hour, ceo of the daily mail north america and with us, the co-founder and ceo of indigo-go. good to have you back. good morning to you. >> thanks for having me. >> more evidence the i-watch coming soon. they hired the sales director of tag haur to promote it. this move comes as the wear goes on sale today. reviewed in "usa today" this morning. good review but the overall thought is still early and probably too early in the game, john. >> hiring a designer, right, to undergeek everybody. the watches are too geeky or complex or bulky. and apple flanks them with high design and they're sbe gags with the desktop, with the phone. the features commodityizecommod >> this is going to be expensive. >> compare ios and android, ios

is more expense i. android with 70% to 80% of the smortphone market and everyone jokes apple has the profits. >> we know very little about it. leaks are tough to come by. going on personal build-up. is that a legitimate way to anticipate the product? >> i think it's a fair signal. apple brought in the ceo of burrberry and showing it's about something you want and not need. the early stages of the watches is going to be about luxury. it's about showing people that this is going to make your life better. not because you need it like food and water. so i think it's smart in the early stages to go after companies and people doing this for decades if not centuries. >> carl, we had ceo on to talk about the dion yvonne furstenberg google glass. somebody said they look so much better and i might consider getting it now. to put on your wrist or face,

design matters a great deal. >> there's 1 out of 4 -- a weeks ago saying that wearables is a category is being overblown. the "today" show not going to be what a lot of people hope it will be. and some ways they think headphones more interesting than watches. >> completely disagree. everybody said this about the iphone. everybody said that a high function stylized device to transform your life, there's not a market. they want them integrated into everything they do, into getting uber, playing games and ordering food and makes sense on your wrist. >> is that how it's talked nabt your circles? >> absolutely. seeing air play from your iphone to the tv, seems so wonderful and magical. that's the seamlessness that people want on their wrist. >> no one anticipating that before that came along. >> exactly. who knows about the connections getting it on your wrist and your car, house, entire network of things. >> john's hot on the car as a forum. something to keep your eye on in tech getting through the summer. we want to check in on the

notable ipos of the year. today's the day that options on shares of go pro start trading and despite volatility, up more than 75% since going public over a week ago. quite the recovery of king, as well. finally back to the ipo price of $the 2.50. up 47% from the lows in may. by the way, they got an upgrade today to overweight. they think the quarter comes in decent, okay. john, your thoughts on both of them? >> look. i said that king could possibly be a company with sustaining franchising. i think with the piper upgrade they started the show they're able to do that. other game that is are in the top 20 right now, bubble witch. other games are now proving to work for candy. the point to really focus in on the coming quarter is monthly active payers over active users are paying money to the point you brought up. in the last quarter $18 monthly gross average bookings per paying person versus a year earlier at 15 and then went up

significantly. however, the rate of payers over total users went to 2.5% from 3%. so the question is, is this a one-time thing that people are counter cyclically moving away from paying for the games? if they do, bad for candy crush. >> the response is that may be true and hard tore market the games in a crowded space. and gopro with a built-in wedge. >> yeah. i think the -- >> sorry. king has a built-in wedge. >> the gaming space is really complicated. obviously like the movie studios, a question of innovate internally or looking for okay we wags weizati weizations. you will see the demise. >> that's been the model. right? not a big -- he's a big, organic guy. the head. >> a big brand and theme guy, as well. a trading tip here. they'll come out with candy crush soda, the sequel. if you look at gopro, how much a

consumer brand drives purchasers of stock and excited about gopro in q3 or 4 we'll see candy crush soda come out and everybody see the friends playing soda and be excited about the stock. >> gopro, the shorts have another leg to stand on after having been punished a bit last week s. this their turn? >> way too expensive. based on the idea of a media company built in and one of my favorite savings is revenue kill it is dream. if he was committed to doing a media business, why not start experimenting a little sfwhit he had no media business and people couldn't say there's only massive upside and now, yeah, you know, it's too expensive. >> interesting story to come public when your model is basically doing a 90-degree turn. >> it is interesting. i was at the world cup four years ago in south africa. didn't see the gopros. i was in brazil and everybody had one. the market share is not that big yet and everybody's on the ride for part of the wearable

