tv After the Bell FOX Business May 14, 2014 4:00pm-5:01pm EDT
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pretty interesting. talking about fannie and freddie yesterday, lower rates. dave: by the way, we will have the flow dick bove coming in. liz: look at this, dow jones industrials losing about 100 points. it has been a tough day for the market all across the land. s&p closing near session lows, down nearly nine points. the russell got hammered once again, lately it has been in charge of the caller on the dog of the market. dave: is it catching a falling knife? time first to run you through the front page headlines. producer prices surging in april also spoke to the market, rising 6%. the biggest gain in 18 months, one of the biggest drivers was a jump in food prices.
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liz: macy's is reaffirming the sales and forecast for profits after business picked up in april. following slow winter sales. increasing the stock buyback program. dave: shares of the equipment giant deer fell after the earnings today. dropping 9.5%. as equipment sales decline. liz: citigroup has fired 11 more staff members stepping up the investigation into alleged fraud in the mexico unit for senior executives among those let's go. dave: chinese police have charged glaxo smith kline business with corruption. order the payment of bribes to doctors and hospitals in order to boost sales. saying it is cooperating with authorities. stay tuned and fasten your seatbelts. "after the bell" starts right now. as we wait for cisco earnings,
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let's get to the market. why is that not good news? >> we're looking at more of an arbitrage money out of stocks going into bonds right now. i think what you are really seeing here is an overall profit taking market. it was very light today, the bonds just got going yesterday, they continued today. they are back up toward resistance levels and i would not be surprised to see the rates rise a little bit from here. liz: it would have thought the utilities would continue to show strength, but on days when equities look good, others don't. >> when you look at the overall sector, they had some pretty
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good movement because it has been a big shift out of money into a lot of the safer stocks, so now people are trying to buy on the dips and get involved in some risk. this fall move today was more of a very subtle take a little bit of profit off the table and see if it is really still a buyers market, which it probably is. dave: charlie brady told me this, i told him i was steal his line. i have to give him credit, he saisays it feels like a spring s being wound and which way it goes is anybody's guess. is that how it felt on the floor? >> really you are starting to see a lot of mixed messages. how did you see the bond yield go down and yet equities holding on? how is it the market is near record highs because we rallied over the last weekend a half, how is that we are there, yet
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retail sales came in disappointment. gdp growth is minimal. there is some sort of disconnect. while i would love to see wall street, main street, everything is on the road to greatness, there certainly seems to feel like we need to take a little bit of a breath at this point. liz: haven't we already in a way? you have the russell that has pulled back, even the nasdaq. nicole: and the nasdaq as well. you hit it on the head, really why are the small caps at the nasdaq technology participating? don't we need the financials to run this market to the new highs? you saw financials down five, six, 9% for 2014. he would say you need the financials to continue with this rally. dave: there was a concern when there was was a pullout invests
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would just are a more money to buy. is that still going on? >> we are at a high of 2006, 2007. it is a problem. people are being forced into the equity market. when you are borrowing money to get in here, you know what will happen, you're always worst imac forced to sell at the worst possible time. eventually i think it will create part of what i am looking for. although the rates are cheaper, the banks aren't giving the money anyway, so how can the average guy buy a house? dave: have used in the margin debt firsthand? >> that is something you have to be really careful four. that is something you have to be really wary of.
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dave: i have to jump in, we have the cisco numbers, adam shapiro, go ahead. adam: it is a beat and a beat. revenue came in at 11.5 billion, thithe street expecting 11.36 billion, and writes now cisco is trading up after hours almost a little over 3%. dave: let me just go to cme for one second. todd, looking at those numbers, good or bad? >> i think they are great. i'm happy for john chambers. they will do their best. they have a lot of headwind in front of them. i think ther there's a lot of competition but i'm happy for cisco because that is a great bellwether. maybe things could be turning around because they are major player. if they will beat on top and bottom, i am happy for them. liz: non-cap $0.51 per share.
