 the founder and owner of the stocks. We should great to have you with us as always. So stocks you're closing third worst day here for the down three years prolonged global economic slowdown potentially. This is the fear that has been spreading through the markets today from the coronavirus spreading. Do you feel like as Nora had mentioned this is an ephemeral issue or that we will see prolonged period of these declines going forward? I think right now today everyone panicked. But when I look at the actual trading on the live day from the time we opened up 430 into the close the market held on really well. Now while it's truly opened down from Friday we gapped down pretty big this morning we didn't have a massive sell-off and I would say that's a good sign from markets. Markets are trying to stabilize or trying to hold up. I think between now and tomorrow morning it's very critical for the market. If we can gap up and open up virtually anywhere tomorrow and rally then this will be a short sell-off that will not last. Not that we wouldn't see another sell-off day from virus fears but that I don't think this is going to have the massive move down that some people are expecting. So aside from the coronavirus so there were already concerns from investors and analysts that tech is overbought for example. Is this a turning point? Do you think for investors to kind of realize the overvaluation of certain sectors or to your point do you think this is just kind of a one-day thing a one-day slide? I definitely don't think tech is overbought. I mean if you look at Apple, Apple had earnings didn't pop to make new highs in the earnings but really didn't have some blowout rally on the earnings. Apple is due for a nice rally. Apple is strong. Amazon had a blowout number in the earnings to think that Amazon is going to fall off a planet is crazy town to me. So do I think that tech is overblown? No I do not and when I look at everything in the market even the banks today which fell with the market everything seems very very strong. When you have a market that's continually making brand new all-time highs you can't expect the market to rally every day you can't expect new highs every week and we've got in that period where we've gotten complacent we believe that we're going to have new highs literally almost every week and that's not reality and the reality is that while we are down for the year for the calendar year for 2020 in the Dow from the open until today's closed we're only eight weeks into the year so that's really not that if it was May I'd have a different opinion but it's eight weeks into the year and actually we are not down in the year in the spot and we're not down in the year in the Nasdaq. Yeah absolutely I want to put a pause on this Melissa for a second because we are getting confirmation that Intuit will be acquiring credit karma. We had seen the Wall Street Journal come out with a story seven billion will be this deal cash and stock and expected to be neutral to accredit according to Intuit to their non-gap earnings per share. We're watching of course markets here close here on the day it has been really hard to look at how Intuit investors are looking at this especially because of the declines that we'd seen broadly speaking but we know that it's a significant acquisition for Intuit given that this would give the company much more data and many more customers as well for them to sell into with their tax services and products as well but this now coming out confirming the reports that we had seen here earlier in the day. All right so the purchase price we'll get to that. All right Melissa I think you're still back with us I don't know if you want to comment on this at all but I think it's a pretty big deal what do you think? Well I think the stock looks like a good buy if it gaps up tomorrow morning it's at five dollars here on that news if it opens right around the 20 period moving average tomorrow morning with the market this could be a good buy because again this is not that far off the highs the last brand new long-term high this stock made was in the last week over 306 so although it sounds expensive even buying in here around 292 where it's trading right now you know this could still rally and make a new high pretty quickly especially if it has some bullish moves in the market tomorrow with it as well and I'm seeing Shack just reported and Shack is tanking as we speak here right now this one's down wow is this tanking this is almost down 10 points yeah we'll hit on Shake Shack um actually you know let's hit on Shake Shack right now since you brought it up um I think one of the more shocking numbers that I'm seeing right here off the bat is the same sort of sales falling 3.6 percent we know that was a weak spot for Shake Shack in the last earnings report as well and gave investors a little bit of pause Melissa what do you think is the biggest takeaway here from Shake Shack and why are investors so nervous about that foot traffic especially for Shake Shack? Well when you look at the market again which has been so strong and you look at Shake Shack even in the last three four months since the prior earnings the one before this one back in November you see now this stock is nowhere near the highs this stock is not trading bullishly this stock looks like it's lower could even break 60 right now it's trading down around 67 last annual time highs on this was far far away back in august around 104 so I don't you know this no one's really been buying this in the last few months and when you have such a strong market and you have a stock that's down like this for this this really could have gone so easily up tonight on earnings just said even at 80 would have been a beautiful buy for this to run up but it isn't doing it this is tanking I would expect this lower to matter no matter what the market does yeah and I think the fact that same store sales you know as Nora mentioned at 3.6 percent decline is as really significant here what do we think are the reasons that the same store sales fell so significantly in a very important again holiday quarter we're still getting into the last innings here of the earnings season for the fourth quarter I mean you're supposed to be going to the mall during the holiday shopping season you're supposed to be eating at the mall you're supposed to be having some snacks as you're at holiday shopping and this was a pretty disappointing 3.6 percent decline I don't know in New York people love Shake Shack I don't know if you've ever been to the yeah I mean there's like a line around the block which the first time I went there I thought was hilarious so if you're in New York City you love Shake Shack people go there like 24 hours a day but the reality is that most people now are trying to eat healthy I mean when you look at Beyond Meat and you look at Shake Shack Shake Shack has to do something to start