cycle, of this product which will describe -- >> we will talk about david einhorn said. do not understand what they are trying to do. will they leave them alone or are they trying to reinvent a new company? kind of ecosystem. you want people to stay as long as possible in your ecosystem in until therel and resurfaces. everything i have done so far is to keep people on board. you are right, the valuation is high. the point is that sometimes whattors do not think of kinds of earnings growth you would get ahead of the valuation. abb earnings prospect is not as great as we anticipate. google had an extremely valuation. eight years down the road, the share price has almost tripled. today this is the kind of long-term investment you should see and i think the point is not the facebook valuation is sure or last year, the weather it will be -- but whether it will be five years from now. >> david einhorn is betting against tech stocks. at one hundredok times earnings. you have amazon in triple figures as well. apple is that their team times earnings -- 13 times earnings. if we ge

bill ackman, it david einhorn, is that a good trend? not see anything wrong with speaking out. do not think i would put david winters in the category with activist. he is a longtime shareholder of coca-cola and he has a big position and he does not like the plan and he decided to go public with that fact. it is perfectly proper to do. think he was right in terms of the plan being excessive. i do not agree with some of the numbers. >> another major shareholder rings -- another major shareholdings of yours is heinz. they have closed down plans. pretty effective results. >> we own have to stop. >> the warrants are pretty small relatively. it is the stock ownership that we have had his big. >> would you increase your stake in the company? >> we do not have the opportunity to. that is held privately. her sure has roughly half -- berkshire hathaway has roughly half. there has been no trading. there will not be any trading in heinz for a long time. >> don't they expire in 2018? they do not cost us anything. they will be exercised for sure, beli

david einhorn is short the bubble stocks. i bet if you looked at most hedge funds, they're leaning long trying to play catch-up with the market off that 1,815 bounce that we just saw. i wouldn't say that most guys are sitting here saying the market's going down. that would affect a lot of people negatively. >> i'll give you the last word. >> right now -- right now, they're probably leaning long. a day and a half ago, our friend from the commonwealth of virginia said he's pleasantly long. i think a lot of guys got pleasantly long, as well. what i'll say is they weren't pleasantly long at 1,810, but they are at 1,815, 1,870. there's still this big camp that wants this to go down. and when it goes down, they're going to lean the wrong way at the wrong time. that's what i'm concerned about here. to me, that's still paying to the upside. very short term. >> that's the last word. michael, good to have you on the show. >> thanks. >> steve grasso on the floor. thanks, sheila. >>> new home sales are reporting a major decline. up next,

green light capital's david einhorn reveals new stakes in sunedison and conn's.nvestors will join us by phone to talk about that. at delta we're investing billions of dollars, improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we'll raise it yet again. >>> a >>> a few minutes ago we brought you the news that new stakes are being taken in conn's, a friend of the show has been tooting its horn for months now. he joins us on the cnbc newsline, obviously, sandy, you've got to be very happy with this news? >> yeah, i think it's going to work out very well for shareholders. if you look, you know, just recently, the stevens family made insider purchases. now their stake is up to 12%. so it's going to have good company, and i'm looking forward to seeing what happens here. >> it's funny. today we had another hedge fund coming in and taking a big stake in dillard's. when you see value, and i know you could speak for david einhorn, but are you basing it on the actual retail? or is it a real estate play or both? >> you know, what

is david einhorn and the like dumb tourists? >> in this analogy. david understood that whenever he tried to do something in the market, the market moved. like someone knew what he was up to. in the same way that pension fund managers and mutual fund managers, when they tried to exit big orders, it is like somebody already knows that they want to buy. but he did not understand high-frequency traders were putting machines and exchanges in so that they can get price information in two second before him. can i finish my analogy? >> absolutely. get fleecedurists in the games, because they do not know the deck is rigged. the poker players pay the casino a cut of what is made. in this case, casinos are the exchange, the players are the high-frequency traders, and the tour group operators are the banks and others that handle the stock market. i think the analogy is pretty close. is that a rigged game? i think so. why are you so invested in the idea that this is fair, why are you arguing about this? >> me? >> you seem to be. is interesting. it is very clear

today's investor, warren buffett response to david einhorn. gmt tire, for this time, not . water, water, everywhere. the challenge is cleaning it and then you have to get it to the people who need it. how i hip-hop group is the revolutionizing how you are going to pay for usage. let's kick it off with what everyone is talking about, when you're president or anyone giving a news conference, you have to be quick on your feet. >> i absolutely would save mr. putin if you were drowning. i would like to think if anybody is out there drowning, i'm going to save them. to be pretty good swimmer. i grew up in hawaii. i'm a little out of practice. >> a little out of practice from answering questions like that. the president was asked if you would save a drowning vladimir putin during a joint news conference with the president of south korea. mind you, the country is mourning the loss of hundreds of people in the sunken ferry off the korean coast. needless to say, this was very awkward. in fairness, the reporter who asked the question was merely echoing a similar question that was put

