he cofounded google x, google's innovation laboratory. googlers. -- home to google glass. he helped launch broadband balloons to connect to the internet through the stratosphere. now, sebastian thrun is on to his greatest ambition yet, democratizing a higher education, by sharing knowledge with people that can't afford it via the internet. joining me on "studio 1.0," inventor, professor, and founder, sebastian thrun. >> it is great seeing you. thank you so much for joining us. >> i thought we could start our interview wearing google glass because you have been a big part of it. how often do you wear these? >> mostly outdoors, out and about. with my kids. or when i go bicycling and hiking. i love having it with me. >> what is the most surprising thing you have done wearing google glass? >> you know, i had this ambition to make a device that you can wear all day. and in every situation. and, it is, for me, it is awkward in a personal conversation like this one. this is something that excites me much more when i'm out and about and doing something. >> there is a stigma agains

google's big miss. the stock coming back from a 4% drop after the cfo said the company would have met earnings expectations if not for special charges last quarter. different story for amazon. the stock on a tear after being analysts' estimates for earnings. and visa, biogen idec and deckers. not good news for a stock that has been down 10% the past three months. >> they missed. they missed on revenue. those are the metrics everybody looks at. paid clicks, they missed on that as well. they can say whatever they want, but it is not a good quarter. they sold it off earlier. if they are did not go to whack the stock on this report, they are not go to whack the stock. the fact it has come back is pretty interesting. >> the metrics across the board were terrible. they are talking about making this switch to mobile. they have been doing it for a long time. i would retweet what guy said. you want to be -- i mean people have come into this short. told down from 600. be very careful being short. >> bouncing back

emphasis of philanthropic is supervisor london breed and supervisor kim i'm happy to be here with google we've been together on several occasions with good reason i want to put it in context we're are and there's no doubt we are a world-class city and time and time again, we also have a world-class heart and we have a world-class social safety net that everyone vflts in and more and more as this city's economic success becomes a good foundation we want to bring the economic success to more help and assistance too on the which are most vulnerable we want to continue that's essence in my opinion of the character that this city it that we share in incredible wealthier that's good friend of mine and want everyone to be participant in it whether it is what we're doing today which is shelter hundreds of people from increment weather with solutions to their needs or whether or not responding with strong city government services or 9-1-1 or 311 or whether it is introducing and constantly supporting our community basis organization that are the heart of the service provider and 3 of them are goin

why would twitter want google? is it going to address the challenges that they have with the monthly active users and why would the management team so under duress right now be a willing sell smer i just don't know that i see that. >> google have plans to become a wireless carrier now, right? they're clearly thinking about where the company is going to grow and how it can best do that while trying to fend off as you guys suggest the competition from all corners, whether it's facebook, or whoever else. >> i think if there's any other buyer out there and brought up alibaba that makes a little bit of sense to me because they already have experience there and when you look at google, yes, they do own search, this puts them in a great position i think for twitter but to your point, i think when you look at the twitter numbers if what we're hearing is right, there's going to be an opportunity later to be able to step in and i don't think you need to do it here at the stock price of 39 and the valuation here. >> yeah. of

let's start with google. the google results were interesting but the, you know, wall street doesn't like it, i don't care, but it is interesting that the business is in some important ways decelerating and the prices of ads actually falling. >> yeah, i mean what you're seing is that a lot of this applies to google too. the core business to some degree is experiencing some commodityization. even though you're getting significant demand, prices continue to drop. and i think at the same time you've got a company that's investing for the next 100 years and it's really difficult to reconcile those two things if you're an outsider, not there seeing how these things all come together. going forward, google needs to acknowledge that. i think they probably either need to start reining in some spending offering setting expectations differently so people can get their heads around what the cycles will look like for this company that's investing for something that's over the horizon but has a core business that's changin

