Appropriate. Liz freddie mac, at second largest quarterly profit in the companys history. Happens to be the 7th straight quarter of profits for the mortgage giant. David yahoo will change its logo. Each day over the next four weeks they will showcase 30 different logos on the homepage. On september 4th. One will replace yahoos current logo. I like the current one. Leave it. Disney warns it will book a large loss on the big budget bust, the lone ranger. They expect to lose 160 to 190 million on the film in the current quarter. David we saw that coming. President obama canceled his bilateral meeting with russian president Vladmir Putin following russias decision to grant asylum to edward snowden. The meeting was scheduled in moscow next month a lot of earnings straight made. After the bell starts right now. 6. David we are going right to Dennis Kneale who gives us Green Mountain reports, another company reporting earnings today. Whats the news, dennis. Good news bad news on Green Mountain. Beat on earnings per share. They come in at 82 cents instead of 77 cents wall street was looking for. Topline growth is an earnings miss. It misses wall street estimates. Wall street wanted 981. 1 million in revenue. It got only 967. 2 million. Thats growth of only 12 or so for a pretty highflyer. David the interesting thing though, coffee prices come down. That is clearly why theyre getting earnings theyre getting on the bottom line but the top line is bothersome, dennis. A lot of people going to their competitors i guess . Earnings per share last year were 52 cents. Really nice when you bring in earnings per share 82 cents versus year ago quarter. That is better than 50 growth in eps. Liz lets bring in todd horowitz. Im looking for some of these hits. As we look at wires all of the news here, a beat on the bottom line. A miss slightly, not slightly. Enough on the top. Look at the stock, todd. It is trading higher in the aftermarket session. Hi liz, hi, david. It is trading higher but were at the upper end of the range. Weve been in a range from about 70 to 80 over last three months earnings. This will probably hold up in this area here. The top line miss is probably going to come back to weigh on them even though earnings were much better. I look for the stock to sell off from here. Look in the range of 70 to 80. Liz q4 nongaap outlook for 2013. 69 cents a share to about 74 cents a share. That is excluding items. Dennis, are you there looking that. Im sorry. Checking out on groupon. Five cents in earnings per share which is huge beat over wall street expectations. What did you ask for . Something else i imagine . Liz lets get to groupon. That is more important. Groupon, guys, i dont have the numbers. Liz hold on the stock is moving just slightly higher in the aftermarket session. They are reaffirming fullyear 2013 gaap operating income. They say it will exceed 100 million. No, thats a slight miss. 608. 7. 608. 7 is slight miss on revenue. What is earnings per share, charlie. David later revenue, thats why liz is right a little beating. Bottom line, i want to go back to todd, the question of whether the consumers are out there purchasing, again, the question of revenue as we look at the stock move upwards afterhours. Is that a concern . It certainly was for Green Mountain. I think thats a big concern. Think, you know, we keep hearing how growth is so good but seeing almost everybody missing on the top line so with are is the growth . I dont see the growth here. Think this is a problem. Groupon is getting more hits, giving a deal a day it is a discount. Trouble, top line, we keep missing it. Where is the growth . Liz lets bring in joe keating. Joe, where is the growth . You can spread out to the rest of the companies here in the s p 500, a lost them are beating on the revenue level. A few, liz, but Revenue Growth is really challenged across the s p 500. If you take out the banks, i think Second QuarterRevenue Growth yearoveryear will be up about 1 , which isnt strong at all. So we think the economy is growing but it is growing very, very moderately. David although, todd, we get more of this taper talk coming in from fed officials. This time the cleveland fed president came in. She said, she is a nonvoting member, i should emphasize. More people in the fed talking about tapering back. Are you planning for that to happen soon, maybe even september . I dont think, i dont really think they will be able to taper. I think they crossed over the line and david whoa, wait a minute. Hold on. I dont want to bury that lead. You dont think they will ever going to taper . There has to be some time they have to stop printing money to buy these bond, right. Of course. I think theyre in trouble right now. I dont think they can taper as fast as they want. I think the market has overtaken them. You can see Interest Rates are going up without them. They will have Interest Payments to meet here and it will be a little bit of a problem. I think they have crossed over to the other side and a taper could be problem as early as they want. I dont think it will be time until probably the indof the year before they can even think about being able to taper. David wow. Liz joe, what does our investor audience do when these questions are still rearing their heads . Are you heavy into stocks . Where is the money . Show it to us. Were dividend investors. We think dividend vesting invest something place to be. Consistently best place to build well over time. Liz hold on a second. Denise kneel has the groupon numbers. Groupon stock up 10 afterhours on kind of mixed results. Earnings per share coming 2 cents a share. That is what wall street wanted. That is down 75 from the year ago quarter. Wall street doesnt care. Matter of expectations. Revenue coming in at 608. 