tv After the Bell FOX Business June 11, 2015 4:00pm-5:01pm EDT
certainly not a pullback from the gains we had yesterday, but not what it was earlier, melissa. melissa: yeah, absolutely. so there you go, those are the closing bells. and while the markets wait for tomorrow, here's everything you need to know now. david: new details in the manhunt of two escaped murderers, the search entering the sixth day with more than 500 law enforcement officials scouring new york, vermont, even canada. we have david lee miller following the story from west platts burg, new york, with the very latest. you're at a roadblock, been a lot of activity there. what's going on? >> reporter: you know, david, this is day six of this manhunt, and i'd say by far this is the most intense search that we've seen taking place yet. the search at this location began at about 7:00 last night. it's zeroing in on a five-square-mile area just down the road on the outshirts of the prison. a law enforcement source tells us that they were brought here because sniffer dogs picked up a
scent. the state police spokeswoman, though, will not confirm the specifics of the lead, but she does say that the searchers are not going to live this area until -- leave this area until they are certain the inmates are not within this perimeter. listen. >> at this time we are remaining in the area until we have conducted a thorough search. we're looking underneath every rock, behind every tree and inside every structure until we catch these two. >> reporter: law enforcement says, david, the situation here can change, quoting now, in an instant, but just in case it does not, minutes ago i saw department of transportation trucks travel down this road, pass the roadblock carrying industrial lighting prepared for what could be a very long night. david? david: two very nasty killers. i imagine the people around there are just nervous as they never have been before. how are they holding up? >> that's right. we've been reporting the past
several days people are fearful, some are carrying guns. but while there is fear, people are also thankful. they're thankful that there is a strong law enforcement presence here, a highly visible presence. last night underscoring that. authorities actually made robocalls to people who live within the perimeter that is being searched and, again, they reiterated people who live here have to take precautions. listen. >> everybody needs to remain vigilant until we can confirm whether or not these guys are here or whether they've left the area. we are strongly asking all of the public to remain vigilant, report anything suspicious, anything with regard to vehicle larcenies, burglaries, trespass, any sign of any of that, we need to know about it. >> reporter: and as you have observed, david, this is a rural, heavily wooded area. that makes the search difficult, and complicating that is the fact there are a lot of seasonal vacation homes here. they're not occupied, at least
right now, but they still have to be searched. david? david: david lee miller, thank you very much. melissa: police close several miles of route 347 east of the village of dannemora looking for these two. bloodhounds have picked up the scent of what authorities suspect came from the two men a few miles from the correctional facility. joining me with more, rod wheeler, former washington, d.c. homicide detective. he is also a fox news contributor. what is your bet on this? i mean, do you think they're still in the area? >> you know, melissa, that's an excellent question. good evening to you, first of all. the bloodhounds, they do an excellent job. i've used those types of sniffer dogs, is what we like to call them, before when i've tracked down suspects the same way, and i'll tell you, the rate in which they are, you know, they're pretty accurate is pretty good. i will say that based on that and not just that alone, there's also new information that there was a camp site, like a makeshift camp site that the police found not far from this
area that they're searching now that they believe these two individuals could have set up. so it's those two things combined that has led law enforcement to set up somewhat of a dragnet in that fire five-mile area. melissa: logically, though, it doesn't make a lot of sense. it's near the canadian border. it seems like they would try and get as far away as they possibly could as quickly as possible and not stay in the area. >> you know, you're right, but i will tell you this, and i'm not sure if the viewers know this, but their initial plan, melissa, was to have this woman, i think her name was jessica lynch or melissa lynch, she worked at the prison, and the prison investigators are talking to her because they believe this woman had something to do with these two individuals escaping. according to her and the prison officials, this woman was supposed to have driven these two inmates away from the area, but you know what? she changed her mind. she got cold feet at the last minute. so as a result, these two individuals had to come up with a plan b, and their plan b was probably to just go up in the
