outside of the political element, oil and gas, what about grub hub is that short?n a restaurant. brants of palestine. we try to discourage people from using the services because once it leaves our hands, it's out of our hands. it is more useful forecast food. you are telling me going out to a restaurant is disappearing people have to get out of the house. it doesn't seem like this brilliant groundbreaking idea to me. >> forget about being a trader, you are a restaurant owner why do you discourage it >> does it get colder do the drivers stick their fingers in the fries. >> we were getting bad reviews over the delivery. we posted saying, please, it is in our best interest not to use these. >> 28% or all of them said they had sampled some of the items on their way to the person's house. >> if you get brant's food in your car, there is more incentive to sample it >> could a drone deliver everything why wall greens may be teeaming up 508 the number of apple stores tim cook is peedexct to make an appearan appearance coming up every day, visionaries are creating the futur

. >>> famed short seller jim chen os betting against grub hub.e delivery company faces major competition and labor issps and doesn't hel th the restaurant business overall is stagnant. >>> right now grub hub is makin almost no money per order. something like 15 ces an order. and there is no margin in the business. and youbu basically put two mor hands outstretched for the restaurant guy saying pay the delivery company. pay the driver. for money thathere really not making. >> shares of grub hub slid 5%d o 60.51. >>> wahl green the first to test on demand drone delivery services. the pilot c programducted in conjunction with alphabet drone delivery service called wing. the program will deliver food, beverages and overnt over-the-c medications but not prescriptions wgreen's rose a fraction. >>> truck maker and a half i star will idle production of commercial trucks f general motors next week. they say due to the labor strike it willun out of parts for gm instruction foam. and a half i sr assembles the trucks for gm at a plant. and a ha i star rose 1

jim chen ohs soak spoke about two shorts including in grub hub. the stock fell sharply after he criticize the the company for making almost no money per order. he said he was short a kidney dialysis company leon cooperman says he is long energy and and another bullish on uber on soviet bank disney is his largest holding direct to consumer stream. >> leslie thank you. leslie picker at the conference all day there in new york city which pick would you go with or go against grasso. >> i agree with chen ohs and grub hub the competition is way too tight for them and there's -- becoming such a commodity advertised business process. they were the darling and now they are thrown out. i don't know how much lower it can go but it seems everyone is lining up to be negative on grub hub. >> you have amazon delivering food and uber eats and both are linked to lose money on everything they sell. >> i'm not sure anybody perfected the business model but the valuation is what you can go after in the environment where the competition is coming from all sides good fo

." >>> coming up, grub hub, uber, and other big take big take aways from delivering alpha.tunities in tech next. >>> and first, shares of roku, some investors turning it off on the back of a downgrade at pivotal. on pace for the worst week and ckn montceerdemb ba ia me at fidelity, we believe your money should always be working harder. that's why your cash automatically goes into a money market fund when you open a new account. just another reminder of the value you'll find at fidelity. open an account today. of the value you'll find at fidelity. the amount of student loan debt i have i'm embarrassed to even say i felt like i was going to spend my whole adult life paying this off thanks to sofi, i can see the light at the end of the tunnel as of 12pm today, i am debt free ♪ not owing anyone anything is the best feeling in the world, i cannot stop smiling about it ♪ >>> from recession fears to yes, i am -- ipos, leslie picker joins us. >> throughout delivering alpha, a big theme was whether the public markets and ipo process specifically is working the way it should. >> if a

well, the man behind grub hub and venmo is here to explain exactly what's going on in the ipo market. >>> we are less than an hour to the closing bell. i'm ashley webster in for liz claman today. let's begin "the claman countdown." ashley: just take a look at the numbers. stocks extending their losses in this final hour of trading, as headlines crossing from the chinese foreign minister, who has been speaking at the united nations, mainly about tariffs and provocation. he says the trade war may even plunge the world into recession. ominously adding quote, the lessons of the great depression should not be forgotten. that obviously does not do great things for the market. and this follows the report today that the white house is thinking about de-listing chinese companies on u.s. exchanges. this promptly sent the crane shares china internet etf, one of those baskets of stocks that carry chinese shares, as you can see, down almost 5%. there you go. down two bucks, 4.69%. and the u.s.-listed stocks of chinese firms also hitting session lows on the news. everyone, throw alibaba in there, c

