good morning. welcome to "squawk alley." joining us this morning from the annual alan and company conference in sun valley, kayla tausche. on the newsline, kara swisher, go executive eder for rico, wish you were with us on set. we'll make it work through the magic of tv. start with microsort, citing adella writing a 3,000 beige memo to his employees giving an interview to the "wall street journal" as well reiterating many themes heard since in a dello took over as ceo. seems to be laying groundwork for major change including possible layoffs. that's the read in some circles. kara, what do you make of that? and idea of committing to the x bosse e box. >> he's got to make these

statements. 1yu69 gotten there, and gotten there after a few months, had time to think about what's going on and he's got to carve this out of his administration, essentially post-steve ballmer and what he put in place. define what's important for the company. one of the areas is focusing on how big the company is and you ho big it should be and whether they need all of those people. and keeping employees that are motivated to be there. sort of a warning shot. those employees, a lot of people, it's called rest in best in microsoft. and so they're thinking about that they need dynamic employees going forward, and a bunch of other things that were important. including organizational changes and how it's the company's going to be organized. >> rick cherilyn, you know, kara, the company has covered the company a long time sounds disappoint disappointed. he said today, not sure where focus comes in if you're basically ay agreeing to keep all of the existing businesses.

a fair criticism? >> he wasn't specific. i'm not sure what he's going to do. he did talk about keeping the gaming unit. a lot of people want xbox spun off. something rick has talked about. a lot of people feel they shouldn't have bing, the xbox. focus on enterprise most of all. but i think he made a clear statement they're staying in the consumer business. >> yes. certainly stocks behaved okay, and along with a lot of other old line tech. intel today, by the way, hitting a ten-year high. so we do keep our eye on a bunch of these names we're obviously familiar with. another front in the war of words between netflix and verizon this morning. verizon a lengthy post arguing netflix' management of video streaming traffic, led to slower speeds for users. netflix hitting back saying internet service providers are responsible for controlling the flow of traffic on their networks. kayla, you folk with them yesterday on this network, that did move the stock.

the interview got a lot of attention. talk how this upped the ante? >> it's interesting to see the company come out and rebut what netflix was saying a month ago. remember when users were finding their netflix streaming buffering, there was a message displayed blaming it on the verizon network. supposed to undergo a review. right before that i asked, did they find it was verizon's fault? actually, no. they didn't. you'll hear from us a little later today. of course, we saw that blog post. there was a key phrase in there. he said the transit provider that netflix has chosen, basically saying, netflix has chosen to either go cheap on its transit provider or choose one that basically can't handle the traffic, and that it's right at the border of that transit provider and verizon's network that that congestion happened. interesting to see the company coming out saying we had zero congestion problems on our network all together. they're striking back against this. especially as the debate on net

neutrality and who is at fault and who should be paying, it's interesting to see. but certainly we'll hear from netflix at this point, too. >> yes. kara, comes on the same day as your old home, t"the washington post" puts a story on the front page asking if netflix can survive. a company skating on a razor blade. your thoughts on that, broadly, after hastings appeared at the code conference? >> well, i don't know. we'll see. i think it's hugely popular to consumers. i can't imagine it wouldn't be sold if there was troubles like that. a very popular name and company. this volleying back and forth between netflix and comcast and verizon is the next statement that will come out of netflix saying we didn't. so i think one of the issues is this whole idea of net neutrality, people are increasingly use video and mobile device, it's got to be settledened a ultimately it will end up in a regulatory environment, where it seems to

be ed hadding. a lot of people want to avoid that. we'll figure who has rights to the digital roads that are so important. >> do you sense the debate tipping one way or the other? >> no. i think obviously the big companies like comcast, verizon, want to avoid regulatory action. netflix is sort of -- shaking, doing the sword thing, that it could happen and everything. making a lot of attention towards the issue. so causing consumers to be interested in it, and if you want to watch the shows they have, and you can't get them, they're trying to get consumers on their side. it's a war of words and it's more in the sort of marketing area but one of these typical things that happens when there's disputes that can't be sessio d settled between companies. >> the emmys give direction in term of our own viewing habits. the category for best comedy actor includes one broad caste nominee, jim parson's "big

