8:00 a.m. at google headquarters in mountain view, california, it's 11:00 a.m. on wall street and "squawk alley" is live. ♪ ♪ ♪ ♪ good friday morning, welcome to "squawk alley," joining us re/code's co-executive editor, kara swisher, happy friday to you. joining us here, jon fortt, and kayla tausche has the day off. as we close out a remarkable

week for earnings, and especially tech. shares at google for instance, at a new high today. after that stellar earnings report last night. the company smashing records, toppling apple's mark for the biggest market cap gain on earnings. google credited strong performance in mobile and in youtube for the big quarter. but it's this increasing focus on cost control that's getting a lot of the attention. the new cfo, ruth porat, formerly with morgan stanley talked about it on the call last night. >> the priority is revenue growth, but pursuing revenue growth is not inconsistent with expense management. we're just starting the 2016 budgeting process. in my experience the best way to slow the rate of growth and expenses is to work closely with business leaders anchored in data. so together we can identify ways to prioritize resources and really continue to extend the discipline that we've talked about. >> kara, we got fort's take on porat earlier in the show.

he called her the best prepared new cfo he's ever heard. you know the company pretty well. what was your take on her? >> i know ruth very well. i knew her a long time ago in her previous careers in different jobs and stuff like that i think she's super-competent. she's very articulate. she's very firm and was saying words that wall street likes. such as discipline and that's not a word you hear out of google. which you might have heard today under a different regime would have been hey, we've decided to put a colony on pluto now that we have those nice pictures so think just her saying cost controls, expense controls, contributed a lot to this. and obviously very good performance in all the sectors, especially mobile is important, too. >> kara, what do you think this means for this growing rivalry between facebook and google? both of them seem to be benefitting from this trend toward programmatic advertising, but both of them have their eyes on video and mobile as growth areas. can they both succeed in that area? or does somebody's lunch have to get eaten?

>> i don't think so, this is a big market. they're taking it from others like television and where the advertising used to go. where the advertising dollars were spent. it's an enormous market, there's no reason they can't both do well. in a lot of ways they serve different markets. but they do are aiming at the same pot of money, it's a question of how to split it up. google and the mobile area has to perform here. because that's their biggest bet in android and to instead of just making an operating system everybody uses makes money off of it. in the way am does. and in other areas, like you tube, it's just one of those assets that should have been performing better for a long time and now it's got stronger management and they're focused on advertising and other things. that's to me an asset that they've not taken advantage of in any way, and now they are. >> kara, how is it -- we haven't talked about goog this will way in a long time. and the stock reflects that. how does the whole narrative change in one day. obviously the quarter looked great and they're saying the right things. but it's almost like we've

crossed into some looking glass. >> well i think it's just that google has not been very disciplined itself around its messaging and i think it's, you know it's a big and big engine of profits, especially in search. but people have worries and google because it's google, they haven't addressed it. and ruth said words like transparent. she talked about being closer to wall street. she is a creature of wall street. she's from wall street. so they trust her. and you know that's how these things work. it's not like wall street is made up of just computers. that's a google people. she's saying the right things and a lot of this, if she's saying the right things with the right numbers, going in the right direction, you're going to see a jump like this. >> dividend or no dividend? >> i don't know, that's an interesting question. have they not done that? they've not done that of about, right? i'm not sure. >> that's what i was going to ask. that's the next word that investors are hoping to hear from ruth porat is dividend. but google being a control company doesn't face the same

kind of pressures to do that. do you think a dividend or buy-back would be more in line of what they tend to do first? >> a buy-back, i think that would be more like them. i think they're going to have a colony on pluto. they're not abandoning these ideas that they have, these moonshot ideas. so you know, it's interesting, it will be interesting to hear from larry page, in terms of what he thinks of where everything should be going. but it's definitely a more kiss palestinianed google, a more -- disciplined google, a more mature google. even though they control it, it is shareholders' money, they have to respond in some way. a lot of these tech companies just don't. amazon, others have not a history of not caring what wall street thinks. they really do in a lot of ways, especially with all of this competitive pressure. our next topic, kara, gop presidential candidate jeb bush taking a new approach to a campaign event, literally. he traveled to an event in san francisco yesterday via uber. the move comes a few days after democratic candidate hillary clinton took a more critical tone toward the likes of uber. because as she said, it raises

