on wall street, and "squawk alley" is live. ♪ good monday morning, out on assignment today, we have a full house here at post live, joining us today, c over the daily mail north america, john, good to see you. >> good to be here. >> kevin o'leary, investor on shark tank is here as well, joining us for the hour, john fort, and our very own david favor, gentlemen, good to have all of you. let's start with uber, according to reports, uber is in early

talks on a new round of fundraising that could value the ride sharing service at $50 billion. uber could raise up to $1.5 billion in its latest run. the company as you might remember was valued at $40 billion pre-money after its last round of funding in december. when you talk to capitalists, you and i both do, they say there's uber, and there's everybody else, when you talk about valuations, do you think we're getting beyond that here? >> well, we're kind of in facebook territory here, how much it was valued before in ipo, and it's interesting the rational behind this would be doing more mna. we hear about uber potentially going after nokia's here mapping segment. you wonder how much other sort of adjacent areas they may want to own themselves as they look towards being public and more self-sufficient, not having to rely on other partners. >> with the reports they were going to potentially bid $3 billion for here, which is nokia's mapping service, they

would need the money. >> i want to change something, it's not valued at $50 billion, there was a large block trade at $50 billion valuation, right. there's no evidence that that's going to sustain it in the public markets. and it's just like the stock basically spiked one day. we need to think about public market companies where the stock rips and they miss earnings and it tanks. >> wait a minute -- >> it does help the investors. >> let me tell you what's wrong with the deal. i'm a hedge fund manager. i participated in a last deal at 40 billion. i saw a valued at 50, i now charge you, with cash in the fund from the lp, the extra 2% fee on the delta. that extra $10 billion, what's wrong with the picture? do you see the problem with that? because if any time ever you need liquid i did, you are screwed. >> i completely agree. the private equity funds and the hedge funds -- >> are funding this deal. >> who can't get into deals

anymore because the public mark surprising them so late are compressing them. >> 2008 and 2009, when you couldn't get your money out of any hedge fund, just got gaited, i don't blame the company for raising money, they should do it. when the ducks are quacking, you feed them. you'd be out of your mind. no liquidity, crazy price, and basically charging 2% more on every incremental dollar on a lift from 40 to 50, it's nuts. it really is nuts. >> and you're forgetting of course the long-term, i mean you've got the long onlies as well. i think that's a new edition to the group of investors who are seeking to get exposure to these areas or these venture companies, right? t road's been in there, but any number of companies, mutual fund companies aren't participating. when i hear about the plans, i wonder well, a nice thing to use when you're doing an acquisition is currency. which is your own stock price. wouldn't seem to be an argument for going public. one of the few that's out there. >> many sellers don't want the

paper, they want cash. in cash you trust. if you're getting sold paper, uber paper and you have a $3 billion asset, i don't want the paper. >> not of a private company that hasn't passed the value -- >> exactly. >> most broadly speeblging of course, i would if it was in the public market. >> thinking about the instagram, facebook, just before its public offering, but of course there was the prospect of public stock in the near future after that deal. it was just what, three weeks, two weeks maybe before the company went public. >> right. >> that was a different situation. >> it's basically like a tail wags the dogs. executives don't to want deal with being at a public company, it motivates everything they do. they don't take the company's public, they raise it progressively higher prices. they are pumping money in at higher prices. it's just as vicious, vicious circle that goes on. >> you came on the program a couple weeks ago and said if you're a founder, ceo, taking the money and run. take every dollar coming your

way. >> in this unique time in our tech space, if you can actually just say look, this is a great service everybody loves, which is true. and i think today it's worth 50 billion, i know last month i said 40, but today, i think 50. anybody a taker? and you get cash, you're a genius. tomorrow, it should be worth 60, why not 80? what the heck, if you can raise the money, take it. there'll be a time of reckoning, all these guys getting 2%, all you have to say, i'm jealous. you're basically creating wealth on paper. when that goes and goes and goes, we've been through and seen the movie, it ends badly. >> for some guy ends well for others. >> we should note, the end of the head lionel has a question mark on the back of it because of course the company has not confirmed the news. and the valuation could go up or down. remains to be seen. next up here on "squawk alley," apple is the number one smart phone maker in china. apple's snagged the top spot in the first quarter ahead of samsung with a 14.7% market