bang." everything else is showtime, hbo or netflix. >> shows you habits are not anecdotal but really are formulating how some of these companies think about their spend, their development of some of these shows, and how they're actually, you know, using these brands and these -- these programs to actually build that. >> moving on -- kayla, a little sun valley gossip for us's we watched arrivals. a couple days to go. now watching to see who's hanging out with whom and how late? >> that's right. one person that's been the most illusi illusive, carl here in sun valley, marissa mayer. wee seve her husband around the property several time. photographers just caught marisa publicly first time. reporters spotted her in the bar cordoned off to reporters, some including our own cnbc spotted her deep in conversation with aol ceo tim armstrong, talking

upwards of an hour one on one and nearly shut down the bar, according to people there. interesting. that's going to get the rumor mill into overdrive. just a few years ago aol was the subject of takeover tech lation, be it a deal, bought by yahoo!. argument at the time was, they didn't nowhere yahoo!'s growth was coming from, the valuation wasn't there. last ye years, stock up over 100%. questions of, could they get together now? what were they exactly talking about? former colleagues together. at google. we should note that. of course, that won't stop people from speculating. >> yeah. kara, how do you read -- >> there you go, speculating. you know, marisa has told a lot of people she doesn't like that deal at all, according to actual reporting on it, may not have a choice about it. it may be one of her own moves. tim very much wants something like this to happen and is

probably doing a lot 6 selling on her. she told many, many people inside and outside of yahoo! she doesn't see that deal. she likes the huffington post quite a bit, but i don't think aol will part with that separately. again, anytime -- put two of them together, it doesn't solve the problem necessarily, just creates a lot of noise around, just sort of a bigger, you know -- i don't know. seems very difficult for them to do. >> kara, can i say you've been critical of mayer in recent months? we went through the whole thing with -- went through the whole thing, does she lack discipline? >> no. i think -- i think a lot of things i said were going to happen, it happened. haven't gotten growth in revenue. not criticsal of mayer but the company. on alibaba, don't think revenue is up. traffic is apparently flattened out because of pc performance. there was just a report i just read that the results are going to still be flat as ever, and i

think -- they're skating on alibaba. and we'll see what happens after this in august. they've got to find a new strategy to spur growth and i think i've said that consistently and it's consistently been the case. so the question is, what can she do to spur growth? will yahoo! mergy with aol work, this work, that work? you got to do something with all the money and may end up giving it back to shareholders. i think they want it back. >> yeah, $15 billion is a lot of money to buy growth. you can do a lot with that. >> she doesn't have that much. she has -- much less than that. because of the tax situation. but i think -- still, in that case, think about that deal. what can she buy that she's interested in pinterest? google can -- slap that up quickly. not that much money compared to the people she's competing against. that's the difficulty she faces. where can she truly buy growth? a tough one for her and a tough

one for any ceo of that company. >> good point. see what happens in august, and more importantly, after august. kara, have a great weekend. see you next time. >> kara swisher of re/code and nbc university has a content sharing partnership with and is a minority shareholder in re/code. dow down about 22 points. s&p roughly flat, 1963. when we come back, apple iwatch, iphone speculation this morning. telling truth from fiction. also ahead, sun valley brian rogers, chairman of t. rowe price, legendary equity investor and right after this break, lift, launching in new york city. we'll talk to the chair of the city's taxing commission when "squawk alley" comes right back. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea

