matt shapiro president of mws capital joins us now to talk about ibm. good morning to you, matt. > > good morning, angie. > > big blue has an analysts meeting coming up tomorrow. the stock has been rallying as of late. what do you make of this move? > > well you know a lot of people gave up on ibm for dead you know kind of big blue dinosaur, but here it is sneaking back and of course leading the rally in the dow jones we had yesterday. a lot of investors are hoping tomorrow with the investor day that somehow they're going to come back with some analyst's guidance to really give them some clarity about the top line. the main and the problem with ibm has been they just haven't been able to crack a hundred billion in revenue and grow that top line and that's going to be the big key tomorrow an the analyst meeting. > > and taking a look at the chart, the stock had tough time cracking back above $200. > > yeah you know it's really been the forgotten and the been down tech stock. it's only about a $200 billion market cap and it's kind of been forgotten. googl

like microsoft, ibm also powering higher today. is the trend rotating out of high flying stocks and into old tech names over? >> no i don't think so it's over. at least we have some sort of bottom in some of the high flying names. twitter, it's not a remarkable bounce but it is a bounce. i think you have seen stabilization in a lot of these things. linked in. i think netflix might have actually turned as well. i think the stocks have stabilized and headed up. i think we have a few more days of this at least. >> you have been burned by hike flowi -- high flying momentum names. >> once momentum names break they break. investors said you know what, the economy is not going to be strong enough to justify these high multiples. i don't see anything that says that's changed. why would i be in them? could we get a bounce? certainly. i guess i'm more in dr. adami's care. >> doctor? >> big news. this weekend guy adami became a doctor. >> if you're looking at chasing performance, you have got to chase these stocks again, it's so much easier f

look at the weekly chart of ibm. ibm's recent low in february, the stock meant not one, not two but three key fibonacci extension in priors swings. 172 level. the stock bottomed at 172. she actually really called this one like to the dollar. since then, broaden points out that the low has held and while it's pulling back it's not extended -- not extended at the levels. in fact when she looks at the daily chart, broaden thinks ibm is not just buyable, but extremely buyable here. she's got to be the only person who feels this way. first of all, the stock is sitting right above a thick floor of resistance made up of fibonacci levels running through 185. second, when broaden applies the fibonacci methodology to the x ax exof the chart, she notices that ibm could be meeting a confluence of fibonacci timy cycles between today and friday. talk about precise. again, the fibonacci ratios about where it will change course, so ibm could stop declining and start rallying this week. contrary to what everyone is thinking. the char

david faber with ibm., the ceo of opentable will join us live for another exclusive interview. yelp announcing it's launching its own on-line service, is opentable worried? find out. we're back after this. yelp, . >>> welcome back to "squawk on the street." it's been a tough session so far for elizabeth arden. the cosmetics company losing 84 cents a share in its third quarter below analyst forecasts for a break-even quarter. sales also fell short of estimates in and the company is exploring strategic alternatives, the stock down 17% at 29.52. carl? >> that is a tough action for a company that may or may not be for sale down the road via the south korean congom rate lg. >> i guess the brittney spears brand perfumes aren't selling. >> a lot of celebrity perfumes haven't done well. we keep dancing around 1900 which is going to be a battleground at least in the near term. lot of that dow component setting some new highs like a travelers and a mcdonald's but housing is interesting. you look at pulte among the t

i had a wonderful career at ibm. my real passion was about sales and i hope you can find your real passion as well. next, find mentors that really care about you throughout your career. successful career is a series of related experiences. finding someone that has the experiences you need and cares about you are important attributes. mentorship is not about gender and ethnicity. mentorship is about skills and experiences and a willingness to share those. mentors should not be measured in today's terms by how many linkedin connections you have. as a matter of fact, the best mentor you will have will be someone who was more proud of your experiences and success than you might be. in my case, i was the first african-american [inaudible] find a platform where you can showcase your talents and accomplishments. everyone of us needs an environment where we can learn and where we can make mistakes. this is not about strutting or showing off. it is about pushing the edge of the envelope and have someone help you calibrate how

