and as a result, the shares are higher because it has said that it does have this amount in its reserve. simon and sara, back to you. >> courtney, thanks very much. she was mentioning the shares up 20% over the last year. financials have been one of the star performers lately. >> let's send it over to "squawk alley" this tuesday morning. it's 11:00 a.m. inn on wall street and "squawk alley" is live. ♪ ♪ welcome to "squawk alley"

for a tuesday, joining us is jon fortt live at lyft headquarters in san francisco. jon, gosh to you. he'll interview lyft's ceo in a moment. the dow is up, it draws our attention to ibm. stocks having a tough day, dragging the down down by about 60 points by it is and 13 consecutive quarters of lower revenue. jon, i know you talked to ibm at the top of the 10. but your thoughts on the quarter last night and the reaction today? >> well i think there are positives and negatives to take from this quarter. the negatives have to do with international exposure and currency and overall some aspects of enterprise demand. but service signings did look good for ibm and the hardware business was stronger than expected. so you got to be careful reading the negatives in ibm through to other enterprise players. there are positives, too.

>> cramer this morning called it an engineered decline. they're doing things that warren buffett wants them to do long-term. investing in where the puck is going even as he lost $700 million on the stock today. >> increasingly it becomes a revenue story when you have a company that's buying back this much stock and espn that outperforms and revenues are declining. 13 quarters in a row. i know you posted a tweet, the comparison of hp's revenues to ibm's revenues and a stark divergence in the chart. it's a 30-year chart that people are pushing around. >> apple reporting earnings after the bell tonight and investors are going to pay close attention to sales of the iphone and the watch. today the journal reporting that apple has hired an exec from fiat chrysler, further fueling rumors about an apple car. here to tell what to expect later today is angela zeno, analyst at iq.

70% is phone. your estimate for phones for the quarter? >> we're looking at 52 million for quarter. >> wow, is that, that's got to be above consensus i'm guessing, yes? >> i with say the street slooking in the high 40 million range, overall the momentum continues for the larger screen phones. the iphone 6 and 6-plus. overall i think what you're seeing sheer ongoing strength out of china. where the company has gone from single digit market share numbers last year to now you know market share numbers closer to the 15%, which really kind of you know where they are, relative on a global basis. >> why do you think that apple won't succomb to this momentum falloff we saw in chine toward the end of the quarter? >>. >> i think when you look at what apple has done here recently, they push all the right buttons when it comes to china. increasing their retail footprint. coming out with the largest

screen phones, which the china consumers love. you know coming out with a gold device. you know, several, two three years ago. so overall they're pushing the right buttons out of china. if you're looking at the first quarter this year back in march, smartphone shipments out in china declined. whereas, we saw north of 60% growth out of apple. we expect similar type of results for the june quarter. >> angelo, everyone loves to talk about apple and new categories, they want to draw parallels to the invention of the home. first quarter the iphone was out. they sell 1.1 million. now you're looking for 52 million. does it make sense to make those kintds of translations to the watch? no, not necessarily. when it comes to the wide share, i mean we were very optimistic on the watch. not as optimistic as the street was off the get-go our outlook was for about 10 million in

shipments here in the calendar year 2015. i think the street mostly was looking at about 15-20 million. we think the numbers are going to have to come down as you start exiting the year. overall i think the june quarter as far as the watch goes, was very good. we're looking probably along the lines of four to five million in watch sales. but that has a lot to do with the early adopters getting in and you know, making those numbers look good. >> angelo, what are the wild cards out there? i mean we know on the yop side, the wild card is usually the iphone, on the down side it is the guidance on gross margins or revenue. if that falls, or is apple just conservative, does it have to do with commentary around services like apple music or even around the ipad number? is is there anything that you see that could spook investors

to the downside? >> overall expectations are low when it comes to apple's other devices, that being the ipad, even the watch here. i would say when it comes to you know apple here in the coming quarters, or at least on the quarter here, i think the expectation is what does the guidance look like for the iphone in the second quarter, does it start to accelerate, you're nearing the end of easy comps as you go into december. soy think really it's what do the numbers look like on the shipment numbers going into the september quarter and to your point, the gross margins are always extremely important. our believe is they're going to still remain very attractive given the attractive prices you're seeing from the 6 and the 6-s. >> on the stock, i mean for all the reputation that it has for underperforming post earnings, that 200-day, for a couple of years now has been a pretty firm floor. would you agree that continues?

