well, the nasdaq obviously the biggest percentage losering off 1.10%. the ten-ee know f. we're at 2.58. that's a concern for market traders. that will do it for this edition of "power lunch." >> we'll see you tomorrow. "street signs" begins right now. and welcome to "street signs", where the dow is up, russia may be finally ready to talk about ukraine, and whole foods is in a lot of pain. but the big story right now. marissa mayer about to speak at the tech disrupt conference in new york. you will hear it here live when it happens. that's not marissa mayer. >> that is not. there are two other people on the stage. we want to know what kinds of things, don't we, brian? obviously we want to now how she's been transforming yahoo.

they've been making dozens of acquisitions ever since she took over, and of course there is alibaba. bgc's colin, and our own josh lipton. i want to what on earth is she gooding to do with all those proceeds, colin? >> you know, there's three things she can do. it is going to be a mass i have been infusion of cash on the balance sheet. you can pay a dividend, you can buy back stock, and you can do acquisitions. they're very likely to do the last two, to increase their share repurchase and target acquisitions. who knows if they'll pay a different. >> talking about acquisitions, would it make sense to buy aol? >> i think it would. it's obviously gotten cheaper today, the stock is pulling back quite a be. it's in the wheelhouse, there's a lot of overlap. she talks about wanting to get stronger in video. if you combine the views that

aol has with about the 600,000 views that yahoo has, it would catapult them into second place. the did i palace and search business has a lot of overlap. it will also give them revenue. they knee to grow the top line. >> i tell you what, josh, license, the ali baba is -- and marissa mayer is getting all the credit. what about poor old jerry yang, the forced-out founder and ceo? isn't he the one that made the decision to buy into ali baba in the first place? >> yeah, i think, brian, investors don't care who made the decision. they're just happy someone did. you're right, a often a lot of investors have been plays yahoo as this proxy for alibaba. the window that provides you to this just incredible growth story. you look at this company. 62% growth on the top line. at the end of 2013, and just some of the numbers, you know, sources alibaba tell my are

responsible now for half of all package deliveries in china. there are 60,000 transactions per spect on alibaba's sites. when you're buy, the excite is you're buying a slice of the chinese e-commerce market. just some of the estimates of how big that market could be by 2020, the forecasts on that forecast will be bigger than the u.s., britain, japan and france combined. that's the excitement. >> it's absolutely unbelievable. ali baba is a company that has already like 80% market share. if it was the united states you would have the andy-competition regulators nipping at your heels. obviously china does not work like that. monopolies manage to -- i would like to ask you, colin, if you back out the stakes in ali baba, in yahoo japan, what's the value of yahoo itself?

people are closing stuff out there that it's close to zero. would you say that? >> the key factor here is the tax implications, right? so you have to ask yourself, is there a chance that yahoo can redue their tax burden on their alibaba stakes. for the first tranche that's likely not the case. they'll have to the pay the 35% corporate tax rate. they'll still have a significant holding in alibaba. perhaps there's a chance they can reduce the tax burden going forward. same thing with the stake in yahoo japan. we value the core business at about four times ebitda, using about a 1.2 billion ebitda number. we'll get you back on, colin and josh. thank you very much. now to the techcrunch disrupt conference. michael, you probably can't hear me, but don't use any four-letter word. he has a propensity to curse. >> are you looking -- have you

look at the finalists? >> i haven't had a chance, but i have a bit of time between now and the judging. >> okay. given how busy you are, it's great you always make time for that. >> i love the techcrunch community, i think it's fun toss the startups and new ideas coming, so it's great. okay. let's talk about yahoo. can you tell me what yahoo it? i've done this with previous ceos. it just seems like you're branching into different areas and i'm confused to your mission statement today. >> sure. on a mission level, we want to be the world's daily habits, the digital daily habits, and there are basically three core areas. there's search, helping people find what they're looking for, there's mail, and all of our different xwhun indications products, and there's what we refer to as the digital magazines, which is how do we bring interesting content, partner content, our own orange

