taylor: that was the peloton ceo john foley.o discuss the company's first day of trading, i am joined by our guests. crystal, let me start with you. down 11% today, what was the biggest concern from investors, why it closed so much lower than where it priced yesterday? >> during the roadshow, it has been a pretty binary story. you other have a bunch of people who believe that pellet gun will change the entire fitness -- ton will change the entire fitness landscape and how people work out and think about workout, or you have people who think it is a business model they cannot sustain, that that has been a story in the investors mind. you either believe it or you don't. that has made for interesting dynamics in the pricing, because you have a bipolar set of feedback from investors, so that is probably why we are seeing that the deal is struggling this morning. and we were seeing the price fluctuate in the morning and at the open at the end of the day closing below. but more of the criticism has been the profitability of the compan

we hear from the ceo john foley, who cited disappointment.lus, micron reports, shares fall after hours after gross margin and profit outlook nest estimates. -- ms. estimates. departmentstice launches its own facebook probe as the social network is the focus of a federal trade commission investigation. story,st to our top peloton falling 9.5 percent after raising more than $1 billion in its u.s. ipo. it is the latest unprofitable startup to struggle in its trading debut, but the ceo john foley remains upbeat about peloton's future. he spoke with jason kelly at the nasdaq. >> we are playing the long game. millionsis as building and millions of subscribers around the globe in the coming years. now we have the money to do that. after fully funded today's primary, so we are feeling confident. >> when you think about the last couple of days and weeks, you mentioned the market. it is a tricky ipo market, to say the least. do you have a sense of where the miscalculation was? fundraiser --a eigth fundraiser. there are people who believe, and those who

taylor: that was the peloton ceo john foley with bloomberg's jason kelly.nd this week brought pretty of turbulence to wework. co-founder adam neumann stepped down from his ceo role tuesday in a move designed to salvage the company's planned ipo. the co-president and chief financial officer and sebastian gunningham, the vice-chairman, were named co-ceo's. i discussed the executive shakeup brett wallace and gene munster. >> i think the writing was clearly on the wall that this is where the momentum was. my reaction is to think of this in three chapters. there is the past and things that happened that were very good with wework. leadership was not as good. the leadership had a lot of the power that built the company. then there is the present, and i have to applaud everybody involved in how smooth this is going so far. if you look at the clock, it was just a few weeks ago this started, and they already have some replacements, temporary or permanent. adam, the way he stepped aside, was respectable. and so, i credit the company for that. it is different from how

jason: i amt the -- at the nasdaq with john foley and you guys have been talking about the ipo today. it came out, you just addressed employees, what did you say to them? john: i said we are building one of the consumer brands and media companies for the ages. members and weng now have a lot of money on the balance sheet to create all of our hopes and dreams and influence lives and allow people to live better lives around the globe. jason: disappointed with how it came out in terms of the first $29e when you sold it at and it opened at $27? what did you make of that? john: it is an interesting time in the markets. there are a lot of political things, business things, anxiety. the markets are on edge. i do not have to tell you that. some disappointment, but the biggest thing is we are playing the long game. millionsis as building and millions of subscribers around the globe in the coming years. now we have the money to do that. we are fully funded after this primary, so we are feeling confident. jason: when you think about the last couple days in the last couple weeks, you think about

john foley live >> fresh this morning, the latino impact to the u.s. gdp.orate leaders on a huge business week that's not even over yet former aol c.e.o. steve case will talk about ipos, we work and much more. the fienlt hour of "squawk box" begins right now ♪ ♪ >> announcer: live from the most powerful city in the world, new york this is "squawk box. ♪ ♪ >> good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm joe kernen along with becky quick and andrew ross sorkin the futures have actually picked up a little steam, um 80 now on the dow. the nasdaq indicated up 8 1/2. the s&p indicated up about 7 treasuries, the real treasury story was maybe a month ago. we've been stuck around 1 #.7 for a while. it's something to watch if it either heads to 1.5 or back to 2. today going on 1.7 >> big ipo, fitness bicycle maker and treadmill maker peloton making its debut on wall street, ticker pton. it's the top of the original range valuing the company at $8.1 billion joining us first on cnbc is peloton c.e.o. j