>> yeah. i mean it remains in a very tight range here. i can't see the stock exploding to the upside in the near term, given the uncertainty we're seeing in the second quarter. that being said, low valuation, high net cash of the company north of $25, you see limited down side at least here in the interim. >> we'll see if it goes on sail or not. angelo, thank you so much. joining us from s&p capital, iq. a company whose market cap is now about $100 billion higher than ibm's is facebook. flirting with the $100 mark. it has dipped into negative territory today but is putting its market cap near $275 billion. that's bigger than je jgeneral electric, bigger than jp morgan. should facebook. jason calacanis is an angel

investor. looking at the facebook chart is staggering to see what it's done since the months following its ipo. was this momentum inevitable, given that facebook basically created its own advertising market? >> yeah. facebook is the best-run company in silicon valley right now. they're the most focused on the now. so if you look at google, they're very focused on self-driving cars and putting balloons in the sky to get us internet. moon shot type stuff what facebook has done extraordinary is their acquisitions in mobile and steering the ship away from the desk top where they were complete experts and going to mobile and running the table on everybody. if you look at whatsapp, instagram, the groups product, i think they're destined to be billion-dollar franchises, we've never seen a company like this have $4 billion or four billion user products.

it's extremely well executed. their m&a team is phenomenal. i mean to get whatsapp and to get instagram out from google. it really showed google was asleep at the wheel in terms of acquisitions for a little while there. and all of this mobile advertising, people were really questioning if it would actually come to fruition. what facebook did extremely well and it got sheryl sandberg's fingerprints all over it. is built an add network that one-ups google's. what you have on facebook is the ability to not only define people by their demographics, females in florida this age, with kids, without kids. can you make secular audiences. similar audiences is a revolution in advertising that most people don't know b. you can give them 100,000 email addresses and they will give you 100,000 people that are most similar to the people with those email addresses. if you've discovered a market for your product, you give that

data to facebook and -- >> jason -- i would disagree that facebook and google are all that different, we were looking at a chart of the two stocks, they're basically neck and neck with each other and facebook is focused on moon shots, they're doing virtual reality and are building drones to put internet in the sky. you talk about execution and talk about instagram. i'm wondering if of a $275 billion market cap what of that do you think sin sta gram at this point? >> well it's 300 million people on instagram and instagram is growing, it's under-monetized, we'll have to see how much they monetize it and the video aspect is nascent as well. i think there's a lot of room for growth on instagram. one important point is that google has made a huge franchise around innovation with google x. facebook bought a couple of things here and there, what they want to be focused on is bidding out the ad network. goog the got bored with that

existing business and they're in the process of wringing as much value of it as possible. if you do a search for used iphone on google. i did one recently, 11 of the top 12 results were paid. they were ads, you see a little trickery from google in terms of putting the ad logo all the way to the top right making it very tiny. about 30% or 40% are people. don't know they're clicking on ads on google. and the ftc wrote them a letter and said to clean it up before they bring action. face bob has so many earses and so much growth, they've just begun to ring out the value. they have so much room to extract value from the user base. the social data for advertisers will turn out to be a competitive advantage against goog. which leads me to be there's absolutely a very significant chance that google buys twit they are year. >> we had that debate a lot. back to facebook quickly.

the question we come back to, look at the upgrades today. they make the argument that the ad load can improve. we're heading into a political cycle. all of that. how much leash do they have on the user experience? do i want to look at my news feed? and engage with ads, if those ads are too intrusive? too numerous? >> post-role adds and targeted video ads will be effective on facebook. what you'll see is all of the ads on facebook are going to be content. unlike you know, banner ads or you know, even google ads on search. which are techs and if he feel like ads, when you see a michael kors video or other videos for red bull, et cetera, there's a new content creation philosophy in advertising now. so facebook is really about the native content you hear about. and video is huge upside for facebook. i mean right now, youtube is at

a huge, huge turning point because facebook and twitter, when you upload native video to those plat forms and i'm doing it all the time with my start-ups and the investments i've made, the engagement is off the charts compared to youtube. when you put video on youtube, you don't want to see the comments, the comments are known as charles central, horrible place to go look for comments. but on facebook it's your friends and followers. >> it's quite delightful, actually. >> video is the direction everything is going and jason, no more puts at 115, btig at 117, jason, see you soon. >> yeah. don't bet against facebook. >> great final word. as mentioned, a huge lineup of earnings, microsoft, yahoo, gopro, chipotle. all the action starts at 4:00 p.m. eastern on the closing bell. when we come back, according to the head of ride-sharing service lyft, most millennials

will not be buying or owning cars in the next five years. john zimmer will join jon fortt to explain why. and netflix dominates the conversation when it comes to streaming. another rival is gaining ground and fast. the ceo of hulu is here. we'll keep our eye on the markets, the markets down 200 points with ibm and utx not helping. sorry kids. feeling dead on your feet? i've been on my feet all day. dr. scholl's massaging gel insoles have a unique gel wave design for outrageous comfort that helps you feel more energized. dr. scholl's. feel the energy!

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striking distribution deals as it works to carve out its own niche. hulu's ceo joins us in an exclusive interview, which is his first since taking the helm two years ago, with our julia boorstin in los angeles, julia. over to you. >> mike, thanks so much for joining us here today. hulu has been busy, you face a whole new slew of rivals, cbs, show-time, hbo have launched new apps, how do you compete with all of these new players? >> a great question. online streaming is booming. we're focused on the best service for our customers and creating amazing experiences 'we seek to grow. >> you have about nine million

subscribers that compares to 42 million for netflix just in the u.s. how do you compete with such a bigger player? >> certainly you know netflix has done a great job and they were the first to launch. leerily growing fast. our trajectory. >> your originals have not gotten the critical acclaim or awards attention that amazon or netflix has gotten. >> we're in production with a show with jj abrams, jason and most recently mindy kaling, we've announced new originals. >> kayla, you want to jump in here. >> i'm wondering how much the space is going to cost a player like hulu to compete. it seems like it's focused on pay to play. with netflix saying it's going to spend $5 billion on global

original content by 2016. how much can hulu afford to spend to compete? we've been aggressive and we believe we have the capital to compete. we've done quite a few deals over the last year. we feel like we're in a very good poigs pogs with our dual revenue stream to compete with everybody. >> 160 million to $180 million for the "seinfeld" rights is that worth it? >> i can't confirm specific pricing, but since we launched it, it's riz ton become one of our top shows. it's rest debt today as it was back then. we're finding we're able to deliver new subscribers and new viewers to the show. our average age is 33. many of our sub jibers weren't watching broadcast tv in the '90s when seinfeld was on and we're finding that it's resonating with them today just as it did then.

>> kayla said you have companies like comcast and verizon which are starting to offer slimd-down lower-cost bundles. as people subscribe to more of these cheaper bundles, will they need to pay for hulu? >> we're focused on making hulu a great product for everybody. we want hulu to be your base package. we're the only place today where you can get last night's tv from fox, abc, nbc, cw, unavision and many of the viacom channels. >> your parent companies, comcast, disney and fox, are they worried that you're going to drive cord-cutting? >> i don't think they are we have a great product. but we think we exist for tv lovers, so many customers subscribe to everything. >> can you tell us what percentage of your customers subscribe to hulu as well as a paid tv package? >> we believe 80% of our subscribers also buy a package

from a cable subscriber and 20% don't. >> kayla, jump back in? >> all you, julia. >> thanks so much, kayla. one quick question here about showtime. you announced a deal to have an ad-on showtime service as part of the hulu app. what's the big-picture plan here? are you trying to build out a new paid tv ecosystem. you pay for regular access to broadcast through hulu and then showtime? >> we love that partnership. we think it's great for our viewers and great for show-time and hulu. hue lye is a great base package for people. we've have had a lot of requests for "homeland" "ray donovan." the best way to offer that to allow them to buy it from us. at the core we're hulu and we want to make that base product as valuable to customers as possible. >> what would be the next addition? hbo, cbs? >> i can't comment on hot next one would be. we're actively in negotiation with others. >> there's reports that you're

working on an ad-free service? what do you have in the works and how important is it to offer something that's ad-free. if people are paying, do they want to watch ads? >> i did read the reports and i'm not here to comment or confirm anything about those plans. but suffice to say advertising is really important to hulu. it really gives us the firepower we need to acquire and make all the great content and to keep our subscription price low. >> we're out of time. the final question -- before you join the company two years ago, hulu was on the market, pulled off the market. do you want to sell hulu? >> not at all. we're in a great spot, growing fast and looking forward to the next couple of years. >> mike hopkins, thank you for joining us, back to you. julia boorstin with the ceo of hulu in los angeles, as she mentioned, our parent company, nbc universal is part of the consortium that owns hulu. we're keeping an eye on the markets, down 200 points, dow. losses fund-raiser ibm and

united technologies extending the dive into negative territory.

