Motley Fool Money - Motley Fool Money 08.02.2013

Episode Date: August 2, 2013

Our analysts discuss the latest jobs report and delve into earnings news from Buffalo Wild Wings, Coach, LinkedIn,  SodaStream, and Whole Foods.  And CNBC correspondent Carl Quintanilla talks about the new CNBC documentary, Twitter Revolution. Learn more about your ad choices. Visit megaphone.fm/adchoices

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Welcome to Motley Fool Money. Thanks for being here. I'm your host Chris Hill, joining me in studio this week. From Motley Fool 1, Jason Moser, from Motley Fool Supernova, Matt Argusinger, and for a million-dollar portfolio, Mr. Ron Gross. Good to see you, gentlemen. How you do? Earnings Paloza rolls on.

We will talk luxury retail, emerging markets, It's restaurant, stocks, and more. CNBC's Carl Kintanilla joins us in the second half of the show to discuss the new primetime original Twitter Revolution. And as always, we've got a few stocks on our radar. But we begin with the big macro. The monthly jobs numbers are out. 162,000 added in July.

The unemployment rate falls to 7.4%. Jason, what did you make of the numbers? Yeah, it just kind of seems like the more things change, the more they stay the same. Earlier in the week, you know, we saw the Fed announced it was going to keep. its foot on the gas, and I feel like today's numbers have to at least beg the question of how much longer that's going to go on. I mean, we saw unemployment approve really across all lines there. I mean, even new six was down, which is great. But I think that when you look at the wages down, you look at hours work down, you look at the labor force participation

rate down, I mean, all of this has to bring back into question really the quality of the jobs that are out there. And I mean, I think that's really a genuine concern. because if it's a bunch of people with just part-time jobs that aren't really paying the bills, then I think we have bigger issues. And I do believe that with health care legislation still kind of up in the air and being implemented, a lot of businesses are not really able to go in, or at least all in, on hiring yet, because they don't really know the full costs of doing business yet. So it's sluggish.

Ron? Yeah, I think the headline was kind of like bad for Main Street, good for Wall Street. So if you're a person, a human being on this planet, you would want employment to be stronger than it was. If you're Wall Street, you want the gravy train of the stimulus to continue. Surprisingly, the market didn't react favorably to this news. I would have guessed it would have. It's kind of like they could say, we are creating jobs, that's great, but the gravy train

continues. That's great. Let's send stocks higher. It didn't happen that way. So it leads me to believe perhaps there is more concern that I would have guessed about that we're just not gaining traction. Maddie, when you consider Ben Bernanke, he's been very specific about his goal of

unemployment having a rate of 6.5%. Do you think maybe part of the market reaction is the fact that, hey, look, the rate is just another tick closer to that? It is another tick closer. Dan Alpert from Westford Capital, he this morning called the employment

situation of a wounded beast, which I think is a really good description. According to him, about 60 percent of the jobs that have been created so far in 2013, pay an average wage of $15.80. And I think Jason hit it on the head. It's the quality of the jobs. We're seeing jobs in retail, restaurants, leisure, administrative. And that to me, I mean, that spells some underlying weakness that's still there. And so I would say it's right for the market to be down. It's right for Wall Street to expect the stimulus to continue as well.

All right. Let's get to some of the earnings news this week. Whole Foods, third quarter profit, up 21%, but Ron, overall revenue was light, shares down a little bit for Whole Foods. What did you make of the quarter? I think the quarter was strong. I liked what I saw. Some of the guidance was week where they said the current quarter that we're in now is looking a little bit light. Not too shook up about that.

I think it's kind of a blip. If I sound bitter at all, it's because I don't own the stuff. And I wish I had. It's one that got away from me. They want to get to a thousand stores. We're only at 335. of room to grow, and that you can add UK and Canada in there, too, to add to growth. Price competition is coming, but it's not really new. We've had the fresh market and the

new Sprout IPO coming, and there's fair way out there. There has been competition, but I do think we'll see prices come down, which as a consumer I'm excited about. Yeah, Jason, this week we also had Sprouts, Farmers Market IPO shares up 124% in the opening day. So not a new competitor, but certainly a new competitor in the public markets. Yeah, and I mean, this higher-end grocery segment is just on fire. You know, it's looking for 10% growth here annually for the foreseeable future, really. And that's why you're seeing your sprouts and fairways and fresh markets and even Trader Joe's to a degree, which isn't public. But that was one of the themes of Whole Foods call there, was competing on

