street and "squawk alley" is live. ♪ ♪ ♪ ♪ >> welcome to "squawk alley" for a thursday, joining us for this morning for the full hour, jon steinberg, the ceo of the "daily mail" north america. kayla is out this morning. john ford live at the nasdaq where etsy has just opened for trade. what an open. more than doubling as you suggested it would right before it started. >> strong early on. and got to remember etsy set aside 5% of shares in this ipo for individuals. a lot of those people sellers.

so this pop some people might say there's the age-old question, did they leave money on the table here? i'm sure it will be asked. you got to remember some of the people in etsy's community the loyalty of which is a big part of etsy's story are looking at the stock price and feeling like they're winners, as opposed to if it had opened flat and etsy had kept all the money. i'll be asking chad dickerson, waiting for our conversation which we'll get to. how it plays into the story of etsy going public. as we mentioned earlier. in its s-1, etsy says we're not profitable now and basically, they're not in a rush. might not ever be profitable. that's the sort of boilerplate that companies put out there. you don't know how much of that is the story. let's get to it, chad dickerson, ceo of etsy, congratulations. let's talk about what this day means for etsy. you're doing this a little bit differently, i can look outside right now and see the booth where you've got etsy sellers set up right here in times

square, you've got them all throughout this room here. what does an ipo mean for you, and how are you thinking about profit within all that context? >> sure. so an ipo for us means it's a big day for our community, it's a big day for the company. you know we're really building an etsy economy that's about people, a human hr centered economy, where buyers who really care about artisanship and connection with sellers and relationship with sellers are able to buy from sellers and the sellers are able to support themselves. so today for us means the etsy economy that we're building and the ipo that we ran and the way we ran it is a great way to launch the company into the public sphere. >> i'm trying to do the quick math in my head. you're close to i think three and a half, between three and a half and $4 billion total valuation. maybe around a seventh the valuation of an amazon, which also isn't always profitable. you don't have to feel bad about

that. why won't amazon be able to do what you're doing? is it because of the kind of neighborhood ethos you're trying to cultivate. the idea that you're careful about how the products are being made and who's making them? >> it's simple, 92% of buyers who come to etsy, say they come there to find goods they can't find anywhere else. by coming to etsy. you're buying merchandise you can't find on any other platform and that's really important and our sellers are very much a community. can you see it in excitement of our sellers, we have 10,000 etsy teams. these are self-organized groups of etsy sellers around the world who meet offline we make a home for them at etsy, for creative entrepreneurs that is really unique and they're really bound to the platform and we really appreciate that. >> now, where your sellers are are is a big part of your story. you're trying to engage communities outside of the u.s. communities of sellers. how do you do that? and how much a part of your

success is that going to be, if you're able to get unique goods sourced say in guatemala, that could provide you an advantage? >> our strategy, 30% of the sales on etsy is international. we're focused today on a few key set of countries, and our strategy is to build global marketplaces. and buyer and seller ecosystems. so canada, uk, australia, western europe. we're focused on those countries, it's important to understand that etsy sellers represent nearly every country in the world. i think over the long-term, you'll see etsy grow around the world even beyond the countries i just named. >> now in the fall, you started doing etsy payments. kind of a square type reader. >> in-person payments. where when a seller uses that system, their inventory on the back end online reflects the fact that they did the sale in person. how much are you going to

vertically integrate? are you going to be delivering goods yourself at some point as amazon has moved into taking more control of the customer experience? if sellers want you to, is that an area you're look act? >> we have no plans to build warehouses or handle inventory. but we plan to offer seller service, like the in-person payment. 42 of our revenue through the end of 2014 was seller services. what we've seen is there's high demand from our sellers to build things like in-person payments. advertising, our provider listings program so they can spend more time on the making, the thing that they enjoy and less time on business tasks. that's been a big opportunity for us. and we see building the high-impact seller services as a greater opportunity in the future. >> chad, what if anything are you ruling out? besides the obvious commoditized goods, is there things you won't do, will you not move into food for instance? i can see lots of people who are on etsy who are also into the locally grown sort of movement. there might be certain things

that they might want to ship. >> so i think we really think of etsy as a marketplace for creative entrepreneurs to make, buy and sell unique goods. i don't want to rule anything out. we're only in our 10th year as a company. we want to operate for decades and decades, i think we'll always be building new services and building new markets for those creative entrepreneurs. >> let's get jon steinberg in here. >> hey chad what can investors expect from you in terms of your style are talking to them? are you going to be like a spencer raskof, giving a lot of transparency and detail or like jeff besos, keeping everything close to the vest? >> etsy has a history of transparency, we're open and communicative with our community of sellers, for example we plan to take that open and communicative style out to wall street and we have been in our road show. so you know we're not planning to give traditional guidance. but i wouldn't mistake that for a lack of transparency and we plan to talk with investors quite often and very openly