listen to john foley talking about peloton's earnings. >> you think that we are losing money.i -- semantics, but i call it investing. we're investing $50 million in a new studio in midtown man hat t.a.r.p., $50 million in london, $100 million in a headquarters here in midtown manhattan where we will have thousands of the best software engineers and marketers and finance folks all in one building. so these are investments, you know? fixed cost leverage, our subscription mar win was going to go well past 70% as we scale the investment. >> reporter: don't you think your investors, now that you are a public company, might demand profits? >> eventually, of course, yes. i mean, i think we're filling in 23, so we, we're going to get there. >> reporter: so we're going to get there, that's what the ceo of peloton says. that day will be 2023 in his words. but i thought it was fascinating he said that earnings are just semantics. sec may disagree with that. instead of bringing the money to the bottom line, instead they're investing in studios to make the very kinds of videos that you're

jason kelly sat down with ceo john foley shortly after its trading debut. hn: we are playing the long game. we see this as literally building millions and millions of subscribers around the globe in the coming years. now we have the money to do that. we are fully funded after today's primary, so we are feeling confident. jason: when you think about the last couple of days and weeks, you mentioned the markets. i mean, wework is on everybody's mind. it is a tricky ipo market, to say the least. do you have a sense of where the miscalculation was? if there was one? john: i tell you, jason, this is my eighth fundraiser for peloton. people either see it or they don't. there are believers and nonbelievers. those who believe, who have invested in peloton, they have been very, very happy, and they -- and we will continue to delight the capital partners who invest in us. jason: you mention fully funded. what will you do with that money? what does expansion look like? john: we are building a $50 million streaming television studio in new york city, nother in london, wh

taylor: that was the peloton ceo john foley. with bloomberg's jason kelly.is week brought pretty of turbulence to wework. co-founder adam neumann stepped down from his role on tuesday to salvage the planned ipo. the copresident and chief financial officer and sebastian cunningham, the vice-chairman, were named co-ceos. i discussed the shakeup. >> i think the writing was on the wall. this is where the momentum was. my reaction is to think of this in three chapters. there is the past and things that were very good and things around the leadership that were not good. the leadership had a lot of the power that built the company. then there is the present and i have to applaud everybody involved in how smooth this is going. it was just a few weeks ago this started and they already have some replacements, temporary or permanent. adam, the way he stepped aside, was respectable. so i credit the company for that. it is different from movers -- uber's. then there is the question about the future. to circle back and talk about the timing, i think it is unlikely that an

if it goes as expected, it will make its co-founder john foley a very rich man.nda: obviously, this was kind of his vision, a lot of romance to this, tom, and yet we're in this atmosphere where the appetite for money-losing seems to be dwindling for investors. is there any conversations inside peloton about reducing the cash burn? tom: absolutely. that is top of investors mind right away. spending $2000 for a bike, $4000 for a treadmill, where is that demand coming from ? peloton is trying to reassure investors that the fitness space is one of the hottest markets out there, and they are making the case, our offering is something that people will happily pay for, and they will point to their 1.4 million subscribers already and say we think we can grow this many times. shery: i find the origin story fascinating. they started with a crowdfunding campaign. tell us about that. tom: back in 2013, the company was set up but they needed more funding to get the bikes they were prototyping into manufacturers. so they went out to prospective said,s on kickstarter and you ca