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revenue also a beat at 11.55 billion, exultation than .36 billion did let us bring it to delve into the numbers first on fox business, john chambers. chairman and ceo their first on fox business interview. you had real problems with all kinds of issues with her it europe waning in all kinds of other problems, looks like like things are looking better. give us a sense of what surprises you the most in a good way about these numbers. >> first as todd and others have said we beat almost every category. 200 million above expectations on revenues. gross margins were very good. a lot of people had concerns of the gross margins. we generated 3.2 billion in cash from operations, we gave 3 billion back to shareholders, a billion in dividends and 2 billion in repurchase.
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we had good numbers in the u.s. growing 7% to answer some of the questions earlier about the u.s. economy. usually a pretty good bellwether as goes capital spending enterprise and commercial counts so goes the economy two or three quarters later. these numbers are pretty good. we saw a little bit of balance including collaboration and security coming back from areas that slowed a little bit. overall a very good quarter, very good step turning to growth. liz: things look pretty good in the united states and you say this is an opportunity for people to interpret capital expenditures on half of many companies who need your equipment are now spending. the u.s. first and then four and spending. where is the strength. i would love to get some real granular information about where you see the strength. >> a very fair question.
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the strength was well balanced across the entire country. u.s. enterprise accounts representing 24% of the business in the americas grew year-over-year at 10%. anytime above mid-single digits that is a good indication of economic growth several quarters later. witwhat is more interesting is e number of $1 million deals increase over 25% for q3. our commercial business small to medium business grew at 10% and we saw growth in public sector from state and local government, federal was down a little bit of 4%. the u.s. was pretty well-balanced. the u.s. feels good to us. does not mean we will do back flips going forward, but does indicate what most my counterparts still be a two and half to 3% gdp growth for the rest of the year.
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liz: let me get to china. what do you see now? >> china was down 8% this quarter. you look across emerging markets, those were market a year ago growing in the mid teens. we were the first one to the economic downturn, it is unique to cisco come it wasn't. everybody followed to quarters later. today we see it leveling out. down about 13%, emerging market in total down about 7%. we are still several quarters away from seeing that turn up. liz: really internal leaders of what is the internet business. you start to see routers and switches equipment waning just a bit. you have worked to diversify. everything from cloud businesses for example the wearables, the internet of everything.
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is that start now to really bring in revenue yet? >> yes, it is, liz. when we entered cloud people said we wouldn't have the staying power, yet this quarter the business in cloud and data center grew 30% and we are the undisputed leader in terms of servers, in terms of growth year-over-year 29 to 30%. in terms of the internet of everything, we started on this six years ago. i would have to buy your users a drink to get them excited. today we have boar board of dirs coming through, country leaders from united kingdom to south korea, mexico, israel, it is beginning to really take off. what it does is it speaks to connect in the unconnected.
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if cisco can do that all the way to the cloud, as you said were all the way to your home or devices on your body. liz: i want to get to guidance. can you give me some about the current quarter, revenue, sales numbers. >> i would love to give you the guidance but i want people to tune in and watch what we are going to do in the next quarter. just to give you a hint, better than one. i like the momentum we saw in q3 and it carries over into q4. liz: i'm dying to know where it goes. if you companies can get this right. at the moment people talk about apple tv, that didn't happen. google tv. amazon is in there. tivo has a box of "new york times" calls the dream, the romeo. that is a positive, but what are you guys doing? where do you see to be the next
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couple of years? >> i think tv will transform dramatically probably faster the next five years then it has since its introduction into tuesday. the image will go to any device, watching on your smart phone, your kids will watch on the ipad. you will see video scape which is our cloud solution where we served 300 million tv users, bring that capability to what you enjoy most. for me a west virginia football game watching it with 20 of my family members from all over the country or for those misguided north carolina fans watching today, when i watched duke beat north carolina in basketball and have a lot of fun back and forth. liz: i know you have a conference call with all the analysts and anybody else, siu thank you for coming to fox business first. john chambers, it is great to
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see you. >> i look forward to seeing you next quarter. thank you for having me on your show. liz: this is an optimistic picture. moving higher after-hours. dave: good stuff. treasuries were rallying the 10-year yield at the lowest level in six months. why are investors flocking to safety as the market rallies? will this be a canary in the coal mine? liz: timothy geithner release of the book for the key division made during a financial crisis. sparking controversy. they want that because that spark sales. bret baier sitting down with tim geithner. joining us with more on the very important interview. dave: the administration backtracking to make more credit available and not to wind down the mortgage giants.
