tv Fast Money Halftime Report CNBC February 4, 2016 12:00pm-1:01pm EST
>> we'll see what the afternoon brings. really overshadowed a lot of the market action. a lot of price action today. >> it has. that's an interview you don't want to miss. >> meantime, keep your eye on oil and of course big jobs number on the way. the week is not over by a long shot. let's get back to headquaters. >> thanks. welcome to the halftime show. joe is here with kevin weiss, josh brown and pete. our game plan looks like this today. show down at viacom. one of the largest shareholders. with us exclusively at this hour. the investor speaking out on that company. dividend domino which oil company will be next after conoco pinches it's pay out. the names you need to watch and probably already own. we begin with the markets and a
stunning new warning today. the pacific coast power house urging investors. good to talk to you today. >> good to be here. >> you expect the u.s. economy to grow at an above trend 2% rate. that the fed is likely to hike more than the market is pricing in. that investors are going to be shocked. what gives you that view? >> so the u.s. economy even though we've seen sign of slowing down is going to grow at 2%. so trend growth is somewhere below 2. it's nothing very exciting. and while we reached the end of you know where the fed can tighten very far we do think as we go through 2016 and oil prices recover we should see the
fed hiking more than the hikes that the market is pricing. >> global growth is going to subdue fears yet the market is most worried about a recession at this point. are those fears overblown? >> they're not overblown. there's always a risk of a recession and clearly with the end of the fed markets, and the currency, the u.s. dollar has moved up 20%. it puts strains on different parts of the global economy. that said, we are base case is not global recession and we should see prices rise $20 barrel and comes out and says
get out of bounds. what's the best move today? >> i don't think anyone said get out of bonds. bonds play a super important role in investors portfolio. they give you a coupon and currently, in fact, one of the things that we're saying and what i said in the piece i just put out that investment grade bonds and high yield bonds are pricing in the probability of the recession and this is one of the most attractive places to invest. so while we think the fed will hike modern pricing which is zero hikes this year we don't think it's the time to get out of bonds. >> but you do have a small underweight position. those are the words in the note and presumably if you think that investors are going to be called by surprise by what could have been a sudden move in bond prices and yields going up, why would i want to hold bonds. >> you want to hold bonds because it's a to give you a
coupon and to give you an income which is quite attractive. many sectors of the bond market are pricing. 7 or 8% yields repricing probabilities. that said if you're wrong, the reason the high quality bonds or government bonds is if you're wrong and you do see a recession you'll be happy that you own bonds. you don't want to own them at all. you want to be careful and weigh the risk and reward but i don't think you want to boil out of the bond market at all. >> i have two questions. credit or duration. what's the biggest risk for you. municipal bonds performed well in the last 6 to 12 months. >> the biggest risk for us is still actually bonds and equity.
we don't think you're getting rewarded in that case and there's better places to invest in our view that inflation rises and oil prices rise and credit and high yield bonds related to the energy sector. >> you think oil is going to go to $50 this year. >> there's risks around that but that's the case base. at the low prices we're seeing classic economics at work the markets should balance at the end of the year. >> you see supply going down and it's going the other way. >> no, that's not true. but that has shown, the u.s. supply and production has dropped around 700,000 a day over the last six months and in
order to balance the market a year from today u.s. production needs to grow. not go down. >> it's an interesting call. appreciate you coming on today. certainly gave us something to talk about. appreciate it. >> i think you're not going to lose your principle in u.s. government bonds. if you're buying something for a coupon you can use the value of that coupon in a price. >> you should have a waiting credit. they're overvalued. negative rates. we have the two year bunds. that's crazy, right? you pay them to hold your money.
in the 80s the saudis tried to hold price and they weren't able to so they cut price. it took them 15 years to regain their market share. the ceo at that time is now the oil minister in saudi arabia. so he remembers that lesson. he is going to crush the u.s. shell producers by keeping prices where they are. and it is a very economical price. they'll come on in relatively short time. >> what if josh pimco is right in this note. that the fed, that is growth is going to be better than people think and if the fed is going to raise interest rates more often than people think and that's going to change the dynamic of how you should be invested in this market. >> well, the market disagrees substantially. we started the year. there was a 5% chance that that would be on hold. that is now being priced at 60%
and it's not to say that can't change but you typically don't see such a radical shift so quickly and have the market be completely wrong. and it's bear market rallies and everyone scratches their head and all of a sudden they rise again and churning. and it doesn't mean to churn your portfolio. the role of bonds is the portfolio stabilizer and i would point to the performance of the 3 to 7 year. the 7 to 10 year. and year to date while stocks have been out of control. you have that stability coming from the fixed income portion of your portfolio. there's a lot of big trades unwinding. that's the story of this year so
far. it's down 2.5% this year. you have to go back five years to find another week. and you're seeing blow up along with that the consumer discretionaries and consumer staples blow up and strength come from the oddest part of the market. you're seeing copper producers flying. this is systematic unwinding that trade and i think people need to understand why they have an asset allocation model to begin with. i'm going to stop my stopwatch now. >> i will have you all on as guestsment you have to think it will be forced to cut it's dividend.
