1 00:00:02,960 --> 00:00:07,280 Speaker 1: Broadcasting live to New York, Bloomberg eleven Rio to Washington, 2 00:00:07,360 --> 00:00:12,400 Speaker 1: d C. Bloom to Boston, Bloomberg twelve hundred to San Francisco, 3 00:00:12,520 --> 00:00:16,919 Speaker 1: Bloomberg nine to the countries, Jus Exam General one and 4 00:00:17,079 --> 00:00:20,760 Speaker 1: around the globe the Bloomberg Radio Plus Appen Bloomberg dot Don. 5 00:00:21,200 --> 00:00:25,000 Speaker 1: This is taking stock. Coming up on taking stock, will 6 00:00:25,000 --> 00:00:27,800 Speaker 1: take stock of Facebook. The stock is up more than 7 00:00:28,920 --> 00:00:32,120 Speaker 1: in the past year, and today it holds its annual 8 00:00:32,200 --> 00:00:37,280 Speaker 1: shareholder meeting. One of the issues class C stock. This 9 00:00:37,680 --> 00:00:40,720 Speaker 1: was well. It was proposed back in April, designed to 10 00:00:40,720 --> 00:00:44,800 Speaker 1: give Facebook currency for acquisitions and not dilute Mark Zuckerberg's 11 00:00:44,840 --> 00:00:48,160 Speaker 1: control of the company. We'll get more details. We'll also 12 00:00:48,240 --> 00:00:51,880 Speaker 1: find out what kind of future Peter Teal has Facebook 13 00:00:52,520 --> 00:00:55,040 Speaker 1: in his in his back pocket or in Mark Zuckerberg's 14 00:00:55,040 --> 00:00:56,440 Speaker 1: All that in a whole lot more coming up when 15 00:00:56,480 --> 00:00:59,440 Speaker 1: we take a look at Facebook now. Charlie Pellets coming up. 16 00:00:59,480 --> 00:01:03,279 Speaker 1: He's gonna business and I thank you, Kathleen, thank you him. 17 00:01:03,280 --> 00:01:05,520 Speaker 1: We're brought to you by Brooks Brothers. Big event there 18 00:01:05,880 --> 00:01:09,559 Speaker 1: semi annual sale going on now through June twenty Shop 19 00:01:09,560 --> 00:01:13,120 Speaker 1: early for the best selection. Visit Brooks Brothers dot Com 20 00:01:13,240 --> 00:01:16,320 Speaker 1: to shop the entire collection or to find the location 21 00:01:16,440 --> 00:01:21,240 Speaker 1: closest to you. Facebook shareholders have re elected all eight 22 00:01:21,319 --> 00:01:24,679 Speaker 1: members of the Social Networks Board, including Peter til the 23 00:01:24,760 --> 00:01:28,760 Speaker 1: investor backing a controversy controversial lawsuit against Hawker. At the 24 00:01:28,760 --> 00:01:32,720 Speaker 1: company's annual shareholders meeting, Investors also approved the creation of 25 00:01:32,800 --> 00:01:36,080 Speaker 1: non voting shares that would allow co founder Mark Zuckerberg 26 00:01:36,160 --> 00:01:38,639 Speaker 1: to sell or give away much of his Facebook stock 27 00:01:38,880 --> 00:01:42,479 Speaker 1: while retaining control of the company. Facebook shares are up 28 00:01:42,480 --> 00:01:45,440 Speaker 1: now by five tenths of one percent, up sixty cents 29 00:01:45,520 --> 00:01:49,920 Speaker 1: to one thirteen sixty two. Equities are advancing s and 30 00:01:50,000 --> 00:01:52,920 Speaker 1: P five hundred, indecks, jumping the most in four weeks 31 00:01:53,000 --> 00:01:57,000 Speaker 1: after the latest polls show Europe show the UK campaign 32 00:01:57,080 --> 00:02:00,000 Speaker 1: to remain in the European Union is gaining ground before 33 00:02:00,360 --> 