tomorrow, let's get to jon fortt on what to expect. jon? >> we're looking for revenues around $8.15 billion, eps of $9.65. but one of the numbers that the street will look at is cost per click. that took an 8% dive by surprise. it's one of the reasons why the earnings was is surprise. they are looking to see what the trend is now. google's never missed two quarters in a row so a lot of people are expecting good numbers. also want to hear as much of what they have to say. it's $13 billion ands has been losing seem in a number of areas. that's what we're looking for. >> all right. and jon, stay right there. we've got the expectations that we are looking for but we also want to look at what the analysts are tracking here, analyst herman long along with david, principal of gba research. good to see you. thank you for joining us. your positive on the stock going into the numbers. >> last quarter, cpc hiccup was people didn't expect that. now you do expect some sort of seasonal cpc decline from that standpoint and top line expectations are not as

that can hurt the brand. >> john carney, jon fortt, thanks very much.ead we're going to update the market action on this very busy day. and the metals getting clobbered today. we'll go live to the nymex for the closing prices. >> and a rare and extraordinary interview today with eddie lampert on cnbc. he said big box retailers have to adapt or die. but is he following his own advice when it comes to his sears franchise? and which big retailers are adapting? which ones are dying out? some opinions in two minutes. carfirmation. only hertz gives you a carfirmation. hey, this is challenger. i'll be waiting for you in stall 5. it confirms your reservation and the location your car is in, the moment you land. it's just another way you'll be traveling at the speed of hertz. imax now showing on the big board. >>> welcome back to "power lunch." let's reset the markets. that stock selloff sticking around. check out all the major averages down into the red. nasdaq having its worst day in 2012. most notably take a look at the vix. up 11.5% to 17.5. a level we haven

i'm jon fortt. hey, heard any updates on the game? i think it's final seconds, ohh, shoots a three, game over. so two seconds ago... hey mr. and mrs. harris, where's kevin? say hi kevin. mom, put me down. put...the phone...down. hey guys. did you hear... the choys had their baby? so 29 seconds ago. well we should get them a gift. [ choys ] thanks for the gift! [ amy and rob ] you're welcome! you're welcome! [ male announcer ] get it fast with at&t. the nation's largest 4g network. covering 2000 more 4g cities and towns than verizon. at&t. ♪ on december 21st polar shifts will reverse the earth's gravitational pull and hurtle us all into space. which would render retirement planning unnecessary. but say the sun rises on december 22nd, and you still need to retire. td ameritrade's investment consultants can help you build a plan that fits your life. we'll even throw in up to $600 when you open a new account or roll over an old 401(k). so who's in control now, mayans? has been because of the teachers and the education that i had. they're

we have jon fortt standing by? all right. so this is a number we're going to keep watching very carefully here. i don't know if they have a hold on the shares of intel because they don't seem -- there it is. it is moving lower. it's still trading even as those numbers are released. we'll be talking to stacy smith about that to see what kind of pc sales growth they have. here's jon fortt with some of the other numbers that they have. what have you got? >> guidance is a little better than the street had expected. the street was looking for a guide in q2 of 13.43 billion. intel is guiding to 13.6 plus or minus $500 million. 13.6 midpoint. also, gross margin, 62% and 63% nongap. that's about the midpoint where they guided for q1 as well. that looks like good news as well and r and d plus mg and a spending in line with what is -- as far as i can see, wall street would expect. overall this looks good. i want to dig through and look at the pc market overall. a guide just as strong as the results is what i'm seeing, bill. >> they are

our jon fortt is in silicon valley with the details. jon. >> hey, kayla. the question is also is the plan enough. first let's go over the pieces we heard already. letting 10,000 employees go mostly from the chemical and low end display. he's focusing on turning around the tv business. it's a big money loser right now. he's targeting margins for the business around 5% or 6% in 2014. he plans to leave the entertainment and financial divisions alone for the most part. the troubled electronicis business he'll focus on three core areas, gaming, imaging and mobile. what struck me about this is that it's not a crisis reorganize. this is nothing like the classic scorched earth approach steve jobs took to save apple nearly 15 years ago when he slashed down to a basic core. this isn't even on the scale of cisco. they laid off twice the percentage of workers that sony is here. the question for investors is this, do you believe sony can hold off silicon valley long enough to save all of today's core businesses? or do you believe that in the next three years silicon va

>> are you asking jon narnlgia on jon fortt jon fortt. i didn't really think about facebook when i looked at this. what google was saying had a lot to do with the dilution that they expect from the stock-based compensation. this is about their internal needs, not so much about what's outward facing. google seems to know that their investors won't like this very much. >> jon, more updates from you a little bit later on in the show. meantime, do want to go on because there's a lot of after-hours action. coin star moving higher nicely in the after-hours session after raising its first quarter and full-year guidance. it says that it experienced increased consumer demand for its red box services. take a look at the nice pop there in the after-hours session. in fact, interestingly a noted short seller this morning on "squawk box" talked about coin star. take a look. >> dvds as a percent are now beginning to do what vhs cassettes did ten years ago. inexorably you reach a tipping point whereby dvds then are supplanted by streaming. >> right. >> a

