good friday morning, it's 8:00 a.m. at amazon headquarters in seattle, washington, 11:00 a.m. on wall street, "squawk alley" is live. ♪ ♪ ♪ ♪

welcome to "squawk alley" for a friday, all-star panel joining us this morning. at post 9, recode's co-executive editors, walt mossberg and kara swisher together, they're in town because they're both receiving innovator awards from the columbia school of journalism, great to see you. >> thank you. >> if anyone is going to talk about entrepreneurialism and journalism, it's you two. >> it's because we're old enough. >> and schools to tend to want money from you, so they give you awards. that's my theory. >> any way, we're proud of you. kayla tausche and john here as well. check out the nasdaq this morning we're closed at an all-time high yesterday. surpassing those dot-com boom highs, getting close to an intraday high this morning. which would be 5132 on the back of the strong earnings from amazon, google and microsoft. google missed estimates, but cap

ex was down year on year and amazon soaring more than 14% this morning. the conditimpany broke out fina for web services. i'll ask you, kara, how significant that is, how much open the kimono this is. >> they never say anything. they kind of have to, they're getting pummeled a little bit. do it all the time. at some point they have to show success in one of their businesses, they don't make a lot of money. that's been the big thing about amazon for many years. this is a business that's strong. it's a competitive business. it's close, it's the biggest cloud business there is so -- >> twin themes here. one is expense discipline in the mature businesses. we saw from the amazon, google and microsoft. optimism in their growth products, cloud business for amazon, more profitable than people expected. google talked youtube and the

cost per click issue. an issue of auto play ads on youtube that are working and microsoft, the transition to office 365 and cloud continues to go well and i think there's optimism that that means they'll figure out who to do this windows transition as well to more of an updated product. not just a once and then wait, you know a couple of years for the next one. >> i think it's interesting about google, thank god they're not spending so much money on cooky stuff. the expense discipline among google has never been strong and they do whatever they feel like and i think wall street has been calling for a little tighter. they had patrick pashette who kept the lid on the pot and now they have a fantastic pick for cfo. so i think it's important for google to communicate that it can control expense. search going to be challenged. >> reef parap will be the company next month.

some analysts were surprised that there was no mention of the european commission on the conference call with google. >> i think there's two reasons for that obviously one, why point to bad news if you don't have to. but secondly, they don't really know, i mean there's like it seems like a cascading series of investigations are opening up over in europe. where they are actually tougher than some of our regulatory agencies. and so i don't know what useful they could say that we don't already all know. and sometimes when you can't control things -- >> and analysts as ever are pressing so hard. which is, i'm always astonished by analysts on these calls. this was a question you would ask or a reporter would ask it, and they don't. >> we were talking this morning br the could be trast, walt, between google's expense discipline as kara puts it and facebook's expenses. is that just because there are different stages of growth? >> absolutely.

i'm really think that's it. facebook is obviously trying to be a platform. >> google already is a platform. facebook has got people nipping at their heels in the messaging space. and the messaging companies, particularly the ones in asia that are beginning to come in here, they do much more, they're not i-message or something. >> you mean lie wechat? >> yes, and whatsapp, which is not asian. but these guys do a ton of the things that facebook does. >> they own whatsapp. >> they own it. but they are, they have to spend money. they have to spend money at this point. i want to say something about microsoft. i spent sometime there last week. and i just think there's a completely different feeling there. it brings me back to when i used to go there ten years ago. i think they believe internally. it's not enough that they believe internally.

but it's a lot better than not believing internally. i think a few years ago they didn't believe internally. now they do. i'm not sure they've got it all figured out, certainly not in mobile, but their hope is, if they can do the windows 10 thing that john mentioned, it will actually boost the phone business as well. >> i'll tell you, i personally moved my cloud life to microsoft. office 365. storage all that. it's a good product compatible with other nonmicrosoft devices, as advertised, at a level i haven't seen before. >> they talked about you personally moving over. they think that's worth ten cents a share. just you. >> but here, here's a really interesting thing about them. and here's the big test that i urge everyone here, and everyone watching to look for. typically when they bring on a new version of windows, it's a tiny percentage of the volume that comes from upgraders. they really mostly sell through

new pcs, this time, they very much need hundreds of millions of people to upgrade and that will be an interesting thing to pull off. >> let's do apple, the watch arriving for customers around the world or at least those who got their preorders in on time. the watch available online. except at a few select luxury retailers in l.a., tokyo, paris, london, berlin. shares of apple have been settling back to 129.40. i don't see it. >> this is a thing i bought in the airport. i like it a lot. >> there's a sense that people are getting them a little bit earlier than they thought they were going to. >> i think they're shipping them and walt has one on his wrist. i don't know if i'm going to get it i'm going to wait to hear what walt decides. >> do you like it? >> i like it so far. i'm doing a long-term, like a one-month wearing it every day, and then writing, writing a review. and so far, so good. but it will be interesting to see. >> why does it need a longer window? >> it doesn't.

