co-executive eder of re/code along with jon fortt and kayla tausche as post nine. good to see everybody. first up, has jeff bezos reached the end of his leash? a much wider than expected second quarter loss. 27 cents a share thersz the 15 cent street estimate. this is the company continuing to spend on new services, ste s nods and products. predicting further losses in the quarter and revenue rising in line with consensus. stock down sharply this morning. the story of the morning. eager with your whether this is warranted? >> jeff bezos doing what he's done forever since he started the company. they keep forgetting he does this. investing in all kinds of stuff. some crazy. some of this, this phone came out, wasn't well reviewed, actually, and this is typical jeff bezos. so the market's always shocked that he's jeff bezos. i find that interesting. you know, he just -- this is what he does. in order to grow his company.

gets into fights with the publishers and everything else and is squeezing them. so it's just typical of him. i'm always surprised the market's surprised. >> my question, kelly, as we talked about yesterday afternoon was, is this just a temporary blip thing, are people resetting expectations for what amazon's going to deliver? or is there a broader feeling that, look, we're getting tired of these high valuation, high growth stock doing all of this investing, not returning a lot of earnings to shareholders and netflix is still down from its earnings report. pandora had trouble after hours yesterday. it's down, look, more than 13% today. just on a light eps guide. the quarter was kind of okay. i think that's the question. bezos, actually the cfo, mentioned on "the call" last night, spending $100 million in q 3 just on original content. there's your profit there. there it goes. original content. lower prices on amazon web services. so not a big surprise.

amazon continuing to do what amazon does. in this environment, facebook to invest in, alibaba coming up. >> how much better does alibaba lo look by comparesing? >> amazon didn't have many comps. always the high fly always looking ten years in the future. you couldn't compare it to anything. when you see companies like alibaba and facebook who are looking long term, making moon shots and also insanely profitable, how does amazon respond? last hour, jim stewart of the "new york times" said amazon neepds to take one quarter out, show investors it can make money and go back to what it was doing so people were be quiet again. >> sorry. it's jeff bezos. did it since he started the company. this is what you buy when you buy this company. there are comparisons to alibaba but they don't know original content yet, which they may have to do. depends how you growth. alibaba will face growth issue, it's so big. move to the united states or

elsewhere. every company shrike this. to me this is typical of him what he does and investors are constantly surprised to sustain it anymore, that's another question. i've talked about this issue four years, two years ago. it happens over and over again. >> and one thing i love your perspective on as well, evercore says they're going to cut margin assumptions until they see a sign of ip flexion in the investment cycle for amazon. grib a war waged and multiple fronts. one front in particular everybody is watching. whether they'll be able to roll out in the next year or or two same-day delivery for a number, for a majority of u.s. cities. >> right. >> isn't your view that's what they're in1re679ing so heavily now for and that that's going to be attainable, doable? >> i think that's a really fascinating area. look at uber. working on a big story with uber. uber is doing it, google doing it. so many retailers doing it and cars are interesting. where they'll see recompetition. who can get the goods to the

people in their homes at the right time. their business is changing quickly, too. this shipping idea to something much more quickly. sort of, we're doing a series called "the instant gratification economy" and what happens in that. >> this is huge. if amazon gets it right does it matter if it takes a couple of years and spend tens of billions of dollars to do so? >> i don't think is matters. an infrastructure advantage. what made amazon into amazon now. right about this investment, it will be big. point out, this 11%, 12% drop takes amazon back to the levels it was in early june. a lot lower in may. there's support levels here, traders that talk about that can talk about. but this isn't as if this big drop takes amazon into uncharted territory. just about six, seven, eight weeks ago. >> reminder, on the back of the gerbil goods report, most of the u.s. public calling for more corporate investment. amazon's case, too concentrated in one name for the share sholdors to digest.

