Coming up in moments. Sprint shares lower in premarket trading this morning. Wider than expected loss, lowering of guidance and loss of subscribers, plus job cuts. Shares of michael kors down premarket after Holiday Quarter guidance comes in below street expectations. Alibaba reporting quarterly profit 45 cents a share in line with estimates. Shares of alibaba have risen 50 since the september ipo. As we said, we are moments away from a live interview with alibabas executive vice chairman joe tsai. We are getting used to these metrics, gross merchandise volume, annual active buyers, and general, we are going to get to the interview right now. Lets do it. Joining us first on cnbc alibabas executive vice chairman joe tsai. Very nice to have you here after this first Quarterly Report as a public company. You guys have made a great deal with mobile in your remarks. In your slide presentations. Let me start there. Its grown to represent 35. 8 of gross merchandise value. Your take rate moved up to 1. 87 on those mobile on the monetization of mobile. Is this the beginning . Are you going to see it be more than 50 of your gmv . David, thanks very much. Nice to be on the show. Our mobile tracks well. Alibaba is very much a mobile company. We are also doing very well in terms of monetization. Thats because the users coming to use our mobile apps have strong commercial intent. Its no different than when they come to the desktop. We feel very good, very confident about the users behavior on mobile. In september, theres 217 million mobile active users using the app. We feel very good about it and the trend continues to do well. As i mentioned, the mobile monetization rate is up a significant jump. Still well below that of people who use desktop to buy things on alibaba. Do you believe you can continue to move that monetization rate up perhaps . Can it get to as high as people monetize on desk stops . Last year we were less than 0. 5 and weve been slowly able to take up that take rate on mobile now to 1. 87 . Thats something we are looking at. We feel pretty confident over time, in the long run, monetization is going to be pretty much the same as desktop. The way we look at the business is that there is really not a huge difference from a user standpoint when they come to the desktop computer or mobile screen. When they come, they have very strong intent to buy something. We are generating 95 billion of gmv over the last 12 months on the mobile device. So that bodes very, very well for the future. Joe, you say clearly in your slide presentation and on the call you dont manage to a margin target. Nonetheless, a few people do point out the significant decrease in your nongap ap ebit margins. It was a significant decline. Is that something expected here or potentially additional costs that were one time in nature . One great thing about our business model, its a high margin business. That gives us the confidence to reinvest that margin into new areas for growth. What you saw in the latest quarter is exactly that. We integrated two companies u cwebb that we acquired that will bring a lot of longterm potential for us, lots of users. Several hundred million users in the case of ucweb. These are at the cusp of monetizing their business. That is one factor why the margin is coming down. We are organically making significant investments in new areas, for example, our mobile operating system, local services and digital entertainment. These are all very new areas for us. Its early days. We are very longterm committed to making investments in these areas for future growth. Jim cramer, thank you so much for coming on our show. If i can, i want to go back again and reference to what david said because the margin trend page is freaking people out. One is people feel, wait a second, do we have an amazon. I hate to put them in the same sentence because you are obviously much more profitable. Facebook said its a reset year. Twitter spends more money, doesnt know what its doing with it. I wonder if we are in a situation where you guys decided we have to grow so fast this margin will come down year after year, plus spend a lot of money because singles day is coming up. Is this the beginning of when we hear alibaba is a lot more like amazon, more like facebook and not Like Companies we think margins should go higher over time . We are not like amazon because of the fundamental business model. Amazons margin is hampered by the fact they take on inventory and have a large cost of goods sold items. Their gross item starts with a low number, somewhere in the low teens. In our case, we operate on a marketplace model where the revenue we generate coming from commissions and also Online Marketing services have inherently very high margins. In our core business, we dont see really any reason why the margin needs to decline over time. So in terms of the margin youre seeing in the latest quarter is reflected in the fact we are making investments for growth. We are going to be disciplined in these investments because you can only focus on a few areas. We strategically identified these longterm growth areas like digital entertainment, like local services and also doubling down on our investments and mobile operating system. These are all longterm strategic projects. We take a very disciplined approach to that. Few companies would have a better state of sense of the Chinese Consumer alibaba. How would you describe them right now . Lets tart with the big picture. Theres 300 million chinese con umers shopping online. Most are shopping on our platform. We just reported we have 307 million active buyers coming to our marketplace. You can segment these into city and rural consumers. We recently decided to make a big push into the lesser developed areas of china where only 9 of the population is on ecommerce. We think Growth Potential was very, very good. We think this will help us to develop a