good tuesday morning, it's 8:00 a.m. at yahoo headquarters in sunnivale, california. "squawk alley" is live. ♪ ♪ ♪ another one bites the dust ♪ another one bites the dust ♪ hey gonna get you, too ♪ another one bites the dust ♪ ♪ >> nice to have you with us this morning. joining us today. kevin o'leary, chairman of

o'leery financial. and it's a busy morning with dow off about 35 points. first up according to an dreesen horowitz we should get ready for a major boom in tech m&a. we sought 3.5 trillion in deal-making below the all-time high in 2007. there's still plenty of value in the sector, according to the manager. citing companies like linkedin. certainly linked it will in adds to the argument. buying linda.com in recent days. kevin i don't know if you think it's a good or bad thing. >> i think there's two types of acquisitions. one is old dinosaur tech which is no growth left buying other dinosaur tech companies, squeezing the cost out. whacking the back office. driving cash flow. the more interesting is the infinite pes, a twitter or link linkedin. you could go buy real estate and

still trade it up. if can you buy something that's generating cash, and your pe is 100 times and you're buying something at 7 or 8, that's vr accretive and yet the companies haven't done it yet. like they want to stay too pure. if i were them i would buy a lot of stuff that generate cash now before the market reprices their multiples. >> too late for that, john? >> i don't think so think that's what you're seeing more of with linkedin going in for linda.com. maybe scott wrote that before the ink had died on that. but i do think the issue is valuations. take a look at some of the major acquirers, he mentioned in the piece are oracle, google, facebook, et cetera. oracle likes to try to be disciplined about their m&a. very often when you talk to them about things that other people are buying like s.a.p., they can say well they spent way too much ton that. we would never buy that there's so much out there that has high growth rates. and also high valuations. what would it take to get into

an oracle to go out and say i'm going to pick that up? maybe it's going to take more of the stocks coming down for the ones that are public already or the valuations coming down. >> oracle has learned harsh lessons in m&a over the years. google, kept in $60 billion in cash. the rumors they were interested in acquiring twitter. which were knocked down. but are they out of ideas? just too much cash on hand? combination of both? >> thank goodness i'm here, carl, i'm going it give them the best idea they've ever had -- pay me a dividend. that's what you should be doing. at some point the growth slows and the way you transition yourself from a growth-oriented shareholder base to one ha is more long-term, institutional in nature. guys like me say we'll go 1% dividend and grow it over time. it's got a huge franchise globally, why can't it give back some cash to shareholders? why can't they trance snigs. >> i think they're spending the money in silicon valley because there's been such wage

inflation. >> so much of it doesn't produce cash flow. don't worry, trust me. google, that, google, most of it is still coming, 97% in the search-based advertising business, pay some back to daddy. >> larry fink today with the letter to ceos of a lot of major companies saying that buy-backs are a sign that they are out of reasonable ideas on how to utilize their resources. saying we live in a gambling society, we're too reliant on buy-backs and dividends, why is he wrong? >> he's not wrong. buy-backs aren't necessarily always executed. you have ceos promising ges, just promised a $50 billion buy-back. will jeff emelt still be around to execute that? that's a lot. i ask would i rather get a dividend in my jeans or trust the ceo on the board to execute a $50 billion buy-back? send me the cash, i'll take the cash. >> we start a parade of tech earnings it comes a month after

the company lowered the guidesens by $900 million, citing a weaker-than-expected nand for business desk top pcs. dollars will be an issue. people saying the tech quarter when it comes to earnings might be, intel is going to be an important milestone it might set the tone. >> i think it will. we want to see how close the revenue number that they project gets to around 13, $13.5 billion and what they say about pc shipments for the rest of the year. a lot of people are expecting a weakish q 2. what catalyst are there, what are they expecting from windows 10? and how is broadwell doing? we see apple has been pretty strong in mac shipments, we just talked about the new mac book earlier in the week. so that's not enough. we want to see category expansion from intel. do they expect some of these m chips that they have, the broadwell chips to cannibalize some of the tablet business that they haven't been able to really

