is it google's fault? does it undermind confidence in them or have to do with the way, you know, documents are filed? >> somebody messed up. we'll find out who messed up, and whoever did will be whipped and punished, but, you know, sometimes people make mistakes. >> we are getting a lot of reports, the jobless data's been squirreling. we use that word to describe it, and now we have earnings reports that the numbers are likely trust wore think, but the -- trustworthy, but we in the media, the way we get information is disorganized lately. do you get that? >> i thought funny was a good word. some is fairly amusing. i think there's a big difference though, and in the economic data , there clearly are politicians who want to take this set of numbers that makes it their point best and focus on that set of numbers, and there are clearly different ways to interpret the economic numbers, and i actually am a fan of jack welsh and agree with welsh's premise that the current unemployment rate reported is totally bog

and google, there's google. as far as the amount of draw that google has and the fact that they are the biggest dog out there, unfortunately today we're looking at them as dog, period. not just the biggest dog but the dog with this kind of result. how they could get to such a low per-click rate is somewhat astonishing, especially since we have the heavy spend with political season and all the rest. that's the big shocker to me. >> tech is a catch word for everything that relates to technology at all. so to me, as i mentioned before, google is more of an ad model. you really have to pick your spots. to me, i hear this and i hear about android, all the activation. i think that's just great for qualcomm, great for broadcom, great for skyworks. out of this carnage you have to look at where there's opportunity. >> what about r.r. donnelly itself? can you shed some light on this company? it's taking a pretty big hit. their website right now -- i'm quoting directly from the website -- they have more than 60,000 custome

donnelly and google. lots of angles here. r.r. donnelly's market cap is $1.9 billion. by my back of the envelope math in the commercial break, google lost $21 billion, ten times more market cap loss than r.r. donnelly has. if you owned google, are you going right after r.r. donnelly on this if it is true? >> i'll tell you what. since i was a practicing lawyer, i'm going to call my legal background here and say that in january of this year, google announced earnings. they were supposed to be $1050. that was consensus. they came in $950. not very dissimilar to what we have here. at that point the stock dropped 9%, proceeded to drop for the next two days. if i'm a lawyer looking at this, i'll say what were the damages. why was it the early release? google did announce they'd release earnings today at 4:30. maybe have you something there. i just don't think it is enough. it is a nuisance suit. undoubtedly they'll sue. it it s a nuisance suit. after they announced earnings, it traded down for another three day

there's a look at google. the stock was -- the company's respected report earnings after the closing bell today. and as you can see, a big miss from google and a big decline for the stock today down $54, that's a decline of more than 7%. brian sullivan's over at the breaking news desk with more. sully, as i said, early reporting is one thing, this is ridiculous. >> i have no idea what happened with google, i'm sure we're going to be digging into this all day. they are out here, the numbers. as you noted, scott, a huge miss on the revenue side, eps, maybe even worse. they missed by $1.62, eps coming in at $9.03, revenue did rise 19%. a big miss on eps, you can see that stock is getting absolutely walloped, down $61, as to the inards, we'll bring you more. everybody's calm here, we're fine. >> well, what's interesting about this one, we've talked so much about the stealth rally in google, the stock's been up 30% in some three months, and look, you warned us earlier today not to buy this stock ahead of the number

google's earnings surprise. they hit the market hours ahead of schedule and they were well below expectations. >> susie: i'm susie gharib. another summit underway in the euro-zone aimed at ending the region's debt crisis, but squabbling between germany and france could derail progress. >> tom: and how one manufacturer is pairing with a local college, developing its next generation of workers. >> susie: that and more tonight on nbr! >> tom: it wasn't supposed to be like this for google. falling advertising prices, disappointing profits, and a mistimed earnings release. the internet's go-to search engine surprised the market this afternoon when it reported its third quarter results. they weren't expected until after the closing bell, but instead they were released-- without authorization, according to google-- by the company's financial printing company. it wasn't a pleasant surprise. google earned $9.03 per share, down from a year ago and $1.62 below estimates. yes, google's search engine continues to see more us

