Lets get to our roadmap this morning right back here in the good old us of a. Twitter Major Concerns over user growth sending shares down sharply after the social Networks FirstEarnings Report as a Public Company. While twitter is slumping Green Mountain coffee seeing plenty of green, rallying after coke agreed to take a 10 stake in the company and help launch an athome cold beverage system. Shares of gm down a bit this morning after earnings and revenue were well below wall street estimates, although restructuring maybe a part of that. Gm january sales also fell 12 . That was thanks in large part to what they said was the bad weather. Of course we had that news earlier this week. All right, lets start with twitter. Shares are down sharply. Lets see. Right here i got 51. 26, 51. 34 bid despite posting betterthanexpected Fourth Quarter results in its First Financial report as a company. Concerns about the user growth is weighing on the stock. Twitter said it averaged 241 million monthly users in the Fourth Quarter below street forecasts. On last nights Earnings Call the ceo acknowledged the need for twitter to improve the User Experience but added he is optimistic that user growth will improve. We believe that the cumulative effect of the changes we make over the course of the year along exactly the kinds of dimensions i talked about will result in changing the slope of the growth curve. We have every confidence that that will happen. Jim, its funny. We talked to costolo right here, day one, of course, of it being a Public Company and i asked him that same question. We can get to that in a minute. User growth has been the concern amongst investors and frankly amongst i think management as well, that is, its not moving up as fast as they would like and this is where people seem to be focussed this morning sending the stock down sharply. You cant you live by the sword, you die by the sword. If you come in and say over and over again its average user growth and you switch directions and you Start Talking about how advertisers like it, were not going to do that. Were not going to suddenly say, do you know what, forget about user growth. You told us to do user growth. Theres a moment on the Conference Call kind of a magnificent Conference Call from people who dont like the tock, ross sandler from deutsche bank, rigorous guy, i hate to beat the dead horse, you said the number one priority is driving mau acceleration. The dead horse doesnt usually come into the seventh question. This was the second question. We found out there was a dead horse right from the getgo. Bad. This has been the question. Of course, im looking at the research this morning. Ubs i believe lowers the rating to sell. Engagement worries move to the fore. Ken sena at evercore, user deceleration overshadows the beat. Pivotal research, you know, advertising, good. Users, not. No. The ubs negative goes negative. Steifel goes to downgrade. The Equity Research from wells fargo incredibly negative. Okay, let me just be but advertising was all right, right . Okay. Lets take it at that. If you want to value twitter on the same multiple on 2017 earnings that you would multiple what you used for facebook, youre talking about a 20 stock. Now, thats inconceivable to me because im sure someone would come in and buy the company and bet they can do a better job. B talking about facebook versus twitter. Facebook has somehow become a utility. Everybody feels the need to 3. 4 user growth if i recall at facebook which is less than what twitter had but off a far larger base when you are getting to 1. 2 billion people. First decline of 3. 4 year over year in the timeline views, remember, that matters for the advertisers. Only 1 million sequential growth in the u. S. A lot of international where people feel its not that great. You cant monetize that. It was not as strong and it expects to be contracting almost. You need a long contract i was thinking about with twitter, they are decelerating too fast. Is twitter a fad . No. Twitter is heavily used by some people. Its not a religion in the stock market. I said yesterday it was just a cult. When i say cult, people dont understand, when i say cult, it means you cant value it. Suddenly you can and thats the problem. Enterprise value on 14 sales 30 times after the correction last night well see. So, thats a lot. I mean, facebook trades at about 13 times which is still enormous multiple sales. Facebook has a clear path to earnings, david, that are really kind of explosive. 208 times and facebook is at 22 times ebita. Its a tenfold multiple to facebooks enterprise value over ebita. What happens is were stuck with the four walls of the canvas just like any other stock. And under that guise twitters very overvalued. Under the guise of heat, momentum, calories per share until this morning, twitter until last night twitter was terrific. This was a jawdropping number. The stock was up six when the head lean came out but that was not what matters. Its the Monthly Average users and i was disappointed. I asked the ceo the very question when he sat here during day one of that exciting initial public offering, i said, what about these concerns about your slowing user growth . Here was his answer theres an entire set of strategies like the onboarding experience into twitter from that moment you hear about it and you come to the service and sign up to really getting it, understanding it, and becoming active on the platform, one of the fascinating things about twitter is that the language of it, the scaffolding within it really is an evolution of how users have learned to navigate within that 140 character space. But that language and that scaffolding can be confusing and opaque to users who come to the service