google and facebook are the dominant players in the industry full stop. n'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 no

i have a buy on facebook right now $100 target. google is only half of facebook's valuation if you use an enterprise value and google is worth at least half of facebook. i'm not arguing with if facebook's value is justified where it is but google is not worth anything less than half of facebook. >> happy friday. thanks for joining us this morning. >> thank you. >> in the meantime germany voting to keep greece in the euro or at least to keep the conversation going. steve liesman has more on the vote. >> reporter: the german parliament approving greek bailout negotiations after chancellor merkel gave a strong message of support and a little dig at her finance minister saying the alternative to the greek bailout was not a time-out as the german finance minister said. strong support coming especially from the junior party to the coalition. notice it's to approve the greek bailouts talks, not an actual bailout. we talked earlier in the day with david lipton, we talked the imf insisting upon a debt restructuring and he suggested the gap was not

while everyone was focused on google and the nasdaq, one tech giant made an all-time high, facebook surgingon the heels of google's numbers. is $100 a share the next stop? normally this would be the story of the day. somehow nobody was talking about it. >> facebook was the story of the day, whether it was breaksing out to new highs or not. this is a story i was starting to think of facebook as old tech. i underestimated the ability of the stock to raly. i would be the first to admit. i was selling upside calls in this thing, i was caught a little flat-footed, i have to say. >> if we're going to rewrite google, we should rewrite facebook. >> well maybe, melissa. the thing about google is there was a lot of bear talk about it. you had them getting into research, nanotechnology, balloons, auto, car, google glasses. a lot of sellers say they're putting their money to the wrong place. that gave me huge pop. facebook tended to follow that that doesn't mean, i think a lot of what facebook is doing has been priced in here. certainly they could have a big earnings day today. when they come up in a c

emily: google and facebook are trying to do a lot of the same things. who wins? h: i think they both win, but in different ways. i think what happens is that google wins with respect to the entry point. they own the front door to the internet, and they own the front door to 90% of the mobile apps. facebook owns the experience once you're there. emily: speaking of another big company that you're not fond of, you once wrote that tim cook has created a milquetoast, say-nothing, uninspiring, margin tweaking image for himself. you also said that apple should bypass tesla and make elon musk the ceo. do you still believe that? chamath: yes. emily: why? chamath: i think that he is very good at what he does. i think he is probably an exceptional operationally minded ceo. it is just the question is, can that person inspire the type of creative types to build the next lily pad? my intuition on this is no. you go to a company like apple, death marching to a trillion dollar market cap. think of the amount of wealth that is created in a place like that. but then think of what t

peter: facebook with social networking. google in search. ily: yet, you argue for the last few decades, we have been in a tech slowdown. have facebook and apple and google not been innovative enough? peter: as a society, i would argue we have not done as much as we could have. you have had less innovations in areas like energy and biotechnology, and not as many as we would like, transportation, it is not moving any faster. emily: one thing he would tell entrepreneurs is don't copy mark zuckerberg and bill gates, why not? peter: the next mark zuckerberg won't be starting a social networking site. the next bill gates won't be starting an operating system, and so in some sense you cannot copy them because they did not copy somebody else. emily: you also suggest that they come up with one very important truth that very few people agree with you on. why is finding something nobody agrees with you on the best way to get everyone to believe in you? peter: i think great companies have a sense of mission. they have a sense of where is no one is doing

challenges for smallll businessess is bandwidth, how we allocate our time we have to be onon linkedin, facebook google plus, twitter instagram, pinterest. we have to have our website updated. we need a video blog. we nd a regular blog. we have so many difffferent types of media where we need to be consistent, and there is no getting around it. what are we doing to streamline our messaging to make sure if someone checks out your linkedin profile, they will see the same thing on your website? find a way to reamlineour message, make it easy to understand, but be consistent everywhere. rebecca: step number four, once you have done all of those things, you have to maintain and eve all --volve. >> i made sure i picked a platform that was really easy to use. when i am on washington business report, i make sure the day we are on, i update my website, my linkedin profile, my s smart ceo articles. you haveo stay on top of . you have to be your greatest advocate and make sure you are yourest client. everything i do for my client is makingure they are creating strong messaging in the markrketplace. i have to prac

