listen to what david einhorn had to say. >> are you going to stay in it?think the stock is very, very substantially undervalued. >> it will be a trillion dollar company? >> i would expect. i think it's the best big growth company we have. it is the dominating brand in what -- in the area that it is, and it trades at a multiple below the average and i think that's extraordinary. >> it's a stock, mandy, that's so well loved from the hedge fund community. >> it's more than a prospective. he is talking getting up to one trillion, but he's not talking about being in it for a quarter, but for a long hall. >> on down days in the market, you will see larkts not hitting at hard. but people believe in the long term aspects. . the television coming maybe -- >> when you talk about the valuation, just look at the numbers, it's trading below the average for the s&p 500. they say the proof is in the numbers. let's talk broader markets. we're currently down by 89 points. we're certainly off the session lows. they were down about 115 to the downside. continuing over the pa

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i mean, if you had like two years ago where david einhorn, who's... may have been a year ago, david einhorn, who's a big shareholder of microsoft was saying "it's time for ballmer to go." you have this new wave of products that's about to come out. windows 8, their next servers. xbox 720, you just had windows phone 7 coming out. maybe that will turn it around. >> rose: and these products are getting good reviews now. >> but they aren't selling. windows 7 is out. windows 7, great product. people who buy it love it. very well reviewed. but it's not selling. and i would say it's not selling because of that whole iphone cache. >> rose: on the other hand, android has come on now strong as an operating system for wireless devices. >> and it's just... it's... on some levels it's confusing. why has it fallen so badly? i'm beginning to wonder if there's a problem with the windows brand applied to other devices. because in a way if you think about it, windows is a word that's been around for 25 years going back to the late '70s and when you have in the technolo

you have david einhorn buying. they prereported with maybe a 4% revenue shortfall.ck is beaten down to the point where this may be an interesting name for a trader ahead of the earnings. >> is it often you go against what the model is predicting? you said the model looked bullish for seagate. >> no, i believe in the model. the model has been great for finding potential land mines. >> but this is a land mine, no? >> the reaction is not that bad considering the shortfall. this stock kaufb down 10 or 15%. it's down a point and a half. i don't think that's a bad reaction. normally, i'm not a bottom fisher. if the model is bullish, typically the stock is moving up, like a t.j. maxx. >> i know you're positive on ebay. you certainly cited the fact this stock has done well. what is it in the ebay model that has you excited in a world where people have a lot of competition? >> it's paypal. 110 million paying subscribers. compare it to facebook with 900 million nonpaying subscribers. they reported a very positive earnings surprise in april. the stock spiked up 10%. i doubt th

and david einhorn basically called the thing a fraud. they are in the business of trying to sell coffee at $ 30 a pound. they won't be able to continue to do this. no way, no how. people won't continue to buy coffee at $30 a pound. their business is toast. plain and simple. normally, i wouldn't want to do a one by two. since -- this is one of the situation where is it actually worked. look at this, down 50% where you make the most money. one of the few cases where i absolutely hate a stock and don't mind being net short puts. >> you make me ashamed of buying k-cups. $30 a pound? no more. and shorting green mountain stock could put portfolio in the red with big time losses, enis' trade, a 5-1 payoff. he could be forced to buy green mountain stock for 7 bucks, even if it falls below that level. this trade could tie up cash. got a question? send us an e-mail at optionsaction@ optionsaction@cnbc optionsaction@cnbc.com. we'll offer it in the options extra after the show. >>> now there is a healthy trade. last week, khouw and carter made a bul

. >> i just want to mention, apple can still rally -- >> a trillion dollars like david einhorn? >> i don't have a trillion, but i would bet my money on it. >> so what did the fed know about the rate fixing scandal and when did it know it? congress ready to ask those questions. they asked barclays about the market in 2008 when timothy was the president. >> one of the questions here is what was geithner's roll in all of this if anything. and tim geithner is expected to be in front of the senate banking committee ready to testify. we'll see ben ber nak key up in the senate testifying. it is now clear from conversation wgs folks in the senate that bernanke will be asked about what the fed knew and when it knew it. and on the house side, house financial services compete, they're sending this letter just yesterday now to the new york fed asking very pointed questions including please provide this sub committee with all transcripts in your position that relate to barclays and the selling of interbank off rates up until november 2009. s that a sweeping request. clearly the committees th

will counting calories crush buffalo wild wings and the real reasons david einhorn is bowing out of best buy. thee straight days of double digit loss. if that holds up, they're having the biggest one day slides of july and tote tal up all those loss, they're having the biggest skid in three months. let's get to courtney reagan and then to bond man rick santelli. we've had in terms of monday, eight. we used to have turnaround tuesday and i don't think we can call it that. >> i think we've broken that streak and the bad monday streak. down about 158 points and it happened after the european close. europe still a worry. we cannot get out from under it. all major certificates lower and financial sectors in official territory meaning we have loss. and we will keep an eye out until the end of trading today for earnings. and we heard about earnings season so far, it's taking jobs. investment banks are stepping up their job cuts in asia due in part to a slowing economy and some names include morgan stanley, credit suisse, deutsche bank. they passed out pink slips in the past few weeks. but a cou