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is this a step in the wrong direction? we will have interesting debate on this. daveliz: should we increase our scale back the government's role in the housing market? we will get some of your answers coming up. ♪ ♪ [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor.
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david: shares of jcpenney fell today, a day ahead of earnings. liz: tough time for jcpenney as usual. let's head to nicole petallides. she is on the floor of the new york stock exchange. >> this seems to be the story, turn-around story everybody has been rooting for especially for the shareholders yet we're still waiting, right? today you got some news out and tomorrow's earnings report. we'll see what the company delivers. that being said, deutsche bank basically did some checking, some channel checking and they're findings today were not good news, basically saying in their ideas that they have to do deeper discounts for mother's day. that's terrible. more discounting? how does a company make money, right? that is weaker on the margins. and then they may have an inventory buildup, right? so that would mean slower traffic during the winter, fewer shoppers. we'll see what they bring but this stock is down over 50% in the last year. david: they have been hit hard. thanks, nicole. with markets falling from the record highs yesterday and 10-year treasury yield falling to the lowest level since october let's bring in our market panel.
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hank smith, haverford chief investment officer who remains very bullish on equity markets. he is avoiding treasurys. michael muse yo, he is advising clients to have a balanced portfolio, stocks and bonds. kevin james. fixed income guy. he is watching the disconnect between the stock market and 10-year treasury. kevin, let's start with you. nobody knows the bond market as well as you do, when you see rates falling this low, what does that mean to you not only about bonds but also about stocks? >> it's interesting, david. this is more than a short-covering story. this is fundamental story that's going on. one of our guys said we spent first part of year boarded up windows waiting for hurricane inflation and only not to get it and see sunshine. this is good for bond guys. u.s. treasurys yield basis versus germany and france and italy and spain, there is pickup
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yield there and there is a light given yield for safest credit in the world. with the stall in the equity market overall you're see people come back to the bond market. it is not so surprising. liz: kevin, i love you, stall in the equity market? we have records. i'm bringing in hank smith because hank's pretty bullish here. do you see a stall? we see a stall in the russell 2000 but that is after pretty decent, near uninterrupted decade of bull runs. >> first of all, liz, kevin has it exactly right with treasury yields and competition around the globe but, yeah, 2014 has been about consolidating gains from 2013 and thank goodness we didn't stay on that same trajectory. otherwise we would have a valuation problem which we don't have. and at the same time, the market has taken care of a few of the excesses that did exist, namely in biotech and social media and some other very high p-e stocks.