emily: you think facebook, google, alibaba, microsoft, they would all buy twitter.hris: all those companies would benefit strategically. they would all be able to explain to their shareholders why they would pay a lot of money for it. and it would fit into their companies without blowing out or competing with something. emily: what about apple? chris: i do not think apple cares. i do not think it is in their bones. i do not think they don't care enough. particularly with apple, i think they go in a different direction. they don't care as much about the human or social elements. i just want to be clear about this, though -- i don't think twitter should sell to them. there is literally unlimited potential in what twitter can build to get to 100 million more people. if they do that, the stock will be trading in the 70's, 80's, and 90's. that is why i am not campaigning privately or publicly for it to be sold. if the board stops believing that at any point, i don't see anybody on the board that would block that sale to someone who think they can do a better job of it. i

facebook gets to three years but they were private for a long time. longer than google but people want to go to different schools now because they want to get jobs at facebook and google. >> i think it's great. >> i remember when i talked to andrew lock he was comp engineer. he was thinking that could hurt him at facebook. >> that's tough to beat. >> he graduated. >> he graduated near the top of his class. >> that dude is smart. >> he is everything. we're nothing. >> muted picture here this morning with the dow almost exactly flat and the s&p right at 2100. let's go to the floor. >> reporter: really a very mixed picture. everybody is talking about what happened to retail sales down 0.3%. this is a big problem for two reasons. number one, we're going to see cuts in second quarter gdp estimates, bond yields are down here, so maybe 2.5%. take a look at the banks. the retail sales print caused the yield curve essentially to flatten. that's going to be a little bit of a problem. that could be a big head wind for the banks. jpmorgan and wells had earnings out. what i care abo

google, amazon facebook and apple. google's up 20% in july. facebook up 10%. and apple up 3% this is just for the month of july. it's an amazing run, the problem is the market capitalization of these companies are so big, they're disdorting the indexes which are weighted by market capitalization. the for companies have a market cap of $1.7 trillion. the nasdaq's 100 market cap is 5.4 trillion. the four stocks account for 31% of the value of the nasdaq 100. four stocks. is there a tech bubble going on? it's not really most stocks have not had huge runups this year most are not overly expensive. apple is only 15 times forward earnings google 23 times, that's not really expensive, there's no growth in the world, so everyone is crowded into very few names like those big four i mentioned that have any kind of growth. those stocks keep getting bigger and bigger at the expense of everybody else. for nightly business report at the new york stock exchange. >> scott kessler joins us now to talk more about the tech sector and what this narrow leadership we're seeing mean

health care mostly biotech, and third tech and internet stocks particularly the big four apple, facebook google and amazon any sign that these three groups are falling apart will elicit panic among traders. so far that has not happened. that's why amazon's surprising swing to a profit after the close is a big relief to investors. for nightly business report. >>> a whopping 54 companies in the s&p 500 reported earnings today, making today the busiest day of this earnings season for mcdonalds to general motors to underarmor dominick chiao rounds up the reports. >> mcdonald's, the world's biggest fast food restaurant chain reported earnings that topped analysts estimates on sales that were relatively in line with expectations. investors were concerned that those sales at stores open at least a year continued to show signs of weakness. fellow dow member 3m was one of the biggest drags on the index. the diversified manufacturing company that makes everything from scorch tape to computer networking tables reported earnings that narrowly topped estimates as sales fell shy. 3m cut its full-year guidanc

i don't see -- i look at facebook or google and they are trading at very low p/e's actually.o not think we have a valuation bubble, my bigger concern has to do with the large burn rates. emily: if it does not pop, what happens, is there a downswing? bill: there are two things that could cause a correction. one is a macroeconomic. very hard to predict. the second would be the firms that are doing the late stage investments might change their criteria a little bit. i think that is probably the more likely near-term catalyst for something like this, where they start to ask questions about, do these companies really have a business model that can go the distance? we are more cautious. we are still making new investments, but we are more picky for sure. emily: what does being more picky mean? bill: you will see the uber for this or that. ideas that are a fraction away from something else on the dial, that is a bad sign. emily: so do not invest in uber for -- bill: i think anything that is too close to the big thing might be something the big thing does one day. so it's another way

you're looking at google facebook. let's not forget amazon and apple. look at the leaders and the sectors they are leaning in. it hasn't worked. they maintain profit margins. i go with market leaders. >> there are some challenges. >> there are some challenges. to the extent they can spin that off management has done its job. you have to look at the core business at some point. the pressure is really building on marissa mayer. >> paul sweeney will be here tomorrow to break down the numbers. we will make good use of him while he is in london. thank you for joining us this morning. even with prices at the lowest since 2010, investors have been piling into options to sell gold. we will ask a leading bully and provider where does it go next. join us after the break. ♪ and when should have to caption for more than is is not good i just up drying and will she's cute you get to see in the that baby . ♪ ♪ ♪ get excited for the 1989 world tour with exclusive behind the scenes footage all of taylor swift's music videos interviews, and more. xfinity is the destinat