7 million. Now thats down from the original expectation of 609. It got revised down at the very last minute. Frankly when youre a fastgrowing company that hes online you ought to do a lot better than 7 Revenue Growth. The company will repurchase up to 300 million in stock over the next 24 months. Thats a rather tepid number i got to tell you. Seems a little timid. If you believe your stock is way too low, start levering up that or declare intent. David boy, dennis you have high standards, man market afterhours is saying youre wrong. This is a big buy because of that last quarter revenue was up 7 1 2 . That was a big, a lot more than what was estimated and the stock did well then but, so you dont think, dennis these numbers are going to stick tomorrow . The market is here to make me look foolish. The market is always right and im always wrong if i disagree with the market. For a company supposed to be revolutionizing online and changing entire future of groupon i have to say im a little underwhelmed. I dont know. Liz listen, we have joe keating here who invest this is things like dow chemical and railroads, norfolk southern. Lets talk about that, joe. Why do you like dow . We Like Companies like dow, norfolk southern, wells fargo because these are companies not only have a decent dividend, around three to 3 1 2 but theyre growing their dividend over time. Each one these companies should be growing their dividend in the 40 to 50 range over the next four years. So we think that is a really good place for investors to be. Lets go for Dividend Growth instead of just dividend yield. Liz good point. David youre also big on wells fargo. Right . Wells fargo is interesting. Theyre fourth largest bank by size and largest on capitalization on return on equity in the industry and a play on housing industry. David are you concerned, a lot of people said the spurt in growth on housing in winter and spring is coming down now and with Interest Rates going up it may come down even further. No doubt about that. I think the horizon Mortgage Rates is a headwind for the housing industry but on yearoveryear basis well still be in pretty good shape of the what well do during 2013, versus 2012. Liz nor foiling southern, the choochoos, is it obvious, simply energy play theyre shipping and bouncing off the back of the Strong Economy here . They are the largest shipper of coal in the united states, we understand that. Theyre largest shipper of automotive products. Theyre liz speak of which, you said automotive products, tesla is now out. Dennis kneale, the stock is jumping afterhours. Tesla is electrifying. The stock is up with 8 already. Instead of coming in earnings per share loss of 17 cents, comes in with a profit of the 20 cents before extraordinary items. We have to figure out what those are. Meanwhile a huge top line beat which wall street loves especially lately with the companies missing top line. Comes in over half a billion. 551 million in revenue instead of a 383 million that wall street was expecting. Company year ago, hardly shipping cars. They had some new cars come online, man the demand for those babies is going like gangbusters. David we have an analyst coming up who has a price target on the stock of 110. He is coming down from where it closed by 20. Were seeing a jump afterhours by more than 10 buck as share. This is a big, big move. Let me go back to our cm etrader, todd. Did you expect this from tesla . You know i did. I mean the stock has held up well. Listen were back in the 90s with the internet era the way the stock is trading. The certainly stock acted well and held every level on the way down. Held 130 as it came down there but trading in 140s. You cant fight it. Big short interest. They beat like crazy and theyre going up. Who can fight it . Liz their auto production rate going from 400 to 500 automobiles churned out a week up in fremont, california. They are cooking on all cylinders. David if theyre making money. The question is where the money comes from. Thats critical. If theyre making money from carbon credits from caliiornia, thats a problem. If money is coming from profit of stream from the cars that is another thing. Well piece through the numbers to find out where the revenue is coming from. Liz joe keating thank yoo very much. Todd, well check back in with you in a few minutes to see how the s p futures close. David as we reported tesla reported a big beat. The stock is up bigtime afterhours, close to 134. We have the numbers with an inside look. An analyst is coming up straight ahead. Liz plus the newspaper world is in the spotlight as jeff bezos buys the Washington Post for a hefty sum, using his own money. Hes a believer. What other billionaires are lurking around the newspaper stand and what are they targeting . Were naming names ahead. We would love to hear from you, carl icahn, investor and activist joining us on yesterdays show made his case for why he thinks michael dell is bad for the company and should go as the ceo. Out. We want to know if you think carl icahn is good or bad for dell and his activism. Log on to facebook. Com afterthebell. Well read your answers later this hour. [ male announcer] surprise youre having tripts. [ babies crying ] surprise your house was built on an ancient burial ground. [ ghosts moaning ] surprise your car needs a new transmission. [ coyote howls ] how about no more surprises . Now you can get all the online Trading Tools you need without any surprise fees. Its not rocket science. Its just common sense. From td ameritrade. David okay, we just got the numbers for tesla. They ever a big beat. The stock is up almost 10 afterhours. Adam shapiro has been looking at the numbers. Adam . Thats right, david. This is important they delivered 5150 cars in the last quarter. That is a beat from what everyone was expecting. Looks like they might make that ver 21,000 for the year they wanted to deliver. Earnings per share came in at 20 cents. We have to find out what they were excluded. As dennis pointed out pretty big exclusions there. Revenue, 551 million. Just for the record, my brother danny, my older brother, a doctor, bought a tesla for delivery in september. I will give awe review. David how much did he pay, adam . Hes a doctor, i leave it at that a damn good one. David well over 08,000. They are a fine car. Liz wants one desperately. I love the sedan. Like sitting inside of an i phone. David as weve been reporting they had blowout