content, ugc, to bear and to market. digit at magazines can involve video and different form mass, but these are things like sports, news, weather, finance, our home page. >> if you were a tech or media company, what's the answer? is it both? >> i think the answer that i sort of scolded yahoo and i've scolded piano emwho have asked me that. i think that over the year in silicon valley it became yahoo's version of naval gazing. is it media? tech? media-drich tech? in short it doesn't matter. what matters is we build products that people love and that they use every day that are beautiful, that are inspiring, that use technology in new ways, and that's fun -- and media in new ways. that's fundamentally the most important thing. we can debate the lability, but i'm not sure that it matters. we need to be something that's relevant and useful to people in those daily habits. >> okay.

let's talk about the digital magazine stuff. with that you include video. you're creating some of your like netflix-style video content? talk about that. >> we wanted to do some experiment action in video. yahoo has always been an early leader both that support the verticals like finance, news, sports, et cetera, but also doing some original series. we had some success with it shortly before i joined yahoo in the form of a sitcom called "burning love" that made the leap from digital onto television. it was nominated for an emmy, et cetera. so we decided we didn't want to do a lot of the early experiments, but we found two series that we were incredibly excited about, paul fee ge is doing a sudden outer space like a "star wars" style parody, called "other space" and then

there is a great producer mike tollen, who is bringing a series to life around -- it's call the "sin city saints" about a fictitious nba expansion set in las vegas. >> okay. does it have a -- have a racist owner? that could be -- >> they may try and weave that into the plot, but as of now, no. >> what does it cost to make a series, you know, one series of one of these shows? tens of millions or less? >> the thing for us is our video content budget has remained reasonably stable year to year. it's just a matter of using it in a different way. and so now we're doing fewer things that we think are bigger with a slightly larger chance of success. when you look at the smaller short-form content we do to

support our various verticals in the past they've been branded literal le we produced 86 different series, none of whom you have ever heard about, because it was sort of a failed brandon exercise like on the day of the twitter ipo there is a show called "beat the street" that was absolutely at the nominal. one of the chairman of the leading bankses sell the yahoo financial reporters are killing it, so we had live coverage. i completely agreed, but then i was like, guys if this chairman of this bank does not know that this show is called "beat the street" no one does. so we basically said let's have content in the brand as yahoo finance. there's sponsorships that can run and participate in that rather than having 86 different series, have original content that's aligned with each of the vertical different magazines, and then also on the video

front, we are doing a few things with original series, and then doing something exciting with live nation. so starting on july 1st every day for a year we'll do a live stream concert that they produce, and we make available. so there's so many times it's jay z and then at times someone in a smaller venue. >> will you ever have a channel on appear 8 tv, where we can look at direct content. >> we have yahoo screen that has with our partner content and original content on it. we actually have bed that into both roku and apple tv. >> okay. i feel like i went too easy on you there. do you feel like you've cut all the deadweight from yahoo that was there when you arrived two years ago? >> i think that overall the company is executing much better and performing in a much

stronger way. i think that there was actually the most surprising part for yahoo for me is how much tremendously good people were there. and how eager they were to get back at building great products and bringing those services to market. and while there was, you know, a lot of political behavior, misguided behavior in some of the leadership, the most frequent -- actually one of my first days in the cafeteria i was standing in line, this person came up and said, is it time to go? i was like, wow, that's kind of aggressive. i thought it was like should he question? i said, no, please don't got here, and he said no, no, we've been sitting here through hostile takeovers, recessions, cost cutting. it's like is it time to run? do stuff? we have all kinds of stuff we

want to do. is it time to go? is it time to go and do that now? what's been most fun is -- >> what did you say? >> i said, like, please, go, absolutely, because i've always had this philosophy that, you know, it's management's job to play defense, it's the team's job to play offense. it's my job to get things out of way, cut out the distractions and really get a clear path. i was like, by all means, run. i will play defense, please run offense. so, you know, i think that overall i was excited to unleash that energy, and there was just so much energy, so many different ideas. we've run a couple different programs that have had people bring ideas, ideas how to cut process, bureaucracy, sort of useless things that jam you up out of the system we call it pb & j. we've literally had thousands of ideas, and taken action on more than 1,000 of them.