according to grub hub. no, it's nothing to be proud of. out of all the many

according to grub hub. no, it's nothing to be proud of. out of all the many states we have, and i think we're up to 50 now, our state, california, orders the most pumpkin spoic pm stuff of anyplace. california, oregon. i am sure it's a coincidence we have legalized marijuana. i love pumpkin pie, one of my top three favorite pies, but i don't understand all the pumpkin spice. it's in everything, like bedbugs. every year, since starbucks started this, there's a new and hard-to-believe pumpkin spice product. and this year, that product is pumpkin spice spam, which goes on sale monday for a limited time. they're only going to sell it until somebody dies. and then, and the saddest part of it is, i'm going to try it. i'm going to slice into a sweaty block of meat that tastes like a season seasonal glo seasonal gourd, and i'm going to eat it. i'll start trimming my beard with pumpkin spice beard oil, apply pumpkin spice balm to my lips. these are real items. we didn't make these up. there's pumpkin spice pseudo pso cue. pumpkin spice latte. pumpk

it feels like the online food delivery space where grub hub was the great investment but became a real dog when others started moving in on their territory, which is why it's very hard to recommend i think they under priced the smile direct deal too aggressively, misjudged the demand, something that starts happening near the end of an ipo cycle like we've had, not the beginning. maybe this isn't a great time for ipos of companies with revenue growth and profits i don't know what right price is for stdc, i do know i wouldn't pay more than $16 in change for it mike in florida, mike. >> jim, it's great talking to you. >> same. >> i would like to ask you a question about the stock real real you mentioned the stock a couple of weeks ago, and i agree, their business concept certainly is excellent, but on august 30th, two law firms put out shareholder alerts on this stock, and this was related to their ipo and the firms are investigating potential violations of the security laws, but what's interesting, it seems to be having absolutely no impact on the stocks because since august 30th, real r

. >>> wlbl to "the closing bell," everyone i'm wilfred frost here at the grub hub post.alpha conference highlights are coming up broader market treading water with 59 minutes left to trade. >> welcome, everyone i'm sara eisen let's look at what is driving the action right now trade talks taking place in washington but some hawkish quotes from the u.s. side weighing on stocks upbeat data from the labor market pointing to a steady economic picture and yields lower pressure on the short-term spending market eases a bit.

shares of grub hub, they are fall iing because jim cnenos to cot wapner and crew he is short the stock. saying some fees will come down. employee costs are going to rise as well. that was announced at delivering alpha and they're down 6%. u.s. steel son pace for the largest percent drop in more than a year. the company giving a weaker than expected outlook and noted that the market conditions have softened a bit after a brief recovery of course throw in a tariff related comment here and as bob mentioned at the toch the show, data dog continues to soar it's a new stock this is its first day of trading. it's a cloud software company. they've priced their ipo at 27 and they're doing very well today. all right. now let's get a step outside with the world of money and business and go to sue for a cnbc news update >> thank you so much, brian. here's what's happening at this hour, everyone president trump is asking a federal judge to block an effort by new york prosecutors to obtain his tax returns trump's attorneys filed a lawsuit today in u.s. district court saying it is intend ed to addres

we call them grub hub or tablets. they're gaining $5 billion a year in market share.they're up to 25%. they charge user rates 25-30% fees. it's been in all sorts of news in the districts because i'm sure all of us read the articles about restaurants all the time. about how many places are closing because of that. or they don't realize they're losing money for several months, several landmark restaurants in san francisco have closed and they lose money while they do that. they're subsidizing, running ads. don't ruin your night by going out. that's $100 million advertising against the heart of the city. and these are small mom-and-pop businesses, with local artists that meet and try to make ends meet. they're virtually integrating. they're opening kitchens. 16 kitchens that are owned. it's like crop-sharing, but for a kitchen, and you have to use their platform. it's really what it is. it's user-risk to people. and the virtual restaurants don't exist. they're taking the tips away from people. and then there is new technology, starbucks in the castro permit was to sell 2

we have seen a dramatic expansion in at-home dining, courtesy of grub hub, uber eats, but there's a lotcompetition. not recommending them. video games resonate, it's all about convenience and bargains you can spend 60 bucks downloading a game and get a hundred hours of entertainment out of them. frankly, wish i never had to figure out these companies when you look at the anemic growth of old brands or newer one, you need a ruber for what the millennials want, and you know what i just gave it to you. stick with cramer. >>> take control of your financial future with the new madmoney.cnbc.com, cramer's exclusive interviews, full episodes, analysis, even your own sound board, plus special access to mad money 101 with rules and techniques to break down the market for all investors. >> the red flag that makes a stock drop immediately. >> everything you need right when you need it, the madmoney.cnbc.com. (soft music) - when i see obstacles, i create opportunities. - when i see adversity, i find a way. - when i hear never, i say now. - [announcer] southern new hampshire university is education

