Biggest increase since february ahead of the jobs number tomorrow. Our road map begins with facebook shares poised to hit a new record after last night. Whole foods misses expectations. Sales growth at a fiveyear low. Find out how the coceo explained this to jim on mad money last night. Homeaway, well talk to the ceos in the next hour. But facebook is poised to open at a record high while entering the 300 billion club. The Third Quarter results beat estimates. 78 of ad revenues now coming from monthly active users. On last nights Conference Call, Mark Zuckerberg said video is another area where facebook is continuing to make progress. Take a listen. On average there are now more than 8 billion daily video views on facebook and 500 Million People who are watching daily. To offer even more engaging video experiences, weve added live video for public figures. And we now support interactive 360 videos. 78 mobile. Three years ago it was 14 . Remember that . Remember when they had a mobile problem . They had a mea culpa. Zuckerberg said he was going to get on it. Stock went to 18 , 19 . I dont know for a hundred points. Because im using 120 price target. And ive got to tell you, this call this Conference Call this quarter, starbucks may have been beethoven. This is mozart. Its so perfect. Everything about it is perfect. I got to tell you, whats really perfect about it is the media doesnt get aheadline. Despite higher costs, rise. No its because of higher costs. They invest. Sheryl sandberg said we invest. Zuckerberg said it was a good quarter. People in corporate america, dont be ashamed. Go learn from this 18yearold kid. This is the company you should aspire to be. Im going to Say Something that people are going to really blow people away. They paid 19 billion for whats app. It was a steal. You think it was a steal. By the way, can i give you a sense of things . Onefifth of the people in the world check facebook all the time. Onefifth. Its now called the biggest media brand in the world. By far. Time warner which i know were going to get to later, youre not losing customers to cord cutting. Youre losing customers to facebook. They are talking about media time and how much media time people spend on facebook. And i got to tell you, they had a great moment. When they first started they were talking about how zing was getting customers. Way too early for that one. Good. Here its ikea getting 2 million back. Return on investment is clear. The brilliance of the people, 41 revenue growth. That means you can do 30 times. Of course, facebook rapidly becoming an umbrella of brands including instagram. Heres Sheryl Sandberg last night talking about that. This is the First Quarter where the instagram ad offering has been as rebuffed as it is now. With a lot of improvements that happened this quarter including selfservice rollout. Thats a major step change for instagram in terms of the product were offering to the market. My favorite metric is the ratio of daus to maus at 65. People who are on check in all the time. All the time. Its not like they come in and two weeks later check it again. Thats why its so fantastic for advertisers. 1. 3 billion check their facebook or mobile regularly. A billion people. Now, this is amazing. If youre in advertising and by the way they still scrutinize advertising to make sure theyre up to facebook standards. The old joke about advertising was half the people you dont know where half your spend is going essentially. You know half of its not working. You dont what half. Thats over. If you give facebook money, you get a return for it. Because everything is anecdotal in the world, i go to the wife. I say what are we talking about here when they say that . She says, look, im a member of a group. Its a group about virginia wolf. I mean this is ill get the name. I think its important because its just exactly how theyre succeeding. Because they talk about groups as being the best way for growth. Because they have 925 Million People who use this thing for a group. And groups, by the way the groups are who the advertisers want. She belongs to one called what would virginia wolf do that involves women of a certain age, she told me, they discuss everything she asked me not to tell that. I said do they have ads . Theres an oil of olay ad you just clicked on. Im not kidding. They have targeted my wifes group. And 925 advertising channels. And thats my point. Channels. And by the way, can i just tell you something right now . Of course. 6 is not going to 525 for these guys. That was a reference to yesterday the Conference Call that time warner did talking about, if you will, i hate to say old media. Listen. When you look at the basic numbers of time spent versus advertising dollars, it gets you to thinking digital still has a long way to go to catch up. Because a lot more is being spent. By the way on the Conference Call that followed cvs decent earnings report, on tuesday night they said were not seeing it. We had a lot of ads. Completely shocking the market by not including the guidance for 2016 was going to come in well below the 6 and then even the 8 for 18. If you recall, those were the two numbers the company came up with when it was fighting with fox a year lets call it 15 months back or so. Theyre not going to come near it. But that was a surprise as it came in at 10 30 or so. It took the entire media sector down. Then this morning one wonders with this great number from facebook whether its just going to continue pressure on these traditional players, if you will. Even though theyre doing a lot of nontraditional things. So well be watching it yet again. Sandberg, 25 of media time mobile. A minute every five minutes on mobile. Advertisers want that. Theyre talking about having so many video views that the advertisers are just scratching the surface. So youre absolutely right. It is early. But these people are coming from tv. Clorox coming to it. You can bet all is coming from the daily beacon and the wichita beacon. I didnt mean that. Coming from this. Or the philly inquirer. You saw that yesterday. Whos left . Whos left in that Great Institution . Instagram which they bought for a billion dollars in 2012. That generationally to me is the more powerful platform. Neither one of my kids are on facebook. But both are on instagram. And bob talking about 2 billion in ad revenue at sun trust a couple years ago. Theyre just starting it. Its in its infancy. Thats why you can put a number to get to 120 very quickly. On the flip side, of course, whole foods posting estimates as comps fell. 2 amid heightened competition. Company also outlined sales momentum including reducing strategic. Heres what the ceo told jim cramer on mad money last night. We have some head winds from the comparison year over year of 150 basis points. Any way you slice it, theyre not what we want, not what we expect. We outlined the steps were going to move it forward. Everyone talking about the buyback. Do they lever up to buy more . They are going to lever up. We know its not much more. Company reported 8. 