Getting hit even though earnings and revenue topped estimates. Shares were up more than 14 at one point yesterday afterhours but started to fall during the call and down about almost 8 . Some of the drop probably attributed to investor concerns over the direction of the advertising portion of the business. John, display ads, decelerating faster quarter on quarter and the stock chart looking at it afterhours its like a roller coaster literally. Feels like they did the math, investors anyway figuring out okay, they raised guidance but when you consider that there was this benefit from them integrating in early, that basically goes away and it ends up being a bit of a guide down based on what youd expect sequentially and then yes, this display advertising thing, premium display, weve seen the impact programmatic, linkedin was one of the first to single it out a quarter ago, it hit yelp, hitted linkedin in, too. They have a diversified business. This isnt all of linked in by any stretch and their core business was doing well. The evaluation of a company like this and overall what its Growth Prospects are, now you have to figure out okay, given that the advertising business isnt growing as fast as expected what is the rests of business going to do. The other part of growth is decelerating. Linkedin expects to do 50 million more in revenue from lin linda. Com from the rest of the year so thats driving the upside in terms of productions. After linda contributed about 18 million in sales over the quarter. Kara we dont ask you too much about stock and price action but how are you supposed to trade these names, given these, this collision of metrics . I dont know if its a collision of metrics. Its wall street acting the way it does. The company they bid up like crazy and got a growth multiple on it thats insane and when they dont grow in the way that wall street makes up the way it should be growing they get hit. Now theyre starting to buy companies in order to buy revenue which is what everybody does. Yahoo has done it, not very successfully and everybody else does it, so when youre valued as a growth stock and not a growth, youre doing well but youre not doing crazy growth, you get hit by it, and advertising everybody knew was coming, if you didnt see that train then you deserve to get hit, but i think its, you know, this is becoming a more or less Fast Growth Company and thats where jeff weiner has to find new businesses to move into and why hes buying things and trying other things. Kara, im curious, the sales force was an issue last quarter and they had to do some retooling to get new people in on these new territories. We heard something about sales force from yelp also, having to compete with unicorns. What did you hear in the valley and bay area in terms of demand for salespeople and the extent to which theyre able to achieve the results that some of these Companies Want to see. I think its difficult. Theres a lot of companies out there, theyre competing for talent for sure, and at the same time theres a sense that, you know, how high can these things grow, to the sky, and thats the issue, is that everything has its growth limits and the question is can they find new and creative ways to find growth. The companies are all valued and if you think about it, linkedin is a grandpa compared to the, and its not, its a very new company, but compared to all the unicorns and thats where focus shifts and the ubers of the world and the air b bs growing at enormous rates the comparison is not a great one for linkedin. Baby unicorns. Infamously volatile on earnings. Yesterdays action was not a big surprise in a way. Next up, kara, apple. Nomura with a buy, price target 145,shars are down slightly with continued news about, you want to explain kara with these apple tv rumors or reports are all about . Its not rumors. Theyve been working on it and they were late. Weve written it a million times, here it comes, oh, no, not now. Its going toment could, not now. They were focusing on the watch i guess and delayed the apple tv upgrades and its a device theyve had around for a long time, the last upgrade i think was 2012, thats a long time. Theyve been trying to cobble together its streaming service which its difficult to be doing that but they want to get into that business and so i think theyre delaying the streaming service again and doing the device first but this has been rumored, not rumored, theyre working on it and going to roll it out at some point in september since the iphone upgrades are not enormous, the iphone 6s i think is coming. They need some other hot product to focus on, and apple tv is long overdue for this upgrade so it shouldnt be a surprise that its coming. Apple tv service which ive heard for months and months has been in the works, you dont expect it to launch this fall and why not . No, i think the streaming service, i think peter kafka last reported it would be delayed negotiating with hollywood and getting the right products. They do have a great, they have a lot of stuff on there, hbo and a bunch of other things. If you want a streaming service you want a robust series of offerings, even more than they have, and so when youre competing with amazon and google and others in this streaming area, and also with the hbos coming out with their own things, you have to have a really Great Service just like what theyre doing with the Music Service and you know, well see how thats going to do, once the money, once the free trial period ends