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so, i think it has been a very constructive market here and we are, we're very confident that we're still in the middle innings of a secular bull market. david: michael, what about growth? we just heard cisco in fact reporting that they are seeing growth in the need for their services anyway. on the other hand we see gdp figures come in very low. we may have had negative numbers for the first quarter, when people are hit by inflation. we've got inflation numbers today. food just month over month is up 2.7%. so if you're spending more money for food and gas you have less money to buy other things that companies rely on? >> yeah, that's true. we think that one of the potential positive catalysts could be revisions to the q1 gdp print. cisco, john chambers, who you were just speaking with and ceos of other companies that we invest in seem to be pretty confident where we've come or where their businesses have have
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come since the first quarter in terms of orders, backlogs, things of that nature. that is the question is growth. 60% of the companies basically beat or met expectations for q1. so earnings growth is still there. the question is going forward is, is the growth going to be strong enough to, to merit the appreciation in the market we've seen and hope to see in the future? liz: kevin, which part of the yield curve would you most recommend people get into at this point? every person and every portfolio is different. say somebody is coming closer to end of their working career. they want to hold on to some of their gains they have had and want to preserve capital and also want income? >> well, you know, liz we fully believe that the economy is going to continue to work its way out and it will become robust again. therefore you don't want to get stuck too far out on the duration curve. over lack of inflation currently and looking forward throughout the globe, lack of inflation it's hard to miss out on a yield
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opportunity by going out 10 years or so. when we start the year we thought we would shorten durations. if you were at 30, come to 10 and at 10 come to seven or five. you don't have too much exposure when this does turn and yields go higher and rates do go higher. somewhere between the five and 10-year area continues to be the sweet spot for us. david: before you completely poo-poo inflation because again it is taking money out of people's pockets directly so, look at a company like mcdonald's which seems to be perfectly positioned to take advantage of whatever comes, lit is higher inflation or stagflation because they are feeding a market. i'm not surprised, hank, you're picking mcdonald's a good bet right now. >> that's right, first of all they can really take advantage of these low yields, borrow, at very low cost, buy back stock, increase dividends. they have hinted at doing this. it is one of the reasons the
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stock has done fairly well in the last few months. but it's a classic defensive, steady eddie, that if you're concerned about the direction of the economy, here's a company that you can have confidence investing in, regardless whether we have a slowdown and you're going to get a better than bond yield with dividend growth as a nice situation. david: okay. keep in mind, it is at about at its 52-week high right now. so you are buying high. hank smith, thank you very much. michael musio, kevin giddis, good to see you all. >> thank you. liz: former treasury secretary tim geithner bares his soul to fox news's bret baier. he wants to sell a book too but about his role in the financial crisis. bret is here live to tell us exactly what mr. geithner had to say in just a moment. david: tech giants like yahoo! and facebook could be ready to go shopping and snap up most beaten down names in technology, names you know and may have even invested in. which ones?
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david: former treasury secretary tim geithner releasing his controversial new book chronicling decisions he and other officials made during the financial crisis. liz: with us bret baier, host of "special report" with bret baier and bret you got a chance to speak at length with mr. geithner about his new book. dave and i were just wondering, what is the most amazing thing you got from this interview? because he did preside over treasury during the toughest time in our lifetime. >> a few things came out of it from my perspective. obviously he defended the moves that the administration made, that he made but he kind of
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walked back a statement that he made in the "new york times," a piece just recently about his book, where he said that too big to fail preventing these banks to fail, that was misguided policy. that is what he said in the new york types. he kind of walked that back in this interview, saying that you can't definitely say we solved the problem but you can say we made it much, much better and much more stable. there was a lot of back and forth about people reacting to this book. and he stands by a statement that glenn hubbard he says made at a dinner that glenn hubbard, of course former advisor to mitt romney, said we, we know we need to raise taxes. i just, we just can't say that yet. hubbard has pushed back on that. we went around and around on washington insider stuff but we talked about the front page "wall street journal" story that you all will be talking about on
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the show about the u.s. backing off tight mortgage rules in sort of a reversal and i asked him whether this, whether the critics are warranted being concerned that this is opening up the boom or bust we saw ahead of the crisis? take a listen. >> it is going to be a difficult balance for them to strike because on the one hand you want to make sure you reform what is still a very broken housing finance system. so we're never at risk again of those, those mortgage giants or any other, any other examples like that, putting the system at risk. but on the other hand, you know, we have an economy that where unemployment is still pretty high, although we've been growing for four years and the other side of this equation try to figure out how to make sure the economy is getting stronger before we do things that might weaken in the future. that is difficult balance for them to strike. >> but you understand the concerns?