it's just a different perspective, it gives me a different perspective on it that i can convey to readers. so -- >> you know, let me just mention something that john and i were talking about. they're selling this like jewelry as we've written about and did a great video on at recode and other people have as well. you go in, they put a cloth on the counter, they open a drawer. it's like a jewelry store. and i'm not even just talking about the gold ones, they're selling me aluminium ones that way. so i wonder about the velocity of early sales. sales velocity. you know, apple has been place where they've invested so much in the retail experience, you can go in and out. you can get an iphone for $700 in 15 minutes and walk out or a mac. >> are you sensing that -- >> this is a slower process. >> are you sensing they're worried about people's ability to get used to it and adopt it? >> i don't know if they're

worried, but i think they're really cognizant of it. this is a different thing. right now there are supply constraints, and that's okay. but there will be a time when they're not supply-constrained. as people get used to it and they see their friends wearing it and they try it out a little, they may want, they may find themselves with customers more willing to buy it in a quick way and they may want to change the sales experience. >> it will depend on the apps that come on to the watch. the apple did supply the three of us watches to be able to tried on ought play with. >> they're all wearing them? it's not just me? >> i was there two days ago, they specifically told me not you. >> i'm sure they did i'm wearing it up, to too. >> within a few hours, the experience using different apps was spotty. it's going to take company as while it would seem to figure out exactly how to design an app for the watch. rich riley of shazam tweet immediate saying you have to download the shazam app. i haven't yet, but i could see

there could be a good use case for that product here. as is uber. some other apps haven't loaded or haven't had a signal. you know other things on there as well. so it will be interesting to see. >> i would argue maps is a little sluggish, would be one of my first impressions, not something i envision using much on the watch opposed to the phone. >> maps is a little sluggish. they'll have some work to do with it. >> and you have a team of reviewers here, walt. >> you're all hired. >> you're hired as recode reviewers. >> i will say this, this is really important, two things, number one, they're going to have an extraordinarily high number of annapolis, many more than any watch company has had available on first day. i wouldn't be surprised if they had 5,000 of them. i can tell you that about 70% of my email the last couple of days has been people releasing apps. and secondly, they're going to release a direct sdk.

right now you have to have an iphone or ipad app that then transfers over. now they have a plan for an stk that will directly write to the watch. this was always in the plan. but it was coming along later. and so you're going to see a second wave of apps that will be richer. >> and that will be important as we get closer to wwdc. meantime, comcast walking away from the $45 billion deal for time warner cable. ceo brian roberts joined squawk and said now in his words is the time to move on. >> we thought we could get the deal approved. we thought we could make a good case. i think our team did but in the end, we got to move on. we've had record quarters every single quarter. we've kept our eye on the ball. the team has. and we move forward from here. and you know, there's no looking back. >> shares of comcast, our parent and time warner active today. disclosure, comcast is the

parent company of cnbc. kara, you interviewed the president with how it tied back to net neutrality. when he made the first video, was that a surprise to you? >> no, i said i think the president going to be super aggressive on this issue. i think walk away is a nice way of putting it. they didn't have a choice, really. >> as opposed to what? >> being pushed. you know i think there were concerns about, i think it's 40% of the broadband market. this is about broadband. this blocking of this deal is 100% about broadband and controlling broadband over the top, delivery of services. it's not about cable per se, think really it's who will control this. and at that point at 40%, they become a little too big to regulate in some ways. >> here's the issue -- broadband has been redefined as the speed that comcast has and some others in cable. it used to be there was a debate, dsl versus cable, which is faster. clearly the regulators have said cable wins.

