jon fortt, why is the fallout so doggone intense? >> tyler, it's the iphone number and the guidance. the street was looking for something close to 55 million iphones and got 51. that's particularly disappointing since apple actually built up some channel inventory during the quarter, which brings us to the guidance. $43 billion in revenue plus or minus a billion. analysts wanted 46. even with expanding distribution in japan and china, iphone growth appears to have hit a wall and apple seems to be oneer running out of ways to extend existing products. we have the mini the mini retina and the iphone 5c which consumers seem to be taking a pass on. that leaves us looking ahead to new products. it's going to take tens of millions of a new product, watch or tv to really move the needle for a company this size. frankly, even if they announce something tomorrow it will probably take several quarters that ramp that up guys. >> thank you. so what is next for apple's share price? joining us is burt dolman who says apple is headed to $320. on th

jon fortt joins us fresh off the call.e're seeing the stock move lower in the after-hours session, down by 1.8%. >> that's right, melissa. one possible reason for that is the company did say to expect $21 billion in cap, 2014. that's inline what they spent in 2013. but some on the street had expected them to spend about $1 billion less. but in terms of how the business is running, not a lot of dislike here. service revenue, up 4.8%. data revenue, up 16.8%. about inline with how it's been. the net number of people moving off the network. down at a record low for a q4 at 1.11%. all of that is interesting because the postpaid smartphone net ads, the net addition of smartphone customers, really low at 299,000 by historical standards. if you look at the overall smartphone penetration at at&t at about 93%, it's getting pretty high. that kind of explains it and shed some light on what happened with apple yesterday. >> we're seeing the upgrade rate to that point decline, correct, in the most recent quarter at at&t? >> exactly. the

jon fortt, will the hacking ever stop, and you are a tech guy. about being hacked or hacking? >> it will never stop, tyler. i mean, the internet is kind of a wild west location. people can get in and out without you knowing who they are. it's just a matter of being smart enough, finding vulnerabilities. i worry about this stuff. but, look. a lot of times there are ways to mitigate the risk or at least to react fast enough that you don't get hit that hard by the impacts. take this target case, for example. we shopped at target during the period affected, and hey, we just canceled our credit cards, got new numbers. >> my wife had the same thing, got a notice from ste ba citiba saying they might want to look into getting a new card. >> seema, i assume you agree? >> i've got to say, i'm a big user of snapchat and skype. definitely concerning, but at the same time, not too surprising. it seems like every month there's news of a report of a new security breach. i think this just tells us that we need to be smarter and better about our online decisions.

morgan brennan, jon fortt, seema, courtney reagan are all here to help you break down the numbers. morgan, you just got off the phone with the ups cfo. >> in-line with streets. revenues are lower late online shopping surge cost $100 million into the u.s. network to prevent another holiday debacle. >> from where would you go? >> the company is also bullish on europe. keeping an eye on emerging markets. i just spoke to the cfo, the growth story, weaker lira could mean better exporters. they just issued slightly higher guidance. >> all right. morgan, thanks. what's the trade here, josh? >> i don't think this is very difficult. i think you've got a pretty decent support level at the 200-day moving average which is around 90, 91 bucks. i think it's a very, very low risk entry here. if you want to be in this stock, but there are so many other better stories right now. this is really a holiday story. so you probably don't have to rush into it. you can get excited about it later in the summer, early fall. >> jon fortt, the biggest take away from qualcomm was what? >> china better come thro

. >> jon fortt?u, i think it comes down to people would like a correction but they want one for no reason. they don't want the world to be falling apart causing that because then you don't know -- >> i like that they want the correction, they just don't want the reasons for it. >> exactly. it's important to watch apple's earnings tonight but probably more important than the earnings report is the guidance. we're looking for, of course we've got chinese new year coming up which is big for them. also they tend to get a decent amount of revenue from aipac in this coming quarter. so how do they guide based on that? also we saw a lot of social media names punished this morning. coming back a little in the afternoon. faish's facebook's earnings tomorrow will put a lot of numbers out there for people to see how much these types of companies have legs, are they making money? >> we talk a lot about apple because of the size of the company and just to be clear, cnbc's numbers put the estimate at about $14.07 a

