shares of pandora are up 9% this week.n. ♪ >> on "options action" sometimes risking less to make more isn't quite enough. sometimes you want more cash. that's just the case about dan's bullish bet on pandora. dan thought pandora was about to sing a happy tune. >> it could be the sort of acquisition that makes sense for a lot of pocketed players. >> just buying the stock, come on, dan, you know 100 shares of pandora would shed you back $2,000. instead he bought the september 28th strike call for 1.50. now he needs the stock to rise more than 28 ducks or above 29.50 by september expiration, but spending 1.50 to get in on pandora, you're forgetting the number one rule. >> you cannot make friends with the rock stars. >> actually, it's always limit your risk. to cut costs, dan sold the september 30 call for 50 cents. and created a call spread. he did something easier. for a buck 50. he sold the higher strike call. dan is now laying out $1. he needs to rise above 29.50 to make money. he now sees profits if the shares rise above

if pandora is a potential takeout candidate. who's the buyer? >> amazon, maybe you have a merger with netflix. there's a ton of things. this is the point about the market and the craziness in tech, we don't know what's going happen. if they're going to get weird, they're going to get weird. >> or amazon, use the stock as currency, it makes sense. it's hard to believe, might be a credo. >> and consumer staple stocks have been the best performers. and we see more to come. tom back at headquarters with this. >> coca-coloca-cola, prok or g. and we saw them in the options market. two times as many bullish spreads traded as put option. and coke, four for every put. the volume wasn't necessarily huge, but there's bullish speculation in the consumer staple companies. this is a sector up 4% on the year. far outpacing the broader market overall. some of these big names, especially consumer staples showing nice options action. back to you. >> the question is the bullish traders right. go to the chart master, carter worth. what do you see? >> this is a fear

that what bring me to pandora. they have 76 million players.ou want to become a player, that's what you do. when you think about it, you just said in the last show that spot fie is valued. pandora has a market cap of $4.5 million. the stock is down. it's almost been cut in half from the all-time highs in delm delmar. let me tell you, yelp has a little less than 4 billion market cap. so on a relative basis you would make an argument this is a cheap new economy company. >> this one of those -- first of all, is there anybody here who doesn't know somebody who is on pandora all the time. in my own house one of the things that happens all the time is did you forget to hit the button? are you still there? this is going all of the time. to dan's point, five-time sales, let's not forget that aloit of tech names can have astonishing margins. let's assume you can achieve 40% margins. at five times, you're looking at a reasonable multiple if they can achieve that, plus they've got growth and a big footprint. >> what's the trade? >> you got it, lady. so, n

some people think fat apple made by pandora ii in the same line of streaming business, pandora dead flatnot much of a bounce for tesla. disappointing numbers earlier in the week. that is not a bounce at all, tesla was down 177. we got higher sales and a better forecast from gap helped by the sales of its old navy brand. that stock is reaching 40. a week forecast that ralph lauren. nicole: the operating margins will decline because more money will be spent to build the network of this sort. when they are going to be spending more money for the network at the stores everyone starts to shriek and shiver and stock is down 3.7%. they expect global revenues to rise 6% to 8% but the spending is making everybody nervous. stocks at a new low, the number 3 loser in the s&p 500. stuart: that is a rotten shark. thanks, have a happy friday. the president using the results of the national climate assessment report to push his green agenda all week but if you read deep into the record you find results are not quite in line with the president's message. i will quote directly from the report. there has b

pandora is valued at about $4 billion 4rks$.5 billion. been cut in half from the all-time highs in early mafrmt but -- here's a big but. this company trades at five times the sales. let me tell you. yelp has a little less than $4 billion market cap. so on a relative basis, you can make an argument that this is a kind of cheap new economy company. >> this is one of those -- i mean first of all, is there anybody here who doesn't know somebody who's on pandora all the time? i will tell you in my own house one of the things that happens all the time, did somebody forget to hit the button, do you know what i mean? it's going all the time. i think they have a very interesting business model. five times sales. let's not forget a lot of tech names can have really astonishing margins when you get down to it. let's assume you can achieve 40% margins. that's not off the charts crazy. at five times you're looking at a very reasonable multiple. plus they've got growth and a big footprint. that makes a lot of sense. >> what's the trade. >> you've got i

apple go buy harmon and pandora you'll do us a big favor. to try to find >> narrator: in this episode of "american greed: the fugitives"... they were the heady, get-rich-quick days of the dot-com boom. >> promising internet riches was the way to get into somebody's wallet. >> narrator: among the companies that raises millions -- an online-video start-up with a famous pitchman who exudes trust. >> i'm sure you've heard of it. it's called the "internet." >> narrator: but the website is a sham. its only purpose is bilking investors of millions, and when the feds come knocking, one of the men who's allegedly running the scheme heads to sea. but first, street criminals turn to white-collar crime. >> this is the first time that i had seen people who graduated