they're the only ones who are counting as broadband at this point. this may have been necessary to do. it doesn't fix the broadband problem in this country. >> no, it doesn't. >> it doesn't expand access to broadband. it doesn't make it more affordable. it doesn't make customer service any better. >> if you're the government, arguing does one single company controlling everything that could control prices make it better? it's sort of like -- >> it's fine where google is concerned, i guess. >> because google likes to wade into these kinds of things. we'll see how committed google is to this over the long-term. eventually there's going to be a lot of choices, just like the old days when microsoft dominated everything. now they don't. today in this market, owning 40% of the access to broadband is something the government is concerned about. and this is what, this is what they decided. think it would have been impossible to move forward with the the administrative judge thing they refer to, that's like the death knell for these deals. what is comcast going to go

after next. >> walt, people argue the market was already correcting. this didn't need to happen. do you think the decision came too early? >> i think anybody watching this, has been expecting this decision for at least three, four weeks now. and you know, i want to just echo what kara says, the government has a different responsibility than brian roberts or the time warner folks. they really don't want to do anything, which in a small way reduces broadband competition and she's right this is all about broadband. >> this is a victory for reed hastings, he was the one in the wandering in the wilderness saying this. and now reed hastings we had on stage last year, also brian roberts at code conference, was pushing this issue and he wanted it stopped. and i have to tell you, it's his big victory on this. >> we'll see you next week, if you're out at the recode.

it's our headquarters. >> we've taken over the whole place, we've got a deejay. we've got karaoke. >> we've got bad tenants. >> we're like the clampetts, going back to the "beverly hillbillies." >> kara swisher, walt mossberg. congratulations. markets have been picking audiotape little bit of steam after being down earlier in trading. traders trying to digest this negative durable goods number. core durables down .2% in recent months, below expectations. but look at the dow, microsoft is the leading contributor there on the back of its earnings, which we were just discussing, dow up by about four points, the s&p up by four points, the composite. shares of starbucks rallying, global sales at the company also rising by 7%. the stock up 4.5%. as bob pasani put it in his notes this morning, it's a good

day in seattle, starbucks, amazon and google. when we come back, first-ever behind-the-keens tour of coke's innovation lab. plus with the nasdaq hitting new highs, should we begin worrying again about a tech bubble? we'll talk to a top vc and early investor in uber. th and he had his movie hit itunes, it soared to the number one spot. youtube star cameron dallas. "squawk alley" continues in a moment. being a keen observer of the world has gotten you far, but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro.

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a tour coca-cola's innovation lab, we're joined from atlanta with more. >> good morning, kayla. yes here in atlanta got the chance to speak to ceo mutar kent and cfo kathy waller about the global economy. it's insightful to hear their views of the world for a company that operates in every country of the world except cuba and north korea. here's whey said about the global economy right now. >> i think we're in a new normal all around the world. think the consumer is volatile, is mixed. is confused. and we have a new normal with

pretty high unemployment around the world, despite growth rates. coming back in some places and not coming back in others. and we have a consumer that really is not as optimistic as he or she used to be five, six, seven, eight years ago. >> so that's the reality that coke is dealing with. obviously the other one is ten straight years of declining carbonated beverage growth in terms of soft drinks in the united states. another question we got and i asked this because i know it's coming on "squawk alley," to deliver this story. is coke an innovation and technology company? more than 100 years old. the answer to that, they say, lies in the freestyle machine. this is their answer to fountain machines of today and tomorrow. there's a lot of work being done. we got a rare chance to see inside these labs where the freestyle machines are being built.

scientists, software engineers almost lying an i.t. company here. they're getting real-time consumer insights from consumers that are using these at the restaurants. getting to pick their own flavors, hundreds of thousands of them. and seeing what they can glean from that. jennifer mann leads the charge when it comes to freestyle. i asked her about whether that was driving revenue growth. >> we talked about growth. so this dispenser is delivering growth to our customers. we have over 29,000 of these dispensers in the u.s. we've also been testing in canada and in the uk. and then we're going to continue to expand further into all of europe this year. >> got a chance to see some of the new machines, which are getting smaller and sleeker to go in some restaurants where they're sending over to europe. coke is obviously the significant market share leader when it comes to restaurants, mcdonald's is among their top clients. pepsi does have a spire machine, a sleek ipad-looking machine that compete with it in terms of