ibm was reached for comment. no response yet. although this is part of the broader cyber security story ibm is likely taking a hit. >> what about the winners and losers here you go ibm would be -- losers here? ibm would clearly be the loser here. who stands to gain that market share? >> definitely some winners and losers in this one. should the review show a threat -- and the thought of courses it well. analysts believe china will use any excuse to promote its mastic brands -- its domestic brands. a company who servers are the china postal companies -- this comes as forrester researchers estimate purchase of i.t. products will rise 11% to $125 billion this year. that is an opportunity u.s. companies may not get to play in. thes this similar to situation affecting cisco, the maker of networking cut -- networking equipment. they have faced accusations that they cooperate with american security apparatus treated in that case the clinton -- apparatus. in that case the clear winter would be yahweh. are seeing parallel storylines. the

ibm and splunk. what's going to push splunk into ibm's arms? >> ibm needs data. we're seeing more and more spending for enterprises in this area. splunk is lebron james data. ibm for splunk makes the best sense. that stock has had the natural split over the last two months. >> sap which has been an under performer is getting a sole ceo in the next month or so. you say tableau? >> yeah. looking for water and growth and they can't find any. that's where i think m & a comes in. tableau, they have been an inquisitive company. they have more cash in some countries. i can see them looking at tableau. >> and microsoft and imperva? >> microsoft and it's really keeping up the cloud. you need security around the cloud. imperva is a natural fit here. i think it's one thing like cyber security is a big issue for more enterprise. they move to the cloud. that's where nadell is sort of front and center. i see microsoft making a security acquisition. >> as long as i have been doing this when you see these stories get cut like you have noticed, you have never seen the m & a. neve

to be honest, ibm is a big company.ent themselves from the old technology to the new cloud initiatives. they've got a lot to do. we think there's a lot of effort and work ahead, but we're not counting them down and out. what she's done so far, focusing on the cloud, big data, thing likes that, you think those are constructive moves, but i'm sensing you're not ready to buy the stock, in fact you downgraded it? >> correct. we think there has to be faster, the cloud is moving very fast and the competitive headwinds are. we ground graded the stock. we do expect ibm on wednesday to talk about the strength of the cash flow, to take that to move faster to the cloud area ahead, but we do think she is doing the right moves. >> in the 1980s and 1990s, are they in a better place to face today's challenges than they were at that time, two, three decades ago? >> without a question, yes. the company has even more cash, more cash flow. it's a lot more global, and companies are relying on ibm and infrastructure for computing more and m

below -- a below -- a big blow to ibm.t is not aware of any government house the wreck many against servers and that ibm is a trust the partner in china and has been from war than her years. class of is ike ibm got about $23 billion in revenue last year. if ibm loses business them what chinese upton is will benefit us and mark >> the analysts believe china will use just about any solution to -- domestic rants who's servers are already in use by the savings bank company, is seen as a potential winner. this game five when five percent on the news in hong kong. estimates of purchases in china i'verise about 11% to 100 billion dollars. companies might not get full participation. five i have a going this is not over yet. while them are rats have a you are own nominations for grabs, they're paying was attention a turn art of a strategy to purple urine blue and red make purple, is that the deal? west that is the deal. basically, we're looking purplee and red make purple, is that the at a national narrative that were up ofinst --

. >>> bluest of the blue chips, ibm ceo in a rare television interview saying that ibm is re-inventing itself with a plan for changing the industry and growth. >>> did fannie mae and freddie mac just make it easier for americans to get home loans? >>> and open for business, small business owners are feeling more optimistic but does that mean more jobs and will the economy roar back? we have all that and more on "nightly business report" this tuesday may 13th. >>> good evening, everyone, and welcome. records fell again on wall street today as the dow industrials and the s&p 500 each closed at record highs, more on that in a moment. but we begin with big changes being rolled out at a company that as much as any defines the permanent blue chip, you may earn more in portfolios or funds, it contributed not one bit to the rising markets, the shares were off slightly. the ceo sat down with a rare television interview, the conversation was extensive and expansive, and david fab oer jo his us from new york city, good evening, it was a long interview, i don't think i had ever seen her on tv befo

