josh lipton has more challenges facing peer to peer. >> reno le plaun. lendingclub's founder, chairman and ceo has resigned. the problem was an internal review. they found that the company sold an investor $22 million in loans that did not meet the investor's conditions though exactly how isn't clear. on top of that it was also discovered changes were made in the afternoon indication dates of $3 million of these loans and finally there was evidence of the conflict of interest. now the investor was reportedly jeffries which declined comment. in a statement lendingclub saying while the financial impact of this $22 million in loan sales was minor, a violation of the company's business practices along with lack of a full disclosure during a review was up acceptable to the board. right now it is not clear what role le plaun. exactly played, but dow jones

for nightly business report, i'm josh lipton in mountain view, california. >>> wendy's warns that its sales will slow and that's where we begin tonight's market focus. despite issuing quarterly results that topped estimates, the fast food chain cautioned that same-store sales growth for the current quarter would fall below its own forecast. the company also raised its full-year guidance, but that news wasn't enough to impress investors. shares fell nearly 9% to $10.19. the strengthening yen is expected to be a drag for toyota. the automaker forecasts a 35% drop in profit for the fiscal year which ends in march of 2017, as that company caombats currency head winds. shares fell. >>> analysts are bearish on seaworld. they downgraded the theme park operator to underperform from outperform and also cut its price target to $15 down from $27. those downgrades were attributed to competition from rivals and a lack of pricing power. shares fell 3% to $17.87. >>> shares of electronic arts surged today after the video game maker reported better than expected results after the bell yesterday. thos

as josh lipton reports, the move may not be a simple one.ostco has kirkland, walmart has great value and now amazon will have wickedly prime, making it the latest retail to expand its private label products. for one, this will allow the online retailer to offer consumers that many more products to choose from when shopping on its website. but there's also a strategic component. jeff besos with this decision is going right after big-name competitors, like walmart, costco and they can put pressure on third-party merchants selling products on his platform. >> it keeps these third-party merchants on it in, one, the quality of what they sell and, two, in the prices that they charge consumers. >> there's also a financial component to this move. skully says that these niche products usually carry higher profit margins than name brands and consumers are big fans. store brand sales reached an all-time record and an increase of more than 2 million over the previous year. there are risks for amazon, however. the company has stumbled in the past. for ex

josh lipton joins us now from san francisco.lissa, analysts not expecting much when they hear results. they think the top line is going to drop about 50%. you mentioned the numbers of what the stock's done. the one question for investors is what do you think the real pressure is coming from? do you think it's coming from a saturated market? do youly if you want a gopro, you have one? if you cover the analysts covering the stock, not just bulls but concept tif skeptics well, they mispriced that camera. they had to ultimately knock down the price not once but twice by 200 bucks. analysts will say volumes from that will say they mismanaged it. that a lot of consumers didn't want that cube-sized camera. the question is where can the stock go from here? what knick woodman and tony bates do if anything to win back investsers when you have a stock. you're going to have a tough time winning back credibility. the few remaining bulls on the street will say, listen, you look for a couple of catalysts. we've been waiting for the drone to co

josh lipton is there to start us off today, josh? call it trump versus besos round two. maybe that's what we'll see here in seattle. listen, we know the real estate mogul and amazon ceo have been publicly brag.

josh lipton is there in seattle with the latest. >> reporter: melissa, there is no hotter fight in moderntechnology right now than the business of cloud computing. that's a fight that amazon intends to win. that was clear today at the company's annual shareholder meeting here in seattle. amazon ceo was on stage, fielding questions from shareholders, and touting the strength of aws. his cloud business, where he noted aws in his opinion has a big multi-year advantage over its rivals. it boasts a $10 billion run rate. and serves over 1 million customers. so that's everyone from mcdonald's to pinterest. aws has excited investors. that stock still up more than 60% over the past 12 months. but bezos also knows he has serious rivals. you have microsoft, which will remain a big player in the enterprise. the client relationship support system and sales force, and google has a popular suite of business cloud apps. it can build data centers as well as any giant out there. now the cloud effort is led by the well-respected diane green. bezos told shareholders that his aws team added more than 700 new

