>> google is a high flier. you have to remember most of the stocks that we hold in the technology sector would be construed dividend plays at this point where google is a high multi-le, high data type of stock. it's not appropriate for everybody but certainly portfolio couple handle that aggressive price action. in the long run google is still a growth company. you were talking to a previous guest and a lot of these old line tech companies really aren't growth companies, they're cyclical. google you have to put in that category as that kind of company. i didn't have to chance to dissect the numbers on the way to the studio but i'll take a hard look at it tomorrow. >> dan, to me google is an interesting one. we always hear it's never different this time. but when you think about google being the beneficiary of all that money, the hundreds of billions of dollars that have come out of apple since september, to me you had a concentrated trade here, a similar sort of group thing going on for the last couple weeks on

things such as you tube it said it was search what google is google is a business model incubator and it's funded through heavy cash flows from the advertising business which is so broad and it's growing faster than the web advertising adoption which in of in and of itself says something the funds from this cash flows then go into what is essentially a gigantic venture capital fund you know private equity fund and they take ideas either internally generated or they buy you know small medium sized startups and they nurture them hopefully have them flourish through this business model you've got. to you have android you have several you have google grass and many of these are the top with their industry or field from almost nothing in just a few years and went from less than one percent to over fifty percent and in some cases seventy two percent of the market since two thousand and seven talking about we you know five years phenomenal same thing with you tube you tube is video on the web the grass is the same thing and what google does is google use what i call a negative margin model o

well google i'd call google basically the big brother trade on exchange who is a company that is data driven it's a data company you know their business model as they i see it is basically to be the cake keeper and shepherd of data and information on the web ok that makes them a very very powerful company with that being said who would do it somebody else would do it so might have stated before google the privacy concerns you know outed by snow through the n.s.a. etc extremely valid but you know they were there you know there and they say it's a spy agency that's what they do anybody who's concerned about google glass should be concerned about anybody else with a cellphone grasses basically a cell phone in a different form factor anybody's afraid of a so. phonographs should be free to walk down the street particularly new york city with a camera on every other quanah certainly and then there's the united states satellites so probably sees a big issue everybody should be concerned but you should be concerned. because certain. should be concerned of the problem and not necessarily a pro

they own as much google as they could possibly own and more. google missed numbers. people didn't sell that stock yet because they didn't know where to put their money. now you have an opportunity to buy facebook at a valuation that's compelling and numbers are up significantly higher. here's what i'm talking about. our estimate for the quarter or ebdv. essentially they beat us by 170 million. when you think about how that ripples through your forecast model you're probably adding a billion to a billion and two. >> facebook versus google. in terms of valuation what metrics are you using? you look at pe and facebook doesn't look cheaper? >> the average person probably wasn't putting in this earnings beat. this is a big number. second of all, i used a blended valuation analysis that looks at price earnings multiple, free cash flow yield and an ebapta. there's a lot of stock their that will normalize. a lot of stock compensation was paid out five years ago. today it's a little bet less. in other words, it really is not fair to compare facebook with any other mature comp

the web address is the same thing and what google does is google use what i call a negative margin model of cost shifting mother model where they say very cool technology and very useful services and they offer it for less than free so not only do they that should represent option but it makes it very difficult for the competitors coming behind them to compete because they can't make money as a matter of fact you have to give the client money to get to know that the service is just to people google google is able to do that because they've taken that to consumer and match it with a natural producer and then they have to cross over to the producer and me from the consumer and you know the result is what you see now in google in android well let me ask you with all this new technology there are several privacy concerns us noted isn't it in the news how do you see google fitting into this privacy landscape. well google i've called google basically the big brother trade on exchange who is a company that is data driven it's a data company you know their business model as the i see it is basic