datae waiting for little in terms of david einhorn's view.g to get ready for the nasdaq market for potentially a second tech bubble. interesting take. -- stockspo stakes are using the buzzwords. could be a rerun of 2000. sap, data 91 making that big call. -- david einhorn making that big call. be theogy seems to laggard in our market in europe today. more competition from the asian competitor names. along with that, things will get better post up trust it. that was the message from the ceo when he came in and sat down today. technology is just coming off the top and european session. back to you. >> manus cranny with the latest on the markets. tom keene joins us with a preview of "surveillance." guests an output of today. >> and they will be joining us across the day on bloomberg television to talk about any number of things. i'm most interested what mr. bill eichman has to say about allergan. i would urge everyone to read matthew levine. he is a terrific writer. we're going to look at the economy. ellen sittner will join us from morgan stanl

>> sure, we're looking at david einhorn, daniel lobe.rs where you see the long-term track record has really outperformed the s&p 500. they have to be billionaires and they have to have equities in their portfolios. liz: the food news for you guys, is that you just marked 100,000 downloads of this particular app. it is on itunes, correct? night is an iphone an android app. liz: and i-billionaire. >> yes. liz: i know you're in a quiet period before you launch the active-e tf and can you give us general discussion what the etf will have. >> 30 large cap u.s. stocks. liz: large cap? >> large cap. only u.s., not international or mid-cap. really what that gives investors a well-diversified portfolio of the biggest and best companies where these billionaires invested the most assets. liz: what is the fee? >> i can't really talk about that but it is all in the prospectus. liz: it will be in the prospectus. let me talk about fees in general. why not just buy a large cap u.s. index fund. >> sure. here is one, the performance is much better. you ca

david einhorn, said there is a clear consensus in his last letter to investors that we are witnessingtech bubble in 15 years. do you agree? >> i partially agree. the good news is the disruptions that are coming today, there are so many happening at once. loud, mobile, they data -- big data. taken together, every incumbent technology and vendor is getting disrupted and fundamental ways. they are accidental threats to businesses. there is a lot of opportunity for onto the nurse. that being said, the fund-raising climate was a lot more conservative than the last round. >> really? you are seeing a pull back? >> i would say there is an appetite for businesses that are growing explosively, but valuations have been pulled back a little bit in terms of multiples they are prepared to give you. >> give me some color there. when you talk about the funding appetite, what do you mean by that? >> it is the level of enthusiasm is similar, but there's a lot more at diligence done in terms of tying the business to reality and how this business will grow and perform in the months and years ahead. >> wi

investors like david einhorn say the tech will pop and 1 -- buffett says he will not go to silicon valleythet is not remotely like mobile that existed 15 years ago or whatever it was. we are not seeing total craziness or anything of the sort, but we are certainly seeing some companies go public at high valuations and private transactions. but i do not know those companies well. it is not just something you can go out with any piece of junk and call it.com and sell it at a huge price. we are not there. but i do not find myself tempted to buy anything coming out. >> and then there is housing. mr. buffett has been optimistic about housing and still is and thinks government should play a role. >> in the 30 year, fixed-rate mortgages is good for the american public area you will need public dissipation in some way to bring the cost down. think the american public will do way better with some kind of guaranteed instrument in the picture. i think that will be in the picture. whether you start an entirely new company and let freddie and fannie run often have a new company that in turn has governm

highly soluble, easily absorbed. >>> hedge fund manager david einhorn has a warning. >> david einhorn is making some waves in the market. this time, his letter to investors, a recap of the first quarter performance. in it he disclosed that green light capital had taken new stakes in a number of companies, including sun edison and appliance and home furnishings retailer kahn's. both those stocks are up near session highs. 10% on the day here. he also said that they continue to make money on their stake in micron technology, another chip company, and they lost money on their bet against keurig green mountain. the funds also closed out money-losing propositions on long positions in general motors as well as short positions in chipotle, as well as michael coors. einhorn also made mention of recently making a bet, and michelle mentioned this earlier, against a group of "high-flying momentum stocks." he also said that we're in the second technology bubble in the last 15 years, and that investors who are worried about the effects of high frequency traders should route their stock traders to

