is also because we had had a massive earnings miss from google both on earnings and also revenue which obviously sent shares down by 9% before they were halted. google has been saying that they expect those shares to be trading once again before the end of the trading day. but at this stage they are still halted down by 9%. we have jon fortt, kayla tausche, anthony diclemente, a analyst at google. i'd like to get to anthony. what's your thought on this issue? >> look, i think that the circus surrounding this prerelease is going to foreshadow the fundamentals. but when you look at the numbers, a lot of the miss was driven by motorola. i think that investors in google are going to stay focused on the core business where if you look at units of clicks, we're up 33% in a quarter. that's a good number. if you look at cpc declines down 15, that's a little bit better than last quarter. i know you're talking about the magnitude of the miss, but i

would say investors in google would ascribe a lower penalty on a miss that was related to motorola mobility. if you look at the mauultiple, still think google's worth more than $800 a share. >> but here's the thing. doesn't sound like you believe the numbers to be that bad. so how much of the giant drop in google shares that we saw right after this was related to the fact that the earnings came out early. no one knew what to do and they panicked because it came out early, not because what have was in them. >> i'll answer your question. i think it is about half. i think that if this was released normally, the stock would be down 4% to 5%. okay? and i think that because of the nature businesof the prerelease down by double. that's my guess. if i think about the fourth quarter and what's coming, look

at the ebay performance today. a lot of that is because of fourth quarter guidance. ebay talked about weakness in europe and in the month of august. remember, google is an e-commerce related name. at least one-third of the business is related to e-commerce. you've got product lifting ads which is a fundamental catalyst in the fourth quarter nap should hold google and hold all of e-commerce together. >> okay, anthony, as you said a moment ago, just to reiterate for our viewers, you still think the stock at 6$687 is worth mor than $800. jon fortt, give us your take. still a lot of questions that need answers. what do we know? >> as you kind of recapped up to this point, we know that -- first of all, i haven't said this yet. from my conversations in the financial community, google had been calling around for the past couple of days trying to prepare analysts for this report not to look so great, trying to steer their attention towards certain numbers that might not make this look as bad as it does right

now. so the fact that they knew that this report was going to be an issue, combined with this error apparently on r.r. donnelly's side is creating quite an issue for them internally. we know that this of course -- this release was put out on the s.e.c. site. the stock down 9% before it's halted. in terms of the areas of weakness, the core business does show some weakness. it appears to be related to mobile even more than emerging markets. mobile we know that there's a cost per click issue there. even as they end up with more searches, more activity on mobile. it's harder to monetize. also, mobile related on the motorola mobility size. the loss there continues, not just in the cell phone side but also in the home business which includes set-top boxes. overall this cost issue, google trying to take advantage of growth in mobile, trying to grow market share there through not only android devices getting more searchs there but also through acquiring motorola mobility but there's an open question about how much that's

going to cost google in the near turn and when the business turns. google up to this point has not told a story about mobile that lines up with the results that analysts have been seeing quarter after quarter. that's where i expect the thrust of questions to be. you said with google cost per click had something to do with emerging markets and it being lower there, then it said something to do with mobile. now we see that continue to be a pressure issue. analysts want to know where this story ends. >> the full 30 earnings -- conference call hopefully will give us an answer to some of those questions. >> the point is this -- cbc decline of 15% in my opinion is driven by three things. one is emerging markets. two is fx impact and three is mobile. those three things if you think about it are sort of shorter term. emerging markets as a new part of the mix is only going to grow and mobile when you bring in tablets, a lower discounted item

than desktop. costs will mitigate over time. traffic acquisition costs was up just a little bit quarter over quarter and year over year. we think most of the cost miss is from motorola and i think that's a lower multiple business. >> their tax bill also surged, did it not? >> i didn't look below the line. >> it was $1.33 billion versus $286 million in the year ago quarter. >> i take your word for it. i didn't look below the line. investors are going to be focused on revenue. >> no worries. we'll dig in here, anthony. thank you. it is a big day on cnbc. let's welcome in michelle leader. harvey pitt joins us. if i spend the time introducing everybody else we won't have any time left for this show. michelle, first to you. this is what you do. you're the best in the world at it. how does a filing screw up like

