and "squawk alley" is live. ♪ and welcome to "squawk alley." obviously, a big day for the markets, although's indexes may not show it. a big day for tech as well. joined by henley blodgett, editor-in-chief and ceo. good to see you. >> great to be here. >> as always, kayla tausche and jon fortt. right to it this morning. first up, amazon tonight after the bell, the firephone going on sale tomorrow morning. expect aces very amazon-like, analysts looking for almosts 20ds billion in sales, a loss of 15 cents per share as the company continues to make big investments and roll out new products. citi, by the way, downgraded the stock earlier in the week, in

their oends words, investor frustration. henry, a slowly growing school of thought, that ed bezos is losing the leash afforded for a long time? >> another school of thought, that he is tuning out short-term concerns which is incredibly unusual. focusing on the 5 to 10 to 20-year future and that made this an extraordinary stock for the last five years. they're not focused on quarters. i can already hear the moaning after they report tonight. oh, they can't make any money. it's terrible. it's over valued. and yet look where the investments they're making. my guess, some will pay off over the long term. >> i mean, the past month for amazon stock has actually been pretty good. i think it will be interesting to see, given how well some other companies are doing this earnings cycle, whether investors continue to want to put their money with amazon. they do have a growth story. they're ambitious, pushing into grocery and some other areas, but facebook is also doing well. apple is getting ready to have a

big product launch. you could argue ebay had issues. looking to put money somewhere, do you still put it with amazon? do you put it with microsoft instead? investors will have decisions to make. i thought the citi call was out on a limb. >> it's about margin, price cuts at web services. operating margin, they say, maybe half a point, maybe a point and a half and persist two to three quarters. >> if you've liked amazon up to this point. >> it's not like a big stumble that necessarily would cause you not to like them. maybe in a case like amazon a geopolitical situation that tends to get people's thinking away from riskier stock, but we've had some geopolitical situations in the past few weeks, over the past month amazon stock continued to perform. what's it going to be knocking them off their perch? this quarter, i don't know. >> the long-term shareholders are saying, the way they look at it, look, we can see very

expensive investments that are long-term investments like the kindl phone, tremendously expensive. the kindl aws, these huge bets, the grocery business. say, look, we can see billions of dollars going into those. exclude that, and the core business looks pretty good. still growing at a nice rate. we know where jeff is putting the money, know he's disciplined over the long term. short term willing to spend a lot. that's why the company's done oh well. >> the difference between amazon spending money on the long-term five to ten-year bets and the same visions at google and facebook is that they actually turn into real growth and real profits, at google and facebook. these are companies that are not losing money. amazon's losses are expected to widen this year and when they're making belts on something like the firephone, when apple sells more iphones in a quarter than amazon's total revenue -- for its entire business, why should it not be a market it's getting into jthts all three companies

are great companies. held up or foreu.s. companies to look at. heard zuckerberg talking about the ten-year plan. so unusual and so commendable, it's great for everybody. the reason they are coining money is because they're in a much different business. look at the incredible operating margins facebook has. amazon always in a relatively low margin business. bezos is willing to plow all of the profits -- >> moving add otoms, not bits. a question, where do investors want to invest? where do they think the next great profitable outcome is going to come from? from amazon or someone else? >> the first full quarter where we'll have the prime price increase. web services has been the growth pillar for the company, even with the price cuts. it's a matter of how much those two units can cancel out expenses elsewhere. >> and bezos is still an investor are -- >> he is.