restaurant growth. this whole notion of technology, when it comes to freestyle fits into the broader narrative that i've learned over the last few days. is and that is even though it's a secular declining market of soda, coke is not turning its back by any means on soda. on brand coke. on diet coke. even, which it says the aspartame is safe. it's finding new ways to drive growth in those categories by smaller packages, smaller cans and bottles and by the freestyle, the technology they've built and the scientists and engineers they've hired to do that. it will be up to investors to see whether they find that kind of long-term vision and believe that this category of soda can continue to drive growth for coke like it once did. kayla? >> sara isen in atlanta with coke's innovation story. thanks. it is compensation season as you now, we're getting some news

on gm's barra. >> the proxi from general motors has been released. ceo mary barra did make $16.2 million in 2014. a 70% increase compared to the 2013 salary of her predecessor. people might say that's a huge bump. remember 2014 was the first year since 2009 when gm came out of bankruptcy that it was not under the restrictions that were in place because of the federal government and the treasury department being a stakeholder. they were allowed to determine their own compensation. so mary barra earnings $16.2 million. one interesting note, gm hit 74% of its performance goals for 2014 and perhaps that's the reason why the board of direc r directors decided not to award discretionary bonuses to any top

executives in 2014. guys, back to you. >> phil lebeau with compensation numbers from gm's proxy filing. thanks. coming up, shares of amazon rallying after earnings topped he is matsz. but the real headline was the full reveal of the company's cloud business. amazon's chief technology officer will break it down. amazon shares up nearly 15%. "squawk alley" will be right back. financial noise financial noise financial noise so if you get a trade idea about, say,

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let's bring in simon hobbs as we get you to the close in the uk and across continental europe. >> you can see a good rally, the stage was set early with some good confidence data from germany. the efo survey rising to a ten-month high. the momentum may be slowing according to jp morgan. the greek stock market is up over 3%. take a look at this video shot in latvia. as the finance ministers of the eurozone gathered earlier today.

take a look at the greeks, look, if they were isolated at the beginning of the meeting, boy, were they isolated by the end of it it's widely reported that during that three-hour closed-door session, the rest of europe accused the finance minister of being an amateur, time-wasting, gambler, back-tracker on commitments, a lot of smaller countries are angry that greece could cause them financial turmoil. i don't know where that leaves the negotiations, but certainly it was tense today in riga. top gainer, one of the top gainers, electro lux, swedish appliance maker is saying it thinks it can get another $50 million of synergies out of the ge appliance buy in this country. from 300 to 350. the stock up 24% in the wake of that on the comments from the ceo. and the banks have done well in europe today. a lot of the issues and reissues are down. check out the banks. hsbc is up 3%. it is now threatening with a

formal review announced of it's gm to move the global headquarters from the united kingdom. this reaction is apparently because many people feel it's not as harshly regulated it will free up capital to do more. guys you'll be aware that this comes at a crucial time in the uk as they face a general election within the next two weeks. a general election that was already too close to call. back to you. >> simon, good weekend to you, thanks a lot. when we come back as the nasdaq hits some new highs, tech bubble fears, starting to resurface once again. we'll talk to the top angel investor and early uber backer, jason calikanis and the amazon cloud business rallying 15%. when the moment's spontaneous, why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both

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[♪] and in the restless depths of human hearts... [♪] the voice of the wild within. [♪] . here's your cnbc news update at this hour. eurozone finance ministers delivered a stark warning to greece, it will get no more aid until it agrees to a complete economic reform plan this after a tough morning of talks, with greek finance minister yani yanis varoufakis who was told there would be no early cash for finance reforms. the move comes as consumers

continue to turn away from diet sodas in favor of other beverages. the change takes place in august. when cnbc's asked coke's ceo about the move, he responded i'll not here to defend a certain ingredient. and dramatic video from a firefighter's helmet camera capture as massive blaze in an 1880's built mansion earlier this week in new jersey. it took six hours to bring the blaze under control. no injuries were reported. and the may 2nd boxing match between floyd mayweather and manny pacquiao is expected to be the richest fight in the history of the sport. that's according to the promoter, anyway. mayweather could make as much as $180 million. pacquiao earning as much as $125 million. for the complete breakdown, go to cnbc.com. that's our cnbc news update for this hour, let's get back to squawk alley.

is it time to be on tech bubble watch. the nasdaq climbing higher after closing at the highest level ever, surpassing the march 2000 bubble tech close. helping to lift the nasdaq higher. joining us an angel investor and early uber backer, the founder and ceo at insight.com. jason, good to see you. i think i know some of your thoughts on this because had you a great tweet storm on this. for those who are going to read, are we in a bubble this weekend, what should they think? >> so let's just look at the number of internet users, we had 300 million people on the internet in 2000 and 3% of them in the united states were on broadband, broadband back then was defined at about one-tenth of what your iphone or samsung phone does today. facebook, 900 people per day.

