the sacrifices we make for our viewers. >> we always work for the viewers. cheers. >> we always work for the viewers. this is very delicious, by the way. we'll have a cabernet and crahdonnay for you when you get home. that does it for "power lunch." you see that "power lunch" sipping wine with their pinky in the air? "street signs," we taste whiskey. i'm just throwing that out there. stocks are overvalued. unless they're not. it is the hot debate on wall street. we are all over it. hi, everybody. here are the big stories today. why google made a $3 billion deal for a company that makes thermostats. is herb greenberg ready to throw in the towel on a name he has been all over? that stock is soaring today. and "shark tank," dave and john

stopping by. melissa lee in today. it would not be a show without a solid squid story. >> i said i wasn't coming on without a squid story. here i am. we begin with two big developing stories at this hour. first, shares of boeing under pressure after a japan airlines 787's warning lights signaled a problem with the battery and smoke was seen coming from the fuselage. take a look at tesla, soaring 11.5% after the car maker reported stronger than expected q-4 deliveries but there's a fight brewing happening in real-time over when a recall is really a recall. phil lebeau is covering both stories and joins us with the details. phil? >> reporter: let's start with tesla. this is an interesting story. keep in mind the crux of the story in terms of the fix involved here, this news actually came out on friday and we reported it but it was paperwork that was filed with the federal government listed by the national highway traffic safety administration that indicated there is a battery fix for the charging unit that's used for the tesla model s.

that paperwork went through and as a result, it looks as though tesla has issued a recall, although tesla is out today saying huh-uh, we haven't issued a recall, we're not physically recalling the model s. what's involved here is a new adapter for the wall recharging unit for the model s that tesla is sending new ones to model s owners. tesla's ceo says in a couple tweets that came out within the last two hours, some confusion in media reports today. no tesla vehicles are being physically recalled by tesla. that's true. the vehicles are not being brought back in. he then goes on to tweet the word "recall" needs to be recalled. as that news was coming out a short time later, tesla then raised its guidance for the fourth quarter, its revenue guidance has been increased by 20%. the company sold 6900 model s vehicles in the fourth quarter. that's an increase of 900 compared to the previous guidance of 6,000. as a result, shares of tesla up

almost 12% today. there has already been one upgrade from baird. that's the story involving tesla. now let's talk about boeing and the 787 dreamliner. shares of boeing down 1%. certainly not down as much as it was earlier today. the story here is that a japan airlines 787 reported the lithium ion battery on board a plane that was parked at a gate was malfunctioning. j.a.l. reported smoke coming from the parked 787 in tokyo. no passengers or crew were on board at the time. j.a.l. says one of the eight cells, the lithium ion battery pack cells in the dreamliner had failed. as you take a look at shares of boeing for the last year, we should report that we talked with boeing, boeing is aware of the incident and is going to be working with japan airlines to investigate exactly what happened. it's been a little over one year since we had the first battery fire report involving a dreamliner. of course, that led to the grounding of the dreamliner last year and ultimately, the fix on those lithium ion battery packs.

it remains to be seen if these battery packs, if the failure worked the way it's supposed to work. in other words, if a cell goes bad, the whole idea behind the fix was contain it from spreading to the other cells. that appears to be what's happened at this point. we don't know for sure. >> we know the order backlog for the 787 is to 2020 and beyond. is it hurting pricing at all? i heard the average is about $116 million a plane. >> reporter: sure. well, i don't know if it's hurting pricing as much as it takes awhile -- you never make your money on a new airplane right off the bat. you have to amortize it over a number of years, is it facing pricing pressure? sure, it is. some of it could be you look at the first customers who say you pay for the plane when you take delivery. the first ones are saying well, we were delayed, we want some money off of that. we had the fixes, we want some money off for that. that's where you get into the pricing pressure. we should point out, nobody expected boeing and even boeing will admit, you've got to take many years into account before

you really start to say okay, we're making money on a particular plane. >> phil lebeau, good stories, both of them, going in different directions. thank you very much. let's turn back to the markets and our question at the top of the show was very clear. are stocks overvalued? are they undervalued? the answer is yes. joining us now, sandy villare, i know that's esoteric, because i can't stand it when people categorize the entire market one way or another. there are good companies and there are lousy companies and the valuations that they demand are very different. what do you like? >> i think that's right. if you look at the market, i don't think it's overvalued. if they will earn $120 on the s&p by the end of the year, you're looking at 15.2 times versus historical multiple more like 17. i think it's fairly valued. i think i'm going to focus on individual stocks and find my specific names that i like that are cheap relative to their

