he cofounded google x, google's innovation laboratory. broadband balloons to connect the internet in the stratosphere. now, sebastion 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. 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? sebastian: mostly outdoors, out and about. with my kids. when i go bicycling and hiking. i love having it with me. emily: what is the most surprising thing you have done wearing google glass? sebastian: you know, i had this ambition to make a device that you can wear all day. in every situation. and, it is, for me, it is awkward in a personal conversation. this is something that excites me much more when i'm out and about. emily: there is a stigma against wearing google glass. there is a word for it called "glass hole." seba

google continues to expand. they don't have the monopolistic-type position that they did in desktop search, but they are still a very powerful force. emily: this is ruth's first time on the call. what are her main challenges? >> one thing we should all expect is that it is still the google culture. i don't think we will see an era of increasingly broad guidance. ruth's job will be to figure out the portfolio allocation of resources. i think at a company like google, now that we are 60 billion out of revenue, just that resource allocation around the company that prides itself on innovation, i think that's a major mandate. to make those calls with the right care and in sync with larry. emily: a buy button is coming to google. where do you see the biggest opportunities for them in mobile? >> google has a massive opportunity on mobile to make searches and interaction with their services more efficient. there is no question that mobile opens up an opportunity to get the consumer much closer to the actual purchase. go

emily: you spent a long time at google. google is blocked in china, apps are blocked in china. is there a way forward for google in china? hugo: i don't know. it is a tricky issue. i do believe that it may not be the end of it. i personally don't think that it is the end of the road for google in china. purely thinking for how useful google is and the fact that people in china in universities or study abroad. they depend heavily on google even despite the fact that it is blocked. that i just think at the end of the day someone is going to figure out a way to solve whatever issues exist to bring all of this innovation to the people in china. emily: how satisfied are you with the pace of innovation? hugo: i'm quite happy. especially because i understand how hard it is to make progress. when you are supporting hundreds world, iround the think android is entering a new phase by expressing itself through some of the different screens in different types of devices. emily: google doesn't make money off of android. it isn't doing well in terms of advertising. xiaomi have built business

gmail, google maps, obviously google search, is that people use every day. google products need to be something you use as often as your toothbrush. it is difficult to come up with a product used that much. meyer was instrumental in making it pass that test. that was top of the list. they hired a recruiter who reached out to her. they were stunned to learn that meyer was interested in the job because loeb successfully turned this letter of mass destruction nook the yahoo! board, and put it on himself instead. if there is one thing about marissa mayer, she is the best repairer in the world. if she knows she needs to have a set of data understood then she will have it understood and be more than fluent on it but convincing. she completely blew the board away. while there was some reluctance to hire her because she had not actually run a division and profit and loss statement, there was reluctance on that part. michael wolff and dan loeb was able to convince the rest of the board she was the right hire. they made this grant -- this grant announcement in july. a

emily: do you think google would close android? hugo: google would never do that. there is absolutely nothing that would convince larry to do such a thing. emily: larry handed over a lot of control. what is your relationship? hugo: that was an amazing decision. he is capable, the most well-rounded executive at google. he is a great product guy. he is a great business guy. it frees up time for larry to think about what should google be 10 years from now, how do we think about artificial intelligence, how does it affect design? it is hard to do both of those things of the same time. emily: you still have a relationship now that you are at xiaomi, you collaborate? hugo: we do. we are an android partner, first and foremost. we try to be in front of the pack when it comes to upgrading the operating system and using all the innovations coming from google. we spend time together every few months or so when i come and visit. emily: would xiaomi build its own operating system? hugo: we wouldn't for smartphones or tvs, or these products. simply because it doesn't make sense