terrain there, try to head towards vermont, and i think that's why the investigators have that care cordoned off right now. melissa: i think a lot of people the longer they're on the loose, the less chance the authorities have of finding them. is that a fair assumption or no? >> no, i would say not. one thing i can tell you from having dealt many, many years with individuals like these two, they are very dangerous, but they're also very desperate. they don't have any money, they probably don't have any food, so right now that entire area up there is on lockdown because these two individuals, they don't want to go back to prison, melissa. they're going to do anything and everything they can to stay out even if it means harming people in the area, and that's why law enforcement really, really wants to nab these two guys as soon as possible. melissa: what do you think law enforcement is doing next? >> right now they have a number of dogs, sniffer dogs in that area. they're also using sonar equipment. this is high technology that we use to try to track individuals, warm bodies moving in a certain terrain area. so they're doing that. they have over 500 sworn law
enforcement officers up there, and they're all checking behind every tree, under every rock until they find these two guys. melissa, it's not a question of if, it's a question of when these two individuals will be caught. melissa: why are you so confident of that? i don't understand why you're so confident authorities are going to get them. it seems like to the layman out there it's a needle in a haystack. >> can yeah. you know what? let me just tell ya, and i've worked many, many years with the u.s. marshals' service, and these individuals that work for that service, they're excellent. they always, we always in law enforcement, we get our man. we may not get them as soon as we would like to get them, but eventually they get caught. they can run, but they can't hide. so i'm very confident that either tonight or tomorrow these two individuals will be back behind bars where they deserve to be. melissa: boy, rod wheeler, i certainly hope you're right. thank you so much for coming on, we appreciate it. david: well, from excellent public servants to not so excellent public servants. the first comments from the head of the irs after a massive data
breach affecting 100,000 taxpayers. peter barnes is following that story. >> reporter: hey, dave. the irs, state tax officials and industry officials announced a number of new steps to prevent identity theft and refund fraud that they say they plan to put in place in coming months to protect taxpayers. they include better ways to identify and authenticate taxpayers and their returns, they also plan more reporting of suspicious cyber activity and will forward leads to government agencies, though officials say it will not include, those leads will not include personally-identifiable information about individual taxpayers. and they plan to establish a new cyber information-sharing and analysis center. >> the critical thing for taxpayers to know is that new protections will be in place by the time they have to file their taxes in 2016. each of us will be making substantive changes through the summer and the fall to be ready for the next tax season.
>> reporter: the irs commissioner also called on congress for help. among other things, the administration is asking congress for more money for the irs to improve its computer security and beef up identity theft and refund fraud prevention, about $300 million more for programs and new technology. dave? david: by the way, peter, we are just getting breaking news that hackers have personnel data on every federal employee. this is according to a federal union. so it's late-breaking news, i don't know if you have information on that, but that would be a scary, scary development in this hacking case. >> reporter: yeah. that's the one on office of personnel management and what we learned was four million, information on four million current and former federal employees, hackers getting that information. and now a union of federal workers is saying it's a much bigger problem. david: talk about throwing a wide net, that's just what those hackers did. thank you very much, peter barnes, from d.c. meanwhile, this fox business
alert. melissa: rupert murdoch, the chairman ask ceo of fox business is preparing to pass the reins to his sons. >> hey, melissa. sources close to the situation tell individuals here at fox business ceo rupert murdoch is expected to hand his ceo role to his son, james murdoch. rupert would then become the executive chairman. according to those sources, his older son is expected to be named executive co-chair. now, chase kerry, the current chief operating officer, is likely to step into a new advisory role in the near future. no timeline has been shared for this transition just yet, but a spokesperson says the matter of succession itself is on the agenda at their upcoming regularly-scheduled board meeting. this succession plan, of course, began unfolding last year when james murdoch was brought on as co-coo and lack land as nonexecutive chairman.
