it's 8:00 a.m. at facebook headquarters in menlo park, california, it's 11:00 a.m. on wall street, "squawk alley" is live. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ welcome to "squawk alley" for a thursday, joining us, henry blodgett, the founder, editor, ceo over at "business insider." and julia boorstin joins us along with jon fortt.

facebook shares in the red. even though results did beat on the top and bottom line. total revenue up 39%. some of the decline possibly attributed to the surge in spending. with expenses up 82%. on the call, mark zuckerberg continued to tout progress with video. take a listen. >> video continueses to be some of the richest and most engaging content for people and publishers and since the start of the year, pages are also sharing 40% more video. we updated our news feed ranking to help people see more of the videos they care about and techting option force video monetization to help our partners build their businesses. >> jon, 24 hours ago you said it would be the line item to much with and a it's clearly the focus. >> given the fact that facebook ran up so much over the past several weeks, this level is just about where it was trading two weeks ago. when you think about it in those terms, not necessarily that bad. but so much of what facebook had

to say on the call was positive. think about facebook events alone and you probably never used facebook events, it has more monthly active users than twitter does. right? >> and facebook's mobile users, it has a billion more mobile users than twitter does. i mean it's amazing. >> this morning henry, jim refused to mention facebook and twitter in the same sentence. he wanted to go to break before we talked about -- >> a wonderful rant about twitter yesterday. >> people talk about ballparks, they're not in the same ballpark. >> we've talked about that. twitter is a niche. it's for news addicts, celebrity followers and so forth. facebook is a mass market platform. company is doing all the right things. ignore the stock price this morning. they are investing aggressively for the long haul and as you look at where they are in this cycle, the reason that revenue is doing as well as it is, they're in the middle of their mobile revenue cycle. coming on the heels of that, likely, we're going to see a big video cycle. we're going to see instagram possibly events in some of the

other apps. there's a lot that will potentially come in the future. the stock's multiple is likely to continue to compress at some point it's going to trade 25 times earnings. but there is a big growth future here. >> and the asterisk on that ignore the stock prices. already does have a market cap above $270 billion, more than ten times twitter. you've got to value this somewhere. >> absolutely. and the multiple will come down over time. the growth is slowing, they have a very high margin. can they go much higher? who knows. the point is, facebook throughout the history as a public company has frustrated short-term traders by saying sorry, we're going to crank up the investment. let us note that this is exactly the way amazon works. over the long haul, you are investing in growth, the shareholders who understand that will get behind it and you will create incredible long-term value so my point is, ignore the

short-term. >> speaking of building the runway down the road. you mention whatsapp, instagram. people curious about their plans for oculus. and zuckerberg did mention vr on the call. >> there's always a richer way that people want to share and consume thoughts and ideas and i think that immersive, 3-d content is the obviously next thing after video. >> are people appreciating the possibilities here? or overestimating them? >> i've spent a lot of time recently testing out these new vr headsets and they're kind of amazing. i think people are starting to realize it's not just about video games and zuckerberg contexturalizes vr, it's about education and entertainment. there could be an app store, just like itunes sells all kinds of entertainment. the facebook or oculus app store is selling all different kinds of virtual reality games. they would be video games, movies, different kinds of sports experiences, this could be a huge new business of an entirely new variety.

>> over the near-term, people are overestimating it. it's going to take a long time. they're incredibly expensive. you need huge bandwidth and processing power to run them. there's got to be standards, to figure out what works in terms of apps. but in the long-term, people are underestimating them. >> you used one at the code conference not too long ago. >> and julia used one, too, it was amazing. it didn't feel like what i thought i was seeing was real but it did feel like i was inside a digital immersive world. i felt like if something bad happened to me there, something bad would actually happen. facebook is in this mode right now of optimizing models that obviously work. not like twitter, which is trying to figure out what's going to work for its business model going forward. that's so clear in the way zuckerberg describes the various businesses, becoming more like news feed where they figure out three or four different things that events could do.

that messenger can do and they go after that and try to get it as good as possible. that's where you have to believe facebook is going to be able to go. >> quickly henry, the price targets are, you've seen them, piper 146. b of a, 115, deutsche 115. is that reasonable to you? almost everybody is a buy. >> long-term the multiples going to compress, sometimes it's going to trade at 25 times earnings. the lower ones seem reasonable. heroic stuff. >> next up another disappointment for samsung, profits down 8% year-on-year, the fifth decline in a row. a lot of it coming from the apparent failure of the galaxy s 6 smartphone. samsung warning of mounting challenges in the second half and said smartphone earnings were muted due to low shipments and increased marketing expenses. what's going on here, jon? >> i think some people are misreading this. galaxy s-6 not a failure. what samsung said we in judged

demand for the s 6-edge, the more expensive model. we didn't have enough. it was the low-end and mid-range phones that came in under expectations. so the smartphone percentage was low based on what had been expected. to make up for it, part of what they're going to do is bring down the prices of the galaxy s 6 and s 6 edge, which thinks they've gotten more supply, so they do that. they're going to have to make sacrifices on margin to gain share and not lose much of it to apple. >> do you think cutting prices will drive sales? or is it about competition with apple? >> it will drive sales. think what they're planning to do is give some of those mid-range buyers a high-end phone for a mid-range price. and so apple and samsung have proven they are the leaders in this market. samsung has tried to preserve its margins by using its own chips instead of qualcomm's, that's working in sort of a middling way. one way to read this, it's positive for qualcomm, it's

positive for other component makers, like sony. which are able to feed the arms race into apple and samsung, but negative for everybody who is not called apple and samsung, trying to sell smartphones, microsoft or htc. all these other folks losing big. >> the big picture in the market is the smartphone market is starting to mature globally. in the past every time market has begun to mature, pc market, all the other electronics markets, you start to see prices go down relatively rapidly. to your point, the high end is holding. apple is commanding huge margins in prices for the iphone 6. the s 6 edge, people wanted it, they just didn't have enough of it. that's a high-quality problem to solve. but at the low and mid range, prices will go down fast. before we go, there was a profile about you in "new york" mass magazine this week.

>> it was set on cnbc set right here. at the new york stock exchange. >> the opening anecdote takes place when you're with us on set and the reporter is watching that. you want to walk us through the evolution of what this product means to the overall wis? >> at "business insider" we've seen an insatiable demand for stories about science, technology, innovation, ideas, we want to continue to invest in that we thought it would be a great time to launch a site that was dedicated to that and that's tech insider. we're very excited about that. digital media is starting to come into its own. not jus just "business insider," we saw that your parent company may be making a giant investment at buzzfeed at a giant valuation. same for fox, vice is producing incredible long-form video. so we're reaching the phase where people are recognizing, digital is the future. there's a generational shift from television and print to digital. and lots of companies are now figuring out how to do it.

think you're going to see continued success for a the although of the digital players. >> there's so many talk about how digital news is changing and obviously you're part of that. we're seeing all of these different companies like facebook and twitter and snapchat and buzzfeed try to change the news game. which of these companies is most powerful for you in terms of distributing news. >> right now facebook is the biggest platform. i think ultimately the analogy for all of the plat forms is they are distribution, they are the cable companies of the digit al world and they have different formats, they build content differently and acquire followers differently. noits just selling the same thing, but they're vast distribution platforms and the content companies that are succeeding are the ones making the great stories and distributing them through these plat forms. >> part of our world, so i don't want to belabor the point, but a good piece, people should read it. >> henry blodgett joining us

from "business insider." dow is up, down about 74 points, off the lows as we've seen the euro come in some of the headlines about the imf and a bailout for greece helping bring the dollar down. lifting stocks just a touch. shares of whole food getting hit after profit and revenue missed expectations. feeling the heat from the overcharging complaints in new york city. whole foods trading at lows not seen since january of 2012. and p & g, slipping after revenue misses estimates. the company saying organic sales in the fiscal year expected to fall. when we come back. spending in the digital ad space is soaring. is it money well spent? plus nasa hosting a major event on drones. which companies are at the forefront what they're looking for. and mark zuckerberg, not the only one excited about the future of 3-d. we'll talk to a company working with the number one draft pick to bring virtual reality to the nfl when "squawk alley" comes back.