questions over workplace protections. bush did give his thoughts on the matter. take a listen. >> these are people that are quite happy with the service. if they're violating legitimate law along the way, if they're exploiting workers in some fashion, there's ways to address it. but the fact is, that this is, this is disrupting the old order. >> and we got de blasio here in new york, kara, i don't know what you've seen what uber is doing to push back on this bill they're considering that would obviously limit the number of licenses. >> yeah. i mean it's an interesting debate. it's of course it's going to make it into the presidential debate. i can't believe i kind of side with jeb bush on this one. i think the question is, we've got to put in regulations that create this. but some of these regulations do have to change. i mean this is a really fascinating area of the economy. it's an area that has a potential for enormous abuse and at the same time is a potential for enormous innovation. so the answer is right down the

middle to have old-world answers, which hillary clinton sounded a little bit like that, is not really the way to go. it's a question of how do we create a sandbox for this stuff to play out and protect workers, protect riders, and at the same time, allow these very exciting technologies to grow. because this is only the beginning. this is inevitable. the uber is just the point of the sword of this change. and so, question is how do we want to manage it into the new economy. and again, i'm glad he's getting it. he didn't do uber pool. but it's a great debate area and i'm glad the candidates are debating an actual interesting issue that's actually substantive. and that was nice. >> kara, i'm curious about the money. how much down side is there for democrats in the whole sharing economy, on-demand economy issue. if they kind of demotivate silicon valley? which has had deep pockets for democrats at times in the past? how much upside is there for republicans? they can talk a good game about libertarian ideas, but in terms

of moral issues, silicon valley is not on the same wavelength with the gop right now. >> not with the gop or with the democrats, you mean? >> i mean how much upside is there for republicans? i doubt a lot of people are going to be opening up their pocketbooks to the gop out of silicon valley. on the moral issue they're not on the same wavelength. but how much down side is there for democrats if they rain on the likes of uber. >> business is business. i don't see travis callan scratching out a check for hillary clinton right now. it's an interesting time. i think hillary clinton's campaign is a lot around the middle class and economic issues, these are the new rich. and look, you know uber with its valuation of 40, it's going to be 50 very soon i think. you know this is a lot of money washing around and this is an important business. these people want to make it successful and they're going to back the candidates that back them.

>> it looks like prime day is going to happen again. amazon announcing the event coming back after reporting it sold more units than the biggest black friday ever and it hand added hundreds of thousands of new members. despite the is that corresnark social media good move or not? >> good move. stores have been having sales for years, this is just a sale. it's a great idea there weren't that many sale items, when you go to a store you complain about that, too. i wasn't sure about the social media stuff. anyone who goes to a sale knows, if you get there first, you get the best. it's an interesting area and i think there's some great ideas around how to improve it. if you have a wish list, why have a big wish list on amazon. if they told me what was on discount, i could buy it right away or immediately buy it and things like that it's a great idea to move merchandise.

and to get people interested in the prime membership. which is important to amazon. sales are great and it's nothing new, but at the same time if they did it a little better, i think people will love it. >> kara, i think amazon said they signed up hundreds of thousands of new prime members. we'll have to see how many of those stick around after the free period is over. is that really the bottom line benefit? that amazon is going to get if it can keep those prime members and entice them to keep swimming in its ecosystem? >> i think so it's interesting, just recently i got another house and i was buying a lot of little items, i got everything on amazon. i returned a couple. it's fascinating, my patterns have changed. i bought everything on amazon. things i didn't like i sent back immediately and i used prime membership doing it. it's already paid off. if they can show benefits to using it, absolutely. and i think the question is, are people going to rush in and get the prime thing and quit. if they can continue to show benefits, it's a great idea.

