ceo evan spiegel just admitted something that everybody knew. i'm melissa lee, you're watching "fast money" on cnbc, first in business worldwide meantime, here's what else is coming up on "fast." >> there's no disguising the real deal. and this is there's no disguising that shares of price line are a disaster. >>> plus here's what amazon did to shares of williams san ononon wear fair today, when "fast money" returns you always pay your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. and i'm the founder of ugmonk. before shipstation it was crazy, like... it's great when you see a hundred orders come in, but then you realize i've got a hundred orders i have to ship out. shipstation streamlined that w

evan spiegel not taking the arrogant tone, but saying we're trying to figure it out.t's too complicated we need to revamp it we don't know how the revamp will affect or core teen users >> is this just a niche platform or is it going to be something broader? do we care about user growth one number that did not come through was average revenue per user, it was expected to be 1.30, it's 1.17. still up, but the case has been facebook is above $4 per user. they're not closing the gap fast >> and they have this detrovote group of teen users, but whether advertisers have bought into that without seeing sharp user growth on that front is an open question >> president trump continuing his trip through asia. he arrived in china a short time ago. he's having a dinner with xi jinping after touring the forbidden city eunice yoon is in beijing with more good morning >> the dinner is one way that the chinese hope the american president, donald trump, will feel more special compared to previous presidents. donald trump had spent the day today at the forbidden city. the first families

what would say to evan spiegel this is three april row now of big double digit declines post earningsfeels like this is a venture stage company and it's unclear whether it should have gone public did it jump the gun? >> yeah. well, i think the snap -- i think the ten cent stake will help they have a big strategic partner with very deitch -- deep pockets. i don't know it will help a foray into china those kind of efforts by united states social media companies have failed repeatedly they have a deep pocket investor now. that should help they clearly have to focus in the short-term i would guess on top line revenue numbers again, with over 170 million daily active users, that's plenty of room to be growing a top line at, you know, a good clip, and i imagine that's where they will be spending most of their time in the near term. probably on the product side delivering the kinds of ad metrics packages to advertisers they need to deliver in order to catch up to the twitters and facebooks. >> really quick, dick, before we move onto a different topic. does it make sense to reach out to an ol

evan spiegel saying their priorities are user growth, content and augmented reality.they're working to redesign the app to make it easier to use, says that could be disruptive to the business in it the short term. they'll take the risk for what they think is long-term benefits he also explains lower daily active user growth unexpected. he said this could be partially attributed to the decision to report users over an average over an entire quarter, where a strong september was offset by more modest growth in july and august he says they do want to drive more user growth in 2018 he also said snapchat has 3.5 billion snaps created daily. that's up more than 40%. and that the community opens the app an average of 25 times per day. one last note, kelly, he said in q3, they recorded $39.9 million of charges related to spectacle's inventory, access inventory reserves back over to you. >> julia, as you delivered that report, the shares have gone from a drop of 11% to a drop of about 21%. julia boorstin with that report. joining us to reaction to those earnings, ed lee from r

advertisers are spending to reach those users.in a conference call with analysts, chief executive evan spiegelaid snap would overhaul its signature product, the snapchat messaging app, and acknowledged he misjudged demand for spectacles, the company's one-time buzzy video- recording sunglasses. snap said it recorded $39.9 million in charges in the quarter, primarily because of excess spectacles inventory. (gary ) (gary ) (gary ) the warriors without kevin durant hosting the minnespta timberwolvesright now...(wipe to klay with globetrotters) and finally tonight--klay thompson hanging out with the harlem globetrotters. the team just implemented a 4-point shot, which is just in between the 3-point line and half court. the warriors star got to have some fun testing it out..as the globetrotters prepare for their world tour. when asked about a 4-pointer in the nba, klay was joking around and said 'i think it would really only benefit us.' it looks like the 0-9 49ers are once again turning to cj beathard at quarterback this week. beathard, expected to start his 4th straight game....while jimmy garopp