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we do have breaking news this morning on insider trading, our kate kelly is live in new york with that. >> thanks so much. some breaking surprise news from the supreme court of the united states. that the solicitor general of the justice department has filed for the supreme court to hear a key insider trading case called

u.s. versus newman. this was a key insider trading case involving the question of whether the tipper and the tippee on a piece of insider information had a subsequent relationship that there was a benefit from giving the information, trading upon it and something expected in return this question is now perhaps going to be considered by the supreme court the u.s. second circuit of appeals overturning a decision that had found these two defendants guilty of insider trading in december, a big blow to the u.s. attorney's office in new york and now on behalf of that u.s. attorney's office, the justice department is pursuing this all the way to the supreme court, carl. so a really interesting and somewhat surprise development. this case is considered a long shot for the supremes to hear it and second for them to find in favor of the u.s. but they're going to try. >> well kate, a lot of people going to be watching that. thanks for bringing it to us. >> facebook's earnings showing a

boom in mobile adds. news highlights major growth in the industry. with com score reporting overall advertising on mobile jumped 70% last year. joining us is com score co-founder john forgone. facebook said they get something like one out of every five minutes spent on mobile that's incredible. >> some companies like adobe have said their target something better. people feel like their ads are more relevant. how much of facebook and google running away with this? >> well certainly mobile advertise something the fastest growing sector in the digital world. this year it will account for about 35% of all digital advertising. facebook is really positioned tremendously to benefit from mobile. one of the benefits of mobile it allows you to access the internet whenever and wherever

you want. people have this insatiable appetite to keep track of what all of their friends are saying and doing. one out of every five minutes on mobile is facebook. more impressive is that in total one out of every six minutes spent on facebook and the u.s. and they have 215 million visitors in a month. >> one of every six minutes -- >> spent in total. >> mobile -- >> plus desk top. >> that's everything? >> correct. staggering. the beauty for facebook and i think the other social platforms of mobile. is that the platform allows these mobile ads to be delivered in a very natural way. especially now that facebook is putting their ads not just on the right rails as called. but in the middle of a news fooed. you almost can't miss them as you're scrolling down the news feed. they look natural and i think they deliver very, very persuasive messages. >> facebook talked a lot in their earnings call about the

success of video ads. and facebook is making a big push here. i'm hearing it from advertisers. the question is, are they stealing market share from youtube? or is this big-enough market that they're not competing against each other? >> well so video advertising is itself growing at about a 35% per year clip. about it's still smaller than mobile. running about $5 billion. certainly i think that kind of growth on a percentage basis allows everybody to benefit as the boat rises if you will. i think the other question that's been asked a lot about video is whether it's cannibalizing television. what's interesting is that there is no evidence that television advertising in total is dropping. >> not shaping up to be the best of years. >> not shaping up to be the best of years. but i think the databases that the industry needs to measure the consumption of television long-form content streamed to a television set, those databases are now emerging. think that will allow the media

planners and the buyers to have a lot more confidence about doing these buys. >> a lot of people looking at the stickiness of facebook users, the ratio of daily to monthly. was pretty good. existing users are not checking out. they continue to check in. where, how big can the ad load be before people start to say that's enough. >> well that's always an issue, right? i think facebook has done a really good job of monitoring and managing that. they put in some algorithms on the news feed that is in direct response to what consumers are saying. i think that's real positive. but you know, when you're accounting for this major proportion of the time that people are spending, you have a lot of opportunities to run ads against them. and when you think that digital is still not larger than television, although it's predicted to be next year. but what's really hurt and i think this is where the dollars have shifted, they can make from print and the print industry has been devastated by this movement. it's going to be very interesting to see what happens

going forward as facebook monetizes their video feeds more and more and they've only just really begun. i think tremendous opportunities for them. >> a lot of people going to be watching that. jim thank you for joining us. coming up, the drone industry says it could create over $80 billion in wealth over the next decade if the government cooperates. what they're asking for, when we come back. ♪ no student's ever been the king of the campus on day one. but you're armed with a roomy new jansport backpack, a powerful new dell 2-in-1 laptop, and durable new stellar notebooks, so you're walking the halls with varsity level swagger.