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temptation comes in many heart-pounding forms. but only one letter. "f". the performance marque from lexus. is there such a thing as a free ride? lyft is doing that offering free rides two weeks as part of its launch in new york. live in brooklyn with a look at lyft. morgan? >> reporter: hey, carl. that's right. as of tonight, new yorkers are going to start to see this on city streets, or some version of this on city streets here in brooklyn and in queens. this i identifies drivers of lyft, a san francisco start-up that operates in 67 markets, and recently raised $250 million in

funding from the likes of andreessen horowitz and alibaba. the concept here, you ehail or order a car using the app, lyft charges according to distance and time of day. in some markets the fee is merely a suggestion. here in brooklyn live-the-recruit the 500 drivers ten times more than the typical launch for the company and the company tells me 75,000 new yorkers have already tried to access the app for a ride. lyft competes with uber, operated in nyc since 2012 as well as taxis and black car services, but here's the thing you want to watch. lyft will be the only company that's actually using the ride sharing model. meaning, regular people with regular cars that haven't actually been licensed by the city. even uber, which using a ride share model elsewhere doesn't actually do that here prp the two that tried, side car and rely rides had to abannon it. why? new york regulators say it

violates insurance laws. the state's department of financial services issued a cease and desist letter to lyft this week and the city's taxi and limousine commission deemed lyft service illegal threatening to con if a it skate cars and fine drivers that aren't license pd with the city. lyft issued a safety commitment of its own in response and promising drivers it will cover costs related to this conflicts. the company is launching tonight, regardless. carl, back to you. >> morgan brennan in brooklyn for us this morning. thanks. on lyft's controversial debut joining us, chair and ceo-of-new york city's taxi and limousine economics, meera joesh joshi. how can they do this, if not allowed? >> no such thing as a free ride? no. people will get taken for a ride. to operate for-hire in new york you need a license from the taxi and limousine commission and they can call it ride share,

peer to peer, nothing more than an illegal cab the city fought against for decades and for good reason. for the safety of the passengers. >> what would make it legal? having a base, having to pay a large fee for some kind of medallion service? what would make them legitimate? >> very easy. enter into agreement with a licensed base and use drivers and vehicles to provide the services suggested, or do what uber's done. get a black car base license themselves. the hurdles to licensure are very small. >> how is the commission, how do they see uber, per se? we know uber's got multiple battles going in multiple cities. are they doing it the right way? does the medallion-based car service-based company deserve to be disrupted? >> uber first came to new york and tried to enter without any cooperation from the regulators, but that didn't last long, and we've worked with uber very

successfully, and they're now a part of the industry, and a large part of the industry, and as a regulator, we don't play a hand in, you know, where the pieces are the pie -- how big the pieces of the pie are. our concern is are passengers getting the service they need and safety standards being met. >> what happens to lyft in terms of punishment, if they go ahead with this, do they get arrested? fined? what are the ramifications? >> well, the sort of unfortunate part is that the drivers, the people of new york that have signed up to do this, may get the worst end of it, because their cars will be seized and they'll be summoned. the city and state in general in court seeking a temporary restraining order against the company. if they do decide to launch at 7:00 p.m., then the tlc and rest of the city will enforce against them. >> sounds like a kamikaze business model, so to speak if they know they're running into

trouble. >> it's hard to figure out what the end goal is, but nonetheless, we're going to abide by the regulations that preserve the safety for passengers. >> chatting with you just before we came to air and this must be a nutty time to be in any kind of industry or regulation of local transportation, because so much is changing so quickly. >> absolutely. >> what do you think the picture will look like in, say, two to fire you'ves? >> i definitely think apps will be the -- the primary way that people communicate on how to -- on connecting themselves with car, but what's interesting is, new york is unique. we have a really strong hail center. that's manhattan, and even though we run an ehail app pilot and you can ehail a taxicab, very few use it. in new york city, in manhattan, the hand is king. still the way people get taxis. >> app hailing of a taxi? >> in the fringes. williamsburg, long island city. sort of the edges of manhattan,

and also on off hours. it cuts down on cruising for taxi drivers. in between fares instead of cruising to look for one they might get an ehail. >> we'll see what the showdown brings with lyft. we appreciate you coming in. good to see you. >> thank you very. >> meera joshi from new york taxi and limousine commission. big losered. linkedin, twitter, taking a hit, ramping in for what second quarter earnings may be. we'll talk about that in just a minute. my motheit's delicious. toffee in the world. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company

