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