good morning, it is 8:00 a.m. at netflix headquarters in los gatos, california, 11:00 on wall street and "squawk alley" is live. ♪ ♪ ♪

♪ welcome to "squawk alley" for a wednesday, jorng us from cannes lyon in france is jon steinberg, ceo of the "daily mail" north america and next to jon is our own kayla tausche, and with us at post 9, jon fortt on a busy day. markets hanging in there, down about 42 on the dow. a 7 for 1 stock split leading to big gains for shares of netflix. the stock crossing the $700 mark on the news, hitting yet another all-time high going back to the ipo. a few moments ago carl icahn tweeted sold last of our netflix today, believe apple represents the same opportunity we stated netflix offered several years ago. shares of netflix are up 100% so far this year. the only s&p gainer to have done that by a long shot. we're looking, jon fortt, to see how much icahn has made. sold half of his position last year. made $800 million. as of march 31st, owned about

1.5 million shares. at the current price that's another $973 million. >> hard to ignore carl icahn's moves in technology. look at the call on apple. that timing was really good. he said he's still excited about that. netflix, this split right now of course it's a different story. the value of netflix is in what they open to do in the future. do you think that it's the future of tv? apple of course is the present when it comes to smartphones and computing. and it's an interesting moment to look at netflix, whether you get in, whether you get out. how much do you believe that they're going to be transformed from here? >> jon steinberg, can you, can i say you've been critical of netflix's valuation? and is this justification for your point of view? >> i don't know why they would do a stock split. when apple did their stock split, it was very cheap. now the stock expensive. i don't know why they would want

to appeal to a retail base. it just strikes me as something they could only create more overvaluation in the stock. maybe they think by splitting it seven times people will forget how expensive it is. >> there's a sense, kayla, that you dilute the share base, you're less beholden to the hedge funds that we know drive some ceos crazy. >> and that's certainly the case for a lot of these companies. but also when you split the stock at least in the most recent years, the stocks that have done this have actually performed very well. think about what visa has done and the apple is a unique situation. vip shop as well. all of those stocks have been up since they split. celgene is the lone company that does not fit that pattern. you tend to think it's a board of directors making that decision. if the board makes the decision to split the stock what does the board know about what's coming to the company that leads them to believe that that is the right move to take? conventional wisdom would tell if you the board of directors does this, they would view the stock as potentially going up.

if it were not to split in the other case, too. >> yeah. what is the, just, we're going to talk a lot about cannes lyon and what you two are seeing out there. is netflix talked about in circles broadly? is it the top point of discussion? does it revolve around something else? >> when it comes to a content standpoint, the big conversation amongst publishers is pressure from facebook and google and it's about selling content. when i talk to all of my colleagues here, whether, it's how to develop an additional revenue stream beyond advertising. so many of us are talking about going into television. licensing our video to other wireless plaid forms. so to the extent that netflix pioneered selling your content type thing, it's very much on everybody's lips. >> move on facebook. shares hitting a new all-time high this morning. i saw 88 and change. company showed advertisers its vision for mobile ads at cannes lyon. a crucial part of their business, with 94% of the

company's revenue coming from advertising. we talked to, you just talked to martin sorrel. he volunteered the fact that he was asked, would he rather invest in google or in facebook. and as he said, the momentum seems to be with facebook right now. and he also said some pretty optimistic comments about snapchat as well. snapchat is a private company. but you know, he's not one to mince words about his business being up-ended by some of these companies like google, like facebook. but carl, when you think about new products that have been unveiled this week it really does appear that facebook has the lead or at least is the most innovative and trying really to predict where the industry is going to go. old wayne gretzky adage, skate to where the puck is going to be. perhaps the new immersive technology won't move the revenue needle, but it's giving the advertisers something new to work with i know jon steinberg you looked at this very closely, what facebook is doing.