advertisers are spending to reach those users.in a conference call with analysts, chief executive evan spiegel said snap would overhaul its signature product, the snapchat messaging app, and acknowledged he misjudged demand for spectacles, the company's one-time buzzy video- recording sunglasses. snap said it recorded $39.9 million in charges in the quarter, primarily because of excess spectacles inventory. (pam) barack obama may be a former president, but he doesn't use that as an excuse to get out of his civic duty. he showed up for jury selection in chicago this morning... with a secret service detail and a motorcade of black s-u-v's in tow. but he is off the hook -- the cook county chief judge said, the former president was not selected. president obama lives in washington, d- c, but maintains a home in chicago.and he's not the first former president to get called for jury duty ... or to actually show up for it. in 2015, former president george w-bush reported for jury duty in texas and others have shown up as well. .light rain is forecast to develop over the north bay as early as wednesda

evan spiegel, the leader of snapchat, is very set in his vision for the company.we saw yesterday with the earnings is that he has been willing to evolve that vision. he said he would redesign the app to make it more appealing to a broad audience. earnings -- emily: earnings yesterday, not good. we have a chart here showing what happened. the stock dropped after hours, spike back up after -- spiked back up after this tencent deal news. what can we expect going forward? ofah: tencent has a habit buying up stakes in companies, and eventually taking them over. it doesn't look like that's what's happening here, at least at the outset. they want to see if snap can build the advertising business. what we saw in the last quarter is that they are in the beginning of this self-serve advertising, and that they need some approved advertisers they can get a return on investment before that becomes a bigger business for them. emily: tencent is also the owner of wechat. do we expect tencent to have an input in product and strategy decisions, given the size of their stake? sarah:

evan spiegel of snap and tencent -- and tony ma of tencent have had a long history together.ke of this twist? >> tencent was an early investor in snap. i asked tencent's president over the summer if they had considered another investment and he said they had gotten close, but it had not happened. clearly mutual admiration on the -- on both sides. tencent invested in super cell, the videogame maker, then acquired it. tencent has been looking for a western strategy for a long time. wechat has not been doing well in western areas. perhaps this is setting the stage for a deeper partnership down the road. emily: is it a hail mary for snap? >> tencent just bought shares on the open market. emily: they have discussed it to a certain extent. >> perhaps. i know evan admires tencent and what they accomplished with we bringso if tencent could some of its was the most social media to snapchat i'm sure they , would appreciate that. emily: apple working on an ar headset that comes out as early as 2019, 2020. >> it was an especially strong appleor apple's groups -- scoops here at bloomberg.

. >> daily mail and page six saying evan spiegel and miranda kerr are expecting their first child. >> cent not involved in that at all. >> just theirs dow is down 70 points obviously. we're watching the market get nibbled a little bit a lot more "squawk alley" continues in a moment. no matter how the markets change... at t. rowe price... our disciplined approach remains. global markets may be uncertain... but you can feel confident in our investment experience around the world. call us or your advisor... t. rowe price. invest with confidence. everybody. i'm sue rememberer, herera house speaker paul ryan appearing on cnbc, says house will not including repealing obama individual mandate as part of the tax reform bill instead they will wait to address it in a conference committee with the senate. >> do we like the individual mandate? of course we don't like the individual mandate right now we're focused on tax reform from the tax side that's the one we're bringing to the floor, worked out with our members. >> cabinet meeting, rouhani criticizing saudi arabia rouhani accusing riyadh with

first of all, i think it's a really smart, strategic move for evan spiegel to focus on, try to drive a wedge on this issue. facebook and google are extremely vulnerable because of filter bubbles and this notion they manipulate the thts of their users the way they present information. in fairness s.n.a.p. is not free of blame s.n.a.p. streams exploit the same basic problem in order to sell ads, the strategy is to addict your audience once you've addicted them, you want to find ways to manipulate their behavior. >> in fairness, that's the media business everybody who is putting something on tv or on a phone wants their audience to want more of it. >> the difference is that on smart phones the people who have personal data, who can essentially program individualry for 2 billion members have advantage and power to do great deal more harm than broadcast network can do my simple point, it's a matter of degree jump but degree matters. when i look at s.n.a.p., you know, i hope this is the beginning of them defending themselves more aggressively they are in a position to get benefits from the