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welcome back to "squawk alley," ibm's cloud unit saw 30% growth in the most recent quarter. dropbox isn't just sitting on the sidelines. the company telling cnbc it just poached former microsoft and dell executive thomas hanson to lead dropbox's global sales team. hamson will focus on growing dropbox's business partnerships. the cloud company has 400 million users at 8 million business accounts, up from 4 million in november of 2013. dropbox says 70% of users are outside the u.s. and carl it's an interesting hire, especially since dropbox last year inked a partnership with microsoft to bring office products to microsoft. >> windows 10 on the 29th of july. a couple of big things to watch

there. dow closed a session lows as we're about to get europe's close. simon is back with that. >> wall street is weighing on europe, we were flat for much of the european session. but don't forget 9% gains on the broad market here in nine sessions, that's the big ebb picture, goldman went overweight europe stocks overnight for the next three months. they were already overweight for the year. they suggest you should fund that by being underweight stocks in the united states. >> today the greek prime minister introduced the second set of reforms that have to go through parliament by tomorrow in order to restart the talks. talk is that the greek stock market might open on thursday. there's a very accelerated program being spoken about for the third bailout. i want to show you some proprietary data which we've been sent by priceline's main booking subsidiary in europe. about hotel booking, it shows that people around the world you

see the acceleration in the cancellation of the hotel booking on the top line there. as we come through the crisis, on the bottom line, the negative net room effect of that. which goes negative because of the bookings on the top line. as you come to the end of june, that last week, which he tsipras announced the referendum and the banks were closed, you get the acceleration in the bookings and it stays elevated through the first week of july when we had the referendum pending and we had the cancellations come back to normal. through the standoff. ultimately the resolution. two things to point out, the first is that the cancellations never reached 100%. they were never double what had you last year. that's good news for the greek economy, given that 20% of its gdp is based in tourism. it may than those that travel to greece internationally, which is probably booking.com's main pull were pretty much aware of the risks they were taking when they booked greece. or the belief when the banks are

closed. it's quite a good place to go to. >> greece is a very small market. don't take it out on that stock. >> let's all go to mykonos. how could you not be there? >> the cocktails will still be $25 apiece. >> you have to dance, kayla. >> let's go to commercial break. >> when we come back, hillary clinton and new york mayor bill de blasio a few of the major officials going after uber. and ride-sharing companies in general these days. the co-founder of lyft is going to join us to respond to some of those allegations in a moment. plus we're watching the dow now down 192, about 1%. back in a moment. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform,

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i'm courtney reagan with your cnbc news update. john kerry says the u.s. is disturbed by anti-u.s. hostility voiced by iran's top leader after the nuclear agreement. citing eye tona khamenei's speech over the weekend in which he said iran would continue to defy american policies in the region. house speaker john boehner ordering flags over the u.s. capitol to fly at half-staff in honor of the five service members killed last week in chattanooga. the house will honor them with a moment of silence.

well thousands of people were evacuated from their homes in southern brazil yesterday, as torrential rains dumped nearly a month's worth of precipitation on some areas. official says more than 47,000 people have been affected by the rainy weather. and a new study by duke researchers find the odds of surviving sudden cardiac arrest improved when bystanders improved cpr until an ambulance arri arrives, they compare data to before and after a statewide campaign that educated the public about portable defibrillators and chest compression cpr. that's our cnbc news update for this hour, let's get back to "squawk alley." >> thanks, court. and i'm here in san francisco at lyft headquarters with co-founder john zimmer. lots of stuff to cover here, but i want to start out with an issue that's been in the news. politicians, have noticed ride-sharing, hillary clinton saying there are concerns about worker protections in