earlier this morning our jon fortt spoke with nest ceo tony fadell on a first on broadcast interview davos. obviously it was a long distance interview, i'm here. first thing i asked him about how much of this acquisition was about money, got quite a bit of it $3.2 billion. how much was about time. take a listen. >> when i was spending, you know, 95% of my time working on infrastructure and 5% of my time on product, i felt that it was the wrong mix. especially as fast as the marketing is developing. i wanted to go back and focus on the thing that was the biggest value creation for the company which was the products and the services we create. >> he also talked about employeeiemploye employees and how they reacted to the news that they were getting this big google payday. >> where were we spending our time, building the difference yags for our company. so were we spending it with customer products and building those things and bringing those out as fast as possible or were we just in the background making servers, making, you know, putting in facilities and inf infrastructure. >> we mig

john joins us, president and ceo of buzzfeed and jon fortt joins us this morning.hange and says i have something to say about this deal. critical of this. >> start with google. here's one of the first things that i thought about when i saw the news. many people probably won't remember this. it's an ad that google, motorola put out on the fourth of july right before they launched the motox. the text at the bottom, we knew this would be a challenge. in fact, some people say it couldn't be done. nothing this exciting ever comes easily. they were partly talking about the assembled in the usa strategy. they're employing people in texas to build this phone. less than six months later they sell motorola to a chinese company that has actually demonstrated a commitment to manufacturing in the u.s. they do some business laptops in north carolina. that's the part of this that is kind of mind boggling for me. >> pure arrogance? >> they did this with the nexus cue. they said it was going to be made in the usa. they launched it and then never shipped it. sure, they can afford to

jon fortt joins with more on this.re talking about the interesting story behind nest and how quickly now google is the company who swept in to buy it. >> it was just november, that's right. it seems like it. it's kind of crazy. >> funny how that works. >> $3.2 billion that's a little bit more than google paid for double click and took over the display ad market, the biggest private acquisition google has made. i don't think there's any way to justify it financially. fortunately google doesn't have to because they don't answer to shareholders in the way that most companies do and these days a company like google takes more heat for not spending money than they do for not spending it. >> it's not like they are spending the entire pile on a company that doesn't represent a strategic investment in the future. >> this is something larry page wanted. he feels it will make google better and he had the money so why not. you talk about tony fadell, really interesting guy. he and his wife both worked for apple. both close to ste

for cnbc, i'm jon fortt. >> that's john's report. james, what's your view of tech at the moment? would you be looking to invest? >> the large cap, tech runs in a cycle called a short business cycle where a company starts off as an innovator, a small company. and then starts to have a big boost in sales. eventually, it becomes an emulator, it starts to get a bit large and a bit creaky. then they sort of tend to start to go ex growth at that point. >> and more quickly than it used to, right? >> absolutely. so we're trying to target those smaller companies. where they're in that sort of innovation stage where you can really benefit from a price appreciation. so we've tart geted really thre key areas that benefit from that. so the first one is data. with cloud proliferating this huge data storage centers that are growing and there's great opportunity there. so it could be hard drive manufacturers, drive manufacturers. you've got mobile. i think mobile internet usage is expected to exceed data internet usage this year. that's a great theme. so that is two key areas that we really like

this is jon fortt again. you had your pick of partners.rmer tech ceo. why nbc? >> we wanted to partner with a great news organization. that was our number one goal was to find a partner. and there were several of them that was just very interested in quality journalism. that was the most important thing for both walt and i. and with terry, we talked to a lot of different media investors and terry was the one we felt sort of met our needs in terms of being smart and savvy, especially about hollywood and entertainment. if you go back and look at the pieces i wrote about him at yahoo! they weren't very nice, i'm not sure why he invested. >> i did a very tough interview with terry when he was chairman of yahoo! at one of our conferences. but terry is a very smart guy and we respect him a lot. as far as nbc, i want to say one other thing. even though they're a minority partner, i think that's a key thing. nbc, unlike in this deal at least, unlike most big media companies, right from the get-go understood that this was a different kind of deal a

