on wall street, "squawk alley" is live. ♪ ♪ ♪ ♪ welcome to "squawk alley" for a tuesday, joining us this morning, shelly palmer with landmark ventures and first up we talk about apple. getting a better look at future of apple music. "wall street journal" says apple will take its apps off the revamped beats service, expected to cost $10 a month. unlike spotify. will not have a large free ad-supported service. meantime re/code says apple will

not announce its tv plans next week because it has yet to finalize some of the licensing deals. we may not see apple tv until late they are year or even 2016. what were the expectations on tv first of all? >> on tv we were expecting to see a skinny bundle and the question was, which big broadcasters, which networks were going to jump into this. this music thing, i'm scratching my head. what problem is apple going to solve here? $10 music service? kind of a dime a dozen. a little disappointed if they don't innovate on top of that. this is their chance to show that the beats acquisition, $3 billion, was worth it. jay-z got title for $56 million and is up and running, charging $10 and $20 a month. let's see what apple can do. i've got streaming from sirius xm for $15 a month. for really good radio and curation. >> i hope they got more than

that than drake. i don't care what music drake is listening to. they've got to give me more. >> we talk about how apple is the first mover. but it tends to introduce a product that's better than the market. is this this a product that could win over the 86% streaming market that spotify has. >> every once in a while you look at the most valuable company on planet earth and you go huh? today is one of those days. tim cook will tell you they want to go end to end. they want to own the customer experience everywhere they go. if that's a strategy you believe in. this is one small step and i do mean small step in that direction. the actual differentiation between apple's music product and every other music product, pretty, pretty hard to find. >> this does allow you to someday, if you're an apple fan boy, you want to stay in the ecosystem, it does bring everything home a little bit

more. >> that's my whole point. if you believe the strategy that says apple is going to take you end to end from the time you wake up and go to bed. if you count your sleep on your apple watch. end to end, they want to own you. >> what benefit do i get? >> none. >> already you've got a spotify app on your iphone, lots of people are using that, you got pandora, some people use that none of the models seem to be working particularly well. are there music choices just going to be that much better that everybody without the premium model is going to rush over to app snl i don't know. >> but they do have your credit card and that's something that spotify doesn't have to convert the fremium users over to premium users. >> if they're going to amass a bunch of data about you and we are living in a world of accelerating information that will always accelerate and apple, data is everything now. they're going to have a better

profile about the things you like and the things they can do realistically, apple had no choice. i think they need to be seriously in the music difference, is it going to be a differentiated or undifferentiated product? i don't know. it will allow them to take people who do not understand how to use spotify and pandora and make it instantly available as an apple ecosystem feature. there are a a lot of people not at this table who think spotify is hard to use, i don't know how that's possible. it's no the in my world view. >> look at final cut. i--movie, they make it easily digestible. just add water function amt. that's what they could do for music. >> and that's very important to a large group. could surprise you in market share by picking up people who no one else has. >> any risk they don't get the licenses for music across the finish line? the "journal" points out universal, sony and warner have in the final stages and haven't inked those yet. >> if the recorded music companies do not sell to apple,

who else will they sell to? it is the rabbit and the fox. you know hot rabbit is, you know who the fox is they will sell, or they will license at a certain point. they just don't have a choice. >> some viewers scolding us for not mentioning carplay by this point that will be a longer-term story. >> smart viewers. >> very smart. >> next up, our ads really coming to netflix? users started to to get worried after the company started to test some preand post-role teaser ads for its own original shows. reed hastings took to facebook to tackle that confusion. he wrote no advertising coming on to netflix, just adding relevant cool trailers for other netflix content you are lookly to love. some people said that's advertising. >> first of all this is going to be the greatest proof of the pudding moment in the history of the advertising business. netflix has the best preference engine of any preference engine according to netflix. they know what you like and they

can serve it up to you this trailer should blow your mind and you should love it. which will pave the way for them to put an ad in front of you that you're going to love. we're going to find out. >> borrowing a page from the hbo playbook, right? >> everybody runs, coming up next or you might want to see a tune in for. it's in netflix's interest absolutely not to do advertising. right now we're seeing the advertising market getting slammed by programmatic. everybody scrambling to see can we do a premium strategy. can we get subscriptions? that's what netflix has, they've got data on what people want. they're in the cat bird seat. no reason for them to annoy those subscribers with advertising. >> here's what's going to what first there are no ads, then there are trailers, then there's one ad just in front a little bit. what they'll do is they will sneak in as many ads as they can until you churn and then they're going to back off. if you can tolerate it. there's revenue to be had.