ride-sharing. you know about the potential cap in new york. first on the worker issue, what's your reaction to that question of whether there's enough worker protection among drivers? does there need to be a third classification in between contractor and employee? >> i think we're excited to be part of the future of work and i think the debate is healthy and it could make sense to have a third way. you know right now, to us it's pretty clear where these individuals fall. at the same time we want to do everything possible to take care of our community. and that's drivers and passengers. so sploiring with others and having a dialogue about a third way is completely fine with us. >> i took a car here. my driver said he works 20% for lyft, about 80% for uber, depending 0 on what neighborhood he's in. he doesn't want to be an employee. he's happy that obamacare let's him get his health care for

around $50 a month. he drives kind of like a full-time job. but with flexibility. and he likes the flexibility. so a cap on the number of cars that can be on the road for environmental and traffic concerns? do you think that makes sense in new york? >> no, not really. i think you know, if you think back 0 to why we started the company? we started the company with the premise that 80% of the cars on streets are empty. we launched a product in san francisco, new york and l.a. to get more people in the car called lyft line. now in san francisco more than half of our rides are with lyft line. which means two trips combined into one. that takes a car off the road so giving companies like lyft the room to breathe and to innovate will take cars off the road. the other thing i'm concerned about in new york is that when you get into a political discourse, you can often lose track of what the potential result is what you're doing is and here, there's a lot of

political back and forth between a few different parties and the risk is that they do something that hurts consumers and hurts drivers, we're going to make sure that we do everything we can to stop that. >> let's talk business models, there are comparisons between you guys and uber. of course, uber is bigger than you are. how important is scale to the long-term viability of your model? if you don't have as many drivers if customers are more likely to download a competitor's app, does that end up -- do you have to get bigger relative to uber than you are right now? >> scale is important. we are growing faster in the u.s. than anyone else, including them. so scale doesn't mean everything, right? but our space is similar. if you think about verizon and at&t, you need a certain amount of coverage before you're willing to use one carrier over the other.

we need about a three-minute eta in whatever market we're operating in. in san francisco, two-minute etas, in new york, we're newer to new york so our eta is just above three minutes. >> i can't get new nj nlk. if i'm outside new york, in new jersey. ky get a uber, but i can't get a lyft. is that something that's important for you guys to fix? >> long-term it is, but 80% of our rides and 80% of the rides within the industry are happening in 20 cities, getting to scale in those 20 cities are incredibly important. in the last year alone we raised $1 billion to make sure we do that once you hit three minutes there are diminishing returns. this is a physical real-world product. it's not transportation, it's not a social network where you can have infinite friend connections, because it's physical real world, the driver can only do three or four rides in an hour, max. they can't do 100 rides in an hour. a passenger, if i request a lyft right now and the ride is 30 seconds away.

i'm probably not going to be ready to get in that. so three minutes is the sweet spot and that's where we hit scale. >> one quick question, i know carl's got one in new york. you talk about millennials not owning cars in five years. do you mean just millennials in these big cities? where they can actually get these cars? or do you mean everywhere? >> it will start in the larger cities and go everywhere and so i say in the next five years, that will be in the large cities, the top 20 metros, if you look at the data, the first decade, 2001-2009, you saw millennials reducing the number of miles they're driving by 23%. that's extremely significant. that trend is only going to feed spooed up. >> a lot of people are interested in your relationship with icahn, the degree to which he's meddling or wants to help actively manage the business model. can you talk about carl? >> i wouldn't call it meddling. it was our idea to approach him, and he's been i saw your tweet,

he has been taking list and he has been talking to drivers -- lyft. and he's been a great help. one thing we wanted to accomplish with carl, we have, which is let's have someone incredibly serious about the investment take a look at numbers and see what's happening is incredibly exciting and he saw that. and the relationship going well. >> how do we measure your growth? i mean obviously you're not public right now. how do we measure your progress over the next couple of years as you try to achieve that scale you want. is it a matter of going to those cities and see, can i get a lyft in three minutes versus ub centre. >> because the drivers are sort of gauging that way. they've got on the visor a uber placard and lyft placard and flip it one way or the other, depending on who they're driving for. >> the first thing to think about how can we best take care of our drivers and passengers. we believe the rest follows. but you can go in and see that you can get a lyft. again in our early cities with,