it finally happens as conoco phillips slashes it's pay out by a third. some investors didn't see it coming. >> i don't know what their yield is off top of my head but i wonder what they say. >> what everybody else says. they're not ready to cut dividends yet. they're not going to hint at it but like everybody else oil prices stay this low eventually they'll have to face up to the reality. >> i wonder what would happen if they dropped the bomb. >> they're going to get hammered and then it's going to be a buy. >> they did cut the dividend. >> and that's the name i think stood out. >> we talked about having different ones. they have to figure out all kinds of things. especially if you believe what a lot of people are talking about.
we have to make acquisitions at some point in time. that's what everybody is expecting out of exxon and chevron and now because they have bitten the bullet out of conoco phillips as well. >> is this a one off or does this start to snowball? >> it needed to do something it had to go to 25 cents just to get back in line to address the interest on loans. keep in mind they held the dividend today. does somebody else do it? they either ratified or increased them. they came out and said our dividend is not going to grow 20
or 25% and that took it down 25%. they are much safer bets than the energy companies. >> quickly, does somebody else do it? >> yes and they should. >> why would they be paying dividends at levels. >> which one then. >> bhp, they have to cut it. >> take a look at pmi. stock actually got all the way down toward 11 and now look at it today. virtually around $15. so conoco is probably not a buy today but sooner or later and i think much sooner now that they made this i think this is the buy. >> if and when they did of course you didn't see it coming quite today but if they did, stock goes down and then it
becomes a buy as a wash out. >> once you get that wash out period absolutely. >> you can take a look at that chart and that's going to mirror what we're going to see out of conoco phillips. >> squash that today and crude goes down to 20 is it still washed out. >> probably not. >> coming up an exclusive interview with viacom's second largest shareholder. he joins us to discuss what's next with the owner of mtv, nickelodeon and comedy central and we'll talk to eric jackson. he's the activist pushing for big changes at that company. plus gopro down again. stock drops 90% from its peak. can it ever bounce back? and as we head to san francisco again that's when jim cramer sits down with the ceo of palo it has alto networks. thank you, we'll call you. evening, film noir, smoke, atmosphere... bob... you're a young farmhand and e*trade is your cow.
>> welcome back. with the news alert following red stone stepping down from his role as chairman of viacom and the ceo taking on that chairman post. she is referring to the fact that yesterday she issued a statement saying that she was going to advocate against anyone what was a trustee in redstone's trust or intertwined with the
company and with sumner redstones family to be appointed to the chairman role. what she was saying is she didn't want dauman to take on that role. he is a trustee and health care proxy. yesterday she came out against him becoming chairman of viacom. this morning he was appointed chairman of viacom and now she's going to fight that. looks like we're at the beginning of what could be a battle here over viacom's leadership on the heels of sumner redstone stepping down from the post. >> certainly appears that way. our next guest had a vested interest in the outcome of today's board meeting. >> mario gabelli joins us on the phone in a cnbc exclusive. >> i'm delighted to chat. >> we're delighted to have you.
and we believe it's in the best interest of the company and all shareholders. do you agree with that statement? >> first let's deal with the retirement of a visionary and a media mogul. sumner we think he created a fantastic company. and bought himself a period of time to do the following. first take a partner in in pair mount. you have alibaba and amazon and alphabet. three companies could put 10 billion in at jv and you could have an interesting currency to make acquisitions and what they need which is a hit business. take on amc and other companies, the way the chinese did legendary. the values are there.