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tech sector and rough for stocks. earnings season irnd a the corner, an legitimate at mccrory research, and a senior analyst. happy friday. good to see you both. >> good to see you. >> take it company by company. ben, a nice debate what kind of numbers twitter is going to post. goldman today reiterates their

buy. looking for reacceleration, user growth. is that a pipe dream or not? >> i wouldn't say a pipe dream. nothing we expect in the near term. i think some of the expectations around the world are exaggerated. we remain cautious. a fairly easy fix in what they need to do. make the product more facebook-like, applicable to the mass market and can do it over time. we don't expect anything in the near term. >> i hear them shuttering in the halls of twitter trying to be more like facebook. you mean easier to be onboard, easier to understand, less obscure and arcane? >> absolutely. still a product, you go on to use it and can't easily follow the discussion. my mother understands what it means to like something on facebook. i'm not sure she quite understands what hash tags are, the at symbols, too difficult for the mass market. >> if it's user -- monetization.

where will they come in? >> the linkedin problem is a combination of engagement. seeing slowing in the core business. the core talent solutions business. the sales navigator, the next potential big luci potential big solution. engagement is slower than facebook. the growth rate. a concern for in1re6vestors as . >> you both cover facebook. set the standard this earnings season? >> another very good earnings season. they continue to have momentum. they just have so much time spent on their platform advertisers simply have to be there. if you add on top of that's success with app install ads, we think will could not be, just from the game sector. prices they're getting from app install ads, phenomenal from a facebook standpoint. nothing detracts from that. all about the growth rates going forward and still positioned well. >> pricing strong, no longer an

optional media buy, ben suggested. we hear cpms rising transitioning to video. what's to be worried about on facebook? >> the near term, nothing big to worry about. longer term, could still be engagement concerns. that's died down near term. we think near term fundamentals remain strong for facebook, positive on the name. longer term, you could have engagement concerns come back. we don't think that's a near term concern. >> you both cover amazon. i came in to work thinking the ftc story might be an issue. we got our strongest action. this is going to take us back to almost march or april levels, ben. why? >> today irnd a the cloud computing efforts, what they're going to compete with drop box and other storage companies. broadly speaking, amazon remains the same story it has a long time. you either believe in the margin story or don't. we were main beliebers. difficult to call in near term, long term, structurally speaking, so many businesses a

structurally better business and you should continue to see margins move over time. >> aaron, investors are famous for giving bezos a long leash. what makes russ think that won't happen this time? >> yeah. we think somewhat reset the bar last quarter. take a little cautious tone after last quarter. still out perform rating. margins came in less than expected and we did lower margin expectations. we think the bar lowered a little in terms of near term expansion. longer term margins can get up to high single digit range for amazon. >> exciting space. lucker you cover it. talk to you next time. thanks. european close is going to happen in a few minutes in the uk and across continental europe. no surprise stocks posted their worst weekly loss in five months. rebounding today a bit in today's session following the sell-off yesterday sparked by portugal's biggest lender, banco

espirite. and immaterial tobacco on the rise. buying certain assets from reynolds. and u.s. cigarettemakers, they're in talks to merge. when we come back, brian rodgers at t. rowe price on the markets, on vcs, valuations and a whole lot more when "squawk alley" continues. han ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

welcome back to "squawk alley." we're live from the alan and company media conference in sun valley, i'd idaho. and i'm joined by ceo of t. rowe price, brian rogers. when you talk, markets listen. we've seen equity inflows come in 28 of the last 29 weeks. seems even with the volatility of this week people still believe in the market. do you share that view? >> kayla, investors are tired of earning low returns in money market funds, and the bar is low. consider the high jump bar to be 2.5% on the ten-year treasury. five basis points in a money market fund and investor willing to take risk, he or she can invest in equities and presumably earn more over the long term. >> you see doubts about the balance sheet of a portuguese bank, and saying the fed will be ending its tapering in october. things that spooked the market, even though the market did

