they have two fledging businesses, amazon retail and amazon cloud. a few more that are coming to the forefront, but break them down into each of them. the important thing to see is how amazon's able to get and nail the scaling function of each of these businesses. of course the cloud business is more than 24%, 25% net income positive. if you look at the retail business they're starting to turn the corner country by country. in the u.s. they have already hit profitability on that. and if you break that down, for any retailer including amazon, the scaling function is essentially profitable growth. if you look at both those things on growth and profits, amazon's been able to drive growth tremendously through their prime business. more than 50% of u.s. households actually start their shopping from amazon.com, right? and they have more than 80 million prime subscribers. that's literally $8 billion in cash flow. they've nailed the growth function. how about profits? if you look at the cost structure of amazon, you break it down into the two businesses on a

amazon or netflix? >> amazon.ike the fact that they continue to grow as kevin said without regard for profitability. the market seems to endorse that. the market likes the bigger is better quality. they're not in a business, the entertainment business as their dominant business although they are as a subsidiary of amazon where they're at the whims of the public constantly. netflix was doing a great job in the subscription business and that's what they were doing and developing their viewership across the globe and now they want to make all of that content. they're producing more, i believe, than all of the major networks combined. enormously expensive. very low profitability. i would worry about that as an investor. >> i own netflix. to kevin's point, there are many more metrics to measure netflix on than amazon. amazon is othver all thesis. netflix is a business that gets measured on the factors that you mentioned. amazon, netflix can crush them at any point in time. >> you're the biggest scrutinizer of valuation

from amazon's ipo. the way back in look at 1997. that. up 51,000%. most of the gains have come in the more recent years. this really reflects the company move into the cloud with amazon web services plus their , dominance in e-commerce. speaking of that, let's take a look at a chart in the bloomberg. it is a long-term chart. in white we have the market cap of walmart, so, traditional bricks and mortars. and in the last two years, amazon has shot higher. reflecting not just the fact of the company has been performing well the past few years, but but investors' hope for the future that e-commerce will continue to be the rage seems to be crushing to some degree the retail sector. but very interesting, emily. amazon might have this massive market cap around $480 billion, but this is another chart. we see that amazon is dwarfed by apple. apple market cap in the world of $800 billion. atzon, the fourth largest $480 billion. we have alphabet and microsoft. then facebook and berkshire hathaway. those of the wor

amazon rolls out its amazon prime membership service and guaranteed shipping. tens of thousands of people sign up in the first month. the following year, the launch of amazon web services, a secure cloud services platform for businesses. today, amazon prime is one of the world's most popular subscription services with tens of millions of members. amazon web services is now used by more than 1 million customers and has a third of the market share for cloud spending. may 15th, 2007, amazon turns 10. closing price that day, $60.58 per share. now a decade later, shares break the $1,000 milestone. in the 20 years since its ipo, amazon is the third biggest company in the s&p 500. >> shares of google parent company alphabet are also closing in on a thousand dollars a share, as a new report shows that most active fund managers are heavily invested in the so-called f.a.n.g. stocks, that stands for facebook, amazon, netflix and google, which have returned nearly 30% this year. a.b. mendez is management investor at frost advisers, thanks for being here. >> good to be here

fresh food is amazon's achilles heel.gether this whole move into digital is working better than nay-sayers predicted. amazon is the undisputed champion, but walmart's online business is going strong. not only did e-commerce increase 63%, their merchandise volume grew by 69% most made up of organic growth on their own website, a huge acceleration from the 29% we saw last quarter or 20% growth the quarter before that to say nothing of the 7% growth a year ago. walmart has been the second largest e-commerce retailer for two straight quarters. can walmart beat amazon? doubtful. who says they need to? they just need to go toe-to-toe with amazon and make money doing it and wipe out everybody else in bricks&mortar, likely from what i've seen. they're going through a transformation look. they're different animals. amazon has terrific web services and businesses and in a class by itself with amazing artificial intelligence. walmart is a much cheaper stock that sells cheap earnings versus 85 on amazon. and the timeliness and refrig

one stock that is is amazon and all amazon is doing is making its shareholders money.7,000% since the ipo. the stock use to be at $1.50. now it's at $997. if you put $10,000 back in amazon in 2007 and rode through the crises and didn't sell you'll have $144,000 right now. three years after its ipo the company launched marketplaces. by 2007 amazon web services began and the kindle came out. amazon has done something more surprising, opening a physical bookstore. the ultimate question is, what is not the next thing but the next next thing. >> and the next next next thing after that. let's bring in victor anthony. victor why don't we start with you. you are looking for a price target of 59 thouds. what are you betting on if you buy amazon shares? >> well, yes, you're betting herbal essentially that. amazon given the investment weather it'll be fulfillment. you're betting that one, amazon will continue to take market share. i see that continuing for the fore seeable future. number two, you bet that aw s despite the competition from microsoft and google alphabet, that aw s