about our progress and our plans. >> now -- go ahead, carl. >> chad, you know a lot has been written about despite what all the activity in silicon valley, that in general america and its ability to create entrepreneurs, that power is waning over time. are you going to give metrics on how many sellers you're adding? and what's the great rate like? >> you can see many of the metrics in our s 1. we talk a lot about our seller growth. we have 1.4 million active sellers today. on sellers, our focus is really on continuing to grow quality sellers. you now, we're not out trying to grow that number artificially in any way. we want to bring quality and preserve the unique merchandise on etsy again, 92% of buyers come to etsy to find merchandise they can't find anywhere else. >> i believe you said 300,000 is being set aside in the ipo to help cultivate entrepreneurialism in communities that traditionally haven't had it.

minority communities, i don't know which others. tell me how much is that going to be a part of etsy's culture going forward what else might you do to create entrepreneurs where the market might not have them now. >> we did set up etsy.org as part of our path to being a public company. it's a dot-org that will promote entrepreneurialship for women and disadvantaged communities. and we want to promote that type of type of work in communities. so we're always going to be focus on community and the company and really etsy.org is one example. but again continuing to build our seller community and helping them be successful. >> what are you communicating to your employees on a day like this? i understand you got online with them in the past hour as you were looking forward to the stock opening. is it a kind of stay on target. it's one day, it's a marathon not a sprint sort of thing? and what is unique about this

happening for new york-based company? which often sell out before they go public? >> if you read my shareholder letter in the s 1 i talk a lot about etsy being about long-term thinking, building for the long-term, planning and building for the long-term. this is what we told investors on the road show. this is an important day in etsy's history. we're excited about being here with the sellers. i'm super excited to go back to the office. but my message to the employees has really been, you know we're building a long-term business and this is a great start. but it's really just the beginning. as far as new york tech, you know i came to new york seven years ago. after spending ten years in silicon valley. i really believe that we built a first-class tech ecosystem in new york city. i'm really proud of what we've done at etsy and i'm proud of the entire new york tech community and the community that we've all built over the past two decades. really. >> this makes you a very important, today makes you a very important voice in new york tech. what does new york tech need next now that it's gotten its

multibillion-dollar ipo? >> so, new york needs to continue building, i think educational institutions like for example cornell tech, which i think will be you know the stanford berkeley of the east. so i'm excited about that. i think that we all need to keep executing, we need to focus on what makes it amazing to live here in new york. new york doesn't need to be the next silicon valley. new york needs to be new york. because new york city is an awesome place. and when you add the tech community on top of it, i think new york is the best place to live and work in the world. and brooklyn is the best place in new york city to live and work in the world. >> if you can afford it. it's only going to get who more unaffordable now that all of these etsy employees are going to be buying up real estate, right? >> well manhattan is less affordable. >> relatively speaking. >> back at the nyse, guys did you want to jump in and ask another? >> chad, when you think about the price right now, i know it's a hard thing to comment on. you're trading basically at a

$3.5 billion price, that puts you at about 15 times revenues. is that undue pressure right now. are you going to make any type of elon musk type comment. >> i don't want to comment on price, i think if you go back to the beginning of the ipo, you read the s 1, read my shareholder letter, we talk about building and planning for the long-term. we really mean it, it's really important to us. and i'm not focused on the stock price today. we're focused on building value for the long term, continuing to serve the community and continuing to build me to this great company that i'm really proud of. not really focused on the stock price at this moment. >> from here, we see etsy sellers outside what can we expect technologiwise, you talk of yourself as a technology company. what can we expect for you to do to raise the experience to the next level for your ecosystem?