share. overall, smart phone shipments in china, fell by 4%. that was the first year on year contraction in six years, which is perhaps the lead that is getting buried by our focus on amsz. >> yeah, i think samsung shipping 50% fewer hand sets, you have to attribute that to working down inventory ahead of the galaxy s6 launch. we knew from qualcomm that samsung doesn't to want semias many legacy hand sets, of course they lunch the s6 and s6 edge in april. you don't want to the see this happen. if your whole idea is we're selling apple-quality handsets at practically zero margin to pick up business on the back end through services and software. apple should not ever be outselling you like this, especially with the $45 billion valuation they've got. i think a lot of people might havele to rethink the chinese handset market based on the numbers. >> there's talk that saturated 90% of the market has a smart phone, but this is an upgrade market. >> well, a lot of them are

upgrade markets. look at tim cook saying 20% of the installed base have now upgraded to an iphone 6. you have to get there in china. now the market is saturated is a negative sign. all have to earn it on the upgrade cycle. >> kevin, your thoughts on apple? >> i'm no longer looking at apple as a hardware company. i'm a long apple guy. 5% waiting, and i've come to the conclusion that the iphone 6, this is what i have here, is actually an device to a platform. that's the way i look at it. and i say, what the heck? you know, i've got to believe that. otherwise, if i thought there was a consumer electronic's company, i should have sold the stock a long time ago. >> john, you really attribute, 19.9% for samsung to 9.7%, you think that's the channel? that just looks devastating, 50% drop when apple and the other are the ones that double their share in the market? >> it's not all channel, but

samsung shifted. which has done in the past, when you do that and you have a bunch of those in the channel already, when you have to work those down, you're not shipping then maz new devices in, especially when you've got a new fleet coming out. we talk sometimes about inventory management, especially around the apple watch, there's so many different models. samsung has a ton of different phone models, when they're in a transition like this, sometimes you get caught. >> you're wearing one, are you in love with it? >> yeah, i like it a lot more than i expected than i would. >> why? >> because i think i use the weather a lot, the activity tracking is good. messages, i found i can dictate them and respond to a text message better than i thought i'd be able to. third party apps though are slow. >> it feels so much like v1. i'm wearing one, v1 of the iphone where it was interesting, but not perfect.

i think they're underestimating the tax rate. i think, i see no reason why you wouldn't get this as well. the carriers will start bundling them in the coming quarters. to your point, it puts you into the platform. >> you took a beautiful watch and put that on your hand. that's a piece of consumer electronics versus jewelry, that's my problem. >> it's a generational thing. >> oh, burn. >> a gift like that from you, i'm sure. >> the point is men don't have jewelry, tie pin, maybe, and a watch. and you're giving something up for a piece of plastic. >> most young people don't have watches at all. >> we'll let you guys duke it out in the commercial break. we have to move on. alibaba is making a big move to the u.s. market. announcing more than 9% stake in online retailer zulily. it's now valued at more than $150 million. according to a filing, alibaba bought more zulily shares during a recent selloff in the stock which was a pretty sharp

selloff, you can look though at what the news did to shares of zulily, nearly up 11%, trading down slightly, but the this is part of alibaba's investment, minority stakes and companies where it's looking to learn, certainly not its first into u.s. retail either. >> no, its been doing this for the number of companies that you point out. a lot is to sort of establish a dialogue or at least a learning curve for the company as it continues to explore the u.s. market. the real question is when and if they will make a more substantial commitment to the u.s. market. and i think many people expected will be much more difficult for alibaba to any way replicate the success they've had in their home marker for any number of reasons of course. but there will continue to be speculation that at some point they will take the bigger jump. perhaps even in ebay, we had a guest earlier who was discussing that as a possibility. this is where jack mozz still focussed when you talk the broader strategy being embraced by the company. it's him and his josi trying to

