Twitter. Shares down 11 premarket after showing the worst growth rate ever. I spoke the outgoing Procter Gamble ceo yesterday. That coming up. Some disappointing guidance but first up twitter taking a hit despite beating expectations revenue up 61 in the user growth quarter. Interim ceo dorsey last night expressing his dissatisfaction during the Conference Call. Instant time lines and logged out experiences have not yet had meaningful impact on growing our participation. This is unacceptable and were not happy about it. We need to do three things. One, we need to ensure a more disciplined execution. Two, we need to simplify our service to deliver twitters value faster and three, we need to better communicate our value. Stock closed at 5 . Ended up down 11 after hours. The quote of the day, we do not expect to see sustained meaningful growth until we reach the mass market and we expect it to take a period of time. Thats what i spoke to the cfo about before we came on. And i put that to him. I said what do you mean reach mass market. You have. Everybody in the world knows you but they dont want to use you, and he said yes, everyone has heard of it and only certain people know how to use it. Again, they go over how difficult it is to use and how unsatisfying it is for people other than for a very few people and i said anthony, give me a reason to tell people to buy the stock now and he said if they take a longterm view you might buy stock but nothing in the immediate horizon, meaning in the next quarter or two. Youll people read jim cramer on twitter, itll be taking over. You dont take over a company with no growth. People want growth. They want growth at even an unreasonable price in the market. It was a discouraging Conference Call. It was not like baidu which was like listen we dont care. They actually care. The periscope was a bad idea because the body language was like were two and 14. Were going to make the playoffs but itll be a long time. I said listen guys i mean smile, do something, your body language is terrible. He said it was a demonstration of the product. I said there is an element of theater involved here and this was a a show that flapopped and got a bad revenue. To be fair they just dont have any growth in the chart in Monthly Average users which is important. Theres also this ratio of daily users to monthly users down. That ratio comes in 8 . I mean the issue of growth is one thing. The issue of existing users suddenly not checking in is Something Else entirely. Whats clear is in the next two quarters youll have growth down. Its down. Its not flat. Its down. In user base. Yeah. Thats what it sounds like. David, im going to tell you something. Its going to make your ego feel really big. A lot of this Conference Call was about you. That was the sub text. It was about you and your interview with mountain man dorsey. That was dorsey and costelow saying were here and we love each other. Your interview made them look like idiots. They repudiated everything they said to you. Were going well were doing poorly. They looked at the tape of you in your interview and said we must say everything the opposite. So they went from thinking all right. We love it to being all right, that didnt go over. We hate us. This was an existential crisis quarter on periscope where you saw people literally implode before your eyes. You think we did well . Well, let me tell you how we really did. You think were good . You know what . We dont deserve to be owned by you and we spent 700 million on talent walking out the door. We spent money on cap ex. What do you think if youre owning our stock, idiot . Thats a good way to drive an investment base away. I wanted to say at the end, im sorry that i own the stock. I didnt mean anything by it. I didnt mean to hurt people. Its a shame if i was a big institution and i ran pension money, i would say i apologize that i bought the stock. Are we now in a chapter where activists come in and demand massive buybacks . They cant do that. The activists are the people on twitter who say ive got 100 shares and im going to let them have it. The activists go after companies that are doing incredibly well where theres not that much downside. And i think what happens is they know theyre backed down by the fundamentals. This is an operational story. Not an allocation story. Dont get into my space. You dont get activists looking into that space. You got it . I got it. Are you implying they will go the way of they may activists. They may welcome guys with new ideas. They need to hold a user convention of the heavy users and say what do you guys need. Ive known them for a long time. I like noto. Anthony knows that. He helped bring the street. Com public. Im not making an analogy of the street. Com but i think they have an existential crisis that plays out in front of your eyes and that makes it difficult to own the stock and this is like my kingdom it is a shakespeare tragedy and when you did your quarter, that interview, this was like hey, guys this comedy all is well that ends badly. They conflated the two. It was a discouraging Conference Call. Very discouraging. Yeah. Well talk about it all morning long. Futures on the raise today as stocks look to build on the rally. On tuesday the fed is set to wrap up the policy meeting. Investors looking for clues of a timetable for Interest Rate hikes. In china ending a threeday losing streak. Youve said i guess were going to live with this like a lowgrade fever for a while. Yeah. They like to close the, china wants it to be higher. The communist party is in charge of this party right now. Theyre the only natural buyer. I was thinking if they could close it down