us onset we begin with amazon's deal for whole foods.

nearly $14 billion both stocks on the move. ross, what do you make of this >> there was a swerve over the last two days about them buying slack. which is a sass based business in the tech world. they surprised everybody and buy a physical retail e. i think about the store they opened up in seattle as a test maybe they learned something there and thought this could be a trojan horse, not just b about food, but about physical location if you think about how much data they have on all of us and what we purchase and they put a ring around the dma or the local piece and start filling those stores with more than just food, it becomes really, really interesting and scary. >> not only retarials, but is this a shot across the bough of every company not named amazon, alphabet, apple, et cetera you know where i'm going with that >> well, look, apple is one of

the most successful retarials of all time people forget that but the apple stores i think per swear foot, there's nothing else like it, including anything like whole foods, so, i think amazon has been pushing into physical retail for a while now in some cases, they're thinki i about t like a showroom for the brand. in other case, they're thinking about it like distribution to ross's point amazon's been trying to do groceries for ten years. that's not really a secret, but yeah, this is shocking to everybody. i think what ends up happening is we start to think about high, maybe the market isn't so stupid maybe some of the high multiples that people are paying for technology companies that have enormous cash positions and the guts to do new things and innovative things and spend on infrastructure, maybe those high multiples made more sense than it lookeded at the time. only cheap they focus on the top

line for 20 years. we have to think about maybe that's a model that other companies are going to start to adopt successfully >> those numbers, if you could put those back the $15.3 billion increase in market cap for amazon "today." more than they're paying in this deal it gives you an indication of how the market views this transaction. >> yeah and jeff mackie pointed out they lost 25 billion in market cap did those supermarkets that compete in the space from sprouts to krogers to supervalue target they all lost 25 billion collectively in market cap meanwhile, amazon as you say, up over 15 billion in market cap as they're spending 13 billion. i thought this was a great deal. i still believe this is a great deal i talked about the lodgistics

and layout that they want to build out and who has it already. the things that they don't have already. target has it. walmart has it a couple of other retailers has it, ross, but what i'm looking at, i thought this was a brilliant play if you just did the math, 450 store, 250 bucks a square foot, figure 40 to 50,000, they paid between 5 and 6 billion, they would have built cinder block warehouses for that. now, they have whole foods >> in upper echelon neighborhoods, let's think about where whole feoods is. where those buildings are located right now. and you know who else is getting hit right now, big pharmaceutical drug companies. you look at cvs and wall greens, there's a reason they're down today. amazon just basically put a distribution center in upper income neighborhoods to be able to distribute as well anything that they want people should really be concerned. >> just real quick, you

mentioned, such a great example. here's a company killing itself to deliver like mid single digits, you know, profit bability, earnings grous growth, give or take stock down 28% the last six months, now, it's a pe of 11 yielding 4% on a dividend that used ed to be b a small dividen. now, it's like the only reason to own the name. so, like why should an amazon or any other technology company be striving to deliver profitability? investors don't want it. nobody wants it. >> if you're sitting, if you're jeff bezos today sitting there at amazon and you just saw a $14 billion purchase yield a billion dollar increase in value, you're lick iing your chops i think this is the first of many >> what other areas, i mean, courtny aloludes to whether it' trugs or consumer staple, protector and gambles in the

world shaking in their boots today. where else should we be looking? >> they've done a fair bit of this they bought diapers. zappos >> those are billion dollar deals. >> switch. >> this is 14 billion. you think about industries that can circle around a consumer and what they do every day and they've made a nice foray into media quietly i wouldn't be surprised you know we're going to start to see a run on big acquisitions in the media space. potentially. are cars off limit >> they're doing big deals, josh, because they have to if you're dwoigoing to move theo have to take big bets. it's complimentary to what they've been trying to do and at the same time, they had to do something. another billion dollar deal -- >> with groceries, you can order anything online. no problem fresh is tougher we saw like fresh direct and you know, some of these companies

struggle because they're trying to, so amazon says the only reason people are still visiting physical grocery stores is is because they're driving by it or want the produce >> today's deal jim is the perfect answer to the question of why people have been buying this so-called fang stocks even at the elevated levels amazon gives you another smack in the face today. >> obviously, this is a turn, right, going into bricks and mortar is something they haven't really done in 20 years since they had the book distribution centers. i'm man of a certain age i remember when automateded groceries came out in the late '90s

