brand and the disney experience so wherever you try a disney product, largely, you're very satisfied with it, especially if you have kids. and you know, i saw all the marvel movies, every single one of them. and they're beautifully executed they've got "star wars." they've got so many brands and i think it will be interesting to see how they do in this streaming platform, because their history online has been pretty spotty and it so, will be interesting to see if they can take those learnings from previously and use this incredible trove of content and marketing savvy and make it into a success >> kara, i actually think that disney is a good example of the dynamic that we were talking about just a couple of minutes ago. i mean, writ large in digital, in content, nobody is thinking about disney as being a monopolist but if you're in the theater business, with the kind of year that disney is having and the fingers that it has in various spots, you might be getting concerned about its market power, just in that narrow theater market, right? >> yeah, well wich, i haven't th of that. that

introduction is why disney moved. if you are a disney investor now, you have to worry, okay, dw$7 is better, but they don't have the amount of content netflix has, number one. >> they're not trying to be netflix, and they don't have to be netflix to win, right >> they don't. but they also don't have the breadth of menu to appeal to so many different people. >> right they have legacy content, and the legacy content is very familiar to the families in this country and it is something that people want. so i agree with you. >> absolutely. >> they don't have the breadth, but i think there's more value in their content versus what netflix is curating. >> but who is writing the check? is the 8-year old watching "beauty and the beast" writing the check each month. >> you have children you understand with junior comes up and says, i want to watch whatever it is on disney, you're going to write that $8 check, right? >> no, i'm not going to tell him, no, look, you should watch "lou black" instead. >> exactly. >> mel, you want to

disney's "the lion king" remake roaring at the box office. the film became the highest opening ever for a july opening. the lion king racked up $185 million in the u.s., $269 million internationally. to make it the highest opening in july ever despite relatively poor reviews ahead of its release seems like everything the light touches is disney's as the company controls 35% of the studio market share in 2019 so far. disney also announced that the avengers endgame toppled avatar as the highest grossing film of all time with disney's constantly growing catalog, can the stock keep rallying to the tail end of the year joining us now is bernie mcturnen, a vice president of rosenblatt, holds a bullish buy rating on disney with a price target of $175 bernie, if i am of a mind to own individual stocks, and i like companies that are good steady growers, is there any reason i wouldn't have disney as a core holding? >> yeah, certainly disney is our top pick in media right now. we have a $175 price target. the way we get there is valuing the disney plus

the details and whether disney's dominae tncathe box office can continue, right after this a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity. you need decision tech. dto experiencer gthrilling performance. now, at the lexus golden opportunity sales event. get 0.9% apr for 60 months on all 2019 models. experience amazing at your lexus dealer. >>> disney continues to dominate the box office this year with another record breaking remake in the lion king the company now holds the record for the highest grossing movie of all time, now that avengers has surpassed avatar, and they're no stranger to this kind of success disney has had the top grossing movie every year since 2012 and has been the top grossing studio since 2016 i'm joined by daniel loria, and julia boorstin is here as well julia, they're so dominant i start to wonder, i mean, do we ask about antitrust, or is that a weird place to take this >> well, i think it's really not an issue of antitrust because if you look at disn

if you want to own a stock with exposure, you could do better than disney, maybe but disney is a no brainer. >> ahead of next week's fed meeting, doubling down on bank stocks, easing monetary policy will boost financials and city goldman, bank of america will be among the winners, all three stocks getting an upgrade to out performance. it's our call of the day any thoughts here? >> it's interesting. if you're right about one and done in terms of the fed, then that means that the money bank earnings estimates actually go up because most of them have already baked in three cuts. so if you only have one, obviously optically the numbers are going in a different direction than they have been for the last several years second you have a very, very trag attractive allocation program happening. they're all buying back stocks, just increased their dividends if they're right about the cycle extended, then that will benefit, every company talked about the consumer and how it's so strong. the stocks have outperformed i actually added to bank of america after they reported. >> two more things i agree wi

to explain the weekend and the year that disney is having. hey, julia >> well, carl, disney has actually hit multiple new records this weekend "lion king" grossing $530 million plus worldwide that includes $185 million at the domestic box office. that's the july record, the second largest opening of the year and if you consider this animated mated film, it's the largest animated opening ever. and all of these records are all the more impressive considering that the film got a negative 54% critics got a 54% negative rati on rotten tomatoes disney hit a second record avengers end game have topped avatar the biggest box office worldwide 2.79 billion all of this builds disney box office dominance and disney's dom the nance is likely to continue when you look at the three other big franchise films it has coming out this year but this weekend's box office surge drawn audiences back to theaters can help with sony's "once upon a time" and universal's fast and furious and this benefits feeder chains. we see imax up dramatically. i want helps close the

