tv Squawk Alley CNBC June 20, 2016 11:00am-12:01pm EDT
disney headquarters in burbank, california. "squawk alley" is live. happy monday. kayla tausche is live from the cannes lions international film festival in france. here for the hour kelly evans. >> not in front of the ocean, though. beautiful shot. >> joining us re/code managing editor and cofounder of confide. our top story this morning, a rally under way on wall street on news of british exit from the european union is becoming less and less likely.
bob pisani is standing by with more. bob? >> we gapped up about 1% on the s&p at the open and we have stayed up. let's call it steady as she goes. the same situation in europe. germany will close in about a half hour. let me show you how ger germany has been trading throughout the kay. the whole european system up 3% to 4%. half an hour left to german trading here. in the u.s. 5 to 1 advancing to declining stocks. it's been that way throughout the day. take a look at the markets in the middle of the day. banks leading as we got the ten-year yields moving to the upside. tech and energy also strong. the dollar has been weaker. oil is up. health care also leading. take a look at the big banks. remember, even here in the u.s. banks are down for the month. it's been rough with the low yields we have been dealing with. but nice bounces back here, 2% and 3% in all of our group. defensive names, we saw utilities and telecom rally in the last few weeks. those are modest losers today. not surprisingly somewhat overbought, shall we say, in the
current environment. finally, want to note the vix hit 22 the fear index hit 22 back on thursday and that's now essentially reversed. we have come almost round trip here with the vix sitting near 17. was over 16 a short while ago. so important thing here is we were at 2050 on the s&p on thursday. we are knocking on the door of 2100, a 50-point move in less than two days. quite a move quite a move in just two days. >> indeed it is. thanks. a wild weekend for disney. a wet wild weekend, i should say. the company is setting a box office weekend record with "finding dory" bringing in $136 million in the u.s. and canada alone and millions tuning in for last night's game seven thriller to watch lebron james take the title to cleveland. this is the highest rated nba final since 1998. a finals i remember well. i was a senior in college. michael jordan and the bulls.
there will be lots of debates about lebron's greatness from here on out, but not a lot of debate about the great weekend disney had. what does it mean that they can turn in these kind of ratings and this kind of movie performance at the same time? >> traditional media works. people still want to go to theaters and watch live television. all this sort of doom and gloom around cinema sales not working and people cutting the cord this is one of those bright spots. i think it's a nice take-away. the other thing for me when i was watching the game the first thing i did was log on to twitter and see what people are saying, do my own little thing. there's a tack on there that hasn't been made clear in terms of opportunities for twitter or facebook or whatever it might be. >> does this make sort of social media and mobile a sidecar to the traditional media main event? >> i don't think so. i think it actually contributes to it. ed talked about twitter while watching the game. if you look at the dory numbers, it has 25 million facebook followers, more than mickey
minnie or any other disney character. you could say it dwarfs other disney characters. i'll be here all week. >> this reiterates the case for tv but espn is hawking the fact that 96 million minutes were streamed, they had almost 600,000 viewers per minute on the digital platform the watch espn app. what does it mean that people are increasingly watching the games through that app as opposed to the traditional way? >> i think this whole concept which has been around for years and years now is finally becoming part of the mainstream business sort of strategy. they want to make sure -- it was always hard to get. you had to authenticate in really weird ways. it's still not easy but they are making it easy therefore the audience is coming. anyone who doesn't have traditional cable or is thinking about getting smaller bundles, the point is we want to be there for you. espn we want to be where all these sort of people are online and i think it's happening. >> is this good news for twitter
considering the nfl deal they have got coming? people clearly want to watch this stuff. they want to be online they want to be social while they're watching. is there an opportunity for twitter if they can figure out the right way to merge those two? >> 100%. i love that they have the actual rights to the nfl. i think if they can really be the supplement to television that they should be they are the live social media television is becoming the live events whether they are the aacademy awards or tonys or sporting events, that's where magic happens. if twitter can morph those two it could be powerful. >> the journal did a lengthy profile about marissa myer at yahoo!. you mentioned this deal twitter has made for the nfl. is there a price too high to pay, yahoo! in part was criticized for how high it paid to air an nfl game. is it worth it for some of these