but it's definitely a more kiss palestinianed google, a more -- disciplined google, a more mature googlehough they control it, it is shareholders' money, they have to respond in some way. a lot of these tech companies just don't. amazon, others have not a history of not caring what wall street thinks. they really do in a lot of ways, especially with all of this competitive pressure. >>> our next topic, kara, gop presidential candidate jeb bush taking a new approach to a campaign event, literally. he traveled to an event in san francisco yesterday via uber. the move comes a few days after democratic candidate hillary clinton took a more critical tone toward the likes of uber. because as she said, it raises questions over workplace protections. bush did give his thoughts on the matter. take a listen. >> these are people that are quite happy with the service. if they're violating legitimate law along the way, if they're exploiting workers in some fashion, there's ways to address it. but the fact is, that this is, this is disrupting the old order. >> and we got de blasio here in new york, ka

plus google capital lead -- bets big. i'm joined by the ceo as well as google capitals gene. a firm founder and ceo max lev chin, all of that ahead on bloomberg west. first to delete. read its revolt over interim ceo is simmering as the company struggles to define its future. pao announced her resignation after more than 200,000 people called for her to step down. in a post on reddit, he believed it is because the board asked her to demonstrate higher user growth then she got she could deliver. he cofounder steve huffman, is , taking the reins. he has already said he plans to experiment with monetization strategy, improve the relationship with users, and do more to define its content policy. huffman says he is not going to stop some of her policies. her controversial policies, including a move to ban offensive celebrated sub-reddits. cheeseburger is credited with making the idea of a internet meme mainstream. also, a firm ceo max levchin, also the chairman of yelp. i'm so curious on what your take is. and just how difficult a job steve is stepping into. max: i'm not close eno

one of the numbers that really demonstrates how much people are using google, how good it is to be googlethe cost per click number, the click growth. the clicks on google's ads are increasing at a pretty dramatic pace actually, accelerating pace. so clicks have been increasing in the 20% range, 26%, 25%, 17%, and then they started picking up here, down at 13%, which is good, bam, this quarter, 18% growth in clicks, that's really good news for these guys. except -- joe: here is the catch. cory: the value of those clicks or ads are getting worse and a lot worse and dramatically worse. right now, there was a belief not too long ago that when we shifted from desk top to mobile that the value of the clicks would go down, but once we have been on mobile for a while, we'll stop seeing the degradation of value of the clicks. look at that number, it broke our charts. 11% right there. joe: it was so bad -- cory: it was so bad, it broke our charts. can you imagine. that 11%, that's a very bad number. there are analysts out there, some day mobile clicks will be worth more than desk top clicks. joe: t

which i love that name. >> frugal google. >> frugal google. now, again, i'm not going to buy it up 13%, but i think if we get a pullback at all you want to be in google. you don't need to go out and take a shotgun approach. you can buy names like goggle, microsoft. i still would be taking money off the table in netflix. >> does this mean that the multiple for facebook should be that much higher because facebook should trade at a premium to goog snl. >> it should. i think google's going to continue to move higher. i got a lot of heat for saying netflix 1400 bucks. split, what is it 900 bucks? 800? high 800s. that stock's going higher. >> you're too far ahead of yourself. >> netflix is going to have a problem with me. i think guy had it right. but i had it t. wrong coming out of earnings. two cycles ago i was one of those guys who said you need to take profits if you're lucky to be long. and i still think to turn it to today google you must take profits. it's a three-day rule on these stocks. you can't buy it tomorrow on monday. this is one of t

it's because of google.w you've talked about it today but it's worth hitting again because of the strength out of the stock. it has a big waiting and moves things significantly and the earnings report was almost excellent across the board. blowing past expectations by $0.29. really wall street liking what they're hearing across the board getting one initiation to buy even though stocks are still surging right now. analysts liking what they heard from the ceo. it's worth repeating because of the strength we're seeing in the stock today but also strength out of big names like facebook tesla, netflix, not a lot of news there but maybe they're just getting a little lift from what we heard and saw from google. >> thank you very much. when we come back, more of the early early movers this morning. and bmo upped google ahead of the earnings earlier in the week. congratulations to them. we'll get that analyst take with the stock up better than 12 %. the dow down 61 on the weakness in some neck names there. "squawk o