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>> if people are worried about are we going to recreate or preserve the same set of system that helped contribute to the crisis. that is very valid concern, we shouldn't do that we shouldn't do that. what they're trying to do balance need for reform in the long run with the reality we have economy where it would be good if we have stronger growth for a while. that is difficult balance of the they will find a way. if you listen carefully what congress is debating future of this congress, a lot of early stage debates. and they will work through this. this is not rocket science, bret. >> it is complicated. >> it is complicated. it is not rocket science. >> it is not rocket science he said. we talked at length about the role of the fed and how much money and quantitative easing and pumping money into the economy has made, has changed the economy. he doesn't believe that inflation will be a problem and that the fed will stay ahead of it and it won't be a problem for sometime to come. obviously you all know that if, if interest rates go up just a bit, we start paying more
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interest on national debt than we pay for, like, the pentagon budget in a year. so, there are many people obviously here on capitol hill concerned about that. he is not one of them. david: even with interest rates going down we had 2.7% increase month over month in food prices last month there. are a lot of problems. it's a little bit of rocket science. dick bove will be talking about right up. liz: by the way catch bret baier's entire interview tonight on "special report" with bret baier, that is at 6:00 p.m. eastern on the fox news channel. they will put it up on the web too. david: great stuff, bret. thanks a million. liz: some fastest growing tech stocks in 2013 have been some of this year's biggest losers, growth but loss? coming up we'll tell you which of last year's high-flyers have become the most attractive takeover targets this year. you need to know. david: what tim geithner was talking about with bret, the obama administration making a u-turn when it comes to housing looking to reverse postcrisis
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lending standards. is this a step in the wrong direction? could it lead to the housing crisis 2.0? we'll debate that with banking analyst, one of the best we know, dick bove. ♪. i ys say be thman with the plan but with less ergy, moodiness, i had to do something. i saw mdoctor. a blood test showed it was low testosterone, not age. we talked about axiron the onlynderarm low t treaent
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is being revisited. looks like government was scaling back its involvement and winding down mortgage giants fannie and freddie that were nationalized during the financial crisis. new federal financing agency chief, mel watt looks like he is reversing course on that. is that good or bad? let's ask dick bove, vice president of equity research. dick, you've been arguing for some time it would be wrong for the government to wind down fannie and freddie. why? >> well, i think it is pretty clear if you have no fannie and freddie you have no 30 year fixed-rate mortgages. you have no 20-year fixed-rate mortgages. there are not any banks that will make those loans. if you lose 30 and 20 year fixed-rate mortgages you drive the cost of owning a house up very dramatically on monthly payment basis which drives prices of house down. you will wipe out equity on the part of most homeowners in the united states. david: here is what a lot of viewers wonder. don't we want to scale back the government's involvement in the
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housing industry? >> i don't think so. i think we talk about it all the time. if one considers what impact is on their own personal home and what impact is on their wealth, they're going to want the government to continue to stay in the business and to continue to allow fannie and freddie to do what they have done history, not what they did in the 1990s and early 2000s. >> that is the thing, getting fine line. not closing out housing market but not putting taxpayer on the hook for bad loans. that's what we want to avoid, right? >> exactly. the way you do that you make sure that fannie and freddie underwrite their loans. in other words, what they have done, in the 1990s, the decision was made to increase the percentage of homeownership in the united states. the decision to do that to allow fannie and freddie to weaken underwriting standard. that of course led to bankruptcy
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for both companies t led to a disaster. so, the net effect is, what we want is, true underwriting, good underwriting, buying mortgages what happened in the last 50 years. david: can't that underwriting be done in the private sector? do we have to have these sort of weird alien, these government/private enterprises? >> it should be done in the private sector, you're exactly right, david. basically in the private sector the originators of the mortgages should underwrite them properly. then they should put them up for sale to companies like fannie and freddie and fannie and freddie should do their own underwriting individually of each loan. if they think the loan is appropriate, they should purchase it. i think if that happens, then you know, the taxpayer will not find themselves at risk. rather the taxpayer will collect a huge amount of money because the taxpayer today owns fannie and freddie.