to say, maybe i can go for a less expensive disney plus and borrow somebody's password for netflix. >> it's a good question. on disney plus, our general view, a couple of points firstly, broadly, we don't view video as a zero sum game historically, it never has been. as consumers shift from linear to streaming services, multiple platforms will win second, we don't view disney as a substitute for netflix netflix's content is much broader, definitively, initially when disney launches its service in november. and then third, it's not -- disney is not going to have an impact on netflix internationally for some time, because they still have zmooe-- disney has a bunch of output deals in various international market which is will limit the quality of their service initially. they'll obviously get through those output deals and add it to their service. so, no, video is not a zero-sum game netflix, you know, kind of is definitely a platform in the leading platform and we think with what they're doing on the content, et cetera, user experience, they'll be there for it >> lee, are all subscrib

disney's "lion king" winning big at the box office. despite harsh reviews, disney's avenger end game passing avatar being passed here to talk about all, disney's domination at the box office, brent lange, john litman is also here thank you both for being here. what is going on 40% of the market is now dominated by disney? >> if you factor in the fox contribution which is only about 5%, yeah, it's 40% dominated by disney so, disney is just blotted out the sun for all the other studios and everybody is punching up right now. >> what does that mean does that mean they won't get space in the theaters? is this a concentration issue? >> that's some of it if you look, basically all the other studios steered clear of this summer, this year really. you don't have a bond movie, jurassic world they let disney have this runway >> right >> the reviews have been terrible, terrible like terrible, terrible. we were talking about 8-year-olds who have a view this is not the greatest movie in the world. >> that is true. and yet and yet the genius of what

disney breaking a big box office record over the weekend. we've got the details of that. >>> and a $3 million payday. fort nite's world cufilsp na wrapping up over the weekend and one teenager scored in a very big way. we'll explain next >>> it's been a blockbuster year at the box office for disney setting the record for the highest grossing year and it's only july. we've seen it in the stock price today. >> disney's roughly $7.7 billion in worldwide ticket sales is the most a studio has grossed in a year and as you mentioned we're only 7 months in this comes as "the lion king" closes in on a billion dollars at the worldwide box office giving disney the five biggest films of the year. and disney's dominance is set to continued with frozen two coming out in september and "star wars" the rise of skywalker in december we'll have to see how disney uses its box office success to drive subscribers to its streaming service. >> i'm playing devil's advocate a little bit here but to what extent is this year's success based on sequels or remakes which

but disney, the franchises that disney has, we don't even -- come on "star wars," you can just go through them "stranger things" is not a franchise. you can't even compare the two >> i don't think anyone would disagree here on the conference call, there's reid hastings talking about they love prequels in india. we're going to give them a prequel. does bob iger have artificial intelligence that they like prequels in india? these guys are big thinkers. again, i'm not writing off reid hastings >> as you should not why would you? he's had a proven track record of success, even when they've had some difficult periods >> david mentions disney franchises i saw "lion king" last night it's not getting great reviews there are pieces this morning saying it's still going to overtake "beauty" as the top live action reimagining of their vault. >> are you serious wait until they start writing on the new nvidia chip. he showed me a clip of "star wars storm troopers," but it turned out to be the video game. they can do animation in a fraction of the time with the new nvidia chips one of the things so inte

disney breaking office in the a box office, this time it's the lion king hauling in the biggest opening for a july movie ever. it's monday, july 22nd you're watching "worldwide exchange," and it begins right now. ♪ >>> good morning and welcome to sh"worldwide exchange" i'm domic chu in for brian sullivan today. stock index futures inindicating the dow will open up by 54 points the s&p would be up by 6 points and the nasdaq up by 20. the major averages all coming off their worst week since may on the treasury yield side of things, we're seeing a slight tick lower in ten-year note yields the two-year 1.82% let's go worldwide in the asian trade. japan, this morning, you can see here down by about one quarter of 1% this as shinzo abe the prime minister declared victory in the country's national elections just yesterday it's a win that could ensure his place in history as japan's longest serving prime minister also in china, we're seeing the moves on the shanghai composite off by 1.25%, the country ice new nasdaq style tech index trading just today the star market saw shares of a 25 compan

and disney domination. the studio breaking an all-time record for annual box office earnings, and of course, it is only july. so, there's a lot for investors to digest this week with stocks at record highs. jim, coming off of those on friday, you were out, but a lot happened good to have you back. >> thank you the starbucks call's kind of the emblematic of what happened this quarter. starbucks had run big. so you had to figure, no matter what, how could it really move then it goes up big dollars because it's better than expected, better than feared what we're seeing are companies that we were worried about because stocks have run, and then the stocks do okay. so, this is a short seller's dilemma. let's say you've been betting against companies because you truly believe there's been an earnings deceleration. if earnings just stay in line, the stock flies. if earnings are a little bit below, the stock doesn't do anything. >> right. >> so, there's just this kind of bid underneath because of that and because of

if disney plus, espn plus, any one of those shows good news, disney stock will continue to go up but bob iger, who by the way has been very quiet of late. i wonder if he doesn't have something up his sleeve about disney plus and who's making movies for them. i do have to marvel that -- not marvel, i like that. >> no pun intended. >> that i saw a good review of "lion king" and it just didn't matter what an incredible thing to have really no critics and people just go anyway well, it was hot i remember there was a time we used to go because it was air cooled at a movie. and the heat wave did, i think, help things. >> yes. >> but this movie -- this movie machine is extraordinary >> it's true i'm looking at percentage of buy ratings, i think 68% buys. >> everybody likes it. >> coming out of that investor meeting. >> it's as liked as johnson & johnson is hated. >> yeah, which is dragging the dow today. >> johnson & johnson, they chose not to settle on opiates they're going in talc. they talk about a roll the dice strategy but they're going to be in the bunker soon. they have to win someth