300 billion people on the internet. if you look at the price-earnings ratio of these companies, we were looking at the global.com and saying they had hundreds of the pex. now the infrastructure is built and if luke at a company like broadcast.com, which was very focused, had good revenue. he hit $25 million in yearly revenue. youtube makes $25 million in under two days. uber, air bnb, drop box, the super unicorns in silicon valley. they make that kind of money in a couple of days or a week or so we are talking about companies that make real money and users with broadband connections, it's completely a different time. >> yeah, think we need some new mythical beasts to pull out. super unicorns is a little bit weak sauce. maybe you guys can follow up on

that. what's next. the original dot-com era, brought us things like gmail, google maps. we were going through the cloud and mobile era right now. what's the next thing going to be? >> that's a great question. one is the instant economy, here in san francisco, the city of the future you can press a button and have services like sprig or bento give you food in 15 minutes to your house, you can use services like insta cart and get your groceries delivered instantly. this bodes well for amazon. which is super focused on drones and i've information on that for you. the second thing that's interesting is opening up your phone and seeing a chat interface and being able to type what you need in the world. whether it's health care, or it's delivery services or a birthday cake. the new interface is not going to be this tinder interface or

the feed like facebook. you're going to be dropped into a chat room and talk to somebody and get anything you need and talk with an expert. it's going to change everything. the time is the big commodity now. taking out the time it takes to acquire something, a service, is going to go down to zero. the whole metaphor is going away. the metaphor will be talk to an expert. talk to someone who gives you what you want and that is big trouble for google. >> jason your point that the undercurrents of technology in our economy have changed is one that's well taken. we're having the conversation because the nasdaq surpassed it's all-time closing high and people are saying have we hit a level that should cause concern. en the nasdaq maybe isn't the problem. i'm wondering as you look around the bay area and the venture landscape. where do you see pockets of froth and where should consumers

or investors alike be worried? >> so obviously when these ipos happen today there's no retail investors. not only is there not like the 10 x pop we used to see on cnbc every day and the journal. we're seeing the opposite. the stocks are going down, they're priced fully, you know, the year or two before the ipo, perhaps. and so that's actually a good sign. we don't have the bankers and the speculators making all the money. we have the companies earning the money and putting it into their products, i'm not worried there. if you look at the angel investing space, i used to invest in companies at $3 million, orfy put in $250,000, i might get 1%, 5%. now the same companies, even half as far along are asking for 10 or $15 million. i'm saying hey, nfw. we got to renegotiate for this but don't cry for angel investors, we're going to figure it out. we've got all of these fidelities and tpgs saying we're not going to make money in the ipo. we've to cozy up to these

unicorns, pegasus, we have to get them earlier and that's the thing that's fascinating to me. it took ten years to build a $25 million business in the 1.0 era, now people are getting $25 million of revenue in six months to a year it's insane how quick the revenue to the companies are showing up. >> we'll continue the conversation, and certainly one of the biggest issues in that space right now. speaking of 1.0, shares of amazon touched the highest point since the company's ipo, surging 14% this morning. the company reporting a whopping $5 billion in revenue from its cloud business. at least over the course of the next year. this is the first time that amazon has actually broken out cloud revenue. our own seema mody spoke with the amazon cto about the changes. seema joins us from amsterdam with the story. >> hi, kayla. i had a rare opportunity to sit

down with amazon's chief technology officer and get his thoughts on amazon's booming cloud business. let's listen in. >> this is a huge opportunity. and as such, jeff, jeff bezos has said that he believes the opportunity is so big that they may be over time they become bigger than the retail company. >> amazon's cloud business faces two main challenges, first is competition. the cloud is becoming a crowded market. with google, microsoft among others. some say this might lead to pricing pressure. and ultimately the commoditization of the cloud space station. second is security, just got really loud here. now given the fact that there are a lot of players using amazon web services, that you have the krimc.i.a. using web services, it only takes one