for the first time. Its about developing processes and capabilities that allow the flexibility and power for users to navigate within that space. But making it very clear and simple to new users who come to the platform. Told you. He said we need to make it easier to figure out, why do i want to do this . Whenever we hear the new verbs, scaffolding, what he was saying it may be too hard for the next generation of people to use. They have to make it easier and then i think the advertisers would be more comfortable. They have to erect new scaffolding. Bricks is falling on the we dont need to fix our buildings every five years and bankrupt everybody. I hate local law. Weve spent too much time on twitter versus disney. I want to talk disney, but it says we need to talk Green Mountain coffees, lets do that quickly and well get to disney and sony after the break. Can we talk Green Mountain coffee, all right . I know cult stock whatever you want to call it heavily shorted, but, by the way, that stock is up, i mean, the numbers are incredible. Premarket. Why . Well, cocacola agreeing yesterday to take a 10 stake in the company. That value was 1. 3 billion was the stake part of a tenyear agreement which coke is going to help Green Mountain launch an athome system for cold beverages. Coke looking for new avenues. They put a valuation tag on this thing even though they bought the stock at a bit of a discount that was not bad at all. You got a lot of guys short. This thing was a monster. Are you talking about gm, cm . Its Green Mountain, coke, make . What people dont understand ive been short companies and i was i shorted a company that had the better mouse, literally better mouse, systemics, okay . And i knew the mouse didnt work and i said over and over again, short, short, short and later a Major Pharmaceutical Company bought that company. No, that cant be. Coke obviously did not care whether keurig had peaked. Theyre using it as a vehicle. Have they not read David Einhorns notes and letters . Coke, you idiot, undo this, no, they like the Distribution System and theyll blow it out internationally. The case against Green Mountain had to do with legacy grown mountain. This is new Green Mountain. Former coke executive who runs it moving into a lot of different central Distribution Systems if you will, soda stream, of course, getting hit yesterday. Darn. You just made the great point. New guy came in with a vision, obviously had this ace in the hole the whole time, the shorts continued to bleed that Green Mountain was what it always was going to be which is this keurig. And suddenly theyve got keurig, too. And show the short case which, by the way, will be vociferous, when they get in, the stock doesnt go lower, it gets higher, i moan after. Can we make it as it watches its core product certainly stagnate the rise of so many other kind of fitness related drinks . Do i want to buy it up 30 . No. But do i think the case to be made negatively is the same this morning . Well, only someone who has really got his head stuck in the sand would say that this is a bad company that cocacola made a big mistake with. Cocacola is Warren Buffett. Its an international company. Cocacola decided that Green Mountain should be blown out internationally. By the way, cocacola, how about my hats off to them. They see their business slowing. Thats what im saying, exactly. I would buy cocacola on this. You would . I was worried that the growth has been terminal. I dont think that way. They are looking for different opportunities. All right, well, gmcr will be up and cocacola may be and soda stream as well. And gm reported 67 cents a share. And it seems to be softerthanexpected sales and growing dealer inventories and the new cfo was on squawk box this morning. From a wall street sell side perspective i think two things. One, book, book tax rates were higher in our actual results than what was comprehended on the sell side. That was onethird of the miss. The other twothirds fundamentally related to the restructuring costs i spoke about in Germany Associated with the closure. Higher tax rate, restructuring costs. What do you think about the stocks down a bit today. Why dont we venture into the world of truth than bashing gm. The travel trust owns it. Revenues rose 3. 1 , 40. 5 blgd and people were looking for 40. 9. I hardly regard it as a big miss. The german restruck is very important, the ebita adjustment, the numbers were good. They were good. They were good. Ebita is what the stock would trade on and it wouldnt shock me if it finished up today. Interesting, i noticed the third slide. They want you to look at it. Rigor. You have rigor. I have tried. The analysts were bashing it this morning rigor mortis. Lack of rigor, perhaps. People come out, look overall auto sales not great. No. Weather, horrible. Phil lebeau tweeted that great chart, the west was fine and when you get to the midwest sales were down and the east sales were down. So certainly weather for january. Obviously toward automotive, cash, marketable securities, 27. 9 billion versus 26. 1 and yield is 3 1 2 percent, its ahead of ford in europe in terms of restructuring. Its just not bad. Its not bad. It was at 40 and goes down to 33 has a good yield, shell tell a decent story. Is it disney . No, nothings disney, that was an amazing call. And, in fact, well talk about disney when we get back from a break. Sony also, by the way, stretching up its own restructuring splitting off its pc and potentially tv operations as jim said disneys earnings, wow. Wow is all we can say. Have you seen frozen yet because apparently everybody else has. Everybody else has. Theres a look at that as well. My daughter still like tangled better. Another look at futures when we go to the break were poised for a higher open and were squawk on the street and, yes, we are live from the new york stock exchange. When you order the works you want everything. An expert ford technician knows your cars Health Depends on a full, complete checkup. The works. Because when it comes to feeling safe behind the wheel, going the distance and saving at the pump you want it all. Get our multipoint inspection with a a Synthetic Blend Oil change, tire rotation, Brake Inspection and more for 29. 