break in up to this point and then process technology. on the nanometer. what's an update. do they think they'll be able to get some of apple's base band business when that's ready? >> what about their hunger or appetite for large-cap acquisitions? ala altera? >> they have a tricky line to walk. they don't want to say yes we're in the market and drive up the purchase price for everything. but at the same time people are going to want to know with your process technology leadership. how much are you willing to go out there into a programmable semiconductors and maybe bolster some of the margins you can get from that as the fat business gross. >> i think intel is a candidate for transitional acquisition. something huge that gets them into mobile and wireless, it's not place where would you incrementally put more dollars, most of their core businesses are flat, no mark. they've missed the mark on wireless forever. they're in the smithsonian for

missing the wireless trend theext got to do something really transitional and it could be a large-cap deal. when you start a process to buy something that could be transitional and you don't close it it's negative. they should have paid up and bought it. >> isn't it interesting, wasn't it andy grove who said success breeds complacency. complacency breeds failure, only the paranoid survive? that's essentially what happened to a large degree, some might argue, given the market share they once had. >> if grove was there they wouldn't in that situation. that guy whipped everybody with a buggy whip saying move it forward, get us into where there's growth. make sure we have candidates for that i don't know what's happened since, but it's where money goes to die. >> i think intel is more ambitious than they've been in a while. andy grove also told andy hariri of sandisk to take a hike. >> that's a commodity.

>> it's not a commodity if you own the ip, that's why sandisk has done so well and intel is already good at ip and i think they have to figure out what they're going to do in the programmable semiconductor business, that's going to be important to their fab business going forward. and how many more businesses can they go out? what are they going to do about mobile besides subsidizing the tablet business that hasn't really generated income for them. do they see that changing in the next year or so? >> you know this debate going on with qualify ccomm split away f the licensing and manufacturing. that's interesting, where does the manufacturing piece go? would that be a good candidate for intel to merge with? >> qualcomm doesn't have the manufacturing, but if they were to split off the licensing business -- i'm not sure. >> when i want to get exposure to mobile, i buy qualcomm because they're ubiquitous in everybody's device. it's been a fantastic stock to own for a long time.

>> if you could put those two together, could you rule the world. >> now we're talking. look, we drift it up right here today. >> finally check out zillo, shares a shares are slipping after the company slashed revenue guidance. below the $753 that analysts were expecting. spencer ashcroft tells us truly a business softer than expected because of the a battle with the ftc and saying that 2015 will be a little messy. but that 2016 still looks solid. we talked a moment ago about m&a. this's there's risk in the execution and there is taking longer than expected. >> this was a huge miss on an ebita basis and the stock has been pched 12%. it should be down 40%. this guy is getting a pass. he does one more like this and he'll lose confidence in institutional investors. it was a big miss. >> in a case like this where you've got huge m&a that's happening. normally you expect management

to be cautious to the right degree. clearly that didn't happen here. but also clearly they did this transaction when they had the chance. to we'll see how he works through this. but the high valuation certainly it got room to fall. we'll see if he can stabilize and give wall street a message that they're going to believe going forward. >> my guess would be when he was sitting with the cfo, just conjecture on my part. i would say look if we're going to miss, not screw around, let's really miss and let's cleanse the balance sheet of everything. so the next couple of quarters we're going to showcase cash flow so they threw the kitchen sink in and scraped in everything and flushed it through the income statement. that's what happened here. certainly institutional investors are saying he must have done that. nobody misses by 50%. >> would you argue that a 5% decline on the day is worth all that? >> he gambled and he gambled right. i mean that is nothing to pay and i'm going to make the

assumption that he's got a beautifully pristine clean balance sheet with no poo on it at all now. >> we'll find out, always good to see you, catch. kevin o'leary joining us for the a block. let's check the parkts, dow is in positive territory. the banks are the story of the day. jp morgan did move into the green after earnings and revenue topped estimates. jp morgan had a 15-year high. jamie dimon said it's get safer. the company did break an 18-quarter streak, wells fargo. when we come back, another day, another company with valuation north of a billion. dock sert latest unicorn. they'll join us live. ibm's watson making a big jump into health care. counting on apple for help. we'll tell you what it means for the company. and don't count yahoo out, the headline of a new fast company interview with marissa

