apple is not commenting. we do not know the apple side of this. >> a spokesman said there would be no comment about this thing. it sounds like a young guy who did not work out there. i have worked some jobs that are a hell of a lot more brutal than that. >> let's talk about it with peter berg. he covers apple for bloomberg news. let's also speak to joe who runs a recruiting company. peter, let's start with you. tell us about the hr change. i visited an area of the company that we never talk about. >> this is an area of the company that we never talk about. it was run by a yale professor that steve jobs brought in in 1999. steve was getting sick. the company had paid very little attention to its own management. steve jobs brought in this guy to create apple university. >> so what is apple university? >> it is a management training program. it is very quiet. very secretive. >> this was written about in the book, that the culture of apple came from steve jobs. he was thinking, what happens to apple when i am not

>> apple exile. we have the ceo of the bitcoin that got gotted from the apple app store. >> wow. >> a lot more. >> well, stay tuned. >> thanks. over to you guys. >> "fast money" starts right now. live from times square, i'm melissa lee. i'm our traders tonight are steve bosso and we are talking to the ceo whose app was banned from the apple store. the top story, the s&p scored the best score in the second straight day despite a disappointing jobs report this morning. is this the end of all that correction talk? guy, what is that phrase -- price is truth. >> there was such sarcasm in your voice though. >> i'm stating fact. okay. the markets went up today, strongly. does that mean that we're out of the woods? >> no. listen, i was in the camp in 1725, we didn't get there. i'm surprised we're as high as we are now. i think this time next week we'll be looking at the s&p that's either side of 1750 having tested that 1725 level. we'll see. great rally today. i'm not certain what it was on the back of other

conference come to san francisco not only recommended to apple but to do apple businesses. had you see visitors coming here to visit the city we fully support it from the council and we ask you do the same thank you for your time >> thank you. >> good afternoon. my name is keith ward. i'm a security officer with w w. i've lived in the city for 3 seven years. i'm not against the apple project additional please excuse me. i've got my smart phone pictures. we've foouth fought hard to create and maintain heath public spaces so far all the citizens and the means to enjoy them. this project and other like it that avoid carefully community represent the undoing of what san francisco as a great city can be and is now. we shouldn't let apple or twitter are any other companies getting deals in san francisco that are not available for the average san franciscan. you must release the fox plaza not two for a away from here a coffee shop the lady got her rent raised and she's gun. the other companies won't abide by or when a tenant st. is paying a certainty amount and the landmark can ra

this warrants to review we said that apple has worked closely with city staff but sequa requires apple to work with the whole community and that has not happened. we believe that the staff is now saying that the project is exempt from all sequa review. first, they said it would the project at all and they backed off. now they're saying it's exempt as a class 2 exemption for the replacement of a building but sequa says that a project may not be exempted from sequa review if it effects the relocation of alteration of the location it will change the immediate location. in particular the plazas will slipping by thirty percent this other person store will make that shorter and the staff report says it will increase the size of the plaza that is wrong math. they didn't calculate the stair area which is the seating area. also the project will be reducing the amount of public spaces it's eliminating american people observation desk that is for the hyatt and it's prioritizing the space around the fountain now, it's would i doly open and the levi store didn't open to that space. the space become

>> it's mostly just that there is a new apple tv, this is an upgraded apple tv box. it could be announced around april and be ready around time for christmas. he are hearing talk of a new interface that easier to use for people. the content is going to be king. >> would be vastly different from the apple tv set-top box we already know? lex we don't know. out witht often them something radically different on itunes. content is what they have been missing. it is still a hobby relative to the size of apple. a hobbyer to it as product, but you know, if they can get it so they've got all time warner cable content on their, suddenly it's a place where it could become a primary viewing vehicle for people rather than just for netflix or the different channels they have on there now. >> we are hearing it will have a faster processor and be easier to use. i wonder if it's going to be dramatically different? the pressure has been on apple to come out with something new. it doesn't sound like this is really it. >> we have been hearing talk for years that they would come out with

we've been talking about apple talking to time warner cable about a new deal for apple tv. what does this mean for innovation in the cable industry? does that slow this down? >> there is argument it could speed it up because comcast technology is superior to time warner cable. you make them bigger and give them more resources and bigger scale, you can get more customers on the same page as far as expediting the way that people watch television. you -- comcast has guides, the x-1 and x-2 they are called. they are state of the art video guides. they look like netflix or amazon prime than your cable grid you are used to. you add on a lot more customers to that and it's possible that many more people can have a more advanced television viewing experience than they can today. >> however, i want you to take a listen to another thing that jonathan kline had to say about how monopolies impact innovation. take a listen. >> the downfall of monopolies is that they take their audience for granted and that is an enormous opportunity for newcomers to come in. time warner loves to say to

