i'll speak with closely watched facebook critic dan niles about today's pop. wait until you hear his take. back in a moment. >>> welcome back. noted technology fund manager dan niles made a killing on facebook from day one because he shorted it. he bet against the stock at the opening highs. in fact, he warned viewers of this program about facebook's valuation in the days before the ipo. now he's covered that short and says the stock may have bottomed. joining me now on the telephone is dan niles. always wonderful to talk with you. how are you? >> i'm doing great. >> you made a lot of money shorting facebook, but you covered your short. >> yeah, we're actually long it. >> so you're buying the stock now. why? >> well, we bought it yesterday, got long. main reason was the following. when you look at facebook and the reason we were negative on it from day one is that they had no mobile strategy when they went public. so if you think about it just big picture, when the way facebook makes money is when you log on to facebook on your desk top, they make money by sel

. >> let's bring in longtime tech investor dan niles of alpha one capital partners to find out what he thinks about the latest earnings numbers and technology in general. dan, welcome back to halftime. it's good to have you on the show. >> thanks, scott. appreciate it. >> are you worried this morning? are the alarm bells going off there's a real problem building in technology? >> i think you have to look back and separate out fundamentals from the stock market. those are two different things. if you look at ibm, everybody is looking like it's a big shock. you have to remember, this is a fifth quarter in a row that bim's missed their top line revenue. this happens to be the worst miss out of the five, and it's the biggest miss since q1 of '09. they haven't been making the top line for over a year now. >> if the bottom line is getting worse should we be more worried than we otherwise might be? >> yeah, and i think that's the point. one thing that's easy to forget is this was the quarter that ibm should have been fairly close to their numbers. they were launching a new main frame during t

. >>> also, dan niles won big by betting against the stock.ut now guess what he's doing. >> he's changing his tune. >> buying the stock. he's here to explain why. stay tuned. >>> facebook having its best day since the ipo back in may. jackie deangelis tracking the move. >> good afternoon. it's also the strongest day, heaviest volume for the stock we've seen since its ipo. over 200 million shares traded today. of course the company reporting strong third quarter revenue yesterday and progress on making money from the mobile ads. 14% of its advertising in the period came from mobile devices. upgraded today to a buy from citi. bill. >> all right, jackie. thank you very much. let's talk about facebook and this big number and the big gain today, up 18% after big earnings report. let's compare it to google. both of them scrambling in this mobile advertising space. on the technical side, it's mark newton, chief technical analyst with grey wolf execution partners. lou, did the market underestimate facebook's ability to turns things around? >> i think

. >> you know grasso i think it was dan niles who was concerned about this very issue earlier in the week the fact that ibm missed on the revenue side for something like four quarters in a row. >> right. just as pete said before this company went from a hardware company to a service company now a cloud service company. they are looking forward the future. i would use technically a 190 level at the stock but i wouldn't be afraid to buy it. >> stocks are at session lows. we've been focusing on the nasdaq taking the biggest hit today. dow jones industrials average a loss of 154. the s&p 500 is off 1.25%. translate to an 18 point decline. jackie what do you see? >> we're watching the industrial names. let's start with parker hannifin. revenues were line but lower than full year guidance. general electric revenue missing analyst expectations at ge due to unfavorable exchange rates. earnings meet there but the company is cautious. they are holding that full year profit outlook steady. ge is lower by 3%. >> when halftime returns top dow stocks since black monday. but first a tale of two ear

. >>> then noted tech investor dan niles has made an absolute killing shorting facebook.ow he's buying the stock. we will ask him why coming up. we'll see you at the top of the hour for the always unpredictable last hour of the trading day. see you guys then. >> indeed we will. thank you, bill. >>> big news for brooklyn. new york islanders are moving to the new barclays center. our gary kaminsky joins us now with more on that special story with a special guest. he's wearing a kangaroo tie for the event as well and he is live from the goldman sachs asset management conference. gary? >> mandy, thank you so much. i am wearing that tie and we are very fortunate to be at this great event and be sitting with maryann who's made some big news today in terms of bringing the new york islanders to brooklyn. >> about 45 minutes ago i crossed the bridge from brooklyn where we announced a 25-year deal with the islanders to play in our house at the barclays arena. this conversation has been ongoing since we announced the move for the nets to brooklyn. obviously having two hometown teams

on the news line is dan niles senior portfolio manager at alphaone capital partners. . >> how are you? >> good. you've not been shy about making controversial calls. how resolute are you? >> are you using your cell phone more now than before or your tablet now than you were before. if that's all true relative to your usage of the pc then google don't have a problem because its simple math. your pc has a much bigger screen size. there's more advertising that can be put on there. relative to your cell phone. they make about half as much on the cell phone just because the screen size is a lot smaller, optimistically half as much. you have the iphone 5 out, great phones from samsung and a lot of tablets out and specifically the ipad is selling very, very well, and google has to pay a much bigger traffic acquisition cost to apple for the searches that come off of that which people tend to forget. they don't have much share in the tablet market. >> is that as big or a bigger problem than motorola and the degree to which they are bleeding cash? >> that's a great question. tha