>> investor, i am. over the long term, very happy. >> many painful years waiting for the investments to pay off. nice the last few years. >> moving on, facebook, by the way, another big name we're watching, up big this morning after, of course, earnings last night. julia boorstin showing to sheryl samberg, the ceo last night, after the earnings and joins us this morning. >> hey, carl. samberg told me facebook's strong performance across the board shows its unique kind of personalized ads are working. that it's investments in measurement and technology are paying off. she revealed the company has a $1.5 million active advertisers up from just 1 million last june. samberg also told me ads on instagram, a great opportunity. early tests seeing great results and advertiser demand. the company is taking it slow. and said new preem yul video ads are promising. growth opportunities were a hot topic on facebook's earnings call including facebook's messenger app and search. mark zuckerberg noting there are already 1 billion severance

every day on facebook. searching every day. >> more of the connections getting into more content and a huge amount of content. more than 1 trillion posts. >> both zuckerberg and samberg talked a lot about the potential in commerce with facebook currently testing a buy button. they said that both for commerce and payments, that they want to help drive sales for their ad partners rather than be responsible for actually selling stuff themself. carl? >> that moves the story forward. incredible quarter. thanks, julia. henry, revenue ahead, nine straight quarters. prices double the ipo. as much ad revenue as time warner and viacom combined. what else can they do? >> this was staggering. the thing that's so mind-boggling, operating profit margin. they don't have courts. what a lot of the bulls said at the ipo. look down the road how leverageable this business is, extraordinary. but a bigger message about long-term focus. the ipo, everyone committed such

a disaster, priced it terribly. it went down. it's all over forever. their reputation is lewine e ruined. nobody remembers that. they raised $18 billion on the ipo pricing just below the clearing price, level of demand. that was a brilliant move. if they had priced it at half that, and given everybody the overnight pop that we think we deserve on these ipos, they would have raised half the money or die loote diluted themself. this is the way more businesses should look at it. about the long term, not today's p.r. >> occurred to me after the report, a lot of us tended to look at the social media landscape like enterprise. a lot of big players, play in different segments. make a lot -- maybe more like search. one dominant play are with a model that's amazing, figures it out, the others scrambling around trying to figure out a business model. if it turns out that way,

facebook is certainly that dominant player. their core business is printing money similar to what it looked like, google was starting to do back in 2006, 2007. when they started to diversify out, invest in things like buying youtube. now facebook is doing that. this could be a much bigger story. >> instagram, what a platform for advertising. this is what they've said forever, but it's very visual, so different from twitter. it could easily get to where twit ter and farther. >> you raise instagram, things they have bought, created in-house, poke and paper, like. haven't been nearly as strong. is there an innovation problem within the company? >> they are doing a spectacular job innovating on one product. and that is facebook. and it is used by 1.3billion people a month were woe all love to have that. doing a great job and zuckerberg, incredibly aggressive buying other companies which can develop into nings over the long term. >> the comment that stuck out to me, message like in 2006 and

2008, a lo 2007. a short time to go from they eclipse twitter. growing the product in a short period of time and twitter's growth looks miserable at comparison. >> message is a success. broke it off from the main product. i'm using it more. paper not so much, messager doing better. and comments from john chen telling the ft, the company's in early discussions with companies about working together in parts of the enterprise market. he referencing specifically that partnership between apple and ibm, says both good and bad for blackberry. they call the equivalent of two elephants that start dancing. you can see blackberry's up almost 4% on this news. any idea what it could mean? henry? >> no. although we're all about the enterprise now. by that i mean tech at large, jon. >> hard to make the case that apple is a dancing elephant, because if it is then, boy, can

they elephant dance. best dancing elephant the world has ever seen. i don't know if you want caught under that elephant's feet. he's really focused on blackberry enterprise server, what is at risk in this partnership, from apple and ipm initially is mobile device management. his story is, we can manage not just blackberry devices but ios and android 2. he needs to get that really going before ibm comes up with something. so that's something i'll talk to him about over the next few days. >> those two elephants, sprint and google yesterday, coming out with the announcement, maybe it doesn't move the needle but gives the argument greater heft that all of these companies need to do a better job in enterprise apps. >> henry, thanks for stopping by. debating bezos for us. >> hi, jeff. >> business insider. all right. we want to get a look at markets as wealtll. the dow retracing gains from earlier in the morning, up about