which was fun. when i first came in people said you have to fix 1,000 things, which is really daunting, our first year of pb & j, we got 1,000 ideas from the company and actually did them. so a lot less process, a lot less bureaucracy. we pride ourselves on the larger start-up. and challenge people, what ideas do they think can really move the dial? we've lit really gotten hundreds ideas, some small, some big and it's been amazing, so i think overall we've gotten the company to really execute better, we're executing much more efficiently. and we also have clearer goals, alignment, and understanding of, you know, what does a good job look like? and really getting the company calibrated in terms of what does success look like? what does it look like to have a big stretch goal and actually hit it? >> there's a "wall street

journal" article today or yesterday talking about yahoo! is probably worth next to nothing if you take out yahoo japan and alibaba. >> they've soon different parts of the analysis that i have seen. i would tend to be very optimistic. i would say, yes, i do think there's a lot of potential in the core of yahoo and that it is undervalued. >> you would say that, but is there technical issues with the analysis? like they haven't taken into account taxes, things like that? >> yes. >> but that's not the -- >> but i mean, that's for investor toss wade through the information. so i don't want to comment on the specifics, but yes, there are certainly things that you would see there that you might say that was taken into account or not taken into account. >> okay. >> i mean, i do think we have created value. certainlybaba has created value as well as yahoo japan. we're grateful for all our

investments and partnerships that have led for that, but i think we have created value in the core. our products function better, we've created a lot of traffic growth and user growth, which has been a total reversal. >> when is your anniversary? >> it will be two years in july. >> okay. speaking of alibaba, so you're -- you're selling 40% of your stake in their ipo. is that correct? >> i think approximately. >> that's going to be worth about -- just that 40% is about $10 million is to be expected? >> um, the -- >> the f-1 was filed yesterday, so i'm in a quiet period, so i can't speak to the valuation. >> i can't speak at this at all? >> yes, we're in a quiet period, so i can't. >> what will you do with the -- or let's say this. if i can't say specifically, let's say hypothetically you would get a $10 billion windfall

soon, what kinds of thing would you want to spend that on? >> i think that what we have talked with our investors about is that we intend to be good stewards of capital. we've been good stewards of capital to date. we had previously sold part of our stake in alibaba and gotten the proceeds. we returned some of those proceeds to the shareholders, in fact the majority went to shareholders, but we did make some smart investments in the company in terms of building out talent, building out technology, platforms like tumblr. i can point to what we've done historically and point to the fact that we know this is of critical importance to our investors, how any proceeds are handles, and the fact that, you know, we'll continue to be good stewards of capital. >> that sounds like a lawyer wrote that entire answer, but i understand you can't say. $10 billion. >> remember, you are a lawyer. >> i was.

you mentioned tumblr. what did you pay? was it $1.1 billion? >> yes. it's been a year. david carp recently said he's very happy with what happened. are you very happy with what happened? >> absolutely. >> did you overpay? >> no, i don't think so. i think there's just a huge network the way that people create content, the freedom that it provides, the platform that it offers, you know, has some fundamental advantages over other things that are in market today. when we look at the response to the new mobile products that have been release d tool that's created a lot of excitement. when we look at the excitement from brands, because they can just express themselves in a way that's much more free, fundamental, can really be in line with their overall brand statements. the response of the community too, some of the early

experimentation being done with sponsorships, something like more than 58% of tumblr users engage -- 48% of them actually reshare it, because of the brand content is so good, so authentic, so interesting. it's down in the tumblr vein. it's really great statistics. why isn't it in the top 100? >> i think that last year was really the year we began to make or investment in mobile. we're late, we're behind. we've made great strides. we're proud of the weather app., proud of the digest, proud of tumblr, but that said, tumblr was in state where they had their mobile app.s, but last year they released them and they got really good. you can see the utilization of those mobile app.s, so we think we're making big strides in mobile. there's still more to do, but i think it goes to the digital

