take ibm. an old technology company with a stock that's been stuck in a brutal long-term downtrend, off more than 35% from its all-time high. all of this time, what has ibm done in order to make a comeback? mainly ibm has spent money buying back its own stock. an insane amount of stock. they should consider changing the name international buyback machines, might be more fitting. i think there's more of a positive and constructive path for ibm to turn itself around. in order to make that happen, management needs to put its money to work in a more intelligent way, my own view. if ibm's business is declining, and it is, then buying back stock isn't going to fix things. they have made a huge string of acquisitions, i don't think they've bought big enough. after these last years of disappointment, my view is it's time to get more aggressive up to the 40% to 50% region where ibm stock can fly on its own without the need for endless buybacks. ibm needs to acquire other sizeable companies with rapid gr

it's not ibm strategy. she agree with warren buffett, an investor in ibm, that the move should be to higher quality earnings not just to revenues across the board. certainly an interesting conversation. i expect that andrew sorkin will be asking her about the company's strategy around buy-backs. it's something he has written a lot about. i also expect that there will be some discussion around this new inquiry from the s.e.c. about how ibm has been recognizing its revenues over the years. certainly interesting in a conversation throughout the day where it's all about the long-term strategy. a company like ibm, 104 years old. juxtaposed against the netflixs. we had max of affirm talking about the evolution of financial services having ibm right in the middle of that mix is quite an interesting contrast in studies. guys, back to you. >> kayla, thanks. thank you for that. a reminder, of course, you can watch the rest of the interview over at cnbc.com. >> an important vote happening in san francisco today that c

>> apple and ibm. >> apple, i here. but let's not get crazy about ibm. >> it was up 5%. >> on a great tape. up to 129. good for them. but that is playing the stock market, which is fine. we've talked about for the last 16 months if you just did the math, ibm was $139 stock it. overshot and at where we thought it would go. i thought the multiple was too high. and could it rally another few bucks. yes. but that is a challed company which -- a challenged company which we'll discuss later in the show. >> 140 is a critical level. but one, they could be ripe for a new ceo. clearly there is something not going right there. that could give a boost to the stock. but they could come out with and show how they could monetize watson that, will change this company. now they came out with an app this week using watson that predicts what the hot christmas gift will be for your kids. i bet that app is popular and gets people in the stock. >> i don't know how much is it t does really move it. that is the problem. >> that is the long-ter

. >>> welcome back, let's get a market flash on ibm. >>> welcome back, let's get a market flash on ibm. seema mody back at headquarters with that. >> hey, sara, that's right. warren buffett's berkshire hathaway beating on earnings but it saw unrealized losses of approximately $2 billion from its investment in ibm. but berkshire is sticking behind the company saying ibm continues to be profitable and generate significant cash flows. we currently have no intention of sfoezing our investment in ibm common and that we expect the fair value of our investment in ibm will recover and ultimately exceed our costs. sara, ibm shares have been underperforming the major indices, down about 14% year to date. definitely not a winner so far this year. >> seema mody. thank you for the update. dan, we knew this was the loser recently for warren buffett and now we know it is a $2 billion loss this quarter. >> it's funny, he talks about how they're generating a lot of cash flow that they are using to buy back their stock. just blow it up. so like at the end of the day -- >> they had argued that they are b

it was not called ibm. what was it called at the time?rom typewriters and punchcard machines, the precursor of the selling, and they were software and services, and now, they are in the midst of this. david: ok, that was back then. .ow, the second-biggest the stock is not doing that great. jing: last year, the ceo of banded an item at $20 a share, and that started the selloff, and this transition is going to take a while. david: i think of what this company was and what it is today, and i have trouble articulating what it is that ibm does. so here we are over 100 years in. what does ibm do? it is no longer making a pc or laptop. what does it do? selling is still hardware and software and services. they are moving into the data, and what you're looking at what amazon is doing, and they are still very focused on selling their services and what that looks like to them. david: something you pointed out in your piece which is an amazing statistic, if you look at growth in the dow -- i'm sorry, six thousand percent growth, and an extraordinary

