in celebration of my good friend and colleague sara eisen's birthdays, a picture of her child kindly supplied by her sister without her knowledge. happy birthday. you were beautiful. >> you can see a real blond, too. i keep telling you. >> the only one on the network, aapparently. time for "squawk alley." over to you. >> wow. graduated from milk to martinis for sure. happy birthday, sara. it is 8:00 in netflix headquarters in los gatos, california. 11:00 a.m. on wall street. "squawk alley" is live. ♪

and the welcome to "squawk alley" for a thursday. we're here with henry blodgett, editor and chief in ceo. as always, jon fortt and kayla tausche. good morning, everyone. busy day, market mildly negative. milestone for netflix. a post on facebook, ceo reed hastings said the company passed hbo for the first time of in subscriber revenue. kicking our ass in profits and emmys but making progress. we are honored to be in the same league. and a graph shows how far netflix has come over the past year. now back in 2010, the time warner cwarn warner ceo asked if netflix pose add threat. >> a little like is the albanian

army going to take over the world. i don't think so, and what a marker, what a significant milestone looking at that quote as it is today. >> well positioned. netflix. not an either/or, both great company, but netflix is taking advantage of the new distribution platform and as a result rolling. >> think about a company founded in the mid to late '90s and reed hastings only in january, 2013, right before the launch of "house of cards" started talking about this comparison to hbo and people thought you'll never get there. hbo is such is a leader in its category. and to think about just a year and a half later, that they are passing that milestone. unbelievable what it says salve how netflix has changed its own profile as a company that in short of a time, too. >> and developing the same way hbo developed. when i was a kid, just other people's stuff. only later they began making their own movies and now netflix

is moving into that, moving into shows and everything else. tremendously powerful. >> not a straight-line comparison. hbo still has a lot more subscribers overall, i believe than netflix does. if hbo go were unbundled from a cable subscription, revenue a lot higher than today and a lot more profitable. >> i think that's a big question. the idea is netflix has the direct relationship with every subscriber, people forked over their credit card, they know who you are. hbo, dependent on cable operators and directv. and intermediary. everybody knows hbo and love it, but would you have to actually pull out the credit card, buy directly to do it. that may be tougher than you think. so i think if they switched over, it's not a guarantee that revenue would be there. >> a lot of people argued, hbo is much more international already. better entrenched overseas. something netflix is only now trying to get underway. >> really, it's not either/or. they both can exist. we can have a lot of very

successful networks. the main message here is that netflix is here to stay. it is the future. it's amazing what they do across devices. where you're watching on your tv, you walk out of the room, pick up your phone, hit the same thing and it's paused right in the same place. it is magical. >> but if next week hbo decided to go straight at netflix, we're going to unbundle, wouldn't it be a little more either/or. i have content, movie, show, get those on hbo versus netflix maybe, where am i going to spend my $8 to $10? >> maybe future subscribers. those has in netflix already have cable. most of them. it's an add-on. all right got hbo. the idea again, if the switch flicked all at once, all of those will beo subscribers, 29 million across the u.s. have to take occupy credit cards and -- we have hbo. it's fun.

>> do you think willing to give up the crutch of the cable fees? >> they're clinging to it. that's w why nighetflix, you do want to make the leenchts fascinating how time works against you in cases. next story, are google and barnes & noble timing up to toik an a foe? able to get same-day delivery using google's delivery service, sflabl manhattan, west l.a. and san francisco. s&p pointed out to me, best retail stock of the year is barnes & noble. bks, up 40%. >> a little artificial. they spun all right nook, something investors had wanted for so long. that hadn't been baked into the price, because barnes & noble as company hadn't been able to deliver on some of their promises. a real surprise when investors that you and that's really,

carl, the reason for the bounceback in that stock. when you think about this announcement today it is something of a hail mary. of course, barnes & noble, only books. what type of items do you normally need same-day? thinking of, you know, baby formula. or paper towels. things that are a necessity. even though you might want to have a book right away, i can't think of anything beyond really a textbook that would give you that need. >> they have music, movies, kids games, beats, headphones things like that too. i don't know if google will sgee that as well. seems there's a danger or barnes & noble. just handing merchandise over to google and not getting the data in these cities about exactly what people are ordering and why, thir just giving away the store. that's the value here. i worry that google does these one-off experimental projects and don't always follow through. this is important for barnes & noble to understand what's going on here. >> and very tough to pull off seamlessly. understand why going wants to do it, retail, spends a lot on the search ads.