>> i don't get what they did yesterday. it was a concept car. chris cox got up and showed a prototype of a full-screen magazine type ad for michael kors that they may or may not launch. we're part a anywheres with them, we're more deeply partnered with snapchat at this point. my view is snapchat is pulled ahead on vertical full-screen video. i think the fact that the stock was up 3% yesterday on a concept car is a little bizarre to me. you mentioned to me there was a report out saying -- yeah? >> jon, eye been talking, this is jon fortt. we've been talking to for months and i've been saying it's occurred to me that maybe facebook is just in a class by itself when it comes to social media and way they've built their business. for a while everybody was excited about twitter and what they were doing and certainly there's something to that. now snapchat is the flavor of the quarter. and i know that as you just said, they're deeply invested with them. isn't this still a facebook story? yes, snapchat is interesting,

100 million daily active users. but facebook is a juggernaut, isn't it? >> jon, i agree you know i agree. i'm a complete bull on facebook. they're in a class amongst themselves. when advertisers consider budgets right now they think about their google budget for direct spos, they think about their facebook budget. it doesn't compare to anything else. i'm saying the stock being up 3% on a product they may launch. which is a movie around a michael kors watch is a little bizarre to me. >> kayla, you talked about facebook's advertising with a senior executive yesterday. wauth to set this up? >> yeah, carolyn everson is one of the prominent executives at facebook. she runs the advertising business. reports to a couple of others in that business. but she is really the name to watch here in cannes. she was not only talking about that immersive technology. but she was really talking about this bigger bet that facebook is making. looming in the background of the discussions here. that's what the company is doing in mobile video.

and she among other facebook executives really believe that for facebook, lightning can strike twice. here's what she said. >> the biggest buzzword it seems here at cannes and even leading up to this is video. and especially what facebook is doing with instant playing video or auto play video. what's the strategy? you have a product. but what's the strategy. >> we think mobile video is actually going to be even more way more significant than even the first mobile revolution was for facebook. we're seeing such increased adoption of consumers spending time looking at videos, four billion view views a day, which is up substantially, triple-digits in our markets around the world. for marketers how they're thinking about video is in a few different ways. one, shorter form. six to ten seconds works really well in a mobile environment. we're also seeing marketers test with sound off. not every time you pick up your mobile device is the sound on. so how do you think about engaging a consumer in a story without necessarily using sound?

and then we like to talk about the three-second audition. what happens in those first few seconds to actually enroll the consumer into wanting to spend time with your video? and so what we're seeing in cannes this week is the creative community get really excited about a platform that can reach over a billion people on their mobile device so huge scale. but be able to do very targeted and personalized and relevant marketing to them in a form that they love. >> how do we know video isn't trial and error? three to four years ago people said it's all about the fan page, it's all about the likes, no, it's all about the native content. the info graphics that live in the newsfeed that were predating instant articles. how do you know that this is the real thing? >> i think consumers have always loved video in terms of a format for story telling. and now we can bring video into the mobile environment which again is the most personal device consumers have ever had. they're spending more time on mobile than they are on any other medium. video is a natural way to tell

tel stories for brands and to deliver a really engaging experience for consumers. there's no question that our platforms continue to evolve. but they evolve because they're being driven by consumer behavior. not because we're trying to change any behavior. the consumer has shown us that they're really interested in visual communication. we see that exploding around the globe. it started with the emoticons and emojis. and messenger, we were able to add actual visual communication to that. instagram with over 300 million people, it's because visual is actually a global language. it doesn't require text to communicate a feeling, emotion or where you're at in a place. and so the rise of visual communication is a phenomenon that's happening all around the globe. and we think video is a very natural way to tell a story. >> everson believes they're in the very early innings. but because she mentioned messenger, i asked her about the deutsche bank note that drove the stock to an all-time high