i'm jon fortt. hey, heard any updates on the game? i think it's final seconds, ohh, shoots a three, game over. so two seconds ago... hey mr. and mrs. harris, where's kevin? say hi kevin. mom, put me down. put...the phone...down. hey guys. did you hear... the choys had their baby? so 29 seconds ago. well we should get them a gift. [ choys ] thanks for the gift! [ amy and rob ] you're welcome! you're welcome! [ male announcer ] get it fast with at&t. the nation's largest 4g network. covering 2000 more 4g cities and towns than verizon. at&t. ♪ guys. come here, come here. [ telephone ringing ] i'm calling my old dealership. [ man ] may ford. hi, yeah. do you guys have any crossovers that offer better highway fuel economy than the chevy equinox? no, sorry, sir. we don't. oh, well, that's too bad. [ man ] kyle, is that you? [ laughs ] [ man ] still here, kyle. [ male announcer ] visit your local chevy dealer today. right now, very well qualified lessees can get a 2012 equinox ls for around $229 a month. you walk into a conventional mattress

let's go to jon fortt who is standing by. have you got anything for us? >> i sure do, bill. a plethora. guidance is going to be revised lower. that's a full year. but let's go through segment by segment. the windows division did better than some analysts i thought, trending $4.62 billion in revenue. server and tools, 4.57. business division, 5.81. entertainment division, 1.862. that's lower than most people i had seen expected. the margins, as we were talking about an hour ago, are lower. so entertainment coming in low actually benefits the bottom line a bit online at $707 million which is pretty strong as well. overall, probably the thing that stands out is that the windows division did a little better than the optimistic analysts expected. >> the two analysts from gba research, david, as i said, the stock is reacting to the upside. do you like what you're hearing in a cursory sense right now? >> it seems like the corporate sector is stronger than people thought and with respect for margin expansion as we go to the second half of 2012. >> when the conference call starts, wh

we begin with jon fortt on amazon. jon, what do investors need to know about this one? they're looking for $12.9 billion. eps amazon actually guided to $50 million operating loss at the midpoint. so some optimism there. for guidance the street wants $12.8 billion q-2 and 20 cents eps. given amazon said building distribution centers more aggressively and what seemed to be strong kindle numbers we talked about earlier, that could be a little aggressive. we'll see what happens. jane. >> jon, the street is looking for 14% top line growth at starbucks just shy of $3.1 billion. 15% bottom line growth, 39 cents a share. one of the growth drivers, these k-cups. goldman sachs says over the last four weeks sales grew 9% giving them a new high market share of 16%. and in january they started selling blond. and buckingham says in grocery stores more than 70% of the coffee sold is light or medium roast. and we have to see with price margins. we're going to get all those answers when the cfo of starbucks joins us on "closing bell." julia, over to you. >> thanks so much, jane. zynga e

our very own jon fortt is here with more on the samsung story and whether or not apple should maybe bever it shoulder, jon. >> yeah, mandy. more like glancing to its side. samsung's a giant. here's how it compares to hp. a third more revenue and triple the profit. and the reason why it wins the profit game, phones. let's take a look at samsung and two other big names in phones, nokia and apple. in q-1 samsung took the title of biggest phone maker awa from nokia. samsung outshipped nokia by more than 10 million units. both of them outshipped apple. but apple charges more and profits more on every phone as we see here. nokia big loss of $1.5 billion. samsung, thriving smartphone business its phones led by smartphones contributed 73% of samsung's operating profit in the quarter. apple, though, its profit more than twice samsung's. >> wow. thanks very much for that, jon. i think it's really interesting this morning when s&p decided to downgrade nokia and gave it a negative outlook, i tweeted it out and i got so many people replying saying hello this is so late to the party. this should hav

i'm jon fortt with an update on the patent battle between yahoo! and facebook. yahoo! filed two additional patent claims against facebook. let me give you the statement. today yahoo! filed additional claims against facebook in u.s. district court in san jose related to two additional patents. today's filing underscores a breadth of facebook's intellectual property. i'll stop there. yahoo! also says the claims facebook has made against yahoo! ten patent violation claims, are invalid stating that for one, facebook didn't come up with many of these patents itself, and for another, some of the patents relate to features of yahoo!'s products. maybe facebook or someone there was digging under the hood and knew something they didn't know about facebook's plans. this battle will continue long into the future. we saw facebook get some patents from microsoft. we know they got those for battle. >> jon, thank you very much. sotherby's is set to auction off one of the most iconic images in modern art. "the scream" by edvard munch, who's who of wall street collectors and billionaire

we begin with jon fortt and alex wu and who is an owner of the shares. jon, kick us off. are you expecting? >> wall street is looking for just shy of $30 billion in revenue. as sean mentioned earlier, he's looking at 33% gross margins. the apple guided to less than that but really this comes down to iphone and ipad performance, mostly iphone. the question is, did overseas iphone sales make up for what we see as a shortfall with at&t and verizon. 4.3 million iphones sold. a little bit of tension here, apple's growth trajectory has been and what been and what apple expects it to be. we'll see. maria? >> check out this stat. rilr since the close on april 9th, market value down nearly $71 billion. warranted? >> no, i don't think so, maria. warranted?en the >> no, i don't think so, maria. i think when the computers get somehed selling because some number doesn't miss a target, going to wake up and look at where this is selling relative to other big consumer product companies, like m people are going to wake up and look at where this is selling relative to other big consumer pr