ross, you might be -- that's the one i'm thinking of. that was billions of o dollars that was spent two things one, it was 20 years ago two, it was not amazon >> you're doubting jeff's ability -- >> no, i'm saying if anyone can do this, amazon can. but we have to be b aware that today's one day rope that this is worth 15 billi$15 billion moy now, from here, where do you go. >> actually overdone in the costcos, the targets, is it going -- >> i'm not froigoing to rush in supervalue, kroger, target, costco, dollar general, walmart. sprout, weiss, among the names on your screen here. and these are like 1% to 2 % profitability. >> every name down quite substantially. >> some are saying it's too much, judge, as far as the sell off. i don't know if anybody on the des b k is saying that, but i put my toe in the water.

>> i think costco is is too much kroger i bought that because just in the last 30 or so, they came flying in buying calls in kro r kroger, in a number of these stocks because of what was going on >> and i don't think it's a good thing -- >> i don't think anyone is thinking groceries are bad what's going to happen is you're going to see margins squeeze >> they're going to automate and get rid of workers >> they're going to spend a loft money to keep pace with arguably the most aggressive, the most capable competitor they could possibly, like who would you least rather face in any business >> you follow this argument, which is the right one to make in a couple of year, don't you get to a point where i'm being pha see shouse, one company left in the world, and before get there, you have some governmental issues. >> is it even worth considering whether a topping bid is out

there that somebody looks at this and saying we can't let this happen? like private ek quity. >> no, another publicly traded company. >> nobody can get -- they won't be able to >> not that anybody wants to get in a bid l war with jeff >> been pushing for sale for mobts. >> then you look at what's happening coming out of germany and overseas and europe. they're going to start to rethink. we want to compete exactly do they want to compete in the united states right now. >> trader joe's. >> it's a different one, but all these german companies that come in i think two brothers one owns trader joe's and the other owns -- >> what about the bigger point to be made the one being caused by the apples of the world and -- it's not just an amazon story you think about all these companies looking to disrupt traditional businesses, whether it's the automotive or apple poaching a couple of people from sony >> big deal that sort of went

unnoticed, an inside move. 100% >> they bought two of the best television producers in the world today. >> left sony sony hires tony, who's a terrific operating executive his first month on the job, he loses because his job to go in and restructure that place get costs out. really fine tune it. get it running better. apple has no such leash on it. right? it goes and probably pays a lot of money for these two producers who have done breaking bad and better call saul this is not just a toe in the water. they're not going there to do one show they've got ben silverman doing a show for them already, so they're making a move and it's a rounding error just as bezos spending 4 million on content the thing that stands out to me b about this deal that they just did is it's a little bit outside, whole noods is a little bit outside on a brand perspective from amazon in this regard

amazon has bought discount businesses diapers, zappos, to which is on the side these are things that you get great value for. great value, convenience whole foods is a high-end retailer for food. high-end products, very expensive. that's outside of what they do yet stock just explodes. >> because it's complimentary. you can buy cheerios can't buy them at whole foods. now, if i can get my fresh produce at whole foods in one of these high-end neighborhoods, couple that with what amazon has done from a product perspective -- >> i think they have regular cheerios at whole foods. >> i don't know. >> not the honey nut though. >> regular cheerios, couple that with my fresh fruit and vegetables, what he did was he created a combination that's additive versus just replacing something. i think it's incredible what

they're doing. >> how big is the entertainment industry you don't even need share. if you could have 3% market share and be sobig you have more revenue than you know what to do with, grocery stores, $800 billion industry you don't need, amazon doesn't need 20% share to be profitable. >> this is on the same day citi puts out a note that says apple for athena health, never say never. so everybody is thinking about disruptive places to look. >> that's a good -- >> mostly fa lly fang names are ones looking to do this. >> amazon is a very different company than say facebook. much more diversified. a lot of cash. a lot of liquidity that it can get when ever i wantt wants. one thing is infrastructure. could they by fedex? probably the large deliverer of products in the country. own your own air force i mean, right?