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it would be an understatement to say start-up docker is just hot. the developer of software that makes it easier to run programs on multiple computers is now on fire. it can count itself as a member

of the unicorn club. up from $400 million valuation just this past fall. the company announcing $95 million in new funding this morning. led by insight venture partners. join us from san francisco, the docker ceo. bon ben gallop. i hear it's so tough to attract new talent. how are you finding in this environment as you're raising money, what are you raising the money for? >> we're raising the money to be able to respond to the incredible growth and demand we've seen for docker. we've seen docker in two short years spread to over four million developers. we're it's been downloaded over 300 million times and we're sikh seeing it being adopted from small companies to large banks, insurance companies, health care, et cetera. and it's hard to track -- >> what is there any vertical in particular that you see as driving that trend more than

others? i mean you've got enterprise customers, but any particular verticals? >> well pretty much these days everybody is into the software business. whether you're you know small start-up or you're a financial company or you're in transportation. or medical. and everybody needs to create applications that they can create quickly. spread quickly. scale to millions of users. and that's basically the vertical that we're in. people writing awesome applications. >> when you are looking to raise new funds in this environment, how do you choose which vcs to go for? i mean assuming you've gotten multiple people trying to hand you suitcases of money, which is what we often here from people who have done well and had customers like you do. >> yeah i think our biggest criteria is to find venture partner who is are interested in building something for the long run. we think we have the opportunity to build one of the most significant companies at least in technology of this decade. that means that we can't focus

just on short-term profits or short-term revenues, but want partners who are able to you know, share in the vision for us that we build something significant that includes building a large ecosystem as well as building our own large revenues. >> hey, ben, a lot of discussion about the term unicorn. unicorns on the covers of magazine. fred wilson says he hates that term. it's turned out to be a negative for the vc industry in general. do you mind it? >> our localo is a whale. we prefer to think of ourselves as a narwhale rather than a unicorn. i think there's way too much emphasis on valuation wand not enough emphasis on the companies that docker can create what are we creating for users, what are we creating for the ecosystem around us, are we making it easier for companies to build, ship and scale software and ship it around the world. >> how much of the fundraising

that you're using are you sticking in the bank versus aggre aaggressively goinged on and spend it on marketing? >> we're up from 40 employees to 120. weir we've got a lot of runway to go we raised our c round before we were done spending our a round and we are raising this d round before we're done spending the b round. for us it's important to grow intelligently and make sure we leverage this amazing open-source community that's around us and make sure that rather than trying to do things the old way, we, we leverage 1,000 developers who want to work on docker and we leverage the millions of developers that are out there helping us bring us into companies rather than going out and fight one by one for every cio contact. >> ben golub, ceo of docker. an exciting time, at the same time being conservative with your cash, thank you very much.

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ibm supercouter watson has won "jeopardy," designed its own barbeque sauce, but hasn't made much money solving business problems. it's trying to change that, taking on the world of medical information. ibm announcing a new unit called watson health to partner with companies like medtronic. ibm senior vp joined us last hour to explain how it works. >> all of this information is going to start to be collected and correlated. as it's correlated. we need to start using analytics on something called real-world evidence that starts to car late the data with knowledge. watson bringing the knowledge and you saw us in the lab take

you through that you have to correlate that with the data. the real-world information that's being collected off these devices. apple is a piece of it. but j & j and medtronics are bringing up other pieces with medical devices. >> they haven't yet, carl, been able to bring this great marketing device, technology, into a business and show that it works to make big money. it's at risk of being the google glass of enterprise and big data. >> somebody said can they ask watson why they can't get ibm stock price up. somebody wrote in on twitter. interestingly he pointed out the amount of data we're going to be churning out as human beings, 1100 terra bytes, the equivalent of 300 million books, one person in one lifetime. passively given to a devices like a watch or other wearables that we're going to have on our person in the coming years. the data is going to have to be analyzed by something or someone. >> hopefully there's money to be

made from sifting through all of that information. when we come back, new numbers on how many people are illegally downloading hbo's "game of thrones." the premiere for the season hitting a new series high. plus what does the future look like at yahoo? fast company asking that question to ma rrissa mayer, wh "squawk alley" comes back. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running.

