fireeye like any company has to perform better and we will. we're fighters. i think this moment in time is a good cnce for the company to rebound. europe is healthy enough for tous grow and we have to be able to do that. sure, there are safe harbors and privacy issues and some occasional anti-americanism that goes on post snoen and no excuse, we should be growing and growing better. we put in a new management team to do it and we have come out with products and offerings to drive europe in the future. we'll get there. >> how about this change in contract. that also surprised me. >> well, that one is a little more episodic because we had a lalae federal contract, , 8 figure deal that was a five year contract at the time we reported that a year ago, we talked about a spike of four or five months at contract length and resulted back to more normalcy. once you take away that one time event. we're seeing some landscape change a bit. so we're being cautious a little bit to the length of c ctract ananthat is usually where you see it. the size of the deal, the length

you have to journey fireeye's been on over the last quarter. the company has grown to a million dollar company in less than 12 quarters. a beneficiary at times with a surge in cyber security. read about headlines and breeches and things going on and at first when these came out, this news, there was a shock factor and awe factor and that created a lot of emergency spending and sort of reactionary spending that occurred and fireye took advantage of that. we grew our company and went to a platform and i'm every bit as excited as i was back then to the future of fireye because the market has cycles and you eluded to one. sometimes those cycles are up and to the right. sometimes the cycles change a little bit and often times cyber security companies like us are tied to the cycles of the threat landscape and with a lot of what we're seeing in the marketplace with china and china peace treaties that we're seeing, it's changing a little bit but i would also point out we have the peninsula, iran, syria, north korea with sony so it keeps evolving and fi

joel covers fireeye and he joins us now. about this print is there were low expectations going into the quarter and fireeye missed big time. it's taking down the entire sector pretty much in indiscriminately whether you look at palo alto or proofpoint. is this a fireeye specific problem though? >> we think so. fireeye, as you said, put up fairly bad results last night. definitely not meeting consensus expectations. the problem is that the areas that people were spending with fireeye people are spending security areas outside of that and we're seeing it show up in the numbers such as palo alto and imperva and others. we think it's specifically with fireeye. >> some of the commentary said there's going to be more normalized spending than threat spending. are companies spending more on the threats s aspect? >> they're focused on the incident response or after the attack happens. what we're seeing is a major shift to people protecting the assets themselves and the identities of those accessing the information. where fireeye has

how about fireeye? like it? >> i like fireeye. and what was it, a month ago it was in my portfolio.a nice move, so did goldman sachs, added them both the same day, took them both off when they made nice pops. was that call buying foretelling some positive earnings that could come today? sure. i'll be looking in the afternoon to see if they pick up again. >> if you like fireeye, you buy palo alto networks. to me it's a better trade but a good report from fireeye lends well to a lot of securities. >> palo alto is in your portfolio? >> it's been there. it's been struggling though. >> josh brown, you a lot riding on facebook. >> well, sure. you know, it's the source of a lot of my gains, unrealized gains for the portfolio challenge that we're all participating in, and really this could be the one that either takes me into first place tonight or sets me back materially. i think the options market right now is looking for something like 5.5% swing in either direction which doesn't seem like a lot. we've seen much more volatile moves out of facebook in quarters past, so let's hope if it's

we did hear from fireeye recently, in what it called a cyber lull.ye, which is a competitor to palo alto, said there hasn't been much demand for its services. right, absolutely, but correlation in the same stocks have been breaking down in these last couple of weeks here. i am not looking at that. i am looking at the historical record of palo alto. that risk is always going to be about $1.30 per share. i know what my downside is and i know what my upside is. the market is kind of sideways right now. you soall right, thank much. i appreciate it. i am looking at palo alto, and it has been up every single day this week. they you so much, jim, for joining us out from chicago. betty? betty: all right, thank you, julie. the chipotle e. coli problems are expanding into states such as california and new york. they have a burrito of a problem. ♪ ♪ (ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring (don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar ou

you think that people differentiate between fireeye and palo alto tomorrow? think again. not all bad. facebook reported dynamite quarter after the bell. homeway, subscription website for vacationers got a big cash from expedia which should cause both being sos to go up tomorrow. that's right. because expedia, people are going to like this deal. that said, though, the pin action off the web, it's always few and far between, not enough companies, they don't trade together. yet the guilt until proven innocent presumption was more powerful than any trend today. and when the guilt comes on it's never just for a day. that means you can expect more selling in drugs, entertainment, oil, cybersecurity, retail and scattered industrials tomorrow and of course cybersecurity which is why if you're a trader, you probably wanted to join in the fray today, if not tomorrow. but if you're an investor, here's my bottom line. don't play the uptrend that's running higher. play the downtrend that's running out of steam which means wait three to five days for this collective punishment to play

