Disclosure, Nbc Universal does own a stake in snap. Blue apron are getting hit the stock is down 20 since the debut in late june a sign of trouble for Companies Looking to go public or not . Lets bring in eric gordon business pro fet fessor whose focus is on ipos happy friday you to both eric, i think your larger point about snap anyway is in a it highlights the degree of difficulty when you were forced to compete with the likes of a facebook yeah. You know, its great that snap is an innovator. The question is, can you be an innovator that makes money in the face of somebody who can imitate your innovation. I mean its an innovation. But its not all that hard to do somebody with a lot of money and a giant user base, user base being sort of the source of your revenue, you have to compete with them. I mean, can you actually do it im wonlderidering is how mua resetting of the expectations of how great the companies r people are talking is snap the next facebook or at which timer maybe its just kind of snap its a pretty good business. I look back at box box ipo was in the mid 20s near the mid 20s i believe still hasnt recaptured that level. Its been a couple years i think people are feeling better about it. Might we enter that space with some of these names like blue apron, et cetera that, are disappointing now . At a price, it always happens that way if it gets down low enough and basically the fundamentals can support. That i think youre on to something in the sense of i think a lot of the companies suffer for the familiarity we have with them and the hype attached to them before they come public. You have that and the high private market valuations combined with, you know, i think there is a sense out there that because not every company has to come public, there is a little bit of suspicion attached to the ones that insist on becoming public you must need the money. Why do you need the money . I think blue apron might have suffered from. That. They say its not the end game it is just another mild stone in our long history as a company. But, eric, to mikes point, the hype doesnt begin when they go public the hype begins in the private market so where does the correction need to happen there, at what stage . And is that actually happening so far as can you tell no, not yet and that is baeshiearish stocks. You get those that are not all that experienced, they come in and do a later round at, you know, 3 billion valuation blue apron goes out at 2 billion. You live and you die by the hype so that is not helping but at the bottom, you have to ask what kind of company do you really have mean how do you value blue apron . It was hyped as a tech company its a tech company like dominos is a tech company. They deliver boxes and ingredients. They use some technology, every company uses technology. So i think there has to be an expectation and a framing reset all the way up and down the ladder eric, i know youve looked at sort of the lead underwriters for snap in this case goldman and Morgan Stanley and then the speed with which the sell side of those firms turns and down grades. How common is that with morgue an stanley, they famously did it even high torte ipo at facebook. But you have to scratch your head and wonder, you are on the inside of the Due Diligence process. Anybody whos gone public knows the Due Diligence process is really painful i mean they want to check to make sure your shoe size is a shoe size you claim it is. How can they have done that . And a few months later say, oh, well, you know, now were changing our expectations. I mean, what happened in the Due Diligence process . Its not the first time. But when it happens, it mystifies me because i have been in the Due Diligence process mike, eric mentions that dominos is not necessarily a tech company but, you know, it sure looks like one stark chart wise compared to others in terms of logistics. I wonder how much should investors be thinking past the hype and thinking what is the true fundamental value of what theyre doing. On facebook when it hit 19, maybe i should buy it here despite the fact that its well off the ipo price. What is the real Way Investors should be thinking about the value of these companies to the extent that there isnt . Facebook had already demonstrated the profitability of the business model. The question is what value mobile was going to kill them. Right you had six months of complete panic about that. And then in retrospect, it looks obvious. I dont think its ever obvious at the moment theyre about to take off like. That i think when it comes to a blue apron, i think that its not just a question of what business are they really in and can they succeed it shows me that a lot of the startups, theyre up to the hard problems now you know its not as if its like this Effortless Network that facebook has set up that just couldnt help the money coming if if they tried. Your jump on the facebook train . Network effects thats all also, its investor preference you talk about the analyst downgrading things, that tells what you the investors are willing and unwilling to listen to right now i think that basically tells you whats winning in this market right now . The acknowledged dominant Companies Like facebook, like alphabet not the upstarts. What was winning for a time, eric, is scarcity. People were buying ipos just because there werent many of them f youre a roku or drop box and this is obviously farther away and farther afield from these companies, but saudiaramco. Are you buying the stocks because you believe in the thesis of the company or buying them because you need have a little bit of ipo in your portfolio . Its a little of each youre searching for yields. Youre not getting yield anywhere else. You dont want to be left out. How come you didnt get a piece of it . There is a psychological thing i think the point is just made is a big point you really have to ask how is