growth profile and companies that dominate their niche and go about it that way. stock picking rules the day. >> what are your thoughts on the overall market? a lot of people are indexed to the s&p 500 out there so they want to know overall, what the view is for 2014. >> i would tend to agree. we are specialists in energy and focus on mlps but still, it's a stock picker's market. is the market expensive or cheap, on a historical basis, it's average. >> the whole argument has been as you know, right, you can sort of take the random walk down wall street view or the jack vogel view of don't try to pick stocks, buy a low cost index fund and let her ride. are we going to learn that this year is the return of the stock picker, even with higher fees, you can get outsized returns? >> absolutely. if you just look at yorkville as a small example relative to the broader markets, the mlp space, last year, our flagship strategy was up over 58%. well, the mlp market was up 28% so we doubled what the broader based mlp marketplace did.

there is always room for stock pickers that can identify values, that understand an asset class or segment of the market and bring real value to the table. i think you've seen that with other stock pickers that historically over time consistently beat the market. >> let's get to stock picks. i want to go to be. aerospace. we have seen a massive run in the sfpace overall. do you have to believe in that in order to believe in b.e. aerospace and are you involved in the airlines? >> i'm not involved in the airlines but with b.e. aerospace, these guys do everything on the interior of the cabin. oxygen masks, lighting, overhead bins. i think this will do quite well because they just made an acquisition in the oil field services area. this is their third acquisition to date and the stock went down and sympathy for that because i think everybody knows as an aerospace company getting into a totally different line of business did raise a few eyebrows. we think it's down 6% on that. what a great opportunity to buy something we believe is going to double their earnings from now until the end of 2017.

>> but isn't that sort of an implicit then statement by b.e. aerospace that our core business is fully valued and perhaps not going to grow, so oh, by the way, let's become an oil company? >> i think that's exactly to the untrained eye, that's what people are kind of saying. that's why the stock came down. frankly, they look at multiples where they want to buy into the aerospace area and they are pretty expensive, whereas in the oil field services area, very cheap. this is a company that's put together many, many acquisitions very well since 1987, when they were started, and i think they will do well in the oil field services area as well. >> i was going to compliment you on your pick to our viewers a couple months ago but now me and my eye will go to the gym -- >> untrained eye. >> i'll be in a freezer hitting steaks with my eyes. darren, energy transfer equity, you like that. you like the pipeline companies. but the dividend, three some percent? >> energy is growth in the united states. >> but for ten years, going to yield 3%, why would i buy an

energy company at three something? i need 4% or 5%. >> i disagree, because what you're doing, if you think of it, if you are getting growth rate 20% to 30%, you are doubling your money every two to three years -- >> the stock is up 70%. 70%. over the past year. i wanted to ask you on sort of the same point, atlas resource partners, why would you invest in an energy stock that's down over the past year by 3% even if the yield is 10%? it doesn't make up for the capital loss. >> all three of them are growth plays. there's a difference. arp is a good entry point. we believe it represents tremendous value. it's underperformed, they have underperformed over all in the mlp asset class last year. arp growing from mid teens to low 20% this year. it will distribute $2.50, big difference. it will give its investors $2.50 in 2014, 10% cap rate, $25 target price on that.

that's trading inline with its peers that are growing at low single digits. we like that good value, no commodity exposure, growth overall. e.t., the catalyst there -- >> don't tell me an aerospace company. we just had an aerospace company turning into an oil company. now you will tell me e.t. will buy a jet? >> no. but again, it's growth and distribution. e.t. is into the lng play so liquefied natural gas. another growth area mlps are experiencing right now. part of the talk today was going to be what's going on with the economy. the energy sector's booming. lng exports, there will be 25% demand from exports of lng. they are benefiting from a pure play mlp that will be adding $20 to $25, $25 to $30 worth of value to the stock right now. another 40% upside. >> got to leave it there. thank you very much. appreciate it. sandy, thank you. i will let you do that victory lap on conn's. we know you still like them. thank you very much.

up next, feast your eyes on this lineup. we are talking about pancakes, talking about pasta, talking about pizza. we have an exclusive roundtable with the ceo's of noodles and company, denney's and domino's. plus the biggest gainer in the s&p right now. and later, the next three big things in social media. plus calimari, anyone? the story behind the most terrifying video you will see today. [ male announcer ] start the engine... and shift through all eight speeds of a transmission connected to more standard horsepower than its german competitors. and that is the moment that driving the lexus gs will shift your perception. this is the pursuit of perfection. will shift your perception. thmortgage didn't start here. it began on her vacation in europe. someone stole her identity and opened some credit cards in her name. checking her experian credit report and score allowed her to better address the issue...and move right in.

