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tv   Fast Money  CNBC  April 29, 2014 5:00pm-6:01pm EDT

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bank, jpmorgan. he's presided over this thing with a great persona. >> no other man in resent history as had more impact than bold. vilification of the wealthy. government being negative on businesses. the leveraging of banks all from that ground zero. >> what steve job means to apple is what qualm means to samsung. >> we'll hand it over to melissa lee and the "fast money" crew. >> we start off with twitters conference call beginning right now. shares coming in slightly better than expected. investors are looking for stronger user growth. listening on the call. he'll be with us for the full hour. ebay, also moving low after hours as that conference call begins. we will brick you more straight ahead. our trades are tim, ryan, steve
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and pete. we kick it off with twitter breaking through the key $40 level in the after hours trade. >> it's incredible. i think the slowness and growth is what everybody is focused on. this is their second worst quarter now. it was obviously better than last quarter but something that didn't impress the street. the stock is getting punished today. >> what's really surprising, facebook knocked the cover off the ball. the entire sector is under pressure. people are fivillifying. evaluations. i think twitter is behind facebook and with lockups coming out. stay close. >> that's the problem. they are behind facebook. i'm in twitter.
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i bought the $40 puts on it. it's kind of a wash for me. but the reason why i got into this is because i thought they would make the changes like facebook did and you would have the user growth. that's not happening. now what do you do? we'll see what happens on the conference call. i think they're in trouble. >> i'm still long as we. remember what i said to you about cysco. everybody knows about margins on cysco. twitter, everyone knows about the lockup. the problem is for the shorts, is that you can't get the ball on this name anymore. it's the most shorted stock universally. you have the rotation and space. if you can't get to borrow you're susceptible -- >> this is a company having ha
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lot of problems and this is not the only company with people having that problem. i mean getting the -- >> fundamentally there's no reason to buy twitter just yet. what people are betting on is the fact that they can turn vine into a youtube like event for themselves and monetize that and turn advertising -- >> is that what you're looking for? where do you stand on twitter? are you on twitter? >> i'm on, yes. >> when do you say i can't take it anymore. >> i owned up to 42 and back to 74 and taken a round trip on this name. i always had in my mind i was going to be in for the long haul. facebook traded down to $18. there's a lot of people that stuck into it and got rewarded for it. >> you said $5 ago or whatever it was. $4 ago. that the lockup expiration would not be an issue. >> i don't think the lockup issue is the reason why it's
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trading down. >> not at this very moment. it's the engagement metrics making it trade lower. >> it was the rotation that killed the whole space. if you're going to get completely out of growth and go into value, then you should not be in any of these names. you should only hold ibm, cysco, chevron. exxon mobile. >> i would argue one aspect i think you could argue is their growth for a growth company was pathetic and that's what this comes down to. >> what is it then? >> the one thing if you're looking for one thing to kind of hold your hat or hang your hat on is mobile growth. 78% growth there. when you're looking for anything right now and what seems to be a terrible quarter, that would be the one thing i would hang my hat on. >> would you put a trade
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tomorrow on twitter? >> no. >> why is that? >> i still think that the market is in a bit of that -- >> it's a macro call? >> yes. i think we're seeing this across the board. yeah, we had a better day tonight. but that was today. most days have been terrible in that space. >> let's get more from the conference call. checking in with bob. not sure if anything was both saying in terms of the call so farment what far. what are you telling clients? >> i think what is most important is the maus. $255 million. importantly the u.s. part of that only grew about $2 million or 3 million or so where they beat the top numbers on the monetization side of things. they're monetizing more.