. >> john foley was on squawk, saying we are prioritizing growth over profitability.message worked. maybe it is not about this business model, just the market's tastes have changed. >> it has gotten more disciplined. wework was a big wakeup call i have to say, i have never seen a big deal like that, that the market just rejected, flat out, right up front, saying no at any price. and i think you dig into the economics there, it is way harder to see how the model works than ultimately how this works, which is you back off on marketing, you're doing okay >> do you think there are any reasonable comparables for a company like peloton i ask that, the preipo filing described itself as technology, media, software product, experience, retail, apparel, and logistics company. >> this is vertically integrated, but again, weakness of the home exercise market, you sell a rowing machine or bike, that's it for 10 to 15 years, even if it is unused in the corner, no additional money. if they found a way to actually keep people engaged in their houses, it is much more convenient than a

using thousands of songs without proper licensing that lawsuit filed by downtown music publishing john foleyill be on. and cnbc parent company is an investor in peloton. >> the music is a big deal i've got one i don't get on as much as i should they say, this is an 80s music ride country or whatever i guess the artists would like to be given some cut >> they tout themselves as an entertainment company. as it grows more popular, the a artists will want their own cut. some of their popular instructors have moved on. there are people who do this on their phones what is to say instructors couldn't reproduce that on their own with their own following >> they become their own stars a couple have left and maybe starting up their own thing there. start me up. we can't say that, we don't have right. >> don't sing it >> nobody wants that thank you. still on deck. >> hold on to your butts >> that famous line from jurassic park, holding a clue to the new vocal make over. why a small italian umplmer with a led foot is helping a japanese company beat competition on line ♪ ♪ i've been a caregiver for 20 ye

john foley helps highlight the bike and treadmill at a luxury hotel in new york.id subscribers will to continue the peloton while traveling. in june, they had bikes and 700 hotels. this year's sales -- trading debuts thursday. coming up, apple is making a supply chain shift amid the u.s.-china trade fight. where they are building, when, and why, next. roku shares in vocus. we dig into the company's fundamentals. this is bloomberg. ♪ here, it all starts with a simple... hello! -hi! how can i help? a data plan for everyone. everyone? everyone. let's send to everyone! [ camera clicking ] wifi up there? -ahhh. sure, why not? how'd he get out?! a camera might figure it out. that was easy! glad i could help. at xfinity, we're here to make life simple. easy. awesome. so come ask, shop, discover at your xfinity store today. taylor: this is "bloomberg technology." i'm taylor riggs. now for the latest on trade and tariffs. apple says the next version of its mac pro desktop will be assembled in texas after the company received tariff waivers. the company on friday was rented

we hear from the ceo john foley, who cited disappointment.es fall after hours after gross margin and profit outlook nest estimates.

john foley helps highlight the bike and treadmill at a luxury hotel in new york.e said subscribers will to continue the peloton while traveling. in june, they had bikes and 700 hotels. -- trading sales debut thursday. coming up, apple is making a supply chain shift amid the u.s.-china trade fight. where they are building, when, and why, next. roku shares in vocus. we dig into the company's fundamentals. this is bloomberg. ♪ devices are like doorways that could allow hackers into your home. and like all doors, they're safer when locked. that's why you need xfinity xfi. with the xfi gateway, devices connected to your homes wifi are protected. which helps keep people outside from accessing your passwords, credit cards and cameras. and people inside from accidentally visiting sites that aren't secure. and if someone trys we'll let you know. xfi advanced security. if it's connected, it's protected. call, click, or visit a store today. this is bloomberg technology. i'm taylor riggs. now for the latest on trade and tariffs. apple says the next version of its macro deskto

we hear from the ceo john foley, who cited some disappointment. micron reports shares fall after hours after gross margin and profit outlook miss estimates.

get the music they want, they're not going to be able to grow a fitness market the other thing, john foley said this this morning on cnbc. 34 million people own a treadmill but don't have their software that's where the business opportunity is but why is someone going to download a class if there's crappy remixes of the songs and users are really angry about it right now. >> yeah, it's one of the main things you hear about because people are loyal with the service, but with the caveat being they love their music. bob, this isn't just about peloton's business model this has been a tough week and now a tough year for ipos. >> yeah, and there's a lot of pushback on price. not so much about whether the company is good or bad, it's a good company, but how much are they willing to pay for it we had this problem with smile direct priced above trading well below couldn't make it out of the some of the software ipos endeavor, which is supposed to price, they lowered the price. they believe the private valuations should be used in the markets and apparently, the public do not agree with the bankers.