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. nasa holding a major drone event today. jane wells is live in los angeles with all the details. jane? >> hey julia, yeah well the drone industry claims it could generate $82 billion in value over the next decade and employ 100,000 people if it gets its act together and the faa finalizes some rules. this is happening as drones are getting a lot of bad press, they're interfering with

firefighting efforts, including one that forced the grounding of water-dropping aircraft in a fire two weeks ago. the sky could be the limit with the drone potential. amazon, verizon, google and cisco are at an event in silicon valley, trying to figure out an air traffic management system for drones. >> a the although of people say cisco networking company, what's the relevance to drones? drones will have to be connected. networked. they will transmit ungodly amounts of data, whether it's video or sensory data. >> now amazon is proposing a skyway with different lanes this is their graphics, below 200 feet for simple drones. 200 feet to 400 feet for more advanced drones and a no-fly zone between 400 and 500 feet. the higher the drones fly, the more they would need to be able to communicate with each other and with piloted aircraft and have collision avoidance systems. the association for unmanned vehicles international said the problem is the faa hasn't come

up with rules for drones and commercial drones can only fly if they get an exception from the current ban. >> flying and regulating by exemption are not going to work they're not keeping up with the applications just for exemptions. we need finalized rules as soon as possible. >> as for people flying their drones over fires, wynn says we've got people that are nonaviators have access to devices flying in the air space and we're trying to educate them about that. carl? >> jane wells in los angeles, thank you very much for that we'll watch the story continually. meantime, simon is here to wrap up the european close. the imf making things interesting once again. >> the imf is saying they won't take part in a greek bailout. the board was told that yesterday. i think it's kind of where we are we know we have a sticking point here. this is a gain, a third day of gains that we've had in europe. two major factors coming through here. as we go through earnings season. it's now a 64% beat rate in

europe, the highest since they started collecting data six years ago, you see the companies exposed to the lower euro doing well. for example, siemens, came through saying sales would have been negative 3%, but the fact that the euro is down, it's positive 7.6. and deutsche bank is higher and nokia and alcatel about to merge with lucent. the euro is boosting earnings in europe. the other major factor you're getting is people warning, ceos warning on economic growth around the world. for renault and anheuser busch. it's about emerging markets and china. saint gobain warned, on the big glass maker and the oil majors are driving higher with exception of repsol. royal dutch shell a axing 6,500

staff. the financial times is reporting at the corporate level that starwood has re-entered talks with intercontinental. starwood, which reported today, both of them reported today. starwood isn't moving on the news, but ihg is higher. originally that would have been the tax inversion, fritz van passion was in charge and he wasn't returning cash to shareholders, everybody is like what is he up to. that's resurfacing. apparently starwood can be talking to other people. given the fact that they're up for sale. it's obvious in a way. quickly want to mention what is happening in athens at the moment. the greek prime minister has basically in a cinema before his own party, 200 delegates there, issued a put up or shut up warning to them. saying he wants a referendum on everything that the country has been through within the party on sunday so that everybody can

move on. he's told them that if they thought they could get a better deal than they have at the moment. then they are mistaken. back to you. >> simon hobbs, thank you very much. when we come back, shares of facebook continue to slide off the session lows, despite the earnings beat last night. "daily mail" north america ceo jon steinberg weighs in. dow down 39.

good morning, everyone, i'm sue herera with your cnbc news update. a university of cincinnati police officer who shot an unarmed black motorist after stopping him over a missing front license plate has pleaded not guilty to murder charges. 25-year-old ray tensing appearing at his arraignment wearing a triped jail suit. bond set at $1 million. the insurance institute for highway safety giving the 2015 ford f-150 crew cab model the highest top safety pick. but repair costs were found to be up to 26% higher than the steel bodied versions. israel's parliament passing a controversial law that permits the forced feeding of inmates on hunger strikes. palestinian inmates have held hunger strikes in recent years, protesting their detention. republican presidential candidate donald trump appearing for the first day of the women's british open.