this happen? >> companies get these -- the filing agent can get the filing in advance. earnings release in advance. and obviously what happened here is someone pushed the send but the an little bit too quickly. they're supposed to get approval from the company. in this case google before they actually send it out but that didn't happen here. >> you don't think there is any possibility it was a disgruntled employee and this is purely a mistake? >> i would have no idea if it is a disgruntled employee. they did merge with another company a couple of years ago. it could be anything. but i would say it is probably just a mistake. >> to mandy's point, because this is what you do, you track this kind of stuff, how often does this kind of thing happen? >> it is very rare. i can't think of another instance where this sort of thing has happened. >> michelle, this is herb. kudos to you because you're the first person to have spotted this. i want to ask you this one thing. you toll me earlier that these third party filers are a remnant

from the past. and that companies like halliburton and southwestern are doing this on their own. so why aren't more companies especially google doing this on their own? what's holding them back? >> it is very surprising that google isn't doing it on its own. you would expect that a company like southwest and halliburton can do this on their own, that google would. i mean, geez, look at what they do for a living. right? two seem like a very easy thing for them to handle. it is not really clear to my why google wasn't doing it on its own but i can bet that they're likely to do it on their own going forward. >> there are lots of people i could ask this question. maybe everybody's got a thought on it. i would really like to know what happens here in terms of investor resource. i would imagine there are a lot of people out at lunch and they come back and they're like, oh, my god, look what happened, google came out, it was a big earnings miss, i completely missed it. is there any liability in terms of investor losses here and is there any resource? jim, do you want to jump in on this one? >> i have no idea on that but i hope there would be. i was just talking to some guys

i trade with today about how, if you were mulling around putting on some options positions to cover your google position going into earnings, how you'd feel about this. i would want someone to swing. i hope there is because there has to be some accountability here. >> harvey pitt, former chairman of the s.e.c. is on the telephone! works great. harvey, let's ask you. if i'm a google investor, i was out at lunch,ky sue r.r. donnelly? >> you know, there's an old securities law saying if you snooze, you lose. and by and large, there's no legal recourse as to the time when companies put out their press releases. they do it when the markets are closed to avoid exactly this kind of problem. as to whether there's liability, if this is inadvertent and a mistake on the part of donnelly, i think investors are going to

be upset but i don't know that they will have any claims against google. >> sound like you're saying it is just bad luck. that's what happens. this is life. but at the same time, isn't this going to be a massive knock on investor confidence. this is just another thing that makes them think, do i really want to be involved in this market? >> that is the bigger, more relevant point. it is a question of how well we are policing the use of te technology in our securities markets and i think this is another example of how poorly we are managing the use of technology and it is startling

from a company like google whose living is technology. >> let's go back to the liability issue. r.r. donnelly's liability is $2 billion. the losses will be a lot more than this. they'll argue for legal reaction. they're going to sue rrd. what's going to happen? >> well, i think if they wanted to sue -- and as i said earlier, i don't -- i don't have a lot of respect for cause of action here. if it was inadvertent. if this is deliberate, you have a whole different set of operative principles. but if this was a mistake, an accident, then people will hire lawye

lawyers, presumably class action lawyers. they'll determine to where liability will extend and determine the question whether it had in place the right kinds of protections in line to avid what happened here. >> what about the s.e.c.? what does the s.e.c. do here? >> well, that's a different questi question. it seems to me that the s.e.c. has a great deal of authority to say that companies cannot allow their sensitive information to be disclosed in this disorderly and basically potentially very damaging way. so the s.e.c. could take enforcement action against all of the players. google for not having good policies. donnelly for messing up whatever

policies were in place. stay with us, everybody. google at this stage is still halted. it was down 9% at the point of halt. we'll continue to cover this story. the big earnings miss, big revenue miss. but perhaps more importantly the fact that it was an early and unexpected release with goog pointsing the finger at r.r. donnelly, a financial printer which had unauthorized sending out of this particular 8k. cloud and trade on any computer. tdd#: 1-800-345-2550 and with schwab mobile, tdd#: 1-800-345-2550 i can focus on trading anyplace, anytime... tdd#: 1-800-345-2550 until i choose to focus on something else. tdd#: 1-800-345-2550 trade at charles schwab for $8.95 a trade. tdd#: 1-800-345-2550 open an account and trade up to tdd#: 1-800-345-2550 6 months commission-free online equity trading tdd#: 1-800-345-2550 with a $50,000 deposit. tdd#: 1-800-345-2550 call 1-866-294-5373.

