Transcripts For CNBC Squawk Alley 20151204 : vimarsana.com

CNBC Squawk Alley December 4, 2015

Did dip below 40 per barrel on west texas intermediate, we saw that move happen for some of the big energy names. That is certainly a part of the market to focus on as well. Numont mining is one of the bigger names out there. You look at yamana and some of the other goal miners. Theyre also doing well. The gold miner etf also performing well in todays session. As we watch, were going to focus, guys, kayla, kelly, john, on Interest Rate sectors. Also whats happening with gold prices and gold miners, and those opec headlines and that big oil trade today. Some of the stocks will be a huge focus. You know, apple, one of the big strong guys today. Its not necessarily an nyse related stock that we talk about all that often, but it is still a dow member even though its not perhaps traded here, so thats something to watch. Back to you. Thank you so much, dominik, on the floor of the stock exchange. Technology as a sector has gone positive for the week, and we have a lot of news to get to this morning. Joining us now is jessica lessen, founder and editor in chief at the information and cnbc contributor. Good friday to you. Great to see you, kayla. First up, activist investor starboard renewing its push for yahoo to spin off that alibaba stake instead of pushing the company to sell its core business at what it calls the highest price possible. Wrau hue shares started yesterday morning on that news. Its up today. Jessica, the Board Meeting concludes today. The board still backing ceo marissa meyer. What do you expect the outcome will be . Theres a lot we dont know, but we know that that there are a ton of suitors for yahoos core business. Were not sure there is a lot of interest there. A lot of it is coming from, frankly, the banker whos finally want a deal. I think whether they pause the spin, which we also hear might be possible, and the sale of the core business, i think the important thing to remember is who wants yahoo right now. If they get better then people say there is some growth there. Maybe its worth something. I think momentum could change the ralculus. Youve also got to look at maybe pieces of yahoo looking at different properties. You know, a lot of that has been stripped down, so im not sure how you can do that. The ad tech business is a piece that i think theres a lot of value to unlock it. It could be more attractive to suitors. Weve been down this road, you know, once every two years for the past many years. Who might this be more appealing to . Is it a partnership with aol and verizon at this point . Its a funny idea, kelly, and, you know, if you in my business you dream of all sorts of crazy scenarios. Maybe we will see a Tim Armstrong running yahoo after all. If you go that route. Thats just speculation. Certainly verizon looked at aol for an ad play. You could see maybe them doubling down on that or other wireless carriers. I think thats all Wishful Thinking at this point. There is just so much confusion around this name, jessica. So many leaks from inside the company. You have this idea that they might pause this spinoff. They might go ahead with it. They might sell the core business. They might stick with it. How much do we either need to see a doubling down from marissa meyer, from the board on its current strategy, or the admission that every option is on the table . Its a really tough situation. I think marissa has been trying to double down and that strategy just isnt flying, so i think shareholders, the board, you know, just saying theyre backing her isnt going to be enough this time. Were going to have to see some movement. Something has to change either on the spin or the sale. Well, hopefully well get some news when that Board Meeting concludes today. Yahoo shares up 1. 6 today. Next up, uber is close to closing a new round of funding that would value the company at more than 62 billion. Jessica, you have a new piece at the information this round. Actually looks a lot like an ipo. Certainly the size of the company is bigger than any ipo weve seen recently. What do you know . Were hearing that uber has lossed the first phase of this round north of 60 billion. Valuation. Raising about another 2 billion. Whats interesting is how they went about doing it. Its basically going investor to investor, big management presentation he was surprised to hear that 08 was the upper end on the table this time. 80 billion dollars. I guess it involves tiger and we talked about their support for uber. T. Rowe price as well. We know there have been a lot of traditional Money Managers that are starting to chase these companies, and im wonder about the valuation theyre exposed to here. One important thing to remember that i think sometimes we forget is, again, this is preferred stock. These investors are not going to lose their money. Its really someone was making the argument to me yesterday that this is as safe as you can get in finances. Now, im not sure thats true. But we do want to remember that even if you are putting in at 60 plus, you know, the company has raised maybe 10 billion to 12 billion to date. If you have a liquidity preference, you wont lose your money. That said, these are big numbers. How concerned should the investing community be that uber continues to raise and perhaps need this much money . When you look at dini in china form this alliance with grab taxi, lift, others overseas, they have a massive war chest. You have all this money being spent on controlling the future of transportation on the planet. I mean, thats a lot of money to spend. Who knows when the return is going to come . Travis likes a war chest, and theyre going for it. We know the business is growing quibble. Its more a sign of their ambition, and its that they dont want to be public right now. Another thing we wrote about was the fact that if its going to be the same multiple no matter