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per the data, they're not getting the user acceleration and that would be the key sticking point. >> if you had the opportunity to ask one question, what would it be right now? >> the number one question is how do you become more mass market? how do you become big are like facebook? how do you get the euphemism like your mom on twitter? wants to see pictures of the kids, et cetera. how do you get the mass market, how do you get them on twitter? >> based on what we know in the quarter, would you say this is a buying opportunity in twitter or not touch it? >> it's starting to pull back to reasonable levels. you're still looking 20 times more revenue. just turning positive. it's starts to get interesting here. >> we'll check in with you later on here. >> interesting that he's starting to talk about valuation getting interesting and clearly it's tough to know where we begin to value this company if
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we think growth is slowing down. all the valuations in twitter were looking at these guys five, ten years. their ability to begin to monetize, this is where people started to own facebook. there's a lot going on for them right here and now and we still don't know. >> what happens with twitter is a macro call. is twitter a barometer for what could happen in this momentum trade? >> i think twitter is more the tail rather than the dog here. you're in a space that just -- if you don't have a growth in the growth area, you're going to get crushed. i wouldn't use twitter as my go-to name. i would look to something more like facebook. something like that. if that starts to weaken again, you're going to have problems. >> here are your three horse man, tesla, netflix and amazon. these are the interesting ideas. disrupt tors of all of their and multiples that you can't defend.
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>> let's check in on another stock. ebay out with earnings results. let's go to dom in the news room. >> down about 4% in the after hours trade. posting first quarter earnings of 70 cents a share. 3 cents better. revenues were $4.26 billion. second quarter earnings to the low side of expectations. they brought back $9 billion worth of foreign cash. but get this, they had to take a $3 billion tax charge in order to make that happen. so the conference call is kicking off now. we're going to take a listen to what they're going to say. ebay shares down about 4%. by the way, that is just about where the options market was pricing the swing h the stock prior to earnings. >> expecting a quiet quarter out of ebay. >> right. stocks started to move almost initially after the original
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call. but the cautionness and you start to get to the guidance, you want to see what's coming up next and when you see some of the guidance and also in the earnings, i think that's when people started to turn on the stocks. >> what's different about this stock is this is a company -- >> earnings. >> well, earnings and valuation. these guys traded a small discount to a sector. if you look at the second half of the year. this is a company that may have some from international and korea, these are places they're doing really well. paypal is big. >> you take a $3 billion hit on this because you have cash in the u.s. they can't -- >> $3 billion. >> $3 billion. they took a $3 billion hit on it.
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either you need the cash which is not good for the company. or you're going to make an acquisition which may not be good for the company and it's protocol -- probably not the best. >> like half the company is doing. >> they need to explain that tonight. >> from the tax perspective, i could not agree more. pfizer is one of those names. allergan another one. this doesn't make a whole lot of sense. i wonder carl icahn backed offment he woff. he was one of those shaking. was this something he had any knowledge of? it does not seem like something he would say, yeah, let's bring this back. >> we'll see what they say on the conference call. we will keep following twitter and ebay. another big names as well. find out for penary are and
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let's take a look at some of the other big after hours. panera beating on earnings. shares are lower. >> one might say they're not going to make as much dough in the next quarter. and the stocks are rising. >> that was a thinker right there. >> i love that. >> in the stock -- if you're in the stock, 150 is a key level. if it can't hold 150 you're going to have problems. i think in this environment you have got to have growth and this is not happen. >> that was a crumby joke. >> crumby joke. >> next up, shares dropping on
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the earnings. >> home earnings are the lowest. anything associated with real estate or home is going to be hammered here. obviously had a good day today. it's going to make a lot of dough. it's making a series of slightly higher lows. i think trulia is buyable here. >> i think he didn't mean to do that. next up, dream works, a net loss wider than expected. tim. >> let's just say this was a bad dream. >> people are losing money out there and looking to us for guidance. >> these were snoozers. the issue is here is a lot of the guidance had been there. these numbers were in line at 14 times.
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already down 25% year to date. everybody knew these things were stinkers. potential up side for these guys. i wouldn't run out of this one if you own it. >> and seagate. pete. >> this is an interesting nape. when you're talking about what's been the rotation area, they have all been going to old tech. seagate is in that category. when you look at this quarter, they beat on their earnings. i like this name. i think this name along with western digital, i think these names are up trading single digits pes. >> could file for the ipo. if the valuation is high, could that help lift the struggles internet sector? tim, you have a unique insight.