go, like amazon, in the city, click there, get it. going many delivers it. a nice idea. tremendously difficult to actually execute it, with many, many retailers, the distribution, does it arrive on time? amazon has been doing it a long time. it's hard. >> not saying this is one of bezos' partners? >> no. this is very difficult. ebay tried it. it's tough. >> if nothing else, barnes & noble gets action to google's data and customer base and google access to who's ordering on barnes & noble. >> that's what jon is skeptical ap. >> about the data part. maybe access to some data. how much realtime? how much can they cross-reference this? >> still information they didn't have before. >> yes, but only if they're getting enough of it that they can do their own thing, slice it and dice it. just handing over stuff to google and not able to look deep lip into the customer base and figure what to do next, based on

this activitactivity, could be negative. >> otherwise, big, beautiful stores they spend so much money on reduced to a warehouse. >> speaking of big, beautiful store, the iconic glass cube, apple store in manhattan may soon have a new neighbor. its rival, according to the new york daily news, microsoft is looking to open a new store right down the block from apple on fifth avenue. eyeing and 8,700 foot two-story space. last by fendy. can it work? >> as marketing, for sure. of all of the companies coming out with stores only apple is actually making the model work in a pretty profitable way. what microsoft is doing right now, we talked earlier in the week about how much money they're losing on hardware. this is like a marketing sdpoens kind of help their partners and help themselves market -- >> you remember covering the first apple store and people said that was marketing at the time. no one saying it was going to be the most profitable retail space

in the country. true. >> so maybe microsoft turns it around. the model is very difficult. microsoft is not just telling its own wares, promoting its ecosystem, oem hardware's in there. hard to see how that becomes profitable in the same way. investors should think of it as a marketing expense and evaluate based on that. >> one of the main reason apple stores are sorry successful, they sell apple stuff. people want it. gadgets. incredibly expense inand dense per square foot. microsoft the main business is software, you now can down load. don't need a store do it. >> eye-popping, 59th and fifth, tourists going there without intention of buying a product until they get there. just want to see how it looks, how it functions, how do get inside. that the draw to get into a building and it's 24 hours. you get the 2:00 a.m. shopper when nowhere else is open.

24-hour staffing. >> headsets like sony and facebook, oculus, go in for that. xbox experience. stuff they can do in there that's interesting, and we'll have to see how creative they get. they need to move product, advance the ecosystem based on this and it's going to be marketing for a while until it gets profitable if it ever does. >> and ups the game in retail. not a sense what shae'll be up to. throwback thursday. opening day of apple's iconic cube store in manhattan. may 18, 2006. what it looked like. this wasn't the first-ever apple store in new york, but probably one of the most recognizable in the country. were you here on this day? jon? >> i was not, but here for the first apple store in new york, which i believe was at the old post office. that was the first store two levels. they had the staircase. steve jobs, was very proud of it. >> knowing sort of his design, the mystique he had, in terms of

design, everything. right? the product, the building, the architecture, all of that sort of a reflection of jobs themselves. >> absolutely. a huge bet that many smart people thought was completely doom and stupid, and it's turned out to be an incredible weapon for apple. an asset. >> a sticking point to opening the store, who got custody of that glass box, apparently jobs instrumental in designing the architecture of that box he wanted to make sure it went with him and with apple if the store ever closed. and not with the architect himself. a very iconic building here in new york, even to this day. >> with all the money, nobody's wondering who it belongs to. all your cubes belong to us, apple, it says. >> all right. henry, you'll be with us for i believe the first half of the show today? we'll see you on the other side of this break. meantime, a check on the markets which have been ducooling off since the show began. dow down 27 points after opening