what are we missing here, jon fortt? >> what we are missing is guidance. the street was hoping for $4.8 billion and 90 cents eps. qualcomm has got mid-points of 4.65 billion and 86 cents eps. i wanted to give you those. >> that's the midpoint, though. it was talking about midpoint. >> and it could set the tone for tomorrow, right? >> this is a very unforgiving take. it's not a terrible number by kwa qualcomm and in a better environment it would not be dropping to 4%. >> we saw it yesterday, ibm sells off today. >> this is a tough take. they are not giving anybody breaks. >> we are still waiting for american express, young brands, and ebay. we'll see how much pay pal has contributed to their business. it's continuing to grow and they have a big initiative in china now. >> card spending. that's a good indication of consumer health, consumer spending in general. that's going to be the key number today. >> okay. >> thank you, bob. let's look at some of the business headlines. light sweet crude oil fell. the latest report on stockpiles showed a fourth consecuti

. >>> i'm jon fortt and this is tech check. makeup is generally pretty low tech.r sephora is trying a 20-store pile light program using iphones and ipads. >> so in the stores we basically have built a mobile iphone app that allows you to be a tool that bridges the shopping experience both online and in store and really change how you shop in the store. >> reporter: customers can use an ipad as a mirror snow white style. >> now you are going to watch the steps. >> reporter: and salespeople use ipod touches to checkers out. seem familiar? apple stores pioneered mobile preordering and checkout. it gets loyal customers in and out faster and frees up salespeople to help more customers. mobile checkout is not just for retail giants. pay pal recently launched pay pal technology to bring small business into the mobile age. that's your tech check. i'm jon fortt. w this at&t 4g network is fast. hey, heard any updates on the game? i think it's final seconds, ohh, shoots a three, game over. so two seconds ago... hey mr. and mrs. harris, where's kevin? say hi kevin. mom, put

jon fortt, you've been to instagram's headquarters. to kayla's point about ten employees.now wealthy beyond their wildest dreams overnight. i mean, this deal to some now if you look at the twitterverse suggesting this is the sign of the ultimate bubble. do you agree or disagree? >> no. it's not. i did spend time there at the time when i was there they had maybe half a dozen people. spent about half an hour sitting down with kevin. he's really interesting. you've got to keep in mind they've grown to 30 million users very quickly. in december they were at 15 million. so there's this almost parabolic growth going on. kevin is extremely focused. a few interesting things about him, just to let you know, he's from boston. he graduated from high school in 2002. he's around the same age as zuckerberg. his mom worked for monster growing up. so his parents worked for start-ups. he was thinking deeply about this idea and what made it grow. he told me that it was focused on the speed of uploading photos. focusing on the beauty of the product. and focusing on their ability to post to m

jon fortt is our apple watcher. he's looking ahead to today's numbers amid some rather ominous signs, jon. >> let me clarify. apple is still growing like crazy. more than enough to justify the multiple where it's trading now using traditional methods. wall street's expectations have gone sky high. there's the possibility the actual results could disappoint. the whispered number is 33 million iphones. based on numbers we've seen from at&t and verizon that's going to be very hard to hit. 28 to 30 is more realist you can. ipads, street wants 20 million. tough to hit. new ipad had two weeks of sales in the march quarter. 10 or 11 might be more realistic. by the way, it would be more than 100% year over year growth. maces are expected to be relatively slow. 4 million units. apple hasn't refreshed the line-up in a while. word to the wise, apple is going to report its cash reserves have zoomed past $100 billion. probably close to $110 billion. this could be a repeat of q-3 where the street gets spooked by one quarter and lo

jon fortt is at the courthouse in san francisco with the latest on this high stakes battle between two tech titans. jon. >> that's right, tyler. oracle's claiming that the google android operating system in smartphones and other devices uses java in ways it shouldn't. the question is will a jury agree with that? if so, how much will google have to pay to oracle? i was upstairs a few moments ago in the courtroom. very interesting going through jury selection naming off witnesses including larry ellison, larry paige, one of the fun things i think in jury selection is they asked the jurors have you heard of any of these people and if so, what do you think of them? so you kind of get the pulse. it turns out three or four people of the 18 had heard of larry ellison. nobody heard of eric smid or larry paige or scott mckneelly. litting surprising. anyway, this android operating system particularly important to google at this point because mobile is beginning to effect earnings. we saw that last week as costs per click were down in part because mobile isn't yet driving the same kind of revenue

jon fortt with more on that in a moment. apple and priceline here importantly both hitting 52-week highs. apple despite a downgrade from btig. let's link in with the trading floors. bob pisani at the nyse. courtney reagan tracking oils dive at the nymex. bob, let's kick off with you. >> thank you, simon, good to see you as always. 5-to-1 declining advancing stocks. that hasn't changed, but what has changed is major indices. we're still on the downside. we were at our lows just around the open that you can see right there. and a little little before 11:00 what would have been the european close. since about noon we've really come off our lows rather noticeably here. i think one factor that may have been -- might have played a part here is the dollar. we had an interesting drop in the dollar around noon. that tends to help commodity based stocks. that's what i'm talking about. this is an intraday chart. didn't hear much from the currency desk about what was happening there. remember something, europe's been closed since wednes

