some of that is because gamestop just imploded and so did best buy. but in both of these cases the stocks had gotten too high after repeated analyst upgrades. however, i don't think the video game maker sure penalized because of the weakness in gamestop and best buy. these days half of all spending takes place over the internet where you can download the game right to your computer or console. why go to the store when you can get it from the web? my favorite video game maker and the company behind grand theft auto five, most successful game in history, it's almost absurd. it came out on october 17th and then october 29th the company reported a blowout quarter, colossal earnings and next day it was trading at 17. and that quarter only included two weeks of grand theft auto. fast forward to today it is $17.05. take two is a 1.5 billion and should have had 1.5 billion on the cash sheet and they have a number of big franchise behind grand theft auto bioshock, max payne, borderlands and sports simulations and major league baseball 2k, they have been succes

i want a brand-new one. >> reporter: fed up, geno called consumerwatch and we called gamestop. the manager agreed to exchange geno's green screen xbox for one that actually works. >> thank god for consumerwatch. gave me a christmas! i would have been stuck without an xbox right now. ha ha ha! sad kid, sad holiday. you know? sad game player. [ laughter ] >> reporter: microsoft says consumers with xbox issues can contact customer versus via phone, twitter or by saying xbox help if yours is working with. if you have a consumer problem, contact consumerwatch, 888-5- helps-u. on the consumerwatch, julie watts, kpix 5. >>> now for a look at what's ahead on the "cbs evening news." maurice dubois is in new york. >> millions prepare for the worst as two winter storms team up and take aim tonight at the northeast. we're on storm watch tonight on the "cbs evening news." ,,,,,, across the country has brought me to the lovely city of boston. cheers. and seeing as it's such a historic city, i'm sure they'll appreciate that geico's been saving people money for over 75 years. oh... dear, i've

as a result we saw gamestop quickly selling off. nicolaus quickly cut the rating to a hold from a buy. the process of software sales have worsened. that is not good news. dave, there are a lot of manly men at new york stock exchange and you should see thousand they're getting ready to brave the cold out there. these guys are bundled up. eyes showing. david: nothing against us, nicole. you can brave this weather. >> they are bundled up, they are so weather. david: you could brave the weather without any problem. general question about the market. do you think this is the first gain for 2014. does it continue? were they hopeful about that. >> the fact we move to the upside, first up day in s&p 500? we had back and for the action. a lot of bond outflows as well. a lot of people think this year will be a good one, maybe not as great as 2013 but still seemed positive. david: triple-digit gain, first one of 2014. thank you, nicole. >>> this year's national ces has a million, 1.9 million to be precise of square feet of exhibit space, more

gamestop purchased a lot of shares in the fourth quarter at $48, $49 a share. a huge buyback left. you have to wonder, will they be out there at some point in the market? >> let's talk retail in general. we have had a number of disappointments in the retail space. >> it hasn't been great. the retail sales numbers today were better than expected. autos are helping that out a little bit. they rised up a little bit. i would say, though, it's the same as last year when we had lumpy sales. a couple of players doing very well. karen mentioned macy's earlier today. but in general, they are getting crushed when they miss. >> is it a case with macy's, which is the only bright spot we've seen so far, where they've had a string of disappointments last year. they have restructuring going on. that was a phenomenal result. when you think about, we've seen four stocks. soda, lulu, gamestop and one other i'm forgetting. are these stocks priced to perfection? or was it as good as it gets in the holiday selling season? and it could be a rough, rough period for consumer discretio

we also like gamestop. that stock really blew up yesterday.think that investors are misreading the tea leaves here. we're bullish on the company particularly with a new console cycle having just started and the early sales results on the new hardware are just off the charts. >> i never do anything but wait in lines at gamestop. it's always full. anthony, brian, great to have you on the show. >> what are you doing at ga gamestop. >> i have two sons. >> i thought they were studying. >> education is highly overrated. >>> coming up next, a titanic fail in the making. >> and speaking of, i will admit i was wrong about something. i said something in the show that i was completely wrong on -- >> you were half wrong. >> i will correct myself. look at that chart. alaska has the fifth most millionaires per capita. do you know who is fourth, third, second, and first? fourth is hawaii. the last two states to join the union, fourth and fifth, they're going to count you down the top three millionaire states per capita. trust me, number one is going to be a