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david: at the same time that you're sort of agreeing with the administration and medical watt on this issue of fannie and freddie, you disagree with so-called consumer financial protection. you think some of the regs that have gone along with that really hurt the banking industry? >> let's forget the banking industry and say we don't care what happens to the banking industry and think about homeowners or first-time home buyers because we know they can't come up with a 20% down payment. we know they can't put 50% of their income in the monthly payment for the home. so what the consumer financial protection bureau has done is it is basically wiped away the opportunity for a large portion of americans to ever own a home. and that is what i find to be objectionable. >> certainly sound that way. finally you're not known as a stock-picker, dick, but you say if in fact the housing industry gets back on its feet and fannie does what it should be doing that stock could turn into a
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$20 stock again? >> think about it. if we take, forget my numbers and forget the numbers coming out of places like pershing square or fair home. look a look -- take a look at the u.s. government numbers. they say this company has ability to learn $1.91 a share. 10 times 1.91 give you close to $20 and probability it will sell higher multiple than that. i think it is very likely if the companies were allowed to function as pre1990s, we'll say this is $20 plus stock and i think risk/reward is really good enough that people should reallying a aggressively buy it. david: dick bove, you make nothing but common sense. good to see you. dick bove, vice president of equity research at raferty capital markets. please come back soon, dick. >> thank you, david. david: liz? liz: we've been talking about some high flying stocks out there that had their wings clipped lately. could be facebook and yahoo!
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liz: investors have been fleeing some of last year's highest flying tech stocks due to concerns over high valuations. david: yeah, the nasdaq is down nearly 3% over the past three months. now that these fast-growing stocks have come back to earth will the tech giants, swoop in and scoop them up and buy them and are there great opportunities there? we have crt capital analyst. neil, great to see you. let's get right into it and start with one of my favorite companies because i'm a big user of pandora. who would buy pandora, and if they did would it change the nature of the company? because they have a lot of loyal subscribers like me. >> sure, david. pandora is a great company. they have over 70 million users but the issue growth really started to slow down around 8%. the stock has come in, close to 20 or 30% year-to-date and it is definitely off nearly 40% from its 52-week high so -- david: who would buy isn't. >> we think potentially google
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could buy it. it is one of the higher grossing android apps. google is struggling with its own music service. now that apple bought beats or about to buy beats. i think pandora could be acquisition target for google. liz: pandora would push back. they took the company public. we've been following this one when it was just a stand-alone company and tim westergan founded it through thick and thin. got 70 million users. you don't think they would figure out a way to stay independent? >> you know it is always, there is always an opportunity to stay independent, but i think if the price is right, you know, they might entertain that. liz: let's grow to yelp. yelp has done an interesting move here and there lately and yes, they have come down. those shares have been clipped a it about but why do you say that this is an opportunity for a buyout? >> so yelp is one of the premier leading local op line advertising companies out there. they have over 130 million users
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and over 50,000 businesses that, that subscribe to yelp on a monthly basis. so, the stock is off about 50% from its 52-week high. you know we think yahoo! will come into a windfall of cash with the alley alibaba ipo. yahoo! and ma race is a mayer want to push into mobile. yelp would great way for yahoo! to get into mobile at the same time. david: how much could my shares go up as a result of them getting purchased by google or yahoo!? >> sure. you know, with, with yelp we have a $73 price target. the stock traded as high as $104. there is definitely opportunity to go well above where it is trading at. david: open table, i have to deal with open able. open table is one that has a lot of competition. why isn't it just going to die instead of taken over? >> they're still very entrenched
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with local restaurants. they are moving into cloud services. they are trying to pivot to become more of a destination site than just a reservation site. we think possibly a company like apple might be interested. google might be interested or even yahoo! as well. liz: let me give you, i think yahoo! they have certainly gone in big when it comes to things like that. talk about millenial media. give me a chance on this one who do you think wants to buy millenial do you think? >> we think google, yahoo!, again, the same players could be interested in millenial. the stock has come down but big mobile advertising opportunity. liz: mobile advertising is hot. good to see you, neil. thank you so much for joining us. >> thank you. david: the largest display of robots and unmanned systems in the world is happening right now in orlando, florida. that is where we take you inside of the exhibition to show you some of the coolest robots on display. wow, wait until you see more of this. liz: you can live long and prosper and one entrepreneur's