yesterday. the deutsche bank note projecting that messenger and whatsapp could potentially be an $8 billion to $10 billion business. i asked her if that was the ballpark. she said they're not talking about projecting what the revenue could be. they're in the early stages there of monetizing just messenger. two trials with everlane and zhu lily to try out retail. but there's a lot of cylinders for google to fire on and mobile view is a big bit right now. >> $89 a share. stunning growth so far this year. jon steinberg you mentioned the "daily mail" partnering with snapchat and wpp on something called truffle pig. we mentioned the interview with martin sorrel last hour. what? ? what's your take on this? >> truffle pig is an agency we created, it's a digital creative agency. that thinks about the platform where the contents will live. it makes the media the message. it says that if the content is going to live on the "daily

mail" or "huffington post" or snapchat or twitter that has to be the starting point for creative ideas and strategies. we announced it yesterday. we've invested single-digit millions in it. no single partner in control of it. we're excited to push the industry forward. i think it will do for advertising what google did with the nexus line of hardware for android. we want to create a shining light to move things forward to create the agency creative process that we feel we need as a publisher. i'm psyched about it. it's an homage to david ogilvy who says we must look for knowledge like pigs look for truffle. that's why we got truffle pig. >> we were talking about it on twitter yesterday, i say nut squirrel would have gotten my vote. i'm wondering is there a model for this in previous online advertising? did someone come up with an agency like this to figure out what to do when the internet and web were young? >> when television advertising started up, the television networks actually created a lot of the creative for advertising

agencies. it was an homage to that type of strategy. we've seen a holding company come out and say we've spelled spend $100 million with new platform apps. that seemed like money but not a lot of shoe leather and hustle. we have modest expectations. i would like to do a reasonable amount of money to show prototype for where we think it could go and blow did out over the next few years. i think it will benefit our core business and snapchat's core business to pioneer more vertical video and i think it will help wpp media agencies to help spend more efficient. >> very nice, jon. safe travels home. we'll talk to you soon, jon steinberg of cannes lyon with kayla tausche. we'll check back in with them in a little while. markets here in a narrow range to the red side. dow is down about 57 points. s&p down about four and a third. box says it has struck a partnership with ibm to develop existing and new cloud-based

services. ibm trading slightly down. shares of citi and goldman slipping after getting downgraded to hold at deutsche. the firm pointing to healthy rally force both and a lack of short-term stock drivers. google adds itself to the list of companies jumping into the streaming music game. a toop google executive will tell us what sets the new google apart. and jack ma was not takiddi when talking about his love for forrest gump. grow up to be cowboys ♪es ♪ don't let'em pick guitars and drive them old trucks ♪ boys? ♪ mamas, don't let your babies...♪ stop less. go more.

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> a major milestone for tesla. model s owners have driven a total of one billion miles or more than 2,000 round trips to the moon. the company says electric cars have prevented nearly 600,000 tons of carbon dioxide from being released into the atmosphere. tesla shares moving a little lower this morning. but up nicely over the month, the year. pretty much any other time period would you want to look at. joining us at post 9 one of the tesla's earliest investors, ira

arenprice who just closed a new $400 million fund to promote environmentally and socially responsible start-ups. ira, thanks for joining us. you probably can't say but you and others in this partnership made a lot of money investing in elon musk. is he investing with you in this spot? >> we can't talk about who our investors are. other than to say elon is a huge supporter of ours. the guy is a hugely quintessential partner in our time. >> $400 million is a huge fund. i think dbl's first fund was $75 million. $150 million. and then intel has $125 million that they're investing in women and underrepresented minority-led firms. why is now the time when you can make money doing good, if people didn't think of this before? great question, jon. dbl is a pioneer leading the notion of impact investing, optimizing for both the financial return, the first

bottom line, as well as the social return whether it be social, environmental, economic benefits. which we call the second bottom line. it's the notion of no sacrifice. it's being driven by the entrepreneurs. the best entrepreneurs of our time wanted no sacrifice view of the world. they want to build the biggest companies they can build, but they also want to change the world in the process. >> that second part of the qualification what determine wls a company makes it through the filter or not? where's the line? >> number one of course our environmental focus, all of our energy companies are trying to change the 21st century energy economy. we've got a focus on developing our companies in areas which need economic development. we've been fortunate to back companies that have been a huge engine of job creation and then you reference the intel fund. another aspect for us is diversity. we are fortunate that is being led by pioneers in impact investing, nancy fund and cynthia ringo.