into thisrm itself tech behemoth, amazon has pumped cash into amazon prime, amazon web services, andmazon echo ai platform. and while this cash burn has worried many investors, amazon has turned profits for eight straight quarters think in part to its cloud computing business, aws. and amazon's market cap now almost 230art, worth billion dollars, less than half of amazon. now amazon is stepping further on walmart's turf, opening its own brick-and-mortar stores, surely a battle royale to watch for the next 20 years. another story we are watching, government officials from the european union and u.s. will meet in brussels on wednesday to discuss plans to broaden an inflight ban on laptops and they fromablets to flights europe entering the united states. the department of homeland security might expand the ban currently imposed on u.s.bound flights. the new security protocol could mean longer security lines and heightened delays. coming up, as governments and corporations worked to contain the global malware attack, there are a few winners, cybersecurity firms. we will discuss next. if

let's not forget amazon.mazon is trying to do so many things, taking on ibm and hp with their $14 billion aws business and duking it out with retailers and taking on netflix. i think that is the more interesting story line on what he said. this is a big, scary animal that's trying to beat down the laws of physics. it is pretty awesome. >> he is telling his content team their batting average is too high. they are not taking enough big risks. as an analyst, does that make you nervous? >> a little bit. i have had a couple of meetings with reed. i don't think there is a limit to how much they are willing to spend. they look at the number of viewing hours generated by the content. viewing hours go up, satisfaction goes up subscriptions go up, it is all right to spend more on content. i think they are doing it relatively efficiently. we know that by looking at the u.s. market where they spend more and more every year. their margins and subs have gone up. if they can replicate that in international markets, it is ok

i want to make a quick point about amazon. back to 2011 to 2013 it was all about north american retail sales. when it doubled again it was about aws. about their cloud services. now the thing has just gone par bollic and people are just talking about a lot of other things that are going to happen in the future. the way they use data, so let's move forward. this could be one reason why you want to protect the stock here. i look at this breakout level at 850 from earlier in year as something that could be in the cards if the stock were to go down. so versus let's say 100 shares of stock at 992.50 you could sell in august expiration 1045 strike call at $26. you could use the proceed to buy an august expiration. 950 put. that would cost you nothing because each option costs 26 bucks. you're buying the put for 26. you would have gains in the stock up to 25 but that's where your gains are kept. you have losses down to 9 oo, protection below that that's what you would use a cashless collar far. >> what do you think about dan's trade?

i stay amazon. >> it's no long term google. you priced in so much already in amazon.f we watched costco in this last segment. why don't we think people are clawing back and they can compete. google is extraordinary. this is a company, we say it all the time, there is 4 or 5-plus million businesses. >> the market hasn't rewarded them for that. >> you have to buy that. >> weigh in, guys. >> i think, they're both companies have a moat. i think that's a fair argument. i think just on valuation, google is growing and trades 25 times forward earnings. playing would you rather? >> yes. >> alphabet. >> so which stock are option traders are betting to score, amazon or alpha bet? mike ko joins us in las vegas. hey, mike. >> if are you taking a look at what options traders are gambling on, they're gambling on amazon's upside. when you look at the june options there is anywhere from two to four times the calls on amazon as google. if you are trying to bet a stock is going to move one direction mo more than another stock. amazon is likely the one to move. the other reason, that $9

>>> amazon ambitions? can the world's largest online retailer shake up the multibillion dollar pharmacy business? those stories and more tonight on "nightly business report" for wednesday, may 17th. >>> good evening, everybody. a thunderbolt hit the market today. stock slid, so did treasury yields, and the dollar. volatility spiked. for weeks wall street mostly sharehold shrugged off any d.c. drama. today, the shrugging stopped. it came amid president trump asked james comey to back off of his investigation of national security adviser michael flynn. the allegations in an as-yet unseen comey memo may mean nothing for the economy, not now and maybe not ever. but the trump/gop agenda of tax cuts, deregulation and infrastructure spending could founder or fail amid a hail storm of investigations. the dow jones industrial average dropped 372 points to 20,606. nasdaq off 158. the s&p 500 fell 43. although it was the worst day of the year for the indexes, we should point out that remain near record levels. >>> wh