here is what the ceo of john foley told me about that. listen. >> we have doubled the company every year since we have been in existence. the triple digit growth, the law of large numbers would say you can't continue that in perpetuity. this is hyper-growth company. we planned to be one of the special growth stories of the next decade. reporter: in addition to that he also said fitness is not a fad. we can change our business anytime we want to. i have to tell you this company expected to be public by 2023. that is what the company says in the meantime. they're spending a lot of money on two new studios, one in new york, one in london. $100 million on new offices right here in new york city. back to you, susan. susan: gerry, thank you so much. peloton's debut compared to other recent ipos. on average we had a lot of high-profile disappointment on average we're still up 18% if you strip out beyond meats. beyond meats can excuse everything, a outlier up 450% this year. uber and lyft still above their ipo pricing. crowdstrike was pretty good

still, ceo john foley tells bloomberg he is upbeat. >> we are playing the long game.ns of subscribers around the globe in the coming years. now we have the money to do that. we are fully funded after today's primary, so we are feeling confident. >> when you think about the last couple of days and couple of weeks, you mentioned the markets. wework is on everybody's mind. it is a tricky ipo market to say the least. do you have a sense of where the miscalculation was? >> this is my eighth fundraiser at peloton, and people either see a door they don't. so there is believers and there is nonbelievers. leaved, --that have that have believed and have invested in palo thanh -- in peloton for years now are very happy. >> you mentioned fully funded. what does expansion look like? >> we are building a $50 million television streaming studio here in new york, another studio in london, we will hire foreign language instructors. german language instructors are being hired to stream to a german market which we open in, i think, 60 days. we are investing in new content, new verticals

. ♪ >> this morning ceo john foley talked about the company pricing above its range. >> we want somemething on the table in pricing. my cfo said we don't want to be dollar smart >> let's bring in analysts very good to you all tony, i'll start with you do you think peloton will prove to be just a fad >> i think it will be all right. 1.2 million subscribers is a pretty substantial number. i enjoy the piece of equipment and i think the fan base is going to continue to grow. people seem to love it i think it's priced right. you get what you pay for whit comes to that piece of equipment. i worked out the music licensing issue. that will be fine as well. this is a little blip. first day. i'm not worried because people love it. >> michael, you have done research into the stock. this was a valuation issue why do you think it had this kind of performance? >> yeah. i was honestly very surprised by what it did. you know when it opened up and i think it's been a banner year for ipos and i don't know if there's fatigue there and investors are being more choosey in what they participate in. but, y

i'm not sure i thought about it not sure john foley who started peloton has always been a friend anded very hard. >> he has. >> finally, fly wheel and going public. >> yes. >> will there be a connection there one day? >> i don't know. i never say never. >> does it depend on how this goes, maybe? >> i think that will be one factor. >> certainly driving investor in into into the space. thank you. >> thank you for having me. >> her book is out now came out -- >> last october. >> and is a good look at the industry. >> absolutely. >> thank you. >>> when we come back, shares of beyond meat surging after an announcement from mcdonald's we'll tell you what it is. speaking of food, blue apron mpy.turnaround strategy for the coan "squawk on the street" will be right back dow is down 62 don't go away. orlando isn't just the theme park capital of the world, it also has the highest growth in manufacturing jobs in the us. it's a competition for the talent. employees need more than just a paycheck. you definitely want to take advantage of all the benefits you can get. 2/3 of employees said that the