moving and shaking this hour, ibm's ceo jeannie were many.she has to deal with the company falling sales, and i'll bloomberg has learned that china is pushing banks to remove high-end servers made by ibm and replacing them with a chinese brand. all of this has to do with the where theng dispute u.s. has accused chinese military officers of stealing secrets from american companies. virginia rometty has enough problems there. sales fell 20% in china without these new issues. coming up, at&t's big takeover of directv could still be fumbled away at it all has to do with pro football. dr. dre, and the $3 billion foul whyh rant -- that might be we have not heard anything about apple and dr. dre's beat. stay "in the loop." we're just getting started on this tuesday. ♪ >> well, it has been weeks since we heard apple might i -- by -- beats, but could it be dr. dre's fault? it all has to do with his video in which they say dr. dre will become the first hip-hop planet. -- billionaire. >> the forbes list just change. they need to update. >> the first bil

how much growth might be in ibm's future? let's get some answers from the managing director of enterprise hardware with clsa america. welcome. good to have you with us. do you have a rating on this stock? do you like it at these prices? it's been basically flat or a little bit down for the past 12 months. >> it has. we have a buy rating, $225 price target. we're looking out to the end of the year where the investments that the companies are making will start to kick in and expect their business to start to turn by then. >> lou, what's wrong with big blue. is it one major aspect of the company that is not firing on all -- you know what i mean. >> cylinders. >> thank you. or it is many things? >> it is a number of things. it's a number of things that actually hit all at once. in the hardware sector which is about 15% of revenue, they are not in the good cycle, which is an eight quarter cycle but that should come back either at the end of this year early next. their power business has been weak. that's dragged them down. from a

the market with the ibm xd.acintosh comes out, so it's a moment when everyone's trying to get into the business and make something significant. >> but they're all terrified of ibm because of lawsuits and patents. >> basically what we are doing is building a clone that can compete with the ibm. that can use all the software in an ibm that's cheaper, faster, smaller than the ibm. >> but you have weird ways of getting what you want. >> yes, you do. you are weird in this. >> take that as a compliment. >> just motivated. motivated. >> he's very motivated. so when it was over, i was mad. where's episode 2? >> it's on amc, right? >> it's on amc. we'll be on sunday nights, 10:00/9:00 central. >> who's the young lady that plays the whack genius? >> lindsay davis. she's the one who sent me along with a gift for you guys. >> so she's not crazy? >> what is it? >> i think you'd like her a lot. she sent me with some moonshine from atlanta for you. >> is she a homegrown girl that makes this in her spare time? >> no, she didn't

. >>> perhaps no big-cap tech stock is more disappointing than ibm. it has missed most of the rally since 2011, but sometimes, sometimes pain now can be gain later. joining us is cantor fitzgerald global technology brian white. you've got one of the highest price targets on the street at 220 a share. why the optimism on a company that some recently have suggested may be simply too big to succeed. >> if you look across the i.t. landscape, a lot of these big tech companies have been challenged over the past 18 months. i.t. spending has been softer, number two, you've had a big shift into cloud and big data trends. and number three, the economies around the world, more recently have been soft, but i think as you get through these, when we look at ibm, the profit cycle, the sell side street analyst opinions have never been lower, only 14% of analysts have buy ratings. the lowest in a decade. i think they're going to make this transition. i like ibm here. >> but peter, you're not necessarily in agreement with that. i understand you do not need a near-term

his company was acquired by ibm. was his presence and his career life and also our personal lives where it is always nipping on the hills of what everybody else was doing. >> writers looking to do. worked we were working together in social media at disney. we were getting interested in technology and our lives whether it pushes us further apart or brings us together. we got to the genesis of the story was 1983 and the rise of the personal computer. and we saw an opportunity to tell people the story they did not know. any time you can do that as a for us.hat is a plus >> we talk so much about silicon valley and silicon alley and silicon beach. you are focused on silicon prairie. tell us about what was happening at that time. >> silicon prairie deals with the swath of area but when he dallas and houston and austin. company to the first reverse engineering in the pc. they were out of texas. michael dell was building room.ers in his dorm we also have texas instruments. civilizationch technology that synchronization techn