bounce back, does that give you reason to take a pause and take money out, or savannah that sho -- is that short lived? >> the fed ending purchases, investors should view it positively. a sign the economy is coming along. job creation continuing. less supportive of financial markets. the fed's announcement is the a very positive sign. >> you manage the equity income fund, focused as the name implies solely on stocks's also for all of t. rowe price. when you think what happens in october, the fed communicated interest rates won't rise for some time after that, but what asset classes will start to reprice once we start thinking about where that goes? >> i think in october when the fed actually stops it will be a giant nonevent. i don't think the markets will react. the fed communicated its strategy, its plans, it's four months away. i think over the next couple of years, upward pressure on rates and that probably bodes not well for the fixed income investor.

for equity investors, the fed's decision is a positive sign, a positive move. >> your fund hases 3 $31 billio. 92% in domestic equities. do you not believe in the global story yet? >> of that 92, probably 5% invested outside the u.s. in wel well-known companies. >> a small percentage? >> but a u.s. focused fund and every year a little more globally. >> every year, t. rowe price also does a little bit more in the private side. i know you have several fund managers that are underneath you that do invest in companies like dropbox, evernote. i could go on and on. you have become known as a late-stage venture capital investor. i wonder what the returns are in that type of investment, and how you do due dill jenigence on companies like that. a new horizons fund, high growth companies. a great fund for decades. that fund and related funds

invest in small degree in the private companies you mentioned and others. it's never a huge bet. so when any of the funds, it might be a few percent of the assets, but gives a great view back what's going on in the private sector and many companies go public and become great investments for that after that as well. it's almost some investment research and development for us to focus on some of the late-stage private companies. >> of course, when they eventually go public, there is an exit and usually a solid return on that. on the public side, i know you've been adding to some of your tech positions in your fund. where are you seeing value? >> i think there's value in a couple of categories. i think what i would call high quality dividend yield plays, some value there. and there are companies like ibm, royal dutch shell, ge, all with yields in kind of a 3%-plus range. i think there's value in some companies that i call some of the -- the laggard turnarounds. companies like newmont mining,

mattel. companies that haven't performed well over the last year, where there's great underlying value. so i look for high quality yield plays and turnarounds and's two places to look. >> the ibm turnaround, a fudd? >> a cheap stock. great dividend and biback history. doing a lot to get the company on track and in a risk return sense ashes great value. >> you started buying apple about a year and a half ago. how has that position performedened a at what point lieutenant that be a mature investment to start taking profits? >> aer yao and a half a eyear a classic value opportunity. and the company's rebounded fairly well. investor sentiment has improved, and at some point more fully valued and we'll think about moving on. >> wells fargo, a biggest position in that sector. look at earnings like wells today, they match. but the street said we don't like where expenses are, not comfortable with the fact growth is beginning on the loan side.

when you look at the financials, which are supposed to be a barometer of growth, more broadly, do you see that? >> uh-huh. well, i think that financials are growering at the pace of the overall company and that rate of growth has been frankly moderate. the one thing i don't worry about wells fargo in the long term, the category of expense control. they will control expenses over the long term and are great in that regard. in terms of underlying loan grown demand, many financial institutions are seeing basically slow growth in terms of loan activity. and wells showed that this morning. >> one expense group that is rising, that's litigation. there's talk of a potential $7 billion settlement that citigroup may reach as soon as early next week with the doj. jpmorgan, notoriously paying $13billion last year. and another settlement working to ink as well. as an investor in financials, do you worry about that money going straight into the general

