Particular, where Reed Hastings has to answer questions about new competition from amazon. Amazon announcing it will offer prime video as a Standalone Service for 8. 99 a month. Before this the only way to get Amazon Prime Video was with an amazon prime membership for 99 a year. Lets talk earnings first, because there seem to be this rotation into the ibms and intels of the world, what we have been calling gray chips, some of the formerly out of favor value names. What is the proposition for growth for these companies . I wouldnt call ibm a value name. When Warren Buffett bought Burlington Northern he was making a bet on the American Economy. We knew i. T. Spending was going to go down, ibm trying to refashion as a cognitive play. How much does that play into the messaging it gives to investors . A lot of people have been saying they are struggling because of the cloud and all this kind of different names of whats happening. Really, whats happening is ibm is not able to compete with the new technologies coming out of Silicon Valley and is getting clobbered. I would be really worried about ibm the next five years. Maybe i misheard you at the top. Did you say buying ibm was a bet against the American Economy . Exactly. Why would you say that . Basically the biggest trend right now in the American Economy is every industry is being transformed and updated to reflect whats possible in technology the last 30 or 40 years. Thats happening through the top companies, with the top tech cultures. Ibm is a sales driven culture. Its kind of like this fake old tech company that tries to p pretend its tech. Its getting clobbered everywhere it works. What about watson . They like a big song and dance. Are you not persuaded . They sold to a lot of big banks and pharma companies. There are other companies coming in who are modern Tech Companies they are struggling against. Thats the challenge. If there was a strategy out of this, what would it be for big blue . It should be that people running the company should be technologists, not sales people. They should try to figure out how to hire top engineers in top engineering areas. It will be tough to be a Sales Driven Company competing in tech areas. More on ibm this afternoon. The cfo will join closing bell. Its a company that is always on defense, whereas netflix is able at least until perhaps now to play offense. What would you say . Netflix has known amazon would be doing this for awhile. Amazon is a Scary Company to compete against. They have a lot of resources. They have always called, bezos referred to it as an all you can eat strategy. This is the first time they have broken off and sent their battalions after netflix. Hes thinking about competing against netflix which is scary for them. Shows you how much amazon values its own content. 8. 99 a month to get prime which includes your twoday shipping for anything else you want to buy on amazon. Thats 10. 99. Thats only two bucks. He may actually be trying to make users realize what a good deal prime is. It may be the same strategy where he wants everyone on prime, but he says look how great the content is and you will get an even better deal if you sign up for prime. Do you see this as a really spicy shot across the bow . This is something Reed Hastings anticipated in 2012. Everyone knew this was coming. For now its not the best pricing so he probably just wants everyone to stay on prime but it is scary for netflix. How does the competition develop, then . We see it very much in a u. S. Context but obviously the netflix, you can replicate whats happening here and the world, there will be incumbents in other languages locally athat may be better at when they do if they are to be challenged in this way, surely. Thats the question. Is there a better answer with the content deals they have locked up. Amazon is trying to prove the barrier to entry is not as big as they thought. Thats what the markets trying to figure out here. Rnl interesting to see what hastings and company have to say. Up next, embattled theranos ceo sitting down with Maria Shriver this morning on the today show, apologizing and taking responsibility for the issues plaguing the company. I feel devastated that we did not catch and fix these issues faster. Im the founder and ceo of this company. Anything that happens in this company is my responsibility at the end of the day. We stopped testing and have taken the approach of saying lets rebuild this entire laboratory from scratch so that we can ensure it never happens again. Joe, you can apologize as a ceo as much as you can, but until you can fix these issues and convince regulators that you know how to operate a company in this type of an industry, how much can you survive this reputational damage . I think its a really unfortunate thing shes going through because i think its a really talented company. Maybe a little too secretive and maybe a little too much where the press really loved them and now they are getting attacked too much as well. There is something broader here. Correct me if im wrong, this is a 9 billion valuation on the company. Which to most people watching seems like an awfully large amount of money to then be easy with forgiveness. Is there something wrong about how some businesses are valued on the west coast . You have to understand what it actually mooneans. Its actually a call option. When insiders were putting in money at that valuation they knew they could get the money back so it was basically a call option. In the way it raised money. Exactly. They didnt go to insider investors, they went to people who gave them a much higher valuation. Doesnt mean theyre a bad company. They are a pretty high valuation and people paid a lot. Are they overvalued hugely . People might have paid more for that call option than they would have today. Doesnt mean its a bad company. You have to think about what lessons Silicon Valley is learning from this, whether it is