deals of the past five years have been above ebita. julie: indeed.ow i want to mention the worst performer in the s&p 500 today, and that is a company that is a spinoff from sallie mae, the student lending company. 11%, and aare down loss of private student loans are costing the company. this is an education that servicer. it reduces expectations for 21 13 earnings and i wanted to mention the second worst performer in the s&p 500 today. it fascinates company down 4.2%. the company's earnings per share of the estimate, but the ceo says the company is struggling with headwinds right now, although the underlying business is dead. so the notion of headwinds and a slowdown in his daily sales growth rate over the past several months seems to be weighing on those shares. alix: good stuff. matt: very cool. angst very much. i want to get a look at the top stories crossing the terminal at this hour. the republic of exploding airbags may be why japanese air tator -- airbag maker kata are recalling the ones that went into chrysler town & country minivans. the pr

you're paying two times ebita for the core business, compellingly cheap even though it's declining. >> that's really what the business is worpd. given the current staej. >> one other company regardless that's selling it two times ebita. >> very rare. >> i don't disagree with you. >> i don't own the stock. >> i think the stock trades in line with what it's subsidiary arearies are worth and makes more sense than trading on its own strategy. sold on its own strategy, then it didn't have other assets, this thing would be in the teens, there's nothing going on here. there never has been. the difference is now the emperor is seen to have no clothes. they talked about returning to their roots and getting back into search. a desktop at best kind of idea. people are looking at this like -- what are you even talking about? and current management has now rounded the three-year mark. so to look at the core business, and say that there's anything worth talking about here, i just don't get it. >> i want to go back to atel here in terms of your picks, you're long google and you're long apple. in ter

trading at about 10 times ebita and granted that's on numbers that are a little dated. say it's 11 times. it can go out at 15 times ebita, or 13 times from leonard green or somebody like that as far as a fundamental story. maybe it's a trade, i don't think it's an investment at this level. >> traffic down, the pricing scandal in new york city. a stock that seemingly everybody used to love. it was in you know, a portfolio in our playbook competition a year ago. it shows you the level of conviction people had about this name and now it's sentiment couldn't be worse. >> the conviction used to be well-founded. this was a company that in a very slow-growth, low-margin category was fast growth and high margin. they were delivering on a quarterly basis, 8-10% revenue growth. could you set your watch by it is whenever you have a life cycle of a growth story. eventually competition catches up. you know it's not like whole foods can keep doing what it's doing so wonderfully and all the other supermarket chains are eating crayons. >> kroger is up 21% year to date. >> and safeway i

even ebita coming in higher. i am also looking at the average monthly active users. and that is a 360 million. twitter is changing the way it accounts for those monthly active users a little bit. it has what it calls the fact follower to get tweets through sms or text message. they are not necessarily on smart phones but twitter is hoping they will move up to smartphones. it is not as the throw to comparable numbers to the past. apparently jack dorsey is saying that he is not satisfied with the growth in the audience at twitter. i am seeing figure for the third quarter revenue forecast of 545 million dollars to $565 million. the midpoint of the that is below what analysts had anticipated in terms of revenue. all of that said, it looks like the shares are performing well in reaction to these numbers. i'm seeing a surge by about 15%. remember, they're coming from a very depressed level. the last time the reported their numbers back in april, it slashes forecast, and that caused the shares to tumble. they fell about 30% since the earnings report. in june we also heard a

about 7, let's call it 31 -- almost 32 times on value over ebita ebita. >> saint jude has an excellentmall device that people like. a lot of people like edwards life science. they have the best one product story but i like st. jude more for the deal not less. >> you like it more? >> i do. they have a fantastic device. when they showed it on air, you couldn't really see it. it made the graphics the executive producer was like make that thing bigger so we can see it but the point was to make it smaller so it had gotten hard. not as good tv but good for your heart. >> watching google 706. boeing is close to a three of month high. >> as long as google says they're not going to china, they're going higher. >> and chipotle is back to 719. >> it's a great quarter. they did plus 4. people are used to much more than that. they also had some huge $0.60 miss over changeover software. the conference call reads as listen no matter what we do because we care about natural game and we only have a few ingredients, they're going to someone else people want to go there. it's a great quarter. the shorts

our attendance is up 9%, so very strong performance attendancewise, revenue year to date up 6% and ebitaage per caps, which is what i think you are referring to, is down a little bit. but you've got to remember, we've had tremendous success in our season sales up 53% on the active base and that affects the mix. overall an amazing performance. >> every park gets a new ride every year. and i think we've got the batman 4-d coast anywheer in texas. what works now, how, you're very empirically driven in what you do. you're by the numbers, what works with the laser focus on being a regional player? >> what really works is providing something new for our guests every single year. in every single park. they love, you love innovation, i love innovation. we do that, but then concurrently we're working extra especially hard to make guest experiences the best they can be. so interactions with our employees. the food they're getting. you know all of those matter and our guest satisfaction scores are at an all-time high. >> 39,000 employees, only 1900 of those are full-time. how are you affected by mi

targets is the revenue is going to increase over the course of tyears, 4% more than expected. 60 times ebita. now in a we see the growth trajectory is much faster. let's put a 75 multiple on that. it sounds crazy, but that's what you're doing, when you look at the stock this is something you don't want to sell i don't know that -- >> unless you're icahn and booking $2 billion worth of profit. >> exactly. -day believe there's a template and the first template was apple. it surrounded sentiment and fundamentals coming together and now the story is netflix. fundamentals technicals and sentiment coming down collectively. what's the next story going to be? i believe it's facebook. >> let's bring in btig rich greenfield, one of the most bullish analysts on wall street. he has a sz 136 price target. >> for how long do you think can this, the lack of earnings be overlooked by wall street? or is there eventually going to be a come upance, the like that we saw with amazon, albeit briefly but it did hit the stock pretty hard when investors got fed up. what's to say it doesn't happen again here. >> what

within certain parameters and we've talked about our desire to operate the company at about 40-41% ebitaare making substantial investments, we do want to be ready for ott, if it happens, which i think a lot of people believe it will. if it has adoption. which i think a lot of people think it will. we want to be ready in terms of the capacity there. we are fiscally responsible. but we're investing heavily if our infrastructure and also in our people for innovation. so we can deliver better experiences over the top and even so we can make it be lower cost for the ecosystem as a whole. and of course we talked a lot about the call about the investments in security and how that's paying off. and how the very bright future you think for security being delivered as a cloud service, and enterprise networking in the future. >> tom leighton, ceo of akamai, thanks so much for joining us. >>> when we come back, alibaba taking aim at amazon, more on the company's billion-dollar cloud bet. i thought you said you were gonna test drive this buick first. i am test driving it. for 24 hours. where's the sa

the ideal world is a growth company growing 20% a year buying at five times ebita. >> coming up, marioli talking liquid assets, we know he likes bourbon. stay tuned to find out what his new play in the space is. speaking of conferences, a line-up of hedge fund titans a at our delivering alpha conference tomorrow we have a preview coming up next. at ally bank no branches equals great rates. it's a fact. kind of like shopping hungry equals overshopping. if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. hurry, before this opportunity cools off. share your summer moments in your mercedes-benz with us. why pause a spontaneous moment to take a pill? or stop to find a bathroom? cialis for daily use, is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitra