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tv   Squawk Alley  CNBC  June 7, 2016 11:00am-12:01pm EDT

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it is 11 a.m. on wall street, and 8:00 in sunnyvale, california, and we are on "squawk street" live. ♪ good tuesday morning, and welcome to "squawk alley." jon fortt is out, but kayla tausche is in san francisco, and here for the hour we have mike santole, and dennis berman, the financial editor at the "wall street journal," and also, joining us is lead writer at "fortune" as well. and now, verizon is looking to bid $3 billion for the yahoo!
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assets, and there is to be another round, but verizon is said to be the frontrunner. dennis, i naturally go to you fir first, and what does the size of the bid say, and any color about how this round is going? >> well, i don't know if i have a lot of color necessarily, but what is important is that there are so many moving parts, and whether it is the patent portfolio, and how the assets of yahoo! is structure and it is not the way of a straight action as we want to cover it in the press. so many moving piece, and we have to take it with a caution because the headline number may not be the thing that matters most by the board, but it is what they could fetch for the other assets and also how they structure yahoo! japan and alibaba holdings. >> and with all of that in mind, how are we supposed to judge or evaluate the process if not just on the headline number?
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>> well, we will have to wait and see what the final outcome is of course, and there are opotentially other bidders and private equity bidders, and from verizon's perspective, it is interesting how they will pair it with aol if they are the w winners of this bidding war. not that it has been that contentious of a war yet, but i think that it is interesting to have aol in terms of the ad technology, but if you have the cash for the large scale acquisition, and spin yourself into a more media company which they have said they want to do, but why go for another first-generation web portal? >> and kayla, your thoughts on that since you are out there already? h. >> well, it is clear, carl, this is an asset that verizon wants. i was at the jpmorgan conference where the ceo was presenting in a couple of investors in the meetingses said that he had a freudian slip when he talked about the other deals, and he
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said, we bought yahoo! for $4 billion and then corrected himself of aol and so clearly it is top of the mind, and mike, it come s do comes down to whether verizon thinks that they can get through with some opportunistic price on the core assets or whether there is really going to be another viable bid from the private equity or another bidder that is looking like what a strategic could bid here? >> and yes, $3 billion for the operating business of what we think of yahoo! right now, it is a lowball bid considering the multiple that verizon paid a year ago, because it was seven times cash flow for aol and $3 billion is four times what yahoo! has said it will do in the cash flow this year, and so maybe it is different assets and not the whole or maybe they think it is a tactical bid on the way to the final one. >> let me add a little bit there, carl. the most interesting scenario is
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the private equity buy, because if you are thinking of the cost that can be cut from this business and run yahoo! as a strictly cash generating machine and not so concern eded about t next pinterest, but running it for cash, i think that someone could make a killing of it just thinking of an asset wound down over time, but if verizon gets it, it is going to be integrate and a mess and two years from now, we will hear of the horrible stories of how verizon failed to integrate yahoo! and aol and the best thing is a private equity. >> and we have seen some beautiful exits in the past few months, and it would be interesting to have somebody start that. and coming up next, the via arecome hearing starts, and whether to expedite the case of the mental capacity of redstone, and before that, they took steps to make sure that they can't sell a stake in paramount as current ceo philippe dellmon
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want wanted, and we talked with faber and cramer this morning about to a lack ri -- alacrity of which redstone is working? >> well, everybody has a clock ticking in his or her head to establish on the portal or refute the claims of confidence, and also to tlart the process from the sherry redstone side which is a seemingly maneuver on the viacom management to get some value attached to the business and not necessarily be at the whim of the other process with redstone. >> thoughts out there? kayla, i will let you get the ball rolling through viacom, because we are seeing it are through the east coast lenses over here. >> well, as mike is referencing the clock ticking, before it was all of the minutia of the trust and who got what and the bylaws, but reuters today takes a step at the potential successors for