put that out. this is typical of what they have been doing. >> so they have a stake in tango, they've got the stake in zulily they've expanded. >> shop runner. >> snapchat. >> a lot of them, what makes me scratch my head, zulily has issues, the order to ship time frame, it takes you about two weeks or many or it get something after you buy it. they've taken down their estimates recently. i wonder, are they investing in zulily to build a case down the down if they do try to go for something at ebay? look what a good investor we are in u.s. companies, you can trust us versus, if they're going to invest in e commerce player, this wouldn't be a strange one. >> the strange thing about zulily, they did $695 million in revenue last year. they'll do 1.2 this year, flat, flat revenue, right? and the argument in the analyst report is largely that people

don't come back. that strikes as a software problem. alibaba says we like the products, we like the brand, we like the style, but we can fix the software thing, that would be the argument i think for more of a takeout in a larger position. >> kevin, from a 35,000 foot perspective, would you rather see someone like alibaba, would you rather see a company make a ton of bets across a wide array of industries or a few very concentrated, but larger bets? >> i'm in the few concentrated, to me, alibaba still feels like a stranger to strange land. it's a weird stock in that context. and if you really believe the story, this is a significant premium, it's much more profitable on a percentage basis. here's the thing i'm waiting for. i'm going to make the assumption, paypal pays a 2% dip. i've got make that assumption. i don't know that, but it's going to replace american express in my institutional position. because it is a growing, trusted transactional infrastructure software, if they pay a dividend. i would gladly switch for it.

any other managers who think the same, as soon as that leaves alibaba or ebay clean, it becomes americanized and trade at a higher pd. it's so obvious they should do that. they'll get me as on investor, if they could combine those two and bring the margins up on ebay to alibaba, i like it. >> easier said than done. there are investors who feel the same way. >> i think it was david's idea. >> i'm not taking credit for that. the split of paypal and ebay is not far away. early, let's talk july -- >> pay a dividend? >> i don't know, i think the capital structures, i think they're still finalizing those. paypal is a faster grower, unclear if that would pay a dividend. >> don't you think? >> amex is vulnerable in a number of portfolios. >> that's the opportunity that management has. >> this is a conversation we'll be having for a number of weeks at this point. kevin, john, good to see you guys. let's get a check in on the

markets. negative territory, taking a little bit of a breather after the big rally on friday on the back of the job's report for the month of april. the dow, s&p, and nasdaq just turned into positive territory a few moments ago. up by about a tenth of 1%. shares of citigroup have been slipping, they said in a regulatory filing it could plead guilty in an investigation into potential foreign exchange manipulation by the department of justice. citigroup is positive, but barely so at this the hour. something to watch for, john, as we wait for the settlement. coming up, closer look at the future of the sharing economy. ceo of airbnb will join us live in an interview. plus this week would represent a major tipping point between digital and regular tv viewers. we'll tell you which media companies stand to win and lose. and he won the sohn contest

with a simple proposition. wall street is not fairly valuing the app tinder. he's with us to explain why later this hour, squawk alley will be right back. ameriprise asked people a simple question: can you keep your lifestyle in retirement? i don't want to think about the alternative. i don't even know how to answer that. i mean, no one knows how long their money is going to last. i try not to worry, but you worry. what happens when your paychecks stop? because everyone has retirement questions. ameriprise created the exclusive confident retirement approach. to get the real answers you need. start building your confident retirement today.

welcome back, does this week finally represent a tipping point between digital and regular tv? julia joins us from l.a. with some answers, julia. >> john, today kicks off the

upfronts in approximately $20 billion are up for grabs. as much as three quarters the annual tv ad industry and this year will be the year that digital viewing really starts to eat into tv ad dollars. the amount advertisers spend this season is projected to drop 10% at broadcast networks and 5% at cable networks. according to research and ad buying firm global. why? declining tv viewing as consumers stream more video, finally impact madison avenue decision making. tv viewing has fallen 9% this season according to them who says netflix is over the decline. the question is now which broadcasters will suffer the most this year? the most recent round of earnings, cbs was the only bullish media giant projecting volume and pricing growth. abc and disney would do just fine. fox is struggling with ratings decline among younger viewers, and ending its american idol

franchise. it's expected to face particular pricing pressure. networks have been making a growing investment in digital. nbc announcing it'll stream its tv content on aol. management global projects the shift will accelerate this year. digital media is already bigger than national tv advertising, and will match total tv advertising, including cable by the end of 2016. kayla. >> all right, julia in l.a., interesting week for sure, julia, thanks. coming up, president obama recognizing a host of new entrepreneurs at the white house this morning. chief among that less, airbnb co-founder and ceo, brian chesky. he'll join us in just a few minutes. "squawk alley" will be right back. s romantic, s romantic, why pause to take a pill? and why stop what you're doing to find a bathroom? cialis for daily use, is the only daily tablet