so when they unveiled, gamestop took an intraday hit. they came to their defense.tory. really hurting, announcing it is revising its quarterly and year-end guidance due to disappointing holiday sales. the stock down another 19 percent right now. as the biggest lighter on the s&p today. investors were clearly spooked, but should they be? came stop has been up 95 percent over the past year. joining me now in a fox business exclusive, the ceo of gamestop. director, and a brave man. good to see you. thank you for coming out of a day when your stock is getting hit. it is fair to say that investors were unpleasantly surprised. this is the first opportunity. thank you for coming down with us. >> it's great to be with you, and thank you for having us. it's good to be on the show. you know, we take our results very seriously. i think that video gaming is a category that is now well understood which creates opportunities for investors, but if you look at the last quarter there is nothing wrong with our customer traffic. our international business, >> we appreciate it, and we

i want a brand-new one. >> reporter: fed up, geno called consumerwatch and we called gamestop.the manager agreed to exchange geno's green screen xbox for one that actually. >> thank god for consumerwatch, gave me a christmas, i would have been without an xbox right now, sad kids, sad holiday, you know, sad game players. >> reporter: now, microsoft says consumers with xbox issues can contact customer service via phone, twitter or if your console is actually working by simply saying xbox help. and remember, if you have a consumer problem, you can always contact consumerwatch. that number, 888-5-helps-u. on the consumerwatch, julie watts, kpix 5. >> now that you have the gifts opened and working, it's time to kick your christmas tree to the curb and recycle it. tree recycling began today in san francisco. trees will be picked up on regular trash collection days. the trees are put into a big chipper turned into mulch. the trees have to be no more than 6-foot-tall. taller than that, cut it in half. >>> another water agency preparing to deal with a very dry winter. the move is tow pr

stuart: to nicole, gamestop.or the shareholders today, shares down 18.5%. whoa, huge move to the down side. and this is because of sales that were disappointing. they're cutting their numbers. the sales of the games, the software games, games that go to the old consoles, the one area that they did well, where they saw the sales nearly double was in hardware because you had the new xbox one, playstation, playstation 4. so that was the area that did well. but selling of the old games and software games not good, and they compete against mobile games that are just cheaper. stuart: you know, it was just a few, i guess a week ago, that gamestop was put on death watch. that usually means it dose up. in this -- goes up. all right, nicole, thank you very much. >>> an update on the massive pre-christmas hack that exposed the personal information of as many as 110 million target customers. they've hired a company recently acquired by fire eye to help them implement new security procedures. shares of fire eye took off on th

watching gamestop. out there. >> that is part of the problem, tracy. we're watching gamestop to the downside. they did well with hardware and microsoft xbox 1 and playstation 4, the hardware doubled year-ovee-year. that is good news. it games for prior consoles and as well as stiff competition from mobile games which are actually cheaper. so that doesn't bode well for gamestop. it is down, i was going to say 18%. you know what? selling accelerated in last couple hours for gamestop. down almost 20% at the moment. the low today was 36.20. we're not too far off. however, however, this stock over the last 52 weeks is up nearly one%. it has had a great run. that being said you have several analysts cutting price target can. suntrust left their buy rating and put it at 60 bucks. credit suisse cut the target to $46 from 50. they have a neutral rating. back to you. tracy: thank you, nicole. they're reliant on games that come in, if there is no new hardware there is nothing to sell. >>> talk about stormy skies,