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good morning, everyone, i'm sue herrera, here's your cnbc update at this hour. secretary of state john kerry and jack lew are on capitol hill to meet with members of the senate. trying to iran out details of the corker-menendez rule. requiring congress to approve any iran nuclear bill before sanctions are removed. a car bomb in iraq. 11 civilians died. 23 others were wounded in the attacks. chinese authorities freed five women activists who were arrested a month ago, sparked an

international outcry. the women were released under conditions that their case remain open for a year and it allows formal charges to be brought later. it's a free cone day at ben and jerry's ice cream shops as the company celebrates another year of business, customers can get a free cone from noon to 8:00 p.m. eastern. the company expects a million scoops to be given away. on that tasty note, that's our cnbc update for this hour. back to "squawk alley." i know where i'm going after the show. thank you very much, sue. simon is here with europe in a lost red. even though the imf did upgrade the forecast for the year. >> the data in europe is quite good, industrial production coming through at a level that jp morgan says it consistent with 2% annualized growth for the quarter. it would appear that we're now entering a critical phase for greece, we've said it many times. the yields are beginning to spike. members of the commission are talking about an accelerated

nature of the talks. complicated talks. and greece having to deny a report in the "financial times" as you may have seen that they're preparing or they have plans to actually default on their debt. but ministers have always said that they were prioritized pensions and wanls above paying back the imf. so there's smoke, there you see the short terms of the return spiking. >> citigroup is saying that it's so divided at the moment. so monday stands importantly as now the main deadline for the working group, the talks between the two sides to actually pull rabbits out of hats in advance actually of the friday april 24th next friday's meeting of the full euro group where they want to clearly have the $7 billion disbursed. greece is running out of cash. and now they're running out of time. banks actually greek banks, what's left of their market capitalization are the worst decliners on the stock market in europe.

it want to message tuillow oil. several times on this show, on "squawk on the street." people who have spoke bn consolidation. spoken about this being a likely target within the uk. today citi upgraded tuillow oil saying it has an attractive portfolio of qualities that remain discounted and that growth looks discounted relative to its global peers, they're pushing it into the frame. and on yesterday's show i was talking about the fact that alcatel and yokia were moving on the rumor that nokia would buy lucent. alcatel is the top gainer, up 17%. within a month you can see the gain you've had there. nokia which has to sell its maps business is in negative territory on today's session athlete. >> guys, back to you. >> simon thank you very much. today's retail sales numbers seem to have disappointed the markets, but not the economists, our steve liesman is back at hq with a split.

steven,dy see even some wire services try to spin it different ways. >> i'm getting positive commentary here. the bonds rally, and the dollar sold off after the data this morning, a sign that markets saw it as soft and the chance of lessening a fed rate hike this was the first increase in retail sales since october. here's the data that economists look at. it was up 09 on the headline number, .1% short of what they were expecting. auts up, building materials, furniture. what they liked in the number was evidence of a weather effect and that's what jeffrey said, they said quote the composition suggests that february retail activity was suppressed by the weather. if that's the case and let's move on to btig, which says we would expect the consumer to rebound nurt coming months, we got a lot of that because of expectations of spending because of higher, lower oil prices and better incomes and more jobs. and then market, on the fed

says, the upturn plays into the hands of policy makers wanting to start raising interest rates in coming months. the opposite of what the market seems to be saying. here's what happened to the gdp forecast unchanged because retail came in light. business inventories came in heavy. so the q 1 tracking remains at the relatively lackluster 1-2. for the forecast for q 2 strong, 3.5%. not reflected in the markets. hfe at 1.8. jp morgan at 1.1 and steven stanley carl, still down at 0.5% for the first quarter. but economists remain optimistic about the second quarter. >> we'll see if consumers start spending those savings. fast company out with a cover story and interview with yahoo's ceo marissa mayer. the headline is "don't count yahoo out." it takes about her strategy since taking over and her focus

on mobile. and addressed what lingering misperceptions outsiders may have about the company. saying for a lot people it's still in their minds as the portal they used to go to in 1995 or 2005. harry mccracken, we come to you for more. would you argue your piece is net positive on the future. >> it is guarded lick positive. there's still lots of unanswered questions, it's not entirely clear what yahoo will look like. but the fact that marissa mayer is building something that could be the future is the something that the last few yahoo ceos did not do. >> i like your piece, but yahoo has kept marissa mayer away from the press to a large degree. for a long time when they finally sit her down with an experienced tech journalist like you, she's eating bluebrings and drinking green tea. she's not rolling out a new