happening with google, not just your eyes or brain. plans for your entire body called baseline study. from 175 anonymous people and use it and google's computer power to map human health. larry page taking on privacy concerns, vort, wiof course wit "new york times" in june. we get so worried we don't get the benefits. if we did this, save 1,000 lives next year. thatgrandiose? doing it for years. >> larry page started the company about buying cadavers and doing this. taking pictures. took slices of people, of cadavers things like that and put them on their things. they've done this for a long time. of interest to larry page. the idea of putting data to everything. pictures and data. >> even if you want to reap the

benefits, as the public might from what they're up to, does this mean, to get their hands on cadavers or do anything with people's personal bodies, it's a whole new level of invasiveness or of needing approval for the bodies involved? >> yeah. but the thing is, mapping, they map everything. map your stores. they're inside your stores. they map your streets, your houses. they want to map the human body. they want to do the ocean. doing things around the ocean, things in space. they're going to map everything and want the data. i call it google the borje, but it needs more information to be bigger and useful. help sees it as useful. other people worry about all the data in one company. >> kara, seems the company has a history of asking for forgive inside, not permission in areas with mapping. drove around and. >> right. >> and used cameras to take pictures of people's houses and cars and in some cases personal data when they were archiving books in library, same with copyright issues too.

is this something that will hit ut over the head or will there be some or the of telegraphing that some of this information is being used? >> why can't they -- i don't know who could stop them from mapping the human body. i don't understand why that's off limits. by the way, they did take all of these pictures, everybody did protest and everybody using google maps, it's useful. >> would you donate your body to google? >> no. i wouldn't. >> do you think anybody should? >> sure. larry page should, sergei, all of those guys did donate their bodies to google and i'm shump the 175 people participating in this will yield lots of interesting information and valuable information for the rest of us. i think that's important. it's important work they're doing. i also think google needs to keep in mind that there are privacy issues that get increasingly precious, the closer you get to the human body. once you start mapping bodies, people start wondering does google want to map my body? >> of course. >> like tsa to the extreme. be careful how they communicate

about this. >> you have to understand what's at heart of this company. they want to map everything. everything. >> oh, yeah. >> he has always been like this. >> i understand. >> we're okay with the solar system. when it comes to the human body, people understandably -- >> why not? >> check the box on the back of your driver's license, you're signing away your rights. >> lots of things google could map. the inside of your house, if public record. >> hey -- hey -- >> that they need to be careful about. i think that's sort of the sensitivity they need to retain as they get grandiose and instainly rich, need to be careful about those things because public perception can come back and bite them. >> jon, like this since the beginning. you have to understand. this is not a new grandiose thing. from the very beginning. >> and it's burned them on occasion. >> doesn't necessarily make it okay if down the line there are concerns about this data being in one place? >> i guess. not going to matter. they'll keep doing it. >> before you go. >> whatever. >> already mentioned uber.

re/code was the one to break the news. facebook and uber discussing a partnership. zuckerberg held preliminary talks with uber's ceo about potentially embedding the service into facebook messenger. interestingly, the conversation revolved around that messaging app, facebook recently hired paypal president david marcus to run to generate revenue, even if it takes a little while. struck at the app store, not only the kardashian app was number one but facebook messenger so high and already has 200 million actives. how much are they studying the chinese, wii line app and others looking to disrupt the space? >> make it nmore useful. they wants whatsapp and things like that. want to make them more useful. adding a car service is a natural progression of all the things. doing that in china. hail a cab with these communications apps. this is a natural partnership for both of them and makes total sense. i found more out yesterday. it's a little more advanced than i thought, but it's a really

important thing to start putting things useful to users in these apps so they use them. >> smart, kayla, for uber, could potentially see people using the app undermining a cab, hailing a cab through facebook messaging a.m.? >> unclear who it would benefit more, facebook or uber. uber is insanely popular in the last year we've seen with the valuation. a household name and people are applying uber as a verb to other companies and industries, too. to have that service be connected through another app i think only underscores how ubiquitous a service like this has become. >> quick, financial details? >> not yet. in thor stages. ceo to ceo. travis and mark. so it's a really interesting relationship there, and i think that's how it's going to happen. the idea -- when they hired david marcus, what we said, marc called travis, very serious about this messenger app and hired a significant executive and will start really turbo charging this app. i think it's -- uber's the exact