into the green. s&p down 3. nasdaq down 2 as well. the markets have been pretty much echoing what's going on in europe, which is going to close in just about 20 minutes, of course. escalation in ukraine as well as the ecb decision to keep rates steady, something those markets are watching. we'll keep an eye on that action here in the u.s. meanwhile, shares of 21st century fox rallying after fourth quarter revenue and profit beat analysts estimates. president chase carey saying fox has no plans to pursue other companies after abandoning its bid to buy time warner. 21st century fox up nearly 7% today. a decent rally in the tech sector overall. look at netflix, facebook, microsoft and apple all moving higher. bucking the trend of the overall market today. netflix up 2.25% probably on the back of that hastings post, yeah. when we come back --

>> youtube killed the morning star? beating estimates, ceo joining us to explain why on a first on cnbc interview. republicans coming out in force for uber. a gop official tells why his party is getting behind the car service when "squawk alley" continues. ♪ [ 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. ♪ my mom works at ge. where the reward was that what if tnew car smelledit card and the freedom of the open road?

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welcome back to "squawk alley." we're watching shares, the u.s. listed once of c trip.com using move irpriceline.com would invest half a billion dollars in the chinese travel service operator giving it a 10% stake in the company. this as both companies expand global partnership. shares up by 12% near session highs. priceline, struggling a little but still up by about a half percent on the day, kayla, back to you. >> thanks for that, dom. in kaps you michlgsed it, four teenagers, youtube stars, the biggest celebrities around. the five most influential fipgers for teens are all from youtube beating main stream celebrities lie jennifer lawrence and seth loegenigan. a candid sense of humor for which hollywood are curbed by handlers. interesting to see the most well-known hollywood actor was

the late actor paul walker, fopped by jennifer lawrence, but other youtube stars had so much more relatability to these teens. there's a guy who's a swedish video gamer, 29 million subscribers on youtube. the most followed youtuber, twice as many followers as ashton kutcher has on twitter, to put that in perspective. >> i don't have kids in this demographic. i mean, henry, yours are approaching most quickly, but, it makes sense to me. jennifer lawrence, the kids who are teens when the first "hunger games" movie came out are probably in college now. right? roughly that long, and the vampire/werewolf thing is old. got to get on youtube. >> marks you question the definition of celebrity. we hear, huge on youtube. others may have no idea who they are. right? >> others meaning us old dinosaurs. >> right. >> they are huge. walking into work the other day. a line around the block.

what is it? is it u2 going to play? some youtube star i never heard of stop into the store. glet a picture. people had kwum from far, far away to do it. it is real and the celebrities are making a lot of money. shopping ones, bigger sdlix than "vogue" as these folks get old iri don't think they're switch is suddenly, that was when i was younger. these are the new celebrities. this is real. >> one of the things the teens said they like to interact with them directly. comment on youtube and the stars comment back and they have a dialogue that's more active than just tweeting maybe at a celebrity or going to see a movie or looking at a magazine at them. let's do a straw poll. any of you heard of smosh? >> no. >> the fine brothers? >> great video. absolutely. >> really? how many did you watch?

one? >> several. kids react. they is the video of today's kids looking at a laptop from 1990 and trying to play what do you do with it? clever. entertaining stuff. >> might be an example, though, of another smart acquisition by disney you were tuking about earlier. maker studios. right? hitting the democrat graphic. disney channel and younger, youtube on up. >> hen vi hip. i can't get over that. >> when we come back -- >> believes in the phenom noon. and why the republican party is backing the uber service. plus, threatening employees with a giant sword for bad work. what employee claims mark zuckerberg did when he thought one worker's work was not good enough. t medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare,