this business going to make money . You look at a blue apron, it turns out that theyre now at a phase at the phase where theyre going backwards. It costs them more to bring in each new customer, not less. Existing customers are using blue apron less than they used to this is not something you grow out of theyre growing into bigger losses and you have to ask the same thing about Something Like snap. Are they going to grow out of their losses or is the underlying business one where theyre going to have to spend more and more money to battle facebook and end up retreating into being some kind of Smaller Company that competes elsewhere. You know, some Companies Like facebook made sense because you can figure out how theyre going to make more money as they get bigger some companies you think as they get bigger seems like theyre going to lose more money not make more money. Yeah. Well facebook went through the own crucible it took a long time to get above that ipo price well see if snap or apron have as a group, ipos are doing okay its the harrelled ones that have not been. You want to talk about carvana yeah. Tech ipo thz year are up 18 . Theyre doing fine but about a third of this years ipos are below water you have to be pretty select eric, thank you good discussion. Both apron and snap within a few cents of their lows for the year, guys thanks so much the Allen Company conference in sun valley is where sports ceos gather to talk about the future of their industry were watching that. What a week its been, julia what a week its been, carl now the nfl commissioner and several nfl team owners are here in sun valley. Theyre talking about the Upcoming Season and also talking about the fact that theyre coming off a 9 decline in regular season ratings last year now Roger Goodell told us the league is working to cut down on ad breaks, make them slightly longer to help keep viewers more engaged. One of our big efforts is to try to make sure that we make the experience whether youre watchinging on television nor our stadiums make it a more compelling experience for our fans and that means trying to do less breaks trying to maek suke sure that we not overcommercializing, trying to find times that we can take down time out of the game and make the game focus on action which is what the fans want. Goodell told us he is excited about the new deal to stream 10 thursday night nfl games on amazon prime cbs ceo who broadcasts half of the games that will be on amazon told us that hes not concerned about amazon eating into his ratings. But were certainly hearing a lot here from ceos about amazon and facebook both making a big push into premium content which, of course, includes sports. Iac ceo tells us that facebook has the scale to pose a huge threat to traditional media. They know what people want and they know what people like and they can get faster data than anybody on earth. So its hard to bet against them in that area but i dont know the content game is very different than the Platform Game and the technology game. Well hear more about how amazon and facebook are shaking up sports and content coming up in power lunch. Guys, back to you. All right jewel yash julia, thanks. Jeff bezos is getting attention in the confidence. Drudge posted this photo calling him the bionic man asking if their too big and if theyll step in. He added some muscle mass as we talked about this morning. I like how were checking out male ceos now. I that i is only fair. Tim cook also lost about 20 pounts to be fair, Mark Zuckerberg looking jack dont feel self conscious, jeff base yoes trying to keep up. Hes facing challenges from apple and other governments. Of course, you see google, alphabet, facing challenges with the eu right now we have multiple titan thats established themselves and spaces but i think increasingly were seeing the headlines from competitors and governments questioning is there something wrong here amazon and google for a long time, too, had been safe from government scrutiny or intervention because they grew organically. Now that is changing for amazon. Although, the other argument is that amazon is deflation airy, sfligt so what is antitrust if its not creating Price Inflation . Thats another or eventually that could change. But thats a big argument in antitrust circles right now. There are lots of organic goods in whole foods i think even the concern that these are these companies are so big and so dominant that governments might reinvent the rules in order to somehow put shackles on them is that something that investors can possibly price in . I dont know i mean were kind of in unchartered territory when it comes to this sort of thing. Meanwhile, people trying to get their heads around what amazon might be after next theories continue to irculate. Pharma, furniture, real estate advisory services. Its been about a month now since the amazonwhole foods deal was announced and in that time grocers, other grocers continue to see pretty good price appreciation. If you can offer anything product to the consumer at a cheaper price than theyre getting it from somewhere else, i think it doesnt really matter who the vendor is at that point. Im allergic to the hype though its like all of amazon is google x dhe do anything. They cant do everything right as Goldman Sachs points out in their walmart upgrade today. And the department of transportation out with airlines, the Airlines Report card our phil lebeau is in chicago with that. It was a bumpy month for airlines for you look at the flights that landed on time, 79 , down from 83 in may of last year. Heres where the airlines that did the best, hawaiian, dealt yashgs alaska, skywest and united those are the Top Five Airlines who struggled relative to these guys terms of on time performance the month of may we see a number of the airlines tend to be at the bottom expressjet, frontier, spirit, jetblue, virgin america. Yes, theyre