is it more video, more of a focus on mobile? what should we expect? >> we're focusing on mobile today. etsy has become a mobile first company. for example over the past 12 months we trained 100 desk top web engineers to become ios and android engineers. we want to drive customers to the app experience to deliver a highly engaging experience. we have 28.8 million app downloads, so we have a great start. we're not starting from scratch. >> tell me about the competition for talent? i keep hearing from entrepreneurs, from ceos, it's getting harder and harder, particularly in silicon valley. is that just as true here in new york? and does being post ipo help you or hurt you when it comes to recruiting new talent? >> it's always really competitive to find good talent. i'm proud of the talent that we built at etsy. we've been very competitive. we're hired people out of google. we've hired from other large tech companies, we've hired out

of start-ups, we pulled a lot of people to move from the west coast to the east coast. i think people come to etsy because they really love the mission. they love that we're building a values-based company that we're serving a community. so i think being public and having the resources we have, only helps us in terms of recruiting talent. >> all right. chad dickerson, ceo of etsy. taking a look at my cnbc app now, still up, let's see, 118% on your ipo day. congratulations on this. and we'll see where you go from here. guys, back at the nyse, back to you. >> some session highs as you guys have been talking. john ford back over at the nasdaq. meantime, netflix surging to all-time highs, up more than 14% this morning. the company adding almost five million streaming subs in the first quarter. a very clean beat on expectations. joining us on the phone today is suntrust managing director and internet analyst bob peck as we like to call him, the axe. bob, good to see you again. >> thanks again for having me. >> if there was ever any doubt that subs were the magic metric,

today would obviously just dispel all of them. what did you make of the number? >> yes, the domestic was a nice surprise, they had 2.6 million. versus 2.1 expectation. with a reduced turn that shows that the content is actually resonating with viewers. but international is where everyone is focused. over 2.5 million, versus the 2.4 expectation showed they're getting the traction. and i think the number one number people walked away with was the guidance on international. 2.2 million versus 1.4 million expectation showed strong at the end of the quarter and could drive revenues for the year. >> was that the number that made the stock rip? that was very much a walk like a duck, quacks like a duck quarter. was it the q 2 international guidance which made the stock go crazy? >> yeah, it is. because it was so far from where expectations were. 55% higher than what people were looking for. and you also comments around the new markets, australia, moving

towards korea and japan. this is a lot of runway for them to expand. and it shows the content they have is actually resonating, they're seeing it in their numbers. >> hey, bob, the shorts are obviously frustrated here. they've got all kinds of theories, among them that they're taking streaming expenses and putting them into the international p & l. trying to inflate domestic margins. do you believe any of that is going on? >> well a couple of things we point to in our note. the one is the cost of acquiring a customer has been rising from $40 to north of $50. their content obligations are up over $9 billion. up 38%, revenue sup 31%. but you need to keep an eye on that they've been up front that costs are going to continue to rise. through 2016. free cash flow being negative. right now we're on the sidelines, trades around 55 times ebita. 140 times earnings. if you look out to 17, it's 60 times earning. so we look for a good entry

point to get involved with the stock. >> in your point on valuation, even on a growth-adjusted bases, you're showing it at twice as expensive on an growth ratio, twice as expensive, i mean and twice as expensive even revenue growth as well. so it's twice as expensive as everything else basically. >> completely agree. we look at the entire universe adjusting for growth to be doing that even when we looked at the metrics, it seemed expensive there. i think the longs are longer-term, i think it would be a much bigger company in the longer term. they're probably right, it's tough to recommend the stock now. >> bob before we let you go. i'm sure you've seen the market cap now eclipsing cbs, and some of your colleagues on the sell side, fbr with a $900 target. are you worried that you're on the sidelines, but sentiment will carry this much higher? >> yeah. i think near-term here with momentum and these numbers we're

seeing on the subside, it could carry it near-term. i didn't see the upgrade there or the target lay, i guess the $900 number. at the end of the day we're positive we just want to be cautious around valuation, we're counting for the spending and revenue growth. >> bob, thanks for coming to the phone what an amazing call. bob peck joining us from suntrust. >> much higher acquisition costs this quarter. we were interviewing chad dickerson, the entire time in the background was "daredevil" on the billboard. dow is in a tight range, down about eight points. if you missed it in the last hour, the vice chair of the federal reserve, stanley fisher, joined our sarah eisen in a first on cnbc interview. sarah asked him if the markets are too reliant on the easy monetary policy from the fed. here's what he said. >> we expect that the markets look ahead somewhat, so i think, i hope that they are taking into account that the fed at some

point is likely to raise the interest rate. and they can't depend on current situation continuing forever or even probably beyond the end of this year. >> bonds did move on those comments. meantime check out sandisk, shares slipping after the company posted the first quarterly revenue drop in two years, said they plan to cut jobs by 5%. when we come back. the european union explaining its decision to open an antitrust case against google. we'll talk to the eu's competition commissioner in the first on cnbc interview. look at how some of the big ipos are trading today. etsy leading the pack. gaining session highs, up 120%.