revenues versus back to shareholders? >> i think so. whenever i 0 hear talking about the fines to the federal government i think that's the shareholders' money. jpmorgan did everything to help keep the system together, and yet at the same time ended up paying a $13 billion fine. that's the shareholders' money. good news is most of that is coming to an end. i feel as though the citigroup situation might be one of the last, b of a one of the last and the bank will go forward and not worry about further fines. good news, deficit is shrinking because of the fines paid by the bank. >> temporarily. >> yes. >> we should note next october you're stepping down. 30-year anniversary. >> october 2015. right. >> quite a run for you. you'll still be chairman and ceo of t. roe. best investing advice? >> be a long-term optimism. my 35 years in the business,

seems always seem troubled but seem to work out and have faith in the economy and in our country over the long term. >> maybe if they believed that they'll be as calm as you seem right now. >> time will tell. >> a big tennis match this afternoon. you're nervous about that. >> that's right. >> brian rogers, t. rowe price. back to you, carl. >> great stuff. thank you, kayla tausche in sun valley. and check out what's happening with the finish line. stock at session lows, down grading the stock to neutral are from a buy rating citing running concerns, the shift from high-end running shoes to more moderately priced ones will hurt. earnings estimates, see the stock off session lows, still down by 5% in the trade. back to you. >> tough take for retail today, dom, thanks. when we come back, ever warranted to hear mr. wonderful's unvanished opinion? "shark tank's" kevin o'learyo'l.

looking for money. and a photo contest. the rest after the break. first, rick santelli, what's coming up? >> well, a big number today is 17 ponder that for a moment. we're going to talk a bit about canada's employment report today. a bit surprising. and last, but not least, we're going to actually look at a yield curve trade and see if there's still any gas left in the tank. all, after the break. this "credit report card" thing. can i get my actual credit report... like, the one the bank sees? [ male voice ] sheesh, i feel like i'm being interrogated over here. [ male voice ] she's onto us. dump her. [ pay phone rings ] hello? oh, man. that never gets old. no, it does not. [ female announcer ] not all credit report sites are equal. experian.com members get personalized help and a real credit report. join now at experian.com with enrollment in experian credit tracker.

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welcome back to cnbc. developing stories, actually two, in the world of autos. first, national highway traffic safety administration investigating about 500 be,000 ford vehicles. 2004 crown vics, mercury grand marquises and maraud ohs. looking into the possible loss of steering control. that's not an outright recall. it's an investigation at this point from the national highway traffic safety administration. this one is a recall, however. a big one from chrysler, announced erarlier recalling jut under 900,000 suvs. they're working on the wiring for the vanity light mirror. could possibly spark a fire. those recalls, vehicles recalled, '011 to 2014. cherokees and dodge durango models. back to you.

scott wapner, what's coming up? pretty good show at noon. a losing week for stocks, of course. we're shining the spotlight on a winner. david miller. he took the top spot in the "wall street journal" the winner circle competition for best mutual fund manager over the past year. we'll find out the secrets to his success and a big week ahead for enearnings. the numbers to watch for ahead of the reports and jon new jersey jersey -- jon new jers jerse jersey-najari jersey-najarian. see you in 20 or so. >> an eagle eye. and a drone photography community partnered with "national geographic" in a photo contest. winners took home prizes, gopros, drones and publications in the website. look at the winners. first went to this photo by a user who captured a bird in flight. this is actually an eagle over a

national park in indonesia. second place, a photo of children in manila. in the philippines. and finally, this sdeenic snap of a sunset in france. rapidly growing part of photography. hop over to the cme and get the santelli exchange with rick santelli. >> hi, carl. indeed, you know, canada, given various different schedules of holidays, and a report came out today. employment. a bit negative. not huge. looking for maybe up 20,000, 25,000, ended up down 9,400, but the important thing is unemployment rateic it had up. expecting it to be 7% to 7.1%. actually you have to go back to december of last year to find a higher unemployment rate. why do i bring it up? because i still think we need to look at everything in a global context. we've spent an appropriate amount of attention, of course, trying to decide if what's going on in portugal, is mogul, be just one mouse in the garage or