secondly from 30,000 feet for september 30th, 400 million shares of 45 or $50 stock with 12 billion in debt, you got 4 billion and capex of 100 million. what is he going to do now that he has another role? the question is what did she mean in the previous comment about surfacing the value for the shareholders? is national amusement on which there's six participants? he's one of the three. sherry is one, tile letter is the other and phillipe is one and you have two individuals that have been around for a long time. what will they do? that's the dynamics. >> what do you think the relationship between them is going to be here forward and as she says as julia just read that she's going to advocate what she thinks is in the best interest of shareholders. what do you think that means and
what of the relationship between miss redstone and mr. dauman. >> you have a company with an interesting scale in the entertainment business that could be viewed as up for play in a variety of ways. obviously, you know, sherry will be phillipe's hair shirt and phillipe is hers. what has she done in a digital world. much the way eric jackson has done it and what exactly is he doing in the mobile world and what is he doing to get into the hit business and what is he doing to get into the tv series and that will go global. so far we'll have to be in waiting and he's bought himself six more months or nine more months. >> and what responsibility do you think he bears that viacom dramatically underperformed it's come met tos by leaps and
bounds. >> it's since 1988. and changed it to viacom. three years, 36 months, not a long period of time. seven movie companies in the early 50s. and seven movie companies that throw in the legendaries and lions gate they're in there now and i think you've got scale. you've got entertainment and you have content and maybe that will get a different form of focus on what they're not doing. >> but you clearly think though that an asset sale or stake sale or doing some kind of acquisition of a property is in the best interest of this company going forward. >> look. time warner bought aol. you know, maybe that was in january of 2000. that was not exactly a good deal. look a deal is a deal but it has to be a good deal and it has to add value and get you into the
position of the digital world so we'll see. he hasn't done it. we'll see. >> the stock was up today when it was known that red stone would not be the ceo anymore. they game back nearly all of the games. that would suggest that investors have either lost confidence. >> what do you think the message is. >> we own half the voting stock that's public and the family owns the balance and as long as sumner is around we don't have to worry about who controls the trust. he got a catalyst and he had to
come to grips with sumners issues and we still have depositions and hopefully nothing extraordinary happened in the depositions that would change the way the world perceives him and i'm sure that he's clever enough not to have challenged that premises. >> you still hold your shares? >> i appreciate you calling in and reacting to this news today. certainly a story everybody is talking about. appreciate it. we'll see you soon. >> thanks. take care guys. >> i want to bring in now the outspoken viacom activist investor. he's the managing director at spring owl asset management. welcome to you. >> hey, scott. >> did you get what you wanted today? >> just the opposite. just the opposite. we wanted anybody but phillipe in that chair role and all the directors have to look themselves in the mirror tonight to really think about what they have done and why they have
chosen to do something that is just completely at odds with what all shareholders and all employees wanted to see which is an independent executive share. >> he's willing to give it a shot and see what happens. there's some le raj that he can pull to try to make viacom more competitive. he's willing to give him the benefit of the doubt it sounds like. why not you? >> you know, mario is maybe more diplomatic than we are. but we clearly don't think that phillipe has done a good job as the ceo. he shouldn't be the ceo. he shouldn't be the chair. we applaud sherry's statement that julia read out a few minutes ago. we're completely in support of that. sherry red stone obviously takes her role very seriously. we wish that phillipe did the same. >> if not him, who?
>> as chair it has to be an independent executive chair in this role because an executive chair has more legal liability than a nonexecutive chair does but as a ceo you're talk about this before. needs to be someone that understands the media world in great detail but has to be someone with experience in digital with a knowledge of overthe top. >> are you prepared to sell your shares today? >> we're going to continue to fight for the shareholders and the employees. we're going to continue to speak up and we totally agree with mario. you saw a hint at what's possible when something goes right in terms of what the stock did after hours and the stock is speaking again today. >> continuing to speak out. i appreciate you doing it here
on the halftime show on cnbc. we'll see you soon. coming up josh brown calls it the only chart that matters. what the reformed broker is focused on now and why. is next. to thrive in an ever-changing environment, companies must adapt. but one thing should remain constant - a financial relationship with someone that understands and cares about your business. pnc corporate and institutional banking offers strategies tailored to your company's needs. know that our dedicated teams of local experts offer insight to help you achieve your business objectives. see how working with pnc
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tracking for the best week since 2008. what do you read here? stocks up 18% today. >> it showed covering from the state to buy it. it had stocks so heavily shorted. if you were shorting it you'd have to pay 95% of the stock price. so you get pretty nervous when that happened. so you rush to cover. they still have major, major issues. they're trading up because copper, the dollar is down. and it's me the dollar is probably down. because they're selling the dollar. they're selling everything else to report the economy. >> oil is up. copper is up. almost 2% yesterday. when you look at where the bonds is trading. that tells the whole story. this is short covering. it looks that way. >> you break down with that.
