Transcripts For CNBC Squawk On The Street 20131106 : vimarsa

Blowout number out of manufacturing out of germany this morning. Twitter set to price tonight, begin trading tomorrow. Right behind us here at post nine. Tesla shares, theyre skidding today after vehicles delivered missed expectations. Earnings and revenues did come in ahead of consensus. Abercrombie and finch posting a seventh consecutive quarterly drop in guidance. Our guest says he knows who the next microsoft ceo will be. And twitter will expect it sell 70 million shares between 23 and 25 each. Tune in tomorrow for our special coverage of the wall street debut on twitter. It is above the fold today for usa today, retailers talking about going from 45 to 48. May i just say their coverage has been exemplary. Every article they have yesterday was terrific, today was terrific. You have to read usa today. Heres what worries me. A few weeks ago i sat here and i said this could be 20 billion. At that point it was 10, 12. People said youre crazy. When i went from being the high man to the low man in two weeks, this is worrisome. The guy who has done the best work was quite critical. Ron pack of sun trust, said he has an ultimate 50 target. I ridiculed him. But now his 50 target could be reached or at least almost vested the first day and that worries me. Its dick costolo under an umbrella with the headline the twitter jitters. Its getting quite expensive, true . Yes. I went over zillow, yelp, pandora, all of the social and mobile ipos. Every day, every one of these the opening price was a suckers play and over a year it was cut in half and you could get in at a much lower price. Ultimately, yes, they all realized their price. You may say i dont mind getting the deal and averaging down. If i got shares of the stock when i used to be a hedge fund operato operator, i would flip it. I was talking to some of those hedge fund operators, you say im going to call in my favors get as much of an allocation as i can but ive also heard a few more nervous tone from some, even for going in as much as they are. It may have gotten so frothy that theres a bit of concern. That it may not live up to the billing. Lets see. The trajectory, you know because youve done more work than anybody, the trajectory is clearly positive. At the same time, everything has to go right. When everything has to go right, it tends to be more difficult. We know there are some good articles today about how goldman has the real skinny. You know what, the people who are buying it at the opening, they may just be this thing, my kids like it, i use it, its not always that simple to like and use and buy. As you know from when facebook opened at x, goes 32, next thing you know, its at 17. They increased the price, increased the float they did everything to mess it up. Essentially learned about mobile after going public. Almost no mobile. Then nasdaq did a huge favor by completely botching the open. Thats not going to happen here. Goldman is not going to screw this up, the nyse is not. Listen to you, mr. Guarantee. Right, i know. Well see if im right. My expectation would be youre not going to screw it up. Anthony is the finest niyse analyst. I can tell you how long hes been around. Hes come up with us. He was the cfo of the greatest brand of the world, cfo of the nfl. There will be no personal foul. In that is a cautionary tale, though, the journal today talking about the gap between various analysts and the information they have. Not every cellside report is going to be created equal. I hope yesterday there were more tweets than the day before because we know there were not any more facebook more profitable facebooks. If you go back to those days, literally the days since the road show began at facebook before it came out, the acceleration to mobile was extraordinary pip saw it at the little street. We would come in, it would be it was it was 22 mobile yesterday, its 325 , it was aberration, and then 27 . No one knew the smartphone cell phone revolution. And they seem to recognize the value. They can make money. Lets go on to a company we rarely talk about here, tesla. Huh . That was a joke. Deliveries for the period did come in below some analyst forecasts. They see profits to be about consistent with the Third Quarter and that would be below the estimates that are out there for that quarter. Thats so interesting. I mean, it seems to be in some way that theyre not going to make as many cars as they could because they got production constraints when it comes to the batteries. Not their fault. Youd have to blame everyone. Can you blame verizon . Yes because of the web site. They are part of the problem. Thats a facetious thing. On twitter it will be that cramer is an idiot. The quote of the night, production constrained not demand constrained. I heard the rumor you were thinking 5,500 cars. There are in elon musk speak, that means 6,500 cars. This is called the whisper. When you Start Talking about you mention china, you want to hear that someone bought a thousand chinese cars and just giving them out to the communist party. Didnt hear that either. He only guided to 5,000. It came in at 5,500. You got to do more than that. The importance of sandbagging is you got to sandbag me. When you say 5,000, what does that really mean, david . 7,000. Thank you the prosecution rests. Of course he had already talked about the multiple being something that not even they have the right to deserve. The 52week low on this stock is 29. 93, right . Thats going to get lost in some of the headlines today. You have to divide by ten. Had is 15 stock. I want to caution people, the analysts, theyre not backing away. Jeffreys, it was a quarter of remarkable progress. Now youre going to Start Talking about 20 billion. The dream is there. The dream the dream remains. The dream remains. Keep hope alive. Hes talking about creating a battery factory of his own somewhere. He may do that. Billions of cells. Like hamburgers. Billions and billions sold. Its a cold stock, a few weeks from now they could look back and they might be able to ratchet production, the battery product can be sold. And some new analyst would come out and use a 300 price product. You cant disappoint when youre trading at that level. This is like bezos saying you know what, look, we were going to move we didnt sell as many up front, instead of millions and millions of prime. Remember that on the call . Or it might be like netflix saying orange is the new black. No glitches, no glitches. Tesla had some glitches. Speaking of glitches, abercrombie and fitch is down, the second consecutive Quarterly Sales decline, cease now double digit drop with holiday sales in the way. Stacy said it makes ron johnson look good. I love stacy. Thats quite a benchmark. Ron johnson may have been the single worst executive weve seen in retail. Even to put jefferies in that camp is extraordinary. These analysts are ever hopeful. Wait till the analyst day. Whats he going to say on analyst day, that he sold a couple more hoodies . Maybe the ripped body campaign, maybe they need to go into a little more geriatric thing. This is not working. This company is just the poster boy for not selling. Gap stores is not selling apparel either. They ought to open a michael kors store because when you go over that michael kors, do you know how many times when my late mom, when she was wanting to talk about whos with it, she talked about the term jet set, jackie o. Was jet set. They need to merge kors and a f . Do you take aerpostale out to the wood shed today . You have ever been to those stores . No. Its amazing, they ought to merge. They all have green flip flops. David, you may want to focus over here. Im focused. Were on tv. Is that what were doing now . When you go to shopping with your daughter, like i like to do, shes like, dad, hollister is horrible and a week later shes like hollister is fabulous. The fickle nature of teens is extraordinary. Which means what, a f can come back quickly . Probably can. Maybe the toplevel guy ought to go. Maybe this is time for him to spend a little more time, familyoriented, maybe he should be more familyoriented. William weldon became more familyoriented and that helped. The ris per dal 2. 2 billion fine, that was staggering. That was staggering. We didnt cover that very it kind of came and went. When you say you didnt do anything but were going to pay 2 billion, i mean, now youre starting to get into this whole new world, like nobody did anything but were still going to pay 2 billion because we did nothing, were totally innocent. Nothing says im innocent like 2 billion. That is the true sign of innocent because they did not pay 10 billion. How much is jamie dimon going to pay to prove his innocence . Jims on fire today. I like that a lot. Because of twitter. When we come back, wreck sherlund has an action plan for whoever becomes microsofts next ceo. Hell tell us who he thinks will take the top job. And well talk to an investor in the company who helped create the retweet. The open just about 15, 16 minutes away. Dont go away. [ female announcer ] its time for the annual shareholders meeting. Therell be the usual presentations on research. And development. Some new members of the team will be introduced. The chairman emeritus will distribute his usual wisdom. And you . Well, youre the chief life officer. You just need the right professional to help you take charge. Next ceo could be over soon. Our next guest says ford motors chief executive al mulally will likely be named ceo of microsoft by december. Rick just raised his price target on microsoft from 35 to 40. Ford stock acts like he is going. Ive seen a lot of denials from mulally. I think its gone on long enough. A nondenial denial is not good enough for me. I think hes microsofts top pick and likely hell be the next ceo of microsoft probably in the next month or so. Thats the missing piece of why this stock went from 17 to under 17 in the last quarter. I think youre right. Youre saying estimates which are now pretty low could be as much as dramatically higher if they get rid of bing and xbox. How come they could never make money with xbox . Theres three things weve outlined. First of all, the Company Needs focus. Theyre doing way too many things. In the consumer space, theyre not making money at xbox, not making money at bing. If you get rid of both, you could enhance earnings 10 to 15 , 30 to 40 cents on base of 2. 70. The other thing you could do if you brought in mulally, instead of growing operating costs 5 next year, cut them 10 , its going to add 50 cents to earnings. If you bought back just 10 of the stock, that would cost you about 30 million. Youve got 62 net of any incremental tax youd have to pay for repatriation and that would enhance earnings 30 cents as well. Not that they would do all of these things but i can get earnings from 270 to 380 just from those three simple things and those are pretty easy to accomplish. You think those are things, rick, mulally will actually do . Im not completely convinced its going to be him. If it is, why is the bored embracing someone who doesnt have the Technology Background . Were arguing as bill gates is aware of that, hed like to complement mulally or mcnerney from boeing or green from alcoa. I dont think any of the inturn candidates are seriously in the running. I think its these three individuals. I think mulally would be complemented by someone like bill moritz. To what degree do you think mulally, if he is the guy, makes some strange, starts splitting a apart some units . If he comes in and says what are we doing to bing . Thats a no brainer. Xbox, they lose about 2 billion a year in xbox. It is no strategic value. They thought they wanted to control a living room ten years ago against sony. Well, guess what, smartphones and tablets came along. Thats what controls the internet now. Could you buy back 10 of the stock as well, but i think ballmer doesnt want to stay around after say mulally or whoever comes in, its going to be a pretty painful process to be second guessed constantly by the changes they make. He owns 4 of the stock. I wouldnt be surprised to see microsoft take the 12 billion in Borrowing Capacity and take him out of the stock. That would enhance earnings 12 cents reducing the share count 4 percentage points. The harder thing to accomplish is what direction do you go to fix the business . We outlined a number of things we thought the company could do in at that regard as well. Never let it be said rick doesnt have a clear point of view. I remember we brought in microsoft and goldman, me and rick and ballmer was with me at the crimson at harvard. Rick, you were talking about blowing the company up. You cant please dont talk about mcnerney. These are the reasons why ford is moving and boeing is moving. I hope youre wrong. I hoep youll be right. Cramers mad dash is next. Futures looking okay here. Take it easy, take it easy dont let the sound of your own wheels drive you crazy clients are always learning more to make their money do more. ann to help me plan my next move, i take scottrades free, inbranch seminars. Plus, their live webinars. I use daily market commentary to improve my strategy. And my local scottrade Office Guides my learning every step of the way. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. Were were talking about money, money, were talking about money, money were talking about money, money five and a half minutes to the opening bell. We have a little bit of energy here. We have barracuda. Mad dash time. Lets talk ralph lauren. David, it was the best of times, it was the worst of times rockefeller lawyalph l blowout number. Masterful. People like to buy expensive things. What about apparel . I thought apparel is terrible . This isnt apparel. This is about feeling and looking rich. Theres two classes of people, theres the gatsbys and everybody else. This is the gatsbys and its working. The fcorp is not necessarily for the gatsby crowd. No. But theyve got some expensive brands. Tommy hilfiger is selling well in youre. You know what the story is in europe by manny tyirico . They feel these things are built to last. Ralph lauren could be back. A lot of shorts in ralph lawyer i dont know betting they would stumble. They didnt stumble this time. Not that big a float this time between him and braun . Yeah. We have a big ipo. It not tw its not twitter, though. Stay with us. [ male announcer ] what if a Small Company became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. Live from the Financial Capital of the world, a shot of post eight where barracuda will start trading in a few moments. A couple new issues taking place today. You have thoughts on cuda . Theres a lot of Software Cloud security companies. Im starting to get a little nervous. I once caught a 55inch cuda off the coast of mexico. I knew there was a fishing story in there somewhere. Lets look at the s p, were coming off a down day yesterday. Here are the big boards celebrating its big day, barracuda, Cloud Security and storage systems. And on the nasdaq, premiere, a Health Care Technology company ringing the bell remotely from charlotte, north carolina. Very nice. Are you saving time warner, david . Im not. We can talk about it. Looks like its going to be down slightly. Revenues were flat but they did seem to do a good job contains cost. They had a favorable tax rate from the quarter from what i understand. But not a bad quarter from time warner. Its 62 billion market cap for this company. Its Cable Networks and a film studio soon to spin off time inc. , which we forget about. And that will be interesting and challenging. Weve said this before but were going to have a number of pure play old Media Companies, i hate to say it, but in news corp already, in time and youve also got one coming from tribune. Theyre also doing a split, if i recall. Broadcast guy, cable guy saying what are these publishing assets doing on my books . Although news corp was