right one to pick to start with for sure. >> seeing the fruits of that focus paying off here potentially. thank you very much this morning. appreciate it. kara swisher of re/code. minority shareholder in, nbc, a partnership as we're sharing this morning. watching the markets this morning. dow down 147 points. we did get higher durable goods orders this morning, but weak shipments led a lot of economists to start cutting q2 gdp number. why we're seeing a sell-off as well as geopolitical concerns going into the weekend. s&p 500 down 10. nasdaq down 31. a lot still made up of by amazon. amazon, of course, with its earnings out after the bell yesterday, as we've discussed, the nasdaq is led into the red by that. visa cutting its sales outlook. dragging on the dow. wlo looking at amazon down 11.2%. pandora also posting weak numbers, down double digits. gm a downgrade from deutsche

bank. stock down almost 3% here just a couple hours into trade. we have broad movers to the down side across the board. some earnings, some growth but a lot to go around today. >> one crazy ipo. take a look, meanwhile, what's moving to the up side. could this be the next chipotle? the company began trading surging in its nasdaq debut up 25% in a tough tape. we'll speak to the company's ceo when we come back. plus the owner of the jacksonville jaguars first on cnbc right after the break. one last check on the markets heading to the break. "squawk alley" will be right back. you far, 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 powered by active trader pro. another way fidelity gives you a more powerful investing experience.

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welcome back. markets took a leg lower. dow jones industrial down 150 points, about 9/10 of 1%. similar pressure for the nasdaq. s&p off half 1%. bob pisani on the floor of the new york stock exchange. seems to be focus on sanctions in europe against russia here. >> take a look at brent. i think you're right. there are some reports, we're trying to confirm them. therapy floating around. mr. von rimumpy, president of t european council may now be backing sanctions against russia. brent crude spiked on those reports. put up brent there. there you go. that's what i think moved the market to the down side. oil stocks, market leaders recently, moved down. put up s&p energy, oil stocks moving to the down side on that

news. and also we saw the german stock market move to down side. here in the s&p we saw, there's a german dax market moving down here and remember, we may say here in the united states that what has been going on in ukraine has not had a dramatic affect on our stock market but it's starting to effect the german stock market. and they have concerns about growth but the ukraine definitely affecting them. the dow weaker overall because of visa and comments made. verve nhu lower due to the strong dollar talking about. another new multimonth low today. back to you. >> bob, thank you. reminder, european markets close in about 15 minutes. simon hobb will have more. a special got with scott wapner. >> thank you. nfl season almost here. training camp kicking off this week. for many of the teams around the nfl, we're so pleased now to be joined by the owner of the jacksonville jaguars, shahid khan first on cnbc.

welcome. appreciate your patience waiting to deal with live television issues sometimes you encounter in this business. welcome. good to have you. >> well, thank you very much, scott. thanks for having me on. >> we can see behind you, of course, this stadium, and what are the biggest end zone video display screens now in the nfl. i know there is jerry's world down in dallas. are we going to call this shad's world now? >> no. you're going to call it florida's world, or jacksonville's world. and these are a different dimension. so, you know, they're bigger than the football field itself. they're 360 feet long, 60 feet high on both ends. along with a number of other things. pools, palm trees, wireless. a whole new experience. >> you spent $20 million of your own money on these displays? is that right? >> yeah. yeah, because i think this is a community, you need a

private-public partnership. the city of jacksonville, the state of florida, through sales tax rebate, that's how the other portion was funded but we want to raise the bar. this is the power of football for the game day viewer sitting in a stadium. a lot of reasons for them to get out of their house and get in here. >> speaking of that, you've basically brought the man cave to the football stadium. that's kind of the idea behind this. right? >> ah -- well, yeah. to the power of ten. i mean, this is a quantum leap from the man cave. but it's like, yes. anything a football fan could imagine is here right now. >> i think it's interesting that you've actually eliminated, as i see here, some 9,500 seats to make room for some of these two-level party decks, and these cabanas. correct? >> yeah. we did. we were just really over compass tized for the market, and i