devices. i-watch. gopro is trying to ride the wave. >> that's the problem. a great business but the business today and it's being commodityized as we speak. >> someone made a good point over the weekend. gopro pointed out that q1 is lighter this year with production pushed it forward. if you add q4 and q1 last year, 489 million. this year, 596 million. 21% revenue growth. very impressive. not twitter revenue growth of 100%, right? >> when they're not innovating, you see a huge pie and maybe they keep on eating away. a quarter at a time. >> something to watch. finally, amazon. a little competition in the grocery business. google as a $500 million war chest to stop amazon's plan for show rooming groceries and they have a grocery service. co-founders spoke with venture capitalist at his annual conference and paige addressed

the throw it at the wall and see if it sticks strategy. take a listen. >> i feel like right now the computers are still pretty bad. i mean, just messing around. you know? you're kind of scrolling on your touchscreen, phone. trying to find -- you're in a car and bouncy and doesn't really work. so i think the actual amount of kind of knowledge you get out of the computer versus the amount of time you spend is still pretty bad and the job to solve that and most of the things make sense in that context. i mean, i have this debate with steve jobs. you are doing too much stuff. i would be like, yeah, that's true. and he was right. so i mean in some sense but i think the answer to that, which i only kind of came to recently as we were talking about this stuff, is that if you're doing thing that is are highly interrelated then there's some complexity limits.

you know? going to the ceo or something because you have thing that is are unrelated and they're going to some point they have to get integrated. >> interesting to hear him reference jobs directly knowing about their tortured history. >> yes. absolutely. you know, i think that the local space, the reason why everyone's going after it despite the fact of a harder space, collecting rev noous and $50 and $100 parcels opposed to hundreds of thousands of dollars with national is uncaptured space. they're come petting intin int places and the robots and drones are part of this. i know everyone thinks i'm crazy but watching the thing on ted this weekend. they posted a ted talk and had the robots where he's pushing them and one's holding a stick and balancing it, it's spectacular. google will be very successful in the technology with self-driving cars and drones. made big investments there. i think you will walk out on the street and there will be drones from google flying overhead delivering. >> how are they talked about in

your circles? >> i don't know. i see amazon as the logistics play and google as the data play. i mean, right now you have amazon investing in systems ahead with the robots. google having to go -- i mean, trying to get the supplies to provide the goods and why they invest in uber trying to become that logistics play and amazon is ahead. i would take amazon on this. >> it's so funny. you look at same day delivery, google express is further ahead than amazon and roled up the local stores. they have the lockers camp trying to do same day delivery and i think google's further ahead and the robot company, general dynamics company is much more poised to do that. >> go google and amazon and couldn't pick two more long-term thinking with plenty of cash to think. that's a great battle. >> interesting thing is crazy

expensive robots. as much money as possible for which orange you buy or not. >> one of the hot areas of tech is 3d printer which raised some of the biggest funds where they're a couple of active campaigns. went through a rough period in the spring and stocks of 3d printer makers had a tough time and come back a bit. has the market -- did the market feel that at large? >> what is interesting is indigo-go we have a trend of not just 3d printers but affordable printers. not seeing in the thousands but 3d printers at $250. >> to make what? >> different objects. you have a pen which can make objects without actually melting plastic or anything. you see this kind of just become an every day technology in a few years from now. >> manifesting itself in what kind of markets? beyond dental implants? for what use? >> right now a hobby and people doing it as personal use but things as you see the geeks or hobbyists is what you see becoming the hot trend three

years from now. >> looking at the excitement right now, there's more exciting to people, robotics or 3d printers? >> i think it's both. wearables with you just saw one of the campaigns from indigogo lead the commercial for the apples wearable commercial. right? that was brought out through indigogo or atlas and analyzing every single movement, not just push-ups and running. you're seeing a lot of both. i think hot trends that will keep on happening for a couple of years. >> looking at a few of products financed through you guys. is there a leader, one that's well above the pack? >> affordable from the guys from bill gross and idea labs coming out with a $249 price point. not thousands but perfect thinking right now for holiday shopping. get your kid a $249 new matter 3d printer or creole pop with the international nature of this. not just america. the world is looking at this