the only chart that matters right now. >> which one is that. >> you know it's important because it rimes. the dollar chart is on everyone's mind and there's some things to mention quickly. >> probably the worst trade you could have had on would be long the materials and short the consumer discretionary xly. >> in the last five days you'd be up 10%. that's a tremendous name aversion in that ratio. you haven't seen a bounce this hard. you have to go back to 2008. take a look at s&p. up 22% the last ten days. it's the s&p metals. the point is you have this huge unwind in this long dollar. long high momentum growth stocks short everything else. trade. it's coming back the other way and it's coming hard. >> the dollar had it's worst day or i think the dollar index had
the worst day in three months. >> yeah. this is a very dramatic move. >> when you have every pm in the world on the other side of that trade and all betting on more and more and more and all of a sudden it shifts you get these seismic moves. >> trade. i think the trade is over. i wouldn't get in here. >> everybody is easing. u.s. is tightening. it's unrealistic to expect the dollar not to go increase. this is what happens when you get a crowded trade. >> totally great but what if we are not tightening. >> everybody else is easing. >> the fact that we're tightening by not easing. everybody else is evaluating.
>> coming up, jim cramer. >> i'll go with that. >> currency is relative. >> coming up, cramer, cyber security trade with the ceo of palo alto networks. plus the business of super bowl sunday. how am, google, and other silicon valley giants are getting into the action on game day and here's the break. here's a look at stocks leading today's market. here they go. alcoa tops the list at nearly 10%.
>> dow jones reports investigators believe a suicide bomber posed as a passenger using a wheelchair to evade security. they also believe he was ripped from the cabin after detonating the bomb. if rest of the passengers and crew were evacuated safely after the plane made an emergency landing. cohander in afghanistan says the u.s. will be hampered in afghan security force ifs the troop level is cut to 5500 at a senate hearing today, very little
training will be done with forces. computer problems shutdown the irs electronic filing system. the website is working but many services are not. taxpayers can send returns to companies that service middlemen but they'll have to hold on to the return until the system is up and running. >> and the countdown to the kick off as you know it's on. the afc champion denver broncos hit the practice field in palo alto yesterday. right now they're the underdog against the panthers on sunday night. >> well, i don't know. they may be the underdog but i love peyton manning. >> i hope it's a good game. >> i hope it's a good game. we'll see. it may be his last. >> this week jim cramer took "mad money" on the road to san francisco for a special invest in america countdown to kick off edition. he joins us now. jimmy good to see you bud.
>> it's god od to see you guys. i'm trying to
understand the market. josh has the beat on it. it's bare action. let's not confuse anybody scott. that's what is going on. >> one of the things i want to solve is this disconnect. there hasn't been a lot of high profile hacks as of late. and i think the stocks subside and that is a low in maybe our own sensibilities. we did not think this is an edition. >> the attacks actually continue. data we have that they're on the rise they may not be as widely publicized but they're happening. >> you're an investor and you know these things. you can invest in anything. venture capital and of course congratulations. and any trend. you are fortunate to be investors in 2008 because the market continues to grow
significantly and the on set not only of the data centers but
smartphones are becoming the total address market like we say globally continues to expand and we were fortunate to be at the right time, right place, right technology, right leadership and all of these events working together, we think security still going forward is a major plus. >> and i know mark you have explained to me a long time i've been a backer of palo alto for years. some companies aren't even attacking a solution. if you want it stopped ahead, you offer the solution that has the best market share but it can grow. >> it takes time for it to happen which is legacy point products which are primarily active and reach to responses when you have a problem. that's giving away quickly to next generation platform which is are proactive in nature and
that's what we have uniquely and that's why you see it continue to grow so nicely. >> you guys have been very transparent. someone mentions why isn't amazon a threat to you guys? a lot of these companies want to come in and you do not respond that it's a threat. >> no, that's probably an opportunity and what people are thinking about is if things move to the cloud. if there's not things on premise any longer is that a problem for folks that have solutions. what i noted is in our business years ago we completely virtualized everything so it can operate in cloud and it does today in web services and others. >> microsoft. so that's been an additive to our business. >> that's important. peel always think wait a minute the stock has been down. who is brilliant? >> scott, the reason why i played that tape is because this is the battleground right now when you guys talk you
understand. you're listening to the chairman and ceo of palo alto but what you're really listening to is the defense of a group of stocks that have just gotten so in the dog house. secular growers. this could have been facebook, okay? and you guys know this. this group has fallen out of favor. why not talk about the best numbers and the best momentum and even that can't get out of the way. isn't that something? >> is it the group itself that's fallen out of favor or simply where momentum stocks are viewed that you better knock it way out of the park or you'll be punished severely and palo alto down 6%. >> let's be honest. maybe at 190 it was too high. and it's an experiment.
