Like none other. Down 7 in the premarket. Cisco going in the opposite direction. John chambers reaction in a moment. Expedia buying the rival orbitz. Both stocks are spiking higher. But first up shares of tesla down sharply after a quarter operating loss of revenues also missed. They say weather, shipping problems affecting deliveryiesdeliveries. Tesla ceo elon musk said hes optimistic business will improve in china. I have confidence that by the end of the year well be in really good shape in china. Im pretty optimistic about it. I dont think theres some sort of unique missing fissure there. Earnings revenue, margin expenses cap x, cash flow and then your comparison for them today is no good. Yeah. The 40th anniversary of the saturday night live and the Conference Call needs to be included in the spoof of how we do business on wall street. A favorite line and customers vacationing, only their customers vacationed and no one elses but the financial this is funny. Our financials are better than they appear. Not worse. Thats really the key point. Then theres a lot of discussion within this. A term of spending staggering amounts of man. Hed like to emphasize that doesnt mean i need to todd is the presenter. I have to curse. He needs to bleep me. Yes. Because, yes, there was cursing on the Conference Call. I havent heard that since when they kicked the cfo off in the 1990s. This was without a doubt you have to go maybe you have to go back to sonheim. I thought you were going to say follies. Comedy tonight. Lets not have the comedy for a moment and he said the chinese, the sales people were saying listen, doesnt really work and maybe try it. That was a negative and then lets after the end of the day lost 10,000 a car. Cash burned 40 million. Losing 4. 5 million a day according to my friend anton. Why dont they sticker it . It should be stickered it is not a real company. Really . Just going that far now suddenly . Jim jim not a real company . Come on. You must have missed they need to do this over again. What they said was so not in keeping with what a company has to say. Im not kidding. I think you missed the part musk said the market xap exceeds apples in 2025. David carl i know animal house. The name of the college. I was willing to go along with the possibility that this could be a huge company. This Conference Call was a rub con that i have rarely seen crossed in my career of 35 years of press conreleases and Conference Calls. This is it. They got to call everybody. Whoa, whoa, whoa. Do it all over again today. You think you cant yes . No larry and curly could do a better Conference Call. Shep shep if we brought him back he could do a better Conference Call. Your comparisons to delorian today he compared himself to apple. When you compare yourself to apple, i come back at you and compare yourself to another gold winged problem. The delorian. If you say that youre going to be able to make fortunes in 2020 ill compare you to companies that dont stay in business. If you make claims like that delorian did make even 32,000 automobiles in a year. David david talking about 55,000 next year. I want you to believe because i test drove it. A great car. So was the delorian. It was a great car. People who argue who had one it was a great car. Still available. Youre on board with the downgrade. Target 175. On the notion bmw, theyre all getting religion on electrics. They have dealers to get a car now. Test drive it and buy it and walk off the lot. I want to know from alison whether theres a wind mill wind turbine from you know katie couric. That ad every 35 seconds. Yes. There is without a doubt. Its a good ad. Im with the jpmorgan call. Theyre sometimes in life you listen to a Conference Call saying, it cant be. It cant be. Someone hijacked the call and they put this was a hacked call. It was a hacked call. Someone is impersonating major executives. You are i think being a bit harsher than jpmorgan but the downgrade, you have citing the same themes. They do say basically highlight the execution risk associated with scaling production to the level theyre talking about and then as carl mentioned they come back to competition emerging amongst other automakers in the same area. Not to mention lower gasoline prices and many people poopood. Youre making a face. I had a hard time with that. But everyone comes back to it as a potential reason. I agree with you. Youd think its short term in nature. It is not necessarily something that will affect a purchase. Its a really good car, though jim. You get in it. You see the people. I mean there was a way to beautifully. Theres a way to do a Conference Call to give you hope to get back on track. What about the batteries . The grin. The grid yes. Morgan stanley analyst. 300. All hey, 300 spartans. Tonight this company dinls in hell. I think theres a lot of things in this company that are good. But that they have decided they have been theyre oblivious to how poorly theyre doing now. Like the zulily. They were like hey, listen. Its great, great, great. The customers arent buying. Its great, great, great. This is just like you dont know what youre talking about. The financials are great. Well spend like crazy and were really good and rambling and curse a little bit. When i was on jim any kimmel you go to the bar and have a cocktail. Like the old times. Loosen up. Like a dean martin roast. Yes. So to put a wrap on this with send in the clowns perhaps the appropriate song . Send in the clowns is better than comedy tonight. I was going more of the earlier works. You want to go with the later. Thats follies. Ill go ahead with it. We do not roll along. He can beat us both. Lets move on. On the flip side of