we view netflix as friend, not foe. there's to reason for us to beat netflix.are taking advantage of netflix' great growth and i guess maybe could you argue we've helped netflix great growth. we're selling product to netflix that's off network, abc and other networks. we're fortunate that we have product like "how to get away with murder" for instance that netflix really covets. we're selling our movies to netflix. the output deal for our movie studio kicks in with the 2016 netflix slate and netflix comes forward as an aggressive buyer of original programming and we have great deal with them for marvel television. i would imagine we have opportunities to expand our relationship with netflix in terms of supplying original television. so suddenly, we have a huge customer out there, that is willing to spend and is actually already spending billions of dollars on intellectual property that this company owns. we view that as a positive, not a negative. i also as i look at netflix. i view it as a complement to what i'll call traditional television. not necessarily as

let's talk about netflix. big changes are coming.nger be able to stream major blockbusters like "the hunger games -- ca tching fire." they will switch to hulu after deciding not to renew their contract. it will focus on names like brad pitt. sakoui andanousha brad. the originaleep up content to sustain its business model going forward? people like kevin spacey and brad pitt are expensive. there is no guarantee of another hit. brad: you are 100% right. it is really risky. netflix feels that exclusive and original content are things that are going to grow their subscriber base. this is the path they have decided to do. they have a deal with amazon prime. it happened with -- the deals they are making going forward, like with disney, are going to be exclusive. that the route they want to do -- that is the route they want to do. emily: is there a sea change in hollywood right now? how do content creators and actors feel about netflix? is all the momentum moving in netflix's direction? anousha: one of the things that look has proven it can

go away from netflix then.ing to figure out what cbs and fox say. both cbs and fox if you look, late september, early october, bottomed out. cbs bottomed out around 48 bucks. that's where we're trading. fox as it turns out bottomed out around $31. that's where we're trading. if you're looking for an entry point this to me is as good as it gets. i do think there are tremendous headwinds but for a trade look at what these stocks have done since january. they're not that ridiculously expensive. you might see a relief rally in the names. both of them set up really well on the long side to me. >> let's get another check on shares of tesla, still moving lower, now down by just about 5% or so in the after hours. conference call is under way. cnbc's phil lebeau's got some of the highlights. phil. >> melissa, just a few minutes a ago there was the first quest conference call for ceo elon musk about the company lowering its production and delivery guidance for this year. remember going into today, the previous guidance w

what, is this good for netflix? like it's placed into the hands of the content producers. >> yeah, this is actually i think somewhat negative for netflix. you know, just to play on the positive side, it could show netflix gaining but i think there is a lot more risk involved. it could show that amazon or e hulu take share or broadcast or cable shows are taking share and ultimately, this could drive up content cost for netflix since netflix doesn't provide data to the content providers, this could, you know, they could use this data to come back to netflix and ask for a higher price if they believe their content is gaining share. >> as an analyst, neil, will you use this as any input into your view on netflix? i'm curious because nielsen has been criticized for how it measures and the accuracy of the measurement. >> yeah, look, i mean nielsen's data is fairly limited. 25,000 households, 1,000 shows is what they will be showing at first. but it is a data point. so we'll probably use the data as a factor but it won't b

second, now that more netflix employees will be stuck at home with nothing to do but watch netflix for a year, maybe we will start get something better viewing options. like -- [cheers and applause] >> larry: i mean seriously, stop trying to make lilly hammer happen. stop it. stop it. with netflix taking the lead other companies are following the policy. >> microsoft is following netflix's lead allowing more parental lead. they're upping leave from 12 to 20 weeks. >> larry: oh. [ applause ] >> larry: nice one, microsoft. so unlike you to copy a better company. folks, anyhow not to be out done blockbuster is giving mothers a coupon for a free sandwich at jimmy johns. bam. bam. for more we turn to a netflix employee, dana archer. how is it, dane. >> alanna: let me ask you, are you excited about the parental leave policy? >> hell no. i work in the shipping center. parental leave is only for sallied streaming employees. >> larry: wait, there is a difference. >> yes streaming employees are corporate. we are the part-time people here at it a.m. to send out copies of twister, nobody is watchi

brazil netflix users was extremely high, over 90% high levels of satisfaction with the netflix producthink there's enormous global demand for video streaming and for the content that netflix has. this is green field opportunity for them. it's not priced into the stock, we like the shares. >> and that's possibly why mark, your note is called ole, ole, ole, the bullishness on china. what about brazil? can they get in there now? >> what about china. >> this was a bit of a misstep by netflix. or delayed step. whatever you want. they had announced that we would have a china launch in the third quarter of this year. then they delayed that until next year, along with that, they're going to have the next theatrical release of hidden dragon sleeping tiger. but that movie will be out. the launch will come next year. we don't know any of the details about it. i'm not sure that netflix does, too. we've seen some missteps in china. we don't know how well they'll do in china. we've seen something with universal appeal. in europe, north america, latin america. chances are it's got global appeal. it w