. >> the ambassador john foley said he can no longer represent president trump and still hold true tothe value that makes this country great. among the policies he listed were the muslim ban. in the end, how many diplomats and officers assigned to this protesting the ban? >> we don' >> we don't have an exact number for you. >> will you be able to get back that number by how do you respond to the claim that the officers have t to get the waivh your office? >> i would say as i said before, the officers make the determination of the first two, national interest and undue hardship and at the security check is conducted back here in washington. you are saying that his claim is false? >> how do you respond to the claim that the officers are implicitly or explicitly pressured to deny the waiver's? >> we are not pressuring anyone to act in any way contrary to the wall. >> how do you respond to the claim shared by all the people that signed the memo that the ban is that the trail of american values? >> he's certainly entitled to his opinion on that. was the role in formulating the reiterations

. >> right >> john foley, the founder, is still very involved.tinue pushing innovation they rolled out this treadmill i tried the treadmill. it's not incredible -- the best treadmill you'll ever be on. >> right >> so i think peloton is an interesting unique animal that has those cross-over element >> apple to category, high use and good experience. >> general profits go to the premium brand in a space smile direct, we're sort of the premium company some people call candid, that only uses orthodontists. one of the things that smile direct has been, you know, has had issues on -- >> one of the questions about. >> so we've sort of taken a different approach, have a higher end product and i think with peloton and candid and those kinds of companies, if you have a premium brand, i think the bulk of profits just like apple has it in the smartphone category >> john, thanks a lot. >> thanks for having me. >> when we come back, we're going to be talking to former fda commissioner scott gottleib. he will join us in the next hour to talk more about the trum

build roads i want to build bomb bombs absolutely wellman how about this on and off camp david foley and john bolton's exit how must the usa look to other nations friends and foes alike let alone the taliban well i don't think it was a very popular proposal busy they came up with the united states came up with with the u.s. ambassador who helped negotiate it there was no guarantee that the taliban could give us to insure against al qaeda or isis from using afghanistan as a base they also were still refusing their reneging and wanted to talk to the u.s. installed government it was really a nonstarter trump i think was just looking for a way out of it and i think he was right but the reality on the ground today is we cannot leave in fact i wouldn't doubt that we actually increased troops as well as private military contractors going in there and and maintain that presence at one time that might have been possible but no longer if there is such a thing and the way you are talking there may not be but if there is such a thing describe us success in afghanistan. the u.s. success has been to blunt

. >> true to his word, jihadi john murdered james foley on camera. >> i get a phone call, i pick it up the president's counterterrorism adviser, and she says, there's a video of jim foley and she's narrating it. andic he ii i can hear her sayi they're holding a knife. i hear her dissolve into tears. what she's a watching on the other end of the phone is the horrific beheading of james foley. >> rhodes had to break the news to the president. >> and i had to tell him what happened and in the avovideo, t reason they say they did it was because of a decision he made. >> jim was taken from us in an act of violence that shocks the conscience of the entire world. >> tragically, there were to be many more bleak moments for the american administration and for american hostages. >> you have kayla muller, a young woman. you're just waiting for this terrible thing to happen and for it to be broadcast on youtube. >> tragically, none of those hostages made it. >> no. and we knew after foley, the horrific thing is you just had the sense that we were going to lose all of them. so this is about as dark

. >> true to his word, jihadi johned murdered james foley on camera. >> i get a phone call from the president'snter terrorism and she says there is a video of jim foley. and she's narrating it. and i can hear her saying they're wearing an orange jump suit. they're holding a knife. and then i just hear her dissolve into tears. and what she's watching on the other end of the phone is the horrific beheading of james foley. >> he had to break the news to the president. >> i had to tell him and say the reason they were doing this was because of a decision he had made. >> a visibly shaken president obama spoke out. >> today the entire world is appalled by the brutal murder of jim foley by the terrorist group isis. jim was taken from us in an act of violence that shocks the conscious of the entire world. >> tragically, there were to be many more bleak moments for the american administration and for american hostages. >> you have a young woman, just waiting for this terrible thing to happen and for it to be broadcast on youtube. >> none of those hostages made it? >> no. we knew. you just had this sense

