good friday morning. it is 8:00 a.m. at google headquarters and 11:00 a.m. on wall street. "squawk alley" is live ♪ >> happy friday, welcome to "squawk alley. i'm jon fortt. carl has the day off data we've been talking a lot about the value of data in daa digita

world. it is going digital faster in this pandemic. deep, rich, targeted data is the gold of mega cap companies like facebook, amazon and google that are the targets of lawmakers and regulators rich, targeted data is also the goal of nation states and hackers. this week has seen a fight between apple and facebook over how data should be protected and this morning a clearer picture emerges of the seriousness of the solar winds hack that infiltrated the u.s. government and multiple major companies getting data and keeping it secure whether we're talking about consumers, governments or companies is top of mind >> yep, we've been calling it the new oil all weekend beyond that as well you know, the u.s. intelligence community was so focused on the u.s. presidential election they expected a hack of this scope and size to be very disruptive but instead it was very quiet. it was very stealthy instead, the attackers were looking to, guess what

glean data by infiltrating networks they were looking at u.s. government agencies and corporate networks so, of course, it's valuable to everything we do as jon said its what's really at focus in the apple versus facebook battle and it's really hundbehind a lo the antitrust scrutiny that we're seeing of big tech companies. >> yeah, go ahead, jon >> i'm upset about this solar winds thing. and here's why i can see now with this hack why the government is so paranoid about huawei, right? this also shows how just hair brained it was to focus just on china. solar winds is a u.s. company. it was compromised from the russians by all evidence that they v china, not involved in this so when you're focused on tiktok, focused just on huawei, not on setting rules and

policies to protect the data which we, which i have been saying all year, no surprise when something like this happens. >> well, let's not forget it wasn't the u.s. intelligence agencies that actually caught this act but it was fire eye, right so it does raise a lot of questions. how prepared are they? but again, this one and what we've been hearing from a lot of guests on our network has been of a very, very different nature, right? even the most sophisticated systems couldn't track this because it was so sophisticated itself and complicated so do you allow for that, jon, that there is perhaps new attacks coming that they couldn't have anticipated? >> no. >> you don't guf thive them cre? >> no. instead of as the u.s. government, just making blanket rules about chinese companies as if china is the only danger in the world, why don't you work on figuring out how to detect

network level hacks and activities in your network that shouldn't be taking place in the ex-filtration of data. if you do that, then you're looking for something like this and you also get the china stuff covered at the same time >> jon, i like seeing you fired up this early in the show. i would argue though that they were looking at the russians they were just looking at the wrong target, right snt u. >> hoerse shoes and hand grenades >> you know, you mentioned it, too. data, the oil behind a lot of the antitrust lawsuits that we're looking at including the third google lawsuit in just a few months that we saw yesterday. so that's where we're going to start with our first guest he is part of coalition of states filing an antitrust lawsuit against the alphabet subsidiary the ftc's bureau of competition director joined us to talk about the troubling power of big tech. >> one thing that we're trying to ascertain is whether the

platforms are illegally using the market power that they have to maintain the monopolies and snuff out competition. just because you build a good product that attracts users does not mean that you committed an antitrust violation. it's how you use the market power and how you got that market power in the first place. >> attorney general phil wiser, colorado attorney general, he is the lead a.g. on the case. thank you for being with us. >> good morning. >> so a few issues here. one is you're looking at google search business. but also the ad technology so let's break them out. you want to look at search first. how do you prove that it's a monopoly when other choices are just a click away? and importantly, question that a lot of folks are asking, how does this harm the user? >> a couple points first off, we look at how consumers behave

and over 90% of consumers only use google for internet searches by all established measures. when you have that type of a market share, you're a monopoly. i don't see this as an easy case for google to make the overwhelming usage goes to them how does that hurt consumers they don't have choices. consumers are not seeing or benefiting from rivals in the marketplace that may offer different types of services with more privacy protection, for example. what google has done is use contracts and other exclusionariy strategies to basically snuff out rivals who could be giving them a run for the money and could be giving consumers better products and services >> right i think you're referring to some of the contracts that has to be the default browser. but attorney general, i can type on my computer right now and go to another search engine google's argument is users choose to use google.com they're not going to the other