. >>> and a winning pandora trade, and a loser.k for dan nathan, but now a plan to make for money with tech stocks. find out what it is when options action returns. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. >>> talk about streaming higher. shares of pandora up 9% this week. here's how dan cashed in. on options action, sometimes risking less to make more i

could pandora be next? apple announced music,nd of news around pandora stock fell in the last couple of years. last year, when apple announced -- pandora stock rose. this will spark pandora to do something to become a protected player. -- there are no talks that we know about, but just speculation at this point. pandora claims it has 9.3% of the overall listening audience. that is growing. last year around this time, it was seven point three percent. users.78 million a big player. spotify wants to go public. there could be something to do there. we are talking about a massive valuation. forget google had also pushed aggressively. it has a product that cuts across so there could be some competitive pressure there allows these players to feel itselfed and then apple with its m&a strategy. some people talking about maybe apple buying twitter. >> investors have had a chance to invest this. does the price tag makes sense for apple? >> it seems like such a big out they mustound have on their headsets a ridiculous

pandora is a great company.over 70 million users but the issue growth really started to slow down around 8%. the stock has come in, close to 20 or 30% year-to-date and it is definitely off nearly 40% from its 52-week high so -- david: who would buy isn't. >> we think potentially google could buy it. it is one of the higher grossing android apps. google is struggling with its own music service. now that apple bought beats or about to buy beats. i think pandora could be acquisition target for google. liz: pandora would push back. they took the company public. we've been following this one when it was just a stand-alone company and tim westergan founded it through thick and thin. got 70 million users. you don't think they would figure out a way to stay independent? >> you know it is always, there is always an opportunity to stay independent, but i think if the price is right, you know, they might entertain that. liz: let's grow to yelp. yelp has done an interesting move here and there lately and yes, they have come

but fast forward to pandora. think it's an buy, an acquisition target, you're seeing folks slowly starting to spend money. >> all right. thanks, guys, have a great weekend. >> you two. >>> dominic chu, dom? >> check out the maker of viking up ends. you can see the stock is down about 6.5%, but over the course of the past year, it's gained about 54%, investors thinking now maybe the time to take a few of those profits still a focus. tyler, back over to you. >> it's interesting to learn that viking oven -- >> the gold there, up about 30 cents at 1288 per ounce, basically unchanged, folks. silver a bit lower, copper higher by about 0.7%. palladium down, and platinum at 1461, down 1.40 or about one tenth of 1%. seema mody following the big movers. >> hey, tyler, we are seeing a bit of a comeback on this friday afternoon, the nasdaq up about six to seven points, though keep in mind the nasdaq down about 1.5% on the week. we've seen a lot of volatility in the so-called momentum stocks, valuation being the big concern t

you mentioned pandora.hy shouldn't apple still go after pandora, also spotify because you have google play which is expanding, amazon's discussion about streaming, buy pandora, buy spotify, become the behemoth, coloss sass of the streaming world. >> that's why this deal is difficult to size up because there were other people they could buy. we don't know if it's a done deal. second, we don't know the real price. it's true that they do have revenues. it's not like they're buying some either company. we've seen that going on. i want my company to be in the infotainment business and own the deck inside a car. that's what harman's done so well. it's one of the reasons i like harman. harman will be down here. i say if harman really gets slugged, it will -- >> down because decrease the valuation of harman. >> people will say these guys are in chrysler and fiat. now by the way if you go to the chrysler -- if you go to the home page you will see that you can also get harman. many people should realize harman is the

against pandora, but not today.g high. liz: last week twitter was getting crushed, today the second most actively traded stocks but in a good way, not a bad way. thank you very much, nicole petallides. pick a chef. for a subscription fee can aspire to become one of those top chefs. startup company blue apron. it found a way to cash in on your kitchen laziness, but your desire to expand. for about $10 per meal per person, you can create a gourmet feast for you, your family, your friends, your imaginary friends. they do all the hard work including ingredients selection and the shopping. all you need to do is put it all together, which they explain in great detail with the menu cards. they seem to like this recipe for success right now. food related companies have done very well the last two years but what is in store for this hot startup? the ceo and one of the company founders. did you experiment in in the kitchen growing up? how did this lead you to blue apron? >> i love trying new recipes and new techniques, but i