00:02:04,720 Speaker 1: Thursday's referendum. Investors also looking ahead to the start of 34 00:02:04,760 --> 00:02:08,040 Speaker 1: tomorrow's to day FED testimony. Right now, the SMP up 35 00:02:08,120 --> 00:02:11,119 Speaker 1: sixteen at two thousand and eighty seventy, gain of eight 36 00:02:11,120 --> 00:02:13,880 Speaker 1: tenths of one percent. NAS snack up forty six to 37 00:02:13,960 --> 00:02:16,760 Speaker 1: forty eight forty six, a gain of one percent down. 38 00:02:16,760 --> 00:02:19,920 Speaker 1: Industrials up one hundred seventy two points, a gain of 39 00:02:20,040 --> 00:02:23,640 Speaker 1: one percent. Gold down three thirty ounce to twelve ninety 40 00:02:23,639 --> 00:02:26,280 Speaker 1: want to drop of two tenths of one percent. Crude 41 00:02:26,280 --> 00:02:29,160 Speaker 1: oil West Texas Intermediate of a dollar twenty two a 42 00:02:29,200 --> 00:02:32,120 Speaker 1: barrel forty nine twenty for w t I that is 43 00:02:32,160 --> 00:02:34,520 Speaker 1: a gain of two and a half percent. Tenure down 44 00:02:34,560 --> 00:02:37,760 Speaker 1: sixteen thirty seconds that yield one point six six percent, 45 00:02:38,639 --> 00:02:40,959 Speaker 1: and the three thirty two on Wall Street. Now, let's 46 00:02:41,000 --> 00:02:43,360 Speaker 1: take a look at other news from around the world. 47 00:02:45,000 --> 00:02:47,840 Speaker 1: Thank you, Charlie from the Bloomberg News Room. I'm Jill Schneider. 48 00:02:48,080 --> 00:02:50,120 Speaker 1: This news update is brought to you by the deep 49 00:02:50,160 --> 00:02:54,080 Speaker 1: Grand Cherokee, the most awarded suv ever. The Grand Cherokee 50 00:02:54,120 --> 00:02:57,480 Speaker 1: continues to raise the bar with its luxurious interior and 51 00:02:57,600 --> 00:03:00,680 Speaker 1: legendary four by four capability. Drive one at your local 52 00:03:00,720 --> 00:03:03,640 Speaker 1: jeep dealer today. A big shake up today in Donald 53 00:03:03,680 --> 00:03:07,880 Speaker 1: Trump's campaign. Corey Lewandowski is out as Trump's campaign manager. 54 00:03:08,040 --> 00:03:10,720 Speaker 1: Lewandowski says he's not sure why he was fired, but 55 00:03:10,800 --> 00:03:14,200 Speaker 1: he understands those killings are on the suspect and on 56 00:03:14,280 --> 00:03:16,840 Speaker 1: the suspect alone. In my mind, all that will be 57 00:03:16,880 --> 00:03:21,480 Speaker 1: investigated by our officers acted heroically and did as they 58 00:03:21,480 --> 00:03:26,040 Speaker 1: were trained in an unbelievable circumstances and did a phenomenal job. 59 00:03:26,200 --> 00:03:29,880 Speaker 1: The FBI today released the transcripts from nine calls between 60 00:03:29,919 --> 00:03:33,760 Speaker 1: the Orlando nightclub shooter and police. Orlando Police Chief John 61 00:03:33,800 --> 00:03:37,240 Speaker 1: Mina says officials are still investigating to determine whether some 62 00:03:37,360 --> 00:03:40,160 Speaker 1: victims were shot by police. Those killings are on the 63 00:03:40,200 --> 00:03:43,360 Speaker 1: suspect and on the suspect alone. In my mind, all 64 00:03:43,400 --> 00:03:47,680 Speaker 1: that will be investigated by our officers acted heroically and 65 00:03:47,760 --> 00:03:51,960 Speaker 1: did as they were trained in an unbelievable circumstances and 66 00:03:52,000 --> 00:03:55,640 Speaker 1: did a phenomenal job. People were killed in the nightclub attack. 