what, why not stay private . Thats why were seeing them with the huge war chest. As for the dd lift alliance, that came up in some of these private road shows, the uber management has been going on to raise this round, and management brushed it off. They said they looked into it. Maybe investors are betting there could be multiple success stories. Even though they want to stay private, how close are we getting to that 500 shareholder threshold where they would have to go public . Theyre on the road. Theyre meeting tons of investors. Are they getting near that point . Companies like uber have a lot of ways to get around stuff like that, kayla. I mean, i remember you can use all sorts of structures. I mean, at the he wanted of the day it is a rule is a rule. I think the trigger for them is more likely to be some terms in their financing deal, their debt deal with goldman, the terms change if theyre not public at a point thats far into the future, not next year. Possibly the were after that. Thats what im looking as more of a catalyst than anything else. Its fascinating to see uber now valued more than General Motors per market cap. 55 billion. Well be watching this company for sure. Jessica, have a great weekend. Great to see you. Jessica lessin. In the meantime, were following the latest out of San Bernardino where things took a troubling turn this morning. Our jane wells has more. Swran, as we find out about the woman involved in messages shes posted apparently to facebook. Kelly, as you see here, the Inland Regional Center remains lossed almost 48 hours after 14 people were murdered here. Important new information. Nbc news says Law Enforcement source Tashfeen Malik, the woman shooter, posted on facebook her allegiance to the leader of isis and Law Enforcement officials are investigating whether she may have been the radicalizing influence in that relationship. The same time the Washington Post is reporting that malik and her husband syed farook attempted to destroy computers and other digital devices inside their homes apparently in an attempt to cover their tracks. Some were smashed into little pieces. We have also learned who the 14 dead victims are. Eight men. Six women. Most of them farooks coworkers ranging in age from 26 to 60. Mothers, fathers, sons, daughters murdered 45 hours ago, and this gripping account from the first First Responder on scene who said people were so panicked he had a hard time convincing them that rescuers had arrived. Listen. The initial 50 people did not want to come to us. They were fearful, and they were in the back hallway area, and that actually heightened my concern that and my fear that potentially the suspects were in that hallway holding them hostage and waiting for us to enter into the hallway. We had to tell them several times, come to us, come to us, and ultimately they did, and once that first person took the motions forward, it opened the floodgates and everybody wanted to come. Nbc news has learned that investigators believe among the guns, the shooters had attempted to convert one semiautomatic into fully automatic and failed and that maliks gun had been moth modified so it could hold a larger magazine. The New York Times reports that two of the guns were purchased at a gun store that is not far from here two years ago. All of the guns were purchased legally. Two by farook. Two we an unknown other buyer. The big news right now, of course, is this news coming from nbc that federal Law Enforcement sources say the woman, the wife, posted on facebook shortly before this shooting her allegiance to the head of isis and they are now wondering perhaps they have been for some time, if she was a radicalizing influence in this relationship and not coerced. But the coercer perhaps. Back to you. Thank you, swran. Very troubling and important update. Coming up, shares of pure storage up after its first Earnings Report, but still below its original ipo price. The ceo is with us live. Plus, Facebooks Mark Zuckerberg defending the structure of his new venture. What he had to say. And as we go to break, another check on the markets. Rallying right now. The dow is up some 262 points. I believe thats near the highs of the session. More in swromt. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. So wi got a job ews . Ill be programming at ge. Oh i got a job too, at zazzies. friends gasp the app where you put fruit hats on animals . I love that guys, ill be writing code that helps machines communicate. interrupting i just zazzied you. phone vibrates look at it friends giggle i can do dogs, hamsters, guinea pigs. You name it. Im going to transform the way the world works. proudly i programmed that hat. And i can do casaba melons. Ill be helping turbines power cities. I put a turbine on a cat. friends ooh and ahh i can make hospitals run more efficiently. This isnt a competition univision is postponing its ipo. Pure storage, though, was able to forge ahead with its ipo. It opened for trading in october. It priced at 17 a share, and its shares are up about 2 today after beating estimates in its first Earnings Report since going public. With us now from mountain view, california is, pure storage ceo scott dietzen. Thank you for having us. The worry about the Storage Space has been that the large incumbents like imc could begin to tread on your territory, or enterprise customers could begin to invest in more third party storage. Not in their own storage. You Beat Estimates and raised your guidance. Why is that story going to be holding off for now . Well well, had a great quarter. You know, at 131 Million Dollars in revenue, up 167 yearoveryear, thats a half billion dollar run rate and still triple digit growth rates. We also improved operating margin or product margin that was a new record. We feel like the business is kicking on all cylinders. I think the reason is weve got these disruptors right. Flash memory and cloud are fundamentally changing