has and that is why apple still dominates and why apple is growing a market share in the u.s. liz: what gives them the biggest lead? >> the thing i have been watching fo foreign haven't seen yet from apple's they have 550 million profile names with credit card numbers on itunes, and i am waiting for apple to combine that with this technology to send them offers. if they do that they will have a serious competitor to amazon and if apple were to do what i would have done, say why not acquire ebay and put those together, you would have an incredibly powerful direction for apple. liz: what we did see is jo ling kent holding up the samsung galaxy, which is the new one they just unveiled. you are saying simply while the hardware looks very sparkly and pretty, it is kind offthe experience whether it is the app store, things like that they need to catch up. isn't it a matter of time before samsung can do that? >> htc had probably one of the most beautiful phones this year and yet htc has been hemorrhaging profits. just having beautiful hardware as good as samsung is isn't enough. liz:

we've been talking about apple talking to time warner cable about a new deal for apple tv. what does this mean for innovation in the cable industry? does that slow this down? >> there is argument it could speed it up because comcast technology is superior to time warner cable. you make them bigger and give them more resources and bigger scale, you can get more customers on the same page as far as expediting the way that people watch television. comcast has guides the x-1 and x-2 they are called. they are state of the art video guides. they look like netflix or amazon prime than your cable grid you are used to. you add on a lot more customers to that and it's possible that many more people can have a more advanced television viewing experience than they can today. >> however, i want you to take a listen to another thing that jonathan kline had to say about how monopolies impact innovation. take a listen. >> the downfall of monopolies is that they take their audience for granted and that is an enormous opportunity for newcomers to come in. time warner loves to say to time war

would you have preferred that apple did this deal? >> at this point apple needs to do something. he's making the argument and he's making the argument on usage of cash. use the cash. that's where i think everyone is going with this. at some point to have that cash on your balance sheet, you're going to be punished by the marketplace. it's too much cash just to sit there. you see it's happening. that's why it's in a side way range. >> one of our traders loves the deal so much she's buying the stock today. stefanie link is on the phone. tell us about your trade. >> well, when the deal was announced last night in the after market, the stock had fallen about 5%. and so i was kind of hoping to get it down 5% today. we got it down about 2 1/2%. but really it's giving us a chance to buy a very high-quality industry leader with substantial growth. i like the deal that they announced. it's more of kind of medium term, longer term. but in the meantime, you're getting a very impressive growth story. go back to the fourth quarter. 63% year over year revenue growth. 300% mobile growth. mobile

apple was not against icahn's plan. apple bought back a bunch of back stack and led them to their stock improve. >> at end of the day apple board of directors were in a better position to decide how they would give back shareholder money. i think that mr. icahn, i certainly don't have a fight with him personally. i just don't think apple should be responding to one investor who is seeking to make money when there is a broader issue at hand. and that is, that public investment funds and others also believe that we should look at these companies in the long term to create value. i think our efforts alongwith calpers and iss, which sort of said, look, we should not be giving additional $15 billion on top of the 100 billion apple was giving back. i said we have to draw the line in the sand and rely on the board of directors to make those decisions. david: you have -- liz: you have about $1.3 billion worth of apple stock in the funds for new york pensioners? >> uh-huh. liz: are you happy with what the company is doing? forge

success the key to my at apple. i had no money so i'll is had to trick -- i had no money so i had to design things with the fewest cost.n the lowest i did the absolute best possible design anyone could do. 2 had this product, the apple computer. we had to raise money, steve jobs and i had zero money. no bank accounts, we did not have any rich families, i had a job at hewlett-packard, steve did not even have a job. experience,siness we had not taken any business courses. we were coming from nowhere. we needed money. we knew that this computer, the first order would be 1000 of them. when i worked at hewlett-packard, i wanted them to build this machine. i was going to be an engineer at hewlett-packard for my entire life, i begged them, i showed them how, they turned me down five times. five times. it is good, they would have done it wrong. they would not have made it a nice, fun to use machine. a computer is a fun thing. it would have made a device for engineers. all the better. we had to go looking for money, we found