>> shop around, stick around for the spike lee movie. >> i don't see walmart doing a spike lee movie. >> and good for you getting another house in the real estate market, kara, way to go. >> thanks, jon. >> kara, great weekend, thank you. >> bye. >> kara swisher from re/code. checking in on the markets, the dow is stuck in a negative pattern. honeywell, up 1.5% after earnings that beat by two cents, mattel shares are off more than 4 hrs, despite reporting a surprise beat. we been talking about the diversions between hasbro and mattel. dallas fed president fisher commenting on greece this morning. our steve liesman has more. >> it's -- fed vice chairman stan fisher. i should have read that but it's fed vice chairman stan fisher speaking at the chamber of commerce this morning and adding something to a story we've been giving you, which is the issue that all of greece' problems,

stan fisher who was the first deputy director of the imf, now the vice chairman of the federal reserve. saying the greek debt debate will be resolved. by using the equivalent of a writedown. here's what he said. >> hints from the side of the creditors, that when greece, when greece tosses the first review of the program, and is stuck with the program, for a while, they'll begin to consider the equivalent of debt reduction. >> so the equivalent of debt reduction means the germans don't want the debt written down. fischer saying that inflation is running too low, but we're close to full employment. we've had this tick up with the one rate hike this year at least as being prigsed in. the december feds funds furmts. the germans have insisted on no writedown. the imf has insisted on some reduction in the debt burden on

greece, it will be handled through the lengthening the term of the debt, lowering the interest and a longer grace period where greece does not have to pay. >> the fact that i saw it on the prompter and thought it was dick fischer, shows you how much fed speak we're awash in. >> it's fischer with a krgs q consideration rather than fisher without the "c." >> and clearly the person who i talked to didn't hear me say fischer with a "c" which the pronunciation is clear. >> steve, thanks again. steve liesman at hq. when we come back we'll keep our eye on google as the shares soar, what's up next for the company. plus a big week for apple, the stock's run, will it continue ahead of earnings on tuesday? we'll step into the octogon, rhonda rousey will take us inside her gym. when "squawk alley" continues. being a keen observer of the world has gotten you far,

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shares of cybersecurity firm rapid 7 are up about 65% in its nasdaq debut, quite a hot sector. shares of other cybersecurity companies are on a tear this year. joining us live from the nasdaq is rapid 7 ceo cory thomas. congratulations on this early trade it sounds like the price is right for some folks this morning. but cybersecurity a very hot

space. a couple years from now, if it cools down, what are the important metrics that investors are going to be watching to separate the firms that are going to last from the ones that might fizzle? >> well one, i would love for it to cool down a couple of years from now. that means that for our society, we'll have cybersecurity under control. that's doubtful any time soon. what i think you'll find is that quality companies have great people. which we have at rapid 7 and our focused on solving some of the biggest challenges will be the ones that endure. think the proof will be in the pudding, we focus time and energy on going after some of the biggest challenges that companies have. >> people's concerns about cyberattack is at an all-time high. every time there's a technical glitch people are worried there's some sort of attack. how does that affect your business and the incoming flow of interest and what it is that you're selling? >> so right now, there's still a lack of awareness in the overall market. i think what's happened is

slowly with the, with the help of the press, with more awareness, companies are starting to realize that they no longer can ignore cybersecurity. so they have to focus on putting a functional cybersecurity prm in place, as the awareness arrives, people reach out. we see people asking for help in both our team and our services organization, we go help customers solve their problems. >> tell me how the business model works longer term. you tend to think of security firms as being like software firms, but at the same time as you guys are coming out, you have losses as you say, you're investing in the business what are the kinds of critical investments that you're making to grow the business and how are we going to know when it's time for you to start actually making profits down the line? is it when there's some sort of a shake-out and there are fewer firms competing for business? what is it? >> well we made lots of investments in the past years. because there's big challenges. the wonderful thing about the