15 points right now, in the session. the s&p is still above that all-time intraday high. up just about 3 points today. the nasdaq for its part, 4478. that index up just about five points right now in the session. we have had a crush of earnings today. check out gilead, earnings fee, all-time high tracing back to its ipo in 1992. more than 20 years ago, the company had strong sales of its is a valuedy hepatitis c drug, given back gains throughout the session. look at that. rub hub up. up 5%. had been up as much as seven% earlier. saw diners double in the last quarter. under armour, strong quarter. different story for trip adviser and qualcomm, both missed last night on the revenue side and investors are punishing those stocks this morning. it's the second worst day on record for trip. that stock down 9%.

carl? >> when we come back, ford's cfo on earnings records out this morning. the highest ever profit in north america. mark mahaney on facebook's massive quarter and looking lady to amazon tonight and don't like your choices? print your own. 3d printing hasbro's newest toy, when "squawk alley" continues. me who don't have electricity and i just figured that it's time i do something about it. what we're doing right now, along with ibm, is to actually transfer data through a satellite from our wind farms directly onto the cloud. i think we could create a far more efficient system across the whole network where we could actually draw down different kinds of energy based on when it's needed by the consumer. a smarter energy system is made with the ibm cloud. the ibm cloud is the cloud for business. bulldog: oooh!

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company's saying second quarter profits rose 20% citing improved profitability in key network business. focusing on its core business as a mobile network operatorer after selling its handset business to mike soft in late april. back to you. >> dom, thank you. ford earnings beat a good performance in europe. revenues came in a little light. phil lebeau joins us with ford's cfo. >> carl, bring in the krcfo of e ford motor company in dearborn. recorded record profitability for any quarter in north america. how much was driven by stronger pricing? >> well, actually not so much by stronger pricing. the story in the quarter for north america was more around cost. we had really good cost performance, and we also had good profitability coming from our parts and services business. but as you said, a report, and very, very strong margin as well at 11.6%.

>> meanwhile, in europe, you did something you haven't done in three years. that's turn a profit for a quarter. it wasn't a huge profit, but nonetheless, it was a profit. how close are you to saying, look, we think we're out of the woods in europe? >> well, we're certainly on track to profitability in 20120. the quarter profit, relatively small, you said, it's a signal we're definitely on the right track, and we're definitely going to deliver that profit in 2015. so everybody was extremely excited by that inside of ford. >> bob, are we clos e to a top for auto sales? you're forecasting a range of 16.3 to 16.8 million. how close are we to the top? how much room do we see sales running here in north america? >> globally we don't think we're near the top. we see sales growing at a pace of 4% on a compound average rate over the next several years driven by merging markets. in north america, could be

getting closer to the top. we'll have to wait and see where it does sort of top out, but definitely we think that the improvement we've seen over the last four, five years, is probably the strong growth we'll have in this cycle with maybe a little bit ahead of us over the next year or or two. then we'll see where it goes from there based on the economy. >> bob if we're close to the top, do you see a plateauing then in that mid-16 million range? what do you see and what's the biggest concern when you look at the run we've had for the auto sector and whether or not it continues? >> well, it's -- what we'll see is more normal conditions going forward, where replacement demand as opposed to pent-up demand is a factor as well as gdp growth, population growth, new drivers coming into the market. more normal going forward, what we're seaying. the strong rate of improvement, more normal from this point forward. looking ahead, for our business, we see new products, strong products. the brand is doing well.

so we continue to think that the business is going to perform well here in terms of profitability, cash generation and also operating margins. >> bob, one last question. the new f series coming later this year. the all-aluminum one. is it on schedule and second of all, related to this new vehicle coming up, a slew of new vehicles comes out. at the same time, nothing but headlines about recall. most are not ford related in the industry. you get a sense the consumer is a little numb to this. is it impacting sales at all? turning the business at all, or is it noise in the background? >> well, in terms of f series, the launch is very much on track, and mark fields talked about that this morning. we feel very prepared and we're just entering the heart of the launch at our dearborn facility, kansas city next year and everything is looking good so far. in terms of recalls, ford is following its normal process. we haven't had any particular issues to note, and in terms of

impact on sales, we haven't seen anything. so for us, it's just business as usual, and just want to deliver the products with high quality that customers want and value. >> bob shanks, cfo of the ford motor company joining us from the company's headquarters in dearborn, michigan. there you have it, carl, on the day when ford beat the street with record profitability in north america. >> thank you, phil lebeau in vick. when we come back, a crowd funded drone, 3d movies, and facebook moves this morning. new all-time highs. the market cap, by the way, closing in on ibm, at&t and pfizer. back in a minute.

