david: again the apple effect. back to nicole petallides on floor of the new york stock exchange. nicole. >> i wanted to expand on this look at pandora. pandora drops almost%, 7.74%, closed at 31.39. pandora dropped and this is the apple effect. there have been multiple reports, some of which came from billboard publication that actually cited some sources talked about the fact that apple is considering launching an itunes app that will work with google, work with google's android based mobile devices. if that were to come to fruition that would be direct competition to a name like pandora. pandora had a great run. over the last year or so, you see a one-year chart it is up 155%. this year alone it is up nearly 20%. so clearly outpaceing most stocks, most indices on wall street but today an up day. back to you. cheryl: nicole, thank you very much. david: nicole, i love turning to you. that is why i was turning. i thought she would be behind me. s&p futures are closing. we don't have to turn at all for scott shellad

could this be the long-awaited apple tv? t brings us to our twitter question -- what would it take for you to cut the cord? our producer courtney collins already did it and she is spared $180 every month. this is "bloomberg surveillance" on bloomberg television, streaming on your tablet, smartphone, and bloomberg.com. ♪ >> some breaking news from grub hub, offering 7 million shares as part of their initial public offering. looking to price the shares between $20-$22 a share. it will be offering in total $4 million of shares, and selling holders offering just over 3 million shares. >> can you describe what they do? internet that form where you can order food online and then they will deliver it. you don't have to talk. this is your daily meal, isn't it? >> grubhub, happy eating. brendan greeley. >> i have advised -- buy electric bike companies. all the delivery services are using electric hikes. -- bikes. >> brendan greeley leveraging the news over to electric bicycles. has the important news item. >> broken the last 12 hours.

the option volume today on apple today, wasn't impressive. think mike is absolutely right when he says this isn't a growth stock anymore. >> what about the numbers? >> when you're taking a look at this as far as the stock replacement. i'm going to go to risk less to make more. basically, taking a look at two weeks out, the weekly april calls, by selling for 2.20. finance a purchase of a longer data call. so, i buy the may call for about 11.20. when you net that out, that's $9 for this trade. i have reduced a little bit of risk here, here's the factor, i don't want to see apple rally above 5.50 over the next couple of weeks. when that april call comes off the board and expires, i have all of the upside from there on out. this is a perfect scenario for me to continue to get upside exposure. >> mike? >> i have to say i'm perplexed here. we're talking about an iphone 6 release, it's not going to happen in april or may, but april is the option that he's looking to buy. i love calendar spread. but i think in this case, i mean, when you take a look a

the dashboard is the new battlefield here at apple cannot wait much longer because of the other players. >> i also want to bring in gene munster. he's been covering apple since 1995. what do you think about the announcement with this? we know that apple has been talking to automakers for a while. now we see the fruits of that. >> it is a step. it is taking the technology up. for what we think about it is this. apple realizes that the next area of innovation and they are trying to make it easier to use their products and lock you in. it is less about making money about carplay and taking some of the friction out of using your phone which will make you more interested in holding onto your iphone longer or getting another iphone or ipad or other devices. >> apple is approaching this than blackberry or microsoft appeared at the technology is not going to be embedded into the car. it is more of a plug-in. right? >> exactly. there will be some basic hardware that all of the carplay will have. a button will allow you to activate siri. there are some things that are kind of standardized. as for

they don't talk a lot about it because the cable companies are not as fun to talk about is apple. ould essentially do the same thing. the reason comcast might be willing to do that is if they felt because apple has a certain kind of customer and certain people would want to use an apple product, maybe that would add some comcast customers. but they are only going to go ahead with something like this if comcast still controls the whole experience, the cable, the broadband, the works. >> as we understand it apple wants to control that experience. it wants to use apple ids and hearing --hat we are they are still talking -- and such. we are hearing -- they are still talking -- what will we need to get to some sort of agreement and how likely is it that it will happen? controlst on it, who the customer? the second would be the revenue share at is involved. i think both parties can win .ere apple would give access two 6 million itunes customers. comcast is 30 million when you included time warner. industry, aat cable lot of people are cutting the d or just not signing up for cable. one w