tesla, cisco. Shares up beat the street with its quartly results. Raising the dividend more than 10 . Jim spoke with John Chambers and the strength in europe. Heres how chambers responded. Jim, i think you know that i watch your program here a week or two ago and said you might be all about yourself on europe but i think you called it accurate. I think europe is in a return state. It was minus 4 growth just a short time ago. Four or six quarters ago. Two quarters ago plus 2. This quarter, plus 7. Without russia is plus 9. What were often is business outcomes. How do you bring the connectivity to countries and businesses and you will see countries in europe move faster than u. S. Digitizing the economy, the business and changing the gdp Growth Health care job growth and education. We are in the sweet spot of all of those. Stock opening at a sevenyear high. Switching up 11 . Yeah. Its really Great Software story. John, the numbers really kind of extraordinary. Southern europe. This guys having huge double digit gains in Southern Europe countries. Right products, right time. I have not heard john be this strongly lets say dominant since the mid maybe early to mid90s. When you had to go to cisco to introduce the internet to the company now to offer a secure digitization strategy with cloud included. You must go to them. Theres an article in the paper today of how the white boxes merging with google and facebook to take over the world. You cant. Security issues. Chambers is back. I urge everyone to listen. Polar opposite of the Conference Call i ridiculed. It is about how cylinders other than Service Providers and cable set top boxes are doing well and he says theyre not coming back any time soon and you see double digit revenue growth. This companys fabulous. It is back. Its back. Cable set top boxes are not coming back. 20 since october. John chambers introduced every every single negative he pointed out and then the analysts go over it and he said its fair game but the fact is that when every single problem that they had in the line items big, switches routers, its now positive. Theyre being called in when you want to digitize the internet of all things you got to call cisco in. Its a lot of it security. It wasnt growth like fireeye and fireeye is growing like fireeye. There is, you know the rest of the world is doing better than we are digitizing. And theyre calling in cisco. Theyre calling them in like they used to like the 90s. I called cisco. I said could you put me on the internet . John chambers arrived. Lets get all customers get that kind of treatment. Interesting news release of costco and amex and unable to come to agreement on their merchant deal. Their deal expires in march of 2016. Amex saying that the loss will have a negative impact on revenue and eps in 15 and 16 and confident of 12 to 15 eps Growth Without costco. I am look. Amex opened down 3 . I have to tell you i think its overdone because on the Conference Call they said that this was a possibility. I listened to it. I said if it happens, you know going to be 4 of its u. S. Bill business. 2. 5 globally. Try to put an entirety, wrap it around. I didnt think it was in more than just, you know a low single digit wouldnt move the stock like this. I think its overdone. Doesnt matter. People are shocked if youre on that. They said this could happen and everyone felt it was just boilerplate he said it. A huge part of the loans are costco. Really . Costco no stranger to puttinging up a fight no matter who their Counter Party is. Coke yep. War against apple. Apple. Apple did in the end they solved that problem. Yes. Apple is hard to fight. Hard to fight jim son gal, too. He is no longer in. I know. Same cut of the same cloth. You know . Just great guys. Delivering fabulous numbers and giving special dividends and doing everything thats right. Theres a lot to answer for in the sense that i think that going back to the Conference Call i think what he should have said is if we dont get it done it could be really bad and he said it might not get done and this cfo is kind of really i hes exacerbating the problem because it should have been telegraphed earlier how bad it was. I thought it was minus 2 to 3 doesnt drive the stock down 6 and still saying overreaction and not handled well. Coming back expedia buying rival travel website orbitz. Shares of both companies up sharply. Priceline have reason to worry about the deal . Well talk about that. Former treasury secretary Larry Summers with his take on the recovery and suggestion of the fed coming to hiking Interest Rates. Get a look at the premarket. The dow been around 17,900 one time this year and looks set to do it again today. 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Expedia acquiring orbitz for 12 a share, more than 1. 3 billion this cash. 24 premium to wednesdays closing price. Last week on squawk alley we talked to the ceo about the Aggressive Growth strategy. We are investing more aggressively because the market is more aggressive. We think that the competition in the markets going to continue through this year. And we think next year the competitions going to settle down a bit. Well see about that. So much consolidation. They bought travelocity. Now this. Trip adviser, not the same model, good number last night, these have been two head to head really kind of hurting each other at this point and thats changed now and i think that theres still some that can be bought. Home away could be bought. Id always felt yelp could be bought. Theyre not as strong on fundamentals. Orbitz failed. Nothing short of a disaster. Terrible management. The sale price is below the ipo price. Think i it went public about