google starts to trade up.this morning, the stock exploded higher ultimately closing up $24 or 4.7% today, one of the worst days for tech in recent memory. quick aside. when i tell you not to trade off the headlines, not to pull the trigger on buying or selling until you've listened to the actual conference call this kind of action is exactly what i'm warning you about. if you sold google into its after-hours swoon last night, you probably feel like a moron. actually, candidly you are a moron. a real chowderhead, to quote mo or maybe it was larry. now, i've heard a bunch of explanations the today for why google, which we own for my charitable trust, managed to rally despite missing the thnl number headline numbers. it's true, the underlying numbers were strong but it's not the main reason the stock went up. the big difference the big change here was management's tone on the conference call. that's why you've got to listen to not just read. in the past google has often behaved like it's too cool for school in th

speed back our subject tonight is "how google works." we will examine that question in more than just theory. executive chairman eric schmidt and stabs you are here and they will be discussing their new book by the same title. "how google works" is surprisingly candid and filled with panic notes. most of all, it is an authentic inside look at the culture and practices behind one of the world's most successful companies. what a moderator we have to lead the discussion. president and ceo of yahoo!. the 20th employee. she saw a lot of this from the end died and is now seen it from the office and i can't wait for them to get started. please join me in welcoming eric, jonathan and marissa. [applause] >> i am so delighted to be here tonight. i will say i have gotten a chance to work with both of these gentlemen for a decade. they are my two longest standing mentors. i really like that because i got two of the best demonstrators and also literally not a day goes by when i don't think about something that each of us have said in a way that shape

if data prices go down google wins because people consume more data like youtube and do more google search and the way that this initiative can influence data pricing is they can go in and influence and start to come out with plans that are lower cost. analysts say google can attract wireless customers by offering lower cost plans, if it's willing to lose money and could gain market share based on its name. sprint and t mobile are the third and fourth largest wireless carriers in the u.s. by subscribers, according to fierce wireless behind verizon and at&t which may recollects them the logical partners for google. >> t mobile and sprint have a lot of capacity unused in their network. sprint loses customers every quarter more specifically. any incremental customer on board drops almost straight to the bottom line so they have very little to lose in this situation. >> reporter: sprint lowered the risk by the right to renegotiate the deal if google gets a lot of customers according to "the wall street journal." google sprint and t mobile are talking about these reports leaving a lot of questi

the google one is very smart.t has the ability to use aerodynamics to travel for maybe even hundreds of miles. it is difficult to hover in place and dangle a package. i love the fact that google and amazon are doing this with different approaches. you cannot ask for two better companies. >> does amazon or google win? is there a place for both of them? >> there is a place for both of them. >> facebook is buying drone companies as well. >> google has bought a drone company to compete with connecting the developing world. there you are competing with balloons. their natural instinct is to float. a drone's instinct is to fall. the great thing about the drones is they can stay in one place while the balloons float around with the wind. there is a case for both of them. >> do you see these companies on a collision course? >> no, this is complementary. it is the beginning of the drone age. there is room for everbody. >> how omnipresent will drones be in the future? >> they will be in farms, you will see drones over citie

the google one is very smart.t has the ability to use aerodynamics to travel for maybe tens, maybe even hundreds of miles. it is difficult to hover in place and dangle a package. i love the fact that google and amazon are doing this with different approaches. you cannot ask for two better companies to be innovating in this space. >> does amazon or google win? is there a place for both of them? what about facebook? >> absolutely. google has also bought a drone company to compete with connecting the developing world. there you are competing with satellites and balloons. google has mentored a balloon logic -- an internet balloon project. >> what's a better way? balloons or drones? >> the great thing about balloons is they stay up for weeks on end. their natural instinct is to float. a drone's instinct is to fall. the great thing about the drones is they can stay in one place whereas the balloons float around with the wind. there is a case for both of them. there is no one answer. >> do you see these companies on a co