>> there was a lot learned in the first trial. apple has a better understanding of how samsung deals with these issues. the evidence last time was fairly amazing, meetings where google said, samsung, you cannot do this, but they did so anyways. that was fairly damning evidence the first time around. >> joining us now from mountain view is the managing director of 3lp advisors. he served as chairman of the u.s. patent and trademark office overnight -- oversight committee. how do you think this case is different, is this more of a fight with google and the last time they were in court? >> i think you are right. i think it is a conversation, if you will, between apple and the rest of the smartphone ecosystem. i think it goes to the operating system this time. >> in what ways, kevin? >> the way i see it is, you look at microsoft, as you mentioned, bringing in nokia. that brings the microsoft operating system up. you look at the developments in the google system. then you look at china, which is trying to bring on cos, which will be an alter

the second one would be the revenue share involved. appleld give access to 600 million itune customers. comcast is about 30 million when you include time warner. when i look at cable industry, a lot of younger people are totally cutting the cord or not signing up for cable. i think that is a trend. one way to get around that for comcast is to work with someone like apple. >> there is some precedent for comcast to cut a deal. i believe they cut something similar to tivo, although there are still major differences. explain how this would differ from the relationship xbox has with comcast. >> at the end of the day, any cable players want to make sure you can access their content on different platforms. that is the bottom line in all of this. comcast wants to make sure if you want to use an xbox or any other device as your primary method of accessing television, that you can still be a comcast subscriber. hypothetically, if there was an apple box you could buy and use in a market where comcast does not currently serve subscribers, maybe this wou

i want to start with the apple part first. a lot of the goins is now that you're an apple play. at can you tell us about the mesa, arizona, plant. and when will it come online? >> not surprised you're starting there to begin with. a couple of things are important about it. a commitment to have jobs back in the u.s. it is a sapphire manufacturing facility. that's all we've said about it. it is a rather sizable operation. we have 1.4 million square feet under roof. and what we reported on our last call is, we're probably going to hit 100 employees as a company, by mid year, which is a lot for g.t., as you know. and we've received two of the four prepayments they were going to make out of the $578 million they were going to invest. and things are going well. >> when will it be up and running to full capacity? can you tell us that? >> i can't tell you that, unfortunately. as you can imagine, in this industry, surprise is an important element of introducing products. anything that deals with what we're making, with the speed up, and all of that, is somewhat offlimits. >> but this year

report says apple is looking at a standalone app for its next mobile os. theompanyapple, wants to strike a deal with comcast that would put apple boxes in consumer homes. plus give apple tv content a faster route into those homes, that is according to a wall street journal report. access toas equal consumers with other internet companies. with this deal, google could build an apple fast lane into your living room. more white joins me with on the potential deal. also with us, john ehrlichman from l.a.. as you understand it, how would this work between the hardware, software, and agreement that needs to get done? >> i think apple would provide the set top box, also could provide some of the cloud services. comcast would offer the pipes. essentially, what the article was alluding to is apple would like to be looked upon as managed services. apple tv would be considered a managed service just like telephone lines and on demand video. it would not get caught up in the buffering on the public internet. >> jon, explain what apple is asking for and why would comcast g

and i think the project is pretty sound. i believe apple computers is a good viable partner. i believe they do good work and i think it's a good deal for the city. so, i'm urging you this afternoon to vote yes on this. thank you. >> thank you very much. next speaker. >>> good afternoon, supervisors. i'm rick [speaker not understood], development director with apple. we are pleased that you're hearing the rezoning legislation today. it is a great store that we are embarking on within union square at the current site i believe [speaker not understood] post and stockton street. we believe the innovative design by our architects foster and partners will be a wonderful addition to san francisco and union square in particular. we have worked with planning for almost a year refining our design to comply and collaborate with city planning to come up with a better design, made better by the process. some of the highlights that i'd like to point out first is the [speaker not understood] fountain that is pronounced and enhanced in the redesign of the plaza where it is the focal point of

the apple versus google android battle is now hitting the road. apple is releasing a new system this year. their car into the car and they get a display. this is going display that the geneva auto show. it will be available in certain cars later this year. this comes after google formed the open automotive alliance to bring android to your car. at first i have to say that it is a great disappointment. i just bought a for r reed. ferrari. this is the direction they have been going for some time with their plan direction of s iri. fondness for gadgets went as far as cars. he would have a mercedes he would jive as well -- drive as well. he would not put a license plate on it. he is a car as well as a gadget died. i think he realized what this might mean for vehicles. jobs did have a dream about revolutionizing automobiles as he had with smartphones. apple has been under a lot of pressure to innovate. how innovative is this really? >> one of the things in particular is interesting is that it has been a product that has gotten better and better over tim