daily habit. when you look at how people are spending time on phones, and you look at what is and isn't the top 100, a lot of it is communications or games-based. so we do have a new platform that we are working on and obviously have communication tools that we are hopeful that the communication tools like tumblr will be among the top app.s. is getting mobile right a live-or-die issue for yahoo!? >> i think it's critical. it's certainly one of the biggest missed opportunities that i saw when i came there. there were very few people working on it when we got there. now we have hundreds of people working on it. we've made big advances. we've started to see mobile is approximately doubling along every metric we have in terms of traffic revenue users we're up

to 430 million monthly users on mobile, so we have the largest mobile audience in the world already. i think that when i think about the opportunity, when you think about, it was really interesting of what people do on their phone. with a few key deletions, you could read the list and feel like you were describing yahoo's business. mail, maps, news, share photoos, flickr, groups communication, sports. you get the idea. so we were in all those areas, and so now it's a matter of taking the content and service we have and bringing them on to the phone if a meaningful way. the person that runs mobile for you is adam kayhem, right? >> yeah. >> my understanding is he runs everything mobile in yahoo!. the desktop version of those

products are owned by other svps in yahoo. should a single product be owned by a single executive? >> i think when you look at every organization has a drawback. i remember, you know look, there's mention that go functional/divisional, functional/divisional. he goes, in the end it doesn't matter. there's always a drawback of any organization, so it's important to know what those are, work around them, but not to spend too much time from both a company and or the executives reorganizing. you're not actually doing everything, then. so not moving the users forward, not moving the product forward, not moving the business forward.

i talked to the board about the fact that i was excited about mobile and thought it was a huge opportunity. i said, great, we have a mobile engineering team, like, how many are there? and he was like, 30? and i don't have a good poker face. i was just like floored. he said, don't worry, there's more of us embedded in the team i'm like, well, how many more? and he was like, at least as many as are on the central team. i was like, oh, 60? >> yeah now we have more like

500 people who work on it. coming into that situation, where really knowing that we needed to be mobile first, because i do think that yahoo is daily habits, search, communications, digital magazines, but also mobile first. at the end of this year we'll have crossover. where we'll have mobile traffic, so this isn't the right way to run it. we put adam's team together and said, you know what? this will be a two-year experiment, but for two years we're going to get critical mass, hire and do talent acquisitions to fill out a tremendous set of app. developers, app. designers, and really get good at mobile. and how can we do that? so we want, look, let's pull

together critical focus, understand it's not the right way to organize it, and we'll revisit it in two years to see ultimately what we want, how we want to run it moving forward. but it's been great for the company, because it's a huge -- it gave us the focus, the be 'tis and momentum that we really needed to get or slough jump-started. >> did you ever think about going to adam and say we don't have a top ten app., either make one or be fired? is that maybe a way to motivate them? >> adam is tremendous, but, you know, there is an art to management, and you ultimately get to know what motivates people. adam has brought so much energy and motivated his whole team incredibly. when you look at how far he's brought the team, whether it's on buy backs he won the apple design award for it. the news digest, to adam's credit i almost didn't want to launch, because i didn't think

it was in the core application, he said he wart th stated using it inside the company and people just loved it, like the top 7 to is 1 stories, it gives you the sense of completion and sort of checks off the stories that you've read. how many people have tried the news digest. we brought this app. out and it's been a huge runaway hit. 40% of people that download the app. start to use it every day. it's got a nice twist, it's finite. it tells you when it's done. >> but he's definitely out of a job if you don't have a top ten at the end of the year? >> no adam has done tremendous things. >> but he's out of a job -- no, i'm just kidding. your mail app., you actually have added features like news and search to the mail app., where we've seen more of a trend of app.s becoming slimmer and single purpose.