5 comp today. Just because they have minus 2 comps coming up, i dont think its the sector. They have a lot of problems. They have underspent technology. There was open rebellion on the Conference Call. They underspent on technology . Yeah. Thats surprising. How does that happen . Youre referring to theyre not converting visits to their Online Shopping sales. Theyre not doing that either. But the point of sale, the hardware at the stores is old fashioned. At one point, these are very nice guys, questioned whether the new attempts to fix point of sale systems would work better than the other ones they said they were going to do two years ago. That was brutal. And then just an amazing thing. Ken goldman whom i respect says weve got to get back to bayics. He asked what have you been doing thats not basics, so to speak . In other words, this is a Conference Call if you go read it. The analysts have had enough. The company is levering up to buy back stock. Is that the right thing to do when you have to go against the people . Its just like walmart. You want to go buy back 20 billion and fix it . Forget it. A company like this which had incredible growth and was the leader in the category, when did it lose its mojo . When walmart, target, costco all got religion about it. Kroger being the principle enemy. Remarkable what theyll have. The Natural Organic next to the old, next to the store brand. Kroger is the best now on antipackaging. Whole foods could do the 365 new stores which they sha will be cheaper. I love it. I want them to win. You know, they do a lot of great things and it pioneered they still are getting 970 per square foot. You think they can turn it around . I dont think this quarter or next quarter. I think the problem is is that weve all seen companies that lever up to buy back stock without a turn yet in hand. Or pay too much as i would tell you that the Media Companies did. And its a bit of a waste of money. Now, walter rob told me, listen, jim. If question turn its going to be a great investment. I come back and say you guys are unbelievable what you do, but the other guys are all ganging up on you. And you dont know what the future is. Because retail is so uncertain. So i want whole foods to win. Its amazing, but the comp stores are going down. We have to accept that. Youve got to do comp stores. You cant be an abstract artist here. No. I know. Ive said that to sears, kmart many time. Thats paint by number. Incredible. Expedia meantime back buying homeaway and a 3. 9 billion deal. Well talk to the ceos of both companies. Also bob lutz is going to weigh in on this widening volkswagen scandal and whats at stake for the autoindustry. Not since september 28th has the major averages lost more than 1 . And in that time, s p has logged a 1 gain eight times. More squawk on the street next. Here at td ameritrade, theyre always working. Yup, were constantly making thinkorswim better. Like a custom screener on your desktop, that updates to all your devices. And you can share it with one click. Wow. How do you find the time to do all this . Easy. We combined every birthday and holiday into one celebration. different holidays being shouted back to work, guys i love this times of year. For all the confidence you need. Td ameritrade. You got this. Expedia making its largest acquisition ever agreed to buy Vacation Rental site homeaway for 3. 9 billion. This puts expedia in competition with airbnb. The deal expected to close in the First Quarter of 2016. Barry diller was asked if the success of airbnb drove this company to want to own a business like it. This is an area we were not in. We are in every other area of travel. And so this weve been looking at homeaway for years now we had always thought this was an area we should get to. This is a 22. 5 times at least from the analysts weighing in. Perhaps appropriate. Sthoe not that large a premium given some of the deals for Growth Companies that weve s n seen. And importantly expedia shares are responding positively. Something we tell people to keep a close eye out. Because that continues that narrative, if you will, that a lot of bankers will. Good time. Your stocks going to go up. We have brian coming on. Hes bag regular on mad money. This is a brilliant acquisition. Really . Why is it brilliant . Its the channel they really need. This is how people this is shared economy. Expedia needs more shared economy. The website homeaway needs a bit of a tuneup. Airbnbs website is much easier to use. Homeaway had a great business. We use a bnb and fills our place. I dont know if expedia can get this. Because its that good. I said yahoo should do it. Because yahoo needs more subscription revenue because this site is so fabulous. Ive used this site. You used expedia at the end i thought. We use bnb to get to expedia. Thats exactly right, david. Bed and breakfast. Com gets you to expedia. Thats why its a natural fit. If you own an inn, anything to do with lodging, what they allow you to do is run the place for you. Get a check each morning for people who stay. They take their cut, but you dont need a night manager. You just have a phone number. Expedia, homeaway, these are brilliant companies. And expedia has done such good things. Takes my breath away how smart they are. Another company that just understands the power of the web and technology. And theyre just great at it. I think cowen has a new street high on these guys of 180. Very reasonable. Really . Yeah. By the way, not necessarily going up against airbnb. Its a distribution channel. I have a place in mexico and i wanted to rent it. What you have to do is go to homeaway and put in pictures and done. You have an inn trying to fill it. Boom. Brian sharpels is a great businessman. Very, very smart guy. And its a win for everybody. I just dont know if thats too low of a price. So you made this point. Are you saying you think somebody else might try and come in . I just think marissa mayer, they should buy this. I dont think theyre swift enough to come in and get it. Could priceline do it . Maybe. Theyre fast and smart. Theyre going to get this done fairly quickly. Its 10. 