>> all right, jon fortt, thank you very much. of course, yahoo! not the only company struggling to turn itself around. so is best buy. today the electronics retailer announcing its ceo brian dunn is resigning after three years at the helm. best buy shares, new 52-week low at 21.61. the stock has lost almost half its value over the past three years. i had a chance to interview dunn about six months ago as part of our original cnbc documentary on the company. i asked him at that time what worried him the most. >> of course there are things i worry about as ceo. i worry about economic backslide. i worry about things like double dips and all those things. i get paid to worry about those things. but what i really focus on is how do we make sure we're staying relevant with our customers, that we have our balance sheet in a position so that we can weather any storm and we stay on the long march we've been on. >> today that long march ended for mr. dunn. let's talk more about best buy and its future. joining me on the phone is r. h r.j.hottovy. good to he

jon fortt with the latest on the call. >> that's right. amazon doing quite well. expecting to come in at 12.9 and came in at 13.82, interesting quality issues that i turned up digging through the numbers from equity method investment activity. they were positive, $89 million. a year ago, they were negative $17 million. because their margins are so thin and that gets included in the eps number that we go with, that's actually a significant contributor along with their -- their great performance sales-wise in north america to this eps beat. without that 89 million, they would be significantly lower in eps. their cost of the total operational costs came in at 12.91, 12.92, so if they hadn't done better in sales and hadn't had that equity method investment activity they wouldn't have had positive eps and they did so that's why their stock is up after hours. >> that's one of the reasons it's up. the real reason it's up, as significantly as it is, is operating margins. i mean, it doesn't sound like a big number, but their operating margins came in at 1.5% which is proba

ibm shares heavily traded as well jon fortt is joining me. let's get right to apple. why is there so much fear. >> i any analysts low ball where apple is going. this time the estimates on iphones, ipads, have gotten aggressive in their estimates. they are looking for well over 30 million iphones, 28 million will be in line with what apple's growth rate has been. if you like at verizon and at&t results, 28 million would make sense. we'll see what apple does. if apple disappoints, that doesn't mean that growth is slowing down. it could mean that wall street's targets are off track. >> i love the graphic that you put up recently, bob, that was the revenue graph for iphone, ipad. it really is the majority iphone that dominates this company. >> remember. >> couldn't it go from 500 to 600. it had a huge run. even with the at&t i think it would take a real mess for apple to have a selloff. >> herb, what do you make of today's ibm's news? i wonder what augusta thinks of increasing the dividend? >> i have to tell you something, this is not a surprise. it shouldn't be a surpris

joining us peter and cnbc's jon fortt. both of you feel free throw to use any type of apple, like slicing or the core or apple cider or peeling back or -- can you do that, jon fortt, in -- do you need it in your script or can you just -- >> no, i can make yu sick with -- they really polished up this quarter nicely for us. at the core it was beautiful. not a single bad apple. >> peter, any worms you saw crawling around in the results? we can do it forever. right? we do it every quarter. it's custom-made for us. >> it just amazes us. they crushed numbers. the biggest high least was china. that number was spectacular for iphones. no one thought it could be that big. certainly we didn't. they beat our most bullish chinese estimate by 3 million units. >> if you look at it. it's here. you add up it, multiply it times the number. it's a huge number. >> there are around 4 million that can afford it. that's a lot more than here. it ooh's big market and they've eclipsed us, which is staggering how quickly that's happened. >> but the

our jon fortt is live. good morning. >> good morning. tough for apple to do its usually blowout. the ipad sales may have out paced reality. let's start with iphone. last week they activated 3.12. at&t activated a whopping 7.6 million units in q4 and said they did just 4.3 million that's down 43%. what does that tell us about apple? let's assume apple did better. international has been growing as a share of iphone sales and let's assume iphone sales are down only 19%, which is a very strong performance. that would put apple around 30 million units. a lot of analysts are at 33 or higher. so what are the numbers to watch? on iphone 33 million apple will probably have to make that for wall street to be happy and that will be tough. ipad, the street was 13 million that. could be a stretch. international demand always slows down before the launch. finally, four million units. apple has not updated the lineup in a long time. back to you. >> thank you very much, jon fortt. you've got a busy night ahead as well. jon fortt back at hq. the dow hold

jon fortt is outside of his headquarters in sunnyvale, california. how much would you say these cuts are going to help yahoo!'s bottom line? >> reporter: well, interesting question, mere yeah. i did some digging for some numbers. look at yahoo! over six years before and after the cuts. take a look at the layoff record. back at the end of 2007, yahoo! had 14,300 employees, similar today. they did nearly half a dozen rounds of layoffs of 4,000 employees and yet at the end of last year they had 4,100 employees, just 200 fewer. yahoo! went down in sales, operating was up slightly. some question based on how effective these layoffs will be. >> what is the next big milestone we should be watching? >> reporter: the end of june is when yahoo! has its shareholder meeting. that's when the proxy fight should come to a head. that's important because, one, it will determine what yahoo! is worth and probably only after that will yahoo! be able to spin off the asian assets. that's what investors are looking at as far as unlikely data. >> meanwhile, signing on to ya