heart of the service provider and 3 of them are going to be granted today with some keen support from google as a result of this philanthropic focus but also in strog recognition that homelessness is something that is not going away no one solution e.r. 10 year program that is a solution to it is an ongoing thing to do to build enough affordable housing and until we deal where of affordability we're willing to work hard a lot of the people in the room standing behind me and in the audience are part of the service to the homelessness populations on after a an everyday basis kin street and hampton have been at forefront for years i know with sherry run and jeff hearsay been gratified of the announcement but thought support our city family has seen to give and also in the private sector that as we try to give them support we also have told them we'll try to fill every gap and the private sector has stepped you big time when you ask them to go through the private foundations have a chance to help you'll see a long list could i we're adding to the list and we're whether those welcoming one the ne

i am so humbled to have the support of google in doing this because google is try to create a world without slavery and because google represents the idea that we can reimagine and reinvent and rethink the world. that is what the "no such thing" campaign is. it asked all of us to reconsider and reimagine how we talk about girls who are walking sold. reimagine and rethink how we treat them, how we locate them. i am also so honored. in the story that was shared, you are a voice for that child who has been forgotten, the child was discarded, the child who was invisible lies. -- invisibleized. you are a source of good for those harmed by the world and i am honored to do this work with you and google. i want to say that, we are here today and each of us has the power to do something as part of the campaign. this campaign is about asking you, each of you, to use the power of social media to be able to say that there is no such thing as a child prostitute. i am asking you to use that power to change the language. language matters. how we are named is how we are treated. please join us and be part

i realize it may not be google. biggest issue with google is everyone wonders what are they trying to be. raison d'etre. >> nice. >> if you believe much of the street believes stock's trading 720 at 18 times earnings, that's how you can look at this stock. again, no one's saying 25% to 30% growth. they're saying 15% growth. >> it almost sounds like you're saying that google is a value trap here. that it's fairly valued. you're fine on valuation, but there's no upside, there's no reason for the upside. >> what are we worried about? everyone is worried about the losing market share. google is still 75% search. >> does that mean the stock is going to go up? >> doesn't mean the stock is going to go down. >> looking in the environment for big tech cap plays they're going to be defensive. i think that's catalyst enough. >> i'll tell you, the stock trades like that over the last couple days. particularly around the $500 level. i would not be trying to catch this falling knife at all. i think 440 easily on this stock. >> th

. >> what about google?ric schmidt, chairman of google, recently said that amazon is their biggest rival in search. >> to qualify, he made the comments during an antitrust meeting. there was an incentive to highlight the competition, obviously. but i think there is some truth to it in this case. the nature of search is changing. if you were to search for an item to buy from an e-commerce search on amazon, you know where the reviews are, you know the category it is in, you know how to select prime or not. you don't get those features. google is doing something interesting. they are taking on this endeavor called google shopping express, which i cannot make the math work. i am waiting for someone in the press to follow around one of these vehicles and add up how many stops. i don't see how it can work. >> and they are also trying to do delivery drones as well. >> don't get me started on drones. i think the drones and the self-driving cars are a distraction to keep the media from talking about the topics we jus

how pervasive is google in america right now? >> well, first of all google is a verb. in our speech to talk about how we find things. it's also on almost everybody's phone. it's the biggest operating system in mobile. if you look at videos, you go to youtube, if you search for directions you go to google maps. pretty much everything that we do that is centered around a mobile or a desktop operating system is focused on google. it's everywhere. >> encyclopedias are obsolete. dictionaries are obsolete. any kind of information you want, google has cornered the market in that. is that correct? >> that's where people go first, absolutely. >> okay. we are talking billions of people worldwide because it's a worldwide phenomenon. not just in we're talking billions of people worldwide because it's a worldwide phenomenon not just in america. this little study here that's all celebrity driven. you can understand that, when a celebrity gets into the news renee zellweger got her face done and people want to know. >> they picked a lot of the trends in the market and tried to figure

