Transcripts For CNBC Squawk Box 20150206 : vimarsana.com

CNBC Squawk Box February 6, 2015

You have average Hourly Earnings rise by. 3 . This could be the 12th straight month of job gains above 200,000 which would be the longest such streak since 1994 and that has people saying the fed is behind the curve and other people say when you look around the world to see whats happening with the strong dollar he they would be crazy to be raising rates but its a source of continued debate the do you is up more than 4 over the last four days nasdaq is up for the year. The index is on track for the best week since december of 2011 and right now the futures ahead of the report are basically unchanged waiting to see what happens with this s p futures off by over a point and nasdaq down by two. People are now saying can you take the january effect and move it to february and is that what happens for the year . Sometimes it gets the end of the year. None of these things work all the time. Gave up on the super bowl. Afc is bad. Here are the other big stories were watching today. German chancellor Angela Merkel and the french president are in moscow and theyre meeting with Vladimir Putin to discuss how to stop the violence in Eastern Ukraine oil prices are also going to be a big focus on the markets at 1 00 eastern. Well get the weekly rig count. Its a measure of how many drilling riggs are actively exploring right now exploring for or in the development of either oil or natural gas in north america. A number of states meanwhile in a totally different story are probing the big anthem data breach. Investigators are looking for possible ties to china but the data wasnt encrypted. Thats my offering to you. It has to be something that we are looking at much more closely. Why wasnt it encrypted . You have to realize if you are going to be the keeper of such Sensitive Data that its your responsibility as a company to step it up. They con acted them immediately. If youre going to hold on to my information, credit card not my responsibility. Approximate youre going to hold on to my Social Security number and tie that together with my employer and history in terms of my health and familys health you have a higher threshold and you should be looked at the same way the banks are in terms of safety. What can the hackers use . What can they get . Theres already hackers offering to buy. They havent seen this on the open market yet but last night on nightly they had someone showing how there are people who are offering to buy this information immediately. And then do stuff with it. Right you can steal their entire identity. We should tell you about a number of stocks on the move this morning. User growth slowed in the Fourth Quarter but the ceo says it is picking up in the Current Quarter. Well have more on twitter in a moment go pro results beating it as well. The shares are dropping. The Company Announcing the chief operating officer is resigning and yelp shares getting slammed. The Consumer Review website signing up viewer subscribers and business customers. Theyre worried about slowing growth in the United States. Among other stock to watch today were still if sort of earnings season and we have pandora shares down sharply this morning. Shares at the online Music Streaming Service falling short hit by weaker than expected advertising revenue. Let me check something because single letter stock symbols. I saw it too. It was a whole category. You have no life. I was so bad. They all guessed wrong. They got verizon. Viacom and they did get pandora. I thought that was stunning that you could get pandora and not get visa. My kids p used to be phillip, petroleum and z which is now zillow used to be woolworth. S used to be sears. Its now sprint. Its so funny when i saw single letter stock symbols as a category i made everybody watch the show for the rest of it. Youre right. We have no shows. We have no lives but we all watch it together. Its a little bit sad. Did you see how hard that stuff was . Yes. Do you know the woman that got most of the answers on it was actually a drama coach. All right. Because the teefers. Teachers week. It is and the questions are easier. They dont want the teachers to look bad. But none of them got the math teachers right. X equals 2. We have no lives. We saw the whole thing. Let me talk about we get up early. Yeah thats our night. Watching alex it has trebec impress himself with how he pronounces french names activism blizzard the thing that bug mess about alex is when they dont get it right hes like no. He has no idea. He couldnt get he couldnt get any of them but hes like no. Its blah blah. Yeah right. Activision blizzard. Blaming the impact of a stronger dollar. They earn about half of their revenue from outside of the u. S. Well talk to the ceo of Buffalo Wild Wings. Revenue better than expected. Comp sales was good. Stocks near a high. Well talk about it. Talk about it costs more for wings. Prices have gone up for wings and labor is more expensive and theyre reaching the saturation point of like 1,000 restaurants and they have to do Something Else and i have an idea. They got some stuff. You need a new theme . Does it have anything to do with mexican food . Am i that predictable. Heres my idea rusty taco they got out of a relationship. If youre watching sports what do you want . Wings and what else . Tacos. Yeah. But nachos. I think you can get already nachos at Buffalo Wild Wings. Oh. Make them better then. Tacos. As we showed you the futures are waiting to see what happens with the jobs report. If you take a look right now well see s p futures down by 1 point. The dow was up another 211 points. S p up another 21 points. Nasdaq up 48. All three turning positive for the year. The dow saw its third biggest gain of the week. Third big gain of the week now up more than 4 for the week. On pace for the best week since december of 2011. Lets look at whats been happening with europe. With all the questions about greece its been an up and down week. The cac is down by. 5 and dax down by. 75 . Things settled down a little bit in asia overnight take a look and yul see the shanghai was down by about 2 . The nikkei was down by. 8 oil prices continued wednesdays steep losses. You saw it up about 4 to just over 50 yesterday. This morning its up another 3 or better to 5214 to wti. If you have been watching whats been happening in the currency markets the dollar this morning well check out the 10 year note first. Yielding 1. 