more? one cockroach under the dirty sink or more? but everything fleeds to be vnea global context and the works the other way. yes, the united states on's a relative trade doing better. but the rest of the world will affect us in their direction. that wasn't a great report. let's shift gears a bit. while i'm talking, i'll tell you what the big number was. 170 is 170 basis points between a 30-year bond yield around 335 and a five-year note yield hovering around 163. looking at the screen you see the big, wide chart. virtually, this is the flattest it's been in almost five years. september of '09. shorten it to year to date, what we're really pondering, is there any room left? i'll tell you, i personally think after listening to janet yellen, there is room left, and i'll tell you why, quite simply. if you have the five-year part of the curve and the 30-year part of the curve, i think quite simply, what's going to happen is, the five year is going to be a it were stubborn. i think it's going to continue

to monitor zero interest rate policy. now, we could argue, can the u.s. economy handle higher rates? but the difference between 0 interest rate and 75 to 125 basis points mind sandy bigger psychological message. that the federal reserve has confidence in the economy assimilating higher rates, maybe more important, creating a type of feedback loops that investors can draw on to actually assess what's going on in the future, versus having people or federal reserve or any central bankers kind of holding their hand and trying to squeeze the water balloon in any fashion they want. i think the 30 year will continue to look at a weaker global economy, and underperform and specifically to the u.s. economy. so i think that's steepening could take us closer to 195 basis points. all you want to do, be selling five years and buying 30 years. we will continue to monitor that trade. back to you. >> that's a good tutorial there, rick. thank you. rick santelli. when we return, nine out of

ten americans are completely wrong about this mind-blowing fact. that was the headline from upworthy. a site famous for distinctive curiosity gap type of writing. we'll talk to the ceo and some of the mind-blowing facts in just a minute.

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shire shares up about 5.25%. spiking up towards session highs. remember, this is a deal talked about for a while but whether or not it actually happens, could be a big one. this is is a reportedly a $52.5 billion possible deal. over to you. >> thanks. and in our ongorge series with "shark tank's" kevin o'leary, today he grills four about raising money. >> fund-raising is really about building one really great relationship with a person who you want to really do business with, and you may have to talk to a bunch of people, but the key is, whoever you actually get investment from is your real friend. >> all right. so you're equating friendship with investing here. how many people said no to you? >> dozens. dozens. maybe 100. i don't know. >> can't even remember how many? >> yeah. a ton. >> 150 doors, 149 nos.

only yes, my dad. how hard is to raise money. >> and imagine mr. wonderful, 149 times in a row. >> i think maybe 250 people, and when i got a no i wanted to know, why? oftentimes, it wasn't they didn't believe in the team, believe in the business. they just didn't understand something about it. >> how about you? >> what kelly said, i agree. no is the second best answer. right? give me the information. don't keep me hanging. >> all of the sudden somebody writing you a check. what do you owe them? >> i think you owe them honesty. you owe them real meaningful communication. it's not the score card. not the ultimate victory. you have to remind yourself this is shrike day zero. >> you? >> essentially once you get that investment, the clock starts ticking. you no now have to perform. it's not by any means the end. it's literally the start.

>> interesting discussion what it means to own and run a start-up, speaking of raising and earning money, how do you turn money into millions? launching an advertising program that has brands like nestle and gap onboard. the ceo of up worthy, probably know the name. website for viral content. good morning. nice to have you here. we discussed during the break, a lot of name recognition. like many companies trying to leverage that work. how is that going to work? >> we have already 24 brands and nonprofits onboard. big brands, unilever and gap and guess and also products, like nestles all-natural dog food. virgin mobile. so we're seeing a lot of uptake, which is exciting, but the really exciting thing is that the engagement on these programs has kind of blown us away, frankly. it's been way higher than we expected, and even higher than