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and government research shows they live just as long as whales in the wild. caring for these whales, we have a great responsibility to get that right. and we take it very seriously. because we love them. and we know you love them too. welcome back. take a look at etsy, shares are down about 9% after getting

downgraded to underperform due to a risk of trademark valuations and counterfeit items being sold on the online marketplace. goldman and morgan stanley also initiating coverage. we talked to the ceo about the stock price. here's what he told us. >> i'm not focussed on the stock price today. we're focussed on building value for the long-term, continuing to serve the community and continuing to build this great company that i'm proud of. so, not really focussed on the stock price at this moment. >> well, this was a good time for him not to be focussed on the stock price, i suppose, if anyone should talk about it, stocks still up about 30% from where it priced when it went public. >> first earnings as a public company, may 19th, that's next week, certainly an important date for investors. speaking of the company, it was one of two companies on the 2014 cnbc disrupter 50 to go public. it's down from 2013, perhaps we're finding out why that is. as we get ready to unveil the 2015 disrupter 50, our julia has

a look at the future for this disrupter graduate. >> etsy, number three on the 2014 disrupter list and the most recent to go public. debuted at the nasdaq on april 16th. the marketplace for entrepreneurs selling handmade goods ended its first day of trading with the stock up 86%. >> 42% of our revenue through the end of 2014 was sell our services. that's been a big opportunity for us. and we see building these high impacts at a greater opportunity in the future. >> but the stock fell sharply from highs on concerns the company has not yet turned a profit. etsy faces the challenge of competing with larger rivals like ebay and amazon, but its social mission of helping entrepreneurs may be the key to its long-term success. who will be next? the 2015 disrupter 50 list is revealed tomorrow.

>> of course looking forward to that. meanwhile, let's bring in simon hobbs to count you down to the close in europe. and the u.k. simon. >> biggest picture asing you, see, the euro zone ministers are meeting in brussels. we should get a clearer idea of what the greek associaters are. the german finance minister said it might be right for greek to seek a referendum on whatever measure ultimately they're able to strike, pensions, labor reform, and the deficits seem to be the major problem. tonight's statement, although it'll probably say there has been progress which is key, will probably be not enough according to city to unlock further issues courtesy of the ecb. offer them to lift that limit which would give the greek government more funds. obviously watching that carefully.

meanwhile, air bus, france underperformed today. the industrial drawing down about 2%. one of the military aircraft that has been selling around the world, you probably saw this crash in spain over the weekend. germany and the uk have suggested that they will now suspend their own military transporter operations with that a-400m, obviously, we're watching that closely. the other interesting thing today, some of the grosses in europe have done well. notably from the netherlands and belgium, not sure if you know dell hayes, they actually control food lion and stop and shop right down the east coast of the united states. they're trying to do a deal that actually is a lot about how they recon figure what is happening with the retail sector here, the food retail sector here in this country, back to you. >> thanks very much, simon. >> yeah. thank you. when we come back, the future of the sharing economy, according to airbnb, the company's co-founder and ceo will join us on a first cnbc

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i'm morgan brennan, here's your cnbc news update at this hour. defense lawyers for boston marathon bomber dzhokhar tsarnaev have rested their case in the penalty phase of his trial. sister helen preshan was the

last of nearly 40 defensive witnesses called. mark sarvry will step after being voted down by the board. the company's largest shareholder, coo timothy yagi will serve as interim ceo. french president hollande became the first to visit cuba since the revolution. he was accompanied by a number of business people when he arrived in havana last night. he was met by cuba's vice president. and olive garden has a new plan to win back customers. the company will take the bread sticks its known for and make sandwiches out of them. last year starboard capital returned that the chain gave out too many with its meals. and that's your cnbc news update for this hour, let's get back to "squawk alley." thanks, morgan.