appearing for two days before returning to the campaign trail. let's get back to "squawk alley." thanks, sue. investors not exactly jumping up and down in the hours after facebook's earnings report. despite a beat on both the top and bottom lines. advertisers are watching the company's mobile growth and opportunities on instagram and video, might be feeling a little different. here with his thoughts is jon steinberg. ceo at the "daily mail" north america. and jon, we've been talking for a long time about how there's facebook, and there's everybody else. you see this report, you hear them talking about video and some of the possibilities for growth. what do you think? >> i think that the only negative thing that you can pull out of the earnings announcement was the fact that video may be cannibalistic of a lot of the other reporting revenue. additional billion for instagram by 2016 or '17. listening to the call, talk about the spicy chicken product

from wendy's and how the video ads got an eight-point lift if recall. if you're getting that awesome spicy chicken sandwich return from doing video advertising you're not going to want to do the static stuff any more. that's part of the fear. >> one of my favorite things is how sheryl name-drops advertisers on the call. like extra advertising for them. if video ads are such high cpm, isn't it okay for them to cannibalize? >> on the call the cfo talked about deceleration in revenue growth. this is a few percentage points drop in the stock price. i think what people are saying it's not going to keep up the rate over time. also on the call we've had this app install thing keeps coming up and sandberg never gives a straight answer. when asked about app install. when you think about mobile app install ads, they're an important but small part of our revenue. the important thing is they're not used by developers. that's code for venture-backed high-spending start-ups. >> she said a couple of times

that it's relatively small. i'm curious about your thoughts on cannibalization. are you saying that video ads will cannibalize instagram? it seems that there's a whole new category they're enthusiastic about is instagram. whenever we roll out a new ad product. the people that don't sell ads say great that's x million more you're going to do next quarter. i say no, the advertisers want to gravitate to the new product. so one plus one never equals two. only people that don't sell ads think a new ad product is incremental revenue. >> you think instagram will cannibalize. >> i think everything cannibalizes everything. if you don't continue to roll out new products, you lose advertising dollars over time. it's $1500, a month. like the bloomberg terminal. the price never goes up but they need to keep layering in new features to maintain the price. >> you think there's more promise in the growth of ads, a name for facebook relative to the other platforms. the flagship?

or instagram? or something else? >> i think that there's more growth in the video and i think that whether or not you buy video on instagram or on facebook, they're basically one and the same. it's an in-feed, auto play video ad with sound off can you choose to put sound on. the real strength and scale is selling it together. when i was at google, goog the started selling youtube, there was a separate youtube salesperson and channel confusion. you've got to keep everything integrated. the advertising sales force should walk in and say buy video on facebook and that means instagram, too. >> there's discipline involved here. facebook controls how much inventory they put out there. on instagram and you heard them say again and again, we're not going to roll this out really fast. we're going to be cautious, if they do that, and if they're able to really make sure that the cpm is high and worth it for advertisers, they can sort of have some control and influence over how that cannibalization happens. >> zuckerberg said at the end of the call when asked about "on the money"tization on messageor and whatsapp? he said we're going to take it

slow, we want to have businesses first connect on the messaging platforms before rolling out ads. now investors thought i was planning messenger and whatsapp monetization in 17 and 18 and now zuckerberg is telling me we're going to take the slow road. it's not a massive drop in stock but rejiggering models. most analysts took down their estimates for the full year by tens of millions of dollars, not hundreds of millions. >> let's move to twitter. one of the best tweet storms ever unleashed by mark andreessen following something "the new york times" columnist nick bilton said here on "squawk alley" yesterday. >> one person i would put forward would be mark andreessen. you know he gets product. he gets businesses. he's created the twitter storm. bring on mark andreessen, let's see what he could do. >> andreessen jokingly responded with his ten marching orders, started with this making bushy mountain beards mapped torrey for all staffers and then he had

