what do we do here in do we need to see dick costolo out, tim? >> i don't think so. i think the company's struggling with just how much they can scale this business. you're looking at capex and sbc. these are things people are very worried about. the guidance for the fourth quarter was the problem. the third quarter was actually very good. the so he the question is how much growth do you need from twitter? i actually think if you look at the chart around here the stock is selling into a range where 36 to 40 becomes a very safe place. now, again, you set yourself a much wider berth in terms of where stop levels would be on the stock but i think twit ser yirnting. >> last conference call it's interesting they shift their focus to total reach as opposed to maus. they want to capture that user that doesn't log in every single -- right. that's a better metric. >> sort of moving the shell around. >> how do we judge this company? >> when you look at some of the numbers they did produce in the third quarter i'm with tim, those numbers were impressive p some of the greth numb

because costolo has changed his tune. a year ago it was the global town square. now it's a place which is a source of content for everyone, for television. he's tried to change the dialogue from how many people use twitter to how many people see tweets. he's also recently launched all sort of tools. >> and there is the decelerating years of growth. margins that are unlike facebook. >> when i look at it i think twitter is plumbing right now. and they are trying to act like it is an application. it is not an application yet. i'm curious what are they going to build on top of the plumbing for twitter that is easy for people to use and actively and engaging in itself. and they seem to vacillate between talking act the plumbing and between thing it is an application are that's easy for most people to use and it's not. >> are they going appealing enough for to use twitter's plumbing tools rather than someone else. >> is revenue side is working. they are killing it there. >> and stability in management too. >> absolutely. but it doesn't matter how many people saw a twee

the biggest question is what is costolo's vision for twitter? for more people to tweet or for those who don't tweet to follow news? investors want to hear the plan to grow the company, both user base and its ad revenue by introducing more ad products. and the final question, does he have a stable management team in place? the wide range of senior executives leaving in the past year, including coo, vp of product and svp of engineering sparks concerns that top execs have concerns about the future of twitter and whether management that is consistent strategy in place it can execute. now the stock is sure to move depending on how costolo and anthony noto address concerns. sources tell me the board will likely give him more time to execute on his vision and while wall street likes noto i'm hearing he doesn't have the operational experience to run a company like twitter. >> thanks julia. when we come back it is no shave november. a month razor companies are coming to dread. especially gillette. now the question is whether it's really hurting the botto

coming up did costolo do it right with investors?> and sears is pulling out all the stops, in canada at least. >> well the sears move mike murphy didn't see coming. more half coming up next. today could be the day. the day we give you hope. relief. a cure. today, we believe every life deserves world-class care. as one of the top four hospitals in the nation, over 100,000 people from around the world come to cleveland clinic for care each year. and we're ready for you with a second opinion or a same-day appointment today today today and everyday. call today, for an appointment today. for tapping into a wealth of experience... for access to one of the top wealth management firms in the country... for a team of financial professionals who provide customized solutions... for all of your wealth management and retirement goals, discover how pnc wealth management can help you achieve. visit pnc.com/wealthsolutions to find out more. >>> coming up, money drugs and gambling. it is the big three. and it's been one of the biggest debates among i

what dick costolo laid out get -- ifwas we don't we don't get all the users we are expecting, we haves to reach people. hang able to embed tweets in news articles where billions of people will see them, new third-party apps they are exploiting -- a are exploring. feel like anat about-face? the last time we heard from dick costolo was a few weeks ago and his sole focus was increasing the user base. thus the lord two weeks, we've got other alternatives. you said in your book that management is schizophrenic will stop her >> that is one of the -- you said in your book that management is schizophrenic. >> this to my eyes is a bigger problem than the user growth problem. from book, i talk about day one, literally the day twitter started in march of 2006, it was a free-for-all. there were fights between the cofounder and -- between the cofounders and one by one they have pushed each other out. since the company went public, there has been a lot of turmoil. the cfo and chief product officer -- i think what dick showlo needs to do to investors he is series is take control of that issue within

