ruth porat said that's what they're going to do.he question goes to how much are the ceos going to let her go? how much rope are they going to give her? right now it looks like they can give her a lot of rope. google is still a cheap stock. >> it did go over $700 a short time ago. we've got two things that people wanted to see here. revenue growth and expense discipline. the two big issues that have had people negative on the stock. >> yeah. well they gave you what you wanted to see i think on both counts, i think importantly is what they didn't commit to. there was some questions on the conference call to miss porat about whether or not they're going to be returning capital to shareholders, she kind of deflected it. this is a company that's much better served by doing acquisitions, smart acquisitions, things like what they did with youtube. you buy a property, everyone scoffs at it and you figure out how to turn it into a cash machine. speaking of youtube, that continues to be one of the brightest spots in this business. everyone i

i think porat said we're getting to them. we're going to make money with our opportunities and it was a wakeup call to google who said one day we'll get to it. i do not want to be a major network and google comes in and writes the check for the nfl. >> and as you said i think a lot of the move that $65 agrecian in value was due to her value about what we are now watching our expenses. when i've spoken to people who own the stack, that's the key move. pricing was still down 5%. it's hard to find good growth stories. this is one of them. particularly in liquidity. that's always important and that helps a lot. but the talk on costs really seemed to have motivated a lot of buyers. >> yes. the multiple gone well down below the s&p's average stock, mobile versus a cereal company and the other thing to keep in mind, when she did the numbers and looked at it it's clear they have so much money overseas, they can find any way to get it back. they can do something. >> the cash balance is more domestic than some others. >> they have a lo

how much of this is porat and how much of this is the business this morning? >> i think it's some of both. you had her comments just a couple seconds ago. she came in and gave a real fire cracker speech in terms of what's going on and where they're going to take the company. as you mentioned, revenue growth is the way to think of it. to the right is more cost discipline. internally, there's a lot of things they can do better but by no means is this company in bad shape. i think when you look at the competitive peers, facebook growing 50%. that's going to come down at some point. google is still a top line grower, stable margins and with her cost initiatives, they'll probably even get margin improvement and mobile is a big driver here. pricing is getting a little bit better. i look at volume and the click number which was up 18% and accelerated. for all of the fear that facebook is the darling, google has been a little lost in the shuffle. google's numbers show they're in the meat of everything. >> a lot of us at this desk are old enough to remember that erik s

that's the next word that investors are hoping to hear from ruth porat is dividend.gle being a control company doesn't face the same kind of pressures to do that. do you think a dividend or buy-back would be more in line of what they tend to do first? >> a buy-back, i think that would be more like them. i think they're going to have a colony on pluto. they're not abandoning these ideas that they have, these moonshot ideas. so you know, it's interesting, it will be interesting to hear from larry page, in terms of what he thinks of where everything should be going. but it's definitely a more kiss palestinianed google, a more -- disciplined google, a more mature google. even though they control it, it is shareholders' money, they have to respond in some way. a lot of these tech companies just don't. amazon, others have not a history of not caring what wall street thinks. they really do in a lot of ways, especially with all of this competitive pressure. >>> our next topic, kara, gop presidential candidate jeb bush taking a new approach to a campaign event, literally. he

is this about ruth porat coming onboard? it sounds like a new google. >> she did tell wall street what they want to hear. i'm going to be a bit of a wet blanket on youtube. google shared numbers about viewership, particularly around mobile viewership they still haven't shared anything around revenue or if the site is profitable. there was no mention of the threat of facebook which is revving up its competitive video service. >> every party needs a pooper. that's why we invited you. >> porat did mention 50% growth from last year in terms of viewers. sara, it is profitable for your clients. tell us about what you do and how people make money off youtube. >> who are these youtube stars? >> we work with youtubers to connect them to brands and advertisers who are interested in joining the conversation. you are finding the brands and advertisers that want to work with our clients are those who understand you can't be talking at this generation. you need to talk with them. they are tapping into our stars and influencers to really h

the new cfo, ruth porat, says it is time to rein in spending.etails next. ♪ this is a great place to work. not because they have yoga meetings and a juice bar. because they're getting comcast business internet. comcast business offers convenient installation appointments that work around your schedule. and it takes- done. - about an hour. get reliable internet that's up to five times faster than dsl from the phone company. call 800-501-6000 to switch today. perks are nice. but the best thing you can give your business is comcast business. comcast business. built for business. matt: google shares are up about 13% in premarket trading after the company signaled plans to rein in spending. google reported earnings yesterday, it has been looking for ways to produce growth including projects that could sometimes be very expensive to r&d like driverless cars. bloomberg's cory johnson joins us now. what you think about this? ruth porat is looking to rein in spending. how serious is she about that? cory: it was only words. that is so unfair. it actually