jon fortt is there. and the t-mobile ceo, john legere. jon? >> john legere just got off the stage.ion fees to those who want to switch to your network. took shots at at&t sprint verizon. first, a big macklemore fan? >> big macklemore. >> you got kicked out of the at&t party. >> i had a pass. i went. i love macklemore. >> were you going to make some mischief? >> i could see why they think i would. but this particular day, all i can tell you is the humanity that surrounded me and escorted me out. i'll give you one fun line. i said to the woman, are you sure that at&t wants to throw me out. and she listened to the mic. and she said i talked to the ceo. she wants you to leave. i'm not sure what that was. clearly, if at&t was angry enough to throw me out then today, they probably would do more than that. >> it seems like maybe they had a whiff of what you were doing because they targeted their $450 offer specifically toward your customers. so you're going to pay $350 worth of early termination fees for people to switch to your network. it's a vote of confidence in your network. but the

it got the attention of jon fortt. he and carol duking it out all day on twitter. with jon and the rest of the panel. did you change your mind? >> what do you think, kelly? >> what's your basic argument? why isn't income inequality a problem? >> i think there are a lot of issues. but it boils down to this. it makes the argument that there is one pie. and somehow, if you have a slice of pie and want to get more of it, it needs to come at the expense of someone else. and in america, that is blatantly untrue. our economy grows by growing the pie. and everyone can do better by having that expanding pie. one of the examples i used in my article was mark zuckerberg. him becoming a billionaire by starting facebook actually helped out a lot of people. he left a job open when he didn't take one somewhere else. he started a company that employed a bunch of people. him creating this massive wealth is not at the expense of anyone else, other than the winklevoss twins. >> jon fortt, what's a problem with that? >> there's a study out income inequality and its affects on society.

many thanks, jon fortt. folks, i have good news. stocks back in rally mode today.106 points, nasdaq added 40. s&p surged 11 points. plunging energy imports. that's from our energy independence. think shale and fracking. that leads to stronger king dollars. that leads to lower inflation and all of that leads to more growth. it's amazing. rebecca patterson was on. we were talking about this whole story as a what if. then it happens in today's report. all stuff that's good for stocks. i don't want to get irrationally exuberant, but nonetheless let me go to my investors, stephanie link of "the street" and tmichal osanian. what do you think, steph. >> if you go back, gdp was running 3%, much better than 1.5, 2% that people are looking for. the big surprise, larry, is on the earnings side, the revenue growth. traes driven by the better economy across the board, manufacturing, consumer, housing, auto continues to be strong. i think that washington kind of getting out of the way will lead to a little bit better confidence. we've seen consumer confidence move up. we haven't

jon fortt, sir, what do you think about the facebook here?have julia talking about the share of mobile ad revenue as a percentage of total. that's been one important metric. active daily users. how they're able to monetize video and instagram. >> yeah. it's really interesting. daily active users add 757 million. their year-over-year growth rate is holding up. monthly active users at 1.23 billion. that's also within that 15 or so percent range up year-over-year. mobile monthly active users at 945 million. the operating margin, nongap at 56%, and the cash balance up to $11.45 billion. just shows that they've got expense discipline as well. so i know julia is going to be on the call and she's the best at digging out all the details as far as mobile growth and as you mentioned their plans to monetize video, but it looks like a pretty well-run company that's still growing gangbusters. >> mobile advertising revenue, that's the key metric people look at, representing approximately 53% of advertising revenue. that's approximately a 23% of advertising

. >> jon fortt, thanks for that.as an investor in this, along with other big firms. light speed ventures. and this company just completed another round of funding in january. josh, you're talking about the internet of things or the internet of everything, as it's known. how would you play this? there's few publicly traded companies that give you a pure play way. they're all indirect. >> we're all going to be playing it by default. this could be the next industrial revolution. we could be looking at billions of devices talking to each other. the mind boggles. the first place to look are interesting semiconductor plays. they're wins already. there's a host of semi names out there. >> and qualcomm and cisco have been pushing this notion. >> i think qualcomm is on the lower price points. but at google, are you kidding me? the technology these guys are investing in. nest is a fantastic company. i own about five of them. but what's interesting about nest is, you think it's creepy how people can see your key strokes and und