i think it's very undervalued and it's a call option on copper maybe you have to think ahead to which group is going to km back so if you want to catch the next wave. if you're that nimble when most people home are not, palo alto might not. >> you caught up with gronk i hear. is that right? >> he challenged me by saying he was going to give me a beat down and i can outrun the average guy in the room. whoever is near me is going to get the beat down. the guy comes in. >> there's guys that played him that weekend and he didn't get a touchdown pass and they hate
him. >> he's not the average guy by the way. you can outrun the average guy? gronk ain't the average guy. >> i only need to outrun people in the studio. i will say this about him. he is the kind of guy, and you know this, the nfl gets a real bad wrap and we have three time super bowl, we have gronk, how do i get a nation. i want cramer nation. he says you have to beat gronk to get a nation. i can't beat gronk but i want a nation. >> great show coming up. they report a blowout number and now they're out of favor. now you're drinking clorox. how do we handle these rotations, josh? >> don't nothing if you're a trader. don't trade clorox.
we look forward to seeing you tonight. thanks so much. >> i love being on your show tonight because you get it. >> love having you as well. >> gopro from ipo darling to cautionary tale. how gopro can catch a secondary win. the social media stock we never talk about. linked in reports after the bell. your game plans coming up.
coming up on power lunch. the safety of dividends after that company slashed it's pay out in a big way. what are the other best performing names with more solid dividends. i'll give you some names. all giving up earlier gains. gold is the highest level since october. copper is near a one month high. where he sees prices headed and where are individual investors putting their money in this
market turmoil? the ceo of td ameritrade. now to seema with a market slash. >> shares spiking on a report that the two toy makers have held talks about a possible deal. we know the traditional toy places have been facing stiff competition from the video game industry. we're looking at hasboro up 1.5%. mattel also moving higher after reporting better than expected earnings earlier this week. cnbc reached out to both companies. more halftime reports coming up after this short break. what's it to you? or i'm a scottish mason whose assets are made of stone like me heart. papa! you're no son of mine! or perhaps it's time to seize the day. don't just see opportunity, seize it! (applause)
'08. and they -- did they take a charge or something like that for something that happened, like, 50 years ago or something. >> they took a huge chart, yes. >> doj -- >> what is up with that? who does that? who does that? >> they do. here's the story, you've got a new ceo there, and he's doing what smart ceos do, he sets the bar so, so low that he can't help but step over. even for a guy my tall stature, i can step over the bar. >> does anybody touch the european banks? >> not now. not here. >> puts. >> yeah. >> touch -- >> you think writedowns that never happened are going to happen, stocks are going to go lower. >> negative net interest margin --
>> take a lesson from the u.s. the banks haven't recovered. >> credit suisse, everybody talking about problems with the european banks. >> you don't know the extent of the problems yet, so why try. >> okay. how about kohl's, lower after reporting sales that missed estimates, cut its guidance, joe. cramer called this a shocker. and a major miss. the stock is getting crushed by nearly 20%. >> specific to the company, it is markdowns, promotions and those never work well. i think overall for the sector it is concerning. thanksgiving to christmas, yeah, looks good. but on the other side of christmas, it looks like january lined up to be a terrible month for retailers. what does it mean for jcpenneys, macy's, even my favorite limited brands if you get b-roll on that, limited brands looks lousy, down 5%. >> how about ralph? speaking of down, they missed, pete. a lot of concern about what is happening in high end retail. we talked about it earlier in the week with an analyst who downgraded some stocks. ralph is getting blasted today. >> they were talking about traffic.