and see if people like what they made. The streaming space in general has gotten so crowded lately. Comcast, verizon, everyone working the smaller slimmed down bundles. Do you think theres a place for apple to be a successful provider of a new kind of bundle . You know, its interesting. I shouldnt just make my predictions based on my kids but they switch between netflix and apple and dont use google play but they switch between the two of them and dont seem to care what the difference is. I think its just what they can get on them and how much they cost. So i think its hard to distinguish itself. The netflix offering something terrific and has a lot of shows and comcast itself or whatever Cable Provider you have with all kinds of new ways to get content and so the question is, can you differentiate yourself . Its the same thing in the music space, its the same thing in the communications space, so it will be interesting to see if they can. Its a nice device but its pretty clunky. It feels pretty old when you use it right now, because its a couple of years out from its last upgrade. And apples got a lot of irons in the fire i think. We were talking about tv stuff for a while, was it going to be a big screen television, were they going to do a slimmed down box. Really they need to power the iphone, the overall ios ecosystem and to me the big deal from a financial perspective for apple is, does whatever they come out with act as a nice iphone accessory that makes people say hey, its time to upgrade. I want to get a 6 or a 6s, whatever they call it, so i can be a part of what theyre doing and they have to fix apple music which is confusing and glitchy on a number of different fronts. People seem to like the apple watch i guess but i see a number of issues with that that they could stand to fix. I check every day to see if john is still wearing his because im not wearing my opinion as much. The nomura initiation centers largely around what they think is continued strength in china and continued strength about the cycle. Thats the story. I think the interesting thing is the car. Im sorry, everyones with this tv, its been coming forever it feels like, the second coming, im still waiting for it, but the car is really to me where the big growth is in all these areas. That will be to me i think thats probably the most interesting part of what theyre doing. The tv is just an upgrade of existing stuff, the watch was a new category obviously and its gotten mixed reviews and well see how that depose. Big growth apples are what we should be looking up to apple and the car is the biggest growth area. Well come back to that well see. Microsoft says windows 10 running on more than 14 million computers, two days after the launch. The company said its goal was to get windows 10 on to a billion devices within three years. Fitch out with a new note windows 10 will not salvage sinking pc sales. It believes demand will remain weak due to the increase of what else, smartphones and tablets. Were people looking for this to be the saving grace . I still think it might be. The line between a pc and a tablet has blurred to an extreme degree. Microsoft has actually staked out the fact that people want to touch their laptop screens, separate the screen from the keyboard and have more of a convertible thing. Theres a possibility that will work and ipad numbers have not been growing so microsoft has an opportunity here. 14 million in this period of time, thats impressive, and this is kind of a soft launch in october, expect to see the hardware manufacturers and microsoft come out in a bigger way when intel launches their sky link chip and the slimmer, sexier machines, thats when theyll make their big pitch for people to actually buy windows 10 machines, not just upgrade. It will be interesting. I think the numbers in the fall will really be the real indicator but i mean as we heard from walt, who did a review of windows 10, walt was saying he was almost reluctantly enthusiastic about the whole thing and acknowledged there are glitches with the siri alternative, but people seem to like it. Well yes. No, they didnt like the last one. Its like having a better boyfriend i think. You know, the last one was a disaster, and so this one is correcting some of those issues, and you know, theres some nice things, theres some controversial things about shifting it to edge. It went to upgrade, making it the default browser and things like that. Its an improvement. Just like with the other stuff theyre just upgrades, its just improving already and i think the real question for all the companies is where is the real paradigm shift going to come, virtual reality, where is the next computing platform, is it mobile . Is it on the wrist . A lot of them are problematic so theyre all searching for the next major computing paradigm and thats whats interesting i think. That will be interesting, not these upgrades but its a good upgrade, a very good upgrade, its fine. Microsoft is working on augmented reality which i got a demo of back at e3, it was cool but feels like its not ready for prime time yet. Its still cool. Yesterday you reported that Nbc Universal the parent of this network will invest 250 million in buzzfeed, valuing it around 1. 