but it will have the google brand name, google will sell it, and, of course, google will use that toencourage people to go to their properties. >> reporter: why would you buy google wireless data service? you might just because of the name and reputation. >> i think because google never disappoints me. i trust google. issuing it for a long time. so i probably would just assume it would be amazing and fast. i have been using it for a long time. >> reporter: it wouldn't be any more amazing or faster than any other service it will be buying from but it key is it will be cheaper than market rates now. it can do that because it's so big and wireless may be just a loss leader. >> if google can get people online and make google.com their default, that's money in google's bank account. >> it's not 39 or 59 or $109 a month when people are on limited income and can't afford it. >> reporter: martin fulton was in union square taking advantage of free wi-fi. this new service could be aimed at lower income like t-mobile is now. but it could also force other carriers to lower their rates if a cheap

in the case of google.dely reported they believe they were hacked by china, as far as a state-sponsored attack. whereas in other cases, you have anonymous banks being targeted, often eastern european criminal gangs. for a business, this is a big problem. anytime there is a large amount of resource but on targeting them, it raises them up. while android for example -- we see a lot more threats to the average user where the bad guys are targeting a metric ton ios versus android, there are infinite risks. >> interesting and i guess it starts to reflect these geopolitical risks in these states, the eastern europe the warmer soviet union, where the blending of politics and crime is not a small thing. >> when people have skills where they can break into computers, they will find ways to use it -- either on the defensive side or governments are hiring hackers because cyber wars are a big engagement for nations nowadays. >> it is time for the b-west s yte, one number that tells us a lot. the number is what? >> 2.9

downgrading google, priceline and trip advisers. trip advisor is defieg the downgrade. >> when e come back and uber investor arguing activists like today's letter from star board are the reason top tech companies are staying private longer. do i take metamucil everyday? because it helps me skip the bad stuff. i'm good. that's what i like to call, the meta effect. 4-in-1 multi-health metamucil now clinically proven to help you feel less hungry between meals. experience the meta effect with our new multi-health wellness line. i love my meta health bars. because when nutritious tastes this delicious, i don't miss the other stuff. new meta health bars help promote heart health. experience the meta effect with our new multi-health wellness line. ♪ ♪ ♪ ♪ ♪ ♪ the evolution of luxury continues. the next generation 2015 escalade. >>> two recently em battled ceo, marissa mayer and dick costolo and two arguments it would be a huge mistake to fire them. from angel investor. jason who joins us from san francisco. good to see you. >> thanks for h

, i mean, what google -- excuse me, what should we watch for as a next step to see whether or not a googlein spacex actually happens? >> i'd imagine right now google is probably really looking at what spacex is doing about the spectrum issue. spacex doesn't have the rights to the spectrum, you know, and this is something that's regulated in order to provide internet access. some of the reports right now the word is that elon musk working on a technology that would allow him to get around that and not even have to use existing spectrum to be able to to deliver internet access without that. and so i'd imagine that google is kicking the tires around that. even that said, this is a risky space. it's literally almost a moon shot. this is something they're shooting space to get to. lori: literally. >> so this is a risky investment. google's bread and butter is still going to be search and internet. lori: colleen taylor with tech crunch, thank you very much. >> thank you, lori. lori: after the bell we will introduce you to a company called glass bell that allows employees to anonymously are revie

i have insulted google glass plenty over the years but conceptionally the idea of what google was pushingas powerful and important. i think people forget that. it's just the device wasn't quite right but the concept is important. we will be wearing some sort of devices that see and talk and communicate. it's just a question of whether it's going to be these awkward devices that make it so we can never date again. >> and kara, google trying to position this as hey, we're just moving this to the next level. it's graduating. not being demoted. do you buy that? do you think once they shut the exploratory program down on the 19 which i believe is monday will be a couple weeks and some fantastic new version? >> there's supposed to be a new version in 2015. i think it's a question of who's to wear them. i think with doctors, surgeons, certain business cases they're very useful. so i think they're going to orient it to where people will be wearing them. i think the idea pushing it as a consumer device initially was probably a mistake. conceptionally it's a big idea. execution wise kind of goofy.