with jim saying ibm is quote facing a rocky time.ders are split whether things can turn around at big blue. pete is the bull and weiss is the bear. state your case. >> they've had to make this transition what everybody knew them as, a hardware company. now, that's only 15% of their revenue. they have been on this shift a while moving towards cloud and data analytics. this company truly has been on transition phase since 2005. stock hasn't really done a lot. not the most exciting stock in the world. they are a share shrinker. they retired over 35% of the outstanding shares. that tells me a lot about what they want to do for the shareholders and why warren buffet is in this name. i think it will go high sneer warren buffet goes in and out of names >> in and out of names he has held for 10 years. >> just because i'm not buying. she's been there 33 years. she does an interview and says we now have a clear vision. after 33 years you should have a pretty damn clear vision. the key to technology, you have to get in front of trends and not c

. >> and ibm is caught in the crossfire. china pushes them to remove service as a dispute with the u.s. over spying escalates. >> and a bloomberg exclusive. former georgian president says the ukraine vote is a big blow to putin. "the pulse welcome to," live from bloomberg's european headquarters in london. >> also coming up on the program, the ipo's are continuing thick and fast as lloyds announced it will sell shares in its state of tsb. will the deals be snapped up? here with more is caroline hyde. let's start with tsb. how much is the offer? >> 25%. it has been estimated that it is worth about 1.5 billion pounds. 370 5 million pounds could be up for grabs as quickly as next month. so far, it will be going to institutional buyers. they will also be depending on retail investors in a big way as well. people sitting at home, 2000 pounds they might want to put to work. and a bit of a bonus as well. if you are that retail investor, freeu buy 20, you get one if you hold onto it for more than a year. there have been a few concer

ibm has mostly excelled at this. they have struggled to stay relevant and a new world powered by the cloud. that is the cover story of bloomberg businessweek. it will be on newsstands tomorrow. joining us now is the author of that article. nick summers -- first, tell us, how does ibm want to re-create itself? >> they get that the cloud is a big deal. it is as significant a turnaround for them as they have faced in decades past with mainframes and servers and computer revolutions. ceo gets that this is a significant poitn for them. can they pull it off? this is a challenge they have never faced before. >> they have faced many challenges, in fact. what is the deal between them and the cia? >> this is where the story began. there was a telling episode where amazon came up with a public cloud. they faced off for this contract for cia. the cia awarded this big contract to amazon. that is the big shot for ibm. >> a wake-up call. >> this is the cia. they won a public cloud within their own walls. this is a job with the high

qwest is ibm the only company doing this sort of thing?this is been the first we have found that helps get you around the federal requirement with the data. talking to lawyers with ibm, they have not seen this specific situation before. some are saying, ibm is an innovator. now they are innovating, workers rights side of things. their pensionged years ago. they are known as an early mover in terms of employee benefits. >> thank you. coming up, drones. amazon is making a push to use them for package delivery. bringt the only one lot -- lobbying for the commercial use of these unmanned vehicles. a new sports car. .e got a behind look stay in the loop. ♪ >> here is a look at our top headlines this morning. no sire brands is joining a critical deal. birdseye vegetables, you can make the whole meal out of it. expected to close by september. sally and made a $46 billion offer for the botox maker last month. allergan said the deal substantially undervalues the company and is not in the best interest of shareholders. the washington monument in d.c

we are looking at how ibm is changing the retail business.son be working in your favorite retail store? they are partnering with ibm to launch a personal shopping app. allow customers to ask questions like "what kind of jacket do i need for a trip to tahoe next week?" it will respond with a list of related products. the ceo is here with us. how does this work? if i could use anything, it is a personal shopper. >> if you think about agile technology, it brings you angst -- price, convenience, selection. think about that when you work into a fashion store, walk into rei. they ask questions. they quickly get you the right product through the online experience is very self-directed and requires the end-user to do a lot of work. >> and there are so many choices, it makes it even harder. >> how do you find that right experience? if you go to amazon, the shopping experience is not that great. you do not have anyone to help you figure out where is that exact right product? the right product for my specific needs. this has a couple of different our fu