5 billion. Anything else we should know . Well, theyre taking away from your salary, i dont know if you know that. I asked for that one. Its interesting, they need to get in, the millenials are departing and they need to figure out to get into the space and since the merger didnt work, the other merger with time warner didnt work they need to place bets around the table, a lot of the Media Companies do and the question is will they get value from it . What value will they get from it and second is why is buzzfeed doing this . Theyre a new media, they sort of want to get into tv and doing all kinds of aggressive things down in los angeles, some cool video stuff, and so its sort of a learning thing for nbc and at the same time buzzfeed really wants to be on television and get its closeup. Its an interesting time for content companies and you know, again, we all have these conflicts of interest here, because theyre also investing in box which owns us now and nbc used to onus and these Companies Really need to start to understand how to create and deliver content in new ways and i think thats what this is all about. Social they have what we want and in a way we have what they want so well see how it works out. Well see, well see, wont we . Good weekend, see you later. Kara swisher for us today. Thanks. Lets check in on the markets the dow basically flat after being down about 50 points today. Chevron down after profit fell 90 year on year, the lowest profit in over a decade, earlier this week the company said it would cut 1500 jobs as it looks to reduce cost by about 1 billion. Exxon slipping after the company missed, the company beat on revenue but said profit from new exploration and production down 75 as fuel prices continue to fall. When we come back, is this the next major hit from netflix, the official review of the new show wet hot american summer. Linkedin shares continue to fall. And this is the place to go for budding entrepreneurs, well take you there live when squawk alley comes back. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. The premiere of netflixs wet hot summer is shifting, in an interview with market watch Reed Hastings said weve been really growing in our approach to original content. Take wet hot an example of something were producing with a studio, a continuum of where in the process youre getting involved, weighing in on that is jason lynch who joins us this morning at post nine. Good to see you again. Welcome. What is he talking about . We either own it, we dont own it but theres some room in between . Right. I think as netflix is growing, they need to take these chances and do something different. Obviously this is a first show that theyve picked up that was based on a movie so it did originate from netflix. The movie does air on netflix, so this is a nice experiment for them. Its only eight episodes, it can work as a closed season or if the cast wants to come back again they can do it for more seasons. I think its so interesting theyre focusing on this niche content, not trying to create a general sitcom thats going to appeal to everyone. They want to create different types of niche content and some of them will have broader appeal but it almost feels like he wants to create his own universe of cable channel. They have their niche goals early on and want to be everything to everybody and wet hot american summer is a perfect example of that. This movie when it came out 2001, grossed over 300,000 at the box office which is nothing. Later on it launched, these stars became huge stars, paul rudd, bradley cooper, and they are all back for the show. Any network would kill to have a show that has those stars in it. How calculated is this . Netflix is a data company. They know what people watch which actors like, what genres theyre into. Did this get spit out of some watson like computer at netflix central heres what you need to do. I think it was partially that. The movie did well on netflix. They sat down with the creators. What prompted this to happen was that everybody in the original movie had such affinity for it, they were all able to come back. I dont think netflix would have taken a gamble on this if it had been part of the cast and not the people you really want to see. I think it was a combination of netflix realizing the metrics worked for them and everybody from the cast wanting to come back. Do you think this show will get more people to sign up for netflix if they were fans of the original one . I think it will. Its really fun. Its great if youve seen the movie. If you havent seen the movie theres a lot of great stuff in there. As we were saying to sign on to see a bradley cooper, paul rudd show i think more people will come on to that. By contrast, amazon has been trying to get into this original game for a long time. They signed woody allen and then in this interview with npr this week woody says i think theyre going to be embarrassed, theyre going to regret that they started with me. What does the studio chief say about that . Its funny. Woody, he signed this deal in january and feels like ever since he signed it hes been trying to get out of it, almost every interview done this year he talked about how almost unhappy he is. I wonder if hes trying to get amazon to pull the trigger because he doesnt want to step back himself. Amazon were talk about amazon because of this. Theyre giving him a lot of leeway whenever hes ready to do the series, theyll let him do it. Theyre not putting any limits on it. I assumed he was playing woody allen, in a woody allen movie. One would think. We know nothing about what the show issi ingoing to be. Npr looking at six episodes, we have no idea, we have no idea about casting. Its a big question. Amazon has a lot of