julia boorstin is in l.a. live and in person, not on facebook, with more. >> reporter: well, brian, the s.e.c. is looking into whether netflix ceo reed hastings violated fair disclosure rules. back on july 3rd, hastings posted on facebook telling his 200,000-plus followers that netflix viewing topped 1 billion hours in june. that's his post right there. now, check out this july 3rd chart. the stock gained about 4% before his post. about 2% after before the markets closed early for the july 4th holiday. but on july 5th, netflix flew 13% higher. they say this pop was due to hastings disclosurdisclosure. hastings knows that the stock started to gain before his post on a positive citigroup report that gave netflix $130 price target. s.e.c.'s final verdict on this

julia boorstin is in l.a.ive and in person, not on facebook, with more. >> reporter: well, brian, the s.e.c. is looking into whether netflix ceo reed hastings violated fair disclosure rules. back on july 3rd, hastings posted on facebook telling his 200,000-plus followers that netflix viewing topped 1 billion hours in june. that's his post right there. now, check out this july 3rd chart. the stock gained about 4% before his post. about 2% after before the markets closed early for the july 4th holiday. but on july 5th, netflix flew 13% higher. they say this pop was due to hastings disclosurdisclosure. hastings knows that the stock started to gain before his post on a positive citigroup report that gave netflix $130 price target. s.e.c.'s final verdict on this is sure to set a very important precedent for how companies communicate not just on facebook but also on twitter an linkedin. brian? >> all right, julia boorstin, thank you very much. >>> as more ceos find themselves in hot water, it also begs the question

our julia boorstin spoke exclusively to the ceo of spotify about the next big thing."power lunch." i always wait until the last minute. can i still ship a gift in time for christmas? yeah, sure you can. great. where's your gift? uh... whew. [ male announcer ] break from the holiday stress. ship fedex express by december 22nd for christmas delivery. >>> cnbc's julia boorstin getting a big exclusive one on one interview with the ceo of spotify talking about the next big thing. can't wait, julia. >> well, sue, some new milestones for spotify today. it has 5 million subscribers to its $10 monthly service and 1 million of them are in the u.s. and 1 million have been added in just the past three months. the ceo saying it took rivals a decade to reach that million mark. the company saying it has paid half a billion dollars to argus record labels. the ceo and investors just unveiled some tools to navigate spotify's 20-million plus songs including a follow tab and a discover tab for recommendations based on everything from users' listening history to how old they were when a s

over to julia boorstin. >> reporter: facebook continues to look for new business models but this one could be very controversial with users. facebook is testing charging some of its use first they want to e-mail people they are not connected to. this is part of an overhaul of facebook's messaging system, adding new filters, and facebook calls this a small experience to test the signals of economic signals. what does it mean? it will charge fees starting at $1, and it's limiting the test to individuals rather than companies or brands, and in order for this not to feel like spam it's only allowing users to receive one paid message each week. now, investors may be happy that facebook's testing yet another way to make money, but messages that look like paid spam could really alienate users. scott, over to you. >> all right, julia. thanks so much. julia boorstin for us out in l.a. >>> up next, it's the closing countdown. >> get all fired up for that, and then we're just members away from research in motion and nike earnings. how hot has rimm been lately? >> huge, huge comeback. >> absolut

phil lebeau and julia boorstin all over those big stories. phil, you first. >> sue, right now as we speak a technical team from boeing is in new orleans looking at that dreamliner after the emergency landing. we'll have the latest in just a bit. >>> but first out to julia in los angeles. >> netflix says the company is taking a big step forward. we'll tell you how and how much it is worth after the break. he loves risk. but whether he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the market, he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade. which isn't rocket science. i have obligations. cute tobligations, but obligations.g. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of yo