>> i don't think google should trade the same.ebook is 35 times forward earnings and probably deserves it but it shouldn't be traded at 18 times forward earnings, closer to 25. let's say 23. you know, you say $32 a share next year and get to this a $750 stock easily. the move we've seen has basically made up for the last 1 18 mondays of under performance. it's not as ridiculous expensive. >> i want to get back to the question that i asked brian kelly concern. >> oh, oh, oh -- >> that is about tech overall and where we trade tomorrow -- >> i -- >> all of those stocks on the side there, they are at new highs in the after hours session. >> what guy is getting at and david, this is going to pull investors into the market because there is a fear of missing out or fomo. >> is that a bad thing or good thing? >> rally is a rally. the same, money is good, you know. >> all right. coming up, stock market struggling to regain major losses and one group getting rocked over fears. what it is. plus, the most important things you need to know ahe

call me a google skeptic. i love google. i love google products, google technology.nd i think they're brilliant over there and i think ruth porat can speak to wall street. the question is, come back and speak to me in six months, we talking quarter to quarter here. let's see what happens. and if this can be sustained and if they can get their stock-based comp under control and show they're not the next microsoft. >> herb, you're right, we're talking about quarter to quarter. do you think there's any signal there's trend acceleration from q 2 do q 1. just the fact that we're not seeing the same kind of continued stagnation on the top line and especially in areas like mobile and search. i mean is there nothing worth lauding in terms of the fundamentals of the business? >> there's a lot worth lauding, especially if you want to look at it from a non-gaap basis, look, they got their, they did two things, they got their costs under control and this is very important that this very important what ruth porat said. she said we're prioritizing our investments and insuring we'r

you have to check out the google stock. 11% in the premarket to a new record high after reporting a blowout second quarter last night. revenue, $17.7 billion the numbers beating the street for the first time in six quarters. investors seemed pleased with new cfo ruth perat and her message that google is growing sales while cutting costs. that means spending less on the moon shot projection like beaming internet and more money being returned to shareholders. google has never distributed dividends through a share repurchase or stock buyback. there is $70 billion in cash. that is one disturbing thing. while revenue growth is there it is slowing down. it suggests that google revenue may be slowing down with smaller smartphone screens. >> several analysts are jumping on board and upgrading google. it is up over 10% this morning. there are very aggressive targets. jeffries, for example has an 800-dollar target, it is now in the low 600-dollar range. jeffries, 800. barclays just 765. baird has 720 -- 675. >> nasdaq up 3.3% this we

what is google saying? what are google's expenses to get those clicks up?y both of those measures, cost per click is down more than estimated, and pay clicks up more than estimated. it looks like the company is coming and better than it had been estimated here. i am just sort of scrolling through the statement right now as we look at the numbers. we are seeing strong second-quarter results and the cfo said the core search is doing well and youtube and programmatic advertising are areas of strength and she is also saying, this is interesting here, given that we are talking a little bit about google's cost, she says "we are looking ing businessesgui and we will do so with great care regarding allocation of resources." this is about how google will ,pend moon shots, for example so some interesting commentary there as the numbers look relatively strong here out of the gate. i am not sure we have checked the stock, and it is up 8% here so a strong react -- 8% here, so a strong reaction to those numbers. alix: for now, i want to take a deep dive into my terminal

google is not the only stock having a great day today. xc gained -- etsy gained 33% apparently because it is getting a boost from google. there is wild stuff going on in the market. i know that google beat for a while, but were you expecting this kind of jump. investor sentiment has been neutral foro years. people have wanted a series of things. for the time in five years operating margins were up year. that is something of an inflection high single-digit, point. low double-digit, sure. scarlet: netflix, facebook amazon, what is going on? >> they were oversold. and then we had a series of orders that should really -- showed inflection point. we have had good fundamental news on stocks that were oversold at the beginning of the year. we have covered -- recovered reasonable valuation. emily: the ceo of ogle, how much has to do with her? >> part of it has to do with the communication style. she replaced two cfos in the past that were relatively indifferent to the street and they let that be clear. she came out and understood with the street

emily: what about google?ric schmidt, chairman of google, recently said that amazon is their biggest rival in search. bill: to qualify, he made the comments during an eu 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 do not get those features. now, 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. emily: and they are also trying to do delivery drones as well. bill: 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 abou