competitors, like i said, are just a click away. >> and our argument is look at what consumers are actually doing and google knows that. the default setting, the baked in search function that comes on your smart phone or even in many of the smart devices or connected cars that's what they end up using the overwhelming number of searches are driven to google. because of the power of network effects, the more searches on google, the more light and powerful google is, this reinforces itself. our goal is to unshackle and to free up competition, taking away the restrictive contracts. >> mr. attorney general, i guess to your point, google wouldn't be paying billions of dollars to apple to be the default search engine if it wasn't worth anything it does raise a couple eyebrows over here. i wonder on the substance of the complaints, the advertiser angle seems to make a lot more sense to me when you argue this end up with higher prices and sort of

lower quality when there's not competition. why not focus on that, on the advertiser as the consumer and the end user because they -- i think it's easier to argue are not getting the benefit here >> jon, this is an argument with two different sides. advertisers we believe are paying higher prices because rivals in the search advertising market are snuffed out and there are ways in which we talk about google using the platform to make bing look less appealing than it actually is, hurting their alternatives and raising prices to advertisers. on the consumer side, however, consumers also benefit from choice even if it's a free product. you can have a privacy protected search engine that guards your data in different ways from google consumers would benefit from that choice. you might get a search engine that gives you access to ticket deals. what we see in markets like

credit cards we want to see if we can bring that to the sfrp engine basketball as well. >> there is a wham a mole when it comes to remedies yes, i understand that you want to spread the default goodness around but just assoon as that happens, maub evhappen happens, maybe even before that happens, you have android coming out. what is the next play that might make the producer less relevant. are you able to construct a remedy that addresses the future >> we have to look forward one of the important points is we're bringing this case now before the next generation platforms take hold. connected cars is at this point an only glimmer in the eye of what it could be we've seen a connected cars is what happened in mobile. they locked up the distribution channel making it very difficult for rivals to i have a fair

chance in the marketplace. you want to open the channels. whether it is smart tvs, connected cars or smart home devices, you he compete fairly and use whatever search engine technologies they want >> attorney general, finally, when it comes to the penalties that you want to impose on google, europe, of course, has been far ahead of d.c. in terms of regulation. they impose billions of dollars on fines one of your colleagues, nebraska a.g. said that fines are kicking gorillas in the shin we have remedies much broader in scope. is that going to be more effective? >> nebraska, perhaps, people do kick gorillas in the shins it's not an experience i'm familiar with but my colleague was fond of the metaphor what i would say is we need a broad set of remedies. remedy that's actually get to the underlying conduct

whether it is the contracts or the discriminatory conduct or other ways that rivals have been put at an unfair disadvantage. simply because having a fine as doug peterson noted is not sufficient we are seeking a more broad set of robust remedies to enable and restore competition in this marketplace. >> well, we will be following very closely attorney general wiser, thank you so much for being with us and, jon, we should note that alphabet shares down .8% this morning. back to you. >> all right well, we are just now getting another update on stimulus talks. some hangups reported. surprise, surprise we have that for you >> jon, a fight over the fed's emergency lending powers is throwing a wrench into the final negotiations over a covid-19 relief package they wanted to prevent the fed from being able to restart the programs set up under the cares

act and that are supposed to be shut down by the end of the year i now have been able to see a copy of the text that he would like included in this deal it would appear to prevent the fed from ever setting up a program like the ones that were in the cares act ever again. the main street lending program and mun is imliquidity facility. that is a major problem for democrats. an agreement was in sight to deliver aid to the american people until senator toomey and republicans inserted an 11th hour, purely political, unrelated provision to tie biden's hands and risk throwing the economy into a tailspin. now toomey says that the proposal would not be a dramatic change of the fed's emergency powers and preserve the independence but he said that this is the most important provision to him in these talks so, guys, this is yet another bridge for republicans and democrats across as they are staring down the midnight deadline to fund the government and reach a deal

back to you. >> all right thank you. now watch palantier. credit suisse downgrading the stock this morning still up almost 50% in the past month. read more about it on cnbc.com we're back in a moment idelity -- a visual snapshot of your investments, key portfolio events, all in one place. because when it's decision time, you need decision tech. only from fidelity.