>> i don't think they're going to do it. >> youtube is. >> hbo doesn't. >> sometimes you can skip, sometimes you can't. >> but youtube was never a premium channel. it was always someplace you went for free. >> this is more important to the brands than it is to netflix. because as tv viewership changes and as targeting gets really hard to do, knowing who's on netflix, what they like, that is just gold for an advertiser, there could be a lot of pressure, literally not from the media companies, not from the license content, not even netflix. just we need to get to that audience. i don't think netflix benefits from doing any advertising at all. what i'm saying is this little trailer expert will tell as you lot about preferences and likes and if you whatever relevant content means we're hearing that if the content is relevant, you're going to watch it. will we? they're going to put the most important trail anywhere front of us, and if we don't go crazy,

then what? >> you would be watching churn in the next three quarters? >> you want to narrow in on it. they're going to have a much better idea. one of the nice things about a digital business, it's dispassionate and it's instant. they will know immediately and who decides this isn't working. they're going to learn a lot. >> if they're not going to do advertising, what point does the subscription rate go up again? because content costs are doubling. they're doubling the rate of revenue growth right now. >> you told the entire story in one sentence. >> netflix cost $7.99. people on cnbc need to quit complaining. they've been disciplined on price. >> they have been and what's important to understand is that the better you get in the entertainment business, the price only goes one way. nothing gets cheaper as it gets better in entertainment. you can't find a well-rated show than last year. more famous actor that's cheaper than last year. the better you get, the more you cost. the better espn costs, the more

it costs, the better gets, keep saying it to yourself. it's the only place in the world -- >> they managed to keep growing, good for them. >> shelly, good to see you, fantastic shelly palmer thanks for joining us. let's check the markets, we have been in negative territory. the markets opened today looking at a global bond sell-off. it started with the first signs of inflation in the eurozone in several months. and we had some comments from fred governor brainerd about no q 2 bounce-back in growth. the dow down by 9 points, it's come off the lows, s&p down by .1%. as is the nasdaq right now. check ott the airlines, all slipping this morning. this after five bomb threats were phoned in against flights originating or landing in the united states. government sources have deemed threats not credible. but there have been some flights earlier this morning that were grounded. you can see how the airline stocks are reacting, all in the

red. >> when we come back if our next guest has his way, siri could be running your entire house. we'll talk to one company teaming up with apple on the connected home of the future. according to walt mossberg, a revamped service from google is better than from competitors apple, amazon and drop box. and virtual reality meets doing your taxes, how h & r block is trying to bring oculus into the everyday environment, next.

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. call it the little smart thermostat that could. one start-up landing a big backer to take a big swing at google's nest. apple announcing that the smart thermostat will be the first device will be the first part of their home kit. joining us is ecobee's head, apple's smart thermostat. what did it take to be part of the elite feud that will be apple's home kit? >> a lot of work. part of our goal as a company is to create great user experiences and working with apple on home kit we believe we're delivering that. >> honeywell, allure, there are a lot of other companies in this space. i'm wondering what specifically it was about your product that

caught apple's eye? >> i think one of the key differentiators we have is we solved one of the main problems that consumers have. that it may be comfortable in my hallway where my thermostat is, but earo bee 3 has remote sensors and the remote sensors you can put in the rooms you use. we know which rooms you're in so we can differ comfort in the rooms that you use. like your living room or your baby's room or your home office and save you money when you're not home. >> stewart you you're out early with the thermostat and you're in apple stores. i'm wondering how important a channel is that for you? and how do you expect to stand out once there's a flood of other home kit products? because there will be plenty, especially after wwdc. >> sure, i think one of the things that we recognize is that the smartphone that you carry in your pocket is a huge determinant on the connected home devices you're going to buy. because customers want interact with their smart home devices through their smart phone.