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delman, and if he gets remove and would cbs and viacom rejoin and the band get back together, and dennis, that is a deal from the days of yore. i don't know how you think that wall street would approach something like that and whether it would be on the table. >> well, wall street would be much more excited about netflix buying ooeither one of those, a we have to remember that cbs is trying to dislodge the radio unit which is interesting. so from my perspective, i think that hear the tie goes to frankly the daughter if i may say so, because sherry are redstone is in a better space than philippe daulman. >> i believe that a sell-off of the paramount pictures could make sense, because it is a lowest ranking of the majors, and they have struggled to have
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a hit. "teenag "teenaged mutant ninja turtles" has not really been a hit, and what redstone is saying or not saying, of course, nobody nose, but for the long term, you know, from the shareholders' perspective, it could be a good thing for the company right now, and looks like impossible for the moment though. >> yes. and finally, michal, your latest piece on the cover of "fortune" and how netflix became hollyw d hollywood's frenemy. you talked to hastings about the future of the group, and the up with the bails of money that the andy cohen said they would have to work with the other day, and thoughts on the piece and what we feed to know? >> well, it is a funny story, but ted sarandos said that he learned the word frenemy from
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les moonves. and so that number thrown at content is freaking everybody out, and changing how hollywood runs already. keep in mind, it is three years since netflix made the first foray into the original content with "house of cards" and the big question now is how do they do it on a global level. so far they have not proven that they can take that model and really disrupt e globally. they have over 81 million subscribers today, and 42% of the subscribers are already outside of north america, but when you are looking at the scope of where they could be and 190 countries, they are just scratching the surface. >> michal, are they striking a generational shift, too, because a lot of the content companies see netflix as a second home, and get a royalty from re-airing
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them, but then a fear of kids growing up, and the adolescents growing up only know netflix, and not the watch the content originally, and netflix is the only thing they know. >> yes, i mentioned to my kids that we were going to be watching saturday morning cartoons. and they were like, what? because you don't have a time to it, and you can watch saturday morning cartoons whenever you want to. and netflix is going to be producing 30 original shows and eight feature film, and 30 original kids' programs, and talk about the kids growing up on netflix, and hulu and amazon, absolutely, it is absolutely happening. >> and dennis, likelihood that someone else can come in here, and bust up the netflix's momentum, and take away a big piece of the sand box? >> well, a difference of the company and the stock. and on cnbc, you are interested in covering the stock. we know that they missed the new subscri
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subscriber ads by a pinch, and the stock plummets, but from the business pespective, i read are mic michal's story, and i got a out of it. >> thank you. >> and it is unstoppable, because the viewer habits are changing as she mentioned her children, and it is, but the question is if they can sustain the original programming at the cost necessary country by country by country. i mean, you have essentially created a global spanning movie and television studio that has no parallel today, so that is hard to manage over time. >> by the way, not all of the programs that are original are a hit. "house of cards" and they have their fair share of hits, but when it comes to the international programming as well, and now launching original shows in france, germany and india, and announced mexico, and we don't know how they will fare, and the whole philosophy is that you will will have
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produce locally, and one of the french speaking shows, and am i loued to say the "cow shit" on air? because that is how it is pronounced, but that is over the weekend, it was pegged as the next "house of cards." >> and simply net, the stock for cash and stock. that is the bestle value. >> thank you both for joining us today. we want to say that valeant shares are having a tough day after reporting first quarter lost, and they say a that first quarter is the second month of significant disruption are, and ralph lauren said that it will be closing some stores and slashing the guidance, because
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of months of disruption, and ralph lawrence said that it would close 50 stores and cut 8% of the workforce and unveil ing a restructuring plan to streamline the management and cut back on costs. when we come back, cnbc is rolling out the annual 50 disrupter list including those changing the economy, and one of them joining us live. and the polls are getting more attention than we have seen in the past. and another executive change at twitter and what this means as the shares are continuing to struggle. we are back in a minute.
