Continuing to expand its reach across industries. Filing a trade mark for its own Meal Kit Service this follows the companys purchase of whole foods last month. Current leading meal kit provider is blue apron which cratered following the ipo and was down as much as 7 earlier this morning interesting, kara. This exercise of guessing what amazons going to take on next has been going on for years. But how seriously do you give do you take this i mean its not an enormous business i think, you know, theyve been in the meals business for a while. They deliver other peoples meals. They do all kinds of other things its not a new new thing it will be another amazon branded service. And especially i mean, i think theyve been delivering whole foods meals and things like that. So i think what it is is that these businesses are relatively small and they sort of need to be attached to a larger player a little bit like facebook does to snapchat just takes the innovative ideas and brings them to scale and thats the problem with a company like blue apron. Theres a whole buvenlg of thnc here in San Francisco. There are so many of them that deliver this food. Its an exercise in spending money for the benefit of consumers. And thats the problem is its not that big a business. And its really hard to scale. Kara, at what point do we reach peak amazon fear there is a super jeff thing going on figuratively and amazon can do anything and then literally in that buff picture of jeff baez yoezos last week all the stock reactions is things that amazon might do. If they tried to do everything that they might do within the next two years, i dont think they get any of it done. Except this is in their ballpark its in the wheel house. And that expression, i mean, i think Meal Delivery is part of all delivery, i think. And so its just another thing they can add on. Another product just like clothing or pharmacy so if you can look for add j add j ajay sencies they can do a lot of things they do and add on features and Better Things that are adjacent. I think youll see tons of that Going Forward for them. Speaking adjacencies, is this move into the meal kit something that theyre using as an experiment to use larger scale grocery delivery i know they have amazon fresh. But with whole foods now, they have to figure out that business mad will thats o model yeah. I think thats interesting ive always thought, im sort of mud willing how do they deliver the foods . Food to go is a really enormous area it needs enormous distribution and so you start to think about what do they need to be able to do that. Meals to go are different than groceries. They can put in a box and deliver. Meals to go have to be a relatively fresh and so some of them are, some are meal kits and various things still, its still not a business that makes a ton theres tove tons of businesses doing this. They get all this amazing stuff for free essentially with these very inexpensive meals but as you see from blue apron or others, theyre struggling to and others that have closed, theyre struggling to really make a big, big business of it because its such a difficult and complex business to execute on. Yeah. Its fascinating, kara we had else in on pelts on this morning talking about proctor and gamble he says the brands are too big he wants brands that are more 200 million to 300 million in that respect, scale looks like a problem here, scale is the ultimate weapon, right . Its getting whiplash hearing it. Hes talking about kind of the cool brands like buy, like the water the flavored water and stuff like that there are too many big giant brands versus very interesting products for consumers. Also then there is the amazon basic products i use a lot of those theyre fine perfectly fine grocery has been doing those for decades. But when theyre done on a xind of scale that amazon is doing, its really fascinating to watch the shifting landscape of retail by the way, jeff bezos looked really good. I dont know how you feel. I thought he looked very attractive looks good, jeff keep it up he has a shaved head too. I dont know yeah. You follow retail very closely, courtney. We had amazon talking about a version of the geek squad. Theres a filing about that recently there was an amazon version of stitch fix that people are talking about. Now amazon version of blue apron. Does amazon have the enough lieutenants in place to actually execute on all of these things jeff bezos, busy guy. Sure. I think thats a wonderful question i think its a good point. I think right now they do. I think its just the idea that theyre running with it. Especially if they can leverage prime for all of this, again, we know thats probably the plan with the subscription for the clothing but if you do that as well with the meal kit delivery, then you have the whole prime tea involved there, too. But it is a question how many more items can you add to the plate book stores they have to open up a bunch of book stores, too they do have a handful of those. What is old is new again with the book stores. But it is amazing to think about the runway that amazon is trying to take off from with all of the different sectors and businesses. Lets move on to ai elan musk speaking at the National Governors association over the weekend talking about the future of our Artificial Intelligence hes been long weary of the technology he took it a step further on saturday take a listen. A sichlt a rai is a case wheo be pro active in regulation instead of reactive. By the time were reactive in ai regulation, its too late. Care yashkara, we look to mua futurist that we increasingly seem to trust. What do you make of the comments this is a drum hes been banging on for a while a couple years ago at a code conference, he talked about this if you recall, a lot about where its going and how, you know, he thinks machines are going to treat us like cats