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>> yeah. i'm involved in some stock. and the valuation we're talking about is around 155 billion. which is a fantastic number if you're looking at this as a ripple effect. if you look at some of the other ways to play it, there are ways to do this, i think you ultimately have a valuation for the entire sector that helps. i don't think the place is being painted with the same brush. allibaba is best of breed. these guys are a number one name. >> your looking at a potential $155 billion. this is not liquid. >> right. >> in your estimation, when it's more liquid, it could actually hit that $200 billion people are talking about. >> there are a lot of investors that own this, especially in asia. they want to lighten their load. some getting exposure off before
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the ipo. when you get a sense guys are willing to sell at this level, maybe these a reach for the stars. wherever these things trade hands is some benchmark. if you buy this ipo next week, you can sell these shares and have instantly qu liquidity. three months ago the whisper on this was $125 billion. things are much stronger. >> does this make it exciting, the trade off of that? >> once it trades. >> right. >> if it's near the $155 billion you're talking about, yahoo, some of the names connected in some way, shape or form, are they not great ways to actually try to be a part of this alibaba? >> there's nothing new about this. at $155 billion, alibaba, yahoo
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to me is a $45 stock. 3580 is where it closed today. if you look at the earnings for alibaba was fantastic. what's happening with our internet stocks is what's starting to happen over there. i go back to some of the names. ten cent and buy you are two of this most important companies in the world. 30 times growth at 28 to 30 times earnings is as good as you're going to get. i like baidu here. >> coming up, move over ebay our traders are fired up over ama n amazon. spending concerns have pete
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worried. it is the street fight after the break. plus we have got the latest from the twitter's conference call. the shares are down more than 10% in the after-hour session. could it cross into the $37 range? we'll see.
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let's go to dom with noodles and company. >> noodles earning 5 cents a share. this on sales of $90 million. light of expectations. noodles shares down about 7% on failure light volume. just about 11.5,000 shares have
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traded. back over to you. >> thanks, dom. brian, do you have a trade on this? >> not really. actually i think -- this is a tough one. you can only trade it technically if we can get a bounce above 35 and it closes above let's call it 36 tomorrow. then you might say they shrugged off the bad news. for now stay away. >> this has been a sideways trade for six months. these numbers are more or less what this company had expected. i don't think you run out on this one either. >> let's talk amazon shares rising slightly today. taken a beaten since last thursday. should you jump in, too? time for street fight. 90 seconds to make both cases. >> we could have extended that chart back to 2008. you would have seen a stock make a move from $44 all the way up
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to $48. it would have increased 1,000%. people were concentrated on revenues, not profits. now we're concentrated on reverse. that's not the case. services up 44%. that's where their company is going, to the cloud. as tim said, these guys are best in breed. if you want to own this name, you're buying growth. they're prepaying for future growth. if you think that rotation is per peptial rotation, don't buy amazon. i think the issue is the fact that i think the environment right now is everybody is looking for growth. i don't know necessarily outside of revenue and they are growing the revenue nearly $20 billion. but look at profits, the profits aren't there. margins are too tight. look at the shipping, those costs are incredible. that's starting to eat away at things as well. you start to look at where
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they're trying to go. they're trying to go to china. there's crazy competition over there and there's crazy competition over here as well. when you look at apple and netfl netflix, there are all kinds of competitors. they are growing on the revenue side but the profits aren't there and i think that's going to be a focus over the last month and the rest of the year. >> you mean other companies that have grown revenue over 20%. it's a great place to be. think about it. if you're growing revenues, it's a great place to be. >> what are their margins? it doesn't matter at this point. >> i think it finally does. >> i hear you. but margins on the service business are die nynamically growing. you can always pull in your expansion. >> i think that the david ihorn
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thing is tech. this is an example of one of the bubbles. >> quickly, who do you side with? >> i think the last quarter had something for both bulls and bears. steve makes a valid point, the company is still growing but all be it slower. we're talking about a street fight. which direction to stop going. i would buy it at 250. >> you are a bull at 250 which is not where it is right now. >> $50 lower. >> who do you think won? use #bull for grasso and #bear for najarin. we'll hear from the headlines after this break. and new ways to build jep engine parts and it's turning to none other than 3-d printing. >> how do you turn this metal
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powder into a part for a jet engine? he's going to show us when "fast money" comes right back. huh, 15 minutes could save you 15% or more on car insurance. everybody knows that. well, did you know that game show hosts should only host game shows? samantha, do you take kevin as your lawfully wedded husband... or would you rather have a new caaaaaar!!!! say hello to the season's hottest convertible... ohhh....and say goodbye to samantha. [ male announcer ] geico. 15 minutes could save you 15% or more.