we're a firm that embraces diversity. half of our funds' new investments are women-led entrepreneurs. for entrepreneurs, that want to embrace that kind of diversity and both not just the sea level, but entry-level ranks, we've become a great partner to. >> if can you build the galaxy's biggest battery factory and operate it efficiently, then tesla's got a huge future. you look at things like this all the time as an investor and determine, could it work, couldn't it work? is it worth investing in? how risky is this giga factory and what chances do you give it? >> the giga factory is just the next step in fulfilling this mission of sustainable energy transport and sustainable energy generation. the company has been really a consummate example of what innovation can achieve. the model s, a billion mifs driven. it wasn't just half a million co2 tons that the company avoided, also avoided 175

million dollars of what otherwise would have been gasoline purchase. giga factory fulfills the mission of enabling the next-generation cost down for the model 3 it's the battery capacity for the tesla energy initiative we have going. and the company is approaching it like any of its products. it really is a product in and of itself. not just a set of tools and manufacturing. >> do you think of it as a car company? 0-is it a power storage and distribution utility play in your head? >> yes, yes and yes. what i really think tess la is not just an energy company, not just an automobile company or a storage company, it's an innovation company. what the company has done -- >> what is that really? >> it means, they've got to focus, right? we don't want a phone from tesla. >> clearly, what it's done show they're able to innovate in areas people historically didn't innovate in. we transformed a 100-year-old automobile industry in the relative blink of an eye. the storage, the cost per

kilowatt hour has improved to the point where we're able to fulfill the electric vehicle as well as energy storage the vehicle has. what i think is most important is it doesn't rest on the laurels of yesterday to create what the innovation of tomorrow. >> well ira ehrenpreis of dbl investments, a lot of interesting investments you're making, not small ball, you're playing the long ball, we respect that. >> we're excited. as we've been talking, icahn tweeting a little more, giving his thoughts on stocks broad broudly. a couple of tweets go like this i believe the market is extremely overheated. especially high-yield bonds. also if more respected investors had warned about the market in '07, we might have avoided the crisis in '08. coming up at 12:30 p.m. eastern, icahn will join scott wapner on the "halftime report" and flesh out those tweets and also the one earlier in which he sass he has closed out his netflix

position. >> you have to wonder if those two thoughts are related at all, i'm sure. scotty will ask. up next, not a happy anniversary for yahoo's ceo, marissa mayer. ♪ building aircraft, the likes of which the world has never seen. this is what we do. ♪ that's the value of performance. northrop grumman.

yahoo's ceo marissa mayer to address investors for the company's annual shareholder meeting. shareholders can expect the talk to focus on ads in a continued push in the mobile, video and social spaces. in past years, mayer has attended the cannes advertising conference instead, last year there was a bit of controversy surrounding an incident where sheover slept and missed a dinner with advertisers and i feel bad even bringing it up. but yahoo has tried to shift into focusing on mobile. mavens, as they like to say

mobile video and a few other things that i always forget. that they wrap into that. the talk at khan as we were just discussing with john steinberg and kayla, is around snap chat. it's around facebook. not so much around yahoo. you wonder if they can in this talk, kind of bring people into the fold. thinking about them as a pine anywhere these forms of advertising that are going to make sense on phones. >> it's been a long game trying to reinvigorate that brand. and get the core business fired up again. after the long leash of alibaba begins to run thin. we'll keep our eye on that it is up year on year. currently just above 40, it's been progress. maybe not a solution. if you're looking you can find something to complain about with yahoo. let's count you down to the close in uk and across continental europe. stocks mostly lower. optimism fading over a potential greek debt deal. some of the creditors rejecting greece's latest proposals on tax hikes and pension reform. with the country's 1.6 billion