google is available. [laughter] >> if i wonder if you talk about a little bit -- looking in to drug trafficking. you talk about the concrete or more promising application that you have seen in the degree of corporation with u.n. and mexican government. we're going have obama going mexico and it's one of the topics i'm convinced we have really not used technology to the degree as we could. >> let me start an observation. eric and i took a trip to -- >> it was last year. sometime in the last year. and we were start told find that all of the police officers were wearing face masks. imagine living in city that is already very dangerous. st so dangerous that the police are there to supposedly protect you don't want anyone to know their identity. t more extraordinary while the police are busy hiding themselves, the population is busy using their real identities to essentially crowd source where the violence is. they are using various microblogging platforms and social media platform and said there's a virtual c

googles numbers are out. it is lighter than wall street expected. google's eps at 956. it was expected to be at 1078. now looking at the revenue, google's revenue came in at 14.11 billion. it was expected to be 14.42 billion. now maria, two other key numbers to look at here are the cost per click and pay click. cost per click declined 6% over the second quarter and 2% over the first quarter of 2013. cost per click was expected to decline. instead declining 6%. paid clicks increase more than expected. we're expected to increase 20.2%. instead increase 23%. but maria, i want to point out here that revenue and earnings numbers did come in light and that is why the stock is down nearly 5%. down to you. >> and stocks traded lower in extended hours. thank you. we want more reaction from the numbers. ge gene, what is your take on the numbers? was it below your expectations? >> it was. we were looking for the paid click number down 4% and it was down 6%. that is the one everyone is hyper focused on. you need to take the click growth and click growth is better. bottom line is th

buy google and i know you have google in your portfolio. would you buy it at $873? do they buy more? >> i would -- any time you have a price decline like there was aftermarket, it's a good time to add to positions, as long as you have a long-term outlook. >> real quickly, we've seen the stock market hitting new highs but the technology stocks have been holding back a bit. generally you run a text fund. what is your view what is going on with tech overall? >> well, on the big tech names it's hard to see this consistent growth just because the numbers are so large for both microsoft and google. a shift of a billion dollars is just a small percentage. i think the opportunities and the small cap sector will provide and might be more rewarding from an appreciation standing. technology is the key for productivity increases and everybody likes the greatest and best new wide gets. we're awaiting apple's next product. >> thank you very much. >>> new records on wall street today. the dow and a and pskand -- s&p went up. investors were also encouraged

our society inside google evolved. >> i'll tell you, i've been at google for two and a half years. i try it outside google and people get offended. i tell them this is how we do it at work and they are still offended. [laughter] >> tell me about google's labs and how you think through the -- you talk about a park with people can't take picture. if we have a world people are wearing google glass and how will it change the world? >> you can do it already with a camera and microphone that is hidden on the body or outside of your body such as we are wearing right now. i think we would answer by saying this technology is incredibly powerful and incredibly interesting. we have been distributing it in the last week or two to people. but we are also being extremely careful about it. we have registered developmenters. the products are going to developers. we take a look at. applications they built precisely these concern and others. >> give me an example. >> we're going wait and see what comes back in term of applications. you can imagine phenomenal app weightses and application not such a

interns at google are enjoying the good life. a six$6,000 a month salary, and paid for housing. they're making few friends out of their neighbors. >> some loud parties and some late -night hot tubbing are keeping residents awake in the evening. >> reporter: google interns are young, smart, well-paid, and know how to have a good time. this unit is right next to this pool and hottub. and the barbecue grill area where the interns have been known to party throughout the week. >> does it keep you up? >> oh, yeah , it does. but we've got earplugs. [ laughter ] >> reporter: it's unclear how many are here, but a facebook page called crescent village google interns had nearly 400 members. the daily mail got photos before the page was taken down. after numerous complaints, a note went out to all 2,000 residents reminding them to be quiet and considerate. >> i think it's pretty obvious when you have 300, 400 people coming into a place, and they know each other, there's going to be socializing that goes on. >> reporter: google interns have been in the media spotlight with the hollywood film

