josh lipton on google's good year so far. but we start with dominic chu and some stocks that are getting a real boost from the big tech show out in las vegas. take it away. >> the big companies are always going to get the headlines but here are some of the fun ones. sue alluded to one earlier. that's fleer systems. this company, fleer, you got to think about night vision but thermal imaging, these guys do a lot of that kind of work. what they have announced is a new app for your iphone that can do thermal imaging as well. if you talk about the way the stock has performed, check this out, because this company, it really has done well in this new thermal technology, it could be good for the iphone and good for sales going forward as well. also one you want to watch, also touch screenish for phone and ipads, a new product could revolutionize notebook computers going forward. it's magnetic which lets you have not just a keyboard but also a touch screen function for that as well. that company is doing pretty well in terms of its s

josh lipton has more. >> reporter: hacking is a huge problem for companies in the u.s. and worldwide. there was that massive attack on target's customers involving 40 million debit and credit accounts and snapchat had personal information leaked. but now there is a deal that could shake up the cybersecurity landscape, fire eye is buying mandiant for 1 million. they made a name when they leased a report with suspected activities of a chinese military hacking unit. fire eye knows whether your company has been hacked and they can tell the damage that has been done. fire eye ceo says the partnership will fight off the growing signer security throat. >> just yesterday, we saw the electronic army bring down, obviously, skype. we're seeing a lot of infrastructure attacks like twitter, the associated press. some are successful, some are not. there is a lot of activities happening in the world right now. >> i view this as the tip of the iceberg. >> reporter: dan says this deal creates a security platform that poses a real challenge to rivals in the sector like mcafee. the stock

every day, where is josh lipton. aren't you jealous? i have josh right here. >> i'm jealous.oshie. >> hey, mandy, how you doing? >> she says hi, joshie. >> i miss that accent. >> hello, joshie. we're out here, a lot of ceos. you're here because venture capital money sniffing around health care, they think, what, big health care data is the next big thing? >> interesting, you talk to silicon valley and they tell you they think a revolution is coming to health care. they tell you health care delivery can be disrupted. they think technology can basically make it more effective, more cost efficient and it's hot here. they pumped $2 billion into health care startups last year, up 40% over 2012. what's interesting is the different fields startups are interested in. >> like what? >> a couple examples. one is sellscope. the old day you had a kid with an earache, you might take him to the emergency room. what they do is, it's a smart phone with an attachment and it gives you a high quality shot of the eardrum. >> whoa, whoa, whoa. i would take a picture -- hold on. i will grab my phon

josh lipton has more now. >> reporter: investors are always looking for the next big thing. facebook and twitter shot higher after going public. those stocks are up 50 and 110% respectively. venture capitalists are now piling into private silicon valley companies, starting their valuations well above $1 billion. the "wall street journal" reports the valuation of -- has ballooned to $9 billion. box is at 2 billion. pinterest is at 4 billion. facebook was willing to pay $3 billion for snap chat. where do these numbers come from? >> it's a little bit of a -- >> dylan sweeney who covers venture capital says investors are willing to pay more because they're worried about missing out on potentially huge returns. >> it's not like there's a formula you can apply or a computation you can do that comes out with the number. i think a lot of what we're seeing right now is a product of just a lot of enthusiasm for technology start-ups. a lot to invest in. a lot of companies doing really interesting things. and investors don't want to miss out so they're willing to pay a higher price. >>

josh lipton has the story. >> reporter: investors have been excited about the possibility of ford ceo allan mulally replacing steve balmer who is retiring. they thought mulally would return cash to shareholders, cut costs, and maybe even sell or spin off x-box and bing. there was debate among investors and analysts about the qualities the next microsoft ceo needs to have. there are reports today that the selection of a ceo is expected before february due in part to the top schedule of chairman bill gates. >>> some microsoft investors want an executive who will streamline the organization and boost capital return to shareholders. others are hoping for aperson with a deep background in software. but collin gillis of bgc doesn't think the next ceo has to be a technologist. >> you've got bill gates on the board as the founder. he brings that technology component to the board level. so the ceo does not necessarily need to have those components. instead, gillis says the next ceo does have to have the ability and the experience in managing big, complex organizations. which microsoft insider