fox business and fox news are, of course, owned by 21st century fox, and the networks' chairman and ceo, roger ailes, says he expects to continue reporting directly to rupert murdoch. we're watching that investor reaction. shares sank a little bit, about 1% on the news, and they closed just down a little bit. guys? melissa: all right, jo. we're hearing some breaking news right now, too, that i wanted to ask you about. dick costolo, the ceo of twitter, stepping down effective july 1st. can you tell us anything about that story? >> yes. we are getting news from dow jones right now that dick costolo will be stepping down on july 1st. we are reaching out to twitter right now on this. there has been investor concern about the volatility of the stock since it went public. not too long ago. and you can see twitter stock is reacting on this news right now. there has been a lot of volatility inside the c suite at twitter as we reported on over
the past year or so. there also have been calls for twitter to be acquired, to be sold to a larger company, perhaps a type like google -- melissa: jo? >> we're dilling into this right now -- digging into this right now. melissa: we're hearing jack dorsey would be the interim ceo. does that make sense to you? >> you know, i don't have that information right now, but he's certainly a very vocal person involved, he was one of the co-founders, of course, and he's been very vocal about twitter and its future. of course, another original is chris saca, he's also plushed on mediums -- published on mediums saying things could -- need to be changed at twitter right now. so we're watching the stock right now, melissa, for you. melissa: absolutely. jo, thank you so much. david? david: as we can see, the stock is popping after hours by a healthy percentage there. meanwhile, stocks in general managing to end the day in the green, extending yesterday's gains despite troubling headlines out of europe. the imf apparently walking away
from bailout talks from greece citing, quote, major differences. wilbur ross has made a career on a contrarian bet, or a bunch of them. he's sinking $1.5 billion into greece's third largest bank. he joins me now. wilbur, i'm wondering if you have any buyer's remorse at this point. [laughter] >> well, first of all, the whole 1.5 is not ours. we're a relatively small player in it. but the group in which we're participating does have a billion five. so that moderates it, a little bit, my concern. as to the imf's moves today, i think these fellas have all been in a kind of game theory mode. but i believe this is going to turn out to be more kabooky theater than a greek tragedy. david: you know, i'm looking at the two-year yield, the yield on a two-year greek bond, do you know what that happens to be? >> i'm sure it's quite high.
david: 24.7% on a two-year bond. >> right. david: in order to pay that off, you have to assume that somehow, some way the greek economy could grow 24% in the next two years -- >> whoa, whoa, whoa, whoa, whoa. the coupon is not 24. the reason that it's trading on a 24% yield is the bonds are trading at a big discount from par. david: true. >> they're not paying any 4 coupon. the fact is -- 24 coupon. the fact is that the aggregate rate on all of their debt, most of which is official debt, is something like 2.5%. david: but how are they ever going to pay back all of the money they owe not only to the imf and the other intermediary lenders, but to the primary lenders when the economy's not growing? >> well, that's the real dilemma. they have to get the economy growing. and right now the problem is there's no liquidity in the greek economy. the flipside of these increasing amounts of ela borrowings from
the european central bank, flip side of that which is now well over 80 billion euros has been deposit withdrawal. so the first problem they're going to have to solve is get enough liquidity to get rid of all these ela debts before they can really start relenting in a meaningful way. david: wilbur, you have to prepare for any eventuality if you're an investor. what happens if greece defaults? particularly, what happens to the u.s. market? >> well, putting it in perspective, greece is about 2% of the european union economy. and its total imports from the rest of the e.u. are only about 50 billion euros. so as a singular economic event, not much is going to happen to the european economy and even less to the u.s. economy. i think the more interesting question is how will the public
react in the various countries that would under those circumstances be stuck with loans that are in default. how will the imf react, how will those other countries react. imf rarely has defaults. i think tanzania's the last place i can recall that defaulted. david: yeah. >> so this is a new event. david: hey, wilbur, i hate to cut you off in mid sentence, but we have so much breaking news, i'm going to have to do that, forgive me. wilbur ross, great to see you. thank you so much. >> good to talk with you. melissa: coming up, it has been one year since isis caught the world's attention when they took the key city of mosul in iraq. now their reach has spread to america. david: also rand paul sounding off on iraq, isis and the nsa. fox business' own kennedy here to break it all down. melissa: plus, more on the breaking news, dick costolo out at twitter. don't go anywhere. this allergy season,
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david: big change up at twitter where the ceo is stepping down. the stock after hours is looking pretty good can. jo ling kent, it's up almost 8%, jo ling, as a result of this news. >> dave, this is probably what a lot of investors were looking for after so much on again/off again discussion about what the future of twitter should look like, what we do know now is dick costolo, the current ceo, will step down effective july 1st. he will stay on the board of directors. the cofounder, jack dorsey, will return as interim ceo. now, twitter's board has formed a search committee to look for a permanent ceo. so it looks like jack dorsey will not necessarily be that person. it includes a lead independent director, peter curry, plus peter fenton and evan williams, another co-founder. this is a big change for twitter, obviously, but there is a lot of back and forth. we do know dick costolo, at
least seemingly, has a good relationship with jack dorsey. he tweeted his congratulations to him and ironically, guys, tying to a different story sources are telling rupert murdoch will be handing over his position to his son, and about three hours ago dick costolo tweeted his congratulations to murdoch. melissa: charlie gasparino is standing by on this story. charlie, there's a couple interesting moving parts here. number one, cost low under fire for a long time because twitter, public company, not hitting the targets for profitability, and it looks like the user base is stalled. you're a big twitter guy yourself. >> yes, i knew you'd bring that up. it's one thing for shmucks like me to use twitter, it's another thing for a company to make money and meet its targets. this was telegraphed, i would say, for months and not just was they weren't -- not just because they weren't making their targets. it was pretty clear that
mr. costolo was essentially getting pushed out by the investor class at least for the last four or five months when they missed those targets. here's the thing, remember when facebook had that rough beginning as a public company? guess what happened, sandberg came in, you had adults in the room, and she did right that ship. there was none of that change here at twitter, and you can just see the slow burn coming for months. and i will say this, we have to, you know, mr. dorsey's one of the company founders, as you know, he's the chairman of the company. he was the chairman of the company, very close to jamie dimon, okay? i think what you have to ask yourself right now, what would the jpmorgan chase ceo be telling mr. dorsey right now? i think this is what he would be telling him, we need adults in the room, you need to hire a sheryl sandberg type to come in and right the ship. and if this business model doesn't work, you need to sell it. create a destruction.