>> one thing they can do in some ways attempt to be more like facebook and google. y to recreate everything themselves. if you think about one of the most important metrics is the number of advertisers they have in their system. facebook has north of 2 million, twitter last time had 60,000. when you are looking at ad fares, they are not well targeted. >> who is your favorite in your coverage universe? >> we continue to like facebook and amazon the most. >> the story is there for them. they continue to build. >> thinking through, again, the reports yesterday about instagram's monetization in terms of its ad display surpassing twitter within a couple of years. that is what emarketer was saying. how many quarters does twitter have to turn things around? >> i don't know if they have one or two quarters. it's over the long term where do they want to go? if they don't get the strategy right, the stock will take another leg down. if you have a ceo that can't turn it around or the street loses confidence, that would be another problem. they still have over 300 million years

google does about 8 billion views on youtube and facebook has done from a billion to 4 billion. truggle between advertisers is to those dollars and ultimately the nice news about-face book coming from almost no video and in google's case youtube is a huge property. one of the things importantly about this story is that the sense is that facebook is slowly grabbing attention away from google and video in particular, but on the last earnings call, google mentioned the views on youtube adibi tded a two-year h. this mystery on video between youtube and google thickens but at the end of the day both of them are really well positioned for what's a secular growth theme. >> there's been this contentious debate over what constitutes a view. facebook had said a three-second view was something advertisers should pay for. they changed that last month and said advertisers would only be charged after a viewer watched a video for ten seconds. twitter makes you watch the whole thing. i'm wondering where the debate will come down and whether you'll see any impact on facebook's video ad revenue ba

there's a billion search inquiries on facebook, 3 billion on google but there's a billion now on facebook. the cost is going down. revenue and profits actually stalled. why? like all of us google didn't see the shift in the economy happening in 80% of its time were less likely to surge. so we are moving away from the search by the share every time we spend less time on the desktop and move to the mobile it is bad for google. it's already harvested. they are taking some of its best features and incorporating it into other products. people talk about how it is going to disrupt tv. it's likely going to disrupt youtube. that is the prediction. there are more videos being uploaded. that is a seminal moment in terms of the ecosystem. google glass is a prophylactic that you will never concede a child because no one will get near you. this is demise of how technology how difficult it is to put people on and how meaningful it is in terms of the decision process. they should have never let this happen. we teach and people can't describe it but they recognize it when they see it so let's articulate

california and he talked how the program benefits because of the data google has about users, so maybe not a zero sum game. facebook is seeing benefit because of the data but so is google. they both benefitting from the move toward more data that advertisers are using to decide how much they will spend, guys? >> john, we'll let you go and check back later on. jon fortt, for instant analysis it's bring in neal. great to have you here in house. >> great to be here. >> what are some of your outstanding questions at this point, and do you think this big, giant move in the after hours session is justified given the results you've seen so far? >> yeah, there is a few things. what else can they do to reaccelerate growth? youtube is a strong business for them, but on the merchant end, the consumer side we want to know what can they do to reaccelerate growth? secondly, what can they do to close the gap between mobile cpcs. we haven't seen the gap closing fast enough. lastly, expense controls but at the end of the day we know this company is governed by the founders and if the founders want to double down on spending, everyt

but google back to 700 and facebook up to 98, we'll watch those, rick santelli. you watching? >> you know technology is a profitable business. you just pointed out google. what's going on with facebook. we look at what the nasdaq is doing. what's the barrier to entry for all of this profitable technology? i'm going to talk about that. but not the business barrier. but maybe the hacking barrier. after the break. when you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about. that's where at&t can help. at&t has the tools and the network you need, to make working as one easier than ever. virtually anywhere. leaving you free to focus on what matters most. i can offer you no interest sittifor 24 months.oday thanks to the tools and help at experian.com, i know i have an 812 fico score, so i definitely qualify. so what else can you give me? same day delivery. the ottoman? thank you. fico scores are used in 90% of credit decisions. so get your credit swagger on. go to experian.com, become a member o