-- management of the apple store. president chiu, congratulations. i know this was a hairy situation, but you did well. >> thank you. so, colleagues, can we take this item same house same call? thank you. without objection. [gavel] >> this item was passed on first reading. madam clerk, please call the next item. >> item 21 is a resolution determining that the issuance of a type 42 on-sale beer and wine public premises license to timothy lee for liquid gold, llc, located at 1040 hyde street (district 3), will serve the public convenience or me it of the city and county of san francisco in accordance with california business and professions code, section 23958.4, and recommending that the california department of alcoholic beverage control impose conditions on the issuance of the license. ~ public convenience. >> colleagues, can we do this item same house same call? without objection, this resolution is adopted. [gavel] >> item 22. >> item 22 is an ordinance amending the health code to require electronic applications fo

, as there is trouble in the market, appleace to be and it hold up. >> if you listen to a lot of people the whatsapp acquisition was defensive on the part of facebook. i don't think tim cook is going to want to license to any android users. my takeaway, don't you think the guys at blackberry have to be a thinking, oh, my god, we let a great thing in blackberry messenger get away from them? >> this is the whole point, they can pounce. if they were willing to do something different this time, think about their market share globally for smartphones. it's getting destroyed by android. >> i need to get a bottom line, though, dan, let's say they don't license, would you be bullish, apple. >> melissa, there are some very fast-growing businesses at apple. some of their competitors, they're paying ridiculous multiples for. with 150 -- >> so you like it. >> it's a cheap stock with some fast-growing businesses. >> all right, so you like it, bottom line, good. >>> coming up next -- they say one man's trash is another man's treasure, could

will they ever find the wreckage? apple's plan to take on netflix. >>> i'm scott cohn in the cnbc newsroom. word from federal court in new york the jury in the criminal trial of five former madoff employee has reached a verdict. that verdict is about to be read in federal court. we'll bring it to you. a stunningly quick verdict, considering the complexity of the case. it's been going on since october, five-month trial in the case of daniel, madoff's assistant and training supervisor, also an account supervisor, and computer programmers. all charged with falsifying records that allowed the massive scheme to continue there are a total of 33 counts here, not all 5 defendants charged in each count. this is a complicated verdict, working through it. we'll get it to you as soon as we can. a verdict reached in the trial of five former madoff employees. >> thank you very much, scott cohn. >>> the malaysian government says the missing plane is most likely in the indian ocean. moments ago a pinger locator from the u.s. navy took off fr

technology, some of the growth names are starting to roll over. this is exciting news for appleo go along with microsoft 365, going on to the ipad, that will help sales. i want to be a buyer of apple but you have to look at other ways of defining your risk. i think there is some risk over the short term in the stock market in general where volatility's rising, fears are rising in the marketplace. you play with long calls or you get some sort of protection. sort of roll out your stock position, no reason to be naked long stock. >> what do you think? >> i think that's absolutely right. i think if you look at the option buying today in apple it wasn't impressive even though they had some news. it was about a third less than you would have expected on a normal day. i think mike is right when he says this is not a growth stock anymore. i do think you have to look at a different way to play these. >> what about the numbers? >> when you're looking at this, sort of a stock replacement kind of strategy here, i want to play for the upside. what i'm going to do is risk less to make more. o

changes the company needs? apple under tim cook generates big profits but the author of a new book says it is a less conducing company without steve jobs. the author of haunted empire , apple after steve jobs, with us live. supercars and spies. if you ever wanted to own a chunk of james bond history now is your chance. a fleet of famous bond cars and even a both are up for auction in miami. and how you can cruise around just like 007. "countdown to the closing bell," shaken but not stirred, starts right now. liz: roger more, sorry, he was the best. don't give me the sean connery thing. live and let die, the spy who loved me. good afternoon. i am liz claman. last hour of trading, microsoft is the star of today's stock show. the blue chip stocks finally on a roll rising to levels we haven't seen in 14 years. that is even before facebook, twitter was just a twinkle in the eye. the software giant expected to introduce microsoft's office versions for ipad. the stock is jumping 4%. microsoft officials have not confirmed th