rest of apple's team always had it right. and we're speaking with the world's largest asset manager about all this volatility and why you shouldn't run scared from stocks. the chief investment strategist of blackrock here to guide you and your money. and breaking away from aol before the tim armstrong health care baby scandal. about.me star tony conrad thinks the online identity site has a much better chance of becoming a top internet brand by standing alone away from aol and its troubles. tony's with us exclusively. plus, the bird about to go the way of the dodo after the creator of the app says he can't handle the truth. truth is, he's too successful? don't despair, fans can still get their hands on the extinct game. we'll she grow how. "countdown to the closing bell" starts right now. liz: good afternoon, everybody. it is the last hour of trading and stocks are trying to move higher at this hour. the nasdaq and the s&p are making it so. one of the most widely held stocks many of you may have your portfolio. the winter chil

he was thinking, what happens to apple when i am not here? >> this is what makes apple, apple. there is attention to detail. they will go through case studies. they get 20 people from around the company -- this is mostly high-performing people. they get them and talk about when apple is. the new head of hr is this woman denise young. she was running hr for the retail division. it was about half the company. it is the other half of the company. >> nasty runs the whole company. ask all of hr. rexx he may be the highest-ranking person with american woman -- >> she may be the highest ranking african american woman. today individual designer -- how does apple stack of these days in terms of a place to work? do people still want to work there and enjoy working there as much of the used to? i think the challenge for apple is that they have rebrand, great skill. it will be in millions. the challenge is that they are competing with our cups. -- start up. you see the upside of a company likens grammar snapshot -- instagram or snapshot and a year later you have a billion dollar valuation.

. ♪ liz: what do apple investors want to do a bigger stock buyback? apples tv? where is the apple smart watch? how much is ceo tim cook spending on new innovative product anyway? shareholders congregate, we are asking one of the smartest apple analysts on the planet, jean munster. the man who created one of the best-selling sports games in history, matt in nfl, founder of electronic arts and he has his eyes set on a new prize, the heart and mind of your kids. kenna project backed by heavy weight and recent horowitz turn a profit? trip talking, our exclusive tests. behind the upbeat voices and tier fool's miles the morning show war is getting nasty behind-the-scenes. nbc finally trumped good morning america after two years suffering in second place but will the olympic a low of sochi last? what is at stake decides millions of ad dollars? "countdown to the closing bell" starts now. good afternoon. i am liz claman. it is the last hour of trading on the last day of february. such a brutal month for the weather but such a warm and cozy and welcoming month for stocks

cultureto impose apple in jcpenney, it is not an apple culture. it is where i go to get my socks and underwear. the whole retailing model. >> do not set it on fire. they typically start to shift things around and move but fundamentally, ron johnson is a great guy but was commuting back and forth. you have to absorb yourself into the culture. you have to be part of that altar. you need to get back to the core of what the company was about and i never got to that core. >> all right. you will stay with me and we will talk more about millionaires and billionaires. people you know every day. speaking of ceo's is, shares of elon musk rose to an all-time high yesterday on speculation apple might be interested in buying the electric car company. elon musk, is he ready to sell the company he has founded? we will be sitting down for an exclusive interview later this evening. ♪ point one million millionaires live in the united states. billionaires live here too. phil mattingly look at which states have how many millionaires and where wealth is being create

we've talked to apple talking to time warner cable about a new deal for apple tv. what does this mean for innovation in the cable industry? does that slow this down? >> there is argument it could speed it up because comcast technology is superior to time warner cable. you make them bigger and give them more resources and bigger scale, you can get more customers on the same page as r as expediting the way that people watch television. comcast has guide the "x" 1 and x 2 they are called. they are state of the art individual crow guide. they look like netflix or amazon prime than your cable grid you are used to. you add on a lot more customers to that and it's possible that many more people can have a more advanced television viewing experience than they can today. >> however, i want you to take a listen to another thing that jonathan kline had to say about how monopolies impact innovation. take a listen. >> the downfall of monopolys is that they take their audience for granted and that is an enormous opportunity for new comers to come in. time warner loves to say don