palo alto is winning right now but there's room for everyone, including, yes, cisco and even ibm, if they want to tryo expand on what may be the fastest growinininformation tetenologies in the universe right now. why don't you stick with cramer! mouth, then you'll know how uncomfortable it can be. but did you know that the lack of saliva can also lead to tooth decay and bad breath? well, there is biotene, specially formulated with moisturizers and lubricants. biotene can provideesoothing relief and it helps keep your mouth healthy too. biotene, for people who suffer from a dry mouth. did you know there's a cough liquid that lasts for twelve hours? try delsmm twelve hour cough liquid. its advavaed formula releases powerful medicine that acts fast while its extended release medicine lasts for 12 hours. >>> there's always a bull market somewhere and i promise to find it for you right here at "mad

the critiques centered on how ibm would screw up the people who work there away. i frankly question that negativity. i would remind people when you have a secular growth story this strong, you have to shell out some capital and copy of the brains behind the organization running things. ibm could absolutely make these potential takeovers work, they are just need to stop spending all their available cash on dividends and needless buybacks. one thing's for sure. we now know that the funk in cybersecurity stocks has nothing to do with the fundamentals which are on fire. palo alto is winning right now but there's room for everyone, including, yes, cisco and even ibm, if they want to try to expand on what may be the fastest growing information technologies in the universe right now. why don't you stick with cramer! mouth, then you'll know how uncomfortable it can be. but did you know that the lack of saliva can also lead to tooth decay and bad breath? well, there is biotene, specially formulated with moisturizers and lubricants. biotene can provide soothing relief and i

this notion that ibm should bulk up to challenge pal owe labwe a the firestorm of criticism i took on twitter for even suggesting it. it wasn't so much that people didn't think they were groundwater ideas, they seemed to like them, or even that they were too expensive. the critiques centered on how ibm would screw up the acquisitions, drive the good people who work there away. i frankly question that negativity. i would remind people when you have a secular growth story this strong, you have to shell out some capital and copy of the brains behind the organization running things. ibm could absolutely make these potential takeovers work, they are just need to stop spending all their available cash on dividends and needless buybacks. one thing's for sure. we now know that the funk in cybersecurity stocks has nothing to do with the fundamentals which are on fire. pail low alto is winning right now but there's room for everyone, including, yes, cisco and even ibm, if they want to try to expand on what may be the fastest growing information technologies in the universe right now. why don't

to your point, apple did it, ibm did it arguably. ibm is trying to reinvent itself again.nly name maybe two examples in 40 plus years of technology history says something which shows you how difficult it is. emily: what happens the yahoo!? you have analysts saying it is time for marissa mayer to go. shira: they have not really articulated what the strategy is. they have all this cash coming in from the alibaba spin. what will they do with it? marissa mayer says they will jettison some underperforming strategies. underperforming assets. that sounds like a good strategy. then what? they have not articulated what the strategy is. emily: do you see yahoo! going private? shira: it is getting to the point where they need to either sense strategy or think about plan b which is selling the company, breaking it apart. emily: it is all fine and good when you are on top, if history is any indication, companies do not stay on top for long. do you see an apple or facebook knocked off at the top spot? nobody can really come up with a viable scenario in which that happens. shira: that is

let's talk ibm. >> sure. let's do that. >> caller: i bought ibm in the middle of october this year at about a buck fifty because it was at significant lows, off its all-time highs. since then it's continued to get pummelled. and i'm wondering what the outlook is in your opinion. i'm looking at this as a long-term investment ten years and want to know what you think about it. >> well, ibm now -- unfortunately the stock with interest rates going higher because of the fed, this is my view a 4% yield won't protect you. it's like a 3% yielder when rates are low. here's the problem with ibm. they twice suggested that this might be a breakout quarter where some of the faster stuff is growing much better and not -- and able to offset the bleeding stuff. it hasn't happened yet. ibm is a show me stock and i can't get behind it until the good part crosses over and bad part diminishes. and that has not indeed occurred yet. and they will tell you that that's the case. joan in new york. joan. >> caller: hi, cramer. yes, i