companies who need to stay focused on making sure their core metrics are working? >> there is but there are so man things to factor in. the game itself the lead-in to the other programming, also your ability to promote other programs on the network. actually, if you look at jimmy kimmel which was after the game last night, it had the highest rating ever in the history of the show 4.8 million viewers. that just shows the power of a lead-in and that you have to factor that into the calculation. >> ultimately it's about live. thaps that's the key thing. advertisers love to spend on television because of the live audience. that's what twitter and facebook are trying to emphasize they have as well. >> facebook's annual shareholder meeting is coming up in a couple hours. what is up for debate what can we expect? let's use julia borson who joins us from redwood city california, where the meeting will take place in about three hours. >> reporter: that's right. on the agenda at facebook's
annual shareholder meeting is re-electing all of facebook's board and adopting a new class of shares to allow mark zuckerberg as long as he's running the company to maintain his voting control. the introduction of new c-class shares, he would maintain control as he slowly sells shares to fund his charitable initiative and the company makes acquisitions or gives shares to employees. since he controls about 60% of the voting shares at facebook, what he wants,get. this despite facebook's soaring stock, up about 40% in the past year. not all shareholders are so happy with zuckerberg's plan. iss and glass-lewis impose the establishment of a new class of non-voting stock and both firms also object to the re-election of certain board members. iss only approves of hastings and teal saying other board members support the new share structure. northstar asset management has also come out against the multiple classes of shares saying that the structure quote,
the shareholders who own the most stock outsiders have no say in issues affecting the company. we will have to see if any shareholders bring up the recent controversy but board member peter teale backing a lawsuit against gawker that sheryl sandberg told me she and the company support his role on the board. >> we also have to talk about facebook's push into live streaming. variety reporting the company will stream a live production of disney's "newsies" next week. the show will last about 20 minutes. it's the first major production house to choose facebook live for a musical. about 50 million people subscribe to disney's facebook page. i suppose disney is hoping to pick up a few more subscribers with a move like this. it's described as a way to try to get people to come see the musical. >> what are the newsies? >> newsies? what are they? >> you don't know the newsies? >> i have no idea what they are. >> disney film about turn of the
century newsboys selling newspapers on the streets in the city. >> where you been? >> i know. i haven't seen "hamilton." "beautiful" by carole king is wonderful. >> facebook are really courting their creators. they want live to work for them so they are getting celebrities now, big media companies to be involved and also publishers use the live product as a way to [ inaudible ]. i think the other side to this is at what point does this turn into another carriage deal like the way cable works. got live video, i'm producing it, what do i get from you in exchange aside from this is a new experimental thing we want to make sure we are hitting the audience. >> kayla? >> it's pretty obvious that disney is cherry-picking one of its properties that has i guess the best cult following. kelly aside, i grew up on newsies and i think many people in my generation remember newsies. i saw it on broadway i still listen to the sound track on on
demand, when you need a pick-me-up, the songs are so uplifting. it's a phenomenal musical, but there are a lot of people who have become disenchanted by facebook who maybe are disillusioned by the fact their parents, relatives, facebook is aging in a sense. that would be drawn back to the platform because this is something from their childhood that they want to participate in. >> wow. rubbing the cultural relevance in your face. >> i'm a classic counter indicator. watch out. i'm wearing apple watch right now. this is an interesting point, also because is this all about trying to find the passionate people who will follow that content and then knowing you can kind of immediately maybe get those people on to the platform? >> yeah. i think it makes a ton of sense for millenials to bring them back into facebook as a passionate audience. i think we will see a lot more of this to come. >> before we head to break, we want to talk about what is going on in cannes.