think this brings us down to still about above average for nfl stadiums. we'll be at about 67,000 now. >> how have sales been? i assume these cabanas are geared more towards a corporate client? what can you tell us about sales? >> well -- well, i think sales have been phenomenal. i think we are -- we've sold 7,000 new season tickets already. this year. the cabana's one deck is sold out and the other deck, the lower deck, by the pools, is about two-thirds sold out. we hope to sell that out here in the next couple of weeks. >> 12,500 a game, which doesn't work out too badly, if you have a group of ten or so, what, $250 per person? or you can have a larger group obviously than that. have a pretty nice group up there. >> absolutely. absolutely for especially an event like a birthday, or any kind of gathering. i mean, it's perfect.

the venue, the field, the ambience. you're going to have to come down here, scott. do a show here, and then you'll be able to give how good it is. >> that's a deal. can you get 100 people into one of these things? that's what the cost would work out to. >> yeah. you can. you can. and some are using less, but either way, i think you're going to get a lot of people in there. the scenery is beautiful, and, really, the sound system with the high definition boards, we've been running it through. we've got a big event tomorrow night. with a dc united game followed by cary underwood to unveil the boards, and it's just mind-blowing. i've been to a number of stadiums. i'm sure you have. it's kind of raised the bar and we'd love tore feel like you to come in and really pass judgment. we'd welcome that. >> well, my final question, sir. wondering if i could ask you,

because you are in the unique fraternity that is nfl ownership. certainly one of the big water cooler discussions today on all forms of television and social media is whether ray rice, the star running back for the baltimore ravens, got a, quote/unquote, slap on the wrist by the commissioner for that domestic violence incident. how would you characterize what the commissioner did and whether the punishment was tough enough? >> well, scott, i think you know the commissioner is doing his job. i think somebody like -- it's like, we are in no position, frankly, to be passing judgment on this. this is a horrible thing. and -- but what punishment fits the crime? i think that's for the commissioner to decide, and it's like anything else. there's going to be people who agree and who will disagree with that. >> shad, appreciate you, again, your patience in standing around for us today. good luck with everything down there and maybe we'll find

ourselves down at one of the ka ban nass one of these days. >> absolutely. love for you to come down. we're waiting for you, scott. >> thank you. be well and good luck this season as well. >> thank very much. guys? >> thank you, scott. busy morning for him. and loco surging opening trading for the nasdaq, at the nasdaq. the ceo is with us first on cnbc next. the shares up 27%. all the more impressive. look what's happening in the broader markets now. big selling pressure. dow off 160 points as talk about eu sanctions against russia continues. we'll be right back with more on these markets in two. moderate to severe crohn's disease is tough, but i've managed. i got to be pretty good at managing my symptoms, except that managing my symptoms was all i was doing. when i finally told my doctor, he said my crohn's was not under control. he said humira is for adults like me

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welcome back to "squawk alley." economic out shares of the chinese internet china. google of china, if you will. near session highs. report add 34% increase in second quarter profits after the bell yesterday. citing strength in its mobile

services unit for that. those shares, chinese internet looking very strong in today's down market. back to you. >> thanks so much for that, dom. watching shares of el pollo loco, fast casual restaurant known for fire grimed chicken. open for trading at the nasdaq. shares under loco, l-o-c-o, up 307%, pricing ipo at $15 aftermarket yesterday. the ceo is joining us now for an interview. steve, good morning. >> great. welcome and glad to be here. >> good to have you. you first filed for an ipo for el pollo loco filed, eight years ago. knowing what you know now about the market in between that time, the financial crisis and finally hitting the public market in 2014, what does it mean to you to watch the shares trade the way they are? >> we're obviously very pleased. we're interested in the long term share price of the company,