emily: you do not see them -- apple and ibm as a competitor? meg: ibm, yes, in many cases.pple a little bit different. apple is more about the devices in the enterprise, and they would very much like to go into the enterprise, and we obviously need to defend. more on the hp inc. side, but we need to defend. as you migrate -- say you are a cio. as you migrate infrastructure into the next generation that will be required for you to be cheaper and faster and more nimble, the ability to write applications in a new environment, cloud native and mobile, it is going to be important for you to have orchestration, monitoring software. everything has to be automated today. and so we have those kinds of opportunities in our software portfolio. so we play in quite specific areas of software that is a little different than, you know, erp systems, like an oracle or s.a.p. or salesforce. this is not really our market. emily: what about the cloud? what is the hp strategy when it comes to the public cloud? are you going to be a cloud, or sell to the cloud? and do you plan to take on amazon

nikita khrushchev actually came to an ibm facility in san jose. this was back in the 1950's.hey rigged up a computer to ask questions. have you solved it? is it done now? or are you still making progress? >> that is a great question. prior to watson, everyone in the artificial intelligence community had tried to solve open to me question and answer by writing a month of rules. rules based learning, or organizing research. that had very limited success. it wasn't until we took a full open to me statistical approach -- open domain statistical approach that watson was able to answer questions in open domain. >> on that point, i have heard more about ai and computing in the last six months than the last six years. it seems that there is a moment going on in this space. why are we seeing innovation and growth so quick now? what has changed in our approach? >> we are at the proverbial perfect storm. much of the world's information is now digitized, including natural language and areas like health care, law, etc.. computers can now access it. we now have the computing power to do so

he mentioned ibm.hese are value stocks that if you have a long-term time horizon, three five years, i'd much rather own those companies, get paid to own them because they have generous dividend yieldsing alongt way. >> value traps, ibm. >> thanks, guys. john buckleham with al frank asset management. kevin kelly with recon capital partners. >> you could probably buy a sock puppet on amazon for all i know. >>> to the economy now and the job market. the number of job openings climbed in september to more than 5.5 million. that is the second highest level on record. separately, the number of people applying for unemployment benefits last week remained unchanged at 276,000, near a 15-year low. >>> and with the job market firming many economists think the federal reserve is on track to raise interest rates at its next meeting in december. today a number of fed officials didn't focus quite so much on december but on what might happen after that. kate rogers has more. >> reporter: fed officials are now startin

for a stock like ibm, it's had how many ever in declining revenue growth. had he tend to leave it overly cheap. should it be cheaper than amazon in the markets tend to overdo it at extremes. >> i don't know why you would think the market is overdoing it? every business is under massive seeming. i think it's actually been inefficient in not reacting to it sooner. >> yeah. >> what should a commodity -- >> so i use ibm as a representative example of the type of attitude investors have towards value stocks. will ibm do well? who knows if that individual one would -- will do well. i'm recommending a basket of value stocks. the point is it's extremely ease where i to build a narrative against ibm. >> right? >> just as you build the positive. buffett owns it. it has a yield. it's ten times earnings. it's easier to built a positive narrative over a stock that's come down 50%. than a negative. >> really? >> i think so. >> i think you could say this is the ultimate falling knife. >> we could have heard that three months ago, six months ago, nine months ago, two years

. >> ibm is saying, listen, we're really making inroads in cybersecurity. do you see an ibm? >> he did not see an ibm. >> wait a second. you do not see ibm in this space? >> in our space, no. first -- >> but that's where they should be. >> well, they have elbows in some pieces of the security sector. but in our space you have to be an expert. it's a layer that has to be talking to mission critical systems on the inside. we have a leadership role in there. we worked hard to get there. >> that's important. invest to drive growth. that's going to continue, right? >> yes. we see it as a g genfield opportunity. the example is the steel company, just to show every company in the world needs this. >> you talk about how few companies are actually spending. >> yes. it's a greenfield. we have 2,000 customers. we're happy about that. but for us it's just the beginning. we have to get it to 10,000 customers. >> once you get in, you have a huge percent to take care of. >> yes. we showed this quarter, more than 25% of our customers bought three or more products. that's the tip of the icebe

