the orange line is the nosedive of blue apron. in purple, that is snap.ever, both square and facebook have managed to recover. twitter in blue, not so much. the question is, is snap and blue apron closer to twitter, or more along the lines of square? facebook is in a league of its own, i have to say. [laughter] caroline: all eyes on facebook's earnings as it comes out next week. abigail doolittle, thank you. now a story we are watching. facebook's whatsapp messaging service has been partially blocked in china. it comes after the government began cracking down on virtual private networks which allow users to route data overseas. authorities have been ramping up social media censorship in china as it prepares for its 19th communist party congress. as links between russian intelligence and president trump's 2016 campaign continued -- continue to be scrutinized, we speak with the former nsa director general keith alexander. the advice he is giving to the commander-in-chief, next. this is bloomberg. ♪ caroline: the fortune brainstorm tech conference is well un

i turn to guy who's our resident blue apron expert since you've donned the blue apron. >> i did and ied it in that kitchen it you recall >> now the stock's getting crushed. >> it's my footage right there i was like a maestro -- >> look at that. natural. >> moving with it -- no, i made fusili with shrimp and spinach it was delic doesn't mean the stock is going to be delicious. i still say stay away. karen finerman said it that night, she was shocked it even made it to a public company. >> with it being down so much, would you consider being long? >> no. absolutely not i mean, entry to the space are significantly high all about scale we talked about that when guy cooked us -- scale it costs too much to acquire companies, they can't keep up with that cost the product costs aren't going to come down i think you look at amazon, they're going to eat their lunch. >> amazon-proof stock, pete najarian, give me a name. >> i'd give you home depot i'll go a different direction. i'll give you delta and united airlines i think the airline industry -- you know what, we talk about -- what is it they'

it was absolutely great for blue apron. not as positive for the people that bought blue apron. >> we still have a very strong growth rate. they go through the customer acquisition and then customers dropping off and having to get new ones is the key of concern the rate of growth it was a very crowded business a lot of people thought grub hub would be annihilated so i'm routing for blue apron. >> we're going to get cramers mad dash in a moment countdown to the opening bell. we'll get to another call on amazon as they take their target to 1,200 and then later on this hour an exclusive with nelson peltz that spushing for that se seat on p and g's board. and the wolf huffed and puffed... like you do sometimes, grandpa? well, when you have copd, it can be hard to breathe. it can be hard to get air out, which can make it hard to get air in. so i talked to my doctor. she said... symbicort could help you breathe better, starting within 5 minutes. symbicort doesn't replace a rescue inhaler for sudden symptoms. symbicort helps provid

two titans are going head-to-head, blue apron example is good one. blue apron is infancy. ipo'd.azon sees it and want it. trouble on the horizon. ♪ i joined the army in july of '98. our 18 year old was in an accident. when i call usaa it was that voice asking me, "is your daughter ok?" that's where i felt relief. we're the rivera family, and we will be with usaa for life. >> president trump promised a wall to keep us safe and to protect american jobs for american workers. but even some establishment republicans are blocking the way. elect me to the senate, i will fight every spending bill that doesn't fund that wall. if i have to filibuster on the senate floor, i will read the king james bible until the wall is funded. you know what? washington could benefit from that. [laughter]. stuart: clip there from congressman mo brooks on his new campaign ad. he is running for the senate. he says, you fund that border wall or i will shut the senate down. congressman mo brooks joins us now. first off, congressman, we heard from the border patrol people who tell us the number of illegal cros

>> blue apron, what's interesting to me is the stocks set up here.not seen an ipo trade as poorly as this has coming out of the block. you know the set up here, you are talking about the one time sales the mark is saying the growth here is a teen and double digit grower and 10% or 20%. it cannot possibly reaccelerate. >> we think the company is putting in a bunch of initiatives and more changes of products and menu options and delivery options and they're speeding up their delivery times as well. you put it together and reinvigorating the market spending we think we'll have reaks reacceleration in the growth the risk rewards is very intriguing >> was it unfairly taken to the wood shed on the back of the whole foods merger or did the under writer get the pricing wrong out of the gate? >> i don't know about the last question, people smarter than me can figure it out. there is two things came into stocks and traded right away the company was running at about 176% year over year ago and now it is at 17% that's a 90% reduction growth rate if you extrapola