so making sure that our product works better with the iphone or ipad or other apple products you have in your home is central for us to be successful. it's been really great and a really great experience for us and we're excited about it. >> how significant is apple as a channel for you right now? apple is really significant because you know -- >> i mean percentagewise, is it your biggest retailer or how big is it? >> it's not our biggest retailer for sure. it's a significant retailer and important retailer and i think working with apple, certainly leads credibility to our brand and gives customers confidence that our products are going to work well with the apple products they have in their homes. >> you guys are on home depot's website and amazon's website. you lowered your price to $230 from $249 which is where nest

is. how price-sensitive is your competitor? >> the edge is not the price, we're running a father's day special going into father's day, that's why we lowered the price. you know we expect that you know when we launch the home kit enabled product in apple stores and home depot and best buy july 7th, that the price will go back up to 249. >> is it primarily a residential single-family home product? or what's the opportunity in terms of the enterprise, corporate, commercial real estate? >> our primary market is residents you know in that single family home. there are about 140 million of them in north america, that's our primary market. we sell into the commercial market. light commercial, buildings less than 20,000 square feet. typically things like fast food restaurants, retail location, there's a huge opportunity there it's a smaller number of dwellings basically. >> stewart you've been called the underdog to nest, which we just mentioned, how much does it deal with apple help you close

the gap? >> i think it closes the gap a lot. with the launch of ecobee 3 we've closed the gap. you can read the reviews on amazon, think our customers really love the product that we have. and certainly you know, the endorsement from apple is a big deal and i think it allows us to compete with nest in a way that is very difficult for nest to fire back. >> stewart, certainly an exciting development for your company, we will keep an eye out for you and we appreciate your time this morning. >> fantastic, thank you very much. >> stewart lombard of ecobee, now i have an idea for a father's day present. when we come back, accountants meet the oculus rift. how h & r block is using virtual reality.

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it took serena williams years to master the two handed backhand. but only one shot to master the chase mobile app. technology designed for you. so you can easily master the way you bank. your accountant might be going virtual. our jane wells is live in los angeles with that story this morning. hi, jane. >> hey, carl at least he's

virtual during market research. this is what happens when accountants meet oculus. >> i like the 55% complete. >> i'm having my taxes done by john. >> thank you so much for coming in today. >> thanks, john. h & r block wants to completely revamp its customer experience, rather than spend a lot of money doing it in reality. it's testing it in virtual reality what do you think of it? >> cool. >> block is the latest company trying to figure out if virtual reality or vr can be used as a business tool. fidelity has a vr program that lets you turn your stocks into a city. >> and the height of the building represents the price. >> it's easier to experiment with vr as the cost has come down. lieberman research worldwide is running the h & r block program, it used to spend $40,000 per headset. now it buys them from oculus for

$300. >> next year you're something going to see an arms race with headsets, there's six to ten different headset manufacturers that have announced projects. >> block is exploring a new office layout with more privacy and a big screen so customers can follow the tax process. >> and virtual reality lets you bring together all the moving parts in a way that does feel realistic. it's so real to them they'll start talking about the avatars. >> well john was foaming at the mouth. besides that it was very comfortable. >> even if the graphics look kind of hokey. customer sherry zealbauer bout into it. >> i felt it was interactive, even though i didn't talk back. it felt real. >> don't mess hes tate to call plea me with questions throughout the year. >> the project block costs block the low six figures, that's more expensive than just asking someone in a survey to imagine

what the new office looks like. respondents said they did get a better sense of reality. it does kind of work. i felt like the more unreal it was, the more you bought into it for research purposes. >> interesting. how does it feel having kind of a video game clark kent do your taxes, though? >> well, he got me a really good return. i mean so i was going to get a good, usually i have to pay the government. but through john i was getting money back. so i like john. >> always go with john. >> good news from you, jane wells. >> the mouth. >> well, you know. johns are good, let's move to intel, shares slipping after getting downgraded to market perform at bmo capital markets. many the firm says it doesn't like their acquisition of yale taltera, you know who de the ration al, one ceo who talked about it yesterday. >> even for big acquisitions,

we'll always be on the lookout. this is a big one and we'll need to take our time, go through the regulatory process. i think we'll have some resonance to do another big one too quickly. but we're goings to be looking for value to our shareholders, constantly, internal investment and investments in acquisitions. >> different ceo, but i recall when intel did the mack afcafeer the previous ceo. as a matter of fact the new ceo said, sometimes we go through the periods of consolidation where acquisitions are important. we're in one of those periods, think if you're qualcomm, another big chip player, besides broad com and ahaving ao, you're thinking who do i have to partner up with? >> not to mention even though they did use a lot of cash for this deal, cost to capital is going to go up.