what is the issue for ibm? we will tell you exactly what it is. ♪ quarks is most likely to be in -- >> it is most likely to be a reduction in -- what is important is to work with attention to the euro devaluation because if we need to grow, we need to have internal demand. executives the chief call forina with his car the ecb's next move. here is one stock that is on the move. you can see intercontinental hotels. press reports over the weekend that intercontinental stock is trading at an 11 year high. the biggest move since april 2003. a rejected a takeover bid in the u.s.. they're valued at more than 6 billion pounds. we'll keep an eye on that stock through the day. onll with us for his view bowers.s wayne he knows a thing or two about what to do with risk. talking about negative rates. talk about what he expects from the ecb. he better deliver next week. is that fair? there's a huge amount of expectation. >> i think the way drug he has played this in the last 6-12 is words are greater than actions. the market

, so ibm was really this presence in his career life and also our personal lives where it was alwaystting at the heels of what everyone else was doing in texas. >> and i think the writers in los angeles are kind of looking we were chris and i met working together in social media at disney and we were kind of getting increasingly interested in the role of technology in our lives, you know, whether it pushes us farther apart, how it brings us together, and we thought kind of the genesis of that story was 1983 and the rise of the personal computer, and we saw an opportunity and what was happening with engineering to kind of tell people the story they did not know thomas anytime you can kind of find out, that is a pleasure for us. talk so much about silicon valley and silicon alley and we talk about silicon beach, but you are focused on silicon prairie. tell us about what was happening at that time. >> silicon prairie really deals of area between dallas, houston, and austin, and topaq was the first company reverse engineer the ibm pc, and they were out of texas. michael dell was willing

it's ibm 's analyst day. the ceo rinni rommety could face a tough crowd as she attempts to revamp the company. hertz car and rental company is requesting extra time to file its quarterly report, because of errors and, there may be some fallout today from a chicago air scare. flights in out of midway and o'hare were halted after smoke from a faulty ventilation fan at a radar facility. trader larry shover of sfg alternatives joins us now to talk about the record levels in the market. good morning to you. what are you eyeing? > > right now i just continue to look at the broad market and you look at the differences of what's going on underneath the surface. we see yesterday the s&p kept bumping up against 1900 and right now people are just wondering what's the next move? what industry's going to take us to the next step? it's really hard to figure out. > > oil is on the run, what's prompting the oil run? > > yeah yesterday we saw 1 percent up movement in wti. i think from today people are looking for the inventor

ibm is going to hit the revenue in 2015.is what kind of company are they going to have left when they get there. i have talked to a lot of short-sellers at ibm. they throw the phrases around a to from share buybacks non-gap accounting or nonstandard accounting. there are only one in four analysts that bloomberg tracks. they are the only member of the doubt to -- of the doubt to lose value last year. and on the other side is warren buffett. that's a pretty remarkable person to be going up against. >> thank you so much. cover of businessweek. you want to catch it. >> welcome back to market makers. i am stephanie ruhle. >> and i am matt miller. i was waiting for the prompt her to roll to remind me who i was. who.n burgundy, that's >> few families in america are as controversial as charles and david cook. ch.y are each worth -- ko they are each worth more than $50 billion. they have spent a huge chunk of that aruba last -- over the last few years on campaigns. make that ant to issue. >> the koch brothers. the koch brothers. the

the issue now is how can ibm exploit what they have created. so they are now setting up a new business unit. they put $1 billion behind the bar for this. what they want to do is encourage government, hospitals, big store retailers and others to come to them for this kind of software. because they think it would fit neatly into the big data crunching that a lot of these operators are doing. so ibm hoping watson pays big for them. back to you, thomas. >> thank you. we're going to keep along this trend talking about creative innovation. there's new technology to help you control your dreams. it's allowing people to remain lucid. a targeted electrical current lets patients control their dreams. tweet us your responses. we're going to put the cleanest ones on the air coming up later in the show. >>> still ahead on "way too early," the clippers stage an impressive comeback. did they have the energy to even the series out? what a great game. >>> a scary moment in iowa. what led to the traffic stop and what happened to that officer. that story and a ch