we have a news update for you. phil is live in chicago with the details. >> john, as we do every month when the department of transportation puts out on the on-time ratings, we're looking at the latest report from the d.o.t. this is for flights in march. the top three airlines in terms of on-time arifles, hawaii, alaska, and delta, those three have been steady performers in terms of being at the top of the on-time ratings. by the way the industry, 78% at the bottom of the list, frontier, envoy, and jetblue, which is the lone major at the bottom of the list in terms of on-time performance. guys, quick in terms of baggage and mishandled bags, they did better. they mishandle 3.42 bag for every 1,000 pieces of luggage they were taking through the airlines, back to you. >> all right. i guess question feel better about that. thank you, phil. meanwhile, airbnb is at the white house this morning, and the lincoln bedroom is not on

the site. the president hosting an event on entrepreneurs and announcing a new slate of appointments for the presidential ambassadors for the initiative, including our next guest, joining us from the white house, brian chesky, the co-founder and ceo of airbnb. thanks for joining us. now just a couple weeks ago, we had your cto on, he was talking about how europe is actually more than half the business right now. i imagine you're heading into a heavy season, tell me, how does the regulation situation look? i know barcelona was giving you guys a lot of trouble. i couldn't get uber there, partly because of regulatory issues, but i do see 1,000 airbnb listings in barcelona right now. how's europe and regulation shaping up? >> well actually europe, yes, you're correct, it's the majority of our business. 50% of our business. and what we found in a lot of cities is that our business is growing faster in regulation, but we found city by city,

paris, which passed a national housing country of france housing law in january, or the queen of england that just a month and a half ago signed into law recognizing home sharing. city by city around the world, they're starting to recognize home sharing. and the thing i'm excited about today is i'm here to talk about cuba. and airbnb about a month ago, we launched in cuba, we launched with 1,000 homes, and now we have 2,000 homes in cuba. >> and you have a broader, role, brian on the page council which is of course the entrepreneurship initiative by which the ceos of them are on the council with you. yours is a pretty tall order, not only to expand the entrepreneurial ecosystem in cuba, but also to build for internet literacy and payment. how do you even begin going about that? >> well, i found that one of the most important things that created an ecosystem is just to expose people to entrepreneurs. i grew up, and my parents were social workers, and growing up, i never met an entrepreneur.

i never as a kid wanted to be one, i didn't know that was a an available option. when i came to san francisco, all the people were starting companies and had this wonderful contagious effect on me where i realized, if you can do it, maybe i can do it. one of the things i look to do is show, kind of communities around the world, especially in cuba, that of course you can do this too. in fact the cuban community in havana especially is very entrepreneurial. over 8,000 homes are already being rented. this is an idea and now we have 2,000 of them. we to want foster this conversation. i think being present there and kind of discussing the things we learned will be helpful. >> brian, something else that might be contagious in san francisco is raising billion dollar rounds. i mean, i know you've raised some money in the past, uber looks to be potentially raising more. might you go out and raise some more money, perhaps for mna like uber is doing? >> well, i mean the market's really great and we're always open to available capital. we have nothing to announce now, but business is doing well.

the thing i'm so excited about is, you know, seven years ago, we had one home here in san francisco, one home in san francisco. we now have 1.2 million homes, and you know, we have about 400,000 people a night now staying on airbnb. there's a lot of opportunities, but we have no immediate plans to announce anything. >> brian, i'm thinking back to earlier this year when inc. named you the company of the year, but they said at the time, if airbnb can evolve from renegades to corporate citizens, you're there. suit and tie today which is obviously a new get-up, i'm wondering, how airbnb and how the startups can work to legitimize their reputations, even though the business models already are? >> what i found globally once again is that our business in tech moved so quickly, it moves faster than regulation. the most important thick to do is go into cities, number one, listen. understand the concerns of cities, and number two, educate them on who we are.