google is i think the second-largest company in the world.n a political system where money makes a difference, they swing in one way but it is not just the google of the world. amazon doesn't like some of the things i have to say. a too are a mighty economic entity and beyond that are what is referred to as the copy and lots, people who want all books to be free, and when copyright to have unlimited term. most of them are academics and they drive me nuts because there books don't make much money so of course they think they ought to be free because their economic well-being depends on being promoted within the university system where they are rewarded if there books are out there and well read and will review and so they have another way of making money and therefore say everybody's for got to be free. well, thanks, but the constitution didn't envision a patronage system for the creator class. it wanted them to be independent. it is really infuriating when people wrap themselves in the mantle of all knowledge ought to belong to all people but

i journeyed to google's campus in mountain view to meet up with mildred padilla.ry unique movie guru she is with the movie division of google play. >> part of my job is to determine what movies will be big sellers before they are released >> reporter: for homework. mildred had to see dispicle me 2 out now in theaters, she says fans of the first one will not be disapointed. nats - d me 2 mildred predicts dispicable me 2 will top the movie charts on google play when they offer it in the near future she is probabaly right considering google play is now offering 3 original dispicle me shorts which are selling like hot cakes if you don't want to deal with opening weekend crowds for despicalbe me 2 theese shorts are a good alternative to get your minnion fix. 31-17/31:38 $499 for 3 movies, they are super cute who does not like the minions. shorts here's one other option for fun family movies. right now google play is offering pixar's greatest hits at a discount price you can rent these classics for just $2.99. but. perhaps you crave something a little less animated, som

experience before google your goal to keep this site clean yeah i mean google what it started out when people fell in love with it was because it was clean and simple and you got stuff fast and that is what our goal that's right and that's what you're doing more of tonight's conversations with great minds and one of the first. wealthy british style. time to time the. market why not. find out what's really happening to the global economy with mike's cancer were no holds barred look at the global financial headlines tune into kinds a report. that has a new alert and. scared me a little bit. there is breaking news tonight and we are continuing to follow the breaking news. alexander's family. cry tears and so will i and a great thing that has. ended or what is round. is a story many movies playing out in real life. and welcome back to conversations with great minds i'm speaking with gabriel weinberg founder and c.e.o. of duck duck go dot com and we were talking about i don't know how do you make money i mean here you've got these giant companies we've got our most intimate secret informati

you've got google glass coming out. you have the map program of google.any different things going on good with google and they're having a bit of a problem with the mobile integration away from the pc. how do you sell ads on mobile and how do you price the ads? that's a bit of a problem. i think that google is going to figure it out. i think they're one of the best tech companies in the world. unlike microsoft, they are the future, but i would not buy the price and i do not own it. stuart: we hear from you, john. we'll be back. ge, clearly a bellwether for the overall economy. it did make more than expected. apparently demand for jet engines and oil drilling equipment pretty strong so ge is up 2 1/2%. that's a figure move for a big stock like that, ge though still at $24 a share. come on back in again, john. the dow is very close to record territory, 15-5 and change. do you see 16 k anywhere near? i've asked you this before and you've said yes. >> yes, i still do. i think that bernanke and the administration is not going to stop this bond buying program a

interns at google are enjoying the good life. a six$6,000 a month salary, and paid for housing. but they're making few friends out of their neighbors. >> some loud parties and some late -night hot tubbing are keeping residents awake in the evening. >> reporter: google interns are

him to predict some other things for google glasses in the future so i would say ok ok ok. so augmented reality will likely lead to casualties like car accidents as a result of people being distracted. yes very good so that's a possibility of the possibility yes i mean again look at look at how technology i mean there's a very big difference between being able to do something like there's very difference between i can do something and should i do something that obviously the human element has to be a very important part in how you use technology because you have to use it smartly what if i have to have one hand shakes will become the new deal makers in big ways i'm going to save legal documents are still going to play a big role but if you had ideologically are you going to go back to fact sure sure i'm i'm sure that will not hold up in court actually i'm not sure i'm not you know what taking that one back i don't i don't know what i'm saying is that will be just that will be a company meant to whatever legal document you need what about this one people won't need wallets a