joining us managing director at rbc capital markets and our own jon fortt. start with you. there is a facebook angle to microsoft's future, isn't there? >> a little bit of a facebook angle. microsoft's got a 1.6% stake in facebook. made that investment in 2007. people thought they were crazy, but it's turned out quite well. i wouldn't expect the benefit from microsoft to come much on the consumer side. yahoo! has led pack online as far as integrating with facebook and hasn't helped their engagement much. microsoft might be able to learn some things about social from facebook and implement those on the enterprise side to improve share point. you've got folks like jive and vmware trying to attack them there. >> rob, you are a fan of the stock. you have a buy rating on it. you have a price target of i think 34, you say you may raise it. let's look at one of the businesses that's very interesting here. and that is sort of their core. and that is operating systems. there's a lot of upgrading going onto windows 7 right now and to -- and then eventually to windows

we have bob pisani at the nyse and jon fortt back at hq in new jersey. look at the earnings, look at what we had yesterday. on the surface it looked like we would have a down day today. >> we should have had a down day. 45 companies reported today 18 miss, 40% of the companies reporting miss. that's unheard of it. we've been doing 80% have been beating expectations. 20% less than that have been missing. this was a very strange day. we had mr. bernanke out assuring the world that he would act if things fell apart. that's the primary reason that we're moving up and then some people complain about the housing. march sales were better than expected overall. this is the kind of day, put up the s&p futures. 1390 at 1:30 and all of a sudden that was a new high for the day and all of a sudden, boom, there is 1:30 when we moved up from new highs. >> i think we've got to point out again decoupling from europe. we did not have a very good europe close. so this was a big u.s. quantitative easing induced rally? >> yes. that's the main package. speaking of the dow, di

jon fortt is standing by with more of what the street is looking for. bill? >> it's one where you don't want to see things falling apart. wall street wants $17.2 billion revenue. based on intel's results on tuesday, we know it's solid which is good for microsoft's division. we also know developed market pc spending is still not good. so look for cost controls and entertainment division to have the biggest impact on the margins. yahoo! suggests online results will be decent, too. but that's just 5% of revenue, bill. >> i know when you and i spoke with the cfo of intel, you were specifically asking some questions which i guess would help pertain to windows 8 and, you know, to what the outlook might be for microsoft. what do you get from that and what are your expectations tonight? >> i think anything we hear around windows 8, specifics around the release, marketing, are going to be important because that's what investors are betting on when they are betting on the stocks nowadays. not what is happening right now, bill. >> and at this point, microsoft has become

jon fortt. >> i've been publishing this all day. on the one hand.es, it appears that these publishers got together and discussed how to alter pricing which is typically illegal because they are supposed to be competitors. on the other hand when you look at the e-book market before which amazon dominated and now after apple and barnes & noble have a significant share in the e-book overall has grown considerably. putting out figures just for january showing that e-books are up over last year, just comparing january and now comprise more than 25% of the overall book market from just up over 19% the year before. as you mentioned, amazon has said that indeed this is a victory for kindle owners because they expect to be able to lower the prices of e-books based on the fact that some of the publishers have already settled the case. it will be interesting to see if apple buckles and some people are siding with apple. it's a head scratcher. the justice department is getting involved in the very fast growing e-book market. >>> coming up on the "closing bell,"

jon fortt is watching these worlds collide. hey, jon. >> hey, tyler.have the new flagship windows phone. no exaggeration to say it might be the best last chance for nokia and microsoft in the smartphone market. north america is the leading indicator and that's where this is launching as goes north america, so goes the mashlgt. and this market, while it's not saturated is getting there. kom score said this week that more than 104 million people in the u.s. own smartphones in the three months that ended in february. half had android, another 30% has iphones and those two platforms were gaining share while rimm, microsoft at 4% and shrinking decline. just as daunting for nokia, people mostly like the android and ils smartphones they have. a j.d. power survey last month had the iphone tops in satisfaction followed by htc and samsung. i've had this for a few days and can point out a couple challenges that nokia's going to have. compared to the iphone 4 the screen isn't that good. one obvious metrics in the store, the best windows device doesn't measure up t

jon fortt's been working on apple's rise since the minute the numbers came out last night. u hear -- you know how wall street is, jon, they're looking at the next quarter. what are you hearing? >> the next quarter on the call tim cook said it's going to be heavy macs and ipad. on the mac we're expecting new macs to come out redesigned, probably. more like the mac book air. good time to use flash. flash is cheap. we've seen that hurt sandisk. ipads are supply constrained. they're selling those as fast as they can make them. expect a big ipad quarter. >> the developers conference is going to be june 11th. what are you looking for from that particular event? >> well, the developer conference usually isn't a time for apple to announce new hardware. they haven't done that recently. they've taken out time to talk about the mac os and more importantly ios 6. that's going to be the new operating software for ipads, iphones and that kind of family of devices. i also expect an update to icloud. i was talking to an apple executive not too long ago who was saying now the application tea