we're first launch it's easy to to get a lyft in under three minutes. it takes a few extra months in the newer cities to get there. we believe again when you take care of drivers, take care of passengers, that that means a lot to those consumers. >> john zimmer, co-founder of lyft. a major battle in technology. taking place on the streets of america and internationally increasingly. >> unbelievable times we live in jon fortt out west today. we have a news alert on apple. courtney reagan has details. >> apple is reporting multiple service issues with about 12 of its services that began about an hour and a half ago. it seems that users are experiencing some trouble with the services like the app store. newly launched apple music. itunes as well. software updates and a number of other services, apple saying it understands some users are affected. experiencing issues with the services. it's investigating and will

update the status as more information becomes available that was posted on apple's website. we've reached out to the company for more and will bring it to you when we get it carl? >> we'll watch that. when we come back, we're continuing to watch the markets. dow is down 200. but google back to 700 and facebook up to 98, we'll watch those, rick santelli. what are you watching? >> you know technology is a profitable business. you just pointed out google. what's going on with facebook. we look at what the nasdaq is doing. what's the barrier to entry for all of this profitable technology? i'm going to talk about that. but not the business barrier. but maybe the hacking barrier. after the break.

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earningspalooza, big name set to report after the bell. our experts give you the play as a head of results. gold may be at a five-year low, one portfolio manager says he's still betting and fake book continues its run nearing 100 $, is this a must own stock? that and all much more top of the hour. carl. let's hop over to chicago, check out with rick santelli to get the santelli exchange. >> hi, carl, thank you. my beat is business, and business is about making a profit.

making a profit is about new and innovative products, which leads all roles these days to technology. the interconnected world we live in whether you can unlock and turn your alarm off in your house with your smartphone, so many ways to stay connected. if you're connected. maybe somebody with purposes not nearly as honorable as yours are also connected. which leads me to a story that was sent to me today from "wired" magazine. >> hackers remotely kill a jeep on the highway with me in it. the reason it bothers me so much is is, is because even though the barrier to entry for many of the technology businesses is high, with regard to being inner connected. i remember not that long ago, many people in my neighborhood were fearful because somebody in a universal way to open grachs

up. >> they were opening up garage doors, i remember the last car i bought, i'm not going to tell what you type of car it is, but its gps system is all en-compassed that there are records of all my travels that could be recreated at some point in the future this article talks about how various systems on a car you know them, you connect basically the next quote summarizes, maybe we can put it on the screen. all of this is possible as they're talking about hacking and in particular a certain model vehicle. only because chrysler, like practically all car makers is doing its best to turn a modern automobile into a smartphone. that's noble. that's what people want. talk to millennials, they want to be connected. they is an issue when technology moves so fast that ultimately get into your car, unlock the door, unlock your front door, turn off your security cameras, they might be able to get inside

the system as well. phil lebeau will be digging deeper on the story throughout the day. so keep an eye out for phil. carl, back to you. we have a news alert for you. ohio governor john kasich announcing he will join the race for the republican nomination in 2016. speaking live at ohio state university in columbus, the governor is going to be become the 16th candidate now to officially enter the race on the republican side. john harwood spoke to him a couple of weeks ago some are painting it as a hail marry sort of campaign. we'll see with 16 people in the race he's got a good as chance as any, i i guess. >> he's a two-term governor. acowardsing to the latest washington. commanding 2% of the pole response for july. >> the poll being led by --

>> donald trump. >> with 24. >> it's going to change. it's still early days. amazing. >> when we come back, a social met work pledging to change people's lives for the better. it's led by wikipedia founder jimmy wales. and ibm, united technologies among them. dragging more than 100 points off the dow, "squawk alley," while be right back.