where i think hardware is today and software was 15 or 20 minutes ago and before internet 1.0 and where we are right now in hardware and think about where we'll be in 15 years in hardware and not only apps making software apps but have robots making robots. >> kris mat got more interesting. >> absolutely, absolutely. >> thank you for coming in. >> absolutely. we do want to check back in on the markets right now. trading to the down side. futures indicated this in the premarket. dow down a touch below 17,000 now. check out sharyls of blackberry. the stock rallying despite no real news to go on this morning. the stock's been trending higher as you know. 40% growth in the stock in the past month. meantime, shares of peabody energy slipped after being downgraded. the biggest loser on the s&p and we are seeing crude trade to the upside. the downside this morning down about 76 cents. coming up, what can one person do with about $18 million

in bitcoin? we are about to find out. our conversation with vc tim draper, the winner of that u.s. government auction b of nearly 30,000 bitcoins. samsung's new smart watch. is it any good? we'll go hands on with the product later on. a shortage before it begins. behind the big problems of legal marijuana in the state of washington. stay tuned. financial noise financial noise financial noise ?ñ?h

u.s. government auctioned

off nearly 30,000 bitcoins and while they fought over the virtual currency, there was one winner. that would be tim draper, managing director. we'll get to bitcoin in a minute. welcome, by the way. want to talk about investing in technology. over the past few months seen investments in things like the yo app, delivering rolls of quarters. this morning the journal makes the point that silicone valley may be investing in the wrong stuff and a response to some degree on twitter today. what is your view on that? >> oh, i think silicone valley has consistently invested in the long stuff and the right stuff. and those are -- that's what makes the silicone valley so special and the global valley. all of these investors all around the world who take chances with entrepreneurship and it turns out all our lives end up better because of it. >> tim, when you think about the

most capital intensive businesses investing in right now at the a & b stage, which kind of companies come to mind? >> capital intensive businesses are generally in the clean tech space. i think most of the -- some of the most interesting technologies are not capital intensive. and the bitcoin world, i assume you're going to be asking about that, the bitcoin world is this new ecosystem where it doesn't cost that much to start a new bitcoin company. doesn't cost much to start owning bitcoin either. and it's a much more efficient way of moving money around the globe. >> do you think that the focus on the trading and the platforms and the auction you just participated in, do you think that's the exclusive place people should be focused? i heard that people said that mining is not a good use of time and half of them left.

what are your thoughts on mining? >> oh, well, i think people will do bitcoin mining but there are a lot of computers out there so there's a lot of competition for it. and i think mining is a -- is fun. i think people do it for fun. and they go out there and they find gold. but i actually think that the real money is going to be made in the bitcoin itself and in the ecosystem that's created around bitcoin. it's what bitcoin can do for you. not whether you can go out and find bitcoin out there in the internet. >> you mentioned it doesn't cost much to invest in it. how much does it cost? we have yet to see a good figure on what you paid. >> oh, all i know is i paid more than all the other guys did, and so, winning at an auction is a mixed bag. but i made a decision that this

was going to be a long-term bet on bitcoin and all the good things it can do for all of the countries of the world but particularly it's very valuable in the rising economies that have high inflation. bitcoin's a great alternative for some of these economies where inflation really zaps the strength of a country's economy. so, i expect like bitpagos in argentina and pagotech in africa and in mexico coincove. all these companies will really thrive because their people are not as confident in their own government fiat currency. and i think overall bitcoin's going to grow and as it grows, the value of a bitcoin continues

to rise. >> would you have made this purchase when bitcoin was trading at the highs? how long -- i know this is a silly question in some respects, but how long until it revisits that? >> oh, i don't -- you know, this is a long-term bet. i don't know -- it oscillates. bitcoin oscillates up and down and people buy high and sell low and in general i think this is a trend very much upward because there's a limited amount of bitcoin and more and more use. it's very easy. go grab a coin base account or set up a -- if you're an institution or a large investor, set up an account at bit me and you can go out and you can buy bitcoin and i think people should experiment with it. i mean, i think people should try it. it's very easy to move around. you can buy and sell things with