my first stock of the day is netflix. all right, a name you know, netflix, nflx. i've been cute with it getting in and out of certain points. once again, netflix shares higher, even today, some of you sold it too early, don't worry about it, making money. neil: that's what he's good at. charles payne was recommending this, nobody else was. the panel would argue, shut up, charles. i love to say that, but then again, i can't because he's been so darn right. charles payne with us on netflix continuing to surge. many say it's getting pricey. >> mind-boggling, i said $600 a share, today hit the equivalent of $875 a share. neil: been adjusted for the splits and all. but the fact, come on -- >> it's nuts. i've asked everyone to take profits. this is a beautiful one, if you rode it, a heck of a thing. there is one thing interesting two, things that made me hop on netflix over the last three or four years, everyone in the house had it but me, i'm serious, i'm going to buy dvd's, and my son and wife and daughter had netflix accounts, and two or three years ago, i'm at chees

they go straight to their ipad and netflix.ems like that trend should continue and, you know, unless you have strong content, disney is a company that does, there are a lot of companies that can be impacted over time. >> i want to get to your newest play and that would be yelp. you took a position in the first quarter and it's interesting because you compared yelp's collapse to the collapse that we saw in netflix in open table in 2011 and in zillow in 2012 and facebook and say yelp has a premiere echo system. what is the market missing because you're completely going against the grain? >> as you just mentioned, we've seen this before. a lot of internet companies have struggled as they have grown they had hiccups. facebook is a great example, everyone is mobile and hadn't started monetizing. not clear how that would play out. netflix had similar issues and companies had crisis of confidence on wall street that lasted for some periods of time. with yelp, this has really become a has sieve utility. over 100 million users in the u.

why the whiplash with netflix estuary cory: i think netflix better defines the market over the last yearnd a half than any other equity out there. it really shows you -- netflix led the way down. it's showing with the rest of the market is doing, which is responding from yesterday. netflix and china have very little to do with each other, yet you see a rise in the stock hoping that china can fix things in the global economy. but longer-term, netflix really led the way down. it was the biggest loser on thursday and was a big loser yesterday, yet it was the best performing stock on the s&p over the last year. it really defines the market better than any other stock out there. can you explain what is this new business model netflix is portraying? cory: if you look at what netflix did a year ago, they looked at what the stock market was rewarding. i have this amazon envy -- why can't we be like amazon? have no profit and free cash flow and put it all back into the business. so you can see it in the money they are spending on new content. shows like "daredevil" and they are spending money on

looking at apple versus netflix.n interesting tale of two tech giants, one is more giant than the other. it was down for six straight days. since then, it has rebounded. netflix has been on a winning streak as well. rebound,spite the downgraded to neutral over bank ,f america-merrill lynch concern about slowing iphone sales and the effect on revenue. as for netflix, it seems to be higher today after some comments from disney ceo bob iger on the conference call last night. mr. iger: we look at netflix as more a friend than foe. they've become an aggressive customer of ours. i also think that products like netflix are attractive because effective wayser for people to watch television. julie: he repeated the comments in an interview this morning. that seems to be helping netflix. this prompted me to look at apple versus netflix year to date. apple up around 2% or 3%. netflix, the line goes up, up, up more than 150% year to date and trading at a record. different trajectories for the two big companies. they are at differ

>> we view netflix has friend, not foe. there's no reason for us to beat netflix. we actually are taking advantage of netflix' great growth. we're selling products that are off network, abc and other networks. we're fortunate that we have products like how to get away with murder that netflix really covets. we're also selling our movies to netflix. the output kicks in starting with our 2016 slate. and they've come forward as an aggressive buyer for original television. i would imagine we have opportunities to expand our relationship with netflix in terms of supplying original television. so suddenly we have a huge customer out there that is willing to spend and is already spending billions of dollars on intellectual property that this company owns. we view that as a positive, not a negative. i also, as i look at netflix, i view it as a compliment to what i'll call traditional television, not necessarily as just a disrupter of it or a replacement of it. >> all right, bob. a lot of people are going to sell the stock today, and i think one of the leads that was buried

netflix was seen as the antidote -- pretty much across the board. netflix was seen as the antidote.bers and revenue. netflix was seen as the beneficiary. scarlet: if it's a zero sum game, netflix benefits at the expense of the traditional guys. having said all this, there is a bit of a re-rating going on in the media sector overall. paul: the media or, really since the financial crisis, has out -- media sector, really since the financial crisis, has outpouring -- outperformed the markets pretty consistently. the whole concept you mentioned about cord cutting and what that the cable television business and relying on affiliate growth is coming from the comcast's of the world. if your subscribers are declining, that really affects the growth you can get from your affiliate fees. even espn, the juggernaut, saw andr subscribers, therefore, disney had to lower their profit outlooks. is all: the other thing of these media companies have been spending quite a bit on programming, netflix and amazon included. was quoted as saying there is simply too much tv out there. scriptedthere were 280