experience before google your goal to keep this site clean i mean google what it started out when people fell in love with it was because it was clean and simple and you got stuff fast and that is what our goal is and that's what you're doing more of tonight's conversations with great minds of people one after the birth. talking about the same story doesn't make it news. no poppy says tough question thank you. and. you know sometimes you see a story and it seems so for life you think you understand it and then you glimpse something else and you hear or see some other part of it and realize that everything you thought you knew you don't know i'm trying hard welcome to the big picture. i would rather as questions for people in positions of power instead of speaking on their behalf and that's why you can find my show larry king now right here on r.g.p. question more. looking for every dollar from the field that we want to find it here if you're looking for relevant stories unique perspectives from top class cannons to end our. and welcome back to conversations with great minds i'm speaking

it did not sell off that hard today given the selloff in google and microsoft. >> google was down about 1%. >> the probably with google and facebook has always been mobile. >> you want the stock to go to the high strike where you make the most money. it's also where your profits are capped. brian, walk us through the trade. >> their ebitda exceeds it. in terms of a risk reward, i can make $1.50. just look traders were saying facebook is not getting above 22. >> you're clear, mike, about how you felt but for this trade do you think it's well structured? >> this is the on way i would be able to make a bullish bid on facebook. you can make an upside bet and not risk that much. if you're so inclined, good for you. i'm not a facebook users, i'm not going to buy facebook stock or this option either. >> going into earnings, it will set you back $26. brian's call spread will double your money. >> let's go to pain at the pump. the american consumer is looking at what could be the most expensive pump in the summer in five years. let's go to jackie. she's back at headquarters with the story. >> ga

it shows them smiling in google t-shirts holding drinks. but after numerous complaints, a note went out to all 2,000 residents reminding them to be quiet and considerate. brian hoskins says he has seen the hot tub overflowing jammed with two dozen partiers. >> i think it's obvious when you have hundreds of people coming into a place and they know each other there's going to be socializing that goes on. it's not a surprise. >> dreams floating around out there. not too late. you have to reach out and grab them. >> reporter: google interns have been in the media spotlight with the hollywood film "internship." and life is good. gourmet meals, laundry service and pay up to $6,000 a month. every day google shuttles them en masse to and from the property. we saw them but none wanted to talk. >> it might be the first time they have been out of the house. so you send them out here and they have all kinds of opportunity. it's wonderful. so i don't know if they really knew any different. so, you know, this is a learning experience. >> reporter: kiet d

kiet do tells us when they moved in, they made quite a splash. >> google interns.'re young, smart, well paid and know how tough a good time. christina and mike live at the crescent village apartments. their yubt is right next to this pool and hot tub and the barbecue grill area where the interns have been known to party throughout the week. >> does it keep you up when i know you're trying to sleep. >> oh, yeah, it does, but not ear plugs. >> it's unclear how many are here, but a facebook page called crescent village google interns had nearly 400 members. the daly mail got photos before the page was taken down. it shows them smiling in google t-shirts holding drinks, but after numerous complaints a note went out to all 2,000 residents reminding them to be quiet and considerte. >> i think it's obvious when they know each other there's going to be socializing that goes on. it's not too big of an idea for me. >> google interns have been in the media spotlight with the hollywood film the internship, and life is good. gourmet meals, laundry service and pay of up to $6,00

there's google wi-fi balloons google fiber, youtube, there's nothing not to like. >> i agree, not for can't you agree with my reasons. >> okay, i agree with your reasons. i like google here. i sort of like their main business. the only thing i don't like about it is what a run itsed and how people think it's the next apple. >> unusual activity in the solar stocks. pete, what are you seeing? >> this has been going on for the entire year. when you look at sun educationson and getting -- >> what stock? >> sune. >> ying lee, we had call buying those have doubled. this space has been on fire. the report out of china today talking about -- grasso is giving me flack. >> literally it's on fire. >> yeah. when you look at their projections for 2015 they say the spending sords solar is going to be quadruple. >> the biggest movers of the session, a drop for qualcomm down one percent. >> they downgraded their rating to a neutral. to me this is a story that's pretty well known. they're talking about qualcomm moving towards lower end phone devices and so to me they see a lower multiple. this thing i