and i think that's the tradition that apple has. ey feel slighted and wrong and they're going after some of the google players today. >> but there's zero chance in your view there's going to be an injunction on samsung to stop selling phones? >> well, obviously i'm not a patent attorney, so zero is a strong language, but we think it's highly unlikely. >> okay. >> so this is an issue that just -- this industry in general has battled this for years. do you see any more universal change about patent infringement and patent and this whole industry? >> i don't. frankly, i think it's sort of like a porcupine approach. everybody has these quills. and if you get close enough, everybody's going to get hurt. there isn't going to be one winner. and so, i think, you know, companies rup teenly borrow, quote unquote, from each other. and, you know, when all of these companies have been around for decades developing, innovating, they have tremendous r & d. and clearly some people are developing something, other people are developing others, and the

he said the other day that apple is an absolute sell. you came on the next day -- you thought he was on crack. >> i'd like to get him on the phone right now and duke it out. i don't get it, actually. i look at gross margin recovery. maybe what's going on. china, to me, is a lottery ticket. they do not need china. china is not in this valuation. china is just rolling out 4g. they need a lower price point. i said that all along. i think if you look at where we are, protecting the margin is something they've done. and they've done it so far. but the valuation does not say the stock's going down. it's not a broken company. >> i agree. i think it's more of a buy than a sell, even if you have to sit on it for a while before they do something exciting. really hard to get rid of a stock selling below ten-times earnings with all that cash. >>> coming up, asset allocation advice from the white house on russia. the story behind that is next. >>> and later, the real wolf of wall street is teaching america how to succeed. jordan bellford handed out ad

also approved on first reading that will allow non-conforming structures to be rebuilt this is for the apple store near union square and last week it was at the land use committee and supervisor jane kim amended this ordinance the change would only apply in the block near the apple store and this week the board approved the ordinance on first reading. there were a couple of introductions i wanted to share first snaring introduced a hearing forephenomenon the budget and analysis report to prevent and fill commercial vacancies in the upcoming hearing, and, secondly, the mayor as well as supervisor cowen and supervisor campos and commissioner wu introduced an ordinance that will amended the pdr controls and those will be for your consideration for next week. that concludes my presentation unless there's questions >> the board of appeals will be meeting next week good morning tim try department staff her to share the results from the historical preservation commission deprave it's final recommendation to the board of supervisors for the landmark designation of the dunham and - building. the buil

we saw espn gravitated toward apple tv relatively early on. are all of the that sports make their way to apple tv? >> i hope so. what i can say is, you know, not that long ago where the consumers' perception of what was possible, we have, from that to streaming movies thanks to large streaming service providers like netflix and hulu. we are seeing sports. that is where the important point is, where to the broadening of the type of content available. ultimately, it makes it a very exciting into the next three years to look forward to. >> what ultimately is the real game changer? there have been discussions that google may want to acquire nfl sunday ticket and that cannot happen. it still shows you have to see a very big, very pricey deal cut between a sports league and a technology player for everybody to really shift their focus away. >> yeah. sports rates are extraordinarily -- rights are stored in early expensive. -- rights are extraordinarily expensive. you cannot just walk in and do live sports. i do not expect that to change anytime soon. if you look ou

he said the book fails to capture apple, steve jobs, or anyone in the company. you pessimistic about apple's future? >> i just think that apple is in a place where there caught between not wanting to -- wanting to stick to the way steve jobs -- steve jobs' vision of apple and saying that apple has not changed, when everything an apple has changed. i do think it is struggling a little bit. >> it is struggling a little bit. tim cook is the ceo. a lot of people do not to know much -- know too much about him. what can you tell us about the way he manages apple for the new era? >> he is in operations executive. businessorder, driving as efficiently as possible. you do get the flavor throughout the company. an entire chapter to clay christiansen and disruption. apple started to listen to its customers a decade ago and got in trouble. our they listening to much to the customers right now? how much it is doing and what impact it will have is still too early to tell. you do see a little bit of a rollback. tangible example of where mr. cook and his team are failing versus