earnings at tesla. They were expecting a loss, by the way, not a earnings report. They actually had a beat, a big beat. Will these numbers stick tomorrow . Liz lets bring in analyst greg irwin, wedbush securities. Youre not exactly a believer. Craig, you have a price target of 110. The stock is proving you wrong. As you pick through the numbers why do you think there is so much positive feeling about the stock right now . Youre absolutely right i am a skeptic. When i initiated coverage with 110 target, that was actually the second highest target on the street. Liz okay. Clearly tesla is a company that executes. The fact at that theyre making, theyre delivering 5150 vehicle this is quarter, producing Something Like 6500 vehicles in the quarter, theyre executing, theyre doing amazingly well. This is clearly coming to the bottom line for them. We do need to back out some of the onetime items, specifically there was a 13cent gain from the d. O. E. Loan repayment. But that again, i mean, repaying the loan several years early, is always a very positive thing. Yeah, no, there is nothing negative we can see in the report here. Tesla is showing that they can make money. They can have solid margins and thats what investors want. David well, craig, can they make money without those, i dont know if they call them carbon credits, you know the credits they get for selling pollution control to other Car Companies . If exing that aside, are they still making money just selling cars . You know i still have to go through the numbers with a finetooth comb. I like to ache my time and do it carefully. But my instincts are yes, they are likely there already. Liz craig, hold on because we do see since consensus estimates reflect nongaap results theyre coming out with another q2, nongaap number, of dennis happens. Exactly. I dont know if you can hear me, five cents a share, not the 20 cents a share. That is still a huge beat. Wall street was looking for 11cent loss. It happens to be 5 cents, not 20 cents. I remember how much stock rise after hours is short squeeze. Three cautionary headlines come out. There remains uncertainty in our ability to increase production as rapidly as we would like. There are still bottlenecks in our supply chain that need to be resolved. The company is holding on to its forecast of 21,000 cars shipped this year. Yet if youre upso much and surprising so much, why arent you lifting your overall number on the 21,000 . They havent done that. David craig, it is not affecting the stock price afterhours. It is up a tick more. Do those revisions affect your judgment a all . I would expect there are a number of onetime items in the p l this quarter the way they were last quarter. The bottom line is can they get to the 25 gross margin last year excluding credits and my first take it looks like this quarter is an indication they clearly can. That is something we had not expected liz craig, you have a hold on it. The reason i had a hold is that im a skeptic about the sales volumes, the typical car out there has a twoyear showroom life. And its a little bit of leap of faith to assume that everybody is going to want to buy electric vehicles. Tesla is a Great Company but now weve got to see the mainstream buyers step up and buy a very expensive car. David well, theyre not appealing to the mainstream yet, craig. I mean they say that down the line they are going to be doing that. When youre selling a car, the cheapest car available now from them is about 80,000 or more, right . Yeah, thats about right. You know, its clearly a Solid Company that is executing well. Everybody had asked us can they launch the gen3 pour 35 to 40,000 they have been saying . Weve been saying emphatically yes. Were skeptics of sales volume, to see the sales volume sales they have to sell the vehicles to much more mainstream buyers. Those arent cheap. Liz what were showing right now inside their fremont facility. They had taken this over from one. Japanese carmakers. Fox business got an exclusive look inside that facility. We spoke with elon musk. I absolutely was a believer. He was willing, these numbers to happen. And he also told me, exclusively, that he said, liz, our wait lists are very long. We build for the list. We dont build more. So the twoyear, and again they dont really have dealerships. They dont really say, they do have the showrooms as you say, but when you say two years, what are you basing that on . So the typical automotive model life, when you put a fresh model in the showroom, after two years it starts to see decay in demand from the market. This would be all the way from premium luxury sedans on down to sort of more affordable mainstream vehicles. Thats really what im talking about. Clearly there is a lot of penaltyup demand. The country generated very significant presales prior to launching the model s. Theyre clearly continuing to book a large number of sales in every quarter. The question is whether or not there will be acceleration of that sales rate or a declay as is normal for the automotive industry. David craig, by the way it is 152 right now, afterhours. That is 20 bucks more than it was. Does that price stick, quickly . You know i think it all, well its going to come down where the fine details are. I expect the Conference Call to be very important for the trajectory out of the call. My instincts are that this is, you know, pretty fully valuing the companys commercial success. David got to leave it at that. Craig irwin, wedbush securities. Thank you very much. Appreciate it. Liz thank you. The media landscape changing very fast from Cable Television to newspapers especially after jeff bezoss purchase of the Washington Post. Where are we likely to see the next big deals and which companies are on the hunt . We spin it forward. David talking of change. Breaking news on groupon and its ceo. They dont really have one. Were all over the online coupon companys new Management Team and its results when we come back. Clients are always learning more to make their money do more. ann to help me plan my next move, i take scottrades free, inbranch seminars. Plus, their