Speaker 1: Broadcasting live to New York, Bloomberg eleven Rio to Washington,
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Speaker 1: This is taking stock. Coming up on taking stock, will
Speaker 1: take stock of Facebook. The stock is up more than
Speaker 1: in the past year, and today it holds its annual
Speaker 1: shareholder meeting. One of the issues class C stock. This
Speaker 1: was well. It was proposed back in April, designed to
Speaker 1: give Facebook currency for acquisitions and not dilute Mark Zuckerberg's
Speaker 1: control of the company. We'll get more details. We'll also
Speaker 1: find out what kind of future Peter Teal has Facebook
Speaker 1: in his in his back pocket or in Mark Zuckerberg's
Speaker 1: All that in a whole lot more coming up when
Speaker 1: we take a look at Facebook now. Charlie Pellets coming up.
Speaker 1: He's gonna business and I thank you, Kathleen, thank you him.
Speaker 1: We're brought to you by Brooks Brothers. Big event there
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Speaker 1: to shop the entire collection or to find the location
Speaker 1: closest to you. Facebook shareholders have re elected all eight
Speaker 1: members of the Social Networks Board, including Peter til the
Speaker 1: investor backing a controversy controversial lawsuit against Hawker. At the
Speaker 1: company's annual shareholders meeting, Investors also approved the creation of
Speaker 1: non voting shares that would allow co founder Mark Zuckerberg
Speaker 1: to sell or give away much of his Facebook stock
Speaker 1: while retaining control of the company. Facebook shares are up
Speaker 1: now by five tenths of one percent, up sixty cents
Speaker 1: to one thirteen sixty two. Equities are advancing s and
Speaker 1: P five hundred, indecks, jumping the most in four weeks
Speaker 1: after the latest polls show Europe show the UK campaign
Speaker 1: to remain in the European Union is gaining ground before
Speaker 1: Thursday's referendum. Investors also looking ahead to the start of
Speaker 1: tomorrow's to day FED testimony. Right now, the SMP up
Speaker 1: sixteen at two thousand and eighty seventy, gain of eight
Speaker 1: tenths of one percent. NAS snack up forty six to
Speaker 1: forty eight forty six, a gain of one percent down.
Speaker 1: Industrials up one hundred seventy two points, a gain of
Speaker 1: one percent. Gold down three thirty ounce to twelve ninety
Speaker 1: want to drop of two tenths of one percent. Crude
Speaker 1: oil West Texas Intermediate of a dollar twenty two a
Speaker 1: barrel forty nine twenty for w t I that is
Speaker 1: a gain of two and a half percent. Tenure down
Speaker 1: sixteen thirty seconds that yield one point six six percent,
Speaker 1: and the three thirty two on Wall Street. Now, let's
Speaker 1: take a look at other news from around the world.
Speaker 1: Thank you, Charlie from the Bloomberg News Room. I'm Jill Schneider.
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Speaker 1: jeep dealer today. A big shake up today in Donald
Speaker 1: Trump's campaign. Corey Lewandowski is out as Trump's campaign manager.
Speaker 1: Lewandowski says he's not sure why he was fired, but
Speaker 1: he understands those killings are on the suspect and on
Speaker 1: the suspect alone. In my mind, all that will be
Speaker 1: investigated by our officers acted heroically and did as they
Speaker 1: were trained in an unbelievable circumstances and did a phenomenal job.
Speaker 1: The FBI today released the transcripts from nine calls between
Speaker 1: the Orlando nightclub shooter and police. Orlando Police Chief John
Speaker 1: Mina says officials are still investigating to determine whether some
Speaker 1: victims were shot by police. Those killings are on the
Speaker 1: suspect and on the suspect alone. In my mind, all
Speaker 1: that will be investigated by our officers acted heroically and
Speaker 1: did as they were trained in an unbelievable circumstances and
Speaker 1: did a phenomenal job. People were killed in the nightclub attack.