snap card. there are a lot of great things you can do with bitcoin and i think that's quite exciting. >> on your point on how to get it. a lot of hedge funds watch the show, mutual funds. to do big transactions like you did or the brothers did. what's the best way to buy it and get the best price? you participated in an auction. are there negotiated transactions? buying $10 million of bitcoin and a multi-billion dollar hedge fund, how do you do that? >> so i think you have to generally buy it on the open market but you can have trade earls go look at -- go to bitme which is the varum platform and you can put in bids, put in orders to buy bitcoin and over some period of time somebody's going to hit your bid. so it's not a hard thing to do for a big institution. it might take a couple of days

to fulfill the order but yeah. there's bitcoin out there. i think it's -- i'm clearly a believer. and i also believe that it's going to be really good for people who have less faith in their own country's currency. >> right. >> and i also think as a fiduciary, i think investors should have some bitcoin in their portfolios. >> wow. people beginning to recommend that. question is how much. tim, don't go anywhere. we're going to talk more about the broader vc environment. dow down 61. [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees.

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more with tim draper, director of draper fischer. we talked about bitcoin, tim, before the break, but i mean, your track record is like an all-star list. tesla, twitter, skype. i'll ask you now. what is your favorite, either space or company you're in now? >> it's funny you mention space. we are in space x and planet labs and space is a great space. actually, what i'm the most excited about right now are financial technologies. there are new financial technology that is are rising up from the start-up level that are -- that include things like networked accounting. if i sell you something, both our sub ledgers move up with sub ledger company and you can have electronic shares with e-shares. you can do peer to peer banking with both lend key and prosper. you can -- there are whole bunch

of new interesting new technologies around finance that are really changing the nature of finance. and they're disintermediating the bankers, the investment bankers, and yes, the venture capitalists, too. company like angel list is going to disintermediate venture capitalists over time. >> tim, thinking about the social stocks, you have been in twitter and tumblr, possibly still are. what are your thoughts about the twitter article in "the new york times" over the weekend talking about how their revenue growth under bane is spectacular but the user growth isn't lived up to anticipation? >> well, i think that whole social realm is going to continue to grow. i think things are -- it really matters that you have a close association with one group of people and a broad association with other and there's only one twitter. and that's a great company.

and i believe that the ability to project out interesting ideas is going to continue. i think people will be able to use these social networks for many, many purposes over time. you know? i'm excited about twitter and facebook and also some of the new thing that is are happening around those fields, something called stick in detroit. stik that uses those social networks to decide whether you -- which person you should borrow from or which person you should buy your insurance from. so that they're usually friends of friends and you feel a little safer doing that. there are many, many interesting technologies around the social realm, and i'm excited about it. >> you mentioned space x and tesla. what keeps drawing you back to

musk? is loop the kind of vehicle that you can ride from an investment standpoint? >> so, are you talking about the hyper loop? >> yeah. >> you must be talking about the hyper loop. he had too much on his plate and passed the hyper loop off to the rest of us to go figure out and draper university of heroes we have a regular program on the hyper loop so people go and they try to figure out how best to implement a hyper loop. and that's kind of exciting for them. by the way, i encourage people 18 to 28 years old to go to draper university. it is a wonderful place. very exciting. a lot of energy there and people really have transformed their lives through the program. about six to eight weeks long. >> tim, one last topic. >> online or residential. >> messaging, i see you're an

investor in tango and path and moved to messaging, as well. do you think the competition from asia actually makes it over here? do you think ten-cent we chat comes over and geographic specific? what are your thoughts on that space? >> no. i think all communications is global and that's so exciting. it makes it so that the geographic borders we have dissolve and that governments then have to compete for us. and i think that makes for a better world. so, may the best person, best team win. and i think it could be tango. it could be the ten-cent guys. it could be whoever. but, boy, is it great. and has communications really improved throughout the world. i think we're all so much better off. we can communicate with anyone around the planet pretty much at this point and that is -- that's a major breakthrough in our

world. >> tim, great having you. you covered a lot of ground. come back soon, okay? >> great. thanks for having me. >> tim draper joining us this morning. markets closed in the uk and across europe in the past few moments. stocks did fall. german industrial production light third consecutive month down in may. that's the biggest monthly decline since april of 2012. so more questions about the largest economy there. speaking of germany, sky deutscheland. downgraded from a buy. renault saying up as a rebound in europe offsets some of the weakness in emerging markets and set the tone. the dow down 70. coming back, the brand new android wear smart watch available today from samsung. is it actually any good? we'll go hands on in a moment. plus, a day before pot goes on sale in washington, why's