why are you are you going the opposite direction? >> i think that -- we have a lot of single-purpose app.s, and we've done well with them, but one of the things that really worked for us on the pc is that people would come to yahoo for mail or come for finance, and then they would find something else interesting. and so to date one of our most successful to have that same serren dip tuesday experience, to use the maid you ultimately get the news feed or the yahoo home page, we're building search more broadly into it. we want that functionality to be there. some of our fa nat cat core issues within the application, there's all kinds of interesting stats that are coming out. the average smartphone users

uses their phone for 162 minutes a day, and i think it's 84% of it, 86% of it is spent on app.s, so only 14% of the time is spent on mobile web. so given all of that, one, we need beautiful app.s, but once the user is in that app. experience, the eatsiest things for them to do is to stay in that app. experience. and so, you know, that's one of the reasons why we wanted to make our app. more sure for the users who are spending time there. was he paid $96 million for 15 months of work? that's roughly right? and you fired him, or he left. but was he your biggest regret? your biggest mistake? >> i think enrique was not a fit. i was huge respect for him. i learned a lot from him.

he's incredibly smart and talented, but i do think that, you know, overall, i think that it was the right time for us to go our separate ways. we really wish him well, but i will say that -- >> he's probably doing quite well. >> i do think that it was -- there were a lot of issues in the company that when i got there, i do think that there were issues there that i potentially created, and it was important for me to fix them. can we switch topics away from yahoo! just for a second? obviously you were google from the very beginning before i came to yahoo, do you think that google today is evil? >> no. >> because some people have said, mostly me, that google says don't be evil, but that it seems to me they redefine evil

so their not evil, as opposed to redefining their behavior so they're not evil. would you agree with that? is that right? >> no. >> you're not going to go there with me on this one at all. >> no, i just think i worked at google for a long time. i know a lot of people who are there, some of my closest friends. i do think of them as family. >> so you don't want to say bad things? >> i their motivations. one of the most amazing things about google is the consistency of the culture there and the people that they hire. i think google has done a phenomenal job being focused on the users, even if that means -- >> sharing all their money -- >> i mean taking less money into the business or putting off an opportunity. i think their focus on the use to me means that, you know, they have succeeded in their efforts to not be evil. >> i've interviewed you many, many times on stage. i cannot throw you after. i can throw anything at you, and

you have a polished diplomatic answer and yet it's fairly honest. it's annoying to me that i can't. >> i'm saying mike backstage he's like we always gog where you want to go. i'm look that's so funny, i never walk on the stage with an actual agenda. i just go wherever he wants to go. >> here's something -- i didn't ask you this before, but i have moved completely away from yahoo products over the years. >> could you try it again? >> i don't use any yahoo products, except yahoo news, it seems the news product is getting better, but for those of you who don't use yahoo products, what's one app. or one service we should check out that may get us hooked again on yahoo? >> um -- can i give three answers, but for different types of people? >> you can do whatever you want. >> for the lightweight users who

wants, i would say try the news digest, because that shows you the quality of content, the quality of editorial, the beauty of the app.s or the weather app.s. >> what is the news digest? >> it's an app.. it's available on ios and coming very soon to android, but i would say try that, or the weather app., but it gives you the types of app.s and quality we're trying to hit. mail i think is one of our best products and offers the deepest engagement. so, you know, i understand that that's a heavy commitment. so i would say for the users who -- i think one of the yahoo's superpowers is our ability to store data, like yahoo mail is enormous in terms of -- 16 years, going -- and one of the things we did is we took flickr and added space to everyone as account so everyone can have a terabyte of photos,

essentially unlimited. we're one of the few companies that has the ability to offer that kind of storage space to consumers. actually did that project in like six to eight weeks last year in terms of that expanse. show i would say if you want to try that super power out i would say try flick d muchr, use the application and see how it goes. i think we're getting great community engagement. we've just added a new search, so the photo search is much better, so i think the ability to organize your photos, we're making investments in flickr. >> a swit to yahoo mal, try flicker, go ahead -- >> i would say, you know, just wait, i want to try this out for a few minutes see whether or not i like it, try the news did i jest or weather. if you're like, hey, i have a lot of data, and i don't know

where to put it, i would say try out flickr, and get a sense of what we can do with your photos, and the reliability, knowing your photos are backed up, that they're well organized, the search works. >> thanks very much. really appreciate your time. >> thanks. all right. marissa mayer speaking at techcrunch disrupt. i believe we have josh limiten here as well. we were sort of chatting while the thing was going on, being a little bit evasive i think is a fairway to say it. >> a bit coy. >> what stuck out to you? >> obviously there's the issue about the, you know, the period, the quiet period during which they can't talk about alibaba. put that aside, i thought there were quite a lot of questions that she answered as you would expect her to. for example, did you overpay for

tumblr? of course she's going to say we didn't overpay. if you take out the stakes of yahoo japan and ali baba, of course she's going to say the core is undervalued. so i think a lot of the answers were predict acand not necessarily candid. well, also then don't ask questions that i guess will get obvious answers. >> why don't we bring in josh lipton. and also yahoo analyst kneale doshi. josh, what was your feeling about the whole interview? >> i thought we're heard, about asked for alibaba, that yahoo would remain a good steward of capital, back on april 15th, and so, you know, when you think about that, that's how investors and analysts think about this, a good steward of capital. does that mean they get a special dividend? does that mean that mayer will repurchase more shares?

they bought back i think about 6 million. if you do a bigger buyback, obviously a couple things, you would provide some support for the stock, also telling investors, listen, we the management team, we believe in this business, we think our stock is still a smart place to commit capital, mandy. >> neal is joining us by phone. i want to throw out a couple numbers, first, before you respond. 6.3 billion and 4.6 billion. 6.3 the revenue at 2010, had 396 billion the revenue at the end of last year, a company with revenue in decline, your take on that and mayer's comments? >> you know, i think that they have struggled to display advertising growth. search has been improving, but i think we've seen pricing pressure from social and mobile. so, you know, i think, you know, the company has started to get on the right foot. we thought 2% growth on the display advertising side, but i think it's going to take a long

time before this is really, you know, converted into a growth asset. >> what would you like to see them do with that money from alibaba? we were speaking with colin, and he thinks a one-time cash dividend would be best. what do you think they should do? >> yeah, you know, i think there's a number of potential acquisition targets that would help them get on the growth trajectory. i think yelp would be interesting, deeper into mobile, deeper into local and really helps kind of build out that mobile engagement. you know, will it move the needle immediately? probably not, about but with yahoo's scale and expertise, i think you could see an interesting marriage there. >> you know, the first part was all about video, which of course in our industry we love to hear about, buttia shoo trading at 26 times trailing earnings? cvs, 18 times trailing earnings. if yahoo wants tore more of a video company, should they be

valued more like a video company? >> any, i think they have a long ways to go on the video front. you have youtube, netflix, hulu, a number of companies pushing on the video front. i think it's going to be a while before we see traction on the video side. so i don't think this company deserves a video multiple, and, you know -- but it does deserve a growing multiple as, you know, core is still very undervalued, and, you know, i think it's up to marissa mayer to show she can turn this asset around. >> thank you for joining us, kneale doshi. now we have some dig-time whipsaw action going on. we're going to give you all the action that we have seen so far. later on, the one issue congress cannot kick down the road, because if it did, it might fall into a giant pothole. we'll explain when "street

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squibbly show you what's going on here in the dow. we were up about 82 points, brian, then negative by as much as 45 points, and then more than 100 points to the up side. all kinds of push and pull directions in the market. qulelen, and her comments this morning. you also have hopefully some good traction on the putin side,

ukraine side. >> you think there's buyers and sellers out there today? >> it's incredible. who would have thought? >> some people just browsele. and technical perspective. whole foods, really a lot of pain for shareholders, the company missed on earnings, guided lower, the stock getting walloped, down 19.5 1/2. harry wad. >> exactly, we were on talking numbers a months ago. there was risk of $40. we're at $40. i still can't get behind it for that simple reason that the stock is in free fall. i don't know if demand will come up right here. in my hunch it could be lower. i want the market to tell me where it's going to come in.

