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♪ and i feel all right and the party's here on the west side ♪ >> it's monday morning and welcome to "squawk alley." i'm carl quintanilla watching the dow and big show today, the ceo of harley is with us on set in just a few moments and fcc commissioner brendan carr on the sprint mobile deal after the s.e.c. said it would back that merger first up we begin with huawei, major u.s. tech companying turning their backs on that company. suppliers like qualcomm and intel telling employees they will not sell to huawei until further notice tusk ventures founder is here with us along with mark mahaney in san francisco thanks for the time. >> good morning. >> how can anyone buy a semi conductor company that has even minimal exposure to china right

now? >> yeah, i mean right now obviously it's a major concern and i think that, you know, things are getting conflated due to two problems. the trade war with china happening and that's one set but let's assume that gets resolved and seems like maybe over the weekend things got better. this is fundamentally a problem if you're google you won't want to expose yourself to that liability. if they won't work with them, that would be tough. >> i want your take here how far do these ripple effects extend >> this is unusual i don't recall google ever having to do anything like this in the past. it's probably not material for google, google doesn't have any exposure to the market except for chinese ex-poporters who do look to advertise on google. potentially i don't look at the phone sector that closely but if you're not able to have the full rebus suite of apps on your phone, i don't know what you have you have something akin to a brick so the reason people buy hem isn't because of

communications, it's because of the functionality that's embedded in all of the android and google apps and services, so it's a real problem on one side and it's a little unclear what the issue will be for google going forward. certainly doesn't help them but i don't think it's a material negative at all. >> mark, i'm concerned about the arbitrariness of this. i mean, without a better grounding, in fact, it risks being tax read scare the trump administration has not outlined that i have seen kind of a specific process for determining whether equipment is secure, what exactly the standards are so whether it's chinese equipmentmakers or equipmentmakers from anywhere in the world, people can feel confident that the equipment has been through at least some sort of standard review and i wondered therefore are internet companies that want to do business in china at some greater risk of an arbitrary response on their end? >> yeah, jon, i think that's absolutely a valid concern

there's good news and bad news here the good news is most major u.s. internet companies, i think pretty much all major u.s. internet companies have essentially no access to china or the average revenue exposure to them is sub 2%. bad news long term a great market you want to be in it and this at the margin probably reduces the chance of facebook or google or a netflix, for example, ever gaining -- getting near term fears or whatever it is material access to the china market so i'm sure this doesn't help in any long term plans with china they had >> brad, the u.s. and lawmakers in the u.s. have been looking at huawei and also other chinese tech and telco companies for years even before the trump administration came into being here i wonder, it seems like it's a bipartisan issue and it might be a longer term thing here to stay in the u.s. at least from a national security and defense standpoint. >> from a national security and

defense standpoint, the zeitgeist has turned whether it's facebook getting creamed in washington or amazon chased out of new york city, right now it is not a good time for popularity standpoint to be a giant tech company in the u.s. and there's a lot less patience and tolerance on behalf of regulators, the media, legislators and everyone else for mistakes so if you are google and you're looking at this and saying, there's risk/reward, their risk tolerance waiting for more problems and probably lower than it has been in the past. >> isn't it strange given it's the most dynamic part of our economy? >> it is but you know what, it hits a point where it goes from being dynamic to being the bulk of our economy in which the case the normal rules apply and politics applies and everything else i think they thought that very much facebook and google and twitter and amazon were immune to a lot of it but anyone reading the headlines in the last 18 months or so knows they no longer are. >> mark, "the washington post"

has an editorial today saying to jon's point that administration really hasn't provided a smoking gun on huawei and that somehow we deserve at least a framework for where they're coming forward with these restrictions. on the other hand if it is national security maybe we don't get it >> boy, well, let's see. i think that's outside of my pay grade but will make the following point and sara's question hinted at this or -- there's two certainties, one is that big tech is a no-no and secondly that china is a no-no and so i'm sure that that leads google and facebook and any of these companies with any consideration of exposure to china to be as careful as possible and quickly move away from any sort of linkage with the second no-no which is china. it's unfortunate long term and unfortunate for free market thinkers but that's the reality. >> shifting gears it seems like