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welcome welcome back to "fast money." we are live in times square. twitter reporting 255 million monthly active users. not enough to satisfy investors. let's bring in cnbc's morgan listening to the conference call. what's the latest? >> right out of the gait on the earnings call we have got ceo saying they're seeing increased revenue growth and it's, quote, particularly gratifying coming off of q4 and touching on some of the redesigns. says next up organizing new contact. but the big thing that was coming out of his part of the presentation was really the focus on mobile and the opportunity there for -- to bring advertisers to mobile. here's what he had to say about that. >> to be very clear, there are few other companies with this kind of reach and we see a strategic opportunity here to assist marketers in making the shift from desk top to mobile.
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>> also, talking about the mobile ad network that twitter and the products its rolled out in the last couple of weeks. and talking about the impact of twitter. the entirety of the mobile landscape. here's what he had to say about that. >> these two pieces are ad exchange and the reach and impact off of twitter are just parts of a larger platform strategy. and you should expect to see us offer even more tools to help content creators. >> okay. so some of the other stuff -- now this call is still going on. some of the head lines comes out of this right now, the decision not to pursue a secondary offering. we know the lockup expiration is next week. reiterating that many insiders and company, executives are taking a long term approach to
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the stock and will not be selling when that happens next week, also talking about gan it -- ganip, they have not closed that deal yet. but commercial relationship is in place with them. higher expenses part of the reason there, they're higher more people. they have got roughly 3,000 people now. back to you. >> thanks for that. twitter stock still down 10%. bob, you know, it was expected they would emphasize mobile. is that enough? obviously it's not in the after hour session. >> the first five or six questions are about user growth, the products, how do you get people more engaged. everyone is very focused on that
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engagement metrics. getting people more engaged. the last thing i'll point out is the timeline views down both in the u.s. as well as international. international about 10%. when do you final turn that around? >> did the q and a session start? are they cognizant the stock is trading such sharply and trying to spin things in a positive way? >> i think they need to address is how do they get more users and user engagement. the pricing being down about 20% and they need a faster growth curve there. they have told us before and said it again, it's going to take a couple of quarters. this isn't just a flick the switch. it's going to take some time but they think they can get there. >> the twitters shares there in
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the after hours session. let's get a glimpse of what the technology trade is about. look it's pretty flat. it doesn't look like it's spilling over into the rest of the tech sector. >> you have got a case where ebay, twitter, very interesting story, certainly part of the momentum story at least in twitter, i don't think in ebay. this is not a reason you sell this market. everybody knows the nasdaq is 35 times. >> the interesting thing is if you look at the xlk, and trading with the s&p 500 they look i identical. look at the s&p 500 right near those highs. >> time for pops and drops. buf big move for lorillard down
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4%. >> what's cool is their new port brand, okay. i'm along this stay. i stay long. >> drop for gogo down 29%. >> you might say their shares hit some turbulence today. >> another one. >> that's worse. give us a trade. >> the trade is stay with this. at&t came in and said they're going to compete with gogo. but there's a lot of competition coming into it. i would stay away from gogo. >> mgm up 9%. >> they earned about a $3.3 billion from there. i would say if you want to see growth you have got to have huge exposure. this fits the bill. >> drop for coach down 9%. pete. >> sales were off. earnings off.
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the competition is beating them right now. that competition is michael doors. other than international right now coach is getting beat up. i think there's more down side. >> and pop for a "star wars" reunion. it's of course, to be reckoned with harrison ford, carrie fisher and mark hamel all app r appeari appearing. being directed by jj abrams and scheduled to open worldwide december 2015. >> it's going to be huge. i have never seen all the "star wars." this is why they own disney. i think content wise this is a big deal. >> this move on to some unusual activity. pete is watching exxon mobile. >> if you go over the last six or nine months which we're doing all the time, energy, energy, energy.