john givener. so i'll start with seat 5, because mr. foley spoke first in this meeting. but generally supervisor ronen at the start mentioned that the charter sets off some general qualifications for all h.p.c. commissioners, that they be especially qualified by competence, knowledge, training and experience in the historic architecturals a stettic and cultural traditions of the city, interested in the preservation of the historic structures, sites and areas and the residents of the city. so that applies to both seats. just that general rule about interest, knowledge, experience, et cetera. in addition, seat 5 must be a historic preservation professional or a professional in a field such as law, land use, community planning or urban design, with a specialized training or demonstrable experience in historic preservation or historic preservation planning. that's seat 5. seat 2, in addition to the general criteria about interests and knowledge and experience, must be a licensed architect and must meet the secretary of the interior's professional qualification standards for

john bolton. let's not forget the third national security advisor under the trump administration. brent: that's right. like a revolving door inside the white house. our correspondent pablo foleylias in washington on the story. thank you. now to the campaign trail in israel. prime minister benjamin netanyahu is promising to annex the jordan valley in the occupied west bank if he wins next week's election. the jordan valley accounts for a large swathe of the occupied west bank and is a strategic strip of land along the border with jordan. israelisis will vote in parliamentary elections on september 17, the second to be held this year. thee ballot t could win n nanyaa fifth term or i it could end his decade-long dominance ofof israi politics. >> today, i'm not - -- announcig my intention to apply with the formation of the next government, israeli sovereignty on the jordan valley and northern dead sea. brent: for more on this, i'm joined by our correspondent, tania kramer. good evening to you. help us understand what netanyahu's doing here and he says he intends to annex parts of the west bank. is he talking about an illegal land grab? tania: you h have to see the statementt in t

flocco john joseph florio joseph walkden flounders carol ann flyzik david fodor michael n. fodor stephen mark fogel thomas j. foleye c. folger david j. fontana chih min foo delrose e. forbes cheatham godwin forde donald a. foreman christopher hugh forsythe claudia alicia foster noel john foster sandra n. foster ana fosteris robert joseph foti jeffrey fox virginia elizabeth fox pauline francis virgin lucy francis gary jay frank morton h. frank peter christopher frank colleen l. fraser richard k. fraser kevin j. frawley clyde frazier, jr. lillian inez frederick andrew fredericks tamitha freeman >> tom, you are shay's guardian angel. we all love and miss you. >> and my cousin, john, we love you and we miss you so very much and not a day goes by that we're not thinking of you. you'll never be forgotten. andrew keith friedman paul j. friedman gregg j. froehner lisa anne frost peter christian fry clement a. fumando steven elliot furman paul james furmato karleton douglas beye fyfe g fredric neal gabler richard peter gabriel richard s. gabrielle james andrew gadiel pamela lee gaff ervin vincent gailliard deanna lynn gala

foley. james folger. david j. fontana. the chih min foo. at dolores. godwin ford. donald j. forman. christopher hugh forsythe. claudia alicia foster. noel john foster.foster us. robert joseph foti. jeffrey fox. jovirginia elizabeth fox. pauline francis. virgin lucy francis. gary j. frank. morgan h. frank. peter christopher franke. colleen al fraser. richard k. frazier. kevin j. frawley. clyde frazier, junior. lillian ynez frederick. andrew fredericks. tamitha freeman. fred friedman. peter l. find. arlene azoff read. alan w. friedlander. and my son-in-law thomas. you are a guardian angel and she feels your presence every day. we all love and miss you. and my cousin, john j.. john, we love you and we miss you so very much, and not a day goes by that we are not thinkinv of you. you will never be forgotten. andrew keith friedman. paul j. friedman. greg j. froehner. lisa and foster. peter christian frei. clemens a fumando. stephen elliott furman. paul james furmato. carlton douglas bey. richard peter gabriel. richard s. gabriel. james andrew gadiel. pamela lee gaff. erwin then send galliard. the animal and galante and her unborn child. grace catherine ga