15 in cash. So the price is going up as long as expedia stock goes up. Its gone about 3 right now. Have you ever spoken to brian . No. Dont know him. Fabulous guy. Youre going to have a great interview. Hes always been straightforward when he thought they had to spend a little more. Total gentleman. Last quarter was a really good quarter. He is going to stay which is good. Hes just done it right. Such a Great Company. Cant wait for that. After the break, well get cramers mad dash. Well get to ravel lauren and coors, and preview disney. Back in a minute. When youre not confident your companys data is secure, the possibility of a breach can quickly become the only thing you think about. Thats where at t can help. At at t we monitor our Network Traffic so we can see things others cant. Mitigating risks across your business. Leaving you free to focus on what matters most. patrick 2 pretty great. Ke to be the boss of you . patrick 1 how about a 10 raise . patrick 2 how about 20 . patrick 1 how about done . patrick 2 thats the kind of control i like. And thats what they give me at national car rental. I can choose any car in the aisle i want without having to ask anyone. Who better to be the boss of you. patrick 1 than me. I mean, you. Us. vo go national. Go like a pro. At ally bank no branches equals great rates. Its a fact. Kind of like playing the boss equals the boss wins. Wow takes me back to my freshman year in college. All right. 23. 13. One of the favorites on twitter is fire eye. Why . Because theyre one of the cyber attack companies. You can use them to stop attacks certainly after attacks. David, there wnt enough attacks this quarter. How could there not have been enough attacks . There werent. Today its iranians again screwing around with things. Who knows what theyre doing. Im stuck with the facts. Thats what they talked about in e the Conference Call. They talk about the chinese agreement we made has cut down the number of hacks but not to worry. There will be more hacks. So dont give up. Therell be many, many more hacks. Dont give up on us. Kind of a surreal moment of the call. Just like, hey, listen i know there were a lot of hacks but theyre coming. I dont want hacks but de wault is going to be on tonight. I think a lot of people recognize its a headline story. When a major retailer gets hacked, they bring in fireeye. But what major hack was there this quarter . There wasnt one. There you go. That we know of. A lot of times we hear about it after the fact. A lot of companies have gotten better. Dont forget theres a ridiculous call hack. So everything will go down today. I got to talk to him. I dont know. I mean, because this has been one of the hottest sectors. Come to think of it, remember it was really hot when you found out the stock was flat on the year until now. Now its down 17 today. You get these segments, these hot aereas. So lets find out from david dewalt. I think we can agree there will be many more hacks. This is a stock that turned out to be going up when a retailer had a hack or someone you knew had a hack. And there were no big headline hacks. So without any big headline hacks, they werent called in as much. They do so much more than that. I dont want to just dismiss them. Okay. Well, well keep an eye on the peer group for fireeye as well. Weve got a lot more stocks to watch. Also keeping a close eye on a lot of media names which got pummelled yesterday. Opening bell after this. [announcer] during mattress price wars at sleep train, save up to 400 on beautyrest and posturepedic. Get interestfree financing until 2018 on tempurpedic. Plus, helpful advice from the sleep experts. But mattress price wars is ending soon. Advisor and team who understand where you come from. We didnt really have anything, you know. But, we made do. Vo know you can craft an Investment Plan as strong as your values. Al, how you doing. Hey, mr. Hamilton. Vo know that together you can establish a meaningful legacy. With the guidance and support of your dedicated pnc Wealth Management team. The year of spieth comes to a close. Tour championship winner. And he does indeed take it all. Youre watching cnbc squawk on the street. The opening bell in just over a minutes time. Once again stocks inching back to those levels we saw back in july and earlier. 2132 or 34 is as high as weve been for the year. Despite what was said about inflation and rates. Different stocks this time. We added some health care stox coming down. We saw some retail stox come down. Restaurants. But theres other parts that bubble up. The banks have been strong. I find a lot of the industrials have been leading cause of the rally. Yesterday was the first day that the oils went down. They had been a contributor. But theres just pockets of strength everywhere. You know, heres a good example of whats going right. Microsoft. 54, 55. Then theres facebook, amazon, netflix, google. All fabulous quarters. In that 300 billion club. Apple, amazon, google, microsoft, exxon, facebook. All those had good quarters. Even exxon. And netflix, now were realizing they were right. I just cant say enough good about these companies. They are bargains. Thats why people like them. Fang is bargain city. Really . Yeah. Rock bottom. The multiples can be f