>> you want to talk about another bust blue apron. >> blue apron?0. >> look at that. >> someone came out with a $2 price target. >> the ceo, we had them on, defended a very good business model which, frankly, i had experience with and raised questions early on because of various things that i wondered about, whether they would be portion sized and whether it's enough whether it would be the weight of the delivery and the waste that is generated as a result of it. >> for younger millennials. >> not to mention certain things that were good, others that weren't? he was talking about sustainability, the supply chain and how they can scale the company stock price has been a disaster that is really embarrassing, to take somebody public. >> their sales are not growing as fast. their advertising budget is growing faster many competitors of course, amazon, if they wanted to, could offer this service once they own whole foods and bring it to you whenever you want and they'll use much better packaging. >> yeah. >> i don't know, david this was really not a grea

now amazon version of blue apron.oes amazon have the -- enough lieutenants in place to actually execute on all of these things jeff bezos, busy guy. >> sure. i think that's a wonderful question i think it's a good point. i think right now they do. i think it's just the idea that they're running with it. especially if they can leverage prime for all of this, again, we know that's probably the plan with the subscription for the clothing but if you do that as well with the meal kit delivery, then you have the whole prime tea involved there, too. but it is a question how many more items can you add to the plate >> book stores they have to open up a bunch of book stores, too >> they do have a handful of those. what is old is new again with the book stores. but it is amazing to think about the runway that amazon is trying to take off from with all of the different sectors and businesses. >> let's move on to ai elan musk speaking at the national governor's association over the weekend talking about the future of our artifici

so amazon is now the juggernaut getting into blue apron's space and it's now trending down, blue a-apron, 33% dropping below the ipo, they wanted to intro at 17 and now it's toward a third of what it had wanted. amazon getting into at-home delivery kits for food and it already sells tyson prepared home kits and amazon may have its own trademark, home meal kits. >> and let's stream the amazon effect. we've got another. this is from tech crunch. it reports that amazon may be working on a new messaging app. it's called, what is it? >> it's called anytime. the tentacles goes further and further in our lives. and amazon teasing the launch of a service, a messaging app, anytime. surveying customers about the service. it will give desktop and mobile users, the ability to make messages, share photos, play games, make a cup of tea, you name it, it will do it. another area that amazon is moving into. and taking over, anytime. >> i'm going to stay on the subject of amazon, and when you can get me the shot there. and-- >> amazon, and this is stuart varney this morning. anything, but amazon, over eve

orange is blue apron. even though today's big one is blue apron, the ipo price is down sharply. perhaps a gives reason for optimism in the future. vonnie: at least the nasdaq is in the green. abigail, thank you for that rundown . we want to talk about oil because we have seen movements with opec meetings in st. petersburg, russia. crude is rebounded from its funk in june. opec has a grip on supply and demand. i want to bring in the co-lead at the henderson utilities and energy research. how much of a factor in your forward outlook is what comes out of this particular opec meeting? noah: thanks for having me on today. the opec meeting was pretty much a nonevent could we did not get a deepening of production cuts. truth be told, that was a low probability event. we did get talk of future production caps out the at at levels higher than those countries are producing today. in terms of a forward look, there's not a lot i cannot of today's meeting that would impact our outlook for oil prices. vonnie: we have this wonderful function that i'm sure you know of -- opec go. and know exact

. >> wear my blue apron. >> they cut the range. the advertising spend is up. the sales are not keeping up. >> what happens on july 11th, amazon prime which i sympathy going to be 20% year over year what happen ifs they decide whole foods sends you a box of food if you're a member of prime. >> blue apron managed to get to the market and jawbone did not. >> that's desperate. the blue apron ipo. >> come on how could they not pull that deal. >> they made it to market. we questioned the ceo i think rather energetically he had a descent story to tell. >> they don't have the growth they had look what do you do with blue apron? honestly do you think blue apron should be like diverse identified. >> i have facebook and i have blue apron. >> so you're saying they have no business. >> exactly people say you didn't like grub hub. >> it was terrible and came back maybe at a certain point they'll have a couple of bucks in cash. >> it was like a communist plot. did you read the s-1 we are like commune. >> i thought that was container store. >> i t