google shares have been halted for about an hour now. we are waiting for google to resume trading. when it does, you will see it first here on cnbc. we have lots of guests giving every angle to this story, why did it happen, how did it happen, do we need to be concerned about the earnings miss. what's the liability for r.r. donnelly and google. lots of angles here. r.r. donnelly's market cap is $1.9 billion. by my back of the envelope math in the commercial break, google lost $21 billion, ten times more market cap loss than r.r. donnelly has. if you owned google, are you going right after r.r. donnelly on this if it is true? >> i'll tell you what. since i was a practicing lawyer, i'm going to call my legal background here and say that in january of this year, google

announced earnings. they were supposed to be $1050. that was consensus. they came in $950. not very dissimilar to what we have here. at that point the stock dropped 9%, proceeded to drop for the next two days. if i'm a lawyer looking at this, i'll say what were the damages. why was it the early release? google did announce they'd release earnings today at 4:30. maybe have you something there. i just don't think it is enough. it is a nuisance suit. undoubtedly they'll sue. it it s a nuisance suit. after they announced earnings, it traded down for another three days and then it had a big move up. we've seen this before with google. i don't think it is all that alarming. >> we certainly will vs seen premature earnings releases with other companies. kayla tausche, i know you'll give us a historical perspective here in terms of where else it happened. but give us some of the initial analyst reactions here. >> we're getting some of the

first written commentary from the analyst community today. i want to start with citigroup. still calling it a buy with an $850 price target. he did say there were somewhat soft trends at the core google business and he said he did notice that paid click trends were decelerating but not as bad as expected. he calls the quarter incrementally negatrol. a mix of negative and neutral at the first pass. says they are generally in line versus a tad shy of expectations but overall doesn't see it as overwhelmingly bad and not adjusting the target. moving on to piper jaffray, just coming out with a report saying even though they were acknowledging the halt in the repractir premature release, he said he believes the stock for at least the next couple quarters will be range bound in $100 range, 650 to 750 as investors wait to see investment in q4.

he also maintains a price target of $834 on the stock. analysts not moving their targets even though they are acknowledging a weak quarter. >> gene munster is going to be on "the closing bell" around 4:00. we'll tune in to hear his views further on that. thank you, kayla. in terms of where we go now in trying to get an idea of what type of precedence we have in these situations, anthony diclemente, we have had premature earnings releases. for example, i think in april of this year buffalo wild wings came out early. based on what happened then, do we have any idea of what's going to happen now? >> i can only give you my experience which is covering media and internet. if i think back to a particular quarter where disney announced earlier than they intended to, it was the fourth quarter of their fiscal 2011. i think it was late last year. the reason i bring that up is because you look at what disney has done in the last 12 months and how that stock has performed. you just got to tell yourself this is a technical thing that's going on with google.

this is like an inefficiency in the market here. but if you look at fundamentals, for disney that would have been a good opportunity to buy the stock even though it was down i think 7%, 8% in the next kind of trading session. i look at google, i'm a little more positive than maybe piper was. i think if people are reiterating $850 price targets, that gives you a nice degree of up side from $687. the decline in cpcs was largely due to mobile. as you bring on new clicks from mobile, be it tablets or smartphones, those are coming on at a lower cost per click but the tailwind to mobile over a longer period of time will be beneficial. >> let's go to the other stock involved in the story, r.r. donnelly. an analyst that covers r.r. donnelly is joining us. we are expecting r.r. donnelly's statement within seconds. when it does, we will bring it to you. ed, have you to be spooked if you are an r.r. donnelly

shareholder. >> i don't think so. first, i think a gentleman on before talking about the s.e.c., used to work -- >> the former s.e.c. chairman. >> yeah. he mentioned the whole idea was was this deliberate, was it an accident. that could affect things very much. if you look at the bond ratings business for example, people have sued moody's and s&p for years. of course their bonds went down, challenging the validity of the ratings. dozens of suits have been dismissed. i don't think it's cost moody's much money at all. i'm not a lawyer but if this was an honest mistake -- it wasn't by donnelly. it was by a subsidiary of theirs, tiny little company called edgaronline. you really can't get into donnelly's printing business. it's not damaged. this little company that issued the stuff early, you'd have to find out why it happened, who did what to whom. i think for donnelly it is an academic issue. >> thank you very much. we have the statement coming out from r.r. donnelly. kayla? >> mandy, this from an r.r.