we did not ask people paid pandora usage. obviously much lower.pretty dramatic. >> here they are buy-in beats. even register.ot >> i think they have sort of said it has been an experiment. you can kind of see that in these numbers. i think it will be interesting to see where does you to go from here? what happens with netflix? wass surprised how netflix relative to youtube. i would have guessed the same spotify, pandora difference, you have to be a subscriber to use it. >> that is the interesting thing, which is a lot of the free services grow like crazy. the one to differentiate itself i pay is the subscription network. we will see if that happens in the music is less. they were the2000 first one to say to apple you are wrong. of course we guessed wrong. >> they might be hiring the guy who used to work there to run the beats music service. we will see what happens with that. i think it will always end up in subscription. >> talking about the partnership with suntrust, i know you have a custom search thing at surveymonkey, but this is an interesti

pandora very clearly is ahead of everyone else.nes is not making a big push or the difference. >> spotify -- >> yeah, so this is three months worth of data, but it will be every month. what you're able to see is how it moves over time and how do things happen. when you look at itunes radio having an impact on pandora, you would have thought they would have. >> i'm surprised spotify was so lowly rated. some of the numbers are better. >> it is free versus paid. free services -- it is pretty dramatic. >> and here they are buying a company. when it comes to video streaming, apple tv doesn't even register. >> yeah, they have said it is -- it has been an experiment. you can see that in these numbers. it'll be interesting to see where does you to go from here? what happens with netflix? i was impressed with how big netflix was over youtube. it is that spotify and pandora difference. >> that is the interesting thing. a lot of these free services grow like crazy. the one that has really differentiated itself is a subscription service of net

musicians are getting crushed by spotify, pandora, and i-radio.surveillance," alive from our world headquarters in new york. i am tom keene. joining me is early through an adam johnson. our guest host is steven davidoff of ohio state. alibaba, we will get to that in a moment. a busy morning brief with a lot going on. starting with india. >> india stocks hitting an all-time high as ballots are counted in the largest democratic election ever. in hong kong, growth slips to the slowest pace since 2012. in the u.s., housing starts and building permits at 8:30. at 9:55, michigan consumer confidence index. >> this has been a tumultuous week but if the lack of volatility. >> churn. is to mention bonds, which telling you what is happening under the surface. janet yellen, for the third time, has scaled expectations down. 2.49% on the 10 year. towards the end of earnings season. michelle obama speaking tonight anniversaryhe 60th of the desegregation decision brown versus board of education. >> 60 years. >> why are you looking at me? >> you are the only one w

today we're going to talk about p, pandora. shares up around 5% today. they got an upgrade to a buy from a neutral. they cited a few things, not the least of which is greater monetization, and the so-called stickyness with users. people are ticking around. carter wirth of sterne agee, steve cortes, actually carter i'm going to start with you on the chart. this is a big technically driven name. >> i think what is most incredible is how does one explain 20 to 40 on to 20 all in five, six months. really what it means is one thing. no one has a clue what it is worth. >> well set. >> one can only say we know it broke trend. you can see that in the well-define trend line drawn, and how the stock has given back basically 50% or more of the preceding advance. it's a case of do nothing. the stock has come down to a point where just buying because it's overdone is speculative, and getting short all the way down here is probably back technique. we think it's probably worth 23.25. >> fundamentally speaking, do you agree it's different to know how much this company i

once again, pandora has a great trove of data there. a lot of people buzzing about pandora and microsoft, et cetera. >> has twitter turned the corner now? you upgraded it again recently. stock got down to 29. it was north of 31. mira jumps on the jabandwagon today. are this moves back positive? >> twitter doesn't need to be facebook. everyone keeps asking can they be as big as facebook. they don't need to be for the stock to work. their monetization is a fraction of where facebook is and actually mary meeker talked about that today. and they just closed a little bit of that gap they advertise about half the load of where facebook is. advertising pricings about half of where facebook's is. as they start to close that you will see the revenues grow. i think it's a great opportunity. the om ni com deal proved that out where it's going. >> paul, you're a buyer of facebook. and for that matter you're a buyer of goingle. twitter is not on your radar. talk to us though about google and facebook. >> one of the things that i try to do is buy som

can someone buy pandora?ure. >> you can't get 75 million users for that price and someone like apple and microsoft and google can do it over ten years. >> there's 75 million users built into it. >> when we're talking about radio, what's the opportunity of radio? the opportunity of radio is to go into cars and to cars it's going to take ten years at the current rate of replacing the cars, and, you know, roughly 20% of pandora cars. >> let me ask you real quick. they say there's 450 different attributes and can help match and cater to what you really like. are you saying that nobody -- are you saying for somebody else to do that. they can do it for more money and why you're not worried about the technological advantage but to pay for a company that's mar sin challenged needs something more than superior technology. you need the ability to monetize. >> got to go. >> and it's what's app, not what's up? >> 15 minutes to go into the clouse close. dow up 119 points. we certainly haven't given up any of the gains. do