josh lipton, "nightly business report," silicon valley. >>> v.r. horton stocks soared on news that its profits rose 86% last quarter. that is where we begin nightos market news. the company says improving housing market conditions helped drive the earnings beat last quarter. shares surged almost 10% today to $23 even. comcast added video customers last quarter for the first time in more than six years. and that helped the cable operator offset a slight profit miss. earnings came in below estimates as its tax rate was higher than expected, but revenue beat comcast the parent of nbr's producer also upped its dividend and buy back program. shares were up more than 1.5% to $53.35. susie? >>> after the bell, electronic arch reported a third quarter profit that topped analyst estimates but revenue fell short as shoppers spent less on games for older con soles and the industry introduced new devices like x-box 1 and playstation 4. shares sold off in after hours trading. during the regular session, electronic arts rose more than 1.5% to $24.87. >>> j.c. pe

josh lipton has more. >> reporter: as soon as steve balmer announced last august that he would step down as microsoft's ceo, investors started to focus on who would replace him. >> whoever comes in is going to have to choose where to focus. >> reporter: walter pritchard, citi's software analyst, says the issue for microsoft isn't so much about a person but rather a very important product which accounts for about 30% of the company's profits. >> i think at the end of the day whether it's an insider or outsider they face the same set of challenges, which is a company that's sort of increasingly losing a grip on the core what built the company, which was windows. >> reporter: windows has been the foundation of microsoft's product line for 30 years. pritchard says it's quote waning in relevance as fewer consumers are using pcs. >> i think gates is not going to let it go. with baumer leaving and mistakes made under his watch, i really think microsoft's going to adapt. >> personally i'm an mac user as you can see. but do i run windows for business services. >> i know people that love it and ha

josh lipton, "nightly business report," silicon valley. >>> shares get a boost even though profits at the health care industry plucked. well point customers raced to use medical services before policies were canceled at the end of 2013, which is why profits fell. but the company gave an optimistic enrollment outlook saying it expects applicants in the affordable care act plan will be in the age and demographic range that it anticipated. well point shares rose more than 1% to $85.37. >>> shares of dow chemical surged and that's thanks to good earnings. on top of that news that the company is hiking its dividend and tripling its share buy back program. dow was recently targeted by activist investor dan loge of third point capital. he's been urging the company to spin off its petrochemical unit. shares jumped almost 4% to $44.73. >>> earnings at jetblue airway saturday on improved passenger traffic and stronger revenue. but recent bad weather and flight cancellations prompted the airline to slash its revenue outlook for this quarter. that worried investors and sent shares down almost 3%

josh lipton has that story. >> reporter: venture capitalists see a revolution coming in health care. they want to disrupt health care delivery in the same way that elon musk is transforming the car industry. renowned venture capitalist bill guraly recently tweeted he's busy studying where the internet intersects with health care and welcomed ideas from his followers. >> it's tough. >> reporter: alexis borsey of third rock ventures focused on the life sciences, sees opportunity to transform health care but also real challenges. >> this is one of the most regulated industries in the world because we're talking about the health and safety of people. and so i absolutely agree, this is an opportunity to make a tremendous improvement and have a tremendous disruption, but it also has to be done right. right? it has to be done in a manner that really proves it is going to make a difference for patients. >> reporter: start-ups in silicon valley are focused on different fields within health care. one example is sell scope. if your child has an ear ache, you might bring him to the emergency roo

it's been cleared for takeoff, and josh lipton is in san jose with details. josh?. how many people do you know who can spend $82 million to build a private jet center? i'm going to tell you who when "power lunch" continues. ves a lf the same things you do. it's what you love about her. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than 4 h

we'll check in with josh lipton. and we have brian marshall. a key thing that analysts will be listening for, china. you mentioned it, emerging markets. hardware, down by 40% last kwoo quarter. on the back of the third-quarter earnings, seeing a decline tonight. >> at some level, it is ibm. the valuation is really getting cheap. there's a lot of cash flow there. it's worth looking at. i don't feel like you have to run out right now and buy it. at some point, i think it's worth looking at. >> where do you -- i don't trade this way. where do you look at ibm and look at it as a value trap versus saying it's cheap? >> sub 10. >> that's a good question. where do you come up with that number? sub 10 times p.e., that's way cheap. you're asking for these guys to be trading 20% cheap from where they were a couple weeks ago. >> but that's kind of in the neighborhood of where it is. it's a madeup number. >> cheap enough to buy. at that point, it's absurdly cheap. >> let's check in with josh lipton, who has been on the ibm call, joining us with the latest.