there is an amazon effect taking place where some of these tariffs on chinese imports are concerned as well. starting to get more reports about companies that sell their products to or on the amazon platform looking to increase prices because of the tariffs and can't because of amazon. have you been looking at this? >> yeah, look, amazon's marketplace now is the largest third marketplace in the world okay, it's probably around equal in size to alibaba but on a global basis it's the largest third party marketplace and it's in a very competitive cut throat marketplace and has been for a long time h is half of all the se sets sold on amazon so the ability to raise prices has always been an issue and it's created opportunities for amazon to go into those verticals where they see excess prices, jeff bezos' mantra has been your margin is my opportunity so any companies that want to try to take advantage of this to raise fees and amazon's marketplace

has always been a tough tank and even tougher now >> all right, mark, you definitely extended the depths of your universe today appreciate that. mark mahaney. major issues for the raid-hailing ipos. journal out with a report that several investors tried to sell some of their stock ahead or during uber's ipo. this as lyft was sued by a group of investors alleging the company made false and misleading statements ahead of its own ipo to inflate the share price. brad, in your latest op-ed if "ft" you said the ceo zapped it of some of its drive some argued that was needed. >> the board when they replaced travis solved one problem and maybe it was the wrong one, you guys, the media, they wanted someone to come in and calm everything down, take down the temperature. change the culture and, by the way, dara has done that well and if the board were to do that they would succeed -- >> travis' -- the problem with uber and travis was the media,

not what travis was actually doing to the company. >> no, i'm saying the problem is when the board picked a new ceo, they said how do we get someone that the media will like which makes total sense until they went public -- >> the strength -- >> well, let me finish his strength is running a big company, stability, narrative, optics, all of that. >> that's different from the media. >> well, ultimately what they wanted you guys is to stop beating them up. everyone on the board, they don't like being named on "squawk alley" in a negative context. you were dying that. who can we hire to make it go away, they did here's the problem, they solved for the media or whatever you want to call it but didn't solve for the markets. when you're buying uber what you're believe something in the future vision where this different network of getting cars and people and burritos from point a to point b can be done in a profitable way which means you're not buying where it is today but where it can be in the future you have to think the ceo is

really innovative and focused on growth and i think that's where he's not as good and the market is very much proving that. >> facebook has put the safety back on and hasn't hurt them, at least from a share price. >> i don't think anyone would equate mark zuckerberg to dara that's the problem mark zuckerberg for whatever flaws he has, the guy can innovate he is focused on growth. lots -- >> and dara has not proven that. >> i hold a lot of uber. i hope that turns around because it's hurting me personally but, no, i don't think we're seeing it. >> do you think this will be the next sort of prong in terms of a so-called tech lash, this idea you had companies that stayed pirate for longer. >> yeah. >> the greatest gains realized in the private markets by private investors and now you have companies like uber and lyft going public and retail investors are getting whacked. >> absolutely. uber stayed private for way too long easy access to money from saudis and sequoia and everybody else so made sense why they wanted to do that but if it had gone

public a couple of years ago would have had more growth in the share price. even who got in at the series a and pretty happy with where it landed i do wish they would have because we'd be in better shape. >> i don't get your blame the need ya argument seems like lyft would have done better if that were the one variable you -- >> lyft increased market share by 35%. >> no, i mean in the markets. >> it's exactly the same thing neither really are that impressive on tech right now they're both -- lyft has always been good on narrative and uber is also which is fine. it kind of keeps people off your back but when believing there's going to be growth they're not seeing it left and not seeing it in uber. >> this tesla debate we see, so hard to make the model 3 profitable and shore up demand for something already ready then start talking robotaxis and pray that the market believe, right

>> yeah, that's clearly elon's strategy sometimes it seems to work and sometimes it seems to not work uber, there's a more clearer path of getting transportation of people and things that can be profitable but you have the -- the parke has to believe uber is capable of doing it and just based on what we've seen they don't believe that in the last week or so >> quickly, what is exciting in tech to you right now. >> there's so much but for me, autonomous trucks, ai, certain types of cryptocurrency, esports is the next things that people don't realize and somewhere on the drones and the military. >> you ought to come back and people should read your piece in "f.t." up next take a look at shares of t-mobile and sprint. fcc chief says he would back the merger earlier this morning. the commissioner brendan carr

joins us next backing it as well we're back in just a moment. ♪ (vo) i know what you're thinking. electric, it's not for you. and, you're probably right. electric just doesn't have enough range. it will never survive the winter. charging stations? good luck finding one of those. so, maybe an electric car isn't for you after all. or, is it? ♪ ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. 529 plan? a 10-k? what's an etf? an ipo? 401(k)? where do i start? empower yourself with the free tools and resources