but most think the apple partnership marks a progressive turn for the company. "microsoft has finally made the decision to expand beyond the pc and beyond its own windows environment to embrace the dominant platform." that was michael krigsman, analyst with asuret. he points out that microsoft does not own the apple operating system, which caused the long delay in the software release. microsoft shares rallied to 39.36 thursday. one day after the ceo of gm tells customers its safe to drive cars recalled for an ignition switch issue a federal court is agreeing to hear a case that could force the car company to tell customers to put the cars in park. a federal court in texas will take on an "emergency motion" april 4th. an attorney representing a number of clients argues drivers are at risk. gm is offering loaner cars to customers. wednesday, gm ceo mary barra called the cars safe to drive in this video. gm shares closed slightly higher yesterday. ukraine's hard hit economy is about to receive a financial lifeline. yesterday -- congress passed a bill authorizing a

this is one the places where apple is hurting itself. e last time i checked, they said you cannot power a robot with an ios device. excuse me, why the hell not? if you could, there will be an entire line of robots powered by ios. you could use them for security and to keep an eye on aging parents. they're all of those things you could do with a device that is able to move on its own ago predictably without breaking and has ios to keep an eye on the world. i think eric is completely right. >> sometimes messy with google is doing, a great story in the terminal -- sometimes when i see with google is doing, a great story in the terminal about taxes. i look at some new things -- >> google consumes about 2% of the power in the u.s. and they are smart to look at it -- >> my point is peter lynch's notion. if these guys about trying a little bit of everything start to not focus on their core business -- >> i would agree with that if i thought search was a perpetual business. i believe search is being slowly thatteadily eroded by apps do narrow sea

i want to get to our lead story of the day. apple cfo peter oppenheimer retiring at the end of september. he will be replaced by luca maestri. he saw shareholders get returned over $50 billion. any time someone leaves a company as powerful as apple, questions start. did something go wrong? what do you think? >> i think this is a pretty orderly transition. there has been a senior cfo candidate at the helm, so i don't think people will look at it and say this is an on orderly or an unexpected transition. people will be not surprised by it. people oppenheimer has been an incredible person to this company. they have seen dramatic expansion in sales, etc. his stepping back is not altogether unsurprising. >> when you look at the numbers, they are pretty astounding. when he took over in 2006, sales were $19 billion. last year, $170 billion. >> i think the question is, is the new guy up for it? he has only been there a year. that is my question. can he step up? >> cory, is luca up for it? >> he has seen the other side of success, that being

among the investors a goldman sachs private equity fund. applecast are in talks about teaming up for a streaming television service of wording to "the wall street journal." op would use the apple sett box and you can bypass congestion on the internet. nokia'sin the sale of cell phone division until microsoft. asian regulators are still reviewing the deal. microsoft agreed to buy it for 7.5 billion dollars. it is hoping to challenge apple and samsung's dominance of the smartphone market. next storyect of our is bearded, tattooed, checking if the media world. he runs a vice media, a company giving traditional television a run for its money. it is growing its way to a whopping 10 figure valuation. jon erlichman caught up wishing smith. when he took over the boys of montreal in 1994, nobody thought he would hit his stride and one of the fastest-growing media countries in the world 20 years later. >> look at you with your knowledge. >> he is the guy that started this business 20 years ago in montreal as a magazine. now it has become this very influent

he says the apple tv streaming box would remain a hobby. microsoft is offering a new way for customers to access office 365. the program is designed for an individual allowing one pc and one tablet to connect to the service and a subtraction will cost $70 per year or seven dollars per month and rolls out in the spring. the los angeles man who newsweek claims invented bitcoin has hired a lawyer to prove he did not create the digital currency. unconditionally denies the report and says he has difficulty finding a job. he has no experience or knowledge of cvarotgraphy or virtual currencies. chinese e-commerce giant alibaba is starting the ipo process saying it will file in the united states. they have not filed yet. there was much discussion of them filing and hong kong. the rumblings have been going on. they are getting ready so they are moving down the process. >> they have had talks with about six different banks and could be talking potential valuations as high as $200 billion. this could be the largest tech ipo in history. >> if it is $200

the same issue. he didn't make much of a move forward from it. and apple has done the right thing. it's kept to its plans, communicated what it's doing, committed to $100 billion to be returned to shareholders. and it's going to review those numbers in march and april. and we're satisfied that that's a sensible course of action. we don't want rash decisions made in the heat of a dispute with a short-term activist. that's not sensible. >> all right. we're going to have to leave it there. thank you so much, ann simpson with calpers. >>> and coming up on the program, the hollywood business model is changing from the way films are financed to where they're produced. but as tinseltown gets ready to host the oscars can the industry reverse the trend? >>> there will be a lot of diamonds and other gems, not to mention beautiful fashions on display this sunday at the academy awards. jane wells hit the red carpet which may be a wet carpet this weekend. a few days ahead of hollywood's biggest night. she's going to tell us now how the business of making movies and where a lot of films are bein