the other just going higher, comcast or disney, disney well above 200 billion. that doesn't set off any alarms that there's a $30 billion market cap difference and a five fold difference in revenue >> one is growing 25%. while i don't cover disney and comcast, i believe they're growing in the low single digits >> low single digits >> one is expanding margins 300 basis points plus a year they said they can do that for multiple years >> netflix was 30 billion a couple years ago the future was kind of clear for what would happen. the future as bullishly as it was portrayed, now that we know the numbers, in this country it didn't match up to that narrative, did it? >> i would say a couple years ago you didn't know they would be the leader in this category i think invests have a greater level of confidence that this is the category leader over the next couple of years i don't want to discount disney. >> in streaming? >> yes >> everybody will have a streaming service. so they'll be that much better at developing content? >> i think number one, their scale in terms of

and the money and distribution and the disney name that's put in behind it disney has the best chance to get a number of new subscribers, millions of new -- will they ever get to netflix? i don't think so i don't think it matters much. but do you think netflix losing so much license content to nbc universal and warner brother s, does that make a difference to netflix's trajectory >> i don't think so. >> here we are now, you have these new mega media mergers that have gone through what needs to happen now what happens to the smaller players? >> well, who is a smaller player >> well, cbs and viacom. you have lions gate. >> i've never thought, don't believe, that it takes size really because you have -- if you're making content, there are so many buyers, so you don't need to have size, you just need to have talent and some energy, and you can do well. can you build a big empire unlikely but, so i don't think that the smaller players are necessarily endangered all of broadcasting is endangered because what's happened with streaming and with other services is the only people who are along

. >>> plus, can you feel the love this morning disney's "lion king" roaring at the weekend box office those big box office numbers when "worldwide exchange" returns right after this th wipe? try new mr. clean magic eraser sheets. just wet, squeeze and erase icky messes in microwaves and on stovetops for an amazing clean, get the power of mr. clean magic eraser in new disposable sheets. we like drip coffee, layovers- -and waiting on hold. what we don't like is relying on fancy technology for help. snail mail! we were invited to a y2k party...

. >>> disney's double delight. "lion king" roars and avengers end game now the biggest grossing movie of all time will disney continue to cast its spell. >> call of the day goldman getting bullish on the chip names >>> the investment committee is ready to go. the "halftime report" starts right now. >>> it is great to be with you on this monday our investment committee today is here. we start off with what will be a big week for the fang stocks josh brown, what are you expecting here let's start off with facebook? >> i don't think facebook and netflix have anything common if you're long facebook don't look what went on with netflix facebook is a singular story the stock is telegraphing everything you need to know about how strong the quarter will be. the main concern that hang over this stock have nothing to do with fundamentals or ad rates or user rates i really think it's about how bad do we think the next round of fines and/or regulations will be i would point out, though, historically those things have actually

>> disney, disney, disney love it. think it goes higher. >> let's go final trades. >> i will start with american express, making a high and showing the strength of consumers but fortune brands fphs got into that, second directive on housing. >> josh? >> i will reiterate disney i think this is their year they had a good start to the year so far. there's so much more potential as the new films come out and the app hits and i really feel that it's an entire rerating of the business it will go from being a low multiple consumer discretionary to being thought of much more than the way it should, which is a media company with a lot of potential of growth around the world. >> so the stock got crushed because the fda said we don't want to see your results and now it's back on zonenix. >> honeywell, this is an industrial company. >> j.d. because of the shopping fe festival they created. >>> before we go, i want to take you back to hong kong. live pictures there. thing as peer to be a bit more calm but an hour ago you saw riot p

the way i see it, the only reason you're in netflix is because of content we know disney is in the way, a lot of stuff is going to time warner >> the other thing i'd like to see about the options trade, buyer rights is one of the most popular things you sell calls against it and you look at that premium but if there's risk to the stock, this is a better trade to do, buying long calls against it, but you're receiving the benefits >> netflix is not the only stock on fire. energy stocks is the best performing sector in the last month as oil prices climb and tropical storm barry is set to make landfall this weekend which could drive prices even higher what do you say, mike? >> we actually highlighted a trade we saw we saw a very large call spread. someone was trading at 65 to 75 out in december. this is basically a way for them to take a look at the lower end of the range and the upper end of the range we've seen in xle besides the hurricane, there is other catalysts. a lot of energy firms will be reporting in the next several weeks. i think it's interesting when i looked at that trade, th