>> how about if all of these companies want to get into autonomous driving cars and build cars, why not just build a car man fufacturers then you've tensions and unions. >> still, in all of these thought experiments like athena and apple. >> apple is pretty public about wanting to own the operating for autos and maybe some component of it. i don't think they want to start manufacturing autos. >> i don't know if they do or don't. >> google's approach with waymo. google wants to be the software and possibly an uber competitor. i think google, like the all the money being made in phones is not making the phone that's fox con stuff it's operating system and services that get sold through it i think they're thinking that one. >> the drum beat of apple tesla will start again chlgt it has to now. that's the logical brand match-up

elon is thevisionary >> you think apple does something as -- >> here's a question >> elon has to be a successor. >> how does the stock react if elon musk is running apple >> it goes through the roof, right? he's a visionary >> the shorts will say now, we have a bigger target >> plays by his own rules. >> there was a lot of unusual activity in this name, just very, very quick, back in april. yep. >> pete, whole foods >> pete did it on the show talked about the unusual activity >> let's listen what he said april. >> that's a pretty violent move to the yup side, so it's interest tog see today ooefb more interesting somebody came out there, november 34 calls. 5,000 of those were bought paid a big preem yul $.40 very aggressive buying it's interesting i'm in this one. probably will be for probably one to two months. i like what's happening. it's really in play. >> you're talking abougust.

>> they bought november. but also august a couple of days either proceeding that or right after that >> november 34 >> neuberger beermen was talkin about you have to get a strategic in there or sell the company. januaa was also purshing for c e change it was out there and people were say i think it might happen. they ended up being right and got rewarded for it. >> yep take a quick break talk about snap after the break. okay we'll do that after a short break. nothing. wel meac 'lco bk. dearthere's no other way to say this. it's over. i've found a permanent escape from monotony. together, we are perfectly balanced. our senses awake. our hearts racing as one.

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minions! we're going back to villainy. [ cheering ] so, you're villains now? oh no! no. no. no. no. no. [ laughing ] [ evil chuckles ] yow! yes. despicable me 3. rated pg. second worst perform er on the dow today. matthew boss is the analyst. he joins us today for aour call of the day squl look, we upgraded nike four years ago to an overweight stocks outperformed the by 40% over that time but a number of things have changed. we're e seeing a move more from performance to lifestyle offering

now going forward, this north american marketplace is just really in a consolidation mode we think nike may be the one that faces the most disruption year to date, we've had 4,000 store closures and everybody talks about the department stores and who's exposed the most from a brandened perspective. our math is that 8 to 9% of those closures have nike product in it. a lot of changes underway. a big announcement yesterday from the company, but those are changes that are going to take time and nike is is going to have a lot of turbulence over this period. >> you mention in your note, recent field work. done by either you or your team over there or maybe collective ly what is that refer to? >> so, if you parse into the north american marketplace, nike's deaccelerated 900 basis points over the last 1200 months

versus the last four years within that, the shortfall has been wholesale so it's foot locker, dick's sporting goods, the department store channel. and that's where when we've been in the field, you're seeing a much more promotional stance in fact, nike moved off of map pricing and so in the department store, you're seeing 25% off buy one get one 50% off. the norm is now that you can get nike on discount, under armour the needing to follow suit, so you're seeing a much more promotional landscape. that's a big change in sector versus what we've seen in the past and that's to me what ties to more competition and that competition is coming into the space. because fashion is a bigger part of it and so are price points versus in the past, where it was simply performance, nike could outinnovate, outmuscle its competition. i think it's going to be harder for them to do in the next couple of years. >> it's jim.

i'm a small shareholder in nike. by saying small, i want to add to it. what you're doing today is helping me not that that's why you're doing it. but here's the question. this -- >> definitely not. carry on >> this seems to be this might be something they get through in a short period of time there are some positives here. they have an internet press ens that's growing so that the bricks and mortar exposure is less china and asia still a relati relatively part of the overall picture. any thoughts there >> no, so, you bring up a great point. the one of the things that does concern us is that international has expanded 15% on average for the past three years. going forward they cannot afford a hiccup in china or europe, which has expanded extremely again, mid teens growth in those regions. to me, the north american marketplace will be in disruption over a multiyear period

this focus on experience and service and they think they can cut their lead times in half this is what's needed. the larger will survive. nike will be a survivor. they're a good company well run i think it's going to be longer than you think the north american marketplace -- this will be a name that will be back to at some point but i don't know that it's goinggoing to be as near term. >> what about under armour i know you've spoke p about it already. is there a halo effect in any meaningful way to the warriors win ining the nba title and cury and the curry force? >> i think the bigger effect is that when nike has a cold, hard for anybody in this space to be