or what it won't hurt pandora anyway pandora's to their passive and the network where as a beach arecchuses corruption and cultivated music the program, public later this year down rockface apple may be interested in pandora's just a little music industry $5 billion market will be cheung change for some might like apple and 3 billion assure checks for some imf and apples but why were the elbow by beasts missy gelderland is well respected doctor debris street curable credibility what is the doctor they can. background you have any questions call on our web site kron 4. kron 4 as far as to buy diamonds and landscape . my dad worked as a short order cook. right here. my parents were immigrants. and they taught me that with hard work, anything is possible. i earned a scholarship to mit. and worked across party lines to get things done. i'm alex padilla. i'll protect voting rights for everyone. and make it easier to start a business. so we create jobs and opportunity for all californians. what should we order? (announcer) alex padilla. secretary of state. ithe part of us that a littwants

dan. >> pandora. prettyattractive. >> i'd rather be a seller of mostly everything but tesla impressive the way it bounced. keep that in your focus. >> i think it is time to get frickin' short to borrow tepper's words. >> i'm melissa lee, thanks for watching. see you backfocus. >> beakers? >> i think it's time to get short in tapper's words. >> i'm melissa lee. meantime, "mad money" with jim cramer starts right now. >>> my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i just want fewer days like today. my job isn't just to interta intertape -- entertain you but to teach you. call me at 1-800-743-cnbc.

whether you use beats, am, pandora, sonos is seeking to capitalize on that rapidly growing marketplacend ceo john macfarlane joins us this morning. anything going on in "your business"? >> it's going very well. >> pretty quiet. >> yeah. >> what's the general take after this deal was announced yesterday. >> positive. great to have apple behind subscription streaming services and, of course, the crown prince of music leading the charge is a good thing. >> he was asked about the business model of free internet radio and algorithms versus human curation. he seemed to think if you are relying on algorithms you won't last very long. >> i think it's more nuanced in that. in the united states, for example, about half our listening time on sonos is pandora, which is both human curation and algorithms. about a quarter is internet radio from anywhere on the planet and another quarter is the subscription services. so it's, you know, it's just guesting started. it's going to be a mix of both. >> where do you think the growth will come from? >> of listening time. >> of listening time. >> i think it

them so that apple hits the ground running with a music streaming service like spotify, similar to pandora, and do the thing that for whatever reason apple has not been successful at. jimmy iovine and dr. dre can write a deal that they could not. do you think they have those deals with them? >> that's an unknown. what we do not know is the scale of the beats business model at present. what kind of numbers should they be penciling in? you can make a case if you are apple based on your number of users, 800 million credit card numbers on file. you can make it work in pencil it in. it comes back to, again, at what kind of return will this entail for shareholders? are there any barriers to intrigue? >> jon erlichman in l.a., without about the berlin wall and wanting to bridge the differences between apple in the music industry. what do you make of that? is beats really the solution? >> it could be. following what alex said, we heard today from george blankenship, an apple executive who played a big role in the retail strategy who told us he does think that there's something we are not talking a

david: that is four bucks a month for pandora. >> for pandora app, sort of premium service is 4.99. is, that the although these are fantastic services they really target to that small part of what is a very, very small marketsy amounts to people who will actual pay for music. what we say, if you take that entire market, there is 20 million people who subscribe to a music service right now. there are two billion smart devices. that means 1% penetration of the smart device market. so we're really going after the 99%. liz: you believe that they're being held back because it costs money. talk about what yonder does and how you do it and how you believe you'll win? >> we hard bundle the cost. we include the cost of music when you buy a device or when you subscribe to a service. so basically you come to yonder music tomorrow. you buy one of these two really fantastic htc hand-sets and the cost of music, entire cost of music for the whole lifetime with that device is already built into the price. liz: no matter what you want to listen to, no matter how many songs you add? >> no matter what

streaming music, pandora, spotify, those would be the challengers.see some of the revenue being lost from actual downloads . 2013 was a first year since itunes stores open the downloads are actually down. we know from the tech world that whenever there is no growth, it is cause for great concern. now there is growth on beats. this is a company that started out making really high and had -- high-end headphones. first month, first day, 1000 users, then they get to 24,000 users, 28,000 users in march. pandora has 76 million. revenues from subscriptions are to $1.1n the year 21 billion. all these people are cooler than you and me. may we can get some of that credit suisse. wearing the headphones. >> who is going to cash out on this deal, hans? they bought a minority stake for 500 million. it looks like their investment of 500 million will return just 1.5 billion. seven and a half months, $1 billion, that is a good deal. >> get me to dr. dre songs, just two. all knowwe chronic. i only do east coast rap. >> thanks, hans. good to chat. is the latest nr seri