disney has brought in a record $7.7 billion at the box office this year. three of its films across the billion dollar mark, big part of all that avengers captain marvel and aladdin. lion king and toy story 4 are expected to cross the billion dollar threshold. >> whoever is running disney's movie studio better get a bonus. >> it's paid in spades. >> almost in one movie i think it was a $4 billion deal. >> something like that, yeah. >> two avengers paid for the entire marvel thing. >> it's been brilliant >>> now to the video game world, the world of fortnight crowned a new champion, 16-year-old american kyle won the inaugural fortnight world cup solo final in new york, yes, that's a thing. he managed to get by 99 opponents earning 59 points through six games. the runner up only scored 33 points he took home the trophy and $3 million bucks. all from playing video games. >> that kid needs to take 30 minutes a day off of games, start watching cnbc. now he's got some real coin to invest, not to buy skins he can do that dance watch cnbc, figure out what to do wit

and disney taking its content off. how big a threat is this or has too much been made of it >> i think too much is being made of it i think the shift for netflix from licensed content to owned and original content has been happening. it will continue to happen other content providers pulling content from netflix and going captive will continue to happen. it's not going to be a cliff overnight. if you look at shows like "the office" and "friends," our research shows it's been very helpful for retention, not a new subscriber ad driver and just the final point, i think you ought to think about where netflix's content is going to be, not right now but in 2020 and 2021 when big former network producers like shonda rhimes and murphy have their content up and running on netflix in the out years. i think it's been overplayed in terms of the head wind to netflix. >> what's your outlook once all the other dtc services launch, matthew? i'm asking in the context for instance of pricing increases. you may not believe that netflix w

the two winners and disney, obviously, is coming up from a zero base up towards disney. but i think -- i mean up towards netflix, but barry diller said the same thing that's the way i think this plays out. netflix is still going to be the king but disney will be number two. >> steve weis for you from robert in cambridge, united kingdom. what's wrong with the kiss downtown brokers schwab and etrade i hold both. should i dump them or stay with them >> it's very simple what's wrong with them. interest rates so they need to make money off rates. bless you. >> you okay? >> that was him. >> that was jon. >> i know we look alike, but -- >> it's difficult to tell them apart, but when they sneeze -- >> i was writing >> schwab's exceptionally well run. etrade, i haven't looked at that carefully. i don't know why you'd want to own etrade when you can own schwab do i think there's a lot of down side no but i don't think there's upside near term either >>> final trades >> one oak oke, natural gas play. >> thought you were talking about that place in the city hanging out. one oak. bee

how about the metaphor or extension of that to disney and talking about the multiple that now disney -- look, disney waited a long time to get a streaming multiple, right? or maybe it is getting there, but we certainly know it has rerated since they released their streaming service. there's no question that apple can follow that path, and i think it is what gene is talking about. >> we do agree with gene on the grade of a-minus. >> a-minus you know, we were told gene had the headphones on so he couldn't hear us talking. i said, i bet you gene -- >> would give an a and he didn't. >> see, to me his description of blowing your socks off or out of your chair, that's an a-plus so this seems to me an a fortunately for myself, i think -- >> maybe mel -- actually, mel got it. >> well, there's a disconnect. a-minus, melissa is like, wow, that's disappointing i'm surprised the stock is up. wow. >> are you kidding me? i'm calling home. >> gene, thank you >> thank you >> always good to get your analysis gene munster of roloup ventures. >>> we do have a lot of the conference call left to go we do

. >> these are the former fox regional networks that had to be sold off as part of the deal with disney. >> we were going to take 21 of them we were going to fill in with the rest of the country with affiliates, which is not a new model. >> so you're still interesteded in getting that. what is your path to doing that? how do you unseat sinclair >> i don't think we have to unseat sinclair. i think that the government will do that. >> on what grounds >> the same grounds they didn't allow disney to have it. the truth is, the government's doj thought that disney would, it would be too, have too much power because of consolidation because of espn. now you've got sinclair -- >> the largest owner of broadcast stations in the country. correct? >> yes and they own all four, stations on all four networks, so think of this. sinclair not only now has 90% of the local gains. but if the deal goes through, but they have every year the super bowl the masters. you know, the final four so across the platform, they have every event when they're negotiating with come ks cast or directv, so the amount of co

lose content, because it hasn't taken effect for a while the friendsy meaning hbo max, apple plus, disney plus, we won't know the effect of any of that stuff yet because it hasn't launched what we're going to know is the pricing power that netflix has because over the quarter they took some major price increases, both domestically and abroad 15% to 18% domestically, the standard and the premium package up two bucks similar types of price increases in western europe. you have western european countries where netflix on the euro basis is actually more expensive than the u.s we're going to see whether or not there is churn there, whether they really had disruption or they were able to hold the base with those price increases. now, expectations are very low for u.s. domestic subs, less than half a million. my guess is they're going to beat on that because they projected very low guidance on the u.s. -- >> a little sandbag maybe perhaps by netflix >> well, you know -- >> we've seen "stranger things" than that. >> good one. >> very good. >> i got no credit for "friends" and friendsy, but you sa