let's go to jon fortt. he's peeling back the onion. what drove this number?ooks like north america. amazon guided, as i was saying earlier, to a midpoint of 192. the high end of the income operating income that they guided to was 100. so that's part of what happened there. media particularly strong. people were looking for around 4.5, 4.4 billion in media revenue. they returned 4.7. also egm, electronics, another general merchandise was around 8 billion. other people i saw were looking in the $7 billion level. north korea and media international was particularly strong to me, maria. >> and what are they saying in terms of guidance? you know, the last quarter guidance was an issue and sent the stock down and that's what happened to the quarter before as well? >> yeah. net sales expected to be between 11.9 and $13.3 billion. the street was looking for around 12.82. so they are guiding higher as far as net sales are concerned. operating income, again, they are being conservative on that. guiding to between a loss of 260 million and a gain of 40 million. the stre

jon fortt joins us from silicon valley. jon, this power grab, are we going to see more of this in tech? >> quite possibly, julia. just to get back to the stock for a second, it's given up all the week's gains with this 3.7% drop this morning. its biggest selloff since last quarter. and they looked more ho hum the more you dig into it. eps were strong but benefitted from an unusually low tax rate and unusually slow pace of hiring in the quarter. one of the things that has a lot of attention is google's three-class stock structure. they gave themselves voting control. they say they don't want investors to short thinking. allows to award employees with stock. this is probably a sign of things to come. you know who else has founder control arrangements? facebook's mark zuckerberg. linkedin's reed hoffman has a catch of pre-ipo stocks that will see his voting control increase over time. groupon's similar. and zynga's mark pin kas has strong majority voting power. if yahoo! had total voting control today and one could even argue i

jon fortt is in silicon valley with the fallout. jon, what's going on here? >> yeah, julia. it's the glitch with the lumia 900. we knew nokia's older phones were on a burning platform thanks to the infamous memo. but this is a stumble right out of the gate for the phone suppose today save nokia. i've had it for a few days and the screen is not as good as an iphone or galaxy. there aren't as many apps. the argument it was making is it's a polished hassle-free phone that works. this glitch blows a hole in that argument right off the bat. nokia is offering $100 discount off the owners' phone bills. but there's always a risk that they'll just return the phones. we've also got nokia announcing they have a hand set operating margin going to be negative 3%. it was expected to be about break even. that's bad news also. but, again, this lumia problem going forward is the bigger deal, julia. >> have to see how many of those people return the phones. now onto apple. the justice department today slapping apple with a lawsuit over price fixing e-books. attorney general eric holder speaki

jon fortt outside yahoo's headquarters for us. >>> all with recent management shakeups, here to talkhat it means for the future of these companies is jeff sonnenfeld. thanks for joining us. >> thanks, scott. nice to join you. >> the reason i wanted you on today is because there's so much talk about these new faces, these new ceos. today with best buy, with brian dunn leaving, we talked with an analyst who said we have to find the right guy. it got us thinking, is it really a right guy issue? if you look deep down at some of these companies, whether it's best buy, their problem may not be who the ceo is. amazon in motion, they're not apple. yahoo's problems, no social, no mobile, no cloud. can thompson really fix those issues? how much hep should be put on them? >> i agree with you in part with that question, that's a great question, is that the search, the media on the board that analysts have, kind of overstate things. they're always looking for a savior from another planet, from another industry, from another firm, but the individual still matters who is at the helm. at this word o

jon fortt is in silicon valley with the details. jon. >> hey, tyler. yeah, zte really killing nokia at the low end. nokia ceo steven elop talked on the call about how low end android phones are beginning to encroach on the stronghold. in particular in china nokia's being hurt by some of the same market dynamics that are helping apple specifically the phone business in china is moving from a reseller driven model to a carrier driven model with subsidies. that means like in the u.s. customer ks get more expensive phones when they sign up for a data plan so they don't have to settle for a cheap nokia. they can get android or some can get an iphone. a $1.2 billion lost warned last week. nokia's head of sales is out. the new phones are doing okay in the u.s., but this low end problem is in some ways worse than nokia's lack of a hit high end phone because it threatens to devastate nokia's core and business model. >> the struggles continue. meanwhile, apple, google, intel and four other big tech companies apparently facing an anti-trust lawsuit claiming they

and jon fortt has the details live in san jose. jon. >> yeah. that's right, tyler. this deal is really a lifeline for barnes & noble. you can see how investors have reacted. it also provides some opportunities for microsoft getting into this business. but let's take a look at what this really provides for both companies. first of all, barnes & noble and the nook not out of the woods yet. according to financial filings, the nook operation is part of barnes & noble is part of a $102 million loss that's just last quarter alone. again, this is a $300 million investment. so that gets you through a few quarters. but several challenges including the fact that the agency model where in e books is a think of the past, pretty much. amazon's going to be steeply discounting e books. that will make it harder for the nook to make money. for microsoft, they get more than just the nook. they get an investment in the college business. the nook has a 28% share of e-readers, but barnes & noble college has almost half of barnes & noble's total stores. it serves more than 4.6 million fa

jon fortt has been monitoring the courtroom. he has the very latest on the high-stakes battle. hi, jon. >> yeah. bit of a tough day for larry page. trial over breeched copyrights and patents. he took a cab to the courthouse by himself. that's in contrast to larry ellison who showed up in a lexus yesterday with a small sbrourj. anyway, once he got out of the cab, the trouble started the phase of the day in this trial, i don't recall, he said he didn't recall a lot of things whether an important document was used at an android meeting where they talked about java. whether andy reuben sent him certain e-mails. didn't recall whether he said things about copies apis and even the court in this case. even the judge said he doesn't recall a lot of things. page might not be done if oracle can prove the java document was used at an executive meeting, they can call page back to ask about it. he did contradict his deposition a couple times, ellison has a lot more courtroom practice. he took s.a.p. to court a few months ago. >> jon, thank you very much. internet companies taking a page from

