THE MUELLER REPORT OUT AND NO
COLLUSION FROM ROBERT MUELLER.
APPLE IN THE SPOTLIGHT THIS
MORNING, TECHNOLOGY GIANT
EXPECTED TO UNVEIL NEW STREAMING
SERVICE TODAY, POTENTIALLY A
MAJOR COMPETITOR FOR NETFLIX AND
CABLE PROVIDERS.
APPLE SAYS THAT THE NEW SERVICE
WILL FEATURE ORIGINAL
PROGRAMMING INCLUDE OPTIONS FOR
ADD-ON SUBSCRIPTIONS, THE
COMPANY IS EXPECTED TO CHARGE A
FEE, NO DETAILS ON HOW MUCH THAT
WOULD COST.
JOINING US SOCIAL MEDIA ANALYST
LARRY, LARRY, GOOD TO SEE YOU.
OBVIOUSLY THE BIG NEWS IS
MUELLER PROBE, DOES THAT IMPACT
INVESTING?
YOUR VIEW?
>> I STARTED IN THE BUSINESS THE
DAY AFTER THE NAVY, I LIVED
THROUGH '72, '74, TERRIBLE
PERIOD FOR INVESTORS.
AT THE BOTTOM OF THE MARKET, THE
COMPANY HAD MORE CASH THAN
MARKET VALUE IN THE STOCK.
MARIA: THIS IS THE BIGGEST
SCANDAL OF THE TIME.
>> WE HAVE DODGED A BULLET AND
WE CAN CONCENTRATE ON BUSINESS
AND EARNINGS AND CASH FLOW.
MARIA: APPLE IS IN THE NEWS THIS
MORNING, MOST VALUABLE COMPANY
ONCE AGAIN, MICROSOFT NUMBER 2,
APPLE CLOSED WITH MARKET VALUE
OF $916 BILLION, WHAT DO YOU
THINK RIGHT NOW OF GROWTH STOCKS
THAT YOU HAVE BEEN INVESTING FOR
SO LONG?
>> IF YOU LOOK AT AM, THAT'S THE
STR IN THE LAST MONTH STOCK WENT
UP $80 BILLION, WHAT HAVE THEY
TOLD PEOPLE, THEY WILL SPEND A
BILLION DOLLARS ON CONTENT, NOW,
IF YOU SPEND A BILLION DOLLARS
ON CONTENT IF YOU'RE REALLY GOOD
AND WE DON'T KNOW THAT APPLE IS
REALLY GOOD BECAUSE THEY ARE NEW
AT THE GAME, THE ODDS ARE IN
HOLLYWOOD THEY'RE NOT, MAYBE
EVEN MAKE 20%, SO THAT'LL BE
$200 MILLION OF CASH FLOW AND
THE MARKET HAS ALREADY PAID
$80 BILLION FOR THAT IF YOU
ASSUME THAT THE MOVEMENT IN
STOCK IN THE LAST MONTH IS
ANTICIPATION OF WHAT'S GOING TO
COME OUT THIS AFTERNOON.
THE REAL PROBLEM HERE, MARIA,
WHAT YOU SAID WHEN YOU STARTED,
900 BILLION-DOLLAR COMPANY.
IF YOU'RE GOING TO GROW THE
COMPANY DOUBLE IN 5 YEARS, 15%
RATE, THAT'S ADDING ANOTHER
$900 BILLION IN VALUE.
THE NUMBERS AFTER A WHILE GET
PRETTY PREPOSTEROUS AND SOONER
OR LATER THE MARKET WILL WORRY
ABOUT THAT.
DAGEN: TV SERVICE AND NEWS AND
NOT JUST GOING TO BE THE
ORIGINAL PROGRAMMING BUT APPLE
WILL SPEND BILLION ON BUT ALSO
APP THAT LET'S YOU ESSENTIALLY
WATCH TV INSTANTLY SUBSCRIBED TO
PAY TV CHANNEL, LIKE STAR OR
HBO.
1.4 BILLION DEVICES GLOBALLY,
IPHONES, MACS, NETFLIX IS AN
ISLAND THAT IN EYES OF INVESTORS
COULD DO NO WRONG, I'M A
SUBSCRIBER TO YOUTUBE TV WHICH
IS AWESOME, WHAT DOES THAT DO
ULTIMATELY TO SAY A DIRECT TV,
SO APPLE GETTING INTO THIS, I
WONDER IF PEOPLE START GOING
OVER VALUATIONS ON THESE OTHER
COMPANIES.
>> WELL, YOU KNOW, I THINK -- I
LISTENED TO NINTENDO MANY YEARS
AGO TALK ABOUT THIS AND THE
THING THAT'S IN TIGHT SUPPLY AND
YOU CANNOT INCREASE IN ANY WAY,
SHAPE OR FORM IS TIME AND THE
CONSUMER ONLY HAS SO MUCH TIME
TO LOOK AT STUFF TO BE ON
DEVICES AND THE MORE PEOPLE THAT
GET INTO THE PARTY EVENTUALLY
THE PARTY WILL GET CROWDED AND
RIGHT NOW CRITIC RATES 8 CONTENT
SHOWS, AND SOME OF THESE AREN'T
REALLY VERY GOOD BUT THERE ARE
80 OF THEM, APPLE IS GOING TO
PRODUCE MORE CONTENT, GENERALLY
SPEAKING, WHEN YOU ARE IN AN
INDUSTRY AS AN INVESTOR AND
SUPPLY IS INCREASING, YOU HAVE
TO RUN FOR THE HILLS.
I'VE WATCHED THE FINANCING CYCLE
IN JUNK BONDS AND THE '85, '87
PERIOD, AT ONE POINT THEY RAISED
$8 BILLION FOR AN INDUSTRY THEY
NEVER HEARD OF AND NOT ONE DIME
OF THAT MONEY WENT INTO
INCREASING THE AND AND WENT TO
INCREASING SUPPLY AND WHAT APPLE
IS DOING RIGHT NOW IS SPENDING A
BILLION DOLLARS ON INCREASING
THE SUPPLY OF ENTERTAINMENT.
NETFLIX IS SPENDING $12 BILLION
INCREASING THE SUPPLY OF
ENTERTAINMENT, THERE'S ONLY SO
MUCH ENTERTAINMENT THAT PEOPLE
CAN WATCH BECAUSE TIME IS
LIMITED AND YOU HAVE A LIFE
BESIDES WATCHING CONTENT --
MARIA: REAL QUICK, THE COMPANIES
ARE AT RECORD HIGHS IN TERMS OF
MARKET VALUE, APPLE THE MOST
VALUABLE.
WOULD YOU BUY THE STOCK AT THIS
LEVEL TODAY?
>> I WOULD BUY APPLE BECAUSE THE
MULTIPLE IS ABOUT THIRD OF WHAT
IT IS FOR AMAZON AND A TENTH OF
WHAT IT IS FOR NETFLIX LOOKING
AT TRAILING CASH FLOW.
APPLE IS STILL UNDERVALUED BUT I
THINK FOR THE FIRST TIME THERE'S
A LITTLE BIT OF RISK BECAUSE THE
STOCK MOVED $80 BILLION IN THE
LAST MONTH AND I DON'T THINK
THERE'S ANY WAY IN THE WORLD
THAT WHAT'S GOING TO COME OUT IS
GOING TO MOVE THE NEEDLE FOR