you have that international film festival there. of course there's lots more going on. you will bring a number of guests. kayla? >> jon, it is such a phenomenal conversation that is happening here at cannes. if you have a business that marginally touches the advertising industry chances are you are here. this is where everybody in technology, advertising media, as these worlds converge are meeting together. while publicly it markets itself as a conference it's really about the back room deals, the meetings these partners take the deals they hammer out behind closed doors, and there are a lot of them. i'm told that you could see some announcements from can nes here this week. that's why twitter, google facebook, hulu, spotify, microsoft, pinterest, the list goes on and on for companies putting their stamp on here. even anna wintor is here. meanwhile, we caught up with
media executives earlier today, trying to get their thoughts on the big conversations and the hot topics here. >> i'm here because everybody else is here. everybody in media and advertisingadvertise ing is here and i like to say you can get 30 mediums in three days that it would take you three months to get set up in new york. >> it began as a play ground for creatives. then the media folks showed up. then the clients showed up. then the technology companies showed up. now the broadcast and traditional cable companies are showing up. the large print players are all here. it's -- everyone's here now. >> i think messaging platform will be one of the breakthroughs in terms of all media this year. everybody's going to go on to messaging which will drive it. >> so messaging, virtual reality, live video. those are the three big topics that everybody is talking about. that's what a lot of the panels center on and that's what a lot of the conversations are centering on as well.
we will talk to a representative of vox later on as west as tim westergren. if this were a postcard it would say wish you were here. that's the only thing that's missing. >> except i'm sure you're glad to be there with us or without. looking forward to the great coverage coming from you. ed lee, john broad, thanks for being with us on "squawk alley." still to come linkedin launching its first list ranking top companies in the world where people want to work. you'll never guess who is at number one. plus a cnbc exclusive. pandora's cofounder sits down with kayla tausche later this hour. he talks about how he is taking on spotify and apple. and it is green across the board in the markets today. u.s. stocks up triple digits. the dow up 228 points as we head to break. new polls saying the uk now less likely to leave the euro zone. investors are cheering that news.
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the list of top attractors was built on hard data so billions of actions of linkedin's more than 430 million members. not surveys. so these are the companies that job seekers are clicking on and according to this list they are most interested in the cream of the crop the biggest and the most buzzy names in the tech world. in the u.s. google is number one. that may or may not be a surprise. but it's followed by sales force, facebook and amazon. besides all being big tech heavyweights they also have a few other things in common like some of the most recognizable ceos in the world. larry page mark zuckerberg jeff bezos, the names that dominate the top of the list. that perhaps suggests that people appreciate founders that stay with and grow their companies. another thing that the top attractors have in common they are appreciated by the market as well as the work force. over the last five years, take a look at those numbers. the top five have all at least doubled their share prices.
amazon has nearly tripled, now compare that to the s&p return over the same period of about 65%. bottom line here is that the top attractors are also top performers. that pattern, it also holds when it comes to a lot of the non-tech names in that list. under armour has notably more than tripled its share price over the last five years. far outpacing rival nike who by the way, was not on this list. starbucks is another example. the ceo and market darling over the longer term. so there are some interesting exceptions and we will get into those later in the day as we continue to digest this list and lo at where people most want to work. there you have it. these are based on clicks not surveys, not asking people where they want to work. based on what people are actually looking at on linkedin. >> really interesting stuff. especially sales force, given that its market cap is around $55 million. smaller certainly than a lot of the other tech giants. thank you for that report.