. >> jon fortt, what's going on here?only 30 people right now, but how important to the company potentially? >> well, kelly, it is very important i would say. mainly because of what's to come. i was able to speak to a spokesman from the machinist union this morning. he made it pretty clear, this is just a first step. if they win here, they're going to look at other workers in that delaware facility to organize, other workers elsewhere beyond that also. this is all happening with amazon growing really at breakneck speed. amazon's full and part-time workforce more than quadrupled from 2008 to the beginning of last year. if amazon's moving into areas like grocery, well, that's an industry that tends historically to be pretty union heavy. take a look at safeway, a major grocery chain based in california. it says about 80% of its employees are unionized. you can contrast that with costco which has only 10% of its workforce unionized. costco tends to cover no-- theye flexibility to change things on the fly. amazon tells me i sh

jon fortt, what's going on? billion in cash. very interesting acquisition. of course, they have the nest thermostat. they have also got a smoke detector, carbon monoxide defector they have just come out with. tony fidellos largely known as the co-founder of the ipod. google ventures has been on nest since it's series b light speed ventures. kleiner perkins has been in as has shasta ventures been very much involved. i actually sat down with tony and his co-founder a couple years ago when they were getting this started to talk about where the market is headed. we had tony on "squawk on the street" just a couple months ago talking to him about this company. very interesting coming out of ces. not only wearable technology but home automation technology. lots of things controlled by the cell phone in this post-smartphone era are becoming more popular. google buying this company. very interesting because they will be able to push this forward that much more quickly. nest thermostats and their over products already in

. >> thanks a lot, jon fortt. is this, in fact, spin or is this google -- you know, it's served its purpose, now we're going to say good-bye and it's worked out for us. >> spin. >> yeah. >> you knew that answer. >> it was a little rhetorical, yes. >> like that. it has an "h" in it. you stayed long into the earnings and i think if you've been in it, the stock has drawn about 35% in the last three months. that's a significant move. if it goes higher, you missed it. but the prudent thing to do, the right trade to me, you take something off the table tomorrow before the report be it a quarter half or three quarters and then you go from there and then, again, if it ramps up, we missed it, and i'll say that i was wrong. but there's a really good chance you get a flush. >> you're bearish google evaluation concerns was -- >> i'm not fan. the company was supposed to grow earnings about 11%. obviously they knocked the cover off the ball. but as guy said, it's up 357 from the last quarter. i think this is a really, really cr

jon fortt has the details at headquarters. >> enrique de castro, the chief operating officer is out atahoo! really interesting because this was arguably the first really high-profile hire that marissa mayer made. he came over from google, where he had done a lot of work on ads. he was in charge of the core business, accelerating that. particularly the display ad business, performance ads. there was a lot of concern in the ad community that he hadn't been getting that done. i'm looking through his employment agreement as of mid-october 2012, it looks like he's going to walk away a pretty wealthy man. not that he wasn't already. but he had $18 million worth of restricted stock units. and all of those that would have vested within the year, he'll get immediately. it looks like that's at least 25% of those. he probably already got some of that. there's more he would have gotten within the year. it will be less than 18 million, certainly. but somewhere in that ballpark of those restricted stock units. and then, subject to performance criteria, there were other stock that he might walk away

joining us, julia boorstin and jon fortt.ng officer, firing, hand-perked guy, henrique de castro, with the company about year. one of the highest paid execs in silicon valley, apparently they didn't see eye to eye and ms. mayer decided it was time for him to leave the company. raising questions, multiple ones. yahoo!'s earnings outlook. folks, is this an early warning is sign about bad earnings? jon, take a whack? >> maybe. we didn't expect much out ofy revenuewise. the display ad businesses, the main area he would have been concerned about, search and other areas have been contributing more. so, ah i think it says more about marissa's hiring and ability to work and act quickly if her decisions aren't working out tht julia, thoughts on the earnings specifically and second topic, is the turnaround at yahoo! coming off the rails? >> well, remember that earnings are coming up at the end of this month. this news comes a couple of weeks before those earnings announcements. i think jon's right, but we have to remember that this is