pricing. And we have to kind of beware of that because Whole Foods is selling more than just groceries, right? I mean, they're selling that lifestyle and that brand. So I hope they're protective of that a little bit because they deserve a little bit of the pricing power that they have today. Soda Stream's second quarter revenue up 29 percent. Profit up 36 percent. They raised guidance. Matt shares up more than 10 percent this week for a company who sells a device where you can make your own soda. Right. This is the constant war. That is what they do, yes? It is what they do, but we're

not. They do really well. No, this is the constant war for the kitchen counter space. And the skeptics on SotoStream have said for a long time, well, as soon as this making your own soda fad kind of goes away, it's going to end up in the cabinets, just like every other thing that's come out. That's not a coffee machine or a toaster. That's not the case with SOTStream. I mean, really, if you look at the unit sales, carbonator, soda flavors, there are 22%, 31%, 18%, respectively.

Those are big numbers. We'll say, though, about 46% of the tradable shares of Soto Stream were short going into the result. So that, obviously, I would say, played a big role in the big pop that we saw in SotoStream, for sure. But hey, they're getting it done. People like the machines. Is this a standalone company forever? Does this get acquired?

Well, you know, it recently was sort of rumored to be maybe being acquired by PepsiCo, which was kind of an odd thing, given that, you think that they're kind of competing with PepsiCo and trying to, and essentially cannibalizing a lot of that soda market. But they are out there. They've actually put themselves up for sale, so it could happen. I think Matt just came up with a new battle we can focus on, because we talk about the battle for the living room. But the battle for the.

kitchen counter space. My Panini press will take everything. Wow. Pinnini Press. Shares of Buffalo Wild Wings up this week after second quarter profit was up 41%. Same store sales looking pretty good too, Jason. Yeah, you said it. I mean, the earnings growth of 41%. That was off of revenue growth of 28%. So these guys are doing a great job to bringing it down on the bottom line. And when I say these guys, I mean Sally Smith. Right. You know, wow. I mean, the company keeps on doing such a wonderful job operationally. They are only about halfway to where they feel they can grow their store presence of about 1,700 stores, so they're only about halfway there.

And really, the big story has been the new pricing scheme. And just in a nutshell, they used to buy wings by the pound and sell them by the quantity. Now they buy them by the pound, and they sell them by the pound. And we had a lot of skepticism, I think, as to how well they would be able to really pull this off. And speaking from experience and the in-depth market research that I've undertaken, I can tell you from experience that they did a really great job. in communicating this with their customers.

That was really selfless of you to go to Buffalo Wild Wings and gorge yourself on wings. And I didn't even submit an expense report either, okay? This was just out of pocket. Completely independent research. I love it. I love it. You know, and the other thing to keep in mind is they're not going to have to worry so much about training their customers and staff with the new stores that they open, because

these new stores will open with that pricing policy already in place. I think that's encouraging. You know, next up is a trip back down for a little bit more market research to try their game change her house beer. You're actually part of a group of people from this office who are heading to Minneapolis in a couple of weeks. Yeah. Going to be meeting with Sally Smith, the long-time CEO of Buffalo Wild Wings. If you get to ask her one question about the future of this business, what do you think you would ask her? That's a good question. I think I've always assumed that their 1700 store target was a little bit robust. And that, I think,

to me is, that would be the first question I've been asked. Because I want to know, does she see that as kind of a middle ground and they think they could potentially go higher? Or is that 1700 optimistic? Because I think that the closer we get to that 1700 store base, the stock price is going to start slowing down a little bit. And so if we can see how realistic that target really is, we can get a better idea of how much longer they have to grow. Coming up, we've got a hot IPO that has only gotten hotter. You're listening to Motley Fool Money. As always, people on the program may have interest in the stocks they talk about, and the Motley Fool may have formal recommendations for or against. So don't buy or sell stocks based

solely on what you hear. Welcome back to Motley Fool Money. Chris Hill here with Jason Moser, Matt Argusinger, and Ron Gross. On last week's show, the topic of chicken and waffles was raised. Got a message on Twitter from longtime listener Jason Peters, who said, guys, next time you're in Philly, go to Green Eggs Cafe for Chicken and Waffles Eggs Benedict. Wow. What do you think? I think yes. Yeah, well, and I will say that we have received an invitation from a certain business school in Philadelphia to do the radio show up there this fall.