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despite the mounting pressure, one player has closed
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a bond deal with a aaa ratings from moodys. it is one of the 2015 disruptor 50, and joanne bradford is joining us this morning. >> we are so happy to be on the list. >> we know that all tech is created equal, but it is difficult not to lump all of the companies together, so tell us how sofi is different? >> well, we have focused on a consumer set, and they are henrys, high earners and not rich yet, and people who have are hypoten shall jobs that great free cash flow, and we started off with the student loan refinancing which is a very big market, and we now have personal loans, mortgages, and we do a ton of mortgages for a lot of folks in the tech
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community and we have ra wealth product that we are innovative and excited about. and to make money is a top the thak is okay to talk about. >> and so, as far as the top tier borrowers from the top tier universities and targeted the ivy league, and solve the public ivies, because those were expected to be the borrows to pay back the loan, and able to pay back the loans the best, and how do you find the prime bor w borrower across the various products when not targeting the colleges? >> well, we have targeted the schools around the borrowers are not in college, but after college and starting to work, and say, wow, my interest rate is too high, and so we saw a guy with a sofit-shirt, and i asked him, how he was, and we send
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everybody who uses us as a t-shirt, and he says that you changed my life, because i was able to propose to my girlfriend and buy a house. so you forget that evenb with a great education and good job, but, you know, we lend to everybody who is qualified under our criteria. >> and the slogan is don't bank, but sofi and you have wealth management, mortgages and student loan re-fi, and sounds like a bank. >> it is more about the idea that you are communicating that you are a financial services company, but not like a bank, and that why we use don't bank. we like banks and i keep my money in a bank, but i compare it to you were just talking about netflix, which is who we aspire to be. we want to be different and you can't really describe it when it
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started out, and it is one product, but moves to others and amazon is like that. >> and you started as advertising and business development executive and at pinterest before coming to sofi, and how do those assets translate to the company, and what did you learn at pinterest? >> well, i have been a media ex executive most of my life and i worked ap pinterest, and microsoft, and other tech compa companiesb and i know how to use day and the a we use data everyday and now how to optimize the programming, and so i sit on the other side of the desk, because instead of selling the ads, i buy a lot, and we try to target and make them efficient and clear to people so that they understand about our products and service ares. >> we have seen your souper bow ad, and ads in times square and new york city, and thousands off people walking around in in the
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sofi shirts, and what does that become in five year sfs. >> well, you know, when i was growing up, charles schwab was the disrupt er, and american express was thet greatest brand that ever lived in the financial services category, and so to if charles schwab and american express had a baby, it would be sofi. changing jobs is one of the hardest things that you can do. and people can earn more and save more, and prosperity is coming through earning, so we have are a t lot loft oproducts. we have a product that every employer should give their employees a employer contribute plan to pay off student loan, and every employee in sofi, we pay $200 for the first company ever to execute on, that and we have partners doing that, and it is the new 401(k), and we have a very long line of partners who
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want to do that with us. so, all sorts of different products will come out are from us, and in five years we will be looking different than we do today. >> and if charles schwab and american express had a baby, both of the companies would be put on notice for sure, as they are. and joanne, thank you for talking to us, and coming on cnbc. >> thank you for having us. >> joanne bradford, coo of sofi. >> a top analyst says a sale may be inevitable. more on that when we come back.