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think is the best of the best. this weeb, head-to-head, air dog, a drone that follows users with a gopro tracking all the action and the mon t a low-cost 3d printer an online design store. each raised well over what they initially set out to raise. so far this week, though, a neck and neck race. the poll closes at 1:00 p.m. eastern and tomorrow we will unveil our first crowd funding leader. vote now at cnbc.com/techcrowd. the site is active. see which one tomorrow takes the prize. >> absolutely. other crowd funding news, kick starter's an unusual film festival kicked off in brooklyn. two stops left, los angeles and london on the map. we stopped by and talked with them as well as directors featured in this year's festival. >> this year was for the first time ever asked for sup missions a submissions and got 1,068

submissions and spent a lot of time watching all of those films, really fun. >> it's called "tomorrow we disappear" about a colony in delhi comprised of magicians, magicians, fire breathers, stilt walker, thousands of artists. their home destroyed to build the first-ever skyscraper. >> what they wanted to send us, what? let us do that? to india? so great. take that, mom! >> it's know potato salad, but -- >> that's true. >> the company successfully funded more movies since founded than the sundance festival in 22 years. incredible. anybody can be a venture capitalist and now anybody can be in the movie business. >> to think it all started with a bunch of veronica mars fans to do a movie. >> and it worked. hey. it's amazing what this crowd fund kg do. >> yes. got that right. and just about five minutes until the european close.

to simon, today, you know, back at hq. >> a good day for europe. strong rally learning that business activity for once leaped to a three-year high in europe. the combined pmi came throughway above expectations in expansion of 54. a problem with france, but for the rest of europe, real good news. a lot of the banks rallied today. particularly the weaker banks, not at least after, of course, positive news out of over the last few sessions as regards portugal. good gains there you can see. also, yesterday we were talking about how china was doing the business for apple with its smartphone sales. today nokia networks came through. after they've sold the handset business and are building out. the networks, to take the smartphones in china. able to capitalize on that same phenomenon there. a good result for them today. not all emerging markets, or ems, are easy for everybody. ein lever disappointed with slower growth in emerging markets than people hoped.

how the ceo explained it -- >> we've seen an enormous adjustment of currencies in some emerges markets, as you know for us is nearly 60% of the business, and that put a little damper on consumption. >> heading off to europe and still have to book your flights this summer, be aware, be clever, because there's a problem with overcapacity. particularly with the low-cost carriers. easy jet, disappointing figures. down 8% sales forecast. disappointed. partly because everybody else, guys, kayla, is getting into the low-cost area, norwegian, ryan air, easy jet, expanding capacity, and those traditional carrier, the legacy carrier, british airways, air france, also moving down into the space so you may get a flight that is cheaper than you thought. back to you. >> and that would be good news for consumers. we know airlines like those load factors up, too. simon, for now, thanks. when we come back, mark mahaney's take on facebook earnings and a preview of amazon tonight, and later today, don't

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welcome back to "squawk alley." i'm kayla tausche with jft jfon fortt. out with a big earnings beat saying it is 1.3 billion monthly

users and mobile devices accounted for nearly two-thirds of its revenue. mark mahaney, lead internet analyst and joins us this morning. >> good morning. >> you raised your price target to $92 a share. do you think 67% increase in ad reserve knew year over year, the company can sustain? >> yes. not that far off than we saw with google in 2004, 05 and 06. a marketing platform. they will. this company is rolling out more ad formats that are success. . doing it we. prop pipeline, two major drivers. instagram mont taization and audio play video ads. yes, we think this growth rate within reason is sustainable. >> it's very early they say for audio individual oh play.