. >> i think i heard from our on jon fortt is there no way to justify the price they paid but who cares. >> right. >> with that company more than perhaps many others, it doesn't matter. >> google ventures is part of this. they're going to keep the revenue they made on this. clearly a couple of years ago google put forth this initiative in terms of the creation of better energy efficiency and domestically utilizing applia e appliances to save money. >> apple is going to look at it. they make the acquisition. they have to do it some time soon. >> do you want to do the pledge of allegiance as we go to break? >> amen. >> have we lowered standards as a country that much? >> i can hear my accent, i should change. >> can we trade and send steve across the atlantic? >> yes. we should get people to vote on that. if we could get a trade, who would we move over there? >> #halftimereporttrade. >>> bill is search for -- i have a good idea who we could bring over here. he says has the most potential this year. and no deal today for time warner and charter but we're going to talk to an expert who says

jon fortt joins us with more. boy, they've got a mess to clean up, don't they? >> they do." show this morning, kind of trying to explain what was going on here, again, reassure users. not totally sure he struck the completely right tone. it was interesting how he talked about it. didn't seem to acknowledge that the hackers and security researchers had brought this to snapchat's attention earlier, didn't really address whether they could have fixed it if they had paid more attention. it's also interesting, it reminds me of an incident at facebook in mid-august, actually, palestinian security researcher was trying to tell facebook there's a bug where someone random can actually post to anyone's wall. and facebook ignored him until he posted to mark zuckerberg's wall, and then they immediately responded and fixed the bug that day. there's a move out there where hackers are finding the vulnerabilities, trying to talk to companies and having trouble, until they do something very visible. >> the company should just hire -- they are hiring hackers. >> can we listen to the snapchat

jon fortt has more on this.ing bring in more shovels. is it something like that? >> i think it's something like that. amazon has been in the mind reading business for a long time. when you go to their home page they've got recommendations and send you e-mails that have clearly been kind of snooping in on their click activity. i think this is more about using what they know to cut their own costs. remember for a lot of primary members they guaranteed they're going to get that item to you within two days. this might allow them to move the item closer to you before you order it so they don't have to use planes which are more expensive. they can use trucks which are less expensive. lts, if they're going to deliver stuff to you by drone they've got to have it close for the drone to deliver it first. >> and less reliant on ups or some other vendor that you obviously can't always count on. >> well, in the patent filing they still talk about common carriers like ups doing a majority of the freight. it's mostly based on

thank you very much, jon fortt. we'll continue to try to make sense of that story.as not the luxury many people hoping for, royal caribbean ship explorer of the seas returning to port two days early after an outbreak of a gastrointestinal virus overcame the passengers. we'll talk with the ceo exclusively in a couple minutes. mine was earned in korea in 1953. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection. and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve. yeah... try new alka seltzer fruit chews. they work fast on heartburn and taste awesome. these are good. told ya! i'm feeling better already. [ male announcer ] new alka seltzer fruits chews. enjoy the relief! cozy or cool? "meow" or "woof"? everything the way you want it ... until boom, it's bedtime! and your mat

jon fortt is here with us and patrick gelsinger. >> good morning, pat. good to see you. gratulations on the acquisition. i want to dig into that. airwatch is kind of a security layer on top of mobile devices, all sorts of applications there. united airlines and wall green, i believe, are among the customers. but moving into mobile device management, you've got a lot of competition. microsoft, blackberry, ibm, and point manager, mobile iron, good telk. you talk about scale this morning as something that benefits you here. but how exactly are you going to break through in that crowded field and how much is it going to cost you to do it? >> well, you know, this overall category is emerging very rapidly and we're just excited about the growth potential. our business customers, cios are struggling with the challenge in these mobile devices and how they manage them and enable them. in that environment, airwatch has emerged as the fastest growing leadership company for those multi-device worlds, for ios, android, and microsoft and all other devices. today some 10,000 customers t