So if that happens, I think we will be hitting the Green Eggs Cafe. You can follow us on Twitter. At Motley Full Money is our handle. More earnings, Paloza, shares of coach getting hit this week after fourth quarter revenue came in much lower than expected. And Ron, that was accompanied by the happy news that both the chief operating officer and the press. president of the North American group are leaving. Yeah, we're in transition, I coach, clearly. You're saying?

We have longtime CEO leaving. We have management shakeups, people that had hoped to be CEO, but aren't jump ship, which is rather common. That's not unexpected. And we have a lot of increased competition coming on, whether you're looking at Michael Coors or Kate Spade and some others. So we are in a time of transition. I believe that actually creates a really great opportunity to get into the stock that is not going away and is an iconic brand and will survive the tough times. So if you're a long-term investor, the weakness is a good time to pick up shares. Jason, we talked about this a little bit earlier in the week. I hear everything that Ron is saying, and yet I look

at this and just... And yet you don't care. Well, no, it's not that I don't care, but I look at this and saying the challenges that they are facing right now, I know we don't want to focus on any one quarter too much, but I have a hard time believing that this is going to get fixed in the next two and a half months. And so the whole notion of, hey, this is a good time to buy, it almost feels like wait and see what the next quarter brings. Clearly, you don't like making money, Chris.

I mean, that's just clearly. He looks out all of two and a half months. I think that's really what I wanted to key in on there. You're right. We don't expect anything like this to be fixed in two and a half months. It's going to be fixed in a year, in two years. But we know also that the market's forward-looking. And so by the time the signs are there that this team is successful, assuming that they are successful, that the stock will reflect that. Ricardo Libre's second quarter profit up 18 percent. Revenue up 38 percent. Shares on the rise.

Matt, things are looking pretty good for the eBay of Latin America. Mercado Libre. The numbers you really want to focus on with Mercado Libre are registered users, which were up 23 percent to 90 million. Item sold was up 27 percent to 20 million. But gross merchandise volume, which is the dollar volume of all goods sold on Mercado Libre's platform, up 33 percent. percent to 1.7 billion. All those numbers are growth. Those rates have grown from a year ago. So really, underlying strength in McConnell Lehmus business, I'm not surprised this stock is, you know, trading it over $130 a share and the valuation where it's at. It's very impressive.

Was there any talk of guidance? Because all of those growth rates sound fantastic, but that's the sort of thing that is even more fantastic if they can keep it up a year after year. I didn't see really a big, I mean, they're guiding for a big year, but I didn't see it in any. any big guidance increases over there. But at $6 billion market cap, you know, it's still very small compared to say eBay, which also owns 18% of the company, by the way. So continue like this, you know, I wouldn't be surprised if Mercado Libre is worth half of what eBay is in 10 years, and that's a huge, huge gain. LinkedIn second quarter profit rose 33% shares were up on Friday. Jason, what did you make of the quarter? What stood out to you?

Yeah, they brought the heat this quarter. I'll tell you, very impressive results. They have I've grown their membership base to 238 million. Unique visitors and page views are growing at very robust rates, which means that engagement is up, and that's really been a big initiative of theirs, is growing that engagement factor. Corporate clients is now above 20,000. They added about 2100 new corporate clients, and they have pricing power in that relationship, which is very encouraging, and the company just continues to invest in its future. And so we hear a lot of people say, when you look at something like a LinkedIn in this

astronomical PE ratio, and that's just the wrong way to look at a company like this, because This is a pure growth company in the stage of the game. You have to look beyond just accounting numbers like a PE ratio accounts for. Look at the cash flow from operations that this company generates. It shows you that their investments in the business are paying off. And cash flow from operations is up about 100 and, God, what was it? 100.60%. Lots of percent, yeah. A hundred and sixty percent over the same quarter last year, which is just, you know, it's very impressive. It sounds like there's a real business there. There is a real business there. I mean, I'll just a job board.

