sell-off, it's estimated that buffett may have lost $1 billion. >> our david faber sat down with ginni rometty today. and despite those earnings and the sharp drop in share price today rometty sounded upbeat about where the company is focusing its efforts right now. >> we're reshaping this company around analytics, around cloud and the term i use engagement, social mobile security, but all for the enterprise. collectively, almost 20% growth improved every single quarter and even individually each of those areas. analytics which ended last year at 16 billion, up in total 8%. a very large number. you take a look at cloud, greater than 50% again. and then social mobile security, every one of them. >> david faber is here with us now with more on his exclusive conversation with ms. rometty. david, welcome, good to have you with us. how big a test is this for ginni rometty? is this her first big one? is her job at stake here if she can't turn it around? what? >> i don't think her job is at stake at this point, certainly, tyler, but i will say that there's no doubt that this is ginni rometty's ibm. i

we're going to have ginni rometty about buffettand the shareholder base. the conference call is i believe still going on. mrs. rometty is on that call. that is not typical for an ibm ceo. many of her predecessors also did not participate in those calls. so that does go at least to the urgency they see of communicating at this critical juncture for the company. >> this is the lowest q3 revenue for big blue in five years. and the spoke says it is not gap down 7 1/2% since 2002. you could be looking at historic price action in big blue today. they talk about this quote, jim. we saw marked slowdown in september and client buying behavior and our results point to the unprecedented pace of change in our industry. when you couple ibm and sap and google and netflix and ebay and ncr, what's going snon. >> september is europe. september, china. these are things that have been plaguing a lot of the industrials. that's why a lot of industrials have come down. i could counter with honeywell having a really good number. i could easily counter with ppg saying we can handl

david faber after having interviewed ginni rometty this morning. apple pay launches nationwide and mcdonald's and macy's, josh lipton had a chance to catch up with eddie inside a whole foods. hey, josh. >> hey, carl. so today apple launching its new mobile payment service, apple pay. it's going to be at some 220,000 locations across the u.s. whole foods, macy's mcdonald's, and here's how this service is going to work. users can step up to the checkout terminal, hold up their iphone 6 or iphone 6 plus to a special payment terminal and with just the touch of a finger, that transaction is completed. what apple is trying to do here is take advantage of that mobile payments market which is expected to quadruple to $90 billion by 2017 according to forester research. i did have the chance to speak with apple's eddie q and he talked about how the service is safer, easier, faster. he said that traditional payment methods and how it's more secure. take a listen. >> all of us right now are having to deal with all of these credit cards getting exposed and your

this is part of ginni rometty's strategy. is the timing right for this move or should it have happened earlier? >> i'm sure they would have liked to have had it happen earlier, but it just did not get done, for whatever reason. i don't know the answer to that question. i think it was important. it was consuming cash flow. it was a distraction. it wasn't core to the business anymore. statistically, longer-term, the right move. >> we have about 80 seconds left. ibm shares have fallen almost 3% this year through last week. when will we start to see a turnaround? >> i think a lot depends on what happens next year. there knock when a comment on the outlook until january. -- they are not going to comment on the outlook until january. kind of stabilize earnings and cash flow next year, and i think that creates a base for which the stock continues to perform in 2015. ondavid grossman, joining us the phone from san francisco. thank you so much for your time today. the fate of pro-democracy demonstrations in hong kong. we will take a c