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take a look at shares of game stock. that's a terrible day, in fact, the worst day for that stock in 11 years. the outlook, way below wall street expectations. it's the worst performer in the s&p 500 not only today but obviously early on this year. it's also one of the most heavily shorted stocks out there. they got burned last year. shorts clearly piling on today. pizza, pasta, pancakes. it is the ultimate food lineup. let's get to courtney reagan in orlando with all the ceos. courtn courtney? >> reporter: feast your eyes on this panel. i have here at the icr exchange kevin reddy, ceo of noodles and company, john miller from denney's and patrick,ly start with you because we ended on you last. let's talk about your online ordering system. i understand that quite honestly, streamlines

efficiencies and makes your employees less needed than before. how is that going and what does it mean for your cost? >> we are doing about 40% of our sales now on digital. really, the play for us is that customers are far happier, customer satisfaction is higher so retention and frequency of our customers is higher. it's driving top line sales for us. so we're continuing to drive innovations. we actually just announced last week a partnership with ford, you will be able to order over their sync system. we think as people are able to order any time, anywhere from domino's, it will continue to drive our sales. if we get efficiencies out of that, that's terrific but the real play is about the top line. >> a lot of states across the country are raising minimum wage requirements. what does that mean for denney's as both a business and as a business that serves consumers that are a little income sensitive? >> i think what it means is more

income. the more income, the more eating out and obviously, we are sensitive to how our cooks and servers and employees are doing. so to see them get a lift and see that translate into restaurant meals is a good thing. >> you're not concerned about the higher costs you have to pay to operate? >> we will have to deal with the cost but the other side of this is with a little bit of lift, there is also a little lift in the sense of prosperity. so what comes with that is as long as we're responsible in how we take price and do just enough to cover it but also then to give back in value, we think we will take a little less price and overall win in the value equation. >> kevin, if we could get to some news for you. you preannounced some sales. a little disappointing, falling short of wall street expectations. your quote, you said weather hurt us a little bit.

is that an excuse? did it really hurt you guys? was that all that happened in the quarter? >> we had a little bit of weather but part of the issue is we were a little short of revenue expectations. as we explained it and were able to share that that was partially a miss due to timing. we actually raised guidance after the third quarter on same store restaurant sales. we hit the high end of that guidance. we actually opened more restaurants in the quarter and year than we expected to. once i think the market digested that, you saw the stock respond today and you know, we traditionally deliver some of the top end results in the industry. i think we will continue to do that. >> if i can tack on to that expansion. are you looking international? >> well, we will open in toronto sometime this year. we have analyzed some other markets but we believe we are about 380 restaurants in the u.s. right now, we believe comfortably we can get to 2500. so we can't take our eye off the focus and discipline of growing responsibly and rigorously in the u.s. but yes, one of the wonderful things about noodles and pasta

is almost every culture in the world has a noodle and pasta dish that's core to their diet and tradition. >> true. speaking of diet, tradition, denney's traditionally breakfast. that's at least what we think of. talk about expanding the menu. you also have a dollar value menu, $2, $4, $6, $8 items. talk about the menu and what's resonating. >> what's resonating is a broader variety of options. in our history is this heritage of the american diner so we did a little work with our consumers in recent years to ask where do you want us to take this brand. breakfast all day is popular but is only part of the overall mix. our ability to expand and have more credibility with great burgers, shakes, pot roast, mom's cooking, grill and bar, we're not, and the ability to broaden into those areas you expect for lunch and dinner and sort of mom's cooking has been a big variety and frequency and broadening strategy for the brand. >> patrick, super bowl just around the corner.

domino's always sort of top of mind when you think about the super bowl. what are you doing to prepare with marketing and promotions? >> we are gearing up. it is a couple of hours there that are just an intense level of business for us. our stores are training now, getting ready. it is all hands on deck when the super bowl comes. we are adding staff. right now we could probably add 10,000 to 20,000 more people in the restaurants to deliver, to handle the kind of volume that's coming. and 90% of our franchisees in the u.s. started as hourly workers. so if people come in right now, get a job, they can work their way up through the system and that's our franchisee base. >> great. thank you all for joining us. i wish we could sit here for another hour but unfortunately we're out of time. thank you so much. back to you in new jersey. i do want to promote we are going to have christine day, the outgoing ceo of lululemon with us on "the closing bell." for now, back to you. >> three restaurants and

stretchy pants. nice segue. thank you. >> going to need yoga after all that. still ahead, one of herb's red flag stocks solidly in the green today. best performer in the s&p 500 right now. we will get his take ahead. plus, "shark tank" tuesdays. coming up, damon john joins us live. "street signs" back right after this. [ male announcer ] the new new york is open. open to innovation. open to ambition. open to bold ideas. that's why new york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no taxes for ten years...