yes, google's search engine continues to see more use, but the prices google charges for its core search advertisement product fell. the number of times visitors clicked on search ads was up 33%, but the prices advertisers paid for those clicks was down 15%. >> the inventory how it goes the more clicks there are going to be, the lower it will cost people at the end of the day. >> then there's google's newest division >> tom: then there's google's newest division, motorola mobility. in may, google spent $12.5 billion for motorola's cell phone business. while motorola added more than $2.5 billion in sales in its first full quarter with google, the division still lost money, more than a half-billion dollars. because the news wasn't expected until after the close tonight, trading in google shares was halted for two and a half hours. it restarted with less than an hour before the closing bell, and the stock fell 8%, closing at a five-week low. james dix covers google as an analyst at wedbush morgan. james dix joins us at the nasdaq. i want to start with the ad rates, four quarters in a row go

for google. first, i found the paper very helpful. very helpful in explaining how google works, what the nature of the market is, what the various mcnisms available for competitors against google are. it's paper and i recommend it to all of you in the audience. i've been watching this session on c-span and they -- the panelists are good. but they spend a lot of time showing the audience. so i think i've seen all of you in the audience. and i'm looking -- right now on c-span is showing the audience. so it's been great. and you didn't even get me a seat. they got a side camera that shows there is no seat there. you took the seat away. at any rate, the paper is very helpful in that regard. i think it's thorough. very useful for thinking about the various criticisms that goosm's competitors and others -- google's competitors and verse have made about google. i urge you all to read it. i have one principal criticism of the paper. and i hesitate -- i really hesitate to criticize the paper by bob bork a

well, google may be the most googled word on wall street today. we're going to take a closer look at how the stock has affected the broader market. >> joining us now to talk about that is mike tchael far. you own the stock. your firm does. your portfolio as well as yourself. what do you think? as a shareholder owning google, what's your take on when went on today? >> the premature slip, that always concerns me any time i hear it. overall, as i take a quick look, i am not really panicked. we had reasonable earnings growth. the motorola division seemed to be the cause of the loss. paid clicks were up 33%. that's off a strong up 28% year over year comp. so, i mean, it's not a disaster here. it's not a particularly expensive stock. i still expect mid-teens ea earnings growth, i think, over the next few years. >> but costs per click were down for the fourth quarter in a row. we're finding the currency translation is a problem. this is a multinational corporation now. they're finding trouble overseas right now, i guess. >> well, i guess so. the currency

you go apple, google. i say google, i'm wrong. i also told you i thought google monday tieses mobile better than anyone else. if this is monetizing mobile better than anyone else, this is a big problem for the monday etization of google. this is all about ovals shifting quicker. >> i think we need to address an incredibly serious issue not only for the googles of the world, but the facebooks of the world. larry page said something else interesting on the call. it's growing and causing disruption in his words. disruption for him, for his company and for everybody else. the question is, are people adapting to mobile devices at a faster pace than even google anticipated they would. and the fact of the matter is, they're not prepared to deal with it in the same way -- >> it's moving so fast. i have to watch the younger guys in my office to tell me what's going on. they're past what's going on in google. i had a meeting last night with somebody who was so far beyond what i have seen going on on this machine right here. >> the world's p

so if you're google, let's say you're google and r.r. donnelley messes up releasing these numbers and this happens. what do you say to r.r r.r. donnelley? >> well, you know, it all depends on the reason, and they haven't said the reason yet. they went very early. the numbers weren't what people thought they were going to be. it certainly had an impact. as wonderful as they are, they cannot handle this kind of a liability. i can't imagine you want to put them out of business. perhaps you say you're fired. >> that's what i was hoping -- that's what i was waiting for, donald. >> it just seems like a natural. i was sort of set up for that question, i think. >> you were set up. a huge company like google fumblings -- fumbles on earnings, what does it say about everything else? >> the world is very complex. if you look at facebook, where i actually just went out and bought facebook. i think it was 19 something. i don't know if that's a good deal or a bad deal. i'm not sure what future it has. certainly it came down from 42. i guess it came out