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its so close to the options floor, you'll bust your brain-box. all on thinkorswim, from td ameritrade. it is thursday, which means we are ever closer to crowning this weaning tech crowd lead perp face-off features two active kick starter projects

offering smart devices for those on the go. acton's rocket, a type of segway for your feet and pocket-sipszed bluetooth speaker the other one it's going up against. both surpassed their goals. we've asked you the cnbc audience to vote for the device you would fund. the poll closes in a little less than two hours and tomorrow on "squawk alley" we will unveil our tech crowd winner. vote now at cnbc.com, back slash feck crowd. just a couple of hour, guys, get your votes in. and taxi associations, harming uber. what the ceo of new york city's taxi commission told us on the show last month. >> uber's 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 where the pieces of the pie, how big the pieces of the pie are. our concern is are passengers getting the service they need and are safety standards being met? >> the republican national committee thinks differently launch a ring a new petition in support of the start-up. the op-ed calling uber competition anti-invasion. joining us, sean spicer director for the rnc joining us from chicago. good morning. >> good morning, carl. thanks for having me. >> the story seems to be einvolving from illinois itself where you are. what's the background here? >> the background, here here having our summer meeting, and you've got a race in illinois between governor pat quinn, incumbent and businessman bruce ranner who has come out on the side of innovation and uber and we wanted to highlight that. this is really, i'm a huge fan and most of a huge fan of uber. it's also about lift. air b and b, amazon. about innovation, saying that

washington and state capitals and government should get out of the way of innovation and job creation and let the market decide what goes on. as you were hearing from the taxicab commissioner from your interview a month ago, it's all about for them getting in the middle. nothing good comes of politicians getting in the middle of the free enterprise system. >> sean, a lot of issues. you mentioned air b & b, all of these start-ups attacking the way things have traditionally been done, but there are safety issue ises, insurance issues, are you saying you're in favor or laying out a frame twoshg get innovation and also consumer protection? >> i think clearly we're not overlooking consumer protection. that's important. we all recognize that roather itroather -- whether it's insurance, other safety measures to ensure consumers aren't harmed in the public. >> what are you saying? >> but you're not -- that's not what's happening. what you saw whether in virginia or here in illinois is the unions coming out in strong

opposition to it occurring. there's a difference between protecting consumers and blocking innovation. what's happening is, again, you're seeing government get in the middle of innovation, not helping it along, but trying to block it. it's a top-down bureaucratic system versus a bottom-up system where people and innovation and free enterprise succeed with the help of government to ensure that the public's not harmed. a vastly different model than we're seeing throughout this country. again, whether the air b & b, ebay or amazon, consumers demand a different model, one not run by the government and we're in support of that in0 ovation. >> sean what is it about uber as a company individually? air b & b a company we just talked about, could be looking at this saying we're getting opposition in various cities, too. we're innovating in this market as well. wipe is the rnc choosing uber here and not other companies, when you could be making the same point? >> right. as i mentioned earlier, i don't think this is -- we're in illinois right now and this is the fight that's here.

so obviously, it's the most relevant for the people of illinois where we are at the time. as you pointed out, it's not just about uber, it's about lift, about air b & b and amazon, and supporting a culture of free enterprise as opposed a culture of government, hearing from pat quinn here, blockal and stifling innovation under the guise of regulation. >> we know uber has been politically active. they have many fires to fight in a lot of city, not just in this country but around the world. is all of this response to the upcoming midterms trying to find some issue that has widespread popularity around make it work for the gop? >> it's about, partly about that. absolutely. what we want to do communicate to people going to or would consider voting in the upcoming election, that the republicans are on the side of free enterprise, on the idea of an open economy. not a closed economy. about growing the pie.

not closed pie. we're on the side of innovation and free enterprise, not government regulation in respect is, i pointed out, i want to be clear, a difference between protecting consumers and stifling innovation. that's what we're trying to get out there. that there is, this is what's you're seeing over and over, whether the music industry, insurance industry. more and more, it's consumers demanding something and people and innovators and job creators trying to figure out how solve that demand. >> how do you protect consumers without regulating? >> it's sort of one of those things that you know it when you see it. you're seeing in illinois and new york and other cities is unions coming in and saying, that we're against this model occurring. they're not talking about innovation. in the kags of uber, they're, always willing to talk about consumer safety, insurance protections and things like that. that's fine. i think, again, there's a line between that and actually stifling growth and innovation in the industry. and so whether it's the hotel industry, the hospitality