the important battle of 2014 is not so much apple versus google. it's google versus samsung.tarts to create its own environment from a software perspective. it's all about getting that mobile environment and capturing that mobile click. i do think when you own that environment, you have the ability to make it more profitable for yourself. again, microsoft is, you know, not even the conversation so i'm not even going to mention them anymore this afternoon. >> we keep getting microsoft drift in this conversation. scott, we got some pictures of eric schmidt when he was in sun valley talking on what appeared to be a moto x. what kind of legs will it have? >> it's hard to tell. there are so many great phones. this has been a long-awaited phone but google hation had a hard time trying to wrangle what's going to happen with motorola. so i think it's got a lot to live up to. it's really the most well-developed area for google is phones. frankly, i'd love to see them take that type of effort, apply it more towards tablets, towards chrome books and really coming up with the pure best i

i think they'll be more tempted by a name like a google. >> and google again is another one of these companies that's reinvesting for the future. >> but much much cheaper. 20 multiple. >> now, we're getting into trading versus angelalysisnalysis. google probably at a point where you're a little safer. >> if you're using that then you'd want to use that 875 level. it's got to hold that level, so if you're going to start wibuying google at these levels, just wait a little bit. whatever. but wait, don't rush in. >> let's get more on the amazon story. bring in bob at sun trust. bob, great to have you with us. >> yeah thank you again for having me. >> on the conference call what would you ask the team? >> couple of things. there's two big numbers that investors will look at. one is unit growth, which is 29%. the street was looking for around 20% and that's where it's been and third party was again 30% of total unit. two very big numbers. particularly, the unit number. you started to see that fall materially. those are two big numbers that just came out. big question going forward though i

this hides behind your tv and google's latest. >> introducing chrome cast. >> this is google's third try to stream video. last one barely sold before it was discounted. it was fancy and this is neither. >> bringing online content to tv. we're playing to the fact that people love their phones, laptops. >> they made a big deal that it works with apple products and any app developer can add music or video to the tv. >> you can switch on the television. >> what will turn heads is the price, $35. within two hours, some blogs reported the first batch of pre-orders was sold out. >>> still to come tonight, a phenomenal sea lion. >> remarkable story of a kitty that has become an internet [ male announcer ] how do you do a summer clearance the dodge way? first wait till summer. then get the cars ready. now add the dodge part. ♪ ♪ the dodge summer clearance event. right now get 0% financing for up to 72 months and no payments for 90 days on all dodge vehicles. >> carolyn: this dramatic footage the moment a giant stream of mud and rock tumbled down the side of a mountain in china. it swept away

google already has a strong hold on your computer. today it is making a move to your living room unveiling a new nexus tablet. $230 to try to bring nontablet users to the game. the big reveal is the chrome cast. a $35 dongal that plugs into your tv to stream content from the internet to your tv set no matter what kind of device you are using. >> we need to make it work for users. it needs to work across plat forms. can can't just be for android. >> that's google understanding that lots of people have iphones and ipads. so the chrome cast will support ios. look for lots of content to come from the net to your tv and look for bulky boxes to soon be a thing of the past. this is the dongal. it is this small. that for $35 a much smaller factor than say apple tv for streaming internet content to your tv so you can get hulo or youtube or netflix. this is the tablet. 7 inch tablet. for $230 you get a lot of the power that you see in say an amazon tablet or ipad mini. because you can hook it up you can use it as a remote control. >> this is an