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wikipedia's founder bringing his latest event tur to the u.s. launching a network that i lous users to donate 10% of their monthly bill to a founder of their choice. jimmy, great to have you. >> the people's operator. if i'm a new customer so to speak, how does it work? >> so, ordinary phone service, you sign up. you can allocate 10% of your bill to the cause of your choice. 25% of the company's profits go to charity. we have really good prices in the marketplace, how do we do that? we cut out almost all of the marketing budget. we note no super bowl commercials for us, we're going to spread virally word of mouth which is why we launched tpo.com. a general interest social network. go on, post pictures, chat with your frinds, follow people you're interested in. >> how has the reception been

overseas? >> it's been great. even without the social networking platform. which we're just launching today, we've been doing really well in the uk. doubled our customer base in the last five months and yeah, doing great. we did an ipo in london on the london stock exchange, last december. raised 20 million pounds. which we're using to fuel our growth. >> of all the ways that you could structure fiphilanthropic giving, why did you feel like this was the type of business that was the right feed for this? >> what's interesting is phone service is you know, ubiquitous these days, there's a huge amount of marketing spend. your current cell phone provider spends a huge amount of your money on tv commercials and things like that we're saying redirect it to great causes. we ask of you is tell your friends, tell your family. there was the business opportunity there to capitalize on the growth of word of mouth marketing. >> the marketing you mentioned,

we have the ceos on all the time is built to reassure you that your signal is going to be reliable in every corner of the country or the planet. >> how do you make that promise? >> we're a virtual network operator. we in the uk we're partnered with ee here in the u.s. partnered with sprint. service you get is exactly the same you get there. >> for the big companies, though, the cycle repeats itself. you invest in marketing, you get more users, it makes the investment in your footprint more valuable. how do you take out the marketing, but still try to grow your business? >> these days with word of mouth, it used to be if you love something you tell five people. now a days you tell 500 people. so the social pleat form allows people to go out and recruit other people. people can bring other people in. by saying hey, why are you weighting money on tv commercials, why don't you donate to my chafrt. you must think that we're in a period where people want to give, right? >> i wonder why you think that is.

where is our psyche right now. >> part of it is my experience with wikipedia. there's a lot of good-hearted people out there. >> one of the reasons we're excited about the u.s. market is the u.s. is the largest per capital charitable country in the world. particularly if i say you can give 10% of your bill and it won't cost you anything. >>ky use it as a tax deduction? >> i'm not clear on that. we are also a donation platform. so you can go and donate it to a charity. that directly, that's a tax deduction. >> if verizon said maybe we'll just cut out commercials for a year, that's a good idea that jimmy whales has, we're going to donate some of our budget to charity as well. would you compliment them on doing that. >> they're not going to do that. but it would be amazing. >> we'll talk wikipedia which continues to be an amazing creation. >> when we come back we'll keep our eye on the markets, dow

continues to trade in the tight range. down 200.

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jet.com. the site is run by the founders of diapers.com. jet is basically an online store that costs $50 a year to join. it gives you great greater discounts the more you spend. >> talked about competition with amazon prime. take listen. >> 90 million households in america that don't have crime. this will be the fastest and cheapest shipping option for those house homes. so take prime out of the equation. >> a former disciple of bezos, taking on the man who taught him the business. >> but trying to turn the business model on its head. it seems like the membership model versus the paying for free shipping. i talked to a family member who is actually a beta member of jet.com. two to five days the average amount of time it takes to get

something she ordered on jet. >> meantime as far as today goes. a bunch of interesting moves, we mentioned google getting back to 700. you recall the week it had last week. off of earnings, that's an important level along with facebook that got a new price target over nomura, 115, moving from 96 to facebook. we thought it might crack 100 at the open. 98.49, getting ahead of ge in terms of market cap. which made some people's head spin. >> also we're seeing the financials despite a negative tape across the board for the major averages, financial sector is hitting another seven-year high. we had earnings from regent's financial which only met on revenue. higher low loss provisions, bank of new york mellon. those stocks are up and helping the financials buck what is another an otherwise negative take. >> the doug is down 205. and utx which had not such good things about the elevator

business in china. cramer talked about that in the 9. the worst day for united technologies since september of 2011. so a rough session there. >> getting no lift from the sale of this sikorsky unit which was announced yesterday. >> let's get back to headquarters, melissa lee and the half. >> thanks, guys, welcome to the halftime report. let's meet today's starting lineup. joe terranova, josh brown, jon and pete najarian. earnings bonanza, four hours left to trade. apple and microsoft we've got your game plan. the facebook overtaking big names in value. is it a must-own stock? let's get to the earnings parade, apple, microsoft, gopro, chipotle on deck. >> the one we'll talk about all day long is going to be apple. when i look at apple early in the first half hour