Also in this playlist...
This transcript is automatically generated
Well it's the tale of two tech companies won't look like it's gonna come back through all the other while so much.
FaceBook raking in nearly one point six billion bucks -- revenue last quarter and now slightly higher than analyst expectations.
Bush shares of Blackberry plunging after the bell what it had hoped would be -- saving grace.
New software and a couple of new phones the Bob okay.
Months and -- what it takes for the company to survive.
I don't know I'm gonna say a very unimpressive bomb conference out of Bob Blackberry today and obviously -- the Wall Street that like it either.
But Charles it's just sad tale you know if you go back to 2004.
This company was.
Getting a great start the stock price was thirteen dollars a share.
Or early 2008.
It was a 130 dollars a share today it's around thirteen dollars this year and falling fast.
That the core problem is that.
What they just announced should have been announced in 2007.
Or -- Turk or early 2008.
There are way way late in the business.
They didn't completely missed technology inflection point namely touch screens and and -- and the -- so it's a sad tale.
So lay there.
By by Bob map there there about six years behind is it to look -- -- finally get a look about it.
-- -- look at that look at the CEO I mean it was out of the Mel Brooks you know western comedy and where you have the German.
Coming in on the horse just talking about his Zetsche did ten.
Hi -- just from a more of us a social perspective vs just the analysis here.
They are absolutely out of touch and even though they -- the product six years to ladies are the guess is said.
It's it's heated they did describe it is isn't this exciting and it's not exciting said the real hope right now for the -- value players I am not one of them but those people who are bottom fishing is it.
People who still have a Blackberry that's getting -- it's about -- break that they're going to replace it with another Blackberry or the at least half well the problem -- when you look at that free cash flow.
Going now -- years.
234 years from now.
I don't see what we have I think that you know I've got -- CPA he's an old guy loves his Blackberry this is -- breaks I promise you he's gonna get -- -- As you know Bob is -- you're saying because this is also -- cautionary tale about management.
I remember when they used to brag about having co CEOs you were clo markets.
I I think this might put the bad the notion that you can have.
Two CEO then and then and everything and be sanguine about the world.
Absolutely they waited way too long to take some action in regard to those two guys who simply watched the world go around for 56 years.
Secondly the brand is tarnished the brand is old buying a Blackberry today as like buying a Buick let's face it.
Typically the drivers of a Buick.
Or about sixty years old no offense to -- drivers but the fact is that's the reality of the -- and the Blackberry brand is fairly sick at this point.
Well let's shift gears then have to have that at the Blackberry is that -- Buick -- with FaceBook being.
I think that frankly it's still on the up production line.
And one of these days -- gonna come off the production line and I say that because.
Here's a company that generated 40% increase in revenue which is terrific.
But the costs were up 67%.
They're still under construction so to speak.
Pay a billion users that's very impressive they ought to be able to make something out of that.
A PE ratio about of a 160 very very high so the expectation is high but.
You know my problem with FaceBook is that.
It's not a natural setting for advertising that the Google search engine is a very natural setting for search engine.
You start looking up things about cars because you're thinking of buying a car.
They see that immediately and over on the side -- the you have.
-- badly this same thing because they're running out of time and -- you know we see Amazon.
Has rewarded handsomely for it may be having great potential -- that's really for the numbers they delivered.
But for the potential.
Can't FaceBook did and that's sort of -- and they start to convince Wall Street they hey we've got a billion eyeballs to Bob's point immoral gonna learn how to monetize them.
No because for the very reason the box talking about we are uncertain that they're gonna be able to do that in this market space going -- knock it could be with cool.
In that basic web search how would you go anywhere you get all that advertising dollars it's going to be on the mobile -- so now what we're seeing is analyst you know they say we need to have 20% increase in revenue and mobile -- and then these are they -- twenty or thirty.
That we have the whisper number.
That reminds me of twelve years ago I'm too old for that crap of of whisper numbers they need 40% year over year quarter pro growth in that mobile -- they're not can deliver.
Think of apple and how they failed on the map cap because they did have the infrastructure and the money of the Google Maps for reason.
Because of their business wasn't -- -- that way.
I would love to see FaceBook successful help the people who got burned from the IPO can recover their money but right now you take it quarter by quarter it's a speculative play.
I don't see if not an Amazon.
Gentlemen you guys are fantastic Bob so far you've got the line and -- night with the -- thing although -- came close a couple times thanks a lot of take care sorry guys holy dip there.
Filter by section