quality over quantity argument. can they deliver on this ? and when? >> absolutely focus on quality. if they undermine the users experience, people will leave facebook in a, in a second. there are other social networks we have already seen people in the past migrate over to. yes, they have to be careful about the user interface risk. to their credit, they've managed it well. we've not seen them overly aggressively monetize the site. ad loads, 5%. the right thing. material, next year. instagram monetization and auto play video ads can add a billion in incremental revenue for facebook next year. a lot of change to add to the top line that they already have. >> mark, a lot of people are concerned the app install ads are on over ordinate amount of the percentage and on the call, sheryl says, sheryl samberg says a lot of people think it's the great majority of reserve nee. they're not pt only part of the mobile ads revenue. what do you peg that at?

>> glad they addressed it. could have done a better job than what they did on a call. we're going to guess 30% to 40% ad revenue. what i'm looking for, signs of bubble pricing in the ad format. auction format. don't set prices. more advertisers come in, prices go up. inflation eventually. i don't think we'll see that another year or two. ily effective add formats for direct response advertisers. they've yet to prove highly effective formats for brand advertisers. that's the peel and make the risk for the auto play video ads. >> facebook is so bipg and so fuxzful at-oso -- big and successful. bad news for others trying to make money in the same way? google, you cited, bad news for anybody else trying to make headway in search? >> jon, it's a great question. i'll just disagree with one point you made. i don't think they're that big. a die in will do $12 billion in,

total sales. that's actually gets $500 billion global advertising market. still pretty small. we're making a mistake thinking they're really big. they haven't yet. they can get substantially larger. i don't think there's a cannibalization risk issue for twitter. watch out, however, and investors will key off this, all the call on search, could facebook be destructive to google? i take the other side. i doubt it. facebook, three to five years, encroach on the search dollars google has. the battle to watch. probably in the years three to five from now. >> google, 50% of the mobile ad market to 40%. emarketer is saying with facebook at 18% already. aren't we already seeing them take some of the mobile ad market from google? >> yes. let's see. facebook is increasing its share. i'm not at all convinced that google is losing share of the mobile ad market. i think they're both taking dollars away from other people.

these two companies were ahead of the curve when it came to the mobile transition. twitter ahead of the curve. a couple companies clearly behind the curve. yahoo! one in the part and aol as well. >> mark, clearly, they are continuing to build share, but i'm wondering where do you think costco, they're up 40% over last year. people looking at cap ex saying for now it pays off. at what level do you think costs would become too high? >> you are facing, kayla, your point is valid. this is the toughest comp quarter, these next two, the cuffist comp quarters they'll face. things get easier next year. you'll see revenue growth deceleration into '15, unless there are new revenue streams. guess what? they do. instagram mont taization and auto play video ads and actually lined this up well. not saying they're trying to manage numbers, but if they were, they're going a good job of it, because those two revenue streams help them stabilize

revenue growth, despite, almost regardless what comps are next year. >> on valuation, ebitda, sector median of 24. it's in line, .6. how does that like up with your valuation? >> sounds right. look at it on ebitda, jon, sustainable the next three years. for "14, '15, '16, grow the bout um line 50% year over year. an asset, go 20 to 30 times ebitda. we're in meg da gap land. you don't see multiples in that space unless you're amazon. the point you made, jon, implies the valuation here, despite the run-up in stock, despite rear at 52 week high, valuation attractive. i fundamentally believe that. our number one pick in the large cap space. >> mark, going into yesterday's earnings, expectations for facebook where high. stock ran up throughout the day. expectations for amazon are not

that high. we're expecting a loss to 16 cents per share this yaur. before we let you go what you're looking for in amazon's report this afternoon? >> okay. so we think that there's, again, risk to amazon in terms of the guidance going forward. the biggest mistake that we and other people on the street have made, assuming they're coming out of the investment cycle. seems like a company with a very long investment horizon in the street, usually tripped up assuming we'll come out of it. i worry about the guide inners it of operating income they'll guide to for the september quarter. the street may be too high. in terms of numbers for this quarter, a loss of about 14, 15 cents in line with the street. numbers seem fine this quarter. the intraquarter, revenue trends spiblizing or mod lefty accelerating at amazon. we like amazon. facebook a higher pick. like amazon for the print and for the next 12 months. >> mark mahaney, after a heck of a quarter from facebook. thanks. >> thanks, jon. when we come back, we mentioned it. amazon's earnings are tonight. what was the company doing 19 years ago?