let's get to josh lipton with more on what is going on. josh?important data point we want to bring to you. go pro say it shipped 7,001 units. analysts had modeled 727,000 that is a miss there. that's a year over a year drop of about 48%. gopro is going to have the conference call in a few minutes at the top of the hour. well expect the ceo to provide more insight and color than miss. we'll be on the call and bringing you the headlines. kelly, back to you. >> all right. thank you, josh. by the way, the shares of less than 1% now. we talked earlier, and we had our guests reiterating the challenges they face. when it was up 8%, you could think maybe a little more positively about their prospects. >> yeah, you could think a little bit more positively about the idea that finally all the bad news is reflected. because it's a holiday story, it reminds me of fit bit. now what am i doing for the next two quarters that it is going to be okay. >> verizon is holding its annual shareholder meeting. nearly 40,000 of its workers remain on strike. jane wells is

josh lipton has more. josh in. >> let's get you those numbers. workday reporting a 5% increase.venue looks like it jumped 38% to $345 million. subscription revenue of $280 million. that's about in line. looking into guidance there, guide for q2 revenue. the stock, remember, kelly, heading into this jumped about 60% since that low in february. on the call tonight analysts want to hear more about the ma kroy environment. certainly any environment we could get. oracle, as well as any progress on those financial malkt applications. that call starting at 5:00 p.m. eastern. >> thank you, joshua. guy, what do you think? >> valuation. i'm not surprised by the move lower. we'll see if the move lower holds. i would not be jumped to buy this thing on the tip. with that said, we've seen it happened so often. with this one i'd rather avoid it for a while and see how the whole thing works itself out. it's too rich for my blood. >> mike? >> josh mentioned the move off the low. you gekt an earnings beat when you don't expect it. that's not fair. you don't get credit for that when you're trading

for cnbc i'm josh lipton in san francisco. >> we were just talking. we've never tried gopro. >> never tried but i am curious. >> extreme sports. it is phenomenal to watch these pictures, right? but for most of us it is kind of not. >> i did a mountain wyc in --. ite pretty proud i. >> what i'm doing i assume is only interesting to mi and the people oim doing with it. but other -- >> [ inaudible ]. >> -- once put on a video of a six hour wedding. and after like the first two hours of handshaking on people you don't know you think this is interesting for you but maybe not for the rest of us -- yeah. herbalife is in settlement talks with the ftc. it added a number of issues remain that could hamper a quick outcome. they grew user base by more than 6% with china and beat the share in the first quarter. >> news corp has reported a net loss for the first quarter. the group's quarterly revenue declined more than 7% as its struggles with the transition from print to digital. >> shares of dream works largely flat in afterhours trade. despite reporting profit i

josh lipton. the journal pointing out it has a problem. they've been repaying the loans too quickly and so it's not making -- >> they're not making their interest payments. >> right. they're paying sometimes 30% more than what typically would be expected. it's really interesting to watch how this all shakes out. by the way rngs we're going to boo b speaking. time for a cnbc news update with sue herera. >>> here's what's happening this hour. a suicide bomber killed four, injuring nine others. >> a new era with the swearing in of a new police chief later. he comes from miami where he witnessed civil unrest as a police officer. he's foregoing his job. >>> a man is alive after a sheriff's deputy pulled him from a burning car. the driver was airlifted to the orlando bush center where he's still being treated. >> and it was the shot heard round the world over the weekend. new york mets pitcher bartolo colon hitting the first home run -- his first home run at age 42. that's according to espn, nearly 9,000 cards of that event were sold in a 24-hou