they are trying to challenge pandora and spotify. more subscription-based and pandora is more revenue based in terms of what their ads are. subscriptions are up 50%. that is when you look at just the subscription streaming industry business. behind this company, some big names. people way cooler than any of us. dre. i will not ask you what dr. dre's real name is. if you know it, it you get bonus points. >> i know his seminal album was called "the chronic." >> this is a family program and we will not talk about it. >> what is his real name? >> it is andrew young. do you do spotify or pandora? x i do spotify. i'm a bit prehistoric. music.igital i cannot let go of the past. do you still buy? i download songs, but i do not have a cd player. >> what was the last album you bought? >> the sound of music. children love it. the movie has everything you can imagine. >> what more can i say? are getting live pictures from the russian capital moscow. what you are seeing is the country's victory date for aid in red square -- victory day parade in

. >> these guys complain about how much little they make from pandora.ou can sell a million albums on pandora and get a check. maybe they have this cool factor. not just the general public, but the artist themselves. maybe these guys become ambassadors for the entire community. stuart: if apple hasn't under their umbrella -- charles: there are a lot of people under them already. >> how can you sell that product? stuart: you have three companies getting in. google, apple -- who is the other one? [laughter] stuart: there is two or three companies that are getting into absolutely -- amazon did that it peered everything. they totally dominate these days. >> diversification. it makes a lot of sense. the whole world loves it. what do you do next? you know what i would like to see, i would like to see a movie service like the model of beats. it is a moderator. stuart: thank you, jeremy. the white house counting its energy policy. a report that highlights a point to% increase in gdp. it will cost the economy 51 billion a year all the way through 2030. kentucky,

it is that spotify and pandora difference. >> that is the interesting thing.ot of these free services grow like crazy. the one that has really differentiated itself is a subscription service of netflix. we'll see whether or not that happens in that music business. i'll be very tears to hear your opinion. back in early 2000, they said apple, you are wrong. we guessed wrong. >> they might be hiring the guy who used to work for me to run their these excerpts. we will see what happens with that -- and their music service. we will see what happens with that here. .> tommy about this ownership and i have a custom search thing. this is an interesting partnership. >> they say we are interested in doing this with you. they represent reports on a regular basis. there was a third link in survey very a lot of people are doing this. we want something we can track every month and see what is happening in e-commerce and social media. we work with them to develop this year this is their report and their data that they will publish. they are using our surveymonkey panel audien

pandora got an upgrade, continual rumblings that it might get bought. i hear apple might buy him, they don't like beets or something so pandora is up 2% of 24. lower profits disappointing forecasts from take 2 interactive, they make a papa the grand theft videogame, down 6%. are you curious about our stock? if you are you tweet as using hash tag ask pain and charles will give you what is the expression? give you the skinny on a stock. stuart: you may not -- stuart: on tractor supply's. i know one of the founders. charles: amazing company from sullen. the stock might be ready, and every year they grow 58%. that growth will drop more than half over the next five years. one of these great stories that is running out of steam. they missed the last earnings report by $0.02, they had a string of downgrades. oppenheimer, deutsche bank under the 250 day moving averages. if i'm in the stock i get worried because the next major support is $50. i'm not a buyer yet. and a little ball the initial little vulnerable. stuart: let's get to the talk of the video of the f

>> what i'm thinking is 10 days from now and who is going to buy pandora and spotify.nk you very much. -- >> thank you very much. >> wouldn't it be great to have a week like dr. dre is having? he may have found a place that could celebrate a deal that will make him one of the richest man in hip-hop. according to the "new york -- close to most to closing on a mansion formerly owned by tom brady and his wife gisele. in, he will also have a state-of-the-art sound system. >> playing beats. >> of course. >> coming up, you will see how furniture is going to be turned into a tablet computer. no joke. ♪ >> imagine turning your couch or coffee table, any piece of furniture in your living room into a tablet computer. one company has found a way to do it. here is elliott. >> in the futuristic film open up -- futuristic film "minority report," they track down kernels before they commit a crime. this is more modest. our householdrn into more interactive ones. his first target, overhead projectors. >> you can take any one of the 50 lane projectors installed worldwide, plus 10 millio