at some point. Theyre not going to be necessarily dangerous but theyre going to run everything and treat us like house cats and he suggested we add neuronetworks into the back of our brains so we can keep up you know, the thing i think hes most worried about which he doesnt talk about, he tlikz do the terminator scary thing that theyre going to kill us i dont think machines are going to care about us at all. Thats more the issue. Who runs it . I think hes concerned that google and facebook, especially google has so much control over ai and develop ment of ai given how many ai engineers they have. And so i think the big question is who programs ai and right now its largely white men. Its largely oenld by google its large lishgs yly amazon or. I think his concern, it is less about, you know, that we have Arnold Schwarzenegger kelg aillg all of us and we have who controls it and whos in control of it and it should be more wide fred and democratic. I agree with him 100 on that issue. Who is on the other side of this if i recall, at the most recent code conference, others took the other side ai will be great for everybody there will be more jobs. We wont be house cats. More. Yeah whatever you know, i dont know i think he doesnt know. I think its really interesting to see what happens. Not adjustmejust ai. Its a whole package of Futuristic Technology thats are moving quickly elan is right about this what do we want to do about it and regulate it . Or it is going to just develop on its own and be controlled, you know, again by a google which really does have a front seat to this compared to other places i think something that politicians arent thinking about at all theyre thinking about the yesterday and i think about tomorrow its a very good idea to get ahead of this and at the same time not overregulate it so that say china or israel or wherever gets sort of ahead, so far ahead in these technologies which were leading in this country for now at least and elan wanted some regulation i mean thats a rare thing to hear from elan musk or Silicon Valley executive in general saying you need to step in now before its too late what do you think hes suggesting hes already in regulated industries, right . Cars and space travel and things like that. So i think he part of it is genuine worry about how this has developed. I think part is genuine concern about who controls it and if large corporations not elan musk control these things hes been involved in open ai. Hes been involved in all kinds of things. I think its very easy to do the idea of the machines are going to come and kill us one day. I was with someone smart yesterday having dinner and they said, you know, the wi fi is so bad im not sure machines can take over. Wi fi was bad in San Francisco yesterday. It was just funny. It was an odd thing to think b. Will machines fix the wif snichlt forget about going self aware. It s its a combination ai, automation, robotics you got to you really have to bring them all together and think about where the government has to play in these three areas especially around driving, especially around health care, especially around all kinds of things it really does move very quickly into a really interesting scenario and a disturbing one around jobs which is really the point of the whole thing speaking of disturbing, kara, the culture in Silicon Valley hitting crisis mode with Sexual Harassment at the forefront. Startup incubator creating a blacklist of entrepreneurs encouraging those who have been assaulted to come forward and blow the whistle kara, you were on our colleague meggin megyn kelly show talking about this. What was talking about is most women in Silicon Valley and borne out by her interviews with a bunch of Women Entrepreneurs have a story about Sexual Harassment it runs the gamut from very minor things, sexism, i dont even want to call it casual sexism, but remarks and nonability to move and not ability to get promoted to very serious allegations that have been taking place all over the Venture Capital market right now here and i think my whole point was that everyone has a story about this if this is going to be the most innovative industry Going Forward, these this is a disease that has to be irrad indicated from the culture this sort of bro culture i talked about the juvenile nature of it i think it holds back innovation and if you want to make the argument that its wrong, thats really the argument. But if you need another argument tshgsz bad for business. Its bad for people. Its bad for culture its bad for, you know, innovation moving forward. I think its sad that women have to constantly speak up and take a risk in speaking up. It shouldnt happen in the first place. But its somewhat great to see women just speaking up and talking about it openly and not acting as if its their fault or that they cant talk or that theres retaliatory things that are going to happen to them. So thats super heartening to me i meanwhile we certainly hope that things get better, isnt there possibly a risk that this could there could be some strange retaliation where men say i dont want to take meetings with women. Im afraid i may do or Say Something wrong. Yeah much its like the mike pence moment i xr i cant have dinner with women im raising two sons they dont mistreat women. Men dont have to control themselves they should just thats not how we should think about this and ive heard i have to say, i heard it from a lot of vcs, like maybe i wont have women there because then it just creates problems if you apply that to race or religion, it would seem crazy to talk like. That and so they shouldnt talk like that about women and jenlder issues they should be able to handle nem a mature, adult way. In what way can the conversation move forward this time i recall having conversations with people like sue decker, carol barts about the version