>> lots of red around europe. >> we're gridlocked for the equity markets, some important things happening, inflation has returned to the eurozone, that's moved the euro. inflation coming through, 0.3% month on month. the core rate is even stronger. it might be oil prices, maybe it's the success of the european central bank itself. but certainly it's moved the euro, which has gained about 2 cents on the u.s. dollar. currently trading $1.11.15. the bonds around europe are selling off. profit-taking from the highs, which means the yields, that's not strictly true, the yields for spanish, italian, portuguese debt are the highest they've been this year. on the german bund we're approaching the sort of levels we had when we had the bout of illiquidity back in may. the bigger thing to watch for many people is what's happening with greece. it looks like angela merkel is pushing hard for some sort of

deal in the standoff with athens in berlin. and here you see pictures from late last night. emergency midnight summit with the french president appeared to narrow the differentials, with the imf and according to reports, they're spelling out core principles to athens they have to say yes to concede a deal. effectively it's an ultimatum, but they won't use that word with a deadline on the broad principles of friday. with a view to doing some sort of technical deal next week. in athens itself. the greek prime minister has continued his brinkmanship. suggesting the greeks are waiting for a response to their own new proposal they came through with last night. i think it's significant that spanish television is reporting that if the greeks can just give 70% compliance on those core principles, then the eurozone could effectively release seven billion euros of cash that's sitting in a bank recapitalization fund according to reports coming out from madrid. in the meantime there's an ecb

meeting tomorrow which is going to have a focus on greece and these inflation figures. they're quite clear, they're not going to end qe early. but that inevitably becomes the question, back to you. >> lots of movement, we'll see what comes of it. according to walt mossberg, a revamped service from google is better than competitors from apple, amazon, drop box and microsoft. walt's going to join us to explain coming up. [ male announcer ] ours was the first modern airliner, revolutionary by every standard. and that became our passion. to always build something better, airplanes that fly cleaner and farther on less fuel. that redefine comfort and connect the world like never before. after all, you can't turn dreams into airplanes unless your passion for innovation is nonstop. ♪

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i'm sue herera with a cnbc news update. divers pulling three people alive from a capsized cruise ship. the ship with 458 people in china overturned last night during a storm. well over 400 people are still missing, but rescuers do believe some may be alive in air pockets within the ship. paris police starting to evacuate hundreds of migrants from a tent camp near a major train station and tourist area. the migrants mostly from east africa now find themselves in legal limbo with little prospect of asylum and slim job chances. massachusetts secretary of the commonwealth william glavine charging ericsson with a ponzi scheme. the church stating that ericsson believed holy spirit had given

him a system for day trading. and a hearing for dennis hastert has been moved to week from today. he's charged with hiding millions in payments to conceal past miskkconduct. there was no explanation for the change. now back to "squawk alley." thank you, sue, fitbit this morning filing an updated s1, the health tracking company expects to price the for thecoming ipo between $14 and $16 a share. valuing the company at a little over $3 billion. quite a jump from the last valuation of the company privately, fitbit filed to go public just last month. there's no mention in the new filing of a lawsuit that was filed last week by jaw bone. accusing fitbit of poaching its employees and those employees taking trade secrets from

jawbone, we expected at some point to hear from fitbit on this front. but nonetheless, $3 billion valuation would be quite steep for the company. >> coming up, they apparently feel there's still room in the market. despite the apple watch's capability in fitness. >> and android wear and new capabilities that google rolled out last week. >> and good news for morgan stanley, and deutsche bank and watching the fees after a great month for m&a. let's get to the cme group, rick santelli has the santelli exchange. good morning, rick. >> today is one of those days where a lot of traders are walking around on the floor scratching their heads a bit. keep in mind, things happen quickly. some of the market moves, even though they're not huge, look at a two-day chart of tens, we've seen an appreciation, a move up in interest rates. if you open the chart up, we may be challenging the high yield close for the year at 229.