josh lipton rejoins us. josh? >> yeah, kelly.st to flag for you as we make our way through this release. yahoo! saying that nongap net income of $130 million to $170 million, that's substantially below what the street was forecasting, so that could be part of the downside action we're seeing here about 5% right now. also as we get yahoo! reporting, we also get the latest financial results from alibaba, the chinese e-commerce giant. they give you the latest results from q3. revenue did pop 51% to $1.8 billion year-over-year, but, again, maybe the action we're seeing right here, kelly, could be this nongap net income number which did come in below where analysts had predicted. back to you. >> all right, josh. thanks very much. now, this month alone general electric is often by 9%. it is the worst performing dow stock of the new year. today it's rallying a bit after jeff immelt told the world he thinks his stock is oversold by spending $1 million of his own money to buy shares of his own stock. should you follow his lead and buy som

josh lipton joins us now with a preview of apple's big earnings report. josh, it's due out in an hour. we want a sense of that and are we going to hear anything about bigger iphones and about this new glass that's potentially involved? >> yeah. the new glass is interesting there, kelly. forget diamonds and emeralds. apple things the gem to own is sapphire. apple investing a lot of time and money in the gemstone. the company signed a big deal with gt advanced technologies to become its producer of sapphire glass and it filed a patent detailing ways in which sapphire glass can be secured to various devices. sapphire is durable, it's scratch resistant, but here is the big drawback. it's also expensive. a layer of sapphire glass for a smartphone costs about 17 bucks. glass that is simply chemically strengthened, that costs about $4. sapphire glass at its current price point probably too expensive to use for larger screens like ifdipads. for iphones it doesn't appear they have enough sapphire glass to cover that many displays. apple could keep using sapphire to

josh lipton is monitoring the exciting web cast here. >> i think you buy it here. there's a lot of people out there that have missed this move. they want to get in with ali baba. now, you have it down 5%, 6% in the after-hours. down 3%. now, it's chance to get in. you discounted any weakness there. >> i want to play the space through google. i realize it's an ali baba story that's the tail wagging the dog to look at the search part. but google, reporting thursday, i don't know if this is a sign of more share that google has taken away. that would be a good thing. however, i did sell some out of the money googles 1160s today. they expire on friday. this just captures earnings. that's where the stock peaked a little over 1160. so, i'm expecting good things there. but i will be upset in a blowout quarter that i sold. >> we'll monitor that web cast. bring you the developments and continue to trade them. google is taking over your eyesight. we're bringing google glass in studio to see if people want to wear it. and we're going to try it on. >>> and netflix is moving clo

let's go right to silicon valley where our good friend josh lipton has all the details. apple disappoint? >> yeah, most certainly, larry. apple did report and disappoint. the company did beat the street's forecast. reports eps 14.50 on sales of 57.6 billion. apple's cfo saying no tech company has ever generated that much revenue in a quarter. also, best in photograph, so why did appear the stock sink here. in a couple reasons, one, a disappointing guide for q2, apple predicting revenue between $42 and $46 billion. that wasn't good enough for the street. they did sell more ipads and macs than analysts predicted. the bad news, they sold 51 million i phone, sounds good, but they thought apple would sell more like 54 million i phones, on the conference call talking about the iphone business, tim cook saying business was strong in the emerging markets and in china, but in north america, business actually contracted. cook pinning at least part of that blame on carryiers, which changed that upgrade policies, restricting customers who were used to upgrading earlier. carl icahn o