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on investor.gov. do any of you know captand here we go. [ "good to be alive" by andy grammer ] it's snowtime baby. [ screaming ] oh, snowball. uh, is he ok? not in any way no. take that ok. you were just beaten by a rabbit. you don't even know it. [ ding ] oh, my pizza rolls. shares of t-mobile and sprint rallying you can see sprint up 23 plus, 24%. t-mobile up about 5.5% the fcc chair giving a green light to their $26 billion merger saying it will snead up 5g deployment here in the u.s. both the fcc and justice

department must approve the deal, however. joining us now first on cnbc fcc commissioner brendan carr who announced his support for that deal today commissioner, good morning >> thanks for having me. i appreciate it. >> i wonder how important were the specific promises that t-mobile made to getting your support and also what is the enforcement mechanism? we're hearing about there being billions of dollars that t-mobile has on the line if they don't roll out 5g in the manner and at the prices they promised. how do those penalties kick in if they slit >> that's right. one of the great session stories i think for the trump administration and for the fcc is the leadership that the u.s. is showing when it comes to 5g 5g is a great job story. it's great for our economic prosperity and it's good for our national security and the transaction before us with sprint and t-mobile which i announced my support of today, well, the record there is very

clear and it's part of that broader push to secure u.s. leadership in 5g >> so about the enforcement, though, what's your understanding of how that will work is that something that needs to be in there for this to be a deal that you support? >> yes, so there was a filing this morning that t-mobile made that walked through and a lot of detail the enforceable commitments i've put on the table and walks through the mechanisms there i think one thing that stood out from that filing is we're going to see 97% of the country covered with 5g within three years. when you think about u.s. leadership in 5g, one of our big goals is make sure every single community can benefit, not just the biggest cities and this combination through that enforceable mechanism that's in that detailed filing is going to put us on that path. >> brendan, in terms of the supply chain for a buildout in the u.s. given the fact there's so much focus on the executive

order and the order from the commerce department in the past week around huawei and what that will mean, to that ag rollout here in the u.s., how robust is the competition here and how are you thinking about developing that supply chain? >> yes, so the security of the 5g network is also one of our top priorities just last week or two weeks ago we voted to prevent china mobile which is a company ultimately wholly owned by the people's republic of china from interconnecting with the u.s you saw the trump administration announce steps as well with respect to huawei to make sure we have security in our supply chain. so we're very focused on this issue and i think right now the leadership we're showing will hold us in good stead. >> commissioner, do we have enough specifics on what security looks like, i mean, because to some extent the u.s. is still reliant on foreign suppliers for the 5g network whether you're talking about samsung or about erickson. at what point can we draw the

line and understand which foreign suppliers are delivering secure equipment and which are not? >> yeah, when we step back and think about that global competition for 5g, first and foremost is making sure it's built here and built with secure devices and right now the u.s. has the world's largest 5g build of any country we're on pace to have over 40 cities this year and the security proceedings that we have in place, one idea we've put on the table is potentially taking out equipment from certain vendors that's currently in the u.s. network but haven't made a final decision whether to take that step we're also looking at whether there's review has can be put in place before new equipment goes into the network and, frankly, making sure that people feel that they have choice in terms of the equipment that goes in and that companies that are deploying this network equipment share our western values in terms of respecting ip rights and the first amendment. these are all steps we're looking at at the fcc and department of homeland security

is involved in this effort as well. >> speaking of western values, how would you characterize our european allies' willingness to side with us or huawei in this whole rift >> yeah, the state department, i let them speak for their efforts. they've been engaged in a lot of bilateral and multilateral conversations about the security threats and i defer you to them as to the current state of play on those discussions >> commissioner, i just want to get your thoughts in general over the next couple of years about how you're thinking about connectivity in the u.s. talking about 5g but you have spacex poised to send satellites in orbit to build out its broadband network and other situations in development right now. what will it look like here in the u.s. >> i think we're at an interesting time for consumers across the country to your point we're about to see a level of convergence that we've frankly only talked about before that's part of the lens through which i looked at this particular transaction

take the home broadband market, for instance, a lot of customers feel like they have one or no choice for high speed home internet but with 5g you can get wirelessly the same fiber-like speed that you can only get from one provider and you put on top of that to your point this new generation of low earth orbit satellites that are coming online and i think there's going to be really more choice than ever for consumers when it comes to high speed internet access and that's going to be a great thing. >> yeah, potentially competition for broadband providers, additional ones, as well commissioner brendan carr from the fcc, thank you. >> thanks. after the break, an american icon in the age of trump trade, tariffs, overseas production we'll ask matt levatich about the road ahead for harley-davidson. stay with us [ grunting ]