several others. which were pretty funny. carl you called him out on twitter. he responded? >> at first it seemed that he would warm to the idea but over time i think he was throwing shade at the guys. >> nick bilton may be the only more intentional provocative person on "squawk alley" than me. and the tell-tale sign is whenever a person on the show says something and does the little smirk. andreessen on the board of facebook. also andreessen horowitz bought twitter shares in a secondary transaction. $le 0 million. a great executive, my pick, i'm sticking with eric schmidt as my random candidate. carl, i mentioned it on the show two weeks ago. i think eric schmidt would bring a lot of kind of business rigor to it. so if bilton outside candidate is andreessen. my outside candidate is schmidt. >> i think the whole conversation speaks fact that we need to hear who the new ceo of twitter is very soon. i think a lot of analysts were

disappointed there wasn't an update on how the ceo search is going. >> the only thing that drives me crazy about the twitter ceo thing is jack wants the job. if you're asked do you want the job and you don't give a straight answer no to it, that means you potentially want the job. i like how people are using the hamlet comparison. teaching a new generation of people what hamlet is all about. >> bilton floated this theory that bain doesn't want it for some reason. do we know anything else about that? >> i think everybody wants it it think the only person that doesn't want it is sheryl sandberg. this is the best, this is the best internet company. despite all the woes and issues, twitter is twitter, right? everybody wants to be ceo of twitter. >> it's kind of dangerous to want to be ceo of twitter when jack is there -- >> i see it like at the end of the last crusade, people have lost their heads before you, jehovah begins with an eye, it looks like a crucible. >> it's hard having the ex-ceos on the board. it seems that jack and bain are

the front-runners, i think the lot had a lot of disruption, bringing in somebody from outside would be disruptive. bain is the nicest guy in the world, coy see it working out very well. >> and jack dorsey wants to be ceo. square, which wants to go public. >> but the way the whole square thing would work is that jack could be executive chairman at square and he could be ceo of twitter. and you know, square is a much smaller company, much less sexy. it will chug along and he can go do that. >> jon steinberg you want to be ceo of twitter? >> i knew you were going to ask me that. >> he didn't answer, jon steinberg, thank you very much. coming up, we compete with every major company in the world and they're all firebombing us. that quote is an unusually candid words from the ceo of drop box and we'll tell you what he meant. first rick santelli what are you watching? well i think we're going to have to do a little bit of a post mortem on yesterday's fed

meeting and statement. we're going to have to dig down a little bit more on gdp. and we're going to have to ask the following question -- is there an issue with the greece trap in europe's financial condition again? well we're going to talk about all of that after the break. can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive?

test drive this buick first. gonna i am test driving it. for 24 hours. where's the salesperson? at the dealership. nice buick! i guess that test-drive last night went well. actually, i'm still on it. you know, we're test-driving this buick for 24 hours, right?. yeah. so what are you doing? test-washing it. okay, well let me know when you're done, i'm gonna take it test-shopping. introducing the buick 24-hours of happiness test-drive. it's on your terms and a better way to take a test drive. coming up top of the hour, one-time darling whole foods, a mess today. we're going to talk to the analyst who cut his target by nearly 40%. plus, one shoe retailer

shares have beaten nike, under armour and adidas in the past year. we reveal the name and how to trade it. two new etfs let you bet on the dollar's every move. are they right for your portfolio? carl will find out in about 15. we're seeing some movement in the dollar today. thanks. let's get to the cme group to check in with rick santelli and get the santelli exchange. well of course we have to dig in a little bit on the fed. when it comes to the fed. we've seen a lot of buzz phrases, buzz words, word counting and statements, we've seen notions of transparency. things like today-dependant. but we haven't seen a lot of action and that probably will change. i just like to say it's going to be a learning experience. i don't normally buy lotto tickets, here's a lotto ticket. how transparent can i be about what's going to happen with the lotto ticket? not very, because the drawing hasn't occurred yet. can't be transparent about the lotto ticket in terms of