you are hearing about facebook video versus youtube for google. re are trillions of dollars of market cap now dependent on the pie of digital advertising growing fast. >> all advertising is becoming more and more digital. how can facebook and google leverage that into television and other areas? if they can it gets bigger. >> thanks, john fortt. >>> coming up, csx reporting earnings a few moments ago. the cfo will tell us how slowing demand for oil and coal are impacting his business and the broader health of the economy. >>> it's been 20 years since national gasoline tax has been increased. we'll hear from one congressman who wants to double it to fix our nation's crumbling infrastructure. ♪ i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in

there's a war taking place between facebook and google. that is to attach your identity to your specific actions so the company can sell more specific ads to the advertisers. we decided it's okay to attach the actions to the identity. we would rather people not know what we are putting in the box. crazy stuff goes in that box so as a result the only way they can attach the identity is not the same attractions so they are winning the quiet war of identity. i wanted to have a content. in "the new york times" the first important meeting i recommended they shut off google they quoted the information to be free but they thought that it should be held that intention should be told to the highest bid and a lot of the companies were totally blindsided and enamored when they decided to be part of it. and we did taste the content and let them sell it to the highest bidder while we have a bunch of meaningless traffic to sell. you would have thought we would have learned from this mistake but doing it twice publishing on the platform in exchange for 1

now in terms of what to do with facebook next week, i'll be telling guys to do what i told them at googleesterday. you like the stock but you're a little scared, roll your lawns into call spreads, know what your risk is everyone who did that is kicking themselves. but perhaps with another stock they won't be doing that at these highs. >> wall street is bretting big that the run in tech will continue. that's according to a survey you'll only see at the half. rebecca corbin is with us live. founder of corbin research. you talked to 29 tech investors and analysts. no one's a bear. >> we survey on an ongoing basis for industrials, to other sectors and i've never seen that type of bullishness come back. in the absence of growth people are diving into tech and that's what we're seeing. >> does that make you nervous that nobody out there is a bear? you've got 71% of the buy side, 81% of the sell side expect results to be in line or better than expected. >> i get a little bit nervous of the headiness of that response in the market. but i will say on a relative basis, we're not seeing a lot of gro

google, facebook, amazon netflix, all of these companies are waiting to go public longer than ever.re they making a mistake echo -- mark: there's a believe that the public markets are too short-term oriented. netflix would not have the evaluation it has if been markets were short-term oriented. the public markets are willing to do long-term dcs. private companies that are trying to say out of the fray because they're worried about the volatility, i think they are making a big mistake. also, you reduce part of your strategic flexibility by staying private. you cannot do substantial m&a if you are a private company. i think public markets would embrace them, would love to see some of these uniforms come public. the market is there for them. emily: we will see if they start listening. thank you for stopping by. great day for you. do not forget, our inside paypal special coverage continues on monday. we will take a closer look at the very dramatic changes sweeping the payments landscape. up next, united airlines pays out. we asked the winner of a prize where he is planning to go with on

what worked for facebook is google. but probably not good enough given the run we had. that said i don't think facebook is ridiculously expensive. . i think any pullback you're seeing now is going to be bought. >> mike? >> i agree, not a blow away beat on the top line. probably what people were positioned more for: maybe you could ask the cfo, don't they get another eight years before they have to waive the expenses? >> yeah, and i think the day of earnings is a little bit weird. you can only judge so much. if you look back three months i think facebook was trading, in the high 70s. mid to high 70s after earnings. people felt okay about it. it's new data. people have a while to digest it, see what's going on in the broader landscape and had a different reaction over time. i think you've got to keep that in mind. just what happens after hours as soon as this release comes out, could be different based on of course, what's said on the conference call. and then how other things shake out over the next -- >> they didn't get

google, amazon, facebook and apple. look at the numbers. three weeks, google is up 29%. apple up 2%. the reason this matters is they're 20% of weighting in the technology stocks. look at the market capitalization of these stocks. apple is $70 billion. google is $400 billion. add it up. $1.7 trillion. the nasdaq 100 has a cap. those four stocks are 30% of the nasdaq 100 right now. and it wasn't that bad just a couple of months ago. that's why the nasdaq 100 is blowing everybody out of the water. it's up 6% on the month and it's attracting everybody's attention. this is very dangerous to have four stocks that are really moving all of these indices around. we asked your partners how weird is this? it's unusual. right now it's only happened nine times since 1980 that the nasdaq 100 is three standard deviations from the 50-day moving average. this almost never happens. 99% of the time you stay below a three standard deviations. eight of nine times we've been lower in the next week. very rarely do you see this move up rapidly in the nasdaq 100. normally it's lower. i believe t