product and she's talking about how stable yahoo is this read to me like a justification if she wants to walk out the door within the next few months and say look, i stabilized yahoo for the next ceo. i mean is that wrong? >> well she certainly didn't talk that way to me. she talked about planning for a long-time future. i did the story when they were having their mobile developer conference, they laid out sort of the infrastructure for making money off of mobile and native advertising and social that they did not have in past years. so it is totally true that there are lots of folks saying that yahoo should get a lot smaller or sell itself to alibaba or softbank or merge with aol. no ceo is going to talk like that. >> harry, how do you separate in your mind her ability to execute right and her track record so far?

from the huge one would argue the very long leash that those alibaba investments gave her, so much time on the clock. how do you separate the two? >> and that's totally true. the yahoo stock has to be really well during her tenure, it was a way to invest in alibaba. and they're about to spin off their alibaba investments, so moving forward, yahoo has to do well by being yahoo. and she has put some of the right building blocks in place, they went from about 50 mobile developers to 500. they made some smart acquisitions such as flurry, which does mobile analytics and bright role which does video advertising. they've not done, roll out a transformative app. when you look at how google got big, they did the search engine, they did g mail. they did google maps these were transformative. not just for google, but for the industry. yahoo's apps are nice but not

going to be big businesses by themselves. if yahoo is going to go to the next level, they have to do something transformative and something that consumers want. >> turn-arounds take time and marissa mayer has laid the ground for that wall street extends to be impatient. but they haven't had with like what apple did with the imac and the i-book. a transformative product with that changes the area where they play. do you have a sense we're going to see that in the next year, year and a half from yahoo? >> when i talk to marissa mayer, she cheerfully said that yeah, they need to do bigger things. one of the things she mentioned specifically to me was messaging. yahoo has a long history with yahoo mail and yahoo messenger of having huge scale there. and they have not doing anything you know, really noteworthy yet with messaging. that could be an area that could be a big deal for them. >> things that they have --

>> well, apple, apple took several years before they did anything that was transformative. so you're right, you do need to be patient with these things and she's not yet to her third year. apple three years after steve jobs came back was also still in a building-back process. >> finally hary, i'm not endorsing this view by any means. but people still write in and argue that she gets an inordinate amount of attention because of the way she looks. do you think that's true? >> i think she has challenges that she might not have if she wasn't the person she was. i've seen a lot of stories that talk a lot about that. i try to drill down on the details of not only what she's doing. but the people she's hired are doing. because i think she has made significant progress on that front. and the fact that she's marissa mayer does give things a different spin than a lot of executives have to deal with and that's kind of a basic challenge. one of several of being marissa

mayer. >> it's a must-read. congratulations to you, a technology editor at "fast company" thanks. since "game of thrones" season five premiered sunday, it hasn't just been driving a ton of social chatter. it's been spark a ton of piracy. julia bortsen joins us with the latest numbers. >> ga"game of thrones" is by fa the most pirated shoef all time. over 4.8 million people have illegally downloaded at least one episode of the four episodes of season 5 since they were leaked on saturday. most of that piracy or the biggest chunk in the u.s. half a million people taking in one episode followed by india and the uk. this isn't new, in past seasons the show has been illegally downloaded an average of about 1.7 million times in the first 24 hours after the broadcast premiere. but this piracy is different and more expensive, because four episodes were posted before the show had even aired on tv.

and we don't yet have u.s. ratings, but in the uk. ratings are up 29% from last season. setting a new record for sky atlantic, despite the piracy. carl? >> all right. thank you very much julia. as we look at some of the numbers. especially considering you got to subscribe. they're doing numbers second only to walkingdead. where you don't have been to a subscriber. >> how many of those subscribers are junior high boy who aren't going to pay for hbo anyway? we mentioned zillo, a big mover. ceo spencer rascof will join jim on "mad money" at 6:00 p.m. when we come back, california's new drought rules are turning residents against one group in particular, farmers who produce almonds, we'll explain why in a moment. rick santelli what are you watching today? >> we're going to have to do a post mortem on retail sales and discuss how many economists seem to be scraping a thin barrel

