it's not the hp way."became a shield against change. >> she persevered, though, and in time, orchestrated a huge change -- the merger with compaq. >> yeah, this is a big damn deal, but we can pull this off. >> the board backed the deal 100%, but merging with the more trendy, edgy compaq was seen by some insiders as an attempt to kill off the old hp way. it didn't help that she had made herself the face of the company or that she had starred in a commercial in front of the old sacred garage. >> today, the company of bill hewlett and dave packard is being reinvented. i mean, if i had it to do over, i probably wouldn't have gone into those commercials, because i think it made me, perhaps, even more of a target. >> it couldn't have helped with the families -- the hewletts and the packards. they turned against the merger with compaq and against her. >> the families took out an ad at one point, and they said that you were "incompetent, unethical, unfit." >> oh, look. i think the fight got very ugly. very ugly th

what do we do here with hp? to your point, the one growth driver that was 3d printing. >> i don't think it has to be 3d printing. the kd be printing, he was able to agree on that. the biggest catalyst has been this last leg up. has been splitting the company in two. >> so, now what? >> i think at this point, you've got to lock in profits. >> i think if you are there for the split, people want to own different things, that's not going to happen for probably at least nine months. so, and so many other things could happen before that. if that's your catalyst, i would wait. >> you know what? instead of intel, i'd like toward microsoft. >> instead of hp. >> i would start selling microsoft. with the pc cycle turning around, there's not many more catalys catalysts. >> you know, i think the things that you weren't catalysts aren't going to be catalysts and take the stock higher. thai going to be a well run company. cost focused. they're going to pay decent difs. it's cash flow generative. buying back more stock. the spl

she announced a split at hp. they need to do next. >> from overheated to cooling down, housing prices rise in the slowest pace in two years. where real estate is headed next. >> is the perfect thing to wear with your smart phone, the smart shirt. a breakthrough in biometric apparel. it's 11:00 in new york city, you are watching "market makers," i'm erik schatzker. >> and scarlet fu in for stephanie ruhle. prototype, the real thing is on sale and shipping just in time for christmas. >> you will be a guinea pig. >> by try to this weekend. you will see more. >> that's coming up. in the meantime, let's start with the bulletin. the top global business stories of the morning. the u.s. economy has not grown this vast and 11 years. the government says gdp rose at an annual rate of 3.9% in the third quarter. that is more than previously estimated. add that to the 4.6 growth in the second quarter, and it is the best six month performances 2003. consumer spending and business investment grows. apple is the world's most valu

hp shares down 2.7% in the premarket. >> here's the hp chart. it shows the challenges.ot a bad year for meg whitman. michael, what i find interesting is clout. talking abody starts theme, all my radar goes up. how do you handle theme investing when you're trying to not lose money? >> it is a hard thing to do and a hard question. >> remember nanotechnology? 1999, lot of powerpoint slides and detailed excel spreadsheets to go along with those. it is hard because you have seen companies -- was a post on alibaba which is generating real cash flows. facebook is generating real revenues. these are new companies. they are themes -- >> but the cloud is a boom. my radar is up. am i wrong? >> i don't think there's anything wrong with the cloud per se, it is a matter of if you're going to succeed in the cloud. >> everyone is shifting -- >> cloud! >> it becomes this catchall. in the cloud, doesn't mean you deserve a higher p.e. it is more that this is sort of a new environment you have to work out of. >> you're looking for a way out. >> do we have a twitter question? >> we do. what

but airlines running hp end-to-end solutions are always calm during a storm. big data and cloud solutions make sure you always know what's coming - and are ready for it. make it matter. ♪ ♪ ♪ woooooah. ♪ [ male announcer ] you're not just looking for a house. you're looking for a place for your life to happen. zillow. >>> just a few miles from the crater's village, about 400 maasai live here. oladorup is the chief. he has 4 wives, 12 children, a handful of whom are old enough to be out looking after the herds. i was born in new jersey and >> oh. >> you have a son in new jersey, yes? yeah? >> yes. yes. starting in one of the colleges known as montclair state. >> oh, yes, i know montclair very well. near where i grew up. >> oh, yes. >> look at that cloud there. there's going to be some downpour. >> you think it comes here? >> not us. >> it's funny, they always know what the clouds are doing. the weather reports out here. >> the maasai have been migrating with the season since they came to this part of africa time in the 15th century. long, long before the sereng