67 00:03:56,120 --> 00:03:58,760 Speaker 1: Former US House Speaker Dennis Hastert will report to a 68 00:03:58,800 --> 00:04:01,960 Speaker 1: federal prison in south eastern Minnesota this week. The seventy 69 00:04:01,960 --> 00:04:04,960 Speaker 1: four year old was sentenced to fifteen months behind bars 70 00:04:05,000 --> 00:04:08,720 Speaker 1: in a hush money case. A special naturalization ceremony is 71 00:04:08,760 --> 00:04:11,280 Speaker 1: being held in Central Park tonight in honor of World 72 00:04:11,320 --> 00:04:15,200 Speaker 1: Refugee Day. Twenty people hailing from twelve different countries will 73 00:04:15,240 --> 00:04:17,800 Speaker 1: be sworn in as new Americans. Most of them are 74 00:04:17,839 --> 00:04:22,000 Speaker 1: refugees or asylum seekers. Global News twenty four hours a day, 75 00:04:22,040 --> 00:04:25,520 Speaker 1: powered by our journalists in more than one hundred fifty 76 00:04:25,560 --> 00:04:28,240 Speaker 1: news bureaus around the world. From the Bloomberg News Room, 77 00:04:28,279 --> 00:04:31,880 Speaker 1: I'm Jill Schneider, Charlie, and we thank you it again. 78 00:04:31,960 --> 00:04:35,760 Speaker 1: Recapping stocks high SMP five hundred in decks of sixteen 79 00:04:35,800 --> 00:04:38,640 Speaker 1: now to two thousand eighty seven, a gain of eight 80 00:04:38,640 --> 00:04:41,840 Speaker 1: tenths of one percent. I'm Charlie Pebblett, and that's a 81 00:04:41,880 --> 00:04:46,320 Speaker 1: Bloomberg business flash. You're listening to taking stock with Bill 82 00:04:46,440 --> 00:04:50,520 Speaker 1: Box at Katholeen Hayes on Bloomberg Radio. It is good 83 00:04:50,560 --> 00:04:55,000 Speaker 1: to be king, or at least co founder of Facebook 84 00:04:55,120 --> 00:04:59,920 Speaker 1: Mark Zuckerberg. At the company's annual shareholders meeting today, investor 85 00:05:00,120 --> 00:05:03,440 Speaker 1: approved the creation of non voting shares that allow him 86 00:05:03,520 --> 00:05:06,120 Speaker 1: to sell or give away much of his Facebook stock 87 00:05:06,320 --> 00:05:09,760 Speaker 1: while retaining control of the company. This is key, That's 88 00:05:09,760 --> 00:05:13,080 Speaker 1: why Mark Zuckerberg repos proposed this just a couple of 89 00:05:13,080 --> 00:05:16,479 Speaker 1: months ago. Shareholds also re elected all eight members of 90 00:05:16,480 --> 00:05:20,440 Speaker 1: the Social Networks Board, including Peter Thiel, the investor backing 91 00:05:20,520 --> 00:05:25,600 Speaker 1: a controversial lawsuit against Gawker. Johnny us now is Scott Kessler, 92 00:05:25,800 --> 00:05:30,400 Speaker 1: Deputy head of equity research at SMP Global Market Intelligence 93 00:05:30,680 --> 00:05:34,000 Speaker 1: Here in New York, City, Welcome back, Scott Bank, Kathleen 94 00:05:34,320 --> 00:05:37,520 Speaker 1: so Um not too surprising. I guess that the shareholders 95 00:05:37,600 --> 00:05:40,520 Speaker 1: backed this creation of non voting shares that will help 96 00:05:40,800 --> 00:05:44,279 Speaker 1: Mark Zuckerberg stay at the helm no matter what. A 97 00:05:44,360 --> 00:05:47,359 Speaker 1: vote of