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shares of intuitive surgical, isrg, surging on better than expected guidance for the fourth quarter. herb greenberg is here and herb, as you are want to do, you are saying this is not good news. this is simply less bad news for isrg. please explain. >> well, because you take a look at the guidance, the guidance is for a decline of 5% in overall revenues, but if you take a look at that, look, it's better than

the 7% decline, the quarter before, but it's nothing like the 22% increase a year earlier. that's sort of the story as you go down the line of all the components that make up that revenue at intuitive. so you have a situation that seems to have stabilized which by the way, you needed to see stabilization this quarter because you did not want to see another quarter this company getting hit as badly but still, again, yes, less bad. >> don't you discount the sequential improvement, though? because if you take a look at what intuitive surgical is going through say a summer ago, when the fda issued its warning, then in november i think, intuitive surgical came out with a warning about abnormal friction in some of its davinci robots. this company has been dealing with all of these stumbling blocks for so long now that sequentially it's getting better, isn't that not saying much at all? >> that's a great point. i think what you have to really see when these earnings come out, i wrote this morning the devil will be in the details.

what are margins in this thing, how are they getting hospitals to take this? intuitive surgical as i said 1,000 times is not going away. robotic surgery not going away. i would argue what we've seen here is a reset in the growth of this company as it goes forward because you still don't -- i still don't know and i have been trying to find out how are they handling marketing, have they cut back on marketing. so yes, you're looking at a situation that is marginally better but in a stock like this, in a market like this, hey, it's bid them up tuesday. >> well, yeah, i like your point. people say well, herb's negative on isrg. it's like you're saying that robotic surgery is going away. >> no, i didn't say that. >> exactly. i'm clarifying that. because i see the heat you take because when you have a momentum stock, people gamble, they put a lot of money into these names, so if you come out negative on them, you remember it was like apple during its run. god forbid you say anything negative about a momentum stock.

>> that's true. >> god forbid i say something. we're not here to talk about netflix. take a look at netflix. it's up today yet there was a court ruling -- >> i knew you would get -- okay, settle down. our audience doesn't know how the show is put on. you were screaming about this all day. we basically said don't talk about it and now you are. which is great. explain in 30 seconds what you're talking about. >> a court ruled this net neutrality, an open internet rule, that netflix has been lobbying against this type of action because it could result in costs for netflix or its customers to go up. anyway, what's interesting is, the stock is up, it's momentum day. we'll see how this all shakes out. >> herb, thank you. good to see you. herb greenberg. check out herb's full documentary on isrg online at investigationssync.cnbc.com. we talked about it a few moments ago. tesla stock surging about 12%. this programming note just in.

ceo elan must will be on "closing bell." that is a cannot miss interview. that's a big one. up next, the next big thing in social media. there are growing fears facebook losing popularity among the teens and we found out where they just might be headed. later on, forget the battle for your living room. it's an all-out war for you, your house and your car. we are digging into who is winning this fight ahead. first, let's get to sharon epperson for today's pump patrol. >> reporter: u.s. gasoline supplies are expected to have risen dramatically for a second week in a row and that's keeping down the price of gasoline futures. but prices at the pump are still holding steady. the national average price is $3.31 a gallon, right where it was a week ago. the lowest price for gasoline in the country is $3 a gallon in montana for the statewide average. there are no states below the $3 a gallon mark.

you will find the cheapest gasoline in the country right in the heart of the rocky mountains in montana, where you can fill up for $2.91 a gallon. that's today's pump patrol. you make a great team. it's been that way since the day you met. but your erectile dysfunction - it could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives,