. >> let's bring in john steinberg and jon fortt for their reactions to this.es. what would that mean? >> i think this whole announcement is what i would call socks for christmas. you need socks but it's not that exciting. we wanted a television. we wanted a wearable. and instead we got a distribution deal that they had to do any way to make up the fact that smartphones are penetrated in much of the developing world. it's not that exciting and the stock is showing that. >> are you that cynical, jon? >> maybe i like socks. i don't know. there are a few things in here that i think are interesting. one as part of this announcement, tim cook made the point, 3,000 additional locations in china. that's more than just an opportunity to sell more iphones. it's more of everything else, the apple brand. significant that the head of china mobile is carrying a gold ipho iphone. he's important. >> hoins person. >> on his person. it's now his primary phone, he told eunice. that's important because he's more than just an executive. he's also a very important person in china.

jon fortt has been taking a look at some of those electronics.is report. >> tvs, high def video, wearable technologies and a smarthome all on the agenda here at the consumers electronics show. let's take a look at what's been announced over the last few hours. lots of video partnerships. samsung with a 4k video partnership. samsung announced a couple of tablets, galaxy note pro and the galaxy tab pro extending their tablet. a lineup. also pebble, the smartwatchmaker, they came out with the pebble, a higher end watch. expect to see that later on this year as the smartwatch business keeps up. lots of data. at&t announcing a sponsored data plan. now companies will be able to subsidize data. if you want to vow a movie trailer, they can decide to pay for that on the backend. we could see that accelerating mobile data use, mobile data. a lot of what this is about at ces when they're not talking about high def video. it will be an exciting show. back to you. >> that was jon fort joining us from las vegas. we just heard jon there talking about noble data

just last week we were talking to jon fortt and julia at ces and jon thinks the next wave of interestingrea within people's houses. here we are literally one week later with google making its second largest acquisition in history. >> consumers have a choice with a public company. of course, with the government sector, we don't have choice. that's a different story. >> got to leave it there. carmen, thank you for joining us. it's an important debate. what does christine day have in common with the new york yankee short stop derek jeter? apparently neither one of them wants to talk about alex rodriguez. courtney reagan did try. but they are both hoping to hit it out of the park with a new food venture. has got it goin' o♪ ♪ stacy's mom has got it goin' on ♪ ♪ stacy's mom has got it goin' on ♪ [ male announcer ] the beautifully practical and practically beautiful cadillac srx. lease this 2014 cadillac srx for around $319 a month with premuim care maintenance included. ♪ she loves a lot of it's what you love about her. but your erectile dysfunction - that could be a question of blood flow. c

our own jon fortt is here for the reaction to the numbers.e? >> well it's not too surprising that revenue is light. we know kelly, that the last couple -- really the last two years ib mm has really struggled to grow revenues. it's nice to see the bottom line be above expectations. the big question is how were they able to do that? was it through, you know, one-time item a tax credit or something, or was it actually some other initiative in terms of growth. that tom line number is a little concerning. >> jon? >> kelly, a key passage from the press release, let me read it to you. revenues from the company's growth markets decreased 9% down 6% cost of currency. revenuefvenues in the bric countries decreased 14%. that's 11% constant currency. ha shows some of the key areas they're counting on for increased business china included, continue to be a trouble area for them. that is going to be an issue for a number of enterprise players as we see this earnings season play out most likely. some of them some of the smaller ones have been able to buck t

. >> and you heard it from jon fortt on this program who when that deal happened said you have to wonderoes next. thank you so much. forget about the old cash real estate deal, how about the old bitcoin deal. the head of a brokerage explaining why his company is breaking new ground by accepting the controversial new currency for transactions. tdd# 1-800-345-2550 you read this. watch that. tdd# 1-800-345-2550 you look for what's next. tdd# 1-800-345-2550 at schwab, we can help turn inspiration into action tdd# 1-800-345-2550 boost your trading iq with the help of tdd# 1-800-345-2550 our live online workshops tdd# 1-800-345-2550 like identifying market trends. tdd# 1-800-345-2550 now, earn 300 commission-free online trades. call 1-888-628-2419 or go to schwab.com/trading to learn how. tdd# 1-800-345-2550 sharpen your instincts with market insight from schwab tdd# 1-800-345-2550 experts like liz ann sonders and randy frederick. tdd# 1-800-345-2550 get support and talk through your ideas with our tdd# 1-800-345-2550 trading specialists. tdd# 1-800-345-2550 all with no trade minimum. and only