industry, the travel industry, or ride sharing, that's what i think you can come down on the side of just being supportive of innovation or coming down clearly on the side of trying to block it under the guise of more regulation. >> i think it's the issue of unions getting pickup here, sean, but we hope you'll come back and talk about it more at later date. good to see you. sean spicer, communications director for the rnc. i want to thank henry for being here. good to get your insights. >> great to be here. >> interesting day for tech. meantime, 60 seconds until europe closes. simon will count that down. >> carl, the job of the central bank to inject confidence into everybody, mario draghi famed mimpably. europe deeply in the red, broken from wall street and losses compounded towards the end of the session. effective effectively, mario draghi, the ec ecb's conference threatened by the geopolitical risks it's faced noticeably, ukraine. extended losses on what marpio

drawing hi to say today. yes, they are still talking about being unanimously committed if knows some form of qe or buying asset-backed purchases. they can't embark on that because they launched a package in june of potentially a trillion euros of cheap money into the banks and won't know how that's working until september. meantime, he's dismissed low inflation there is at the moment kind of like a quirk. during the course of the session you've seen particularly the italian banks fall into negative territory. italy, of course, in technical recession we learned. and a note out from jpmorgan suggesting germ many may have contracted in the second quarter. that's how bad things are in europe at the moment. indeed, the yield on the two-year german bond fell today briefly into negative territory. still at the height of earnings season in europe. show you some of the losers today. a problem chiefly with actual l

gulf series in the united states. stocks that dus appointed. on the upside, nestle had a reasonable day. returned to buying back their own stock amp early years. a $9 billion stock bibabuyback. things are serious in europe and a lot of people aren't sure which way it will go. back to you. >> that's what everyone is watching today. simon, thanks. more from you later on this hour. meanwhile, check out orbitz. stock trading down by nearly three quarters of one percent. the company slid after earnings released this morning. the company raising full year forecast on the top and bottom lines. that can help the stock today. meantime, the ceo of orbitz joins news a first on cnbc interview when "squawk alley" comes back. tdd#: 1-800-345-2550 searching for trade ideas that spark your curiosity tdd#: 1-800-345-2550 can take you in many directions. tdd#: 1-800-345-2550 you read this. watch that. tdd#: 1-800-345-2550 you look for what's next. tdd#: 1-800-345-2550 at schwab, we can help turn inspiration into action

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20% on last year. that's the core, the beating heart of the business. >> absolutely. our focus on driving the hotel business is a really critical part of what we're doing. our take rate what we rern, sell hotels, substantially higher than airline tickets. our ability to accelerate our growth in hotel and increase the mix is helping us increase the overall blended rate of the overall business. >> yeah. you will be aware that what people really want to focus on, core room night growth. analysts, for example, brian at susquehanna concerned you're continuing to piece together lower margin incremental room night to keep that up. the other private label deals, also the travelocity purchase. the quality is getting less, is the allegation? >> look, we have a diverse fine set of businesses that drive growth across the board, but i would argue that that

diversification is really meaningful to our supplier partners. out there talking to hotels they're excited about the fact we're able to provide visibility to their hotels across such a broad range of dimension. we feel the diversification, b to b and corporate trial businesses are core to the business. >> what marks you out from everybody else, you are focuseding on loyalty programs. now you have a loyalty program on every division within the business. you've launched two or three new ones quite literally this week. can you talk to us about how that is driving those incremental hotel room sales against the cost of launching them? >> certainly. so you're right. orbitz rewards we launched last october. it now has over 2 million members. we launched today the bonus plus program, similar to the orbitz program and cheap cash launched on cheap tickets last month. these programs work by giving consumers stored value in the

form of bonus-plus dollars towards future hotel reservations. so it is allowing us to increase the repeat rate and businesses where we sell more than just hotel, increased attach rate. seen significant improvements in the attach rate. purchases airline tickets who also go on to then purchase hotel room as a result of launches these programs. we're excited about them and why rear rolling them out in other brands. >> thank you for joining us, barney harford. and don't get on mark zuckerberg's bad side among claims he threw water on someone's computer and fake threatened people with a samurai sword just for bad work. first, rick santelli, we hope has no samurai sword what are you watching today? >> samurai sword? it's like harrison ford in "raiders of the lost arc." sword comes out. doesn't matter when he shoots them. central banks are shooting big

guns and the economies trying to fight them with swords. talk about low interest rates. how much good are they doing at this point and discuss a game. a game from the '70s and '80s. pacman, and how pacman might keep you on the right side of the interest rate market, all after the break. thank ythank you for defendiyour sacrifice. and thank you for your bravery. thank you colonel. thank you daddy.