so can netflix go into the market and borrow? yes. but it is interesting that netflix has lost i think about 24% of its value over last few days. yahoo! is also getting hit hard by wall street analysts. they are worried about alibaba breaking down below their ipo price and yahoo! still has the big whopping stake that it could turn into cash from alibaba. deirdre: that said, worth noting some tech stocks were the silver lining i use that as singular term, silver lining. investors say i want to own these stocks and own these companies anyway because i do believe in their growth prospects so at least today there was some buying. >> you made the important point about growth prospects. if these tech stocks don't have a lot of cash on balance sheet they look a little more illiquid in a illiquid market. when you see jpmorgan have $30 billion of its market cap vaporized, got it back in five minutes, that tells you there is liquidity problem. still, wreaking havoc through the markets right now. deirdre: you bring up a great point of value whic

netflix making its biggest international debut yet.launching services in japan for the very 1st time hoping to gain 14 million new subscribers. netflix is planning to invest 6 billion bucks a knew original content and book even bigger hollywood names. back with me, a lot of money, hillary shine jason. >> i think the demise of netflix is greatly exaggerated. they have ridiculously powerful growth potential ahead of them for multiple reasons. was it a versa find a planet earth. there going to explode. making large investments in there own in-house production and people are complaining you can't track the metrics. let -- netflix knows what there doing, can track it. they know what's working and will keep doing what is working. >> would you buy this now? jason is making some great points. >> this is an excellent company. i missed the boat. >> chiming in again. probably at the beginning of the possibility. >> netflix's business model does not work anymore because of the 6 billion they want to spend. >> what do you mean? >> something like se

. >> netflix has changed the game when it comes to how we watch television. now it's challenging all of corporate america by raising the bar on benefits for its employees. adopting a new policy of what it calls unlimited parent al parental leave. courtney kealy has more. >> you are entitled to nothing. >> house of cards may think that but netflix say unlimited maternity or paternity leave up to a year after birth or adoption with pay. >> the first year is critical for brain development. we know babies who are bonded to their parents are healthier and more intelligent. >> netflix says experience shows that employees are performing better at work when they're not worried about home. attracting new talent as well. >> this is also probably the most generous policy by any big company that we've seen. >> reporter: that includes other tech giants like google which offers new mothers five months paid off and facebook which doles out four months for moms and dads. companies of, under the family and medical leave act there isn't a policy mandating paid leave of any kin

i did buy netflix yesterday. it was great. i finally got into netflix under $100. i wanted to own the stock for a while. i bought a little bit yesterday. >> chris, i wonder. you mentioned netflix is one you would be buying or had been buying here. i get a kick out of the pop it's getting today. you have a market that is at 10-month lows at a level it got to 15 months ago. netflix got down 20% to a level of the reached five or six weeks ago. why is this a bargain? >> this stock is up 100% or 98% year-to-date. it's one of those situations. you can't put a valuation and say it's a value when it comes down to $90. this is a true growth story. apple is a little more turning into one of those dividend plays. it is simply looking at netflix and what they are doing in the markets they are expanding into. there is a great fundamental story. i see some innovation there. wait until netflix figures out how to do a bit of advertising on their platform and things will break open. i look at that -- >> why would netflix put advertising on their platform? >> when you start pushing

cough,market catches a netflix catches a fever.have seen that over the year and over the last few days it reflects the characteristics of what momentum traders really like about today's stock market. olivia: do we know anything about the nature of the investor face of netflix? is this more actual individual know thatdo we netflix in particular is held by a lot of all the rhythmic electric -- algorithmic electronic funds? cory: casual consumers who use of love the service find something they think is an appropriate investment vehicle. concept and they teach their business model to emphasize growth and to emphasize topline growth rather than turning a profit and getting free cash flow. they want to be like amazon, and not berkshire hathaway. what they did is increase their expenditure on content, you saw them tilting up new shows. they have had some dramatic failures as well. with the increase in marketing spent on topline growth is no profit. alix: thank you. olivia is sadly leaving made. -- me. ♪ ♪ ♪ ♪ get excited for the 1989 worl

isn't netflix the ultimate bundle.on't get to say, i just want "orange is the new black," or "house of cards," you've got to pay the whole freight for netflix. there's a numb of tectonic plates moving here, high-quality content and fast broadband are the name of the game now. >> you're exactly right. what is the traditional tv business? the concept of a tv network, which is a grouch shows that are shown in a linear time with ads sandwiched in between them and cable affiliate fees. that if fund a huge amount of tv's revenue over time. those are both under threat because of netflix' model. the pipe companies are in great shape. we need a big, fat pipe unless we get some wireless solution that makes that unnecessary. content, if you can make great content for reasonable price, you're in great shape. people are watching more than ever. but if you are a network or a model supported by affiliate fees, that is where there's going to be erosion going forward. >> in this bernstein report, they reset the valuation, the multiples