. >> what about stocks now like disney what about disney? >> i talked about disney when we bought -- we owned fox we like the new fox. the new fox is selling at 37 that stock is a bargain. 15 billion of cash flow of ebitda and $2 billion of cap "x" over the next, so what are they going to do with fox sports and fox betting, fox nation. disney was created by us it was trading at 110, and iger has had a huge tailwind and the notion of taking on hulu and the next subscription type of service. >> like disney plus. >> whatever the name is. >> the stock is going to earn $7.50 in three years, is a times 7.50 is 105. 25 times 7.50, it's a plus/minus and meanwhile it's getting a roar from "the lion king. >> $1 billion. >> so what. >> avengers "end game" was over 3 million. meow, is "the lion king" and the poor "avengers end game. >> cord cutting, biggest losses in the quarter, moffitt nathanson. they say traditional cord-cutting is, quote freaking ugly bloodshed. they say it's going to get worse. winners and losers. >> my own reaction is not complica

>>disney's $6.99 pricing is a big problem for at&t because at&t's hbo business can't be cheaper on -- as a direct to consumer service than on comcast and charter and everywhere else. you have to be at $17 plus i suspect when they -- when they bought time warner and they contemplated the direct to consumer play their assumption was that is where if market would be when disney came out at $6.99 a throws a hand grenade into their hands. how do you price at 17 plus? >> and netflix is basically at the price of hbo current. >> that's right. so the challenge -- and you can see the challenge they're facing, right? hbo right now reaches about 30% of u.s. households in the best case scenario including hbo max they'll get to eventually 30% of households paying the same thing as they are today so that's the same business as it is today but in the process you'll have burned turner and the tv studio to the ground because the licensing revenues that you used to get externally are now just become pumped into hbo max and turner channels will be distributed in a way similar to that. so it's going to be

i have bank of america, apple, gold, disney and facebook. >> old familiar names here okay let's go to work bank of america, amazing bank. we have brian on yesterday i thought he acquit himself well walt disney again in the world barrick, there is nothing wrong with having gold facebook obviously a strong technology company and apple so we did apple, microsoft can we do apple and facebook again? they don't trade with each other. i am allowing this i know that some of you probably think that is not correct. enterta entertainment, gold, financial, internet, media and hardware, which i wish were frankly occurring revenue and that's what i'll talk about let's go to keith in wisconsin keith? >> caller: boo-yah dr. cramer. >> hey, man, i must be a doctor, everyone is calling me it. what's up? >> caller: thank you for taking my call. long-time listener, first-time caller. >> perfect. >> caller: thank you for everything you do for the home gamers, shows, books are great reads. >> thank you >> caller: i think of you as a modern day ben graham. >> no, no, he's a brilliant man. i'm a communique t

i don't think anybody else can do what disney is going to do. i know andrew for sure will buy that service, i will buy it because i'm a fan of disney content and my own show, "shark tank" will probably end up on there too. >> i'm going to buy it but i have a different one for you. i imagine the next two years what the millennials are doing, which is turning on and off these services will become a much more mainstream idea. meaning, someone will have an app, whether it's a banking app or something else, you know what, i'm watching "homeland" on showtime so i'll have it for the next month then netflix because i want to see this and oh, now, maybe i'll keep disney all the time to baby sit the children or do something like that. but there's a lot of movement back and forth. >> i thought that and i tried something last year. i bought a giant screen tv for my my place in miami and i said to my wife i won't buy cable for this i'm going to do it with all the streaming services it a nightmare, it is virtually impossible you can't do it. i finally called

number four, disney. up 27% one of the most unbelievable moves i've ever seen in my career you almost never see a not so hot stock explode higher after the company holds a long awaited analyst meeting but that's what happened here. before the ceo traced out his vision for 2024 led by a streaming video service, disney plus and a slate of movies that are almost guaranteed to be blockbusters, three quarters of the year, investors only focus on espn specifically how espn was losing subscribers thanks to cord cutting like the genie in alladin, it's worth holding onto the stock for the pay off in 2024 even though building out the streaming business cost a fortune. he's being conservative. disney has terrific programming and disney plus will break even earlier maybe in 2022. maybe turn a profit in 2023. if you're willing to focus on those out years, then this remains a fantastic story but near term, patience is required. fifth best performer in the dow, cisco. up 26% under the leadership, cisco chance stransitio

among them is video in televisions. >> disney has the best chance because of his pop krler talk about. completing for shows fr movies like discoveries building on his county while leading a wlesz on. >> they are kind of like the game it great company frrg i think all it's great for kern surers bp jtsz and sherry phone along with first century foxy and come will come out on top. >> netflix has dpaut the most extrollinary head node sdaes disney's put together a phenomenal group off fans. and warners got some record over the years. and hul crow out thejulio. >>> and every with within is watching to see how pill will respond julia, there, bc a proposed sanctionau and he targed early to say. as we've seen elsewhere in tariffs or other trade restriction. he's talking to the french senate and said the tax proposal was justice, givingal. here's something he's clicked through. ats that's not so high see what'ser the back gor aand we had dus thig matterer >> so we're not seeing globally is efforts to say how can we with taken more control over big companies and the other is a way to rebuild you