i asked cook you got to compete with pandora. he told me he was not worried about the competition. his only focus was building the best product. back to you. >> it is true, it's like the cd's of not too long ago. the common comment is this deal is a head scratcher. do we care? >> why is it a head scratcher? because they paid too much or -- >> how does this really fit into their -- >> we said when it was first announced or first considered a couple weeks ago we said it puts them -- gets them into a different silo i guess for lack of a better word. they just made that higher. this is more about the cool factor. the apparel factor. i don't think this is a technology thing or has anything to do with beats, the technology. i think it has to do with the cool factor. i think it makes a lot of sense on that metric. >> i agree. i think it's more of a consumer product move and you know, to me, it is not mutually exclusive in any way to any other deal for them. they have enough money to do every deal out there. this is nothing. >> this is 2.2% of their cash. >> let's get the twitter hate mail

that's triple what pandora has. for all the success pandora has enjoyed, talking about a $5 billion stock. i'm sure it's lining itself up for an ipo later this year. and you can imagine they'll be seeking a big perhaps $15 billion valuation. often right before an ipo, prices, there's sort of a last chance where people like google get a chance to come in and make an offer. >> and the current valuations would be an offer north of $4 billion at this point. you also say that google could go, not the full acquisition route, but actually buy a stake in a chinese company? >> yeah. google has turned its back on china. that was several years ago. they're really not benefiting in any way from the explosion of android in china. all that data and what people are doing over there, google doesn't know anything about it. so i think that was a decision that was sort of personal decision based on sergei brin and his experience growing up in the soviet union. i think the ceo is much more pragmatic and i think there's going to become

. >> spotify, pandora, whatever. >> pandora is a radio product and a program and put out what they thinkst, a good selection. this is what you want to listen to, what you put together. streaming services have a discovery component. you can look for a genre. i like this artist, what else is like that? -- what else is like that? in the middle of this story i forgot what the song was about. i listen to two or three other songs listening -- other songs off of youtube as opposed to buying it. >> can i be as hip as bob kerrey? >> there is only one bob kerrey. >> we are squeezing the artists. artists are getting paid less and less. you have seen commercialization's, advertising. there are some streaming services that specialize another john or special interest of that nature. growth ofeen the huge alive, the huge growth of concerts. that is where they will make money. >> it is also an opportunity. i went to marcella says program. they introduced a 10-year-old kid who played the canopy. he got introduced to the world as a consequence of streaming, not as a consequence of going to a record or dig

and that's just the case with dan's bullish bet on pandora.to sing a happy tune. >> i think it could be in play and reasonable, and could be the sort of acquisition target that makes sense for a lot of deep-pocketed players. >> but just buying the stock. come on, dan, 100 shares set you back $2,000. so to spend less, he brought the september 28 strike call for $1.50. he needs it to rise above $28, or $29.50. but spending a buck 50 to get in, dan, you're ferlgting our number one rule. >> you cannot make friends with the rock stars. >> actually, it's always limit your risk. so to cut costs, dan sold the december 35 strike call for 50 cents and created his call spread. but he did something better, he made making money easier, and between the buck 50 and the 50 cents with the higher strike call, dan is now laying out just one dollar. and now instead of needing it to rise above $29.50, but he needs it to get above $29 expiration. >> he should work for nasa or something. >> or star in options action. because since the time of the trade, shares have

>> you've got amazon being talked about, google play, spotify, pandora, itunes radio. >> it's a reallypace though. there are a lot of players and still really young and still shaking out. still figuring out what we want to be when we grow up. mark my words, about context and the dominant themes. >> what can you add? what beyond that? >> you said curation? >> that's actually one of his band words. >> band word? >> it's such an overused word that year. i'm going to go curate your song list, like it just bothers me. this is a personal issue. >> it's a personal issue. >> a heated debate, especially the man versus machine element. people still don't know where they fall. >> back to my question what more you can add beyond that. as brian was saying, so many players in this space. they all do things slightly differently. nonetheless, is there something more? where can you go beyond to differentiate even further? >> i think a recent partnership we announced with the weather channel is a real example. use realtime weather information to better create the context you're in and improve the mood b

interested parties that make that particular brand and its offerings more appealing to apple than perhaps pandora and spotify would be. >> it paid over $3 billion to buy the company, three times as other plants -- buyouts. once all-powerful itunes software is losing ground to streaming services. that, apple has nothing. they will not be able to attract people to buy their high-priced hardware. they need to move strategically. givingppears to involve dr. dre full-time positions at apple. dr. dre will focus on his music as a priority and will work for apple when they need him. staying in the united states, the american economy took a bigger hit from harsh winter weather during the first quarter than expected. figures show the u.s. economy shrank by one percent between january and march. it is significantly slower than a previous prediction for the first quarter and is a turnaround for the last three months of 2013 when the u.s. economy powered ahead with a growth rate of 2.6% on an annualized basis. much of it was attributed to the strength of the severe winter weather that hit the united states. a