higher maybe the commentary but the fed has to wait. They gave you a pass on greece. Do they look through the Chinese Market know that its headed down and then say we cannot tighting because we see china rolling over . I dont think they have that. By the way, my sources in china, they see the death cross coming. They are playing the part. The Chinese Government comes in where you want to come in to make the chart more positive. They are playing the chart as if theyre mothers day traders, the Chinese Government. This is not going to end well period. Of course not, but youre hoping that yellen says that. It goes back to where it started. To extent they dont succeed in stabilizing the market, that is what i mean. They manufacture things. And i think theres another economy away from the stock market. And, remember individuals are allowed to have five accounts. The numbers down dramatically last night. The government is trying to rebuild people who lost a lot of people. Make aircraft carriers. But making that leap from a loss of market cap for a domestic market and the losses suffered by that population to the fact that the chinese economy is going to slow marketedly as a result is a big leap and not one that you can make. The nasdaq went from 1,000 to 5,000 down to 1,000 but it was 9 11 that hurt the implieconomy. I think thats a similar situation. If youre looking for the chinese rollover to tell yellen what to do she may not buy into that. We still dont really know there may be ownership and things of that nature that could be transmitted over here. We dont know. But if it continues to decline, it was up yesterday. Every company i deal with says that there is no decline since the stock market went down except for the Largest Oil Company in the world which said theres a dramatic decline, and i trust the people from germany who sell cars and the car sales are bad, and i think you can say it may be the only things they stop buying is cars. I dont believe that. Thats a big thing to stop buying given its the Worlds Largest market. Is it . Car sales are hurt much more by this decline than they were by the nasdaqs decline. Car sales are meaningful. That is the marginal Growth Market in this world so its not a bullish sign. The Chinese Government is playing the chart, but theyre trying to keep the chart its bad, and i think they probably like it theyre saying the how can we head off the death cross and just make it so the mac d crosses over badly and the 50 doesnt do the 200 day. They like the overboard nature. They have skilled technicians. They chart and theyre all saying wow, our chart is bad. How do we impact the chart and they cant. I mean the chart is like they would love to come in and move the chart up so its a reverse head and shoulders pattern. Procter gamble, good interview, but they dont have the ability to reverse the pattern. Speaking about Procter Gamble and shampoo. They have chosen their future leader. David tailer is going to take over. Laughly will continue on as the executive chairman of the chairman. Last night i spoke with the current ceo. I asked if we should expect to see more divestitures under the new leadership. Is that transformation which has included as many as 93 brands and a lot of the revenue that goes with it is that transformation completed . In capitalism the transformation is never done but as john muller and i have said several times, this is 95 to 100 done for the foreseeable future. As you pointed out, we have moved to a company of ten focussed core businesses. These are businesses that we understand. These are businesses where i think in seven out of ten cases we are currently the worldwide leader with a lot of up side so we have a much simpler, such easier to operate, such more strategic business going forward. Of course you can see some of the brands right there. There are still Companies Reporting earnings on thursday tomorrow. And it will be interesting to listen to the call. In reading the transcript from the april call theres a number of analysts who say its not enough. Why dont you go for the big split, and i asked mr. Lafly about that and he didnt really engage on that question simply coming waceing back to saying they are where he feels they need to be. They have deals that have substantially lower the revenues as well as getting rid of many brands and employee rolls coming down to levels they havent seen perhaps since the early 1990s. Certainly a more focussed company. But then there are others who say they dont have their mojo. Getting organic Revenue Growth above 2 is still going to be quite a haul for mr. Taylor when he takes over. Polman at unilever they are up, they are kicking their butt. When youre Procter Gamble you wake up and say were getting our butts kicked by unilever. They have not reversed that. Polman has mojo. He stole their mojo. When when he come back this morning, well get a lot more on todays earnings. Also nick bilton author of the book hatching twitter, well get his thoughts on twitters call last night. And were a here at td ameritrade, they work hard. Wow, that was random. Random . No its all about understanding patterns like the mail guy at 3 12 every day or jerry, getting dumped every third tuesday. This happens every third tuesday. We have Pattern Recognition Technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. For all the confidence you need. Td ameritrade. You got this. Ive got two reasons to take care of my heart. Thats why i take meta. Meta is clinically proven to help lower cholesterol. Try meta today. And for a tasty heart healthy snack, try a meta health bar. Twitter is not the only social media firm having a rough morning. Yelp tumbling 0. 