we're a completely new concept. i understand that people have notions of what we are, but what we found the more people learn, the more they love. we ultimately to want make the world, we to want enrich the cities we're in. we want to make them stronger and our vision is to create a world where you can go anywhere in the world, and you can feel like you belong so you're accepted like family. by doing that and allowing people to become entrepreneurs, this is something that cities around the world embrace. >> brian, it's david, you mentioned that business is doing well. i love to get your sense as to how you measure really, really well. what is it you look at as the ceo to determine what measures up to those adjectives. >> well, we look at how many people a night are staying in airbnb, and how many homes we have around the world. and how people feel about our company and the kind of quality of service. to just give you an example of the size of airbnb, over new year's eve, biggest night ever,

550,000 people, and the year before, that was about a quarter of a million. so these are the general metrics that we look at. i think ultimately understanding how many people every night are staying in airbnb and the cool thing is, typical night, people are staying together from 186 countries around the world. you now have people from almost every country in the world living together which is a cool step. >> brian, it had been a while since i saw an airbnb horror story which speaks well to the security efforts, then i saw a couple last week. and i know, you have some new security efforts under way. i believe you've got around 300 people working on technology to kind of scope out potentially shady people before they become a problem. can you say more about that and how important is that for you long-term to really get security down on the site and to help people feel better about using the service? >> trust and safety is the most important thing. our core invention wasn't to book a home, our core invention

was that we created currency of trust that allowed two people prior strangers to virngly meet and be able to trust each other. and 70% of our guests when they travel, leave a review. we have millions of reviews being accumulated. beyond that, beyond our community doing their own vetting, we are looking to do a lot more tools. we have this thing called verified id, it's an important program where we can verify driver's license or passports, we can kind of cross reference them to social accounts. and we can do a fair amount of, you know, kind of checking to make sure the systems are good on the back end. and we have a lot more systems that we're going to be coming out with. if you think about where we started, and what we have today with a million dollar guarantee, liability insurance in the united states, i think this is just the beginning. three to five years from now, you'll see things way beyond the scope of what we're doing today. >> brian, i know when you try and open up a new area, one of your key arguments of course is the impact on the local economy and how positive it can be. what are the metrics you use when you're making that argument

with local officials. >> well, actually, i can, i can share a brand new stat, we haven't announced yet. we just did economic study in the city of new york city. in new york city, we found that we will, over the course of 2014, have brought $1.15 billion top the city of new york and creating the equivalent of 10,000 new jobs. that is a profound amount for a company that just launched a few years ago and didn't require any capital investments from the city itself. we found that people say in airbnb, more than 80% stay outside. they are staying in different neighborhoods. they stay in new york for longer. the only other thing, 40% throughout the united states, people stay with friends and family. now they can have their own home. i think it's a really wonderful thing to be able to do. >> there are a lot of people who are happy to diffuse ever increasing rent prices here in the city as well, brian. i'm just wondering about airbnb,

are you profitable? i knoll it's not a priority for companies of your size and focus, but i'm just wondering, at what point that happens. >> you know, one of the wonderful things about being a private company, we don't have to talk about our finances, but i can tell you that the whole purpose of it being is business is to make profits. that's a part of our strategy. >> all right. i guess we'll leave it there. thanks, brian. always good to have you, come back soon. >> thank you so much for inviting me on today. coming up tomorrow, which companies have earned the right to be called cnbc disrupters? airbnb was the 41st company on our list last year, coverage begins tomorrow when we reveal this year's list, kayla. >> all right. up next, why one student's theory on tinder has big names like david einhorn and bill ackman swiping right. interesting. but first, rick santelli, what are you watching today? >> well, we're definitely watching the yield z athey creep up to a significant level.

also looking at something i don't look at much, labor market condition index. it's so much weakness today when there's so much goodwill about friday's numbers still in the air. more after the break. a simple question:meriprisee in retirement, will you have enough money to live life on your terms? i sure hope so. with healthcare costs, who knows. umm... everyone has retirement questions. so ameriprise created the exclusive confident retirement approach. now you and your ameripise advisor.... can get the real answers you need. start building your confident retirement today.