attention for transparent. Feels like theyre trying to make progress with their originals with their latest round of pilots is much smaller in terms of the number of shows. What is their big picture there . Next week they were going to roll out two pilots in the next process of them allowing viewers to vote on pilots and come back for a series. I think that they have so much almost every week we hear about a new series, new pilot theyve inked or new casting and i wonder if this is a more regular pilot process as opposed to having the 13 shows at once that come out twice a year. We may just see more regular process for them. I think its interesting, people say oh why are you discussing woody allen, these are the top two gainers of the s p for the year, this is where growth is right now. Thats why were having the conversation. Do you think amazon prime is a threat to netflix . Theyd love to be considered that way, when you look at the data being streamed, amazon is just a mere fraction of what netflix is doing, but they want to be in the game along with hulu. They see netflix as a big competition. Jason, good to see you. Thanks as always, jason lynch joining us today. Up next you might be surprised by whats happening in wine country right now. We go live to Sonoma County. Plus we just talked about a tv summer camp, but is it also the next big thing in real life for entrepreneurs. Kate rogers is live in boston. Kate . To be a jukebox hero thats right but these arent just any old entrepreneurs. Eighth, ninth and tenth graders learning what it takes to launch a startup. All that and more coming up. You focus on making great burgers, or building the best houses in town. Or becoming the next highlyunlikely dotcom superstar. And us, well be right there with you, helping with the questions you need answered to get your brand new business started. Were legalzoom and weve already partnered with over a million new Business Owners to do just that. Check us out today to see how you can become one of them. Legalzoom. Legal help is here. A one, a two, a three percent cnext. Ack theres gotta be a better way to find the right card. Creditcards. Com lets you compare hundreds of cards to find the one thats right for you. Just search, compare, and apply at creditcards. Com. Dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is, can your business deliver . Its not just San Francisco real estate thats booming. Wib country is getting expensive. Josh lipton is live in sonoma with a tough assignment. Josh . Well julia, in my next life i think id really like to be a chief technology officer, thats my big takeaway from spending the morning at this estate and by the way this home is the most expensive home on the market in Sonoma County right now. The property was owned by ed cozell, former chief technology at cisco, also on the board of yahoo for many years. Its 20,000 square feet created in the style im told of an austrian country villa. The house rests on 600 acres, five bedrooms, 12 bathrooms, home theater, infinity pool, cozell is more than happy to sell it to you, julia, for just 32 million. While the price tag is at the high end there are more than a half a dozen homes on the market right now priced at 25 million or higher, as new tech money pours into wine country. Because of the success of so many startup firms in San Francisco and other businesses, theres a lot of money that is being manufactured in the bay area, and a lot of it is going into real estate. Reporter now luxury listings here in wine country, so homes priced at 1 million or more are up 90 year over year according to sothebys. Guy, back to you. Thanks, josh. Certainly a beautiful backdrop. Carl . Speechless, thank you, josh. Lets bring in simon hobbs who is here at post nine with wrapup of europes close and the week that just ended. Convenient for the wine as well. Hello, there we go, west European Markets are higher for a fourth straight session as you can see as they wrap up the month of july. Still at the height of earnings season within europe and you see the top gainers on the European Market coming through as a result of that. Airbus is a big gainer today, managing to beat expectations despite another charge on the transport plane, the a400 and paribas the bank. Chrysler raised their margin in this country to 7. 7 as a result of less price cuts. If you looked through july as a whole, look to the month overall, its interesting to see the way europe which is the white line outperformed the s p 500, and of course the main reason for that is the greek this was the month in which we thought greece might exit the eurozone. You get a higher greek bounce there, thats why they overprrmd ov primed overall. He admitted he did tell the finance minister to start a parallel Payment System because they needed some contingency. He said he never planned to leave the euro itself. Thats gained a lot of controversy. The other more important point to note he appears to have faced down the left wing revolt within his own party and theyll have their big commune on what they do in the future in september, hopefully after hes actually or hopes the third bailout deal with everybody else or the rest of the euro stone in general. The Greek Stock Market opens on monday, something to look forward to, guys. Have a great weekend, let the fireworks begin. Thanks, simon. Another good day for netflix, shares up 2 , one of the biggest gainers of the month, definitely the year up by 20 . Well have a closer look at its strategy