>>> google, a huge day.ed out on the run, is there still an opportunity to buy google at this price? >>> we're watching shares of tesla. that press conference conference call is under way right now. stock has given up its highs of the session. phil lebeau lass the latest on tesla. phil what's new? >> reporter: melissa, three announcements have been made by elon musk on this conference call. all of these are fairly technical here but if you are a model-s fan you will be interested. they offering an upgraded version of the highest range available for the model-s going from 85 kilowatt hours up to 90 kilowatt hours. that adds 15 miles of range to that madle-s. you can go up to 300 miles on a charge at highway driving at 65 miles per hour according to elon musk. the second one is that the 70 kilowatt rear wheel drive model-s the price is being dropped down to $75,000, about $5,000 less than where it was. the all-wheel drive version is at. i think this is the one that will probably get the most attention. they've

pimm: google, for example. higher today. recordgoogle shares at a high, still at a record high pretty much. coming down and also the earnings and revenue beating estimates. of course, we will talk more about google later in the program. markets, we oil have the longest run into a we losses and oils january. the u.s.he problem -- stockpiles here are 100 million barrels above the five-year average. we have plenty of oil in the u.s.. at whatt's take a look is going on in the treasury market right now. basically unchanged. you see the 10-year. of buying or selling on treasuries. looking at currencies though, the dollar strengthening or the euro weakening against the dollar. also the yen weakening against the u.s. dollar. the pound sterling, just a little bit of a gain. sterling has been very strong against the euro. all right, let's look at the top stories crossing the bloomberg at this hour. german lawmakers cleared the way for talks on a third greek bailout after chancellor angela greece would them face chaos without a deal. b

think about what that would mean for google. it would mean that people would not necessarily make a choice of which browser to use. have a closed operating system that mandates certain behaviors on people it is unfair. absolutely one of the best things that ever happened. >> do you think google will ever close android? >> there is absolutely nothing that would convince larry to do such a thing. >> larry handed over a lot of control systems. -- anhink that was also a amazing decision. larry to time for think about what should google be 10 years from now. how do we think about artificial intelligence? how does it affect design? it is very hard to do both of those things at the same time. do you still have a relationship? do you guys collaborate? partner, firstor and foremost. of theto be in front pack when it comes to upgrading the operating system and using all the innovations that are coming from google. we spend time together every few months or so. >> with your company ever build its own operating system? we would not build ou

julie hyman will have more on google in a moment. the dow industrials and the nasdaq are lower as gold dropped to its lowest level since 2010 on signs of improving economic growth. that diminished its appeal as a haven. gold is down nearly 14%. one full percentage. oil is down as well. global markets will remain oversupplied and nymex crude is down 0.25%. betty: we have had a lot of economic data this morning that has affected the bond market. we had housing starts coming in better than expected but also cpi, consumer prices were in line with estimates. you can see that the yield on the 10 year -- the two year is going up in terms of the longer-term when you go out on the year -- yield curve, the 30 years at the lowest level in a week. on currencies, the dollar is headed for its best week in two in two the biggest gain months in part of that is on the euro weakness. see over the last two months we are at our highs of that time period. let's look at some of the top stories at this hour. german lawmakers clear the way for talks on a th

so this google. and not on cost cutting. >> what is google innovating?y aren't innovate vaiting anything other than they have a new cfo who's been on the job for less than the full quarter and she's using old-fashioned language. >> if the enthusiasm for google is going to happen in part because they're going to recognize that, and they have thrown a lost money at things that haven't necessarily gone that far. that's a little different. they have their own little venture capital firm going on over there and maybe having a financial expert in there would be a good idea. but as far as facebook is concerned, this is really about innovation. >> so you are looking at facebook tonight. >> yes. you have earnings coming up here on the 29th, right? basically around the corner. it's kind of interesting the move they made today. what got the buzz going and traders talking about it was the announcement of launching an e-commerce on their site here. i don't know how excited i am technically about that. if you're a big boy like a target or somebody like that, you alrea