we want to turn to jon fortt to talk about some of the drama.king off stage although drawing attention to samsung. then john ledger who escorted out of the at&t party. it seems like the point is we're talking about the people, not the products, by the way. >> a little bit of both. both of those things were surprises, but very different kinds of surprises. in michael bey's case it seems like that wasn't quite calculated enough. with these big presentations, it seems like they're all natural, like they're there for a chat but usually these are highly orchestrated rehearsed things. didn't seem like they rehearsed that. bey wasn't in a position to ad lib and walked off. in the case of john legere, he said he just wanted to see the macklemore concert. something tells me when he crashed that party, he knew something might happen. >> that's a great point. stick around. i think we had to lose julia. i want to bring the panel in on this. consumer electronics show, there's been a lot of discussion about whether 2013 was a lost year for tech and whether in

joining us in today's squaek squawk feed along with jon fortt is jon steinberg, coo on tap for today. giant, surprising the streets, second quarter profit and revenue coming in above expectations. results helped by strong holiday sales of the xbox game consoles and the surface tablets which doubled revenue, almost $900 million. jon? >> let's knnot get too excited. it's good. some people can't sell tablets even when they discount them. a lot of microsoft's lower end tablets sold here, that's good for them. they got a little momentum, more confidence. big xbox quarter as you would expect in the holidays. we'll see if the games they put out in the next couple months are able to extend that. but it's not really a hardware story. this is about the cloud services. they're even seeing some margin expansion as they get to scale with azur and things like that. that's the important thing this quarter. >> on the call or in the press release they said there was continued softness in the konl super pc sector. that's the macro story that's driving this here. the good part about the xbox story, the

jon fortt is there. good morning to you. >> reporter: morning, matt.ng in our lives from cars to baby onesies. >> reporter: it's a gear head's paradise. ces attracts geeks from all over the world all looking to sell or discover the next must-have gadget. television sets with four times the resolution of current hd screens, wired cars which manufacturers like audi hope will soon be driving you. the digital revolution reaching into every light switch and countertop in your home. >> you have your smartphone now and all of these different devices that have wireless connectivity to come together. >> and, of course, this year's show is exploding with all types of wearables from devices that give performance feedback to fitness buffs to jewelry that tells you how much sunscreen to put on. these days, the push to sync up our whole world now reaches all the way to the cradle. products like nemo are going past the standard baby monitors with censorized onesies. >> also audio so mom and dad can get the information live realtime on their phone. >> will that really

our jon fortt at ces in las vegas. >>> jpmorgan is agreeing to a major settlement, paying $1.7 billionff's massive ponzi scheme. scott cohen is live in new york with details on that. good morning. >> reporter: good morning. the bank is learning the consequences of dealing with bernie madoff. as you said $1.7 billion in fines for the justice department another $300 million to regulators for what the doj is calling willful violations of the bank secrecy act. and essentially not filing suspicious activity reports when they knew that there was an issue, not having basic controls in place in order to -- in order to catch this massive ponzi scheme. the bank is now out with a statement that puts a little bit of a softer touch on it. we recognize we could have done a better job pulling together various pieces of information and concerns about madoff from different parts of the bank over time. we do not believe that any jpmorgan chase employee knowingly assisted madoff's ponzi scheme. madoff's scheme was an unprecedented and widespread fraud that deceived thousands including us and caused many

our jon fortt is here on set with your take on this.everance. what's his overall story? >> i've met him. the overall story marissa mayer can be tough to work for, those known to work on thought experiments on what life would be like without you and the thought experiments -- that's what she calls them, thought experiments, life without henrique would be better and q-4 was probably not as impressive as they would like. they are were relying on bigtime advertising on their major pages to really carry them forward to grow this display ad business that has not been growing. i think she's aware that the alibaba effect is likely to peter out somewhat in 2014. that core business has to start growing. it's interesting she doesn't seem to be replacing him. that puts pressure on her existing team including kathy savitt in media to really get that business going but it's got to get going. >> you think this may presage a bad quarter? this is a way of getting in front of that? >> i don't know that expectations were that high to begin with, but q-4 i