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by oracle. the integrated cloud stocks going to close in europe in a few moments. seema has more >> for now european stocks in the red led lower by the german dax down 2%. huawei being felt. infineon has reportedly suspended shims to huawei even though a majority of its chips are not subject to u.s. restrictions while french based sd micro plans to hold meetings to discuss its next move a sign washington's crackdown is being felt outside the u.s a report being published today showing 20% of eurozone businesses say they have felt compelled to transfer technology to maintain market access. that's up from 10% just two years ago. meantime, travel and leisure stocks under pressure today. ryanair posting its weakest profit in four years and said earnings could fall further next year citing overcapacity issues,

brexit and delays in the delivery of boeing 737 max jets. that stock down about 5% let's pivot to india where markets posting their best performance in three years after exit polls phi cast prime minister mody to stay in power for the next five years. up 3% to 4%. if modi is declared the winner he'll have to figure out how to work with trump. unemployment at a 45-year high jon, results due thursday. back to. >> you thank you, seema. now to sue herera for a news update sue. >> good morning, jon good morning, everyone here's what's happening. more than 170 footwear companies including nike, adidas and underarmour sent a letter to president trump asking him to immediately remove footwear from his tariff list. they said that would add an additional 25% tariff on footwear from china.

the companies warned his tax burden could mean working class families would pay 100% duty on their shoes. former trump adviser steve bannon praising french far right politician marine le pen's political recovery he said he was in france as an observer of the european elections. >> her resilience in coming back from the 2017 loss and her rebranding and what she's done to lead this, that's why i think that's why the center -- i think the center of gravity in the election will be france. >> a record number of americans are expected to hit the roads this memorial day weekend. aaa says nearly 43 million will get away the vast majority, 37.6 million, will drive to their destinations that's about a 3.5% increase from last year i will not be hitting the road that's the news update guys, back downtown to you

me either. staycation >> exactly >> thank you. speaking of roads, harley davidson launching its first electric motorcycle this summer and now looking to continue those investments into electric with new models that it's hoping to attract the next generation of riders with harley continues to be on the front lines of the president's trade car saying impact of tariffs on many of its products and a number of countries and joining us now is matt levatich, the ceo of harley-davidson welcome. >> thanks. great to see you. >> five years ago you and i were standing outside this building talking about harley's potential new electric motorcycle project live wire. the fact that the company was considering going into this market and today we have one of these motorcycles behind us here let's talk about the evolution and who you're expecting to target with this new model. >> 2014 we did project live wire and built 33 of a product that we were very excited about but needed to test the assumption, right? put those in the hands of real

customers and did that worldwide. when we met it was the kickoff of that tour about 18 months long we demoed the product with about 12,000 to 13,000 people, riders from across the spectrum, young, old, existing customer, potential customers and the universal feedback was this is an amazing product it's done. i want it now so we stepped back and said what do you really need from a range perspective and price perspective and got useful input about more work we needed to do and wasn't quite ready for prime time from a cost perspective and range p perspective so between then and now we've worked hard and we're proud of it. one of the most thrilling products i've ever experienced not just in the motorcycle face and think it will inspire a lot of people already riders to give ev a look and also to inspire new riders who maybe are just curious about what motorcycle

something is all about and ev gives you an inspiring way to join us. >> i want to get more into the new riders piece but first a lot of focus at least from investors and analysts on the price point, just under $30,000, which is higher than a lot of your competitors out there in the mark marketspace. what do you say to those concerned about where it's priced. >> first of all from the price point standpoint it is a supreme yum product. all the components, the dynamics, it is one of the best engineered products on the market, certainly that we've seen in the space. so we're leading in electrification. that's our objective not just with live wire but with a full portfolio of evs and also looking to be profitable on a gross margin basis with every motorcycle we sell which is important and believe this product is worth every penny of its $30,000 price point and we aim to demonstrate that when people get on it. >> are there good engineering specs, things like torque and range that we would want to hear

