Transcript for Facebook Hits New Low; Starbucks Drops
-- -- -- this Friday July 27. Hello everyone I'm Tanya Rivero in New York futures -- up again this morning following yesterday's giant jump. Back again this morning to talk about the top business... See More
-- -- -- this Friday July 27. Hello everyone I'm Tanya Rivero in New York futures -- up again this morning following yesterday's giant jump. Back again this morning to talk about the top business headlines at this hour is Aaron task host of the daily -- on our partner Yahoo! finance good morning Aaron. So it looks like markets are headed higher again this morning that FaceBook stock is down about 9%. In the wake of the company's earnings reports. What do you make of that report. Well it's pretty silly for FaceBook at the same in the -- -- the numbers themselves on the face weren't that bad and in the revenue growth was pretty decent -- -- billion dollars. Which was up over 30% from year ago the problem is. That's -- slow its revenue growth they've had in several years. And so they've said that they're gonna continue to spend a lot of money that -- and create new businesses and generate revenue but right now. Wall Street via Wall Street's very impatient they want to see the growth now. They don't want to hear that FaceBook is spending for the future in making the right strategy long term for his booklet. For right now that the -- does not like it at all so do you continue to see -- -- Yeah -- -- -- means clearly it's going lower today. You know hear people talking about the stock go into the teens and and it's you know it's -- One of the worst BI PO -- ever in terms of aftermarket performance in its. I don't see anything in the near term that's gonna turn stuck around and mouse because it's still not -- that the problem is to achieve stuffed. Split the bigger they aren't a part of -- -- -- -- out in the past hour a new testament of the GDP it came in at an annual rate of one point 5% what does tell us. About whether the country might be heading back into recession. Well the amazing thing is that one point 5% was actually better than people were looking for so there was a little bit of like oh great one point 5%. That's terrible -- -- 5% is barely growth at all especially given that the level unemployment we -- have. You know I don't know whether or not where to go back into -- technical recession. But it sure feels like getting clearly we've slowed. The economy grew 2% in the first quarter that was revised up today by the way so get a little bit of like -- isn't -- -- but it's 2% -- -- -- -- at least. -- -- plus percent he did feel like we're making positive -- on the jobs front so this is not is not a good number off. And yet it seems like there is no really. Good new is on the rise I mean it it didn't serve feels like we're gonna stick here for a -- Well unfortunately that there is no good news and -- -- -- in terms of policies coming from Washington that might actually do something about it right now there's complete dysfunction. And Washington if they don't do something they're gonna make things worse for this fiscal cliff that's coming -- the end of the year. And I certainly hope and I think most -- believe -- they're gonna come up with some -- -- the you to avoid that but it's a risk right that's out there that I wouldn't give them too much credit that they're gonna do the right thing. Not right now look at Starbucks was -- went down about 10%. What's going on with Starbucks. And Starbucks they miss them in their their earnings were weaker than expected and -- guidance. For the current quarter was bad as well I mean they are just feeling the pinch. Of consumers who are pulling back and any -- -- ties directly to the economy's -- one point 5%. Job growth is is pet. Is puny at best and so people are saying do I need to go to Starbucks. Cappuccino at six -- -- Tina exactly anything can and -- -- -- get a cup of coffee for a dollar nineteen or whatever the cheapest one is but. It was cheaper at McDonald's -- is cheaper Dunkin' Donuts for just the regular coffee so people aren't split urging. I'm and Starbucks is definitely feel -- them. Fancy coffee is sort of a sign of the times right. -- -- -- -- -- -- -- -- -- Earlier this week apple came out with some disappointing earnings that now comes word that Samsung has widened its lead in the Smartphone wars. You think apple investors should be concerned. Well they should be concerned I don't think they should be nearly as concerned as -- FaceBook investors. Mean apple again the stock price is very high -- but relative valuation basis it's still relatively cheap. Considering how fast apples growing and how much money they have in the back so. And I don't think there's a huge amount of downside for the stock but the company. There they'd been slow in this upgrade cycle. You know and they can the iPhone four and then it was the iPhone four -- and they're sort of that half step to the iPhone 5. And in the meantime Samsung has come out -- the galaxy three. It's -- -- for a product that people really like the android platform. You know is this serious. -- -- you could argue whether it's better or not the net capital platform but it's really good so right now Samsung. They are the darlings in that space and people are looking and apple amazing -- it will what are you -- for -- lately I do you think. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- It is my exams on the certainly putting up a good fight you know that's for -- I just want to point out that is the stock is down to 23 dollars a share -- I guess -- its lowest point. That is yes the lowest yet so I don't think it fortunately it's going lower still. And so you -- right about that Aaron -- -- but yet we take a look at we take a look at the boards and we still see that marked up about -- 53 points I guess it's not having too much of a -- yet. Yeah I mean based FaceBook we all know it we all talked about it because it's a -- who uses but it's it's you know very small. Relative to the whole market which is treating on that stuff that's coming -- Europe that we talked about yesterday. With your -- are saying we're gonna get our act together and a market likes that at least for the moment all right Aaron task thanks so much for joining us this morning thank -- --
This transcript has been automatically generated and may not be 100% accurate.