we have a special bezos throwback. first a throw forward to rick santelli. what are you watching after the break? >> a full plate, yield of 244. how it held. and also talk about gdp. wednesday, first look at second quarter. what are the estimates? and last, but not least, whenever inversions are in the same sentence as patriotism, run the other way! all after the break. so tell me about that at&t best-ever family pricing thing. its ten gigs of data to share with unlimited talk and text, and for a family of four, its $160 a month. $160 a month? sign us up. um, maybe we sign you up at the store after this. right, 'cause this is the...

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coming up at the top of the hour, who's the king's tech? zuckerberg versus cook versus bezos. vote to decide the winner. plus talking to a money manager big the fed stocks janet yellen is warning against. so should you? and under armour, a boost today. pushing gains to more than 50% so far this year. can it keep running higher? all straight ahead on the "halftime report." kayla, see you in 20 minutes or so. >> we'll be there. thanks. a big day for amazon. earnings after the bell, firephone on sale tomorrow. and throwing it back to 1995, the first book ever sold off amazon.com. the companies first sale, this book right here. computer models of the fundamental mechanisms of thought. if you didn't gather from that title the book was bought by a computer scientist, looks like a conflicted book. the guy, john waynewright,

amazon, of course, may have started out selling books. these days we know, it's all about digital print book, accounting for less than 10 percent of the company's revenue and launch of kindl unlimited service. users can download all the e-books they want for just $10 a month. the e-commerce capabilities of the firephone, beta launch wallet app, part of the continuing transition to digital from physical. i don't know what your first purchase was. mine was "barbarians at the gate." >> first e-book? >> no. first real book i purchased off amazon. >> i don't remember what my first purchase was, but it's interesting. they're going deeper into digital but also going deeper into physical. which i think is probably their competitive advantage. the logistics of moving stuff from one place to another in a short period of time, when there's food involved, meove it

faster, more carefully. >> and at the conference, 1993, i think, when amazon was -- just about debuting or whatnot. i bought, computer books. programming books. >> you were 10? >> no. intern at the conference. believe it or not pt weaseled my into doing that. >> this company is a jug you gj. he get-of-they get the leash to continue to do it? we'll see. out after the bell today. and rick santelli is standing by whip "the santelli exchange." rick? >> and bon fair of the van titi has to be up there. talked about the 244 yield many times. may 28th, low closing yield, for the year. we've had six sessions that have included the 246 yield, but today we've had the best kickoff intraday coming off that level. it's holding exactly where it should. gdp comes out wednesday, the 30th. our first look, second quarter

gdp. i think i bet a bunch of bags of hamburgers it wouldn't be 4%. maybe i need two bags, because it doesn't look like it's going to have a handle. most estimates between 2.6 and 2.9. inversions. everybody's talking about inversions, as well she should. tell you what, if you look at it from the lens, or through the lens of patriotism, i think you're wrong, because i was wrong. here's the analogy quickly. in the late '70s and early '80s, cars made by american car companies were not great cars. but i love my country. and i was just hard and fast buy america! i was wrong. because a real patriot buys the best product. and those who were smarter than i, and bought the best products, forced -- forced, huge amounts of change, by the likes of gm, ford and chrysler. now you see what's happening with the car market. we make some of the greatest, most durable, best-selling cars in the world, and, really, in

many ways, we need to thank the japanese. they made better cars. it's never patriotic. the reason we're exceptional, because americans can see that the free market system and the way our country is set up for entrepreneurs, always buy the best. because if you always buy the best, what you really are doing is keeping industry honest. when it comes to taxes, no different. whether it was the bush administration or this administration. listen, i know there's a lot of gridlock in d.c., in the end, all you need to do, low are the tax rate. lower it somewhere in the 20% level for business. write it on a piece of paper. if the house is supposed to be so pro-business, pass it. see what happens. you don't need the other 3,000 pages. keep it simple, keep it smart, and don't use the wart patriotism unless it's truly patriotic conversation. back to you. >> all right, thanks so much, rick. if only it were that easy. when "squawk alley" comes back, don't like your toy? 3d print your own.