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season one of the new digital series "binge" is streaming and it is about the revolution of how people are watching television and film and how we talk about it. here is legendary producer brian gra
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grazer. >> it is that, how do i view the water cooler moment, and is it vaporizing in the world of television? i think that it is really changing, and like it is floating in that sense. and to a water cooler moment that you are defining is that talked about thing, the twittered about thing, and our show "empire" is the most tweeted show right now in the history of television. and after h of those tweets are coming from my house. >> that is cool. >> and what happens is that you have to have a lot of anticipation to produce social media for the water kocooler thing, and i don't know if binge viewing does that, because it is doing a different thing, and as tremendous impact on the culture. and the anticipation of the cliffhangers like we did on "24" and the cliffhanger scene produces a lot of the the social pedia -- social media. >> and interesting that he
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mentioned "empire" and he said that you will be milking conversation by making people wait. and that conversation follows the talk that we had about netflix, and the amount of money they have putting out shows a season at a time, and first of all, it get ts to the paradox o the fact that you have the intent occasional viewing experience and at the same time, you will have it on demand and if you want, you can take the whole thing int at once, but in terms of feeding that from netflix point of view, they have a lot of money and willing to throw it out there, but they have to raise a lot. and so they have sold some debt and probably another deal, and probably the matter of how much do they feel they have to build the state of the originals to the satisfy the indispensability. i think that is what they want, the indispensability for the consumer. >> they know that the platform is not infinite, and we are not
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going to be subscribing to 20 of these things. >> right, but the consumer's appetite for having maximal options is huge. so in other words, you cannot watch everything that you have access to, but the idea that you can always have something to watch is a pretty valuable thing. >> and funny how we had a cable bundle too big, and now worried about being too small. >> i remember springsteen "67 channels and nothing on ". >> are you listen ing ing to th kayla. >> yes, and i am looking at the linear model of releasing something every week, and you build up the demand, but for the networks and the shows, it becomes a very luke ra aretive way to launch the new shows and thinking of the way that silicon valley was launched on the back of "game of thrones" and so you can capture the viewer there, and having a successful show like "empire" to lucrative to the network and not just the tweeting, but you are the audience sitting there, and you can program to that, too.
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>> and everybody who watches "games of thrones" knows exactly what you are talking about. and california has not been this important in an e election for a long time, and that means big money for who else? the advertise er the advertisers, and who is benefiting from the second ad blitz.
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hello, everybody, i'm sue herera, and this is the update
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at this hour. turkish president erd wan visiting those killed in a car attack. erdogan expressed condolences to the victims' families and said some patients are still in critical condition. and now, ceo barra of gm says that she is staying the course. and there is a significant increase of obesity from a decade ago, but the rates of men stabilize. childhood obesity is falling in children under 5, but rising among adolescents. 17% of all children in the u.s. are considered obesity, and there is a to toe res load by the nevada department of corrections who are released an updated photo of o.j. simpson, and the first mug shot of
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68-year-old o.j. simpson that we have seen in three years. that is the cnbc update. back downtown to carl. >> tanning you shgand th thank . and what do you have, simon hob hobbs? >> with the bounce this morning, the gdp has been are revised up for the eurozone of an annuallized growth rate of 2.2%, which is not bad, but it is likely to deteriorate from there as the inflation expectations, and there is a major rally under way in the eurozone bond market. tomorrow is the day that the european central bank is going to start buying the corporate bonds as a part of the qe 2, and the bonds have been moving in anticipation of that. and the 5.4 basis points, but we were down to the two-year chart here, and you can see the low
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there of 4.9, and bill gross said it is the short of a lifetime, and now we are back down to the levels ashsped it is a rally, with the prices higher and the yields are lower right across the eurozone. and also with the pound, the pound rocketed higher in the middle of the asian trading today, and lot of the people are saying it is a fat-fingered trade because of the size of the move that we got, and we have eroded it down, and over the week, earlier in the week, we were talking about the polls equal for the brexit vote, and the pound would fall if they were to vote to exit, and so it is now 1.45. a number of the banks are rally with what is going on in the bond market, and the italian banks are leading the group. and i want to mention royal dutch shale putting a 30% increase on the target to $4.5 billion and once they have vetted out the bgd deal, and you