Your stock will be in two and a half months. Full disclosure. I own shares well below this price it's at today, so I obviously am very happy with the results. And I just, I see really good things for this company's future. I don't own shares of LinkedIn, but I encourage anyone who is at all suspicious about the underlying business, go to the people in your HR department where you work and talk to them and find out of that. Because in talking with Kara Chambers, our HR queen here at The Fool, after talking to her,

I immediately understood why she loved LinkedIn, why, you know, we were one of those, we are one of those business subscriptions. Somebody else who loves LinkedIn for entirely different reasons is our man behind the glass. Steve Broido. Steve, you're a shareholder of LinkedIn, aren't you? I am indeed. Yeah, I bought shares somewhat recently, and I'm very happy with the return so far. And yet, you went out to, you were part of a fool group that went out to visit the offices. That actually didn't really convince you, did it? Well, the offices were great. It was an interesting trip. I have to say, I don't fully feel like I grasp all of what the business is doing.

It's a lot of people. It's a lot of resumes. It's a lot of information. It's a lot of job postings. I don't fully understand it today. But sometimes when I don't fully understand things is when I buy them. I think you're keying into something very important there because the points you made in regard to our HR department using LinkedIn. I think that's the side of the business that we don't really see.

The public facing side of it is our profiles, how we register. But the value that it offers these corporate clients is just phenomenal. And that's why they get them in that relationship. These corporate clients know they can rely on that data. And then LinkedIn develops a little pricing power from that really to continue those relationships and add more services as time goes on. It's a great model. All right, we've got a few minutes left.

Let's get to the stocks that are on our radar. And Steve, we'll hit you with a question. Ron Gross, you are up first. What do you got? Steve, do you like education? Do you like making money? Do you like making money? Bridgepoint Education, BPI, an online educator.

the whole industry has somewhat been under attack for many years about the quality of their education. BPI got some great accreditation news not too long ago. They're really changing the business around to focus on quality education. So now it's all about enrollments that have come down significantly because the company is trying to do the right thing more than ever before. So I'm going to be looking next week very hard at their enrollment numbers, but we think the stock is very cheap here. Steve, question about BPI? Sure. When your children are in school, will any part of their education take place online in terms of bypassing a four-year traditional university? Well, we have looked at this a lot in terms of competition for companies like this, and it does appear more and more traditional universities are going to that, even some of the Ivy Leagues.

So I would say five or certainly ten years from now, you'll definitely see a move towards that. Matt, what about you? Steve, forget education. Do you like cars? Very much so. Maybe sleek electric cars? Well, Tesla Motors reports next week, and we know this has been, I think, the biggest winner in the stock market so far this year. And, you know, can they, will they increase the guidance for vehicles sold beyond 21,000?

Will they hit profitability for the full year? Great questions to ask. I mean, they really need to hit a home run here to really justify the stock move, so I'm paying attention. And the ticker symbol? T-S-L-A. Steve, question about Tesla? Let's say I'm trying to go to the beach and I run out of juice.

What's my move? What do I am I just out of luck? Do I need to be towed somewhere? Pull up on the side of the road, read New York Times, which did something similar, and you're all set. All right, Jason, we've got about a minute left. What do you got? I'd like to give Ron credit for giving me this idea, but it was actually formulated before we ever started taping. It's coach.

I think that with this given quarter, there are a lot of concerns out there, are valid concerns with leadership changes and some slowing sales. But there is plenty of room for this company to go in the emerging markets. And I do believe that this leadership team will prove out over time. time and so that I think today's price, I think, is just an excellent opportunity for a long-term winner. And the ticker? C-O-H. Steve?

Do you own or do you plan to own a coach wallet? I don't, but you know what? I own a coach briefcase. I wish I had brought it in here to show you. Remind me after taping, I'll show it to you. It's classy. Steve, any of those three interests you? They all sound great. They all sound pretty interesting to me. Tesla is more interested in their lower-priced car coming out because that looks pretty cool. All right on. Ron Gross, Matt Argusinger, Jason Mozert, guys. Thanks for being here.

Thank you. Thank you. Coming up next, CNBC's Carl Kintanilla discusses the Twitter Revolution. You're listening to Motley Fool Money. Welcome back to Motley Fool Money. I'm Chris Hill. They say that content is king. You want to talk about content? How about 400 million tweets a day?

From the profound to the moronic covering business, politics, sports, pop culture, and more. and the company behind it all is Twitter. It is the subject of the new CNBC original primetime special Twitter Revolution. It premieres Wednesday, August 7th at 9 p.m. Eastern, and it's hosted by CNBC's Carl Kintanio. Carl, always good to talk to you. Chris, it's good to talk to you again. You've covered Costco, the trash industry. What got you interested in taking a closer look at Twitter?