netflix's latest decision is in line with the unlimited vacation policy. the company said that all this is an effort to help them compete and retape the most talented individuals in their field. >> net nix is setting the tone for tech companies and it motivates other companies to keep up with netflix. >> some critics warn that the word unlimited in the work world is not all that it seems. saying the work culture may not make it possible to be away for too long. critics say mandated time off could be a better am termive. >> thanks, janet. >> coming up, getting pampered in style. the special spa day for the girls who are battling life threatening diseases. >> challenging a stereotype: this picture from a san francisco woman started an inspiration campaign. stay tuned. same plan. new phone. or a new plan. and a just in case. add a new line. or three. and unlimited talk and text for unlimited tweens. take a carrier store detour at target, and upgrade to a shiny new everything. all things mobile. all in one place. i've had moderate to severe plaque psoriasis mo

it all shows you why despite its valuation, netflix is taking over. it's a netflix world.that works. look at what that stock's done over the last two days. people have tried to shoot it against it on valuation now for literally hundreds of dollars. obviously, the stock is split. i still think everything points towards netflix. i think if you want to play any of these names, you do it with nfl x. >> julia boorstin, first, with more on cbs, i think. what can you tell us? >> yeah, looking at cbs here. one of the key points here is that affiliate and subscription fees grew 28% and that was driven by showtime's distribution of that pay per view boxing. now, advertising revenue decreased 3%. and revenues down about 10%. they say that's reflecting lower domestic television licensing revenues which were offset by higher international television licensing revenues. cbs probably has the least international exposure of any of the media companies. cbs should be providing guidance in the earnings call which starts at 4:30 p.m. eastern so we'll be listening in there. back over to you. >

apple at 108, netflix 104.d we cover every them every single day. all of them down big. >> target yesterday when the sell-off was in swing and starting target was positive most of the data got pulled down in the last 30 minutes trading but better than expected earnings, back-to-school shopping season people have more money because of lower gas, take a look at walmart. stuart: down 2%, look at walmart. neil: 3 a new 52 week low for walmart. they are back above that. stuart: people are checking some much out on the retailers. adam: if this continued for a couple weeks but today what charles was saying, there's a lot of panic or a lot of fear. stuart: two things are going up in price. no. one gold. i have gold up $5 at $1,158 per ounce. everybody is rushing for the exits but some are going all little bit into a bolt of $5. the price of treasury bonds going up and that is pushing yields down. the all important yield on the ten year treasury is 2.05%. adam: also talking about opportunity, some small-cap stocks, they

when does the selling of netflix stop?is it about other than just some of the high-growth names pulling back. as the market has a little bit of puke. >> netflix has had a huge run over the course of the last year. a bit of it is taking a breather. the reality is that as you're looking at all of the things we're discussing and the inability of media companies to answer the key questions, they're still buying back stock when they shouldn't be, because they don't have visibility. the one stock that the viewers should be buying is netflix. they're the beneficiary of all of these trends, they're putting the consumer first and they're winning and not just in the u.s., they're winning globally. the pullback is a great opportunity of buying the stock. >> it's a conversation that needs to continue, isaid, rick, conversation that may need to continue. they may take issue with your thinking they're disingenuous with their investors. >>> coming up, before you invest in a hedge fund, you may want to listen to our next guest. he's being

it will be a first run on netflix in japan.drive attracting the japanese to come to the netflix service. they are known for their original content. we do love japanese dramas as well. what challenges does netflix face in japan? we have seen some competitors failed in the past. grace: japan is a unique market where there are a lot of video rental stores. people are still getting used to going to stores to look at the titles. not just watching it online or streaming into their homes. there was a lot of challenges, and one example is that hulu enter japan in 2011 and they with aboutand japan 12 u.s. dollars for a month, they then lowered it to now currently at eight dollars. they gradually sold their business to japan's a local tv stations. biggest liar in the streaming service, so people some- there is still question as to whether netflix can do well in this market. yvonne: japan first, what is next, china? grace: china is definitely on their radar. when they entered the presser last month, he said china is definitely something t

softbank, a partnership to help netflix launch in japan. users will sign up for the service at retail locations and pay for it in monthly mobile bills. still to come, my exclusive conversation with mark benioff. we discussed the global market selloff. that is next. ♪ ♪ emily: now to salesforce. marc benioff says startups may struggle in these tougher market conditions. i sat down with him for an exclusive interview. mark: the devaluation of the yuan and the currency, you have a six year bull market. it has been an unbelievable market run. there has been slight shifts in our gdp in the united states downward the last two quarters. those three things said it is time for a normal market correction. i am a long-term believer in the stock market. you have to look at the long view. emily: what does it mean for salesforce? mark: we didn't have a good quarter. we had the best quarter we have ever had. it was amazing. i can't believe salesforce performance. we are the fastest growing in software company ever. we made it to 6 billion. we can see 7 bi