i speak pandora. he went to jared.elebrate life's unforgettable moments with a fabulous selection of pandora charms and bracelets - including these charms, exclusively at jared the galleria of jewelry. telling her life's story with just a turn of the wrist. you're good. i know. that's why he went to jared. i began losing my sight to an eye disease when i was 10. but i learned to live with my blindness a long time ago. so i don't let my blindness get in the way of doing the things i love. but sometimes it feels like my body doesn't know the difference between day and night. i struggle to sleep at night, and stay awake during the day. i found out this is called non-24, a circadian rhythm disorder that affects up to 70 percent of people who are totally blind. talk to your doctor about your symptoms, and learn about the link between non-24 and blindness by calling 844-824-2424. that's 844-824-2424 or visit your24info.com today. don't let non-24 get in the way of your pursuit of happiness. ♪ [ male announcer ] celebrate mot

and pandora having a good couple of sessions, up 4.25%.helping the nasdaq do rather nicely, gaining 32 points at the moment, three-quarters of a percent. nice move to the upside. that means it has risen two of the last three weeks. look at the russell 2000, up about three-quarters of a percent. and, of course, the dow jones industrials up 18 points at the moment to 16,509. the dow did lose ground last week. let's get to merger news dominating the monday headlines after at&t finally made the offer official. people agree over there. we've been talking about it. buying directv for nearly $50 billion. $95 a share. the stock is well below that right now, but we'll get more on it in just a moment from both a regulation stand point, a competitive standpoint for people who want cable and want broadband, wi-fi, the whole shooting match and much more. and talk about rejection, no, we're not talking about the nba playoffs, but about pfizer. it's upped its bid to as -- astrazeneca to $120 billion only to get the brush off. several analysts say, nah, i

he said the russians were basically opening a pandora's box.he united kingdom talked about ukraine ufring a measured response. and talked about the hypocrisy of russia being breathtaking. and the u.s. ambassador said it was remarkable almost unimaginable the way that ukraine was keeling with this crisis, and there are 26,000 square kilometers being fought over with russia having its beety eye on and russian has done nothing but try to grab territory. >> and ban ki moon releasing a statement what did he have to say? >> he said he was very -- gravely concerned about the situation as it's unfolding in ukraine and calling on all sides to come together. >> reporter: and we're also hearing that the un secretary general has been in high-level meetings regarding the resignation of a senior diplomat, what is that about? >> two stories at the un today, both of them absolutely huge. the un special enjoy to syria, he took over the job in 2012 from the former un secretary general, ever since he took over he has been threatening to resign, and the reason for

now there is direct competition for itunes from online streaming services like pandora and spottify. it's a huge growth business. revenue from music subscription services rose 50% last year to more than $1 billion. now online music services have 28 million subscribers compared to 8 million in 2008. apple appears to want to make inloads in the streaming market. on thursday the financial times reported apple is preparing to buy beats electronics for $3.2 billion. beats was founded by hip-hop legend dr. dre in collaboration with veteran music producer jimmy iovan. the headphones and beats music, an online streaming platform. platform. dr. dre looks in the camera and cubs himself the first billionaire in hip-hop right here. if the deal goes through it will be the change in strategy for apple. steve jobs was known for innovating from within the company, but it's not an unusual move. facebook's purchase of instagram and yahoo's acquisition of tumbler are two of many examples. dr. dre's beats electronics headphones struck chords in style and substance, and it's not just the listening public

of course, sampling technology does open up somewhat of a pandora's box for musicians.f i can play the sound of violins, maybe i don't need to have a string section anymore. so to some degree, it has changed. it's the cotton gin so to speak. it's changed the nature of the way music is being made. i liken the whole studio experience to playing an instrument itself. look, every musical instrument is just some kind of a contraption anyway, and in many ways, the tape recorder has almost become like another musical instrument. it really makes each individual musician kind of like a conductor, a composer, an arranger. it affords each individual musician the ability to do all those things. so it almost brings us back 500 years to the days of the wandering minstrel where like somebody had to write their own tune, walk from village to village, play whatever instrument they could, and they were the whole show. (shapiro) i graduated from high school in 1960, and i didn't have a tape recorder. i had no technology. an electronic music studio was oscillators taken from the physics la