. >> and our julia boorstin has the 2013 trends which you cannot miss so keep it right here on cnbc.ate in economics, and one of the most cited economists in the world. professor sargent, can you tell me what cd rates will be in two years? no. if he can't, no one can. that's why ally has a raise your rate cd. ally bank. your money needs an ally. excuse me, sir i'm gonna have to ask you to power down your little word game. i think your friends will understand. oh no, it's actually my geico app...see? ...i just uh paid my bill. did you really? from the plane? yeah, i can manage my policy, get roadside assistance, pretty much access geico 24/7. sounds a little too good to be true sir. i'll believe that when pigs fly. ok, did she seriously just say that? geico. just click away with our free mobile app. >>> the first class action lawsuit has been filed as a result of instagram's proposed terms of service change that would have allowed the social media company to sell users' photos without permission for advertising and the idea created a big backlash that forced the company to apologize a

let's go to julia boorstin in l.a. for more on this story. julia? >> reporter: melissa, we just spoke to netflix and asked them if they had additional comment. and what they pointed us to is the attachment of the filing exhibit 99 1-a, in which he said we used facebook to communicate with our members. basically saying they do treat speaking to facebook as speaking to the public. and he goes on to explain what's going on saying in july he posted on facebook to over 200,000 people who subscribe to reed hastings highlighting the strength of the content. and he explains what's going on here, the sec staff informed them yesterday that they're recommending that the sec bring a civil action against them for that july 1st billion hour post. saying in that post, he violated reg fd. hastings goes on to say that he thinks posting to over 200,000 people counts as public since many of those are reporters and bloggers and they don't currently use facebook and other social media to get material to investors and they do that separately and there's a lot of conversa

let's bring in julia boorstin. what is going on here?x, hulu and even cable television and special shows with a special twist, consumers will have a say in which pilots it'll produce. amazon is producing six comedy pilots selected from 2,000 ideas submitted to amazon studios. most of which have tv industry veterans involved. amazon the post the shows for everyone to watch inviting feedback. crowd sourcing the green light process. the completed series will be available exclusively to subscribers to amazon's $79 amazon prime service. now, amazon prime is trying to add subscribers as its competition with hulu and conflict both which are some original shows. netflix secured access to disney content blurring the line between what is television and what is digital distribution. amazon's ability to draw tole hollywood talent, including daily writers and big bang, they overhaul the way media conglomerates think about television. >> thank you. as long as they use content, i'm happy. >> competition tore them, and for the consumer. >> next on "stre

julia boorstin is here with the reason why. >>> and pot smoking in a chris letter plant getting a lotbuzz on twitter this morning. phil, tell us about that. >> this is one of the stories where people are saying, are you kidding me? you can pretty much do anything and still keep your job if you're in the union. we will explain when "power lunch" returns. tdd# 1-800-345-2550 you should've seen me today. tdd# 1-800-345-2550 when the spx crossed above its 50-day moving average, tdd# 1-800-345-2550 i saw the trend. tdd# 1-800-345-2550 it looked really strong. tdd# 1-800-345-2550 and i jumped right on it. tdd# 1-800-345-2550 tdd# 1-800-345-2550 since i've switched to charles schwab... tdd# 1-800-345-2550 ...i've been finding opportunities like this tdd# 1-800-345-2550 a lot more easily. tdd# 1-800-345-2550 like today, tdd# 1-800-345-2550 i was using their streetsmart edge trading platform tdd# 1-800-345-2550 and i saw a double bottom form. tdd# 1-800-345-2550 i called one of their trading specialists tdd# 1-800-345-2550 and i bounced a few ideas off of him. tdd# 1-800-345-2550 they're alway

julia boorstin with the story on this big bet.r to you. >> investors are clearly relieved to see zynga is trying to make money from online gambling. getting a game license in nevada is a key first step. but a much bigger hurdle is the fact that online gambling is illegal in the u.s. zynga could be sitting on a gold mine if even a few percent of its monthly poker players gamble. even if online gambling does become legal, all the big casino owners would pose some very steep competition. bill and maria. >> indeed. julia, thank you. despite today's gains, shares of zynga still plummeting this year, losing some 70%. does this news change the outlook? let's start talking numbers on zynga today. on the technical side, mark newton with grey wolf execution partners. on the fundamental side, paul hickey. does this make you want to buy the stock? >> not really. the biggest hang-up is the valuati valuation. for growth stocks in general, when a valuation isn't always a hang-up, but the problem with zynga is by most metrics, its growth is eithe

