And stuff. I think the first one they have is a screen one. I think eventually theyll bring out one that has a qwerty keyboard, as well. Netflix, we use this. You can get old episodes of law through your playstation. You can have it put right into your television. See, Video Streaming Service posting a profit of 15 krevents a share. My blackberry makes a sound every time i get a message. Are you kidding . Every time it buzzes, its either itunes or netflix ive bought something. Now, who is doing that . I would assume the kids are doing that. Like every minute. Its like, oh. You know that sounds will annoy you. Thats okay. Can you does it bother you . No. I feel good. I feel like im im going to send you emails. I feel like im involved. Did you see what facebook causes in people . What . Loneliness, envy, jealousy, depression. Here they are sitting in their dpred depressing basement and theyre seeing these people doing these the lives theyre lead sg like, my life is horrible. Did you see that . Facebook makes you depressed. It doesnt surprise me. Especially when people are checking in on people that theyre not friends with any more. Right. Its like, look at what im doing. Everybody else is living this great lye, but theyre not, either. Theyre on facebook. Pretending. Yeah. Probably pretend vacations, pretend girlfriends. Revenue Beat Estimates that came in at 945 million. The company added 2. 1 million subscribers for a total of 27. 2 million. Ceo Reed Hastings spoke with our Julia Boorstin exclusively about future growth. Now, if you look over the last year, from the beginning of the year to the end of the year, nearly 10 million subscribers. What we want to do is keep making the survey better and better. Some quarters we come in above forecasts and some quarters below. Its more of a forecasting issue than a business issue. And, really, whats happening is internet tv, this click and watch, the control you have, being able to watch on an ipad, all of those things are very powerful and more and more people are doing that. And netflix shares jumped more than 30 on the news. Stocks still well below its alltime high back in mid 2011. Do you know, querty, did they make that up . I thought it was qwerty. Yeah. Why is it called that . I dont know. Honestly . Oh, no. Its the first line of the keyboard. Yeah. I didnt know that. I was trying to trick you. I didnt, either. The control room told me. Oh who . Dave evans. Snake. You saved your rear. Yain that, either. And i looked down and i go, holy holy cow, i didnt know thats what it was, either. Holy qwerty. Yesterday stocks were up once go. The dow is up nine sessions out of ten in a row. As many foourchs futures and nasdaq futures are indicated slightly lower, but the s p 500 was up yesterday for the sixth strayed day. It was not, by the way, had a sevenday winning streak back to october 2006. If things were to turn around today, we could break that session. Well see what happens. We have a lot of earnings coming out before the bell. Obviously, technology has been deriving things over the next couple of days. It had its best day in a year and ibm made up for all of the dows gain by 60 . Also, take a look at ohio prices to 9550. And the tenyear yield at this point has jobless claims. Economists are looking for an upset aftervery low numbers the last time around. You can see right now that the dollar is mixed this morning. Its down against the euro, which is at 113358. And gold prices are down, 1,678. 20 an ounce. Michael corbett says the bank has the right status to generate future growth. Speaking at the World Economic forum in davos, he tells cnbc that several years worth of revamping efforts are beginning to pay off. Over the last year, weve simplified the company a lot the. Weve become smaller, weve become simpler. Corbat took over in october after the resignation of chief vickram pandit. Very sharp in the stripes. Yeah. The gegco, do we have a shot at him . No. That looks pretty good. Theres product in there. What do you think, its water . There is product. And, you know davos, they tend to walk out with wet hair and it turns to ice. But people dont look that good in davos, normally. Thats true. He looks like a banker there. I think he has a lot of potential as far as his looks go. In the World Economic forum in davos is in full swing. Lets get to andrew buzzing in the mountains of switzerland. Youre a big applephile, too. Youre hoping people look good in davos . Whats going on here . I was going to we have a very, very we have a beautiful, gorgeous guest to my left right now. Guest. Jen bistamoyo is here. She is davos woman and here we are is that is not right. And you had bed head yesterday, appeared rue. Did you ever look over here, it was like a big lump. He goes in there and is does a lot of stuff. You didnt tell him that . Well, i didnt want to tell him on the air. Imng to embarrass you on the air. Tell me on a commercial break. I didnt notice, andrew, or i would tell you. Guys, thank you thank you, becky. You guys were talking about blackberry so. To drop some names last night, we have different with orstin hines. I should tell you, jamie dimon and lloyd flankfine were there. What was the thing they wanted to see . They wanted to play with the blackberry. Guess who else was at the table . And this was, i thought, pretty cool even though im not the biggest sports fan in the world. Derek jeter. Our producer, she got a picture with him. And i think that made her whole trip, right . Shes right there and shes very happy and shes smiling. Shes kind of embarrassed. Anyway, David Cameron arriving here this morning. Yesterday we talked about what he was proposing in the uk in items of potentially getting out of the eurozone. Today, he took a different tactic. We talked about not raising tax rates, but as corporations around the world both affecting issues in the uk and elsewhere are becoming a real issue. I want you to take a look at this piece. Individuals and bess must pay their fair var. And businesses who think they can carry on, they can keep selling to the uk, and selling uk tax arrangements are for you to wake up and sell the company. That comment, by the way, about coffee is actually about starbucks which has created some problems because theyve been avoiding taxes