you end up buying stocks like amazon, that's what you do. why amazon? it might sting when the stock, because it touched 1,000 today and it has become a storied component of the era of single okay greatness as opposed to single stock risk, so many firms say you should be scared of. kind of, well, yeah. it is not all the magic number 1,000. remember, amazon is the ultimate non-trump stock. >> trump free zone. >> what does trump stand for? first, lower corporate taxes. but tax reform doesn't mean that much to amazon. since the company could decide tomorrow that it doesn't want to show any profits for the next couple of years because it needs to spend money to dominate india, and maybe even take some chinese market share from ali baba. second, trump stands for the repatriation of overseas assets at a much lower tax rate than companies would currently pay, but amazon truly has no desire to send money back here. it is more interested in developing its business over there. typically the companies that want to bring back money tend to be the ones that want to b

. >>> how would you like to protect your profits at amazon for nothing? >> nothing? >> yeah, that's right. nothing. we'll break it down. >>> and talk about car trouble. gm shares are tanking. and there are signs that it's about to get worse. we'll tell you how you can cash in. the action begins right now. >> let guess right to it. another record-setting week for stocks, a potential warning sign has appeared in the market. stocks hit all-time highs. treasury yields have been sitting near year to date-lows. what's behind stocks and bonds rallying together? what does it mean for the market? dan? >> listen, obviously u.s. equities are some of the strongest around the globe here. they've kept that bid, they've broken out to new all-time highs. the fact that bonds are rallying now says something a little differently. you take a look at the performance of the s&p under the hood some of the best-performing sectors are pretty defensive. for all intents and purposes the performance of utilities, health care, consumer staples, it doesn't exactly speak to some reflation trade. o

what about amazon prime comes with the amazon firestick and fire tv. they are spending big as ever.is a company that reaps in that revenue, but does not always deliver profitability. james: right, a real way to think about the video focus and any other content focus of amazon is is how do we increase the number of engagements per day and minutes of engagement per day? you can even think of amazon echo and alexa as an extension of that. if we get you to touch amazon in some way, 8-10 times a day, that can include video, asking alexa what is the weather all that , eventually accrues to i am going to shift a larger percentage of my retail spend to amazon. so even though that is not generating topline dollars, it is cementing what is undoubtedly the industry's most powerful customer relationship. caroline: jitendra, where next in terms of can amazon possibly go? we are seeing record highs for many of these stocks. i am looking at amazon with with a $439 billion market cap. it's about to grow if it holds onto those after-hours trading numbers. are you expecting just continued positivity

is amazon has an achilles' heel, what is it?t might be what we just talked about, the work and mortar, and -- the brick and mortar, and they have their kindle readers, and the activated platform area these are things people have heard about but probably are more and will buying it if they can go to a store, see it and buy it. bottom shelf treatment in some of the retail competitors, like best buy and staples and things, so they really neither own place to showcase their own products, and that has been their achilles' heel, but they have to alex that, because a big part of their advantage has been have the -- but they advantage, because a big part of their advantage has been providing things. emily: spencer, who covers amazon in seattle, thank you. we are watching that escalated a battle in the market for high-end computer processors, a company just item,ed a new powerful selling a new chip under a new brand aimed at gamers. they say their latest product has outperformed intel chips, and if you like bloomberg news, check us out o

>> yes, i sold puts on amazon. they're so under valued. >> you don't understand, however big you think people are and neural networks, however you want to call it. >> yeah. >> it will be bigger. >> that was billionaire mark cuban revealing yesterday he sold puts on amazon. sounds like he has been watching the show. we love you, selling 100 stock is hard for most retailers. we have this call to action on amazon. >> mark, rewould have to have you on the show. we can discuss bullish strategies. as we were talking about selling puts on the $900 stock, that will be risky. maybe we can do this a different way. we can look at selling a put spread, which will have less risk than selling those puts outright. this is a strategy that can generate income. the other nice thing about this, this is a trade that has a relatively high probability of profit relative to either buying call, call spreads or defining the stock. so specifically, taking a look at amazon, we're going to look at selling something a little out of the money.