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the perfect match. and the mom who gets to hear her daughter's heart beat once again. we're helping organizations transform the way they work so they can transform the lives of the people they serve. we talk ahead of wednesday's proxy vote on dupont. plus, mick mcguire lays out his

plans for bank of new york, and ricky fowler wasn't the only big winner at yesterday's pga players. getting a lot of attention thanks to their relationship with fowler and the runner up wheels up kenny is here. that and much more, straight ahead about 15 minutes from now, john, see you then. >> all right. we'll be there. now to the group, rick santelli and the santelli exchange, rick. >> well, good morning, john ford, thank you. friday obviously every first friday are equal not first fridays, but the early friday read on the employment report is a biggie. and for good reason. there are certain handful of very key data points. anything to do with employment, of course, and anything to do with retail sales, inflation, they're all key, but this one's key for another reason. after all the talk last week after the number came out, and believe me, it wasn't a bad number, ian though the re -- even though the revision took a

lot of horsepower away, you could still say hey, maybe it was soft because of the weather, but, labor market conditions index came out today. and if we can show a chart, nothing i'd pay a whole lot of attention to, but we've talked about this before. when we're at such a vital inflection point of the markets trying to capture the price discovery back from government agencies or central bankers around the world, every day to point where we can dig down deeper in or any seasonal issue we can dig deeper down deeper in is important. this happens to be a fed favorite, and it's printing negatives several months in a row. more importantly, weakest level since june of 2012. as you see there, this is a bad epilogue to that number. now if we look to the markets, 22 on ten-year note yields, look at a day, early in the session, we did have some yield strengths, some selloff potential, but it didn't seem like it was next chart please, two-day chart, going to take out

the high yields from friday, but it did. and we've talked about this before, open the chart up to around valentine's day, i can't stress enough that you could say it's oversold pushing yields up and that's all the issues we're supposed to pay attention to as the speed of the selloff from a 164 to a 224, but in the end, deep sell off for not, it doesn't matter. if we quickly start to close above 224, that's significant. another thing's significant, we had a fed official, mr. williams from the san francisco fed with steve, very interesting interview, what i found fascinating was his t-shirt. you can probably see the t-shirt right now, of course it's all about fed being data dependent, but when i talk to s&p traders on this floor after the number on friday and the revisions, they say their t-shirt would look a bit more like this. put that beacon up, fed's still in play and we still need it and the punch bowl's as active as

ever, where's that fed signal? back to you. david. >> rick santelli, good t-shirt drawing. all right. coming up, still a lot of questions about the valuation of iac's dating app, tinder. i tried to get some answers from barry on friday. take a listen. >> on tinder, what's going to happen is some stake will be for sale and everybody will assume that the valuation is two billion or three, some huge number based on what they see for the small stake, are they incorrect to do that? >> i think they're making a speculative bet. i would look instead at the values inside the company and pay attention to those either achieved or near achieved the values. >> our next guest won the best investment idea contest at sohn because he says tinder is undervalued. he'll make his case when we comes back.

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our next guest says swipe right on iac because tinder is worth more than it looks like. and the analyst that sees no upside is living under a rock. barry diler joined us on friday. here's what he to say on tinder's evolution. >> technology brought, brought

to this relationship thing. whatever you want to call the thing, is a fantastic tool. you know, the, a new idea for tinder, which they'll probably kill me for saying, is essentially in a small, you know, area. a bar. you know, a large event room or whatever. it will tell you who is in the room and essentially how far away. and i thought that's not a great idea, then somebody said you don't understand, guys and girls are shy about that first, you know, that worried that it's not a yellow light or a green light, but it's a flashing yellow light, and they'll be humiliated. and so this kind of, this is kind of a little quick silver to get you over the hump of being bold. that's a great tool for people. >> this is the sohn investment

idea contest winner. he joins us here. we should explain, you submitted an idea to the panel of experts, and they came back saying, your idea was the best they heard. >> that's correct. >> and that is based it would seem on what you believe is the value of tinder. which i spent a lot of time discussing with mr. diller who has a lot of other properties, but certainly this one arouses, if that's the right word -- >> exactly the right word. >> thank you. >> i think what's happening is there is definitely tinder which has gone viral. and we don't know exactly the number of users, but suspected there's around 50 million, just to give a comparison, 3.5 million match subscribers. iac owns 39 different online dating companies, and this is the new thing. this is the way people will meet in the future. and what i tried to explain at the sohn voemt conference, this is the way people will meet and it's here to stay. >> when you hear mr. diller