donnelly spokesperson saying, quote, we are fully engaged in an investigation to determine how this event took place and we're pursuing our first obligation which is to serve our valued customers. google, of course, a customer in google, we're still awaiting a full earnings release to come after the bell. >> herb, you wanted to jump in. >> ed, herb greenberg. you mentioned this is edgaronline, a small part of r.r. donnelly. this concept of filing agents which i guess edgaronline must be for them, what's the risk that business nearly goes away? >> they paid $70 million for the whole company. donnelly is a $10 billion business. >> the filing agent business -- >> did you hear? they paid $70 million when they bought it. it is a $10 billion -- >> ed, like steven, i have a law degree. i read enough cases you sue the guys with the big pockets. edg edgaronline is not going to get sued. r.r. donnelly is going to get

sued. >> sir, the rating agencies have been sued for years on bond ratings. they haven't paid much money to anybody. >> i didn't think -- >> what's the liability? hold on. the only liability are those ghoul people that sold and lost money. otherwise there is no liability. if you didn't sell the stock, didn't lose any money, you got no loss. right? >> somebody's going to lose money on google here. >> but wait. how many people -- listen. how many people sold the stock and got a loss today? you don't know. >> not yet. >> the stock is practically not down anymore. >> we are talking about google. i agree on r.r. donnelly. my point is rrd is likely to face liabilities from google shareholders. >> excuse me, they're going to face a lawsuit. i don't think they'll face any liability. >> okay. doesn't think they're going to win. fair enough. sounds like you still remain reasonably optimistic on rrd here. >> well, i don't think this is a big deal.

first of all, i'm sure if you're a company like donnelly, when you're in the printing business, given the hazards in the printing business, you're insured against everything. >> well said. ed, thank you very much. >> bye. >> we'll take a very quick break here and continue to cover this big story. just moments ago, r.r. donnelly, which is the financial printer that allegedly sent out without any authorization from google the earnings statement prematurely. they are looking into this and will do a full investigation. herb? >> we'll take a quick break and come back in a minute. how they'll live tomorrow. for more than 116 years, ameriprise financial has worked for their clients' futures. helping millions of americans retire on their terms. when they want. where they want. doing what they want. ameriprise. the strength of a leader in retirement planning. the heart of 10,000 advisors working with you one-to-one. together for your future. ♪

but they haven't experienced extra strength bayer advanced aspirin. in fact, in a recent survey, 95% of people who tried it agreed that it relieved their headache fast. visit fastreliefchallenge.com today for a special trial offer. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again.

google shares are still halted and when they halted they were down $68.10 a share because of an earnings miss and an earnings early release. it is a big story dominating your financial news. we'll have much more on this right after this short break. don't in anywhere. we are first in business worldwide. sometimes investing opportunities are hard to spot. you have to dig a little. fidelity's etf market tracker shows you the big picture

on how different asset classes are performing, and it lets you go in for a closer look at areas within a class or sector that may be bucking a larger trend. i'm stephen hett of fidelity investments. the etf market tracker is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea. to compete on the global stage. what we need are people prepared for the careers of our new economy. by 2025 we could have 20 million jobs without enough college graduates to fill them. that's why at devry university, we're teaming up with companies like cisco to help make sure everyone's ready with the know how we need for a new tomorrow. [ male announcer ] make sure america's ready. make sure you're ready. at devry.edu/knowhow. ♪

you're watching a picture here of google, still halted down by 9%. we are all over this story, because it is not only important for you if you are a google shareholder but it is also having a drag on the overall market. we still have jon fortt, kayla tausc tausche, michelle leder. we were having a quick chat during the ad break. jon, have you very interesting views on this story. >> in tim lar, manparticular, i

google would release early to a third party their numbers. they anticipated this wouldn't be released until after the close but you're giving somebody else access to very sensitive information for what? a lot of eyeballs can see it over there. >> talking about four hours, why on earth would they wait about four hours from the time of the premature release to giving a conference call at 4:30 p.m.? >> yeah. i don't know. that is a pr nightmare for google right now because people are just clamoring for what's going on and are these the real numbers. we believe they are the real numbers but again they've not come out and said these were absolutely what the numbers were except for that comment here by larry page. we don't know what else was left off of that release -- >> john, john. you're the investor here. is a sell-off overdone? >> no.