hp splitting up. ibm struggling. when it comes to incumbents versus startups, how does it play out?> every couple of decades, you have this sort of changing of the guard as it were. startups that are optimized for that disruption have an opportunity to take advantage of that and potentially build the next era of ibm and hp and microsoft. at the same time, you do have incumbents that have a lot of cash. they are led by incredibly smart and astute leaders that understand the change. the changes you are seeing are driven specifically because they are being disrupted. >> hp is not a technology company anymore. it is a bet against innovation. >> that is a provocative statement. in terms of relevance, you have leaders of these companies that are recognizing that their previous strategy would have lead to irrelevance and they have to change that. we have a view that everything is zero sum. ibm does not have to lose for apple to win. >> what about microsoft? a company you work with. >> there are specific product areas where we could potentially lose or be harmed by some of this transition,

later, he sits on the boards of facebook, hp, and until recently ebay. andreessen horowitz backs some of the hottest companies, like twitter, airbnb. i sit down with mark andreessen in this special edition of studio 1.0. >> 20 years ago this week, netscape, which you founded, launched. can we get applause for that? ushering in the web as we know it. how does that feel? >> it is fantastic. it is so extraordinary. we had a little bit of a glimmer that something might happen, that it might matter, that this internet thing might work out ok. it turned out it has. it has been extrordinary. >> you have been incredibly productive since. you started a capital venture firm, andreessen horowitz. you have also tweeted 33,000 times in one year. >> thank you. >> which is more than all three founders of twitter combined. >> yes. that is true. i really think the stock and the company should be rebalanced. >>we are going to reference some of your tweets, and i wan to start with this one. when i came to silicon valley in 1994, i thought i had missed all the opportunity,

>> so i would say it's quite the opposite at hp.ur innovation engine is the best that it has been in a decade and frankly, separating these two companies will allow each company to focus on the innovation that is most important to their company within an organization. printing and pcs, a third of their business is to consumers through best buy and major retailers across the world and major websites and they're now going to be deeply focused on what's the innovation like immersive computing like 3d printing, while on the data center side we are all over the software defined data center, what will help cios for businesses of any size reduce costs, become more agile and be better able to service their lines of business. so i would argue that focusing is going to lead to even more on target innovation for those customers. so we think it's a big benefit. and as far as disruption, i am really proud of the hewlett-packard organization. we've got people focused on the separation and everyone else understands that they've got a day job that

and now telcos using hp big data solutions are feeling the love, too. data upgrades -- an idea that reduced overcharge complaints by 98%. no matter how fast your business needs to adapt, if hp big data solutions can keep wireless customers smiling, imagine what they can do for yours. make it matter. >>> my oldest friend in vietnam. originally assigned to translate, to guide, to escort, and to report on me back in 2000 when i first came to this country. lin, how are you, brother? >> my brother. >> good to see you. his responsibilities to his employers have never been an impediment to our friendship. we meet where you pick your own seafood out of the tank, and you cook it yourself. you really do look exactly the same. you look good. >> yeah? >> oh yea, yeah. >> you look the same. no trace of time on your face. >> my hair is white, i have lines on my face. i look completely different in 2000. >> people told me the seafood is from the lagoon over here. it is one of the biggest ones in southeast asia. >> i'm going for some eel. seasoned with lemongrass, gree