is that culturally possible at google?ey would be able to be amenable to an activist? do you think that's a risk for that company after yesterday's earnings. >> that would be interesting, wouldn't it? they would not care. they have such a not care attitude. you know, i don't know. i think it's very -- they're definitely in a low. the stock is in a low. and there's some questions around, for example, the apple search deal and things like that and where they're going next and what's going on with android and the strength of apple in the last quarter with the profits of that iphone, are really quite amazing. they've got to show some momentum in things besides being cool. great car, and things like that. but i think probably that would be interesting. i hadn't thought about that. that would be interesting. >> yeah. i mean jack's tweets talk about the way the brand is perceived around the world and the fact that the bird has become a metaphor for free speech and civil discourse. >> okay. >> but doesn't talk about monetization i

google has huge competition.verybody, european companies they have to accept the objective miss and duality. we have some concerns. it should be decided. >> he was there and so is the linkedin cofounder. they suggest silicon valley needs to work with lawmakers better than i have in the past. >> they are bad at lobby in washington and bad at lobby in brussels. what we do is we try to build the best possible product that works globally and we are slow and late to understand the right way to interface with government. >> cyber security is going to be a major theme at the state of the union address but do business leaders care? might they change their strategy? will talk about what he might say, next. ♪ >> i'm cory johnson. this is "bloomberg west." microsoft says they may have found the answer. microsoft says the fbi data related to the charlie hebdo investigation just 45 minutes after they were asked, contents from two e-mail accounts to the fbi after proper requests were filed. this shows that microsoft's system c

>> google says that. what's interesting about google and facebook is they have so much data themselves that they do want to share it. they keep it for themselves. they buy other data from data brokers to enhance their profile so they have the best profiles out there. the problem with that is the government is always at google store. i like google and i would like to trust them with my data but i don't know if they could defend themselves in front of the nsa. >> a great related question. if the fourth member person search warrant to search my home why isn't that a warrant required by the nsa to search any computer? >> it's because of the third party doctrine. if they go into your house and take your computer physically they still need a warrant but these days is so easy to rank -- remotely get information from your computer. there are many ways to circumvent that search warrant requirement. >> you talk in a book about this exciting case from california for cutter cutter case for where the ninth circuit les

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have facebook and apple and google not been innovative enough?> as a society, i would argue we have not done as much as we could have. if you have had less innovations in energy and biotechnology, and not as many as we would like, transportation, it is not moving any faster. >> one thing you tell inspiring entrepreneurs is don't copy mark zuckerberg and steve jobs, why not? >> the next mark zuckerberg won't be starting a social networking site. the next larry page will not be starting a search engine. 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. >> 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? >> i think great companies have a sense of mission. there's a sense that if we weren't doing this, nobody else would be doing this. and you will be a monopoly. not in the bad sense of a rent collector, but

liz: as we wait on amazon and google. you can't miss those numbers, they affect a lot of stocks in their halo, right? the halo effect. we turn to our market participants. ralph acampera, he's still long-term bullish but thinks the market correction, if we see a bigger one is good. dan neiman, thinks we will continue to see volatility through the end of the quarter, and alan knuckman from the cme. don't get mad at us if we interrupt out numbers. alan, what turned this market around. that's a big jump here? >> two things, obviously oil is a psychological weight on the markets, and you have a key reversal. that may be the start of something. but i think more importantf the s&p found support. we went down to the january 16 lows and bounced off it. from a risk reward, buyers stepped in and turned it around. david: ralph, they went in opposite directions, the choppy waters scare the pants off a lot of people. not you, why not? >> actually, i'm happy we've gone through this so far in january. if you go back to late last year, th