>> i'm glad you mentioned google.jon fortt live in san francisco with some breaking news regarding google and the event it's holding today. jon? >> yeah. hey, scott. we've got what we expected. a new nexus 7 tablet with faster qualcomm processor inside, higher resolution screen, up to 320 ppi. also it's got 1080p streaming partnership with netflix on that right off the bat announced. upgrading to google play store. there's a new area, a new app for games specifically. clearly twrii lly try tock chas apple's lead in the game space. this is about android. chrome. more announcements coming on the chrome front. google executives are here. going to get some interviews as the event wraps up. google is selling this on the cheap. it's a seven-inch tablet at $229. 100 bucks cheaper than the ipad mini, but still the ipad way out ahead. google trying to close that gap here and make the argument that android tablets in general are catching up there. also note asus ceo here. making the new nexus 7. >> jon, thanks so much. jon fort

hey, it's regis playing games with the google. okay, glass, google.. >> derek jeter update. ozzie taylor. >> it says regions bank, android app. >> give me a coffee. nice meeting you. good luck with this mickey mouse thing that you've got going but it's not been working. >> i've been playing with it for an hour and a half. i haven't gotten one return. i don't know what jeter looks like anymore. i hope he's okay. >> i don't think google glass likes getting yelled at. i think that's what it is. >>> finally, you may think of spaghetti owes as the person food but this new option may blow you away. cheeseburg cheeseburger-os. i love spaghetti-os. it's the third time a new flavor has been added. i'm not sure about cheeseberger-os. consumers bought 120 million cans of spaghetti-os. >>> up next, what childhood toy do you wish came in adult size. a tonka truck. still time to tweet it in from d.c. just moments away. >>> a wisconsin guy built a life size tonka truck. chelsea, three times the charm. what have you got? >> i've got the button to that. samantha gordo

a his list includes google and cyclist lance armstrong.his sets up a courtroom show down between two of the nation's most highly regarded lawyers. the city accuses the league of violating federal laws by blocking the as efforts to move to the south bay. >>> new details. campus blees at uc berkeley are warning students about a man posing as a safety escort. police say a female student waiting for an escort to walk her home was approached by a man who looks like this one in the sketch. the man is in his mid 20s, 6 feet tall and had long blond hair in braids. he identified himself as a campus escort. they say he walked the student home, asked to be let in to use the restroom and requested a sexual act. the student said no and the man left. police say the official escorts wear uniforms and carry i.d. cards. >>> a developing/7y story overs. unrest in egypt as the president is ousted from power. a live look now at tahrir square in cairo. what it means for the region. >>> and a new meaning to hands free, the app in the work to let your eyes do th

apple tv, they're the first wave in google's line of fire. threaten cable giants like comcast and time warner table by going over the top t may pose a risk to channel owners and comcast anddviacom and 21 thest century fox, download shows from internet and skip the live broadcast entirely and they can get videos from the cloud. you don't need a laptop to feed it but you can use the laptop, iphone, ipad or other gadget as remote control for chrome cast. the giants are pushing back. comcast own as piece of the hulu tv website which could get hurt by google's thumb drive. time warner cable let's subscribers play shows on their tablets. time warner ink has hbo-go. google has something those guys don't have, it has youtube. the biggest video site in the world. 4 billion videos viewed on youtube every single day. add google chrome and that chromecast and you have potent and world changing combination. dave? david: apple may get a run for its money before it comes out with their thing. >> thanks, guys. david: we end the program by talking about amazo

they're teaming up with google to provide wi-fi. the chronicle reports google will spend $600,000. that includes herman plaza, marina green, and mission delores park. time is 4:37. sal is keeping an eye on traffic. >>> things are doing well. we look pretty good around the bay area. let's go out and take a look at the east shore freeway. traffic is moving along nicely as you drive through. there are no major problems getting out to the macarthur maize. also, the morning commute is looking good. if you're driving in san jose, 280, traffic looks good all the way into cupertino. let's go to steve. >> the lou clouds are back, still 60s. a lot more 50s and we'll continue the see additional cooling there. it's not like 67 or 6, which is what we had at that time. we had two bands, one that came up in the morning and we got a break and then another band came up. northern california to the oregon border. it looks like a quiet pattern for the rest of the week. a couple degrees warmer inland. you lose the tropical clouds. allows heat to get back into the 80s. looks like this will take us stead

google's stock went in the opposite direction after it reported disappointing shares. the money that google has been getting from its ads fell again in the second quarter. a trend that began 7-quarters ago. the pleasanton based grocery store chain said it's profits fell partly because of profits of the sales of canadian.