at an alltime high the other day. If you believe theyre going to figure it out digitally, these companies, it would be interesting. That stock is flat right now the quarter was a decent quarter. Perhaps some people not that happy about the revenue number but but the buyback. But they had strong margins, strong cost containment. These companies, whether it be aol, time warner, viacom, they are addicted to buybacks. Addicted. Its a key part of why the stocks have been so strong, as you point out. They generate a lot of free cash flow, they buy back a lot of stock. By the way, direct tv, also you can put into that camp will be speaking to the ceo of directv in the next hour of squawk on the street. Content throws off a huge amount of cash. Did you see tnt . He says i can run Shawshank Redemption and the fugitive and people will watch it every time. Its physically impossible to turn off the fugitive. I dont care, get busy living, not busy dying. The likes of papa johns, open table open table, blow away. All these new restaurants signing up, just when you thought that open table couldnt do anymore, 23 increase in restaurant base. I may have to list my restaurant with open table. They beat by 8 cents, at 50 cents, sees the Current Quarter at 53, street at 52. Papa john, they raise their forecast, go to a 2 1 split. Its been in a headtohead battle with dominos. Pat doyle says theres room for everybody because its taking out the mom and pops. A lot of people thought google will come again, a lot of people thought yelp had open table in its sites. This Company Holy Grail because it fills the seats. You want open table at your restaurant. And a good mobile app. Youd expect a big number it have. Open table is the way people book restaurants in this country, except for those of us who go in and wait in line. You do that . At olive garden. You wait in line at olive garden . Ive never been able to cut the line at olive garden. How about chipotle . You cant cut the line at chipotle. The seats where can you get the shake shack delivered to you, they cost about 12. Just wait a few weeks and they cost 12. The funniest line coming out is i love him as a colleague, may he never root for the teams that i like. Thats a good one. Zillow is up. This guy is all in. His tweet right before the Conference Call started was lets get this Third Quarter<\/a> and that would be below the estimates that are out there for that quarter. Thats so interesting. I mean, it seems to be in some way that theyre not going to make as many cars as they could because they got production constraints when it comes to the batteries. Not their fault. Youd have to blame everyone. Can you blame verizon . Yes because of the web site. They are part of the problem. Thats a facetious thing. On twitter it will be that cramer is an idiot. The quote of the night, production constrained not demand constrained. I heard the rumor you were thinking 5,500 cars. There are in elon musk speak, that means 6,500 cars. This is called the whisper. When you Start Talking<\/a> about you mention china, you want to hear that someone bought a thousand chinese cars and just giving them out to the communist party. Didnt hear that either. He only guided to 5,000. It came in at 5,500. You got to do more than that. The importance of sandbagging is you got to sandbag me. When you say 5,000, what does that really mean, david . 7,000. Thank you the prosecution rests. Of course he had already talked about the multiple being something that not even they have the right to deserve. The 52week low on this stock is 29. 93, right . Thats going to get lost in some of the headlines today. You have to divide by ten. Had is 15 stock. I want to caution people, the analysts, theyre not backing away. Jeffreys, it was a quarter of remarkable progress. Now youre going to Start Talking<\/a> about 20 billion. The dream is there. The dream the dream remains. The dream remains. Keep hope alive. Hes talking about creating a battery factory of his own somewhere. He may do that. Billions of cells. Like hamburgers. Billions and billions sold. Its a cold stock, a few weeks from now they could look back and they might be able to ratchet production, the battery product can be sold. And some new analyst would come out and use a 300 price product. You cant disappoint when youre trading at that level. This is like bezos saying you know what, look, we were going to move we didnt sell as many up front, instead of millions and millions of prime. Remember that on the call . Or it might be like netflix saying orange is the new black. No glitches, no glitches. Tesla had some glitches. Speaking of glitches, abercrombie and fitch is down, the second consecutive Quarterly Sales<\/a> decline, cease now double digit drop with holiday sales in the way. Stacy said it makes ron johnson look good. I love stacy. Thats quite a benchmark. Ron johnson may have been the single worst executive weve seen in retail. Even to put jefferies in that camp is extraordinary. These analysts are ever hopeful. Wait till the analyst day. Whats he going to say on analyst day, that he sold a couple more hoodies . Maybe the ripped body campaign, maybe they need to go into a little more geriatric thing. This is not working. This company is just the poster boy for not selling. Gap stores is not selling apparel either. They ought to open a michael kors store because when you go over that michael kors, do you know how many times when my late mom, when she was wanting to talk about whos with it, she talked about the term jet set, jackie o. Was jet set. They need to merge kors and a f . Do you take aerpostale out to the wood shed today . You have ever been to those stores . No. Its amazing, they ought to merge. They all have green flip flops. David, you may want to focus over here. Im focused. Were on tv. Is that what were doing now . When you go to shopping with your daughter, like i like to do, shes like, dad, hollister is horrible and a week later shes like hollister is fabulous. The fickle nature of teens is extraordinary. Which means what, a f can come back quickly . Probably can. Maybe the toplevel guy ought to go. Maybe this is time for him to spend a little more time, familyoriented, maybe he should be more familyoriented. William weldon became more familyoriented and that helped. The ris per dal 2. 2 billion fine, that was staggering. That was staggering. We didnt cover that very it kind of came and went. When you say you didnt do anything but were going to pay 2 billion, i mean, now youre starting to get into this whole new world, like nobody did anything but were still going to pay 2 billion because we did nothing, were totally innocent. Nothing says im innocent like 2 billion. That is the true sign of innocent because they did not pay 10 billion. How much is jamie dimon going to pay to prove his innocence . Jims on fire today. I like that a lot. Because of twitter. When we come back, wreck sherlund has an action plan for whoever becomes microsofts next ceo. Hell tell us who he thinks will take the top job. And well talk to an investor in the company who helped create the retweet. The open just about 15, 16 minutes away. Dont go away. [ female announcer ] its time for the annual shareholders meeting. Therell be the usual presentations on research. And development. Some new members of the team will be introduced. The chairman emeritus will distribute his usual wisdom. And you . Well, youre the chief life officer. You just need the right professional to help you take charge. Next ceo could be over soon. Our next guest says ford motors chief executive al mulally will likely be named ceo of microsoft by december. Rick just raised his price target on microsoft from 35 to 40. Ford stock acts like he is going. Ive seen a lot of denials from mulally. I think its gone on long enough. A nondenial denial is not good enough for me. I think hes microsofts top pick and likely hell be the next ceo of microsoft probably in the next month or so. Thats the missing piece of why this stock went from 17 to under 17 in the last quarter. I think youre right. Youre saying estimates which are now pretty low could be as much as dramatically higher if they get rid of bing and xbox. How come they could never make money with xbox . Theres three things weve outlined. First of all, the Company Needs<\/a> focus. Theyre doing way too many things. In the consumer space, theyre not making money at xbox, not making money at bing. If you get rid of both, you could enhance earnings 10 to 15 , 30 to 40 cents on base of 2. 70. The other thing you could do if you brought in mulally, instead of growing operating costs 5 next year, cut them 10 , its going to add 50 cents to earnings. If you bought back just 10 of the stock, that would cost you about 30 million. Youve got 62 net of any incremental tax youd have to pay for repatriation and that would enhance earnings 30 cents as well. Not that they would do all of these things but i can get earnings from 270 to 380 just from those three simple things and those are pretty easy to accomplish. You think those are things, rick, mulally will actually do . Im not completely convinced its going to be him. If it is, why is the bored embracing someone who doesnt have the Technology Background<\/a> . Were arguing as bill gates is aware of that, hed like to complement mulally or mcnerney from boeing or green from alcoa. I dont think any of the inturn candidates are seriously in the running. I think its these three individuals. I think mulally would be complemented by someone like bill moritz. To what degree do you think mulally, if he is the guy, makes some strange, starts splitting a apart some units . If he comes in and says what are we doing to bing . Thats a no brainer. Xbox, they lose about 2 billion a year in xbox. It is no strategic value. They thought they wanted to control a living room ten years ago against sony. Well, guess what, smartphones and tablets came along. Thats what controls the internet now. Could you buy back 10 of the stock as well, but i think ballmer doesnt want to stay around after say mulally or whoever comes in, its going to be a pretty painful process to be second guessed constantly by the changes they make. He owns 4 of the stock. I wouldnt be surprised to see microsoft take the 12 billion in Borrowing Capacity<\/a> and take him out of the stock. That would enhance earnings 12 cents reducing the share count 4 percentage points. The harder thing to accomplish is what direction do you go to fix the business . We outlined a number of things we thought the company could do in at that regard as well. Never let it be said rick doesnt have a clear point of view. I remember we brought in microsoft and goldman, me and rick and ballmer was with me at the crimson at harvard. Rick, you were talking about blowing the company up. You cant please dont talk about mcnerney. These are the reasons why ford is moving and boeing is moving. I hope youre wrong. I hoep youll be right. Cramers mad dash is next. Futures looking okay here. Take it easy, take it easy dont let the sound of your own wheels drive you crazy clients are always learning more to make their money do more. ann to help me plan my next move, i take scottrades free, inbranch seminars. Plus, their live webinars. I use daily market commentary to improve my strategy. And my local scottrade Office Guides<\/a> my learning every step of the way. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer ranked highest in Investor Satisfaction<\/a> with selfdirected services by j. D. Power and associates. Were were talking about money, money, were talking about money, money were talking about money, money five and a half minutes to the opening bell. We have a little bit of energy here. We have barracuda. Mad dash time. Lets talk ralph lauren. David, it was the best of times, it was the worst of times rockefeller lawyalph l blowout number. Masterful. People like to buy expensive things. What about apparel . I thought apparel is terrible . This isnt apparel. This is about feeling and looking rich. Theres two classes of people, theres the gatsbys and everybody else. This is the gatsbys and its working. The fcorp is not necessarily for the gatsby crowd. No. But theyve got some expensive brands. Tommy hilfiger is selling well in youre. You know what the story is in europe by manny tyirico . They feel these things are built to last. Ralph lauren could be back. A lot of shorts in ralph lawyer i dont know betting they would stumble. They didnt stumble this time. Not that big a float this time between him and braun . Yeah. We have a big ipo. It not tw its not twitter, though. Stay with us. [ male announcer ] what if a Small Company<\/a> became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool<\/a> on thinkorswim. From td ameritrade. Live from the Financial Capital<\/a> of the world, a shot of post eight where barracuda will start trading in a few moments. A couple new issues taking place today. You have thoughts on cuda . Theres a lot of Software Cloud<\/a> security companies. Im starting to get a little nervous. I once caught a 55inch cuda off the coast of mexico. I knew there was a fishing story in there somewhere. Lets look at the s p, were coming off a down day yesterday. Here are the big boards celebrating its big day, barracuda, Cloud Security<\/a> and storage systems. And on the nasdaq, premiere, a Health Care Technology<\/a> company ringing the bell remotely from charlotte, north carolina. Very nice. Are you saving time warner, david . Im not. We can talk about it. Looks like its going to be down slightly. Revenues were flat but they did seem to do a good job contains cost. They had a favorable tax rate from the quarter from what i understand. But not a bad quarter from time warner. Its 62 billion market cap for this company. Its Cable Networks<\/a> and a film studio soon to spin off time inc. , which we forget about. And that will be interesting and challenging. Weve said this before but were going to have a number of pure play old Media Companies<\/a>, i hate to say it, but in news corp already, in time and youve also got one coming from tribune. Theyre also doing a split, if i recall. Broadcast guy, cable guy saying what are these publishing assets doing on my books . Although news corp was at an alltime high the other day. If you believe theyre going to figure it out digitally, these companies, it would be interesting. That stock is flat right now the quarter was a decent quarter. Perhaps some people not that happy about the revenue number but but the buyback. But they had strong margins, strong cost containment. These companies, whether it be aol, time warner, viacom, they are addicted to buybacks. Addicted. Its a key part of why the stocks have been so strong, as you point out. They generate a lot of free cash flow, they buy back a lot of stock. By the way, direct tv, also you can put into that camp will be speaking to the ceo of directv in the next hour of squawk on the street. Content throws off a huge amount of cash. Did you see tnt . He says i can run Shawshank Redemption<\/a> and the fugitive and people will watch it every time. Its physically impossible to turn off the fugitive. I dont care, get busy living, not busy dying. The likes of papa johns, open table open table, blow away. All these new restaurants signing up, just when you thought that open table couldnt do anymore, 23 increase in restaurant base. I may have to list my restaurant with open table. They beat by 8 cents, at 50 cents, sees the Current Quarter<\/a> at 53, street at 52. Papa john, they raise their forecast, go to a 2 1 split. Its been in a headtohead battle with dominos. Pat doyle says theres room for everybody because its taking out the mom and pops. A lot of people thought google will come again, a lot of people thought yelp had open table in its sites. This Company Holy Grail<\/a> because it fills the seats. You want open table at your restaurant. And a good mobile app. Youd expect a big number it have. Open table is the way people book restaurants in this country, except for those of us who go in and wait in line. You do that . At olive garden. You wait in line at olive garden . Ive never been able to cut the line at olive garden. How about chipotle . You cant cut the line at chipotle. The seats where can you get the shake shack delivered to you, they cost about 12. Just wait a few weeks and they cost 12. The funniest line coming out is i love him as a colleague, may he never root for the teams that i like. Thats a good one. Zillow is up. This guy is all in. His tweet right before the Conference Call<\/a> started was lets get this Party Started<\/a>. This is the new ceo, right . Whether its playing harp for barracuda or taking a red icon fre red eye Conference Call<\/a>. He said the president loves zill zillow. Its real estate porn but he said thats not the reason that its doing well. He said its the return on investment. I said zillow is taking over the worth. Levels somewhere around august, 158. 