a collaboration with hasbro with the ceo of shapeways when we come back. ♪ [ 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. ♪ my mom works at ge. ♪ now get the unmistakable thrill... and the incredible rush... of the mercedes-benz you've always wanted. ♪ [ tires screech ] but you better get here fast... [ daughter ] yay, daddy's here! here you go, honey. thank you. [ male announcer ] ...because a good thing like this... phew! [ male announcer ] ...won't last forever. see your authorized dealer for an incredible offer

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see how fast your internet can be. switch now and add voice and tv for $34.90. comcast business. built for business. welcome back to "squawk alley." shares spiked up 18%, 19%, trading again after the halt reproved. this on bloomberg headlines that

the company has held talks with investment firms about possibly going private at around $s 40, possibly, $40 a share. shares about $29 entering today. they've spiked up about $5 or $6 on these headlines. possibly that soda stream held talks with investment firms about going private. sodastream in focus today. talked about coca-cola and pepsi. never thought they could go private on their own, maybe. back to you. hasbro teamed up with 3d printers shapeways to give consumer as chance to print their favorite toys, giving consumers an outlet for the corporate creations that wouldn't appeal for mass production. the ceo is with us from shapeway, joining us now. so my little pony. we've got here. thank goodness we have jon steinberg, a my little pony expert. his kids helped him with that. that's the excuse, anyway. how did the deal come together

and how much volume can you do with something like this? >> the idea behind the deal is, that until now in shapeways you can only make original art. things you own the i.p. to. hasbro has a lot of cool brands people have a lot of fans for. behind the brands. the idea started to work like, let's enable the fans to make their own content. enable the fans to make, based on the i.p., where we start with my little pony, give them the freedom to create what they want and others can buy it. >> the detail is very -- actually called the cutie mark, for my little pony fans, a little thing on the back leg. these are complex. how much does it cost to make and how much will it retail for? >> to make, probably in the $20 range, and what it will retail for is up to the designer. that's the model behind shapeways. we charge the designer what it costs to make. the sdinter can mark it up by whatever he thinks is a fair amount. somewhere between $30 and $40, i would think that would retail for. >> and do you have indication so

far which pony is selling the best? the most demand? rarity? twilight, sparkle, perhaps? which pony is generating the most demand? >> just launched monday. it's early to tell. at the same time, i hope it's not the ones we know but the ones we don't know. the ones communities are coming up with that will be the most popular, or maybe not even one that is popular, but we will see hundreds upon hundreds of new characters that we haven't seen before. >> we've seen a lot of the toy companies report earnings so far, and they're seeing sales decline because of the popularity of things like xbox and video games across the board. do you think having a 3d printed partnership for a company like hasbro, i know you can't speak for them will it help reinvigorate consumer demand for these products over video games? >> what i like about it, instead of blocking which is maybe the obvious thing to do, hasbro is embracing the passion the fans have for their brands. and if you embrace passion,

enable people, typically it leads to good things. i hope doing this it's good for everybody. for the community, for hasbro and shapeways. >> i believe you said it costs about $20 to make. feel the fragile. might not give it to a 7 or 8-year-old, kids playing with this, i don't know how old they are. is this more for collectors? 20-something-year-olds into my little pony? >> definitely more for collectors. if you play vigorously with it, it will probably break. >> i've worked with them before as an advertiser. amazing about the pony, how much there a culture of adults, especially all different -- >> the broenies. >> men who like my little pony. >> do you consider yourself a brony? >> this past halloween i went at my little pony with my children, wore it to the buzzfeed office and everything. >> that's a yes. >> that's a yes. is it more of a collector thing than a toy thing right now?