100% he wialthy. so i think what under armour is finding is they're needing to react. they're needing to look at the pricing and promotions that's happening. urn armor would say that apparel picked up from a promotional standpoint in the fourth quarter. those are things that under armour has to follow you're nod the leader in the space and that dwen is really what's happening here from a larger picture perspective, which then. >> matt: a carry over effect to the foot lockers of the world it's a very high degree of mix with mike. when nike is suffering through this period of softer sales, it's harder for same store sales. >> what i hear you say is that north america is much worse than you, yourself, expected it to be at this point.

we put a piece out, we talked about a 25% reduction in square footage that we thought needed to happen. with the retail real estate picture, when you dig deeper into that, the department stores need to take a 50% cut to the square foonl picture and from a branded perspective, nike has the most exposure to that. so, it's really taking the analysis that we had done more from the brick and mortar retailer and now tieing it to the brands and that's where we came out with nike having the most exposure. nike is the one. they're in the sporting, the department stores, they're everywhere >> appreciate the time you guys own this name >> nobody's happy. >> if it sneaks below, i could stom it.

this is a long-term play you know over the long-term like he admitted, nike's going to come over it it's just a matter of the time >> is there a case to be made for selling the stock today? >> i don't think so. if you're selling it, i don't think this goes below 48 >> just put the money somewhere else >> if you're a trader, definitely >> now, it's below 51. it's just a killer buy i don't think it stops on a dime earnings are coming up i think it's next week i don't feel like being a hero and guessing whether those earnings are going to be good or bad. it's the 29. >> i actually wholly disagree with the premise that it's more important to be concerned with

the distribution of the products versus the demand. demand for the products is incredible that's not changed and you know, in a lot of way -- >> sales growth is slowing ebbs and flows this has been going on for 25 years. no one should be surprised they have strong and weak quarters. bigger picture i think from nike's perspective, they've invested a lot in e commerce a lot in market an online. they were doing that before a lot of other brands, they'll figure out how to get the product to customers, whether it's through a department store or not i think within a couple of year, it's not really going b to be relevant what will be is do people want nike it's been a bad bet to say they haven't. >> that's why i like you >> let's go to commercial. >> shares of snap have fallen. maybe you guys could do a little snap chat. fallen over 40% from their all time high.

drexel hamilton though says this ipo 2.0, that's what they say this is. your chance to buy the dip brian white is the analyst behind the call, joins us live from the new york stock exchange welcome. >> hi. just going to be frank how can you urge anybody to buy this stock ahead of the lock up expiration is it a reasonable moresponsibl move >> the stock is down 42% from its peek it's back at its ipo price we've seen a lot of stocks we've covered over recent years. they start to have the lock up expectation. down 42% priced $17, i want to own it here lock up or no, i want to own it at this price. >> how much is due to fundamental expiration is the company operating well enough to get to a level you think it can

there's no guidance given. even on the call, there was no guidance given going forward we've seen a will the of innovatilot of innovation, we just saw a couple of big announcements mcdonald's is using snappily kagss to try to recruit 250,000 workers over the summer and pepsi has snap codes they're using for a promotion. >> you said it's going to grow 100%, but you're talking about a tiny base because they just started the ad biz inside of 18 months ago they're not going to grow 100 ferris in engagement metrics and definitely not in user growth. at the epd of the day, isn't that the more important thing to investors thinking thabt as you know, an investment as opposed to oh, analyst got the earnings too low this quarter like the way people think about the stock is about growth of

users, right >> well, it's a very good point. and when you look at snap, we have to remember, they're very different from the other mobile apps and social messaging a piis out there. they tap into millennials. that's a majority of their users and what advertisers are trying to reach and they're very, very difficult to reach, so when mcdonald's does this initiative, that really speaks to they want to reach these people and can't find them. >> that's what's very powerful about this the other thing is the ar tlend, it's opening up. you're going to see it on the iphone 8 the ios 11 a couple of weeks ago. they are a very early pioneer in this a rrkr trend an we're goin see more >> thanks for being here we appreciate it what do you make of this call? >> you know, i was a bull. i'd say i'm still a bull, but if you'd watched a bullfight, they come out and put lances into the

bull's neck, so i've got a few of f those in my neck. >> that suggests you're a very, very short-term bull >> no, in fact, in fact, i'm a banglade -- >> one which may be about to fall i'm in it for the long run i think i was surprised, frankly, stunned to some degree they missed the first quarter. >> shouldn't miss the first quarter. >> have a repeat of that >> in talking to advertisers, in looking at some of the metrics on app downloads, which have not been good this quarter and in talking to some in the sales community, i think the it's a rough quarter. i don't know if they're going to miss or make i think tas rough quarter. i'm in it for the long haul because even if they go back and look at facebook, go back and look at the history of facebook, it came out at 38, few months later, it was at 18. >> took three quarters >> a year later, it was at 23.