it's happened all the way back since netscape. melissa: yeah. >> twitter may be better as part of something else, but this was a long time coming. everybody saw it. it was a slow burn, and it's a much-needed change. melissa: i'm sorry, i couldn't understand -- >> including fox business a while back, keeping us out of his ipo coverage. melissa: another complicating factor though, jack dorsey is currently the ceo of square, that little payment system that goes into your iphone or -- >> right. it's not a conflict. melissa: you think he can do both jobs at once? >> yeah, you know, it's like -- yes, yes. i think, and he's going to be interim. like i said, the call now should be in to jamie, jamie dimon. because i know jack dorsey and her very close. what are you recommending to jack dorsey to do to take this company forward, to get adults in the room, and what do you see as the future. my guess is jamie's saying get a sheryl sandberg in there right now. she's very good, she's very operational, and she did a great
job at facebook. assess your business going forward, and you need to sell. is this a netscape? is twitter netscape or is it google? i don't know. i mean, i like using it, but i don't know -- i'm not an expert. melissa: let's explore that for a second because facebook was able to expand into mobile users. that was the real challenge, and they did that successfully, and people said they were dying on the vine. no. they were able to go out there and expand into mobile, and even though the younger kids aren't using facebook any longer and ask your grandmother's kind of on it, they still have to -- >> and your grandmother makes money, okay? your grandmother has money. i think that's one of the interesting things about, you know, we talk about millennials all the time. i'm getting a lot of -- melissa: uh-oh, you're going to get in trouble here. >> millennials generally don't have money, okay? the people that are on facebook do have money. facebook, basically, accumulates a lot of the information from people with a few bucks, because it's an older demographic, plus they've got the mobile app thing going. they need someone to fix their business model, and they have not done it.
mr. costolo has done the opposite, he's not moved it guard. yes, everybody uses twitter, but they haven't figured out how to monetize it, and i think that's what jamie dimon -- if he's having any contacts with mr. dorsey, and i believe he should because from what i understand, they're close as confidants -- that's what he's going to say. bring in someone to right the ship. you right the ship first and figure out what to do next. that next thing may be your stand-alone company, we're going to execute this plan, or it may be, you know, we see the writing on law. you're going to have to sell to someone else and be part of the creative destruction that is the internet. melissa: well, i mean, they have a lot of embedded users, a lot of people like yourself who are very committed to using the platform. at the same time, you see study after study talking about the number of people that either aren't real, are bots of some type or who have opened accounts and aren't actively using them. they are at a turning point. >> the problem is i use it -- melissa: and abuse it. >> -- but it's a very cursory relationship. it's not a -- you know, when you
have a relationship with facebook, when you're on facebook, it's a much more interactive. you're on there more. this is me tweeting, tweeting to that guy, arguing with that guy, you know? melissa: yeah, okay. >> am i on there looking at the ads? is it a platform where you can download ads -- melissa: no, but they're trying to -- right, i'm going to ask you to stand by, because we're going to go to jo, but it is the platform where they're experimenting with using buy buttons and trying to find ways to -- >> okay. david: hold on to that answer because we're getting jo ling kent to give us some more breaking information on this story. as you can see, twitter's stock is popping after hours, looks like it's moving towards a 10% rise. jo, what's the latest? >> we're looking at what the company's outlook is now, looking ahead especially with such a massive change at the top of the company, right? and in the announcement they're trying to give some confidence to investors out there who may be looking at a nice pop here. the company reaffirmed its second quarter outlook saying it