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the urmen union commissioner on competition who announced bringing the formal antitrust charges against google talked with our own sarah eisen and she squloi joins us in washington with more. >> commissioner had just landed in washington, d.c. this morning. fresh off the news she filed the statement of objection, just the formal language for an official charge against google search relating to anti-competitive measures when it comes to google shopping. so i asked her what she thought would happen next. here's what she said. >> i have for real you know, open ears. to hear what google has to say. they have ten weeks.

they can ask for a hearing and we'll see where it takes us. >> so you're open to a settlement, possibly? >> i think you should be open to any kind of development. what we want is of course the best for consumers and the best for innovation. >> how like will you are you to push for fines as posed to just a change of behavior? >> well that depends very much on, on the google responses by now. can we fix this? can we find solutions? because this is being going on as we see it for quite sometime. this one of the first complaints that we got. that google used its dominance to promote its own services on the back of others. >> google consistently denies this sort of competitive behavior. anti-competitive behavior and it says in fact you can just look at all of the competition out there. amazon, ebay, when it comes to online shopping. >> well, basically it has to do with search. do you as a consumer get the best result.

>> sometimes it may be google shopping but it could be any other shopping comparison service. and that's the point. it's not that you can search anywhere else. it is that when you're so dominant. so successful in general search, well then you have a responsibility to be fair. >> so there you heard it. there the eu rebuttal to google's rebuttal that hey we're not dominant in some of the shopping services just because they're systemically pushed through google search. i asked her about other ongoing investigations, including ones of amazon and of apple. when it comes to their tax practices over in europe. i asked are you going to be as tough and aggressive on them as you are being on google. >> i'm likely to go for competition. because i think that should be fair and open. and i work on behalf of all the companies, millions of companies, who do their business by the book. and who compete on the merits. so be american or european or

whatever. if you're in europe you should compete fairly. >> so that was the response on he had it comes to what else she had in store for some of the american technology companies, and finally how to ask about the news that they released a brand new investigation into android here. for google i asked where they were in the stage and when we can expect any news there. >> this is very early days. we have you know, some very first investigations, now we formally open to have an in-depth investigation. we have a number of complaints. but also on our own behalf, our own initiative, looked into the behavior when it comes to android. and it's impossible to say how long the investigation will take. but we can come back to that when we finalize it. >> and finally, the commissioner defended herself, i asked about whether, how she felt about critics who said that the eu was using protectionist measures like this against u.s.

technology to make it easier for european companies to compete. she firmly denied that and defended her actions and also said look, it wasn't just european companies that lobbied against google in this case. but american companies as we know, including microsoft as well. carl? >> yes, that's certainly the view among some at least stateside, sarah. such great work. we did speak to google's head of government affairs for economic policy in europe. adam cohen yesterday on this program. this is his response to some of those eu charges. >> look at all the tremendous innovations and evolution we've seen in the search industry over the past few years. we can't stand still. we face enormous competitive pressure and we're going to respond to ha in the marketplace. >> something, you said it yourself yesterday. they're going to microsoft this company. >> and they're not even following the pace of technology change. just this morning microsoft has announced it will bundle its apps with be a android mod, forking off from google android

which has a tremendous amount of venture financing behind it. so pointless. >> we have to wait ten more weeks before we get any more clarity. >> correct, she said she's very open. the words she used was for real i'm open to hearing google's case, i'm open to a settlement and i'm also open to fines, which you know european regulators have the authority to fine as much as 10% of google's annualized revenues. a big deal for investors. so leaving the door open on all of those issues. john brings up microsoft. i said a lot of people are drawing comparisons here to microsoft and sort of the cloud of regulation and the billions of dollars in fees that microsoft had to pay over the year. how that a sapped innovation and culture and she said absolutely different cases. you cannot draw comparisons. but she did sort of reference what john just said, the fast-moving technology and the if a that it moved into mobile, away from microsoft and there for one is the major distinction. >> interesting that they did not prescribe a remedy. it's up to goog toll try to fix

this in a way. let's bring in simon hobbs, speaking of europe about to close on this thursday afternoon. >> you'll see a lot of red on the european screen. can you argue that perhaps europe was ripe for a bit of profit-taking. even now with the losses, europe up 20% year to date. the southern european parts of europe. you've had more heavy losses here. the eurozone banks notably have fallen through the session. not just south european banks, but also those that are invested in a lot of the banking instruments around europe as well. deutsche bank, and credit aagricole there. people are getting increasingly concerned about greek debt. a six-month chart spiking up to 26.7. you'll see the accelerated selling on greek debt, a spike up to 1.67%. in d.c., christine la guagarde,