you saw some of that coming through with the ibm leave. d. rackspace would favor more security, and get more traction with the customers. >> are there specific security flaws that currently exist using loud technology to store data? what we're saying is that security is a concern that has gone from 20% of customers to 40% of customers worrying about it. the reality is that the cloud vendors can secure their infrastructure, but what they have a harder time doing a securing the data of the customers. focusing on data would be helpful. is the slowing the adoption of the cloud services by large enterprises? >> definitely. we have seen about 70% of enterprises, where their employees have adopted cloud. it is not as large as one might think. i am wondering if you can talk about the competition that rackspace finds not only among the companies that provide cloud services, but the competition to do things without using the cloud at all. >> fundamentally, there is a notion of public and private cloud. the idea that the services but aloud would offer -

i actually look over to ibm. i look to hewlett-packard and the big names that maybe are late, maybe they're slow, but they're getting themselves -- >> you don't go to seagate? >> i do love those names and the big data, analytics, that type of space. i love those names. specifically seagate because it hasn't participated the way western digital has, and it's trading as a discount. >> what's interesting is all the sectors aren't rally on rackspace news. none of them are participating in this rally. so it tells me it's short-covering on rackspace, and you want, to pete's point, go to quality where valuations are palatable. >> they did add thousands of new customers, rackspace did. [ overlapping speakers ] >> -- yeah, absolutely. i'm not as negative as what i feel like i'm hearing right now about rackspace at this level. >> you wouldn't run away -- >> i wouldn't run away from it, but i'd rather be in microsoft, which i am. >> ibm ceo sat down with david faber earlier today. here's what she said about the outlook for

they cannot buy and sell, that is a problem that ibm has.ve basis you have to dramatically downsize and get your cost within control. >> you cannot be in california and sell to the cloud. you are already in a country with an unbelievably high corporate tax rate, and then you will or any state within unbelievably high tax rate, were people want to be paid a lot more than others. we cannot build hired where there -- hardware there. >> this is mostly coming from overseas. this is more structural than that. aree buyers of hardware buying it for substantially lower than what hp ibm and dell can sell it. at best -- or at worst they can toe revenues, and it goes foxconn, and at best the consumer comes to them and says i am a long-time hp customer and i will stay with you, but i will pay $.25. your margins are direct leak impacted. -- directly impacted. you can sell lower margin hardware, but we will see -- >> it seems like either way they're going to be up against a huge uphill for a while. what do they have to do to make some inroads with the clou

use only 100 shares of ibm, there is no more money in ibm as before. marginal people that make a difference. forward, there are people who are still skeptical, concerned about what we saw five years ago as the norm rather than the aberration. people who are seeing the earnings numbers coming through, the fed saying they will be accommodated, and those people are changing their minds. maynard keynes who said success is anticipating the moves of others. might likeugh you europe better, you still like the u.s. >> absolutely. >> what is the best way to play a u.s. continuing rally? >> i am right in the middle of it, but the older ones are about to hit 70, and they will live a long time. they will have to fund that with high-quality equities. those are still quite reasonable. i like three sectors. industrials. we are seeing an industrial resurgence here. tech, and energy. >> thank you. we will talk to you soon. on the markets again in 30 minutes. ♪ loan from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle.