now may have a new four horsemen -- google apple, facebook and -- pick your fourth -- netflix, i supposewas one of the reasons we saw the nasdaq move to that record close on friday after google's strong earnings. this week we've got a lot of big heavy hitting tech names like ibm after the bell also microsoft and apple this week. that will be one of the things. >> $64 billion in asset value added to google on friday. that's a good day for sergei and larry. >> not bad. not bad. >>> that's it for the very first hour of "power lunch." but lots more to come. >> thanks very much. i'll be joined now by melissa lee. >> hey, guys. >>> 2:00 p.m. on wall street 11:00 a.m. in seattle. you are watching the second hour of "power lunch." i'm melissa lee. >>> we begin with the big breakout in tech land. google trading lower right now but the stock is up nearly 20% over the last week followinging blow out earnings last week. apple has gained 4% in the last month. amazon, new high in today's session. facebook big standout up nearly 25% this year also a new high today. bob, you put out a "trader talk" note

social media ad spend is going to be a big driver for all of the stocks, whether it is facebook, whether it is google. this is an ecosystem other companies build around. so we don't think twitter is going to, you know go down, essentially because it is just like facebook right when they went public. they didn't have a good mobile platform. they didn't know where the growth was. they brought in sheryl sandberg and they turned the ship around and they are off to races this is redux, as facebook was when they went public. melissa: gary, do you agree with that. >> 100%. i will add one other word into it, certainty. the company needs to get some certainty into it. we know somebody is now running the company. we don't know if he will run it for a long time. melissa: lori rothman on floor of new york stock exchange with more details on earnings. lori, go ahead. >> at first blush looks okay for twitter. 7 cents a share versus 4 cents. revenue 580 million versus 481. you see numbers on your screen. twitter numbers were way up ahead of the call this afternoon. looks like initial reaction is satisfactory. waiti

at facebook, the one that just left certainly did. at google a long time, patrick has had a major role in the operation. so they are important executives here. i don't think that's a new think, but it's a very important role in these companies. >> they've been soothesayers in the past week. so a position to watch. earnings parade has continued, visa, starbucks among those beating. pandora having a good day today. shares rallying after market yesterday and rallying today. shares topping expectations, thanks to solid advertising growth. you see the stock up 13.5%. on the conference call, pandora's ceo addressed the elephant in the room, apple music. with any big launch like this and the noise in the marketplace, there could be users that experiment with it and short-term impact. but we don't believe there will be any long-term impact. jon fortt apple music launched in june. they're saying any impact wouldn't be felt in this quarter. potentially in the current quarter. >> yeah. and we'll have to see how this plays out it doesn't help that jim dalr

google or netflix, apple. now we've got amazon and now we have the new acronym. fang, facebook, amazon, netflix and google. do you go tonight? >> we'll have amazon. amazon will be tomorrow night, the other f.a.n.g., i hadn't heard that before. facebook will be next week. expectations are super high going into both of these prints. in the wake of what happened with google and netflix. as a trade, not that compelling to us. as a long-term six do 12-month story. we like both stocks, fundamentals are improving their inflection points, in terms of amazon's north american retail growth. we think there's be a inflection point from the facebook points in terms of google results, video advertising online. if that's an inflection point. facebook is a great derivative tradeoff. we like both of those stocks. >> we're halfway through the year. for marissa mayer, at yahoo. we're still treading water at least on the fundamental business, what kind of a grade do you give thus far and is the pressure increasing or is it just about the same given where we are? >> i think the pressure is increasing on her. we're into year thr

microsoft beat ibm, google beat microsoft, facebook are beating google in mobile.ohn: mark is using market cap. he used 10% of his market cap to buy whatsapp. he is aggressively using the asset that he has, market capitalization, to find the next wave and make sure he is there. david: and in most of those examples, complacency snuck in. mark is the least complacent guy you're going to meet. emily: chamath palihapitiya, early facebook employee, just said he thinks the facebook killer is going to be built in two or three years. john: i do not think that is right. you really need a new platform to emerge. it is not obvious to me what the platform is. we are early on mobile. what is possible is that we are starting to internalize what it means to have a tiny supercomputer connected to the global internet in our pockets all the time. strapped to your wrist or whatever. it is not vr, ar, that will suddenly disrupt the market. something that looks like a toy for a little while. but i do not think the next two or three years will be when that happens. david: i am a big cha