entrepreneurial economy that we have is we as a society invest in companies and groups of people getting together to solve big problems and that's what we've done at rapid 7. we've built technology that helps people understand the biggest vulnerabilities and exposures that lead to compromise and we've help them detect attacks in their environment we have a wonderful services team that advises company. as we continue to grow and help more and more companies, then we're clearly focused on being on a path to profitability. that's just not my commitment, our entire team is focused on that. our number one priority right now is solve the customers' problems. >> obviously companies are all over this which is why you guys are doing so well. but we keep having issues at very large companies as they upgrade their software. and how that interrupts operations. i wonder if there's any way to make that situation any bet centre. >> what you're seeing right now is you're seeing the result of years and even decades of neglect and companies are slowly catching up, upgrading their infrastructure, starting to

deploy the security practices that they're going to need. and that's going to be a bit of a disruptive process. and the focus of myself and many people in the industry is making that as painless as possible. but we do have to upgrade the core capability that companies have to defend themselves as quickly as possible. >> all right. thank you corey thomas, good to see you. and good to see the performance of your stock, congratulations on this ipo. >> thank you very much. thank you for having me. the new president of softbank making some changes to his company. we'll get that story ahead. it's a fact. kind of like shopping hungry equals overshopping. a new sea chance to tryew look. something different. this summer, challenge your preconceptions and experience a cadillac for yourself.

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at ally bank no branches equalsit's a fact.. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason?

it was geoffrey! it was jason. it could've been brenda. in case you missed it, changes over at softbank, the japanese investment giant is winding down parts of softbank capital, its venture division. a re/code report, it's part of a new plan by the president who was elevated to the position back in may, widely believed to be a ceo in waiting, arora says

softbank is moving away from smaller investments to larger investments, we believe it's less crowded in the large investments place and it's a smaller universe of companies we have to understand and support. and it's interesting, carl. given what the action that we're seeing in valuations that they would be backing away from making new investments, you have do wonder if it's just not worth it, to chase around the smaller companies, for big valuations. >> it's an important pocketbook. we want to draw your attention to facebook. jon and i were mentioning it during the commercial break. $95 on facebook is now an almost a 5% gain of course we've been talking about google all morning and that's been leading the charge not just in tech but on the s&p. but facebook just on the heels of that google report at 95, is getting close to some targets, and i can't imagine the number of millionaires that have been

created at facebook headquarters. >> i thought were you talking about google which happens to be up $97 a share on the morning. both of them in the 90s in different ways. >> facebook was a $77 stock eight weeks ago and now $95. let's get to simon hobbs for the european close. >> after an amazing week. >> a monumental week for greece and the eurozone. we're red today. if you check the fission on those national indices, they're only slightly negative. it's more a consolidation after what's been a strong raly. i'll come to that in a moment. the news out of athens is that the greek prime minister is reshuffling his cabinet. this is a positive move. a signal to the rest of the eurozone and to opposition parties, the ministers in the government against the austerity demanded from the eurozone when they had the vote, they essentially get kicked out and therefore you'll have a government that is better able to push forward, don't forget there's more measures supposed to come on monday.

as far as the strength of the raly. you can see in just what have we got here, eight sessions, a gain of almost 9%. in response of course to what's been happening partly in greece. the european union has formally approved the $7 billion bridging loan that goes to greece to help repay the ecb on monday. because now we have gone through the other parliamentary process as the others, those are the parliaments around the european union or the eurozone that have to vote to start talks, restart talks on the third bailout with greece, go forward with that. and here you see, angela merkel and the german parliament. she said the alternative to voting yes was predictable chaos. it would be grossly negligent, she said for the germans and for her parliamentarians not to attempt this way to solve that crisis. even her hard-line finance minister suggesting that people should vote in favor of the third bailout. he said would be the last attempt to help greece. very quickly want to mention

what's been happening in the uk and the uk pound. we talk a lot about the making gains against the euro. the uk pound over the last week has had phenomenal week up to a seven-year high against the euro. a gain of 3.6%. partly because the bank of england governor who is the canadian mark carney, has been talking up a two speeches so far this week or two public appearances, the prospect that there will be a rate rise, he's saying at the end of the year. you know, guys, it always used to be the case when it came to military action around the world, the united states could count on the uk to come behind it, rightly or wrongly in the military action. it may be when it comes to central bank action and raising rates, janet yellen will not be on her own and the uk would accompany them. which actually is quitegood. you don't want to stand out as being the economy with the higher rates. >> we could use some political cover right now. >> i'm not sure it's enough. >> every bit helps. thank you, simon, have a great weekend.