in the uk. But take a look at this quote right here. David cameron not making friends. Labor mp Dennis Skinner says it was gruesome for the Prime Minister to be heading out of austerityriddled britain to wine and dine at davos with 50 top bankser who helped create the economic crash several hundred tax avoiding milliona e millionaires. A lot of people talk today about a report. There was a report earlier this morning that mr. Oh lund discovered averting. In total, the report was said to be untrue. We have a lot more to come, by the way, including a huge interview with ray dalio that were going to do at 7 30. So stay tuned for that. But in the meantime, the beautiful guest i was talking about, were going to get to her right now. She is, i think, davos woman. Youve been here for 12 years . Something like that. How many years have you been here . Something like that, actually. I cant believe it. But yeah, off and on. Joe, we were talking about apple. But one of the things and you wrote the book on china. One of the big issues that came up in the Earnings Report is margin compression in part because their costs are going up. Yeah. How much is that going to continue . How much is that going to be a problem . And what other companies is it going to affect . I would answer this in a couple of ways. First of all, we tend to get focused on wages and wage pressures. Its important to be focused on that, but i think what that is comes down to what . What i would suggest is that first of all, need to not just focus on wages, per se, thats important, but think about the broad r concept and see what the implications might be. But the other quick thing i would say is 90 of the population lives in the emerging woorld. We have no idea whats going to happen yet and to other places where actually there could be significant cost businesses. When you think about labor, is this going to hit the other atlanticmakers soon. Its robotics. Feeding gene into the sorry. Will electronics wps be affected like this . Yes. But i think other companies around the world are looking at this very seriously. You mentioned energy. People have talked about energy and shale and fracking before, but not like this year. You were there about a year in advance. Your sense of how quickly this will happen . I will tell you, its not built into the market at all. I think its right not to be built into the market. One of the things that i wrote about in my book last year that i think it will kind of be overoptimistic about what the implications of the revolutions could be. Could the United States be Energy Independent . That would be fantastic. But there are so many effects that people dont factor in. Are you a believer, by the way, that oil could go down to 30 or 40 a barrel . No. No. Somebody last night was making that observation. I do not believe that that is the case. In the past, ive woshgdz closely in oil and gas and i think those people are missing the structural implications. Were living in vary unique position. This is vary unique time in the history of the world in terms of population. The population pressure themselves i think will raise the floor on the oil prices. Your sense on the mood of an economy. Steams you come there and you obviously things dont always always come through. Northbound suggested its because the adjectives are fun. Do you buy that . No. I would say the last couple of years, people were pretty negative. I have to say, though ive only been here a day, people are pretty positive this time. A bit more optimistic about what might be happening. I wouldnt say its time to pop champagne, but people have been more positive this year. Thank you for being here. Joe, becky, back to you guys. Well see new a little bit. We have a fun segment for you at 6 30. You do. I looked through some of the stuff, andrew. Youre a regular skier. Its a little embarrassing, but well show it to you. Dont give it away. But your heel there it is. Your heel is not tethers to the ski, right . Thats what makes it right . This is a different type of skiing that i had never done before. Oh, god. Good. Now youve got the piece. Youll see it. There might be a fall or two involved. Thats how your hair got messed up yesterday. Coming, whats a fair price for apple now that its below 500 a share . I can tell you right now, 467. 80. Do you hear cameron . I love that fair share stuff. Im going to listen to a politician about whats fair. And the newsmaker of the morning, a squawk box exclusive with ray dalio. Bridgewaters biggest hedge fund. Dont miss it at 7 30 eastern. [ male announcer ] it was designed to escape the ordinary. It feels like it can escape gravity. The 2013 cclass coupe. Starting at 37,800. Welcome back, everybody. Take a look. U. S. Equity futures are indicated higher this morning, up by just over 10 points. The dow and the s p 500 have been on a huge winning streak. Down has been up for nine out of the last ten sessions. And the s p has been up seven sessions in a row. Well see how today plays out. Right annoy, the s p futures and the nasdaq futures are indicated slightly lower. Lets take a look at shares of nokia, the hand setmaker beating expectations, announcing plans to scrap its dividends. That stock at this point looks like its up about 4 cents. Apple shares taking a hit. Brian white joins us now with reaction. And, you know, brian, we can parse through these metrics and we can find out exactly what a percentage shortfall in these things. But it all comes down, you need to be a psychiatrist. At 700 versus 400. Its the same company, basically had the same prospects, same innovation, same products, same market share and same potential for Global Growth that it always had. It all has to do with investor sentiment. And at this point, you can see it right there on the chart. That tells you where it should be trading. I dont see how we can say it shouldnt be there or whether it should be there. Thats where it is, right . Its been a slippery slope. They ran into a lot of yield issues in december quarter that held back the demand for ipad mini, for iphone 5. The quarter was minus our sales, a tad lower than the street. Eps was better. Its the outlook that people are concerned with. They did change their outlook commentary in that theyre not going to be ultra