ki kids under 15, they're on musically. they're going live and doing chat on 20 different apps. >> absolutely. >> i think musically is an interesting company that won't figure out how to monotize because music in itself, we could sit here and talk about spoti fy and pandora and they just got a big partner very big partner in sirius and in turn, liberty and live nation potentially. >> but they're di veerting attention. snap chat has ageneration it' embraced it starts to look more like twitter, which is reason bable to a big group, not facebook sized group. this is not a one or two or three quarter. i'm in it. probably higher. i might buy more

they are having operational angst right now. they are not operating the way facebook operates nor should they be expected to. if you're in this thing for a short-term trade, i'd probably get out. if you believe this is meaningful to a generation, we don't talk that's it's two businesses it's a communications business and a media business >> as the only millennial sitting up here. >> you're not, i am. >> both of us. as the millennial, if you have a dollar as an advertiser, one dollar to spend, you are fot knot get ago return on that by giving it to snap chat you can give it to facebook as an advertiser, if you have a

dollar, especially with zuckerberg with his eyes squarely on this company at this point in time. he can mimic it, repeat it and give me two year, snap chat is irrelevant just going to sit around >> salad >> and cramer, he's here >> what did he say put them both op both. >> on the key, major key >> were you listening. >> i was listening to it from the car. >> you have a long-term snap bull i'll be it waivering >> he will be a long-term holder. >> the shares that come off lock

up i find that to be a debilitating thing. >> it's in two tehran chs. >> i'm not talking about a trazer i'm talking as an op ratder. i look at this business. there was a report that kim out saying only 7% marketers which is bad news on one hand and i look at the -- >> first -- i mean, i would have come up, i know a lot of companies that are making good content for snap kids love snap my problem is this class of stock, they can report whatever they want. i was with judge leo the other day, the chief justice we were talking about this notion you can do whatever you want,

judge glasscock, do whatever you want if you don't want to make money, they cannot make money they have every right no not do, do they have a right to go and buy a beer company >> it's pretty antishareholder this drex e el hamilton call that snap doubles or goes to 30 bucks, snap ipo 2.0 is is here >> going to give you an idea see there's a guy at this table. there's a guy at this table who after this conversation, if you recall, list p b, we want you to play a role of o senior statesman. and i will buy the stock >> should i pay you now? >> you think i'm kidding is. >> very vocal about that >> yes, thank you. >> management is key >> i said this couple of times ago when i was here. i said it's all about execution. now, people were racing out of facebook

in the first year. remember they were racing -- now, what mark had done and i said this three, four months ago, he had put an amazing team in place evan, give evan credit this guy has created something that even has mark zuckerberg scared >> agreed. give him that. >> he is a product whiz. he's come up with something unique he's hired people of his generation to create a problem that really resognates with people that is vastly different than i got to go smooz ad buyer, operate this thing with real mettics, hold people accountable. doesn't mean they have to -- while they're try iing to figur out an ad model, there's a company reaching millennial, has one of the best ad models you could imagine. it's called live nation and why are we wasting our time with a company at the stage where it may or may not figure it out when you have companies that

have facebook, has already figured it out, is doing incredibly well. and has the ability to disrupt everything snap chat is doing. >> facebook is a different company. look, there were a lot of people trashing yahoo! when i was there about they don't talk to, only old people use yahoo!. the truth was when you looked at the metrics in 2012, as many people of a millennial generation were on facebook. there were more millennials on facebook, but they don't engage with facebook at the time amount of time that millennials do on snap chat. so all i'm saying is if snap chat can find its operating leverage, give it some time. nobody killed mark zucker werg in the first year. the stock came down. i like this for what it means to this this generation >> i see the comparison from a

trader's point of view to snap that's the same. i think the user growth at facebook b still accelerated during that 18 month, 12 month period we'll see what the user numbers are. that's great point that said, twitter is a different company. it's a one dimensional company it really is it's done one thing. they got all excited, released a tweak to the interface yesterday which was meaningless and users killed them on it. it's a one dimensional company it's a stream and that's all they're trying get snap chat is a multidimensional xaep it's a camera company. but it's a communications device and it's a immediate can area company. >> it's true