that helps google. that's the easiest way to reach consumers with their smartphones and smartphone usage is going up a lot. the problem is that people don't buy as much with their smartphones. so the cost per click that google gets was down 15% on a reported basis, 8% if you exclude foreign exchange. so that will be something which they continue to try to work on to try to improve the monetization of mobile because mobile is enevidentable both for google as well as the rest of the online industry. >> you talk about longer term the economics of paid search advertising could suffer from what you call paid attention market. what do you mean by that? >> i guess kind of one thing i'm talking about there is that over time, the most -- google talks about search being the most monetizable moment on the web. that's because consumers are actually indicating through a query that they're in the market for a product. at take points consumers are valuable. right now the only value they get is free searches and free a

google,:30 p.m.. less than an hour from a conference call with ceo larry page answering questions about why and how this happened and earnings were supposed to come "after the bell" but they did not. stock plummeted and had to be halted. they had a mess on the top and bottom line and if we look at the stock you can see while coming back slightly it is still down 8%. we will be right back with much more. dow jones industrials down ten points now. 4g lte is the fastest. so, which supeast 4g lte service would yochoose, sed on this chart ? don't rush into it, i'm not looking for the fastest answer. obviously verizon. okay, i have a different chart. going that way, does that make a difference ? look at verizon. it's so much more than the other ones. so what if we just changed the format altogether ? isn't that the exact same thing ? it's pretty clear. still sticking with verizon. verizon. more 4g lte coverage than all other networks combined. liz: nicole petallides is following the google story. how many t

on google's page. there is only a limited amount of space that can come up on a page. so it is not possible that every competitor that thinks it is essential to be on google's page can be accommodated. so it's not clear how such a remedy would be feasible, even if you thought that it was necessary. necessary to do this in order to improve competition in way that would benefit consumers. in any event, the u.s. courts have been very reluctant to buy into the essential facilities and the theory that the supreme court has taken pains to say that it is very unlikely that an antitrust claim against google that sounded like facilities case would ever succeed in court. i think i better stop at this point. because i have used more of my allotted time. >> greg, thank you for an excellent presentation. in addition to airline deregulation, we continue working on telephone deregulation. what i'm going to do is mix up your view here. we are going to try to get some insight in to get back together with you. >> and yo

>> i work for google ventures. >> rose: that's not google. the point-- google ventures is not google all the time. >> right. >> rose: okay, so, do you believe an offer of $6 billion or more was made for groupon. >> i can't talk about that. >> rose: kevin, help me out here. >> i wasn't there at google at the time. i believe it happened. i mean, clearly --. >> rose: thank you, thank you, great to see you. >> thank you. >> rose: back in a moment. stay with us. bridgity lacombe is here, she is one of the most admired and respected photographers working today. she is also a great friend of this program. her work spans nearly 40 years. she has shot everyone from nelson mandela to meryl streep. when directors like mike nichols, david mamut and martin scorsese want someone e ithpe ,t thesshe rshe is the person they call. her latest projpet is ya,, arab women in sport, a collection of photographs from lacombe and video interviews by her sister the filmmaker marion. i'm pleased to have brigitte lacombe back at this table. welcome. >> thank you. >> rose