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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. developers are all about speeds and feeds. it's all about latency. it's all about how fast does it run. i often sit with enterprises who ask me about how mission critical and how's the performance of the cloud. and i tell them, if you can make gamers happy, you can make anybody happy. speed is made with the ibm cloud. the ibm cloud is the cloud for business. top of the hour on the "halftime report," playing the putin wild card. how the defeteriorating situati

situation in vash affecting others, and who will be hit the hardest. then taking you off the desk and into the real world with the "half time" traders, what happens after the show in our trade-off series. all straight ahead on the "halftime report." kayla, see you then. >> see you then. 3456r7x p thanks, melissa. if the stories are true you don't want to disappoint facebook's ceo mark zuckerberg. an e-book about his time at the network, nine months in the year 209 -- 2005. according to the book, zuckerberg allegedly dumped water all over a worker's computer, walked around wielding a samurai sword and saying if you don't get it done sooner i will punch you in the face. coming out of that new e-book. guys, we know what facebook seemed, at least, according to the social network mother and

zu -- mother and zuckerberg's position in the early days. >> take no prisoners approach. hard to imagine him doing it today, but not unthinkable. >> a punch button different from a poke button. if this is the worst they have on zuckerberg at this point, looking squeaky clean. compared to tinder and snapchat, that we were doing? need i say more? dumping water and swinging a sword around, not actually hitting anyone, okay. >> yes. >> welcome to a start-up. >> sounds like you worked at interesting places, jon. >> newsrooms. yes. newspaper newsrooms are very interesting. stories there. >> not for television. get to the cme group and check in with rick santelli. >> hi, carl. one of my favorite guests were on today. from southwest securities. we had a debate regarding low interest rates. no doubt at the beginning of the crisis and maybe the timeline for the crisis is a bit different in the u.s. versus the

eurozone, but has that useful fz run its course? an anecdote's example wyche i think has. i have a fleenhave friend who b properties in spain, 2000, 2001. i had a conversation with him. at that time around 200 to the dollar. roughly equivalent to a euro level of 90, currently at 133. okay? this is why falling prices in places like spain, southern european economies, is what's going to fix them. the strong euro relative strength probably isn't as strong as the demark would have been. so the benefit of much of what's going on in foreign exchange is germany. it's the southern economies that really need the help. low rates of outlived usefulness. switch gears. remember pacman? yeah. pacman. okay? so here we have our little pacman, and the reason pacman's important and anybody who used to play the game it takes bytes

out. okay? the rule in three in technicals is about the same. not the first time we've done it, but i could hear the clock ticking. not about direction but in way more a comment about technical analysis. on the ten year, 244 yield, boom. may, july, july and what we're seeing is the third time down, the pacman is pretty much taken the bites out. technical analysis says most likely have a close under 244. same rule of three can apply to another on your radar screen, the dax. look at the 9,000 level. pretty much right now potentially making a pass for the third time. should it close below 9000, and it hasn't done as much work as we have at the 244 level, which we've been intraday playing with for quite some time over the last seven trading days. these two charts should keep you not only out of trouble but should correlate quite nicely. back to you. >> all right. thanks so much for that reminder, rick. up next on "squawk alley,"

these days with things like uber and same-day delivery, you can get whatever you want in almost an instant. what are the next big companies in the so-called instant economy? we'll tell you, when we come ba back. what happened? stress, fun, bad habits kids, now what? let's build a new, smarter bed using the dualair chambers to sense your movement, heartbeat, breathing. introducing the sleep number bed with sleepiqtm technology. it tracks your sleep and tells you how to adjust for a good, better and an awesome night. the difference? try adjusting up or down. you'll know cuz sleep iq™ tells you. only at a sleep number store, mattresses with sleepiq start at just $999.98. know better sleep with sleep number. when you run a business, you can't settle for slow.