the reason all of this is important is because the world is now cal bralted and the calibration has been set by central bankers, central planners. and we could debate as to whether that's good or bad. their hearts may have been in the right place, now we're all in the same place as markets try to get their bearings on small, subtle changes in fundamentals. and that's what we're talking about here. we've talked many times about how the markets are in such a way configured with regard to who's holding what, think about things like the bubble and interest rates. that a subtle change in any type of fundamentals whether globally or domestically, can have outsized moves in the market because of the players, the liquidity, who is holding low inventories and things like corporates and high yield. take it to the next level. what did we learn overseas? japan is making headway. we learned that there's pricing issues moving to the upside in europe. and they're not big, believe me. but considering that the world is calibrated and compressed,

just consider how much work it's taken and how many years to corral all the paper for the economies, for italy, spain, portugal, for ireland. all of these countries and their fixed income markets to get rates really low. what happened? you get one little subtle whiff in of the fundamentals of inflation, and we see fairly large moves. some of the 10-year securities in some of the southern economies have moved to levels we haven't seen since november. much before the markets tried to price in mario draghi and what the ecb was going to do with quantitative easing. so ha does that mean if you're a trader? it means that everybody is following the same technicals more closely now than ever before. you add in how much of the trade is controlled by computers. it's pretty digital in terms of levels. you get the surges and moves. when the surges happen in an illiquid or less-liquid

marketplace, things happen quickly. should we start to get above a 229. with believe me whether it's the 110 handle in euro versus dollar, the big technical levels, expect there's stop orders on the other side of them. the moves can be large. what isn't large the follow-through, ultimately the fundamentals have to start to have a sustainable change versus history. back to you. >> thank you very much. rick santelli, when we come back, walt mossberg will join us to explain why google's revamped photo service is better than competitors. it sounds like walt likes this one. how do you turn 500 million youtube views into a full-time job? we'll ask that question to a top youtube star later this hour. back in a moment. 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 approved to treat erectile dysfunction so you can be ready anytime the moment is right.

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i am never getting married. we're never having kids. mmm-mmm. we are never moving to the suburbs. we are never having another kid. i'm pregnant. i am never letting go. for all the nevers in life, state farm is there. guides, we'll see new about 15 minutes. >> in his latest review, walt mossberg calls the new improved google photos the best photo back-up and synced cloud service he's ever tested. he joins us with his review. he's the co-executive editor at re/code. good morning, walt. >> good morning, carl. >> some people said that this

product sort of changed the conversation regarding photos and storage, do you agree? >> i do, i think, it's so interesting. they had a good service for years, really. and it was hidden in their really not very widely used social network, google plus. so a lot of people either didn't know about it or didn't want to put their, all their photos into a social network. what they've done here is to take it out of google plus, make it a stand-alone product and build in a whole lot of intelligence. >> and i think that is, and give away storage, a certain kind of storage for free. and i think it adds up to a great service. at least it was in my tests. >> so walt, what does it do for the cloud calculus? more and more these days if you're deciding which cloud photo service to be used. you're making decision about what productivity service to

use, because those go together. does this tip you more toward wanting to use google for everything cloudwise? or are there other contenders in there that are still strong? >> well, you know, actually this particular, think you're right about a lot of things. i think this particular example of your personal photos, probably doesn't tie in as strongly to say google docs. i mean yes, it ties in, but i don't think it's a big driver. you have to have a google account. but hundreds of millions of people have google accounts already for one thing or another. so i'm not sure, i'm not sure about that, carl. at least i don't think it's going to drive. and they're making this cross-platform. this, the app is nearly exactly the same on an iphone as it is on an android phone. on a mac, as it is on a windows

pc. so su don't have to change your ecosystem necessarily to do this. >> you did have a few snafus using the product. some misidentification of photos that you had. but they didn't seem to be deal-breakers. >> no, they weren't because google is doing something nobody else is doing. they're taking -- nobody else i've seen. they're taking your photos and they're kind of algorithmically figuring out whether this is a scene of a skyscraper. this is clists this is boats. this is -- screen shots. this is something else. and i cut them a little slack on trying to do something so ambitious and making a few mistakes. and things like faces, if i had -- 50 pictures of you, kayla from all different ages,