choppiness lately but i wonder if we could be putting the wrong focus on who's likely to get hit by disney plus' rollout. could it be youtube? should investors be a little bit wary about that younger demographic that's all about youtube now, but traditionally belong to disney and might be going back >> it's interesting to see what's going to happen with youtube. are google going to eventually try to compete in that space in terms of, you know, being more focused on streaming they've got youtube premiere are they going to enter the wars with amazon and fox and disney and netflix and so forth and start getting more involved and having their own content and so forth? it's kind of an interesting thing. because as you know, jon, they don't break out the youtube numbers. it's in that other revenue category with their gcp, which is their cloud unit. it's kind of hard to figure out exactly what's going on with that unit, but it will be interesting. i think it does create an opportunity going forward for google as we know, their core ad business was only up 16% in the first quarter and it seems lik

disney has the best content with the fox acquisition. but remember, content is just a piece of this technology, i mean, the actual experience of what netflix creates, the global platform, the quality of streaming on every device everywhere in the world. >> why can't disney do it? >> have you ever tried to download a show on amazon prime, vs. netflix. we wouldn't have enough time relative to the second it takes on netflix technology is hard and netflix, that's all they do i think there is something to be said for the only thing netflix does is streaming video. all the other companies we can talk about they do many other things. i think that's a distraction or makes it hard to focus purely on streaming. look, it certainly argues, you think about sun valley, it argues, all of these companies need to get bigger i heard david on here yesterday, you asked him if he was for sale he said no way discovery is for sale. there may not be a buyer because companies like comcast and disney and via com, cbs haven't merged yet there will be consolidation

he tells me he thinks netflix is poised to stay on top, but disney plus has a chance at success. >> so now you have an arms race never existed before you have a complete blurring of television and movies. which only happened in the last couple of years. you have these two new entrants which are forced -- not only n consolidation on the old players but now forced them to make investments. >> sports rights are another, adam silver tells us that basketball games rights are in demands. he predicts tech giants will bid for the rights and then the international when they come up in six years. >> from a programming standpoint it's difficult to create hits. what you have in sports is a guaranteed audience. i think one, especially in the case of a global sport like basketball and a young sport that can only grow. >> silver says he's expects the nba's audience and demand for that audience to grow thanks to legalized gambling as well as more activity with the likes of augmented reality. back to you. >>> we'll discuss this further with john ford, the former president of discovery and president of

and look, as much as i like disney, you don't have to go with mickey mouse. it could be any high quality company that will resonate with somebody who's still in elementary school. here's the bottom line the point of getting your kids interested in stocks early is simply that you need to teach them a better way to think about money. rather than viewing cash as something to be spent, you want your children to learn that money is something that can be saved and invested, which creates still more money, at the earliest possible age. and look, if you don't want to do this for your children, do it for yourself because kids that can manage their own finances with kids who won't be begging you for moo la after you've gone into retirement. stick with cramer. someone mi my bladder leak underwear. so, i switched. to always discreet boutique. its shape-hugging threads smooth out the back. so it fits better than depend. and no one notices. always discreet. >>> okay, cramerica, it's time for me to check out the twittersphere and take a look at some of the tweets you sent,

disney is -- we don't talk about disney, morgan stanley had a piece, saying if bob iger could, if he had to, be the next man on the moon everything positive. >> i see all right. >> we'll talk more about disney. we -- >> remember the days, we had tesla coming up. elon is not -- elon -- >> tweeting. >> elon, please tweet. >> my daughter loved the ride in the tesla. this is a good one, david. we'll talk to brian. he's the most transparent -- by the way, up 41%. that's not bad >> no. i think most of those investors will be pleased with that. "mad money" tonight, brian goldner will join jim. opening bell a few minutes away. stay there "squawk on the strt"omg ghbackee cin >>> you're watching cnbc "squawk on the street" live from the financial capital of the world the opening bell in under two minutes. strong morning of earnings we covered coke and utx and hasbro some of the numbers, u.s. down 8, europe down 12. >> i think when you form your budget at a company in america, you can't submit to your board that we're going to have a down year you end up with harley constantly missing the numbe

but if you look at disney with their slate and still, right, if it is not the best environment to go to the movies i don't know what is. >> "the lion king", you know, we have have a great, new ep, kevin. he sort of whispered in my ear -- that sound sort of creepy, but "the lion king" -- it is hot out there. >> are you going to "the lion king"? >> i'm not going, but a lot of people will. maybe i'm taking the other side of the other side, but there's an interest in amc. >> we're on the same side. >> we're into earnings, you have seen what happens in stocks. look at that, that's like a real lion right there. >> here is another -- it wasn't a creepy conversation that i had with kevin earlier. >> oh, look at you, bringing kevin in. >> think about this, right what is disney doing bringing all of their content off every other platform, that's marvel, lucas, pixar, they need blockbusters and they continue to have massive blockbusters built for theaters and keep them there and they get you to subscribe so they have the catalogue for life they will do a one-two punch it is what the company is