continuing to keep an eye on shares of google breaking records this morning. nearly breaking 700, knocking on the door. we'll have more on that coming up. equals great rates. it's a fact. kind of like shopping hungry equals overshopping. seven out of ten power outages in the us are caused by weather. but utilities can now predict where the power will go out,

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here's your cnbc news update. secretary of state john kerry speaking on msnbc's morning joe says he raised the topic of

three detained americans in iran at every meeting with the iranians during the final weeks of negotiations, he says he's hopeful they will be released. t-mobile has agreed to pay $17.5 million to settle an fcc investigation of two 911 service outages last year. the lapse prevented callers from reaching first responders for three hours, the dpk is calling for better safeguards. ferrari recalling more than 800, 2015 sports cars in the u.s. to fix problems with the drivers' air bags made by japan's takata corporation. ferrari said the air bags may inflight improperly. and video streaming service hulu is exploring an ad-free option to make it more competitive with netflix and prime amazon. and that's your cnbc update this hour. let's get back to squawk alley.

google as you know by now better than expected earnings through increased revenue growth and tighter cost controls. could a dividend or a stock buy-back now be in the future brian weezer is an analyst with pivotal research group and joins us by phone. we've been talking about the stock move this morning, in your view is that a reflection on cap ex management? or are people finally giving them credit for the growth in internet advertising? or both. >> i think mostly this is a reflection of a lot of pent-up demand to see improvement in operating profit because they've been compressing the margins for quite some time now. the fact that cap ex did not increase as much as a lot of us expected is also good. the caution here is it's easy to read too much into this. it's not a given that google has

changes an institution because they have a new cfo. the market wants to give the benefit of the doubt with new financial leadership that there will be more in the way of financial discipline and street friendliness. >> i'm thinking of the letters that were always signs of caution in prior quarters. sgna for a long time and then it was cpc, right? that's all we ever talked about with google. >> there it is, $700 we just crossed on class a shares. are we done talking about those metrics or not? >> we should have been. you know i launched three years ago and i didn't reference those letters once. but the reality is that google or the dominant player in the market along with facebook. the two of them have a hegemonic state they will capture the spending that's growing moot market full stop. it's not that as important to look at metrics like cpc. it's a total red herring. you know they're going to grow by high teens or better if they want to the question is are they

managing expenses? and there are investor who is do want to see the moon shot projects on the one hand because it creates perpetual growth there are other investors and i would include myself as sympathetic to these views to want to see much more in the way of focus and advertising focus. >> talk about what it means for the rest of the market. we see facebook and google incredibly strong. linkedin is up 3.5%. yahoo sup 2% this morning. some other names that you would expect to be moving perhaps, in the opposite direction, given the strength in the programmatic advertising trend to help google. what do you do with everything that's not in facebook that's relying on the advertising space in this report. >> i think the reads are incredibly limited from google's report. the reality is that facebook and google together drive all of the growth in internet-related

advertising. there's a handful of niche players, linkedin, but the rest of the industry is a zero-growth industry because of how dominant google and facebook are. >> does that mean you should sell it? >> i would grown grade it to a hold a week early -- downgrade it i would argue it's fairly valued where it is. i think listen there's a lot of reason to be positive over google on the long run. google and facebook are the dominant players in the industry full stop. you shouldn't read too much into that. because google is strong doesn't mean that smaller internet players are going to be strong. >> the street likes an easy story to understand. a lot of times that revolves around the personality, in this case it's ruth porat. are people overestimating her influence or her ability? >> well this is the ironic part, these results are patrick pachett's good-bye. we don't know, she's been on the