i would not be taking a bite out of the apple right now. how much higher committee by memorial day? >> we can be quite a bit higher because it does seem certain places the economy is getting better. we will talk about the driving season, people taking driving vacations and demand will drive the prices up. charles: tracy comeau talked about the apple, comcast deal. something is weighing a netflix. it is beginning not just today, but for a few days now. tracy: like anything else, this thing is having is up and downs. people are still using this product way more than they are turning on their radio or television. charles: two of the biggest names in tech. we have google facing off against priceline, talk about household names. here is how they stack up against each other. google has five times a market value and six times number the employees but over the edge of google. which one wins here? >> it depends on that time period, but i love google, not a big fan of priceline. i'm going with google all the way. charles: i can see why it is part of

they do not turn over and the margins suck. and apple reporter. said inventedman a bit quite have hired a lawyer to clear his name. dorian nakamoto said he did not work oninvent, or bitcoin. the 64 year old engineer said at the story has hurt his family and chances of getting a job at his nod had steady employment in a decade. russia's richest man has sold shares in apple and facebook and looking at chinese companies. chinese companies now account foreign80% of his investments. they include alibaba and others. to our lead story. alibaba starting the ipo process as saying it will file into the united states. there've not filed yet. much discussion of them fouling -- filing. we know the rumblings have been going on. they're trying to get the waters ready. >> they have talked with the six different banks and huge valuation. some saying two hundred billion dollars. this could be the largest tech ipo in history. >> if they offer 12% of the shares, my math tells me $24 billion. that is why we care so much about this thing. >> what we should explain a lit

>> so much to talk about the apple/comcast potential deal. maybe the stock that will be impacted is netflix. the traders will give you their take. and also, their momentum stock shopping list. >> very good. over to you guys. >> thanks, kel. "fast money" starts right now. live from the nasdaq market site in new york city. we start with the market alert. is this the pullback we've been waiting for? the nasdaq taking a hit today. but the momentum names that are getting hurt the most. and for a variety of sectors. solarcity, fireeye, tesla, and priceline. is this the pullback where you pull the trigger and get in on some of the high-flying stocks. our traders, tim seymour, brian kelly, karen finerman and guy adami. we saw a pullback in the nasdaq. it peared the losses throughout the session with the help of tech names, microsoft, apple, ibm. >> these are places where there's some valuation argument, not just momentum behind them. certainly at microsoft. if you look at where the market was, a lot of people came out this week, we failed o break out

going off his point earlier about the need, cable really needs apple, they do. if you look at the full-year outlook from 2013, full-year record, they lost 251,000 subscribers. it is the first full year drop in cable history. melissa: but he have this pipes to deliver the content we all want. i have netflix. i have apple tv i love all these things. you need a way to get it in. >> what is the way around the cable operators? melissa: i guess it would be directv, right or phone line? >> phone line and -- >> it will happen at some point. there -- >> happening now. >> it is happening now. i remember when i was at "newsweek" magazine back in twix, there was a point where i would write fairly long stories, literally the next day our size shrank. that was the death toll for those magazines. about 2006. it happens fast when it happens. who knows what -- melissa: who does that apply to in this situation? >> i think these are, comcast has to make these deals right now because they know that there's a day of reckoning coming for them as well, don't you think. >> i kind of won

this is not about the apple ios.s is getting all people in systems to subscribe to microsoft office 365 and how they will work hand-in-hand. the apple ios product is just a part of that. >> the cloud that is not connected to devices is just latent potential. how does the cloud react with the real world? interacting with real devices. a device which is not connected to the cloud dust cannot complete the scenarios. it really gives you a clear idea of what they are trying to think about and the advantages they think they can reap from this. right. cory johnson outside the microsoft event. just as microsoft is hoping to innovate and grow, aol is also a company in transition. hoping to become a dominant force in the online ad market. it just introduced a new ad platform called one by aol. it helps automate the process of buying and selling online ads by combining ad technology. cory caught up with aol ceo tim armstrong earlier and asked him what the new platform is. >> basically, it's a platform for the advertisement busi