hp misses his numbers, how much does it go down?those numbers, it is half or more. i love about the current market that companies like this, they still have not fully worked out their profit model, but are able to stay private. they raise a lot to continue to grow. it is really good for the overall market. request good revaluations. but ok. -- >> good for evaluations. but ok. >> exposing small investments to the stock, i would be worried. in the private market -- fidelity -- no credited investors. note each rating. that is what you don't want. >> we will be back in a moment. much more to talk about as we hear the opening bell. we are mixed. ♪ flex let's get back to bringing you the most important stories that you need to know before the bell. guest host, guys, this is our number one story, quite active today. hewlett-packard preparing to split its business into hamburg reporting fourth-quarter sales that fell short of analyst estimates. it is the same story that we have heard over and over again, revenue misses that are possible. th

and now telcos using hp big data solutions are feeling the love, too.fering things like on-the-spot data upgrades -- an idea that reduced overcharge complaints by 98%. no matter how fast your business needs to adapt, if hp big data solutions can keep wireless customers smiling, imagine what they can do for yours. make it matter. what if we finally haddo that would be amazing. hey, what if we took down this wall? what if this was my art studio? what if we were pre-approved? shut up! from finding to financing, how'd you do that? zillow. >>> it's pitch-dark, but our night-vision cameras capture every moment, and one hour into the ceremony, the physical effects of ayahuasca start to kick in. some people vomit. others teeter on the brink of collapse. though i've been forewarned, these intense reactions are still disconcerting. [ chanting ] >> but this is just the beginning. the gringo shaman steps up the healing, blowing smoke onto seekers, like stan, to drive off negative spirits. these are native traditions, repackaged by ron to give his guests an authenti

and now telcos using hp big data solutions are feeling the love, too. by offering things like on-the-spot data upgrades -- an idea that reduced overcharge complaints by 98%. no matter how fast your business needs to adapt, if hp big data solutions can keep wireless customers smiling, imagine what they can do for yours. make it matter. >>> i'm 29 years old, and i would have never thought that my life would have come to this. you know, i i lived a pretty good life growing up. family loved me, and people cared about me and a lot of friends. i had a girlfriend for the past four years. we broke up about eight months ago because of my using. i was engaged to her. and just, i chose the drugs -- i chose the drugs over her. >> aaron sofield continues to do time in the bergen county jail's drug rehabilitation center while waiting for charges for theft and forgery. it is a strict regimen that the inmates must adhere to for 90 days or they are dropped. >> we have rules, and it is kind of funny, but if they don't have their keys on them or the locks on the lockers o

but airlines running hp end-to-end solutions are always calm during a storm. so if your business deals with the unexpected, hp big data and cloud solutions make sure you always know what's coming - and are ready for it. make it matter. what if we finally had that would be amazing. hey, what if we took down this wall? what if this was my art studio? what if we were pre-approved? shut up! from finding to financing, how'd you do that? zillow. >>> there are new protocols for police in new york and washington, d.c., after the second attack from a man with an axe. last week, a man with a hatchet attacked four new york city police officers. rene marsh has more from washington. what do we know about the details from this washington attack? >> well, anderson, we know it happened about 3:00 p.m. this afternoon in a residential d.c. neighborhood. so this officer was seated on the driver's side of his squad car when apparently this man armed with an axe came out of nowhere and attacked him. you can see from the video there where the axe interestentered t window. really on

today calling the sprout, is this a new hp or not?> meg is doing a masterful job managing it and the image. but i keep coming back to fundamental. one the pc business is a not going to continue forever. it is the commoditized business they are fortunate to still be in and they couldn't manage enterprise growth in north america. everybody else in enterprise is doing really well in america. so the fact that pcs are still the lead thing for them i have concern for the other side. >> and enterprise group decline in every place except networking. what happens when they split? everybody is doing crazy stuff in enterprise right now. what is going to happen to that enterprise company? is that like times coming off the print division. is it left for dead? >> particularly in areas like storage where they made big acquisitions. they are supposed to be growing. software is flat. that is an area supposed to be growing. networking cisco is up and still particularly strong. their growth not impressive given the overall marketplace. >> david asked he