no. as i said, i believe the sell-off carries this stock to $651 right around the 100-day moving average. that would be approximately a 14% drop on the day. that's about how much they missed by with these earnings. they won't give us guidance so that's all we have to really look at here, i believe. sully? >> so, sully, let me just jump in here. three issues. first is what are the liability of r.r. donnelly and google. small issue because the stock is down 9% now, exactly what it was down in january of this year when they missed albeit by a smaller amount. second issue is google going forward. clearly the earnings model has continued to atrophy. i agree with doc it will fizzle out over the next few days. the third issue which i think is the biggest issue, this is yet another reason for the retail investor to stay away because all they're going to see are the

headlines. >> this is another nail in the coffin of investor confidence. >> quick question -- seems like you guys are implying that the fact that this was released during the day and it was a disorderly release didn't have anything to do with the disorderly trade. >> no, that's not true. >> you said 9% back in january. >> all i'm saying is it would >>ven a small miss would have accounted for a handful of points. but to me the emotions that took over are probably 3%, 4%. >> jon fortt mentioned this earlier, we hear this often with companies, that they're out there sort of talking to the street maybe talking them down and that gets into this entire issue of -- people think that's

just nonsense anyway, what do you think of that? >> i'm sorry, what do you think of -- >> of companies out there like google reflecting a preview of what may be comeing? >> i think earnings dpidance is a very dicey proposition. and what happens is if you get people primed for certain numbers, and then for whatever reason you don't make those numbers, you are as we used to say when i was growing up in brooklyn, in deep yogurt. >> jon fortt, you had a question for harvey?

every once in a while i tend to call around to analysts and say, hey, has the company been talking up any particular metrics to you this quarter. this quarter sounded like was unusual in that google was trying to put particular emphasis on certain numbers. they weren't say wlag those numbers were but that had a few people scratching theirheads. did that strike you as terribly unusual in general? >> no. it's not -- given your earnings guidance isn't unusual, one of my concerns is, it's really a function of the fact that our disclosure laws are all backward looking so people are only required to tell everyone what's going on on a quarterly basis. what we really need is disclosure that keeps pace with reality, current disclosure, instead of historical

disclosure. and you'll avoid, i think, fair amount of the problems that we see from time to time of companies giving guidance, and then missing the marks this they gave guidance about. >> i think if we get to the individual investor and their concerns about the marketplace, when they see companies getting a little bit of a talk up or talk down or something to pay attention to, where's that leave the little guy? the little guy's left out again. >> there's no question that -- >> exactly. >> there's no question that the individual or little guy or gal is at an enormous disadvantage from those who have the kinds of equipment and technology that lets them keep pace with every shift in nuance that companies utter when they try to talk up

with their earnings are going to come out. >> michelle, let's talk about the instance of this happening again. disney famously released earnings early about two years ago, almost to the day. they recovered. as long as there is no malfeasance, what risk do you think there is to investor confidence in exactly what we're talking about with the market in general and these earnings releases in specifics? >> it's hard for me to say. i think that thinking from a small investor's perspective, it could be certainly a challenge here. but i think that it will be see the fallout here because it doesn't happen a lot. so the real question is was this just an oops having do with like merging some systems from the merger or what was the root of the problem. that's what we got to get to here. because r.r. donnelly released lining hundreds, if not more, documents to the edgar system every day and this doesn't

happen. >> we've got to very a very quick break but google shares are still halted following that premature earnings release. they spent their shares will begin trading before the end of the trading day. stay with us right here on cnbc as we continue to cover this big story of the day. just picking u, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. nave 50% on banners. [ male announcer ] fedex office.