. ♪ >> breaking news from the gamestop. the video maker.are cutting the fourth- quarter and full-year profit forecast for the quarter that ends in january. comparable sales actually higher than anticipated. driven by new hardware growth. software sales came in below estimates. the stock trading will work i 10% of the premarket. if it opens up the levels, it would be the lowest since june of 2013. >> we appreciate that from the breaking news desk. groupon said no. snapchat said no. nest forquiring $3.2 billion. google in my living room? i do not know. google is already in the living room. you have a comcast plug-in for your television, that is google already. i want to be in the living room because it is all about the internet of things. john chambers, the ceo of cisco pegged this opportunity at $19 trillion, which seems almost impossible to believe. of's say he is out the world hyperbole. $2 billion in 30- devices. >> 3.2 billion for nest. rarely the valuations are high. you are a believer. >> the next wave of the internet , the next genera

gamestop is going the opposite direction. the shares are falling the most since 2002.fits forecasts following lower-than-expected and reduced sales ofrgin for waystation and xbox consoles. we are also watching pharmaceuticals. shares have fallen over 35% in the last two days. that comes after the stock more than tripled last week. olivia sterns follows it for us and joins me now with what is going on. you have smaller companies that tend to be volatile. this is volatile even by those standards. >> even with the recent slide, the company has a margin capital of $5 billion. last week,ed was they created a last week, they created a frenzy, saying they have got antics their mental new drug that works so well that they simply stopped the trial. that triggered initial excitement. the stock went up 280% and then we thought we would see a little reckoning friday. again, up 60%. stunning moves there. what happened yesterday, the ceo and five -- the ceo finally said, we might need a bigger partner to bring the drug to the market. since now everybody's cooling- off on the stocks

gamestop, their earnings reports didn't meet the high standards set by multiple upgrades going rightarter. then there's united technologies. a little more than a month ago, did what i call a soft preannouncement, a shaving down of expectations because of the federal government's cutbacks in military spending. the negativity was met with a torrent of downgrades. fast forward to this morning, though, when we saw the actual earnings and orders, and united technologies, they crushed it, reporting sharply better than expected numbers. >> buy, buy, buy! >> the stock took off like a rocket and it's got much further to run. the quarter was so powerful that it took boeing, one of my favorite companies, up huge. now the question has become is the $2.70 run in boeing too huge? does the stock now reflect unrealistic expectations? we'll find out in a week's time, but i sure wish it were up less going into the quarter. i have total faith in jim mcnerney. and i'll be talking about it on "power lunch" all the rest of the week. finally, there's the banks, literally all the banks. we came into the yea

david: gm and gamestop. watch tomorrow. he has the most common kind... ...it's not caused by a heart valve problem. dad, it says yr afib puts you at 5 times greater risk of a stroke. that's why i take my warfarin every day. but it looks like maybe we should ask your doctor about pradaxa. in a clinical trial, pradaxa® (dabigatran etexilate mesylate)... ...was proven superior to warfarin at reducing the risk of stroke. and unlike warfarin, with no regular blood tests or dietary restrictions. hey thanks for calling my doctor. sure. pradaxa is not for people with artificial heart valves. don't stop taking pradaxa without talking to your doctor. stopping increases your risk of stroke. ask your doctor if you need to stop pradaxa before surge or a medical or dental procure. pradaxa can cause serious, sometimes fatal, bleeding. don't take pradaxa if you have abnormal bleeding or have had a art valve replaced. seek immediate medical care for unexpected signs of bleeding, like unusual bruising. pradaxa may increase your bleeding risk

it's been tough for gamestop this week, but, of course, these companies tend to come back, and we'revery step of the way. >>> well, cybersecurity and privacy are very much at the forefront of the news lately. this after a public outcry, this is the security part of it, over secret surveillance programs at the national security administration. president obama announced today that there would be significant changes to the goth's nsa -- government's nsa intelligence monitoring. >> the bottom line is that people around the world regardless of their nationality should know that the united states is not spying on ordinary people who don't threaten our national security. and we take their privacy concerns into account in our policies and procedures. liz: okay. so what are the new procedures? well, the government says it will no longer store broad collections of phone and electronic communications. now what we have on our screen is the part that comes into the business world and hacking, target and nieman marcus. of course, a lot of you who shop there may have had your information compromise