. >>> jon fortt, you have some breaking news on the oracle trial, no? >> that's right.ison just got off the stand. he went through quite a bit of testimony. mostly about java and oracle's dealings with it. google is trying to make the case java is supposed to be free. oracle came in behind and decided to start charging for something it hasn't charged for before. larry ellison's mission on the stand was to stay that's not the case. google is the only company dealing with java in the way that it is and not taking the license. ellison tried to make the point he's always thought -- he had always thought he would be able to convince google to take a license. but google, who's defending here, did manage to sort of make the case that oracle and ellison tried to make their own phone and tried to work with google first. when that didn't work, they then decided to sue. that's where we are right now. back to you. >> jon, thanks very much. >>> by the way, it's worth remembering that in march of 1997 larry ellison said he was putting together a consortium investors to buy the strugg

nbc's own jon fortt joining us with breaking news and more. good evening, john. >> evening, larry.ft has strong business spending. gave the numbers a boost. the company also lowered the full-year operating expense guidance and windows 8 is on schedule for intel and on-base chips meaning apple's ipad will have more challengers by the end of the year. and in other news, housing in phoenix is starting to find buyers. diana olick has that story. >> reporter: well, jon, the rebirth of the phoenix housing market is all about builders and bidders. the builders out here 40 miles outside of phoenix is taking advantage of the zero money down usda rural loan program. they just started opening up the model again. they're seeing folks coming through and they just permitted to build two new houses. back in phoenix, the story is about foreclosures and investors are rushing in to buy them up. we spoke with colony capital who expects to spend over $1 billion this year buying foreclosed properties to rent. they say they could see returns of up to 25%. jon? >> thanks, diana. >>> an attorney for ratin

jon fortt maybe has some answers. >> reporter: right across the golden gate bridge from san francisco, california, a number of mobile executives here from some of the most influential companies. google, linkedin, at&t, just to name a few i talked to. one of the things they're talking about is who's likely to make inroads in mobile. microsoft certainly has a big opportunity here. rim's misfortune is their opportunity. let's take a look at numbers of smartphone share in the u.s. right now. what's been happening. three month average from comscore. rim is down two points. google and apple both up. right now they appear to be gaining share. the issue overall is that blackberry is losing share both in the consumer and the enterprise markets. they've been losing share on stale hardware and a stale platform. they're trying to fix that later this year. now, a survey from an enterprise organization found that 30% of blackberry users in the enterprise plan to ditch that platform in the next year. this is a real issue. two-thirds, though, of rim's installed base is consumer. that's why you see bo

jon fortt and julia boorstin also with us to talk about those two stocks and more. start with you. you did blog about netflix this morning. what specifically are you going to be watching for this stock because it's had a very tough year? >> sure. the number we're going to look for remedially today is domestic streaming subscribers. how many people are paying for netflix in the u.s. to get an $8 a month web subscription. the company says to expect up to 26 million, the number way higher, you'll see the stock move a bit. >> all right. jon, do you agree? >> i do. i also think the streaming margin contribution is going to be important. it was mentioned last quarter as something that was better than expected. they upped their target suspecting it to grow 100 basis points going forward. are they still that optimistic? i guess we'll see. >> julia, weigh-in. >> absolutely. i think this is the one number that will move the stock today. eps, revenue, those numbers will be secondary. i also think there will be a lot of attention to ceo reed hastings letter to shareholders. he

let's bring in jon fortt with the apple preview. >> let's get town to it.his is really all about iphones. lots of fears apple is going to miss the iphone number which is street has between 30.5 million and 33 million units. i pulled this data. if they just do 28 million units, that won't break this trend line. growth is, in fact, in the right place. wall street's gotten ahead of where their estimate should be. that's what we should be talking about. >> let's bring in now -- >> got to go. >> he's got to go. let's bring in ceo of macrorisk advisers. what do you think we need to see and hear today out of the earnings release and the guidance to get this baby rallying again? >> the expectations are certainly going to be very high. when you have a stock that goes up with the force that it tid, i think retail investors tend to get sucked into the story. it's a great company. it may not be the greatest price. >> i love jon's piece. you were a know you're a little rushed. the point you're making is clear. yes, you we may not make the estimates for iphone sales, but

jon fortt is in san francisco with the story. jon? >> reporter: hey, melissa.ct him to arrive in the next 45 minutes or so. he's scheduled for right at the top of today. opening arguments also will be today. now, the question at the center of this is, a, did goolg infringe on oracle patents and copyrights and b, how much might they have to pay. making the case that google will fully infringe on the int lech wall property when they acquired sun micro systems. what were they doing with that? android, the leading mobile operating system now. google has upwards of 850,000 android devices per day. lots of people expected to testify including scott mcneilly, eric schmidt and larry page. this will be tough for google. there have been e-mails that came to light that will play a role in the trial. tim lindham says we need to negotiate a license for java. oracle says they realize right there there was an yimpblt also, andy rubin said we have technical options. we can do java and make en aeme. that's what google has done. the judge expects at least eight weeks, probably t