"financial times" flatly turned down a request by greece to delay the payments they are due. this is a reaction to the s&p ratings cut further into junk territory yesterday. barclays is suggesting now that there is a rising probability that greece will exit the eurozone. it is more probable they say than it has ever been before. this in a context with the german finance minister has said that nobody really expects greece to get a deal with the rest of the eurozone on friday. if they don't do a deal by friday, then where the hell are they going to get the $1 billion they owe the imf in may? that's the big issue that everybody is now stressing about. if the imf is not willing to delay that. on the streets of athens today, 4,000 gold miners marched on parliament. now this in itself not a significant event.

but it is symptomatic of the position in which the hard left government finds itself, sandwiched between the promises that it has made to the people of greece in that election and won. and its obligations to the rest of europe. and to the financial community. will it pay the pensions and the wages or will it repay the imf? that is now front and center for may. if scheubel is right and there's no deal on the table. in the wake of what the european central bank said yesterday at the core of europe, you have ferocious buying of quality debt that's pushing increasingly the yields down. in for example germany, this is actually the price that we show here. we are still positive on the yield in germany. but only just. as increasingly the german landscape falls into negative territory. eight-year bonds are negative and we're creeping up now towards the ten-year this another reason why the european banks are in negative territory. this is harming the net interest

margin, arguably at the front end. particularly with reference to the southern banks on their profitability. it's going to be a rough may, guys. >> unbelievable, the curve is just unbelievable. when we come backs did a big day for ipos, as you know, both here and at the nasdaq, etsy has doubled this morning. and we're going to talk to the ceo of nasdaq omx, robert grooifield after the break. you used to sleep like a champ. then boom... what happened? stress, fun, bad habits kids, now what?

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good morning, everyone, i'm sue herrera, here's your cnbc update at this hour. hundreds of palestinian protesters clashed with israeli soldiers during a none strags in the west bank. the violence came after palestinians gathered outside a military prison to demonstrate ahead of palestinian prisoners day. no injuries were reported. police in sicily have arrested two people on suspicion of being migrant traffickers. the men from gam bebeeia are accused of ferrying migrants across the mediterranean sea. people told police they paid about $600 to be take ton europe. even book makers are concerned about greece's future. a uk bookie has stopped taking bets on greece leaving the eurozone, saying it's increasingly likely that the country will begin the process of departing the eu shortly this comes as a greek finance

official denied the report that athens approached the imf to request a delay of the repayment. and bring reinforcements to american revolutionaries in 1780 made its ceremonial departure from a port. the ship is expected to carry out maneuvers until saturday when it's set to sail for yorktown, virginia that's your cnbc news update for this hour. thank you so much, sue. etsy continues to be one of the big stories of the morning. take a look at the chart. backing off session highs, but still more than doubling from the ipo price earlier this morning. joining us to talk about it business insider founder, editor and ceo, edward blodgett joins us. not bad for a company that lost $15 million last year? >> very nice, relatively reasonably priced.

where it's trading now in the range, 10 to 15 times revenue as you pointed out. once again, underwriters dwro y grossly mispriced it. it cost the company and the shareholders a ton of money over the long haul. >> the balance is hard, you say they erred on the conservative side. >> they left a huge amount on the table. and everyone was saying no, you don't understand. you're selling a little bit, you have to reward every one for buying. you do, a little bit. but not with 2-x in one minute. if you're a seller of that, you can begin to appreciate, maybe we could have priced a little closer to the trading value. the trading value, 10 to 15 times revenue for this company with this kind of margin structure long-term and growth rate in the range of reasonable. >> don't you think upper end of reasonable. we did the math, it was much

more comfortable. now they're priced for perfection, don't you think? >> agreed. these are always expensive. if it continues to go, think there's probably an acquisition premium in here. there are several buyers, tons of cash, where etsy would make a good permanent home. so you're always going to have that question as well. >> interesting that the three, the main stories we're talking about today, party city behind us, under the circumstancesy and netflix to some degree all have the amazon thread running through them, right? to what degree is amazon a threat to them? >> well in netflix case, let's step back. it's staggering quarter they just posted. five million new subscribers, now 40 million in the united states and 60 million internationally. it's staggering. and the point that was made, reed hastings made it is look people keep comparing us to hbo. forget hbo. talk about netflix as the new television and households that have netflix. they like it better than tv. certainly in my house, a lot more netflix consumed than traditional tv. this is a game-changing