50, does any of that matter given the things youve said about cult stocks in general . The next stock hell finish the battery solve the battery problem in the next quarter and put all the shorts to shame. But you got to be perfect. I would have signaled if i were him that there were some battery problems. I just would have. I would have said, hey, listen, were having some battery problems. Thats why we cant meet demand. It would have helped to know that ahead of time. Stock is up 370 this year, not too bad. Its even better than best buy, which we always like to take a look at. Best buy . Not that they sell teslas there. Richard schultz keeps selling stock. Why wouldnt you . He tried to buy the company in retro expect. Did you see call of duty . I saw ati this morning. It was a billion plus in retail plus. Is there a dalai lama of grand theft auto . Is there one of these that is more of a Nonviolent Peace<\/a> in our time kind of thing . I dont know. Have you seen the size of guns in that thing . I dont know. The guns are amazing. Incredible guns. We dont have video games. Good. Stay that way. Were going to try. Brought the conversation to a complete halt, didnt it . I meant the guns. Never mind. Lets move on. Lets move on very quickly. Lets check in with pisani with the dow up 60. Busy floor today, bob. I am surrounded by ipos. Thats the good news. The bad news is twitter is sucking the air out of the ipo room. Thats sure the way it looks to me standing here. We got 4 billion in ipos this week, the busiest week since 2006. Some priced at the low end, one below. One didnt price right. Theres three or four magic words, social media, biotechnical cloud and internet security. Behind me im waiting for barracuda. Its internet security, one of those magic spaces yet priced at the low end of the range. Right now indications are higher than that at 20 to 2. Low end was a little bit of a surprise. Maybe people are getting tired of security, ipo spaces. They do have let me show you avianca, 17 to 20 price talk opening at 14. Some of the ipos didnt even happen yet, mavinir systems. They were supposed to price last night, they never made it. They dont say why. Even some of the yield plays arent doing so well. Its hard to see that out there, logistic partners, they own crude oil. This is one of the big yields, 7 3 4 . Arc just opened at 19 and its trading at 19. 01. Karyopharm therapeutic, a week that would have priced above the price talk. Thats all right but not particularly great. We have wix. Com over at the nasdaq. Everyone is asking me why did they do that, stuff all of these stocks 16 of them in a week with the biggest ipo of the your with twitter. Why have such a crowded market in one week . Obviously not the companies. I say your friendly ipo underwrating. Youve got to make hey when the sun shines. You get the ino business is a follower. It is not a leader. The markets at new high, pushing through as much as they possibly can. If you want a little more cynical comment ive heard a number of times from trading desks, the underwriters are making it clear to people you dont like all of this stuff and it if you dont take it, perhaps your twitter allocation might get caught. A little cynical, conspiratorial, but thats the way it works sometimes. Thats right. You have to help us out on this one and well help you out on that one. Thats the way it works. Lets go to Rick Santelli<\/a>. Good morning. Look at a twoday chart. Various parts of the yield curve a little out of sync but being a good way to play the curve. Yesterdays high yield was 1 hadnt 40. Right about where that 1. 39 yield was on that retracement, which was already hit and surpassed by the 10s, we talked about how thats going to bring about curve streetening and lets go all the way back to august of 1022011. Were at the highs in 26 months on that spread. You have to Pay Attention<\/a> to that. The street loves the 5year so i steepening may continue. If you look at the rest of the curve, you can clearly see how different the long end. Remember, the fives were below both of those. Its difficult to monitor. We know the ecb meets tomorrow. If you look at a twoday chart of euro versus the dollar, i think trying to handicap whether theres an ease out of the ecb, done. 138 is the area of recent trade, now were hunkered down at 135 most likely going into tomorrow. The pound version of the dollar, a bit of a different story. Yesterday they had the Service Sector<\/a> icism at the best level they had in 16 years. We continue to see the pound building versus the dollar. Carl, back to you. Thank you very much, Rick Santelli<\/a>. Its the latest Technology Company<\/a> to go public betting on the cloud. The ceo, b. J. Jenkins will visit us in just a few moments. The dow is up 64. Squawk on the street will be right back. Squawk on the street is living large in nyc, literally. Take a look at our awesome bill board. You like it, dont you . Now can you have a photo version it have signed by the entire squawk on the street gang. All you have to do is guess fridays nonfarm jobs number. Tweet your estimate to squawk on the street and dont forget the hash tag oil nail your number. You have to be at least 18 years o enter. You have until 8 29 a. M. Eastern friday morning. Good luck. Im only in my 60s. Ive got a nice long life ahead. Big plans. So when i found out medicare doesnt pay all my medical expenses, i got a Medicare Supplement<\/a> insurance plan. [ male announcer ] if youre eligible for medicare, you may know it only covers about 80 of your part b medical expenses. The rest is up to you. Call now and find out about an aarp Medicare Supplement<\/a> insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement<\/a> insurance plans, it could save you in outofpocket medical costs. Call now to request your free decision guide. Ive been with my doctor for 12 years. Now i know ill be able to stick with him. [ male announcer ] youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and virtually no referrals needed. See why millions of people have already enrolled in the only Medicare Supplement<\/a> insurance plans endorsed by aarp. Dont wait. Call now. The ocean gets warmer. The peruvian anchovy harvest suffers. It raises the price of fishmeal, cattle feed and beef. Bny mellon turns insights like these into powerful investment strategies. For a university endowment. It funds a marine biologist. Who studies the peruvian anchovy. Invested in the world. Bny mellon. Live shot of post five where were waiting for barracuda to open. Range of 18 to 21, priced at 18, indicated 21 to 23. When that happens, well bring it to you. In the meantime six in 60. Start with vivus. This is an obesity play. Be careful, speculative play. And cvs. This is a beautiful quarter. I think it goes higher. Cutting buffalo wild. I think this is wrong. The company has a strong story. Hain. This is what you want to be in. Specialty organic. Pioneer. Pioneer, one of the largest. And encana. People were in if for the difficult depen dividend. Nice to see them make a comeback. In a world thats changing faster than ever, we believe outshining the competition tomorrow requires challenging your Business Inside<\/a> and out today. At cognizant, we help forwardlooking Companies Run<\/a> better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. We we finally got an opening trade on barracuda, 22. 51 i believe is the opening. After pricing at 18. Weve been going over the business model. Some pretty highprofile customers. Aol, jaguar. Youll see a lot of these guys seamans corporation, boreal, star bucks. This is a deal they price right for people. The space is a little crowded. Seems like the other day fire eye was in the spotlight. Everybodys in it. But lets hear. Lets find out. Were going to talk to the ceo in just a moment. You know whats interesting, carl . Theres still money being made. Usually by this time there would be fatigue and one of them would open down but the Tech Companies<\/a> have all worked. The Tech Companies<\/a> have all worked. Though avianca will not be used as a poster child of high flying ipos. No, no. Didnt have. Pure techs have been rather incredible because they price them right. B. J. Jenkins is joining us this morning, the president and ceo of barracuda. Nice model and clients you cater to. Walk us through the basics. We focus on a segment of the mark that we feel is not understood well, the midmarket customers, 100 employees to 1,000 employees. We solve problems for them in a very elegant and simple way. B. J. , the clients you have are anything but small, nascar, the homeland security, fedex. I see you do boston celtics, too. But those are huge companies. So you managed to snag them too . Large companies at times overbuy and get overcomplex and they realize they need simplicity, too. This is why you see the rise of things like cloud that simplifies some of the infrastructure. I had palo alto on mad money and they say its become very cut throat. Whats different in your pitch . Palo alto and fire eye, theyre chasing after the largest enterprises, they have to deal with every legacy application, they have to have every bell and whistle on their product. Our customers only have a few it people and they have to deal with every part of the stack. Think of your tv remote youve got at home. Its got 40 buttons. I use channel up, channel down, volume and mute when somebody is yelling at me. We make it easy for customers because theyre exposed to security its a constant consultation, in a way, in which youre also selling them product. Is that fair to say . I think a lot of our customers have these problems and they have to solve them right away. One of the things we do is we offer a Subscription Service<\/a> so its infrastructure as a service. And when they call us today, the service is on tomorrow for them. It can often be deployed in less than 15 minutes. If they dont like it, we give them a 30day right of return. Think of this in the i. T. Industry. No one is out there saying our product sells itself. 30day money back guarantee. 30day right of return. We think zappo copied us in this. We brought it to market first and they copied us in retail. As the subscription portion of the business grows, we believe we can expand over time. Is churn significant . Always have churn. We go over the top with service. Again, if you think of this mid market, you call us, you get a live important at barracuda thats responsible for solving your problem, whether its ours or somebody elses in the environment. Its hard to walk away puerto rico when you love the product and we provide web application fire walls that prevent a web site from automated attacks from bot nets, we do backup and a rife from same nascar nhl . They all enter into our barracuda system in one form or another. It may be storage, it may be security. What we try and do is once they try one product, we have 14 offerings, and we try and make a barracuda shop. What are you going to do with the money youre raising today . The big part of us going public, weve been cash flow positive since the three months after our three cofounders founded the business. We have a healthy balance sheet. For news security theres a legitimacy. Were growing fast overseas. These companies that we partner with, they want to know youre going to be around. We have in time where we see complexity in our target market. We do a mix of internal innovation and we do some Technology Acquisitions<\/a> that will fit in the platform. These have usually been prerevenue or low revenue and we make sure it fits in the barracuda model. Well keep our eyes on you guys. Congratulations again, b. J. B. J. Jenkins for barracuda. Caught us on a nice day, too. Dow sup more than triple digit. One day to go before twitters big wall street debut. Well meet an investor in the company who helped create the retweet. Do not go away. Welcome welcome back to squawk on the street. September lei, leading economic under ka indicator came up by a whisker, up 0. 7. The european currencies are starting to really do much better against the dollar in the last half hour. Maybe at least with regard to euro, the anxiety about rate cuts over the next several meetings may be priced in or at least reached a fully priced equilibrium. Well have to Pay Attention<\/a> to that throughout the day. Simon, back to up. Thank you very much. Rick santelli in chicago. Stocks in a record territory, the dow hitting another alltime high. Lets get analysis from where we are. John is an economist and analyst with lpl. What would a successful ipo for twitter do for the economy . The market is better when its focused on fundamentals. Markets love fundamentals, they look sayer buybacks. A lot of investors are benefiting from those. I think all that kind of wraps up into a market that when its focused on the fundamentals, it does well. When its distracted by the noise out there, it doesnt. Lloyd blankfein said its not cool to be optimistic but weve chewed through the issues to battle the point youre making. With an s p up 23 for the year, is the Retail Investor<\/a> right to come into the market . You want to dollar cost average in but if you look at things like valuations, youre only 14. 5, 15 times, its still fairly valued, youre still in the middle of the economics and earnings cycling. Even though the market is up a lot this year and up a lot since 2009, its probably not too late. John, as much as it might feel awkward to buy at these levels, history will tell you when the past couple of months have been positive, the rest of the quarter is good, too, correct . Thats right. Weve had 31, 32 new alltime highs this year. If youre waiting for a pullback, thats a good buy the dips opportunity waiting on the pullback but we havent had a 10 pullback in quite a long time. I think you might wait even longer for that. If you havent been in yet, its not too late. Dont do it all at once. Do a chunk here, chunk there and look out for the earnings reporting seasons. That tends to be when all the gains in the market are. Theres a lot of attention on this Major Research<\/a> paper that will be presented to the fed. If the fed says, look, were going to keep shortterm Interest Rates<\/a> at zero, not until unemployment is at not 6. 