You know, I think like a lot of us who are in media especially, I've been on it for a while. It's changed my job. I'm smarter for it. But we hadn't yet seen, at least for television, a real deep dive not just on who these guys are, how they're making their money, what their long-term plan is. But also, we hadn't seen anything that sort of put into a framework where we are in our narrative with this platform. What are they changing in our lives all around the world? Celebrity, geopolitics, journalism, law enforcement. We just thought, here's a good chance to get

something on the record that sort of is a touchstone. We had tried to do this a couple, actually, a year or two ago, and they weren't ready. Later on, when they were ready, we didn't have room on our plate, and it finally came together. I would argue it's one of the heartier, more ambitious in scope of projects we've done at Longform at CNBC. I was going to say I got to see an advanced screening of this, and I really was expecting a profile of the company, and it turned out to be so much more than that. You mentioned law enforcement, and very early in this show that you've done, we are in Boston right after the bombing at the Boston Marathon, and you're walking us through what it is like from the point of view of the police department,

the media, and average citizens who end up becoming part of the story themselves. Yeah, it was, as I'm sure, it probably affected you the same way, Chris. So many people learned about this event immediately through Twitter. And so we thought it was a good test case, a case study, to go back and look at who were the players and how did they leverage this platform for their own purposes. So you mentioned the Boston PD. They ran circles literally around the media, corrected the media's high-profile mistakes, put out news on their own timeline with Twitter.

Eyewitnesses, people we've never heard of became instant sources of information around the world. You meant a journalist, of course. I mean, the alleged bomber ends up tweeting. So everybody in this case uses Twitter in their own way, and it changed, as we know, from that fateful night. It changed the modern manhunt in this country. It ended up being a great way to kick off the hour to show how powerful it is, no matter what role you're playing in a national story. I want to focus on the business for a few minutes, and I think it's easy, particularly for anyone who is not on Twitter, to dismiss it as frivolous.

I mean, just the simple fact of the matter that the most followed person on Twitter is, I believe, Justin Bieber, you know, with somewhere north of 40 million. You know, it's easy to sort of look at that and say, well, that's not worth my time. But this is a business that really has grown quickly under the leadership of Dick Costello, the CEO. You sat down with him. what were your impressions of him and the business that he is growing? Well, on the one hand, Costolo has a fascinating management story

because he's trying to scale this company, only with a few thousand people right now, through this period of, I mean, it's hypergrowth is what it is. I mean, how do you, you've got to hire, you've got to open offices around the world, you've got to manage the incredible spotlight of media, a frenzy that surrounds them every day. You've got to manage accounts getting hacked and safety and trust.

I mean, it's a massive job. I don't know how he does it. In meantime, he's every other day he's asked about whether or not they're going to go public, which we also try to pose that question to him. But overall, is it beyond a management story? I think there's an interesting cultural story. How can this thing, this thing called Twitter, bring. us these incredibly profound moments, like when Scott Simon of NPR was tweeting from his mother's

deathbed just these past couple weeks, and yet also be the reason that Anthony Wiener is scandal-ridden, right? I mean, it is something about it is inherently human from a very bright and very dark side. And how Twitter manages to stick around without falling victim to the dark element of that, It's going to be a huge question over the next few years. You mentioned how Costolo gets asked about whether or not they're going to go public. I'm pretty sure they just posted a job. All the hiring they're doing, they are now reportedly looking for someone who can, among other things, be responsible for writing a prospectus.

So it really seems like the kind of job that you don't post unless you are thinking about that. You've sat down with them. just what is your gut tell you about the prospect of Twitter going public in 2014? Well, obviously, they're very hesitant to talk about any plans. I did see the job posting. They have no comment on that either. I think, I mean, actually, there's a relatively broad school of thought that argues the notion they would go public is a ruse that they're willing to play up so that they might

eventually sell to, a buyer not to go i think there's an there's some people who believe why would you want to be public in this day and age look where it got facebook it's been the most humiliating year for that company and they're just back to thirty eight dollars a share um one thing i do know is that these guys the people who run twitter a lot of them ex-google um want to be in control so to the degree they make any big strategic decision it will not be one that results in the dilution of power. Long term, they want to decide how this company grows, how it operates. And I'm just, I'm not willing yet to say that it's going to be through an IPO. And I'm not sure,

I'm not sure it's going to be 2014 if it is. You're listening to Motley Full Money talking with Carl Kinteneer from CNBC. The new Primetime Original is Twitter Revolution. It debuts August 7th at 9 p.m. Eastern. Costello has a pretty audacious goal for his company, which is that tweets should reach everyone on the planet. People now tweet in 35 different languages, and yet just here in the U.S., you've got only about 16% of adults who are on Twitter. How do they scale that? What is the untapped opportunity that they are looking to crack? That is the $64,000 question. Big debate right now about whether or not they're too big to actually fade away.