they say companies like ibm, cisco systems and microsoft have partnered with chinese tech firms thatk closely with the country's military. representatives from the american tech companies say they're not damaging national security or anything else. they're following all the united states laws. the u.s. military and others are now reportedly investigating these relationships. u.s. official accused the chinese government of carrying out hack attacks on companies in the u.s. joe lynn kent is here. what kind of business partnerships? >> what these companies are doing, they're selling to chinese tech companies that make things for the chinese military, and they're able to use the american technology for weapons control, cloud computing, all kinds of different things, encryption system, high performance computing, military wireless communication. so you can see the list right there is just a selection of what they're able to do. now, the center for intelligence research says ibm is, quote ex-endangering the national security and economic security of the u.s. by providing the chinese govern

google, short ibm.e's kind of taking what the market gives him right now, having the luxury of not actually having to beat a benchmark or stay fully invested, you kind of get the feeling he's got the market on a short leash so he can go if he feels the need to go. >> he kept saying don't necessarily do what i do, i could change my mind at any second i'm not totally bullish but not totally bearish. >> he's wishy washy on equities but not so on currency, did he say he was shorting the euro again which is an important point right now because what we had seen the last time we had this sharp monetary policy divergence where the fed was leaning to raise interest rates and the european central bank was moving the other way what he said about that strong rally in the dollar really did work out over the last year. it has paused and a lot of folks including obviously big name hedge funds are gearing up for that trade again with draghi talk being potentially talking about looking at the size of his qe in december.

ibm vice president stan litow. >> this isn't about feeling good and philanthropy. don't think there is a problem more significant standing in the way of u.s. competitiveness than closing the skills gap. this gets right after that core problem. >> reporter: 18-year-old radcliffe is a p-tech grad working at ibm, making $50,000 a year. >> three month s i was i was in high school and now i'm at a fortune 500 company. >> reporter: how high are the stakes. >> 50% of young men are unemployed. we are talking about saving lives. >> reporter: with 85 additional p-tech schools planned around the country, educators hope to save thousands more lives. elaine quijano, cbs news, brooklyn, new york. >> more time in the classroom. >>> there's a big change announced today in youth soccer them national governing body u.s. soccer is imposing new rules to protect against concussions. children 10 and under will no longer be allowed to head the ball. players between 11 to 13 will be allowed to head the ball, but only during games, not practice. this settles a lawsuit that alleged negligen

here's the problem with ibm. theyeywice suggested that this might be a breakout quarter where some of the faster stuff is growing much better and not -- and able to offset the bleeding stuff. it hasn't happened yet. ibm is a show me stock and i can't get behind it until the good part crosses ovov and bad part diminishes. yet. and they will tell you that that's the case. joan in new york. >> caller: hi, cramer. yes, i had a question. my financial adviser recommendnd i purchase wdc, he said for the long-term. i wanted to know what you think? >> what is he doing that for? does he know -- it's a disk i mean, what does he know about it? what do you know about it? it's a commodity -- i once went to a toy store, guy selling toys, i said whyon't you buy hasbro, a ten and went to 60. western digital was 60 and went to 10. you don't know western digital, how about like disney. any way, in this global trade where we're the winnerer it's just a differere set of winners than the 2000s and the ones winning then are losing now.

ibm vice president stan litow. >> this isn't about feeling good and philanthropy. i don't think there is a problem more significant standing in the way of u.s. competitiveness than closing the skills gap. this gets right after that core problem. >> reporter: 18-year-old radcliffe saddler is a p-tech grad working at ibm, making more than $50,000 a year. >> three months ago, i was in high school and now i'm at a fortune 500 company. >> reporter: how high are the stakes for you here at p-tech? >> the stakes are generation changing. we are talking more than 50% of young men are unemployed. we are talking about saving lives. >> reporter: with 85 additional p-tech schools planned around the country, educators hope to save thousands more lives. elaine quijano, cbs news, brooklyn, new york. >> more time in the classroom. announced today in youth soccer them national governing body u.s. soccer is imposing new rules to protect against concussions. children 10 and under will no longer be allowed to head the ball. players between 11 to 13 will be allowed to head the ball, but

