is alleging theft of -- >> explain that. >> wamo is i don't think it is a terrible name. >> i wouldwamo is renamed goolings google self-driving car unit not part of google now but part of alphabet a better bet. but wamo has sued Über because it says that anthony who worked as engineer for the goolings self-driving unit when that's what it was called left. sold for $640 million quickly to Über, and they are -- they alleged this was Über's way of stealing their technology and e in this is that this hangt happened yet but if next step qowb that fraudulent behavior not merely -- stealing of trade secret. >> and didn't sue anthony but Über and more assets and to knock them out of the box. >> yeah. well and because maybe they did something wrong. they know crazy dngts matter. >> all sorts of ways to do something wrong. >> also it is an Über has tried to settle to go to mediation, judge disallowed that. Über actually would rather write a check and my only point is that -- google alphabet doesn't seem to be interested in receiving check. >> google need money does he. right. they're kind of

so it is quite serious because wamo is six -- saying theft. it is there renamed itself driving carbide google now it is part of the alphabet but wamo sues uber be consistent says anthony was the in junior and then they started a new company and they allege this was uber way to steal the technology but what has not happened yet but then the next step is that it is a fraudulent behavior not just trade secrets. >> but they also sued uber. >> that was to knock them out of the box. . . and i said you don't usually sue people and i said that you are suing uber and she said that's different. i think they are intent on taking this down to the wire. all this does matter in terms of what's going to happen to this company. they are in much more serious trouble than most people knew. when you started the book it was like look at this bareknuckled startup that's changing the world and its pugnacious in your face ceo such a character kind of thing. tell us what you are thinking. >> guest: when i started thinking about it was 2014 and what i was witnessing w

it's incredible when selling began, nobody thought about wamo, or its data centers. was it a perfect conference call no but has the cfo suddenly become untrustworthy? are you kidding me i know the sellers aren't done they always come back the next day, because they couldn't get their selling done today but there's too much going right at this company to abandon it right now. more on that later in the show you need to have some faith in company's manage teams that have delivered endlessly, or you'll never be able to buy stocks at a discount these four are giving you bargains i think all four are worth buying into weakness, starting in tomorrow's session. i'm going to dennis in michigan. dennis >> caller: jim, this is dennis calling. got a question for you i'm looking at the airline stocks, and the last month they've been down over 5% roughly. but the oil prices are low and the capacity seems to be pretty well off what are your thoughts on the airline stocks like delta? >> all right, look, listen and listen good. there's only one that's going to come out on top. even t

for amazing things happen around the clock and lo and behold, all you have to do is share a post and wamo, you'll be showered with fabulous prizes! have you ever been showered because of something you did on facebook? >> i didn't think so. >> sweepstakes and giveaways, here's one that had verified written all over it, literally. loads of free stuff, trusted and verified giveaways and freebies. right. we have two separate questions about sweepstakes pages on facebook. two women asking us if world of free stuff and women's corner are really offering tiny homes, cook ware, trucks and jeeps for free. so first we dug in to this world of free stuff page on facebook, turns out they're creating a whole network of other facebook pages ha host memes -- that host memes, quotes, and prizes and then sharing those posts on its page. what they're doing is building a news feed to make itself appear legitimate. there's no trace of world of free stuff ever announcing the prize winner. so bam, false. i can winning anything on this page. i verified researchers entered the sweepstakes, below this meme, this t

we asked an analyst why not be a little more self congratulatory on wamo, for instance?e said because it's early is it really early >> well, it's funny. and some sense they've been working on self-driving cars longer than anyone else has and in another sense it is early days i think what google is trying to do is just be careful about not getting the cart too much before the horse. the stock as you know is already in advance of earnings last night was already up significantly on the year. i don't think there's too much of a need for them to be touting technology that's they might not make real revenue on for the next couple of years, particularly while the core advertising business is still so strong these are very high margin businesses the kofl the costs are up incrementally i see no need to get further over their skis. >> you're a former google guy. i'm interested in your perspective a little deeper on the traffic acquisition costs. it seems to me like part of google's approach is to try to control those type of costs as we move into the next era, part of what makingh

. >> reporter: but when the institute shut down in 2013, wamos was left with $15,000 worth of student loan debt. e e institute later admitted to falsifying grades and attendance records to qualify for millions in federal aid. momos is among thousands of students with student loan debt from for-profit schools due to predatory practices. under the obama administration, a regulation known as the "borrower defense rule" was created to protect students. massachusetts attorney general maura healey. >> it provides relief to students who have been victimized by these predatory practices. >> reporter: the rule was supposed to be implemented this month, but is now being delayed under the new administration. a spokeswoman from the education s partment tells cbs news "the borrower defense regulations suffer from substantive and procedural flaws that need to be considered before posing new burdens on regulated parties." eris week, healey and 17 other democratic state a.g.s sued education secretary betsy devos. right now 50% of student loans in default in the u.s. come from loans to for-profit scho

when do you think we'll see other bets start to be more meaningful >> we talked a little bit about wamoriving car and their investle in that that's going to be one of the big x-factors. that's more in a 2020 type of timeframe. they cut spending dramatically, down 50% waquarter on quarter as expected. they're pulling out of the finaler oafina fooib fiber other bets category. 5g, eventually we'll have internet access in our homes just as fast as broadband through wireless that's the bigger play google hasn't said as much about what they're doing there that's one of the structural takeaways from the call. >> give us a grade for alphabet's quarter, gene no great inflation here. >> no great inflation. b-plus would have been nice to see more upside overall, the story's in tact. >> all right gene, thank you. gene munster, founder of loup ventures "fast money" mvp, giving alphabet a b-plus. >> i think it was as expected. revenues better. core margin a little lighter b-plus overall again, the overhang keeps me away from the stock for the near term the overhang makes me not want to step in and bu

their handsful there with that executive search it's also in the midst of an ugly legal battle with wamoformer employee stole secrets related to a autonomous vehicle technology guys, back to you. >> all right, josh, thank you. >>> tech starting the second half in the hole here. down .3% we'll see if that is how the quarter goes as we get going >>> cnbc iq 100 undergoing the rebalance today. outpacing the s&p 500 year to date let's get down to bob pisani for a closer look. >> thanks very much. that's right remind viewers the cnbc is a measure and grouping of companies best leveraging the pro pry takery innovation for profit several major tech makes it, names, of course, are leading that charge including oracle and microsoft. let's bring in the man behind the index, david martin joining us from melbourne, awe stral gentleman. david, thank you for joining us. the cnbc iq 100. the goal sin ovation i guess the question is how exactly do you measure that? >> well, bob, listen, the core measure is not just what companies are spending money on either an acquiring technology or building in house

he is would prefer to hear ruth talk about things that are working, specifically wamo and the competitionith uber and then how youtube is monday he tiesed >> as opposed to saying we're getting it straight and taking care of costs, that's been her message since she got there. maybe focus on growth. the knee jerk reaction so far in general to earnings reports has been skewed a bit negative we'll have to see if that change this is week you've been getting a punished a lot more for missing than you've been benefitting from beating. >> as you pointed out last week. when we come back, kara swisher on the big tech earnings headed our way. alphabet and facebook later in the week and amazon. her interview thwi cory booker on why he's worried about tech companies getting too big. >>> welcome back to "squawk on the street." as you can see, there markets mixed with the s&p 500 financial sector the only one in the green holding on to marginal gains at this point this week head of that fed meeting we have coming up. the regional banks like citizens financial and key corp, regions, m & t bank up around