euro repayment due to the imf in about six days, the greek prime minister has criticized the stance of certain creditors, he's in brussels to meet with ecb imf and eu firms ahead of tonight's crucial meeting of eurozone finance ministers who say they are hoping to improve a final agreement with greece. before eu leaders kick off the emergency summit meeting tomorrow. so stay alert for any tape bombs over the next 24 hours. when we come back, netflix shares up over 1% this morning getting awfully close to $700 a share. announcing the split. icahn tweeting about his position in the company. more on that in just a moment. it's one of the most amazing things we build and it doesn't even fly. we build it in classrooms and exhibit halls, mentoring tomorrow's innovators. we build it raising roofs, preserving habitats

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good morning, everyone, i'm sue herera, with your cnbc news update. the senate is preparing to hand president obama a major victory with final passage of fast-track authority to negotiate trade deals. senate majority leader mitch mcconnell opening the debate. the vote is expected later today. two of the victims of last week's deadly balcony collapse have been buried in ireland. a funeral mass was held yesterday at two churches in dublin. five irish students were among the six killed when the balcony snapped off of a fourth-floor apartment building in berkeley, california. four men raided a jewelry store in northern england about

two weeks ago, making off with thousands of dollars of goods caught on camera. the masked men broke open the shop's door before grabbing $300,000 worth of watches. despite the video the robbers are still at large. at a delegation of catholic clerics and officials from philadelphia met with pope francis in in st. peter's square this morning. the pope will visit the city of brotherly love coming up in september. and that's your cnbc update this hour, let's get back to "squawk alley." a 7 for 1 stock split sleeding to big gains for shares of netflix. the stock crossing on that $700 mark. icahn tweeted, sold the last of our netflix today. believe apple currently represents the same opportunity we saw in netflix years ago.

for more joining us on the phone is david miller an analyst with topeka capital markets. david good morning to you. >> thanks for having me, good morning. >> not everybody got in at 60 the way carl did. is this a cautionary note? >> well first of all with carl, i mean just a great trade by carl. i think it proves that that any time that mr. icahn gets into a stock it's not necessarily for activist flavor. i don't recall there was any activist position that he ever took in netflix. or why would he? i believe if memory serves, he got in around 82, 85, somewhere in there, somewhere within that range, a great trade by carl all the way around. he's to be congratulated. >> the knock on him is not that he knew it was going to be a great company or great investment. he knew that people were getting hot on it and maybe he would take it for a ride. maybe longer than he expected. is that fair?

>> i think it's generally fair. folks got hot on the stock because it deserves to be hot. it's doubled this year because the runway is still very long in terms of overall potential subscribership. these guys are still on the front edge of the s curve, both in the states and you know, all around the world with potential penetration and subscriberor ship. as long as that's the case, the stock should continue to work higher. >> the valuation, david, is it price for perfection? should they have hiccup in subscriber growth or the profitability that they intend to pass along, could they hit a dip? >> su can't use multiples. to value this thing on linear multiples doesn't really make a lot of sense. you have to use a discounted cash flow analysis using the capital asset pricing model. we are disdid counting future free cash flow at around 10.2% which seems fair for an established company like

netflix. unlevered cash flow back-end weighted around 2021, 22, 23, 24, we think there's going to be a free cash flow explosion during those years. >> let's talk about the split. a lot of cynicism around the street about what it means. can they effectively dilute the share base. and diminish the power of some of the hedge funds or the shorts. is that really going to happen. >> i don't think so. i think the split is largely cosmetic. i think they're trying to make the price of the stock as sort of let's call it retail friendly. as much as possible. at the end of the day, the share count goes up by a factor of seven. the price goes down by a factor of seven. all of the variables being equal. the enterprise of the company stays the same. so it's largely cosmetic in our view. netflix is doing it clearly. it's an attempt to make it a little bit more retail friendly. >> apple and netflix. two brands that have wide