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today it's exxon mobile. the october 110 calls, these calls over 12,000 traded in the first 45 minutes of the trading session. there's an aggressive tone. stock looks like it's breaking out and going to the upside. these options can perform long before that. >> this has been a net beneficiary of that. you want to stay out of the e & p space. if you start to see the market rotate back out of value, get out of chevron and exxon mobile. >> general electrics industrial revolution. how the industrial giant making waves by making a jet engine part. as we head to break, take a look at how twitter's report as a sector. down nearly 11%. stay tuned.
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ge is taking 3-d printed to a whole new level.
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a fuel nozzle. take a look. >> the beauty of what we're doing is what we take what would have been 20 different components that would have been machine, brazed, welded together. >> and it's lighter. >> it is. that's absolutely key in the aerospace industry. for every pound you take out of the airframe you're talking hundreds of thousands of dollars in savings. >> hundreds of thousands of dollars in savings for each pound? >> for each pound. >> how do you turn this into a part for a jet engine. >> the laser beam comes down and consolidates it into a solid component. >> i think there are people out there who are going to think i'm on a plane and there's a jet
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engine part where the layers are melted together and they're not really confident that it's going to stay together. >> the short answer is that absolutely doesn't happen. once we weld the material it's no different than any other manufacturing process. >> where is this industry going? >> i think we're beginning to see more and more applications. the costs will come down. the technology will improve. the part sizes will get bigger. that means the number of potential applications will grow expedientially as we go forward. this will be an impactful technology for industry as we move forward. >> i think people out there oh, well, is it taking jobs away. is this machine taking a job away from a person? >> i would argue that it's true, the machines produce parts unattended but there are still operators that need to work with the machines. and i also would argue this is a
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great mechanism to bring manufacturing more local. >> so all these items have been 3-d printed? >> they have. this is one of the earlier components of a fuel nozzle. that part has now become this component right here. this is half of -- it's sliced in half. but this is half of what the fuel nozzle is starting to look like that will be in the production engines. we went from designs that looked like this, ultimately into design that is look like this component over the span of a couple of years versus what might have been five or six years in the past. >> wow. >> some of the applications can be parts for things like turbines and medical devices like scanners. they have also had parts of hip, hip replacements. there are so many ways in which this technology can be used. this is the fuse nozzle. this whole thing came out of the printer in one piece.
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it's not solid. it's detailed on the inside in terms of -- >> the weight is incredible. >> i have been looking for a fuel nozzle, too. >> there you go. merry christmas, grasso. this container is what you put in the printer. it's the ink. it's basically powdered metal and it's heavy. >> very heavy. i mean i'm incredibly strong but this is very heavy. >> no one else could hold that thing. >> so when you're talking about the application 3-d printing, this is the hol holy gray. >> this is where these guys have a huge competitive advantage. you can see this is how they're beginning to segment their businesses. they're going in places where they know they can do this stuff. i think -- i actually think this
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looks like something you tap a keg with. >> which is, of course, where your mind would go. >> doesn't make me a bad guy. >> no, it doesn't. >> let's talk about options activity going on. in terms of health care, pete, as we have seen for weeks now. >> when you look in the health care space, when you look back at some of the m & a, we're seeing paper every day. >> and mike in texas. you have been looking at pfizer specifically as pete mentioned. >> as he was also pointing out, a day where we saw probably 15% below average. many of the big names seeing well above average. pfizer traded four times it's average daily volume. merck, 2.5%. pfizer was the one that caught my own. this is a company that's going
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to be announcing earnings next week. the astrazeneca news, a big deal. this is a company that moves about 5% on earnings and would need to move about 5% for these to be profitable. that would take it above its most recent 52 week high. >> thanks. check out the website. still ahead, why the most popular item shared on twitter and facebook might end up costing you more in the store. the company behind that data next. it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim
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...and check your connection status... ♪ ...anytime, anywhere. ♪ [ dog growls ] ♪ oh. so you're protesting? ♪ okay. [ male announcer ] introducing xfinity my account. available on any device. cnbc is cnbc is celebrating 25 years on the year by highlights a list of icons over the past 25 years. take a look at some of the people that made it on the list today. >> this is much fun. what we have to do is bring a lot of the fun back. bring back the basic principles. >> we have made more profit and built more shareholder value by
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demonstrating success is best when it's shared. >> the 20-somethings and 30-somethings is something i haven't seen in my career. they are changing the way we live and work. >> we realize that the consumer is king and before anybody else. >> just take a lot of per assistansi -- persistence and a lot of attention to detail and good people around one to make a brand. >> i have always gotten into things and don't give up on them. i become maybe too obsessed. >> all right. certainly a lot on the list. who should have been on the list, do you think? >> think of all the time we spent talking about elon musk. everyone one of these guys was a
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disrepubl disrupt to of sorts. this guy is one now. >> what you see is what you buy. it affects your wallet, too. let's bring in kirt. great to have you with us. the premise is that if grasso shares something with me -- >> a cold. >> not that. a product, i'm more inclined to buy it? >> yes. we found that online sharing, recommendations are as important than brand and price at this time. eight years ago people were not sharing content, not making recommendations we're saying it's more important than brand or price. >> you have got the stats to back that up? >> we have about 55% of the people named. online factor is the important decision. >> is the efficacy of it
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different, facebook versus twitter versus other social media? >> we don't look at it in each specific channel. we look at it more broadly. depending on your product, certain things resonate in different channels. >> such as? >> facebook gets most of the volume. pi pintrest. >> twitter versus facebook? >> as things happen advertisers can place ads in the stream in order to capture the real time nature of that. that's also that -- facebook is just massive reach. so 1.2 billion users. if you're trying to get -- liketive. that facebook is liketive. it's the broad approach. >> thanks kirt.
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we want to get a flash on ebay's conference call. because ebay's shares were down. >> they're steill weaker. why ebay would bring the cash from outside the u.s. back and take a $3 billion hit to just bring back in essence what's effectively $6 billion? ebay is saying they're using this cash to bring back to the u.s. for financial flexibility. they're saying also that they could use it -- they're saying they're an inquisitive company. they also said they're not going to use this cash to finance their stock for purchase program. they want financial flexibility. they're not going to use the cash for stock repurchases but are an inquisitive company. they just want to be prepared and flexible when that does happen. >> thanks for that.
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stay tuned. wgg
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. at twitter shares . twitter shares at their
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lowest level since going public. let's get back to bob. what are you going to tell clients tomorrow after having listened to this call for the past hour? >> one thing, at the beginning they said that there would be no secondary -- clarifying that saying the people saying they won't sell won't be offered. about half of the shares could still hit the market. these the one big thing. the stock trades down significantly tomorrow. >> you know, we lost your mike for some reason. in terms of the lockup. we had a big reaction. up to 250 million shares could come unlocked. >> i think people are aware of it. i think those people can come out. if people think this company is broken, you may see more people come out. bob is saying i would be a nibbler. that is something i think people will start to say at what point
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is enough. it wouldn't be me. >> would you be a nibbler, pete? >> no. i think you still want to be patient. when the knife falls you don't want to catch it on day one. >> our thanks to bob of sun trust and a quit note. twitter ceo will be on squauk on the street. a lot of questions asked of him. given the stock's decline. who won the street fight on amazon? grasso won by a single vote. >> i tweeted three times. >> all right. final trade time. tim. >> yeah, i traded my apple position around 592. i would be a buyer back at 565. >> bk. >> i bought gold today. you should, too. >> amazon. use 280 as your kweezy stop. >> pete. >> whatever that means.
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>> i don't know what that means. >> we talked about it with the unusual activity. exxon mobile. i think it goes higher. >> i'm melissa lee. thanks again. "mad money" with jim cramer starts right now. my mission is simple. to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere, i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to crayamerica. it's my job to teach and coach, call me at 1-800-743-cnbc. or tweet me @jim cramer. is it a major court day or a minor court day?

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