02 a share. Current quarter guidance below consensus. The chairman stepping down. They stopped providing maus. Six downgrades today. Almost all of them from a buy e live lent. Its a good letting. This was a terrible Conference Call about a terrible quarter about a company that i think is in a lot of trouble. Could you think of a worse day to say you want to spend more time with a firm . There was no Line International is particularly bad. It seems like this thing doesnt work overseas. Its almost like they have to do a total reset and say, okay we have to charge much less for ads, clean up the site and make it so when you look at it they tell you whoever pays the most is at the top. Google has e vis rated these guys. I think they would admit that offline things are quite bad. The only direct ads working. This was supposed to be the yellow pages for everything. Yelp has been outdone by so many different companies. This was a very discouraging call carl and i was, when i was on and i sensed a feeling of rez ignition that were just we dont have it. Sounds like another Conference Call i can think of. Some of these, baidu, twitter, yelp yelp. Theres a major reset going on. Yelp is no longer an Exciting Company to people to buyers to acquirers, to theyre just it doesnt seem to help. Theres no return on investment that is available for a lot of the people who advertise. They claim, the churn, i didnt like. They like the churn. To use an analogy from another ere era, you need to find some lipstick to put on this pig. And, of course there was a runup in the shares in the spring on stories that they were potentially for sale. Nobody is talking about that anymore. All these, dorsey can say jim, youre reading it wrong, its terrific, and others can say its a great quarter. The stocks are not lying. The stocks are telling the truth. Well get cramers mad dash and count down to the opening bell. We have to get to gilead and General Dynamics and buffalo wild and a lot more. Were back in a minute. Being a keen observer of the world has gotten you far but what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep them all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberyy apple scones smell about done. Ahh, youre good. I like to bake. With at t get up to 400 dollars in total savings on tools to manage your business. Time for a mad dash on this wednesday. Were going to focus on gilead of the 166 billion market cap that was recently 173 billion. One of the Biggest Companies out there, period is gilead. Right now its disguised. Its cosmic. All right. Now, look if earnings matter and earnings surprises matter and it was up even more. It was up six points most the night. This one would be it. This is the anecdote just like its the anecdote the hep c. This is life about membershiponey. This is the anecdote to yelp and twitter. This was a fine fabulous quarter where theres an unmet need that the payers are going to have to pay because it is such a superior drug to e rat eradicate hep c. If you get it earlier, it costs less. The va had a problem. Every single the lead story should have been how does the va not have enough money to pay for hep c. The elephant in the room is what are you going to buy. They have a lot of opportunities. There are a lot of biotechs. We dont think biotechs are necessarily overvalued. They have a ton of cash. The world is their oyster. This drug is a cure and its a remarkable cure and hats off to gilead for curing a disease. Without a doubt, and i made the point last week and given your comments and theirs about acquisitions they have more debt capacity. They can add more debt than any other company in pharma deal so they can do a big deal if they want to. More than Brent Saunders now that hes debt free. That was before the allergan deal. Very interesting products in biotechs that they dont think are overalled. When you cure a disease, i remember when i was growing up and they cured polio, and you thought wow, thats curing a disease. Its worth paying. The opening bell is coming up. A lot of companies and earnings to watch. Stay with us on skoik. Squawk on the street. More and more, data is visual. In fact, the number of mris has increased by ten percent a year. And a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. Because its so challenging a Research Project is teaching ibm watson to see. In the future, it could help clinicians spot key patterns quickly and precisely. Ibm watson is working to make healthcare smarter every day. Youre watching squawk on the street live from the Financial Capital of the world. The opening bell in less than 60 seconds as were trying to keep up with the earnings and awaiting the fed Statement Today at 2 p. M. Eastern time. Elsewhere around the world, brazil getting warned by s p. Weve been talking about brazil for days. How can that leadership stay in power . I dont know. They just got reelected. I think that that brazil is when you listen to the Conference Calls, brazil is always the worst thing. Atco saying brazil is bad. Brazil is worse than china. It is worse than china. Much worse. Yeah. With the olympics a year from now. Theres the opening bell. And the s p at the bottom of your screen. At the big board today it is brown and brown. An independent insurance intermediary over at the nasdaq bravos Million Dollar listing. San francisco airing wednesday nights. Theres a symbol for brown and brown, its bro. As in you mad, bro . Thats right. Weve been seeing that all over the Exchange Floor today. Gilead is the winner. Up almost 5 . Raising their full year. Hep c, Dow Jones Today says two of their drugs are the most successful drug launches ever. There are many