apron. >> and the marks just opened up 10 minutes ago. a look at the big board. the dow is down about 50 points. coming up, we will get an update from kcbs radio financial reporter jason brooks. ♪ mom. ♪ ♪ where all the walls echo with laughter ♪ ♪ and every room has its own chapter ♪ you've carried on your family's tradition. let us help you prepare for your family's future. financial guidance while you're mastering life. from chase. so you can. apron. ne retail giant ha >>> amazon is cooking up a new service to compete with meal delivery kit company blue apron. the online retail giant has applied to trademark the phrase, we dot prep, you be the chef. -- we do the prep, you be the chef. soon after the announcement blue apron saw the stock drop as much as 12%. about one-third of blue apron's value has vanished after the company went public late last month. >>> netflix is exceeding expectations and one of the pizza chains in the country is going on a hiring spree. joining us is financial repo

. >>> amazon launched its meal kit service today sending shares of blue apron down more than 5%.ike blue apron, amazon fresh does not require a subscription and meals can be bought individually. the meals have similar price points ranging from $20 for a meal that serves two. amazon filed a trademark for prepared food kits, shares of blue apron fell. >>> the fire department says it confiscated a drone flying over a wildfire in saratoga. the agency says the appearance of the drone prompted a firefighting helicopter to land yesterday. the fire burned about 10 acres off mount eden road. the owner of the drone could face misdemeanor charges. >>> in santa cruz county, the death of a 20-year-old woman who fell from a cliff is being called a tragic accident. jennifer diaz ocampo of san jose fell about 150 feet from a cliff along a beach in davenport yesterday afternoon. high winds and surf were reported at that time and the woman's body had to be recovered by helicopter. sheriff's officials say ocampo was with friends and was standing about a foot from the edge of the cliff when it parti

. >> welcome, i'm tyler mathisen here's what's happening at this hour blue apron plunging 10% right now. reports that amazon may look to get into the prepared meal kit market more on this ahead and manufacturing in new york state growing for a second straight month in july, but it is at a much slower pace new orders and shipments both slipping just a bit. and celebrity chef bobby flay is planning to take his fast casual burger chain public. melissa? >> the trump administration is calling this week made in america week and today the white house is hosting a made in america showcase featuring products from all 50 states. ammon jafrs with the latest efforts. >> reporter: that's right, melissa. the president is going to tour displays here of products that are made in america. there's going to be an indoor component, an outdoor component on the south lawn including marine one which is of course made in the united states. they're going to highlight a bunch of brands here look at the list including chick-fil-a, caterpillar, campbell's soup, stein way, gibson guitars, stetson hats no word on ex

blue apron trying to find some footing, but this is not necessarily new steaks being taken, just sometors now saying they own shares in the stock. back over to you >> so 57% of the company is owned by just these two firms? >> a couple of mutual fund type companies. >> thanks, john. >>> mid february, kraft-heinz walked away from a $143 billion to merge with unilever but is another attempt in the cards? a new note out today says there's a strong chance. joiq joining us now is pablo zuanic you got a note out today that you say there's a 75% chance that they mount a hostile for unilever make your case >> that's right, michelle. first of all, kraft-heinz is the rollup story of the cgc space. yes, they were rebuffed by unilever, but according to the anti-takeover law, kraft-heinz could come back with a hostile offer by the 20th of august. there's three reasons this could happen number one, they need to do another deal for the stock to continue to work it's a roll-up story warren buffett owns about $30 million worth of shares with kraft-heinz. >> i'm going to stop you there warren buffett do

those are the catfish fillet from blue apron. the amazon one is easy and fresh.'t do a lot of grocery shopping i don't cook very often. quick and fresh. the blue apron one, they felt a little fresher i felt like i accomplished something more in cooking them so, guys, that's what you have here i'm not sure that there's a clear winner because there were such different propositions. maybe for a different customer >> okay, deirdre, thank you. we're out of time. i'd love to talk to you more about it but i think we're going to see you a little later today, as well. when we come back, fda commissioner scott gottlieb is here we're going to be talking drug pricing, pharmaceutical innovation and the trump agenda right after the break. in the meantime take a look at the futures at this hour you're seeing that things are relatively flat. stick around, "squawk box" will be right back. so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driv