>> they always say flows follow performance in these markets. apparently people follow performance, too. coming up we are keeping you up to speed on this morning's triple digit rally in the dow. the dow is up off its highs but still up 227 points the nasdaq also the strongest performer in the group with just two hours into the trading day. later, a cnbc exclusive with pandora founder and ceo tim westergren live from the cannes lions ad festival in france. at angie's list, we guarantee a fair price, quality service, and that what goes down doesn't always come back up. [ toilet flushes ] so when you need a plumber we can help you get the job done right, guaranteed. get started today at angie's list.
what do you get out of this festival? >> first of all, there's so many people who we work with who are here. it's kind of one-stop shopping for meeting with people for the first time and meeting with a whole lot of friends and partners who we have seen year after year. >> what gets done though? >> drink a lot of rose. we get a lot of work done too. sometimes it's just to catch you and get up to speed on what everyone's been doing. sometimes we do business deals, we form partnerships announce partnerships. it's great. everyone's here. you have to be here. >> you were telling us that you are having conversations with all of the over the top platforms trying to find new ways to not only promote vox content but figure out new content that you can deliver. how are those conversations going? what should we expect? >> at vox media we are building brands like curb and re/code and the verge and sb nation, eight in total. they are full media brands. we started off on the web and now the big push is video. we are distributing video and creating video for all sorts of platforms, youtube, facebook
snapchat. but we are not limiting ourselves. we are going to ott, too. we have a great partnership with nbc universal and are doing great things with them. we announced a partnership with a & e networks and their fyi brand with our curb brand, and we are talking to the others too. we won't announce anything here unfortunately, but we have got a lot of things in the pipeline. >> snapchat facebook twitter, those companies like to tout live, now. the only place that you can do it. but which of those platforms do you actually find to be the most beneficial for what you're doing? >> we have seen some really big numbers both on facebook and on snapchat but i would still characterize it as the experimental phase where we are trying to figure it out. we have had some big success with the filibuster last week for instance. our vox.com brand had hundreds of thousands of people enjoying this live experience together and you can see the power in that. but to say that anyone has figured it out the way you have figured out how to do live
programming on your linear network -- >> still learning. >> still learning. it's a great learning experiment. you can really see the potential because people can come together, they can talk with friends about what they are seeing, view it together and have a really interactive experience. we have a long way to go to figure it out. >> on the journalism side lot of news organizations are figuring out how to cover donald trump, the presumptive nominee. credentials getting revoked. now he might start his own news network. how do you tell your troops this is our strategy this is how we cover the election? >> it's interesting. we started out in sports at a time that sports media was changing and we didn't have credentials. then we determined we actually didn't want credentials because it gave us a certain ability to tell the story without being beholden to the people handing out the credentials. we are not credentialed by donald trump's organization either and we have access to events we can tell the stories. so it's interesting, because as time goes on we are credentialed at other things and
it's interesting to see who is willing to give access and who isn't and what it means. i think more access the better. if you have a story you want to get out, of course you will give access. >> one of the big conversations in the media world is about what happens to viacom. there was a blockbuster interview in "fortune" where the current ceo, don't know for how much longer said we were the first to put our content on mobile in a significant way. we are in conversations with the digital players, working to revolutionize measurement of that audience. he's trying to dispel the notion they are not a digital company, they didn't go there. is it enough just to have conversations? what makes a successful digital company? is viacom one? >> there are a lot of great people i know and work with at viacom. they are really trying to do great things but any organization that's in such turmoil at the top even a smaller organization like ours if i were unable to guide the company to focus on the company day in day out, it's going to
have trouble. the talented people who work for me won't have the direction they need. so it's clear right now that it's hard to innovate in such a dynamic space where things are changing all the time even when you do have stability at the top. they don't, they will be suffering until they figure it out. >> always great to get your perspective on this landscape. don't work too hard this week. >> hope to see you out on a yacht. >> no promises. we actually have work to do. jim bankoff from vox media. back to you. >> you could do it on the deck of the yacht. thank you, kayla. also on "squawk alley," after a rough week in the polls, donald trump is making big changes to his staff, parting ways with one controversial campaign manager. plus our coverage of the ad festival continues. kayla has one-on-one interviews coming up you don't want to miss. t the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay.