consumer awareness. could you argue consumer approval. do you believe mom and pop will chase these names now that they're more affordable so to speak? >> i can't really comment on what the retail investor is going to do. you know day to day. >> we think the stock will continue to work higher again as they remain on the front edge of the s-curve. just as an example, i believe the overall broadband potential penetration, just the addressable market just in europe including the uk, let's call it the pan-euro addressable market is 270 million households, they're at 20.8 million total international households. the runway is teased to be huge. as long as they're on the front edge, the stock is going to work higher. and the duration of some of these forecasts, does that not

give you pause. when we're talking about penetration householding into 2020, 2025, do you, does that ever seem ridiculous to you? >> not really. there's always going to be -- not at all. there's always going to be some fluctuation in price targets and addressable markets, and the pace of growth. that's what the stock market is, right? i mean the stock market is a series of inefficiencies every single day and it's our, it's our job as analysts to take advantage of those inefficiencies. >> well inefficiencies been solved to large degree over the past few years. david, thanks so much, gooed to talk to you. >> my pleasure, call me any time. >> david miller over at topeka. when we come back alibaba making its first investment in a major hollywood movie. details on that when "squawk alley" continues. ♪ mamas, don't let your babies grow up to be cowboys ♪

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hurry in and you can get 0% apr plus a one-thousand dollar volkswagen credit bonus on 2015 passat tdi clean diesel models. coming up, carl icahn is live on why he sold out of netflix and what it says about his overall view of the markets. plus financials may be the month's top-performing sector. one analyst ranging on two big banks' parade today. it's our call of the day and the investor they call the oracle of tampa sheer with big-time returns and a brand new stock pick that might surprise you. carl, we'll see you in 20. >> let's get to the cme group and check in with rick santelli and at the santelli exchange.

>> i have a special guest, matthew shownfield wrote an interesting piece, the income link between income inequality and slow growth. matthew, from reading your article, it seems as though if growth is the missing piece, whether it's united states, the eurozone, japan and indeed maybe globally in a global economy. what aspect is missing that we're not getting the kind of growth that we normally get post crisis, post recession? >> we need to incentivize innovation and job creation, jobs don't just come from the sky, they come from people who want to start businesses, are incentivized to do so we need to have a regulatory environment that facilitates that. we need to have a tax incentive structure that incentivizes that. >> here's the issue i see. the organization for economic cooperation and development, oecd. have put out many reports saying if you want to raise the lower and the middle class to higher levels, basically what you need

to do is take from taxpayer a and give to taxpayer b. what do statistics tell us about that dynamic? >> they tell us that actually you want to raise the standard of living for folks that are kind of in the lower purcells of income, you have to create jobs and you have to spur an economy which is not actually done by -- >> when i look at gdp in this country, it was just revised to still slightly negative in the second quarter we're about to finish. is probably going to be in the neighborhood of 2% according to the atlanta fed, in order to get growth, you need to understand what makes it deficient. greece makes austerity a bad word,really a bad word? >> greece were the ideal. they redistributed more income than any other state. they had more government spending more government spending on social program and improved inequality the most from 2000-2012. i think it's more just fiscal responsibility of that in terms of not being a dirty word.

it's not necessarily by perhaps raising the tax end. it might just be by actually incentivizing folks by spending a little bit more in private economy, less in the actual official sector. >> as i see zero interest rates in this country now, going on seven years, it's certainly seems there will be many unintended consequences, we don't know exactly what they are, but in you were king for a day and interest rates were where they are right now, virtually zero and you saw the type of growth rates we see, what are some easy fixes here? >> i think that -- >> besides trying to create, we understand we need to create jobs, is it more than that? we collected record tax revenue, is that a good thing?gone any ye increasing, it means less private sector investments. in a certain way it's probably the not the best thing. we've cut our deficit to $500 billion, we were looking at $1