about. >> yeah, ones that were quoting most often is 0 to 60 in three seconds and 60 to 80 in another 1.8 seconds so this is a high performance halo product and obviously electric is all about torque and so metering out that power and torque to the rider is very important in a motorcycle and we've got a fantastic balance of all that performance and balancing also with range and regenerative braking because range is important to people and infrastructure and charging builds out, that's an important part of the equation we get 80% charge on a dc fast charge in about 40 minutes, so, you know, we're in the sweet spot that people are starting to kind of let go of some of their concerns >> this is part of the longer term multiyear strategy, the more roads to harley-davidson strategy recruiting more riders over the coming years. more models like the ev but also growing international business about 50% of sales begs the question, a lot of focus on trade.

tariffs, harley, like it or not has been on the forefront of that with 25% tariffs on some goods imported into the u.s. here from china, also retaliatory tariffs in that country, how will that affect harley. >> our exposure to china both on the import side and actually on the sales side is much less than maybe other companies. we don't import a lot of components from china. most of our products are made and sourced here in the united states so we're pretty well protected in the hatest round of tariffs didn't affect us in any regard on the import side. on the sales side it's actually similar to europe although our volume is much lower so from a financial perspective it's not happy about it but it's manageable europe is the big issue for the company. about $100 million a year run rate that we are covering in order to protect our business in europe, protect our market share, protect our volume, protect the viability of our distribution channel very important for us whether the tariffs go away or not, we are just operating with the

facts and circumstances in front of us. in light of the fact that some of our other new products including some very potent traditional motorcycles that play very well into strong and growing segments internationally in particular in europe, they're coming out about less than 18 months from now so the rival is important to have that distribution channel and have that velocity and to make sure that those tariffs be mitigated if they don't otherwise go away. >> in rhett pro-suspect how badly did the president hurt your brand if we don't see any impact and best way to measure that is through market share we grew 0.6 in the first quarter, over 51% market share in the united states certainly didn't help. there's no question you don't want comments like that made no company wants comments like that made about their company. but we did a nice job, i believe, helping customers and dealers who were on the front lines of retail -- >> what did you do and how much demand was that?

>> just clarifying what the facts are that this is a european union tax imposed significant impact to the company, impedes our ability to invest or return to shareholders and that we needed to find ways to mitigate it well and less and until the tariffs go away by other political means and here we are 11 months after the eu increased the tariffs. they're on the books to go, we were at 6%, we went to 31% two years from now they'll go to 56% unless something else changes in the trade environment and we can't sit by and wait we have to make it happen. we help make people understand that there was misinformation we worked to clarify so that people got comfortable and our dealers tell us once they were able to tell customers, customers say, oh, i understand and sort of relaxed. >> speaking of planning, "the journal" has a story about capex where this he go through regulatory findings and it's

gone from 20 a year ago to plus 3 in q1 and cite cat, fedex, you name it as saying confusion over trade is making us be more cautious that has to be happening. >> well, of course, i mean i think business thrives on predictability uncertainty robs businesses of the kind of clarity that they need to make investments and most of these investments for most companies are long term in nature they are for harley as well. we're having to make investments that we didn't contemplate a year ago because of this trade situation. we don't need additional motorcycle capacity. but in order to get into europe, whether it's through our thailand investment or if the eu doesn't approve our application through another investment possibly within the european union, that's capacity we don't need that's investment we don't need so this uncertainty to me is real and affects every business and every business leader making decisions about how to deploy capital. >> given the fact -- we have a lot of folks on our air and just in the press in general who say tariffs automatically translate to a tax on the consumer

i think just by what you laid out here today that's not necessarily the case it affects someone, someone has to pay those additional levees but given the fact you haven't necessarily raised prices in your key markets but you are selling you're pushing forward with more roads to harley davidson what is you are could take whether here or abroad. >> i think similar to business, consumers are -- have a high degree of alert about what's happening and economies in the u.s. or europe, they're spending -- what they're spending is cautiously, pulling back maybe on some big ticket discretionary items, you see that in housing and a little bit in the pote cycle industry in the united states. soy while there are a lot of markers that suggest the economy is strong, there are aspects of it that i believe the situation impacts as well. >> matt, thanks for sitting here with us at post 9. matt levatich. we are not done. after the break we'll take a closer look at harley's latest models that are right here behind us at the new york stock exchange that's next.