it would cost around $707 or $85 less than the country 16 gig iphone. apple is looking for ways to jump start sales of the 5c which is not selling as well as the more expensive iphone. >> a northern california man arrested over a plan to engage in a terroristment. what we are learning about him this morning. >> a near miss when a man is nearly hit by a caltrain with a wanting from officials. >> the search narrows for the missing malaysia airlines jet and where the search is ongoing. >>> live from the kgo-tv broadcast center this is abc7 news. >> it is tuesday at 4:59. i am kristen sze. >> i am eric thomas. we joined by mike nicco with a look at the forecast. >> we start with live doppler 7 hd. you will not need the umbrella. we will have a lot of sun. dry air over the top of us with calm conditions in the valley but gusting at 20 to 30 miles per hour in the hills. be careful this morning. winds are from the north and we will run person kick particular to a lot those. the first forecast look at that sun and not so breezy. low-to-mid 60's at the coast but not b

it is driven by demand for the apple ipad and iphone sprint apple is foxconn's top customer accounted for 40% of its revenue. charter communications is not throwing in the towel on its hopes of buying time warner cable. it is urging time warner cable investors to reject the takeover offer by comcast. charter says the comcast bid is vulnerable to regulatory issues. the 37 billion dollar offer by charter was rejected earlier this year in favor of comcast's 35 billion dollar offer. newton blackberry fourth quarter earnings showed small signs of product sales were down 64% in the first quarter. it is the first time it slipped below $1 billion since 2007 but profit jumped 532%. it is much better than a $4 billion net loss last quarter. >> yes, but it was worse than a year ago. when i look at these results, i inc. of -- i think it is stemming the bleeding but the bleeding stock at worst. the company still lost a lot of money, they lost half $1 billion in cash in the corner. the runway is getting shorter and john chen will make big changes. >> he says they will stop losing money in 2015 and

you know, once you pay the premium. >> apple has the cash. >> for apple, what is that?h better business. >> well, i mean, music is very important eco system for apple. >> seriously, are we seeing with pandora here the cost base for the entire industry is rising and others will have to follow through or do some have a competitive advantage on price? >> i think apple in some ways does have a competitive advantage because they are the biggest mu signature sic retaile that can easily convert a long you like into a song sale that's good for the whole eco system and adds a little bit. it's interesting in line of amazon's prime increase, also, that just overall in the digital economy there's interest in passing along some of these costs to the consumer. >> we've got of leave it there, jon. the conversation will continue. >>> let's get to rick santelli in chicago. yellen day and rick's on a roll. >> hold on, simon. you know what, simon, i have to thank you personally. you asked a question today when you were talking to ron paul that made me change everything i'm going to talk a

he has to go through auto dealers. >> like the apple store? >> best buy. the place. >> it is a fair question. >> maybe he is betting the user experience -- "user experience," we are likening it to apple. people will go to the tesla store just like they go to the apple store. >> i was not entirely wrong. >> we will see. >> have you gone to a tesla store. i know you have the resources to buy a tesla. >> not only has he been to a tesla store, he came home salivating. >> it is amazing. it is completely unlike a typical auto showroom. >> much like the apple store and electronics. >> let's look at the other big project on elon's radar, the gigafactory. >> $5 billion. >> $5 billion. think about the jobs that will be created. look at the map. nevada, new mexico, arizona, and texas. twoona was one of the states that out right hand tesla from selling in the first place. will he use the leverage he has with the factories to overturn those bands? who knows? the auto dealers are digging their heels in for a fight. i think this will be a bigger deal, maybe as big a deal

and apple id, apple password. thehing is revenue, how much revenue is this going to cost, how much is apple going to want a cos cut of comcast. cheryl: apple has t make money from somewhere. the tv is $29. unless i am completely on itunes, maybe they would be willing to come to the table. >> with apple, something steve jobs said, they don't control the last mile. tech companies have struggled for years to break in the ecosystem. we saw intel had a paid tv service business they tried to launch, they could not get any agreements on the time warner. time warner cable told the media companies don't strike a deal with them and they wind up selling it to verizon in january. cheryl: google, amazon, roku. most kids in college don't own televisions, everything is through their laptop. this apple need to be that rate of hooking up with comcast if their audience is getting rid of set-top boxes? >> i do think apple want to get involved in tv. this is something that has been rumored for a number of years. still the center of the l