syou know, i've helped a lot off people save a lot of money. but today...( sfx: loud noise of large metal object hitting the ground) things have been a little strange. (sfx: sound of piano smashing) roadrunner: meep meep. meep meep? (sfx: loud thud sound) what a strange place. geico®. fifteen minutes could save you fifteen percent or more on car insurance. insulifreestyle lite can. help you test easy. they need a third the blood of onetouch ultra. zipwik tabs target the blood and pull it in. call now for free strips and a meter.

here's the nasdaq 100. heavily weighted to google, as you can imagine, given its size. that's what happened to the market as well when google's earnings came out early and they came out poor. that's the nasdaq 100 heat map. the more red on the screen, the worse things are. the point of the story, folks, is that this is not just a google story today. this is a market story. this is a story about your money, whether you own google or r.r. donnelly or not. now let's bring back in john and steven. guys, let's step away from google in the micro for a moment, talk macro. ibm, intel, now google have all disappointed on earnings and guidance this week. how worried should we be about technology? >> you have to be worried but if you look at where google makes their money, it is on advertising mood advertise

ing models. activating more android phones are good for the manufacturers, so it's not all bad for mobile. apple is a different animal completely. you got to look at each story individually but it's been a messy story. it's been a messy story primarily from old tech. pick your spots. to me i'm finding opportunity here. i'm looking at qualcomm, now 13 times earnings. yet their business continues to grow leaps and bounds. more in the top line and bottom line than google or ibm. that's where i'd go. bro broadcom, skyworks. they're growing. >> certainly within the tech sector there are various subsectors. would you agree we have to look at individual stories here, we can't lump them all into one common theme? >> i would agree that you can't really lump them all in to one common box but, mandy, i think there are a lot of tech managers out there, people who have, for

instance, the high technology side of the s&p 500. not just the broad s&p 500 folks that are tracking that but the people who have specific portfolios that are very nervous. they're looking at amd tonight. they're looking at microsoft tonight. they're looking a lot of these stocks. i guarantee the being a we're seeing on the heat seeker is showing us that people are hedging. they're more afraid than they are optimistic in hedging for the up side. they're instead hedging and betting or at least protecting against the downside. >> guys, there is one interesting point here. i think it is important given the markets we've been in. he said when you look at google or you look at ibm, their charts were exceptional going into the numbers. doug points out, he said this underscores the risk inherent in price movement, trading and investment strategies which as we all know rules the market until it doesn't, because then we get momentum and reverse. >> it's unanalyzable. how can any analyst, no less an individual, come out with a reasonable guess of what a

facebook's going to earn, they've got a billion users. of what a google's going to earn, what an apple's going to earn. that's why you can't day trade these things. you can't get in front of earnings announcements. you got to make a decision that you like their business mod many, you like the opportunity, you're investing for the longer term. >> as we said with sue herera earlier on "power lunch," the issue here is that there are also options and options strategies that you could have had on to protect yourself rather than being exposed and just waiting for a stop order to be triggered by either hft or an event like this. >> you'll have more on "fast money" at 5:00 p.m. eastern. >> i'm sure we will. >> the only thing we're missing is peter marshall to handle what's happening here. we've got jim cramer. he's going to be here on the other side of the break with lots and lots to say about the google topic. we'll get to you soon, jim. you stand by. stick around. first day of work. and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up

from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. turn billion of bytes of shared information... ♪ into a fifth anniversary of remission? whatever your business challenge, dell has the technology and services to help you solve it.

all right. welcome back. we continue to follow that. if you've been under a rock, it is your big story of the day. google earnings released, coming out early, coming out poorly. the stock halted now we're going on two hours here. jim cramer is out in ohio. he's got a huge energy focus all day today. been doing a lot already.