. >> there is a new apple tv, this is an upgraded apple tv box. it could be announced around april and it could be ready in time for christmas. we are hearing talk of a new interface that would make it easy to use. >> would this be different from the apple tv? >> we do not know. apple does not often come out with something radically different. content is what they have been missing. it is still a hobby relative to the size of apple. they have referred to it as a hobby product. you know, if they can get it so they have all time warner cable content on it, now it is a place where it is a primary viewing vehicle. >> we are hearing it is going to have a processor and be easier to use. the pressure has been on apple to come out with something new. it does not sound like this is really it. >> even in the tv world. we have been hearing for years they would come out with an actual tv. they have a lot of big projects in the works. they are clearly working on i-watch. it is a major effort for them. we will see whether this is an evolutionary improvement of

the apple tv is up in the air. the strategy it and was to line up all the content providers and it's not clear they have had much luck with that because of existing contracts and pushback. they are pushing into existing industry. whereas with the i-watch they are opening up a new area. there are people who want to be known as first in that area that are putting out little toys. but the i-watch will be the first serious attempt to really create a transformative product in that space and nobody is there to block them. >> maybe starting to get at what i was about to ask. i said i thought all the watches that i've seen out there thus far have been duds. whattes your take on the watches from samsung, pebble, others out so far? any of them have elements likely to be big breakthroughs? >> well, pebble has actually taken an interesting approach. we have limited technology, lets do the best we k they brought out a watch that doesn't have to be charged every 20 minutes. what it does it does well but that's very little. samsu

it was the top app in the apple app store. it was again where you navigated and it was similar to super mario brothers. a simple game and very easy graphics. it was ridiculously hard. it was one of those games that people were addicted to the suddenly took off this year. it has been around since 2013. >> the guy said he was making $350,000 per way. >> aren't games supposed to be hard? >> it's one of those games where it is really hard. you can buy your way through on these free games. >> it's like life. >> exactly, you could not. you make your way through this game and there was no way to buy currency or by any cheats to help you through the game. >> in addition to the game being too hard, he was criticized for copying other game makers? >> there were some rumors that nintendo is planning to sue them. nintendo denied that. we don't think that's true as far as we know. designing games. activision can spend $100 million developing game over 2.5 years and it can be ready and or this thing it or other things it's about gameplay. a

that is exactly what apple is doing with local 22. i want to say thank you for listening and please vote for this project. thank you. >> thank you. next speaker. >>> good afternoon. thank you, supervisors. my name is adrian cohort with the bay area council. as a regional business association representing the largest employers in the region, it is very unusual for the bay area council to weigh in for or against a particular project in a specific city. but in apple flagship store in union square won't be any -- just any project as union square isn't any other location. the flagship store will become a new landmark for our region and will create hundreds of construction jobs we just heard about and also several hundred permanent jobs in one of the busiest retail districts in the nation. and apple is one much our region's most icon i can companies representative of the innovation that drives a major part of the region's culture and economy. as such an apple store in union square is a perfect fit. the proposed store is an architectural imp

there is a new apple tv, this is an upgraded apple tv box. it could be announced around april and it could be ready in time for christmas. we are hearing talk of a new interface that would make it easy to use. >> would this be different from the apple tv? >> we do not know. often come out with something radically different. it is probably -- content is what they have been missing. it is still a hobby relative to the size of apple. they are preferred to it as a hobby product. it soow, if they can get they have all time warner cable content on it, now it is a place where it is a primary viewing vehicle. >> we are hearing it is going to have a processor and easier to use. the pressure has been on apple to come out with something new. it does not sound like this is really it. >> even in the tv world. we have been hearing for years any would come out with actual tv. they have a lot of big projects in the works. they are clearly working on i- watch. it is a major effort for them. we will see whether this is an evolutionary improvement of a fairly m

neil: you will say i have no intention of selling my apple share. >> absolutely have no intention of selling it. neil: you won't come back and threaten him. >> i never threatened him to begin with. we think that company is under valued, we had dinner together, he is, agrees, only difference is, why don't you spend all of the money, he didn't disagree, i think we're making too much of this. i don't want this to be a major battlining point. the best way to win a war is don't fight it. neil: a personal question, i have. when you alert a company to a stake you have taken, these days it comes up on twitter. -ut old days was it a phone call, did they take the phone call? did they go to war with you? what what? what is icahn modus operandi. >> i believe corporate governance is disfunctional and dangerous for our economy and well being, and for pension funds, very strongly underfunded. we -- what is amazing to me, now you see the woo -- what we've done. you know, we up about 25% annualized if we bought that stock. the hedge funds up 25% annualized. last 95 years. neil: your critics say, for