google brought it down. dave: look at the vix because the volatility index, all of the stuff that has been going on, you go on marketwatch and see stories about a 1987 like crash, 15 is one of the lowest rates. it has gone to the 14 level but is still exceptionally low, the volatility index. perception from the volatility from the vix is smooth sailing despite the fact we have these bumps in the road to mix metaphors. liz: natural gas futures closed sharply lower as traders took profits and forecast milder weather. dave: earnings season is in full swing. we are about to get the results from microsoft and capital one, what a big day. google reporting a surprise earnings miss. we bring the earnings conference call and hopefully larry page will be on it. even if he has a sore throat. that begins in 28 minutes from now. liz: can't wait to hear what happened but whatever numbers came out early they were correct numbers. we will talk to former intel ceo and chairman craig barrett who will tell us why education is

google. more than 66% of queries in the united states, 75% of search -- now of course we are seeing a big migration in all of my -- google owns mobile. here in america, more than half of the smart phones run on google's operating system. unlike so many other -- hey, hint, facebook, google call it coming and they have been giving away the android operating system for yearing. google's business sells mobile display ads, last year they captured 51.56% of the market. and google bought motorola. and on top of everything else, google as -- and they own youtube. see all those new tv shows popping up on youtube? i think that percentage goes bigger going forward. and that's just in the going forward business. google is truly a -- international sides of business growing rapidly. google is a thing of beauty. no debt. i am also a believer in management. i remember when co-founder larry pace took over in december of 2011. the guy's done a great job, extreme lining the company. even though google is the $7

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at the top of the page, google lists many restaurants with links to reviews. google reviews. click on any one of them, and you're taken to a page on google plus, the company's social network. you can then read an in-depth review from zagat, a company that happens to be owned by, you guessed it, google. this may not happen all the time. in fact, sometimes competitors will come up first. but the complaint is that google often drives traffic to its many services and products depriving other companies of a level playing field. >> when a company begins to get a huge market share so that they seem to be able to control competition coming in and out of the field, this is something the government looks at. >> reporter: as google points out, they're providing useful information and for free, and consumers don't seem to be complaining. but there's a ton at stake here for google. from lawsuits to fines to possible changes in the way it operates, all of which could be costly and time-consuming. google says it just wants to create products that delight its users and that competition is ju

>> they are yelling about google. google came out with earnings now here at lunchtime. take a look here. down $44, a drop of 6% right now, and they are all, obviously, following google closely. the chart shows you the disappointment of shareholders as it was shy of the estimate, earnings was supposed to be $10.65 and revenue at $11.86 billion so missing on both the top and bottom line for google. right now, 712.78. we continue to kohl it, quarterly report, but we are looking at the revenue as well. big picture here, paid clicks rose 6% over the quarter. that's interesting there. you know, i have to say it's coming out fast and furious, but long and short is google misses top and bottom line and comes out early up expectedly here at the 12:30 while they were out to lunch. they thought it was after the bell. >> they were supposed to report after the bell? do you think it was a mistake? do you think they say, oh, let's take the hit while it's trading. seems like a bad decision for investors. >> i can't imagine google decides they just release like that. i mean, it doesn't

on google people have been shown to be very, very honest and by analyzing google data we can often get a more revealing picture of the electorate. >> and how do you analyze all this data? >> computers, statistics, maps, etc., and plug it in there and see what happens. >> now, you made a link between google searches and votes actually cast for barack obama in 2008. >> yeah. one the places google searches actually are most useful, i think, is in predicting turnouts. people don't like to admit that they have no intention to vote, but people will type in google how to vote, where to vote, voting locations. this turns out to be a more accurate predictor of where turnout is going to be high or low. in 2008 we could get a strong predictor of where turnout was going to be high, and some places, for example, where african turnout was very, very high and it really, really helped obama, that would have been clear on googm. >> you found out something interesting about where votes were low for barack obama, didn't you? what was that? >> there are a couple of things i found. one is the effect of rac