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welcome back to "street signs." take a look at the biggest gainer at the nymx at the close, we are looking at natural gas up almost ten cents, around $4.37. we are looking at a big rise in natural gas futures prices because of what traders are expecting to happen on thursday. they're expecting to get a report from the energy department that will show perhaps the biggest withdrawal from storage for the season. you remember how terribly cold it was last week and that is going to certainly have had an impact on heating demand and the amount of natural gas used. they're expecting to see that big withdrawal and are covering their short positions ahead of that. we have seen that almost 10% jump from last week's low in terms of natural gas prices. back to you guys. >> thank you very much, sharon epperson. street talk time. microsoft up 2.25%, downgraded to neutral. >> it's one of these calls, they downgrade it but kept the target

at $35. citi citing high expectations for the new ceo. they say whoever it is, if it's an outsider, the stock should react positively. that's their view. who is it? can you tell us? >> intel, upgraded to an overweight from a neutral over at jpmorgan. >> nice pop for intel, up nearly 4% to $26.49. pretty honest call. the analysts saying he's making a leap of faith. the target goes up to $29. he thinks, cramer talked about it as well, the pc market could stabilize this year. >> the analysts on "fast money" tonight. take a look at cliff's natural resources upgraded deutsch bank from a hold to a buy. >> stocks up 2.8% to exactly $23. they think the iron ore producer will position for longer term growth thanks in part to recent deals. the average analyst target is $23. that's exactly where the stock is now. in other words, be careful. i hate to say it because in the "street signs" stock strap, this is one of the three stocks on my team. had a nice run.

>> you picked your team. did you? >> no. this was jeff's pick. then we had google and celgene. been a good run for the bulls. >> nice job. >> january 31st, we crown the winner. >> that's a good one. >> know my pick last year? best buy. if it had gone on another month, i would have destroyed everybody. >> stock down, jpmorgan downgrading the stock to a neutral citing valuation. tough run for stratus. >> upgraded to a buy at bank of america, merrill lynch. >> they don't talk at all, the brands are not well known. they are headquartered in washington, d.c. stock up 2%, you got positive analyst commentary. dhr, one of america's most secretive companies. i don't even know about them. they don't even exist. i just made that up. let's move on to talking

numbers. we hit stocks technically and fundamentally, we do it every day. today we talk walgreen, because it is teaming up with centura health to provide expanded health care services at select colorado walgreen locations. let's hit it. rich ross, john stephens, how do the charts look? >> walgreens is a very strong fundamental story. it's an even better chart. let's pull up that chart and i will show you why i think this stock breaks out to a fresh new high and moves even higher. back in december 2012, we break above that 150 day moving average and the stock has been on an absolute tear ever since then. almost doubling. you can see we formed a well-defined trend line on those pullbacks. now yes, we have run into resistance around 60, 61, but i like this 10% pullback to that rising trend line. we built a very nice base of support. now we break out and have established a bullish flag. that's a continuation pattern. it tells me that the trend should continue higher and a breakout is imminent.

you want to be a buyer in anticipation of that breakout. >> what does the centura deal get walgreen? >> it helps build their platform in health and wellness. they are building out around the pharmacy both in clinics and specialty pharma. this is really part of their program to be the first global health care brand, i mean a really strong platform. you look at this company fundamentally, it's doing everything right. five years ago, people pretty much wrote off management, wrote off what they were trying to do as just having no credibility. but they proved everybody wrong. last quarter, earnings were up by 24%. then you look at what they did, first of all they are getting a broader line of product. they haven't started tapping emerging markets. they are the largest purchaser of generic drugs in the world. and they are looking at being the most efficient supply chain in the world. they've got really, they are firing on all cylinders, looking at a billion in cost savings and they are ahead of plan on that.

clearly they are doing well. >> both bullish on walgreens. thank you so much. we appreciate it. >> the ceo of walgreen will speak with jim cramer on "mad money" tonight at 6:00 p.m. on cnbc. be sure to check out the online edition of "talking numbers" part of our partnership with yahoo! finance. go there, look for cnbc, click on that and click through to talking numbers. couple different segments every day. >> good stuff. >> i put in the work. all right. next up, the stock that could benefit if there's any changes to credit card security. think chips and a company that might benefit. plus yet another move by google to control you. and the young cool kids think facebook is so 2009. where are they hanging out? we'll show you but first, we'll show you what's next on "the closing bell." hey, guys. >> the other cool kids. yes. >> thank you so much. you have a name for facebook at home. it is? >> it's fogey book. we are 2009 in my household. >> there is new evidence coming up on our show that rising interest rates and new

regulations may be hurting the mortgage market. >> we'll find out how it affects the nation's largest original originator. we'll talk with wells fargo's chief financial officer. and we speak to the outgoing ceo of lululemon. she will talk about her next venture. plus, we just lined up tesla's ceo. he will be joining us live as well to talk earnings and the recall. whatever you want to call that. it's still the most important hour of the trading day. see you at the top of the hour. tdd#: 1-800-345-2550 trading inspires your life. tdd#: 1-800-345-2550 life inspires your trading. tdd#: 1-800-345-2550 where others see fads... tdd#: 1-800-345-2550 ...you see opportunities. tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 turn inspiration into action. tdd#: 1-800-345-2550 we have intuitive platforms tdd#: 1-800-345-2550 to help you discover what's trending. tdd#: 1-800-345-2550 and seasoned market experts to help sharpen your instincts.