job for a month. that's not to say if you want to be positive about her, you shouldn't be, it's that we haven't seen any evidence of her inside of google yet. >> brian thanks for the insight. just an amazing day, whether you're long or short. you can't take your eyes off this stock. brian wieser at pivotal on google. tesla's ceo elon musk is holding a conference call this weekend and phil lebeau joins with us more. >> we got a clue just a few minutes ago with elon musk tweeting out on his twitter account, model s product call at 11:00. rocket discussion coming up at noon on monday. so at 11:00 pacific, :00 p.m. eastern we'll be hearing more about the model s from tesla's ceo, elon musk. once the word came out yesterday that there was going to be some type of a conference call, it immediately set off speculation,

how big of news will be announcing here today. and we really never know when we come from the conference calls from elon musk. there have been times in the past, the hyperloop being a good example where they said there's going to be a conference call and everybody said okay, and they got on and boom it sparked a lot of interest and attention and other times there's been conference calls, a good example they talked about the leasing program for the model s and people yawned and said it wasn't that big of a deal. we've asked our friends at ken shmpb o to run the numbers, since 2008 there have been 30 times where elon musk has talked publicly about tesla. and of those 30 times, 40% of the time, tesla share recent ac favorably and moved higher. tesla shares up 2% ahead of the call. it will interesting to see how significant the news is regarding the model s. guys, back to you.

>> you never know what he's going to say about the company or stock or what. we know you'll be all over it. phil lebeau in chicago. when we come back, take a look at shares of apple surging over the past week after bouncing off the 200-day. earnings coming on tuesday. what's in the pipeline there? we'll take a look at that the dow is down 67. but first, rick santelli, what are you watching today? >> of course i'm watching the yield curve, all the treasury pricing, what's going on in europe. all in the context of the fed and the september meeting. we're going to talk why and we're going to talk when, in terms of the fed and normalization. after the break. hi my name is tom. i'm raph. my name is anne. i'm one of the real live attorneys you can talk to through legalzoom. don't let unanswered legal questions hold you up, because we're here, we're here, and we've got your back. legalzoom. legal help is here.

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you can talk to through legalzoom. don't let unanswered legal questions hold you up, because we're here, we're here, and we've got your back. legalzoom. legal help is here. top of the hour, google having an historic day, the nasdaq on a tear lately. our experts decide if the rally has legs. plus, why someone on our show today says russia and china should be in your portfolio. and is ebay prepare for its big split, where does history say you should place your bets? with the spin-off or the original? carl will discuss in about 20. >> let's get to the cme group and the santelli exchange. >> everybody of course is now talking about the when, the when, when is the fed going to normalize rates, normalization obviously at this point means raising rates. removing the combination, take your pick. there's potentially a much wider

opinion that september is on the table versus isn't. now, this not my personal feeling, i still think that the fed probably won't normalize or raise rates in 2015. i'm not alone, will i be correct? hard to say, but some market action deems i would be. and i would be very happy to lose the september 2014 bet. trust me, i would. normalization is a long overdue in my opinion. let's consider the market signals. we've seen flattening, all we have to do is look up at the boornd see a 67-basis-point two-year note. a 308, 30-year bond. look at where the markets were last week. basically short on rates are higher, the long-end rates are either close or lower than they settled last week. that curve flattening and how it's ramped up since janet yellen's twice annual testimony both on the house and senate side is hard to argue with.

but, but there are potentially other reasons, what could they be? just consider this, many are saying you know, if we normalize house this tightening going to look compared to '94? i hear it all the time. whether it's comps to '94, comps to 1937. but the comps are somewhat meaningless in my opinion, and i'll tell you why. the big news, and i'm not talking about from a personal level. i'm talking about from a market level is china. why? because chinl is not only potentially slowing more than we think, but the amount of money they've paid to stabilize their investment, to stabilize or manage or manipulate their markets. some of these numbers coming in are astronomically high and i understand they have several trillion plus in cash. they've made a bit of a dent in that. what is that really telling us? it's telling us that their relationship between the eurozone and china, which is about trade, one of the partners