and very glad to see the performance today, and i think it's indicative of the road show we just finished. the positive environment that the investors saw for our product. >> and especially with the volatile economic back drop as we're seeing today. no small feat to open this way. i'm wondering, you priced at the high end of the range. raids $107 million at that price. how 23far will it go helping th company pay of you its debt? >> nice to take us back nine months ago. s 40ds million in interest payments. refinanced last fall. paid 20 of that down. 100% of these proceeds will go to pay down debt. we'll be down to $10 million now. so the difference in cash flow, the improvement in the balance sheet we're going to use for growth, because we spent the last three years really getting ready for that, making sure our food was great, our environment

was great. and now it's time to grow the brand. >> steve, is this a chipotle industry? how much chipotle lessons are there and what at this point are you doing to try and become the next chipotle if that is indeed one of the long-term goals here? >> right. we're not trying to become the next chipotle. first of all, i think they've done a good job at educating the consumer on quality product. we look at our positioning, which is, we call it qsr plus. we provide the quality of food you'd get at a fast casual and environment but get in convenience, speed and value of a quick service restaurant. our per person check average is, per person average is $5.83, which is very, very competitive to qsr and fairly significant, about 15%, below a chipotle and panera pricing. we think the consumer is saying something else. they really want a better

quality food. the other thing they want is healthier items. our flame grilled citrus marinated chicken, the hero product, is healthy. we just introduced a five under 500 calorie menry, which has been very well reserved. we did this at the first of the year. so we think that's where the consumer is headed, and that's what we're providing in our qsr plus positioning. >> steve, your prices may be more competitive than cha pote lei as you say but a little more expensive than mcdonald's and wendy's. i'm wondering, you did see strong same sales store growth in the first quarter. wondering how the consumer at your store feels in the second quarter and what growth and spending for them looks like? >> well, we reported that continued comps in the road show. we said it would be -- not finalized yet. not finalized audit, but between 4.9 and 5%. continued positive comps there.

and over the past two years, we've driven our comps, you know, up very, up double digit. significantly. that's the reaction to the consumer, to the product we're offering. the food is great. chicken is very healthy for you. it's flame grimed, not deep fried, and we think that's where today's consumer is, grilled. >> steve, appreciate you join us and congratulations on a strong debut. >> thank you very much. we're excited to be here, and we're excited for el pollo loco's future. thank you. >> thank you so much, steve sather. a lot of journalists had fun with the puns around el pollo loco. >> and people watching that performance again. simon hobbs is here. across europe and europe, everybody is talking about as the dow is off 150. >> a difficult day for europe. kicked off with the german confidence survey. business sfds survey. nine-month low. events in russia and the ukraine clearly biting into sentiment there in europe. i would actually highlight on the positive side the uk gdp

figure indicating actually britain is growing at a rate of 3.1% putting it the best performing economy within the top of the developed nations, although, of course it may mean interest rate rises further down the line. the big surprise overnight came with luxury goods in europe. the largest operator in the world surprised with weak figures, it can't sell fashion and lever in asia and bought the our players into negative territory, you can see. all day discussing rupert murdoch and the fact that fox in europe is selling off some of its paid tv products to raise $9 billion to assist it with the time warner deal here. meaning effectively the akwirer of the assets in germany and in italy is going to have to heiss cash debt. fox still owns them as well as they build upon european tv platform. should mention a deal within building within the united king dl. two play, announced they are in

merger talks. the top gainer today was actually royal bank of scotland. still owned 80% by the uk taxpayer. came out with figures better than expected. up 11%, you can see. part lay because of lower loan positions, the other big gainer, air france klm as it continues to cut costs, results above expectation. mean meantime, further sanctions against russia. that's the story for next week and may move the markets. back to you. >> simon, that may be the story heading into the close here. >> may be why we're lower, yes, but not signed off on it yet. >> good point. off 143 points. 160 at the low. simon hoss have a good weekend. >> you, too. up next, es collusive interview with brady chairman of the joint economic committee. this as president obama is weighing in on the debate in his interview with cnbc more from starbucks howard schultz. one of the names in the red. markets are moving lower today as mentioned. we'll be right back. my mother made the best toffee in the world.