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apple's big move today, hiring vice president for tag hauer sales heading toward the expected fall release of the highly anticipated i-watch and shows how hot this sector is. google is hoping to get the jump on apple offering two new smart watches through the google play store today. the samsung gear live runs on android wear. that's google's new operating system for wearables. the watch is voice activated. you can say okay google to send a message. the new lg g-watch is $229. it's also powered by android wear. similar to samsung's device, the new watch responds to spoken questions so how many calories are in that ap snl what's the score of that baseball game? the devices, they share many features and functions, carl. both will ship this week. to make them both work, you need a smartphone running android 4.3 or higher. there are, though, some important differences here.

rob enderly of the enderly group says samsung's watch is a better screen, more sensors. lg's watch, however, he says longer battery life. inside both you find qualcomm processors and technology of arm holdings and spoke with the director of mobile directing for arm and says, yes, optimistic about the market for wearables. consumers, though, have to feel like they'll're fun, fashionable. he says otherwise demand might not meet expectations and remember those expectations are huge. idc estimates more than 19 million wearables will ship in 2014. that's triple the number last year by 2018 idc predicts shipments to balloon to about 112 million. carl, back to you. >> all right. thank you so much. you're an early adopter. >> yeah. disclosure, samsung active online advertiser. works with buzzfeed and should be google now watches because if

you look at google now which is the android lock screen to say, okay google, make a movie ticket or something like that, that's what the watches do now that the prior generation of android-based samsung watches didn't really do. that's the hook here. the google watch versus apple watch. >> ecosystem you're buying. not just the product. meantime, check in on the nasdaq. what's going on there? >> nasdaq slightly lower today, carl. look at the biggest losers on the nasdaq 100. w wynn resorts, disappointing news. micron technologies, taking a loss. netapp, expedia and tesla with the top five. despite trading lower, there are a couple of bright spots. look at blackberry. shares continue to move to the upside after reporting better than expected earnings but i'm being told by analysts that today's move is purely technical. $11 a share.

that was a key resistance level. i'm told the breakout above that level today suggests near term follow-through. back over to you. >> got people's attention over the past few weeks. thanks so much. now dominic chu. >> another stock to check out here is retail me not. the online marketplace for coupons and the stock falling on a bear on the street column increasing competition from the likes of google and changing advertising models all helping to contribute to that story. you can see there the stock off session lows and still 6% in today's trade. back over to you. >> thank you for that. when we come back, seattle's going green. the editor of high times going to tell us what to expect whether legal marijuana goes on sale in that state tomorrow.

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at the top of the hour, the bull is here exclusively to reveal the new year-end target for stocks. how high does he think we'll go? now that gopro's options are open for business, where are they saying the stock will go? we'll teach you how to trade it all. plus, the call of the day is a pair trade on two big home retailers by bank america. is it time to redecorate your portfolio? it is all straight ahead live from post 9. carl, see you in a few. >> nice to have you back, scott. welcome back. >> good to be back.

this is the audience participation part of the show. play along and talking about this. the nation's second legal recreational marijuana market opening in washington state tomorrow. the state's control board plans to issue up to 20 marijuana retail licenses today. stores can open tomorrow if they're ready. here on set this morning, the senior editor with high times magazine. great to have you back. good morning. >> thanks for having me back. >> we have been through this with colorado. huge story of shortages expected. what are you looking for? >> shortages is a short-term problem. they will be able to produce enough for the demand very soon. the problem was they weren't ready gearing up to this because they didn't know everything about who would have the proper permits and regulations. >> 20 doesn't sound like a lot. will that grow? >> oh, absolutely. when people see the revenue generated and the tax that is are generated, and also, on the flip side, the money that isn't

being spent in prosecution and things like that, other states are going to jump right on board. we view this as a step in the right direction for full legalization nationwide. >> danny, what about banking infrastructure? what's the banking regulations? how big can it get until it's fixed? >> it's off to right now because banks encouraged not to work with the businesses and trouble to find places to put money. so they're putting it back into the business and growing their businesses sort to speak and once the banks, you know, once the federal government sets up a regulation system that the banks can participate in, then i see the sky's the limit. >> all still cash, right? basically still cash business, right? >> it is. they take credit cards, as well. it is a cash business and we have had events two years in a row in seattle, cannabis cups put on there and we have seen just in the two years the tremendous amount of growth potential that's happening in those states so we're excited about it and we think more states will jump on.