evan spiegel has to communicate to investors what is going on. facebook is dismissed as competitor.petitor. we'll watch for users add, 173 million daily users. we're expected to add users there. last but not least, the short interest, people betting to the downside, over last week or so come down. so that is positive for snap. we are up 1.7% right now, going into the closing bell. liz: the dow down one point a second ago. everybody stay here. keep one eye on us. keep a eye on bug here. black friday, 16 days away, before you hit the mall for shopping holiday. one fund manager online is the way to go. we're not talking about online shopping. online security. steve dudash, two billion under management. instead look at not cyber online stocks. but cybersecurity stocks. not shopping. iht wealth management president steve dudash with the the big i. not online shopping sites but go into the cybersecurity sites. >> we're trying to find areas less likely affected tax bill changes. the tack bill will not get passed. 0% chance of this being. liz: zero? >> 99%. they will change it. maybe 90% ch

snapxhat's ceo evan spiegel bringing a two-year twitter hiatus to shoot down a rumor about his company with a claim that snapchat is shutting down next week spiegel taking to twitter last night to call that report, quote he, fake news. >> it's kind of nice to twitter that he had to take to a rival platform >> after two years >> also of note, he's very trendy fake news is the word of 2017 and taking a queue from trump there. here is something else tiffany lauren ago line of everyday objects with without of this world prices. it includes a $350 rose gold straw, a $600 first aid kid, a $425 protractor and a $9,000 ball of yarn the luxury retailer is selling a sterling silver bird's nest with tiffany blue bores lan egg for a whooping 10 grand. >> wow even though it wasn't the most expensive of the items you just showed us, i think the protractor is the most stupid of all those. >> the ball of yarn? >> no, but a protractor. that is the most stupid idea i've heard >> typically they're thrown for their fashion and designer jewelry, the keys and the hard chains, the little blue box. >> i spend

> he is still mad about i like people who don't -- >> rightly so. >> i want to talk about that evan spiegeliece in axios. how did this come together >> the co-founder of snap inc has been under pressure from the street for not explain his vision or product. he did his first op-ed ever. he came to axios he knows you read it, and that we have an audience of smart, curious, professional people who want to get smart fast he came there with a message that we have been mixing up social and media he wants to split them he's saying rather than just have your friends determine what's in your feed, also have the algorithm do it. have that mix of friends and the computer a lot like netflix. so what he's doing here, he's kind of subtly, kind of directly taking shots at facebook saying that our feed is polluted. saying the very things that facebook rewards, more likes, more friends, leads to the clutter. he's saying the snap could be more human he's trying to say to investors, users, publishers, snap can be a safer, saner place to consume and chat that's his big message with this op-ed on axios, where h

you have to strike a balance i heard evan spiegel was against ab testing like saying this is the snapat's it i don't think you can operate like that. what could this company be worth? >> look, here's the way to look at it. now they're probably now back up to $100 per daily active user, that's around twitter, compared to facebook at $500 plus per active user. there's a middle ground that can be achieved. the market is desperate for them to succeed everyone is rooting for them, they're not capitalizing on the opportunity on hand if they're fully self-aware, that could change the story >> how quickly >> it will take time a couple quarters at least to digest the changing rechanges. when you look at the next quarter, quarter after, those numbers won't be pretty? >> no, right now you're in the december quarter, the heaviest quarter for advertising. then you're in a lull. the budgets are being set for '18. best case scenario, you're in a fully where you're fully humming along at the end of next year. >> retaining employees, all these employees have a lot of stock in this company. >> yeah. yo