Speaker 1: Former US House Speaker Dennis Hastert will report to a
Speaker 1: federal prison in south eastern Minnesota this week. The seventy
Speaker 1: four year old was sentenced to fifteen months behind bars
Speaker 1: in a hush money case. A special naturalization ceremony is
Speaker 1: being held in Central Park tonight in honor of World
Speaker 1: Refugee Day. Twenty people hailing from twelve different countries will
Speaker 1: be sworn in as new Americans. Most of them are
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Speaker 1: I'm Jill Schneider, Charlie, and we thank you it again.
Speaker 1: Recapping stocks high SMP five hundred in decks of sixteen
Speaker 1: now to two thousand eighty seven, a gain of eight
Speaker 1: tenths of one percent. I'm Charlie Pebblett, and that's a
Speaker 1: Bloomberg business flash. You're listening to taking stock with Bill
Speaker 1: Box at Katholeen Hayes on Bloomberg Radio. It is good
Speaker 1: to be king, or at least co founder of Facebook
Speaker 1: Mark Zuckerberg. At the company's annual shareholders meeting today, investor
Speaker 1: approved the creation of non voting shares that allow him
Speaker 1: to sell or give away much of his Facebook stock
Speaker 1: while retaining control of the company. This is key, That's
Speaker 1: why Mark Zuckerberg repos proposed this just a couple of
Speaker 1: months ago. Shareholds also re elected all eight members of
Speaker 1: the Social Networks Board, including Peter Thiel, the investor backing
Speaker 1: a controversial lawsuit against Gawker. Johnny us now is Scott Kessler,
Speaker 1: Deputy head of equity research at SMP Global Market Intelligence
Speaker 1: Here in New York, City, Welcome back, Scott Bank, Kathleen
Speaker 1: so Um not too surprising. I guess that the shareholders
Speaker 1: backed this creation of non voting shares that will help
Speaker 1: Mark Zuckerberg stay at the helm no matter what. A
Speaker 1: vote of confidence in Mark Zuckerberg. Yeah, I mean, I
Speaker 1: think one of the mottos to today's shareholder meeting could
Speaker 1: be you know and Mark, we trust, right. I mean,
Speaker 1: I think when you consider the fact that this company
Speaker 1: came public over four years ago, and they made it
Speaker 1: pretty clear that UM it would be a controlled company,
Speaker 1: which essentially means that Mark Zuckerberg UM was controlling a
Speaker 1: lot that went on at the company, from decision making
Speaker 1: to capital allocation to all in between. And honestly, initially
Speaker 1: there were substantial questions about corporate governance and whether or
Speaker 1: not Mark Zuckerberg, as you may recall, was kind of
Speaker 1: up to the challenge. He was wearing hoodies to UM
Speaker 1: the road show meetings and no showing and other important gatherings,
Speaker 1: at least according to unconfirmed reports. And meanwhile, I think
Speaker 1: it's fair to say that over the last four years
Speaker 1: he's really emerged as one of the pre eminent CEOs
Speaker 1: on the planet. Scott what about investing in Facebook shares
Speaker 1: at thirteen dollars a pop, so PAM. What's interesting about
Speaker 1: Facebook is that stock hasn't done all that well for
Speaker 1: the last couple of weeks. Obviously, it did tremendously well
Speaker 1: last year, and I think here to date it's still outperforming.
Speaker 1: But I think there's been some consolidation over the last
Speaker 1: one call it UM a couple of weeks, I think,
Speaker 1: largely for a couple of reasons. So first, I think
Speaker 1: there were some concerns about this shareholder meeting and what
Speaker 1: could potentially come out of it. The other thing is,
Speaker 1: I think books are increasingly concerned about UM competition. It
Speaker 1: seems like there's a lot of talk about Snapchat and
Speaker 1: whether Snapchat is let's say, taking some users and engagement
Speaker 1: away from if not Facebook, then perhaps definitely Instagram. And
Speaker 1: then I think last it seems like a lot of
Speaker 1: people believe that all the good news is out on
Speaker 1: Facebook and all the investors who could buy are already
Speaker 1: in the shares. We have to uh disagree with those
Speaker 1: notions to a large extent. We think there's a lot
Speaker 1: more upside. The stock is trading at thirty two times
Speaker 1: our estimate for this year's earnings, and we're looking for
Speaker 1: growth of more than that in revenues next year. What
Speaker 1: that means, in our opinion is that you've got a
Speaker 1: unique combination of growth and value. We like the stock.
Speaker 1: We have a buy opinion or twelve mont target price
Speaker 1: is hundred and fifty dollars. Okay, Peter teal he gets
Speaker 1: to stay on the board now. Of course, he is
Speaker 1: the co founder of PayPal, along with Max Levchen and
Speaker 1: Elon Musk. He serves its first CEO. He was the
Speaker 1: first outside investor in Facebook, with a ten point two
Speaker 1: percent stake, acquired in two thousand four for five thousand dollars.
Speaker 1: Way to go, Peter teal Right. I mean he's a
Speaker 1: very successful investor, he's a billionaire. Uh, he's got this
Speaker 1: controversial secret funding of a lawsuit against Gawker. He's staying
Speaker 1: on the board because he's so close to Mark Zuckerberg.
Speaker 1: What what? Or on the other hand, why was it controversial?
Speaker 1: Why shouldn't he stay on the board. Well, look, I
Speaker 1: mean this is obviously an issue that's not going to
Speaker 1: go away so quickly. I think there are a lot
Speaker 1: of questions to be asked and answered. Get However, I
Speaker 1: think it's fair to say that, Look, Peter Teel, as
Speaker 1: you pointed out, has been a visionary and very successful
Speaker 1: UM investor and operator when it comes to Silicon Valley.
Speaker 1: You mentioned PayPal, um at a very um beneficial exit
Speaker 1: to eBay right after the company came public. Clearly, when
Speaker 1: you're one of the first investors in Facebook, as you referenced,
Speaker 1: I think he was the first outside investor in the
Speaker 1: company UM. I think there are a lot of reasons
Speaker 1: to have future Teal on the board. On the other hand,
Speaker 1: there are obviously questions about this, and I guess we'll
Speaker 1: wait and see what further details come up related to
Speaker 1: this issue. I think the fact remains so that Facebook
Speaker 1: looks at this in the context of Facebook Peter Teel's
Speaker 1: contributions as a board member, and if what he did
Speaker 1: or what he will do will kind of adversely affect
Speaker 1: what he's able to contribute, And I think the answer
Speaker 1: to that question appears to be no. And I think that, Look,
Speaker 1: Facebook's board is very strong, and I think it makes
Speaker 1: sense that it continues as it was. Scott, just quickly,
Speaker 1: if you can tell us they're gonna be three classes
Speaker 1: of stock if you happen to own a Class A
Speaker 1: or Class B shares. What's gonna happen. You're gonna get
Speaker 1: some C shares too. Yeah, I think what's gonna happen
Speaker 1: PIM is somewhat similar to what happened with UM what
Speaker 1: now known as what now is known as Alphabet, where
Speaker 1: you had a situation where you had one class of
Speaker 1: stock and that class will probably continue, and then you're
Speaker 1: gonna have another class of stock that won't have voting shares,
Speaker 1: and essentially you might see the equivalent of an adjustment
Speaker 1: in the existing share price. So the bottom line is,
Speaker 1: the full details are not out on that because obviously
Speaker 1: we see the shareholder approval. I think it has to
Speaker 1: go through some other UM kind of UM minister ministerial issues,
Speaker 1: and so we'll wait and see. But not a big
Speaker 1: change as far as I'm concerned. Scott Kessler, thank you
Speaker 1: very much. He is the deputy head of Equity research
Speaker 1: for SMP Global Market Intelligence. Speaking about Facebook shares, a
Speaker 1: Facebook of fifty five cents right now, thirteen dollars and
Speaker 1: fifty seven cents for Facebook. You're listening to taking stock
Speaker 1: on Blueberg radio. Markets around the world, from stocks to
Speaker 1: bonds to currencies, and commandies bracing for the Brexit vote
Speaker 1: on Thursday. Dougs Yoka from Kovark Capital, we'll talk to
Speaker 1: us about that on Luobrig Radio