here's your cnbc news update at this hour. iranian state tv reporting that intelligence officials have broken up the biggest terrorist plot to ever target tehran. several suspects have been arrested and are under interrogation after agents seized ammunition and bombs. they were not identified. indonesian search and rescue teams raced to rescue victims of landslides and flash floods caused by torrential rains over the weekend that killed nearly 50 people. and left many missing. they used bulldozers to clear debris.
donald trump has dumped his campaign manager, cory lewandowski, following a stretch marked by missteps and in-fighting. the move comes as trump faces continued resistance from many quarters of his party over his contentious statements. hot, dry conditions continue to fuel a wildfire burning along the u.s./mexico border. it's consumed some 1500 acres and is only 5% contained. it comes during a record-breaking heat wave across san diego county. that's our cnbc news update for this hour. let's get back to "squawk alley." european markets just closed moments ago. boy, you think we got a rally going here. over there, something else. >> yep. maj the polls in the uk for thursday's vote on the european union membership are still too close to call but it appears to investors if you look at the price action that the leave campaign is losing momentum. you are up over 3% for the
market overall. we have not had a day like this since august of last year and in particular sterling which of course has moved on sentiment and on the polls, the uk pound has also rocked higher. what's interesting is during the course of the session, as you saw buying sucked in more and more buying and that is certainly true of the uk pound. house builders during the course of the session have also moved higher. what's interesting is the way in which some of the office property stocks in london who arguably most are at risk if people were to vote to leave the european union, these big landowners have done wring the course of the session and the asset managers if you have a fear that perhaps you were going to get outflows from stocks in the uk in general because of chaos after thursday now perhaps you are calming some of those fears and these guys are rocking higher as you can see. travel stocks, a lot of people might be delaying travel because of the euro soccer championships. they are looking to get their bookings. they, too, have rocked higher
during the course of the session. the uk banks have also done well today, perhaps not surprisingly. if you just look i mean if you look at the move on for example lloyd's which was up 10% some moments ago, you are talking about creating $5 billion or $6 billion of value on just today's move. a lot of wealth is currently being created in the market on this perception of just the polls and europe has followed suit notably the big european banks and insurors have caught this london rally because not only of course have you got the stocks rising but also the bonds are beginning to bottom on the yields as a feeling that perhaps now or today was a day to take risk on. back to you. >> thank you simon. that rally overseas is sparking a rally at home. the dow up more than 219 points. let's bring in the market strategist at pimco with more on how to invest in uncertain times. they are always uncertain, right? >> there is always uncertainty. >> what are you telling people?
it's interesting we are so eager to discount a disaster last week when it seemed like the leave camp was gaining momentum. now the flipside of the coin. are we overcorrecting in either direction here? >> since markets looking at equities globally are where they were a week ago, really haven't moved down much on this idea of brexit. you could probably say they are pretty fairly valued now. there's still a lot of anxiety. you see this in options pricings, for example. in the credit markets, there are players out globally looking to pay very high insurance premiums to guard against the risk of wider credit spreads. it's very high relative to the actual volatility that is likely to be seen in markets over time. so it suggests using this as perhaps a means to get into assets because these days it's hard to find assets that are mispriced. when they become removed from fundamentals and you get things like that you could argue off the past week there was mispricing relative to fundamentals in credit and equities, that's the time to step in to build alpha because playing the beta game simply
tacking on passively on to equities and bonds, isn't the way to play anymore. you have to be on your toes. >> is the bigger distortion from the negative and low interest rates which are part of this whole story, right, there's been a flight to safety and concerns about the breakup about the european union or the exit of britain, everybody is piling into safe havens. there was a great column over the weekend which said look people are discounting stocks the prices of a lot of these different assets based on incredibly low interest rates and probably not even using rates as low as they currently are today. how much of a distortion is responsible for the rates? >> this is as it should be. markets certainly project for the ecb its policy rate will probably be zero in 2020. same for japan. for the u.s. maybe the fed will get its rate into the 2s or so. equities and the support from low rates likely to persist. it's all a matter of whether the glue that really keeps together economic growth is sustained. that's the cash flow equity and