sir, i am adam i lead the google u.s. public policy efforts and google is a search engine company that does a lot. it was a search engine company [laughter] and it did a lot of really great thing humble. humble. humble so um. the right to be forgotten is the interesting i think issue that i think is one of the things that i think a lot of us probably here in the u.s. would look at the ruling of this european court of justice and they think that this is you know. outside of the bounds of certainly not something that would deem track here in the u.s. due to the first a menment and the strong liability principles but i think that it is important to acknowledge some of the feelings that motivate the desire for a right to be forgotten the fact is that there is more information about all of us online than ever before and that is true. a lot of the search costs for finding information that used to be hard to find have been obliterated. it used to be that you could fine information about a person's criminal record by going to the

whatever happened to google glass? >> reporter: it's still out there but the sales of glass stopped at the end of the month. today the wall street journal calls the google glass project troubled. the bbc says google glass sales halted but before anybody tries to drive the final nail into the wearable computer's coffin, here's how google sees it. google has always preferred to see its glass half full. >> the fact that you could build such a thing was crazy when we thought about it a couple of years ago. >> reporter: google launched glass in mid 2012 but today when tech blogs and websites reported the google explorer testing program was ending, some saw the glass as half empty. the glass was done. not true, according to cnet. >> the project is actually coming out on its own. >> reporter: meaning google glass will move out of the google research lab and will fall under the leadership of hardware guru coney fidel who used to be -- tony fidel who used to be with apple. google bought his company last year for $3.2 billion. >

since its ipo in august 2004 google up more than %. i'm josh lipton in silicon valley. >>> takeover buzz sent shares of aol and verizon higher tonight. that's where we begin the market focus. verizon exploring potential with aol to expand online video offerings. verizon squashed the rumor saying it's not planning any major acquisitions. closed higher verizon rose 1%. >>> a done deal for coach and stewart wheitzman. the privately held shoe company for half a billion dollars, an effort by coach to expand high end offerings and compete with fast growing rivals like michael kors. fell to $36.30. >>> walgreens reaping the benefits of a bad flu season. the drugstore operator with a better than expected jump in september thanks to higher sales of flu meds and flu shots. prescription sales also rose. shares were a fraction higher to $74.69. >>> steelers latest oil prices with bad news. it will idle plants in ohio and texas and lay off more than 700 workers. the company is one of the first biggest industrial casualties of the recent collapse in

they're what google was ten years ago. google realized they didn't diversify.y're doing the same thing. i'd much rather own facebook than google at any point. >> i agree with matt on that point. what they did with instagram back in 2012 they paid a billion dollars. >> which everyone thought they were overpaying. >> by certain analyst expectations, instagram is probably worth 12 to 14 times that number. it allows to keep customers and users that facebook either wouldn't have lost, they are using their stock value to their advantage. >> the holy grail is we want to be your home page. we want to be that go-to spot. >> i'm a big believer in what facebook is doing. >> not to take a page from joanie courtney's playbook, when you see this company growing at this level, that means growth for the company. so, i mean, you will see, again, the sector, if facebook is growing at this level, hiring all these people, all the social media talks will get on board as well. >> as far as this virtual reality, hotter and hotter. facebook is not the only one investing. gaming usages

anthony's to serve the homelessness i mention those because google itself has created for partnership and wanted to do more i know this is another announcement of a come numb they want to help more people whether our parks or workforce training or whether housing or homelessness our companies have ever opportunity to step up and those public-private partnering are more and more becoming part of sustained ability to help governments and services agrees succeed in their it a mission that mission continues to help english can get support and connected up and get their needs if you would silvers we're thinking about collaborations this is the essence of why supervisor jane kim and supervisor london breed and i came to those offices to look for performing agencies and those a little with are valuable and serve the populations ultimately about creating the foundations for what beven works on the hope of old age promises but a renewing of what the st. francis is about the one hundred percent i thank google and all of you for being here today with that back to you (clapping.) >> and i know al