the Storage Industry and the decisions we made six years ago to optimize our solution for those disruptors are paying off. You added 250 customers in this recent quarter. Thats the best performance for that metric in at least a year. What was it before b your pitch to those enterprise customers that made them become pure storage clients . Well, ultimately were chajing whats possible for those customers to accomplish with storage. Our storage can actually change the way their business operates. The perform wrans delivers Business Value that can ultimately pay for itself. We had one customer save tens of millions of dollars in inventory capacity by moving their erp analytics to pure storage. We had another customer save 8 million in server consolidation on a 500 case storage purchase. Its storage that pays for itself across both cutting costs as well as improving the business. Scott, im wondering how the math has changed. Where you are investing in sales force growth, as you are, you are expecting that to pay off over time, but the cloud is a bit of a wrinkle. I mean, there are customers who ordinarily would have baltimore a storage appliance who will instead buy from a cloud provider. How is that changing the ralculus for customers . How are you able to sell into this environment given that . So aws is a Great Success story. Everybody needs to keep in mind this is an 8 billion business operating in a 3 trillion data is and telecom spend. This is a really large market. Part of the reason pure has done so well as our technology is so cloudfriendly, you know, we count six of the top 20 vendors in had the world are using pure storage in their environments. Many of the top Consumer Tech customers are using the technology as well. The likes of linkd in and theyve made big bets on their infrastructure story. This is a growth opportunity. Ultimately low data centers were enabling that to happen. Your stock is still the ipo price. Investors are disciplined more than ever about a companys path to profitability. We improved operating margin dramatically. If you looked at the first three quarters of this year, we were able to grow revenues 70 faster, right . For every dollar in operating expense, we added to the business, we grew revenues by 1. 07. That kind of improvement in the business fundamental health even as were driving triple digit growth is unprecedented. This is a 24 billion market. Weve got the right technology, the right team. Its the right time. We are continuing to invest in growth, but were going to improve the health of the business as we go. And your stock has made quite a comeback this week, scott. Well talk to you soon. Scott dietzen, ceo of pure storage. Thanks. Thank you. Coming up next on this jobs friday, were going to take a look at one sector expected to add over 200,000 jobs itself in the next couple of years. With the dow up 252 points. Well bring you that story when we come back. The dow up 260 points as the u. S. Economy adding jobs at a stronger than expected clip last month. For research forecasted by 2017, another half a Million People will be employed in the space. Up from 400,000 in 2013. Mary thompson is out in westborough, mass has. She has more on this growth area. Hi, mary. Hey there, kelly. Were at wayfair studios. Wayfair is among the many etailers looking to hire more workers. Workers like the photographers and stylists that you see behind me. These people along with programmers all with the aim of trying to keep their website fresh and attractive to potential clients. An etailer of Home Furnishings and decor, wayfair has 500 job openings right now. A job in ecommerce requires more than just a passion for fashion. With technology infusing every aspect of the business from marketing to merchandizing to customer service, the right worker can be hard to find. Thats where north Texas University comes in. Denton, texas, based school offering a degree in eretailing. The programs director says his students learn visual merchandizing, sourcing product development, and most importantly analytics that drives ecommerce. Theres a need for this kind of talent, and weve become a first stop for a lot of companies when theyre looking for interns for their training classes. The program boasts an 82 placement rate either in fulltime jobs or internships like the ones senior Anna Peterson has when she goes to Digital Marketing group when she graduates this spring. I was always very curious about digital and ecommerce and how everything works because, i mean, its not just the future, its pretty much the present right now. Armed with a different set of skills, workers of ecommerce also fetch a different kind of salary than those offered by different brick and mortar retailers. Drishl brick and mortar, the average Hourly Earnings just over 17 an hour. In ecommerce, its more than 31 an hour. Back to you. Thank you, mary. All right. Now, lets bring in simon hobbs as we catch the close of the u. K. And across continental europe. Simon. John, the markets in europe are negative, as you can see. Theyre still reeling from what we got wrerl in the week. Yesterday from the European Central bank, when it failed to live up to the dovishness that many in the market had expected. A huge debate. Many investors question whether they can rely on the dovishness of the ecb moving forward to support the stock market and more importantly to support the bond market. Things will get choppy from here goes the argument. Take a look at where you are for the week then on the stock markets overall, and can you see weve lost 3 as a result of what happened yesterday. The important thing to realize is so much money was flown into europe from around the world. In fact, bank of america flying high on expectations as to what the ecb would do, and now you see the yields which move in the opposite direction. Sharply higher in germany. The move

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