amazingly they -- hypothetically -- >> i'm terrified. >> i don't. but who wouldn't want lovely pictures of you. but i mean the point is, the point is they don't know your name. they don't identify who you are. but they'll say, this is the same person. and that could be when, you know, when you were 15, and now, that you're 22. you know, same thing. >> now walt, once, i mean if you have 1,000, thousands and thousands of photos, it's going to take you a while to upload these, right? >> that's the down side. and it kept stalling. it was very slow. it took a week to do about 30,000. however, i am maybe in a minority here. because i had already backed up all my photos to another service. and the originals did not exist on my phone any more. so the google had to do and others might have to do the same

thing. a two-step process. look at my, the thumbnail or the low-resolution version of my phone and then go to in my case, apple, request the full version. and get it. so it was a two-hop thing. that's what they say accounted for the lengthy time it took to do it. >> at least we don't have to back those photos up to dvd any more. we remember those don't. >> right. >> and flicker also trying to do some of this identification of places, of people within photos, people hitting a few snags with that as well. do you think that's going to be a big deal for people picking a photo service, being able it go through their own photos and be able to tell what exactly is in them? i mean, you've been able to manually do that in i-photo for instance for a long, long time. and but it's a lot of work and most people don't do it. on the other hand, i think if they got to the point of saying

this is a picture of carl, this is a picture of jon. it would be a little creepy, too. you know so i don't know. maybe google is working on that, but they know it will be a little creepy. what they do for now is just say this is the same person and they'll show me all the pictures of you. >> one big-picture question between this and android pay and spotify in music, do collectively some of these rivals now have apple on the run? >> well you know, they each leapfrog each other. apple has its own photo library in the cloud. it does not have some of these sophisticated features. but it does do something that google doesn't do. which is it stores only originals and it doesn't give you very much storage for free. google is giving you a lot of free storage, unlimited free storage.

if you opt for the plan where they're only going to store things up to 16 megapixels. if you want more than that, you have to pay. a different approaches, but of course it puts pressure on apple. one of the big selling points of the iphone is it's a terrific camera and they want you in their ecosystem just as google does. >> quickly before we go, walt, what happens to google plus now that the photo product is decoupled from it? >> i have to say google plus and they'll hate, they'll probably get an email with some large number of people that have signed up for it but i think it's essentially been a failure. they have not really taken on facebook or in any serious way. and with the photos thing out of it and standing alone, i would say it reduces the future prospects of google plus.

but i don't have any information. i don't know what they're going to do with it. >> it wasn't played up to a big degree at i/o, a lot of chatter about that last week. >> walt, thanks as always, good to see you again. >> are you guys going to be out at the wwdc? >> i will be there monday. hope to see you, i'm trying to drag some of my friends, we'll see who can make it see you next week. walt mossberg. thanks to walt as always, cnbc and singularity are co-sponsoring the second annual exponential finance conference, an event examining how rapid technological change is disrupting the entire financial industry. bob pasani is here with mother. >> 600 people crammed into the conrad hotel it sold out last week. mostly personal finance professionals and those in the banking industry. it's about the intersection

between artificial intelligence, machine learning, bitcoin, the blog chain, big data analytics and how all of that is impacting the banking industry and the personal finance industry. we talked with the head of mobile bank, bank mobile who run as big mobile banking app. he talked about, he showed us how easy it was to open an account the. you just need a driver's license, you don't need to fill out any formts. described how they're partnering with car companies and home buying companies. to make the whole buying experience of anything in general, easier. bread king ceo, even more radical, he doesn't even need a banking account there. he talked about how by 2025, there will be no difference between your mobile phone and a bank account. he said they're going to be virtually interchangeable. hardeep walia, i talked with him on personal finance, how the millennials are doing thematic

investing and how it's changing, the intergenerational transfer of money going on and the business opportunity capturing the transfer of money. i'm very excited about the afternoon. because we're going to do a whole session on bitcoin. but more specifically about the block chain. which as you know, is not the same thing. we're going to have blythe mathers here, i'll be doing a session with her. remember blythe, she ran the commodities business at jp morgan, a 27-year career there, she was the cfo of the investment bank, she left jp morgan last year to form digital asset holdings, a company that essentially employs the block chain for financial transactions and advising to the banks, the people she used to work with here's a woman, one of the most powerful people in banking, who left banking to go into a completely different area and is going to tell us a little bit about how that all gets discorrudi disrupted. guys the interesting thing about this, the disrupters, most of the companies are in fact

heavily invested in by the banks themselves and the venture capital firms. so the idea they're going to come in and blow the people apart, the big firms, is a lot of nonsense, not quite true. it's investing in the firms in the companies. >> a lot of bank ceos will say good luck disrupting us without regulation on your side. bob pasani, thanks so much. >> coming up, pinterest is hosting an event today, what big announcements can we expect? more on "squawk alley" in a second. [ male announcer ] legalzoom has helped start over 1 million businesses.