data-dependant, we've put that to the rest. once we see the fed's action we'll be able to reframe most of the issues in the context of words versus actions. and i think will be a good development. as far as gdp today. i had peter bookfar on as a guest. one area we didn't cover, he wrote about the drags in the gdp number. two were inventory and nonresidential fixed investment. on the second one i totally agree. on the inventories, i harken back to chicago, pmi, when we have al assandre franzen. there was a big build-up that made distortions in some of the data points last year. think this will continue to be something to pay attention to the third area he pointed to is a drag imports. i understand that if you're just monitoring gdp, that would be a drag. but i also say it's an asterisk. because good imports does imply some demand. i've never said the economy has improved, hasn't improved or that we're not better than others in terms of grading on a

curve, but it is what it is. imports can be looked at in two directions. finally when it comes to greece, i never thought i would have to talk about this again. but nonetheless, i have to. "financial times" running a story that's really like a wildfire spreading on the floor. the headline is, written by peter spiegel out of brussels, basically the first line says it all, the imf's board has been told athens' high debt levels and poor record of implementing reforms disqualify greece from a third imf bailout. the article goes on to describe that the way this works is, basically lagarde is an employee of the board. the people that put together the facts for the board, that's who basically said the sentence i read. the united states, the biggest contributor to the imf and jack lew has made no secret he would like the bailout to be done and the thing to go away. there's development to keep an eye on, muscle-flexing going on and it probably means the process is going to take longer.

julia, back to you. up next, the nfl moving into the future as many teams make big bets on virtual reality. one vr company working with this year's number one pick -- show us how it works next. you focus on making great burgers, or building the best houses in town. or becoming the next highly-unlikely dotcom superstar. and us, we'll be right there with you, helping with the questions you need answered to get your brand new business started. we're legalzoom and we've already partnered with over a million new business owners to do just that. check us out today to see how you can become one of them. legalzoom.

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nfl teams pairing with virtual reality companies to boost their on-field performance. number one draft pick jameis

winston and the tampa bay buccaneers are working with eon sports pr to help the rookie process his first season. john is about to try the product on, brendan, good to see you. what's jon going to do here? >> he's getting virtual repetitions with our sidekick engine. what he's looking at is actually a representation of from a quarterback's perspective. so what we do is we take two different types of forms of vr. you can take video-stitched vr. something we do at the elite level for college and professional teams. what jon is looking at is what nfl players, for instance, jameis winston down to high school athletes use to get virtual repetitions to prepare for competition. >> you could theoretically design your opponent that's coming this weekend in virtual reality. where do you get that data? >> so at the elite level what we do is take the data from game film and we, they are saul

different types of scouting reports. detail. at the baysic high school level they're trying to prepare for the next week. we know what makes athletes big, fast and strong. how do we know they're going to make the right play on the field. we supplement the on-field repetitions without all the physical wear and tear. >> if you look at the video games like "madden" is there a bigger market for this as a video game game play than as a training device? there there's absolutely markets for both. when you look at virtual reality and its historical evolution, it's two-fold, the training side of things and the gamefy indication side of things. the numbers are probably bigger on the gaming side. we're focused on training. >> i think we've learned in case we didn't know. that i am not an nfl quarterback. i guess my question is -- >> more of a tailback or running back. >> sure. i guess the question is how much can you really help an nfl team

by giving people a quarterback an immersive experience like this. in terms of feedback that you've had thus far on reflexes, decision-making, what are they saying? >> so we've done actually initial study with elite athletes all the way down to junior high school kids. what we did is analyzed their decision-making within the virtual reality and we took that, over a period of time, we saw improvements of up to 30% in their decision-making. you start to amortize that additional repetition over the course of the a year, you're dealing with incredible gains from a cognitive perspective. >> i'm guessing the athletes grew up playing video games. do they take to this naturally do they trust this? >> i have not yet an athlete that has resisted it. they embrace the technology. that's how they're engaged with the technology. they want to, that generation learns with that, they're all on their smartphones, anyway. we take that and basically meet