>> speaking of which, people may look at colorado. i'm from colorado and washington and those two states have their own culture in a way. what's the first state that would approve this where you would say it's gone national? in terms of national mood. >> that's interesting. we're seeing that probably oregon and alaska are probably the next two states. california in 2016 and all those are states like you said. i think if a state like new york went legal, you know -- >> you mean on retail? >> yeah. recreational basis and medical and just got today, actually. >> yes. >> i think that would really -- a big state with a lot of residents a long way to showing the potential. >> how's the business of marijuana media changed over your 14 years of being at high times? can you get major advertisers, autos, into the magazine now? >> absolutely. we are getting a lot of music industry people. movie industry that are courting

the marijuana user market. and that's only going to grow as these companies see the potential because, you know, we've been fueling a lot of companies that haven't advertised and now the doors are open for them to join us. >> who are some examples? public, in the magazine. who are the advertiexamples of advertisers? >> just offhand, volkswagen, birkenstock, companies like that could be in the magazine for sure. they have a very counter cultural sort of audience. >> in there already? >> not at the moment. we have the movie and the music people. and we do have the occasional mainstream fertilizer like safer soaps and things like that so -- but we're one of the few magazines that's grown in the past few years and adding pages and we're seeing much more of those companies courting us and, you know, we're here on cnbc instead of -- >> it's a big. >> talking finance now. >> it's a legitimate business

story when an industry is created out of nothing. you must have talked about the maureen dowd column. edibles poorly marked in her hotel room. six hours of pain. how much of a setback is that? >> that's viewed as minor and hiccups in the road because with proper labeling and proper regulation, what happened to maureen shouldn't happen to anyone in the future. proper dosage labeling and things like that. edibles aren't for everybody. people -- that shouldn't be the first foray into use. >> washington has a separate regulation on the edibles. isn't the market easier to get adoption in the states? >> i think medicinally, edibles work in ways that smoking or vaporizing doesn't and with proper labeling, with proper dosaging, listed on the label and also child proof packaging, we can avoid a lot of those

issues. edibles are here to stay. i don't think we're getting rid of them. i think the more prudent approach is just to regulate it more closely. make sure it's not in the hands of children and people know not to eat too much. you know? >> yeah. that was an eye opener for those not familiar with this and people clearly are not. please come back, danny. see how washington goes. >> absolutely. thank you for having me. thank you. when we come back, in the wake of directv, is another big media deal on the horizon? (vo) rush hour around here starts at 6:30 a.m. - on the nose. but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity. because at scottrade, our passion is to power yours.

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cheaper than the competition. uber sending e-mails to the users and posting that uber x is less expensive than a yellow cab in new york city. new york taxis in yellow, new uber x prices in blue. happens to come a couple of days before sun valley and talking about companies like this disrupters, john? >> i thought that it should be the corporate car choice. it is so much cheaper than the black car service. so but i thought it was that way for a long time and i didn't realize it didn't pass the threshold. >> making the rounds. the code conference and other places highlighting the

political battle waged in 50 some odd cities at the same time? >> hitting regulatory problems, it is a sign you're on to something big. we seesaw wit the music business. you will do something enormous. >> might be the biggest conference in media. sun valley this week. larry page, tim cook, jeff bezos, some of the names on hand. this year's conference particularly interesting in light of the major media deals. of course, comcast, time warner, directv and the journal suggest today are all the guys, john, saying we have to get big and now? >> what's amazing is the conference, as a kid growing up, the conference you looked to. they used to write about and has a staying power and major deal out of it and ku dos to keep it the place. >> bezos, "washington post," last big one. do you have a big -- are you on the par dorr game of who's going to talk?