our average content. so -- >> how is that possible? everybody comes on the program, if they loaded up with ads, the user experience changes and people mig great away to something else? >> you have to be selective about the partners you work with. so finding partners that actuallily align with our audience. leveraging what we know about our audience and what they care about and bringing that back into the experience and being transparent whip users so they never have to guess. is it sponsored or not? the if you do that, people will return the favor. we've seen this enormous engagement. the biggest thing going on, brands are learning how to tap into the power of purpose. we've seen it from google and nielsen. increasingly, consumers no easy to feel aligned on the bigger purpose of brands in order to drive their buying decisions. so i think, you know, that's something we understand deeply, and it's something driving a lot of brands to come and work with us. >> i guess -- brands have always sort of targeted a consumer --

ford advertising in car and driver. how is this any different than that? >> well, it's about actually speaking to something bigger. we have a rising demographic of people. the first generation of kids graduating from college, for example, who say the number one thing i care about in the company i work for is whether i believe in what they're doing. not money, not geography. do i believe in it? that's the key question right now. and so when gap or unilever comes to us, it's because we know how to talk that way. we know how to work with brands that actually are walking the walk, not just talking the talk, and that's why our community's been lifting it up in huge numbers. >> you mentioned your audience. how do you describe it to people who never visited upworthy? >> 50 million people a month come to the website. a broad democrat graphic. 8.5 core subscribers, 8.5 million, upworthy every day. those folks are people, describe it as people who haven't totally

thrown the towel in on the world. haven't completely given up. >> on life in general. >> yes, 0en life in general. >> engagement? metrics to show or holding those close to the vest now? >> in general, our engagement is about 32 times the average engagement in terms of social sharing. so our articles perform better, but our sponsored articles thus far have performed 62 times better. nearly twice as well as the average upworthy piece. that's really exciting to us. i think it's partly a function, again, of us being selective who we work with and doing a very premium product. but it's partly a function of the audience responding to it and liking it. >> yeah. you've got big backer, as we saw sparks on board and a few others. not the last time we'll talk to you. i know that eli. thank you for coming in. >> looking forward to it. >> talking the ad model upworthy. when we come back, pretty strange story prp a company that may not exist and many thousand percent moves in the stock.

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it is a strange story of a stock soaring 25,000% and night nout now all be over. back at hq looking at cnyk. >> it is over for now, carl, anyway. don't say we didn't warn you and a lot of others. a penny stock went to about $20 a share in the last month. the company purports to run a social networking website, based in belize. we haven't been able to find an actual office. the ceo and sole employee doesn't work there. successor nowhere to the found, an attorney says he no longer represents them. and finally this morning, the sec halted trading citing concerns regarding the accuracy and adequacy of information in the marketplace and potentially manipulative transactions. of course, there are a lot of questions still. who is behind this? what happens to people still

buying yesterday, and at least for now are stuck, and who was pumping it up? here's one site promoting the stock as late as a couple weeks ago, called aim high. when they begun its run, we were fortunate to have thrown it to a number of traders before the share price ran above a quarter. the loyalists that were the true winners. we be back in 1999. reached out to the site for a comment no response yet. they say it receives compensation sometimes stock from the companies that it profiles, which the disclaimer says is "an inherent conflict of interests." so we'll see how this goes, and we'll see what happens, carl, with the s.e.c.'s probe with the stock halted. >> unbelieve werable. all the attention on twitter the last 48 hours, scott. you've been all over it, too'sthanks to you, scott cohn,

at hq. and comp positive due facebook and amazon. adding to the nasdaq 100. retailers continue to deal with weakness. gap, weak for june, as a result, gap, ross stores, limited brands, urban outfitters, laggard. that does it for us. over to scott wapner and "the half." welcome to a special "halftime" show. may be the worst for stocks in some months but today we focus on winners. today a big one with us. david miller of catalyst funds, the country's best performing mutual fund. according to the "wall street journal's" winner circle contest. returned nearly 40% over that period. here to share big investing ideas with all of you. welcome. >> good to be here. >> congratulations on the performance and winning the winners circle contest. >> thank you. >> what's