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recently listed home, yes, it has a "star trek" room. whose is this? we'll tell you when we take you off the desk for a quick tour. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again. i'm j-e-f-f and i have copd. i'm l-i-s-a and i have copd, but i don't want my breathing problems to get in the way of hosting my book club. that's why i asked my doctor about b-r-e-o. once-daily breo ellipta helps increase airflow from the lungs for a full 24 hours. and breo helps reduce symptom flare-ups that last several days
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is live from orlando. steve, what kind of things can these robots and unmanned vehicles do? >> david and liz, basically this is military technology which is being quickly adapted for civilian uses. anything that is either too tedious or too dangerous for humans to do, they're trying to make these robots and unmanned drones do. some i robots we're seeing now will be used for security in this year's world cup. >> it has fantastic reach. it has got grippers. can open doorknobs, things like that and open packages to allow to you look inside. it will carry tools that allow to you disrupt explosives so they can't explode. >> by some estimates as much as 80% of the drones used commercially over the next decade will be used in agriculture. japan is already using drones for much of its crop dusting. david and liz. liz: that would make sense. you're not exposed to chemicals. commercial drones are not even legal. that is always a question, is it
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not? they're still proceeding in making them? >> that's right. the technology is way ahead of the legislation at this point. a couple of real concerns. we saw some small drones with cameras on them which can be used really by your ipad to move about a mile away. some concerns about invasion of privacy with these smaller flying drones. and also, bigger concerns about safety in the airwaves. in the last three years, there have been six separate incidents where pilots have reported they may have had a close call with a drone. so even though a lot of these gadgets are currently illegal, it doesn't mean people aren't already buying them on the internet and using them. david and liz. liz: paparazzi will be first in line. david: that's right. liz: trying to fly drones. david: alec baldwin. watch out. liz: steve, thank you very much. fascinating story. >> thank you. david: science fiction fans, pay tanks. this may be your dream house and it is going on sale. we'll give you an inside look at the trekkie house to outtrek,
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good to know. david: time to go "off the desk." one-eyed hoe couple looks and roads and highways sees something out of the ordinary, an opportunity to generate energy. they have spent the past decade testing industrial strength solar panels can with stand weight of even largest mack truck. the solar panel roads have the potential to create more than three times the electricity consumed by the u.s. at peak installation. their idea already received a couple of round of funding from the federal highway administration. liz: put those out there in death valley. "off the desk," one tech entrepeneur selling his 27,000 square foot south florida home for a cool 35 mil. don't let the classic exterior fool you it is interior everybody is interested in. eight bedroom home, multiple themed rooms and "star trek" style home theater and lounge.
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look at ceilings. you have to love that right? it features a game room that houses more than 60 games dating back to the 1970s. in case that doesn't do it for you there is a cave-themed room, david, dedicated to playing videogame, call of duty. david: oh jeez. we asked you on facebook and twitter if we should increase and scale back the government's role in the housing market. ali wrote in on twitter, the government creates bubbles in every market it is inevitable. of course they should stay out of housing. liz: number one thing to watch will be earnings from walmart ahead of the bell. the company no longer gives monthly sales figures. this gives us a first glimpse into its sales performance. as the world's largest retailer its figures give us a look at the they will of the consumer. -- health of the consumer. they look at revenue of 116.$27 billion. david: cisco after-hours it right now it is up 7% after-hours.
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liz: they beat on top line with revenue. they are giving guidance slightly below year-over-year. but the fact is investors like it. david: watch cisco tomorrow. to see if it holds on 7% gains. "the willis report" is next. gerri: hello, everybody, i'm gerri willis. right now on "the willis report," president obama calls for more spending and higher taxes to fix our aging infrastructure. >> do a better job rebuilding our road, rebuilding our bridges. gerri: but what is happening to the tens of billions of dollars already being spent? our special report a user's guide to real estate. people are making big money again flipping hopes. where there's a will, there is a way. how to score the perfect retirement touchdown with nfl wide receiver andrew hawkins. we're watching out for you on "the willis report." gerri: our top story tonight, liberals
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