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welcome back it's a story that keeps getting bigger microsoft is one of the fortune 500 companies affected by the

major hack of solar wins which was carried out by a nation state. i don't know if you heard. i'm a bit worked up about this this morning because this strikes me as the huawei scenario that united states was ringing alarm bells, you have to protect our networks meanwhile, instead of coming up with data standards that apply to everyone no matter where they're from, an american company gets hacked by a nation state presumably russia and here we are >> yeah. it's not great i think the only way for people to really think about it is that this attack is still on going. it's not over. i think we're conditioned to think of hacks as data breaches where someone breaks in, everyone's personal data gets exposed. we change our pass words and move on n this ok, it is much more serious at tackers are still inside of the systems. they're trying to figure out exactly what systems were

targeted, what companies, what organizations, which parts of the government were targeted and what offensive capabilities remain in the system even though we know the hack happened. with regards to microsoft -- go ahead. >> it's like handing out a police sketch of the burglar and say nobody let this guy into the network instead of setting up an alarm system that protects against everyone that's what we've been doing with china that's my point. >> yes exactly. and if you look at microsoft statement, you know, they were affected they said no customer data was exposed. they had no impact microsoft president brad smith put out a long post that was sharply critical of the government's approach to cybersecurity. he said time for unilateralism is over. we need a global response to nation state threats microsoft president brad smith is not a rash guy. he's a pretty calm and

thoughtful person. you see his blog post. you see what he wrote. he is calling it a time of reckonning a moment of regulckonning for national security apparatus. i think the trump administration dropped the about a will in being so focused on specific chinese companies instead of the entire cybersecurity infrastructure of the united states >> so i tend to think that the u.s. intelligence agencies can be focused on both china and russia if i were to play devil's advocate here, could one perhaps argue that this attack was so sophisticated that it was almost impossible to prepare for something like this? and this is simply the world that we're living in now especially amid the pandemic more and more is going on online data is more valuable than ever. is this what is keeping security experts up at night? anything we do may not be enough >> yeah.

this type of attack is supply side attack. so the bad actors went into a software update and they infected the software update upstream of where people would install it so that is a very sophisticated attack it is also the nightmare scenario it is what cybersecurity experts, researchers have been warning about for years. so the fact that it happened, we should have been way more prepared to detect it, mitigate it and shut it down. and in this case we're seeing a bunch that's in the united states ghost that is the national security capabilities, how much we outsourced the entire government instead of having wholistic approach to cybersecurity.

anyway, turning to another big tech story this week, facebook's face-off with apple over privacy. this is heating up to an interesting extent, particularly on facebook side with the rhetoric that they were using. apple's response, i think, was rather measured. >> i think apple thinks this is funny. in you're facebook, what is the goal of this ad campaign do you want them to say your data will be used? that doesn't seem likely in the current scenario the government is trying to break up facebook. are you trying to shame apple of being less protective of the users? apple is not going to do that. the real goal is point out in the middle of the antitrust case that's it has a big competitor it faces threats or what it claims are threats from another tech giant in apple.

i think holding out apple as a competitor is part of the strategy of dealing with these antitrust threats. i really don't think a bunch of small business owners are going to be as affected by apple telling people that facebook is using a bunch of data. that data is still on facebook the business owners want to run ads on facebook. they still can they can make use of all that information. it really comes down to facebook saying apple can hurt us and because they can hurt us, they're a competitor because we have a competitor, maybe shouldn't break us up. >> is that -- is that fair i mean, yes, i understand that this goes to the court of public opinion, i think users likely to side with apple in this case but does facebook have somewhat of a point when it comes to small businesses i mean, this may not affect big brands but smaller brands with smaller marketing budgets, they rely on them to reach certain consumers.

>> but the ads run on facebook this is one of the places where it's ad tech is so complicated and so unnecessarily complicated that data still on facebook. facebook still hosts a huge variety of first party data. they know what you like. they know your interests they know where you're coming and going on the web for apple though, just ask people if they want to opt into tracking does not take facebook's data away f you're trying to buy targeted ads on facebook, facebook still has the enormous reserve data to help do you that work the question is whether they can collect more data and importantly whether the ad ecosystem can extend to other apps on the phone. the vast majority of small businesses are just buying ads on facebook. they're not trying to go out into the broader ecosystem so we'll see i think, you know, there is a ran facebook is talking about small business, not facebook itself small businesses are historically, i think, politically more appealing to

people than facebook but here i think they have to really show the harm the harm is more abstract than what i think the ads are explaining >> yeah. that's right small businesses, they're the hard-working americans of tech nobody's against small business. everybody loves them thanks have a good weekend. >> thanks so much. >> you too >> it's been the top stock in the s&p this year. but the run is over. the analyst who downgraded etsy this week is next. stay with us