100% correct in terms of balance sheet, in terms of cap, all of those things however, look at the move disney had over the last three or four months when the stock is from 115 to 143 hasn't given anything back a lot of that is attempting to cut into netflix netflix until today, at least, hasn't flinched. i think that's telling you something into earnings. though the smart thing to do is take money off the table, i do think that things rally post earnings. >> competition and the announcements about shows they'll bring back, services and pricing. those can be catalysts for the other ones >> they can be i think that's one of the reasons why this stock is consolidate the way it has over the last few months, money flowed into the other ones they're not going get massive results anytime soon they told us, they gave us long-term guidance for their targets on subscriber and profitability. but in the meantime, netflix may have a bit of a runway, they put those price increases earlier in the year they have a lot of original content and the way i see it, that's the only reason why you're in netflix, the

you're going to see that we have in the fourth quarter from the walt disney company an amazie i array of entertainment from "star wars" and will back a number of different initiative there is and of course, "frozen 2" coming october 4th is the merchandise date for both of those and for our brands in that third and fourth quarter, magically gathering and dug and dragons. we have table top and arena for the remainder of the year. our e sports business is getting traction our last event we were the number two viewed product on twitch and so we're really seeing that momentum and engagement and our fans and gamers are loving that. >> you stepped up the buy back in the darkest moment. you got a lot of stock cheaply, didn't you >> we continued to buy back shares over time we bought back more than $2.5 billion worth of shares over time and we continue to do that. we've raised the dividend in 15 in the last 16 years with the support of our bored of directors. we believe in returning excess cash to our shareholders but first and foremost, we believe in investing in our business for the long ter

>> so far no one including walt disney if you went by dollars. if you went by dollars of market cap, i don't know if anyone is going to go by that. but he's done some unbelievable job here it's undeniable. >> jim you called orbcomm your favorite is it? >> yes investment, as in long-term investment, put this in your ira and don't look at it for a couple years it's not a trading vehicle i looked at when it was first at the share price it's at today, end of 2015. since then they doubled the number of scribers on their satellite network, the revenues are up 60% cash flow up 80% don't worry about what the price is, right now it's a gift. this is something you put away in a closet, don't look at it for two years. it's my favorite investment. >> those are the winners we have some sinners but sinners can have redemption. let's listen. >> canpy this week i'm long, i'm in, everyone can make fun of me i should have been in at 30, whatever. >> it's down 6% today. that's what this stock does, it goes down like a knife. >> i bought abbvie yesterday i've been w

i wouldn't want to be competing against amazon, apple, disney, comcast, at&t, time warner. >> a lot of attention is paid to them losing "friends" and "the office," are those flesh wounds or something deeper? >> to use your analogy, probably flesh wounds at this point netflix is bigger than two shows it'll probably hurt, they're two popular shows. that library is valuable for these services someone said it earlier, you join a service for the content but you stay for the high quality library. perhaps it impacts churn a little bit >> the only thing i wonder, if we show the shows again that are so popular for viewership. the content that netflix makes now with its original content, do you think those will be as popular as library shows or not? >> who knows so those shows existed or were created in an ecosystem with with far fewer choice. when "friends" was around it did something like 20, 25 million per episode of viewers today the best show on television does something like 10, excludeing all the sports. so those types of shows, it was easier to get a much larger or more critical mass in

plus, hbo max, you have a comcast streaming. >> disney content and all of the rest of it and all of these things. >> right. >> i guess what we don't know now. we know that it's a huge source of from from the users, time spent on netflix and all the rest what we don't know is what filters into the subscription decision. >> that's all that matters. >> the background stuff. the stuff is still in reruns on regular tv. >> that's true "the office" was the number one streamed show on netflix "friends" was close after that. >> which validates what netflix did years ago. >> that's true >> "friends" could seem -- put it in terms of something i could understand. >> of your generation? "m.a.s.h." >> thanks. >> i'm just trying to understand where you're coming from. >> "bewitched". >> honeymooners. >> "wkrc." >> no. "seinfeld," you can watch it. >> that's true >> is it the same with "friends"? >> all appears where rogs ss --h was already married. >> it wasn't your show. >> no, it wasn't. >> that you grew up with >> and i'm concerned about the well-being of some of the former stars of "friends" a

look how comcast and disney acts, they make new highs every day. i think it is one reason the stock has consolidated the way it has over the last few months as money flowed into the other ones, but they're not getting massive result any time soon basically they gave us long-term guidance for their targets on subscribers and profitability, but in the meantime netflix may have a bit of a runway they put up the price increases earlier in the year, they have a lot of original content. the way i see it that's the only reason you're in netflix, is the original contact we know a lot of stuff is going back to warner and that sort of stuff, so longer term it is a more challenged story but in the meantime it may have a run. >> one thing i would like to say about the options trade, and that is that buy rights are one of the most popular things for people who buy stock, you sell calls against it, looking to collect the premium. in situations where you think there's a risk to the stock, it is a better trade to do, buying longer dated calls, selling nearer dated

think about cbs, disney, fox, nbc with a lot players with money to spend there are a lot of sensitive issues at stake. first, it's the simple split of money between players and owners right now the players get about 48% of growth-shared revenue but there are a lot of ways to split that money, including deductions that owners can take off the top line before the revenues are split, as opposed to deducting it from the bottom line after the revenues are split. that being said, there's certainly no guarantee of a deal getting done soon. many coaches' contracts now have clauses protecting them in case of a work stoppage and the head of the players union recently sent out a note to all players, advising them to save as much money as possible to get them through an entire year of no work. back to you, morgan. >> wow, one to watch eric chemi, thank you. >>> when we return, silicon valley legend john sebold joins us >>> the era of mass extwinincten that's how john sebold is describing this. it's in his new book, "digital transformati transformation." goes into stores tomorrow. which companies