i'm josh lipton in san francisco. >> and it was a smooth ride higher after hours for shares in silicon valley out maker tesla. >> at the scene la tesla is is . --. elon musk also suggested his company will raise capital. >> is going to make sense for us to raise some amount of money. some combination of equity and debt. and make sure the company has a good buffer of cash on hand. >> not everyone though is a believer in tesla at the sohn conference yesterday jim chanos said he's shorting the auto maker. >> one of our historical sign posts of a company in trouble is when numbers of senior people leave. over a short period of time. tesla fits that bill. we've got a chart, i guess we're going to to have to update it this afternoon, of senior executives leaving tesla. it is a flood in the past four years. that is not a good sign. this as company that can't forecast one quarter out. and everybody is confident still what they are going to make in 200 20023 or 2025. i don't think they can do it. >> shares up in recent week. and broader markets habit half a percent of gains. also keep an eye on

. >> and joining sus us is josh lipton. >> thank you.bill mentioned the big news today was google making this mush bigger push into virtual reality. you have now daydream, this new vr platform you have built. walk us through that news, clay. >> daydream is all the ingredients you need to create really high quality immersive vr experiences. we started designing smart phones with specifications that will enable to drive the design. and we've created a headset and controller. and finally we're working on a bunch of apps and experiences, like youtube vr, you can so you can step inside concerts and events and other things and experience them like you are actually there. >> and daydream. that is the platform. >> and it's very important users have a really comfortable experience in vr and developers have that consistent set of functionality to target. so part of daydream is a set of specifications for the phones and we've been working again with the likes of htc and others to create phones that meet specs and we can guarantee a high quality use

josh lipton is there to start us off today, josh? >> reporter: scott, call it trump versus besos round two. maybe that's what we'll see here in seattle. listen, we know the real estate mogul and amazon ceo have been publicly brawling. trump accusing amazon of antitrust violations without getting into specific, and "washington post" ran an article saying trump posed as a publicist to generate stories, a claim trump denies. bezos would offer trump a ride to space. would he field any questions at the meeting about trump? we'll wait for that. the brawl has not worried investors yet. look at amazon stock, outperforming the market this year, and still up more than 60% over the past 12 months. adding to the drama today, though, ultra violet, a group fighting sexism, lhas a petitio to ask amazon to stop selling trump's line of men's waear. why is amazon continuing to support the trump empire, and now, ultraviolet says 1500 shareholders signed the petition and commissioned a plane that will be circlingover head today at the meeting with a ban

josh lipton is live at the sun trust internet and digital media conference with chris sacca, one of twitter'st investors. josh? >> thank you, melissa, and, chris, thanks for joining us. >> right on. good to be here >> you said recently, chris, that there is a time of reckoning coming for tech startups in silicon valley. there's some unicorns that they said they don't deserve to be unicorns. what are the kinds of tech startups you think could be most at risk in. >> we're in an era where money has been essentially free. we have an entire generation of spvs and momentum funds that have just found incredible hunger from their lps to collect logos, just throw money without any diligence or board seats, without information rights into the late state companies. so we have a generation of some companies available to creep along without anybody giving anybody businesses a lot of scrutiny real and as things slow down investors become more cautious and want to peek behind the covers and see what's there. some of the companies won't be able to raise again and that's when i say there's a time of reckoning

our josh lipton's in san francisco with that. rl, when i last spoke to ceo tim cook, he said that china is more stable than many believe. and now he is putting his money where his mouth is by investing $1 billion in didi, china's home grown rival to uber. we know $1 billion is a drop in the bucket for apple which boasts a cash mountain of $233 billion. so why is cook committing this capital? well, for one, it could be a smart investment. didi is a $20 billion company. that means it's one of the top five most valuable start-ups in the world, according to cb insights. controls nearly 90% of the private car hailing market in china, completing 11 million rides a day. creative strategies says the investment could also please the chinese government at a time when we know that government has taken a tougher line with apple. regulators there have now suspended apple's online books and movies services. this news does come as apple is under real pressure. that stock down some 13% this year. down more than 30% from its all-time high of 135 h