josh lipton has got the latest from the call. josh. >> hey, melissa, on the qualcomm conference call the ceo-elect talking about china, obviously a big source of opportunity for qualcomm, but even qualcomm bulls will tell you there's a real risk in china and that is this investigation by chinese investigators. moll len cough talked about that. take a listen. >> they notified us that it had commenced an investigation of us related to the chinese anti-monopoly law. the ndrc has advised us that the subject of the investigation is confidential. we'll continue to cooperate as it conducts its investigation. >> so qualcomm not getting a lot of information from the chinese government about what exactly they're investigating but we're hearing it could be a 1 million dollar anti-trust fine. the ceo says the year is developing broadly in line with expectations. they did take their fill year, 2014 eps estimates up. that would be a 15% pop year over year. melissa back to you. >> josh lipton, thanks so much. of course, the call got under way at

larry, back to you. >> many thanks, josh lipton. we appreciate it. in just about two hours president obama will head to the u.s. capitkap tacapital -- capi deliver the state of the union to congress. one question have i is whether the president this evening will set the democratic party agenda and message. perhaps a sign of things to come, pressurery secretary jack lew met with house democrats today only to reiterate the fact that the president will not negotiate when it comes to the debt limit period. let's talk. here now we welcome new york democratic congressman joe crowley, vice claire of the house democratic caucus and texas republican congressman kevin brady, chairman of the joint economic committee. mr. crowley, thank you for joining us. tell me a moment about jack lew. no negotiations on the debt ceiling. from what we heard, it's going to be a militant position and the debt ceiling may be a bigger problem than wall street first thought. >> and nor do i think there should be any negotiations on this. i agree with the secretary. we pay our debt

josh lipton, what's going on here?it's not uncommon for tech executives if silicon valley to fly on private jets, of course. but google's founders, they are taking it to a whole new level. they've won access to some prime real estate at the san jose international airport. cnbc has learned from sources working on the project that ground breaking will start in february for a new jet terminal serving google's founders. the $82 million privately funded project is expected to be completed by the end of 2015. signature flight support, a company that manages corporate aircraft, is going to build the facility in partnership with blue city holdings. that's a corporation representing the personal aircraft of google's principals. the jet center will have a 270,000 square foot hangar. industry experts tell us it could potentially accommodate 60 aircraft, making it one of the biggest private air terminals in the world. the new private terminal means more jobs for san jose and 2.6 million in annual rent to the airport. bill, back to

josh lipton has that story in oakland, california. hey, josh. >> reporter: hey, scott, yeah.side health center, a medical marijuana dispensary in oakland, california. you may think that it's easy to sell marijuana. the demand is certainly there. but this is actually a tough business. states like washington and colorado have legalized recreational marijuana use but federal law, remember, has not changed. marijuana remains illegal. as a result, a lot of banks are reluctant to do business with marijuana shops. they worry about breaking federal laws. they don't want to loan these businesses money. marijuana shops could have a new source of financing soon. executives of "high times" magazine have announced a new private equity fund to invest in marijuana related businesses. the ht growth fund is planning on raising $100 million over the next two years and making investments in the $2 million to $5 million range. it's easy to see why "high times" wants to get into the weed business. the legal marijuana market is now valued at an estimated $1.4 billion. i can tell you, the treasury

josh lipton, cnbc, silicone valley. >> that's the outlook on apple. joining us from new york is darren. darren, is the reaction after hours overdone or justified? >> that's a good question. the numbers are certainly disappointing. the north american decline in iphone sales is something to be worried about in the longer term. but, you know, this is a company that generated $12 billion in new cash for the year. $22 billion in new cash flow. i still think the company is performing quite well, given some of the head wins they've had in terms of some of the carier upgrade issues, the inventory issues and overseas some of the stronger dollar issues, as well. >> on the iphone 5, presumably get their heads around. are they losing market share? and is competition growing, particularly in asia? >> there is no doubt. the cheaper phones, in particular. android and samsung are doing quite well. so they would have to continue to innovate in the space and continue to create new and exciting products that people want. no, there's no question the market share is falli