in a moment with the dow up about 12 points. Why dont you turn me loose i asked my dentist if an electric toothbrush was going to clean better than a manual. He said sure. But dont get just any one. Get one inspired by dentists. With a round brush head. Go pro with oralb. Oralbs rounded brush head cups your teeth to break up plaque, and rotates to sweep it away. And oralb delivers a clinically proven superior clean vs. Sonicare diamond clean. My mouth feels super clean. Oralb. Know youre getting a superior clean. Im never going back good morning everyone. Im sue we rah. The wing fragment found on the island in the indian ocean is ready to be shipped to france where experts are hoping to learn whether its from missing Malaysian Airlines flight 370. Oceanographers believe that debris could have been carried thousands of miles across the sea by the counterclockwise movement in the indian ocean. Rescue teams in nepal continue to look for the bodies of victims killed in landslides caused by heavy rains. At least 30 people have perished. Several bridges were washed away and some roads were blocked, delaying the rescue attempts. The European Union is opening an indepth probe into weather fedexs proposed 5 billion takeover of the Dutch Company tnt is anticompetitive. Fedex says it remains on track to complete the deal in the first half of 2016. And get this, after a colorado woman picked up her car from the repair department at a denver dealership, she was in for a big surprise. She downloaded the video from her dash cam and found that an employee had driven her car more than 200 miles all around northern colorado. The Sales Manager says the employee has been fired. In the age of technology, be careful what you do and thats our cnbc news update this hour. Lets get back to squawk alley. Thanks sue, like ferris buehlers day off all over again. Netflixs ceo saying when you look at studios lix p s like pi combine great storytelling and great technological aspects thats where we want to be. As netflix launches red hot american summer and preps for followups, can it become the new pixar of streaming . Jason krakoran with d. C. Adventures, cofounder of sling media joins us now. Parse this quote for me, jason. Should we take it at face value, he just means streaming and original content or is there something deeper . Pixar actually used technology to produce different kinds of content than we had seen before. You think Reed Hastings wants to do that, too . He may want to. And i dont know what their plans might be but certainly on the face of it its a bit of a stretch to look at pixar and the platform, the True Technology platform advantage they had, and equate it to what netflix is doing. Certainly netflix is at an advantage right now and ahead of the pack in terms of streaming at scale, and that has certainly weve seen some other services suffer with their early attempts at scale but i dont think thats a longterm technological advantage, so i think that that element of his comment is a bit stretched and really were focused on were left with this bit on content and as you mentioned, a lot new content coming out from netflix today and very soon. Jason, you were founder of a company that some could say is a predecessor to the rise of all the streaming services, sling tv, it was all about time shifting and now you have almost the xhod advertisati xhod commo you think theres room for all the these directtoconsumer overthetop services to coexist . Youre exactly right. Sling box is about play shifting. It was really a moment in time technology. There are some elements of content that you cannot get still for these streaming services. As you mentioned theres been a lot of services that have come online with compelling offerings and you know, by and large theyre generally similar offerings and now starting to see amazon, netflix, et cetera, trying to differentiate themselves with original programming. It makes sense. Its the natural thing to do. Its what the broadcast networks did as well. I do think its a challenge, though. I think theyre on a bit of a content treadmill, so to speak. Youve got to keep generating hits and the switching costs for a consumer is very, very low. In particular, youve got a single box, you can switch Services Just like you could switch the channel. Theres no longterm contracts any of these guys are pursuing, and of course, with the availability of all the programming all at once, theres the opportunity for binge consumption and of course you can get a lot of the value a consumer can and then switch to a competing service. Yes. I think it will be, the early stages are going to be around original programming that will be the differentiator, but i think longterm these companies will need to look for other structural advantages and customer acquisition. Jason you mentioned sports and were coming off of their presentation at tca where they didnt seem to demonstrate huge interest in going after live sports rights. We always wonder at this table what would happen to the value of leagues, the value of sports teams if a google or a netflix or a yahoo bid for a big game in a big way. Do you think thats going to happen . Well theres no doubt about that, that sports is kind of one of the most important pieces of content, so i think youll get more and more competitors to this both with respect to kind of u. S. Sports as well as international sports, the premier league. Its largely the purview of broadcast stations now and Cable Networks but