when a major retailer gets hacked, they bring in fireeye. what major hack was there this quarter? >> there wasn't one. >> there you go. >> that we know of. a lot of times we hear about it after the fact. a lot of companies have gotten better. >> don't forget there's a ridiculous call hack. so everything will go down today. i got to talk to him. i don't know. i mean, because this has been one of the hottest sectors. come to think of it, remember it was really hot when you found out -- >> the stock was flat on the year until now. now it's down 17% today. >> you get these segments, these hot aereas. so let's find out from david dewalt. i think we can agree there will be many more hacks. this is a stock that turned out to be going up when a retailer had a hack or someone you knew had a hack. and there were no big headline hacks. so without any big headline hacks, they weren't called in as much. they do so much more than that. i don't want to just dismiss them. >> okay. well, we'll keep an eye on the peer group for fireeye as well. we've got a lo

when you look at the companies that primarily deal with cyber security, fireeye for instance is down3%. that's way down in terms of the weighting within the etf. but then you have a palo alto networks up 44% over the past 12 months. there's some commentary within the fireeye conference call that there weren't that many emergency breaches in the quarter and that companies were moving more towards normalized security rather than just dealing with the habicks as the come. >> i think there's a lot of excitement going into cyber security especially around the time of our launch, the sony attack. each kind of major attack incident when it becomes public news, we do tend to see a lot of excitement into the space. but if you look back even two, three years, it's been a really strong industry, so we have seen some of those names pull back, and like you said, fireeye has pulled back but palo alto has done well. i think it's very difficult to pick in advance two these winners are going to be and the ability to use the diversified basket of 30-plus companies focusing on cyber security from aroun

fireeyes, gotten peeg zinged, close to a number of big data breaches. this is much less episodic. lately the market has been in a more forgiving mode with companies with lofty valuations. monday, less and tuesday a big day. kicks off, trying to be better. campbell's soup. of late this market embracing all line food companies with good dividends potentially becoming more organic and the stocks are coveted more than the companies politically and culinary correct but far more expensive stocks. and campbell's sold out of and bounced back hard instantly. be ready for similar reaction. the food company the people real like is hormel. another strike changer after its aqcquisition of applegate farms. hormel, which supports tuesday morning by far the moat of consistent member of the packaged food group, hence hit an all-time high today. i like the stock. buy it on any monday weakness. next up, market darlings to total dog, the economy improved and walmart woke up from a slumber. results from my 235i6y favoriter street. can the love affair with wall street be rekindled? rallies from 60 to 6

fireeye came out with good numbers. i bet the good numbers from palo alto that came out tonight can change that around. m builds itself as a aeader in itc security, this has the appearance, not actuality, an afterthought of acquisition for ibm. i think cyberark would give them a stronger footprint, particularly with m's many government clients that might be momo with hackers. i think it could be so crucial for ibmf i were them, i would double down. i would snap up imperva, another ber leader that prododts business critical data and applications. that's right in ibm's wheelhou and it's a $2.3 billion, chump change to ibm but magnificent revenue growth and that could offset ibm revenue declines. they focus on data protection, makes it a p pfect fit for ibm. oh, and they're actually profitable. that might make it easier to swallow. given how the ock has been roar, i thinibm needs to move soonererather than later. like tomorrow. fy were ibm, i would snap up a big competitor in the data analytic space. maybe the $3 billion c

i would look at ford net and fireeye. i think those are two names and companies that are going to do well during this time. liz: either way people will pay them to keep things safe. on other hand terrorists using low-tech chief operations. they found a cell phone that had been discarded, thrown into the trash outside of paris bataclan that said, we are starting. that indicated to the french authorities. they have smart guys who know how to work twitter and cloud fare. this is company we speak to tomorrow. these two names you feel are the real moneymakers? >> the way i look at it, in cybersecurity there is big debate about privacy. re all know privacy an issue. when it comes down to it there are companies doing this for years. those are the ones that will make the most progress dealing with privacy concerns and security concerns which have to be counter balanced here. i think there is tremendous push here to make sure that we're not behind, we're not behind the times when it comes to technology. liz: right now, in way look