you know, i'm waiting for stronger hands. until then, i'm on the sidelines. >> you're on the sidelines. what about the fundamental side, though, steve? does that say sidelines to you? our all in or all out? >> mandy, none of the above, but i am in. i hope i'm one of thor stronger hands. i actually bought some today. this is not for the tim mid. so i think key position is small, but to me the market is freaks out, because competitors are coming into the space. organic foods only represents 5% of all of total food sales. there's a ton of room to grown in whole foods or competitors. none of the competitors do it like whole foods. they don't have its management, for consumers that whole foods does. i think this is a solid entry point. saul entry point. by the way, we should all is a because of that massive drop,

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shares of amazon down more than 2% on the heels of the ali baba filing, but amazon is hoping to shape things up. and wholesale market, let's bring in clara connor from "forbes," she wrote the article, and what you're referring to, claire is amazonsupply.com launched all the way back in 2012, very quietly. we don't talk much about it, but

how big could it bev? >> you have jeff bezos, who's perfectly happy to talk on "60 minutes" about sex request topics, but this stealth weapon site that's been quietly building. just to give you an idea, in the past two years, this site has gone from selling about 500,000 items it at launch to more than 2.2 million. there's nothing that really exciting about it about spit bibs around your neck at the dentist office, which is one of the many items for sale. >> who loses out if amazon succeeds in this area? >> the interesting thing about this area and why it's so rival for disruption, out of about the 35,000 businesses in wholesale distribution, only about 160 do over a million in sales every year, so we're talking about a regional, i hate to say the word mom and pop, but smaller businesses, so really we're thinking, you know, they have to consolidate or perhaps they're

going to go the way of the dodo. >> do you know what's being spent on this particular project? and what's being made or lost on it, claire? >> it probably won't surprise you to learn that in their typical secretive manner, i wasn't told a whole lot, but what's important to note. it doesn't matter. you obviously have been covering this closely, but amazon doesn't have a carl icahn or bill ackman figure charging in and saying why aren't you profitability? so i think what these smaller guys have to be most concerned about is amazon and amazon supply they don't have to be concerned about profitability in the short term? >> wouldn't it be nice for every -- but mind you, the shares are down nearly 30% from the january highs, not just down today, but suffering in that momo trade. claire, we have to leave it there, but thank you for joining us. >> thank you for having me. >> we're coming up after the break with a hot debate about the gas tax.

it's not been increased in 20 years. >> i don't like taxes, but i also don't like potholes, but the good thing, i don't drive, but this i believe is you driving. >> in car in my jeep wrangler, please wave in you're headed towards me. i can't tell you how much of road stinks. be a name and not a number? scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: scottrade- proud to be ranked "best overall client experience." today is wednesday today, we greet you. treat you. care for you. today, you can come to cleveland clinic for anything, everything or just to get that "thing" checked out.

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the u.s. department of transportation has just said there is no need right now to park all of those recalled gm cars. that statement is a direct rejection of a request from two democratic senators who had asked the federal government to issue a park it now order. all in all a win short term for gm. all right. can you, america, name a tax has not gone up in 20 years. there's probably just one. it's the federal gas tax. still just about 18 cents a gallon, same as '93 which thanks to inflation is actually now just about 11 cents in today's dollars. the federal highway trust fund not only broke but for all purposes probably needs a bailout while the roads and bridges crumble. doesn't a tax tax penalize those