817 . Off the low yields from earlier in the week. If you want a look at whats happening in the currency market the dollar is up against the euro at 114. Dollar is down against the yen at 117. If you have been watching the gold market this week youll see right now gold prices are up just slightly. 1,265 an ounce. Okay were going to talk about twitter they have chicken quesadilla. Thats good. I still think they can expand into other tacotype. I knew you were going to go with mexican food. I love mexican food. Im thinking about it right now. As becky mentioned twitter posting a big beat on the top and bottom line but slowing user growth is still a key concern as you can see right there but they have a lot of excuses for what happened and i tried to understand. Twitter added 4 million monthly net users. And the ceo has been dealing with criticism of his leadership in an interview last night with carl, carl asked him for his reaction to those that want to see him gone. If youre going to be the ceo of a Public Company you better develop a thick skin. Thats the world we live in. Im focused on two things one, making sure that the Leadership Team here, the people working for me and the next level of leadership under them are working well together and pushing the Company Forward and improving our pace and quality of execution and then secondly making sure that im taking the time to look out ahead over the next hill and around the next corner. And here to break down the numbers is dan from Hudson Square research and steven who is editor and chief of back channel at medium. Com so i read it and theres a weird ios 7, ios 8 upgrade that had people losing their twitter accounts and they have to redo them or something and its hard to be a new twitter user if you dont know who you want so theres a way where you can get like 100 people to follow based on what your stated interest is. Maybe that will help. Did both of those things explain why it dropped . Its never a good thing when a company is having issue with user growth to blame the most Successful Tech Company in silicon valley. They blamed apple and apple said there was no glitch. It was the way they incorporated it into twitter. They actually said it was relative to your password so the people that lost their password through the transition never found their way back. They werent users. They werent really committed users to begin with but revenues are up 100 year over year but user growth only 20 so when youre trading at 100 times earnings i want the reclining seats and the champagne. Theyre going to hit this and such a very expensive stock for the user growth. People say its not just about user growth because we have syndication beyond where we are. Its a good business. Theres nothing wrong with twitter but at that valuation and the valuation right after their ipo it assumes it can be as big as facebook. Theyre not going to be they grew users 57 million quarter on quarter. So even if we add back the ios 4 we have 8. Its still only 8 million users and book at this size was growing 50 to 60 million users quarter on quarter and theyre still growing 40 million. And five times as many right now. Its a great business and well run. Steven had the call before earnings with a great article on how their engine was turning on. They need user growth. Advertisers want targeting, yes but first thing they ask is wheres the reach . Who is going to see the add i placed on your network . I also read theyre close with google now so you can find tweets. Wouldnt that answer some of the issues . They had that a few years ago. They have this thing called the fire hose that you because theres so much coming out. Theres billions of tweets right . Theres a huge amount of traffic from the 300 users. They tweet a lot and they wanted to do real time search and got all the data from twitter right away and then they cut it off. They felt that google was more of a rival and they put it into this other company which they eventually bought but now theyre reopening a fire hose because they have a new strategy now they decided to do a slight of hand and redefine everyone that sees a tweet as a twitter user so youre a twitter user even if youre not on twitter is the way theyre saying it now and the syndication theyre moving tweets to flipboard and yahoo japan will be many more places. Google will be one of them so theyre going to say were going to sell to people that arent twitter users and they even bought a mobile advertising platform to help grease that. So half a billion in sales, right . No. How much in revenue . About 1. 4 last year. For the quarter . Yeah. So its going up quickly obviously but if i just do 2 billion as a run rate at 26 billion its at 13 times sales, right . Right. 100 times earnings. Why did we even give them earnings . Is it profitable on a cash basis its profitable. They have 160, 170 million in Stock Options expense. If you back it out sure but for better for worse, a lot of new economy and internet companies, if you add the Stock Options back in theyre losing money. We like to look at the cash basis basis. Its a huge improvement over where they had been but when twitter started as a Public Company theyre around 10 so they have improved its a well run business and that speaks to this notion of having him leave. He thinks hes doing a great job because nothing is really wrong with twitter. Whats wrong with twitter is the expectations they can be a lot bigger. Im looking at earns per share expected over the next several years. 