expects revenue of $470 million to $485 million and earnings of around $97 million to $102 million. so they're keeping the ship relatively steady as they bring in jack dorsey as that ceo on an interim basis. but you're right, you know, there's a lot of concern here about monthly active users, how many people are actually using it actively. 302 million monthly active users who sign in. that has only grown about less than 20%, 18%. and if you compare the overall user base, it's about one-fifth of the size of facebook which, of course, it's not intended to be a facebook, but looking at future growth and what it means for investors who are buying or selling this stock right now, certainly, it's part of the calculation. david david and, jo -- hold on a second. jo, it's not only the number of users and the number of hits that it gets, but it's the amount of time that you spend on this thing. i mean, facebook you spend a lot of time, you search through a lot of different things. twitter just has a couple of
things that you gone on to look at, so you may get in there quickly, but you could come out just as quickly. >> sure. it really depends on your position on the stock and the company. some analysts say, look, twitter is actually a place or a foundation where you could build a lot more similar to what facebook did in its early years. but others say the social media landscape is very saturated, right now twitter is behind. they've never been able to generate the money to generate confidence in their investors. but certainly, the board has a lot of work to do as they look at who that next ceo could be. maybe it will be jack dorsey, but maybe not. david: go ahead, charlie. >> we're beating around the bush here. the market thought costolo was incompetent. that's it. we don't know if they're going to sell it. we don't know what they're going to do it. they don't have an adult in the room. why is the stock up 10%? the market, major investors believe mr. costolo was an incompetent ceo, he could not get the job done, he obviously
hasn't gotten the job done, and that's why the stock is -- melissa: charlie, got a bone to pick with this guy? >> do you think he's competent, melissa? melissa: you know, i have -- >> you're a journalist, do you think he's a competent ceo based on everything we know? >> they're reaffirming their guidance, they're saying they're going to hit their target -- >> okay. melissa: i don't know that he has the confidence of investors, but i don't know that he's incompetent. >> well, if he doesn't have the confidence of investors, let's be clear, investors don't believe he's competent to run the company. that's what we've got going here, and that's why the stock is up. the absence of selling this thing which may happen or may not happen, i think there's a possibility at some point, they're saying that current management is incompetent, they need adults in the room -- melissa: okay. >> -- and they have to get those adults in the room, and what dorsey is probably doing is talking with jamie dimon about how to get those adults in the room. melissa: let's bring in scott martin who is with us. >> hi, guys. melissa: what do you think of
the conversation so far? good? bad? you an investor? >> it's been a struggle. as a shareholder with twitter, you're not very happy with mr. costolo so far. this is a company that has a great internet reach, it has a great product, a good application, and they've been at times unable to get out of their own way. so the removal of mr. costolo is obviously good for the stock so far and probably good for the long-term health of the company. i eventually think twitter is going to be purchased, and i think with mr. costolo out of the picture, this opens it up to happening sooner than later. melissa: by what kind of company? >> i think you're looking at a google, potentially a facebook, some strategic alliance that looks to build on the already killer brand they have because that's what twitter has. it just hasn't been able to turn that into true money and, again, i think that's left up to management problems. david: i want to ask charlie about that. have you heard anything from the bankers who are interested in
twitter, particularly jamie dimon, about who it might be sold to and what role he might play in that? >> i mean, listen, think of big tech companies, new media companies that have cash. google has a lot of cash. amazon has a lot of cash -- >> apple is another one. >> excuse me, apple. you're right, apple. those are the companies that are going to branch out into content, you know? i still think that new media companies are going to buy, you know, put a bid in for time warner at some point. the content side, not the cable side. they've been snooping around. they're looking at content, and this is the type of thing that you'll see. but again, let's be clear, we don't know what's going to happen. but we do know that investors believe mr. costolo was incompetent to take the company forward. if they believed he was competent, the stock wouldn't have done what it did right now. that is the bottom line. and taking him out of the way means you will either get can better management, or better management will figure out how to sell it or -- how to save it or, essentially, to save it.