amazon is using its bookstores to bring more of amazon into their homes.section for people to test drive the company's gadgets. like the kindle fire tv box to stream web videos to your tv. there are also kindle e-readers, amazon's voice-activated speakers called the echo, and other home electronics. >> customers have asked for it. they like to try it out and see what a smart home looks like what can i do to make a home , smarter? how does amazon music interact with the echo? what kind of things can i ask alexa? they want to talk to experts about it. we brought that into the store. >> it is still not exactly clear why amazon is bothering with physical stores at all. it's website is already the biggest bookseller in the world. the popularity of shopping for books and much more on amazon.com has crushed bookstore chains like barnes & noble and borders which went out of business a few years ago. amazon does not disclose sales from its handful of stores, but it is probably a tiny fraction of the company's $140 billion in annual revenue. and one final note of ir

talking some amazon today., the president's threatening to halt german car sales in the u.s. we'll talk about that. >>> buy or sell, why politics may move the markets but rarely for long. pulitzer prize winning journalist jim stewart will join us. the dow is down 17. the power of a proven 15-year track record. the power of an etf. the power of qqq. the thinking we put in, clients get out. power your client's portfolio at powershares.com/qqq. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc. containing this information. read it carefully. i love how usaa gives me the and the security just like the marines did. at one point, i did change to a different company with car insurance, and i was not happy with the customer service. we have switched back over and we feel like we're back home now. the process through usaa is so effortless, that you feel like

and then amazon 997.09. we'll watch that. it's an important question you ask, but one i think with a simple answer. we have this need to peek over our neighbor's fence. and once we do, we see wonder waiting. every step you take, narrows the influence of narrow minds. bridges continents and brings this world one step closer. so, the question you asked me. what is the key? it's you. everything in one place, so you can travel the world better. and then amazon 997.09. for years, centurylink has been promising fast internet to small businesses. but for many businesses, it's out of reach. why promise something you can't deliver? comcast business is different. ♪ ♪ we deliver super-fast internet with speeds of 250 megabits per second across our entire network, to more companies, in more locations, than centurylink. we do business where you do business. ♪ ♪ >>> in the nasdaq today, appian going public. prices at 12. raises $86 million. stock right now up almost 24%. let's get over to dominic chew for a quick market f

this is such a clear sign of intent coming from amazon. absolutely, and the if you just look at their investments and their strategies, which are regionally different, the pricing strategies are also different. it is basically telling you they are expanding by localizing the strategy, which is really working for them. caroline: mexico also a new area that they are launching prime. what about the content side of the business, james? what about amazon prime comes with the fire stick and fire tv. they are spending big as ever. his is a company that reaps in that revenue, but does not always deliver profitability. james: right, a real way to think about the video focus and any content focus is how do we increase the number of engagements per day and minutes of engagement per day? you can even think of amazon echo and alexa as an extension of that. if we get you to touch amazon in some way, 8-10 times a day, that includes video are asking alexa what the weather is, all that eventually accrues to i am going to shift a larger percentage of my ret

space, but there's a lot more to amazon web services. software vendors, i think that's really compelling. with what they have, with alexa and echo products, that can be very disruptive. think about the applications, in the consumer world, think about that technology being taken in the commercial world, running warehouses through this type of technology. that could be really valuable, something that may not be fully appreciated in the stock price right now. >> i fell in love with alexa, and now i've sort of fallen out of love with her. she doesn't understand me the way she used to, frankly. but are there any weak spots that you soo e? one of them that i hear a lot of my associates here say is that they were a little suspicious of having a microphone in their house that could potentially listen to everything. are there businesses or vulnerabilities anywhere there you see in amazon? >> yeah. i think that's one of the first ones that you think about. that there's potential risk with that. all it takes is one breach of data with that. and pot

>> it's for long amazon. >> you are long amazon? >> yeah. >> is it mainly -- >> i count the boxes. i'll give you an example what's happening in retail which gets less attention other than the traffic. you still have to buy stuff in a store. like the soup. i'm still going to go buy a suit in the store. but in the old days i would buy a suit, a shirt, i'd buy a tie, remember my wife yelling at me because i have holes in my socks and underwear, so i buy my underwear and socks. and right now i just buy the suit. >> and you don't have a tie. >> i don't wear a tie anymore. but most of the stuff i would buy in the store that was extra, i don't buy anymore. that obviously hurts retail. but i think it also hurts malls. >> how long term of a short do you think the simon property short is? >> i think potentially this is just a long-term structural problem. you know, i think we're overmalled and overstored in the united states. you can't understore and undermall overnight. it doesn't work that way. it will take a long time. >> i know you said that you're less on the fixed income side these day

would you give up amazon or facebook. google versus amazon. you give up google. think amazon wins the day in a brackett system. they have the most unique product. >> they are the last ones i find it the hardest to give up amazon. >> yes, me too. we would have no way to get toilet paper. we have to leave it there. >> farhad manjoo. jason cal ac jason calacanis. >>> our kayla tausche is in d.c. to set that up. good morning. >> this is the score for the house health care bill that passed three weeks ago by just four votes. it is going to be a material development for the path forward on health care reform and the overall republican agenda. the last time the cdo weighed in on the most recent or i should say the previous rendition of this bill, they showed that the house version at that time would see 24 million fewer people insured but premiums falling by 10%. the deficit reduced by $150 billion over the course of the next decade. since then, the house has made some key changes to the bill. they added funding for patients with predesh -existing conditiod letting insu