. >>> i'm julia boorstin with your cnbc market wrap. new jobs report well-received on wall street as the dow closed up 81 points, the s&p gained 4, and the nasdaq slipped 11 points. >>> overall positive reaction to the 146,000 new jobs added in november. cynics warn though that the number doesn't tell all. >>> meantime, the nasdaq was dragged down by apple's 2% drop. apple stock formed the infamous death cross where the 50-day moving average falls below the 200 day. that's if for cnbc, first in business worldwide. now back to "hardball." >>> well, this isn't a progress report because there's no progress to report. when it comes to the fiscal cliff that's threatening our economy and threatening jobs, the white house has wasted another week. >> welcome back to "hardball." that was speaker boehner's downbeat assessment of fiscal negotiations. he went on putting blame squarely on the president. let's listen. >> this president has adopted a deliberate strategy to slow walk our economy right to the edge of the fiscal cliff. it's time for the

julia boorstin, i can understand if a stock falls 3% or 4%. pandora's down 19%. what happened? actually beat expectations, brian. but the stock, as you saw, is falling off the cliff. it's because the company blamed the fiscal cliff for its dramatically lower fiscal fourth quarter guidance which has sent the stock plummeting. it was down as much as 20% earlier today. the ceo joe kennedy says advertisers are being particularly cautious about spending in january which is included in pandora's fiscal fourth quarter. >> we did reduce guidance. i think it is very prudent because of this unique situation we have in which we're sensitive to the mix of ad spend in january as opposed to february and march. >> now, the last time pandora's stock dropped this much in one day was back in october on reports of apple preparing to launch a streaming music service. wall street analysts are keeping an eye on those very tough competitive issues as well as the fact that pandora spends over half its revenue on music licensing fees. the c.o.o. says he thinks the company is on good track and points to

let's bring in julia boorstin with more on this zynga story. like if they get it, a completely transformative thing. >> it would be transformative and zynga's definitely pushing forward with its plans to eventually make money from online gambling but the key thing here is that this is really a ways off. the stock soared as much as 9% higher this morning after it came out that zynga applied for real money gaming license in nevada which the company says will take as much as 18 months to get approved. but we have to remember that online gambling is still el legal here in the u.s. zynga has been lobbying for congress to change the law. texas's "hold 'em poker" has a million monthly users but it will be a long road to turn all of those people or even some of those people in paying gamblers. >> a long road with hurdles like you noticed, the biggest one to get congress to approval legalized online poker or other forms of gambling. but there's been movement for that. you talk to zynga insiders all the time. is this something people think could actually

our julia boorstin is in los angeles with details on that. >> reporter: bill, netflix shares are soaring more than 13% right now in a major deal with disney. netflix has beaten out pay tv channels for rights to disney's valuable catalog and its new titles starting in 2016. this is a landmark for fnetflix. it's the first time it rather than a premium cable network has secured these rights from such a big studio. the fact netflix has a similar deal with dreamworks animation puts it in a position of strength when it comes to on-demand kids content. there's no comment on the financial terms of the deal, but netflix must have paid up pretty big to win over disney's studio. maria, back to you. >> thank you so much, julia. about 50 minutes before the closing bell. >> much more on that deal. that's huge. did you see the move on netflix? >> one of the biggest movers on the day for sure. we have a market fractionally moving. the dow jones industrial average up about 20 points. there's netflix. >> big move. >>> companies are actually borrowing money to issue those special dividends in some cases be

julia boorstin spoke to the company's ceo. the story. >> maria, pandora's earnings may have beaten expectations, but all investor ts care about is ty reduced their fourth quarter guidance, projecting an adjusted loss of as much as nine cents per share, sending the stock down as much as 20% earlier today. the ceo warned he expects advertisers to be20%. they expect advertisers to be particularly cautious about spending in january. >> we did reduce guidance. i think it's very prudent because of this unique situation we have in which we're sensitive to the mix of ad spend in january as opposed to february and march. >> that pandora is no stranger to volatility. it dropped nearly as much in one day in october and reports that apple is moving towards a streaming radio sir advice which would be seen as a rival. also another factor weighing on pandora's stocks are concerns about its licensing fees. 55% of its revenues are spent on its music costs. maria? >> julia, thank you so much. we'll be watching for the developments there. will t