why is apple not participating? as their shareholder meeting is kicking off as we speak. >> that's not a negative, scott, there's a lot of reasons apple isn't participating at this point in time. stock ran up to the 575 range and gave you an entry point around 510, 515, this s&p can go higher without apple leading it. you talk about the law of large numbers, talk about the size of the market cap right now. i believe if you look at the nasdaq, the nasdaq is telling you it's a lot more than just apple and the index -- >> and apple has to tell us what they're going to do. and that's what we expect to hear today. they need to tell us what they're going to do with their capital. they need to tell us, we saw what facebook has done with this big, huge buy, they decided with $19 billion. they have seen google do the youtube deal and now another deal a $3 billion deal. and apple needs to put that money to work. >> it's got to be something -- >> oh, and they're going to get the innovation by buying. not from within. >> you th

time for the big story appeared apple is planning to introduce a new apple tv set as early as april. the company is negotiating with time warner cable and other potential partners to add video content. an agreement with time warner cable would mark the first such deal. what does it mean for how you consume your content? cory johnson joins us now. jonathan, i will start with you. what will it mean if i have been linked to time warner? what will it look like and how will it change my viewing experience? >> it is similar to the device they have now in terms of the box itself. if they have an agreement with the cable divider, you will look at the apple user interface. you do not have to deal with the clunky dvr. we will not have to deal with that anymore. applel tie into the ecosystem. you will able to set your iphone program wherever you are and you can watch all your devices -- on all your devices. >> everybody has been so focused on apple tv. aligningthat they are with big bag cable companies themselves, how does it change the equation for when people might eventually cut the cord so

apple, while they have released short statements, i saw a headline that talked about apple's deafening silence. should companies be more upfront about what is happening? >> absolutely. there are a number of breaches in the bay area where apple had information about the vulnerability and did not disclose it. there was a vulnerability window that didn't need to exist. >> what should companies do? they do have to balance not alerting all the bad actors out there before they fix it, right? >> there is a balance there is protecting users and informing users as was waiting for the fix. prioritizing fixes and getting them out as fast as possible is the right way to do things. once you fix them, being upfront and saying, this is what happened and how we fixed it. >> have vulnerabilities been out there all the time or is technology moving so fast that security cannot catch up? >> they have always existed. companies that have been in the press more have come up with programs to proactively contact largest security companies like microsoft and adobe both have programs for they will give trusted p

josh, any new news on the deal with apple? >> we're here at apple hq in cupertino, california, the ceo did field questions. we have done 23 acquisitions in the past 16 months, we would be interested, also, in a big acquisition, but it would have to make strategic sense for us. acquisitions, we have done 23 in the past year and half. but we'll keep looking for ones that make long-term for the company. some share holders were asking, why don't you talk more about the products in your pipeline and tim cook responding, listen, we're not interesting in laying out a road map for our rivals, nor are we interested, he in his words, being ripped off by our rivals. the growth the company is seeing there, we talked about brazil, cook said they did less $4 billion in revenue last year. last year, over $30 billion. finally, of course, shareholder were here, a couple of hundred of them. they drove here and flew here. they were to listen to cook. they were also here to cast their votes on a range of issues from executive compensation to the

apple's disappointing earnings. owns less the 1% of overall apple shares. cannot move the needle that much. >> overall trend higher? >> yes. i think the stock still has momentum near. it is trading at eight times cash. they have a new product category on the way. the sales cycle bottomed likely in the upcoming quarter. i think apple is still an attractive value. >> let's talk about activists themselves. you can call 2013 the year of the activist. it is extra ordinary how much we have heard from these folks. they have had quite an effect. in some cases, extremely good. in some cases, extremely bad. and agen a new day were an activist has a lot more power to make management move for change? >> 30 years ago these were the barbarians they gave into the guys no one wanted showing up. it is generally perceived that a , that the shareholders ey can actually affect serious change at companies that may need a shakeup. in this case of apple, you have respect.n with much he is a tiny shareholder with a really loud voice. who is able to agitate for some kind of change

money points out apple keeps its profits offshore for as long as possible because companies oh us tax on profits when they bring them back from overseas moment that money comes back to the united states apple would have to pay the us corporate tax on it minus any foreign taxes already paid right now apple has around one hundred two billion dollars in offshore bank accounts and the company said no plans to bring that money back to the u.s. any time soon as senator carl levin put it apple sought the holy grail of top tax avoidance it has created offshore entities holding tens of billions of dollars while claiming to be a tax resident nowhere. of course apple isn't the only giant corporation hiding billions of dollars overseas hundreds of corporations are exploiting these same corporate tax loopholes to avoid paying taxes to our own government report from citizens for tax justice found that thirty corporations of the fortune five hundred list each paid zero income taxes between two thousand and two thousand and ten even though they made over one hundred and eighty billion dollars collect