. >> josh lipton, thank you. all the things that require that. >> there's probably 20 different types of wrist bands now competing for fitbit. to me it seems like it's a commodity. >> this guy is an iron man, too. >> not quite yet. >> almost there. almost there. >> i appreciate that. >> anyway, still ahead, tesla shares up by 4%. i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade. this cit added this other level of clean to it. it just kinda like wiped everything clean. my teeth are glowing. they are so white. i actually really like the two steps. everytime i use this together it felt like leaving the dentist's office. crest hd, 6x cleaning,

josh lipton is looking at a report that apple may switch the iphone to a much longer life psych.n other words, people don't buy it as often. let's start with philly will bow because he's got a big issue on boeing. >> boeing shares under pressure because of more problems and more delays that are expected when it comes to the air tanker refueling program. remember, this is a program that boeing fought long and hard to win because they need new air refueling tankers in the air force. they won that project a couple years ago. now the air force on friday issuing a statement saying that the tanker has more delays. the new tanker that's being developed has problems refueling other aircraft in the air. it's not as though it's never going to be fixed but it's further problems with a prom that have dogged boeing over the last year and a half getting the program right. a lot of potential and considering the technical issues and the still aggressive flight, test and production schedule we should not be surprise federal there were additional delays ahead. what are some of the problems that we

and our josh lipton is out west watching that. >> well, carl, some hints here of the news that we could get today. new york times now reporting that google is going to be introducing this new voice activated program called home. and they say that amazon has sold 3 billion echos and it is a multibillion market, and google wants a piece of that and they plan to release it in the fall. and also when patay takes the stage, it will be front and center with the google's virtual reality system ises, and expect new features. and speaking of vr, rico is reporting that google is going to upgrade the cardboard headse headset, and we know that it could have revenue over $20 billion according to digi capital. and so that is red hot. and looking at the size here of the venue, and shoreline can accommodate some 20,000 people, and so maybe we will get some car news today, and maybe some android auto updates and that is the update to the apple's car play, and we will be here all day and bring you the headline s as they come. >> busy week for you, josh. quick comment from mike and jessica of what to expe

. >> all right, josh lipton. thank you. >> by the way, the stock is now trading below $10. no. i'll tell you why it could rip. it's got a 30% short interest on the stock. it's a $10 name. so you could see this thing pop. with any hint of positive news. i don't think it will be a hint of positive news. >> right. >> so i do believe that people talked about it as a digital company. when you look under revenues, it's just to me says all hardware. it's all hardware. >> this is a hardware company, and they can't seem to execute on the hardware side there is no recurring revenue stream for this company. they didn't try and be -- the interface so that people -- >> it's not a drone company. >> all the things that were supposed to become haven't become. >> and it's not cheap at 10 bucks or below 10 bucks. >> the truth is -- >> it does have a water skiing chipmunk. pretty amazing. >> to be frank, listen, they have a very good balance sheet. a third of their market cap is in cash. they have no debt. so burn is going to be an issue at some point. less than one-time sales, if they ever a

josh lipton has more. hi, josh. >> well, kelly. that's right.w reportedly plans to visit beijing later this month to meet with high-level government officials. this visit comes at a critical time for apple with the chinese government suddenly seeming to take a tougher line with the tech giant. recently, for example, the chinese government shut down the company's online books and film services and already that market has become more challenged and q2 apple sales in mainland china did slip due in part to economic growth and at least one well-known investor is concerned. carl icahn told them he sold his stop. that stock dropped more than 12% this year. more than 25% over the past 12 months. when i spoke to cook after that last earnings report, he told me that china is more stable than widely believed but a year ago you had the wind at your back there, he said. now the wind is not blowing anymore. now, giving the challenges in china, india has become a much more important opportunity for apple. its market share there is small but growing quickly. th