you had google yesterday coming out -- i know that coming out early got all the attention from google. but let's be realistic. if the coming out early was the only part of the problem, google shares would have rallied once the stock began trading again. the problem was not with the coming out early. it was the numbers itself as we learn now. people are spooked about mobile. they are spooked about the constant slowdown in pc sales. right? because the only thing that seems to be working are ipads and smartphones. computers aren't selling. mobile search is slowing down. it's tough to monetize and people on the desktop are simply not there like they used to be. however, i know the market has been down big the last -- today and the last couple of days, as evidenced by this chart. but let's put things into perspective. okay? this is a year-to-date chart of the nasdaq composite. so you could see we had a big run up through april. kind of typical summer swoon. listen. technology, as jim cramer has said very, very often, goes in cycles. technology tends to cycle especially heavily into the fou

google fusion tables. >> if you you do google se like sec, you get to google secrets. >> i'm talking about yesterday. >> i know. >> take off the s and put up. >> nothing. >> i guess they don't admit -- anyway -- >> joe kerr then. kernen. >> a lot of stuff comes up. no, just really good pictures of my hair. >> it is time for the global markets reports. kelly evans is this london. >> she's all business. >> andrew, joe, becky, hi, everyone. you guys were just talking about google and actually the impact of their early results release and the fact that they missed really has been felt around the world. asian stocks were lower. and if you take a look at the stoxx 600, we're shedding about 0.4%. to be fair, it is a lot of the banks which are among the weakest performers. but it has reverberated around the fwloeb. european bourses, not a ton of movement here, but the ibex 35 is the underperformer. this is basically the exact opposite of the move over the last week or two where the ibex was leading rest of the sector. eu's latest summit didn't conclude with anything big transformative, but t

then the bombshell from google. >> from google. hasn't been a great earnings season. just under a quarter of the s&p 500 reporting the results profits remain down. revenue growth there isn't much. the blended results which combine forecast for companies that haven't reported and results from those that have show profits fell 1.8% last quarter. the actual results from the 160 s&p 500 members show profits off 3.7% from last year. now coming in to the earnings season analysts forecast the s&p quarterly profits would fall 3%. first decline in three years behind the expected slide weaker global growth hitting material and energy companies especially hard. and while the final profit tally usually exceeds expectation because of cautious corporate guidance the early read on the bottom line doesn't look promising. with just over 60% beating forecasts slightly less than the quarterly average a smaller than average percentage matching forecasts and larger than average percentage missing. so far financial profits are coming in better than expected. that's a bright spot. material

i don't think google in the short run trades just on what google fundamentals are. i think it trades with the rest of the market. if we see technology continue to slide, google probably slides with it. if technology just flattens out a little bit, and the rest of the market still continues to outpace, i bet google probably goes up a bit. but it's really, like i said, i wish i had a better answer. we are right in the middle of no man's land. > > do you think there was a lot of overreaction to the move yesterday in the market? because this is rare for a company to come out early and miss like that. > > it was very weird. it was odd because if they had come out after the market like they always do, like they should have been, i would have felt we would have seen a much bigger drop in the stock due to the lack of liquidity. so the fact that it was "leaked" out i think really helped keep some sort of support in the stock. now, it's an imaginary support line, and again, that $700 number doesn't really mean a whole lot, other than that it's a whole number. so it's really,

google, if you haven't been there, this is the original home page at google launched, and google if you're looking carefully was a much more excitable company in those days. there's an exclamation point at the end of google. they were excited to be bringing their power to the web. the data model of google, and that's one thing to want to focus on, because there any transition on how they approach data. the data model of google was this idea that they're going to send out google bot and look at the web to look at websites, index and then to rank those and return those search for them. the page rank, patented algorithm that larry page invented was at the heart of the. that's the data model google starts with. i think what google did is what you hope congress will do. again, i agree with greg on this completely. they went out and built a great product. and that's what we want to see people do. and the absolute best way to acquire market power in a way that jeff talked about market power which is exactly the right way to do it. set prices above cost. the best way to acquire that market power i