the second apron, way trading, below its ipo price.n the other hand, in europe, having an opposite and better kind of day on its first day. tell us what happened? caroline: what a sigh of relief for the european tech sector. we get the biggest german ipo of the year. it is how you get your food delivered. it actually rose on the first day of trading. -- nineoint, up 9% percentage points, pleasing the investors. one of the main ones, rocket internet -- big sigh of relief for their children -- shareholders. it is interesting, the size and scale of delivery here. it is bigger in terms of its rival, the restaurants. markets, 150,000 restaurants, that is about three times the amount of restaurants that growth hub had. ub hub.t seeinto bloomberg, you will how it appears -- how the peers have performed. in the blue line, that is the u.k. to delivery company. we have seen it really outperform. it really has jumped up some, doubling since april .14. likes of thethe whiteg,r upu two thirdsb hub. delivery hero, the german company hoping for that

frankly, blue apron needs cash.u look at their first quarter cash situation, they had $61 million on hand. they had a free cash flow deficit of $70 million in that quarter. they told investors we have cash and borrowing to get us to at least 12 months of runway. that is not a time of time. this is a company that is having to out market its competitors now. they are continuing to build out the logistics network and its fulfillment centers, so they needed the money. whether you wait a few months or you go out now, it's going to be a question of valuation to get the deal done. emily: coming up, apple celebrates the 10 year anniversary of the iphone. but will it continue to be the company's moneymaker? we will hear from one analyst who thinks another device could take its place. all episodes of "bloomberg technology" are streaming. live streaming on twitter. check us out. this is bloomberg. ♪ these days families want to be connected 24/7. that's why at comcast we're continuing to make our services more reliable than eve

blue u apron is a totally different beast. that's in a world of hurt.ou have to have the right nichey ipo, so i wouldn't make blanket statements, but if the market finds its sea legs, ipos come back. >> what do you think, pete >> blue apron, they're going up against amazon, at the very beginning, with the deacceleration of what they've been seeing and who are they going -- into the ipo. really difficult >> is it a coincidence, down 20% sin since guy's shrimp dish on this show needed a little salt he did a great job >> he's great. >> looks good. >> so, the other part of this is they talked about the private, guy should stay away from both ipos >> look like the grim reaper in the stock. the other part of this is the private market is different than it used to be. you have fidelities of the world going in there and buying before the ipo, so they're no longer buying on the ipo and they're the supportive after, so things have changed there as well in terms of these ipos, i'd be a seller >> coming up, pete says one of the fang stocks is turning around final t

drop box may be next and probably eyeing the performance of newly listed startups like blue apron andp that haven't fared so well in public markets lately guys >> some really interesting numbers, deirdre is the sense that this is a healthy realignment at the unicorn end of the spectrum or this a slump >> i think that what you're seeing is bigger rounds but less rounds that's a term we've seen over the last few years what's interesting is according to data from pitchbook, this is shaping up to be the biggest year for unicorn ipo so you are seeing some exits, we, of course, are seeing the ipo market pick up but looking at the performance, it's interesting you still had five this years which is a good number you're seeing more go public and what do we say now here? flat is the new up. >> china has been somewhat on a startup tear it seems like and when i look at the way they've managed to create this network across southeast asia and south area to benefit their interest i wonder is there somewhat of a reai linement of china becoming more of a startup power perhaps relative to other overse

caroline: james, your take from the slightly more meager blue apron?shaken the rest of the ipo market or do they look across the pond and see how it is very in germany and think blake griffin is just a little off -- blue apron is a little off? james: i do agree that there are many sectors like software that are more conducive to ipo's. we were below where we were a couple of years ago. the industries that are hard, like the one eileen was mentioning, those will be facing greater and greater scrutiny. is ifill really be a test you look into it, are they going to go direct? is the game going to change? these are things we do not know yet. caroline: eileen, talk about the game changer. snap change the game in terms of getting all power with the ceo. then we saw spotify coming to the market. what are you seeing from companies coming through and how they are altering? eileen: what is interesting is generation of companies -- and it probably started with google and zuckerberg with facebook. what we are seeing is there is a huge appetite from the market for r

offering something blue apron does. somebody else's business they all get blown out of there. if you want to get government regulators attention, that is the kind of stuff you do. >>> major u.s. companies are boosting their 401(k) benefits. there is a lot of reasons for this but gerri willis has all the details. hey, gerri. >> that's right, neil. whoo who, more money from your company. the numbers are impressive. average company contribution to 401(k)s rose 4.7% in 2016 up from 3.9% in 2015. it was highest percentage and biggest year to year jump in a decade. that data coming from fund giant vanguard group which runs 1900 work place retirement savings plans. the big question, why are employers doing this, right? after all the move away from defined benefit pension plans into 401(k)s in the first place was to save money. putting more money in 401(k)s is a move in the opposite direction. the answer though according to "the wall street journal" today, boosting retention of the best employees. that is one reason they're doi