josh lipton sat down with defense secretary ash carter today to further discuss. well, kelly, ash carter was actually the first secretary of defense to visit silicon valley about 20 years, this was his fourth official visit to the bay area where he acknowledged that tension between uncle sam and the tech industry. >> there are also tensions obviously around how to handle technology in the context of security, privacy, a free internet. but also one that is secure, and that is -- contributes to protecting people rather than harming people. that's a difficult thing to engineer. >> now, perhaps even more difficult now, after that recent conflict over encryption where virtually every major u.s. tech company came out in favor of apple and against the government, but now secretary carter has created what he calls the defense innovation unit. its mission is to help the d.o.d. that could strengthen national security. he has requested $30 million in new funding for this unit. recruited top talent from apple and google. and plans to open a second office in boston. there are

josh lipton, to be down sharply, what happened? >> so fitbit reporting eps of 10 cents.t was looking for 3. reporting revenue of 505 million. analysts expected 404. a beat on the bottom and top. disappointment though in this report. fitbit saying it sold 4.8 million devices. that does miss expectations and analysts expected them to sell around 5 million. gross margins about in line at 46.3%. the guidance is disappointing. q 2 revenue, 565 to 585 million. that beat expectations. but fitbit is also guiding q two eps of 8-11 cents. analysts thought fitbit would guide for about 26 cents. really undershooting there. the full year. fitbit looking for 2.5 to 2.6 billion dollars. on this call we're going hear more from the competitiexecutiv. into this print fitbit had been on a recent run, up about 40% since that february low but now heading lower here in the afterhours. >> thank you. d.j., looks like the guidance is what took the stock down here. >> the guidance, the miss with the number of units sold and what's the cap ex. how much are they going to spend for this innovation t

. >> breaking news on amazon.com and let's get to josh lipton live at amazon's annual meeting. sh? >> brian, amazon shareholder meeting just wrapping up here in seattle. that vote went according to plan. you saw ten directors elected. ernst & young ratified as the auditor. three shareholder proposals were shot down. again, just as amazon predicted there, so just as we expected in the meeting. what happened is ceo jeff bezos came up and fielded some questions from shareholders and talked for one about prime and how important that is to the business. and why is that important? bezos will always give you an exact figure of how many prime members there are. the team at cantor estimates there's as many as 60 million prime members. that's their loyal group, an asset nobody else has, and they also estimate to spend a lot more, as much as five times more than non-prime members and if you're not a prime member at this point, in his words, you're just being irresponsible given how fast, efficient and effective that is. shareholders are also asked do you think you'll have the same success

. >>> our josh lipton was there. we'll get the lowdown live from seattle coming up. >>> also ahead the president of cox communications tells us how he's trying to differentiate the cable and telecom company from fierce rivals and it may be good for your health. you're watching cnbc. first in business worldwide. the call just came in. she's about to arrive. and with her, a flood of potential patients. a deluge of digital records. x-rays, mris. all on account...of penelope. but with the help of at&t, and a network that scales up and down on-demand, this hospital can be ready. giving them the agility to be flexible & reliable. because no one knows & like at&t. >>> welcome back. dow's down 200 points. the nasdaq is down 60 points. on your screen are the sectors of the s&p 500. energy is the only outperformer as we continue to watch crude flirting with its highest level since last fall. otherwise and especially utilities. we talk about rates. we talk about different things that might be feeding into that. they're the hard

josh lipton joins us with a closer look. confirm reports that google is launching carrier billing on the play store in ind india. that means users in aindia can purchase music, books and games from carriers rather than billing credit card companies. that's especially important in india where credit card penetration is limited. less than 5%. but smartphone adoption is surging. india is the third largest market for smartphones. last year alone, 102 million smartphones were shipped there. that was a 49% jump from the previous year. google is making this move just as apple is also targeting the indian consumer much more aggressively. ceo tim cook told cnbc why he is so excited about that market where iphone sales jumped 56% in q2. >> india today has about 50% of their population at 25 years of age or younger. it's a very young country. people really want smartphones there. really want smartphones. and this year the first year, lte begins to roll out. huge market potential. >> the two tech giants are competing hard for india. just