, facebook and google are facing back about legislation to require them to report about terrorist activityeir site. they ban continue tent such as be heading. but the company say they worry the legislation under consideration is too broad and could lead to legal action if they miss a tweet, video or blog that hints of an attack. they say law enforcement could be buried in false leadsism president obama will veto a bill that will be hold federal funding from sanctuary cities. this week the father of kate steinle testified about the shooting that took his daughter's life. the police arrested francisco sanchez, he's in the country illegally. he was released from jail despite a detainer request. jim steinle blames his daughter's death on confusing laws and incompettiness. >> one last question. >> he questions a republican proposal to jail every undocumented person that returns to the u.s. >>> 4:17 is the time, it's time to check in with sal, we've had a tough week when it comes to news. i'm happening we have friday traffic jams. >> easy ride on a friday. >> i have it right here for you. >> we

. >>> twitter, yahoo, facebook and google pushing back against legislation that would require them to alert federal authorities of any terrorist activity on their sites. they told lawmakers they already ban content such as beheading and they alert if they come across something that they fear people might get hurt. they are afraid -- they also say law enforcement might get buried. >>> the stinking rose, garlic shrimp, bananas, ice cream, everything garlic as the garlic festival gets underway. >>> it is warming up for some of us. rosemary will be here next. >>> and why they are breaking ties with the hulk hogan. >>> it is one it calls earth's bigger older doesen. the discovery was made by kepler. it has the poteen to be sustain life because it's just the right distance from the star. they call it the goldie locks zone. >> it is in that habitual zone. it's not too hot, not too cold but just right. >> there are other planets that could be three earth. >>> president obama arrived to kenya under tight security. the president will focus on economic issues as well as -- as well as human right

"the new york times" and around that somehow facebook was in their google. facebook, et there is c-span connected to type kit that is connected to the time so they are cousins by marriage. now we have citibank and google. google is our friend it collects every single bit of information and auctioning off every second of the day. those third-party sites it says 16 third-party sites if we add a few more like home depot or whatever you are interested and within a few minutes a proliferation in your entire screen is in motion. this is sort of meant to terrify only that when kids take drivers said they are shown videos of car crashes. what happens if you don't wear your seat belt? this is part of what our social education is that terrifying? >> it is a reflection of the very early stages of of policy discussion that is why we decided to write a book called "privacy in the modern age". i should say a few words about the genesis because it will help you to understand the significance of the privacy issue not only in our daily lives in the frustration of people tryin

emily: facebook is trying to connect the world in different ways. who wins, google or facebook?astian: i would never comment on that. [laughter] emily: what about the medical contact lenses? sebastian: it turns out, contact lenses, when you think about it, they are big enough to hold an array for receiving energy, putting the sensor on. putting a communication device on. it is very feasible. we are building google x contact lenses that can measure your glucose level. emily: what about trying to cure death, calico? sebastian: this did not come from google x. but it is another audacious moonshot. i have to say this is what i admire google for. there are no people around that lived for 200 years and we don't understand why. there is actually very little research done as compared to research on curing cancer. i think it is a perfectly fine proposition to say, let's give it a try. if google succeeds in finding a remedy for old age dying, i would say that they have done something fantastic for the world. and they will make a dime or two as well. emily: what kind of things do you explo

stuart: looking at amazon, netflix, google and facebook. >> apple. the water. >> this week. stuart: straight up does it take a strong stomach on part of an individual investor to jump into google at $700 a share? >> a strong wallet. >> you have to have real nerve. >> charles payne tells us he is staying away from these. stuart: but he was not wearing a tie remember. >> cool. stuart: not really, he is going to borrow one of mine after the bell today they will speak with chattanooga mayor and andy berke for all latest updates on that terrible story. >> donald trump, latest fox poll with 18% of vote i spoke with tammy bruce about him today. >> trump intrigues me he is interesting with his fundament disclosure -- financial disclosure he is not a blow hard with money, but media always says that about somebody that they are fright frightened of, that also intrigues me. stuart: now, david paul. you come from media? >> i do. stuart: little -- little are you on the left or what? >> i call it like i see it. stuart: are you on the left. >> i call it like i see i