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can see that oil major is substantially higher up 4%. guys, back to you. >> thank you, simon. hillary clinton is not claiming her presumptive nominee despite securing a a majority of the delegates, because she is waiting for the six primaries notably new jersey and california, and john harwood joining us on set with the latest and not the only story, but a big one. >> it is not the only one, but it is a big day for hillary clinton, and the biggest contest as you mentioned is california followed by new jersey where she hopes to formally go over the top in delegates. yesterday the a.p. called it and hillary clinton said that she simply did not want to claim that victory, because she wanted to wait for tonight, and this is with what she said last night. >> i have to tell you that according to the news, we are on the brink of a historic
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unprecedented nomination, and we still have work to do. >> yes, historic, but the first female nominee leading the major party ticket is not the story of poll fwishgs it is the fallout of donald trump's comments of judge curiel overseeing the case, and escalating comments from paul ryan who earlier said that he disagreed with paul ryan today, and today under pressure, he upped the ante. >> i disavow the comments and regret the comments that he made. i don't think -- claiming a person can't do the job because of the race is sort of like the textbook definition of a racist comment, and it should be disavowed and absolutely unacceptabl unacceptable. >> and he did have the defenders and chris christie who ran against donald trump and thrown into the lot with donald trump defended him in a news conference a moment ago. >> i know donald trump, and i have known him for 14 year, and
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donald trump is not a racist, and so, if the allegations are that he is absolute areally contrary to every experience i have had with him over the last 14 years. >> and of course, having prominent republican leaders argue about whether their the presumptive nominee is a race cyst exactly the opposite of what you want to do to begin the phase of the general election survey, and survey monkey polled this morning, and we will see the polls to see what the fa fallout is of the remarks and the turbulence generating, carl. >> it is interesting to see the speaker make those comments live, and also, our john harwood, and kayla? >> meanwhile here in california a primary has not gotten this much attention or contention in a very long time. jane wells is live in santa monica with more on that.
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jane? >> hey, kayla. one veteran told me that california has not been this important since bobby kennedy, but suddenly the 800-pound gorilla on the west coast matters. >> she understands that the country can't reach the potential unless we all do. >> what choice do californians have in this election? the biggest one of all. you have to power to choose a new direction for democratic party. >> reporter: bernie sanders has spent $1.5 million here, and hillary clinton here nearly $1 million, and i almost drove off of the road when i heard a hillary clinton ad on the radio, but she is outstanding him in monterey and there is total spending on digital is topping $1 billion for the first time up 500%, and this is in the free social media, and yet, in california's iconic in-and-out
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burger here are many of the celebrities who came out to give a concert at the greek theater, she is with us. and hollywood is feeling the bern. and get ready california for more, because donald trump thinks he might win this state. that would be the first time a republican would have won this state in decades in november. pandora is telling us that it has 10 million monthly users in california, and it is seeing the buying activity at a political level for the fall. >> thank you, jane wells. it is going to be an exciting night. and on the other side, donald trump and silicon valley having trouble with the elite troubled by a trump presidency. this is what meg whitman told us last month. >> i don't believe that a trump presidency would be good for our business and i'm where i was three months ago and i'm not
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supporting donald trump, and under no circumstances will i, because the policies around free trade will be damaging. >> and michael fernig is director of democrats for silicon valley. what do you think silicon thinks of donald trump? >> well, it is the center of stanford university and where i live, and santa clara county is looking like a clear representation statistically of california as a whole. california is 40, 45% registered democratic, and about 28% registered republican, and santa clara it is about the same, and almost the same republican and democratic, and if you are talking to the people, it is two
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for one or better for the democratic versus trump, and no circumstance in which trump will carry california. that is bunk. however, however, there are a lot of people around here who are republicans and 25% of the people around here are republicans, and tend to look like reps in other business oriented climates and the libertarian oriented climates, and they tend to think of republican party as pro business and in some cases, rational people thinking people think of tr trump as business people. and they are not attracted to the democrats, but they are not attracted to trump's bigotry and the comments about the muslims or the mexicans or the women, and that the really perturbs them, and the one thing around silicon valley, at least finally we have a republican national candidate who is not a bigot in the case of homosexuality, and that is at least one place of relief for people around here.