netflix holding onto gains made earlier in the day. apple, facebook, amazon all ending in the green. google ending slightly down. why is tech doing well but not china as well as the broader market? guest: the situation in china is really something that is just coming to the forefront with liberalization of the currency. in fact there has been a , tinderbox brewing. chinese currency has been linked to the dollar as a juggernaut. with the economy slowing and moving to liberalize the currency, it has created a huge imbalance. against the backdrop of the filings. market and slowing growth, has been very unnerving for the markets. you cannot earlier saying, now is the time to buy? -- you say now is the time to buy. why? guest: the fundamentals are or separated from the markets. there is no single news item that is jolting -- that should be having this kind of a jolt. when you see other periods, if you go back where you have , this massive spike in volatility and quick selling, the market tends to snap back relatively quickly. what is import

netflix is trading higher. as we saw yesterday, wholesale selling of the best performers and worst performers, it didn't matter. today we are seeing the buying of a company that hasn't done well this year versus a company that has done quite well this year. senior markets correspondent julie hyman, joining us. let's get more insight on the market, back with us from stamford, connecticut liz ann sonders. matt: chief investment strategist at charles schwab. strivinge things that equities and currencies is the expectation that the fed was going to raise rates in september was fairly strong. everyone thought you have to be along the dollar and piled in over the last few weeks and months. all of a sudden, over the last 45 trading days, it looks like the fed may have reason to push off its interest rate increase decision, and the dollar index tanked. equities obviously along with them. maybe also convincing the said maybe december, maybe 2016. what do you think? liz ann: expectations dropped for possibly moving in se

netflix has shown the success of original content strategy. hulu owned by disney fox and universal announcing it has signed up epix for its movies starting on october 1st. this as hulu steps up competition with netflix as well as amazon and hulu looks to grow its paid subscriber base beyond the 10 million subscribers it has now saying, quote, our subscribers have been asking us for more and more recent big movies. this is a landmark deal for hulu and mark the huge expansion for our offering of premium programming. of course hulu has a reputation of being about television rather than movies. this is all another example of hulu and netflix stepping up competition with cable television as more people are looking for alternatives as they cut the cord. carl, back over to you. >> thank you, julia boorstin, watching netflix, one of the great outperformers of the year. we'll talk about crude for a while i think, kayla. this is an interesting move in the middle of the day. not inventory based. we had discussions about buffett and that stake in philips

we are at netflix headquarters. matt?> recruiting and keeping employees is a big deal for companies here in silicon valley. netflix is offering a new perk that makes new parents happy: the company is offering 5 to weeks off for mops and dads during the first year after a child's berth or adoption. google ranks at the top of the bestblies do work offers 30 weeks off of combined leave and baby bonding time. if you work in california the state offers 22 weeks from leave. netflix said during the first year after a baby or adoption the employees are paid normally eliminating the switch to disability. they say their success hinges on keeping most talented victims in the field. people perform better at work when they do not worry about him. we will see if other companies in silicon valley follow suit. >> four cities are making it easier for home owns to go solar power holing a new called east bay sun shares. residents or those would work in the cities are eligible with discounts buying, leasing and free evacuations and let cost

not, however, netflix. not facebook. not apple.sold down in the red though not nearly as bad as they were earlier. apple was down 13% at the open and it only closed down 2.5%. joining with -- joining us with a deeper look at netflix is cory johnson. i was talking to larry haverty who was saying that a lot of these stocks were falling to.her than they deserved he thought netflix was overvalued to begin with. a great investor, but he is also really good at loving the stock that he owns. i'm sure those were the one he that were unfairly punished. i think netbooks is a great illustration of something we see across the world of technology. a lot of companies want to be like amazon where the market does not call upon them to turn a profit. they have even changed their business models, we see that in the private sector where a lot of private companies are saying we will not rush to an ipl. the excitingtflix trading today where the stock was down substantially at the open, tried to rally, almost positive, only to fall right after about noo