being too confident about your disruption in a regulated industry. How to build a board that can give you the advice you need. What takeaways are companies you are invested in looking at . She actually has one of the very strongest boards you will see anywhere with leaders of all these industries. You know some of the names on the board. But the criticism did they know what was in the business to the point that you are making . She attracted the great did they know the heart and soul, the dna of the business . They knew she was a great leader and there was a lot of potential for the company. Its obvious things got ahead of themselves. If anything, its a lesson for the press that put her as the most important person ever before she actually achieved things. I think shes very competent leader but theres still more to prove. The criticism was she stacked the board with heads of state and had a lot of headline type names, but very few, if any, licensed medical professionals. I think she also had very few true Silicon Valley insiders. It was smart of her to get people to help her with the industry with these big names but she also needed to be more open and transparent with whats going on in the valley. How fine is the line between drinking your own koolaid because you have to be confident in what youre doing or refusing your own advice . You have to drink a little of your own koolaid. Its the only way to attract people. Maybe they could have had more transparency. A prediction for where the company goes . I dont know how much cash they have on the books. Theres a lot of competent people. If they have enough money they can turn this around. Thats the question for a lot of these companies. It will be interesting to watch. Thanks for coming in today. Appreciate it. Joe lonsdale. Now lets turn our attention to oil. No deal, of course, at the meeting at dohar from some of the big countries that supply oil. News that continues to hit the price of crude although we are substantially off our lows as we trade. Look at that, down 1 overall. Pretty close to 40 a barrel. Brian sullivan is live in dohar with more. Take it away. Reporter yes. Thank you. You can thank striking kuwaiti oil workers for that drop. Listen, the sun is setting here in qatar and thats sort of a metaphor for the hopes for a production freeze because the sun has set on that after yesterdays rather bitter meeting. Min sisters were left to lick their wounds and reflect on whats next. First you have to look at increases in output from iran. Its really the reason the deal did not get done. Saudi arabia wanted to limit iran even though they werent here at the meeting. A lot of the ministers simply said they could not feel comfortable with that. Iran is trying to mitigate the impact of sanctions and get back to four Million Barrels a day. Iran might lift production. Saudi arabia suggested they might raise output as well, they have another million to million and a half additional barrel capacity that they could put on the market and if we see iran go up, perhaps saudi arabia will play a game of brinksmanship and also increase production, perhaps as a punitive measure against iran. The reason that oil is not dropping more as you noted, is because of this strike in kuwait. Oil workers in kuwait are striking right now. Theres a thought that maybe a million to a million and a half or more Barrels Per Day could be taken offline. Heres the thing. This is why its kind of a maybe in terms of the price drop. Kuwait telling the middle Eastern News Agency today they could be back at full production within days and indeed, might try to increase output. So if you are an oil bull because of kuwait, your hopes may be shortlived. For now, everyone left and the next time we meet is june 2nd in austria at a formal opec meeting. Remember, this was not an opec meeting but a summit, if you will, put together by qatar to bring everybody together. The next meeting officially in june. However, there was some talk and some chatter and some rumors that maybe between now and june 2nd, this 18member group because we have 11 of 13 plus opec, russia and some others, could maybe meet again, perhaps in nigeria, perhaps elsewhere, to try to create another deal. In tints he interim, the sun ha on a deal. This is probably a bad idea for countries like venezuela. I will lay out the bear and bull cases for oil Going Forward following this doha noha as im calling it. Safe journey back. Thank you very much. Brian sullivan reporting. Just watching the market here, making an attempt at 18,000 on the dow. You will be aware the last time we did that was july 23rd, 17,957. Obviously theres some relief as far as the Energy Stocks are concerned that oil hasnt further fallen partly because of what is happening in kuwait. Meantime, shares of Morgan Stanley negative after earnings topped estimates. Investment banking a weak spot. Fixed income and Investment Management results were better than expected. Bigger picture here, of course, is that Morgan Stanley rode the financials rally last week. Meanwhile, this week cnbc is live from the emerge americas conference in miami. John is there with a look at when we can expect. Reporter im going to have the chief operating officer of hyperloop Transportation Technologies coming up a little later in the show. A lot going on here this week. We had colin powell onstage earlier today. We will talk to tony hawk, the skateboarding phenom and entrepreneur later today. You see that on social. I will bring you some of that tomorrow as well. There are startups on the floor running the gamut. Startups that are looking at technology to monitor blood pressure, some corporate Security Work going on here with at least two factor authentication, coffee brewing, also portfolios in the cloud for modeling clients to try to take more control of their digital lives. Dancers and jugglers on the floor as well. Interesting connection between technology