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>> understood. so when trump says he can put california in play, is that a reasonable possibility? >> trump says a lot of totally ridiculous stuff, and the answer is no. no chance. no statistical chance uner in any circumstance in the universe in which donald trump is going to win california, full stop, i am on the record. >> and in other states he has done well. >> well, against other republicans, and california is a deeply blue state, and so california could more easily go for ben bernanke than donald trump. i come from the lefty jewish household, so i understand and recognize ben bernanke, and he is like my dad's crazy uncle from brooklyn and nobody around here is enthusiastic about clinton and that is the gap. most of the fund-raisers that i get invited to and i have not been to them, but the e-mail threads they get if i am one person who is at least representative, hey, let's rally
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around hillary and stop trump, and it is more about anti-trump than hillary. some of us believe she is a good president, but not a great campaigner. she probably doesn't believe she is a great campaigner, and her husband with all of the sex and the fun, and a much better campaign campaigner, and -- >> are let me ask you this, because just because california is tonight, how complicating is it and not that you are a political analyst, but how complicating that sanders does take it away from clinton? >> well, it is complicated and it is a diffusing message, because there is a left wing that is the left hand of the democratic party and a lump of them who want ben bernanke to continue. i hope he doesn't continue. he is going to be losing, and he is not the nominee, and that is settled. if you cast your mind back, and if you are a left of scenter person as i am, and you cast your mind back to 2000 and say,
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hey, look, certain people who supported nader, because al gore and george w. bush were the same creature, you now realize how wrong that is and we would not be in iraq if al gore were president, and you cannot say that al gore and george w. bush is the same person, and the same lunatic fringe is accusing hillary clinton and the republican party as the same creature, and sewer shoo, you can say that you can compare hillary clinton and ben bernanke and not the same as trump, and i wish they would shut the hell continue, because that is the race we have trump or clinton and may the best woman win. which ever one of them is a woman, i don't know. which ever one is a woman, i want that person to win. >> all right. ath least you are honest about it. >> i am. >> and thank you, michael. another look at the markets and hitting 18k for the first time
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since april today, and first, rick santelli, what are you watching? >> well, carl, i'm watching the equities market and paying close attention to the nasdaq and the run for 5000 and considering that we closed above that last year, we have all three indices in the black for first time. what does that mean for the fixed income market, and the fed? we will talk about that after the break.
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coming up here on the "halftime report" is it time to sell or buy-in. and today, some sector hit the skid skids and what to do. and investing in yourself, and dr. deepak chopra who turned wellness into a thriving empire is going to join us live. he will be on set with us live, in a half hour or so. >> thank you, scott. and now, over to the stock exchange with rick santelli. >> most traders had the right positions, and they were pr probably longer equities at the lower prices, and had different yield trades on, and no matter
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how you slice it, the minutes are not adding up as time passes. there have been some data point, and the fed like s s to come ba to the well worn shoe of the data-depende data-dependent, but if you are tracking it and objective over the last several year, it is not going to hold water, and the fed is out of face with the sustainable strength with the e kcon conmy, and out of kilter with the current glide trap, and all of that is against the ticking clock as to the expansion going around the globe. but as much as we talk about all of those issues, the fact that just seven or eight or nine pages out of 200 pages of the y minutes for our perusal is that we cannot imagine the pressure behind the scenes. if our central bank decides to pull out and go to a different policy way, it will trigger
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things around the globe. be real. look at china and the shadow banking system that has quadrupled since the crisis, and looking at everything around us, and take copper and a big move in copper, and part of the story is going back to china. a month or two months ago, there was a rebar glutton story out of china, and the traders here were talking about that affected the grain prices and how if funds traded at that point and my question was why. they said basically at this point in the time, much of the commodity-priced structure is done in china and china does not play by rules. they have used inventories in the past as collateral on loerngs and when the commodity markets fell, the collaterals went sour, and attributed to the ip ven toir the accumulation over there, and the emerging markets and the japan, and toyota motor to dday is going t
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have 186 million of debt, and $20 billion yen, and it is going to be a 0.001%, and how can that be good? as the nasdaq is up to 5,000, and the interest rates are lower than the end of last yee, one can only think that if the credit market is going to be paying attention, pay attention to the credit market and we will have a close above 5k, because the guess is to have an immediate response, and back to you, carl. >> thank you, rick. disrupting the interior design space, and after the break, number 11 on the cnbc disruptor list. in.