they have not been blowing away the music world since streams has come on with pandora.this company as innovative as it was five years ago? >> well, i think so. i think part of the issue and part of the knock on them not being innovative is they're rhino chasers, unicorn chasers, you know, they're bigger, they have had the ipad and it isjpd2t really, really hard to come out with products that address that big of a market and have that big of an impact on the world. and i think they try, which takes a long time. so you know, i think it is still an incredibly innovative company. i don't knock them for that i just think it is a really big company. it is hard to move the needle at big companies. >> all right, andy, thank you very much, we appreciate it. andy is with pacific crest companies. >>> shares of abercrombie announcing a smaller than expected loss. revenues fell slightly but were still better than analysts' estimates. looking ahead, the company stood by its earnings forecast, the stock rose to $37.14. >>> a health care deal in the news today. health care facility ope

dre maybe a billionaire and also competitive for pandora. >> gary b., bull or bear on that? >> i'm bear. i don't like companies where their business model is free. >> john, your prediction, quickly? >> twitter is beaten up. i think it's too far down and goes up 20% in the next year. >> jonas, bull or bear. >> down side. >> hash tag us on twitter. >>> forget about too big to fail. where some obama care websites set up to fail. i'm neil cavuto. massachusetts dropping the current health care exchange website because costs, well, apparently are out of sight. oregon is already ducking out and maryland is close to saying, well get us out. who is exactly is stepping in? will the united states government, the healthcare exchange ring a bell? was that the plan all along? charles payne and dagen along with adam and charlie. i want to first of all thank charlie for filling in the past couple weeks. couldn't get back a moment too soon.

right dna could eliminate deadly diseases, and some say that doctors are playing god and opening up pandora'sox. our series, making babies. >> reporter: it may be hard to believe. but a monkey living near portland, oregon, is giving desperate families hope. she's the result of years of research. >> knowing that it works in a monkey, this procedure will be pretty easy to translate to humans. >> reporter: his cutting edge work could literally change the genetic future for families like this one. >> how you doing? >> reporter: the louisville, kentucky family, isn't sure how much time 11-year-old ari has to live. >> what does it make you feel when you see him smile? >> it makes me feel good. that's the only thing he can do, and it makes me even feel like he's somewhat still there. like he's there. >> did you have a busy day? >> ari suffers from leave disease, affecting his mitochondria, taking his nutrients x although both of danielle's sons have the genes, only ari is affected, he has an enlarged heart. next time he gets sick, danielle is likely telling the doctors not to revive him. she's pri s

we also upgraded facebook and when dora -- and pandora.e more out there in terms of the risk curve, but also offer really attractive growth profiles. following the recent decline, what we think are attractive valuations. >> a lot of people would say that facebook is a baha'i evaluation, but i could to my point of how can you value a new company?y -- why are you so bullish on facebook? >> we have a 12 month target price, and the way we think about it is relatively simple. based on our numbers, we are looking at a pe of 40 to 50 times on this year's estimate. we're looking at earnings growth that will be that much lower over the next three to five years. we are seeing a pretty attractive growth opportunity, but valuation that is not unreasonable. .> thank you for joining us ♪ >> live from bloomberg headquarters in new york, this is "market makers." >> at&t gets the picture. it is in talks with directv. the price is about $50 billion. >> the gift that keeps on giving. show marissa the money, the yahoo! ceo spent more than $1 billion on tumble

take a look at pandora, competitor. the beats music competitor down earlier today but right now up a healthy 2.5%, liz. this could be news of prospects of it maybe getting acquired or being looked at again. we're also looking at harmon and skull candy, they compete with beats headphones. they're both up on this news. liz? >> liz: interesting. and let's not forget sms audio which, of course, is run by 50 cent. we've had them on many, many times. these names are in play because they already have the hardware x the assembly line's up and running. fascinating developments. now to the markets, the major averages little changed. what's interesting here is that utilities, the ones that everybody in the past six days of trade have said are the places to be right now because they are safe with good dividends are selling off. okay. by anywhere from half a percent to 1.5%. but let's find out what's really at work with the floor show. our traders at the ready at the new york stock exchange, cme group and nymex. good afternoon, tedd

> >pandora is another stock that made a really nice run in 2013 but may have gotten beaten up toward the second half of the first quarter or the beginning of the second quarter of this year. they have come off the highs quite a bit here and if the market liked them when they were 10% higher, they should be a steal down here. we're seeing a lot of money fly into old tech too. intel, hp cisco, and ibm. > >what about old guard names such as ge or ibm what are you doing with those stocks? > >i generally don't trade those names that much because they don't move. and as an options trader i like volatility and i seek out volatility because it presents opportunity for me. all the names i previously mentioned are good plays in my opinion but they do represent more risk because they do trade like momentum stocks than blue chip value plays. > >thank you james. that's our show for today! as always feel free to follow us on facebook and twitter. or send us an email. we look forward to hearing from you. from all of us at first business...thank you for watching! >> announcer: the following is a pai