long-term trend and they're in the pole position for that. >> it seems that there's two sets of price targets, you have the peck price target, 5.50, aggressive and expensive and the big vision price targets you're leading with a splash on "business insider" tv has had a good 50-year run. kevin spacey with blood on his hands. how much of this is driving the high price targets. >> if they stumble in a quarter. the stock will get crushed, there's a huge momentum premium in here, it's hard to value it precisely. it's one of these things where can you run your numbers, make a range of reasonable assumptions will get you to a huge range of price targets. but i think the folks saying 900 are looking forward five to ten years saying don't know what it's going to be worth a quarter or two out. but long-term, they're in a great position pretty much everybody else in the tv industry going to be fighting to keep what they have. >> remarkable, we know they're a huge, huge, percentage of peak

hour internet consumption in terms of pure video consumption in the u.s. it's still a pretty small number relative to everything else we watch. >> small but growing, one thing they have a huge advantage with is they're not constricted by the 24-hour cycle. tv network you can only do 24 hours of programming. netflix can continue to expand its supply of programs, way beyond where they are now. just makes it more and more valuable for the subscriber. bigger choice and so forth. >> i read a report earlier in the week saying they had 40% of broadband householdsy netflix customers and by 2016 it was to get to 60%. i couldn't decide if 40% was a lot or a little. what do you think of that 40% number? >> i think if you look at the penetration of cable tv and pay tv. it's vastly higher than that. i think go much higher. think you've got a whole generation of people who are saying look, between netflix and a couple of other subscriptions

i can pay a lot less than i pay for cable subscription. i get pretty much everything i want. there's always something cool to watch. it's a good option for a lot of people. >> that's sort of -- >> except for us sports fanatics. we are screwed. >> live sports. how long do you think before youtube or amazon gets the rights or partial rights for one of the leagues? >> i think that's starting to happen. amazon is jumping into the same game that netflix is doing. we've started to have people nibbling around sports rights. espn is a wonderful app and they are doing this. they are moving beyond so it's starting to move, but we're not there yet. >> somebody says ask when henry thinks netflix will have live television. >> that's a good question. they're moving close wert chelsea handler show. we'll see what they do about that. but one of the things that makes netflix so successful as reed hastings says, there are lots of opportunities, we're going to focus on this one thing and do it great. i think right now he would say is there's plenty of opportunity

left in the one thing. >> good do see you, henry. henry blodgett joining us here, speaking of etsy. a by day for ipos at the nasdaq with that company and vertu financial. let's go to bob pasani, with bob agreefield. >> it's a big day, the guy in charge, bob agreefield. we're waiting for vetru to open. indications are around 23. it may happen in the next minute or so. >> hopefully it happens during this interview. what's going on. finally we're getting life in the ipo market. it's been slow so far this year. >> thanks for coming here today. it's a pleasure to see you. i would say the start of the year has been slow. but really, you have to take it in context. last year was phenomenal. our backlog is increasing month by month. you see that the activity is now getting large. >> how is the book looking? >> three ipos yesterday, two today. not bad. the book is getting thick. we saw almost a record number of new applications come to us in

march. >> aduro pharmaceutical yesterday was very heartening. looking for cures for cancer. immunotherapy, prices at 17, closes at $39. i have to ask you about how these things get priced. it's amazing when you go 100% in a day. a lot of people say left some money on the table there. i know this is an imprecise science how you price this stuff. but can you get a little better than that? can you do that? >> i'm not in that game. so i'm not sure. but certainly 100% is a large increase and you can debate the merits of that. i leave that to others. but it ties back to biotech. its been the golden age of biotechnology. we've had over 100 biotech companies come to market in the last 18 months and the mapping of a genome about a decade ago was the event that got us to a new level of science and the gene therapies are, immunotherapies are remarkable. >> what's wonderful about it is back in the old days, the science was not there. and the last wave of biotech. and that's why a lot of them

crashed. this time the science is there, they really are working on a cure for cancer. and a cure for other things. and big pharma is behind a lot of these small companies. that's why i think you're getting these pops and people are moving into them. >> i agree, i think the results from the early-stage trials are remarkable. it's breathtaking what it will mean to you and i and others with respect to our lifespan and it's fundamentally important to our society. so we're glad to provide the venue, the capital market activity to help support that. >> now you're seeing big pharma behind these companies, a couple companies behind aduro pharmaceuticals, is that also helping stabilize these companies? in other words they're not falling apart a few weeks after, like in the late 1990s, when we saw everything just die. >> i tie back to your comment. i think the science is there. where it might not have been so developed back a decade or so ago. think that's the primary value. to the extent that they have built-in distribution when they develop a product. that certainly also helps. >> i know you're a big