>> ruth porat is a fantastic executive, long-time reputation with wall street.y're hiring people that wall street can talk to, kind of like hiring a trains lanslator in a way. snapchat slooking for a cfo right now. so it's an important function and a lot of the companies, cfos have a big role. at facebook, the one that just left certainly did. at google for a long time, patrick has had a major role in the operation. so they are important executives here. i don't think that's a new think, but it's a very important role in these companies. >> they've been soothesayers in the past week. so a position to watch. earnings parade has continued, visa, starbucks among those beating. pandora having a good day today. shares rallying after market yesterday and rallying today. shares topping expectations, thanks to solid advertising growth. you see the stock up 13.5%. on the conference call, pandora's ceo addressed the elephant in the room, apple music. with any big launch like this and the noise in the marketplace, there could be users that experiment with it and short-term

porat at google that's it. at walmart, amazon is thinking we'll take walmart down. >> let's talk about star bucks. getting a lift. revenue jumped 18%. some of the top line growth numbers are amazing. star bucks also added 50 million shares to the buyback program. they're going to buy back an additional 15 million. last night the coo spoke to jim about the company's digital strategy. >> we're seeing about 20 % of the tender in the u.s. is paid for through the digital experience and now we're seeing rapid adoption of the ability to order your food and beverage items from your mobile phone and have them paid for for pickup. in the next quarter, we'll start piloting delivery. the digital experience we're evolving for our customers is every bit as important as the in-store experience. >> it's funny. we talk about amazon. i keep making something of mmc mmc mcdonald's market cap versus star bucks. >> they happen to sell coffee. i say that because -- they're talking about the notion of currency. you can go to lift and

this is ruth porat's first earnings report as cfo. "we are very focused every day on developing big new opportunities across a wide range of businesses. we will do so with great care regarding resource allocation." that is one of the themes investors hope to hear more about on the call which starts in under a half hour. >> that was the key. they wanted to see how much they would cut costs. this has to be a good sign. google rallied into this report. it's up about 5% after hours. >> absolutely. this is exactly what investors want to see. we got a nice big beat on the earnings side on the eps side. we are finally going to get a degree of cost control. we all want to own google. when you have a sense their spending is faster than revenue growth, that is unsettling. to have ruth deliver these numbers is a big positive. she came in late may. this isn't just her up packet. the old cfo makes sure the new cfo starts out with a good quarter. this is what investors look for and why the stock is rallying. google outperformed the index materially

. >> you saw "the washington post" asked other scientists, people on twitter like ruth porat who respondedf them are sceptical. do you understand the skepticism? >> sure. that's the nature of science. that's the lifeblood of science. you always are skeptical of any new conclusion. and so that's not surprising at all. but compare it to the 1980s when i testified to congress. there was an overwhelming skepticism and criticism, and then over a few years the story changed. here there were a lot of people becoming very suspicious that the ipcc was underestimating the sea level problem. >> so here is the million dollar question, trillion dollar question. what do we do about it? >> what the science is telling us is that we have an emergency. if we want our children and grandchildren to inherit a planet which is not running out of their control, we're going to have to reduce emissions as fast as practical. as long as fossil fuels are the cheapest energy, people are going to keep burning them, going to find them, dig them up wherever they can find them, but we have to make them pay their cost to so

not that long ago we said it had not moved in about 18 months each though they put in a new cfo ruth porattonight we saw the trues of her labor and we finally got what i know i've been looking for, expense control. this company had been spending way too much without getting any results and now that seems to be in the rear-view mirror and that is why google is up big, and i've got to tell you something, i don't each think google is done. when you see stocks this big that's the beginning of new sponsorship and i always say there is always a bull market somewhere, and i promise to help you find it. i'm jim cramer. see you tomorrow! bugs... -(theme music playing) -i'll get it. -...scrubbing toilets. -that's it. -it's all in a day's work... -(revs) -...when you're a millionaire. these folks invest in hedge trimmers, not hedge funds. they turn d.i.y. into r.o.i. and thanks to hard work, incredible passion and a whole lot of mud sweat and tears. they've turned their dirty jobs into filthy riches. -smells like money! -tonight meet a concrete pourer who paved his way from a humble shed to a $4 mill

those changes coming amidst a cfo change with former morgan stanley staffer roth porat taking over the reins in may. rosenblatt's securities manager has a buy rating on the stock. joins us on the "fast" line. martin, great to have you with us. if i were to be a cynic when i read this news i would say google's cutting costs because it can't grow the way it used to. >> well, certainly some of you can read that on the surface. i think it's really going to be a key point when ruth guess gets on both the call on thursday and investor conferences coming up because i think there's still growth opportunities here at google and maybe the underlying message about controlling costs is just to spend it wisely and in the right places. you know, karen just mentioned about buybacks and dividends. i think a lot of people are concerned and interested in capital return. and i think her comments are going to be pretty telling. i don't think larry page brought her in just to do buybacks but that could be part of the story. they need to grow the company. they need to attract top talent because you know, as