confidence in Mark Zuckerberg. Yeah, I mean, I 98 00:05:47,400 --> 00:05:50,360 Speaker 1: think one of the mottos to today's shareholder meeting could 99 00:05:50,440 --> 00:05:53,520 Speaker 1: be you know and Mark, we trust, right. I mean, 100 00:05:53,560 --> 00:05:56,560 Speaker 1: I think when you consider the fact that this company 101 00:05:56,640 --> 00:05:58,640 Speaker 1: came public over four years ago, and they made it 102 00:05:58,640 --> 00:06:01,919 Speaker 1: pretty clear that UM it would be a controlled company, 103 00:06:02,279 --> 00:06:07,120 Speaker 1: which essentially means that Mark Zuckerberg UM was controlling a 104 00:06:07,200 --> 00:06:10,240 Speaker 1: lot that went on at the company, from decision making 105 00:06:10,320 --> 00:06:15,760 Speaker 1: to capital allocation to all in between. And honestly, initially 106 00:06:15,800 --> 00:06:19,000 Speaker 1: there were substantial questions about corporate governance and whether or 107 00:06:19,040 --> 00:06:21,520 Speaker 1: not Mark Zuckerberg, as you may recall, was kind of 108 00:06:21,640 --> 00:06:25,720 Speaker 1: up to the challenge. He was wearing hoodies to UM 109 00:06:25,839 --> 00:06:29,960 Speaker 1: the road show meetings and no showing and other important gatherings, 110 00:06:30,000 --> 00:06:33,200 Speaker 1: at least according to unconfirmed reports. And meanwhile, I think 111 00:06:33,200 --> 00:06:35,080 Speaker 1: it's fair to say that over the last four years 112 00:06:35,080 --> 00:06:37,600 Speaker 1: he's really emerged as one of the pre eminent CEOs 113 00:06:37,640 --> 00:06:41,239 Speaker 1: on the planet. Scott what about investing in Facebook shares 114 00:06:41,279 --> 00:06:45,359 Speaker 1: at thirteen dollars a pop, so PAM. What's interesting about 115 00:06:45,360 --> 00:06:48,840 Speaker 1: Facebook is that stock hasn't done all that well for 116 00:06:48,920 --> 00:06:52,920 Speaker 1: the last couple of weeks. Obviously, it did tremendously well 117 00:06:53,000 --> 00:06:55,760 Speaker 1: last year, and I think here to date it's still outperforming. 118 00:06:56,279 --> 00:06:59,520 Speaker 1: But I think there's been some consolidation over the last 119 00:06:59,760 --> 00:07:02,680 Speaker 1: one call it UM a couple of weeks, I think, 120 00:07:02,760 --> 00:07:05,280 Speaker 1: largely for a couple of reasons. So first, I think 121 00:07:05,279 --> 00:07:08,640 Speaker 1: there were some concerns about this shareholder meeting and what 122 00:07:08,720 --> 00:07:11,920 Speaker 1: could potentially come out of it. The other thing is, 123 00:07:11,960 --> 00:07:16,840 Speaker 1: I think books are increasingly concerned about UM competition. It 124 00:07:16,840 --> 00:07:19,280 Speaker 1: seems like there's a lot of talk about Snapchat and 125 00:07:19,360 --> 00:07:25,200 Speaker 1: whether Snapchat is let's say, taking some users and engagement 126 00:07:25,280 --> 00:07:29,400 Speaker 1: away from if not Facebook, then perhaps definitely Instagram. And 127 00:07:29,440 --> 00:07:31,520 Speaker 1: then I think last it seems like a lot of 128 00:07:31,560 --> 00:07:34,240 Speaker 1: people believe that all the good news is out on 129 00:07:34,280 --> 00:07:36,880 Speaker 1: Facebook and all the investors who could