josh lipton is all over that for us. hi, josh. >> reporter: yeah, sue, hackers have been making news, stealing personal information. that can mean more business for some security vendors. i will tell you which ones when "power lunch" continues. are a . seeker of the sublime. you can separate runway ridiculousness... from fashion that flies off the shelves. and you...rent from national. because only national lets you choose any car in the aisle... and go. and only national is ranked highest in car rental customer satisfaction by j.d. power. (natalie) ooooh, i like your style. (vo) so do we, business pro. so do we. go national. go like a pro. about the most track-tested is ever... but the truth is... we don't have to. the experts have spoken. now it's your move. ♪ when i first felt the diabetic nerve pain, of course i had no idea what it was. i felt like my feet were going to sleep. it progressed from there to burning like i was walking on hot coals... to like 1,000 bees that were just stinging my feet. i have a great relat

maybe you should fix that. >> josh lipton. we're looking at what google is doing, what amazon is doing as well. we're calling it google's hit, palm zo amazon's miss as we look at the story means today. >> two very different stories there, scott. google obviously, you know, clicks up 31%. better than the street expected. the volume is there. at the same time, cpc is down 11%. . that was worse than expected. that's that transition from pcs to mobile. banking that google executives will figure that out the same way that facebook executives did. with amazon you saw that top line miss. amazon obviously not immune from the fewer shopping days. softer, final quarter here in the states. north american revenue did pop something 24% year over year. and also making big news on prime. you know, pacific crest estimates they added 6.5 million members in 2013. that was way up from 2012. they spend four times more than nonmembers. maybe more opportunity for amazon. >> murph? >> what would you be doing if the market today? if you could take wa

josh lipton joins us with more. what is the key takeaway from these results? >> tyler, listen, ibm reports and the big number investors focused on, 27.7 billion. that was ibm's revenue for the fourth quarter and it was a miss. analysts covering ibm wanted to see 28.3 billion. martin schroeder said some of ibm's business segments appeared solid like software. ibm moved more aggressively into the cloud services saw revenue edge higher but the pain was in hardware where revenue tumbled. lenovo is interested in ibm server business. and importantly besides the disappointing revenue number, ibm did reiterate its commitment to generate 20 bucks in eps in 2015. tyl tyler. >> thanks very much. >> our next guest is a big believer in big blue. dan morgan, senior portfolio manager, thanks for joining us. >> hi, susie. >> make your case for owning ibm. >> there's no doubt that this quarter in terms of revenue was disappointed and hardware continues to be disappointing but you look at some of their growth drivers in terms of the new initiatives they got involved in in the l

our very own josh lipton. three things to look for when they report.e is -- >> that's right, mandy. listen, three big numbers. right? one is going to be sales at the pc client group. analysts at jpmorgan, upgrade the intel to overweight. they think the pc market will be relatively stable this year. second, watching how the data center group performed. that includes sales of chips used in server systems which can be a volatile business, but the real question, what is intel doing to get into smartphones and tax? intel missed mobile. now trying to buy its way into that market. fbr's chris roland, intel gives tabletmakers, $26 per tablet. three things to watch ahead of intel's earnings. >> win, two, three, you delivered, josh lipton. >>> on tap, extreme drought in california could have a big impact on your grocery bill. a live record ahead. >>> and happy company, wall street. finding out bonuses today. we hope you're truly happy. if not, we've got the perfect app for you. if want to tell your boss to take this job and -- put it? this app will to dop f it f

let's get to josh lipton with the numbers. ittle shy? >> kelly, let's look to the numbers. the street was looking for 80 cents on $4.55 billion. they deliver 81 cents or $4.5 billion. beat on the bottom by a penny. just going through the product segments, payments revenue was up 19% to $1.84 billion. that's a little light. the street was actually thinking you'd see $1.9 billion. marketplaces, $2.3 billion is what they turn in. that's smack in line with what the street was forecasting. as for guidance q1 this includes dilution from the acquisition, but they're now expecting 65 to 67 cents. the street was looking for 73 cents in q1. >> and you have to wonder where this stock would be trading right now if it were not for carl icahn. josh, thank you so much. we have some more breaking news. this time from treasury secretary jack lew. hampton pearson joins us with the story. >> jack lew has sent another letter to congress urging them to act quickly on raising the debt limit before february 7th. the best action he says would be for c