so you have google. what do they want? what is their strategy? do they simply want to get into the game of producing content for delivery to your computer? or your tablet? or whatever device may be? >> i think when it comes to google it's safe to assume that they want everything and they're a company who has enormous muscles and legs to use them. let's lay it out like this, charlie. google wants to get in a business where they're creating a separate network over the internet and that even if you don't have cable in your house that you could perhaps buy cable programming, not cable, from google. google is going out to people and trying to cut deals over and over. intel doing the same thing where they would be a so-called over-the-top deliverer meaning not through a cable but came over the web. apple's plan, i think, is less ambitious is to -- we're going to -- we're going to put a new navigation on what you already have and who owns -- if you think of your television set in the living room, it's so full of great things, especially if it's -- if it

was a tough day for microsoft and google. microsoft having its worst day since january 2009 and google as well, falling nearly 3 2%. for google, it was a much better story than what it had looked like. >> the stock briefly traded in the 860s. 850 started being a level clearly it did not get there, but you've seen this before many times, that initial selloff, couple of days of sideways activity. we sort of got it today. my sense is you'll probably see the fall next week. microsoft, a more interesting story. here's a stock that traded five times normal. it traded down to 31 but in least of terms of trader day, you have a fine risk. >> would you add? >> yeah i don't think we should be lumping these two names together at all. had a good quarter. >> what don't we get about that quarter? because the stock did go down. >> pre 2008 it wasn't all about firing everyone. they used to invest in the future pay their employees well and innovate. google is taking a page out of the pre '08 playbook and if you deserve to sell the stock, you d

going to have to go with google. >> just my book, long google, not facebook. >> snapshot i'd say googlefive of us can't. i'll say facebook just to say it. >> that's a conviction call. >> our traders prefer google over facebook but with shares of facebook crossing above the ipo today can the upward momentum continue. time for a street fight. tim you're the bull. kick it off. >> the job of arguing for a bull run on a stock that's up 40% in ten days is difficult except the validation and the come back for beakers wasn't there also for the google or facebook choice. >> at that time i would have said google. at this time i think guy wins on this. >> really? he changed your mind. >> this is a trading call. i'm with him on that. tim did a great analysis. >> that's why the stock has made the come back it's making. >> analysis is the master of observation. trading at master of behavior. >> there is no reason to jump into the stock tomorrow but at 38 bucks are you telling me the stock is not offering growth superior to the other players. >> all right, all right. i need another buzzer! when am i g

google could outspend samsang.this device, potentially. >> outspanding apaal on marketing in the u.s. let's talk about apple tonight and the quarters to come. what do you think the real story is going to be regarding new products. is this low priced iphone the best we're going to get for 2013? >> well, you know, it appears that way. no one really knows. apple is tight lipped about its product pipeline. the big issue with apple, the larger issue is growth. the company is expected to see flat revenues this quarter and earnings are supposed to decline. so, the cheaper smartphone could be a big answer to that problem because apple is exposed in emerging markets. they have this single model strategy where it is a very premium price iphone, smartphone and it's done well in developed markets. but growth is slowing in developed markets and more of the growth is coming from emerging markets where samsung has a broad product lineup and they could address different price points. so, i think for apple they need to address the

and not 1,000, but this raymond james, and google would be obviously, if they don't blow the number out this is going to be the disappointment of the earning season, and keep an eye on it,