he's got a lot coming up tonight. i understand you're wearing the hardhat, jim, because of where you are, you have to. but if somehow today seems appropriate with another smack on the head for the individual investor, something like this with a name as big as google can happen. >> this is exactly what i was thinking. obviously we don't know the substance of the quarter yet other than this bare bones but we do know this -- the individual investor just has to feel, okay, guys, here we go again, a very big company that a lot of people like that is supposed to be a precision company, and this is what happens? didn't someone have it earlier than i did, this is obviously not a level playing field and nobody will ever get in trouble for doing this and no one really knows -- it's like the machines are so powerful and the individuals are just saying, listen, this is such a raw deal, i don't want to be in stock. it is no wonder why people sell stocks. >> every single day you come on your show, "mad money," you say

you're only there for one reason, to help educate the investor, help them make better decisions about their financial future. if someone came to you, said i need advice, i feel like i'm getting screwed here, what would you say to them? >> well, look. there's a way to be able to make it so you're okay. look at johnson & johnson, it was yielding 3.5 prps the oth% stock's just magnificent. eli lilly has been unbelievable. look at verizon today. it was yielding 5% two days ago. these have a floor because they have dividends and there is no ceiling given the fact that the federal reserve wants rates low. so you can -- yes, you can own a google. i thought google was going to be good. sue me. i thought google was going to be good. why? because they have a mobile strategy that's not expensive and a lot of advertisers seem to like them but apparently there was not a good click through this quarter. we don't know why. apparently the click throughs were just bad in the last six weeks. i wish i knew why, i don't know

why. >> let me ask you, some time ago quite recently actually you were on our show, "street signs," you said if you're only going to own one stock, make it a quality stock like a google. but when you look at what's happening today, this shows the inherent risk in a strategy like that. what is your response to that kind of thing? >> well, first of all, if you're going to sue, sue jim first before you sme. slow everybody down. listen, i still love google. nothing's changed. i think what, you know, jim is very right about a lot of this stuff in that, you know, it's not about the individual investor or the machines here. it's about a system that doesn't work, okay? i thought they delivered pony express. there's better delivery mechanisms to do earnings releases, okay? more importantly, google was at $580 two months ago. it's still up 15% in the last two months. these are very volatile stocks. the fed is printing money. yes, you can go buy dividend yielding stocks, but for my

kids, i'm going to look at this stock when it opens and add some more shares for them. google is still in day one or two of their existence. >> we could argue their numbers aren't as bad as the market is reacting. first, let's go back to jim cramer. not going to put you on the spot because i know where you are. you don't have all the access to the information we have. why the heck has google stocks still halted? do you think they keep it halted the rest of the day to let everyone look? >> if i were the ceo of the company, i would call brian s sullivan and mandy and say here's what's going wrong, and this is what we can do. that's what you do. this is 2012. what you do is pick up the phone, call cnbc, you tell them what's going on. we didn't get this with citigroup the other night. it's not a vacuum.

they're publicly traded companies. you can't get away with everything. >> yeah, and to that point, who calls the shots on this? it's going on two hours the stock has been halted. google reckons they'll be trading before the end of the day. who calls the shots? >> we obviously don't know. the sec doesn't know. >> harvey, you there? >> there's rules. >> yeah, there's rules. if you're rich, i don't know. >> harvey, to mandy's point, does the nasdaq call the shots? who determines when this stock will trade again? >> you think any of these entities know? you think the sec knows? these guys are all going to pretend they know. nobody knows. google doesn't know what to do. sec doesn't know what to do. didn't we see that infa faceboo? >> good point, jim. we have harvey here.

what say you, sir? >> here's the point. in the first instance, google alerted nasdaq, which was required to do, that there was a glitch and that the information was incomplete and improperly disclosed. but once the trading halt begins, then there are a lot of factors that go into when it gets lifted. one of them is how quickly is google getting out the information? once this information came out, google's obligation should have been to get the whole story out within minutes of the first release. they shouldn't be given a pass for the rest of the day while they basically massage the data. they have to get the data out immediately. they are the ones who, even though inadvertently, they're the ones who caused this problem by having donnelly get the

information before it was finalized. so that's one point. the sec will get involved because the sec has the overarching responsibility to make sure that investors get the full story. the problem you have now is you have a half-informed marketplace. >> why hasn't the sec issued a statement then? >> i'm sorry? >> why hasn't the issued a statement? shouldn't they issue a statement in this situation? >> the sec doesn't typically issue statements, although i think that policy is outmoded. basically, they try to get the data and then tell people what they should be doing. so they're acting as we're talking, and we just don't know what it is they're doing. >> chairman pitt, don't you think what should happen here is there should be a conversation between the people at google and the sec? the people at the sec should verify the information that has been presented early or not is the correct information, and if