josh lipton, nightly business report, silicon valley. >>> netflix is ending its big year by giving ceoeed hastings a fat raise and possibly upping prices. that's where we begin tonight's "market focus." netflix shares almost quadrupled for this year, making it the top performing stock in the s&p 500 index. that performance landed hastings a 50% salary increase for 2014, according to an sec filing. the video streaming service is also experimenting with a new model that makes you pay more depending on how many screens you watch on. on top of that, netflix is ending its poison pill or shareholder rights plan two years early. it adopted the plan to protect itself from a takeover when activist nor carl icon took a huge -- investor carl icon took a huge position in the company. >>> last night we told you that hertz adopted a shareholder right plan to protect itself from a possible takeover. today activist investor dan lobe's third point capital admitted to taking a stake of 5% from the car rental company. the share rental right program at hertz will only be activated in a person or group acq

i'm josh lipton for cnbc. [ male announcer ] this is joe woods' first day of work. you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. that would be my daughter -- hi dad. she's a dietitian. and back when i wasn't eating right, she got me drinking boost. it's got a great taste, and it helps give me the nutrition i was missing. helping me stay more like me. [ female announcer ] boost complete nutritional drink has 26 essential vitamins and minerals, including calcium and vitamin d to support strong bones and 10 grams of protein to help maintain muscle. all with a delicious taste. grandpa! [ female announcer ] stay strong, stay active with boost. >>> from pinning down paul to sanctuary for snowden, is it okay to leak

josh lipton, cnbc, silicone valley. >> every week, cnbc has asked you to talk the trend by taking partn our online poll. this week, a tiny question we're asking you, which nasdaq stock would you prefer to own? apple, amazon, facebook and yahoo! were the choices. apple was the one that -- the biggest vote that was cast with 49% there. amazon coming through a 28%, actually, some of the best numbers from facebook this week. 15% of you going for that stock in yahoo! right at the bottom of 7%. i guess depends on your trading window. >>> you can see more than 7,000 of you voted online for that choice. head to traderpoll.cnbc.com to cast your vote. you can see the trend and add to these numbers. have your say in twitter using #traderpoll. >>> the biggest sporting event is this sunday when the denver broncos and seattle seahawks face off in the xlviii super bowl. it's the first super bowl to be played outdoors in a cold weather environment. i'm not sure cold weather quite describes it properly. more than $12 billion is expected to be spent on super bowl wear, snacks and merchandise. >>> ahead

. >>> i'm josh lipton with your cnbc market wrap. a down day for stocks.sdaq sheds 18. jet blue is suspending flights in new york and boston due to extremely cold weather. as for the economy, orders for manufactured goods rebounded in november jumping 1.8%. that's it for cnbc. y became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. i'm here to get the lady of the house back on her feet. [ all gasp ] oj, veggies -- you're cool. mayo? corn dogs? you are so outta here! aah! 'cause i'm re-workin' the menu, keeping her healthy and you on your toes. [ female announcer ] the complete balanced nutrition of great-tasting ensure. 24 vitamins and minerals, antioxidants, and 9 grams of protein. i see you, cupcake! uh-oh! [ bottle ] the number one doctor recommended brand. ensure®. nutrition in charge™. >>> welcome back to the ed show. most americ

josh lipton is in san jose. josh?g at a hot startup like snap chat, listen, that can mean millions for employees if the company goes public or sell out, but many companies are choosing to stay private longer, so what do employees do if they need cash? well, they can go to the secondary market or a marketplace where investors can buy shares of private companies. a research firm gave cnbc data showing just how big this market really is. secondary market transactions surged 51% in 2013 to more than $12 billion. second market, that's a company which provides a trading platform for alternative investments, has doubled the number of transactions on its platform year over year. now, that company did receive some criticism for inflating facebook's valuation ahead of its ipo, but second markets' head of sales tells cnbc that the company has now changed its model and now works closely with companies, and they determine the price and buyers of its shares. rising demand for the secondary market also due in part to the jobs act si