theres no reason to think that that might happen as well. It doesnt seem like netflix has shown much of an interest in sports nor the other Major Players like amazon. I do think that that might be a genre where theres a company that emerges that could take a bit of a lead. Theres a few Young Emerging Companies like fubo tv out of new york that are promising that. Well certainly see. Jason we heard last week bob ieger talk about down the road its inevitable espn will go direct to consumer. Espn which is the powerhouse in live sports is credited for being one of the most valuable pieces of the live tv bundle. Do you think that this is going to push cord cutting . Well certainly when i talk to friends and colleagues and just folks who have adopted the sling tv offering which is i guess you could say a skinny cable bundle coming or satellite, as it were, over ip, by far the biggest reason i have gotten from those folks for adopting that service is to access espn and it often comes with cable cutting, so certainly, i think the opportunity, that sport is the last bastian. Regional sports in particular, as those start to tease apart from the cable bundle, i think its only going to accelerate the cord cutting. So jason, you were talking about figuring out what the differentiator is going to be after this original content. Yes. Isnt it data, you think about the information that amazon knows about, what were purchasing physically and they have the ambition to know what were purchasing digitally through streaming. What netflix knows about Family Structure and preferences by age, shouldnt they be able to produce better content because they know our preferences, what we watched last and what people like that watched next . I think theres no doubt. I think data is a massive advantage and you can, you certainly can put netflix and amazon as the folks that have the most of that asset and expertise. But you know i also think there are other things. Amazons obviously got a Massive Group of users with their prime membership who value that prime membership eindependent of the video offering and that is a bit of a structural advantage in terms of attracting customers and keeping them and giving them time to develop this strategy. Netflix really benefited from the fact that you had this existing service, of course the discs, right, their old model and when they first came out with the streaming product it was actually mediocre at best, but it didnt really matter. People stuck with it because they liked the existing service and it grew, right, and they matured and have become a Great Service. Amazon will have that same flexibility and plenty of resources to continue to push down that direction. Id also add that i think apple even though theyre late for the party here, its still quite early, and i think that most of what the discussion has been about has been around content and differentiation of content, and as i mentioned before i think thats hard to sustain. I think gains in content area could be short lived, and one of the things that i really like about apples chances is its just their ability to take advantage of the device ecosystem. The consumer has a laptop, a phone, a watch perhaps, and changing the experience around television is yet to really be explored and i think theyre in a great position to do that. All right, jason, thanks. Well leave it there, Jason Krikorian from ecm ventures. Thank you. Up next, shared of linkedin continue to fall, now down about 9 . Well talk to one top analyst downgrading his rating on linkedin today. But first, rick santelli, what are you watching today . One topic on this Trading Floor today, john, the employment cost index, and cnbc has covered it in an awesome way today. Its not normally a huge market mover, but today it was. Why . Thats what were going to talk about after the break. Seven out of ten Power Outages in the us are caused by weather. But utilities can now predict where the power will go out, within a few city blocks. Working with ibm, theyre combining micro weather forecasts with detailed data from local sensors. To predict where outages are likely to occur. And send crews exactly where theyre needed, when theyre needed. Ibm analytics from the internet of things is making energy smarter every day. Can you tell what makes them so different . Did you hear that sound . Of course you didnt. 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Plus 76 billion in assets under management, shes going to join us for the hour, give her take on bonds, the markets, the fed, everything else, and our call of the day, one analyst seeing a 40 plus rally in gopro. Is that too optimistic . Were going to debate it. Over to julia boorstin. See you in about 15. Thanks, scott. Shared of linkedin falling more than 9 despite beating estimates by 25 cents a share. Investors concerned about growth in linkedins core business and evercorps is doingrading the stock to hold. Ken senna, thank you for joining us. Thank you. What is it that most concerns you, the slowing growth rate, the weak innocence displayones . You can name those things and look at margins showing some compression, some flattening in the user growth on a sequential basis. When you take all of those things together and put it against the fact that linkedin is a growth stock its difficult to justify the current valuation. Theres a lot of talk on the call about the benefits linkedin will get from linda, how theres potential to grow linda overseas. How bullish are you on