trillion plus, that's a good thing. if i were king for a day i would refinance our debt at 2.5% out to ten years and raise the actual duration of our maturity schedule. >> that makes perfect sense to me. the final question, when we look at greece, what type of outcome to you see? and will they get away with continually overproviding and undercharging? >> i think a lot of it has to do with the left flank of tsipras, i think the eu will be fine with that if he can make an agreement with them and kick the can down the road. thanks, rick. alibaba making its first step down the red carpet. partnering with paramount pictures for the latest "mission: impossible" film. the movie will hit theaters on july 31st. and alibaba's film arm will partner with paramount for online ticketing, promotion and act as the official partner for the film's china release. alibaba is also expected to launch its own streaming service sometime this year.

and up next, google unveiling its answer to spotify and the yet-to-be released apple music. apple's head of agency development, torrence boone will be with us next. automotive innovation starts... right here. with a control pad that can read your handwriting, a wide-screen multimedia center, and a head-up display for enhanced driver focus. all inside a redesigned cabin of unrivaled style and comfort. the 2015 c-class. at the very touchpoint of performance and innovation.

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google among the names with

a heavy presence at cannes lions this year. kayla sat down with the vice president of agency operations development, torrence boone. >> so much of the advertising dollars are going into the digital space. for google that can range from a free version of its new streaming service for various new products that google has in its pipeline. as well as youtube. which turns 10 this year and is the central focus of google's google beach. we sat down with torrence boone today and talked about all of those things and here's what he had to say. >> advertisers and agencies, the brands that agencies work with are clear that they have to be on the youtube platform. that being in the u.s. is an example you tube, youtube reach is among 18-34-year-olds higher than any single cable network. and that's also on mobile as well. so in terms of reach, in terms of being where consumers are, i

think brands recognize that youtube is the way to go. >> do you fear that facebook or snap chat could replicate that type of product? >> it's always great to have other companies innovating as it relates to online video. because online video still only represents a small percentage of its overall amount of dollars that are spent. it's a fraction of still what's spent on television. but dial five years forward, digital spend will be bigger than tv spend. so we see the kind of innovation that's happening as something that will raise all boats. we have a really big head start. given the viewership. we have the population of the u.s. and brazil combined coming to youtube on a daily basis. we have over a billion users per month. so there's tons of momentum that we have that we feel confident about. >> the rising tide may lift all

boats, but the facebook question is a fresh one in the minds of people here at cannes. research firm says that facebook's video views are at two-thirds of youtube's views, and of much newer product as we heard from carolyn everson earlier. >> torrence boone's cycle starts at ces where they ink most of their agreement. this event, as fun as it may seem, guys, is very integral for all of the companies here to continue and build those relationships. that will do it for us from cannes, carl and jon for now i'll send it back to you. you don't look like you're having any fun at all. i'm sure you'll enjoy getting back here to new york. meanwhile, yahoo shareholder meet something under way. josh lipton sat one market with headlines, josh? >> well jon, marissa mayer speaking at yahoo's annual shareholder meeting right now.

bringing you some headlines. she notes that the mozilla search partnership is profitable. she says that yahoo is hitting five-year highs in search volume. shes also says that yahoo will be the default search provider for java. of course that stock under a lot of pressure this year. you can just look to that last earnings report to see why display revenue ex-tack was down 7%, search revenue was down 3%. we would expect marissa mayer to field a lot of questions from shareholders about that. i'm going to hop back in and listen to the questions and bring you headlines as they come. back to you. >> against the backdrop of a tepid advertising environment. we'll hear more about that, too. when we come back, auto sales are near an all-time high. but that isn't stopping ford from jumping into the car-sharing business. also a downgrade to the company. we'll explain in a moment. or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph,