warren buffett is a living investment legend, but did you make a $2 billion mistake in ibm? dish said it lost 23,000 subscribers in the last quarter. can it fight the rush of netflix and cord cutting? we look at the politics began president obama's decision to veto the keystone pipeline. former energy adviser to george w. bush in the next hour. ♪ good morning, and welcome back to "bloomberg markets." julie, i want to mention we look at the lows of the session right now. julie: we talked about before kind of pausing in the rally we have seen recently, but it does look like a little bit more than a pause when you see stocks falling, as betty was talking about. especially on a day when we have a lot of merger and acquisition activity. this is a $.4 billion here. weyerhaeuser also agreed to a $2.5 billion stock buyback after the completion of this deal. it will create a real estate investment trust that is the largest private owner of timberland in the united states. plum creek timber company rising on this deal. a takeoverot proposal, but we don't know who it was from. apparent

>> this app is called the ibm watson trend app and what we have done is taken the power of the ibm watsoner computer and put it in the hand of personal shoppers and with a we have been able to do is listen to over tens of millions of conversations online and bring back what's trending in the world of retail across three main categories, consumer electronics, and toys. >> they want a particular product but the fact is its simply sold out. so does your new app also help those shoppers try to get ahead of other shoppers? >> yes. absolutely. so we're able to listen to all of the different conversations that are going on including what products are likely to sell out ahead of time. so a great example of this, if you're a parent and looking the buy legos for yourself or your children this holiday season you want to get those early because lego is forecasting a shortage that they will not be able to fulfill all of their orders. >> what are the hottest items right now, justin? >> it's no real surprise to see a few popular names at the top of the list. apple products, perhaps surprisingly their wa

kasparov, have you challenged ibm watson to a match? if not, do you plan to? [laughter] >> guest: ibm watson doesn't play chess, and it's actually, it's a great accomplishment, and unlike deep blue, it's a software project, 256 power processers, each of them was a chess computer, tiny chess computer making about 1.5 million possessions per second, and ibm succeeded in maximizing the output of this power processer project. watson, as far as i know, doesn't play chess. and i also don't play chess. i retired ten years ago, and i am offering my advice to young players. i've been working to promote chess for education through kasparov chess foundation in this country and in other continents. but hi active role as a chess -- my active role as a chess player has ended ten years ago. >> host: when's the last time you were in russia? >> guest: i left russia in february 2013. and it's a very painful personal experience because that was not my first choice. i did it after receiving an invitation, they call an invitation from russian investigative committee, to show up an

how can i wear it at ibm?he got along fine with her co-workers but always turned down their invitations such as going to weekend wine tastings because she didn't dare bring speyer. engagement ring would have prompted questions she knew she couldn't honestly answer in an era when people lost jobs if they were found to be gay or lesbian. instead of a ring speyer gave it a diamond brooch which windsor wore on her lapel. even 45 years later, when her picture was appearing in newspapers and magazines all over the globe, thea speyer was diagnosed with multiple sclerosis in 1977. she was 45 years old. the disease was progressing. forseen needed a came to what, then two canes, and she was confined to a wheelchair. finally she became quadriplegic. she worked as a psychotherapist, seeing clients on the eighth floor apartment on lower fifth avenue where she and windsor lived. and swims to get out of bed. she and windsor couldn't make the in sickness and in hell bound legally, they needed any way to each other when it bec

partnership between the new york department of education, and ibm. the tech company helps to shape the curriculum to teach skills in demand in the workplace and graduates are first in line for available jobs. ibm vice president stan litow. >> this isn't about feeling good and philanthropy. i don't think there is a problem more significant standing in the way of u.s. competitiveness than closing the skills gap. this gets right after that core problem. >> reporter: 18-year-old radcliffe saddler is a p-tech grad working at ibm, making more than $50,000 a year. >> three months ago, i was in high school and now i'm at a fortune 500 company. >> reporter: how high are the stakes for you here at p-tech? >> the stakes are generation changing. we are talking more than 50% of young men are unemployed. we are talking about saving lives. >> reporter: with 85 additional p-tech schools planned around the country, educators hope to save thousands more lives. brooklyn, new york. >> more time in the classroom. >>> there's a big change announced today in youth soccer t