. >> netflix gives some parents big perks. the rare move that could shake up the tech industry. hey there fellow californians i know you're staying golden by managing your energy use... which means managing water too sfx: rawr especially during a drought. learn to save water, energy and money at energyupgradeca.org we saw the drmatic rescue...and now -- more details about the 20-year-old driver whoa deputy dragged to safety just before a caltrain slammed into his car. it happened yesterdy at a >>> we saw this dramatic rescue. it happened yesterday at a railroad crossing in sunnyvale. investigators say nelson gomez was under the influence. achlt e and that before his car ended up on the tracks he had hit a parked car and a bike. we also heard from the quick-thinking deputy today. i noted that the train was coming in at the angle the car was parked, that the person could strike us. at that point i dragged the driver a few feet far lther away from the car. >> as for gomez, he was taken to a local hospital after this accident. he was cited and releeszed. . >> tomorrow a wing flap wi

netflix right now, i don't what the exact number is, disney is around 12 months trailing.says if you put it in math terms, this is an emotional market and doesn't care about math but sometimes it will. netflix has to grow eight times faster than disney, which grows pretty fast, especially with "star wars" waiting to come into the barn. eight times faster and investment horizon, three to five years. the thing that is problematic about that, melissa is the top line is growing 23%. so it's very, very hard to make the numbers work. >> sure. >> second problem is that netflix is a band with hog and maybe the folks that own band with are going to be somehow or other if the government and the band width for netflix. guess what else they do with the marginal capital dollars, buys content from these companies where the stocks got more or less killed in the last couple days. they may decide they have special prices next time around. so you have a company with a high valuation, uncertain cost structure, it's a fabulous, fabulous consumer product. >> sure. >> guess what also? rates wil

netflix is hoping that will help boost content and attract users. maggi noodles may be back on the shelves in december. they were banned after claims they contained lead. a high court overturned the van two weeks ago. they will continue to sell the existing formula without changing the ingredients. those are the top headlines this hour. angie: the resignation last week of prime minister alexis tsipras is almost certain to lead to september elections.

but netflix, you're seeing a reallocation of capital. on some level you're seeing investors really chase growth. they're really chasing the top line. we saw that in this earnings season. but at 250 times you're pricing this company like it is the most important media company in the world. i think they're a distributor. i think they're a conduit. i think they're a portal, they're not a media company, they're not a content company to compete with disney right now. >> meantime speaking of disney check out shares of disney and how they're faring in the after hours session. after their earnings report. what's the key on the conference call? we'll hear from cnn bob iger later on this hour. you're watching cnbc, first in business worldwide. in the meantime, here's what else is coming up on "fast." [ screaming ] >> yep. that's tha sums up what apple investors are doing. but one analyst says now is a great time to buy and he'll tell us what it is that has him so excited. plus traders have bid up tesla heading into earnings. but there's one thing

it's a subscription service like netflix for designer clothes. let's see this closet. >> are you ready? >> wow. you are serious about khloes. >> yes, i love clothes, shoes, bags, all of it. >> reporter: her shopping habit cost her a fortune but now she pays just $99 a month to choose clothes, jewelry and handbags and have them all delivered. >> this retails for about $350. >> reporter: plus got this jumpsuit and cute dress to wear a few times then return. >> you consider the idea of rental retail that you can get 30 different outfits in a month for a lower cost than buy 30 different outfits you can see why the rental model is really appealing. >> reporter: users can have up to three items at a time and swap them out as often as they like. shipping and dry cleaning are all a part of the $99 monthly fee. >> i'm constantly looking at what's new on rent the runway and putting things in my queue. >> le tote picks the items for you. gwynnie beand mine for nine. rent the runway's unlimited service was so popular when it launched they have a waiting list

no. >> i know people in my family who are watching more tv. >> on netflix. >> because netflix is there>> i go home and i asked my daughter who is 15 on netflix and i say so could you ever see a day when you didn't have any cable and she said i could see that now with netflix. and my wife and i were like no way. i want to turn on some cable. >> that's the thing. >> but she says she would look at yahoo! something or other if she needed use. i said what if you needed this and this and this and she had an answer on the stupid internet for everything but for me it's not going to be satisfying. >>> their anchor to the cable box is sports center and the only other reason they turn on cable is to watch now, we watch the yankees and the mets together but i think that's it. they don't have another connection to the game. >> are they watching on a small screen somewhere? >> no, no, the typical way my kid watches television is with his computer in front of him. >> that's awful. >> there's actually three screens. >> except for the two day fomc meeting when you're on. >> are you kidding me? >> yeah,

as a long time supporter of netflix i say why shouldn't it be? i get to watch fantastic, original programming a heck of a lot more for $9 a month. i scrutinize my cable bill and it's more than ten times that. netflix won't be finished running until it's more than $100 million, and no it won't go there on a straight line but it is on the cusp of taking asia by storm and they like bargains in asia as much as everyone else. netflix is on the conference of two huge trends the new frugality and time shifting and it's galloping to the levels where it belongs and it's not just netflix that people watch. they watch the bargain that is youtube buried in the closets of google, but it is starting to be broken out by the chief financial officer. that will be a monster unleashed. google's stock has gotten very hot. they watch free facebook like they used to watch television. they park themselves in front of it and stare at it all of the time. remember just last week i blessed everyone to be a total idiot and it was down $82. >> this was an amazing quarter. i'