google glass. they get into everything. tell me a business google is not involved in. travel.of our sources said, google is like wayne gretsky, google skates to where the puck is going to be. apple used to have that reputation. liz: google has very intelligent people there in some different areas whether health care or maps. number three used to be number one. >> apple. won three years in a row. that is unprecedented. we've done it nine years. nobody company has ever done that what is interesting how much this company was loved for three years. it could do no wrong. investors would gush about pap apple. it was perfect. we find out it is very good company but not perfect. it has been run by humans. it has problems. one of the reasons, stock is down 40% since september that hurts. i think there are several reasons why apple has fallen to number three. one, it is losing the race on innovation. samsung has caught up with the galaxy phones, all right? second, they have had issues in the debate over cash what they are going to do with cash. they have had problems with regulation in

google did the same thing. there is a chance given the tape that broad com could do the same. >> makes sense. >> let's go to josh lipton at headquarters monitoring the after hours action. >> melissa, we are watching vm ware. analysts expected 77 cents. revenue jumps 11% to $1.24 billion. looking ahead for the third quarter predicts revenue in line with the street's projections and raises the high end of guidance. the ceo calling the second quarter a strong finish to a solid first half. melissa, back to you. >> take a look at shares of emc. we are seeing a pop in them as we normally do. they trade in tandem here. >> i want to say it's tomorrow morning before the bell so effectively it's going to be difficult to trade right now. emc is a name that although we have had a series of highs, that seems to be on the verge of breaking. the vm ware is helping. >> before we head to braerk let's get a quick check on after hours movers we are watching. juniper networks popping. third quarter guidance better than expecting.

google, i use it every day.ck if you had to own one. it was in the last year, it was 5 ex-. now it's over 900. so i wish i owned it. i'm not allowed to. i wish i did. it's going down $30 today. is this when people are not in say i'm buying? >> we think when we have upside, absolutely. >> buy at 885? >> absolutely. 1175 with potential upside from there. as you said, you don't see microsoft objects anywhere. you don't say, hey, i wish i had a new microsoft phone. a lot of people are anticipating and excited for the goggle phone. >> what happened? they do have profits, probably, a lot of these people. is there something of concern? >> i think what's happening this morning, people are concerned about the cpc the costs per check. how much they are getting per click, per ad. went down more than some people expected. they are concerned about the partner revenue, which again, we don't think these are fundamental problems. there is nothing fundamental that says let me step back. maybe i don't want to buy here. i say, yes

they used google searches. google handles more than 3 billion searches per day and save them all. 50 million of the most common search terms that americans use and compare them with flu data going back five years. the idea was to predict the spread of the flu through web searches alone. they struck gold. what you're looking at right now is a graph. the graph is showing that after crunching through almost half a billion mathematical models, google identified 45 search terms that talked about the flu with a high degree of accuracy. you can see this predicted data from the search queries. but where the cdc has a two-week reporting lag, google could stop the spread of the flu almost in real-time. so their message does not involve contacting physicians offices, but it is the ability to produce valuable goods and services. let's look at another example. a company in 2003. he bought his ticket well in advance of the day of departure. it makes sense, but at 30,000 feet, the devil got the better opinion and couldn't help but ask the passenger next to him how much he paid. sure enough, the

to winston churchill in fact what about google is google evil you know what's interesting is that stoneexpose the government is all this information about us everyone we have recalled how long our calls lasted and so forth and i think to myself tino's who i called google knows who i'm emailing yahoo i mean all these companies know much more about me than the government and like the government they don't have a fourth member to restrict them from snooping and doing whatever they want i can tell you that i don't trust the government but i trust google even less because they don't have oversight that's what i think the problem is when you don't have oversight of we have these public private partnerships and a lot of times there are there are no bid contracts or i think it's disingenuous to say that we have a march towards a free market when we have prisons being outsource i mean what would you say about the i am against outsourcing i mean you look at actually the war in iraq you find that the people who had the military were doing an excellent job a lot of times it was our contractors are