95 or less. Get a complete vehicle checkup. Only at your ford dealer. To manage your money. R guy around 2 percent thats not much, you think except its 2 percent every year. Go to e trade and find out how much our advice and guidance costs. Spoiler alert. Its low. Its guidance on your terms not ours. E trade. Less for us, more for you. We do . I took the trash out. I know. And thank you so much for that. I think we should get a Medicare Supplement insurance plan. Right now . [ male announcer ] whether youre new to medicare or not, you may know it only covers about 80 of your part b medical expenses. Its up to you to pay the difference. So think about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans, they help cover some of what medicare doesnt pay and could really save you in outofpocket medical costs. Call now. With a Medicare Supplement plan, youll be able to stay with your doctor. Oh, you know, i love that guy. Mmhmm. [ male announcer ] these types of plans let you visit any doctor or hospital that accepts medicare patients. And there are no networks. You do your pushups today . Prepare to be amazed. [ male announcer ] dont wait. Call today to request your free decision guide and find the aarp Medicare Supplement plan to go the distance with you. Go long. Sony announcing its cutting 5,000 jobs and going to be selling its personal computer business and tv operations still struggling. In fact, it lost 7 billion over the last decade. You know, theyre trying to take their fixed costs down. The company also predicting losses for the fiscal year ending in march compared to analysts forecasts which had been for a profit. We know this name in part because there was in the spring if you recall, summer, dan loeb big position, pushing them to do a subsidiary ip of sony entertainment. They came back in august with a detailed letter saying, thanks so much, dan, but all the directors of our company continue to believe that owning 100 of the entertainment business is fundamental to the sony success. The problem is not with entertainment which did shine a light on it and theres also real values there but making tvs is not great business. No, we knew that from zenith, didnt we . One of the things i struggle with with sony is, well, what is it that we really want . It doesnt have anything that i want in stock. No growth. No vision. No clear path to profitability. When we have companies that are doing things that are just amazing. Lets compare this to but trying to take them back to the days of innovation, think about it, we all know the walkman. The walkman, didnt you just say everything . I know. Im struggling. Im struggling. The dna here is bad. It was great. I just dont see a lot here to own. Right. I wish i did, because the stock has come down a great deal from when a very smart investor got in. Thats an incredible chart there. I remember when Michael Price told me there was a lot of worth. The problem is sometimes the business changed. Remember when Warren Buffett said he didnt Like Technology because Something Else would come out. Not a lot of recurring cash flow in technology typically. And Warren Buffett not looking good on the ibm or the exxon buy. No, hes not. No, hes not. Companies, we need growth. The whole exercise in 2014 so far is who has hyper growth. Yelp has hyper growth. Disney has accelerating growth. Lets talk about disney, shall we . . Sure. Because it was a Strong Quarter for disney. Bob iger joining us i think after the bell yesterday on cnbc. It was on the closing bell. Espn advertising, up sharply even with worries about, you know, ratings and subfees and huge. Stop worrying. You are talking about a company that owns lucas films, pixar and marvel and marveling at frozen. Enormous box office. Good franchise. A froon chice anchise being. And abc not so good. Network is not good. By the way, interactivity was good. There wouldnt be a time when that would have been the dominating story, but you have franchise, you have rollout. He spoke very clearly about how three kind of movies hes going to be making and hes got the animation which is obviously for frozen. Fantastic. Hes got this amazing, incredible marvel rollout. Just going to be good, good, good. And now all people are going to say, i got to held on to this because 2015 is star wars and hes saying star wars was going to be amazing. This was the best quarter disney has ever had. Ever had. And parks also strong up 6 and they invest in the parks but then they get a return pretty quickly even with the bands they spend 100 million bucks to come up with the new technology in terms of bands but it may increase the parks. Bob iger said i hate to use synergy a much better word is our ability to leverage all the characters and movies, this is one of the more sinnergistic companies. You like lion king. This was bigger. Frozen. Then you bring it to broadway and you develop a theme park ride. The path to longterm profitable at disney is amazing. It remains the single best buy for your kids. People think, you could do as much as five bucks a share on the eps in the not too distant future and you are talking about 100 bucks. Remember when we were worried we, like i work for disney. When there was a worry about espn and fox sports. Yes. Didnt