ruth porat is not going to ride away any time soon on even the 30-foot.he 30-foot boston whaler it looks great. and the wife is saying why don't we step up. i said the expense of the wedding. the greatest day ever. >> we're going to get to a lot more after the break including facebook, a heavy day for earnings, apple, gro pro tonight. and an exclusive with the cfo of hulu. that new deal were "seinfeld." we're talk about the new triple digit. we'll "squawk on the street" in a minute. >>> facebook is nearing $100 a share in the premarket. a market cap of $275 billion has now overtaken general electric. analysts raising it. and the it's the best performing sector in yet's session. tonight we'll get apple, microsoft, growo pro and yahoo. some saying video per user up and among some ad buyers instagram is 10% of the ad budget with facebook and we haven't even gotten to the political season where ad expenses are expected to jump. >> when i talked to the ceo of dominos, i said i know you're putting money into social media. i said will it -- facebook, the return,

ruth porat is someone who people say is not proon expenses. >> we talk about the fact that these arenaled companies whether -- controlled companies. when they are spendings, they compete for talent. a lot of the way people are compensated in silicon valley is the stock. it has to move up. you may see a response from google in that we have to make sure that we're competitive when it comes to issuing stock and our employees are happy in that record and maybe we need to start cutting out a little bit in terms of some of the moon shoots. there are plenty of them. >> we don't talk enough about that. my kids are graduating schools and you see that the number one kids in the country are computer science, if you can write code you're going to be big between facebook and google. the sales force wants you. computer engineering, amazon wants you and spacex and walmart. and these are -- there's not that many kids. i wish we could go to inner city schools and teach them code writing. i don't know anything about it. i have someone program my watch. but there is without a doubt, a dearth of talent

one big thing for google was ruth porat saying we are looking to digest some investments we made overmatter of emamazon deciding to digest? did it happen some revenue came in more than expected so this is a one-time thing? in the way they guided they certainly guided aggressively in a way that would suggest a profit is possible. revenue guide is healthy. range on operating profit leaves the possibility of up side there as we head toward the holiday season. you want to hear what they say about prime day and whether those record number of people who tried prime are sticking around. that will bode well for back-to-school and the holidays. >> thank you, all of you, to discuss this. >>> the earnings keep coming. >> here is another big mover. we are talking about shares of juniper networks war up 10% or nearly half a million shares worth of volume. coming out with earnings of 53 cents a share. that handily beats average analyst estimate of 40 cents per share. revenue coming in better $1.22 billion. analysts looking for $1.11 billion. they offered stronger than expected q-3 earnings per shar

ruth porat, she joined at the end of may.e wonder if she'll say anything about capital insurance. google hasn't traditionally done that but will they say anything about capital return. what will they say about cost controls and discipline. expecting some of that out of her. also something called mobile getting. google basically started my or advertising mible inging mobile sites that are mobile optimized in search results. around the end of april adobe numbers out yesterday showed that there was an impact where there were fewer clicks on ads in mobile. higher prices for those ads but a lot fewer clicks. how will that shake out? will revenue come down because of that or will youtube results actually have a benefit beside that. then of course the currency headwind. a lot of things to watch for in what they talk for in these google results. >>> today's "powerhouse" is next. it is ranked the sixth largest city in the u.s. home to more than 200 golf courses. can you make that city? plus we usually showcase a celebrity house but th

and google with a new cfo at the search giant, ruth porat will be in the spotlight.to see if google returns some of the $64 billion in cash to shareholders. google stock in the green so far this year but down 10% in the past 12 months. simon, back to you. >> a misty morning in san francisco, josh. thank you, still one more chance to strut down the alley before the holiday weekend. jon fortt sheer with more. >> we'll be talking facebook, a strong move they're about to take versus youtube. >>> and mike gereman of 9-to-5 mac is here with a ridiculous detail into the next iphone and transportation secretary anthony fox will be live with us on "squawk alley." you total your brand new car. nobody's hurt,but there will still be pain. it comes when your insurance company says they'll only pay three-quarters of what it takes to replace it. what are you supposed to do, drive three-quarters of a car? now if you had a liberty mutual new car replacement, you'd get your whole car back. i guess they don't want you driving around on three wheels. smart. new car replacement is just o

. >> ruth porat is chief finance aol officer. she is controlling a lot of costs.is all about advertizing revenue. advertising on youtube is up. mobile search is up after they made the prioritization to mobile and paid clicks up 30%. those are real hard numbers. stuart: clearly helping the nasdaq which i believe is now at all-time record high. 5193. any advance on that? maybe so. we're up $84 a share right now on google. let me transfer to apple. they have filed for a patent that would let them show you ads based on your credit score. gerri willis covers personal finance. what do you say about that? >> i think they have broken their promise to consumers. i'm not happy about this, not one little bit. tim cook recently criticized others in the tech world saying they lulled customers into complacency about privacy. what are they going to do? will they post my bank balance on their servers? is that information to be shared everywhere? i don't like it. stuart: it might be good for the stock. >> i'm more concerned about my privacy as a personal finance expert, okay? stua