you heard josh sourcing gene munster of piper jaffray. gene joins us now he's got an overweight rating on the stock a $162 price target on apple gene, great to have you with us. it sounds like you think that this music could be one more reason for people to be in this ecosystem. but as an analyst how do you determine whether or not it's worth it? they're going to be spending royalty payments for plays. they're going to be spending on promotion and marketing. and we don't really know if this is going to be an actual reason why people are buying more iphon iphones, which is the company's bread and butter. >> you've got to do it. the total costs are going to be pretty small. think of this as a few hundred million dollars a year. we obviously know how much money apple has. as you think about the broader phone experience, something that's fundamental to the phone is the music experience. and apple's been about three years behind in that. so think of this as a catch-up. ultimately it's going to be difficult to really pinpoint the exact economic

piper's gene munster upping his price target on the stock.s on the move, one of the year's top performers, dot traders agree? with munster? >>> plus, senator elizabeth warren slamming s.e.c. chair, mary jo white sending her an unusually personal and long letter. >>> we have the letter, we have the conversation coming up. >>> and google's annual shareholder meet something just kicking off off in mountainview, we're monitoring that event for any breaking headlines. >>> you know we will bring them to you. there's a difference when you trade with fidelity. one you won't find anywhere else. one-second trade execution. guaranteed. did you see it? in one second, he made a trade, we looked for the best price, and the trade went through. do the other guys guarantee that? didn't think so. open an account and find more of the expertise you need to be a better investor. >>> we're back. playbook time, jim lebenthal is still in the lead. 15% gain. josh brown getting a little bit closer. jon najarian is barely hanging on in the green and moments before the

piper's gene muns fehr says even if, though, apple matches spotify he crunched the numbers and munster said it would add less than 1% to revenue in 2016. but munster says there won't be those kind of material financial impact in the near or even intermediate term but he does see important strategic benefits in this new service, mostly improving the iphone user experience and keeping more users on that ios platform. melissa, back to you. >> thank you, josh lipton. for more on apple and the music service let's bring in colin gillis, bgc's director of tech analysis. he's got a hold rating on the stock has had it since january. great to see you. >> great to be here. >> do you agree with this notion nat streaming, it's not about the revenues from the service itself, it's about keeping people on the platform? >> not necessarily because you know, they're rolling it out onto android. and revenue is revenue. they want to take it and they want to build the services lair. the problem is that apple's had so much success with the iphone and they're so dependent on that product, right? with the marg

piper jaffray's managing director gene munster. what is it we should be looking at sneer what's the metric? >> the resale value. so to get a read on iphone demand we look at the resale value of old phones and compared to the retail value today. what we found is that the phones today are getting higher prices in the after-market, which is a sign that demand is higher. so the quick numbers are this. is it a typical iphone 6 sells for 72% of its retail value he, 285 days after the launch? that compares to an iphone 5s that sold for 60% of its value 285 days after its launch. credit my crack team here with travis for putting all this data together and tracking this on a daily basis. but that's what we're looking at. we also look at it in china. and the comparisons are similar. the good news is this, is that these higher resale values are a strong indication for future iphone demand. >> hey, gene, we often here, you know, one of the main justifications for owning apple is valuation. and here it trades below market multiple, x cash it tr

from munster, indiana, it's the siurek family. and from dacula, georgia it's the wood family.body's here trying to win theyself a lot of cash and the possibility of driving out of here in a brand-new, fuel- efficient ford fusion hybrid. let's play "feud." give me heather. give me deleta. ladies top 5 answers on the board. name something that only takes two people to do, but it's even more fun if more people join in. >> sex. steve: sex. you and carl got something y'all want to tell us? >> 45 years. steve: 45 years. >> i don't want to hear that. steve: your baby brandon don't want to hear it, so let's just move on and see if, well, sex. bow chika wow wow. heather. >> pitch a tent. >> good answer.

you have "the addams family" and then "the munsters," you have "bewitched.""i dream of jeanie." you have in/*mitation is the sincerest form of flattery. if one person is doing this fantastical hit, we're going to do that. >> now, is that considered a crime? >> i'm afraid not. there aren't any laws to protect us against bad tv shows yet. so you're safe. >> well, thank you. >> what i'm surprised by are some of the shows i can't even imagine the pitch meetings for. like "hogan's heroes." >> it's a story about american prisoners of war in a nazi concentration camp which doesn't sound like it's a funny comedy. >> why don't they trust us, schultz? >> that shows you how weird the '60s was right there. >> there is another one of our fine shows this year. pit stop! a movieing story of an e eefiminant racecar driver who was really an astronaut for the mafia. 9:30 eastern time, 8:30 central time, quarter after 2:00 pacific time. i don't want to live with the uncertainties of hep c. or wonder... ...whether i should seek treatment. i am ready. because today there's harvon