messenger. in fewer would play the eric schmidt role, it would happen. without it, i don't want to touch it >> they have to get their narrative right. they're finding their legs i think the team did a great job getting this thing public. and i think evan -- >> i like him, too >> evan is a great product guy we'll give jeff lucas some time. they've announced a couple of ad things let people use credit cards to buy ad, they bought placed, an analytics company. but on the reverse side, i hear things coming out of there, a lot of executives leaving, a lot of turnover. they got the find their metrics they can operate the business with and that's true for everyone from uber to even facebook and facebook has a bench and a set of people that are just world class operators and i'll keep going back to that for the next year or two if you have me on again because that is how company's succeed or fail. >> i got to wrap

first couple of year, insta dpram, it was about showing people how cool you are. it's great right now, zuckerberg has it so we want more followers he has people doing with this. with d.j. would have said this, too, but he's so snap worthy >> can i put you on my story >> absolutely. better get rid of that one of my fathesources. with this 7, with the 7 listen tim, because i know the stock goes down every day. that's a guy from -- amen, brother, i like that guy with this and with with the resolution camera, with we are now in a mode of fashion show. everybody wants, no t just about showing people you're cool it's about getting you to watch me and that is brilliant. zuckerberg figured out, do a video. not saying that snap can't do it i'm saying that snap has to say you know what, we're smart, too, but what we need is a guy who can sit down with advertisers

and not be irrelevant. they are sampling. it's not going well. i'm done with you. i think twitter versus, we actually -- can we do a twitter and this is a great one. we are so lucky. twitter and snap are the same price. >> okay. which one goes to 25 first >> snap. >> no question i'm with them. >> snap would do it. >> twitter has you, no, no, which one is bigger risk i have a bilimit order for snap. we have these two huge overhangs of that. >> right >> i want to ask you this. whomts to compete with amazon. ask the same question.

who want to compete with facebook right now who want to compete >> google. >> that's it and that's it. anybody else, you better just hope they want to buy you. >> what were you saying, twitter has yahoo! problems. twitter is starting to resemble their talent drain is significant. they're trying to hire people. i know some people they're talking to they're willing to pay big number to get them 's doing everything he can to make that company run well. jack, again, two companies >> sarah can run square. look what square has done. and jack can move over the fact he's not listening to me is annoying >> that said, they've plateaued. been around for a while. they're at a number of users advertisers, the shine is off from an advertiser standpoint and they're one dimensional. just that need that's why i like snap more.

>> i think is an artificial intelligence play. a lot can be done with it. just like -- doing live nation with the artificial intelligence you see twitter now as it is i see twitter about what it could be >> very hard as we've learned very hard to change the dynamic of how people see a company. but, it gets cheaper, gets bought i've been saying that for a long time t >> i see twitter at the lows of the day and i see snap with quite -- >> rossen and snap some way, that's the only reason i can see snap spiking right now >> some of these stocks that are destroyed by the amazon move came back. before you do go, before you go, give us -- he stays, i go. >> i'm going, too. >> let me get up a little riff on this amazon

thing and how we should be thinking abt >> most disruptive thing i've seen in my career in terms of what it can do a t.o. a second because it wouldn't be if it weren't kroger call yesterday where they said all right, it's going to have to be done on price. we are going to go after the germans, we'll go after walmart. after target and did they know at moment they were going to have to compete with the behemoth and jeff bezos, first, he wanted to entertain us. then he wanted to clothe us and now, he's going to feed us prime. amazon private schome today, you get your eggs free. tomorrow, you get your milk for free you want to go walmart? uber does $3 billion a year in delivery already maybe he hooks up with lyft. are you sad? >> is the walmart customer, whole foods customer, i don't

know -- >> that was the dollar general sell off some costco were overdone >> such a big bet on food. >> it's a big country. not everyone is a prime sub. a lot of prime sub, not everyone is a costco. i feel like there's seg menation >> the deflation has hurt them so much. here's the deal. knocked down a little bit. amazon doesn't feel -- it's not like -- you brick it, it doesn't plead. poison it, it doesn't die. >> could you recommend buying cvs today if you're looking at other areas? >> yes >> why >> i don't like that managed care, but i chartabitable trust owns -- here's one this is kind of like giving right now, i'm giving the skins