MySpace at its peak had about 100 million users, which is just a little less than Twitter has now. So you could argue the way at the pace of technology, it's not unthinkable that in two, five years there is no Twitter, that we've moved on to something else.

They've got a real challenge with this video product called Vine. Their rival Instagram, owned by Facebook, is much bigger and has a couple extra bells and whistles. So there's a longevity question for sure. The actual monetization is the even bigger question. I mean, I know you use it, Chris, because you're a great practitioner of it. Have you ever paid Twitter a dime? Have you ever clicked on an ad, followed a company because

of something they suggested? My guess is probably not. So short of turning a lot of media buyers heads, which they're in the process of doing. Making money is going to be the principal challenge for them in the years ahead. You mentioned Facebook. How heavily do you think Facebook's last 15 months have influenced the big strategic decision making at Twitter? Because I can absolutely see people watching the IPO play out. And as you said, a very rough first year as a public company for Facebook. I can see that convincing a lot of people in the front offices of Twitter. We want no part of being public. Yeah, I totally agree. There are some people who argue if Facebook, if the IPO had gone

as planned and the stock were flat to up, that Twitter would already be public. But it really did, and this was one thing we learned just in hanging around Silicon Valley, is that that was a that was a major buzzkill for for the industry for venture capital it just changed the thinking it just slowed everything down it took it took a fifth a fifth um gear motor into third or maybe second um so i think obviously it's a it's a cautionary tale um for for twitter and um it will i It will, I think, one thing I'll add here, Twitter does have a couple competitive edges, for instance, the hashtag, something that Facebook has copied, Instagram offering video, something that Facebook is copied. So Twitter may be smaller, but you could argue they're more nimble and maybe more innovative.

We'll see if that leads to a base that can compare with that of their chief rival. Coming up, more with Carl Kintania right after this. You're listening to Motley Fool Money. Welcome back to Motley Fool Money, talking with Carl Kintania from CNBC. Before we wrap up with around a buy-seller hold, I wanted to touch on a couple of things because we are in the midst of earning season. And I'm just curious if anything has surprised you so far, I know that coming into this earning season, expectations were far more modest. Is there anything that really stands out in terms of either an industry or a single company? Well, I would say net net, it has been underwhelming, to say the least.

You've only got half the companies surpassing expectations on sales, maybe two-thirds, three-quarters surpassing expectations on earnings. The strong dollars not helping anyone, especially the multinationals. it's hurting results this quarter but the thing I would the thing I we all talk about the most there is an asymmetry

to the market in that Chris Hill incorporated posts earnings and beats by a little bit your stock goes up 10%

Carl Kintanilla incorporated misses I'm down two or three percent so those those who are being rewarded for good numbers are being rewarded at an increasing rate. And I think that just points to this larger trend of people are not making money and bonds. They don't know what to do with the cash they do

have. And right now, there's a sense that equities, stocks, are the, as we say, the best house in a bad neighborhood. You mentioned Facebook earlier. The stock finally back up above the IPO price. Do you think Facebook has turned a significant corner or have they only raised expectations for themselves at a time when maybe they'd be better off if they were modest? You know what? I think they are very clever people who can see around corners exceptionally well who had a bad IPO. Simple as that. mispriced, too large, they let expectations get out of control. I think they let it go to their head. I also think they know that. And now that we sort of have this reset, as the stock has done a big long round trip, I think you'll see them come out more. I think you'll be seeing more of Zuckerberg and more of top management. I think they will want to manage expectations.

better, but at the same time, their ad revenue now on mobile is $600 million. Three, four quarters ago, that number was zero. Right, that's real money. Yeah. So everyone thought they missed the boat on mobile, and maybe at that moment they had, but they caught up awfully quick, and their ability to target, their ability to say, to an ad buyer, we can find you a guy married with two kids. I want one of his kids on a swim team in middle school.