it's not, they should update it immediately? >> absolutely. >> guys -- >> i would assume that that, in fact, is what is happening. >> it is important to note, too, that i'm on google investor relation's website. the earnings aren't there. they were released by art donnelly and went on to the press wires. google itself has not released this earnings report. should we be nervous about that at all? >> you know, let me jump in. i think it's great sitting here and hearing the emotion of the moment saying why haven't they done this, why haven't they done that, but i'd much rather the story be buttoned up tight before they have a conference call and release the earnings. now, the caveat is this is a monstrous company, and it's strange to believe that four hours before they're going to release earnings broadly, they

don't have it buttoned up tight. so i'd want to look at what their internal controls are. >> they certainly didn't have larry page's quote. they're still working on that one, steve. >> yeah, yeah. that's a biggie. i would have offered my own quote there, but they didn't ask. >> jim, jump in. >> jim urio? >> jim cramer. you still there? >> yes, i am. >> okay. jump in here. no? >> i'm sorry. >> we'll just go in order of jims. >> listen, i'm going to take whoopi goldberg in the center box. no. how about this, howard? fundamental fundamentally, you look at the quarter, it's not that bad. >> fundamentally, nothing has changed. the individual -- >> if you divide by ten it's not that bad. >> the risk is always there with individual stocks, okay?

the fundamental point of the company, they're still working on the car. they can value social better now that facebook is public. search is not going away. facebook didn't destroy google. chrome, droid, search. they got it all going on. >> howard, i just disagree. they blew earnings by a wide margin. yes, all those things exist. but you pay for companies based upon the rate of growth and earnings and revenues. otherwise, you can make the case that let's just put our finger inside and see what we're going to buy. >> that's not what i'm saying. >> the only question is what you're willing to pay for these fundamental and how quickly they'll come back. >> it's a 10% move. the stock was up 30% before this move. there's volatility in any one stock. >> don't disagree, but you can't make the statement things haven't changed. the fact is, we don't know. >> we will know in short enough of time. >> i'm glad you have a crystal ball.

maybe you should have shorted this, try and generate a 10% move, which is just about more than you move every year on the market. >> again, that's not what 99% of investors need to hear. this is a mistake that happened. it definitely opens people's eyes to how we've got to fix investor relations and corporate communications. better technology. there's cnbc. there's many tools that are better suited to delivering information, not halting a stock for four hours. there's many parties to lay blame here. it's fun to talk about it, but i personally feel the fundamentals haven't changed that much overnight. how people perceive the company, absolutely. that's going to take a little bit of time, but we have nothing but time. >> indeed. >> so this is a great opportunity for people that love google to really take a look at it because it's going to be a month before people really trust it again. >> to that i agree.

>> obviously we're going to try and get to google themselves. they're going to be holding a 4:30 p.m. eastern conference call. there's going to be full coverage of that on the "closing bell" with maria bartiromo as well. at this stage, as we've been saying, the stock is still halted. about $21 billion in market cap. >> about ten times the cap. quickly, john and jerry, you over there? >> yes, i am. >> should we buy nasdaq calls? should we buy calls options? anything to hedge against when this thing starts trading again? >> no, what i think is going to happen is i think you're still continuing to see people hedge about some of those tech stocks you implied already are going to come under more pressure here because of ibm and google, what has just happened. >> who's got a call on how it's going to trade when it starts trading again? >> i still think down, mandy. >> i think up, john. i don't need any of this headache. i'm not going in on this. it's only a small feeling, but i think it's a bit overdone. >> first tick is up, then it's going to trade down. >> okay. so two downs and one up.

>> how about buying something like this? you can buy something you can look and feel. >> understood. to all of you, fantastic to have your thaugtoughts on this googl issue. we'll continue coverage going into the "closing bell." stay tuned to cnbc. we're ready to go. we're ready, right? we're going to do it now. >> hi, everybody. welcome to the "closing bell." we're entering the final stretch. google the story of the day today. the stock still halted after initially being hammered when it released earnings prematurely and want earnings missed the expectations. >> by the way, they wrneren't a that good. we have team coverage. we start with kayla on what happened. what happened, kayla? >> that