but the shocking numbers from gamestop and best buy ended that. we started blaming the weakness on the government shutdown, the miserable weather, we'll talk later on from ethan allen about these variables. but, you know, they were all kind of swept away when howard schultz took our breath away, the ceo of starbucks and came out and said these cyclical one off concerns were not the cause of retail weakness. he says we're witnessing a seismic secular shift away from mall traffic and migration to online shopping, which explains why only starbucks, macy's and costco did well. macy's has the best web presence and costco has the lowest prices because of the club status. coming into the 2014 after the labor report and realize, one, we lost autos. two, the housing-related stocks not working. three, commercial construction, big question mark. and retail, not a question mark, just bad. a huge chunk of what worked in 2013 now has been eliminated. the big portfolio managers rapidly switched directions after that labor report and headed to tech, financials an

gamestop, u.s. steel, adt corporation and frontier communications, just a few more companies on the list. but for the full list of the most shorted stocks in the s&p 500, head over to cnbc.com. tyler? >> thank you very much. >>> we have an all tech power rundown. before we leave, we'll have you take a picture of john and mike's shoes. apple shares having their worst day in a year, down about 7%, 7.5% now. investors are saying what have you done for me lately and will a new product solve some of their problems. john, what is the single most important thing apple needs to do right now? >> probably a new product but look, i don't think that's going to get them all the way there. you see the iphone, 50% of their revenue, huge margins. that is clearly maturing with developed markets, actually scaling back a bit. it's going to take a lot of volume on a new product and a lot of profit margin on a new product to make up for that. >> carl icahn has been a big voice in apple stock lately. he's still above wat

lastly, gamestop witnessing the biggest drop in 11 years after it lowered earnings forecast. the stock down 28% this year. scott? >> all right. seema mody, thank you. simon baker, you are buying best buy? >> yeah. we like the story. if you look at it you get the sellers exhaustion in there. the same store comps bottomed out so it's got a good catalyst going forward. sbertd sales continue to go forward. it's a good longer term rate. think gap 2010. >> murphy is shaking his head as you're speaking. >> he's always shaking his head. he's not long netflix. >> i don't own netflix but i definitely wouldn't be buying best buy. we talked about best buy at $40 a share. you try to understand why best buy went from going out of business in the end of 2012 to being the best performer at the end of 2013 and then you see the stock performance now. there was no reason for it. it was over priced. people got ahead of themselves in the stock. down here around 23, 24, maybe 25 is a fair value. but there's nothing out there that's going to push best buy up over $30 a share. >> coming up, should y

gamestop tumbled in the wake of that.ecklace cutting it to hold from a buy and netflix -- stifel it to hold from buy. netflix down. also sony streaming game system -- and this cancer drug developer partnered with johnson & johnson, the leukemia trial stopped because it met study goals. something they like to hear. get anything off of the bloomberg, folks. that quick. to finish out your holiday shopping, by a bloomberg terminal. let's get serious with equity material. it has been an outlier call, an easy call for four years, measured optimism has paid off. the bull market has turned my and back to a 401(k) made others look like geniuses. 2014 will not be so easy. one senses has taken on the doll view. the legendary robert doll joins us. >> we got spoiled last year. the market went up a lot in it was a straight line. hardly any bumps along the road. i think we are going to have an ok year. i think stocks will be up but it will also be a bumpier year. >> on a weighted average, as everyone consumes what scarlett and i do ever

it's interesting because earlier in the week gamestop got hammered and electronic arts is up. well, the brick and mortar version not. twitter is teaming up with an online payment company that's going to allow users to buy products directly on twitter. sounds exciting, how's the stock reacting? >> a whole new concept for twitter. 5.3% to the upside, 63.86. you talk about possible transactions with twitter, they're working reportedly with an e-commerce company called stripe. buy rating on the $75 target, so twitter early this year -- early this year, right? we're only on january 17th -- charles: it feels longer. >> the beginning of january a lot of the analysts started to hit it and say it's a niche stock, and then this last week or so there's been a real turn around, and the analysts are liking this one again. charles: thanks a lot, nicole. want to get back to this google contact lens. nearly 26 million americans suffer from diabetes, and that's about 8.5% of the population, and it costs the ccuntry $245 billion back in 2012. we've got dr. segal with us too, fox news medical co