because the content is produced and distributed on netflix.n you think about shows like daredevil which is a marvel property owned by disney on netflix, disney is taking money from the network content pocket and paying it over to netflix. deirdre: netflix announcing unlimited year of maternity and paternity leave, essentially they have unlimited vacation. essentially saying, listen, we trust you to be professional. you know what time can you take and when. to me this spoke to the talent war? >> it is part of it. this is a very obvious strategy in the silicon valley space where it's like you have unlimited time to take off, so people generally are conservative with how they use their time. if you have three weeks, you're going to take three weeks. so i think this might be a good pr win for them, but maybe gamesmanship in terms of how people use maternity leave. deirdre: in other words, nobody wants to take more than his or her peer, right? >> it's winning netflix a lot of points with the millennial generation who wants culture and balance, recr

netflix's decision is in line with unlimited vacation policy. the company says all of this in an effort to help them compete and retain the most talented individuals in their field. >> netflix is setting the tone for tech companies and it motivates other companies to try to keep up with netflix. >> abc 7 news. >> some critics warn the word unlimited in the work world isn't what it seems to be adding the work culture may not make it possible to be away for too long. critics say mandated time off may be a good alternative. >>> tesla's latest earnings report is not all rosy. the car maker reported net loss tripled to $184 million in the second quarter as the company spends more money to launch the model x suv. revenue and vehicle deliveries are up slightly. and after hours trading shares were down 17 points. investors reacting to disappointing outlook on total vehicle deliveries. tesla is cutting production on sedans. >>> facebook launched a live broadcasting feature. celebrities like the rock can connect authentically with their fans. live video s

-- price of the stocks. $35 billion to buy netflix. there are $12 billion of capitalize cost and future cost for programming. 95% of the program will be written off. we don' t shorten the fund anymore. i will never forget shorting amazon at one time and probably in a week, it went up 50%. anthony: in 10 years, what are the companies that will not grow multiple values? bob: monday 5% of the bio techs, the social media companies, and some of the crazy technology companies in the cloud. there is no way to justify it. as public companies, if i walked up to you today and said do you want to buy amazon? give me $200 billion or i will give you macy' s at $22 billion, pick. but because everyone is killing themselves to pay more -- gary: there is a dislocation between the perception of a stock and its popularity in the market. buffett once said -- let' s talk about the companies that are undervalued for another you like. bob: we are buying companies like general motors. we know cars are down in china. the company' s balance sheet has shaped up.

you were listening to the netflix conference call. you feel good? >> very good. lot of people focus on short-term numbers this is of very big story. >> what are they missing? >> that it is on time, and the hardest he has ever produced and will be the most amazing car and that was important for us to hear. >> but it carried my hair out more than they sell a one week and all your. >> the preowned cars that are starting to move out out, but they cannot fill those orders enough and the demographic is much broader. >> i call that the brains of the renewed economy also apple pay so that is my stock pick tonight. i am the like this with a dip. >> i think i would buy that to do a little lower but they had record earnings of 2.$4 billion but they were down 3% but that is going up against last year. charles: there is a point when everyone in subscribes to something that might be a problem. a name say you like that people should consider owning? >> the last thing i bought was tesla it was very depressed at the time. but there is one that is crushed out there that is sufferi

we also talked about netflix, of course marvel has done a great deal with netflix.siter says nothing is in the works, but he loves netflix and likes to make movies which play on ought platforms. >> a lot of film makers only want their things to be seen on a big screen, which i like and which is why we make them for the shared audience experience, i love watching things on my ipad and i love the fact that our films. one of the favorite things to do is when you're driving on the freeway and you see the minivans and the suvs with all the screens in it and we drive up and look in and it half the time they are playing my movies and i honk and wave and they have no idea and thumbs up, so anywhere you're going to watch my movie i'm a happy camper. >> all right. finally we expect big news about shanghai disney and given what's happening with the chinese economy, lassiter says he does watch chinese market performance in terms of box office, but not just there. >> we rethink for all of our markets. you know, southeast asia is a tremendously growing market for us, all of those

we have a big announcement from netflix.re until you get inland. my seven-day forecast, a slight chance of some sprinkles. maybe a shower thursday night through friday morning. >>> we have a cig alert still in effect due to a motorcycle crash on the san mateo bridge. you can see the backups now coming up from 238. as we slide over to the peninsula right into san francisco, northbound side of 101 a crash blocking two lanes. >>> now it's time for "live with >> it's "live! with kelly & michael." today, actress and producer salma hayek. and from the new film, "ricki and the flash," mamie gummer. all next on "live." [captioning made possible by isney-abc domestic television] now, here are your emmy-winning co-hosts, kelly ripa and michael strahan! [cheers and applause] ♪

