Were going to speak to woodman ourselves in an exclusive interview to talk about the outlook for the company and that gopro drone crash over the weekend. At the padres diamondbacks game as a matter of fact. Toll brothers losing Early Morning gains after a weak number for new home sales. We have a debate, bull and a bear, talk about whether these housing stocks are worth buying right now. But we begin with amazon Shareholders Meeting taking place today in seattle, talk of a potential stock split. Believe that when we see it. Deidre is at the meeting there. What happened today . Reporter hey, guys, well, wrapped up just over an hour ago. A lot of happy investors. Amazon stock run up 40 in 12 months. This was interesting. One shareholder noting that amazons stock is approaching a thousand dollars a share. Noted that its less and less accessible to a younger and middle class investor, so she asked jeff bezos why it seemed amazon was going the way of berkshirehathaway, and whether he considered a stock split. Not yet, but something reviewed on a regular basis. Reverend Jesse Jackson was there, and brought up the allwhite board, getting political at times, Jesse Jackson said they needed someone like bezos to lead in terms of diversity with amazon. There were a number of advocacy groups a loud presence. Several urging amazon to stop placing ads with right wing media outlet breitbart. There was those piloting the air delivery program, pressuring amazon and employers to raise their pay. Guys, keep in mind, amazons 20th shareholder meeting, but focus on the next 20 years and areas of investments. There was a a lot of talk about the prime membership program, about push into india, about alexa and echo as well as groceries. Yeah, i mean, they are everywhere. Making a point, bill, about maybe incentive for amazon to split the shares is if they want to be part of the dow someday. Yeah. I mean, hes jeff bezos follows the Warren Buffett clearly, in this case, right . As you said, always monitoring the situation, but not likely to do it right now. Reporter yeah, and it was a very short response, guys, from bezos himself. It was interesting a shareholder brought that up after so many, you know, great returns, she noted, shes been able to engine, and wanted others to be able to enjoy that, but, certainly, animalysts dont thi its in the cards any time soon for amso amazon. Great thing is it built itself. They just grew internally. Thank you. Well see you later. Okay. More on this brownforman story. The crowd dispersed over there. Leslie picker, give us more shares on the bid. Reopened after being halted for five minutes. In reopening, the stock gave up half of its gains, prior to the halt. Reason for the halt cnbc reports that Constellation Brands made an approach to acquire jack daniels owner, brownforman, according to several people with knowledge. They were interested in purchasing, brownforman said they were not interested in selling. It did pass the idea along to the board. The people said. Now, consolation brands is still interested according to one of the people. Fifth generation owner family own a majority of the voting power and historically said they want the company to remain independent. Now, shares of brownforman gained 12 over the last week as rumors about the company bled into the market. A representative for brownforman declined comment, and representative of Constellation Brands did not immediately respond to our request seeking comment. Brownforman with a market cap of 22 billion owns alcohol brands like jack daniels, while Constellation Brands owns corona and sedka vodka. We have talked to the constellation folks a lot in their whenever they report earnings. We know how hot the beer business has been. We know how hot the bourbonag. T they look to and constellation is successful with the acquisitions in the past. Right. So i guess they are really looking to bite off. They know what theyre doing. In terms of overlap, theres a wine business, but brownforman doesnt appear to have a beer business to speak of. This is not a synergistic type of interest so much as trying to add, you know, the brownforman liquor brands into constellations portfolio. Thats exactly correct, kelly. Especially in this environment where we have not seen much in the way of m a, especially on this scale. These types of deals, more about building scale and improving their brand options for consumers, thats the type of thing where you couldnt need to necessarily wait for clarity on the taxes and things on regulations, just more about accumulating the brands, but they want to do just that. Well, both companies are trading down now. I guess the market is taking to heart what the family said of brownforman that they dont want to sell right now. Exactly. Well see. Thank you, leslie. Good stuff. See you later. More on amazon in the closing bell exchange. We have wealth managements, a shareholder, paul from fairfax global markets, steven from the street. Com, and sarge, and Rick Santelli at the cme in chicago as well. Robert, i mean, you must be a happy shareholder, do you worry that its over extended, over valued, you know, what how do you assess amazon right now . Yeah, i mean, bill, you pu h punched me in the nose if i complain about a gain on a stock we held for the last year. A happy shareholder, but, you know, this is such a dominating company. I think kelly said they create their on conglomerates. They are playing a larger and larger role in peoples daily lives, and theres an efficient company. Look at the interpret of things, talking this morning about a potential deal with dish network to leverage that platform, and if youre somebody like procter gamble, imagine the value of when your last gilette blades is down to one, amazon ships directly to your door. Nobody has that aint to monetize interpret of things or anything gathered in the cloud like amazon right now, and for a half trillion Company Growing at over 20 , hard not to own this stock in the portfolio. Having said that, though, you sold it last week, though. I sold a