in the form of china is having issues. the other in the form of europe is having less issues if you consider greece an issue. but it certainly doesn't mean they had the relationship on china is going to be better affected now that greece is getting a third bailout. so what i'm getting at is, if the spread to ten-year notes and bunds has remained roughly around 154 to 156 for weeks and weeks, we can say there's another reason for the flattening. whether it's the front-loaded qe, the fact that they're off in august. forgetting the market signals, the bund getting as low as four basis points, the notion of what's going on and the ultimate slowing and the relationship of trade with china is going to keep a foot on the bund. and if you keep a foot on the bund, the spread tells me you keep a foot on 10's. the argument falls flat. where does it leave us? fortunately or unfortunately, many are still jumping to the conclusion that a flattening

curve means the jump is in september. they're now putting their credibility on the line. because testimony this week certainly is affected my perception about what occurs in september. carl, back to you. when we come back we step into the octogon with ufc fighter rhonda rousey, julia boo boorstin has it after the break. we both felt it i took tylenol at first but i had to take 6 pills to get through the day. then my friend said "try aleve". just two pills, all day. and now, i'm back for my best bud! aleve. all day strong and try aleve pm, now with an easy open cap. can a a subconscious. mind? a knack for predicting the future.

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the nasdaq is now at a record high, it's google. crossing the $700 mark. impossible it take your eyes off of it. and facebook in sort of a halo effect, hit 95 after google's monster earnings last night. we'll keep an eye on that. meantime, fresh off her espy's win for the best fighter, ufc champion rhonda rousey getting ready for her next big fight. our julia boorstin caught up with her. >> as rousey gets ready for her big fight coming up on august 1st in brazil. she says she's bullish on the growth potential for ufc and the whole business of mma. >> i believe that fighting is an innately human thing and we live in a very bubble-wrap society where every ounce of aggression

is suppressed in us constantly and we need a healthy outlet for it and i believe that mma is not just exciting for every person to watch, but it's also a very useful thing for everyone to do. >> with rousey's dig at floyd mayweather at the espys wednesday jabbing at him over his domestic abuse convictions and her trailblazing for women in the ufc. she's drawn attention to sexism in sports. is rousey said she's encouraged by progress, led by mixed martial arts, where divisions are defined by weight, not gender. >> because mma is such a young sport. it's able to be the most innovative and progressive when it comes to women. it's the first sport to not separate the men from the women. we're introduced as band amweights or strawweights. >> rousey is planning for life after her fighting career with roles in "furious 7" and

"entourage" in theaters this summer. she's investing in a career in acting. >> i want to be the first chick that's able to do a fight scene and a car chase and a high jump all in one long shot with no stunt people you know. i want to be able to get good at all of that. i want to be able to fill some sort of space that no one has been able to fill in that industry, too. >> rousey is following into the got stl tfootsteps "the rock." >> i got to ask, is she as intimidating when the camera is off as she is when it's on? i know serena williams is a sweetheart when she's not on the court, for instance. >> she's the real deal, she's not messing around. she has every intention of maintaining her undefeated streak and it's really core to who she is and her personality. she's very friendly and very nice, but i would not want to be in the ring with her. >> absolutely. love to see these strong women, athletes performing at the top

of their game. the apple mamgic may be back as the stock nears an all-time high and slayers have risen 7% for the tech giant in the last five sessions, will the trend continue for investors as we approach earnings? here with more is ivan fineseth, cio at tigress financial partners. apple is one of your top holdings. can this sustain, when there's questions about how well the watch is doing. does that mat centre is it all about the iphone? >> the iphone is the key to the apple ecosystem. it also ties in the watch and ipad. and computers and most importantly, itunes and their music streaming. it all will come together. what we want to hear is them articulate the long-term view. i don't expect that iwatch, apple watch sales will be big in the first quarter because there was somewhat of a delay in manufacturing and shipping. >> are you concerned about china