granted, it doesn't work perhaps as well as amazon does but they are in this game. >> well, i mean amazonnd the google home play my music for me. you know, they connect to things like that. i think that it is not so much the piece of hardware that's going to be the thing but whether you build apps on it. i guess it was in 2008 when apple's iphone and steve job opened up to an app store, i think as more and more apps are being bit for this home device that allows me to get all of the video i want on demand, the exact songs i want played, call the exact people i want to have, keep my calendar, that will be a device that has things bit upon it that you and i, or at least i haven't imagined yet. >> so, walter, it is hard to find a bear on apple. there aren't a lot of them out there these days, but some of the bearish cases point to the fact that emerging markets -- china was still a disappointment in past quarter and that could be an uphill battle. services is a fast growing increasing chuvg of the business but is very competitive and everyone is waiting for the next big thing beyond the ipho

that's where the market 2017 for me, amazon, amazon, amazon and gook l io, apple, retail, everywhere.r to headquarter, scott wapner and the half. >> our top trade, d.c. drama. whether the turmoil around the trump p presidency has reached a tipping point for stocks and how to protect yourself if it has. with us today -- and kevin o'leary is here. also with us from the white house today is cnbc's eamon javers and from new york, cnbc cr contributor, ron inaans. vix

this is the amazon, and, remember, amazon started as online bookstore, but this is the amazon take ontar experience. what do i mean? there's displays that are full of data, 20 years of online data, the front facing books, meaning less inventory, integration of the app, and perhaps, not surprisingly, generally, lower prices for prime members. that last point is the reason analysts see it as the latest strategy for amazon to grow the prime base, but that said, amazon vp says the reason the company is doing this because customers asked it. >> the easiest thing to do if you buy online is to get out your phone or be on your computer and buy it, so, you know, i think what woe'll do is listen to customers and see what they want. right now, what they love is to be in an environment where they've got physical books. >> reporter: all right. come take a look at this. it's not just books either. you have electronics section as well where you have amazon devices like echo. the idea here, hands on experimental experience. not so different from the apple store. not surprisingly, amazon not disclosin

amazon is an internet company, to a great extent. i do not think wal-mart can unseat amazon.s its own advantages. perhaps in apparel. the challenge is to create a growing and profitable e-commerce business that thrives alongside amazon. that was brad stone. deep map is a new start up focused on 3-d maps. they are designed to assist self-driving cars. these cars can steer through complex cityscapes. alex webb reports. >> if you are trying to control a robot, which is what we are trying to do, the robot needs to know within centimeters where it is with respect to its surroundings. >> a mile away from where google builds their maps, a 25-person start up is doing the same for robots. deep maps is building maps allowing cars to steer threw complex city escapes. >> we collect all the data. usually we will collect it over several runs of the same location. we will bring it into the cloud. we run a bunch of processing algorithms to create a single picture, unified of all the data. highll create a fairly resolution 3-d image of the area. can create a model down to the detailed accurac

it is a feature develop -- it is a feature available if you are in his amazon -- if you were in amazonr. this is why the tech giant is experimenting with brick-and-mortar concepts. amazon continues to open bookstores around country, and the most recent can be bono manhattan. we took a trip to check out the nearest bookstore on the block. >> amazon helps kill bookstore chains, and now it is trying to become one. the company since 2015 has been opening>> a handful of physical bookstores in places like seattle, san diego, and sick cargo. it just opened its seventh location in an upscale mall in new york city. people aren't moving away from buying physical books. physicall a lot of books on amazon.com, and we wanted to give them a new way to discover books. the discover to -- desire to find a book you love is a common desire. we felt we can make it easier and delightful. arethe books in the store rated four stars and above or bestsellers. there are sections for books that large numbers of people have added to their amazon wish list online. there are no prices listed on the book titles. you

take amazon for an example. two big moves in our economy over the next year or so are going to be how do you deal with artificial intelligence and how do you deal with cloud computing. amazon has led the way in both of those. i think you're seeing the advertising market going more and more to places like facebook and google. so what you're seeing is the underlying technology favoring these. >> what many trick are you using, walter? have we set a may trietric? >> it seems the stocks have groan a little faster than any metrics would have it. when you're talking me trilks, you say where is the growth going to be in the next two or through or four years and it's certainly going to be with companies that bring you out of the environment that's kind of sticky the way amazon and facebook do. they take data, big data, put it if the cloud, and is able to process that data and capitalize on it and ones ha use artificial intelligence. so the metric are not just financial metric or the normal, you know, trailing earnings-ty