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cnbc is unveiling the 50 disruptor list featuring the most disruptive and private companies. this is the most competitive selection process yet. and julia boorstin is going to join us by our headquarters in palo alto with the company's co-founder and ceo. hey, julia? >> yes, carl. it is fun to be here at the head quarters f quarters for h.o.w. and you said that you didn't have any competitors, but who
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are the giants in design space that you are trying to disrupt? >> well, this is a space for the industry that didn't exist before when you think of the renovation process before us they would go to the friends and the neighbors to ask for referrals and bought books and magazines to see some picture, and they bought products from the local stores, but they don't have one destination to see the technology around the world. and so professionals around the world, and 40 million images with the data from all over the world, and the access to products with 5 million of them are available on houzz directly, and so it has created and defined a new space. >> and there are a number of companies trying to move in, and dwell, and port and even pinterest is moving more into the space, and how do you make sure that your customers stay on houzz instead of elsewhere? >>le with, the useers realize,
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all of them in the community, that houzz is a unique place, and the only one that provides an end to end destination, and you can come to get the inspiration, the education, and you can read the articles coming from the professionals in the industry, industry, and the architects and the designers and the contractors and so on and go on to buy everything that you see, and hire the service providers that you interact with. the community definitely devotes to that and the fact that we have built an ecosystem based on what these players wanted helped to get to the $40 million. >> those retail sales are a big part of the business in the last 18 months since you launch ed them, but what about amazon? it is a big threat to the retail business and what about you? >> well, it is going back to the destination, and remodeling as a homeowner, you want to make sure that you get the ideas and see the pictures and the right
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peopl people, and you consult with them, and then go to hire them, and then you will get everything that you see in the pictures because you have learned about it. when we release more technology, we will see the increase in the engagement going up. in february, we released the view in my room app, and 50% of the people that bought product from the app viewed it in the room before. so five increasingly engagement, and we have the users telling us how much they love it. >> and so they are just testing it out, and in terms of the ipo market, it is big, and rate of return over $2 million, abilliot do you do about the big exit of the no ipos. sgland someone told us one of the entrepreneurs that we consulted with before we turned it into the business and don't enter it if you want to exit it.
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that is so right. houzz is a journey and we don't want to exit it. so exit does not exist for me. ipo is not a milestone, but it is fund-raising, and you can fund raise in the private market and the public market, and is that a milestone? no, it is not. the goal is to completely disare rupt the industry all over the world, and growing the community and building the technology, and the rest is just not a part of it. >> thank you so much. back to you. >> than you, julia. more disruption on the way coming up in the half, and more about how we chose the 2016 disruptors with special guest david martin out of m cam international, one of the original partners for the disrupt 50. and now, a major shuffle at twitter, and replacing the products again, and what that means in a moment.
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stronger and the oil prices are higher and the energy stocks are higher and that is what is getting us in the firm places as we grind higher. >> and people are talking about the resistance of where we are? >> yes, a ton of it at the 100 at the s&p 500, and so interesting stuff today, too, when you have gone this long without a new high, it is good ne news. >> yes, a good note. nice to see you as well, and now back to post nine and the half. ♪ all right. guys, thank you so much. welcome to the post nine. i'm scott wapner, and the march to the all-tie highs and are we ready for another breakout? with us for the hour, pete najarian, and stephen weiss, and josh brown and sarat matee. the feds are


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