few stocks i like, amazon, walmart, caterpillar. These names hit the target prices. Its strictly discipline. I like all three names. I will buy all three back when they get to prices where i want to buy them again. I do think amsons going to a thousand dollar and apple to a trillion dollars. Things are moving in the right direction. Deal with the 2400 level in the s p, a stone wall of resistance. Are we as far as Political Uncertainty and macroeconomic uncertainty takes us . Possibly. Paul, youre the person on the side of the room folded looking at everybody in the big cap tech stocks and saying its crazy, but is it . Has it got to the sort of 99 era craziness for you . No. Value guy as a value stock investor, i cant buy any stock thats selling for a pe of 183 times its annual earnings. Which is that . Amazon. Okay. Its trailing. Its got 86 Going Forward. I think investors have to think about is that for the last two years, these tech stocks have gone up enormously and have been a large part of the s ps price performance. Will we have a trend where we go away from the tech stocks, and my thought is once the Corporate Tax reform comes about and we see taxes go from 35 down to 15 , Tech Companies historically paid lower taxes because of overseas earns and things like that, and i think investors will start looking at other sectors because theres going to be a huge earnings bubble once that happens. Having said that, though, paul, i mean, youre a value player. You like apple. Apple had a huge runup. Had a higher runup than amazon, but its trading at a 14. 8 pe opposed to 183 pe. It has a much larger return on equity than amazon does. It pays a dividend, which amazon doesnt do. I mean, i would much rather own that. Ill tell you from the retail section, walmart is the only company i think can compete with amazon on the retail thing. Its bringing in its own prime. Its prices are cheaper than amazon. Its the only company to compete. Its selling for 18 times pe opposed to 183. Now, i realize the cloud stuff is very important for amson. Right. But id rather have walmart and apple. All right. Mr. Santelli, stepping back from all of this, how do things look today for you, talking about treasury yields, the u. S. Dollar, and it feels like people are just maybe starting to get back on the trump train here a little bit. Well, you know, its funny you mentioned that, kelly, because i always scrutinize markets to see any type of response that i could peg as much as possible to an event or political event or speech, and, today, budget director mulvaney was talking, its hard not to notice yields rose a bit, dollar index fim index firmed up a built. Its unusual to Pay Attention to. It was confident to mr. Muvaneys presentation, not necessarily the content, but nonetheless, i agree with you. Now that the nasdaqs up 14 , the s p up 7 , were starting to get in territory where i think if its possible in in late stage, you start to see more momentum. With respect to treasuries, yields up several basis points, knocking on the door for 230, the bottom of the range we had for most of 2017, but i think the short end is notable here with the twoyear back over 130. A great auction. Last cycle, threes, tens, 30s, dd and d, and today it was an aminus on the twoyear, maybe because the selloff i mentioned was viewed as concession, so the last stainability of the market to keep yields close to 230 for tens, and more importantly, how the fiveyear note option goes may give us clues. Mentioned 2400 on the s p. How deep a line is that in the sand right now for you . Well, you know, paul made a good point. The trump trade is not priced in here at all, other than the defense and aerospaecaerospace. If that changes, money comes from somewhere. It comes from technology. Rotating into smaller caps, transports, and back in financials. We know where it goes and where it comes from. We need political certainty and better macro. I asked about 2400 on the s p. 2405, a bounce over the level, i give you 2 had 465 by the third quarter. Oh. Great. Thats what i was after there. There you go. Doesnt have to punch robert in the face. Yes. What was that, again, robert . If youre not grateful for the gain in one year . Yeah. All right. Take it when you can. Thank you, guys, appreciate your thoughts on todays markets action. Thank you, all. Thank you. 45 minutes to go here, dows up 5 the 9 points here, a nice rally building on yesterdays gains especially. A quarter percent there. Interestingly, nasdaq lagging, up tenth a percent, six points, and russell up half a percent. Talking budget, jason furman weighing in on winners and losers from the Budget Proposal out today. Gopro founderexclusively, a take on a recent Court Decision that could lift sales. Youre watching cnbc, first in business worldwide. I sneeze. There goes my sensitive bladder. Sound familiar . Then youll love this. Always discreet. Incredible protection. In a pad this thin. I didnt think it would work. But the super absorbent core turns liquid to gel for incredible protection. So i know im wearing it. But no one else will. Always discreet. Ive discovered incredible. Bladder leak underwear that hugs every curve. Cant tell im wearing it. Can you . Always discreet underwear. For bladder leaks. 