bond investors need to feel confident in holding the asset. we think they will keep the game going, central banks, and support the asset prices and there is still confidence left even though it's waning somewhat. >> how much do you factor in the likelihood of m & a? we just had the announcement of the expected deal between microsoft and linkedin microsoft purchasing linkedin linkedin of course up on that. so is zillow group. amd has been doing well on expectations that it could turn things around. yelp is up that. had been sort of left for dead. that's one of the stocks people expect might get picked up if there's a spree. how does that factor in? >> financial innovation this sort of thing, it's probably going to persist as a force supporting m & a for a little while. it's becoming difficult to grow organically so companies are looking for different solutions. we would expect this to persist
for a little while. >> does that mean that the u.s. kind of wins either way, either there's a flight to safety that's kind of underpinning the markets or just has the best growth prospects, or do you start wading into some of the beaten down european markets? >> you mentioned central banks. the story is stable but fragile and secure. this is a time for wanting to have assets that bend but not break in case the stress scenarios that many point to brexit, problems in china, central banks losing efficacy in case they play out. it's a three-pronged approach. preservation of capital should be first and foremost for a bond investor. this means guarding against the low to negative yielding bonds, for example. moving up in the capital structure, being more senior in terms of bond holding. secondly, being good stewards of the capital market looking for complexity, shopping all the aisles of the $100 trillion global supermarket of bonds and
being liquidity providers, not takers. finally, watch, things could go well so you want tips which are guarding against low levels of inflation and of course, there's a chance for higher rates. >> you want palm trees, not pine trees. you want the ones that will bend. >> this time of year especially. >> good to see you, tony. up next our coverage in france continues. kayla is still out there. >> coming up more from the french riviera, including tim westergren, after this.
we'll have the very latest on where brexit polling stands days ahead of that historic vote as markets rally around the world. plus why one analyst just took the axe to netflix's price target. as mark zuckerberg meedzts shareholders today we will tell you whether the stock is worth buying or not. that's straight ahead at the top of the hour. now to kelly evans. >> scott, thank you. see you soon. markets are still up sharply here. stocks are rallying ahead of this vote this week about britain leaving the eu. let's bring in the director of floor operations. you said watch oil and the 2100 line on the s&p. >> we got to 2100. that's so far where they stopped for today. they are actually in the middle of a little bit of resistance band between 2097 and 2103 and i think we are going to be very
interested to see what the market does now that europe has closed. will it continue to concentrate primarily on oil or will it begin to have some second thoughts. now, it's a little deceptive, the brexit vote because in honor of the assassination they suspended all campaigning. the fact the remain picked up strength on the assassination of a pro-remain member of parliament makes some sense. you can see some empathy there. i would like to see what the polls look like by wednesday had the campaigning starts again. critically, we have janet yellen tomorrow. she's got a fed that has lost a great deal of credibility here and it's going to be critical to see and i think we will know early. if she's going to address that she's pretty much going to have to do it in prepared testimony. so we will know in the first ten minutes or so. >> how confident are you that the polls we see on wednesday
are going to reflect any sentiment beyond what we saw right after the unfortunate association -- assassination of jo cox? will there have been enough time for any sort of rebalancing in opinion to have occurred? >> i think there will. i think the two days or two and a half days that they suspended campaigning worked in favor were not heavily campaigning all the media outlets in talking about her demise mentioned she was a strong proponent of remain. that would extract a kind of empathetic feel from the voters i think. secondarily, the prime minister while he didn't campaign managed to tweet a connection to some of jo cox's positions on remaining. i think to put it on a more level playing field we'll know by wednesday. >> you mentioned janet yellen and her testimony. we will hear from her twice this week before each house of
congress, i guess. this vote on thursday is part of the reason why i guess they paused, they didn't do anything last week when a couple weeks before that it seemed as though they would be raising interest rates after all. >> that's why i expected one of the senators tomorrow will say okay, chairman yellen tell us if the british people vote to remain on thursday how high does that lift the chance of a rate move. it will be a very specific question. we will see if she gives it a specific answer. >> you think that's partly why they have lost credibility here because they sort of sent markets up and everybody up for another rate hike and now you have folks saying maybe there's not going to be another one, period? >> they have been all over the lot. predictions of economic changes have been dead wrong. they missed by a mile. they really lost credibility. the flip-flopping, you see mr. bullard of the st. louis fed who was a nominal hawk is now talking about one rate hike between now and the end of 2018.