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in case you missed it, mark benioff tweeting about his trip to the vatican and this photo of him meeting the pope. which apparently kareem abdul-jabbar took, just kidding there. quote wonderful to meet pontiff at the vatican. benioff is a tall guy and somebody reached up high to take

the photo. >> that's on a selfie stick of some kind. ford is jumping into the car sharing business. also upgraded at goldman, our phil lebeau is live with more. >> this is the first major automaker to say let's see how much business we can generate not only for our company, but through the finance wing through a car-sharing program. here's how the ford car-share program will work. it will be offered in six u.s. cities three in the bay area along with portland, chicago and washington, d.c. as well as in london. ford motor credit customers will be eligible for them. it will be operated by the start-up firm get-around, which will be running the app for people who want to make their ford vehicle available for others to rent by the hour or a couple of hours. and owners will be decided the rate they are going to be charging for those renting their car. you might be saying how many people are interested in car

sharing these days? it is huge. and it's going to get even bigger. according to alex partners, 4.9 million people worldwide were members in car-sharing programs last year, that's expected to balloon to 26 million by 2020. ford's ceo says this is one more way to reach out to customers. >> it's all around how we're driving the company these days to challenge custom and question tradition. use technology to make customers' experiences better. in this place we're seeing a lot of folks that don't want to own a vehicle and we as a company want to make sure that we're listening to customers and see if we can help in that regard. >> take a look at shares of ford over the last year. it's done 8%, the upgrade from goldman is because of the expectation we should see stronger sales in the second half of this year. guys, we'll see how much this actually generate buzz or even business for ford. just 14,000 initially with the

car share program. but it is interesting to see one of the major automakers say let's try this. back to you. >> some of the stats you give are truly impressive, our phil lebeau in detroit after having covered the boeing news last night. busy man. nasdaq is pulling back slightly after touching yet another all-time high this morning. our bertha couples has more on that. >> we've think more or less along the flat line today. going along with the rest of the market. the thing that's really been holding us up has been the big caps. up until just right now, timing is everything. the nasdaq 100 has been fractionally higher today. and it's really all about the big-cap tech names. in particular, apple, apple very strong today. and rising to highs of the session on that tweet from carl icahn who is going to be on in the next hour on the "halftime report," talking about both netflix and at 7 for 1 split and his selling those shares and what he believes are stronger

prospects ahead for apple. you have applied materials today, higher upgrade over at goldman which adds it to its conviction buy list as well. seeing strength in the gaming stocks, jeffreys getting positive on the electronic arts, in new high along with netflix and some of the others. grand theft auto and they think the pipeline at ea is as strong as they have seen it. ea up about 45% year to date. take 2 also benefitting from that. we have anthem today getting initiated with an outperform over at rbc saying if they can complete that deal for cigna, that is likely to be very positive. for the company going forward. of course, we haven't heard any updates on that today overall the managed care stocks are a bit under pressure. we've got lots of big news. still pending, we could get a ruling from the supreme court as

early as tomorrow, on those obamacare subsidies, they will be issuing rulings on friday and monday and we are on watch to see whether it's ill or no deal. and who is in the deal in this space. back to you guys. >> thank you so much, bertha kooms over as the nasdaq. fair amount of positive analyst comments, she mentioned the goldman upgrade of ford. housing continues to work today. linar, the top gainer on the s&p, a 5% move as they beat by 15 cents, new orders up 18%, revenue ahead. housing looks to be healthy. but it's the cloud regarding greece, art cashin with some moments saying not only are they going to push it into the late part of the week, but possibly into the weekend. and what kind of drama could that create. >> earnings coming up so yes, a headline on greece swings the

market it seems this week. >> there is more information coming. and my eye is on box, up nearly 7% on the ibm news. >> obviously icahn coming up with wopner, let's get over to wopner and the half. thanks so much. welcome to the "halftime report." let's meet the starting lineup. steve weiss is here along with joe terranova and jon and pete najarian. down at the new york stock exchange, is steve grasso, director of institutional sales with stewart frankel. our game plan loo like this. splitsville -- why carl icahn bailed on netflix and what it says about his overall view of the market. billionaire investor is live and exclusive with us today. the oracle of tampa, jay bowens returns have been in the top 1% in the past decade, he's here a