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we know we're not the center of your life, but we'll do our best to help you connect to what is. i'm bethand i'm michelle. and we own the paper cottage. it's a stationery and gifts store. anything we purchase for the paper cottage goes on our ink card. so you can manage your business expenses and access them online instantly with the game changing app from ink. we didn't get into business to spend time managing receipts, that's why we have ink. we like being in business because we like being creative, we like interacting with people. so you have time to focus on the things you love. ink from chase. so you can. you'd do that for me? really? yeah, i'd like that. who are you talking to? uh, it's jake from state farm. sounds like a really good deal. jake from state farm at three in the morning. who is this? it's jake from state farm. what are you wearing, jake from state farm? [ jake ] uh... khakis. she sounds hideous. well she's a guy, so...

[ male announcer ] another reason more people stay with state farm. get to a better state. ♪ this company, verifone systems, p-a-y, top performer in the s&p midcap 400 index. jpmorgan chase upgrading the name. last week we talked about this. we said if there's any move to have to upgrade the swipe machines, because we put microchips in cards, this is the biggest provider of those machines. if retailers are forced to upgrade everything to get more credit cards secure, verifone could be potentially a beneficiary. jpmorgan chase upgrading the stock. guess they watch "street signs."

>> obviously. facebook shares up over 84% in the past year but there are growing concerns the social network has been struggling to keep its younger users engaged. where exactly are those younger users going? we have a look at three players that could be the next big social plays. julia? >> in the new year, we are looking for new ways to connect. three services are on the rise. we heard it is a photo-driven social network kind of like pinterest. it has the ability to collect images and follow friends and share with other members of the network. you heart something instead of pinning it. the service which has raised more than $8 million in funding now has 25 million monthly users, over 80% of those 24 years old or younger, with over 70% of its users on mobile devices. another company called jelly is also focused on images. it's a mobile app that enables users to ask questions to their social network through pictures,

kind of like a visual core for a mainstream audience or search engine where you ask other people for the answers. it is really new. it just launched on january 7th. but it has really big names behind it. its backers include jack dorsey, ed williams and bono. then there's medium, also co-founded by biz stone, but it takes a very different approach, rejecting character limits in favor of long form writing with tools to share, curate and find content. in a sign of how it could eventually make money, in december it struck a partnership with espn to build a place for soccer fans to read and write about the sport ahead of the world cup. medium is considering raising about $20 million which shouldn't be hard considering who its founders are and that financing could fuel its growth this year. brian? >> thank you very much. now, let us talk more about the deal that shocked a lot of

people yesterday. google paying $3.2 billion for thermostat and smoke detector maker nest. great products but they are expensive. what exactly is google doing? joining us, john steinberg, john forte is here. in the past few months, google bought robot companies, data intelligence companies, a wind turbine company. are they going to become the ad-driven behavioral robotic thermostat company in the cloud? what are they doing? >> in a way, yes. i think we have to remember still most of their revenue comes from search and remember, they got their start on desktop search. not a lot of growth in desktop search. we have seen the pc numbers coming in. they have to try something in order to get growth. people called youtube which was $1.7 billion a bad investment for a long time, took awhile for them to make any money out of that. now they're making lots of money. i think larry page realizes they have to think big, think wild. >> i have a nest product.

>> that's a gateway product. the smartphone is the remote control for your life. that is just one aspect, one thing you can control via this thing. >> they are not done. tony fidel says they want to be in every home and have a lot more than thermostats and smoke detectors in mind, figuring out how hot it is. >> if google buys lululemon, then i will be afraid. >> it's not just smoke detectors and not just -- >> no, it's awesome. google makes us. we are the product. we work for free for google. >> no, it's the home automation company that they are acquiring. they are going into that now. if you look at what google has gone into, it's desktop, mobile, auto, having google maps. homes is really kind of the next platform to go into. we want companies to invest and use their cash. >> they got us in the car and will have us at home.