costolo needs, they nude nee management there.roduct is really good, if you think about it..3 i love it. it is interesting way of keeping abreast of news. it is a good productt how do you translate that into money? i think they need to get smart people in there. >> so was -- >> what? >> "cosmo""com. great product, great idea. >> not as good as this. tracy: everyone had a problem with facebook when it first came to the forefront. mark zuckerrerg has this live q&a. this kind of blew my mind. you have the opportunity just about anything and people asked him, why do you always wear the same gray t-shirt? come on claim. fielded questions like that and first q and a he likes the look. he doesn't have to think about his wardrobe. >> that is bob greifeld. >> people asked him about the movies. did it huut his feelings. he wasn't portrayed properly. yadi yada. charlii if you could ask him anything, what would youuhave asked him? >> how much of a role does sheryl sandberg really play in the country? is she is the defacto ceo? i think what i

they blamed costolo and management for everything. that's when you want to start to get into this name because all they have to do is one thing right. now you can argue whether or not this is sustainable. half the people i talked to are impressed with the presentation. that's it. imagine if they actually did something besides put together a nice presentation. there's a lot of value. a unique property. almost a monopoly. at the very least, it's a great buy. >> more than 500 million users who are not logged in. they are saying they can -- that that's valuable. >> at a certain level it's valuable. i think i'm not sure but i think you can trade it against 40 bucks. just had a monster volume today. 50 million shares. a huge move to the upside after trading below 40. made a base consolidating. we've seen moves where the stock has traded down before. then a big ramp up. you see it again here. they killed zuckerberg, larry page back in the day. now those guys are geniuses. >> the swing in sentiment. it was a week ago that article came out. ev

when ceo dick costolo and anthony noto take the stage, three main things users want to see. what is the plan to rev it up again? and second what is the plan to grow revenue? and third, with massive upheaval in the management ranks, do they have the team to execute its strategy? down 38% this year. we'll be listening for for the vision investors want to hear. >> julia thanks. josh, you have own the stock since day one. >> yes. >> what do you want to hear? >> i think there is a lot good happening that is not getting enough attention. specifically the efforts of the adam bayne, he is the head of global revenue. i'd really like to hear what he has to say. the one thing twitter has done pretty well is not user growth or any of the newfangled metrics that analysts tend to focus on, is they have done a good job making money from the ads they are selling. so bayne's stuff will be interesting if they get to that. if they make that a big part of today. i would recommend they do. and i think that's really what serious investors want to hear more about is dollar amounts. keep in mind ba

and back real quick to costolo and twitter. he outlined had metrics for his departure. very strong goals. achievable in the long-term. in the near term, growth trends are decelerating. he'll never be there to see the reality of those goals. >> should john chambers be on the list? >> i think john chambers is a glaring omission from this list. >> he just gave a quarter, cramer said best quarter i've seen from chambers in a long time. >> this is a stock gone up 35% in the last ten years while the xlk, the tech sector has gone up 96%. don't tell me it is because cisco is big. apple up and microsoft up big time in the last year. and when you look at cisco, ice essentially taken a great business and turned it into a compensation machine for the people that work there. he's paid himself 112 million since 2007. they have bought back 360 million shares but also only had a decrease of 60 million from the float. a lot of that is stock option issuance papered over. the stock goes nowhere. and people are not happy and it's time for new leadership. >> how could you have a list of the

. >> i spoke with dick costolo and talked about the management evolution, what he calls it.ake a listen to what he had to say. >> management teams grow and evolve and change over time and that's always the case. i love the team we have in place. we have developed tremendously does across the company. >> sarah, what's been your impression of morale at twitter, culture right now as all of this has been happening? >> people want to rally around a solid direction. when you have a lot of changes in management, it's hard to know without direction is. of course, twitter says we have a plan. we've hired daniel graf and it's going to roll out to see these changes but we've yet to really see from the consumer side what that looks like. there has not been that much that we've noticed as users of twitter that has changed. it will happen. until it does come a investors are still going to be a little skeptical of what goes on in twitter products. >> dick costolo is incredibly well regarded and incredibly a lot of pressure on him right now. why should we not be concerned about all of these

spokesman said the stock sales were in accordance with a trading plan to diversify kosovo's invest -- costolo's investments. this time, in retail its gap that is struggling to boost sales. it had a 5% drop in sales at its name stake -- namesake store, the gap. this comes as there are struggles and leadership changes. the numbers are in with alibaba's first bond offering. the chinese e-commerce giant has race eight million dollars. earlier, it was said that alibaba had $67 billion worth of bond orders, about seven times the event that were eventually sold. to our lead, it has been a really rough ride for googler --uber this week after an executive reportedly suggested snooping on reporters. now it has caught the eye of lawmakers. one lawmaker sent a letter asking about their practices. and he said he was concerned about their god view software giving them the ability to track the drivers. her said he would respond in the coming weeks. it also wrote -- uber said they would respond in the coming weeks. it also wrote a blog post. i thought it asking how uber should discipline and neil michael. -- e