they have to offer some kind of product here now I think to compete that's going to put them in a different arena to improve things I don't know what that is you know but I will tell you that when you look at Beyond Meat and then you look at a Shake Shack you say okay people are gravitating more towards not eating meat personally I like meat and again people in New York City love their Shake Shack hamburgers and but but for for the sales to be this way is not good and they need new marketing or some new products yeah they're also trying to leverage delivery more creating a partnership with Grubhub using Grubhub as their exclusive delivery partner but taking a look at some of these results more specifically on earnings they did beat expectations coming in at 6 cents per share but then on revenue that was a slight miss 151 million versus 153 million expected as they're investing more in delivery which we know is lower margin it's going to cost them more to deliver your burger to your door than for you to go into the store and pick it up what number what metric are investors going to be more focused on if we're seeing this weakness in same store sales maybe their maybe management is relying on that delivery number to tick up which also could eat into margins as well so what should investors be looking towards I don't think necessarily everybody using delivery services people think of pizza for getting delivery people don't always think of delivery again if you live in a metropolitan city like New York Los Angeles you might do a lot of the delivery services but that is not going to make or break your numbers you've got to have across the board people using the delivery service all across the country and I just don't think we're living in a society where you see that necessarily people like the drive-ups they like the drive-up windows and for delivery they like pizza and again like you said there's an added cost to having it deliver it and right now people are they don't see what's special you know Starbucks Starbucks is like oh there's something special to the coffees that's why people pay more for shape shop they need something special that's what that's where there has to be some kind of thing that makes it exciting some kind of marketing thing or some kind of stick like a commercial like with a peloton a peloton earlier it's peloton peloton peloton at night without saying a peloton commercial yeah shake better marketing full stop right it's as you mentioned though people who like it like it they know what they know what the portobello you know sandwich etc uh hp i want to get to this really quickly the company coming in with adjusted earnings here of 65 a cents a share also announcing 15 billion dollars in a repurchase program for the company which is absolutely huge earnings coming in as i mentioned 65 cents adjusted and then revenue on the top line coming here in line with expectations 14.6 billion the estimated was 16.63 billion now i will say this is lower than what they had seen in the prior year which was 14.7 billion in terms of revenue here for hp let's go check on how hp shares are doing after hours here on this a bit of a you know i would say a pretty decent report um the company also saying they're reaching out to xerox to explore if this combination creates more value we know that xerox had tried to at least put out a hostile bid for that right now melissa what's hp doing right now after hours and what do you see for this company going forward i think right now hp is up and a lot of bottom feeders might want to be buying this here on the dip here and now it's rallying today but looking over all the stock and the look of the stock to get a more technical analysis person the stock is still in the downtrend the previous highs in this were 10 years ago back in 2010 this stock is a long way from being a buy to me it might rally tomorrow for market rallies but i wouldn't go along this tomorrow without the market this is a long long long way to go and this this still might have some kind of takeover that might occur in it in the next 12 to 24 months i don't i don't think today's earnings and this rallying here right now tonight is going to save this chart yeah we're seeing some opposing factors for hp overall and on the one hand there's a relative strength in the commercial pc market they're a big player they're only second uh to lenovo when it comes to pc vendors regional strength as well but then some weakness in the printing business for example um especially for the home market hope i mentioned uh this this partnership that they had been discussing with xerox are reaching out to xerox to explore if there is a combination that creates value for shareholders as additive to strategic their financial plan do you think consolidation in this space is going would potentially be good for hpm xerox and to overcome those challenges of trying to get in market share some of the other players in the space i think it would be good for both companies for the consolidation i mean again you have so many different companies out there competing and again if you're if you're if you're using these products and services you're competing against the microsoft's the adobe's you're you have such big competitors now that's one of the reasons the stock has been almost in freefall for the last ten years you've got even even best buy you could even count them i mean when when you have uh retail out there selling different products like this at cheap prices and again there's no innovation going on here and that's where a partnership could really a good partnership a strong partnership can help a company like this because it helps them to innovate and also tighten up then on expenses because obviously this this company has taken a loss i didn't see you here exactly what these earnings said but this isn't exactly what i'd say would be a blowout earnings it's a slight rally up but it's got a long way to go i wouldn't i wouldn't buy back in this stock until it gets over 35 and the chances of that happening even in 2020 are slim to none without some kind of some kind of takeover or our combination deal that could happen right and and some have said that you know obviously these are two weak companies trying to come together and make something out of you know what are both declining businesses uh you know it's a wonder what they could do together and a potential quote unquote synergies as these companies like to say um all the time okay great stuff uh melissa still just recap here we got the final news coming from into it they will be buying now credit karma shake shack uh you know really disappointing with their earnings coming out uh and then HP which on the result side of things are pretty decent but nothing really to write home about that's right all right we're going to leave it there with melissa let's armors the founder and owner of the stock swoosh