so add david einhorn to the chorus of warning another tech bubble. are witnessing our second tech bubble in 15 years. what is uncertain is how much further the bubble can expand. now, einhorn didn't reference any specific names but did say he's shorting a group of the so-called momentum stocks. he has done this before, on names that are not in the tech space. what does it mean now that he's saying it about tech? >> i think it's too simple to say it's a bubble. some of the stocks are expensive and some are not expensive. the nuance in all of this is the companies are diminishing profits to have massive growth, and they deliver or don't. look at netflix, right? everybody gave them a hard time for spending all that money. the first segments in international, already turn eed profitable. we'll see it in amazon. it's a matter of which companies are bluffing and not bluffing. >> he says he's identifying bubble basket, names that could see up to 90% downside once this actually corrects. >> yeah. >> do we have any of those out there in the market? is that a

david einhorn says companies he is betting against may fall at least 90% if and when the market applies traditional about uh and -- traditional valuation. i'me was are pretending intention paid in equity is an expense because it is non-cash. at&t's profit dropped slightly in the fourth quarter. undermpany added six 25,000 monthly subscribers, up from 296,000 from a year ago. the next program which allows customers to pay on phones rather than having a contract. amazon is apparently taking a sales hit. saysrchers at ohio state household of cut their amazon spending by it -- by about 10%. amazon sales of items over $300 have fallen by 24%. u.s. supreme court will be hearing the argument today what could be when the most important media cases ever. american broadcast companies against aereo. ereo uses tiny antennas to broadcast signals to subscribers without paying for it. network say this is copyright infringement since they are receiving no fees. aereo claims they are not subject to copyright laws because they receive it privately. aereo is available on a level in -- in 11 cities, housto

in his letter to clients, david einhorn says companies he is betting against may fall at least 90% if and when the market applies traditional valuation. he writes certain cool kid companies and analysts are pretending that compensation paid in equity isn't an expense because it is non-cash. at&t's profit dropped slightly in the first quarter. revenue was up 4% thanks to a growing wireless business. the company added 625,000 monthly subscribers, up from 296,000 from a year ago. at&t's "next" program which allows customers to make monthly payments on phones rather than signing contracts allows the company to pay less in subsidies. amazon is apparently taking a sales hit in states that collect online sales tax. researchers at ohio state say households have cut their amazon spending by about 10% in states where online sales taxes are collected. amazon sales of items over $300 have fallen by 24% in those states. now, u.s. supreme court will be hearing the arguments today in what could be one of the most important media cases ever. american broadcasting companies against aereo. aereo uses t

. >>> david einhorn is sending up a red flag warning that a tech bubble is brewing.n a letter to investors, the green light capital founder says there's a clear consensus we're witnessing our second tech bubble in 15 years. what's uncertain is how much further the bubble can expand and what might pop it. einhorn points to several signs of overexuberance. the green light says it's shorting a group of unnamed, high-flying momentum stocks. we're asking today do you think einhorn is right? tell us what tech stocks you think are overvalued. maybe there are some that will provide safety. what are you willing to buy? jone the conversation on "worldwide exchange." get in touch with us at worldwide@cnbc.com or tweet m @ me @wexkaren. >>> the two advertising groups have filed to get fiscal residence in the netherlands, something analysts believe could be a deal breaker. let's get out to stephan in paris. publicist stock sharing the concerns in the market today. is it likely the deal will indeed be knocked on the head? >> yes, that's the risk. the deal was organized, so that's

david einhorn. people who are actually managing money. all they want is a fair place to buy and sell stocks. queerre is no pressure to the game in favor of intermediaries. but goldman sachs did, this is where the story thickens. time theychs at the are putting the russian in jail for stealing their high-frequency trading code, they think they are going to get into the game. that is why they care so much. they had a change of heart. something is going on. something interesting right now. an argument about our role in society. can we function as an institution of people do not trust us? >> are they losing the trust of the public? >> i think they lost it way back. do they need to get it back? it is partly a practical argument. you could argue reputation does not matter anymore. all that matters is the brute force of the financial system. >> when michael lewis tells me debate is going on, i assume somebody has told him. >> yes. debate ism of this the argument around how they should behave in the stock market. some new guys came in and took ov

today's investor, warren buffett response to david einhorn. flat tire, for this time, not gm.calls and water, water, everywhere. the challenge is cleaning it and then you have to get it to the people who need it. finally, wu tang

maybe not as bad as 2000have no- melissa: david einhorn -- >> irrational, irrational exuberance, veryap money. you finally have a bursting of this stuff, twitter is not making money. a lot of these companies don't make money. people are coming down to, the valuations are starting to come down to some sort of reality. the scary thing, wall street is not saying this. the reason why wall street is not saying this, because they continue to do -- melissa: they want to keep doing ipos. they will not really talk about of the susan what is your opinion of twitter? >> i think that twitter is a momentum stock like wiley coyote came off the cliff. so that is typical of momentum stocks. and momentum moves from place to place. stocks that are up are dominion electric, caterpillar, wells fargo. stocks that are down are all the big high flying network stocks that were owned last year. amazon, netflix, twitter. melissa: john, is it an opportunity? whenever you see everybody hating on the stock, i always have to wonder is it an opportunity? >> not in a momentum stock, melissa. the only thing that matt