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etsy has been having a top performing year, up more than 320% but our next guest is downgrading the stock from a buy to a hold. scott, good morning. and i just wonder how much of your call has to do with etsy and the runup this year. how much has to do with e-

commerce at large, the trends we saw accelerated this year and sustainability >> good morning. it's a mixture of both in the case of etsy, as you mentioned, the stock is up 320% year to date as we entered 2020, this business traded at five times forward revenue and four times 2022 revenue we sit here today, the stock now trades at 13 times 2021 and ten times 2022 so a lot of the 320% move, a good portion of that, is multiple expansion you've had revenue growth acceleration precovid-19 from sub30% organically to, you know, peaking at 140% slowing to 120 last quarter you know, they could do as much as 90 to 100 this quarter. that is 10% to 20% ahead of the estimate the same for 1-q the problem is when you hit 2-q of this year and begin to comp the covid-19 numbers, i think the business is going to be

lucky to grow at all meaning, zero growth i don't know that the multiple being 2 1/2 times what it was precovid-19 is going to be able to hold. that's the challenge that it faces. great company, very well managed, a-plus management team. but facing a tough six to nine month road ahead, i think. >> right like a lot of the names that we've seen benefit this year i wonder, scott, do you think that some of the other e-commerce names will have the same problem i'm looking at ebay which is an underperformer this year to 3900% ga300 this year. >> you have, i think, where the consumer more vertically oriented, the market is in terms of being levered to where growth was this year, the more problematic the comps become etsy has 30% of the business is home and the other 20% is craft supplies and the makings of

masks are a component and another 10% right now is masks itself wayfair heavily levered to home. general market places, they'll have comp issues it's not going to be as dramatic in the case of ebay as they face the comp issues, they have incremental payments given a deal with paypal ending in place of this deal that is better economically for ebay. they have an offset. each one of the companies one way or another is going to have a head wind. >> right so perhaps a little more diverse fiction with the platforms scott, thanks so much for being with us. >> thank you >> let's get to a news update. >> here's what's happening at this hour. the supreme court is holding off on blocking president trump's plan to exclude undocumented immigrants from thecensus coun for now. they have thrown out a lawsuit challenging the move however, it did leave open the

possibility of new suits once the trump administration completes the plan the pentagon has reportedly halted briefings for president-elect joe biden's transition team. the move was ordered by acting defense secretary chris miller and on capitol hill, lawmakers say that white house is giving few details about the recent hacking campaign against the government and private computer systems. representative stephen lynch says that a classified briefing he received was very disappointing. overseas, more than 300 kidnapped schoolboys have been leased after a week in captivity. a terror group claimed responsibility for the ab zuctions saying the western education they are receiving is unislamic. but they have been returned back home. >> thank you morgan stanley has microsoft as a top pick in 2021 we'll ask the analyst behind that call about it next as well as the impact on microsoft from this solarwinds hack stay with us we love the new apartment.

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welcome back let's get more detail on the cyber hack that impacted 40 u.s. companies including microsoft. we have the latest >> yeah, good morning, jon you just heard, members from congress on capitol hill are emerging from a classified briefing expressing frustration with the trump administration briefer there's saying that they're not get enough information they say there was mor information in "the new york times" today about this hack

than they're getting in a classified setting some of the members of congress also expressing frustration that president trump has not said anything about this attack yet the people who are speaking about this attack, though, are painting it in dire terms. here's the statement from microsoft's brad smith in a blog post, smith saying this attack provides a moment of reckonning a global cybersecurity response he says is needed here microsoft also saying that they had detected some evidence of the solar wind malware in their systems. they're wrang wlg that right now. we have a statement as of last night from joe biden who is vowing to work with the u.s. allies to deal with this problem. biden saying, our adversaries should know that as president, i will not stand idly by in the face of cyber assaults on our nation i spoke last night with tom bossert, the former homeland security adviser he told me he thinks it's premature and potentially naive to just think that this hack which security experts are