that can afford it the least. let's discuss t.governor, i don't think anybody out there needs taxes but we lialso don't like driving our car in a giant sinkho sinkhole. howie is veer is the situation? >> draft fund is out of money if we don't doing is, and if we wait until october and kick the can down the road we'll miss next year's construction cycle which will really contribute to the roads getting worse and bridges in dangerous, dangerous condition. >> dan, you want the road to be good, but you say leave it to the states. >> yeah. i drive to work every day. i like potholes about as much as i like high taxes so to me the solution is let's get washington out of the business. where i live in virginia i have much greater ability to reach a politician, to convince a politician that a road needs to be fixed. i don't want to grab money from taxpayers in montana or texas to fix my roads in virginia, and

likewise as a virginia taxpayers i don't want to subs dies what's happening in california or new york. problems are better fixed closer to home. when the federal government is involved, you get bridges to nowhere. you get pork, you get corruption. it just doesn't work. >> you know, dan, listen, as a virginian i hear you, buddy, but you guys get a lot more money from the federal government back for every dollar you kick n.new jersey, where i live now, unfortunately, and i see a lot of virginia tags on my road. we share the highways, why not share more of the burden. >> the best example of that is pennsylvania where we are a pass-through state. people drive and trucks drive through pennsylvania to get to the midwest from the atlantic coast and they are the ones that really beat up our roads terribly so there needs to be a national transportation network. states have raised taxes, including pennsylvania and virginia, for example, but it's simply not enough. >> dan, go ahead and respond to my point.

>> i would much rather have pennsylvania use the innovation and thinking of pennsylvania lawmakers figure out, okay, maybe we should put tolls on trucks that drive through the state. let's figure out what we want to do to fix our own roads and not try to come after taxpayers elsewhere. all this cross-subsization is what's got us in the mess we are right now. new jersey is horribly screwed by the entire federal budget, one of the worse off states terms of dollars going in versus dollars sent to washington so why not go with genuine federalism which is what the founders wanted, states making their own decisions on the own program. don't need to centralize education or transportation or housing, agriculture. the entire federal government just about is one big mess because we're doing things in washington that should be done at the state and local level. >> normally i would agree with your points. the issue to me as someone who travels extensively, what you're doing in infrastructure is how you are defined as a nation, and as -- you know, as an american,

right, it's embarrassing. it's our roads, our bridges, our airports, we are a -- joe biden was right. i never thought i'd say that. we're a third world nation, dan. >> i was just driving around france two weeks ago. they have plenty of potholes there. we're not in any bigger mess than a lot of other countries are, so the question you have to ask yourself does it really make sense to send money in a leaky bucket to washington and have the politicians, you know, looking out the for their own states and campaign contributors and send the money back in a leak bucket to the states? let's get rid that have extra layer of bureaucracy and let the people who are closest to the problem solve it. >> well, governor, you know what, i will agree with dan in this point you know as well as i do, all we're trying to fix the roads but trying to get the trust fund bill done, everybody, republican and democrat, will try to slap their pork project on to this bill ensuring it will go no, right? is there any chance that this is actually going to get done

without 17 bridges to nowhere, you know, and the. pads in the sky? >> yeah. there is, because the house has voted to ban ear marks, there are no more ear marks so there can't be anymore bridges to nowhere and there's a formula that sends money out to each and individual state, the basic dollars we get. look, dan is absolutely wrong. we used to be number one in infrastructure, according to a group called the world economic forum. we're now 16th. our bridges are 28th. our railroads are 22nd and our airlines are 23rd. we're a pathetic case when you look at our competition. >> got to go. >> a good discussion. the civil engineering society gave us a d.a.-plus, mandy. we're now a d-plus nation. >> thanks for watching "street signs," everybody. "closing bell" is coming up next. but he just can't get out. with the technology of cloud, we changed all that.

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hi, everybody. welcome to clefnl i'm kelly evans down here at the new york stock exchange where indexes are moving in different directions. >> and we've got really two different markets going on here, something you don't see very often. i mean, take a look at dow and the nasdaq. the industrial average up over 100 points, has been for much of this day. the nasdaq is actually well off its low of the session. it was down 59 points at the low, so they are going in