. >>> we've been talking about david einhorn warning we're in a second tech bubble.break down the stock movers today, plus a look at the tech high flyers, valuationses. all of that still ahead on a very busy "power lunch." stamps.com is the best. i don't have to leave my desk and get up and go to the post office anymore. [ male announcer ] with stamps.com you can print real u.s. postage for all your letters and packages. i have exactly the amount of postage i need, the instant i need it. can you print only stamps? no... first class. priority mail. certified. international. and the mail man picks it up. i don't leave the shop anymore. [ male announcer ] get a 4 week trial plus $100 in extras including postage and a digital scale. go to stamps.com/tv and never go to the post office again. but with so much health care noise, i didn't always watch out for myself. with unitedhealthcare, i get personalized information and rewards for addressing my health risks. but she's still gonna give me a heart attack. that's health in numbers. unitedhealthcare. improving everything fr

i don't know what david einhorn is looking at.ut when i look at people who like conn's, they're looking at a group of unbankable that are eventually becoming stronger. they have that market in texas. >> mary, here's why we wanted to bring it up. it's online, destroying everybody. we look at these companies that are either struggling or have already gone away. we look at older retailers. how do we know they see names will be able to do what others in the space have not done, which is amazon and survive, or at least prosper? >> well, number one, department stores have been the best in the past five years as a sect or, because they've created more proprietary brands. so that's the direct. i believe that's what the appeal is for particular department stores. >> can you really lump those kind of names all into department stores? you have sears and j.c. penney in that group. >> no, it's difficult. you have to rank them. >> i think the forerunners have been macy's j.c. penney, and dillard's an interesting opportunity. and they have a gre

david, is there another bubble part two, like david einhorn of greenlight capital, thinks there is in silicon valley right now? >> it seems like it's a tale of two cities. last year, there were 15 companies that raised venture capital valuations in excess of $1 billion. that's very different from what venture capital has been traditionally in the gold old days, and i mean 2007, 2008. it was typically, $4 million, $5 million for 10%, 15% of the company. so something is clearly happening. the average venture investment hasn't changed. it's telling us there's a handful of companies for whom valuations are getting lofty and for whom it's been relatively easy to raise capital, and for everybody else, it continues to be difficult, slogging three yards in a cloud of dust. >> yeah, tony, it's hard for me to accept, given the long-term optimism of silicon valley, that because a few stocks might have sold off or the qqq is down, that you guys will stop investing out west. i mean, you are the future. >> well, absolutely. i think all of us -- and, david, i came from your offices here, as you know

. >>> famed hedge fund manager david einhorn has a clear warning for technology investors. he thinks we're in a bubble. so wrong on gold, though. in a letter to green light investors he says there's a clear consensus we're witnessing our second tech bubble in 15 years. it's uncertain how much further the bubble can expand. including the rejection of conventional valuation methods, short sellers forced to cover their positions and a huge first day stock appreciation of initial public offering. einhorn says, we have to make sure that the exuberance doesn't outlast your ability to stay short. >> there are people that said even if you look beyond technology, looked at what happened with the markets with this m & a, that does indicate the bull market is getting long, too. >> right. >> it doesn't mean the end but it signals the next stage. that means more maturity. >> i like the notion that the cool kids are starting to get their compensation looked at a little bit. that's in the ft today, talking about eric schmidt, they're talking about jamie dimon getting $13 million or someth

here is a look at our top headlines -- according to david einhorn, we are in another tech bubble he isting against tech stocks that he thinks will fall up to 90%. does not say which stocks those are but you can figure those out. boeing has first-quarter earnings that beat estimates and sales rockets fell. -- sales profits fell.

today's investor, warren buffett response to david einhorn. gmt tire, for this time, not .re. the challenge is cleaning it and then you have to get it to the people who need it.