shares in hp up about 6.5% in the last three months. this is the first earnings report from hp since they announced that split. investors want more clarity. how do you unlock shareholder value, making both companies profitable and meaningful to the world? >> notebook computers. they're saying that this was kind of a one-trick pony in terms of the results we've seen already. but whether it can continue or not, we simply don't know. it's too early to say. cash dollars looking very, very good for them at the moment. meg whitman seemed to underline that, breaking up as well as a chance to get on top of the cost cutting measures that need to be taken. it's a complete overhaul for the company. >> you were just mentioning pcs. pcs are seeing somewhat of a stabilization or recovery, if you will. that's been one of the reasons we've been seeing intel beating street expectations. hp citing growth in its decision up 4% year over year. is it the comeback of the pc or are laptops going to -- >> would you buy a pc? >> i would not. i love my tablet an

he says hp garage. [laughter] this questioner asked how much would you ascribe cultural success of google to the example set by bill and dave? >> wow. so i worked at hp briefly for a summer. i actually read the hp way. it surprises me that most people go into companies, and they don't read these documents. i think there really was a time at hp where management was by walking around. and i think that senior managers at google once they kind of come in and figure out that they haven't been brought in to be dictators, they've been brought in to be aggregators of viewpoints, and they've been brought in to help get synapses firing across teams, then they're finally able to be successful. and i really think that is the kind of management style that bill and dave espoused. >> a googler be highly successful and have time and energy left over for a family? [laughter] >> yes. we have a number of googlers here on the stage who manage to do that. >> and we also have a lot of our family members -- >> a lot of our fa

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and now telcos using hp big data solutions are feeling the love, too.fering things like on-the-spot data upgrades -- an idea that reduced overcharge complaints by 98%. no matter how fast your business needs to adapt, if hp big data solutions can keep wireless customers smiling, imagine what they can do for yours. make it matter. imagine what they can do for yours. hi, are we still on for tomorrow? tomorrow. quick look at the weather. nice day, beautiful tomorrow. tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. what a day. can't wait til tomorrow. international rugby on soldier field. usa -- the home of the brave -- versus new zealand -- land of the warrior. the most powerful sporting nation in the world versus the most dominant rugby team of all time. the usa eagles versus the new zealand all blacks. be part of it. >>> every day vans transport inmates between the tulsa county jail and nearby courthouses. for

from hp to ebay. why is that happening? are we going to see more of it?> i think there are a lot of different reasons why that is happening. one may be the companies have become too big, unmanageable and you want them to be smaller units. smaller units are easier to manage, so an organization like hp, they will have one for each and that will be a great strategy for them. i think the same thing is a great strategy for ebay. probably a lot of other companies will follow that. >> will oracle follow? is oracle one of those companies? >> i think that with oracle, that is difficult. number one, the distribution will be the same no matter what. oracle has to innovate at a higher rate. that's what we've not seen oracle do in the last decade. >> salesforce has been a big acquirer. how do you continue to buy companies without losing focus or getting bloated? >> acquisitions are hard no matter who you are. i can tell you firsthand after doing 25 acquisitions over the last five years, acquisitions are hard. but you can transform your company through acquisitions. th

two decades later, he sits on the boards of facebook, hp, and, until recently, ebay. his venture capital firm andreessen-horowitz backs some of the hottest companies, like twitter, airbnb, and pinterest. i sit down with marc andreessen at salesforce's dreamforce conference in this special edition of "studio 1.0." >> i wanted to start with a word of congratulations because, 20 years ago, netscape, which you co-founded, launched. can we get some applause for that? [applause] ushering in the web as we know it. how does that feel? >> it is fantastic. it is so extraordinary. we had a little bit of a glimmer that something might happen, that it might matter, that this internet thing might work out ok. it turned out it has. >> you have been incredibly productive since. you started a little venture capital firm, andreessen-horowitz. you have also tweeted 33,000 times. >> in? >> in one year. >> thank you. [laughter] >> which is more than all three founders of twitter combined. >> yes. that is true. >> since twitter started, by the way. >> i really think the stock in the compan