. >>> wlbl to "the closing bell," everyone i'm wilfred frost here at the grub hub post. the delivering alpha conference highlights are coming up broader market treading water with 59 minutes left to trade. >> welcome, everyone i'm sara eisen let's look at what is driving the action right now trade talks taking place in washington but some hawkish quotes from the u.s. side weighing on stocks upbeat data from the labor market pointing to a steady economic picture and yields lower pressure on the short-term spending market eases a bit. joining us for the hour stephanie link from nuveen, a tiaa company so we lost the gains is it on fears ha a trade 2k5e8's getting pushed snout is the market expecting a trade deal at this point >> i think we're a little more optimistic about a trade deal most recently and that's why we rallied as much as we did and that's why rates actually increased over the last couple of weeks but yeah, i think the commentary today about trade kind of pushed us down. but i really think we're still trying to digest what the fed said yesterday i do think it

and a lot of them don't realize that that works out to $2 an hour that's being harmed by the grub hubs and ubers and lyfts we're getting pressure on the top side in that rates are coming down as restaurants increasingly play the delivery companies off on each other and the restaurant business is a tough business and as i mentioned, in the piece that was posted last night, even if this works and all four of these delivery companies grow to 20 or 25% of all meals, you are growing into a no-growth business you're growing into the restaurant business. and right now grubhub is making almost no money per order. something like 15 cents an order. there's just no margin in this business and you are basically putting two more hands outstretched to the restaurant guy saying pay the delivery company pay the driver for money that they're really not making. >> they won't be as aggressive as uber because they don't have the financial where withal >> a friend of mine -- grubhub is locked in a cage with a psychopath with an ax. >> which is uber eats? vrge >> yeah. >> there's a movement legal and otherw

asare growing twice as fast debris and grub hub. if you take the necessary steps to prepare your company to go , we deal with it the same way we have done always. make the smart decision. that is what we do. >> there is quite a bit of overlap with customers using multiple brands in the space. location,ses, in some the lack of brand loyalty, does that naturally lead to other factors, to more consolidation in the space? is that inevitable? youhere is an overlap, but will see that the overlap is between post mates and any of the other apps because we are very focused on the millennial customer. 60% of customers are female. we put a lot of effort into what the company stands for. wehad a customer base that like and that is very unique. >> what is the reason for the popularity and l.a.? you had a large market share there specifically. >> they think it is cool. in silicon valley, nothing wows us anymore. -- -- at door l.a. andhe first and it gave people a superpower. people have a limited time and they discovered the application five or s

we are growing twice as fast as he reads, as grub hub. i think people noticed that. if you take the necessary steps to prepare your company to go public you will get inbound. and we do with all inbound request the same thing we have done always appeared we look at it and make the smart decision. that is what we do. >> there's quite a bit of overlap with customers using multiple brands in the space. cases at someme locations at least, maybe not in los angeles, but at locations does the lacko brand loyalty naturally lead other factors -- the lack of brand loyalty does that naturally lead to other factors in the space. see the leastl overlap is between postmates and any of the other lap. -- other brands. we are very focused on the melinda customer. 60% of our customers are female. -- we are focused on the millennial customer. 60% of our customers are female. we have a lot of exclusive merchants. we have carved out a customer base that we like and that is very unique. >> what is the reason for the popularity in los angeles? you seem to have large market share their speci

so every restaurant wants to be on your hand-held device now, in addition to the grub hubs of the worlduber eats of the world. so if we look out five years from now, seven years from now, we think a lot of that is going to be chipotle. today, starbucks, dominoes, maybe a couple third party delivery aggregators. there's one more app that will be on your phone, chipotle. what that means is we will ha have -- stuart: i'm real short on time. what's your target price for chipotle? >> $980. stuart: whoa! it will go up another $200. what's the time frame? >> 12 months. stuart: okay. we hear you loud and clear. up 200 bucks on chipotle within 12 months. nick, thanks for joining us. always appreciate it. >>> want to get back to apple. big announcement yesterday. they revealed this new streaming service. they didn't reveal it, they priced it. $4.99 per month. that undercuts netflix and certainly undercuts disney. plus with a $5 per month, that's the price, $4.99. come in, kirk knudsen, our cyber guy. i like the price, $4.99 a month. is that going to be a problem for disney and netflix? >> you bet