. >> amazon was supposed to be overvalued. then alphabet, that was supposed to be ruined that you're advertise you're advertising against very bad -- >> that is why they account for such a large percentage of at least the nas 100. >>> results ahead of disney after the bell. discovery is already out reported a quarterly miss. pandora, a narrower than expected loss, but also announcing that kkr has agreed to invest $150 million in the service while it explores strategic alternatives, including a sale. kkr now a money in pandora, money in lyft? >> listen, it's private invest to public equity, $115 million, convertibility that gets 7.5% in cash. the thing is pandora needed the money. we skid wester about it. they did. they needed it. they got is it. i don't know why the market sees it as more likely -- guys, it's less likely. >> you're ruining the narrative. >> so. >> were they eries investigate rating. >> i don't know why that's a positive. >> this is -- >> a lot of $70 million ebitda. i don't quite follow this one. i take to mcf

amazon is also using its bookstores to get people to bring more amazon into their homes.ection for people to test drive the company's gadgets, like the kindle fire tv box that streams web videos to your tv. there are also kindle e-readers, amazon line of voice-activated home speakers, and other home electronics. >> customers have asked for it. they want to try it out. they want to see what does the smart home look like? what can i do to make my home smarter? how does the amazon music interact with the echo? what kinds of things can i ask alexa? they want to see it, they want to talk to the experts about it. we have brought that into the store. >> it is still not exactly clear why amazon is bothering with physical stores at all. its website is already the biggest bookseller in the world, and the popularity of shopping for books and much more on amazon.com has crushed bookstore chains like barnes & noble and borders, which went out of business a few years ago. amazon doesn't disclose sales at its handful of stores, but it is probably a tiny fraction of the company's $140 bi

she specifically pointed to amazon baby wipes, amazon batteries, products that amazon is branding itselfling to consumers. what impact is that having on the retail landscape? paul s.: it's having a big impact. when you get to private branded products, it just shows you the strength of amazon in the retail marketplace. not only have they disrupted the entire bricks and mortar retail, but they are starting to think about how they position themselves within the retail whent in certain verticals you think about amazon, jeff bezos has shown over the last 20 years that he will make any investment that he thinks will grow his business long-term, because he believes, obviously, that retail sales going to online will grow from today's average of about 7% to 8% to well over 10%. he needs to be part of that and be the lead player there. we've seen this company make tremendous investments across their businesses because they believe in the long-term story. paul sweeney, thanks so much for weighing in. the 16,000 financial advisors at morgan stanley are about to get some cyborg help. the new machine

that was amazon in 1997. it was teamed a revolution not unlike another one by the so called smart money crowd. the year was 1903 when the president of the michigan savings bank said this to henry ford's lawyer. the force is here to stay but the horse is a fad. and a movie producer said of entertainment that television won't last because people he get tired of staring at apply wood box. or the down of the computer when ken holtzman said there is no reason for any individual to have a computer in his home. who can forget, ibm dismissing the founders of a company called xerox. not just things but events. variety magazine on rock and roll in 1955. it will be gone by june. it wasn't. or "the new york times" on the prospect of space travel in 1936. a rocket will never be able to leave the earth's atmosphere. it did. many did. or a struggling actor of ronald reagan, a united artist, said after rejecting reagan, that he doesn't have the presidential look. the same folks who said that j.f.k. was too young to be presid

cvs is down off of amazon.vs runs their drug, but i think what's significant, apparel is much better than i thought. some of the children's apparel was very good so they have made some improvements. i don't want to go nuts. but you want to distinguish between some of these retailers that did better and some of them that did worse. target did a little bit better. >> urban of course misses and comps were worse than expected. another big retail story who has a scoop ear amazon taking so some -- about amazon taking steps to get into the pharmacy business. >> should you sell cvs off of that? people have been selling cvs off of anything. my charitable trust has a small part of walgreens. >> on the rite aid deal. >> yeah. how many people sold home depot hearing that amazon would get aggressive in tools and turns out that amazon did not get aggressive. professionals were the guys who landed at home depot. they went down at the end of the day. there was a feeling that today is a bad day because of chatter about washingt

it is amazon's aelectiona technology.company keeps you connected to your home while in the outside world. >> it's the combination of deep sensing and learning and makes it possible to understand what is what in the environment, that's a child, a dog, a person, a mother. lets us behave intelligently. you can literally say, hey, lighthouse, let me know when you see someone at the front door with a dog. emily: even though the connected home sounds great, it sounds like very few people have connected to their home because it is very difficult. what point does it become mainstream behavior? >> there are millions of home cameras out there and they provide a great service in terms of recording data and access to that data. making that data useful and giving you actionable information. and that's what people care about. we call this interactive assistant. you tell it what you care about and tells you when those things happen. emily: biggest tech giants trying to stake out their territory. who is it faster? >> amazon is the most i

amazon is also a media giant. it offers i.t. solutions.eff bezos is obsessed with data from customers but also from partnering companies. amazon has started to load trucks before we have even pressed the goodbye button. it is a powerhouse. >> the u.s. consumer spending, this is the biggest increase in four months, what can we take away from that? >> it is a good sign that the u.s. consumer is in shopping mode. talking about amazon, they will probably profit from it. much more than the traditional department stores that are struggling quite a bit. those numbers from consumer spending are also hinting that now in the second quarter, the u.s. economy micro about 3%. the u.s. consumer probably will be the backbone for the entire u.s. economy. >> thank you. >> the average budget airlines as it posted profit for the first few years. the dublin-based carrier says it expects profits to rise further mainly due to a fallen deal cost. there's actually declined last year. that has attracted plenty of passengers. high occupancy contradicted to the good

amazon is the leader, we all know mighty amazon, but the story is about walmart, the biggest retailern the world with a lot of assets, all those physical stores and warehouses and distribution centers. over the years, it never really deployed them successfully to kind of make headway online. the story is really about the investment, the best that current walmart ceo has made on the internet. i think they can be a serious contender, and they are doing some interesting things, particularly in these new developing areas like groceries. carol: they picked up jet.com and they also got their chief executive. and now he's in charge with everything, were a lot of things that walmart in terms of e-commerce. brad: right, mark lori is ironically enough a former amazon executive. it's the kind of back story that makes this so interesting. he started a company that a lot of people might know, not by its official name, but by some of its brands like wagged.com or particularly diapers.com. walmart try to buy this company in 2009 and amazon swooped in and grabbed it. mark lori worked at amazon for ab

we take on amazon next. bloomberg. ♪ emily: wal-mart's feud with amazon isn't just business. it is personal. wal-mart has witness visiting regularly sin the retail wrought jet.com. his goal is to help topple amazon's dominance in retail. we talked with brad stone, who did a deep deep in the ee commerce aspirations in the latest edition of bloomberg business week. >> it is still early. it has been less than a year. but the last quarter in february when we got a wal-mart earnings announcement, e commerce growth was about 28% or 29%. that is not only far above the industry average it is actually above amazon's growth rate. now wal-mart is starting from a much smaller base, but it was a promising sign. investors reacted well. the stock is up. there are reasons for optimism. what mesoraco lawrie has done at wal-mart.com, he has administered some of the medicine that wal-mart needed. he has broadened that marketplace selection, which wal-mart resilsed for a long time. he has done what is sort of necessary online i

amazon went live in the u.k.include discovery, by the way, nbac and others, and t get the channels, be a prime or prime video subscriber. a matter of time before we get this? >> if they swing the deals. the content companies are more willing to say, give it away overseas, but it's a little, again, same story, a night mare scenario where you become a feature of, by the way, what's prime? bundle. a different bundle, subscribing to something, assortment of services versus a tv bundle, but, you know, i think you have to experiment with all the platforms. >> exactly. >> it's not a bounty you're rushing for. >> channels, that's another thing to have. next, the clicker, the remote, may be no more. dish network customers can change the channel with a voice thanks to a partnership with alexa. i say, bring it on. >> well, you never lose your voice, at least not often, right? that's one benefit. i do think that it makes sense who gets to be the one to tell her what channel to put on? i can see the conflicts arising. >> yeah

that has some complaints with amazon.ant to bring you a few headlines from inside the meeting which just wrapped up. jeff bezos took the stage and one of the shareholders asked what he thought of warren buffett's comments at that annual general meeting and he responded and said that warren was his hero and he was deeply flattered by the comments and they were very meaningful to him. another asked whether a stock split was on the cards so other people could afford to partake in those returns that we have seen from amazon. he said they're thinking about it but they don't have any plans to do so. >> a lot of the focus was on where amazon is investing. its prime membership program, alexa, the virtual assistant, india and logistics. amazon is building up its airplane delivery system but we have here with me one of the pilots that is working on that push, now you are here and i know our audience, behind are 50 pilots. >> the airline industry as a whole is suffering from a historic pilot shortage which is trickling down to the v