5 but 6 but in turn we may taper instead december, what does that mean for the market . I think the fed is getting kind of sick of quantitative easing, i think the market is getting sick of hearing about tapering. Maybe it is time to rip off the bandaid on quan tative easing. While initially that might cause some market disruption, longer time i think that will be a good thing longer term. John canally joining us. Thank you. Tesla beating the streets by a penny. Companys delivery numbers were lower than expect. Phil lebeau joins us. Reporter this is a Third Quarter<\/a> where they reported better as their own guidance but not as good as any were expecting. You mentioned delivery. For the Third Quarter<\/a> they delivered 5,500 model s, some were talking about 5,700 or 5,800. There was some of the disappointment. The gross margin, however, at 21 is a little higher than most on wall street were expecting and now theyre planning to deliver 21,500 this year. And deliveries are being increased to europe and to a certain extent pulling back a bit in terms of delivering here in the u. S. What about china, who many view as a great Growth Market<\/a> . That will start in the First Quarter<\/a> of next year and already elon musk is saying theyre seeing great interest theyre more on the supply side than on the demand side. Were supply constrained not demand constrained. Were working hard to address the construction constraint. The thing that people quite dont get is were different in that fundamental way from other car companies. It doesnt make sense for to us do things to amplify demand if we cant meet that demand with production. So whats the supply constraint that elon musk is talking about . Hes talking about the lithium ion battery cells. They cannot get enough to meet the demand that will go into the Conference Call<\/a>. He said they are looking at building a lithium battery factory sell that will give them an enormous simply this that is one reason why who are pretty ot mystic about where tesla is heading. That said, carl, you look at the stock, we got ahead of ourselves in terms of expecting big numbers from tesla and thats why the stock is down today. Indeed. After coming a long way this year. Our phil lebeau talking tesla today. Here are two things worth retweeting this morning. Twitter is expected to price shares of its big public debut tonight after the bell. Second, joining us here at post nine is the man who helped create the retweet. He joins us here at post nine to talk about the big day tomorrow. Good morning. Welcome. Thanks for having me. You actually have some shares. You have to be watching this relatively closely zip do. I think of myself more of bearing witness to it. Its not so much the payout but where twitter is goingneck. The whole this evening is very improbable. The first year is about the triumph the community and ga engaging the bloggers and relucta reluctantly mainstream media. You sound like you almost cant believe this is happening. I can but thats why im ultimately bullish on the company because theyve come so far. I think youve got 20,000 shares . Im sorry to be so oh, no, its through a variety of vehicles. If they price at the top of the range im sorry to to be so mercenary, theyre worth about half a million dollars, if they price at 25 a share. What people want to know on the finance program, are you able to sell . No no. So youre locked in . Yeah. When can you think about selling . Ive been long twitter since 2006. I will remain long twitter. Whats the future going on like, then, in your opinion for this company in. Yeah. What do you envision, given how much its changed from the early years theres a phenomenal book called hatching twitter, reminding me how much has changed and how much was etched in stone early on. I think twitter is becoming the news. Its going to be that channel. When you talk about an information network, it doesnt have any competitors now. It has a lot of menial stuff but it also has the most significant stuff we have going on on the planet. One of the cofounders talked about twitter being a triumph of humanity. For me its an Important Company<\/a> to the just because it has financial viability but it really is changing the way we interact and changing almost every facet of our communication network. Talk about the advent of the retweet. People want to prioritize all of their its an accidental contribution. Im a product guy, im not a finance guy. We had this new tool in 2006. You want to shake it, you want to see what it can do. I was fascinated because it was entirely sms based. I wanted to know what would happen if these follower network suddenly started echoing what was being said. I thought, wow, where could this go. And seeing that now as a excuse me. No. Its now one of their its how things go viral. Its a vie rat coral communi. Was it hard to code . Hard to program . No, im a user. I made a request. I said, please, echo this message and people did it. Can you meld that with monetizing down the line . If they came to you as a product guy and said we need to monetize this, can you help us . I think they did a great job in turning this into a discovery tool, too. Where are you going to be tomorrow morning at 9 30 . I have no idea. I just flew in. You have to be watching watching cnbc. There you go. That was the right answer. Its a corporate tale. We appreciate you coming in to give insight. Up next on the program, the chairman and ceo of directv will join us here right here on post nine for an exclusive david faber interview. Well hear what he thinks of the fate of the Media Industry<\/a> right now. [ laughter ] [ female announcer ] each one of us is our own boss. And no matter where you are in life, ask your financial professional how lincoln financial can help you take charge of your future. These are the hands a pediatrician. These are pioneering advances in heart surgery. And these are developing groundbreaking treatments for cancer. Theyre the hands of the nations top doctors. Kaiser permanente doctors. And though they are all different, they Work Together<\/a> on a Single Mission<\/a> saving lives. Discover how we are advancing medicine at kp. Org join us, and thrive. Welcome back to squawk on the street. Boeing is flying at an alltime high, reaching an agreement where boeing will get a break from the state and eight additional year of labor peace. Boeing shares soaring higher. Directv gained in Third Quarter<\/a>, helped perhaps by the time warner cbs dispute. Can the Satellite Company<\/a> continue to gain market share . Joining me is the ceo, nice to have you. I want to start off in latin america. The numbers yesterday strong in the u. S. But there was concern about latin america. The growth rate there is 5. 4 . A year ago you were doing 16. 7. Why is it so slow or slowing . Youve seen the Macro Economic<\/a> conditions in several of the companies down there shift a little bit, in particular brazil. Consumers in general pulled back a little bit. I think they got ahead of their skis on debt. Different kind of debt there, they dont have mortgages, more automobiles and applies. And venezuela and argentina, we had similar challenges as well. Is that the new normal . Ive been going to latin america for 30 years and theres been ups and downs. I think you have an Enormous Growth<\/a> opportunity. 3 out of 10 households have pay tv. We have the preeminent service, the best brand down there. But certainly you look at inflation and some of the macro conditions, one has to be i would say balanced in terms of how were approaching the business right now. So im not surprised that were seeing a little bit of a slowdown in the growth, but frankly, in local currency, for example, our brazil business still had 15 revenue and Profit Growth<\/a> in log currecal currency. Youre going to take the currency you have to look at the long term. Lets get to the u. S. You added more subscribers. Some say it must have been the cbs time warner dispute. Less than 5 . You say you make a point of not going after these guys during these disputes. Why . What goes around comes around. Retransition fees, its an unfortunate part of the landscape. We dont think it does any good for distributors to go after one another. Your revenues were up 4. 7 . That seems unsustainable. Thats not a great model, is it . Its a challenging model for a all disputributors. If we settle back done to where before i became ceo, in the 4 , 5 range, well be fine. Can that really happen . I think were all trying to challenge as best we can right now. But, look, were prepared and planning for elevated content cost over the next couple of years. I can look at our contracts and whats coming up over the next two years in particular and what were having to do is get smarter about productivity across the enterprise, go after incremental revenue, which all grew double digit in the quarter and. Most importantly, keep loyal customers. One that. Youve said its not just about price there or economics. Its more complicated than that in terms of renews. You think it comes up next year. Right. I think dij at that time in every day we were involved in, theres a question about how far are you going to go on fobil . Everyone has a slightly different category. Next year is our live clips, put your favorite players in, linking it to the nfl site for fantasy football when i hear the rumors that theyre not going to renew or google will come in and top them, what should i be thinking. We get rumors all the time in our business. I got to tell you, would i pay much attention to those rumors. We have a Great Partnership<\/a> with the nfl. Next year is 20 years. They were good for us and with a Terrific Campaign<\/a> to get football on your phone. Im excited we can continue to build that franchise. But if you look at our tv everywhere platform, you know, probably the best example of what you can do is our nfl sunday ticket platform when you get the mobile rights. Something else some of your shareholders say it would be good for directv would be a deal, a merger. The name we hear all the time is dish. You and i have talked about this through the years. But im curious, when you think about it right now and those who say they dont want to take risks at directv, theyre happy to take risk, buy back stock, they wont do it. Would you consider it . I think its in the reverse order. I think you have to answer can you get it i got u verse, you gotifyos. I would argue if you look at content costs and other factors that the world has changed quite a bit and consolidation in the industry could be pro consumer. Nevertheless, you have to make the case. Probably one of the critical questions would be apart from the strategic synergies, which certainly would be there, ive always said that, is can you credibly build out a competitive broad band service that would change the game. And it not yet clear to me you can. Clearly charlie is pursuing hes got some spectrum. Weep got more than that in brazil. You need more than that in the long run if youre going to do something competitive. Right now were focused on building our business. The strategic synergies. The final question again on Something Else<\/a> in the industry, a air, is it a possibility youd stickaryials along with and avoid i dont think that specific ideas makes sense. Theyre charging 12 and retransmission fees arent 12. That doesnt make sense what i was trying to say was we used to have antennas and a builtin capability in our boxes. From the broadcast channels. If retransmission fees continue to grow at 50 , 100 , it is a point that it makes sense for consumers. So i frankly think it will be driven by consumers if a big chunk of customers that get the broadcast for free, thats a problem fors for the battles when the Supreme Court<\/a> comes to down. Down. Thanks very [ male announcer ] more room in economy plus. More comfort, more of what you need. Thats. Built around you friendly. With fidelitys options platform, weve completely integrated every step of the process, making it easier to try filters and strategies. To get a list of equity options. Evaluate them with our p l calculator. And execute faster with our more intuitive trade ticket. Im greg stevens, and i helped create fidelitys options platform. Its one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. At bny mellon, our business is investments. Managing them, moving them, making them work. We oversee 20 of the worlds financial assets. And that gives us scale and insight no one else has. Investment management combined with investment servicing. Bringing the power of investments to peoples lives. Invested in the world. Bny mellon. Im beth. And im michelle. And we own the paper cottage. Its a stationery and gifts store. Anything we purchase for the paper cottage goes on our ink card. So you can manage your business expenses and access them online instantly with the Game Changing<\/a> app from ink. We didnt get into business to spend time managing receipts, thats why we have ink. We like being in business because we like being creative, we like interacting with people. So you have time to focus on the things you love. Ink from chase. So you can. The the health and Human Services<\/a> secretary Kathleen Sebelius<\/a> is back on capitol hill testifying this time before the Senate Finance<\/a> committee about obama. Bertha coombs is live with the latest on this particular hearing. Good morning. Reporter good morning, simon. Max baucus, the chairman of the house, the Senate Finance<\/a> committee, this morning saying he was disappointed in how the rollout had proceeded. He had said he was the one who famously said last april when Kathleen Sebelius<\/a> was here that he was worried this would become a train wreck and there are many who would describe it as much. He did say in his Opening Statement<\/a> that he didnt think it was time to change the person at the head of the situation, he didnt think that Kathleen Sebelius<\/a> should step down now in the midst of the crisis. Some people have called for your resignation. To borrow kennedys word, with we cannot fix the blame for the past. You need to stay at hhs and help get the system working. He said he was still very concerned about the administrations comments about all of these cancelled plans and he would like to hear more about that. This is something that republicans have been hammering at the administration with the president of course having said if you like your plan, can you keep it and now millions of americans having their plans cancelled. Interestingly enough last night ahead of tonights hearing, senator hatch also put out a notice saying hes concerned about the calculation of tax credits that will happen with obama care given that there had been some issues with earned income tax credits from the irs, hes worried this will also be a plob prem problem. Microsoft, a 12year high. We talked to rich sherlund, who believes that ballmer will leave sooner than anyone expected, that the company will be blown up. He also indicated that bill gates will or should get more involved, which i would find to be something of a stretch. But, hey, sherlunds out there. Go ahead, take a shot. Hes added 10 billion more in worth, which isnt bad, is it . Lets go to sharon epperson. Crude oil supplies road by 1. 6 Million Barrels<\/a> in the last week. That is less than what analysts had expected and its a little more than the build that the American Petroleum<\/a> restaurant is what happened with roo feebd fiend 3. 8 Million Barrels<\/a>. That is greater than the decline that and mists will and pes patrioted and that has been somewhat billish for gasoline futures going into the session. Also greater than what analyst himself expected. So it is refined fuels that had vepd this lift and a big part of the reason why were seeing gasoline prices at the pump continues to slide, well see if that trend continues, triple a saying 3. 10 a gallon will be the National Average<\/a> by the end of the year. When we come back, zillows ceo knows a few things about social media. He used it to solicit questions to the president just a few months ago. [ male announcer ] at optionsxpress, our clients really appreciate our powerful, easytouse platform. No, thank you. We know youre always looking for the best fill price. And walk limit automatically tries to find it for you. Just set your start and end price. And let it do its thing. Wow, more fan mail. My uncle wanted to say thanks for idea hub. He loves how he can click on it and get specific actionable trade ideas with their probabilities throughout the day. [ male announcer ] open an account and get a 150 amazon. Com gift card. Call 18882800149 now. Optionsxpress by charles schwab. Im coming out so you better get this Party Started<\/a> get this Party Started<\/a> on a saturday night every. Twitter intends to send 70 million shares of its ipo tomorrow. Who is getting a piece of that pie . If you want to get into this deal, its likely youll have to wait until it starts trading to tomorrow. Theyve divvying them up to many blue chip money managers. Portfolio managers at two large tech funds told me this might be the First Time Ever<\/a> they get zero shares in an ipo. What will each of the banks get . In terms of fees, Goldman Sachs<\/a> is reportedly nabbing 38. 