buy are already 130 00:07:36,880 --> 00:07:41,040 Speaker 1: in the shares. We have to uh disagree with those 131 00:07:41,080 --> 00:07:43,240 Speaker 1: notions to a large extent. We think there's a lot 132 00:07:43,280 --> 00:07:46,200 Speaker 1: more upside. The stock is trading at thirty two times 133 00:07:46,200 --> 00:07:49,240 Speaker 1: our estimate for this year's earnings, and we're looking for 134 00:07:49,720 --> 00:07:52,640 Speaker 1: growth of more than that in revenues next year. What 135 00:07:52,720 --> 00:07:54,480 Speaker 1: that means, in our opinion is that you've got a 136 00:07:54,560 --> 00:07:57,320 Speaker 1: unique combination of growth and value. We like the stock. 137 00:07:57,360 --> 00:07:59,480 Speaker 1: We have a buy opinion or twelve mont target price 138 00:07:59,800 --> 00:08:01,960 Speaker 1: is hundred and fifty dollars. Okay, Peter teal he gets 139 00:08:01,960 --> 00:08:05,040 Speaker 1: to stay on the board now. Of course, he is 140 00:08:05,080 --> 00:08:09,360 Speaker 1: the co founder of PayPal, along with Max Levchen and 141 00:08:09,600 --> 00:08:12,720 Speaker 1: Elon Musk. He serves its first CEO. He was the 142 00:08:12,760 --> 00:08:16,440 Speaker 1: first outside investor in Facebook, with a ten point two 143 00:08:16,440 --> 00:08:20,000 Speaker 1: percent stake, acquired in two thousand four for five thousand dollars. 144 00:08:20,080 --> 00:08:21,760 Speaker 1: Way to go, Peter teal Right. I mean he's a 145 00:08:21,840 --> 00:08:24,960 Speaker 1: very successful investor, he's a billionaire. Uh, he's got this 146 00:08:25,080 --> 00:08:28,720 Speaker 1: controversial secret funding of a lawsuit against Gawker. He's staying 147 00:08:28,720 --> 00:08:31,120 Speaker 1: on the board because he's so close to Mark Zuckerberg. 148 00:08:31,240 --> 00:08:33,480 Speaker 1: What what? Or on the other hand, why was it controversial? 149 00:08:33,480 --> 00:08:36,000 Speaker 1: Why shouldn't he stay on the board. Well, look, I 150 00:08:36,040 --> 00:08:38,160 Speaker 1: mean this is obviously an issue that's not going to 151 00:08:38,280 --> 00:08:40,319 Speaker 1: go away so quickly. I think there are a lot 152 00:08:40,360 --> 00:08:43,959 Speaker 1: of questions to be asked and answered. Get However, I 153 00:08:43,960 --> 00:08:46,120 Speaker 1: think it's fair to say that, Look, Peter Teel, as 154 00:08:46,120 --> 00:08:51,000 Speaker 1: you pointed out, has been a visionary and very successful 155 00:08:51,520 --> 00:08:54,439 Speaker 1: UM investor and operator when it comes to Silicon Valley. 156 00:08:54,440 --> 00:08:59,439 Speaker 1: You mentioned PayPal, um at a very um beneficial exit 157 00:08:59,559 --> 00:09:03,320 Speaker 1: to eBay right after the company came public. Clearly, when 158 00:09:03,320 --> 00:09:06,560 Speaker 1: you're one of the first investors in Facebook, as you referenced, 159 00:09:06,760 --> 00:09:08,800 Speaker 1: I think he was the first outside investor in the 160 00:09:08,840 --> 00:09:11,480 Speaker 1: company UM. I think there are a lot of reasons 161 00:09:11,480 --> 00:09:13,680 Speaker 1: to have future Teal on the board. On the other hand, 162 00:09:14,040 --> 00:09:17,680 Speaker 1: there are obviously questions about this, and I guess