jon fortt reporting for us. >> the galaxy phone is coming out may the 3rd.to the iphone? >> yes. >> and in terms of motion -- people love the galaxies in the same way that they love their iphones. >> you wrote that down. >> my list of events. >> everybody should rush to the store on may 3rd , it looks lik. >> i was just saying, it was released. >> bring it in. >> i want to see what it looks like. >>> spanish bonds breaking above 10%. we are just an hour before the european close. let's go to julia live in madrid with more on the story. julia? >> reporter: thanks, melissa. ten basis points wider than current levels. we've seen them come in as the u.s. markets started trading. it certainly raises questions on whether the ecb is bringing it back. jpmorgan says if we see ten-year bonds above 6.5%, but analysts are likely to point out that the new ecb president is far lessen th enthusiastic. they need to get the fiscal house in order and we are not seeing the widespread risk aversion. the benchmark is quite high. sentiment around spain does not help what we got f

jon fortt, thank you. >>> let's look at where we are trading on the apple stock.s a price action that we have on apple over the last couple of days. no, sir necessarily the quite heavy losses. people are questioning whether it's the automaticed trade kicking in or whether it's perhaps more negative that might be happening with the stock. certainly there is a lot of news flow for apple shareholders to get through over the next couple of weeks. let's bring in edward from aci research. he's one of the very few, if not the only person, who has a sell recommendation on apple at the moment. is that correct? >> yes, that's correct. how are you? >> i'm very good. the target that you have is $270. what a lot of people will be focused on is that in two-weeks time, the galaxy 3, the great hope for this year will be in conjunction with the olympic games and will allow athletes to have contact with payment through the 2012 game. how much of a threat is that, do you think, for shareholders in apple at the moment? >> that's really the number one threat for apple shareholders. th

jon fortt joins us from san jose with more. >> good morning. a conference call from japan a couple hours ago and so was i. he was outlining the new vision for the troubled giant. that a look at the stock price and it tell us a good portion of the sorry. most recently, season any has been losing serious money on tvs. he talked about a company in crisis. we don't have the huksry to take our time, he said, we need to face reality and quickly implement the solutions to season any's problems. but for analysts who asked questions after his presentation, the tough and you can was followed by vague plans. said sony doesn't have problems in entertainment or financial arms, he focused on the electronic business. sony will focus on gaming, imaging and mobile, but mobile includes the pc business which sony is keeping. they'll add a focus on medical technology. and here's what i was told earlier this year about what needs to happen with tvs. >> what we need to do is make sure that we're focused on delivering the best experience to our customers through the

jon fortt. >> saying sony is in crisis, but based on the plan, it's a mini crisis. financial divisions are fine. electronics business is the problem. they're laying off or spinning off 10,000 workers. that's 6% of the workforce. percentage-wise, that's half as many as cisco laid off last year. are sony's problems less serious than cisco's were? that's debatesable. second, he'll turn away the tv business. part of that is getting out of the joint business with samsung. third focus on gaming, imaging and mobile, but mobile includes laptops and imaging includes the range of consumer and professional cameras. acknowledges sony can hold share and stay profitable. everything not part of these core areas is subject to getting cut, so maybe no more sony alarm clocks. and finally sony will invest in medical device businesses. when they're behind in, trying to turn around tvs or core camera and gaming businesses. he didn't give a specific time line. so if you believe sony's problem is just execution, this will sounds like a plan. it's a light version of cisco's reorg. but you

jon fortt has more on an interesting deal that we'll truly be talking about for a long time. n. >> we saw hints last week in amazon's earnings. turns out the kindle fire, just thought to be a break-even or even money-losing proposition is already yielding some dividends for amazon. they said that the growth in their north american media business, which helped the revenue out-performance they turned in largely came from the kindle fire. so, you take a look, take a step back. apple sells 12 million ipads in the most recent quarter. amazon really getting traction with the kindle fire. if there's no sense that amazon's actually going to do a lot of kindle work for microsoft's platform, they need to make some kind of side bet to help their ecosystem. barnes & noble definitely needed a partner. they don't have the deep pockets to both invest in the retail business and build up the digital business. $300 million will help them do that, but that will not alone guarantee they will continue to be a player, carl. >> the money's one thing. is the next step this nook application on windows

jon fortt. >> billionaire investor ed by lampert joined cnbc this morning. lampert sharing thoughts on markets and competitors. take a listen. >> i think that a lot of businesses will have profitless prosperity and we've got to adapt and i think that companies like amazon, ebay, they've made -- they've turned this in to a big opportunity and we've got to be able to compete with them, not just walmart, target, et cetera. >> i wonder if an element of that is surprising or surprising to hear it from him. >> well, it was greet see the wizard emerge from behind this curtain. got the great voice. >> yes. >> you know? he speaks with authority. but at least from what the market is taking this morning, he really didn't have much to say about sears holdings. the company that he owns 60% of the. i think the stock is down near 5% this morning. >> maybe intentionally? yeah? >> i don't know about intentionally but, you know, he brings up ebay and amazon. you bet they're sears' lunch and target and in some ways walmart's lunch. look at the performance of sears holdings and