>> what we are going to do in the future is to be seen. i hope indeed that based on thes success we have with this brand we can add other famous brands, that people have a big passion for, and enable our community to make whatever they want with it. >> obviously one of the very first 3d printed collectible items. have you looked at what the potential addressable market is for that? or is this just a test? >> i would -- since we're a start-up and since, you know, hasbro is also open to see what the market will do i think what we're going to do is just give it out there, and enable people passionate and see what happens. ask me in a few months for details. >> i'm ordering it today. might do my own. that dragon has helps the ponies out, that's spike. a good dragon. >> you've already gone out on a limb and admitted to being a brony. great for d & d back in the day. >> oh, my god. yeah. >> goodness. who would have spent a lot of money. peter, thanks.

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first it was carla slim kelling us work three day as week. larry page saying, work less, and in case you missed it, mark andreeson weighed in on twitter last night. "read carlos slim's big idea, i would like all of my competitors to work three so i can work five, six or seven day weeks and kick their butts." mark andreeson, not shy about being vocal on these issues. you talked about three-day work weeks. you weren't fans of it? >> three days in week in the office, an experiment in hoteling makes sense.

people has work home part of the day. go into the office part of the week. what all of these theme, getting towards, really. >> yes. i don't like this idea. we're about productivity and want to get as much out of an employee as possible. jazzed about coming to work, doing the work, working from home. three-day workweek, be flexible. give people what they need. don't prescribe is certain number of days to work. >> i don't get why carlos slim brought it up. a job-sharing thing? a lot of reduction in workweek, sharing jobs amongst people to even out the economy. maybe that's where it's coming from. >> do you think investment banks are trying to get people down from the 30 day per month working schedule and they're like, okay, we'll give you one weekend here, one weekend there? >> that memo earlier in the summer, banks said one weekend day off -- >> if you won't want to want

three day as week, be in the market for a new job to say the least. >> yes. and shares of blackberry, down from earlier highs, still up about 3.6%. financial times reporting the company is in talks with rivals about forming strategic alliances to compete with apple and ibm's new venture. >> also want to look at facebook right now. that stock is up nearly 7%. of course, blockbuster earnings after the bell last night. 7629 is the print right now. video ads, the big play going forward. in terms of numbers we saw, guys, growth across the board. >> and so much not captured in. facebook audience network, ad network to take the ads. web y, advertising business, monetizing other publishers, unexplorered. rates per ad up 120-odd percent even though volume down 25%. ads working better. monetizing at higher rates. the core stuff is strong and unexplored opportunities not baked in yet.

that's exciting. 7% at a company at this mark cap is such a big move. >> earnings cast a pall over twitter. stock up nearly 1.75%. diversity numbers as well. hadn't gotten a lot of attention because of the fakcebook number. >> and strom mention quickly qualcomm, which had a rough report mostly on issues in china around getting paid on the licensing business. china is so volatile for many companies. apple had a good quarter in china. ibm had a good quarter in china, after several bad, but qualcomm now in the doghouse there over some licensing issues being declared a month knopoly. core business is strong. >> visa after the bell. a lot of big names set to report. sodastream, stock soaring on

reports of a potential buyout offer for the company, or that at least it's held talks over such a deal. stock up 16%, but still less than $1 billion in mark cap. a relatively small deal. perhaps a feasible deal, given the size. >> great take-out deal i think. >> we'll see. guy, thank for being here. steinberg, as always, see you very soon. that's all for "squawk alley." back to hq and the "halftime report." welcome to the "half time show." countdown to the president. ahead of steve liesman's exclusive, we'll preview what mr. obama is likely to say on the key issues and stock secretariers that could move as a result. not gelling with yellen. and under armour surges after another it strong quarter. why that company could keep running higher. meet today's starting lineup, jon, joe, murph on the set today. beginning with a battleet