of sexism that they experienced coming up in Silicon Valley and they talked about it, we talked about it as if that was a previous era is the lesson we havent grown out of it so we need to do something differently than we did in the past . This is a conversation thats been happening for a while and this is a president ial election where it was a topic. That was astonishing i dont know i think its i feel like theres been a slight breakthrough and im hoping that people really take the things to heart. And really start to realize it doesnt help to create a culture that is nondiverse and doesnt have a range of people contributing to it i agree with you, john i think you and have been talking about this a long time it seems so inane and yet it still continues. Youre not going to stop stupid remarks but youll put systems in place where people feel safe enough to report them and figure out a way he can que createwe c workforce where people with contribute equally its just creepy some stuff is just creepy. You know what i mean the creepers have to go. I dont know how thats going to happen but they have to go. Yes kara, thank you so much. We covered good ground today well see you soon kara swisher well have more on this top nick just a bit Jennifer Hyman is going to join us to talk about what can be done to fix it now lets see what we can expect from netflix earning avs the bell investors continue to focus on netflixs subscriber growth to justify the stocks sky high valuation. The stock up is 64 over the past 12 months now focus on subscriber growth is despite the fact that ceo says Revenue Growth and operating margins are more meaningful to the company. Netflix forecast that they would add 3. 2 million new subscribers in q2 investors are hoping it will top that number. Since the Second Quarter is usually the slowest for new subscribers, even more important is the growth number that netflix forecasts for the third quarter. Anlives are looking for nearly four million new subscribers then with over 80 of those coming from overseas according to facts they expect investment in original content and International Expansion to pay off, projecting 31 Revenue Growth to 2. 8 billion and Earnings Growth of 63 to 16 cents per share. Analysts are also bullish on netflixs new content lineup new series such as glow and 13 reasons why plus the return of marquee content including orange is in the new black should drive new additions international down loads of the netflix app. The big question then is how much all of that new original content is going to cost netflix and how much its going to weigh on profitability were looking for an update on the 6 billion that hastings said netflix will spend on original on content this year in 2017 and well see if the fact that netflix has canceled some shows this past quarter will impact that spending on content and profitability. Back to you. All right cant wait for tonight julia, thank you very much talking netflix earnings tonight. When we come back, the seattle of rent the runway will join us with her thoughts on Silicon Valleys Sexual Harassment problem. First though, more from our exclusive with nelson peltz. Well take you inside the proxy fight that is taking place at Procter Gamble again, it is still the narrowest range for the dow in a few years, less than 30 points were back in a minute you always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. Nelson peltz joined us on squawk on the street this morning in an interstrew talk about the proxy fight with probl Procter Gamble back to recap what a 20 minute interview that was yeah. A lot to go over there of course, something unexpected here is the presence of a proxy fight at all mshgs would have thought after the ownership for quite a few months and their desire for a board seat that p g would say, okay. He is not asking them to split up the company hes not asking them to increase leverage dramatically. He is asking them to focus more on the core business, generate more organic top line growth and focus as well on their market share of their brands. Take a listen. If you look at market share, it is, again, for a ten year, five year, four year, whatever period of time, you want to look at it is losing market share but, yet, its the only company out there on the consumer space that has over 20 billion plus dollar brand but when you have that many brands, they tend to start to lose market share. The way you counter act that is you have a company that is good at incubating new brands, building new brands, acquiring new brands or by implication, p g has not been effectively doing that many would have thought perhaps the company would have said okay, mr. Pelts, you can join our board he is simply saying put necessime on and add. Hes not looking to replace another existing board member. But people close to p g tell me the company felt that after only what they said was five months he says nine months of ownership of the stock, simply wasnt a seasoned enough position at this point for them to feel that he deserved to be on the board as well the dynamic on that board they thought would change with his presence and that overall he would want to direct them more concretely to particular targets which would take them away from their Long Term Plan to have cost savings and reinvest to give vigor to the growth of the overall business it simply would be something that they felt at least at this point was not practical to what they wanted to pursue. For his part, mr. Nelson peltz says im not talking short term quarter to quarter concrete targets. Im focused as he wants the board and company to be on the long term. I told those guys as old as i am, im looking to p g in 2030 i want boards and management to act leike the entire net worth i tied up in that company. Were not looking for the next quarter. We want them to wear buy focals. The next quarte