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welcome back. markets slightly off lows of the session recorded minutes ago. the dow off as much as 160 points now off 133. again, geopolitical tensions take the spotlight, at least for the time being. see how or, if trading improves now that europe is closed. president obama taking a shot at congress speaking out

guess u.s. companies by striking deals with overseas firms. what he told our steve liesman in a cnbc exclusive. >> i think most people would say, if you're doing business here, if you're basically still an american company, but simply changing your mailing address in order to avoid paying taxes, then you're really not doing right by the country and by the american people. >> we've reached out repeatedly to both democrats and republican, and our argument is simple. if we lower corporate tax rates and close loopholes, there's going to be more center in terms of what corporations pay. so there's a whole bunch of good reasons why we should do it. to be honest, it's not getting done is that congress, you may have noticed, is just not real productive. >> joining us from texas, republican congressman kevin brady, chair of the joint economic committee. congressman, great to have you here this morning. i want to start with something

from business round taibl told us as well. fingered texas. rick perry saying, congrats to us for taking business from other states because of our lower tax rates. how can the u.s. turn around and blame its companies for overcharging global territories in the same way? >> you can't. the president's wrong really on two counts. one, businesses in america pay a lot of taxes, unfortunately they pay the highest corporate rate in the world, and so for them to compete, survive, grow, in an increasingly competitive world when competing against companies whose tax rates are half of theirs, they have to do something. the answer truthfully is fix the broken tax code. and the president's wrong. he's not reached out to republicans in congress. we've been working on ways and means three years every day on this. and the white house, frankly, hasn't darkened our door. >> the real problem, no meeting of the minds on this eschew. the white house has its appro h

approach, congress, the house its approach. no compromise to breach the different views how to move the country so nothing will happen on this issue in terms of corporate tax overhaul out of congress? >> we don't count on the president leading like in so many areas, that's why house republicans developed a tax reform discussion draft first talked about and refwlit write years. a start to move the ball in the right direction. we think we can make it for pro grosso. the president isn't going to lead. we will and we'll stop this when we fix the broken code. >> congressman, what's so hard about this? used to be back in the day there was compromise in congress. republicans wanted one thing. democrats another. meet in the middle. there are enough people who probably agree that the corporate taxes could come down. some loopholes could be closed and something could get done. seemed like folks in congress get rewarded for talking about stuff and their positions more than actually getting stuff done. what's so hard about this?

>> you know, the president leading on key issues would be immensely helpful. >> ah, don't blame the president. >> that's how it's gotten done in the past. in the house, we're not waiting. we've passed now more than 300 bills to the senate. they don't have to agree on them, but pass something out that we can try to hit that common ground on. we've acted on tax reform. we'd love the senate to do its job. >> so what would leadership in this case look like, congressman? another executive order? i mean, he suggested -- >> no. absolutely not. >> he suggested to steve liesman, why not put a clean inversion bill on the table? don't try and tackle full scale tax reform now. only deal with this issue because capital is leaving or country. a fact, many data points to look at. what is leadership looking like? >> yeah. it isn't an executive order and certainly isn't this inversion bill which ignores the root causes of these companies uncompetitiveness and actually makes the problem worse.

if the president bill -- >> in the meantime what do you do? >> hold on. it would force more american jobs overseas, not simply where they're located, where their official work is. >> congressman, i want to ask you a question on sanctions before we let you go. first, just how you respond as well, something mark cuban told our network this morning. he said basically the american public shouldn't back companies doing this. it's effectively going to end up raising tax rates for everybody. stan druckenmiller echoed that, saying the shareholders of these corporations that are paying more in taxes in some way, shape or form as this all moves forward? >> what i see is that american companies are struggling to create jobs here in america. they're finding they can't compete around the world with this broken tax code. they're doing what they need to do to try to grow themselves as a company. i think the best tax relief is not only fixing this broken code but doing it in a way where