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and five-star fund manager bill nygrin is here with two names he's adding to his portfolio. we'll let you know what they were in 15 minutes. california battling against farmers over a common enemy -- the drought. our jane wells joins us from california's central valley. quite a controversy going on. good morning, jane. >> hey, carl, you know california gross most of the fruits and vegetables you eat. and well, here's a young garlic. it also raises a lot of beef and dairy with the dairy cattle. all of that takes a lot of water. look at this. about half the water that rains or comes into california every year is not captured or developed. of the half that remains, 50% of that goes to the environment for things like protecting fish. 40% goes to farms. only 10% goes to people. but the people are the ones now facing mandated cuts. and some of those people are screaming about it. >> well your numbers are a little off. >> no, they're not.

>> they are. >> no, no, no you're not going to bull that they're from the california -- >> no, no, no. >> no no no. >> that's john corbett of kfi in los angeles tangling with a nut farm manager. the radio hosts are leading the push-back against water cuts mandated only for residents and businesses. >> what are you going to gain by cutting 10%? if we cut all of it we're still going to have a water problem. >> we can do without the almonds, i can't do without a glass of water. so we win, they lose. >> farmers are not used to being the bad guy. saying they're had to deal with less water and they're still able to produce. >> we're providing food with a very few people and tremendous resources and it takes water to grow food. >> critics will say, well grow somewhere else. >> california is the best place to grow in the world. as long as you have water.

>> yeah. today the may water wholesaler to southern california cities is like loi to decide to cut deliveries by 45%. the water is missing in the delta. the main culprit may be farmers closer to the source with senior water rights. water rights is a crazy system here in california. one other thing -- the state has been over-promising the water it can allot for years. it's crazy. back to you. >> it's nuts. it's nuts, jane. thanks for that report. >> nuts, yes. let's get over to the cme group, rick santelli, with the santelli exchange. >> you know, $60 billion for a high-speed train. maybe some desalonation plants would be a better investment. the imf was looking at a 3.6-year in terms of gdp for the u.s. they moved it to 3.1.

but even at 3.1, well let's do the math. let's say the first quarter comes in at 1%. and we get 4%, 4%, and 4%. that's 3 billion 2% gdp for the year. or my call, i'm on the low side. let's say it's .5 and we keep the 4, 4, 4. that gets you exactly to the 3.. the point of this is wait until next quarter. whether it's the cubs or gdp, it matters not to me whether we have retail sales at 10% or 0%. i'm here to describe what's going on. what i saw in response to today's number with the marketplace was disappointment. what i read is the ongoing notion of wait until next quarter this is important, this isn't just talking about something that's kind of fun. as we have central banks around the world doing things we could argue if they're the right things. to me, the data argues that we're not doing the right things.

when it comes to europe, it's going to be tax day here and when we write our taxes, pretty much everybody out there except for a few handful of states that don't have state income tax. now think the eurozone, with the euro getting weaker and weaker, it helps germany. but when people in the southern countries write their tax checks, the countries that actually try to collect them, pretty much it goes and stays within the country if europe wants to make things better. they need to start shay sharing the spoils of the biggest export economy in a way we divvy up the united states here. they need to come up with real growth solutions. in this country, we have a campaign coming up and believe me, there's a lot of low-hanging fruit. the bottom line is, if we keep trying quick fixes and policies that we think ought to have worked, but haven't really delivered, well then all we're doing is leaving in our wake a lot of turmoil. negative interest rates is one. look at just today's "wall street journal."

how are people going to deal with negative loans? how are people in the u.s. should we get negative rates here deal with it? all of these are outcasts of policies that don't seem to be getting us what we need. and that is gdp like previous growth cycles post-recessions. carl, john, back to you. >> all right. thanks, rick. coming up, looking beyond the page view and even simple engagement. the company that's helping digital businesses find out what their customers want. my feet felt so heavy at the end of the day. they used to get really tired.