melissa: scott, there's a lot of value in the company itself. you have people on the site who can tell you sort of by aggregating the data or using an algorithm, you know what everybody's talking about. they're also looking at ways to embed buttons and to sell things directly from twitter. there's a moment in time after which something that is hot like twitter loses its value as people move on to the next thick. i mean -- the next thing. i mean, are we at that point yet with twitter? >> no, in fact, i'd argue if run correctly, twitter has more run ahead of it, it has more runway. and i think the point about products, melissa, there is very key. i mean, point of sale on twitter is something that they need to figure out how to execute. the current management has not done that, very well at least, and so that needs to be done and improved. and the content. charlie talked about content. how great is it to have a company like twitter where, guess what? you pretty much don't have to create that much content. david: right. >> the content is created for
you by the user. david: hold on, we've got a lot more to talk about, but look at this, the stock value right now tells the whole story. it is up almost 10%, at least moving in that direction. breaking news on twitter. dick costolo stepping down as ceo. investors loving the news. we get the view from the floor, we're hitting the nyse next. th: that little blue thingy. you see it? that's a sensor. using ge software, the light can react to its environment- getting brighter only when it's needed. in a night, it saves a little energy. but, in a year it saves a lot. and the other street? it's been burning energy all night. for frank. frank's a cat. now, two things that are exactly the same, have never been more different. ge software. get connected. get insights. get optimized. to breathe with copd?ow hard it can be it can feel like this. copd includes chronic bronchitis and emphysema.
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down effective july 1st. adam is on the floor of the new york stock exchange. adam, what are traders saying? they don't necessarily think there's good news. >> one i was speaking to who was invested in twitter and social security relevant said she was not happy with this news. investors seem to and i can't even disagree with her, however, because as you pointed out, aftermarket this stock is up almost 10%, and essentially cleared out. it's really setting things up for tomorrow. it's going to be very interesting to see. especially when you see the tech stocks that haven't performed quite as well, although yesterday everybody going to the a big boost and, you know, markets were up begin. but with twitter being up and the aftermarket is going to be interesting to see how they do friday. >> interesting. can towing charles payne. >> yeah. let's go to charles payne right now who actuallyons twitter stock. charles, you had a chance to sell the stock when it informants 50s, you didn't,
why did you hold onto it here. >> i bought it two dips ago, it went to 50, came down. went to 50. came down. i think it can go loo-loo higher. everyone has mentioned all the great things going on, i don't know if anyone has mentioned pair scope, but that's their next application, that's the marveling. i've been doing this a long time. 30 years. i don't care how good goode a company, did f you don't have the right management that knows how to communicate with wall street, the stock will go anywhere. >> is that why you held onto this? >> well, i think -- listen the rumor has been around for a long time that this is coming, the demand has been for a long time. he just took almost a -- at least in the public's kind of approach to the job, he didn't take -- it was just not the right fit, he did not particulate this message proper. >> one of the things you've
got to do is get the investors on your side and he could just not do that. >> did you buy the stock at the get go and have you sold any of it sense. >> i have not. i've had my subscribers in and out of it, in fact, the last time i told them to buy was thursday. and have you heard a lot of rumors? charlie was speculating there may be some companies that are cash rich, are you expecting a buyout. >> absolutely, yeah, but i should tell you that the groups back to 2011. so the idea that facebook or google would be interested is not new. however, it's attractive, it's beautiful, and with this era of cheap money, you pay nothing forward, acquiring companies always go higher, it's nuts that someone doesn't make a move on it. >> if it was a target, if somebody was going to buy it, how high would the stock price go? how much would they have to pay for it. >> better go over 50 or i'm going to feel real dumb. honestly i think it will be $60. >> what is the problem that