cyberattack for customers to pull away. he says he doesn't think that is a big issue. because amazon is launching a variety of different services, now cloud wasn't the only topic we discussed. i got him to talk about the vision behind drones. listen in. >> definitely these are attention to intention to drive, the time to delivery. and to the absolute minimum. so that you know, within half an hour of your order we will be able to deliver that to you. by whatever means. drones is just one of the ways that we are experimenting in innovation. it's very clear and obvious one. >> of course a critical component to amazon's success in drones will be its ongoing discussions with regulators, and the faa. kayla and carl, back to you. >> seema modi and a little coldplay in the background. you heard what amazon's cto

said about the cloud taking over potentially traditional retail business. nabbing some of those highly coveted government contracts, where are you in the amazon cloud business landscape right now? >> amazon's cloud business is tremendous, they keep expanding to the offering, adding new features and developers are loyal to it. one of the things you're going to see is i think the margins are going to increase, i was reading that people have speculating and the margins are going to decrease. here in san francisco, we've seen amazon which was very aggressive last couple of years, giving away the service for free. giving heavy discounts, has stopped all the discounting and stopped the freebies. that's only happened in the last year. i think it was in preparation for what we saw in terms of breaking it out. and the sky's the limit for that business, it's certainly going to become bigger than the retail business, i think that's an absolute certainty. it's incredibly secure thing. >> jason, when is bezos have his

feet, when does he have his feet held to the fire in terms of posting a sustainable operating profit? meaningful operating profit? or is this just, it's been 15 years and people are still paying up. >> i think it's pretty simple. when he stops delighting customers, when you stop ordering from amazon. when you cancel your prime subscription and when the drone that's dropping off your prescription or whatever it is on your rooftop and by the way, that's the secret of how they're going to do this. everybody is wondering how they're going to do this. they'll land them on rooftops in cages. when people stop loving their service and using it and are loyal to it that's when think he'll have his feet held to the fire. but for now, i think they're just going to start showing these profits and start making everything a little bit of profit. you know, 15 years after all you guys complaining on wall street. he's going to do what he wants. he's in control of the company and until the tens of millions of people who are paying for amazon prime stop paying for it

you're going to have to deal with it or buy another stock. i dare you to buy another stock in retail other than amazon. >> they at least -- >> they appear to have been placated for one quarter with these cloud numbers. putting a bid under the stock. jason, don't go anywhere, we'll talk to you about streaming video in just a moment when we come back. we appreciate your time this morning. so stick around. coming up, stip stil keeping our eye on the tech movers as we watch the nasdaq propelled by earnings from amazon, microsoft and google. all seeing nice gains to the upside. but first, rick santelli, what are you watching today in. >> we're going to do a post mortem on the weak durable goods numbers, how weak was it? we've heard of the war on poverty, we've heard about the war on drugs. is there a new war on cash? paper money to be precise. here's a couple of bank notes, on the left side, all of them say the same thing, they say this note is legal tender for all debts, public and private. but is it really? we'll talk about that after the break.

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with a cruising riding position can-am spyder f3. and the most advanced vehicle stability system in the industry... ...you'll ride with a feeling of complete freedom and confidence. visit your can-am dealer and test drive the spyder f3 today. coming up with the nasdaq at new high, we take a look at the stocks leading the way right now. do you even them? should you? plus an upgrade for amazon. it's our call of the day. and the comcast/time warner deal is off. what's the cable trade? that and more ahead on the halftime report. see you then. the last time you were on the

show you predicted the move to live streaming. we've seen the launch of peri scope and meerkat. how much longevity does it have, especially when a lot of the content not arresting video, if you know what i mean. >> what we're seeing by periscope and me everyone rkat is that every consumer with these device has essentially a control room. those mobile video control room satellite rooms in their pocket. 4 g plus the video on the phones and the processor combined with your social graph on twitter or facebook means you can pop up a 200-person audience and talk to them. of course it's not going to be what cnbc or professional production, "game of thrones." if you're a 15-year-old girl and you're talking to your friends at school and you pop it up at coachella, that's 15 minutes or half an hour less that those

people are going to be spending on television. and that's exactly what's going do happen. death by 1,000 cuts. >> why do you think facebook is going to buy meerkat in the next six months shall. >> as you know, i have a lot of inside information. so every time i go to the program i tell you stuff. i'm not trading stocks on any of this. but i'm an angel investor, i have 125 companies in my portfolio. i sell companies to the big companies, i'm not an investor in meerkat or periscope. i have a lot of inside information, i live in stow and i've been doing this for 25 years. >> you live in san francisco. you've been in the game for a long time. so we'll set the clock now for six months. see what happens, michelle fong recommended that deal. >> very intense rivalry between the two of them. jason always with those inside insights there. >> jason, thanks.