senior evan spiegel says it's difficult to use. it would make it easier to view content.quarterly results. >> google wants to put an end to long restaurant waits. google search and google maps will display live estimated wait times at restaurants. it will be avaltable for nearly 1 million restaurants around the world and they can see historical data of how busy it will be at other times. >>> a plane headed to the island paradise of bali was diverted after a woman discovered her husband's infidelity mid flight. she used the thumb of her sleeping husband to unlock his phone. she became so unruly they diverted their flight. the woman, her husband and child were taken off and put on a flight back to doha. no police action was taken and still no word if that couple is together. that's a very interesting to find out he was a cheater cheater pumpkin eater. >> used the thumb? >> it bothers me that other people were diverted. oh, well. >>> one year ago americans elected donald trump as our 45th president. a recent poll shows the president's overall job approval rating is 39%. 84%

ceo evan spiegel admits it is too difficult to use. a more personalize experience. yesterday the snapchat parent company reported disappointed quarterly results, loss more than tripled. >> reports google wants to put an end to long restaurant wait. google search and google maps will display live estimated wait times at restaurants. information will be available for nearly one million around the world. >>> and britain's telegraph reports a plane headed to the island paradise of bali was diverted after a woman discovered her woman's infidelity mid flight. she allegedly used the thumb of her sleeping husband to unlock his phone which revealed evidence of his cheating. yowzer. she became so unruly the pilot requested that the flight be diverted to india. the woman, her husband and their child were taken off and put on a flight back to doha. no police action was taken and no word if that couple is still together. that's a very interesting way to find out he was a cheater. >> to use his thumb. >> yes. people were worried about that with the

advertisers are spending to reach those users.in a conference call with analysts, chief executive evan spiegel overhaul its signature product, the snapchat messaging app, and acknowledged he misjudged demand for spectacles, the company's one-time buzzy video- recording sunglasses. snap said it recorded $39.9 million in charges in the quarter, primarily because of excess spectacles inventory. winner: apple is reportedly working on a futuristic headset - and it could ship as early as 2020 . . . apple is working on an augmented reality (ar) headset that works as a standalone device. the team working on the project was set up about two years ago, and a finalized product might be ready to ship as early as 2020,. the reportedly offer a refreshed version of its arkit developer toolkit next year. winner: apple is reportedly working on a futuristic headset - and it could ship as early as 2020 . . . apple is working on an augmented reality (ar) headset that works as a standalone device. the team working on the project was set up about two years ago, and a finalized product might be ready to ship as earl

evan spiegel announcing a change in its feed. be separating friends from brands on different sides of the screen. spiegel also speaking out in an axios op-ed, blasting social media, accusing it of fueling fake news. saying content designed to be shared by friends is not necessarily designed to deliver accurate information he also saying the personalized news feed came at a huge cost to facts, saying this is a challenging problem to solve because the obvious benefits that have driven the growth of social media, more friends, more likes, more free content, are also the things that will undermine it in the long run i think he makes some pretty interesting and valid points our expectation for free everything is really how social media grew up and created its business model look where we are. >> although so much of the conversation around snap has been did they go to market too early? clumsiness in dealing with the street here they are, retooling a big part of their ad budget, nine months after the ipo >> they did stress initially as

speaking of snap, evan spiegel breaking a two-year twitter hiatus to shoot down a rumor that snapchatas closing down next week. he called that report fake news. >>> and stocks continue to power higher he. let's talk markets now with paul hicky of the investment group and andres garcia. we have another couple of gentlemen on in the seven. there's a lot of similar comments i will tell you, it's hard to -- and basically, guys, paul, you can start. it's all about earnings and pullbacks are impossible to predict. so stay long there may be a pullback, but earnings are driving this higher and you expect that to continue. >> well, you come into earnings season speccing 3% growth. we got 6% growth we've got double that. and companies are raising guidance at the highest rate since 2010 if you're seeing that correlation to the stock market price is the highest thing correlated is earnings we can talk about fed driving the rally, buybacks or anything bub long-term, earnings drive markets and earnings have been strong so it's hard to get overly concerned. but, again, the last time i was on, joe, w