. >> david einhorn does not want to do this every day, two. >> these are the issues they saw before and they are not getting it. this goes to real money hands and when they don't, the hedge funds get blamed and i am not sure that they should get lamed. >> this is not going to be the last word in this debate. our reporter, cristina alesci. >> coming up, why investors may take a second look at fannie and freddie. we will take a look when we come back. ♪ >> welcome back to "market makers." i am stephanie ruhle with my partner, erik schatzker. it is almost 26 minutes past the hour so we are going to take you on the markets. >> we are looking at alcoa, and the long-suffering aluminum industry. it is forecast that aluminum demand will exceed production and the glut may be over, which was created by chinese output. alcoa is no longer in the dow first companythe in the s&p 500 report earnings. >> this may be a signal of what lies ahead. >> coming up, a new book looking at the scandal that rocked one of the nations most elite universities. price ofalk about the silence. >> eight years later. and

david einhorn says we are living in a second tech bubble.we were, and that bubble were to burst, it would be a terrible thing for your business particularly from the wealth management side. you look at valuations. this is part of your job so how do you feel about them? >> i think the difference if you go back to the late 1990's is we are seeing more substantial change in businesses and business models. for the most part, what you see is a scale to those businesses. anytime you have the opportunity to pick up that kind of customer base, it's transformative. do you need to be concerned about valuations? absolutely, that's our job and our role. what we also see in technology is the power of the global reach. we want to see a more solid earnings stream. >> is it easier to justify those earnings today rather than back in the 1990's? >> yes. >> you mentioned earlier that activism is a good thing or is helping to propel the m&a market in situations like valiant. >> it happened without a bank ing involves a that's not a good thing for bankers. >> wh

here is a look at our top headlines -- according to david einhorn, we are in another tech bubble he is getting that she is betting against tech stocks that he thinks will fall up to 90%. does not say which stocks those are but you can figure those out. boeing has first-quarter earnings that beat estimates and sales rockets fell. -- sales profits fell. dow chemical posted first warnings -- first quarter earnings. by results were driven bigger margins. and also by stronger sales in china. the company has not been very bullish on china's economic growth. with us is the dow chemical chairman and ceo. great to have you back. >> nice to be with you. >> what happened with topline growth? america, as you know, we had a very cold winter in the month of march with lots of transportation and warehouse carrier issues. our north american revenues were not robust but clearly the bottom line is what matters but i what -- but i would not read much about the topline numbers this time around. we saw growth in china and we sought europe beginning a decent recovery. we are very optimistic about that. give

. >> in the past couple hours we got the latest letter from david einhorn of green light capital and talked about some of his recent investles. one of them is sundesin. this is solar developer and green light said it took a large stake in the company and einhorn sited the declining price for solar is lest comesly and rising prices is one reason sunedison will be a leader. they're buying the stock, over 10% today. matt mentioned the phrma deals we're hearing about. one of them today is a bid for allergan coming from valiant pharmaceuticals supported by bill agoman who recently took a stake in allergan. the combined stock, $45.7 billion. it's around $153 a share and you can see allergan has risen above that level. netflix, we were talking about this yesterday, the company came out with earnings that beat estimates and added more subscribers particularly internationally, the numbers coming in better than estimated and also getting a lot of attention, netflix says it is going to raise prices for new customers later this year by a buck or two. the last time it tried to raise prices didn't

. >> asked if he agreed with david einhorn's of a possible secretary tech bubble, buffett said he doesn't always understand tech valuations. buffett rejects the notion the u.s. stock market is too fluffy right now, as the major indices re-approach their all-time highs. >>> coming up on "worldwide exchange," including next, bank of bonuses in the spotlight as barclays investors gather for the firm's agm in london. those details, next. we needed 30 new hires for our call center. i'm spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's leading job boards with a single click; then simply select the best candidates from one easy to review list. you put up one post and the next day you have all these candidates. makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter.com/offer2. >>> you're watching "worldwide exchange," bringing you busin

also like to talk to you a little bit about david einhorn.just out talking about how he sees a potential tech bubble building once again. he talked about the cool kid stocks and he means companies like a facebook or some of these big internet companies that have soared very rapidly. shorting a basket of these stocks now because he thinks it looks like it did back before 2001. you were somebody who didn't understand valuations at the technology companies back then. do you see similar characteristics to the technology stocks today? >> i don't think it's like -- the period prior to 2001, i don't. there's a lot of companies whose valuations i don't understand but that's always been true and then you get no a period like right before 2001 where you could almost sell anything and capitalize eyeballs and everything. i don't think it's reached that point and i don't think the general market level has got a bubble under it. >> that's an interesting point. we're not far off of all-time highs, probably less than a percent for the dow and s&p 500. you do