stay with us in the meantime, impossible foods partnering with little caesars. pizza pizza as the alternative meat companies continue to expand following beyond meat's successful ipo is there room in the market for both aditi roy has more. >> it is a crowded field and both impossible foods and beyond meat have faced questions about meeting demand as they scale up. in its latest partnership impossible foods is branching out from its signature impossible burger, the company has created a plant-based sausage in its deal with little caesars. the company is launching the impossible supreme pizza in three markets. it is custom-made only for littlecaesars. it could be rolled out to stores nationwide as early as the end of this year it raises the question would impossible foods be able to meet demand impossible foods has acknowledged it is having

short-term supply issues and encouraging customers to call ahead of time to make sure its burger is in stock the company says it's increasing production capacity by adding a new production line and third shift. beyond meat scaled up quickly launching partnerships with carl's jr. and dell taco and says it continues to invest in manufacturing and r&d. back to you, guys. >> aditi, thank you so much. still to come, the early stumbles for uber and lyft "squawk alley" continues next. we came within 12 points of dow break even but down 96 >> announcer: the cnbc trend track ser brought to you by the cme group. cme group, where the world comes to manage risk

welcome back to "squawk alley. standing on the floor of the new york stock exchange exclusively with matt levatich for part two of our interview you brought us some models to check out here as you launch into electric motorcycles officially let's talk a little about what's on tap for harley. >> so beginning in august we will launch live wire. this pod we've been working on really since about 2012 and we took it out as i mentioned earlier to the world to get a test of it in 2014/2015. got a lot of great learnings

incorporated into a world class amazing motorcycle and are proud it's coming out and here this week with this motorcycle part of design week to celebrate the industrial design capabilities of the company which are deep and broad and represented not just in that product but some of these other ev concepts, as well. >> in talking about ev, one thing we've been focused on is ride sharing with uber and lyft going public and not just cars but also scooters and electric scooters, et cetera. how are you thinking about that? is that a potential threat for harley or an opportunity >> we see the mobility landscape is exciting and certainly there is a lot of interest and a lot of positioning and moving around and you could think of as the moment as project live wire was a few years ago. m midpowered sort of lightweight ev that might serve a ride sharing platform in an urban environment, for example, and we've had these on test and development and having a blast widing them around and showing the world what's possible from harley-davidson and how you might get on two wheels that is

something friendly and fast and fun with a twist of the throttle and that's what this represents. >> you'll have to let us know. keep us abreast of those discussions you might potentially be having and i see you're starting young with recruiting new. >> an acquisition we made, this is stacik and this pedalless electric bike will be available in harley shops. so kids having fun with their family, moms and dads terragoar around the racetrack, getting people the opportunity to get on a powered two-wheeler as soon as possible. >> matt, thanks for joining us here at the new york stock exchange >> jon, back to you. >> what do they sound like that's what i want to know. meantime, shares of uber and lyft dipping further as we continue to watch the ipo market

and "the wall street journal" reporting uber's ipo was hurt by the fact that large investors already had a chance to invest and took a pass on buying more tusk ventures founder bradley tusk joining us earlier calling out some critical media voices >> lift has always been good on narrative and uber is good on narrative also which is fine it kind of keeps people off your back. >> i don't know if anyone can keep them off your back. joining us is cara swisher tusk made an interesting argument that the media was somehow the cause of uber's needing to push out travis and that getting dara was supposed to solve for that but maybe didn't your take on that and what more specifically is dara khosrowshahi going to phrase more criticism with the stock price where it is. >> i don't know what that means, bradley, sorry, bradley. that's crazy

it's not the media's fault they had all kinds of problems there. he was managing that in a way that was so problematic on so many levels, especially just it was. there were so many issues of mismanagement and other things that were just terrible so blaming the immediate were is a ridiculous thing secondly, it's going to -- dara is under pressure to make it work but inheriting a system that created by travis where it was highly funded by venture capital and these rides as i've said many times were subsidized by these massive investments in order to grow the business and that's one way of doing it but now when it's public, people can see these numbers and take a look at them and judge them for themselves and see if they can make a bliss ousiness out of whr it's freight or delivery and execution and coming up with an economic model that works which i don't think is that difficult to understand why the stock market is reflecting badly on this if travis was ceo now, it would be the same exact thing and worse because there would be all