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i would. switch to comcast business internet and get the fastest wifi included. comcast business. built for business. xbrrngs what are the next big activities next to uber? tap of a touch screen button on your phone? how about grocery, packages, your lunch? rekoepd liz gains that the story. >> reporter: lunch in just

minutes. purchases at your door, an hour later. >> delivered it to the right address? >> reporter: all services available today thanks to technology start-ups in the bay area and new york that could soon come to your state and bringing with them big backing. vcs are giving these companies a lot of money. hungry for a quick lunch? spoon rockets are giving fast food a new definition. my lunch showed up in six minutes flat. in palo alto, i can get food from a restaurant in under an hour using door dash. not just the pizza and chinese you can normally get delivered. caviar acquired delivers from fancy restaurants like one in new york and delphina in san francisco. as far as shopping, the most promising start-ups to check out, insta cart, making deliveries to supermarkets and malls to pick up whatever you want to buy. >> joining us this morning, liz gaines, got to try all of the

services from home. good morning. >> hi, carl. >> a great read. i mean, you quote saying, i want it now. talk about it's not just about food but about massages and makeup. where is it headed next? where is it moving after we get done with ordering food and beverage? >> last week in san francisco it moved to marijuana delivery on demand. >> yeah. that gets your attention. for the truly lazy, can't even buy their own pot without leaving the house. >> 24 hours a day. >> you say about mobile, not in the way you think. not about the consumer having a mobile device, but about a workforce having a mobile device. talk about that. >> right. it's all about i want what i want when i want it, meaning you press a button on your phone it comes to you. what matters is logistics on the other end that gets it to you. that's powered by mobile phones. the workers, independent workers, often we call this crowd sourcing or sharing economy now, hacked into a system using their own phones and bring you what you want. get orders out in the field on the go in their own car without

these companies having to invest expensive low jivgs. >> liz i like you refer to web is and have in your series, that comes to mind for me. we know all of these will not survive, eventually either they'll all go away or they'll be a shakeout of some sort. do you have a sense of when you expect that to happen? and what will determine who survives and who doesn't? >> well, these companies are fairly cleep to run. cheap to run and raised a lot of money. vcs are excited. everyone wants in to the next uber. i don't think the shakeout is happening tomorrow. today, you live in a big city, especially san francisco or new york, you can get a lot of things quickly. there's a virtual clone of cosmo calmed 11 operates only in new york now, which does anything delivered with an-hour for free. if you have a smartphone in new york, take advantage of that now. >> my favorite part of the series, who's actually employed by the companies.

the type of workers and economy that strung up around these companies, in many cases thr e people who have other full-time jobs or are moms and dads who stay at home with their children and in free time drive tore uber x or work for one of these services. i'm wondering what the capability for some of these companies to create maybe not new jobs but supplemental jobs for a lot of these people? >> it's really interesting. this is already happening. if you look at uber and lift, definitely the largest companies in the space, the most established, they just move people around in cars. transportation alternatives. we know about taxis, owning a car, public transportation. they're trying to take on all of those things. between the two of them, created more nan 100,000 jobs in the u.s. alone. i think lift has said yesterday they've created 60,000 jobs in the u.s. yeah, those aren't necessarily full-time jobs, don't come with great benefits but are starting to become a really flexible option. some people call this fractional employment, which i think is an

interesting phrase. employment that fits into your life when you want it to sfwit your life. >> liz, a discussion a lot about how -- to what extent can you scale these businesses, right? sure, it makes sense in san francisco. makes sense in new york city, but is it ever really going to hit omaha, even chicago? how high are the walls? >> it's all about density. some places, there's not density of people. an important thing to think about what comparing this could cosmo and web band, which flopped, the density of internet users is higher than it used to be and smartphone users. even in a larger midwestern town, there are a lot of people who are tapped into this and who might want to work on it as well. i think it will happen in cities. i think it's less liky it's going to happen in a rural area yitime soon. anytime soon. >> indianapolis, maybe. >> sure. >> yeah. i think kayla's point is right on, too. this idea you don't have to make this your full-time gig. it were be supplemental to your