the opportunity in linda . Linda is an interesting business but it will probably take some time to build out and i think when you peel back the increased guidance result that was provided last night in terms of the contribution from linda, and some of the accounting changes that were made, were really looking at a core business that is showing some deceleration into the back half with numbers coming down again similar to last quarter and looking at that combined with some of the compression we see around margins and flattening of the user growth leaves us to feel a little bit more bearish on shares. Ken, put this in context up against facebook, which we saw earlier this week with some pretty strong user Growth Numbers overall, and definitely strong engagement numbers. Does it even make sense to talk about other social socalled social companies in the same context as facebook or do we need to think differently about how their prospects look Going Forward and how theyre going to monetize longer term . I think for all of them relative to facebook you have to argue if you dont have facebooks scale you have to really justify the differentiation that you offer to your customers and linkedin does that on the talent solution side with hiring managers. Theres still some question on the marketing side. Clearly theres a b2b advertising opportunity but the same advertisers are getting more sophisticated leveraging data but facebook and reaching the same audience members at scale so if theyre finding better substitutes in the marketplace, i think that is causing some of the pricing pressure were seeing in linkedins business. As linkedin makes that transition though to a more performancebased model, i think you could bring up twitter. Twitter the cfo said it well if youre having a flattening of your users but still have expectations that are quite high around revenue youre left with two choices, you can either show your users more ads which certainly doesnt help your engagement or give your advertisers higher pricing which were not finding they want to accept. The parallels to twitter are interesting. Im curious, ken, we sometimes talk about say mcdonalds as an example, beholden to certain macro trends like employment, youre not going to stop for breakfast unless you have a job. Right. Is linkedin similarly beholding to employment in this country and is that a good or bad place were in . I dont know if theyre quite there yet but i do think theres a question on just how big is their opportunity around their hiring Solutions Product and if you get, if were at a point where youre seeing that start to saturate, at least among maybe some of the better customers, and then it really does increase your exposure to areas like linda, marketing solutions, other premium subscription products like sales navigator, and i do think that those are just going to take more time. Ken thanks so much for joining us. Yes, thank you. Interesting stock to watch. Linkedin shares down 9 . Lets get to the cme group, busy morning, get the santelli exchange. Hey, rick. Reporter hi, carl. Indeed it has been a busy morning. I can talk about oh so many things. University of michigan, you know, it was only a slight miss against mid month when you looked at the june final, it was a bigger miss. Chicago we had al sand refrance its interesting her perspective. Its talking to people that are in the numbers the respondents and the more i talked to her the more i came away with the feeling that the respondents were shaky on the strength of the report saying that, you know, theyre just not confident that the new orders, which just jumped, is anything but temporary, but the most important issue of all, and i cant remember the last time the water cooler talk centered around eci employment cost index, it was a miss, and when you dug into it, it would have been a bigger miss if it wasnt for government workers of course having a better improvement on the wage side versus the private sector, but how do we string all this together . First, lets let the market do it. If you look at a 24hour chart of fives and tens, a couple of things should jump out at you. The fact is at 8 30 eastern they moved lower and by a substantial amount considering 162, 163 in fives down to around 1. 56 and now at 1. 55. They stopped and resting right there. Same is true for tens, around 2. 25, boom, they moved down to a quick 19 print and resting comfortable at the moment at 2. 20. Remember yesterdays settlement at fives, tens and thirties matches the weekly settlement, 2. 26 in tens, so it jumps out. What does all this mean . Put it in the context of the fed meeting. Big news today is, is that september fed fund futures versus december, one has one meeting, the other has an extra meeting. September now is below 50 , but theres a high probability according to those signals that youre still going to get a normalization of rates in 2015. Here answer t heres the problem. How many times have we talked about market signals . This is not something we do because we like to hear ourselves talk. Market signals cant be trusted. I want to know how fed fund futures can discern that when the committee behind closed doors hasnt discerned it. In the end, theres one thing that matters. If you dont like financial asset inflation, get off zero Interest Rate policy. If you want traditional inflation, you need growth. And guess what . After all these years after the crisis and all these policies, i will stick with what i think fed policy has done with regard to the economy. Its created a sixyear flu year for a two year flu. Back to you, julia. By the way, julia, you have done a great job this week. It has been a pleasure working with you. Thanks so much, rick. Been great to be here on set. Coming up next, call it summer camp for entrepreneurs. This has bigname entrepreneurs. , a powerful new dell 2in1 laptop, and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. My name is jamir dixon and im a locafor pg e. Rk fieldman most people in the community recognize the blue trucks as pg e. My truck is something new. Its an 811 truck. When you call 811, i come out to your house and i mark out our gas lines and our electric lines to make sure that you dont hit them when youre digging. 