turning to another stock deeply , the cyber fireeye security company, shares are down 25% this monther the company reported a disappointing quarter last week. with acommunicated bloomberg analyst about why shares are off significantly today, trading near a record low. he says the company presented any wills con -- wells fargo conference yesterday and reiterated the idea that security is being challenged by u.s. and chinese security relations, but nobody is buying it. nonetheless, shares are near a record low and close to the company's ipo price of $20, set back in 20 13 of september -- september of 2013. betty: abigail doolittle, thank you. the world of daily fantasy sports is under fire even more. the new york attorney general has ordered fan duel and draft kings to stop taking customers -- accepting customers and people in new york state, .lacing wagers on actual games major league baseball has hired a firm to monitor global sports betting and identify suspicious activity. joining me now is caps off who has written about sports betting , who hassoshnick written about sports betting

different from fireeye. the business is strong.this difficult market, bank of america and merrill lynch downgrade saying it's about as good as it can good. this resonates with people because all the stocks with high multiple are getting crushed here. be aware when you see cyberark going down, there's nothing wrong with cyberark, it's the idea they don't want to pay a huge multiple on earnings for a profitable cybersecurity stock. watch cybr, what this market is rebilling against is stocks like this. >> all right. >> let's get to the opening bell. a look at the s&p on the bottom of the screen. at the big board, the howard hughes corporation, developer and operator of master plan communities, celebrating their fifth anniversary. at the nasdaq, irobot corporation, designer and builder of robots. overall -- the ten-year has finally run out of sellers, as we come back a bit around 2.32. >> that's important. you know, some of my best guys who are older, been around, we're all worried about this moment where interest rates just -- we saw

everybody was very upset about fireeye. cyberark had a good quarter. >> long week ahead. >> yeah.retail is the tale of the tape. >> i know. >> retail and cisco. >> i have to tell you, i know that -- someone was saying, jim, in arizona it's sunny all the time and retail does work. my father sold gaberdine pants for gimbel's. if you got warm, you didn't have any food at the table. except tang. that was pre-tang it was that del monte syrup fruit cocktail. you know what that is? fruit cocktail? >> high fructose corn syrup. >> three diamond, three diamond tuna. >> we'll see you tonight. "mad money," 6:00 p.m. priceline's houston after the break. >>> good monday morning. welcome back to "squawk on the street," i'm carl quintanilla with simon hobbs and david faber. tough start to the week. dow down 133. biggest drop since october 14th. s&p biggest drop since october 13th. some of that goodwill from friday's job number is in the rearview mirror. >> shares of priceline falling thanks to a weak outlook. but the company is looking to take on better airbnb. >>> plus norwegian cruise lines loo

fireeye, go daddy, kohl's, all still in the green up around that 2% to 5% mark. >> thank you very much. let's reiterate this, it's a lot about commodities today which are getting whacked. ou hi oil, copper currently sitting at six-year lows with a drop of 2%. jackie deangelis is joining us from the nymex. >> three specific reasons here that the commodities complex is lower. we're talking both energy and also the metals. let's start with oil. of course, we have that inventory number this morning. it was a big build. a little less than the api, but traders were looking for a slight draw this week. we have the same problem on our hands. that's a problem of oversupply and that actually brings me to my next point, which is that opec came out with its monthly report. opec really not changing its outlook here. they're worried a little bit about iraq exports. saudi arabia and production came down ever so slightly but opec is saying nothing about global demand going up and that's part of the equation we need to hear for oil prices to get some support. the third issue is mario draghi. more dovis

one of the reasons fireeye had such a bad quarter is there were no big hacks.t's a good thing for the consumer but it's a bad thing for the underlying company. >> i think at the end of the day the value that we're delivering is helping people prevent these through e-mail, through social, through mobile. although the technology continues to get better, the trade craft is advancing at a really rapid rate. it allows companies like us to continue to allow solutions. >> often we hear about these hacks, major hacks where, you know, hundreds of thousands upon millions of people, their data is taken. then you don't hear necessarily about something bad happening to them. i always wondered whether ultimately there's some group out there that is literally collecting, sifting through all of this information and that in years from now, two or three years from now they're going to have all of this and then they're going to -- it's almost going to detonate at one time. >> i don't know that it detonates at one time but there is science that says that bad actors want to hold on