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few tst thousands of companies asking our next guest for help. taking their analytics beyond page views, mixed panel's clients can ask customized questions such as how many users see an ad and end up booking a hotel room in costa rica. we have the ceo of mixed panel. 26 years old and i believe were you an intern for max lebchen, saw how they were using analytics inside a slide and said i bet you a bunch of different companies could use good, dedicated analytics and he told you, they'll build it themselves. no outside company needs to do this now he's one of your biggest investors. suhil, how have you got thn far, what have you figured out about analytics that other companies

haven't yet? >> i think things have been sort of old lately and we've been the world has been tracking rudimentary metrics like page issues and we say it's tracking bs metrics. so an example of something like that might be tracking actions that people take inside of a mobile ooapp. for uber it would be taking a ride for spotify, it would be a song, things like that. >> you and i were talking, you've been around since 2009. feel like some of the newer entrepreneurs you see coming up in san francisco aren't paying their dues, are being a little too fast and loose with how they're spending money, how they're hiring employees. do you think we're in a bubble of some sort? >> i don't think we're in a bubble just yet. i think it's become really affordable for entrepreneurs and people in the world to be able to start a company. i think that is in part due to a

lot of things like amazon web services, being able to reduce the cost at which you can have and buy a server to start your company. you can see it in san francisco where offices used to have a server room. now most start-ups don't need a server room at all. i think we're not in a bubble, think it's just become more affordable for people to use money to build big businesses now. >> what is the crucial problem that so many businesses need analytics on right now? that's different from maybe a couple years ago. does it have to do with certain challenges in mobile? what do you see? >> yeah. i think that what's happened is that a big wake-up call in the industry, i mean i think every industry, not just technology, but it started with technology in that people realized that in order for them to be able to win, i think if you take a small company in silicon valley and you think in that small company sort of thinks, how my i beat my

biggest competitor, how might i beat the incumbent in the market, they have to figure out ways to be clever and smart about that. and the way to do that is by being able to understand their data so much better that they learn something so surprising that their market competitor doesn't actually know. and that's caused a big shift towards people using data. sort of this competitive weapon in order to beat almost every other kpetor in their space. in part what's happened is companies because they're using the data, causing their competitors and everyone around them to be able to do the same thing. >> there's been speculation that customer retention is a challenge for the company, that people try you out and drop the service later on. what's your response to that? how do you keep from becoming a fad, so to speak? >> i think that's really hard. i don't think there is, i don't think there is a silver bullet for that i think the only way you can stop yourself from becoming a fad is by building a great product and being able to measure and understand your customer loyalty, people basically coming back and using your application again. is the only real hard way to

understand whether what you've built is actually valuable. so if you're measuring that, if you're seeing your customers come back, you've possibly built something very, very valuable. we sort of see at mixpanel with our customers, we see that people using applications, it depends, but particularly in consumer, you see things that are more fads than in other markets, we see that having a good 60%, 70% retention rate. where people come back a week later, pretty much means you're not a fad and if you have something less than 20% a week later, you're probably going to be a fad. >> fascinating area, we'll see how long this boon continues, i understand your burn rate is also quite low. so you'll probably be around for a while. thanks for joining us. >> right. thanks, john. when we come back, apple says leave your selfie stick at home. why tim cook and company are shunning the accessory. it gets talked about... ♪ ♪

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shares of global reinsure exor offers to acquire

partnerre. ex exo everyone r back over to you. dominic chu. authorities in geneva have banned uber for breaching local tak taxi laws, local regulators say it's acting like a taxi dispatcher, but wasn't properly registered. uber said it was appealing the order and denied wrongdoing, part of a broader trend for legal challenges for it and others like it around the world. in with the watch, out with the selfie stick. apple is telling those planning on attending its worldwide developers conference on june 8 to check their selfie sticks at the door. apple writes you may not use selfie sticks or similar pods within moscone west. why? >> i think they want to control the attendees, keep them from taking all kinds of pictures and doing broadcasts from therethy tink might also be kind of an

attack on peri scope and mirror cat. want to own the broadcast of this event to the rest of the world. >> as they always do, i guess. first the rides at disney, now wwdc. on that note, the dow is up for 42, it it does it for us on "squawk alley." ♪ ♪ and welcome to the halftime show, let's meet the starting lineup for today. steven weiss is the managing partner of shorthills capital. joe terra nova is senior managing director. and pete nigerian is the co-founder of option monster. the game plan looks like this, right on the mark, famed value investor bill nygren on his new stocks he's adding and where the best deals are in the market. top analyst mike mayo on earnings and whether the sector is about to surge. we begin with a loo a