listen to what the hedge fund manager david einhorn had to say about apple. >> think the stock is very very substantially undervalued. it's the best big growth company we have. the dominating brand in the area that it is. it trades at a multiple below the average in the s&p 500. i think that's extraordinary. >> i will just lavish the love on apple, i won't just lavish the love. if we're going to be critical, we will be critical. it hasn't been that great on services in general. siri isn't knock ag lot of people's socks off. have to deliver on the suite of i-products. and wondering if they can do that well. if they can't, other folks will have a chance to do something. >> is rimm's loss apple's gain? >> i do think it's apple's gain, android's game, everybody's game. you can't knock apple off. the products are great. when you boil it down to that -- we talk about early adopters, those beyond adopters are getting involved because it is one of the easiest games around. >> you know why apple is great? because they don't have 72,000 phones with 200 different names. qx 7517. one or two produc

david einhorn with good comments on "squawk" this morning. >> undervalued. remains undervalued when you take out the cash. in the premarket my guess would be you would see hewlett-packard, dell trade lower off of the back of the amd plus amat news this morning. those two stocks certainly have issues of their own with hewlett-packard close to 52-week lows even today. >> i do not see a case to own hewlett-packard. i just don't see one. >> you haven't seen it for a long time. listen, the turnaround there, it's funny you like to talk about hewlett-packard. >> i like procter & gamble and hewlett-packard. >> do you put them together? hewlett-packard is going to be a long-term turnaround story. i don't know when you buy it if you buy it. certainly you don't believe the time is now. >> why do i mention hue let and proctor? when i was in a formative stage at a hedge fund manager, you're talking about the single greatest tech company and the sing isle greatest consumer product goods company. they are clearly not that anymore. just not. >> that's true. but it doesn't m

david einhorn will be the first to say as much a software if not hardware. >> it's a brand.a brand that's unique in that you open a store and they come flooding in. i look at it as a software company, a consumer brand company, a product company with itunes and all that. it's completely different and has survived and will continue to survive economic downturns. >> what do you like in tech. >> we own apple, emc. aspen tech interesting, they have exposure to the cyclical industries, chemicals and energy, enc companies. i want to see how this fare in this environment. if that one were to pull back, it's actually quite interesting. >> grasso. my everything girl amazon, retail, cloud, tech, device, name it. they have it. obviously susceptible if it does come in, at this point a high flyer. we've been waiting for the stock to coin, hasn't done it. it's been bucking the trend. i'd nibble here and maybe break a tooth as weiss said earlier. i would buy here in case we're wrong. >> weren't you the one who last said, who buys a big tv on amazon. wasn't that you? >> do you? no one buys a

staying on the amazon theme, green light capital's david einhorn talked about the giant. let's listen. amazon doesn't seem compelled to make a profit and it is hard to compete against somebody that doesn't feel the need to make a profit. >> if einhorn has a position but the days that he makes is that it is incredibly difficult to compete against them and grow in scale. >> the dangerous part is if you're revenue starts to dry at some point you do have to say i have to make a little bit of money. that's the scary part. >> i liked this as we were talking last week about the smartphone because of the fact they don't have to make money with the device, that they could use it as a way to push amazon prime to push transactions through their platform, retail and/or books and so forth. i think that's a big positive going forward and gives them a hammer nobody but apple has and given that apple makes a considerable amount of money from its product and these guys might be able to compete with a product but they are willing to lose money on, i think that bodes badly for htc, samsung,

at least one of them, green lake capital co founder david einhorn, has vowed to give anything he earnsrity called city year, which brings us to tonight's number. $5,533,328. that is the amount of the tournament's purse that is being donated to charity. specifically, one charity. it's called onedrop.org, it's an organization that develops access to water and sanitation projects in developing countries. obviously, a transformative amount of money for any organization. and the tournament was actually the brainchild of a guy named guilla liberty, co founder of cirque du soleil in sixth place. britain's sam trickett currently in first. they get so into this, it could be several days before any of these gentlemen actually take a shower. that was the grossest thing i heard all day. >>> and now let's get to the outer circle where we reach out around the wobbled. we go to london, where the top two executives at barclays, ceo bob diamond and jerry de missier resigned. regulators in the u.s. and britain find fined them for manipulating lending rates, directly linked to how much americans pay on m

dell and best buy both gone, david einhorn selling out of both of these positions.ey thought there'd be more growth in the non-pc business and said there wasn't and the deterioration of the pc business was worse than expected. what i think is really interesting on best buy, carl, is you know we talk about this idea of showrooming, going into best buy, looking around, and buying on amazon. einhorn's team says that's not true. surveys show, and i'm going to wrap in a second but i can't read a 17-page, just give me ten seconds, basically that people are not showrooming, that the pricing is comparable. they said it's rather a deterioration in the chinese business, that's a big part of the story. i didn't know they had a chinese business. >> interesting. and i think both of those positions closed at a loss as far as we can tell. >> in his third biggest long is gm. >> gm. >> which is only down, a new low every day. >> interesting. the letter is worth reading, fivees, is a little dense. markets down 110, triple digits of course and as we said at the top of the hour we have