strategy where we help those that are in the villages that are farming, Small Business and small consumers and help them to grow as think acquire more economic spending power. Any prediction what you will see on gmv on singles day, a week from now . We dont give any predictions. The thing about singles day this year is we are going to be focused on globalization meaning we are bringing a lot of merchants outside of china to sell on our team platform. Well be focused on mobile because the User Behavior is rapidly shifting to buying stuff on mobile devices. So thats going to be very interesting to us. We are also going to focus on our broader ecosystem to bring in ecosystem partners that help our retailers, Software Providers that help our retailers to do their business better on to our platform to create a very, very exciting shopping day. All right. I hope to actually be there perhaps even in person to watch it. Joe tsai, very much appreciate your time. Executive vice chairman of alibaba. You going to china . We are going to see, yeah. We are trying to see if we can make that happen. Who is we . The team. I was going to say singles day. Ill go. I would love for you to join me. Why not in. You just came back from china. You going to china . I dont know. Ive got to hold down the fort. I was hoping we would get a better sense of the Chinese Consumer. Its important. He didnt say we are not going to blow away the earnings. He didnt do a facebook reset or bezos, its important to spend, spend, spend. I said stock was up 4 and we are going through the same releases. Its wow, wow, wow margin trends, we dont manage a margin target . Clearly not. Salomon pizza. By the way, those margins, 59. 4 a year ago, ebitda basis now 50. 5. Thats a big drop. That is a big drop. Thats not what you want to see. They are mobile. We talk about it so often, facebook and the huge transition they made. Mobile was not much of its business not that long ago represents 36 of what goods are sold are sold on mobile. Their market cap at 250 billion is above walmarts. Right. Ive got to say talking to a few people the last couple of days, there were people when this thing went public, i can justify 100, 25 multiple on what my number is, none of them own the stock any longer. You put the facebook mobile on you get to 120. I read these nonincome margin figures and ebitda and i say, okay. Thats not what i was looking for. I think what happens is im not the only one saying thats not what im looking for. Newer people will say i cant get trapped in another amazon even though its outrageous to link the to, given how profitable one is. I said last night, the growth guys are going to love it if they do the number. They did earnings per sharing was just okay. 39 growth. I think when the smoke clears theyll say this is okay versus amazon versus facebook versus yahoo versus tweetless. I meant profitless. Im viewing twitter as more of a university. I saw that model. Youre tweetless, not in seattle. No, im not going to stop. That is kind of what i do in life. You dont stop. A sam cook story change is going to come. Youre unstoppable. I was going to write back and say, i thought you would say he was born by a river in a little town. No, but they are having a good time. Change is going to come or a little chain gang action. Dont know much about profit. Dont know much about how to make money, but i do know that i make you give me free context. There you go. Change will come. The face of the company that facebook bought for 2 billion is part of the social networks bet on Virtual Reality. A live interview with the ceo of oculus. Take another look at futures. Well get to a lot more when the wall street journal report returns. The world has gottenreturns. Y in the premarket. Expecting a wider than expected loss in the Third Quarter adding it lost 272,000 wireless contract subscribers. Announcing plans to cut 2,000 jobs as the pain gets not uniformly felt. That release posted 20 cut in the ebitda guidance. My two favorite words are marce marce marce marce marce marce marcelo. I said a transformational journey. I want to know to where . So do shareholders. As the stock is down. Those say they kitchen sinked the quarter, because they threw everything in there. August was the worst month. Theyve come up with various plans. The worry is actually then they are guiding next year up not as much as you would have thought off the down this year. They are getting some traction on customers. Youve got to remember when you get your subtends moving the right way it whacks your ebitda because the marketing expense, network expense. Apple expense, right. Then took huge cost cuts. 1. 5 billion is more than people anticipated. Its a high multiple stocks with a lot of leverage and getting hurt. There is a tmobile out you should sell tmobile from bank of america. I thought these two ought to think about merging. You saw john legeres tweets yesterday making fun of the competition. I hope he comes on. Maybe sits over there if spencer will let him and find out whether he likes the tmobile sell. Your point is a good one though. That is the deal soft bank which controls sprint wanted to do. Its a very different landscape as they try to claw back. Must be a typo. It was not a typo. 72. A lot of nottypos here. Kors was not a typo. Well get cramers mad dash, countdown to the opening bell and the premarket as the dow industrials, the utilities and the transports once again try to set a record together. Its only happened 25 times, if you can believe that. Almost happened yesterday. Each , but there are no branches . 24 7 its just im a little reluctant to try new things. Whats wrong with trying new things . Feel that in your muscles . Yeah. I do. Try a new way to bank, where no branches equals great rates. You can bring back from a trip around the world. But you cant always bring back customer data. Because many customers dont like it when their data moves around. Can i go now . If youre going to do business globally, you need a cloud that can keep your data where it needs to be. Today, theres a new way to work and its made with ibm. Its in this spirit that ingu u. S. Is becoming a new kind of company. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. 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Companies are fragile. They can be destroyed. The numbers today for herbalife, United States business declined 4 . New members down 17 after five straight earnings weve seen two consecutive huge misses from herbalife. That is bad. They have a lot of negative leverage here. Venezuelas bad. This was very bad in the u. S. We have to acknowledge the fact the impact of the nonstop 24 hour herbalife is a scam ackman call is having an impact. Its almost two years since he first came up with the idea, right . It was december 12. He hasnt gone out of business yet. No. You are going to see a reduction. Be aware the stock is down for good reasons. Down stocks and down earnings. Kors also. When you read the release and you think kors will be screaming today, but no, kors had a very big decline in u. S. Same store sales. Looking for a high teens and they came in at 10. On the Conference Call which we were listening into with one ear, the company cites more significant reduction in mall traction. Howard schultz, starbucks, friday, this reduction in mall traffic is playing havoc with the companies that thought, if you build it, they come. There is a real reduction. Michael kors is not an omni channel place. Comp guidance to high teens. This is not what you want to hear and the stock has to go lower. That overall trend of fewer people visiting malls is a significant one. Weve been talking about it for a couple of years and it continues. It does. Other than costco which is not a mall story. We are talking indoor malls. Where your kids would say hey, dad, i need 50, i want to go to the mall. Now its dad, give me a 50 amazon card. Thats what it is, id like an itunes card. You can use your mobile device. Our conversation with joe tsai earlier. Congratulations on that interview. I dont think he spoke to anybody. I dont know about that. Its their first quarter. They want to communicate. They are a Chinese Company with a huge u. S. Investor base. Weve got more to watch this morning including priceline shares. You are watching cnbc squawk on the street. Euro zone kugt their forecast to 0. 5 this year and 0. 8 next year. All the earnings and Companies Cutting guidance, herbalife, discovery, priceline, time, cvs. Priceline, europe they said results in europe were mixed. Historically, priceline guided conservatively. The quarter itself was nothing that i expected. There is the opening bell. At the big board, Fidelity Investments celebrating the recent listing of three etfs and on the nasdaq, web summit europes technology event. Nasdaq with an 11 gain this year so far. They are closing in on 10 . Today will be a wakeup call for some of the nasdaq stocks. Im looking at the number of companies that have done well versus badly this morning. I just dont like the looks of this. There are a lot more companies, it would seem. Alibaba was fine but market capwise thats better than these others combined. I will mention discovery, for example. We can take a look at shares. The company lowered guidance. It wasnt a huge reduction, but revenue guidance lowered between 6. 35 billion for the full year that will end with december 31st. That was a bit lower. Down by about 163 million. They also lowered their operating income before depreciation and amortization by about 100 million. Stock is getting hit. They had issues there, whether its ratings. This stock has already suffered a lot this year, discovery. Europe is the common thread. Look what priceline is saying, not ebola, but europe. Gross bookings up 28 but blaming weakness in europe for a lot of softness. Its stressful this morning. Red robin gourmet, does that count as a company that did better . Ill give it to you. Thats just the extent, using that as a template that there is not a lot to write home. Bloomintoday . Bloomin, red robin. Regeneron, not what i wanted. There is a guide down. There you go. Makes up for discovery down 9 , sprint down. What is herbalife . Herbalife down almost 15 . According to the times profile on ackman, this is about the price which bill begins to turn a profit on hlm. When you saw suntrust, there are guys who like this. I think the support is going to be evaporated here. You need to see better numbers. Wasnt just venezuela, you know . That was a big part of it. Venezuela, theres like 200 million they are never going to get back. If you look at clorox pulled out of venezuela. There are other companies that hang on betting that chavez would somehow, things would get better. Things have gotten worse. Venezuela is a great economy that these Companies Keep hoping comes back. Has got a lot of oil. Argentina, when they banned proctor. What is that . Can we talk oil . That is the other story today. We watched it move well below 80. A lot of these names have been getting beat up. We talked about san bridge down. There are 34 states that do better. 16 states are oilrelated. So this is a lowering of the tax on the consumer. Red robin. What happens . Is there a push in there . 33 do better. The growth states. Whats the one . Good point. The problem with oil, okay, is that ive always felt the employment growth in this country was skewed toward the Oil Companies and all the different jobs that are done to get oil out of the ground. They are still going to pump it. You buy the transports and sell the oils. Cso does upgrade conoco and chevron to buy from underperform. Timing is everything. Maybe this is the moment. I dont know. Remember exxon and chevron were tricks on friday. They went up and they really got hammered yesterday. I just dont like the