when the answer was netflix he was told to sell that.e will look for those things that are a source of cash. things that have worked for investors and maybe they think their time has run out. when we see day after day of selloff, we look for a change in sentiment. a market that is not looking for momentum. then you have companies who structured their entire business model about growing the top line because they want to be amazon. hell-bentant to be for topline growth, ignoring profits and free clascash flow. business model of companies like netflix and gopro and others, really focused on the top lined and not the bottom those guys could really get hurt. pimm: could you define what is a momentum stock? cory: great question. it is the stocks that move on their own accord. the corporate results maybe don't reflect the fantastic excitement of investors. and other investors are buying the stock opened that a greater full will buy it at a bigger price but not being directly connected to the valuation or the improving fundamentals of that busin

they watch netflix. >> right, because netflix hires all of its viewers. >> yes. >> they do. i just want to work less. >> everyone is working less, fewer hours. thought i would buzz that up. anyway time to take a break. something something john stewart. something something farewell. first a word from our sponsor. >> tired of not being able to keep your beverage fold cold. get a boob kooz zee today. "ride away" (by roy orbison begins to play) ♪ i ride the highway... ♪ i'm going my way... ♪i leave a story untold... he just keeps sending more pictures... if you're a free-range chicken, you roam free. it's what you do. if you want to save fifteen percent or more on car insurance, you switch to geico. it's what you do. ♪ two wheels a turnin'... withof my moderate to severe rheumatoid arthritis... ordinary objects often seemed... intimidating. doing something simple... meant enduring a lot of pain. if ra is changing your view of everyday things orencia may help. orencia works differently by targeting a source of ra early in the inflammation process. for many, orencia provides long-

we haven't been recommending netflix. it's a great opportunity to go after this spot we talked about the strong fundamental growth and market improvement. >> bob, a day last week where we had a sharp reversal in the market. not of the magnitude we're seeing today but then we learned after that it was the busiest day for goldman sachs buyback desk it had ever seen. i'm wondering if the climb we're seeing in stocks right now and this sharp turn that we are seeing and the fact this a lot of these names that are on the rise are companies that have big buyback programs, is this corporate buying you're seeing going on? >> yeah, no. it's a great opportunity for corporate to take advantage of it as well. it's an opportunity for investors. >> all right. >> a way to use their capital. we like that. >> thank you, bob peck. a number of stocks just turning positive, yelp, intel -- >> thank you for having me. appreciate it. >> go pro now up more than 2.5%. apple up 1 .75%. carl? >> major losses across the board. what does this midday b

they watch netflix. >> right, because netflix hires all of its viewers. >> yes. >> they do. want to work less. >> everyone is working less, fewer hours. thought i would buzz that up. anyway time to take a break. something something john stewart. something something farewell. first a word from our sponsor. >> tired of not being able to keep your beverage fold cold. get a boob kooz zee today. unbelievable! toenail fungus? seriously? smash it with jublia! jublia is a prescription medicine proven to treat toenail fungus. use jublia as instructed by your doctor. look at the footwork! most common side effects include ingrown toenail, application site redness, itching, swelling, burning or stinging, blisters, and pain. smash it! make the call and ask your doctor if jublia is right for you. new larger size now available. so you're a small business expert from at&t? yeah, give me a problem and i've got the solution. well, we have 30 years of customer records. our cloud can keep them safe and accessible anywhere. my drivers don't have time to fill out forms. tablets. keep them all dig

bloods" actress: great job, netflix. hopefully more companies will follow in your footsteps. >> what a cute baby with hazel. >> looked like her. >> i think did it. >> anyway. [ laughter ] >>> that's it for us here at 5:00. we'll see you again at 11:00. the news at 6:00 starts right now. captions by: caption colorado comments@captioncolorado.com >>> your realtime captioner is linda marie macdonald. >> you're smoking k2 right now? >> yes. >> strung out on the streets feeling the effects of synthetic marijuana. police nearby but can't do anything about it. >> also tonight -- >> my kids were like the end of the world is happening! >> trapped by trees, still without power for some long island residents damage from this week's storm worse than superstorm sandy. >> and suing the police after a violent arrest caught on camera. the man recording the video says officers are now targeting him. >> and the search for a cat burglar who uses fire escapes to get in. [000:59:53;00]

netflix has upped the ante on leave for new parents.is live in los gatos with the new baby benefit. >> reporter: parents can take off an entire year here at netflix when they have kids or adopt. one expert calls this the most liberal leave policy in the valley. this policy has techies dusting off their resumes. >> it is amazing. as new parents, you need to spend time with your kids. >> reporter: niti especially loves that dads get equal time off. her husband got just seven days. >> they need to bond with the kid as well. >> reporter: in that first year, parents can work as much or little as they like and they still get a paycheck. >> i would probably want to take off a couple of mons. three to six maybe. come in maybe part time. >> in order for tech to run, you have to have good people. >> reporter: it is all about competition among the tech titans in the valley to recruit and keep quality people. >> if netflix does this, it will put pressure on all the other tech companies who want to keep their engineering staff and their people happy