them where they're at. provide something they want to utilize and they want to engage with. >> maybe could you make a software package with off-the-field life choices for them. >> zuckerberg did mention vr and the possibilities for it down the road on the conference call. let's take a quick listen. >> i assume thoughts and ideas, i think that immersive 3-d content is the obvious next thing after video. >> so these initial versions that we're getting on the market -- would you compare them to the first ipod, relative to where ipods are today in. >> hands down. within sports training and virtual reality. we're at the tip of the iceberg. right now we can provide the video-stitched 360 vr experiences and then the more video game-type experiences with our sidekick engine. however, we can, we haven't even touched augmented reality and

where the immersive mixed reality can take us. >> we're seeing so many companies in the vr space, facebook, vow, microsoft, which company do you think is going to many could out the winner? >> i think right now if you look at the industry as a whole. i would say microsoft and facebook are leading the way. however, the ability to do true virtual reality experiences from a mobile device opens the playing field to a lot of people. >> finally, oculus has vowed that the motion sickness thing is being dealt with. has gotten better. where are we on that? i mean -- >> i would say they're still work to do. but i would, i would make a bet that on their consumer product coming out in q 1, all of those issues will be solved. >> really? to where we can use them without any he cans? >> yeah. >> i think that's one of the big deterrents. >> i've noticed a big difference in the latest generation. have your athletes gotten sick? >> we work with hundreds of high

schools, tens of colleges and a couple nfl teams. we have yet to have an issue with motion sickness. we do have issues with people using it too long and their parents get mad. hey they need to go outside and play. >> we're going to watch you guys, please come back. brendan. brendan reily. >> you have a future. meantime this week we caught up with some big-time athletes at the sports matter summit. here's the captain of the u.s. women's soccer team carli lloyd, talking about wearables. >> i have a an apple watch, i'm starting to play around with it it's pretty cool, i'm enjoying it i'm pretty active, so having the fitbit or whatever, i would probably blow it out of the water, the numbers. but i think it's really good for people to be able to say to themselves, okay, instead of taking the elevator, i'm taking the stairs and be a little bit

more proactive and active. >> the number one pick in the nba draft, carl anthony towns, is not excited. >> i run so much. there's no reason to track it for me really, no, i'm not really big on the wearables. i do like the samsung watch a little bit. and-day like you know i just love, i love the samsung galaxy s 6 edge. i'm big on that. >> just wait until those endorsers get to him. >> see how much -- was that a paid endorsement? it was not a paid endorsement. authentic endorsement, impressive. the ceo of drop box not mincing words on the competition saying they're all firebombing us, we're going to tell you what he meant. dow down 20 points.

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we compete with every major company in the world and they're all firebombing us. that is dropbox ceo drew houston on his file storage and sharing business in an interview with "forbes." on top of that he said the industry is in a race to zero, while companies continue to cut prices and offer bigger storage limits, dropbox has been valued

at $10 million. the industry very competitive right now. with apple. google, microsoft, amazon, all ramping up their products in the space. we talked about this on, with box, on their first day here, the kmot commoditization of thi business seems like it's not gone that far. >> amazon is investing so heavily, they can afford to. >> drew houston is in a tough spot. i was talking to somebody in silicon valley last week about how they needed to get started in the enterprise sooner. maybe in some ways that vox is better positioned because of that and so much business is expected to come in on that side. i hear they're trying to raise money now and the valuation could be interesting. >> meantime we have seen for the third day in a row, a gap down and some improvement during the course of the session. the headlines from the imf have helped bring the dollar in and that's resulted in a bit of an uplift for stocks, energy

helping as well. we were down 110 on the dow, now down 21. and linkedin tonight. >> it will be interesting to see what the reaction is to linkedin's investment in those long-term paves. let's get back to helicopters, scott wopner and the half. thanks, welcome to the haim show. for today, steve weiss here, alongside joe terranova, josh brown and pete najarian. our game plan looks like this. sneaky stock, the shoe retailer whose shares have beaten nike and underarmer combined this year. we're going to reveal the under-the-radar name and the trades. all about the benjamins. our two new etfs, that play the dollar's every move right for your money? and the mess that's whole foods, the stock falling 10%, to the lowest level in three years.