we returned to the ancient apple tree. i eye the elite thirty centimeters this also makes an ideal place for birds to nest these chicks are about three weeks old. we patiently await the return to their parents you will. i do. he said chick emerges from the hollow. he said. waits is ready for its next meal. i think. gerd return sneak peek cheats immediately. check it out but i did this to teach this chick believed as many as three year old son. i think i really really really really. gates later. i snapped. lucille fledgling is now ready to venture out of the nerves. the target snowed yet strong enough to fly still it can't help but try labels note to return it shelters in the brush. i really really really really big. aaron watches closely from a nearby tree he'll put grill and it remains vulnerable to predators such as weasels and martin tsk. in search of a safe place the chicken treat yourself to the orchard. all went to a refund a parent bird in the forest nearby. rule rule i will do to a i aa. the iba cheques in your moc

would apple like a part? i'm sure they would like a partnership. >> and apple is increasing competition on the mobile front, its growth is slowing, it hasn't introduced a new actual product or category since back in 2010, so a lot of analysts are getting maybe excited about this. in fact, one actually brought it up last year -- >> baronburg not a hugely large german bank. >> and everyone was giving him grief that he wanted attention and now it's been reignited now that the meeting is out there. >> even though the courtship between the highly innovative companies, may not happen, it brings us to the squawk on t n tweet, if they got together, what would the child look like? tweet us and we'll get your responses later on this morning. >>> a big deal in pharma, octavious agreeing to buy a forest. and carl icahn tweeted his support for the deal said great result for all forest lab shareholders proves again that activism works. what a day for carl. not only is herbalife reporting tonight, got netflix in the news, o

it can not be only available for apple. commissioner borden >> well, i do building this is a much improved project than what was presented. i'm supportive of the design. in terms of the way it meets the street on the post street side and the way it is open and transparent to the rear. i do think that commissioner moore brought some accessibility issues that i hadn't contemplated i think making it level on the plaza side would actually be a noise edition. in terms of the tables and chairs i actually find on union square there's not enough tables and chairs i don't think it's because the pace the way it is it's not been used i think that tables and a chairs will activate it and make that more existing given it's outside an apple store but i don't think that the furniture is particularly a problem but the accessibility issues the do you code is a challenge. i like you've opened it up on the stockton street with the air and the virtual connection. i was going to say about accessibility >> right. >> that hyatt hotel access remai

. >> did you have a conversation with apple? [laughter] >> we had conversations with apple. i cannot comment on whether those revolved around any kind of acquisition. >> are you for sale? >> i think that is very unlikely because we need to stay focused on achieving a compelling, creating a compelling mass-market electric car. i would be very concerned in any kind of acquisition scenario that we would become distracted from that task, which has always been the driving goal of tesla. >> when you say it is very unlikely, i am not hearing -- the years i have known you, if something is not going to happen, you say no. i am not hearing that. i am hearing there is a door open. >> if there is a scenario where it seems like it would be more likely that we would be able to create the mass-market affordable electric car, it would make sense to entertain those discussions. i do not see any scenario that would improve that probability. >> if apple were to come to you and say, we want to get in the car business. we want to start making cars. what would you tell them? given your own experi

apple has taken care of that for you. because the prevalence has been so low compared to the android platform, people just get that idea that they are secure. they might be a little less careful when they are browsing the test that apple stamp of approval. >> tummy about the flop. >> it is a vulnerability that allows people to break out or gain more permissions on your phone than apple intends them to. apple tries to prevent applications from doing certain things like reading your print reader. a reading that raw data. this phone ability allows the attacker to do that. imagine an application that could record all of the thumbprints on your thumbprint scanner. violation would that be? >> taken together, this plus the os 10 ball -- flaw as well, this sounds bad. >> you are correct. everybody runs iphones. most people are not running any sort of third hardy security application on even the mac or iphones or anything like that because they have his idea that apple is protecting them. >> you have been working with apple on thi