and you look at it, it is a revenue miss. the revenue miss was something very massive and then look at the guidance, that's what everybody focused on, that's what we focus on all the time, what is next, how do things look. the revenue guidance looks below this past year, for that reason, it is down significantly. hit 94. you don't need to step in this just yet. >> josh brown, give me the scoop on dunkin' brands. >> it was a better than expected quarter, this is hammered. 24 off the high. mcdonald's is hurting them with all day breakfast. because people would stop into dunkin' donuts for a snack at 2:00. mcdonald's usually ten feet away. they raised their dividend. if they don't get their act together you could see an activist in this name. i'm long, not selling. it has not been pleasant, but not the end of the world. >> super bowl 50, a few days away. so how are some of silicon valley's biggi isgest names get
involved? >> we're going to talk about sponsorships and what is interesting is who is not here. up next, apparently mark zuckerberg is not a football fan. we'll have the story after the break. they work all the time. sup jj, working hard? working 24/7 on mobile trader, rated #1 trading app on the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of other competitors do on desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivatives pricing model, honey? td ameritrade. perfect driving record. >>perfect. no tickets. no accidents... >>that is until one of you clips a food truck, ruining your perfect record. >>yup... now, you would think your insurance company would cut you some slack, right? >>no. your insurance rates go through the roof. your perfect record doesn't get you anything. >>anything.
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cut it out. >>see you tomorrow. ♪ won't keep you up at night.n know you have insights from professional investment strategists to help set your mind at ease. know that planning for retirement can be the least of your worries. with the guidance of a pnc investments financial advisor, know you can get help staying on track for the future you've always wanted.
super bowl 50 fever hitting the west coast this week. and some of silicon valley's biggest names are looking to capitalize on the big game. jane wells is live in san francisco with that story, jane. >> reporter: you know, last time the super bowl was in the bay area, scott, mark zuckerberg was a year old. i'm not seeing facebook anywhere here in super bowl city or any of the new technology names. instead, the sponsors are old names like intel, which actually has a popular booth. how long have you guys been waiting? >> four hours. >> reporter: four hours to get into the intel booth for a 3-d engraved image of yourself.
levi's and s&p, fans playing quarterback through virtual reality. the chevron created a booth highlighting math and science through, quote, the catch. >> moving to his right, montana lacked the ability to plant and deliver a strong throw. >> reporter: chevron dissected the famous catch by dwight clark from joe montana which sent the 49eres s ts to the first super. and how the law of motion remain the same but players changed kriewal creating new challenges for football. >> the players are bigger and faster. so when they get to that collision point, it is violent. so they had to do something about the safety and i think the -- when i first saw what they wanted to do, i was against it. but now when you watch it, football still is a tough hard hitting sport, but it is a lot
safer. >> reporter: money and football changed too, scott. when clark was a rookie, he got paid $30,000. that wouldn't buy a sponsor a stanchion here. >> one of most iconic plays in football history, jane. >> reporter: you bet. amazing. >> everybody thought montana was throwing the ball away too. let's talk earnings. linked in reports after the bell. what is your outlook? >> sloppy stock. i hate getting involved with four hours left until they actually report because you could get a huge gap in either direction, especially with a name in this space. if you do get a sell-off, i would use it as a buying opportunity. i think linked in's competitive mode is incredible. probably more defensible than facebook's. >> linked? >> i tend to lean with josh. one thing they focused on is how they grow internationally and china was one of the areas they were trying to get themselves into a bigger position. i think that strategy is working for linked in, but that doesn't mean that will push the stock
higher after the close. should be an interesting earnings call. i'm with josh. i think you stay on the sidelines and wait for the numbers and go through them. let's spend the last minute or part of it talking about go pro. stock is down 90% from its october 2014 high of $98.47. what in the world do you do with this? >> do what you've been doing on this desk, avoiding it. it is a one product consumer company. they botched everything from the marketing, and i just don't there is really a market for it, so they'll come out and talk about, okay, is it going to be bought out, the transition to a media company is off the table. i'm not buying it here. >> if you forget everything else, just remember this one thing, the biggest problem with publicly traded consumer electronics stories, nobody wants to buy a second one and once everyone that wants it has it, it sits in their drawers, they don't buy the second one, they always collapse, without question. >> i think the mismanagement that started in august
unfortunately, judge, they still have time, but the time is starting to run out. >> still have time to do what? >> they have got to put out something that excites people once again. they have not been able to execute. the session was a complete bomb. because of that, drop the price, drop the price, that's been an issue for them. >> thank you. "power lunch" starts now. welcome, everybody, to "power lunch." with melissa lee, michelle caruso-cabrera, and brian sullivan, i'm tyler mathisen. stocks and i'll flat on this thursday. but the heat is on down in washington. and on the drug business. embattled former pharma chief martin shkreli's appearance on capitol hill leaving lawmakers furious. shkreli infamous for raising the cost of a drug from $13.50 a pill to $750, was there to testify on soaring drug prices, but he refused to answer any questions. it all began back in september when shkreli's former company