sqult core of this is if we're going to rewrite google theoretically we should also rewrite facebook.well, maybe, melissa. the thing about google is there was a lot of bear talk about it. you had them getting into research, nanotechnology, balloons, auto, car, google glass, whatever. a lot of sellers saying they're putting their money to the wrong plaps and as soon as they had a nice surprise that gave a huge pop. facebook tended to follow that. that doesn't necessarily mean -- i think a lot of what fbs afghanistan is doing has already been priced in here. certainly they could have a big earnings day today, when they come up in a couple weeks here. but i think facebook's in a position now where the stock has already rallied a little bit. i don't know how much more it has to go if you look at the earnings picture and what it needs to do this quarter. >> so the onus is on the bulls? >> it absolutely is. much of what we saw in google today was a function of the cfo finally speaking wall street's language. she used a word that you never hear in silicon valley, and that is "discipline." th

facebook and google say the warnt warrants violate online privacy rights. st san jose tonight. manchester united played the earthquakes at avaya stadium. it's one of the few times you'll manchester united played the earthquakes at avaya stadium. it's one of the few times you'llsee more fans for the opposing squad, than the home team... geraud on cam the north american edition of the international champions cup..... continuing tonight for the earthquakes. san jose seeing red.... in the form of mighty manchester united! take vo man u.... a huge attraction at ah-veye-ah stadium! wayne rooney and company... popular around the globe! === 36th minute...man u up 1-l. off the san jose turnover.... memphis takes advantage.... 2-nil united! === 42nd minute...shea salinas on the end-line.... great pass & fuh-tie ah-la-shay putshquakes on the board! san jose trails 2-1 at half. === 2nd half...same score andreasper-ray-uh guides home the header! man u wins...3-1 they'll face barcelona at levi's stadium on saturday take sot trt: 9 oc: great effort tonight take vo giants & padres in san diego

google with youtube and facebook. linkedin, this is good print against the estimate. maybe stock will move higher. but very much a story that remains to be proven. ashley: jack to follow up very quickly, they're in a good position, linkedin. they don't have to directly fight over ad dollars. it is important but they have premium subscriptions used by corporations to recruit. >> that puts it in more mature place of profitability, diverse revenue stream. how expensive is stock relative to earnings? keep in mind, took estimate down from the full year down close to three bucks to under two bucks for a year. that is a big movement. stock price hasn't come down to match it. that to me means the company has got a lot more expensive. melissa: scott, what will you drill down on the call? what color are you looking for? >> advertising revenue first and foremost and guidance on integration of lindh "today." -- lynda. they lowered the bar and stayed steady and didn't drop really big like other social media companies. to me linkedin is in category of its own. integration of recrui

facebook plans to start testing the drone later this year. >>> google glass is back.s all business. "the wall street journal" reports the company has quietly introduced a wearable version of the device. the new model is aimed at corporate customers, such as health care proirds, manufacturers, and energy companies. >>> facebook amazon google and netflix have all reported earnings. y are you buying? we got your tweets. jeff said i would rather buy popcorn. others say apple is the top pick. given the strong growth they saw in iphone. it depends on what part of the growth story you want to invest in. keep your tweets coming. our personal handles on the bottom of the screen. >> and popcorn bauds we talked to a popcorn company as well. our loyal viewer jeff talks about it. >>> we're still waiting for the announcement of the 2022 winter olympics game winner. the choices are between almonte in kazakhstan and bay squlingeijingbeijing. all eyes are on beijing. they're expektded widely to win the bid for the 2022 winter games. >>> all right. these are the headlines this morning.