dick costolo. up next, t-mobile c.e.o. john legere joins us. we will be talking about the uncarrier's huge subscriber growth and whether it is still an acquisition target. ♪ >> welcome back to the best of "bloomberg west." i'm emily chang. t-mobile's uncarrier promotions are keeping the new customers coming. they added 1.4 million postpaid subscribers in the third quarter and boosted its full-year forcast. however they posted a $94 million loss as it doled out subsidies and price cuts to lure customers away from rivals like at&t, verizon and sprint. for more on the state of t-mobile, i spoke with c.e.o. john legere who just marked two years on the job. take a listen. >> it is two years since i have been here. from the day came and i had extremely high expectations for this company mainly because i saw the brand and i saw the people and i saw the competition, as inept as they are, and i knew there was a great possibility for the business. a couple of items you missed in your introduction. the big word that i was here with the team talking about

when we return, twitter ceo dick costolo feeling the heat.'s investor day just a few hours away. ahead of that, we'll talk with walter price about what the company needs to do. we're back in a minute. act i. scene 3. open port twenty-two-oh-one-seven on the firewall for customer db access. install version two-point-three of db connector and ensure verbose flag is set in case of problems. (clapping sound) isn't the cloud supposed to make business easier? get the one that can connect to the systems that you already have. today there's a new way to work. and it's made with ibm. there's a difference when you trade with fidelity. one you won't find anywhere else. one-second trade execution. guaranteed. did you see it? in one second, he made a trade, we looked for the best price, and the trade went through. do the other guys guarantee that? didn't think so. open an account and find more of the expertise you need to be a better investor. it's in this spirit that ingu u.s. is becoming a new kind of company. one that helps you think differently about

dick costolo is under a lot of pressure as i said. and that's a volatile company in a lot of ways. there's been a lot of change and of course there are questions whether something will happen there. and eventually if they don't show the numbers. it will. >> i was struck yesterday by spencer rascoff who's been a real proponent saying he didn't think you could get the -- to 5%. >> they have challenges. they are doing well in certain ways. some of the advertising is working really well. and again as i've is said before, is there a possibility it doesn't remain an independent company? is there a way to get growth? can they improve the product? i think it goes to the product 100% is they haven't gotten traction there. and that's why you see the volatility. >> meanwhile, facebook as re/code has reported is trying to throw more stuff against the wall to improve its product. you reported on some of the new language and the privacy agreement and how that could pave the way for facebook's ambitions in payments and location-based ads. do you get the sense those are near term goals or just lay

dick costolo is brave. the business is getting better and the stock is really expensive.aybe the stock continues to go down as the business continues to get better but fundamentally, they will have to have a better business to support any kind of stock growth. >> why does it seem so much faith has been lost in the twitter senior management? journal"ll street these goes after them. >> ouch, that's rough. >> when you have a job and you and you know how difficult the company is and you know how match changes are going on behind the scene and you wonder have been everyone in the world not know how crazy this places. i worked at jobs like that. people seem to know what is going on at twitter. it's a difficult place to work and has tons of staff turnover. they have not had a product line that can appeal to lots of people and that will ultimately be the success for this company. those changes -- the staff changes make it harder to do. >> cory johnson's last appearance on bloomberg television. media is notsocial the only thing, players are losing interest in flagship games. ♪ big

statesuite has been in a of near constant turnover with pressure heating up on the ceo dick costolo, joining us now leslie picker from new york. let me start with you. any sort of big reflections looking back on the excitement of that day a year ago on the new york stock exchange? >> it was excitement. there were so many people on that door just -- floor just one year ago today. those people who received allocations on that day are the ones who benefited. the people who bought after the first day of trading, depending on if they are still holding it, did not benefit rate it's interesting how far the sentiment has come from that first day when there was so much hype surrounding the ipo, so much excitement surrounding the company. after a couple of earnings reports and numbers showing that user growth is slowing, the sentiment is not quite as exciting. work as of you and your a business analyst, not a stock analyst. i know you talk to people who care about the stock. what is the feeling around the stock right now is that divorced from the business? >> i think the feeling around the sto