the other things >> and it seems to me there is this effect where there's some bloggers, writers out there who look at a stock price and then try to construct a narrative to fit the stock price and since uber's price has been down it does seem like there's more criticism of the culture, people drinking mimosas the day of the ipo. maybe some things went wrong, criticism of dara. how much is that going to impact uber's i guess runway going forward and khosrowshahi's lieutenants and his efforts to remake the company. >> i don't blame dara for the past culture he's been trying to fix it as i said it's economic and they have to come up with a business plan that investors like i don't think it's that difficult and, you know, whenever people are hand waving about the media i always am like, that really is not what's happening. it's that they have a business plan that is challenged and doesn't mean it's again like i said a million times if you

think i'm being negative it's a great fascinating business the issue is that is an economically sound one they'll either figure it out or not and dara should only be judged on how he manages the business the stuff with the mimosas was stupid but i think he's committed to a better culture at uber or at least one that isn't just appalling and so i think, you know, that was on him but that was just a mistake, i think, probably most people are not focused on that. i do think people are focused on the money like where is the money? show me the money. >> not particularly unusual either, though, mimosas and ipo -- not every company's culture is under the same scrutiny like uber continues to be. >> i didn't hardly pay attention to that and, you know, it was just stupid. it was stupid but at the same time exactly they had an ipo. you can have a drink for an ipo, i guess. but, you know, i think again the focus on the business should be the focus -- jim of netscape

used to say the main thing is focus on the main thing and so the main thing is the business and so this stock will go up or down based on the business, not on anything else and how well it does and how well they can deal with all these challenges including investors -- i'm not the one -- i'm not blackrock blackrock wanted to sell shares. tiger global wanted to sell shares and wanted to not buy more so they're making their digs not based on anything but their contemplation of the market essentially >> yep the market is certainly active in this one and will probably continue to be kara, thank you. >> thanks. still to come this morning, semis and apple getting hurt in today's trade and what's been obviously a rough month for that sector names like qualcomm, broadcom, micron, intel leading the downside although the dow's repaired losses down 51 at mercedes-benz, we make every vehicle to be eye-catchingly beautiful.

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here is what is coming up top of the hour. with big name chip stocks getting hammered, which if any are worth buying? plus our call of the day and tesla at a turning point we'll debate where that stock could go all coming up top of the hour. that means we're on at noon. and you mentioned tesla.

thinking about elon musk's tweet, the stock thousand down at around 200 bucks a share, on pace for its ninth negative day in ten meantime the dow coming off its fourth straight week in the red. here are some stocks taking a toll on the index this morning nike, intel, apple ♪

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for at least half of the dow'ses w losses. back in less than three minutes.

there is a saying if you do what you love, you'll never work a day in your life at apple, i learned that is a total crock. you will work harder than you ever thought possible. but the tools will feel light in your hands >> in a weekend of commencement addresses, it wasn't just tim cook's people are abuzz about, but robert smith at morehouse. >> robert hit gave 396 graduates this amazing graduation gift >> my family is making a grant to eliminate the student loans >> that's right, all of it

it could be tens of millions of dollars. so a lot of people asking who is robert smith he is the richest fwrin in the country with flyn african-amerin the country. he is founder of an equity firm which mainly focuses on enterprise software and data companies. smith once said of his nearly 300 buyout deals he has never lost money now, he grew up in denver, his parents wereteachers i started at kraft and goodyear as a chemical year and then founded vista in 2000. he bought tmost expensive home n downtown manhattan last year, the $59 million penthouse. and heel owns homes in malibu and austin he was the first african-american to sign the buff felt giving pledge and he gave $1.5 million to scholarships and he has also given generously to smithsonian

and carnegie hall where he is now chairman back to you. >> fantastic p and a sign of the times spuch a generous gift. >> absolutely. what a story thanks, robert frank powell tonight, pay close attention and we'll get retail earnings end of the week let get to t let's get to the half. chip stocks heading closer to bear marketñ ñrerritory can anythingç stop that slide q nd most attractive when the sector stabilizes plus one wall street firm identifying the momentum stocks it says are set to soar. we have the list and the big bank that just got slapped with a downgrade all wait to sell that is our call