market-watcher. we're essentially at new highs, a few points away from it at the s&p. the russell, and mid cap is at new highs, it doesn't feel that way because the volume isn't there and the volatility isn't there. there's a lot of uncertainty. where do you think we are in the market and the earnings cycle right now? >> i think we're not going to see multiple expansion in the next 12 months, so companies will have to increase their stock price on regrowing their earnings and we have many companies able to do that. you see a lack of volatility. a lack of volatility in the context of a lot of external events that traditionally trigger volatility. you have to say are we getting to a new normal with respect to volatility and also volume relative to the index. >> do etfs tamp down volatility? does it tamp down trading activity? we're trying to figure out with markets at a new high, there ought to be more trading activity and bets being placed. why isn't there? >> you've seen a massive growth in passive investing or smart

beta that has less trading associated with it as you see money move from active to passive you'll have some structural change in the market. >> i'm looking at virtu, your people are working around, it should be open any second now. the indications are 23 right now and that's a public indication. >> they've done a wonderful job with the company and we wish them all the best. >> it should be opening soon around $23. carl i send it back to you, but keep an eye on virtu. let's hop over to chicago and the santelli exchange. >> boy wasn't that a great interview with stanley fischer that sarah did? everybody is talking about it. i want to dig down a little deeper into it. a couple of things that mr. fischer said -- that i think deserves some discussion. and most them do center around europe. i thought the notion of where the euro is now, not a direct impact based on or not directly

caused by fx intervention. i think we're mincing words here. look at the chart while i'm talking about the euro. >> one second, rick, forgive me. we do have ritru financial, which bob pasani open for trade. it looks like it's at 23, 24% gain, up about 4.50. bob brought us the ceo and the executive chairman a little while ago. rick, back to you. >> absolutely. virtu, electronic trading, big. as you look at the euro, it was at 1.25, as recently as december. it's currently at 1.07. it spent a lot of time at 1.05. you could call it intervention, could you call it policy. whatever it is, reconcile the breadth of that move against another dynamic that mr. fischer hit on, and that is that europe is looking better. it has some wind in its sails. i don't know how you can

reconcile that. either the euro is moving because of the economic underpinnings, which in his words were much worse several years ago. then why do we go from 1.25 in december to 1.07 now and actually traded lower? it doesn't make sense. in the end, i think the issue that we need to be aware of is why the market is so sensitive too what the fed or the european central bank or the bank of japan may be doing is because it's all about posturing. it's about posturing. so how can the market possibly get to where it needs to be when posturing is what it's trying to handicap? mr. fischer said the market isn't necessarily hearing what the fed is saying. because for six and a half years they've been rewarded to be like this, okay, no the to listen. to go along with policy. and this is the main reason that many traders on this floor rightly so, think that any type of normalization whether the fed does it sooner rather than later is going to be bumpy. because there's a communication impasse, because the truth is not known. and the other dynamic that happened today, is we saw yields

move on the long end of the curve steepen. i'm not sure that makes sense. if the fed is in play, but let's really look at how big the move is. with all the compression we've seen, let's be real here. okay? this is the ninth thursday coming to today, here's the intraday highs on ten-year note yields, is.96, up to 1.98 on the 13th. today's intraday high was 1.92. i think it's more compression and nervous traders and virtu. and here's the settlements, you can see we've moved lower. i guess in the final analogy. why the markets move, we could debate. but the grand scheme of things, there's going to be more movement because it's impossible to hear a fact when facts are unknown. back to you. >> rick santelli. thank so much. 40,000 fans flocking to a "star wars" convention. we'll take you there live and talk to the head of disney, bob eiger later. dow is back down. ve to work har,

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coming up from here at the new york stock exchange, the two biggest netflix bulls on the street join us. one of them just doubled his price target to $900. are you serious? we are and we're going to debate it coming up. plus are the banks back? earnings reports looking pretty good. but is this quarter really a turning point? the traders debate that and it's an ipo party today. how to play the names, plus how to find the next big one.