. >> did you have a conversation with apple? [laughter] we had conversations with apple. i cannot comment on whether those revolved around any kind of acquisition. >> are you for sale? unlikelyk that is very because we need to stay focused on achieving a compelling, creating a compelling mass-market electric car. i would be very concerned and any kind of acquisition scenario that we would become distracted from that task, which has always tesla.e driving goal of >> when you say it is very unlikely, but i am not hearing -- the years i have known you, if something is not going to happen, you say no. i am not hearing not. i am hearing there is a door open. >> if there is a scenario where seems like it would be more likely that we would be able to create the mass-market , itrdable electric car would make sense to entertain those discussions. i do not see any scenario that would improve that probability. >> if apple were to come to you and say, we want to get in the car business. we want to start making cars. what would you tell them? given your own experience? >> what would i

money points out apple keeps its profits offshore for as long as possible because companies oh us tax on profits when they bring them back from overseas the moment that money comes back to the united states apple would have to pay the us corporate tax on it minus any foreign taxes already paid right now apple has around one hundred two billion dollars in offshore bank accounts and the company said no plans to bring that money back to the u.s. any time soon as senator carl levin put it apple sought the holy grail of top tax avoidance it has created offshore entities holding tens of billions of dollars while claiming to be a tax resident nowhere course apple isn't the only giant corporation hiding billions of dollars overseas hundreds of corporations are exploiting these same corporate tax loopholes to avoid paying taxes to our own government report from citizens for tax justice found that thirty corporations on the fortune five hundred list each paid zero income taxes between. two thousand and eight two thousand and ten even though they made over one hundred and eighty billion dollars

there are a lot of good fundamentals ii apple. it will not be in my opinion a stock investors are looking at 100% return. it is not in the growth category of other companies like tesla and some of the others but it is a very solid company. the key is investors understanding and having a good perspective and real es -- david: i get you. i think i get you. i'm mature. there is nothing wrong with maturity. i like maturity. however apple used to be kind of the young kid on the block with these exciting, new ideas that everybody said couldn't be done. they made it happen. and has it lost that sort of, that sort of excitement? >> i don't think so at all. i think the important thing is that the board used its judgment as opposed to carl icahn's on how much capital should be returned to shareholders and at what pace. david: right, but, kent forgive me interrupting, forgive me for interrupting but i'm focusing on the company itself. let's get away from the icahn issue. just the company it seven, apple, as anton said, has it lost that young

of its apple tv box. be unveiled by april and involve a content deal with time warner cable. a comcast deal could change everything. jon erlichman is back with us from l.a. we want to start with you here because this is the hockey puck. we're not talking about apple tv. >> not the big, shiny thing. >> is it a big deal? whatr less ambitious than they were originally trying to do, allowing consumers to buy cable channels individually if they wanted to rea. few more channels. if they do the deal with time warner cable, you would get the time warner cable app on your tv. think apple is the smartest guy in the room. you think they are surprised by this? >> yes. this was done in complete secrecy. >> philadelphia outsmarting cupertino? >> outsmarting everyone. it's changing the landscape. >> why is apple left in the dark here? have been in discussions, active discussions. are doing that, you're still negotiating. either side holds back information to leverage each other. ofyou think the city brotherly love is me

maybe the portfolio investors have to buy apple? >> that's the implication. you look at apple. and you look at the s&p 500. which would you rather own? an asset that is at all-time highs. questionable valuations. or apple, which has bounced off of 515, has an activist investor in there, a meeting coming up tomorrow and potential catalyst coming over the next six months. i think at 526, you can certainly buy apple right here. use 515 as your stop. and i think you can be happy. >> should we assume that something will happen from the shareholder meeting? they're they're going to increase their buyback or dividend? is that priced in? >> today's action tells, if you increase the dividend, there it is. let's be clear on apple. this is not a broken company. this is a stalled growth stock. are you going to get to a place where you see the new revenue driver? 550 million customers globally who are intensely loyal to a company that i think will begin to give them what they want. it's not going to happen overnight. i'm not expecting anything tomorrow. but from a traders' perspective, look

apple. i stopped counting after 20 people asked if they are safe in apple. is it safe? some bought it lower, some bought it higher. apple is the opposite of scary these days. it's a slow-growing stock with oodles of cash and products that may or may not move the needle, as surely as the new revolutionary, slim, soft, bristled tooth brush will move colgate, sorry about that analogy, but apple is a bit like colgate, you know, in it's innovation which is not an insult, more of a fact. i would say half the people in apple are frightened it might go down from here. the other half are wondering what it will fly high again. the sample is predicting the stock is headed somewhere in between. that's right, i don't think apple is going down much but i don't think it will run away either. when i asked people why they owned it, they like the product, which is terrific for the company but not necessarily great for the stock. what makes for a good stock? you want to own a security and many users are about to convert. that's what happened. it's not a positive when people were taking a