we'll 163 00:09:17,679 --> 00:09:20,760 Speaker 1: wait and see what further details come up related to 164 00:09:20,760 --> 00:09:23,400 Speaker 1: this issue. I think the fact remains so that Facebook 165 00:09:23,400 --> 00:09:26,920 Speaker 1: looks at this in the context of Facebook Peter Teel's 166 00:09:27,000 --> 00:09:29,880 Speaker 1: contributions as a board member, and if what he did 167 00:09:30,000 --> 00:09:32,840 Speaker 1: or what he will do will kind of adversely affect 168 00:09:32,920 --> 00:09:35,240 Speaker 1: what he's able to contribute, And I think the answer 169 00:09:35,240 --> 00:09:38,400 Speaker 1: to that question appears to be no. And I think that, Look, 170 00:09:38,440 --> 00:09:42,080 Speaker 1: Facebook's board is very strong, and I think it makes 171 00:09:42,080 --> 00:09:45,920 Speaker 1: sense that it continues as it was. Scott, just quickly, 172 00:09:45,960 --> 00:09:47,840 Speaker 1: if you can tell us they're gonna be three classes 173 00:09:47,880 --> 00:09:50,400 Speaker 1: of stock if you happen to own a Class A 174 00:09:50,640 --> 00:09:53,839 Speaker 1: or Class B shares. What's gonna happen. You're gonna get 175 00:09:53,880 --> 00:09:56,760 Speaker 1: some C shares too. Yeah, I think what's gonna happen 176 00:09:56,840 --> 00:10:00,320 Speaker 1: PIM is somewhat similar to what happened with UM what 177 00:10:00,480 --> 00:10:03,959 Speaker 1: now known as what now is known as Alphabet, where 178 00:10:03,960 --> 00:10:06,840 Speaker 1: you had a situation where you had one class of 179 00:10:06,960 --> 00:10:10,120 Speaker 1: stock and that class will probably continue, and then you're 180 00:10:10,120 --> 00:10:13,880 Speaker 1: gonna have another class of stock that won't have voting shares, 181 00:10:14,320 --> 00:10:18,079 Speaker 1: and essentially you might see the equivalent of an adjustment 182 00:10:18,120 --> 00:10:21,120 Speaker 1: in the existing share price. So the bottom line is, 183 00:10:21,160 --> 00:10:24,479 Speaker 1: the full details are not out on that because obviously 184 00:10:24,520 --> 00:10:27,000 Speaker 1: we see the shareholder approval. I think it has to 185 00:10:27,000 --> 00:10:32,640 Speaker 1: go through some other UM kind of UM minister ministerial issues, 186 00:10:32,960 --> 00:10:34,559 Speaker 1: and so we'll wait and see. But not a big 187 00:10:34,640 --> 00:10:37,520 Speaker 1: change as far as I'm concerned. Scott Kessler, thank you 188 00:10:37,640 --> 00:10:40,240 Speaker 1: very much. He is the deputy head of Equity research 189 00:10:40,320 --> 00:10:45,719 Speaker 1: for SMP Global Market Intelligence. Speaking about Facebook shares, a 190 00:10:45,760 --> 00:10:49,640 Speaker 1: Facebook of fifty five cents right now, thirteen dollars and 191 00:10:49,720 --> 00:10:53,240 Speaker 1: fifty seven cents for Facebook. You're listening to taking stock 192 00:10:53,520 --> 00:11:04,160 Speaker 1: on Blueberg radio. Markets around the world, from stocks to 193 00:11:04,320 --> 00:11:08,000 Speaker 1: bonds to currencies, and commandies bracing for the Brexit vote 194 00:11:08,040 --> 00:11:11,360 Speaker 1: on Thursday. Dougs Yoka from Kovark Capital, we'll talk to 195 00:11:11,440 --> 00:11:13,280 Speaker 1: us about that on Luobrig Radio