when it reports in a week of course, disney is focusing on its news streaming services. guys, back over to you >> julia boorstin, thank you >>> just ahead wh, what to expet from apple after the bell today. and in just a few minutes, do not miss mario gabelli on the "halftime report." that's at the top of the hour. we're down after a quick break dow's down 42. here, it all starts with a simple... hello! -hi! how can i help? a data plan for everyone. everyone? everyone. let's send to everyone! [ camera clicking ] wifi up there? -ahhh. sure, why not? how'd he get out?! a camera might figure it out. that was easy! glad i could help. at xfinity, we're here to make life simple. easy. awesome. so come ask, shop, discover at your xfinity store today. >>> welcome back to "squawk alley" as trade talks between the china and u.s. unfold. huawei revenue rose 23% in the first half of the year despite being added to the u.s. entity list one indication of the u.s. black listings says sales have slowed down this overseas markets 80% of the level before the commerce department action acco

need to be more conservative with their spending, at the same time you're also seeing big players, disney jumping into this there are going to be so many offerings a year from now. what's the landscape going to look like at that point? >> well, becky, i don't know if they will be more conservative with their spending or if they feel like they can afford to because they are losing so much of this license content to the likes of disney, hbo max as well as nbc universal now all three of those companies are going to be launching their own services starting with disney in the fall so the issue is that they have to invest more in originals as they lose some of the license content. they're also going to be competing which means not just more exclusive original content to compete with these other players but also higher investment in marketing. so i think this landscape is incredibly crowded netflix has the advantage of already being in 150 million homes and already having that subscriber base. but people feel like what they could get elsewhere could be worth dropping netflix or whether they coul

by the way -- >> and friends in the office -- >> and disney plus >> let's get more voices on this as well. what's your quick take >> that's a big deal for the company. n.r increasingly it's more of a profit-driven story. and that's going to be a tough situation. it seems like they missed the market this quarter. >> julia has morgue. >> morgue -- like "the office" and "friends," and they're losing those both get ready to launch that are services saying catalogs, and other licensed content will wind down over the coming years, freeing a budget for more original content. he says we don't have material viewing concentration as even or largest titles account for only a low single-digit -- so he's stressing they're not too aligned. our -- so they're saying they are as they talk about why their he they say they're already off to a strong start. sew they say that's why their forecast for subscriber is stronger than expected real really stressing it's -- >> across all regions in terms of missing their forecast. they don't think competition was a factor, russ, let me go to you. when warner is

disney was a surprise to me when i ran these numbers, that disney was number three, 250 of the points little bit of a surprise was american express, generally the banks and financials have not done that well american express is an exception. the losers, ones on the other side that actually dragged the dow down here we have cater pilar, of course, that hit a high back way back in january 2018 that was the high. 3m hit a high in early part of 2018 the biggest decliner responsible for 500 points on the downside goldman got clobbered at the end of 2018 on concerns about the global slow down and you can see here that was also a weight on the dow. back to you. >> thank you >>> tech the best performing sector since the market's last major milestone and josh lipton has the details on that for us >> so, wilf, tech is front and center in the run from 26,000. microsoft, you heard bob talking about it, leading the charge here up more than 50% since then the software giant reporting earnings next week on july 18th. interestingly just told us today that teams, its direct slack response to stuart bu

end of the day you're paying an enormous amount of money to have someone try to create content having disney or time warner or comcast create content 70 times to have netflix create content. the mast doesn't work. >> would you be short the stock? >> i probably wouldn't own it because it's such a cult that i think it's dangerous to short it it's gone from $46 million >> this was fine to investors as long as they saw the subscriber growth is the second quarter in any way a preview of what is to come next year? was the price hike the last netflix could pass through to raise their average revenue per user >> there's no question the price competition will get more intense with disney, et cetera that being said i think there's something to be said about the potential savings they're going to have when you have all these popular shows pulled off the platform whether it's "the office" or "friends. that will make the content even more competitive >> they wouldn't have been paying those license fees to begin with >> they have no choice now that's a great point to larry's point, i would argue the pathw

it's going to take disney a couple of years to reach the tens of millions of subscribers domestically to reach 150 million subscribers will take a long time. apple has a huge captive market because of its hardware penetration, but they are sort of -- apple is going for an amazon model, doing a bit of everything not just video yeah netflix's position is not exactly challenged just yet. in the 2020s that will look different. >> netflix is seeming to insist they're not going to offer ads on their platform. how much of this advertising strategy is playing out? because we know a lot of competitors willoffer ads in commercials, is this something netflix can stick with if they want to be competitive >> they even went further, they said any reports suggesting that we will release sort of an ad-funded model is totally false. they explicitly stated that. it's a consistent message. bear in mind they have a free trial period of a month. that acts as sort of a -- the free or ad-funded kind of thing for consumers. you can try this service for free for a month, binge the series and never pay you can