>> you are sounding like a conspiracy theorist. >> i'm not. it's not john steinberg, not just google. i'm saying when you look at all this stuff, at some point you got to realize we are the product. google doesn't sell anything. >> we already are, brian. >> we put videos on youtube for free. >> pretty clear they are not going to use this data that way. ultimately, we want this company to go into other things. we want our companies to invest. google throws off $5 billion in cash a quarter. they are sitting on $60 billion in cash. we don't want them to be like apple, just hoarding cash. we want them to invest, we want them to do more with the money that we can as individual shareholders. this company is going to be the conglomerate of our era. they will transform how we live our lives and how we use our mobile devices to control everything. >> at the same time, how concerned should an investor be that google will now be the subject to some sort of investigation? it makes great headlines in washington for senators and congresspeople to be concerned about the privacy of the

citizen. >> very concerned in this broad sense. we don't know of any specific issue that's come up yet. but now they will be in your home, a fixture in your home in a very different way, and the privacy implications also different. i have seen people on twitter today saying now that google's in this, i don't know if i want this in my house. >> listen, john, this is true. i bought a nest thermostat about six weeks ago at an apple store, right? i have not installed it yet because i'm afraid to do it myself and i have to get an electrician. i'm thinking about returning it. >> yet you use google maps. >> no, i don't. >> never? >> do you have location services on your phone? >> i like the new mapquest app. >> do you have location services on your phone? >> i have them enabled -- no, no. no, no, for some things, i selectively go through. >> do you leave wifi on? >> no, i do not. that's how they get you. >> you are protected. >> i'm not some whacko. >> what i would say to people covering the space that are worried about the privacy

concern, if you read the book "the circle" which is modeled on google, it's terrifying. i think that's a case where a fiction novel could have big influence on public policy. that book is pretty moving. i'm kind of surprised it hasn't gotten as much attention, to be honest with you. >> i use ways, the gps thing that cops hate which is fantastic. so they know where i'm going. i'm not picking on google. the reality is i don't want -- >> make it convenient for yourself. >> i don't want google to know i'm doing 82 in a 65. >> we all know you're doing 82 in a 65. >> now we know. >> i'm doing 64 in a 65. >> look, one more thing i will add. i think this company has been great at acquisitions. youtube is one of the great acquisitions. >> undoubtedly. because we put up our product for free, which is us. >> i can't win on this one. this company has transformed our lives. this will be great, home automation. it will get a lot cheaper. chromecast is less than $30, now you can sling video to your tv. hopefully the nest will be $50

now. it will go down. >> two or three companies in existence could afford to make this kind of acquisition investment. if they are right, they will be in rarefied company. >> i'm not picking on google. this is what happens. >> john and john, thank you. tonight on "fast money" we'll have more on the smartphone -- smart home, excuse me, be speaking to the ceo of smart things, alex hawkins. in case you want to ditch your nest. >> that's all right. let's tease it again. elon musk coming up on "closing bell." tesla knows how fast you're doing, where you're going. that's coming up 3:30 eastern time. still ahead, it is "shark tank" tuesday. >> we are looking at one of the most successful sharks in the sea of commerce. daymond john is here. why he thinks 90% of companies fail the first year and how to

keep your name off that list. very happy to have him here on "street signs." h, fifteen minutes could save you fifteen percent or more on car insurance. yeah. everybody knows that. did you know there is an oldest trick in the book? what? trick number one. look-est over there. ha ha. made-est thou look. so end-eth the trick. hey.... yes.... geico. fifteen minutes could save you... well, you know. ♪ stacy's mom has got it goin' on ♪ ♪ stacy's mom has got it goin' on ♪ ♪ stacy's mom has got it goin' on ♪ [ male announcer ] the beautifully practical and practically beautiful cadillac srx. lease this 2014 cadillac srx for around $319 a month