let's get over to josh lipton. >> yeah, kelly. google just reporting.he street was looking for here. 1222 on $13.55 billion. google reports 1201 on $16.86 billion. just going through the release here. paid clicks, the street thought that would be up 26%. it was actually up 31%. cpcs, the street thought you were going to see that down about 8%. they're down about 11%. also, motorola mobility remember in q-3, the operating loss there was $248 million. in q-4, the operates loss is $384 million. kelly, back to you. >> josh, thanks. want to bring in a pair of analysts now with a bit more context. tom, your take. this is a big miss on the earnings number. >> yeah, i think for google, i think they're going to pass to the extent that yesterday they announced they're divesting the hand set business to lenovo. i did think, though, as far as going into the quarter that expectations were pretty high. so not overly surprised that they missed on the bottom line, but i think investors will give them a pass given that the more important news is they're getting out of t

josh lipton is live in san jose with that. >> reporter: sue, yeah.at steve bomber announced he would step down at microsoft ceo investors focused on who would replace him. the issue for microsoft, said walter, isn't about a person but rather what to do with windows. which accounts for 30% of the company's profits. the operating system has been the foundation of microsoft's product line for 30 years. pritchard says it's waning in relevance, fewer using pcs. mobile device, smartphones, tablet, are growing rapidly. microsoft is moving hard into the mobile market buying nokia's business for $7.4 billion, but it's struggling today. nokia reported sales at its device business dropped 29%. pritchard thinks the more successful strategy for microsoft to pare back efforts, get out of phones and tax and focus instead on enterprise opportunities. rick cherilyn agrees with pritchard that microsoft needs to rethink its business model but the most important question is who is going to be the next ceo. only an outside here has the courage and self-confidence to stan

josh lipton on the case in san jose. josh? >> tyler, hackers, of course, have been busy this week attacking targets far and wide from snap chat to skype but their jobs might have just gotten a lot it tougher. in a deal described as a game changing acquisition, fireeye is buying mandian for about $1 billion. this brings together two names in the cyber security industry that complement each other. fireeye it knows whether your company has been hacked, mandiant can tell who attacked you. the sales exceed $100 million. kevin manidat, founder and coo of fireeye talking about the deal and broader cyber security threat. >> right now we're dealing with the attacks of steal intellectual property and credit card numbers. we worry about the attacks more nefarious meant to disrupt business and disrupt perhaps electric grids. >> this deal also creates a security platform that poses a challenge to rivals in the sector like palo alto networks, semantic and mcafee. stock is racing higher today up more than 150% since it went public last septe

i'm josh lipton. the intel conference call now under way. the ceo talking about signs of stabilization in the p.c. client group. we've seen some analysts recently on the street raising their ratings on intel, in part based on that belief, that you're going to see stabilization. and reiterating his goal into selling chips into 40 million tablets. that would be a leap for intel. but the ceo seeing a good start to that goal. the cfo, talking about capital return of shareholders. paying 14.5 dividends. and the top line that revenue would be flat in 2014. as for capital, spend $11 billion in 2014. that would be flat. we're going to keep listening to this call and bring you headlines as we get them. melissa, back to you. >> thank you, josh. intel down more than 3%. that brings us to the top trades, kicking it off with intel. joining us is doug friedman. you have a sector perform rating on the stock. you down graded the stock in november. >> i moved away from intel because i didn't like what management was doing. they're basically doubling down the

josh lipton joins us live from san jose with some of the details. >> yeah, apple reporting and disappointing. the big issue, iphone unit sales at 51 million. that was well below what the street was looking for. on the conference call, apple's ceo tim cook pinning the blame on carriers in north america, verizon, at & t, changing their upgrade eligibility from 20 months to 24 months. but bernstein saying there's really a broader trend at work here. the disappointing number from apple coupled with weak unit volumes from samsung points to an increasingly saturated high end of the smartphone market. the worry is how much apple can really grow its iphone business which remember, accounts for 50% of the company's top line. it's now more important than ever, analysts say, for apple to create new market opportunities for itself. tyler? >> thank you very much. tim cook says apple is still on track to release a new product category this year, not just a new product. a whole new category. so what is in the pipeline and how long until that new product category comes to market? insight now from re/code's