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coverage of the cannes lions festival from the french riviera. pandora has a turn-around effort under way. the company also just being named to the 40 most attractive employers in america per linkedin. joining us exclusively is the ceo of pandora, tim westergren. when you were on our show last year, you were here as more of a founder, brand ambassador type. now you are ceo again. how does that change the conversation? >> i haven't been far from the company. i have been very closely involved all along. been on the board, part of the management team. i'm very excited to be back in the seat. i know this company like the back of my hand. i know the ecosystem around it. we have a very aggressive strategy ahead of us and lots to do but feel good about it. >> how are you prioritizing the companies and advertising partners you meet with this week based on where you think pandora needs to grow? >> this is the biggest ad conference of the year pretty much all our clients and agency partners are here. really for us it's focusing on a theme.
we call it the attention economy. it's about time and attention. we got time on pandora. we stream more hours of music every week than youtube streams video. the next step is how do you qualify those people and get them in front of the right brand. that's where our focus is. a couple weeks ago we announced a new product called the visual ad experience about optimizing essentially taking advantage of all this engagement, visual engagement on a phone and the native app that allows you to interact with an ad and responds to how you use a phone. it's very effective. tests have shown lich. lots to talk about. >> do you see growth in revenue coming from more advertising products that pandora can sell advertisers, or just growing the pie overall, bringing more advertisers into your core business? >> it's kind of all of the above. we are going to continue to grow the audience which will add inventory.
we will keep that sell going. it's making the ads more valuable so optimizing the cpms, the rates. that's about mining data. we are a warehouse of data on pandora. 55 billion pieces of thumb feedback. we generate a billion pieces of data points a day. we have woven together a rich foundation for kind of assimilating data, putting it together to drive profiling. over 1,000 segments on pandora. we keep moving the levers and over time it drives the revenue. >> what about at & t, comcast or verizon to partner with? i'm sure the bankers are throwing a million and one pitch books your way. >> as a ceo myself we have a very strong independent board, we are always focused on shareholder value. we think about that but that's really what's driven our choice of strategy now. the next year or two years, we will assemble really what is going to be the one-stop shop for music. so a place where as a listener you can go for everything.