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if it's tuesday, it must be

"shark tank" on cnbc. so what does it take to get a shark to invest in your business or idea? let us bring in damon john, not only a tv star but the founder and ceo of fubu which is why he's now a tv star and multimillionaire. thank you so much for coming on. >> thanks for having me. >> the statistics are ridiculous. 90% of new businesses fail in the first year. >> yeah. >> why? >> you know what? i think a lot of new businesses really suffer often from over funding. i think they go out there and raise capital -- >> over funding? >> they mortgage their house. you have a bakery, you mortgage your house for $100,000, but you didn't sell one cupcake yet you build a beautiful great bakery and all these other things and you didn't work out the business just yet. i think at love times overfunding and it's a lack of financial intelligence, a lack of the business when they just think because i can make cupcakes, i'm going into business. >> so have you ever invested in a business that's under a year old or do you have to see that benchmark passed? >> i generally like to see the

benchmark passed. the businesses i have invested under a year old were all my own and i failed at half of them myself. i like to see the entrepreneur themselves have learned, they made mistakes and the business is scalable and they have proof of concept of sales that are out there. >> you often hear successful people say they learn more from failure than from success. is that true? >> absolutely. you know, i failed way more than i have succeeded, and when i finally did make enough money, i thought i can buy the world and buy all these companies and i failed at almost every one of them until i sat back and i said, what were the fundamentals that got me here? was it back office, was it distribution? was it the financial structure, great partners? then i started to learn and make money then. >> what does it take to get your attention on "shark tank." obviously, people come in and they make these elaborate presentations. sometimes they hire actors and -- >> some of them are terrible still. >> and then there are others where all the sharks are jumping in. >> i think, first of all, it's the energy and the person who is

pitching because you want that person to be your partner regardless of whether the business works out or not. you will always have the business with the person. also do they have something that resonates with you? do you see a need for it in the market? third, does it fit your portfolio or skill set. lori and some of the other sharks have done amazing things with products i thought were the worst idea ever and vice versa. >> that's what's surprising. some of the stuff you go for, i'm like they're never going to go for that. and then some of the stuff -- >> that's why you're not a shark, brian. >> clearly. >> sorry. >> that's true, to my untrained eye as sandy might say. it's surprising what you might pick. >> lori picked this thing, it's a little pin that you put here, you put your eyeglasses in. i made tons of shirts with that hole. lori sold about $4 million worth of that crap. >> is that what that hole is for? >> to put your eyeglasses -- >> i had no idea. i don't wear glasses. >> i'm telling you now, i thought it was garbage, but

maybe i'm the moron because lori is $4 million richer right now. >> she knew how to market it. >> she had a customers and she pushed that thing. >> we were talking about you have $4 million invested in various "shark tank" ventures. and you have exited one. do you find maybe there is a market, things are getting better? >> i find licensing tends to be better. exits that used to be five years are now seven and eight years. we're fortunate enough here to have a great exit with kevin o'leary. the licensing is a better format. i have never been great at big exits or going public. i like to work every day for 10, 20 years. >> you get too much credit. your mom doesn't get enough credit. >> we're not going to get to these. >> that's awesome. >>e tonic. >> that's old school. >> 1877. we're bringing thm back out. >> were they gone?

i haven't seen those shoes in 15 years. >> now they're cool again. >> arnold palmer used to wear the shoes and you. that's my new venture. i'm always pitching. i'm putting you on "shark tank." >> and a shout out to your mom who gave up in the space in her house when you started. >> thank you. tonight is, of course, "shark tank" night on cbs. it's a ma -- cnbc. get your popcorn ready. >> by the way, stocks, session highs. we are down yesterday. we're basically giving it all back today. up 99 points on the dow. the s&p and nasdaq is higher. it's not been a great start to the year. >> coming up next, we're going to need a bigger boat. details on this frightening catch next. legalzoom has helped startr ] over 1 million businesses. if you have a business idea, we have a personalized legal solution

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if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom. a told you giant squids. this is amazing. a japanese fishing crew hauling off this beast. i'm obsessed with giant squids. i don't know if it's singular or plural. squidi. >> if you're on the radio go to the thing known as youtube, perhaps, free product it is, look at the giant squid. these things are almost never seen in the wild. >> do they eat it?

>> i think the fisherman killed it or it died on his boat. >> tragic. and then you eat it. >> i don't know if you eat it. >> it's like a waste of 360 pounds of squid. >> somebody call moby dick. they fight it out, whales and giant squid. thanks for watching "street signs." >> i'll see you tonight on "fast." "the closing bell" is next. >> i'm kelly evans at the new york stock exchange where we've got a rally. >> we do. i'm bill griffeth. with an hour to go you would have to say this is an encouraging stock market so far especially after that deep sell-off we saw yesterday, the worst in three months, and now we've come back especially the nasdaq has gained back most of what it lost yesterday. >> i think we were down 61 points yesterday. we're up about 65 now -- >> net positive. >> it's a springboard and you have to wonder what that's going to make a lot of bears, hedge fund guys, people sitting out of