gopro is the same situation, google was in that situation, we saw google blow through. do you look at it? >> if i can may technicals. if you look at a chart on gopro, there's been a lot of resistance in the upper 50s level. so i think if you're going to play to the upside, there has been this run-up. it's been at this point it runs into resistance, it needs a good earnings report. forward-liking goodance to break through the resistance, i think the calls are extremely cheap. play to the upside, much better way to play the stock. >> i was hearing, bear in mind the market has been through a rocky period. we had elevated volatility. we were moving at a slow or slightly upward motion. >> mike ccomikecoe is being bul. >> he's trying to define the risk. it's essentially binary when it comes to earnings, earnings have to pan out or you're going to lose the whole amount of money you paid for this in a heartbeat. >> do you like amberella as well? >> i'm not as crazy about it. but i think this is the way to play it. in all of these names this is the way to play it in many instanc

both the internet industry, the googles, the yahoo! and microsofts that wanted to retain their control. but you had the traditional media world, the studios and labels and others, that wanted to retain control of distribution. they were attacking us, accusing us of not doing the right things around copyrights, when, in reality, we were building more tools than any of our competitors and more policies from day one that anybody else to deal with all these problems and eventually create solutions for them where they could monetize them. the music industry earns billions of dollars off of youtube on an annual basis now. but with all these people were looking at us, and us just struggling to keep things up and running, we had no other choice, really, at the end of the day, than to be acquired by someone. for us, we were lucky enough to be acquired by google, who, in my mind, kind of took a chance on us. and that really youtube would probably not be here today or what it is today without their support. so i am really thankful we ended up the

google is not the only stock having a great day today. apparently they have a google algorithm traffic boost. there is somewhat wild stuff going on in the market. i know that google beat for a while, but were you expecting this jimp? >> investors have been neutral and for the time in five years operating margins were up year. it is an inflection point high single-digit, low double-digit sure. scarlet: netflix, facebook amazon, what is going on? >> they were oversold. and then we had a series of orders that should really inflection for the when it comes to subscribers, google cost profitability. we have had good fundamental news on stocks that were oversold at the beginning of the year. we have come back to reasonable validations for this sector -- valuations for the sector. emily: how much of this has to do with the google ceo? >> the communication style. she replaced to cfos in the past that were relatively indifferent to the street and they let that be clear. the system comes in and understands what the street is focused on. she knows i

the head of the dragon project that google is now suggesting that google is start to use technology to warning like a honk to alert distracted human drivers on the road. so the cars stop getting hit from behind. this might explain how uber is a $50,000 valuation. according to a new survey, 55% of business travelers over the past three months versus 43% with traditional cab rides. we did this part already. the cost right now at the elaborate escape from the maximum-security prison was a reported $1 million. the tunnel he escaped into with a mile long and very elaborate. the estimate doesn't include the cost of the land where he emerged from the pomo or the house but over the exit. he is a magician and an expensive one at that. stuart: to gift that keeps on giving. of course the guy is still on the loose. you have a good headlines for monday morning i'm sure. don't forget to tune in every morning, every weekday morning at 5:00 in the morning. you will see this young lady warned the necessity along with sandra smith at 5:00 a.m. unbelievable. check the share price at mcdonald's. but donal

from there she entered into google. and be another really interesting lesson to earn from

emily: late stage investment, technology not to compete with google. >> from a google perspective, securitysomething that they take very seriously, foremost in our mind. and google does not disclose the in-house relationships, but, certainly, crowdstrike is very well known to google and to the environment, more broadly. max: a long-term maker of the products especially during the paypal years, one of the truisms is people would like to pay for it after the attack has successfully occurred on their network. how are you finding your sales process, your ability to convince people that this is something they finally be to pay attention to? and i ensure that the newspaper coverage helps. how are things changing on that side? emily: george, you take that. george: if you look at where security has been, it really is a board level discussion, and i think that is one of the big drivers and changes that we have seen. the board is very concerned with their brand. their exposure and the cost of a data breach, and that is being driven top down into these companies, cell ago, we would really have to evan