. >>> i'm julia boorstin with your cnbc market wrap.ow falls 13, the s&p is off 2, and the nasdaq loses 5 points. one big winner today was netflix. shares rose 14% after walt disney agra greed to give the company online streaming rights to its moves in 2016. facebook gained 1.5% and yahoo! bought on the air for an undisclosed sum. that's the latest acquisition for ceo marisa meier. that's it from cnbc, first in business worldwide. now back to "hardball." >>> remember the twilight zone on television with rod surgicli. according to the public policy poll out today, 25% of republicans, that's a quarter of all republicans you know, say they would support their state seceding from the union because of president obama's re-election. another 19% said they weren't sure whether their state should secede or not. that means leave america, become something else. it isn't just people tell anonymous pollster. in many states people were signing in open public marketplaces out in the street petitions to leave the country. in seven states the petitions

julia boorstin is live in l.a. with more. >> good morning to you, carl.zynga can make money from online gambling. applying for a real money gaming license in nevada is a sign of zynga's seriousness creating new revenue streams. it sent it up as much as 9% higher today. the company warns it will take as much as a year and a half to get approval in nevada but the biggest step of all is a change in federal law, and if online gambling does become legal nationwide, zynga is sure to face some big competition from the casinos. zynga is struggling to sell virtual goods, hoping to cash in on games like texas hold 'em poker, that app and game has 34 million monthly users, but it's a long road ahead for zynga with no guaranteed success. carl? >> julia boorstin in los angeles, thanks. >>> trading about to come to a close overseas, we'll get you the action live and pick up on that conversation that yra and rick were just having about draghi, in a couple of minutes. . . tonight our guest, thomas sargent. nobel laureate in economics, and one of the most cited economists

that. >> was julia boorstin with her predictions for 2013.rkets here we're still off of session lows after speaker boehner gave some remarks, some market analysts said he didn't entirely slam the door and that is a good sign. we're down about 12% on the dow jones industrial average, s&p as well the nasdaq faring the worst of the major three, seeing some losses at apple and research in motion down 16%, david. that should be interesting to watch also in 2013. and maybe 2014 according to the ceo because it is going to take that long to gain some traction. >> the key of course is surface revenues and what is going to happen. >> here's what you might have missed if you're just tuning in. >> welcome to hour three of "squawk on the street." here is what's happening so far. >> oh, my. the first zombie might be somewhere waking up right now and walking toward "squawk box." >> i think we have a certain period of time several quarters where we will transition from blackberry 7 over to blackberry 10. >> if there is going to be a rabbit pulled out of this

julia boorstin in l.a.people who created groupon but bommerang is a lot more than daily deals. it is taking social gifting to a whole new level. namely, the local level. the ceos are going to join us live after the break. and i took nyquil,e a cold, but i'm still stubbed up. [ male announcer ] truth is, nyquil doesn't unstuff your nose. what? [ male announcer ] alka-seltzer plus liquid gels speeds relief to your worst cold symptoms plus has a decongestant for your stuffy nose. thanks. that's the cold truth! it's easy to follow the progress you're making toward all your financial goals. a quick glance, and you can see if you're on track. when the conversation turns to knowing where you stand, turn to us. wells fargo advisors. where you stand, turn to us. ...so as you can see, geico's customer satisfaction is at 97%. mmmm tasty. and cut! very good. people are always asking me how we make these geico adverts. so we're taking you behind the scenes. this coffee cup, for example, is computer animated. it's not re

kennedy will discuss challenges facing that company later this morning live when he talks to julia boorstin and live coverage of the president with remarks on the fiscal cliff before the business roundtable. can he convince corporate leaders he has the right solution for avoiding the fiscal cliff. one more look at futures this morning on a wednesday. look like open 28. "squawk on the street" is back in a minute. >> there's a look at citi. the news on the bank this morning cutting 11,000 jobs. still working on a percentage of what that is on the overall workforce. they think it will be a pretax charge of about a billion dollars. savings of 900 million in 2013. rising to about 1.1 billion in 2014. we'll keep an eye on that name. >> very big. >> yeah. shares of pandora taking a hit in premarket trade. online music service beat expectations with third quarter results. ceo joe kennedy says pandora's advertisers are displaying caution about spending because of the fiscal cliff. he'll be on "squawk on the street" at 11:40 eastern time. and netflix paying for exclusive rights to stream disney movie