5 and jpmorgan with half of that and the rest of the banks get the balance of that. Its unclear how exactly it will shake out. When i asked one source whether the deal with have any preipo shares offered to the Retail Investor<\/a>s, i was told simply theyd be better off calling their broker tomorrow for when their shares start trading. Well have to see what happens after that. Lets in the meantime highlight what the journal calls an information gap between the Retail Investor<\/a>s and those on the inside, the big wall street firms part of the ipo. They sat down with the executives and know the business better than anyone else. Their estimates for Revenue Growth<\/a> for 2018 are 28 below the revenue estimates than the very few outside the ipo process. That article specifically relates to this information gap among analysts. Some analysts have had access to management, some havent. We did talk to some investors at the road show in new york who said there was some talk about 2015 estimates, 1. 3 billion roughly for revenue, 214 million in earnings before interest, tax depreciation and amortization and the company is forecasting 322 million monthly active users. That estimate is key because thats when a lot of people expect the pendulum to swing to profitability for twitter. If you havent had access to management, you wouldnt know that number and thats why were reporting it to you. And we love you for it. Kayla tausche over at h. Q. Lets hop over to scott for some breaking news. Reporter a sellside analyst, has agreed to plead guilty, charged back in july with providing Insider Information<\/a> to a Portfolio Manager<\/a> at s. Oonchts c. Capital, richard lee and aggarwal is with a plea agreement with the government. This disclosed in a court filing. A aggarwal is due in court on tuesday. This would bring to our total 76 individuals snared in this ensie insider capital. Aggarwal agreeing to pay a 1. 2 billion penalty. Earlier on the program, jim talked about twitter. His start to the Conference Call<\/a> was lets get this party start started. Here is spencer rascoff, the ceo of zillow. Jim cramer clearly precedes you. Everybody was worrying about a cooling off of the Housing Market<\/a>. You managed to battle through spectacularly. We had a great quarter. Whats driving is audience separation. Advertisers follow audience and zillow is the largest real estate country and in major cities. Were getting bigger and thats driving results. 34 of the market now. What is the strategy to maintain that and double down on it . We spent hundreds of millions on Product Development<\/a> to build great mobile services and a great web site and then we spent tens of millions in advertising to amplify that. Were big advertisers on tv and online. Thats whats driving our category. Youre becoming like the jeff bezos in the Housing Market<\/a> in that every quarter is a great quarter with a loss. When does that change . We see this huge Market Opportunity<\/a> in front of us just in real estate, 35 billion in advertising and amazon is chasing this huge pie of all commercial revenue. We feel like the brand white space is significant. Most people in the u. S. Cant name a real estate web site. We intend to change that. This is a time to lean forward and invest to grow toward the long term. Lets talk about twitters ipo. Its just over two years since your own stock hit the markets, priced at 20, rose 79 on the first day. Whats your advice to twitter . How much should they leave on the table . Theyve already indicated what theyre going to do by raising the price during the road show. I think theyre anxious to not leave too much money on the table. Its such an imperfect opaque market trying to price an ipo. Its a very hard trick to pull off. If the investor is not able to get in on the original pricing, you wait. For Retail Investor<\/a>s, there is a rule of thumb, hang back because it comes out of most of these internet ipos. Its very hard for Retail Investor<\/a>s to play ipos. Theres imperfect access to information, imperfect access to liquidity of the stock. I am an avid users of the service, i have 20,000 twitter followers, ive send 10,000 tweets, i use it every day constantly. As a Retail Investor<\/a>s, its very difficult to participate in an ipo. I can site one difference with amazon, 160 billion. Give us some time. For example, our core business is selling advertising to real estate agents. That business is at around 120 million, 130 million revenue run rate. Agents spend 10 billion in advertising. Were dramatically underpenetrated. Rentals and even more underpreseunde underpenetrated. If you dont know by now, new york city has a new mayor. Well find out why his win could have huge implications for Real Estate Market<\/a>s and not necessarily in a good way. So there i was again, explaining my moderate to severe chronic plaque psoriasis to another new stylist. It was a total embarrassment. And not the kind of attention i wanted. So i had a serious talk with my dermatologist about my treatment options. This time, she prescribed humiraadalimumab. Humira helps to clear the surface of my skin by actually working inside my body. In clinical trials, most adults with moderate to Severe Plaque Psoriasis<\/a> saw 75 skin clearance. And the majority of people were clear or almost clear in just 4 months. Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer have happened. Blood, liver and nervous system problems, serious allergic reactions, and new or worsening Heart Failure<\/a> have occurred. Before starting humira, your doctor should test you for tb. Ask your doctor if you live in or have been to a region where certain fungal infections are common. Tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. You should not start humira if you have any kind of infection. Make the most of every moment. Ask your dermatologist about humira, today. Clearer skin is possible. You really love, what would you do . [ woman ] id be a writer. [ man ] id be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] id be an architect. What if i told you someone could pay you and what if that person were you . When you think about it, isnt that what retirement should be, paying ourselves to do what we love . Paying ourselves to do what we love . Stick with innovation. Stick with power. Stick with technology. Get the flexcare platinum. New from philips sonicare. Billemocrat Democrat Bill<\/a> de blasio won a landslide victory to become mayor of new york city. What will be the implications for the citys real estate luxury market . Joining us is dolly lenz. Its good to you have back. Thank you. Hes been clear about this, some call it the return to liberalism. Is it bad for the Real Estate Market<\/a> . I dont think there will be a major change in tax policy. I personally think that the mayor will take under advisement how that impacts all the industries, jobs that the Real Estate Industry<\/a> creates, taxes the Real Estate Industry<\/a> brings in. Its a Huge Industry<\/a> in new york and you cant underestimate it. But hes very explicit, those earning over 500,000 a year will raise from 3. 5 to 4. 5 . Hes explicit but its not only up to him. There are other checks and balances. I believe when all is said and done, it will not happen quite that way. To the extent we see on the high end russians and chinese who just want to put their money thats not in the country of origin i dont know if theyre going to care at all. They dont even live here for the most part. Do they even care except if their property taxes were going to rise . They do care because they want to be in a new york thats flourishing. Everybody wants to be in a new york thats flourishing, busy restaurants, busy theater districts, busy everything. Everybody wants to be there. Thats why i dont think anyone will kill the goose that laid the golden egg. Whats the worst case . Worst case is property prices deflate, property is not absorbed, apartments go on the market and dont get sold . Did you work in the 70s . No, youre too young. Youre too kind. If he doesnt get givebacks from the unions, which i would argue is highly unlikely, can you bust the budget and then you have to cut police and sanitation and quality of life and then people who can leave do leave and were looking at the apartments at the dakota that might be selling for a lot less. But i dont believe, as i said, at the end of the day, mayor de blasio is a brilliant man, he won the election out of nowhere and he wont want to see the city worse off than where he inherited it. I believe hell see all that or it will be focused on for him and he will not kill the goose that laid the golden egg. Everybody on twitter says youre talking your book, wishful thinking. No, no, its not wishful thinking. I grew up in the 70s. I know how to run very fast. Even in my older age. But you wont run. You can swim. And i can jump in the water. You and diana nyad. Its going to be interesting to watch. Thank you for having me. Still ahead on the program, Randi Zuckerberg<\/a> joins us with her take on the twitter ipo. Find out what she sees in the companys future when squawk on the street comes right back. Hold on for one more day like they helped millions of others. By listening. Planning. Working one on one. Thats what Ameriprise Financial<\/a> does. Thats what they can do with you. Thats how ameriprise puts more within reach. Thats how ameriprise puts more within reach. At a ford dealer with a little q and a for fiona. Tell me fiona, whos having a big tire event . Your ford dealer. Who has 11 major brands to choose from . Your ford dealer. Whos offering a rebate . Your ford dealer. Who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires . Your ford dealer. Im beginning to sense a pattern. Get up to 140 in mailin rebates when you buy four select tires with the Ford Service Credit<\/a> card. Whered you get that sweater vest . Your ford dealer. [ passenger ] airport, please. What airline . United. [ indian accent ] which airline, sir . [ passenger ] united. Whoa taxi [ british accent ] what airline, then . [ passenger ] united. All right. [ spanish ] what airline . [ passenger ] united. [ mandarin ] which airline . [ passenger ] united. [ arabic ] which airline . [ passenger ] united. [ italian ] where are we going . [ passenger ] united. [ male announcer ] more destinations than any other airline. [ thai ] which airline do you fly . [ passenger ] united. [ male announcer ] thats great, big world friendly. [announcer]. If you think the grebest bed for one of you might be a compromise for the other one. [woman]ask me about our tempurpedic. [announcer] theyre sleeping on the newest tempurpedic bed. The new tempur choice. [man]two people. Two remotes. [announcer] firmness settings for the head,legs,and back. And with tempur on top,that famous tempurpedic comfort comes any way you like it [woman]ask me about the lumbar button. [man]shes got her side. And ive got my side. [announcer] tempurpedic. The most highly recommended bed in america. [woman]dont touch my side welcome back to squawk on the street. Welcome back to squawk on the street. Well, when you look at stocks, one of the metrics some use the advanced decline, the number of issues moving up and down, you net that out, and add it to the previous period, carry it forward. It gives you a gauge of the strength or weakness in a very proactive way. Thats going to be my theme today, not only for this spot, but for my interview coming up that i will be teasing in a bit. But its a bit of a surprise. All right. Its peter rosscum, Illinois Republican<\/a> in the house. When it comes to advancedeclines on the yield curve, which is where im going, weve talked before how the fiveyear note retracement from may to september was 1. 39. We talked about how the 10year was 1. 47. One week ago exactly we hit this on an intraday basis, and it worked rather well. The 10year moved below, down towards 1. 24. An interesting thing happened on the way to the forum. Lets show the chart. Okay . Now, if you look at the twoyear actually, threeyear chart of the difference between 10year yields versus 5year yields, affectionately known on this floor as the fight spread, what youll notice is its hovering a whisker under 1. 32, which is the widest widest the spread has been since august of 2011. Now, why is this important . Because, you know, we have technical analysis, and we have fundamental analysis. What youve seen is a version of technical analysis. And what i keep harping on is this 1. 39 as an important pivot, because whether that threshold gets hit, most likely, youll see the c curve steepening. Yesterday, 1. 40, but 7 basis points below it, thats why the chart looks the way it is. 10s intraday high for the yield. You can see the steepening. On the fundamental side, its more compelling. Its always wonderful when the two mesh. On the fundamental side, read any large bond funds research, and what youll find is that the advancing yields are viewed to be the 10s and 30s, primarily because they are so enamored with the declines in the fiveyear and shorter section of the yield curve. They are long that. They tweet about being long net. What you really want to Pay Attention<\/a> to is the steepening effect. Because theres many reasons it could occur, and it could be very profitable. These are less risky trades. But for the next wave, you really do want to pay very close attention to the fiveyear pivot rate of 1. 