dick costolo trying to answer some criticism about flip-flops in strategies.around in upper management. no real news though they see. >> and intercontinental hotels. we brought you about news about the hedge fund activist pushing the company to consider a merger with another company. we're just getting word that company's responded to the hedge fund saying that that board maintains active dialogue with the shareholders and has considered and regularly considered all options for value but it mans attain it is the best interest to be a stand alone company. >> be ware that oil is lower again today. four year lows and that has been more of a an anchor around equity's heels. today stocks have managed to buck that troendend to a large degree. gnat gas is the one exception because of all the cold weather. >> high of 16 in hometown of denver wednesday? >> i saw 10. and i think it's going minus 10 to minus 0 in some parts of the country. that's it for us. over to wapner and the fast money halftime. >>> welcome to the halftime show. let's meet the starting line u. pete

so this is the opportunity for dick costolo the ceo to say here are the changes we're going to make and that he can actually pull it off. >> finally br you go nick, your latest piece looks at the moral issues in silicon valley. walk us through that? >> i wrote a piece how thankful i am at thanksgiving for all the wonderful things for family and friend and son and also some of the things the tech companies have given us. uber and free al mail and all these things that we've to deal with in the past that aren't great experiences. but what i notice is i don't think they are actually that grateful for us. companies doing things that aren't ethical. and we've seen wit uber. and google and facebook doing tests on users and all these different things. and i noted that i think we're at a point where either the companies have to kind of grow up and start acting more ethically or we're going to see regulation happen. >> i see a real parallel to sports. i mean you will do as much as you think you are allowed to until you get slapped on the wrist. >> it is interesting because when you look at the s

dick costolo,

on investor day ceo's dick costolo easaid. >> we're going to add significant -- it will be the beginning of a steady cadence of improvements to private messaging functionality within twitter. >> what is he looking to buy for twitter? maybe a messaging happen. >> so this is obviously the more interesting part of this overall story today. the new news at the top. whatever. who are they going after? >> good question. somebody that increases, or a company that increases the functionality. that gives them another dimension. may even be an ad company. web adline because they need help there. >> is it critical they make a deal? >> i don't think so. but i think it would be a defensive move like a snap chat. because when you look at instagram, what is that? sharing pictures. facebook recognized quickly that was going on a real problem if they got away from them. now i think these guys are a messaging service. they have got defend that turf. and i think they do by going after snap chat. that is who i think is in the cross-hairs. >> the reason jon's argument makes sense, a there is no love lost bet

costolo is pushed out, the stock gets 5 to 10% pop that day. so i wouldn't want to be on the short side of twitter. the other stock is ibm, judge, write think ginny is wearing out her welcome at that company. >> i look at the margin expansion. and it is different. this is not fab facebook. the engagement factor. as the news feed. >> what i can't find interesting is we can't discuss one without discussing the other. >> it is always put into the same thing. many of the days of the ibm and hewlett packard. in this case they are much more different than similar. but both social media. past that one is a news feed and other is all about friends and that type of engagement. but the engagement factor f they can get that, this down 50 percent from where it was. tremendous upside potential. >> and i've been consistent in saying you kind of want to own a package oar bundle of these names. they are going to be volatile and sometimes one quarter, one company does well and the next quarter the other is going to do. so google, facebook twitter is actually wh

this year dick costolo has replaced the coo, the cfo, the head of engineering and head of products.ere's emily chang. >> from day one. i have always said, and i think that said this recently, but you know, twitter needs what it needs when it needs it. i have always thought of twitter as a living thing. it needs who it needs when it needs them to guide it. that is really what the job of the executive is. just guiding it. it has this life force of its own. >> well, as we have been discussing, i sat down for an exclusive interview with the theer and ceo of aereo, service that filed for bankruptcy last week after the supreme court judge that their service violated copyright laws. he gave me the true underlying reason that he thinks the legal system exists this way for his company. was think that there novelty, that was a big issue. if you were new or different, you must be scary. obviously i have no idea what goes on inside. you know, novelty scares people. i thinknd of the day, we need to step back and say -- what did this company really do? it was opening up a marketplace and we were

dick costolo reigniting positive sentiment on the street.

wall street journal" out with a scathing piece on the company's management saying twitter ceo dick costolohat do we do here in do we need