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pinterest holding a major event and josh lipton is live in san francisco with more. >> jon, it's described as the world's bulletin board. but can pinterest make real money off that service? that's a question investors now have for pinterest. where users post pictures of whatever interests them. everything from clothing to cars. now there's no doubt about its popularity. pinterest attracted 76 million unique visitors in april. a jump of 40% year over year. beyond fans, the site has attracted a lot of attention from sandhill road as well. in march pinterest made headlines by raising $300 million. giving it a valuation of $11 billion, more than doubling its

value in less than a year. now comes the hard part. building out an ad model. the company previewed a mock-up of a buy button. bottom line, pinterest would be giving all of those users an easier way to shop. also remember it was a few months ago, pinterest launched an ad offering it calls promoted pins or pins, markers can pay to promote. so maybe today we get more insight about how that ad model is actually performing. its valuation suggests pinterest could be preparing to go public. the company is only just now really beginning to focus on making money from that service. time will tell how successful the efforts are. and whether all of that enthusiasm from vcs is justified. guys, back to you. >> josh, thank you very much. josh lipton out west for us. let's get to dominick chu with a market flash. >> shares of bo jangles trending lower. mediocre reviews, the stock is

above the $19 ipo price. but analysts are cautious, bank of america and goldman sachs initiated coverage at a neutral rating. they said $30 price target. goldman set the bar lower at $23 per share. then there's par clais initiating coverage at an equal weight and set a $27 price targ target. a lot of maybe more tepid analysts ratings coming up for bojangles. she's the fastest to reach more than a million followers on twitter as you probably know, beating out president obama. we'll talk about who it is when "squawk alley" comes back. 25

. wheaties is standing behind kaitlyn jenner, he was the spokesperson for the cereal company back in the day. bruce jenner, wheaties says in a statement has been a respected member of team wheaties and caitlyn jenner, will continue to be. it took four hours for the

former bruce jenner to rack up one million followers following her debut on the cover of van y "vanity fair." reports over the past few years have speculated that kim kardashian paid tweets have ranged $10,000 to $40,000 a tweet. what could it mean for caitlynn, when will twitter get something out of this something more than giving"vanity fair" more publicity. >> if people want to engage that quickly with a new account on the service. i guess the question is exactly how does the money flow work here. somebody stands to make money. >> it does stand to benefit the user who owns the profile more than it would the social

platform. but perhaps that's going to change over the coming months. >> cramer this morning on the 9:00 a.m. continued to say spend less time talking about your existential crisis, whether you're going to be ceo at the end of the year and start honing in on what cramer believes is a good opportunity and that is some level of premium product. you pay $1 for something that where content is restricted. to some degree. people probably would have paid some money, who knows how much to get more information about caitlin jenner yesterday afternoon. >> you see twitter starting to sniff out the possibilities there. this rumor about being interested in flipboard, that strikes me as being pretty similar to periscope in the sense of it's a layer on top of the twitter plumbing. something that people could engage with a little more easily than the jargon of twitter. >> if we're talking about netflix earlier this hour. i imagine twit certificate worried about its churn, should the company change the product substantially. >> netflix and twitter having

trouble getting out of the gate. reaching new levels on the upside in netflix's case, twitter has not been able to bust out of the 30s for the past couple of weeks. with the dow hanging on to tight range, down 18 points, let's get back to headquarters, scott wopner and the half. ♪ ♪ welcome to the halftime show, let's meet the starting lineup. pete najarian is here along with josh brown and jim lebenthal. our game plan looks like this, raw deal, why intel paid too much for altera. short squeeze, josh brown with a list of stocks that could soon pop and why those betting against them could be sorry. we begin with the markets and while stocks are lower today, a lot of focus remains on greece and the euro. auto sales coming in red hot for the month of may. now on pace for one of the best years ever. let's go to phil lebeau