39. Simon hobbs, back to you. Thank you very much, rickster. Rick santelli live in chicago. When we come back, active vision selling its new call of duty, and well find out if it will result in a storm of sales this holiday season. Here we are, me and you on the road and we know that it goes on and on [ female announcer ] youre the boss of your life. In charge of making memories and keeping promises. Ask your financial professional how lincoln financial can help you take charge of your future. Oh, oh, all the way oh, oh oh, oh, all the way sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets<\/a> and drive forward with broader possibilities. Cme group how the world advances. In a we believe outshining the competition tomorrow requires challenging your Business Inside<\/a> and out today. At cognizant, we help forwardlooking Companies Run<\/a> better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Active. Active vision saying its new game is off to a huge start. Hey, julia. They say call of duty ghost has sold 1 billion into Retail Stores<\/a> worldwide on its first day on sale. Tuesday. Now, this doesnt mean that consumers have actually purchased all those games. This is the amount in retailers hands. The fact that its an applestooranges comparisons to last years call of duty which sold 500 million in the first days is raising some questions. Michael packer says he thinks this could indicate lower sales than last year, and on the flip side, stern a. G. s irvin says the first day actual sales arent that important, because sales are expected to be slower as people are waiting to buy the game bundled with the new consoles that both microsoft and sony are law enforcementing starting next week. Still, active vision is promoting the fact title and numberone game on xbox live right now. Its also saying that the average player sessions for call of duty ghost have been longer than other recent games from the franchise. Though theres not a clear comparison, the topselling game of the year still seems to be grand theft auto v, which sold 800 million worth in its first day, hitting 1 billion in sales in three days. Now, activeisions call is coming up this afternoon, and we could hear the projections, and how well it will go with the new consoles launch in the coming weeks. Incredible numbers there, julia. Thank you so much. Back to watching the markets. A lot of things are lower. The comps are lower. The transports arent doing so hot with oil up. Microsoft is up, but only adding about 6 points to the dows 83point game. Abercrombie is the standout, down 10 in the wake of the fullyear warning, and ebay, meanwhile, doing well. Zillion yeah, variety of rumors were working on tracking down, if, in fact, theyre true. Well see you later on. If youre just joining us, heres what you missed earlier this morning. Announcer welcome to squawk on the street. Heres whats happened so far. My portfolio is generational. And so, if hes a great mayor or not a great mayor, in the end, hes only going to be mayor for four or eight years and somebody new will come. We have spent money with twitter, and we do theyre not an incredibly big part of the budget. Thats the challenge to face. How do i turn this incredibly engaging channel that people love into something that actually generates money . Its not always that something to like and use and buy. As you know, from when facebook opened at x, next you know its at 17. Its gone on for long enough, a long denialdenial is not good enough. I think hes microsofts top pick. I think its highly likely hell be the candidate and the next ceo of microsoft. Probably within the next month or so. [ bell sounds ] are you able to sell . Can you sell . No, no. So youre locked in. Yeah. When might you think about selling . To be quite honest, ive been long twitter since 2006. I will remain long twitter. We recognize there are onetime things going on between retransmission and sports, and if those settle back down to where contacts were the year before they became ceo in the say, 4 , 5 range, then i think were fine. Welcome back to post 9 and squawk on the street. Getting breaking news here. Lets go to kate kelly live back at headquarters. Kate . Thank you so much. Breaking news from a federal court in downtown manhattan. Judge Richard Sullivan<\/a> has approved the civil forfeiture portion of the settlement between s. A. C. Capital, the embattled hedge fund, and the u. S. Attorneys office, Just Announced<\/a> earlier this week to the tune of 1. 8 billion, and with a series of guilty pleas expected from s. A. C. This portion of the case dealt with a civil aspect of it in which essentially s. A. C. Was accused of money laundering, and the judge involved, judge sullivan, was considered to be potentially the hurdle in getting this approved. Hes been something of an activist judge, raised a lot of questions historically about cases brought before him. So this very well may get the u. S. Attorney over the hump, carl, in terms of getting the entire thing approved. But now, its down to a second judge on friday, judge Laura Taylor Swain<\/a> to rule on the criminal portion before the thing is official. Yes. As we know, sometimes the judges dont always see the same way the prosecutors or regulators might, kate. We know youre on the case. Thank you, kate kelly back at headquarters. Its almost time. Theres just one day until twitter goes public right here at the New York Stock Exchange<\/a> tomorrow morning. A great lineup for you today. The former director at facebook, Randi Zuckerberg<\/a> is here. Well talk to her about the similarities between the social networks and what twitter can expect on day one. Twitter has also been really good for business. Well look at how two Major Companies<\/a> and one individual are using twitter to make some money. But twitter obviously not the only story today. Well look at teslas big move to the downside, check in on the future of obama care, as secretary sebelius testifies in front of the u. S. Senate today. First up, shares of tesla are down sharply after Third Quarter<\/a> vehicle deliveries fell short of expectations, and the Current Quarter<\/a> guidance came on the disappointing side. Drew cupps is the president and chief Investment Officer<\/a> of cupps capital management, a shareholder. Guys, good morning to both of you. Good morning. Good morning. Efrin, how long have you had the sell . Since october. Does it involve fundamentals or trying to read the momentum behind the stock . Its still the valuation, not even the momentum. Todays momentum is pretty bad. But the valuation, right now, youre paying up for a lot of potential down the road, which it will take several years to realize. I dont think we can pay right now the price the stock is trading at. Drew, how disappointed were you in musks comments last night . Not really disappointed at all. I think that the big question with this stock is whether the Company Continues<\/a> to be on a trajectory to be a major player in the auto industry, and the execution has been pretty phenomenal, continues to be phenomenal. Last quarter was phenomenal. And, frankly, they meet every expectation they set. So pretty impressive from where we sit. Yeah, i mean, he talks about hed rather have a production problem than a demand problem. Clearly, the issues not on the demand side, at least thats some peoples read out of the call. Down 16 today. We all know the year its had, efraim. Does that surprise you at all . Should we be giving this an inordinate amount of attention . Well, this is a stock you know would be volatile. It would have either good news, and shoot up. Or disappointing news and crash down. Unfortunately for them, we got relatively bad news. Theyve been executing well. The story for me hasnt changed a lot. Its still the valuation issue that i question. What turns your view when do you what takes to you a neutral, efraim . Is it increasing production . Is it more clarity on suppliers . More clarity regarding infrastructure buildout . Well, it can give you a projection on when i would change. Right now, we load the target price to 140, and, you know, if its below that point, obviously, we review it. But right now, we dont even see any nearterm catalyst that will change our opinion. At 148, were getting a little closer. At what point do you get tempted to buy a little more, drew . I think this is a bigpicture story, right . This is theres probably most of the people in the debate have a future value in the high 100s, the 200, the mid200s. Its a matter of what point in time does that occur, and what do you pay for it today . So thats going to be the interpretation in every investors willingness to look ahead and pay ahead. And you have to pick your points around the opportunities, perhaps this is one being presented today. Do you believe that bmw or gm or any of the other big automakers pose a significant threat . I think they absolutely do pose a threat. But the fundamental view that we have that is the Major Foundation<\/a> of an interest in this stock is that tesla is moving faster than any other competitor in the industry. And arguably, they are smarter and leaner and quicker and more ambitious than any other company in the industry, and until that gap that pace of advancement gap closes, they continue to be on this trajectory to take a meaningful share of the market, which will be valued at more than the value of the company today. Efraim, it sounds like something you wouldnt necessarily disagree with. Thats correct. I mean, theyve been doing excellent job executing. Theres a lot of execution risks going forward. Theres even upside to what theyve already announced. Well, we will see what the coming days bring, obviously. At 148, getting a lot of peoples attention. Appreciate your guidance today. Youre welcome. Pleasure. Tomorrow, of course, a big day for twitter. Well cover it all for you right here at the New York Stock Exchange<\/a>. Lets send it over to bob pisani, get a closer look at what were going to be watching tomorrow, bob, right around this time. Oh, are we going to have so much fun. Every day, we bring you the ipo show. It happened today. And we did it this morning. Theres the bell podium there, where the bell is rung. There is barracuda. The ceo came down the stairs, went down over there, and heres the post where barracuda traded this morning. It was full of people. I was standing in the crowd. The ceo traditionally makes the first trade, and then the ceo came right over here, right onto our set, right there. Theres carl standing right there, and did an interview with carl and jim. Of course, david, as well. Were going to do that again tomorrow. Well take it to a whole other level, a better level, a higher level. Twitter will trade right here. Heres the man of the hour, thats glenn. Its the dmm, designated market maker. Hell be in charge tomorrow. Hell be the guy who determines when the stock opens and at what price. This place is going to be filled with 00s hundreds of traders. From 9 00 to 9 30, well give you an exclusive look. Well be with scott cutler, head of ipos for the whole operation. Hell describe how the process happens, how do you build the book, how do you determine what the price will be . How do you deal with the orders . Hell walk us through it, explain generically how the process happens. Then, 9 30rks the bell rings. Well step to the other side. Well be outside, right here in the crowd, right next to them. And were going to watch the whole process. Now, the stock isnt going to open immediately. More than likely, it will be past 10 00 before it actually does. But cutler will be here the entire time. Well provide minutebyminute analysis of how the market is evolving, how the indications that will be put up here on the board look, and how you get to that process overall. This is going to be very, very exciting. It will be a whole hour, and perhaps an hour and 15 minutes before we actually get the pr e price, the stock to open. And once that happens, guys, of course, the ceo, mr. Costolo, will walk around the bend here, and theres our man carl, and hell be talking to carl and all of the rest of the guys when that happens. Safe to say, bob a great day, a lot of fun. We have an unusual way to look at this tomorrow. Safe to say, an ipos never been covered quite like this. Not like this before. Were proud. Its first, exclusively, on cnbc. We cant wait, bob. Thank you so much. Our bob pisani walking us through some of what we can expect tomorrow. Make sure you keep it here. Well have full coverage of all things twitter right here on cnbc. So as twitter gets ready to go public, what can the social network do to keep bringing in new users . Well ask that question to Randi Zuckerberg<\/a>, former director of marketing, sister of mark zuckerberg, of course, after the break. First, Rick Santelli<\/a> talking to pete roscum today. Absolutely. Interesting guy. On the house ways and means paper and some of the local papers have been interviewing him and others on the Committee Like<\/a> cbo reports. Im going to use the advancedecline analogy, and well talk about the Affordable Care<\/a> act. It will be at the bottom of the hour, and i tell you what, im a coin guy. I wont talk about subjective issues about the rollout. Im going to talk numbers and facts, and it should be enlightning. Tune in bottom of the hour. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers<\/a> to look for the best possible price maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of fidelity investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. [man]ask me. [announcer]. Every wish for a bed that could feel perfect under every part of your body. [man]ask me about our tempurpedic. [announcer] theyre sleeping on the newest tempurpedic bed. The new tempur choice. [man]two remotes. [announcer] firmness settings for the head,legs,and back. These real owners get that famous tempurpedic comfort how they like it. [woman]ask me about the lumbar button. [man]lumbar button [woman]lumbar [announcer] tempurpedic. The most highly recommended bed in america. Now the fun begins dowshe the dows up 73. Look at some Consumer Staples<\/a> this morning, one of bestperforming sectors on the s p. Dominic chu has more on that. Hey, dom. Hey, carl. So some of the big names helping the s p Consumer Staples<\/a> sector to stay in the green include molson coors, and they had earnings that beat analysts estimates despite sales that fell short. The partnership with s. A. B. Miller in the United States<\/a> reported a 12 increase in profits. On the liquor side of things, though, going over to beam. Theyre also on the rise around a percent. Beam is behind smart bourbon. Well finish off with the bigbox retail giant that, carl, you know a lot about, costco, one of the best gainers in the Consumer Staples<\/a> sector. Back to you. Very nierce, dom. We want to dre your attention to the nasdaq 100. Look at the intraday chart. Being dragged lower by a lot of the names that have been the high flyers. Sears holdings, priceline, best buy. Theyre all among the top losers on the 100 today. And one reason why we did see the dropoff about half an hour ago. In the meantime, Randi Zuckerberg<\/a> has been on the front lines of the social media revolution, since her early days at facebook. Today, shes head of zuckerberg media, and now out with two books, uncomplicated, untangling the wired lives, and a Childrens Book<\/a> called dot, and randi joins us at post 9. Great to have you back. One book wasnt enou ambit enough. Weve wondered if anyone has done this, coincidence books, pitched to the publisher together. Thanks. Not that i have heard. Harper said it was the first time. I felt that technology, it encompasses all of our lives from very early on today to adulthood. So i think its a great topic to put out both in adult and a Childrens Book<\/a>. What do you think about the book for grownups . The message is what . Its about finding techlife balance. I talk about my own complicated relationship with technology, growing up on the front lines of social media, working with a sibling, a lot there thats complicated. In our lives in general, weve gone weve swung so far to being 24 7 connected that tech is almost overwhelming us from living our lives instead of enhancing our lives. And i talk a lot about how rediscover the balance in your life again. Its funny. A lot of investors are trying to get their heads around this, too. If theyre new to these platforms, certainly theyll be new to twitter stock when it opens here tomorrow. Mmhmm. Definitely a growing trend with consumers. Consumers are thinking more around unplugging and disconnecting and how to regain the balance, and the Consumer Social Media<\/a> platforms need to cater to consumers feeling that way. Do you think were going through this era that well look back on in 20 years and think that was ridiculous. What were we doing exchanging information so quickly . I dont know if well think its ridiculous. I just think that, you know, in the early days of the internet, sites wanted to amass the most eyeballs as possible. It was all about eyeballs, eyeballs, and then engagement. It became very valuable. The same is true with social media. It was about amassing as many friends, as many followers, as many connections. Now, its about the right friends, the right connections, the right followers. I think brands are seeing that. People are seeing that in their own lives. And its just a new era of how were using these sites. Heres a look at the battle of obviously the ipos. Theres facebook. And, you know, its been said, randi, when your private, you are, as a company, trying to grow your user base, right . Yeah. Thats the endallbeall. When youre public, you have to make money on it. Even the last call out of facebook, theres a limit to how many ads can you stack in the newsfeed before users revolt. I assume thats an issue that twitter will face. I think its an issue all of the sites