at all and seeing as they're looking for growth there so much and we can see line in the report every quarter? is that an area you'll be watching as earnings approach? >> absolutely. china will be a long-term area of growth. it may have -- slow starts and stops over time, it may have negatively impacted them this quarter. but i think china is the key to long-term growth. >> for a long time we were waiting for apple to go on sale and it did. but only to the 200-day. we know historically you can't argue it underperforms on earnings. what is a reasonable discount to get in for those who want to own it for a while? >> we feel the intrinsic value is north of 150. if can you buy it around here at 129, 130, it's still a good buy. we think by the end of the year the stock will be over 150. >> what do you make of apple's

potential to expand margins. normally there's no design change with the s cycle. we saw such strong margins with the long screen phones the first time around. should we expect to see improvement? >> what we focus on is what we call their economic return margin. their return on capital, which is right now at 27% versus the cost of capital, which is under 7%. that margin continues to expand over time the stock will go higher. so many people in wall street focus on the gross margin on sales. which apple has a phenomenal gross margin on sales, the economic margin is the most important thing to us. >> there's always going to be pcs to worry about and lately there's been tablets to worry about. how much do you consider those? is there a balance sheet and earnings power in phones so powerful those sort of roll off its back. >> i was a little disappointed to see a softness in ipad sales.

but overall i think you're going to see strength ant weaknesses in different product categories from time to time. we're seeing strength in more higher-end pcs, an area that apple is not in. but people are not buying lower-end pcs, they tend to buy pads and phones instead. that's how they're accessing content and the internet. >> one of the notable things in google's earnings report was how diversified the revenue sources were. if one area wasn't performing well, you had another come in to pick up the slack. what is the area for apple that might come in to pick up the slack if the iphone wavers eventually sometime down the line? >> it could be laptop sales. and it also could be music and content sales on itunes. because that is the key. the that's where they can make additional money, it's not only about the devices but how people engage the devices to purchase

other products. >> ivan feinseth from tigress financial partners, have a great weekend as we watch the stocks run. it's quite a thing to see. when we return, a driverless car, an accident and an injury. what google has to do with all of this. equals great rates. it's a fact. kind of like shopping hungry equals overshopping.

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at ally bank no branches equalsit's a fact.. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda.

google self-driving car getting into its first accident that involved a minor injuries. this is a video of the company actually shared of the collision. in which the self-driving vehicle came to a slow stop before an intersection. the google car was then hit shortly after by another vehicle that did not slow. this is the 14th accident involving a google car in 11 of those, google says its vehicle was rear-ended. baby steps? >> yeah. i guess next they need a self-gesturing car. because if you're not driving if the car gets rear-ended, you expect the car to respond in some sort of way. >> yeah, interesting. maybe the one piece of publicity they're not happy with today. after everything else that has gone right for them. our eyes are being quickly drawn to etcy. a report, was this mentioned on the call last night -- etsy. the chief business officer at google made a mention of etsy

saying that developers are seeing a deep traffic, 30% gain in etsy, which has been nothing but pain since the ipo. >> it makes you wonder how, how many shares were short in etsy. clearly, i know short interest as we had been talking about. you had been saying hen h been rising since the ipo, some people getting squeezed on the positive mention. >> we talk about tech doing so well and the nasdaq 100 at these 15-year highs. google, netflix. the reports have been happening all week. it's companies like intel that are keeping the dow in the red today. intel the worst performer. we had the earnings earlier in the week and as far as next week goes, jon, i don't need to tell you, ibm, apple, microsoft, yahoo, boeing, catcaterpillar,

coke, you make it. >> i'm heading out to our san francisco studio to cover it up close. >> get some rest over the weekend. you're going to need it, something like 450 companies report next week alone. let's get over to headquarters, scott wopner and the half. have a good weekend. ♪ welcome to the halftime show, let's meet the starting lineup. jim lebenthal along with josh brown, steve weiss and martin block with rhino trading partners. risky business, why someone on this show says you should invest in china and russia. he's here live to debate our call of the day. spin doctors, our experts weigh in on whether to own ebay or paypal. and whether history says shares could go after the split. we begin with a big day for the nasdaq. an historic day for google. company adding $60 billion in market cap today alone. following earnings that beat expectations. the first beat in two