a radio experience want to lean back and be entertained, build play lists, get more interactive, discover live performance and buy tickets. we want to be a hub that satisfies all of your desires and will have a lot of partners to do that with. >> one step in that direction, you guys announced new discovery stations. when someone tried to compare it to spotify discover, you used pretty sharp language that's not even safe for cable. i wonder if that's the new pandora we are going to see. >> look, the velocity of product innovation at pandora is stepping up. we spent the last couple years tripling our engineering team so we will bring a lot more products to market faster. you have already begun to see that. this will accelerate even substantially and we already signaled we will take this core radio product and expand it now so that we will add on demand subscription products we will add live ticket discovery. so a lot of new things coming out, a lot faster pace. it will all create a better listening experience. >> when you look at average
listening hours for april, which is the data that just came out, pandora was up single digits but spotify was up in the order of 30% plus. how do you compete against that? >> kudos to them for driving the business. they are doing very well. kind of a couple areas where you focus on. obviously the core product and improving that making play listing better. driving more distribution so there are over 1900 connected devices pandora is made on including 190 cars car models. we are investing a lot into car. i think this move into expanding the product in the fall to offer more capability so to satisfy all your different musical appetites, it will make a big difference. >> so the fall is the target that you are putting on bringing a lot of this to bear. >> our plan this year to launch additional capability, yeah. we're excited about it. we won't do a me too product. you can expect something really unique. we won't have 30 million songs in a search box and good luck. it will be a very intuitive, personalized experience that takes advantage of all we know
about you as a listener to make this sort of more lean in more interactive as easy to use and intuitive as the radio podcast which is kind of our core strength. >> the spotify listener that is adding into that number 38% average listening hours that they saw in growth in april, you don't think that that is a listener who is choosing to leave pandora? do you have evidence of that? >> one of the ways we lose listeners is they can't hear a song on demand and they want to do that. they hear a song they love they want to rewind it they can't. they go some place else. we want to plug that hole, obviously. it's interesting, though the majority of time spent listening is still in radio. most of the time people want to have this kind of hit a button and entertain me. that's a core strength of ours. it's fantastically hard to do well. but with this audience we have 100 million people every three months, it's a great springboard to start taking on the new capabilities. >> what about political spending? because we are in the throes of the election season. i'm sure everyone will see a
halo effect from ad spending. what should wall street analysts be x'ing out of their numbers that's just politics? >> political spending's a monster for us. it's largely because your listening habits are very strong predictors of your political affiliation. believe it or not, if we combine just your zip code and the style of music you listen to we can predict your political affiliation within 90% accuracy. take that and add in that we can geo-target it's really made for campaigning. we see everything from presidential elections to local city council elections, people are spending on pandora and finding real results. we anticipate a really strong season. it's going to be interesting. >> you will have missed calls from the national committees trying to get some of that data you have. you just got here so we will let you get settled in. so glad you came on cnbc. tim westergren ceo and founder of pandora. kelly? >> that was fascinating. combining the zip code and music you listen to 90% accuracy of
your vote. wow. yeah. he'll probably be hearing a lot more from these companies. thank you both. up next another look at did today's market rally. gains of 1% for the major averages. nasdaq up nearly 1.5%. at if 30,000 people download the new app? we're good. okay... what if a million people download the new app? we're good. five million? good. we scale on demand. hybrid infrastructure, boom. ok. what if 30 million people download the app? we're not good. we're total heroes. scale on demand with the number one company in cloud infrastructure.
if you ever bought a ticket online using ticketmaster might be your lucky day. the company is offering millions of free tickets to customers over the weekend, the result of a settlement from the 2003 lawsuit. you are eligible if you bought tickets on the site between october 1999 and february 2013 and paid an order processing fee which never got refunded. i'm not a big online ticket purchaser so -- >> i got one of these e-mails. i don't think it was this one but another ticketmaster one and it entitled you to some sort of couple dollars off or incentives they were throwing at you. >> it wasn't a nigerian prince who sent that? >> no. i have not gone to see newsies either. apparently christian bale was in the movie. i'm missing high quality content
here. >> yes, indeed. on the markets this morning, going to make a weird transition there, a number of things are up but catching my eye, yelp and go pro among tech stocks up the most. yelp up more than 7%. go pro up nearly 7%. those are not two stocks that have been doing particularly well. yelp is down 36% still for the year. go pro down 80%. this is a year where -- or day where riskier stocks are doing better. >> to your earlier point, that's microsoft buys link linkin. news of a deal with walmart in china as well. thanks for joining me here on "squawk alley." that's it for us. it is noontime on the east coast. that means "fast money" halftime starts now.
thanks so much. welcome to "the halftime report." i'm scott wapner. stocks surging around the world as investors brace for a possible brexit. with us for the hour today, joe terranova, jon najarian. let's kick it off with the vote whether great britain will leave the european union and throw the markets into uncertainty. let's go to london for the very latest on what polling and predictions are showing.