actual job. a great series, liz. congratulations, everybody should go back and look at it. liz gaines joining us today from re/code. >> thanks. over to morgan brennan for a "market flash." >> carl, check out this heart devicemaker. stock plummeting after the company cut its full year prompt and sales forecast on weak sales of heart pumps. as a result, goldman downgrading the stock to neutral from buy and cutting its price target $10 to $28 a share. trade down 28% almost 29%. back to you. >> thanks. when we come back, how many netflix users watch originals like "house of cards" the answer might surprise you, next on "squawk alley" with the dow now down 55.

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ugh. heartburn. did someone say burn? try alka seltzer reliefchews. they work just as fast and taste better than tums smoothies assorted fruit. mmm. amazing. yeah, i get that a lot. alka seltzer heartburn reliefchews. enjoy the relief. markets negative this morning including the nasdaq. mary thompson is there. >> close to the lows of the session, off about nine points giving up earlier gains today. markets took a leg down earlier on the comments by the nato

secretary-general who said russia needs to pull back the 20,000 troops that's amassed agent ukraine/russian border. market remaining sensitive to comments about what's happening in ukraine now. consumer discretionary stocks among the biggest winners on the nasdaq thanks to good earnings news that came out from the media side. look at the nasdaq 100 leaders today. the first one being 20th century fox after the company reported stronger than expected results thanks to strengthen its film and cable units. symantec higher after security software firm reported a 50% increase in first quarter profits and netflix up on the news its revenue now exceeded hbo's in the second quarter making announcement by facebook hastings. facebook and apple continue to be favorites among investors looking for a place to put their money safely and favoring big cap tech names according to traders. quick check of the weak spots at

nasdaq. retailers are the weak spot essentially costco out same-store sales for the month of july missing estimates. among the weaker retailers today along with staples and whole foods as well. again, the nasdaq off the lows of the day, still down 7 points. back to you. >> mary, thank you very much. orange may be the new black, but is it really the thing driving the growth of netflix? according to variety which is citing a new study, fewer than half of netflix user say they've actually watched the original series like "orange is the new black" and "house of cards ". noise disclosing viewership for specific shows. 44%, saying, users watched "orange." 31 for "hours cards." 41 for "game of thrones" for hbo. >> i agree. stronger than "game of thrones" is a big deal. >> imagine three quarters. amazing audience. >> people get netflix just for the kids, don't like that kind

of thing. for that many people to be tuning in and even higher numbers for awareness for certain shows, shows i think that strategy for them is working. >> headline might be less than 50, but should be nearly 50. >> exactly. almost half. when you think about the real purpose of this, how many people has netflix been able to get on to its platform as new users because they see the previews or hear about their friends watching it? i believe it's probably about scriber creation rather intention. >> that's the whole point. dow is negative. mary told you nasdaq having trouble. keep your eye on the ten year today. 243 will be, would be your lowest close of the year. if it were to close at these levels. s&p is almost exactly at its 100-day moving average at 1913. about a point above that. that has been a demarcating line in the past. see if it holds. >> to think a month ago we were

talking s&p 2000 headlines out of ukraine can change it quickly. >> the market's fallen, but can it get up? >> good one. straight to you, jon. melissa lee takes over for the next hour with "the half." carl, thanks. welcome to the "halftime report." starting lineup, mike murphy, stephanie link, pete najarian, and jim lavinthat, straight to our top story. banks of america facing a record $17 billion fine and traders buying the banks with both hands. is the worse news behind the big bank at this point? the make or break for the year-end rally. kate joins us. >> thanks. the most recent settlement deal finalized now, and to be announced over the next couple of days. the were e for stock investors becomes are these banks out of the woods on