>> well, when we think about amazon -- yeah, when we think of amazon going forward, wow, a look at thet look at the exciting things we have to look forward to related to core e-commerce. 5% of retail sales are amazon today in the u.s. it's such a small number. if we look at the opportunities for addressable markets going forward they haven't tapped into what could be well over a trillion dollar addressable market in grocery and furniture. think of everything they're collecting from a data standpoint. every time we talk to the echo, so they have reached the escape velocity versus the competition for data and fulfillment. look at that compared to the competition and it's no wonder they have done what they have been able to do. >> how much higher can they run, michael? >> well, we think there's a lot of room to go. i mean, i think if you look at the valuation perspective, the stock's still trading not that much higher than a lot of the peers and we think certainly, you know, our price targets 1,050 based on the six times ebitda which is reasonable concerning the addressable markets i ment

it's the best way to buy amazon, you missed amazon? you buy baba. i bought it recently at 111.s trading up 120. >> yes. >> that does it for us here on fast money. thanks so much for watching. we'll see you back here on monday. we have a rare and exclusive ei explain what that is. that's monday 5:00 p.m. eastern time here on "fast" "options action" starts right after the break. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. it's what busch is known for. what are you known for? oversharing. in fact, i have this thing. nope. nope. [sfx: buschhhhh] i did active duty 11 years.my in july of '98. and two in the reserves. 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

this is what amazon has to be about.re some of the enablers of the new wave of technology in the transition. this is what i think we need to think about in technology is not just growth opportunities but where are we going to get the stranded assets? you think about retailers. shopping malls, the stranded assets. or maybe parts of the auto industry as technology and autonomous vehicles begin to change the way that we drive in the future. ride sharing and things like uber. these are missive transitions really affecting all parts of industry and retail. matt: costing some c.e.o.s their jobs. we're going the talk about your stock pick and get a little bit more focused view now after this break. i want to quickly go to break here. andrew peary at hermes, we're going the talk about that. amazon reaching $1,000 a share and really a lot of these themes are similar throughout his investment. stay with us here on bloomberg. ♪ matt: out of the blue. sterling slips after a poll suggests the ruling conservative party could lose its

it's been 20 years since amazon went public. early investor and board member about the tech giant's wild ride. robert de niro plays in the new movie, and i sit with him and michelle pfeiffer to discuss their roles, feelings about the movie, and much, much more coming up. joining us today, our cnbc market commentator, and cole, and mark from alpine funds to kick it off. mike, how about some thoughts on the records? >> you know, the market is not doing anything in a hurry. it's just low momentum. it's starting, but it's still in this up trend, deaf in thely, when you sort out the positives, negatives, it has seemingly a slight positive bias. again, today, really low volume. look at the vehicle you in the big etfs, the spider and diamond, way below average. the default mode is upside. i think it's mildly encouraging. you have to get more distance between the old high and the new one over a couple days in the s&p before people say, yeah, something's changed herement we are broken out of the range. >> feels like it's a floor more tha

talking about is booming, amazon is certainly booming. $1000 pershare, it is amazon is certainly boomingr share, it is an elite group. amazon is certainly booming. $1000 per share, it is an elite groupm certainly is. this has changed a lot in the last few years. they have picked up speed because of various does. amazon's business model, related to the fact that all stocks have been doing quite well. that has been a pretty good environment. an elite group, how many companies are we talking about? it is really apple, a couple of others... it really is very small. moving on to the news that ariana grande is going to be performing in manchester, a tribute concert. slightly controversial, some families are not happy, they think it might be too soon. happy, they think it might be too soon. she has had some support from other pop stars. yes, some pop stars are lining up, some big names. this is such a big event within such a short space of time. as you have said, some families are not happy. this does say that many are happy. this does say that many are happy. this is a benefit concert, so this

as amazon is a self-insured employer.nd from there you might speculate that it could be a way for them to expand that out to get into the pbm market themselves. but, you know, who knows what they're going to do. it's possible they partner with existing players. they might crawl before they run or where they could go full throttle into this guns blazing. only time will tell and i'll keep my eye on this the next few months. >> all right, christina, thank you. that cnbc report on amazon. cvs, rite-aid and walgreens may be trading lower. managing director of health care, technology and distribution joins us. robert, great to have you with us. it would be a whole lot easier for amazon to buy as opposed to build. is that a possibility in this sector which has seen consolidation? >> yeah. there's a couple ways amazon could really go here. we've always lived with the theme that much easier to the value created here by managing the overall drug cost trend. if you're dispensing drugs, that's less value added. so i find it hard to s