the bootleg for cousins. brian corn el right now, pick up your phone, brian, list ben to e he's got to call kroger and say i'm giving you the food area i gave cvs the pharmacy, you have the food. let's go beat them let's get together let's join them. can a kid from white stone do that i think he knows how to play >> what about a topping bid? and the possibly for that. >> who can compete walmart maybe! who wants to if it's so complimentary to what amazon has by the way, do you want to grab that because i want to put in a good word. my executive producer is going to kill me jelks week is big week not unlike february 20th to february 24th the alleyed big week, the army, the air force where we did daily precision bombing of germmy. lloyd blank fine on monday and i'm just beginning a big week. it's going to be saturation daylight precision bombing of

all other net works. >>e >> latest big name tweeter lloyd blankfein. thank you. >> yes, yes. >> thank you we love when you just show up. >> i had to. you kidding me our ota at our mini camp, my coach says we got a fantastic one. >> giants -- >> have a good weekend >> really? really you think it's going to be a weekend? you're not going to work tomorrow because of amazon have a good father's day my daughter says this father's day, it's really inconvenient o a sunday, so do it monday. whatever they want love you guys. happy father's day to everybody and whatever good man >> look forward to next week >> you bet >> i'm done. you thought about running? is snap? >> i'm telling you >> that's what i wanted to talk

about. >> i got to go >> how about this pivot. amazon should go get mcgregor mayweather instead of going to cable, pit over the top direct you cut out the 50-50 split. they could make so much more sfl who wins the fight >> mayweather in seconds >> i agree i was saying three ten years in boxing, first round. >> and it's strategy and management just like -- >> fun as he was what, 15 years ago? how about yahoo!, they did own fantasy. and you knew that. it was a good demo >> lost opportunity. all right. if the snap thing happens, we'll talk first, okay all right, thank you finder's fee ross levinson, jim cramer, more ralph time after this.

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welcome back to "the halftime report. i'm jackie deangelis crude oil edging higher as the u.s. dollar is weakening a bit crude is tracking for its fourth straight week of losses. it's the longest weekly losing streak since august of 2015. jeff, should investors expect continued volatility in this space? >> we've seen an 8% drop in the vix, i do see continued

volatility next week a lot of bearish data dating back to august 2015. look at the data we've had saudi arabia next week should have a chance to combat the rhetoric maybe they talk about their exports, the u.s. imports bring that number down to get it back into range we go higher as we're tethered to $45, jackie >> you have a chart that's showing why gasoline supply may be capping crude's gains that would be different than the seasonal trends. tell us why. >> yeah, jackie, when you look at this chart, first you must realize that every half of every barrel of crude oil is refined in it gasoline you see supplies are at a five-year high at least. demand for gasoline is down 5% so jeff talks about going higher for crude oil but it's not going to happen unless gasoline demand picks up after the fourth of july >> for more futures now head to

cnbc.com you can catch our live show on tuesdays and thursdays at 1:00 p.m. eastern time. brian, i just need to know if the customer app will be live monday. can we at least analyze customer traffic? can we push the offer online? brian, i just had a quick question. brian? brian... legacy technology can handcuff any company. but "yes" is here. you're saying the new app will go live monday?! yeah. with help from hpe, we can finally work the way we want to. with the right mix of hybrid it, everything computes.

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or that you could book them right from your phone. a few weeks ago, you still didn't know if you were gonna go. now the only thing you don't know, is why it took you so long to come here. expedia. everything in one place, so you can travel the world better. i want to point out that stock right there, snap is up 3% it is off the highs of the day you probably just heard, we hope you did, ross levinson make an impassioned pitch on the long-term prospects of snap and why he is still a believer in that company that stock is one to watch today. let's do final trades. jimmy, kick us off >> merck, it's been in a down trend and i think it's going to continue there were too many competitors that came out of the conference.

>> courtney gibson bought disney is that your final trade >> it is my final trade. we have $117 price target on the name now however 11 million folks for the hang high, love the name. >> josh brown? >> krocostco >> selling putts is bullish. >> have a great weekend. >> thank you >> maybe a better one now. "power" starts now >> forget the puts on pot. a multibillion dollar merger, a deal which seems to be generating as many questions as answers. we're going to talk about all of it, plus could all of this push walmart to make a splash deal of its own? it's gone deeper online. analysts say the real fight is now on outside of that president trump in miami this hour just landed and getting ready to unveil his new cu