conservative. Theyre going to give something realistic in a range. And one of the things we did earlier in the week is twaek or model for an iphone in june as opposed to what we taught an ipad in march versus an october launch. That brought our number down to right in their revenue range and our eps in the street. So we think they expected an iphone 5 in their future. On the way up, 200, 300, 400, 500, 600. All it was was you could have parsed the metric then and said this wasnt as good as we thought it was. But people didnt own the stock yet. People that wanted to get excited about the apple story didnt own it yet. When it comes to 700, everyone who felt bullish, everyone finally owned it and who do you sell it to at a higher price . Its simple psychology of greed and fear and everything, right . You bring up a great point. And this is what i give up, brian. I look at the numbers and i say theres no reason for me to do this. I need to take a psychology course. These guys have the best portfolio. And that hasnt changed. Theres very exciting things on the horizon, apple tv, china mobile. What they need to do is tap into this cash balance in a major way. Yeah. So a dividend thats higher than we previously previously had. And a 10 billion buyback over ten years, why not do 5 million back at 10 . Tlooefb doing that are to a while, too. People always put them down for it, but you cant deny it as 204 or whenever it is. Exactly. And thats what apple needs to do. At 137 in cash, they can do it been thats something to look forward to, as well. The minute they do that, though, people will say, you see, its over, right . Well, you know, i think they announced the dividends early last year and they need to hike it. You cant sit around with 137 billion. What would happen with the stock, do you think, if they did that. Not a sustained dividend. 3 billion in just over three years is kind of consulting. Over 600, they all have trouble. It doesnt matter who it is at 600 million. And i dont know how many of your peers said at 700, you know, they kept talking about the multiple, cheap, cheap, still cheap, 500, still cheap. Cheap is stock in the tech universe, cheap, cheap, cheap, cheap. 467 today. Still cheap. Cheaper. I mean, its trading at six sometimes cash, right . So it definitely is cheap. Gotta be a buy. I think one of the problems is just expanding the investor base. Who is in it . And thats cash, distribute i ing. I started at 300. Some of the big he market caps yeah. By far. Its 300 for a gadgetmaker. And then i get converted, everybody against converted finally, but then its like greenspan with the rationale exuberance. Its 5,000 on the dow and it went to 14,000. So urch right. I wish, you know, with ibm. I look up and then i call you brian. In china, thats what they call me. When we come back, the head of pimco is leaving. And when in davos, in this case. Andrew tries his hand at crosscountry skiing. Oh, my god. That is him. Yeah. I agree fully. Good morning and welcome back to squawk box here on cnbc. Im joe kernen along with becky quick. Andrew ross sorkin is reporting live from davos, switzerland. He borrowed sabers hat. I didnt know what happened to that, but hes going to be wearing it when he does his package that were going to take a listen to here in a couple of minutes. At what time . Its like in three minutes. Okay. In the headlines this morning, apple shares taking a hit. Yeah, thats one way you can phrase it, i guess. After the Company Issued a disappointing revenue forecast as well as iphone sales that fell below estimates, apple shares hit a high of 705 back in september. But has now seen about a third of that saved off and almost a 50point loser today. For china Manufacturing Activity rose this month to the fastest pace in tw years, monthly hsbc, they use a purchasing managers index. And it registered its fifth straight monthly rise and thats an indication that china may be coming out of an economic a deceleration, obviously, and theyre still growing more quickly than most other companies. Were about two hours away from the labor departments weekly report on jobless claims. The economists expected to jump and give back those big gains they saw last week. It was a fiveyear low last week. You remember the market rallied. It was 360,000. At that point, we had to get a housing start number and we were up sharply that day. Thats helped the rally. It has. I think its nine out of ten days that weve seen so far with the dow. Take a look at the futures this morning. So far, dow futures have been indicated a little higher, right now, up by just over 6. 5 points. S p futures are down. Nasdaq futures are weaker, as well. Theyre down by about 32 points. This is coming after a very long winning streak. We are speccing more news this morning, expecting some 3m and dow components. If you take a look at what happened in europe, all of this good news, the dow was unby 67 points yesterday. At this point, its three points away from its alltime high. Yesterday you saw a lot of movement. Right now, europe is trading slightly higher. The cac was up by about 4 points and in germany, the dax is lower by about 11 points. In asia, you did see higher closes. It was up by 1. 25 . The shanghai and the hang seng were slightly lower. Other markets in area slightly lower. Lets take a look at oil price these morning. Up by 32 cents, 95. 55 for wti. The tenyear is yielding at 1. 812 . Those jobless claims, that will be a big factor for whats happening in the market today. The dollar is mixed. Down against the euro, 1. 3326. Higher against the yen. Gold price these morning have been down slightly, down by about 9. 1,677. 70 an ounce. And we have some other news. We have been focusing on this morning, pimcos Neel Kashkari who has been on, a frequent squawk guest, he is leaving the firm. He says hes considering returning to government service, potentially running for Public Office in california as a republican. Cash kashkari has been a frequent guest. He oversaw the t. A. R. P. Program during the financial crisis before going to pimco in 2009. In a statement, kashkari says he has the obligation and the desire to serve his community through public service. I knew he would need to do this. He is out there, hes a republican, and he is right in the