you want to see resolved right now? what do you want to see a new manage do. >> i want to see them articulate in wall street the way that we could see profitability. once people believe, once they buy into the story or the concept and you start to make certain benchmarks, that's when you got a stock that doesn't fall apart. a couple weeks ago, macy's laid an egg. you get the benefit of the doubt. jack we will, always got the benefit of the doubt. facebook initially didn't. they said a few things, they turned the corner, they saw that junk kind of silicon valley we don't care, i'm wearing hoodies all the time. >> right. >> got really serious of the business aspect. you know, all these companies go through this and i've seen it happen to every single one of these silicon valley that came out the gate thinking they were too cool for wall street. sooner or later you come around, and you start to -- i wouldn't say play investors, but you certainly you start to understand that they're very
important and they believe in the story. >> yeah. absolutely. all right. hang on. i want to bring you adam. he's on the phone. also a fox news contributor. what is the main that thing nick did not touch on. >> well, there's two things. building this product into something that people want to use and secondly that's totally related is growth. the companies has been growing its users, it grew very quickly and then it stalled out. it hasn't become a mainstream product that facebook, for example, is. >> so what do you think a new ceo could do to make that happen? >> this is all about product development. so, you know, i certainly don't have the answers, but i use it. >> right. >> but i certainly don't -- i certainly don't live to use twitter. so a new ceo is essentially the product chief would be focused around ways to get
ordinary people using it regularly to make it more relevant to them. we should point out, one of the things i want to correct that charles said. this is actually a company with tremendous value. it will do something, like, $100 million in, you know, cash flow this quarter. i mean that's a big success. it's worth $24 billion. so it has problems, but it's not like it's a failing company. >> and what is its most popular part right now? where the is main revenue stream coming from. >> it has gotten a good job of selling little teeny tiny adds in those tiny messages in the same way google did very well in its first days selling tiny text adds on their text search results. so twitter does that actually quite well. >> they've tried -- i mean its developed into this model where it's a pr blasting machine, whether you're a personality or a company where you take a look at send out your message and other people follow it and they've experienced a lot with trying
to get companies -- you follow subway because you're going to get a coupon in your feed, it's going to tell you where to go and what to get. is that something you think they can build on going forward more or do they really have to reimagine how to get the regular person more engaged. >> i think they need to reimagine. what you described is a powerful tool, and it's one that i enjoy quite a lot. the problem is it's a niche tool, you know, some people do it, some people like it. this has been a powerful experience in the world of politics, for example, globally; right? so revolutions have happened on twitter. but this is a relatively small group of people coining don't think the tweeting in a slightly larger but relatively small group of people doing the reading or the looking. it is nothing like television was and is for decades and nothing like what facebook is -- >> but the problem with that -- and we want to give you this update, they're
saying they're going to have a press conference at 5:15 today live, that's just about 30 minutes from now and we're going to carry it live here, bring it to you just as soon as it happens, so you'll want to hear from that and hear directly from the company. but, adam, the object is to hold onto those millennials. you know, charlie says they don't have any money to spend, but people in advertising, the millennials are where the younger folks don't have their taste set yet. >> yeah. >> so they're the ones that want to pay to influence so that they can have customers for a lifetime. but that's the same group that especially technology doesn't stick with the product. >> yeah. >> for a long time. i mean the snapchat and they're onto the next thing. female aren't facebook anymore. they've moved onto the next thing. so how does twitter survive and keep the young folks in this type of environment. >> you know, my hunch is that enough young people are, in fact, on facebook and that may be because they're looking at their family stuff or maybe
some work stuff or organization that they're involved with even if it's not their number one thing. >> adam, we're going to layoff leave that, we're going to take a break -- >> nobody move. >> valuations is a big one here, chillies, we're going to let that happen. stay stay tuned. more on twitter coming right up it's where great ideas and vital data are stored. with centurylink you get advanced technology solutions from a trusted it partner. including cloud and hosting services - all backed by an industry leading broadband network and people committed to helping you grow your business. you get a company that's more than just the sum of it's parts. centurylink. your link to what's next. "what is it that we can do that is impactful?" what the cloud enables is computing to empower cancer researchers.