811 is a free service. Im passionate about it because every time i go on the street i think about my own kids. Theyre the reason that i want to protect our community and our environment, and if me driving a that truck means that somebody gets to go home safer, then ill drive it every day of the week. Together, were building a better california. Breaking news on puerto rico. R. K. Has more on that. Good morning. The Government Bank of puerto rico one of the more troubled borrowers is expected to make a timely payment in time for the deadline from what im told by a source. 169 million, due on saturday. It will be posted im told and put in the proper accounts by monday, which is part of the scheduled time frame. However, there is a more troubled borrower, the Public Finance corporation which is a subsidiary of that bank i just mentioned that is still not expected to pay, carl. So we very well may see a default situation, a nonpayment situation within the next couple of days. Even know this Government Development bank news is a positive in a murky picture. Kate, thank you for the update. We are awaiting comments from president obama. Potentially involving the bank. And well bring you that when we come back. Hi my name is tom. Im raph. My name is anne. Im one of the real live attorneys you can talk to through legalzoom. Dont let unanswered legal questions hold you up, because were here, were here, and weve got your back. Legalzoom. Legal help is here. Can a a subconscious. Mind . A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . Nbut your stellar notebook full hangives youn ap calc. The gumption to reach for the sky. Thats that new gear feeling. All hp ink, buy one get one 50 off. Office depot officemax. Gear up for school. Gear up for great. President obama making some comments after signing a short Term Extension to the highway bill. Lets take a listen. We operate as if were hand to mouth. Three months at a time, which freezes a lot of construction. Which makes people uncertain, which leads to businesses not being willing to hire because they dont have any long term certainty. Its a bad way for the u. S. Government to do business. And finally with alumni like instagrams and buzzfeed, this is the summer camp for the up and comings entrepreneurs. We have more from boston. Kate . Hi, jon. For most kids its the dog days of summer, but some are spending the final weeks of vacation worker harder than ever. This is a twoweek intensive Program Designed to help kids with big ideas take them to next level. They learn to network and pitch. They visited local vc, startups and paid a visit to google this year. One of the more recent ones is grant goodman. He came to them last summer at aged 14, launching masters software. Now at 15 hes won not one, but two scholarships from apple to visit their developers conference. He also has five apps available in the ios store. Thats what really pulled me in, learning how to do business and how to pitch to Angel Investors and get money so i could further advance my own company that i had founded the year previous. Now, this summer the kids right here behind me, they just finished up pitching their ideas to a panel of judges at mass challenge which is a local accelerator program. To get feedback on the ideas they have been working on for several weeks now. Its really a sign of the teams when young kids tell you want they want to be the next Mark Zuckerberg and not the next lebron james. Im still sure some kids still want to be lebron. Thank you, kate rodgers. Meantime, a new version of google glass is coming out this year. Google will soon start handing out the new version for testing. The report says the new version is a lot like the old one, but it could ditch the frames in favor of a model that can slide over your existing glasses. This made some headlines yesterday afternoon. Tony fidel, we continue to watch him, see what he has in mind. This is a version not for consumers, this is the one theyre handing out the businesses. If you want to wait for the new sexier google glass, youve got a longer wait on your hands. I will be curious to see if its not glaringly obvious youre Walking Around with the thing. You dont see a lot. Well see. Stock has held on to the incredible gains at 661. Julia, thanks very much for the few days. Safe travels home. Scott wapner, and the half. Welcome to the halftime show. Lets meet the starting lineup. John lavin that will and josh brown and steve wise and bonnie baja from double line capital. Our game plan looks like this. Oil spill after exxon and chevron host their worst profits of a decade and beyond. Is it time to boot both from your portfolio for good . Camera ready, gopro shares are flat, but they say theyre picture perfect. Now we debate