companies who suck seceed can it here in the united states. they can't do it today. the root cause is what we ought to tackle. >> see if we get there. more news out of the eu levying sanctions potentially against russia. on technology, could include technology bus potentially exclude their oil sector. what are the further plans of the u.s. with regards to sanctions against russia? >> right now the president is making minor steps in the sanctions area. doesn't seem to be serious about taking the step and frankly europe hasn't been serious about taking the real steps that would cause a change in behavior in russia. sanctions were only if everyone was involved in it. until we get u.s. and europe on the same page, i don't think we'll see a change in behavior. >> interesting. congressman kevin brady, thank you for your views. appreciate it. as stocks move lower, amazon leading the market down. currently down some 11% after

weak guidance. even amid revenue growth aftermarket yesterday. dom chu is back in hq looking at other names where earnings, those numbers don't tell the whole story. >> so kayla, who needs profits, right? apparently investors in these stocks don't need them. look at the larger cap stocks in america meshrd by the russell 1000 index and out of the 1,000 stocks in that index, just 85 currently trade with a theoretical negative price to earnings ratio meaning over the last 12 moss they are not generating profits, rather generating losses. straight losses not accounting-type adjusted earnings losses. these investors are investing in a dream or the promise of profits in the fiuture. notable names. link linkedin. profitable in the past. immensely so. last quarter, a big loss after a boost to expand and now the stock is down 18% so far year to date. investors hanging in there

thinking linkedin can be successful like facebook. an interesting story with linkedin. how about tesla? another one here. is the future of the auto industry actually electric cars? if so, is tesla the best company to benefit from the theme? tesla consistently generates quarterly accounting losses, but the promise here is the expansion of the model lineup and spending leads to profits down the line, perhaps those shares up 50% this year despintd the lack of profitability, though current valuations more than half of analysts have a hold rating on this particular stock. internet radio. talk about pandora, in the news today. the question, will profits come amitts a highly competitive space for online music especially if the big guys like apple and google really start getting into the mix with online radio and online music. losses for this company have come in six how the last eight quarter, and the stock is down 7% this year. still, 70% of analysts have this stock as a buy. all of this vis-a-vis amazon,

guys. for some reason amazon today investors are not at least buying into that story. at least for today's trading session. back to you. >> dom, thank you very much. keeping about e ing an eye markets. tough week. off 1357 points f points on the. we're back in two. [ female announcer ] there's a gap out there. that's keeping you from the healthcare you deserve. at humana, we believe if healthcare changes, if it becomes simpler...

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to the day. off 2.4% after beating the street on earnings. starbucks ceo on earlier and jim cramer asked about the stock's reaction. >> when you have 7% growth and comps on our base it would just be irresponsible to give guidance going forward that we can maintain those kinds of numbers. so instead we say, mid single ditch pts on comps, best of class, candidly look at mcdonald's or dunkin' donuts, any of the other companies trying to compete in our space, we are winning and winning around the world, and when we look at the growth of the company, we are building a great enduring company, and we are in it for the long gain. food, for many, many years at starbucks was not our strength. i said today unequivocally, today starbucks, the creative advantage with the opportunity with acquiring, giving us fantastic quality food. our people are proud of it,

customers are responding. food sales are up significantly at starbucks not only in the morning day part, but this is really important. in the afternoon and evening with iced tea and physio a higher level of food attached a food is a clear stretch for our company and people are coming to starbucks not only for the integrity and quality of coffee in a cup but also for food. the last thing i would say and i said it on a conference call, i think it was lost. we are building flag ship, iconic stores in the genre of nike town and apple all over the world and these stores are proving to be significant drivers of high volume profitability, shine a halo on the brand and we have a flag ship store, new concept coming in fisk's '15 i think will knock people's socks off. >> yeah, but if it's not an iwatch, jon fortt, nobody cares. >> interesting. a trend guiding conservatively. maybe say realistic and the market reacting.