20 minutes episodes of game of thrones, the ceo says a 20minute running time for the popular hbo series provides better mobile experience for users than the current 60 minutes that these episodes run. He made that suggestion at jpmorgans Global Technology media and Telecom Conference in boston this morning. At t, of course, trying to win Regulatory Approval for the 85 billion acquisition of hbos parent, time warner. Shares of both companies are higher since that deal was announced back in october. I dont know what a games of thrones aficionado would think of that. I thought you were one of them . My children watch it. I watch by approximaproxy. I want to know what they think. Ill have to ask. Go pro founder ceo is joining us in an exclusive interview, nick woodman, and josh lipton. Thank you, kelly, nick, thank you for joining us. Thanks for having me. So, as kelly mentioned, nick, you know, stocks down 3 today, down since you guys last reported in late april. That q revenue guide at at the midpoint suggests a 20 jump. Are you on track to achieve that, nick . We are on track. We feel good about second quarter, and we think that things are tracking just as we shared on our earnings call, and were really happy with the turn around that were seeing in our business, the restructuring that we took action on at the end of last year and beginning of this year they are bearing fruit. Business is solid. Demand is solid. Customers are using our products more than ever here, and boding well for the second quarter. And, nick, you mentioned demand. You mentioned the hero 5. For that device specifically, you know, where are you seeing the demand . Is that exist in gopro users updating the device, or all new fans coming into the gopro ecosystem . Its across the board. Were seeing Strong Demand from existing customers, new custo r custome customers, north American Markets or internationally. Seeing stronger demands for our hero 5 line of products than we did for the previous generation hero line four of products, and on top of that, were seeing increased engagement in usage of the hero 5 products, so improve. S weve made in the useability, the convenience, smart phone connectivity and cloud connectivity of the hero 5 camera all result in our Customers Using the cameras more than hero 4 cameras before. Nick, if i could jump in here, i just wanted to ask you about this ruling where the faa no longer is going to be able to have its drone registry. You know, a lot of people are excited about that. A lot of kids who want to use their drones and dont have to go through that extra step. Is that a boom for you guys, or do you think there should be the ability to kind of track all of these aircrafts . Well, it certainly helps any time you remove a step for the consumer. Its good for commercial sales of drones. The process wasnt very ownerous or burdensome to begin with, the registration process, so we dont think it was a deterrent to purchase, so i dont think its going to increase the overall Market Opportunity for the drone industry, but it certainly doesnt hurt to have it be a less frictionless process for the customer to buy and use a drone. Yeah. Im also wondering if you would respond to the drone that crashed in the padres game the other day. I think it was a gopro drone, and they it was what . Karma. Thats right. They are not supposed to be flying in the games at all, nick. No. They are not. As with any product, common sense is important and consumers should know that you should not be flying any drone be it a gopro, karma, or any other drone over people, certainly not over a stadium as a baseball game is taking place. That was poor judgment on the part of that individual. We were sorry to see that happen, but on the positive note for gopros karma business, sales are exceeding expectation. Kar karmas doing extremely well in the market place. For its first two months of sales in north American Market and mpd reports its garnered a high teens market share close to 20 , and so were very happy with its debut and consumers seem to be really excited about karma, and were thrilled to see it getting off to a strong start. Nick, my turn. Certainly, any ceo is second guessed. Happens all the time. Curious what you tell the critics that go 80 to 8 in a few years, leader in the category, still not profitable, hoping in the very least to do that this year, and there are those who say at the very least nickwoodman needs to hire an eric or Sheryl Sandburg to manage the company founded, or at the greatest, sell the company outright and let somebody else try and take this company to profitability and grow it. What do you say to them . I think those are fair points. I mean, i started gopro in 2002. Took the Company Public in 2014, and 2017, 15 years after starting the company, for the last year and a half, we have suffered challenges, both selfinduced, but also there are head winds in the Digital Imaging industry overall that have just been unavoidable. I like to think of gopro in terms of the successful 15years that weve had since founding, and not so much define our performance or my personal performance by the last year and a half. As i mentioned, its been extremely challenging, but what i like to focus on is the job were doing now moving forward, the restructurings weve had that frankly included very important changes in leadership at the company, we have a very strong coo in the form of c. J. Problemer, and the rest of the executive team at gopro never stronger, better communication, collaboration, and better culture at the leadership level at gopro than had at any time there, and youre seeing the results in our performance. I have to be specific. Youre stuck with me. While you do own 77 of the voting power for the company, youre not going anywhere if you dont want to, but more specific on something that has has analysts scratching heads. You said in march you felt the company had enough liquidity you didnt have to draw on the equity line of credit, but at the same time, not long after that in early april, you sold 175 million of senior convertible debt, which as one analyst pointed out, is convertible at 10 above where you are right now. Thats going to be diluting the stock price thats already beaten down as far as as it is. They wonder the wisdom of issuing debts when you dont have Free Cash Flow to pay it off right now anyway. Well, i think that the debt raise really helped fortify our business and allows us to continue and execute on our vision which we believe leads us to profitability later this year and puts us in a position over the coming years to pay down the debt. Weve been able to preserve our road map, which is really our product road map, future products, really important as its the life blood of the company, and while 2017 is a restructuring year and to get us back to a place of strength and profitabili profitabi