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>> all right. big news shaked the market, twitter ceo stepping down, this is effective on july 1st. again, the stock is popping after hours, melissa, it's up about 8% now. no telling how high it could go, right now it's trading after hours at 37.8. so come down a little bit. >> yeah. and we want to make sure that you know that there is a news conference coming up at 5:15 where they're is going to give some more information on that and in the meantime jack dorsey, one of the other founders is going to step in as the interim ceo, he's currently the ceo of square,
so he's going to be in this position for a while, we heard as well from charlie earlier on this talking about maybe does this lead to potential sell of the company, investors look pretty excited as we're seeing the stock pop there -- >> let's talk to larry who is with us now, u.s. portfolio manager, first of all, would you be buying this stock tomorrow. >> well, i think i would be a buyer of the stock at the close of $35 where it opens tomorrow is anyone's guess. but this is really not a surprise. this is a company that is troubled. it's also very expensive. they are, in my opinion, pretty aggressive with their accounting. even using their metric -- >> let me just get in there, if i can, larry, because that's something that charles was talking about and adam saying that it is pulling in a lot of money, which is true,
but at the end of the day it doesn't profit much from it; right? >> it doesn't profit at all. the last four quarters they are lost 20 cents, the quarter before that 15 cents, the quarter before that 27 cents, and the quarter before that 23 cents. so, you know, i think adam was mixing apples and oranges, but he couldn't resist hitting before saturday. so little being said, people wouldn't be buying it because of the profit but the profit potential and the idea that perhaps someone like at google that would be the right partner to take it to the next level. . >> mary, let me ask you. does it need to be someone else? is that something that would make you interested as a senators? is that something that would. >> i'm in total agreement with what was just said. i think the reason why i would be a buyer at $35 is that i think at that level it's a bite size for the logical partner, which is, in my opinion, google, although facebook would be a secondary
merger partner, and you do ahave some asian companies that are reasonable and visible to u.s. investors that could buy. but the key thing here with this company it makes no cash flow, no free cash flow, and it has done a lot of turning around. but it has tremendous engagement. it has a worldwide brand name, it's used virtually everywhere, and someone i think somewhere on this plant is smart enough to figure out how to take this engagement to the profitability level, and i think market cap of around $21 billion, that's really worth the play here. >> yeah. no, and that's something that charlie and i new we talked about many times before this idea, we're aall on twitter with, we're using it, we're not paying anything for it, i guess they think they're influencing. >> as you mention, they're depending on millennials with all the different options in the market right now. that's depending too much
putting all your eggs in a very, very risky basket. >> okay. we're going to cause here for a quick break. we'll be right back with more on this breaking story it begins from the the second we're born.er. after all, healthier doesn't happen all by itself. it needs to be earned... every day... using wellness to keep away illness... and believing that a single life can be made better by millions of others. healthier takes somebody who can power modern health care... by connecting every single part of it. for as the world keeps on searching for healthier... we're here to make healthier happen. optum. healthier is here. if legalzoom has your back.s, over the last 10 years we've helped one million business owners get started. visit legalzoom today for the legal help you need to start and run your business. legalzoom. legal help is here. iand quit a lot,t but ended up nowhere.
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>> huge news in social media. twitter ceo dick stepping down effective july 1st. charlie has been all over this story, what have you got? >> charles payne made a great point, you can have a good business model, but when you become public, you have to be able to communicate that to investors. dick never communicated that, and that's why he's out. the investors quite frankly, again, believed he was incompetent to carry out the mission of making money. >> charlie, we'll be coming back to you. thank you very much. >> let's go to pete. he's tech editor, he is on the phone reminded.
you guys are all over this all the time. what is the buzz that's out there on the street about what happens next? in terms of who runs the company? how long is dorsey there? what is going to happen? >> well, there's going to be, you know, obviously a new ceo, a lot of candidates, putting jack back in makes a lot of sense as the interim because it's the don't freak out choice. it's, like, here's jack, he knows the company, he created the company, things are going to be smooth as we transition to a new ceo, hopefully one with a better vision than dick and one who can actually execute with plans. >> yeah. any idea who they're looking at? i mean you kind of described a little bit what type of person they would be looking for. charlie was saying earlier you need an adult in the room. i mean are they looking for somebody with a new vision as you said? >> no. i think it's -- the vision is very important
because twitter has a fundamental problem, and honestly i wouldn't even rule out chris, who i know there's big conflicts because of his shares in twitter, like, he obviously wrote a very big visionary piece on twitter of where he thinks twitter should go. i think they're looking for that big idea. >> okay. >> with twitter at its current form does not appeal to as many people as they're hoping and to change as many things. >> pete, thank you so much for joining us. >> by the way, jack dorsey has a big interest, 3.3% of the outstanding shares. that's 238 25,000 shares, so he wants this thing to work. >> yeah. we'll be right back
a twitter conference call coming up in 15 minutes light. we're going to have that for you live as soon as it happens as well. lori rothman is here to take you through the next hour of fox business with "risk & reward." no doubt all over this story. >> yeah, indeed, melissa and dave, to reiterate, our breaking news coming out right after the closing bell this afternoon. twitter ceo dick costolo will step down as ceo come july 1st. co-founder, chairman and familiar name jack dorsey will become what the company is strike as interim ceo. we've got a huge panel this afternoon to dissect this move, interpret it and talk about twitter's challenges and what lies ahead for the company here, as mentioned in the after-hours trade, twitter shares are soaring. so far wall street likes the news. let's bring in our panel, jo ling kent, charlie gasparino, john broad, the co-founder and president of confide and roger