almost 15 bucks a share when it went public. When was that . July of 07. Guess. An lbo way back when. Started in 1999 by American Airlines and a number of other airlines trying to respond to the growth of expedia and right. Controversialocity and came along and lets figure out orbitz and launched that in 01. Went public. Went private. Went public. Going private. Or being bought. I love them. Some say theyre all worried about google jim. Do you think thats true . They should be. I think they should be. Google on that last Conference Call is funny talking about google glass and how basically like shelving that. If they were to go get involved with the boring rudimentary things, whether its yelp which i think theyre really threatening yelp or what theyre doing, they could make a lot of money but its almost as if its too prosaic for them. Lets put men on mars. Sure. And yet they have to get rid of the musk orientation there because what happened is the world is their oyster developing a tv network and travel. Focus on reviews. They can do it. I think that yes, i think its everything defensively against google and does not take the bait. Google has to start getting their hands dirty and coming in to Industries Like this. They just seem to trick theal go rhythm like ebay. Stop it and go against people. Google has to stay more focused. You mentioned trip and opens up 14 . A miss on the bottom line and revenue was ahead. Pretty good quarter. Stocks going. It was down badly and people realize, you know what . Lets give them the benefit of the doubt. Last night a lot of situations where the initial reaction for the stock was wrong. We have been having this for a couple of days now. Henry shine and you introduced me to the other day. Stock opened down 4. 5 . Finished up a dollar. First impressions leading to wrong impressions. Potentially bad quarters i did want to share it now. Kellogg lowering to i think 1 to 3 . Seen 3 to 4 . That stock is looking down. Im going to cut in here. Why dont they go after kellogg or a dupont or a general motors. Go after kellogg. I know the answer. Oh really . Whats the answer . How do you what is a company that is too weak for investors to want to actually go after because the downside is strong . Is large. Exactly. Right now about studpid companies for 200 . A lack of activist presence. Its a loser. The company that is will require a lot more than just simply saying buy back stocks. By the way, north american Morning Foods down almost 8. Contrast it with whole foods last night. A thing of beauty and recognize people dont want kellogg. Its tough. You should have bought white wave and its going to be down and it was an investment year and didnt tell us ahead of time. Well count down to the opening bell. Busy morning as you can explainly see. Havent really gotten to greece or ukraine which is also in the news. More from the nyse in a moment. No. You . No. Aflac what are you guys looking for . Claims legend has it these hills are full of em. It can take months for an Insurance Claim to surface. Claimin takes patience. Aflac paid my claim in one day. They got some newfangled kinda one day payin machine . Hehehehe yea, i got aflac at work. Aflac. In just one day, we approve and pay. One day pay, only from aflac. Aflac. Daughter do you and mom still have money with that broker . Dad yeah, 20 something years now. Thinking about what you want to do with your money . Daughter looking at options. What do you guys pay in fees . Dad i dont know exactly. Daughter if youre not happy do they have to pay you back . Dad it doesnt really work that way. Daughter you sure . Vo are you asking enough questions about the way your wealth is managed . Wealth management at charles schwab. Its thursday. You know . The days do go by. This one, doing these Conference Calls in the middle of the night, the whole foods Conference Call was one to get to. Why . Because this is the call this was the valley where they realized not enough to just offer good food. They need technology instacard, remodel the stores. Theyre vanquishing the competition in the category and dont worry about the krogers and tar gets. They offer a fantastic technological experience. Theyre the Largest Apple pay customer. Are they really . Yes. Did not know that. Largest apple pay customer. Out of nowhere. The Technology Leader and starting to rule i think they have an infinity program. Their national ad program is working. Cut the price at all . Reasonably priced. Remember, theyre showing you why theyre now paying more which is that their stuff is sourced responsibly. People like that. If youre in a jam for valentines day, they have an offer to get to the chocolate and flowers in an hour basically. Listen. When walter came on you gave him a hard time. I give him credit for willingness to come on with us. Hes such a gent. I mean we went back and forth. Were all humans. Listen. Well do better. Well, they far exceeded what i thought they could do and its very early. Vanquish fairway and still around. We love to go to fairway and fresh market even sprouts i think is not sprouting like it was. I love to go to fairway. I hate going to fairway. But thats why i dont. Fireeye. Yeah. All right. Every single one it was really fun. The Conference Call is like every time you read that theres a breach someone says call fireeye in the Conference Call it was just like a great it ration of why. Once you call them in for forensics, then they get the back end and a software is a Service Model and people are confused losing money. This is a fabulous quarter for fireeye. Im critical of them but i recognize they have a superior product. Come back and say cisco has the soup to nuts an