Facebook can find them and direct an ad to them, probably better than just about anybody except maybe Google. And that's powerful right now. Last question on this topic. When you look at consumer technology companies as we head into the, as we're in the second half of 2013, but particularly in advance of the holiday quarter, is Apple under the most pressure to deliver a hit in terms of consumer technology companies? And if not, who do you think is? there's no question it's absolutely apple if there's any competition

maybe it's Microsoft who has I think proven to everyone that hardware just is just not their thing for better or worse one thing people do forget though is that the general gap between revolutionary products at Apple is a few years

they don't I mean it may seem like it since the advent of the iPhone but historically they have not come out with a home run every year or every year and a half. And that's what people got used to, I think. So, you know, aside from Jobs' death, which obviously was, can you imagine the setback at that company, the fact that we're having to wait a little bit longer than usual for something different, a watch, a China mobile contract, a real Apple TV, I think is sort of,

Reversion to the mean, the way the company's operated in the past. But there's still a lot of people who say, I want to see something in October, come hell or high water. And if it doesn't, yeah, I think it's going to be a rough fourth quarter for these guys. You're listening to Motley Full Money talking with Carl Keentanya from CNBC. On October 1st, the news and documentary Emmy Award winners are going to be announced. But you've already got one of the nominations in the category of outstanding business and economic reporting long form for the last CNBC original that you and your team worked on, the Costco craze. So congratulations. I want to mention your colleagues who helped produce it Mitch

Weitzner, Wally Griffith, Lori Gordon, Logan, Oliver Mead, and I'm sure I've mispronounce at least two of those names. But congrats on the nominations and have fun at the ceremony. Oh, thank you. It's always hard to bring home the gold. It's a competitive category, but we would not have it had it not been for Jim Sinigal, the co-founder and him letting us take a look at how he changed American retailing. All right. We'll wrap up with Buy Seller Hold. Just in time for the release of her new album, she has passed Lady Gaga to become the most followed woman on Twitter. Buy Seller Hold, Katie Perry. You know what, I'm a Gaga guy. I hate to say it, but I just, I I appreciate, A, her name, and B, the way she pushes the envelope.

She's also, you know, she's an Upper East Side New Yorker. So I'm sorry, Katie, you're very cute, but I got to go with the lady. Regional bias. I got it. I get it. This way of delivering music was thought to be dead, but sales for 2013 are projected to be 30% higher than 2012. Buy, seller hold vinyl records. Oh, as the owner of a turntable and several vintage Maltorme A LPs, I am a long-term and short-term buyer of vinyl. Meltorme, the Velvet Fog. We are less than five weeks away from the start of the NFL season, and at this moment, your Denver Broncos are the odd-on favorite to win it all, so buy-seller hold another Super Bowl victory for Peyton Manning.

You know what? He's almost as old as I am, which is really scary. I'm a hold on the Broncos. I would, on a speculative bet, I'd rather buy some redskins on the hope that RG3, that Nees stays healthy. And finally, it returns to the small screen on August 11th, and its hardcore fans include Warren Buffett and Keith Richards, Buyseller Hold, Breaking Bad. I am a buyer on Breaking Bad.

I'm a leverage buyer. I'll leverage 30 to 1. I'll take as much Heisenberg as I can get. What an amazing, amazing program. He hosts Squawk on the Street every weekday morning on CNBC. You can watch him there. You can also join the tens of thousands of people who follow him on Twitter. The new CNBC Primetime Original is Twitter Revolution.

It airs Wednesday, August 7th at 9 p.m. Eastern. And whether you are on Twitter or not, you do not want to miss this one. Trust me on that. So clear your schedule for Wednesday night or set your DVR. Carl Cantanilla, always good to talk. with you, my friend. Chris, thanks so much. This is probably a good time to remind you that you can follow our show on Twitter. At Motley Fool Money is our handle. That's at Motley Fool Money, all one word. You can also drop us an email. Radio at Fool.com is our email address. You can send

us a question about the stocks on your radar. And let us know how we're doing. You know the old saying. If you don't like what we're doing, tell us. If you do like what we're doing, tell others. Tell a friend, tell a coworker. Rate the show on iTunes. We've got dozens of listeners. but there's always room for another dozen. That's going to do it for this week's show. The show is mixed by Rick Engdahl. Our engineer is Steve Broido. Our producer is Matt Greer.

I'm Chris Hill. Thanks for listening. We'll see you next week.