the stock ending higher by more than 3% after piper jaffray analyst gene munster increased his target to $120 from 92. the firm making some interesting comments as well about the value of virtual reality on "closing bell" just moments ago. let's listen. >> we believe that oculus gives facebook a foothold and a seat at the table, an insurance policy for this next computing paradigm. >> do you agree with that pete? an insurance policy? >> i certainly don't think it hurts at all to have oculus along for the ride. he think there's virtual reality, there is something to it. whether it's creepy or not is for everyone to decide. you've got instagram, the buy button and you've got this competition online with youtube. they've done such a great job with video. i think there's a lot of different reasons and technically stayed it feels like facebook finally started to break out to the up side. in the weekly options three times what was the open interest on the 84 strike calls were purchased today. that tells me a lot about people right now think that even in the short term oculus -- gene was tal

analyst gene munster joins us.irst on cnbc interview, howard lutnick, the global spike in yields, we'll see you in less than ten. >> thanks, scott. meanwhile hulu is aggressively investing in original and acquired content to drive growth. in a new note one lifrt predicting that hulu will spend $1 billion this year on content alone. nearly $10 billion. anthony declemente. anthony, you have an enticing note out this morning. where you say "seinfeld" is the barometer showing you how many hulu is willing to throw its weight around in this space. why is that? >> there's definitely mandate from above at hulu to aggressively invest revenue back into content in order to grow the asset. i think the media owners that own it, dwis nn nnyny comcast a fox. >> they're investing in the technology, the marketing, up 70% and as that's driving the content spent. it's improving the value proposition for consumers and that's driving real acceleration and growth. in the first quarter we see hours streamed up over 80%. we see the number

analyst gene munster weighs in on the new offering. >>> behind the wheel of a possible deal.ooking to talk gm into a merger. why the automaker is putting itself in play. >>> and an american icon is launching a new home improvement show. >> i pity the fool. >> it's called "i pity the tool." mr. t. is here. >> addiction? >> yes, addiction. >> pain. >> the second hour of "squawk box" begins right now. >> live from the beating heart of business, new york city, this is "squawk box." >> mr. t. was in "rocky." welcome to "squawk box" on cnbc first in business worldwide. take a look at equity futures at this hour. it's kind of marginally better. looks like the dow would open off 7.5 points. and the nasdaq off about 9.5 points. >> let's take a look at some of our top stories. chrysler ceo is reportedly reaching out to urge general motors into a merger. the contacts with activist investors are calling this is gm pitch. they're calling this is a desperate one on his part. hsbc is slashing its investment bank. the company will be selling its underperforming businesses in turkey and brazi

. >> joining us to discuss, gene munster at piper jaffray and mark stevens.rst, tell us anecdotally why you would put certain clients of yours on facebook ads in terms of video versus youtubes? >> quite simple. they work. we find that one of the main reasons they work is because it's -- two things. they are incorporated into the feed. you this you don't have the gate keeper of the ad stopping you from seeing the content you see. we have people who wait to click it and those who hate the ad because they won't buy anything because it's stopping me from viewing the content i want to see. secondly facebook's tremendous ability to identify the demographic information we want for our clients. it proves itself meteorologistrically it works very well. >> facebook have done a better job as they kept changing format they kept integrating ads into the in us feed. >> our comments today were about oculus. this is a perfect example of facebook understanding how year behavior is changing. they do a good job making those ads effective and relevant. in terms of user behavior

piper jaffray's jean munster notes that even if apple matches spotify whether it comes to paying subscribersll add less than 1% to revenue in 2016. mandy, back to you. >> makes them look good at least. the stock is at $127.43. >>> you no longer need acres of farmland to grow vegetables. you just need a factory in the middle of the city. it is called vertical farming. we'll head to new jersey to show you how it is done. you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business. >>> here are this hour's power points. number one, the nasdaq and russell 2000 small cap indexes, mid caps too, have all jumped to all-time intraday highs. >>> may

gene munster. that could drive the stock higher after a positive session today.s it. >>> and the senate vote on the trade protection authority's underway. we'll keep a tally of the votes and bring you a count coming up on the "closing bell." keep it here. >>> the red hot rental market showing no signs of slowing down. you'll be surprised by who is actually driving this growth. and it's not the millennials. we'll talk about that next. >>> plus new york city investigating whether whole foods is overcharging for pre-packaged foods. coming up we'll discuss whether that could give investors some heart burn. and we're minutes away from revealing this year's top state for business. who will take the crown? stick around to find out. you're watching cnbc first in business worldwide. here at the td ameritrade trader group, they work all the time. sup jj? working hard? working 24/7 on mobile trader, rated #1 trading app in the app store. it lets you trade stocks options, futures... even advanced orders. and it offers more charts than a lot of the other competitors do in des

. >> was herman munster ever a dad? a. >> okay. >> apparently it's c. >> i learned this lesson on sat, guessing works. >> which cartoon dad rescued his son from attempting a death defying jump over a gorge on a skate board and took his place? >> i feel good about this one. >> let's see. >> i'm going to make it. this is the greatest feel of my life. i'm king of the world. woo hoo. >> based on a true story. >> yeah lesson isn't everything. homer simpson the answer everybody. happy father's day. >>> we have stories and muze to tell you about. gunshots ring out overnight in block parties in two cities. in detroit, one killed and others injured, one lit cli. someone at the party may have been targeted. in philadelphia seven were shot including a toddler and two children. all three kids are in stable condition, all victims expected to survive. police are looking for gunmen in both shootings. >>> remember when president obama promised to reform va health care? >> we reached out to 215,000 veterans so far to make sure we're get