36 cents do you expect the growth in earnings is something they can achieve . There is somewhere close to 0 efficacy of a two year earnings target. With a company like this . A company like this. If we can be somewhere within the ballpark within the next quarter thats pretty phenomenal which is why i think the strategy and where we see the product going where we see User Engagement going, actually no longer report engagement metrics which is usually a bad thing for a company like this. Right. I figured out how to follow a trending story and its just useless stuff. Everybody has an opinion and i dont care about any of what they have to say. Im a heavy user of it. If theres a conversation on twitter its exceptionally hard to read and the founders of twitter started medium a little more bandwidth to read and have a conversation about important topics where twitter is so hyper aprooef yated its so hard to understand once you get there a lot of people love it and depend on it but its so hard when you first get on there thats why theyre giving you a prefab list of people to jump in there. People are as obnoxious as they want because theyre anonymous. They actual lay poll apologized to all of twitter for saying hes done a lousy job at filtering that stuff out. I never met a twitter user i did like. I never met a man i didnt like. Like us . I dont know. Just thick with haters so you think real quickly that it grows in how many years before it grows into a 26 billion company . A lot of thing versus to happen. They have to crack a plan the good thing is its sort of a flip around. When twitter went public they said the users are going to grow. How are you going to make money from this thing . The revenue sides killed it. Theyre saying youre making money but your user growth is terrible. That story is awful interestingly the people in charge of building the rev news sides from the product end are now in charge of all the products at twitter so they think they extend their success in building the ad system into building the main product. Youre not convinced thats the right move . No theyre smart people they have given four or five people a start over the last few years. Its been really high. Thats been another complaint. It is improving but i have to define that by all the metrics improving. So i want a clean beat. I want the reclining seats and champagne. Tweet some of this stuff out. We should mention were both on twitter. Yeah. As far as we know. No were actually looking at it as were going through. Im looking at it. Guys. Thanks. Appreciate it. Its just the internet. Yeah. But are people really like this . Only when youre anonymous. When we come back this morning why iphone lovers in china are skipping the apple store. Excuse me. Eunice takes us inside the black market right after this. First heres a look back at this date in history. I love my shows, but i cant just sit around all day. Thats why i have xfinity. Their cloud based dvr lets me take everything i recorded, anywhere i go. Which is perfect for me, [whispering] because i have responsibilities. I mean thats really interesting, then how do you explain these photos . [people gasping] objection your honor. Sustained. With the x1 dvr library you could take anywhere, xfinity is perfect for people on the go. It receives the highest marks in serving, dining and location by readers. Welcome back everybody. You may have noticed that joe and i are wearing red today. Theres a reason for that. Today is National Wear red day across the country. The American Heart Association is trying to raise awareness of womens Heart Disease. Women are more likely than men to get Heart Disease and stroke. But theres good news in this. Increased awareness and life style changes can help prevent 80 of cardiac events. Not everybody realizes that because i dont know for whatever reason or not even worse. The symptoms can be different for women in how a heart attack manifests its too. Its all about awareness and knowing what to expect. People ask us to wear something well wear it. I need suggestions anyway. In other health use were following the measles out break. Five babies in a chicago suburb have now been diagnosed all at the same daycare center. The news about the babies raises the issue of infants are too young to get the vaccinations. 4 million kids in the u. S. Arent old enough to receive the protection and if exposed 9 in 10 of the babies will get sick. Its highly contagious. Theres a potential expected case in new jersey as well which would add that to the number of states. How many are there now . I want to to say 17. I could be wrong. 17. But it is widespread at this point. Well lets switch gears right now to technology. When you want to buy an iphone in china you can head to the apple store but thats not the only way to get your hands on one. More on the business of smuggling iphones into beijing. Along the border with hong kong, iphones are smuggled into Mainland China in suitcases, boxes and bags by people paid as little as 42. Iphone mules walk right through customs. Each were carrying the phones in parts. A bag of chargers for one and earphones on another to avoid getting caught by the authorities. The goods are handed off in a dark alley where others reassemble and package the phones for sales. China is the biggest market outside of the United States. You can buy them in the official stores and you can come to a place like this, a Major Electronics market. Outside iphones are sold at authorized resellers but inside theres a healthy market trade. Some are new. Many refurbished. Which are which can be hard to tell. Most of the new phones are smuggled from hong kong though some u. S. Models can be found. New ones here cost 150 less than at the official store where the most popular model, the 64 gig iphone 6 runs 1,000. Quite bargain for the phone that sets the average Migrant Worker back two to three months pay. Shares of apple up about 8 but this idea of a grey market or black market is a huge concern to any of the companies doing business in china. When we come back this morning, a very disturbing story about whe

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