julia boorstin has the news and what it means for the social network. facebook is making another move in the mobile space. now anyone can sign up for facebook's premobile messages app just with a name and a phone number. you no longer have to be a member of the social network. the streamlined sign-up process will help draw more users in emerging markets where people are less likely to have an e-mail account for computer access and facebook doesn't currently make money from messenger which includes free texting and group chat and photo sharing. but it hopes to draw more people to sign up to facebook where more users translate to higher profits. >> when people find more messages with messenger or using the product more they are using the facebook main app and because they are truly cross platforming when you send a message sometimes it also goes to desktop and those are areas that we do monetize. >> this is just the latest in facebook's moves to make more money on mobile. it's revamped its mobile apps and slowly rolling out more mobile ads. it's not avail

. >>> julia boorstin joins us to talk about all the buzz surrounding netflix this week. well, i actually think that reed hastings is going to try to get to get netflix's house in order, they've been living down the i would say communications snafu and i would say a public relations disaster when they tried to hike up prices and split off streaming the dvd business and ever since then reed hastings has been trying to show investors he knows what he's doing and i think that the disney deal he just struck earlier this week is a real landmark for the company and shows that netflix can compete on the same level as an hbo and showtime and stars and i think he'll try to secure a deal like that and he's in the process of making the company more valuable and he'll probably try to continue going down that path. if he thinks he could get more for the company. >> netflix business model, julia, that they came in and bought rights to stuff to show it online cheaply until everybody else figured out that there was value there and so their business model was undermined. we were at a poin

julia boorstin has details on that. >> good morning.pening its messaging app to millions if not billions of people that don't use facebook right now. messenger's new process requires a name and phone number. no other information necessary. emerging markets where people are less likely to have e-mail or computer access. facebook doesn't currently make money from messenger which includes free texting, group chat and photo sharing but the company hopes to use the mess answeringer a messenger app. >> people will be on facebook more as a result of this feature. over time what we're building right now is a large ecosystem and there are ways for us to kind of bring value to a lot of different parties in this ecosystems. >> facebook is praised for leveraging its mobile infrastructure saying it really focused on growing the business in a way that attracts new users and keeps existing users engaged. now, this is just the latest in facebook's many moves to make money on its growing mobile user base. it revamped its mobile apps and is rolling out m

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julia boorstin with her predictions for the new year. >> it's all business for social media in 2013.will rev up mobile apps, creating an ad network to take on google and look for new revenue in search and apps. >> building on gifts, facebook will create new ecommerce options and focus on selling more digital content. expanding beyond the partnership with apple's itunes, adding more music, tv shows and movies. look for twitter to file for an ipo by the end of the year. in the meantime, they'll grow revenue through new ad products and tools for marketers. plus, it will try to add users by creating an easy news feed for those only interested in following and not tweeting. and as twitter competes with facebook for advertising, expect more twitter/facebook spats. 2013 will be the year of social ecommerce. even the most traditional retailers will add likes, pins and tweets into websites. and pinterest will embrace online sales. while deal a today sites like group-on and living social will diversify into a range of social mobile shopping options. but there are likely to save themselves, mor

don't even have to be a member to use this new app and julie boorstin is in los angeles with the three things you need to know this deal. hi, julia. >> hi, sue. well, facebook is continuing its big push to make money on mobile users by offering its messenger app to billions of people around the world with phones and no longer limiting that app to facebook users. here's the deal. first, mobile messenger is a free app for texting, group chat and photo sharing with no per-text fees. just carrier's regular data costs. doesn't yet yield direct revenues to facebook but it is serving as a gateway to join the social network where traffic does translate to profits. second, this is a big emerging markets play. facebook is stream lining the signup process to appeal to the billions of people who don't have easy access to e-mail or a computer but who do own phones. third this is all about facebook doubling down on mobile where it is experience the fastest growth and now looking for profits to match. it could easily attach ads to messenger as it rolls out more mobile ads. now, facebook is so determined to make it size for people to use messeng