maybe blue apron is a one off.a i more pessimistic do agree that there are sectors like financial and software that are more conducive to ipos. at the same time, we are where -- below where we were a couple of years ago. hard, istries that are think those are going to be facing greater scrutiny. ist is going to be a test when you look into it, are they going to go direct? is the game going to change? these are things we don't know yet. caroline: talk about the game changes. we saw snap change the game. that is another company that james analyzes. they cap all the power with the ceo. they are not raising a more money, just coming to the market. what do you see from companies coming through? generationthis next of companies that started with google when they came to market and zuckerberg when he brought facebook, there is a huge appetite from the market for really solid tech companies that have fundamentals. people are willing to concede for publiclys listed companies in order to get value in the business. i don't kn

business get a lot better. >> what is the technological mote that likes of a blue apron or somebodylse needs to build up in order to succeed is it a special data set anticipating customer tasteors something else >> so a lot is supply chain. building the relationship with farmers, building the infrastructure to get food to people quickly if you're one of the startups, it's relatively easy to do that at small scale it's the four of us want to start a meal kit company feeding a handful of people, question do that but to do it at $1 billion in revenue, the run rate is much more difficult from an infrastructure and logistics standpoint. >> isn't that what grocery stores already have? >> sure. and for like a subset of customers and for a large subset of customers, grocery stores work now for people that want to cook that don't want to deal with the grocery store, don't want to deal with all the food waste that goes along with buying for a familiar live two or a family of three and letting that go to waste, blue apron is, again, for that subset, a pretty easy road to go down >> the bet is

it is causing concern for blue apron. looking at metals on the back of the chinese economic data that we got, overall economic data your gross domestic product up 6.9%. industrial output rising 7.6%. you are seeing iron ore rally by 5%. you have copper and zinc higher. bump,etting less of the up .5%. about 19 minutes till the close of trading in europe. metalsd you brought up because we are seeing commodities produced outperforming when you look at the stoxx 600. not quite enough to lift the benchmark today. if you look here at various indistinct -- various is indices, the ftse is up .4%. the gains in the ftse might be partly due to a weaker sterling. euro pretty much unchanged. it has dropped off the board, but we are looking pretty flat. the fixed income yields are moving lower. metals bid for the most part, as you were just saying, brent crude lower, but .3%. 600, as ie stoxx said, pretty much flat overall. this is the distribution between different countries here in western europe. i talked about the u.k. being hired

back now to the two biggest stock stories of the day snap falling below its $17 ipo price and blue apron simply falling like a kitchen knife pete, what do you make of these moves today? we can take snap first, which, by the way, the lead underwriter, morgan stanley, downgrades today what does that tell you? >> yeah, well, it's pretty interesting. i mean, you know, we talked about this the day of the ipo, though, scott. we sat on the set and talked about, when you go out as an ipo and you're already beginning the deceleration process, that's an issue. i actually had a piece of this stock at $17 or wherever the ipo price was. and suddenly we got that big lurch forward. now, i didn't get the full amount, but at the same time, anytime you go up against incredible competition and you're already decelerating, that's a problem whether it's blue apron or you look over at snap. i mean, snap is going head-to-head with facebook and we all knew that going into this whole thing and suddenly, we see this stock start to move to the downside. it's understandable. i think there's further downside i actua

there's no way for companies like blue apron to compete >> some haven't come back all the way. this is a fast one last night. they can't compete buying right now, and you're going to have them eat their lunch. whole foods can basically cut costs. they're pricing it below the range at ten bucks just showing up any price, whatever works >> they still, there's not a lot of shares by this thing. you think there should be enough interest to keep this at a better level talk about another stock getting crushed today. >> kors plunging more than 7%. after mk and partners initiated coverage with a sell and $28 price target that stock was lower today >> well, kors sadly is a name i know well. however, gross margin pressure, revenue pressure north american comp sales pressure, none is new to the core story we know that for sure. we know they want tho scale back so we're going to see the deleverages aspect there if kors, expectations are really, really low i feel like this is a little bit, the horse is out of the barn already, recommendation, could go lower of course. i think they're early