face. Youre always walking a fine line between having the best User Experience<\/a> possible. Of course, all of the sites are free for people to join. So the only thing you have is an amazing User Experience<\/a>, and you want to keep it great without cluttering it with ads, but on the other hand, you also want to make some money, so its a very fine line all of the sites have to work. I talk a lot about twitter in my book, about the early days, about when i first realized twitter was a force to be reckoned with. And so, im excited for the ipo tomorrow. How do you think it will go . How do you think the shares will do . You know, i have if i could predict that, id be sitting here on the floor of the stock exchange. You know, what i do know is its been an amazing platform for social good, for giving a voice to people who havent had a voice, for politics. And i think its a testament to all of the social Media Companies<\/a> growing and growing and becoming really global businesses. The last thing is facebook has i dont want to say stolen or copied, but certainly whether its a hashtag, whether its Instagram Video<\/a> taking on vine, theres been a sense they are trying to do some of what twitters already done well. You think thats true . I think just you have to engage users in new ways today. Some of the things that worked in the past, now its all about visuals. Its all about giving people people are savvy with the camera phones. They want beautiful filters, beautiful photographs, video. Its the numberone thing that people want to do now. They want to tell their story. And so, i think, you know, its all of the sites just figuring out what users want and figuring out what the hashtag has now become the generic tagging symbol of the internet. Its true. Its true. A lot of hashtag awesome. Randy, congratulations on the books. Thank you. Thank you. Great insight today. Good to talk to you. Theres a look at it, dot and dotcom. Thank you. Digital coupon side retailmenot was one of the more successful ipos, jumping over 50 since it started trading back in july. What can the ceo tell us about twitter tomorrow . Well ask the ceo when squawk on the street comes right back. I got this. [thinking] is it that time . The son picks up the check . [thinking] im still working. Hes retired. I hope hes saving. I hope he saved enough. Who matters most to you says the most about you. At massmutual were owned by our policyowners, and they matter most to us. Whether youre just starting your 401 k or you are ready for retirement, well help you get there. Tdd 18003452550 trading inspires your life. Tdd 18003452550 life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. Retailmenot, u. S. And u. K. s large Digital Coupon<\/a> site made a nice pop, 31 on the first day of trade. Since the ipo in july, companys up a healthy 50 , and to give us a feel of the ipo market and discuss the companys quarter, Cotter Cunningham<\/a> is the ceo of retailmenot. He joins us again from austin. Cotter, good to have you back. Good morning. Good morning, carl. How are you . Im good. Its nice to talk to somebody not too long after that big day in july, to get their sense of how it went, how it felt, how public life is different from private life. Can you talk about that . Sure. Well, i think i knew what i was getting into. Id been the coo at bankrate for eight years prior to coming here, so i knew what it was like to be a part of a Public Company<\/a>. That said, of the 400 employees, i bet only four, five of them had been a part of a Public Company<\/a> before, so we had to spend a lot of time talking to them about what it was like being a Public Company<\/a>, the dos and donts, and the excitement they felt on the day we went public was amazing. We had the bellringing here in austin. We had a big celebration. It was really a great day for our company. I think people really enjoyed it. Of course, we celebrated and went back to work. 31 , almost 32 the first day. How do you communicate to your employees to try to keep them to get their heads together, right . Obviously, youre in this for a long, long haul. And there must be some you must have to push back on the idea that this could continue forever. You do. And so, what we did is we have a big allhands meeting every tuesday, and we showed stock charts have Companies Like<\/a> linkedin and homeaway, successful companies, and all of them had great runs and notsogreat runs in the stock price. We tried to say, look, this is, as you said, a race, not a sprint. Ignore the daytoday hops and just focus on what were doing and the stock will pay off long term. And so far, its worked for us, obviously. Obviously, you know, have to talk to you about the retail picture looking right now. Were going into a holiday season, cotter, we know the calendar is shorter. A report out yesterday, it could cost retailers 1 billion trying to make up the ground. Do you feel the pressure . We do a little bit. Yesterday, we reported earnings as you mentioned, and we talked to the analysts about our concerns around going to the shorter calendar. We just dont know is the truth. I think the good news is, retailers are hyperaware of the shortened calendar. So therell be no shortage of interest in doing what we can to increase sales and revenue around that time. Everybody is aware of the distinction. My own opinion is, you know, you still have to buy those gifts. You still have to get a wife for your wife, your brother, your cousin. What we may lose out on is some of the selfpurchase. You know, im going to pick up a pair of sunglasses for myself while im out shopping for the family. We may lose a little bit of that. You still have to buy a gift. You cant show up on Christmas Eve<\/a> emptyhanded. [ laughter ] obviously, yeah, youve been to my house. Yes. Finally, back on the ipo subject, cotter. We got 16 new issues here this week. I mean, it is a busy week. Its been a busy year. A lot of people looking for the top in the ipo market. Do you feel like you got in just in time before that window began to start closing . No, you know, we really didnt think of it that way. We wanted to go when it was best for the company. Obviously, there is a marking, timing element to it. As you know, you sort of play your hand and then have to go as the market as sort of the calendar works. And so, we made a conscious decision not to try to time the market or play it in any way, but instead just go when it was best for us. Obviously, its worked out. But i think it was the right angle. Cotter, we love getting the guidance from you, and look forward to having you back. Thank you so much. Thanks so much. Cotter cunningham joining us from austin, the ceo of retailmenot. Hhs secretary Kathleen Sebelius<\/a> back under the microscope today. Shes testifying on obama care in front of the senate. Well get more answers on the troubled rollout of healthca healthcare. Gov. Bny mellon combines Investment Management<\/a> investment servicing, giving us unique insights which help us attract the industrys brightest minds who create powerful strategies for a countrys investments which are used to build new schools to build more bright minds. Invested in the world. Bny mellon. Hhs secretary Kathleen Sebelius<\/a> facing the music again this morning, this time in front of a senate panel that worried about a train wreck a few months ago if obama care didnt start improving. What is sebelius doing to reassure the same senators today . Bertha comes is in washington with more. Good morning, bertha. Good morning, carl. Senate finance chairman max baucus certainly was not easy on Health Secretary<\/a> Kathleen Sebelius<\/a>. He was the one who said he worried this would be a train wreck. One of the things he asked her about this morning is why not take down the site and get everything fixed, even if its just its going to take a few weeks or so, rather than having this drip, drip, drip of bad headlines when they make one step forward, two steps back. The secretary said shed been advised that that wouldnt actually help, that it was better to continue to make fixes and see what was happening in realtime. One of the things senator baucus did get out of her is a little more detail about just how many fixes they have to make. How many of them . Items in the punch list, and which of them have been punched out, and when do you expect them all to be punched out, and when do you expect to do the endtoend testing . I would say a couple hundred functional fixes that have been identified, and they are in priority grouping. The first series of them have been under way. That is interesting, because every time reporters and others have pressed the administration, they have not really given even that much of an indication, even though that wasnt a huge list, in specifics. Interestingly, the republicans continue to hammer at this issue of plans that have been cancelled, people whose plans they liked having been cancelled, and now, they may face higher premiums. One of the biggest and sharpest criticisms coming from a fellow kansas, senator pat roberts, who once again repeated his call for the secretary to step down. Your main goal should have been to protect americans to lessen their risk and to ensure their safety. But in your zeal to implement this law, not warnings, not advice, not counsel would deter you from implementing the exchanges. You have said america should hold you accountable, which is why today, madam secretary, i repeat my request for you to resign. He didnt have any questions, thats all he wanted to say, carl. Back to you. All right, thank you very much, bertha coombs. Interesting backandforth regarding the kansas officials. In the meantime, ways and Means Committee<\/a> chairman dave kemp issues a subpoena to provide the enrollment data for the exchanges. Lets get to Rick Santelli<\/a> in chicago for more on that. Hey, rick. Carl. You read my mind. Thats where i want to start, with congressman, illinois representative in the u. S. House of representatives, peter roskam. Welcome. Great to be here. Ill chain you here to the post. Fair enough. Politicians want to run away from me. All right, bring it. In terms of the subpoena by mr. Camp, tell me what you know about that, why it was requested, and, you know, whats the problem . We had the heres the problem, we had the director of medicare before the committee not long ago, the last week or so. She was asked repeatedly what are the enrollment numbers . How many people do you have in, so forth. Very cagey, very dodgy, all avoidancesort allavoidance behavior, which is to suggest they know the numbers. Is there any doubt in your mind off the record, as the camera rolls of course, they must know the numbers. Of course, they do. That would scare me about the structure of the Technology Even<\/a> more. Theyre playing a very cagey game, and theyre trying to lower expectations, after raising expectations incredibly. And now, theres its just a mess. And so, theyre trying to roll out information you ever trade stocks by congressman . Buy low, sell high, thats what i know. Im going to talk about advance versus decliners. America, heres a great way we should find a metric for the Affordable Care<\/a> act. We should take the advancers. How many people are enrolling, which youre trying to subpoena, which they say theyll make available midnovember, versus the decliners, which are all of the people dropping out. Listen, i want to keep this on the kwaunt, but anecdotal evidence everywhere suggests the decliners are way ahead. More people being displayed. Versus how many are enrolling. That isnt a good thing. No, its not a good thing. Remember, the premise of the Affordable Care<\/a> act was its all going to be great. Everybody will have coverage. It will be affordable coverage, we were told and this is above and beyond the rollout. There are issues here, proof, we have proof, congressional budget office, please put it on the screen. A projection for the next 10 year, from 2013 to 2023, the number of uninsured. The lowest number on this, you can see, midat 30 million. But 10 years from now, still at 32 million. Heres my question. Why are we going through this ordeal, why are we tearing the country apart if we end up no better after 10 years . Thats right. All that happens, rick, is its a big shift from one group of uninsured to another group of uninsured. And ironically, the first group of uninsured what does the government have against the first group that will be uninsured, thats insured now . Thats right. Even if you get your coverage, its not the same coverage. Ive got a constituent in the northern part of my district whose coverage dropped 2x. Real quickly, out of time, my biggest beef, why do you 537 people, think the staff that works for you folks should be entitled to choices in subsidies that the rest of america cant get . I know that well lose our staff. What about people that cant afford the extra premiums . I think its reprehensible, congressman. Two things, all roskam staff are in the exchange, so am i. But theyre still getting subsidized. Arent they . Boo this is what i we shut it down 16 days over. We have to work harder. Thanks, rick. Thank you very much. Guys, back to you. All right. Thank you so much, Rick Santelli<\/a>. We are one day away from twitters ipo, and now, more than ever, a lot of businesses are using twitter to advertise and drive sales. Were going to talk to the chief marketing officers at Dunkin Donuts<\/a> and wendys. First, check out this ad that wendys made using tweets about the pretzel Bacon Cheeseburger<\/a>. Wendys, the pretzel are making me thirsty. Someonehadtosayit. The closest one is 5. 