being folded into alaska but just 58 of their flights landed on time one note about the on time arrivals, in the month of may, there were 27 flights that had tarmac delays where people sat on the tarmac for greater than three hours. Thats a large number for any month since they instituted the new rules. And with regards to complaints, remember in, april there was a big surge in the number of complaints from people filed with the dot they filed with the d. O. T. Well, there is still an increase in the number of complaints for may, not as much as april. But a surge of 56 in the number of complaints filed against airlines most of those complaints having to do with service, reservations, bookings, et cetera down slightly from april but still a big month for complaints guys, back to you. Phil, thank you for that. When we come back, the banks beating the street better than expected results strong words from jamie diamond. Ow amazon is sparking construction in 21st century boom towns disneys plans for a new theme park i think you want to drive the millennium falcon . Well tell you how you can when squawk alley comes back. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. And at 4. 95, you can trade with a clear advantage. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Welcome back jp morgan, wells out with earnings before the bell it wasnt in the the Conference Calls that fireworks started were tracking the action. Pretty interesting commentary from jamie diamond it was. But we should put the fireworks in perspective jamie dimon kmenldcommended the resilience of the economy despite various significant obstacles. We have become one of the most bureaucratic confusing litigious societies on the plan it it is almost embarrassing listening to what we have to deal with in this country. He said there were lessons to be learned from france, argentina, india and china every single one of those countries understands that practical policies promote business and growth is good for the average citizens of those countries for jobs and wages and somehow this Great AmericanFree Enterprise system we no longer get it. He said that there have been a sea change in the environment in the eu since the election of president macron in france who he praised but crucially on the u. S. Overall, he was upbeat saying, if gridlock goes away, well grow faster. But if it continues, we wont grow slower. The bank stocks today are down despite earnings beats j. P. Morgan because Net Interest Income disappointed. Wells fargo because loan growth disaint pod and citi along with the other two because theyre recent share Price Performance had already been strong. All right thank you so much for wrapping it up. Lets look at j. P. And wells and citi we have anabli analyst with us baird equity it reminds me a little bit of the commentary during the Obama Administration when the bank was targeted with lots of fines, lots of scrutiny and lots of regulation do you think theres a risk of retaliation now that hes spoken out against the gridlock in washington good morning. Thanks for having me on. Yeah, its a good question no i dont and im not really concerned about retaliation. I think i dont want to touch the politics of it i think this is just a way for jamie to indirectly communicate with lawmakers to try and get off the dime and get things done so what do you think would benefit this sector the most in term of policy well, from a policy perspective, weve already started to see some of the benefits from a little bit more liberal view of being able to return capital i think some relief on liquidity rules would help the biggest banks. Probably the biggest benefit is tax and infrastructure and most notably tax. Not only would it have a direct impact on the bank sector, the banks have the highest tax rate in the s p 500 at about 30 to 31 , there would also likely be a Multiplier Effect in terms of its positive impact on the business the Business Community and the economy overall. And loan growth weve repeatedly heard that banks arent lending, there is a cloud over the banks from regulation is that easing a bit if it is, why havent we seen stronger loan growth that not only meets but exceeds expectations there is a lot of just, i think, misinformation with respect to loan growth and demand and so forth. Bank loan growth for the last three years has averaged between 6 and 8 . And thats at a clip thats three to four times gdp in the u. S. Loan growth has actually been quite strong and banks are very willing to lend to qualify borrowers. I think were on a situation today where loan growth has slowed a lot particularly in the commercial sector and its really a demand function rather than banks willingness to lend. Companies borrowed a lot of money to buy back their own stock. Now were of the view that loan growth is going to remain relatively subdued in the 3 area david, have we turned a corner culturally, you think, when it comes to the banks in the u. S. And how people feel about them as recently as the fall both on the democrat and republican sides there was a lot of criticism coming in for the big banks, the likes of Goldman Sachs. Now certainly the trump administrationembracing banker and jamie dimon feels comfortable saying some of the things that he said this morning. Should we take something broader away from that no, i dont think so i mean, banks have never been especially popular just going back many, many ecades and every time there is a crisis, someone gets the blame and the Banking Industry unfortunately is just a convenient punching bag for those that are looking for someone to blame so i think politically i dont think its really relevant from an investment perspective. But im not sure that banks will ever be viewed extremely positively by politicians and citizens overall david, how much upside is on the roe for at least jpm 12 is a number a lot of people thought we would