with the most potential upside because of the four big stocks we followed closely netflix, facebook amazon and googlehat facebook has the most upside potential? it's not yet had its huge run? >> couldn't have said it better myself. it does have that extra pop that it can go and they're going to monetize quarter over quarter. better and better mobile numbers yes, they are the biggest potential. stuart: let's get to the liquor market. 9:37. >> on friday. stuart: you're looking at diageo, a big name liquor like johnnie walker and other of these things. now they're being investigated. have you heard the stock. ashley: looking whether they're shipping excess inventory to-- and why would they do that the extra shipments to the sellers, kind of cooking the books and-- >> kind of like-- >> why did the stock go down? the stock goes up. they're being investigated by the fcc. why is the stock going up? >> it's probably not impacting now. >> a billionaire investor in brazil may want to buy it and get it on the cheap in it goes down. >> and the bristol-myers squibb paid for channel stuffing. >> channel stuffing b

has facebook had a run up to this point. googleabout expense discipline which surprised people. facebook had already talked about how they were going to spend, they've never been really out of control spenders. do they even have the inclination to say that they're going to cut back on costs? and if they say they're going to continue to spend, might that disappoint investors? >> the only thing that makes me nervous for tonight is i look at this number daily active users over monthly active users. the number of people that are on monthly. it's been all-time high the past few quarters, in the u.s. and canada, it's 77%, it's been that for two quarters. a high bar to keep jumping over every quarter. our investors are going to be a little upset if it drops to 75%. probably not but i'm just raising. >> twitter, not growing. google, just basically shutting down google plus at this point saying it didn't work and facebook has continually hit new highs as far as user growth so with that backdrop they're really strong. >> water or coca-cola.

google, facebook and now uber. scarlet: that transformational? amentally transformational company. google plus fundamental business, the market they play in is the advertising sector. facebook, the same. uber is playing in the transportation sector. scarlet: it's not really a tech company. is a tech uber company the same way i don't think google or facebook are advertising businesses. if you look at where they are marketollars from, the they are replacing is the transportation sector, which is globally absolutely massive. they are the most important company to do something of interest in the transportation sector that i have ever seen. scarlet: what is priced into the $50 billion valuation? what risks are not priced in? >> take all of this with a grain of salt. i'm a big believer at looking -- of looking at numbers. when you're talking about $50 billion, i see their numbers broken out by market. -- two bigme questions on uber right after it won his regulation and that is a domestic question and global question. the other is emerging markets, china

google. it has nothing to do with facebook.'t know how facebook is all of a sudden getting disciplined. google's problem was the fact they weren't disciplined. they had this incredibly short attention span. they were like ooh, there's a squirrel, ooh, there's a driverless car. >> the new technology companies don't need to have discipline. what they need to have is innovation, full stop. in the case of facebook, if you're looking at social media, one of the reasons people are liking it here is one of the same reasons they're having a hard time with twitter, and that is if you -- i'm an active engaged user on twitter and one of the things i find is when is the last time you remember seeing an ad on there? clicking on one of their ads or recognizing it. if that is the type of monetizing engagement that facebook can actually get that some of the other places can't. i think that's why people like it. they should be focusing on innovation. so should google, and not on cost cutting. >> what is google innovating? they aren't innovating

the bill would require social media site like twitter, facebook and google to report to authorities. >> social media is a powerful recruiting tool. no question. the terrorist organizationings are -- are laeshing to use. >> reporter: reportedly getting heat from tech firms saying the wording is too vague and could make companies legally responsible. ny most organizations are going to willingly take on something that says you're responsible if you miss a tweet that talks about terrorism. that's a big risk for some of -- like twitter. >> reporter: saying in part. we share the government's goal. we do not permit terrorists groups to use facebook and people are not allowed to promote or use these groups. we remove the content when we are aware of it. >> it's hard to say if it will move forward. it will gender some healthy debate because @ it's not going to go away. >> reporter: the bill is awaiting full consideration by the senate. >>> new problems for fire stations next month. the protection district will begin reducing a to east county fire stations. three east county stations cover 249

if you look at the leadership google and facebook is really masking an awful lot of weakness so tech is up but that's not a very good representation. most tech stocks are down today. it is google and facebook kind of drag things up they have such big valuations at this point. there is a lot of money hiding out in the xlk and ibb right now. they're holding things up. this is the first day we've seen a crack in financials. sun trust had decent earnings but these stocks normally sell off going into earnings season. we're starting to see that finally happening. the kre, this normally goes down. this week it hasn't. held up pretty well. now we'll probably see next couple days of weakness here. >>> honeywell illustrates a lot of the problems the big industrials have. earnings good but revenues are core even though organic sales are good. part of the problem is due to the currency issues that are out there. honeywell did raise the low end of its guidance up 1.75%. no revenue growth and a problem with the currency is really weighing on the multi-nationals. >> bad combination. >>> general elec