blue apron it needs cash.u look at their first quarter cash situation, they had $61 million on hand. the have a cash flow deficit. they told investors we have cash and borrowing to get us to at least 12 months of runway. this is a company that has to market its competitors now. they are continuing to build out the logistics network and its fulfillment center. they needed the money. whether you wait a few months or you go out now, it's going to be a question of valuation to get the deal done. emily: apple celebrates the 10 year anniversary of the iphone. will it continue to be the company's moneymaker? one analyst says another device could take its place. episodes of "bloomberg technology" are streaming. this is bloomberg. ♪ ♪ emily: welcome to the best of bloomberg technology. i'm emily chang. this week marks the 10th anniversary of the iphone. while it wasn't the world's first smartphone, it jumped far beyond the competition and propelled the mobile revolution. the device spurred rapid changes in industries o

. >> it gets murky at this time of recovery peter, thank you >>> up next, throwing in the apron? big changes at the top of blue apron. >>> and another check in on european trade positive yet again france leading the charge. >>> welcome back after 100 point rally in the dow yesterday, strength continues this morning dew futu nasdaq futures up 5. and russell 2,000 also closed record highs yesterday it was a strong day on wall street led by banks. and let's check currencies, too. s if ted day and the euro has zoomed ahead a little bit of dollar strength into the fed decision today. but broadly the euro is not far from two year highs against the dollar dollar just ticking higher against the yen. vix also a big mover low volatility correlates with the record high stock prices >> and we talked about draghi's impact and probably your shopping trip to italy >> did not have much time for shopping >> but still an extraordinary effect blue apron is shaking up their leadership their ceo transitioning to senior advisory role changes come less than one month after their underwhelming ipo. >> a

emily: blue apron is down 26% now since the echo. what is happening? took off to the negative since the beginning. that deal launched three days after amazon agreed to buy whole foods. over-hung the deal for sure. they did go out at the valuation a plant a listing at a year ago. when they did list in the past few weeks, you see they also had taken a number of valuation cut down's to the current valuation. when you take a step back and think about the rest of the company's in the private market aboutne, we talked a lot the overheated 2014 and 2015 private market funding environment. now we are seeing that play out with some of the biggest names as they hit the private market. before these deals which consumers know about, you know snapchat, you know blue apron. we saw a lot of enterprise tech listings. those have gone out on average basically flat or a little up in terms of valuation. now we are getting into bigger deals where you saw a lot of crossover investors, public market investors piling into private rounds and driving up valuations. some of thes

. >>> watch out blue apron amazon made a big move on the meal kit space "worldwide exchange" begins right now. ♪ welcome to my house ♪ >>> good morning welcome to "worldwide exchange" on cnbc. i am wilfred frost >> i am courtney reagan in for sara thanks for joining us early if joining us in the u.s. >>> let's check the global markets, to see where things are taking off on this monday morning. we take a look at futures after we had a nice week last week with the dow and s & p ending at record highs stocks are slightly higher, if the dow-jones opened now, up 25 points, s&p 500 slightly to the up side, nasdaq up about nine points look at the ten year-year-old. 2.3 or so. expectations pulling back for a rate hike next year. sitting around 50/50 for that possibility. >>> let's look at asian markets. three key pieces of data out of china overnight. growing faster than expected 6.9% second quarter, and factory output surged to 7.6% in june. retail sales topped expectations, rose 11% over the course of the last month if you look at what it means to markets, it is a negative reaction for chinese

caroline: james, your take from more moree slightly meager blue apron? the rest of the ipo market or do they look across the pond and see how it is faring in germany and think blue apron is a one-off? james: i am more pessimistic than eileen. i do agree that there are many sectors like the financials, software perhaps that are more conducive to ipo's. yes, it is up this year, but at the same time, we are below where we were a couple of years ago. in the industries that are hard, like the one eileen was mentioning, those will be facing greater and greater scrutiny. what is really going to be a test is spotify. if you look into it, are they conceivably going to go direct? is the game going to change? these are things we do not know yet. caroline: eileen, talk about the game changer. we saw snap change the game in to a certain extent, another company james analyzes, keeping all power with the ceo. then we are seeing spotify not raising any more money and having to come to the market. what are you seeing from companies coming through and how they are alterin