buy and hold google or buy-and-hold apple. how do you know when to finally get out of a dog that used to be buy-and-hold? >> you cannot always do it. two reasons, the company simply turns into something that you did not originally buy. codec, motorola, the names go on and on. the other is that it gets to a level -- google, when i bought it, years ago, they were a lot lower. not only in price but in valuation. the company has grown dramatically, i love companies whose name is also a verb. ha, ha. at the end of the day, for example, twitter and tesla -- >> did you buy off management? the microsoft ceo changes or mercer mayer -- or marissa meyer at yahoo!, do you buy off people. thebsolutely, if you have right person in charge. microsoft -- i don't think ballmer did a bad job if you look at cash flow. this looks like a good change. >> google is a curious rennanreed, sergey bri running it. what if it becomes a consumer product company, no longer about search? >> any of these companies -- i them to rejuvenate themselves, refresh th

what does this mean for apple and apple tv echo what does this mean for netflix? >> i think it means a lot of competition. amazon has been very serious, especially in this town, about its top dollar to make these programs the same way that amazon -- netflix is willing to spend top dollar to do these original programs. amazon is clearly learning a lot the amazon prime video offering that they have. that is available on all sorts ku.devices like rogu there is this discussion that they make that a stand-alone service. you are talking about whether or not the prices for amazon prime goa. they could say, hey, here's the standalone video offering we have. to know how it will lay out. if you're netflix for apple come you definitely paying attention to this. tom rutledge said today on the earnings call that a charter had done the deal with time warner, it would not have made a difference in the negotiations with programmers. what do you make of that? a factor anymore in these delicate negotiations with programmers. >> scale actually is a factor. it is important. i'm not t

and ant-icahn over apple, scott stringer urging apple shareholders to vote against icahn's share buy-back proposal. stringer will join us live here on the set later in the show. mcdonald's reporting doesn't expect january sales for europe, asia, middle east, and africa, offsetting what was a sharp monthly sales decline in the united states. and yelp, you heard it here first, those shares are higher in the premarket on reporting it's partnering with yahoo! to beef up the search everyonngine results. >>> stocks in europe and asia trading largely higher today, helped by friday's jobs report, although it wasn't a strong report, as you know. focus here on the u.s. falling on the fed chair, janet yellen's first testimony before congress on tuesday, many expect, of course, we're not going to get any real change in the taper talk. >> right. >> were you surprised by the strength on friday? >> you know we added insight that this could happen. when we had a couple of retailers report really bad numbers and the stocks ran. now i was thinking over the weekend how it all kind of began with coals, sound

. >> is that possible with the way google and apple control at right now? >> it will be very interesting to see how internet.org works out for them. >> i am hugely skeptical about that stuff. i find that happy talk rhetoric, i am happy he's doing it but i don't think it has material business consequences and will probably frustrate many investors as they hear how much time and effort -- i like what facebook does more than seeing what they do. when they talk about what they are doing, i get agitated and think this company is completely mad and then they go out and make these aggressive strategic act positions and say they are pursued to proceed -- to grand management strategies and that could work. nevertheless, the outcome is the same. >> given you have in inside facebook, is there a problem with buying versus building innovation? you have said facebook is more like a media conglomerate that a social network. could facebook become so bloated it becomesne that like one of these legacy players having problems ike yahoo! or cisco? >> i haven't been inside face

apple is holding its annual shareholder meeting today where the full apple board was did. tim cook also said apple will have an up date on its cash policies within 60 days. carl icahn have been pushing apple to use its cash to buy back more stock but dropped to the plan to force a vote on the issue and apparently has turned his attention to ebay. the days of rapid growth that twitter may be o over. one fit access twitter once a month. the growth rate is expected to to 10% by 2015. by 2018 only 65 million will be logging in. is artybook audience twice that size today. a british man charged with hacking into the federal reserve's computers aces up to 12 years in prison. charges in thee indictment. fedllegedly hacked the computers between october 2012 through february of last year and posted personal user information online. the crypto currency immunity is watching the drama unravel with mounted gox. -- mt. gox. there are now being sued by one of the customers for misappropriation of user property. the class action case was found yesterday and seeks to represent all u.s. user