our own jon fortt was one of the first to float nadella's name in october of last year.squawk on the street" and asked about that prospect and continuing and sometimes criticized involvement of founder bill gates. >> steve's very much the ceo. i am really, really busy and excited about the enterprise job that i have. i'll leave it at that. bill is, you know, as he said, he's chairman. he's also engage with us on a part-time basis. and you know, he's sort of ask the precision questions on how we're going on any particular product in technology. there are a lot of areas of the enterprise business that he cares deeply about. >> great interview by jon. as kara said last half hour, he and bill gates are likely going to work together quite a bit if he gets this gig. >> and kara had the comparison between nadella and bob iger says he's a quiet one and a stellar ceo. he seemed composed in that interview. >> kara said no announcement likely coming today. >>> stocks are on the comeback trail. down 112. one and only art cashin is here to tell us what's happening when "squawk on the

senior research analyst and manager director at jmp securities and jon fortt joins us as well.ts, it seems the question with intell are they adapted fast enough to the post-pc world? >> from the results it seals they are not. a few things from the report jumped out at me. they built a fab, basically a manufacturing facility, and they haven't put equipment into yet because the demand's not there. now, granted this has happened at times in the past, but that combined with the overall pc trend doesn't speak well. also enterprise servers. that market not panning out the way intel had expected. the data center group is supp e supposed to be strong, and enterprise pcs not that strong either. intel's now trying to get that market going, also get 40 million tablet units going in 2014. in order to do that, they're going to have to aim at the lower end of the market, something they can afford to do with their advantage in process technology, but there are several areas where this could slip. they said they plan to bring their workforce number down in 2014. there was a little squishiness

stacey and jon fortt, thank you. do you order your groceries online?moved out here to the jersey area. >>> let's get back to the markets. still trading to the downside bouncing off the lows. but lower across the board this morning. despite the action, stocks are waiting on a very important federal reserve decision 2:00 this afternoon. and rick santelli, you're talking to none other than jim grant about the fed today. how hperfect. >> yes, 31 years. founded the grant's interest rate observer. we call him the interest rate emperor down here. we want to talk to him about pricing of fixed income market, how it's changed, how the buy vigilantes became the qe vigilantes. we're going to talk to jim and his famous bow tie in about five minutes. don't wait for presidents' day to save on a new mattress. sleep train's presidents' day sale is on now. save up to $500 on beautyrest and posturepedic. get a sealy queen set for just $399. even get 3 years interest-free financing on tempur-pedic. plus, free delivery, set-up, and removal of your old set. keep more presid

jon fortt joins us now with the highlights from vegas. >> good morning. you can always expect a good presentation from marissa mayer. she had a number of things to say both about the strategy and specifically about product. they kicked things off talking about yahoo!'s latest acquisition. interesting start up on android home screen launcher, basically takes over your home screen. shows you different apps during the day based on things that you want to do. take a listen to how she opened it up. >> future of search is knowledge. and we are investing to be part of this future. we're incredibly excited to kick things off today by announcing that we have acquired ava. as we look tow foorch of mobile, we believe home screens should be smarter and more personalized. >> did you hear her say mobile there? we're putting content front and center but wanted to make the point that yahoo! is moving away from desktop to mobile. >> mobile is all about growth. today, total worldwide smartphones are up 27% year over year. while tablet usage is up 78% year over year. by 201

jon fortt back at post nine. >>> the pizza business sa and under the radar move, chipotle is investing like in a moment. hope fully the lines are a litte shorter. >>> rick santelli having broken through a brick wall in the past hour. rick? >> i'll tell you what, i haven't not been on the floor for a jobs number since 1979. i'll tell you what, there's only one guy i want to be on with after the jobs number. that's jim bianco. he's going to be on here. we're going to stalk about stanley fischer. and, of course, labor force participation rate. bottom of the hour. [ bagpipes play ] make it happen with fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today. [ male announcer ] what kind of energy is so abundant, it can help provide the power for all this? natural gas. ♪ more than ever before, america's electricity is generated by it. exxonmobil uses advanced visualization and drilling technologies to produce natural gas... powering our lives... while reducing emissions by up to 60%. energy lives h