google can't help from here. amazon can't help from here. if we get any kind of drawdowns in biib then sideways are down. i think you've got a good thing and dovetails with what we're trying to do. >> the other thing is you should be looking to do one of these situations where you're buying an outright put on the index and look to spread. even though we did see a little 307 in the vix today, gym plied volatilities on some of these indexes like the qqqs and spy. still look cheap to the spread trades like we want to in some of the single names. >> last word. >> carter made a really good point. amsn, google, they're not going to help from here. you know wholesale? oracle, intel, microsoft. fundamentals really bad out there. >> send us a tweet t to @optionsaction. if it's nice we might read it later on in the show. give it a try. for everything else check out our website, optionsaction.cnbc.com. hottest options news, videos throughout the week and exclusive trades. so check it out. here's what's coming up next. ♪ a double pleasure's waiting for

chris: if google were to buy twitter, it would instantly improve the stuff google has.his board, there is no one that wants to be independent forever. nobody owns 50% of the stock or could block a deal like that. emily: you think google would want to buy twitter? chris: i think google would love to buy twitter. i think they never got social personal identity, real time, or anything, they haven't nailed that. that said, zuck would not let twitter go to google without putting in a bid. zuck looks at twitter and sees so much potential in it. people i know who are close to him -- but his perception that twitter is not doing everything they could has not changed. he would love the opportunity to own it and to improve some of the things. you have a user at microsoft who has watched it. back when we did the search monetization deals when twitter first started selling some of its search data to partners. it was sacha who came down, when microsoft revisited it was across from me and dick costolo. i think alibaba may be interested, too. emily: you think facebook, google, alibaba,

emily: what was it like transitioning to google?had hurley: one of the things ergei and the survey -- s -- especially eric told us when we first met them was continue , to run this yourself. continue your culture. we just care about growth. let us know if anyone gets in your way. emily: there was always a question about how youtube was going to make money. what was so hard about it? ♪ emily: until more recently, there was always a question about how youtube was going to make money. what was so hard about it? what was so hard about building it into a business? chad hurley: i think people were internally -- even externally -- looking for this big answer. there has to be something other than just another video. at the end of the day, i think it is all about targeting and providing choice to the viewer. there will be more than enough ways to monetize the site just looking at traditional means of advertising, but people are always looking for this bigger answer. emily: you stepped down as ceo in 2010 -- why did you leave? chad hurley: i

with google is two-fold .oogle is a huge player. they are a dominant player in the search industry. we have one interest -- to make sure we get a fair shake at advertising placements, a fair shake in organic results. on the other side though google has been a great customer acquisition channel orfor us both in the traditional search product, advertising product and potentially this new google book product. we have a great relationship. emily: he also told me expedia was not seeing or feeling much competition from airbnb. i asked if he was considering a partnership. mark: you will see us move into the vacation rental industry and we are certainly open to other partnerships. with respect to airbnb and competition we are not seeing a huge amount of impact on our business. our room nights grew 35% year-over-year in this past quarter. we are looking at this as an adjacency an opportunity. right now, we think we have a lot of runway in our core business. emily: mark cfo of expedia. coming up buzz on an update to app

i don't think the gamins in aal and google are very constructive. facebook is coming and let's see how that responds. that stock up 15% speaks to narrow is breadth and speaks to people really trying to concentrate and figuring out where they can high. >> meg mentioned exeli exelisis people are having a hard time figuring out where these are valuinged and if people decide to go the other way it can move down just as quickly as it moved up, maybe even more so. >> i want to ask more about the qs. >> the qqq, up 50% of the weight, 2.75 trillion in market sum and some have performed real, really well and the trade i'm looking at, look at it as a hedge. own apple and large cap biotechs. option prices are real cheap in the qqq, the nasdaq 100. very simply the etf probing out to a new 15-year high this week and it fail what. i'm looking for is a retest of the 200-day moving average down towards 105 so today when the etf was about 112 i bought the september 110 put, paying $2 from that. my maximum risk is that $2 between 108 and 110 and below that i have pot