>> sure. i don't know if the smaller players are there but there's always kind of perennial of yelp. i think smaller websites into the bigger players, especially local space is very attractive area right now and look for websites to be bought. >> nick woodman of gopro on the guest list. >> maybe he makes a new friend there with samsung or something like that. the stock under pressure. who knows? >> obviously trying to cover it as best we can kicking off on wednesday. meantime, up next, parents pay attention to the next breakthrough. the ceo of a company best described for netflix of legos. f provokes lust. ♪ it elicits pride... ...incites envy... ♪

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all right. take a look. this tallest structure ever made with legos built by children in budapest last month. officials verified the record and reportedly used almost half a million lego bricks. a start-up channelling the business strategy of netflix, zip car and rent the runways and focused on families and kids. play, renting lego sets,

recently raised $7 million in series a. $20 million valuation. play's co-founder joins us this morning on the floor of the new york stock exchange. good morning. >> good morning. thank you. >> obviously, john and i are both parents of young kids and understand the mystique and the draw. what's the cost? how does it work? >> $15, $25 and $39 depending on the size of the set you want. you sign up. put a set in the play list and get it delivered to the door and return it and start all over again. >> i was disappointed legos and seeing a robot, i'm excited. all of the kits robotics? >> we have the most popular sets, friends, star wars, constru constructor. we have a wide inventory. >> one thing that strikes me is complexi complexity. they were nothing like today. does that lend itself to more of a rental mod snell. >> i think so. they're so expensive and the

kids don't just want to use the same pieces and rebuild but they want the expensive sets. you know? time after time. so we allow parents to save money and save on clutter, as well. because having so many sets around the house can be messy. >> i literally built the batman aqua cycle thing and joker thing. >> not a surprise to me. seems they're getting smaller. if i was a member here and lost pieces -- >> you would be good. we have a alln allowance to los to 15 pieces and not charged. and we weigh every set. >> what about 20 pieces? >> well, actually, seen that we can replace them really quickly and there's sometimes a small service charge but it's, you know, very minor for such a small loss. >> we talk about the toy market all the time and a challenge for mattel and hasbro to keep up. everything has a chip now.

does that hurt -- why hasn't it affected the guys? >> lego is a billion dollar empire all over the world to allow kids to use the cognitive skils and spatial reasoning skills and lasted for so many years and trying to create, give parents a chance to rent these, s.t.e.m. based toys and having a creative crisis and trying to get back to smart toys and something expanding the platform, as well, to rent other smart toys because they're really expensive. >> will lego go into this? >> lego they can go into it. they know about us and what we're doing and it's a model they're interested in, then, you know, great. >> how big can you get? geographically, mostly north america? >> yeah. the u.s. right now and we're looking to expand internationally some point and also opening in east coast facility to increase shipping times so we are looking for, you know, increased growth. >> thinking about s.t.e.m. science, technology, engineering

and mathematics, what are big opportunities in s.t.e.m.? >> you have seen so many different toys and having this creativity crisis and people thinking about how to teach kids to code, how to teach kids, you know, these critical skills but, you know, something that we're also doing which i think is also big disrupter is teaching kids to share. not necessarily sexy. it is not techie but the sharing economy is a huge, huge play. that's how we're going to be consuming goods for next i think very long time and we are teaching, starting with a new generation. kids. teaching them the basic principles of sharing an enprobably the hardest thing to learn. >> yeah. my house shoeld a testament to that statement. it is great. glad we finally made this happen. thank you for coming in. >> good to meet you. >> meantime, 30 seconds until the top of the hour. dow's having some trouble getting out of the red, john. my favorite stat of the day, the comp is about 600 points from that record close and dot-com

boom and back to levels that were set in the same month as the all-time record close was set. >> now we have the summer coming and fundamentally an economy not that strong and stock market that's basically distanced from the actual economy and people thinking the tech sector is overheated. >> thank you for coming in. good to see you. >> sure. >> let's check in with the judge and the half. >> thanks so much. have a great rest of the day. welcome to the "halftime show" here at post 9. running with the bulls. as the dow tops 17k first time, lazlo barini is here. picture perfect. gopro is opening and following the stock money. watching apple. what does apple's latest hire mean for the next big product? our traders weigh in on that big question. let's meet today's starting lineup. joe, josh, murph and