pandora's story is similar today. i wonder with the amazing run the market has had, one of the hardest things about our job and probably for investors, figure where the stock was before earnings? was that fair? or was it maybe a little ambitious? so this is the reaction. >> average estimate for earnings next year on the street, about $3.16. trading at 78. kayla, it's priced for a lot of the growth that he's talking about even if perhaps not one of the new con septscepts. >> investors are used to the 18 straight quarters are fwleeg or above. yes, maybe not seven every quarter but investors want to know that's the floor that they can grow on top of that. >> good point. >> interesting to see flag ship stores. how do you sell coffee like shoes or technology? how do you bring a payments out of a coffee company? >> exactly. we'll watch. markets in the red as mentioned. dow off its lows, down 137 points this morning the nanasdar

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jicks this week on "squawk alley" we launched a new series finding some of the best active crowd funding projects. here the how it works. we chose two companies surpassing funding targets and put them head to head asking you to vote. the companies, air dog, makes a drone and a low-cost 3d printer with an online design store. a close race throughout the week. leader, 53% of the vote is -- new matter its new 3d printer. take a look. joining us to talk about the winner and its company, co-found chairman and ceo bill gross. bill is also the founder at ceo of ideal lab @billgross. >> honor to be here. >> you've started over 100 companies in your career. wondering what is different

about the product and its place in entrepreneurship right now? >> 3d printing is going to be transformative to manufacturing. the idea that you could have something in your home and make a part on the spot is just so amazing. throughout the history of manufacturing, it's always been about building bigger and bigger scale. making more of the same unit at the same time. finally we can have mass customization so you can make something to the, tailored to the individual. that's really, really excites. completely revolutionary. >> the obstacle to 3d printing has been cost. a huge criticism of this industry. this would be $249. according to your fund-raising web page you think you could ship it by may of next year. how do you get it so cheap and what does the product cycle like look. 3d printing currently an industry that sells about 50,000 units a year. a little more than 100 a day. we sold in our campaign more than 100 an hour. showing when you reduced the

price by a factor of ten, consumer demand is enormous. what we did to reduce the price so much, come up with a new technology and design that radically simplifies the mechanism to reduce the parts count, make it more reliable and accurate and, again, make the price point so it's a mass consumer item. this is going to be a breakthrough that turns 3d printing into a mass consumer product. >> bill what i keep going back to what is it for? what's the killer app for 3d printing that's going to make your neighbors say, ah, got to have this, because i'm going to print -- what? >> right now it's small plastic dinosaurs. >> right. incredible what you can do. i believe there's going to about 3d printer in every home, in every classroom, in every office and factory, but to answer your question. what for? well, you can, for kids, it's unbelievable for education. it teaches them creativity in math and geometry and planning and visualization. for education, incredible. for producing spare parts. something has breaks in your house, produce a spare part on

demand in a minute. this morning kara was talking with you earlier ash the instant gratification economy. about same-day shipping. what about same-minute shipping? i was flying little propeller airplane with my son. the propeller broke. print a new one in 30 seconds and have it immediately. norm lip take a week to get. >> you guys are right on the cusp. looking forward to seeing the first prototype when it rolls off the assembly line next fall. thanks for joining us this morning. >> thank you. coming up, a few billion reasons mark zuckerberg is happier than jeff bezos going into the weekend. "squawk alley" is right back. machines will be sprayed to be made. and making something stronger... will mean making it lighter. one day, factories will work with the cloud.

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if we stack him up against the google guys. larry page and passed jeff bezos. he lost some with earnings. now above them, and these guys say they don't keep score. they keep score. >> bill gates at $85 billion remains number one? >> sharp fries for facebook, 197 to catch up to bill gates. still possible. >> not today. >> anything's possible. thank you very much. kayla, jon fortt, thanks for letting me right along this morning. so much happening. that does it for us here at "squawk alley." over to scott wapner and the "halftime report." >> welcome. today's game plan from post nine. rumble in the jungle. amazon reporting a big loss. this time investors aren't having it. has jeff bezos lost the midas touch? sad song. pandora hits a sad note. josh and steve, head