up next, amazon leading the way. what does the recent run for big-tech names mean for the overall sector? if legalzoom has your back.s, over the last 10 years we've helped one million business owners get started. visit legalzoom today for the legal help you need to start and run your business. legalzoom. legal help is here.

let's get to the cme grouk and rick santelli. >> this morning we had a durable goods number, the headline number looked good but everything did not. as peter bookfar frames it, the

core durables, we've had six months down. the last streak similar was in 2009, ending in 2010 when it was seven months in a row. we know this is a very volatile data set. if you look at a two-day chart, the response in the marketplace is clear. given that we were potentially at the top of a range bringing us down anyway, it has implications for the first look at first quarter gdp, many are going to push it closer to zero. another issue of course that comes out these days is about banks. now we all know that we have negative interest rates. how do you capture negative interest rates if you're a policy-make centre if you put money into a negative t bill, you put a dollar in, you get something less than a dollar back. if you put your money in banks, okay, it's a little different scenario. if you put your money in a bank, forget for a second, fdic limits of insurance, get your money in

a bank, whatever you put in, you get out. what we've noticed is, trends that large dpois itors are not welcome at the big banks, i get that, i don't have a problem with that. a bank offer as service, if they want to charge a fee or they don't want your money hanging around because they're not making money on it, i get it. every piece of paper money on the ts, on the front face says this note is legal tender for all debts public and private. now i would like to put something that was in the mesis institute what they're calling the war on cash. as of march, chase began restricting use of cash in selective markets including greater cleveland. the new policy rye strikts borrowers from making payments on credit cards, auto loans and equity cards. i understand that there's money-laundering and all of this activity that might revolve around cash. one thing i've learned from over-regulation is that for the most part the people that are going to do those types of that

type of behavior that isn't quite up to standard, they're not going to listen to the regs, anyway, it penalizes the rest of us. the article went on to say even limiting putting cash or coins that aren't collectible into deposit boxes, safety deposit boxes. this gets a little strange. i guess in the final analysis, it makes me nervous. i understand the dynamic that we really need cash in a electronic society. but it is our right. it says it, is there anything valid that the treasury, the controller writes? if they don't like it, change it. i compare it to cigarettes, cigarettes are bad for you. they should get rid of them. why not? because there's money involved. they don't have the intestinal fortitude to be up front with us about what they want and don't want. it still says on the paper it's legal tender, but it's highly questionable whether it really is. the nasdaq, 5093, is a

bubble inevitable? we'll talk about it in a moment.

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they are the natural borns enemy of the way things are. yes, ideas are scary, and messy and fragile. but under the proper care, they become something beautiful. nasdaq composite not far away from the all-time intraday

high of 5132. we hit the all-time closing high yesterday. it only took 3,802 trading days, kram they are morning, i look being at these levels said great. we're in a bubble all weekend long and that's going to be the question that investors are going to have to wrestle with these valuations. >> it shouldn't be. anybody who remembers the last bubble and the crazy valuations, especially given the earnings we saw yesterday from cloud companies like microsoft and amazony not near that level yet. >> on the front page of the "journal," a breakdown of the industry. 42% now. as many times as people say this time is different, the makeup of the index is quite different. >> even for a company like amazon that is leading the s&p with a 14.5% gain, awfully close to session highs, has an operating margin. and something that we didn't talk about, to a large degree back in 2000.

>> yeah. and they're saying it's still the first inning of the cloud and there are a lot more innings in a baseball game. >> it will be fun to watch. what a week and more as we get set for apple and twitter and go pro and visa next week. have a great weekend. that does it for "squawk alley," let's get to melissa lee and the half. ♪ ♪ >> welcome to the halftime report on this friday, i'm melissa lee in for scott wopner. jim lebenthal. josh brown, and najarian brothers and our game plan looks like this bezos delivers, amazon is making it rain in the cloud and the stock is surging to an all-time high. cutting the cord, no deal for comcast and time warner, what's the cable trade now?