5 miles away. My life is so difficult. Twit per silence. [ music transitions to rock ] make it happen with the allnew fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Get 200 free trades when you open an account. [ male announcer ] united is rolling out global, satellitefed wifi to connect you even 35,000 feet over the ocean. Thats. Wifi friendly. Thats. Wifi friendly. Does it end after youve expanded your business . . After your companys gone public . And the capitals been invested . Or when your companys bought another . Is it over after youve given back . You never stop achieving. Thats why, at barclays, our ambition is to always realize yours. All right. Coming up on the half, tomorrows big day, the plays you need to know today. Plus, the other ipos you dont want to overlook. Plus, look out below. High flyer tesla taking another tumble today. How low will it go . And were looking for the next great trade. One of barrons top 100 Financial Advisors<\/a> is here, and he says forget the bubble talk, theres tons of opportunity. Hell tell you where to look, and also, tom baric of Colony Capital<\/a> is with us for the next hour, with the great trades. Carl, well see you in a bit. All right. Thank you so much, scott. Now, more than ever, Big Companies<\/a> are turning to social media and twitter specifically to create marketing and ad campaigns and to engage in realtime with customers. This morning, were going to talk to the top Marketing Executive<\/a>s from both Dunkin Brands<\/a> and wendys. Well start with dunkin. Were watching the first use here of a tv ad created entirely on vine. Of course, owned by twitter, which dunkin debuted during espns monday night football earlier this year. Tom costello is from Dunkin Brands<\/a> and joins us from san diego. John, good morning to you. Good morning. You guys have been aggressive. People talk about the mydunkin, and how long has that been in the pipeline, and where do you think the whole thing is headed . We think social media can be very powerful, and weve been engaged with twitter and facebook since 2008, 2007. I started my career at Proctor Gamble<\/a> and learned most powerful Marketing Tool<\/a> is recommend by a friend. And i think that social media has the potential to take that to the next level, because its where people are increasingly going for information and recommendations. So we think theres huge potential with social media and with twitter, but the advertising on there is very different than traditional marketing and media. Yeah. What is different, john, about twitter . People talk a lot about their ability to target the specific information they have about your interests on your interest graph. Do you get the sense that you can more that you can more effectively target a single consumer using them versus another platform . You know, absolutely. Broadcast media does tend to work very, very well for dunkin, but with broadcast marketing and media, youre really putting your message out there and hoping that someone is seeing it. On twitter and other social media, youre entering into a conversation. And if you enter that conversation in a way that adds real value, you can build that onetoone relationship with those guests, and really provide them with information, with an opportunity to engage with you, and fun thats even better. John, you worked for some big players. You mentioned Proctor Gamble<\/a>. You mentioned home depot. I still remember when facebook was going public and the doubts that gm had about social in general, but specifically about facebook, and for a long time it wasnt clear that gm would ever play in that space. Has that debate been solved . Has that been settled . You know, i think it varies by marketer. And i think the key thing is understanding that social media is really a conversation and a dialogue, and you need to find new techniques that are effective. You know, you mentione mentioned mydunkin. In that case, our Marketing Team<\/a> and Agency Holiday<\/a> are literally searching through thousands of tweets, and then contacting those people and turning those tweets into real advertising. So i think it can be very effective if, in fact, you use the right technique. Finally, john, you know, you can be a marketer, and you can be on twitter and you can never pay them a dime if you dont want to. What percentage of your ad budget goes to twitter, and how will that grow . Or do you disclose that . Yeah, we dont disclose the specific percentage, but i can tell you that our investment in digital and social media is growing double digits and growing faster than our investment in conventional marketing and media. Well, as a tv animal, i hate to hear that, but im not surprised, john. Thank you for your guidance today. John costello of Dunkin Brands<\/a> joining us from san diego today. Of course, dunkin not the only company combining twitter with television. Wendys law enforcemeunched a t campaign for the pretzel sandwich that turns real tweets into soapoperastyle love stories. Craig joins us this morning from columbus, ohio, today. Good to have you with us, as well. Great to be here, thanks for having me on. Where does twitter fit for you guys . Well, i tell you, you know, we believe that the days of the consumer sitting back and waiting for tv ads to run are no longer. Consumers want to engage with your brand when, where, and how they want to engage. And social media is a huge tool for us to be able to take that message and to have that oneonone interaction and engagement with the consumers. Are the dollars going to social, and by that, we mean twitter and others . Is it being taken away, as john suggested, from broadcast, from other portal businesses . Where are you doing less of because youre doing more on social . Well, you know, i think what really works for wendys is we believe in integrated marketing. We believe in the power of tv advertising. We believe in the pow irof social and mobile. We believe in the power of public relations. And we try to get those to work synergistical synergistically, so it doesnt come across as doing less, it comes across as a much Bigger Program<\/a> that can surround consumers from all Different Directions<\/a> and make all of the markets impactful. We mentioned the pretzel campaign, looking at the tv commercials there. Is twitter better used when you have a new product you want to roll out . Is it better used to maintain awareness about the brand at large . Is it both . Well, you know, twitters a great listening tool. When we launched our pretzel Bacon Cheeseburger<\/a> in the test market, we actually picked up on the passion the consumers had for that product from listening to tweets the consumers had generated. Then we thought, how do we put that to work for us in the consumers own words . We took those tweets, made song lyrics and had talent sing the pretzel love songs and distribute it back out through social media. The program was incredibly successful. 85 million uniques we were able to get through the social media program. Any idea . I mean, we watch the samestore sales, obviously, but i assume you guys have done some work looking at whatever what social added incrementally to samestore sales in a given month or quarter. Is it significant . Well, i tell you, we did work with nielsen, who measures tev ra tv ratings, and we can prove were reaching incremental consumers, and that means theyre seeing the message and hearing about our brand and our products through social media. Thats how we know it works. Finally, craig, ill pose the question to you that i asked john over at dunkin, and that is, whats the impetus for a marketer to spend money when the site can be used for free . Well, theres a lot of different ways to use this, and, you know, we use it for listening, which doesnt necessarily cost us anything. But, you know, when we want to have a program that works on all cylinders, you know, sometimes it pays to invest and were watching those rois very strongly. And as long as we can get an roi we feel good about for our system and our brand, were going to continue to invest in those channels. Yeah, that is the magic key. That is true. Craig, great to have you, as well. Thank you so much. Craig boehner joining us, the chief Marketing Executive<\/a> officer at wendys in columbus, ohio. Speaking of fast casual and fast food, big mac meet the big king, burger king bringing back the big king hamburger which looks, sounds, might taste a lot like the big mac. More on that in just a moment. Switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the Aerospace Industry<\/a> in the u. S. . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 70 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. With investment information, risks, fees and expenses im bethand im michelle. And we own the paper cottage. Its a stationery and gifts store. Anything we purchase for the paper cottage goes on our ink card. So you can manage your business expenses and access them online instantly with the Game Changing<\/a> app from ink. We didnt get into business to spend time managing receipts, thats why we have ink. We like being in business because we like being creative, we like interacting with people. So you have time to focus on the things you love. Ink from chase. So you can. Good tot is it good to be the king . Burger king is hoping so, rolling out the new big king burger which upon first glance looks a heck of a lot like the big mac. So will the big king bring a big bounce to burger king sales . Jane wells have in seattle with more on that. Good morning, jane. Carl, two all beef patty, special sauce, lettuce, cheese, pickles on a sesame seed bun. Get as whopper from burger king, in the biggest smackdown, burger king has come out with the big king, which looks like the big mac, and on the video, the king on the left, the mac on the right. They look an awful lot alike. We showed the picture, and we said, what is this . It looks like a big mac. A big mac. Oh, i like this. Because it is a sesame its burger king. Oh, burger king. Oh, wow. Would you eat it . Id eat it. Well, burger king used to sell the big king in certain markets, but without the middle bun, which it now has. To be even more like the big mac, the companys been making a slew of changes to its menu to be competitive. The news comes out as mcdonalds recently dumped heinz ketchup because the new ceo of heinz came from burger king. How do the big mac and big king measure up . Big versus big. I went out and bought one of each. Yes, thats what they really look like. Not quite like the ads. Big king on the left, the the big mac on the right. They may look alike, although the big mac has more sesame seeds. How do they taste . First, the big mac, which i know. Yep, got that thousand island flavor. Now, the big king. Flame broiled. You can tell the difference in the meat. And you can taste the onions more. Basically, it tastes like a burger king patty inside a big mac, which isnt bad. So is mcdonalds threatened by the big mac attack . The Company Tells<\/a> us, quote, were focused on our business and our customers. They started selling them, carl, at this burger king, and they sold 20. Well, they say that imitation is the sincerest form of flattery, jane. That was a riveting taste test, i must say. Jane wells in seattle for us. Yeah, watching the Burger King Mcdonalds<\/a> battle. Thank you so much. As we get ready for twitters ipo tomorrow, we want to look at some of the people who have made a name for themselves thanks to twitter. Our next guest built up a huge following and even won a Journalism Award<\/a> for a twitter parody account. Well tell you the story. [ horn honks ] [ passenger ] airport, please. What airline . United. [ indian accent ] which airline, sir . [ passenger ] united. Whoa taxi [ british accent ] what airline, then . [ passenger ] united. All right. [ spanish ] what airline . [ passenger ] united. [ mandarin ] which airline . [ passenger ] united. [ arabic ] which airline . [ passenger ] united. [ italian ] where are we going . [ passenger ] united. [ male announcer ] more destinations than any other airline. [ thai ] which airline do you fly . [ passenger ] united. [ male announcer ] thats great, big world friendly. [ male announcer ] thats great, big world friendly. Explaining my moderate to severe so there i was again, chronic plaque psoriasis to another new stylist. It was a total embarrassment. And not the kind of attention i wanted. So i had a serious talk with my dermatologist about my treatment options. This time, she prescribed humiraadalimumab. Humira helps to clear the surface of my skin by actually working inside my body. In clinical trials, most adults with moderate to Severe Plaque Psoriasis<\/a> saw 75 skin clearance. And the majority of people were clear or almost clear in just 4 months. Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer have happened. Blood, liver and nervous system problems, serious allergic reactions, and new or worsening Heart Failure<\/a> have occurred. Before starting humira, your doctor should test you for tb. Ask your doctor if you live in or have been to a region where certain fungal infections are common. Tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. You should not start humira if you have any kind of infection. Make the most of every moment. Ask your dermatologist about humira, today. Clearer skin is possible. Over three years our next guest generated nearly 3,000 twitter posts over 73,000 followers, all while remaining anonymous. He created the twitter handle atruthbourdain, a mashup of rick rychel and Anthony Bourdain<\/a> that poked fun at the culinary world. Ruth bourdain got a book deal and won an award while having a secret identity. This summer, food blogger Josh Freedland<\/a> unveiled himself, and he joins us this morning at post 9. Josh, great to have you, good morning. Thanks for having me. I love this story, because its unclear what you would be without twitter, right, and without this parody account. Oh, yeah. How did you get the idea . How did you keep it secret for so long . Well, first, there had been a number of the parody accounts. There was a steve jobs parody on twitter, which was excellent. And i just wanted to put together a parody of the food world. Putting together bourdain, which is this, you know, acerbic, drugged, obscene, sexual approach, with ruth rychel, a little more poetic, just seemed like the right thing to do. Yes. Give us examples of the things you were tweeting. Do you remember your favorites . I dont think i can talk about it on air. Its very dirty things with food. At what point did it graduate from by the way, a look at you. [ laughter ] at what point did you realize this was becoming something bigger than you thought . I think probably the james beard award. That was one thing. It was rec niegs recognition by the actual establishment of this ridiculous thing i was doing. And at that point, did it make you reconsider what twitter was capable of, the power of the platform, the power of your reach . Oh, definitely. Well, first of all, they had never given an award to somebody on twitter in the first place. This is an award that usually is given to people who write books absolutely. Or chefs for their careers. There was also a little bit controversial, too. You remained anonymous. You didnt come out to accept the award, right . Right. That must have been hard. It was very hard. I was home putting my daughter to sleep in a darkened room, and read about it on twitter. Oh, my gosh. [ laughter ] and you later made the decision when was it . In july, to come public. What was behind that move . I just you know, it was very hard to keep the secret for so long. And i felt like i had probably done almost everything i could do, all of my goals with the account. You know, i did the twitter feed. I did a book. James beard award. And i thought maybe it was time. I was not going to take this to my grave. Yeah. When you think of twitter now, then, do you see it as a powerful force for good . Or does the parody element make it more dangerous, too dangerous . I think good parody, its all in good fun, and you can appreciate it, you can see it for what it is. This was never a meanspirited, you know . Obviously, you know, if you get into meanspiritedness, its not for good. This is for poking fun at what really a lot of people who love food, like myself, can see some of the, you know, the overreaches. You were an earlier doctor, too, you had your own personal account four years ago. Yeah. Which is before a lot of people had heard of the service. What got you interested in the first place . I loved just the interaction. You know, also, for food, people post photos from their meals, and, you know, restaurant reviews. Its become, you know, the most uptodate way of getting information on the food world. You got any guesses as to how the ipo is going to go this week . Oh, my god, i have no idea. [ laughter ] well, it is interesting. Its a lesson in sort of what the platforms capable of, and i have to imagine, you have to you would probably your career would not be where it is without this thing. Oh, no way. Impossible. Josh, thank you for coming in. I think its something people will keep in mind in the back of their heads as they become used to the service, figure out what it is, and whether or not theyll buy the stock tomorrow. Thank you so much. Okay, thank you so much. Josh friedland, and the dow, we should mention, is hanging in there, up 80 points. And lets get over to wapner and headquarters at halftime. What you should do with the most anticipated ipo of the year. The tesla shares are hitting the skids today. Is the next high flyer shares going even lower . Rob of ubs is one of the top Financial Advisors<\/a> with 5 billion under management. He is with us for the hour as one of our guest traders. Tom beric is the chairman and ceo of Colony Capital<\/a> with more than 48 billion in Global Real Estate<\/a> assets. Hes our guest host for the hour. It is the half, and lets play the acti","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia800901.us.archive.org\/25\/items\/CNBC_20131106_140000_Squawk_on_the_Street\/CNBC_20131106_140000_Squawk_on_the_Street.thumbs\/CNBC_20131106_140000_Squawk_on_the_Street_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240619T12:35:10+00:00"}