intel, hp cisco, and ibm. > >what about old guard names such as ge or ibm what are you doing with those stocks? > >i generally don't trade those names that much because they don't move. and as an options trader i like volatility and i seek out volatility because it presents opportunity for me. all the names i previously mentioned are good plays in my opinion but they do represent more risk because they do trade like momentum stocks than blue chip value plays. > >thank you james. that's our show for today! as always feel free to follow us on facebook and twitter. or send us an email. we look forward to hearing from you. from all of us at first business...thank you for watching! >> announcer: the following is a paid presentation for dermawand, brought to you by international commercial television. [♪.. >> hi, i'm lisa varga. i'm 40 years old, i've never had cosmetic surgery and i'm not afraid of high definition cameras. bring them in closer, guys. closer. good. now, do you want your skin to look as youthful, fresh and line-free as it can? well, get ready, because going to share with you r

big names like ibm or amazon.com.r the last year a number of smaller companies in the industry have gone public and had tremendous gains but have fallen on harder times as this investors moved away from the sizzle. cloud companies, benefit focus and rally software are down big year to date. meanwhile, bigger name companies with cloud exposure are up, like ibm, microsoft and hp. some believe that is a trend that will continue. >> it will get a lot tougher for the smaller guys to be competitive in the cloud because there is a big infrastructure, a lot of money spent to build this cloud. and so ultimately it is a bigger advantage to the larger companies that are service provider's to the cloud. >> that is not to say the smaller companies won't do well. after all, if that is what they and provide a nice pay day for investors, but bets are placed on the big companies in the business. >> the two big winners will be google and amazon, google is came with windows xp, the one that microsoft says it will no longer service. >>>

ibm, mcdonald's, microsoft rounding out the top five.re the best brands necessarily the best stocks? pete? is google the best stock of that bunch rkt of that five? >> you know, i love google, but for my taste, no. i would put apple up there. the reason it slipped is this is a stock that's been up there, everybody's looked at this as a brand that's been number one r for, what is it, the last three, four years. and i think it's because of the revolutionary products. obviously, and we've been pounding the table on the desk, we'd like to see that revolutionary product line continue to grow. i think we might actually see that in the second half of the year, scott, when they bring in different size, different everything, and maybe we start to see more in the wearables department. i think that gets us excited. that's why i think so many people are in the stock itself. the coopermans of the world, the icahns of the world, bill miller, as well. i think the folks in apple right now are anticipating that we're going to see something more in the pro

too risky for me. >> i want to know your thoughts on ibm. it is down a lot. >> i gave up on ibm.ouldn't take with it the last thing with the chinese. they're going to say they're very big in china. every time i cotton up to it i end up getting crushed. it has been a big disappointment so far in 2014. i think it will stay that way. what could we learn from the microsoft sales force deal? there's a tug-of-war. it is old versus new. i favor the old. still ahead, many eat their wheaties but a chosen few ever make it on the box. i'm hitting the slopes with sage kotsenburg as he gears one some of the biggest brands in the business. from smart phones to smart homes. will the reveals put rumors to rest? we take you inside. >>> in the cut throat world of packaged food where they fight tooth and nail through the supermarket aisles, hardly anything is more important than branding. even the slow growing brands can have tremendous value. just witness the huge bidding war. the maker of jimmy dean sausages. catapult that 45% higher. in a week? when it comes to brands few are more iconic than wh

microsoft, ibm, apple. >> i like to think about things in three buckets of tech. we'll put dave in the hot tech bucket. we see in the new tech bucket and the ibms and hps, generally if you look at normal metrics. old tech is generally undervalued. new tech, and then we saw the large correction in the hot tech. which was way overvalued and somewhat corrected. when we look at tech overall, it's not extremely valued. over here in the super hot tech, it's still pretty, you know, laid up there in the strats fear. >> he just said you're stock valuation is in the strats fear. >> i disrespect respectfully. you're finding newer companies with much bigger market opportunities than we ever saw before. so whether you think we're overvalued or not, i think you have a situation where the market elasticity is massive for companies like us. for vmwear, too and fireeye, we have seen more marketing opportunities than ever. >> thanks for joining us. straight ahead, hear from palo alto and speaking with marc andresseen. >> coming up next, gold sliding over 2% as the market hit new hi