describe this new application, in a bar where you could be sitting there, and kayla would be over there, i'm just saying, for example purposes -- >> do you have this down? >> no, i swipe, i mean, do you think that's something people really will do? >> yeah, i mean look, tinder has just completely taken off because it's, even campus colleges, you don't know who's single, who's not. what's so great, you c swipe right, and the person you like, off crush on doesn't swipe right, left, they're never going to know you swiped right. you only get a match if both swipe right. you save face, and it's an excellent idea. and what's so amazing, the net effect. >> what do you assume about how you monetize tinder though? in this era, we hear so much about pricing being depressed. do you assume they have to have a really strong subscription offering that the millions of people ho are into swiping are going to be willing to pay a lot more in the future? >> tinder is still free, the base tinder. now if you want extra slides, if

you want some extra functionalties, you pay for that. and since it's growing so fast, even if we get a certain percentage of users, you know, tinder will do well. ways that tinder will monetize the application. >> so, iac's market cap is $6 billion. i mean that seems like a small feat compared to the private companies we cover on a daily basis, if tinder is worth as much as you believe it to be worth, what should iac's market cap actually be? >> so, essentially, i think tinder, and i did an valuation based on, analysts are valuing tinder on 2016, and they just started to monetize march. that's an incorrect way to valuate. in the world, you would never value a fund next year. so, i think this is a double. i think this should be right now a double. >> of course, we don't know how much they own of tinder. >> yes. >> they control it, but mr. diller saying during the

interview, i don't know, it's more than 60, less than 70%. and we don't get the financials, to your point. >> yes. so i valuated, they have 75% of the company, that was my base model. and the way i see it just look, tinder last year from match.com. so, if you take that out, and it has all the the expenses, it contributes. when you do this analysis, i think tinder should be worth where it is, then you have tinder. and you know, they actually compliment each other. tinder and match.com and all the other 38 dating companies -- >> they increase the overall pool, you think? >> what happens is look, tinder is more casual. and the best thing somebody told me is that tinlder is a gateway drug for online dating. and it is making it okay. so we're getting people that are just going to be either, you're going to switch, if they want something a little more

profile-based, match.com or okcupid. >> well, congrats on winning. we'll see how the actual stock does over the next year. really be winning, but appreciate your time. thank you. >> thank you very much. >> yes indeed. all right. up next, why wearing an apple watch has one chinese anchor in hot water. a lot more when we come back. financial noise financial noise financial noise

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news anchors beware, don't flash your apple watch in china. there's been some outrage in the country after a young news reporter appeared on national broadcasters cctv wearing an apple watch. some accused the anchor of showing off her wealth as well as giving apple free advertising as if it needs it. the worst criticism though, the watch did not match her outfit. the model she was wearing retails for $675. i don't see how that doesn't match. >> i don't either. >> she's wearing the black shirt underneath it. >> you have the white sport band. >> this doesn't match, but fortunately, i live in the united states of america where we can -- >> flash your apple watch to your heart's content. >> exactly. >> free market capitalism. >> thank you for that story, john. look at the markets before we send you over, still in mixed

territory right now. nasdaq up by a quarter of a percent. as for the major averages, we haven't seen a streak in either direction longer than three days since the end of march. so we'll certainly keep an eye on the markets, david, thanks for spending the hour with us. >> my pleasure. >> it was fun. >> let's go to scott wapner and the half. ♪ welcome to the halftime show, let's meet the starting line up for today. steve, joe, josh, and pete, our game plan looks like this. real money, real debate. two activist investors are with us exclusively today. first nelson pelts just two days before the proxy vote, then nick mcguire on his plan for bank of new york. landing on halftime, kenny victor on why this weekend was a hole in one for his private jet company, but we begin with tooks unable to add to that post-jobs