that and much more, right over at post 9, see new a few. >> nice to have you in the building, scott. meantime, new york-based kraft and etsy opened for trade under etsy. do you buy did or leave it on the drafting table. our john ford is at the nasdaq where he talked to chad dickerson this morning. >> a lot to talk about, whether etsy left money on the table. clearly they did leave some. when i talked to chad dickerson earlier in the show. he talked about today as a validation of etsy's business model. take a listen. >> it's a big day for our community. it's a big day for the company. you know we're building an etsy economy that's about people. a really human-centered economy where buyer who is really care about artisanship and connections to sellers and relationship with sellers, are able to buy from their sellers and the sellers are able to support themselves. so today for us really means that the etsy economy that we're building and the ipo that we ran and the way we ran it is a great

way to launch a company into the public sphere, so we're really excited. >> the question for sloors is, how much room do they have to expand before they bump into the likes of an amazon or an ebay as they grow out their u.s. business. also canada and western europe. he said they're looking for areas where buyers and sellers are equally balanced. in other words not trying to build up communities, just in areas where there are artisans, but not necessarily people in that same local area who are able to buy things. so i think at close to $4 billion now as you guys mentioned. the valuation might feel rich to some people but it's just about 1/50th of an amazon.com. >> both party city and etsy this morning, guys, we asked why can't amazon come and eat tear lunch. in party city's case the ceo says you can't have a helium

balloon delivered online. hard to do and in etsy's case he says people come to us because they can't find it anywhere else. >> couldn't blockbuster have gone in and eaten netflix's lunch? couldn't google, couldn't facebook have beaten foursquare with the local stuff? that doesn't happen. what's really concerning is how rich it is. he had henry on. i think henry said 10-15 times the range. we're at the upper end of a range that doesn't give you a stomach ache. at 15 times for a company that loses money, it's hard to get comfortable with that. >> 15 times revenue. >> it's not lunacy at this level. but on twitter as i'm posting video from here and the nasdaq of course asking the bubble question. can this company pull off what apple pulled off in terms of expanding the possibilities on what it's selling to. on what netflix has pulled off.

getting people talking. a dvd delivery through the mail, changing the whole way that people consume digital entertainment and information. so for etsy, what is the next level? how do they fill in the ecosystem. how quickly can they grow internationally. can they maintain the 78% level of loyalty. that really powered a lot of the results in 2014. >> i was surprised to hear a third of all sales internationally. that was news to me. chris, great work down there. >> come back, "star wars" fans counting down to the first new movie. >> julia boorstin is in anaheim with a special guest. >> i'm joined by r2-d2, fans spent a year building this life-sized this robot. there are 40,000 fans gathering for a "star wars" celebration.

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consider it solved. emerson. well the big countdown to the first "star wars" movie in a decade begins today at "star wars" celebration, a fan convention at the anaheim convention center. that's where we find princess julia boorstin with a look at how big the franchise is for disney. hey, julia. >> hey, karl, i haven't put on

my princess leia costume just yet. they're getting ready to open their doors to the thousands of fans who have been waiting outside. many of them waiting overnight to get in and get first in line to see jj abrams, who directed the movie that's coming up in december as well. as kathleen kennedy, the head of lucas film. we expect them to unveil a new clip of ""star wars": the force awakens." as many as 40,000 fans are expected here for panels, autographs and even a jedi training session and they want the sneak peek at the future of the franchise, which disney has been working on since acquiring lucas film for $4 billion in 2012. >> i've been here for eight hours i'm here for a celebration. >> i'm just up as a custom mercenary. the outfits are awesome and the

ideas are awesome. >> "star wars" celebration for the largest gala ever made. >> starting with its november release of a 90-second teaser. disney has been working to reassure diehard fans that the nearly 40-year-old franchise is in good hands under its new ownership. with the potential to build out a big "star wars" presence at the disney parks. disney is expected to more than earn back its investment in "star wars" and lucas films. the first six films have brought in a total of $4 billion 4 billion. in the global box office. in "star wars" it's the best-selling lego theme. we'll bring you the news from jj abrams and kathleen kennedy's presentation on the stage here and we'll be interviewing disney ceo bob iger about all the "star wars" news, back to you. >> that's a scene-stealer if i've ever seen one, julia. we keep waiting for to you put a

message into him. >> julia, any buzz coming out of the itunes release, the first digital release that "star wars" ever did. what are you hearing about that? >> i'm hearing that this is really just disney setting the stage to what we think will be a huge build-up to the launch of the movie in december. let's get over to post 9 and the half. ♪ ♪ thanks so much welcome to the halftime show, live today from post 9. josh brown is the ceo of wealth management. joe terranova is the senior managing director at vertis investment partners, jon is co-founder of option monster and our game plan today looks like this. party city, with that company and two other big names going public today, should you be a buyer of any of them? or will the ipo