. >>> three big stories on three big dow component today, at&t, fizers and ibm. let's start, though, with at&t, the company reportedly in talks now to buy the satellite television provider directv for close to $50 billion. that is sending shares of directv much higher -- well, i guess not. down now about 60 cents. at&t off by about 38 cents. then there's pfizer, its ceo grilled by the uk lawmakers over the plan to buy astrazeneca. meg tirrell is on that story. first let ales begin with morgan brennan on the at&t/directv talks. >> hi, tyler, 92 to 94 a share. that's how much at&t could pay for directv if the reports are correct. that would put the price tag at just under $48 billion. the companies aren't commenting, but a deal could be reportedly reaped within the next several weeks. what would at&t actually get for that price? for starters, expanded reach in pay tv, combined it could offer a triple play package to almost 27 million subscribers right now the u-verse products only reaches about 5 million, and they already partner in certain markets. compare that to

ibm. the stock is still trying to find its way. it's down 2% in 2014, but down 11% over the course of the past year. now, remember, warren buffett's berkshire hathaway way owns nearly 7% of this company. they still see value there, but the question is, when will other investors. >> down 2% over the past two monlts in a rising market. sue? >> there's a lot of headlines coming out of the conference, so is tech the place to be right now? this gentleman's going to talk to us about that. mike holland is chairman of holland and company. welcome back. >> thanks for having me. >> you own a lot of these big cap names, the apples, intels, google, microsoft, ibm. one of the questions we're asking today is are they basically fairly valued at these levels? some have had quite a run. >> if you just take a look at what you saw with intel, i think the answer is clear to me that there's very attractive potential upside to the stocks at these levels. intel is down two. rick santelli was just talking about a 1.45 treasury. that's an incredible pick u

the chinese government is urging companies to dump their ibm servers.dst of trying to acquire pinnacle foods. last friday, the s&p closed over 1990 for the first time ever.

google does have a big -- they could -- >> ibm is starting its watson center in the fall in the flatron area. >> people telling me they have good stuff involving spectrum and be careful. don't go against ibm even though i am. >> even though you are. >> yep. >> we got so much more to talk about. >> carl is where -- i mean -- >> carl is where -- >> can we give you the ball? you are our running back today. we're playing defense, linebackers or cornerback maybe. >> i'll see you guys in a few minutes. >> he will take the ball in a few minutes. by the way, those drivers, driverless taxi in new york city one day but what about all the immigrants. the first rung, man there won't be any. >> we don't want robots -- >> 25 mile an hour driverless taxis. sha hail with your smartphone. maybe our lifetime, maybe the very end. >> can we just worry about the quarter? >> when we return by the way we'll talk about companies that are taking steps to make acquisitions or at least try to. first among them, valeant, which increased its offer for allergan. you heard jim mentioned smith and nephew, an ft sto

i had many, many career steps in my time at ibm.d ask along the way i got a call one day from the cfo of a company that said, john, we would like for you to become the number two financial analyst for our company in americas. and all i had as a background was two years -- no, actually, one year at mit and four years here at florida a&m. but they had enough confidence in me that they were willing to allow me to take that risk. a few years later they came back and said how about taking a risk on a software -- [inaudible] and i'd never written a line of code that worked. [laughter] and then lo and behold, 27 years, 9 months and 13 days later, i decided that i would take big risks, and that is leave the comfortable comforts of ibm to go run a little company called she man tech. that risk was incredible, and that risk certainly paid off well for my family and the investors in our company. last week every career journey -- lastly, every career journey undoubtedly will have many twists and turns. with every up, there will be some downs. bu

it is hard to reinvent ibm. it is not just medium old tech. >> for quite a while, you wonder is that the right strategy or a different one. are they continuing to stay the course with that. >>> what we think of generation, experts would say microsoft is old tech. i b ibm is dealing with microsoft and google. and now they are dealing with facebook and -- they have to come all the way around. and i just don't know whether -- >> have you talked to warren about that? >> he says he would sell it -- he's buying more but he's saying if he ever lost confidence, he would be quick to move. >> he said he would consider buying more. not right now but maybe more. >> maybe it was me that thought he was implying, knowing buffett, if he really saw that it was on the wall. >> i was surprised by, a, he was buying more beer. and he was fighting for this year. you would have to say if it went down and bought more. it was one that he was in until he wasn't. so we'll see what happens. >> i was surprised at how resolute he sounded tha