google is only up 17%. but the real reason these stocks will be anointed is their genuine high growth names in an environment where because of the slowdown worldwide there are very few real growth stocks out there. sure, many stocks rat 252-week highs. but google and amazon are barn burners. they're so obvious that they're not going to be ignored. every fund that already owns them will be double do you think between now and the end of the year if history is your guide. plus, you got a nice google reversal today, which gives you a chance to do some buying. the charters are going to be calling it the son of apple. they're going to say this reversal today is now the beginning of the big decline, like it was with apple. hey, can we just decide that apple and google are different companies? why don't we start with this amazon. we know that this company is oriented in online retail powerhouse, the widest selection of products, lowest prices, fastest, cheapest delivery. amazon is a beloved company that has cultiva

well, now google is giving us a look inside. cbs 5 reporter kiet do shows us what is behind the curtain. >> reporter: with all the security, barbed wire, surveillance camera and even retina scans, you'd think this place was housing something extremely valuable. well, it is. your private information. google took cbs news on the first and only tour of a place that for years they denied even existed. its data centers. this one in north carolina is one of twelve enormous facilities spread throughout the world. when you enter a q it -- a request, it first gets routed here. data is backed up twice on more than 55,000 servers. critical data is backed up a third time here. >> it's amazing how all of this works, and that it works at all. >> reporter: google has taken a hit in recent years, because the data centers consume huge amounts of electricity. the company has been making strides, cutting back on air conditioning. >> we estimated we saved over $1 billion in the history of google, through these efficiency measures. >> reporter: goog

even though google is the $758 stock. but google gets insanely cheap. 20 times the numbers. here's the bottom line, google and amazon have been anointed. so believe me when i tell you that growth center managers are going to keep buying global management stocks, i -- try to go out three months from now, maybe four, that's the strategy i had voe cat getting back to even and actually having going it. why this way? because funny thing about momentum, if it does reverse itself, if something disappointing happens, these two things become the -- allow you to capture the run to your end, but if something goes awry, you'll be stopped out at a level that will be far higher than where a blown up momentum stock will ultimately fall. >> hey, jim, i want to ask you about netflix, it's an aggressive part of my portfolio, i bought it at $8.65. >> there's a lot of people who have to say that netflix just got too beaten up. i subscribe to the $100 stock. but i would only do the stocks in calls, i would not do it in common. this could be like green mountain if they screw it up. green mountain

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google and facebook. what with do you like in terms of the technicals. >> i like google, but let's look at facebook. you don't have to be an expert to know this does not look too good. a lot of clients say we might be puts in a base. is that true? i don't think so. i think we're setting up for another leg lower. the reason i say that is the simple issue of supply and demand. when facebook came to market, a lot of shares flushed the market. not that much demand, pushed lower. you moved ahead to november, we're also going to see another lock expire and more shares hit the market. with no demand, we think it's going to go lower. >> so both. you want to be expecting lower lows here. >> yes, exactly. >> is there anything you would say, you know, represents some kind of a buying opportunity that you would say, okay, now might be the time to get in on these names? >> i wouldn't be looking at facebook until it drops under 15. >> wow, 15. >> i do like google. i'll tell you why. yes, the bears having running rampan

a lot of people pointed to google this morning and said google turns around and rallies. perhaps the google numbers are very currency related and that the stock might bounce and i think the people i talked to said google actually breaks down and starts going down today that's a bad sign for the market and that's a bellwether people have been watching and as google is now down close to ten bucks that's scaring people as well. >> i think what's interesting also, steve, is the fwuargument for the bulls worked for them earlier in the week. retail sales pretty good. philly fed not a disaster. not that those stories have gone away but they are not carrying the weight. >> but i think it harkens back to what i said earlier valuations have been based on excellent corporate profitability, increasing profit margins, companies able to exceed their revenue estimates. so you're taking away a major prop. the other major prop which stays in place which is going to help is incredibly easy money. you got these central bankers doing quote-unquote whatever it takes and that is going to, that