. >> and if the gamestop intermittently, there is an opportunity to buy into it with their calling thereal that will show highlights it will be an opportunity for other advertisers to get in the game. go to thend i did super bowl together in indianapolis. that was a very good one. >> not together. we just happen to bump it together. >> we were together, we were not together, i don't want anybody to get the wrong idea. overe spend has increased the last years. this is a relatively new phenomenon. in 2011, volkswagen was one of the first -- was the first advertiser that pre-release a commercial, and that really started this whole multi- marketing campaign before and after the super bowl. we worked with them and released with the many darth vader. that was the first time it had been prerelease before the super bowl and it was a big risk. all the commercials have been released on the big stage. this was on youtube. nobody knew it was going to happen, and by understanding the consumer, we knew that it would be a hit, and we got 14 million views free super bowl, and i kicked off all the spen

this was like gme, like gamestop, they were shorted, they were shorted, they were shorted, and it lookeded in the last minute because there's no bids down there. i'm going over what best buy is saying and you're right back in them being amazon again, because the gross margins are bad. people are saying they will cut the cost of merchandise and people will flock, but they cut the cost of merchandise so much they didn't make any money. >> what about citigroup? what did you think? short. >> i didn't like the fixed income trade. i didn't like the currency. it's really -- they had the misfortune of following what was an amazing turnaround which is bank of america, and i just didn't see a lot in citi that makes me excited, but the net interest margin did go up. i think it will be maybe a second half 2014 story. bank of america is the story right now. the other banks are going off citi. that's as stupid as wood. >> we need some good mixed metaphors, stupid as wood is good. >> i am also a weyerhaeuser buyer. >> you are? >> yeah. >> we'll see you in less than five minutes. >> thank you. >> okay.

. >> gamestop. >> another name exactly. as for best buy, i guess, jim, it's about, what, sort of this idea that there's going to be permanent operating margin pressure for this company given their inability to grow sales? >> yes. and also this is one of those where why do people start liking it versus amazon? because they cut price dramatically and they offered the lowest price. it turns out when you offer the lowest price, you don't make as much money and one of the things that bothers -- it's kind of an algebraic equation, if you sell 20% under amazon and you sell "x" number of units, you don't make it up in volume and i think a lot of people are going back and saying, do you know what, the amazon showroom again, and bed bath & beyond disappointed, they are an amazon showroom. it's been an amazon quarter and it's so discouraging to merchants. i was speaking yesterday at a book conference, showing "get rich carefully" which is what i'll change my name to it's much easier. what were people talking about? amazon. just amazon

the good part about the xbox story, the ceo of gamestop was here. devices and cloud company now. >> do you think the company should split? we had rick on earlier and he said i think the chances of bringing an outsider in to really shake up microsoft are probably done for at this point. when you see such strength in those consumer friendly segments like xbox and like surface you wonder what happens to that company. >> i have a kcrazier idea. i saw cramer on this morning. why does he have to leave? i was thinking we were going to move departments and desided at the 11th hour the day before let's not move, it's such a hassle. shultz we're going to talk about later on. shultz came back. why not just not leave. >> he's not really leaving because he's still got 4% of that company. >> that's true. >> they're going to have to beat him with a stick to get him completely away. but, you know, really, the cloud stuff i think has got to be central here. and the question is does windows continue to be the core of this company? i think it really sacrificed a lot o