in the u. S. And latin america. A lot of people coming here wanting to make that connection with countries and opportunities in latin america. Of course, miami is a great place to do that. Lots of coverage coming from here. Very fresh perspective on what technology can do, particularly in the mobile and cloud era coming out of this conference. Back to you. See you in just a little bit. Looks like an exciting agenda. The emerge conference. When we come back, deadline day for yahoo with preliminary bids for the tech company due today. A look at the timing and some of the front runners for that sale. Plus how close is elon musks hyperloop to becoming a reality . And an amazing medical breakthrough. A doctor using a computer chip to help a paralyzed man start moving again. The doctor who performed the surgery will join us live. Squawk alley is back in a moment. This car . Came courtesy of james and patricia thompson. This tv . Margaret and tom lee. The championship game ball . That was sebastian diaz. Good guy. And all i had to do was ask for their money and pretend i was investing it. Their life savings is now my lifestyle. Female announcer dont let someone else live the life youre saving for. Find out if youre dealing with a registered investment professional at investor. Gov. Its a great first step toward protecting your money. Before you invest, investor. Gov. Youto get the help yourefar looking for. Thats why at xfinity were opening up more stores closer to you. Where you can use all of our latest products and technology. And find out how to get the most out of your service. So when you get home, all you have to do is enjoy it. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. We want to take you live to midtown manhattan where thousands of verizon workers are striking today. You can see on your screen a sea of red in new york city. Some 40,000 workers have been protesting to save middle class jobs for the company. Of course, these are familiar scenes to people who live in new york city. Its been happening for most recent days. Simon, one question is whether their optics of verizon bidding for yahoo a deal that would no doubt result in job cuts at a time when they are obviously facing this backlash from workers. These people are with verizon fios and installation. They have been on strike since wednesday. Theres a lot of issues they are concerned about. Of course, after Bernie Sanders addressed them, a very strong rebuttal from verizons ceo as well, the criticism the company is facing. The yahoo bid, though, clearly is a focus for many. Today, of course, is the deadline for first bids to buy yahoo or at least parts of the struggling internet company. So which suitor is in the lead . This is a real setup for you, josh. Take it away. Reporter well, while some 40 companies had initially expressed interest in yahoo only a handful are now left. Thats according to the wall street journal which reported over the weekend that time inc. , google parent alphabet, comcast, Parent Company of this network, at t and Barry Dillers iac interactive all have opted not to make a bid. Which suitors are left . A host of private equity firms including tpg, bain capital and Advent International reportedly still interested. But the team says verizon could now be the best possible acquire. They argue that verizon could gain scale with ad agencies by selling a combined aol yahoo media package as well as integrate Search Technology across verizons mobile network. Analysts say yahoo s core business could still attract as much as 8 billion. The company does boast more than one billion monthly users. Thats a lot of potential people to crosssell products and services to. A yahoo deal also carries real risks that could worry bidders. Emarketers estimates that digital ad revenues will fall 14 this year, the biggest drop in seven years. Adding to the uncertainty, of course, there could also be a nasty proxy fight with activist investor Starboard Value at the companys Shareholder Meeting this summer which might result in tossing out the companys board. Yahoo will report Earnings Results tomorrow after the close. Weak q1 results are expected but investors will be focused on any insight the ceo can now give about this ongoing sales process. Back to you. Thank you very much. Up next an amazing medical breakthrough. A doctor from ohio state using a computer chip to help a paralyzed man start moving again. The doctor who performed the surgery is with us next on squawk alley. They may want the latest products and services, but they demand the best shopping experiences. Theyre your customers. And by blending physical with digital, cognizant is helping 8 of the 10 largest u. S. Retailers meet their demands with more responsive retail models. Ones that transcend channels and locations, anticipate expectations. Creating new ways to engage at every imaginable touchpoint. Its a new day in retail, and together, were building the store of the future. Digital works for retail. Lets talk about how digital works for your business. It could be a breakthrough in brain technology. A doctor helping a paralyzed man regain feeling in his limbs by implanting an experimental chip into his brain. The doctor is director of ohio state universitys neurological institute, from where he joins us now. Good morning to you. Good morning. Could you explain to us in laymans terms what you have been able to do here . Yes. There was a patient who sustained a severe spinal cord injury that made him quadriplegic so he had for five years, no movement below his elbow, so no movements in his forearm, no movements of his hands, and with our trial, we basically implanted a microchip in the brain that detects his thoughts of movements, and within milliseconds, makes sense of those thoughts and translates them to an external wearable sleeve garmentlike device that allows him to move his hands so for the first time in five years, hes able to pick up