ibm. i'm not questioning his ability to be a good teaaher in that field. what he doesn't have is and i think that one of the tricky things about running a college or a university is every discipline does things differently. when we have a search and i've been on the presidential search, the biggest problem we have is for people in fields like mine, history, to uuderstand whattwe're seeing when we see a biochemistry cv and vice versa. it's hard to know what the rankg order of authors means, it's hard to know what the number of publications means whether it is a good thing or a bad thing to have written a book. in some fields like mine we write books in order to show the research that we've discovered but in other fields books are written only when you've run out of new large committee are now finding ouou through freedom of information act and through other sources that the search committee neer actually had a chance to vet this resumm peter: is ii ossible that the people that are putting t

cory: it is interesting, it seems a common thread in we have facebook, apple, android, ibm all workinglot of natural language products right now. that seems to be key. tremendous amount of sense and that is one of the things that our research allows us to understand which is, which are the capabilities that if we increase them would actually allow organizations to gain more orductivity, captures some the potential from automation. quite frankly, most of the potential in many cases, it doesn't come from reduction in the cost of labor, it comes from other benefits, such as increasing quality, throughput and the numerator of the productivity equation. cory: cool study. global stocks surge with a partnership with uber. and virtual reality gets a boost from some traditional media heavyweights. more of bloomberg west. ♪ the only way to get better is to challenge yourself, and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointmen

cory: it is interesting, it seems a common thread in we have facebook, apple, android, ibm all workinga lot of natural language products right now. that seems to be key. >> and makes a tremendous amount of sense and that is one of the things that our research allows us to understand which is, which are the capabilities that if we increase them would actually allow organizations to gain more productivity, captures some or the potential from automation. quite frankly, most of the potential in many cases, it doesn't come from reduction in the cost of labor, it comes from other benefits, such as increasing quality, throughput and the numerator of the productivity equation. cory: cool study. coming up, global stocks surge with a partnership with uber. and virtual reality gets a boost from some traditional media heavyweights. more on bloomberg west. ♪ gie: malaysia's economy expanded slowly as product consumption eased. forecasts.economist made to wait for victory in myanmar. are two seats short of an overall majority in parliament. the army has been in control of myanmar for more than five

he said, when i came to a ibm, i thought culture was important.n i left, i felt culture was the only thing that was important. charlie: why does it take people so long to learn it? meg: because you think other things can make a difference, but in the end when you run these big scale operations, people on the front lines, the salesperson in new york for the server business has to know what to do, has to know what the ethics and the value and the ethos of a company is. it cannot be a command and control environment. people have to know what to do on the front lines. it's through the culture. charlie: what did you learn from steve jobs at apple? meg: so, steve jobs may well be the genius in business of my generation. this guy was amazing creative. and the ability to invent categories. charlie: near bankrupt and now the largest company in the world. meg: it is amazing. it is the biggest turnaround i have ever seen in my career. and they continue to amaze. kudos to tim cook to continue that legacy. stevenot easy to follow jobs. charlie: why was it a mi

ibm told the "new york times" holding this characterizes ibm's initiatives in china."here to help the it industry. working with the ibm is using the technology to build the own industry to dependent on american products. cisco and microsoft also sharing technology. seen as a major business boom for them to make more money. there is this ongoing debate. stuart: how much do you give them to get in? >> that's right. stuart: more bad news for people that were using the cheat on your wife website. hackers are extorting some of the sites former users. here is the video of the day. robots walking on all fours. they are riding motorcycles to boot. meet the moto box. a specially designed robot by yamaha. they test bikes before humans get on them. no robot ribbon motorcycles on the road anytime soon. look at that. ♪ but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another w