attributing to the russians was done for pure spying and information gathering purposes he's worried that what the russians will do with this information once they're inside the systems is that they'll use that access to spread disinformation, chaos, and confusion inside the government and inside the private sector by manipulating data, sending bogus e-mails, that sort of thing. that can continue for months if not years, he worries. and all that, john, brings up a question which is that microsoft is saying that there are more private targets of this hack than government targets of this hack so presumably there are a lot of companies and that is the extent of the damage here when does this become material event. we talk about that on the damage to their systems what is the scale here in the private sector they're really focused on the government a lot of companies have been hit

by this we don't fully know the full extent of that just yet, jon. back to you. >> important information about the government and corporate responses or lack thereof. thank you. we're going to start there with our next guest. also out with a 2021 software outlook. and his top pick is microsoft. joining us now is morgan stanley's keith weiss. happy friday so microsoft has talked about this hack. the immediate damage seems to be limited. but how does it affect if at all the investment thesis in software where it applies to security >> thank you for having me on the show i think this is going to prove to be actually a real demand event on the go forward basis. you can think about it in a couple ways. one, the demand on the security vendors themselves i think what we'll find is given the exposed vulnerability that this shows, the fact that the

bad guys can still get in to even our more secure networks in the government, even into a security company like fire eye really shows that there is more work to be done on that security side of the equation and in the near term, what we have to do is understand what those vulnerabilities are and looks like the supply chain in terms of bringing software into your environment is an exposed vulnerability. how do we address that number one number two, how do we fix the problem? right? there is going to be a lot of time spent investigating where has this hack gone what has been compromised? what is good and what is bad in your systems that's going to take a lot of human capital, people power to be put into the equation a lot of tools active threat hunting tools going into the environment to find out where you have been breached and what is good and bad. then how do we respond on a go forward basic is to make sure this doesn't happen again? you're not going to be able to stop all the threats what can you do is monitor what

is going on in your environment, to try to find this stuff faster what we're going to find is the most malicious part of it is it's been persistent in these environments for up to nine months >> let's talk more about microsoft itself you note that tsz been sort of stuck for most of the last half of the year. i'm looking at its movement relative to apple. what happened to microsoft just from a trade perspective the back half of the year? and what do you think you it will take in 2021 to get in gear >> sure. so i think part of what happened with microsoft is that you went from a period of really great results. microsoft had two straight years of every key performance is to the right and heading in the right direction. revenues were accelerating over the past two quarters, they had to deal with one, covid-19 there is real impacts on the business from covid-19, and, two, tougher compares.

it's not like the results have been poor. the earnings estimates are still going up but not as well as they had been doing prior period so there is something of a down shift in the overall multiple. people were not willing to play that peace multiple for results that are still good. burt not the key results i think a lot of that has come into the groups. that is a more reasonable level. so that is a good setup. and they stop working ghen my opinion is seeing better results in azure, that growth starting to stabilize we see the spending activities going none 2021 which is public cloud computing. that gets us fund. ally positive on them. two getting past the tough compares you had a really big piece of the refresh cycle going on in 2019 that becomes a tougher compare once you get over that you don't

have as much as a head wind, you had good product cycles going on once you get past that or the tough comparison, there is going to be a much clearer road ahead. the good part of the equation showing through to microsoft bottom line. >> right yeah maybe heading into and past the midway point of 2021 point well taken thanks, keith. >> keith weiss of morgue an stanley. >> and, jon, another day, another bitcoin check. this morning at about $22,000, just under 7 under $22,700 more on the cryptocurrency still ahead. do stay with us. (music)

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anncr: give customers access to precisely what they want, when they need it the most. with adyen, the payments platform that delivers convenience for all. adyen. business. not boundaries. the ipo window seems to remain firmly open just getting a report now that bumble is set to file confidentially for february ipo. and, jon, yesterday we got news of poshmark, of ui path and coin base now the ipo market has had a lot thrown at it in 2020 2021 is proving to be potentially just as interesting if not more. we talked a lot about the effect that retail investors have had you saw the huge first day surges in airbnb and doordash. imagine coin base introducing bitcoin enthusiastists into this market and pushing bitcoin further into the mainstream as

we watch it every day climb higher and higher. >> i don't know. bitcoin enthusiasts, are they going to buy coin base or more bitcoin? this reminds me of when i first came aware of coin base. i took a meeting five years ago with brian armstrong, the ceo. we met in san francisco. got some lunch to show me how the coin base wallet works he sent me $1 worth of bitcoin i sthent screen shot to the producers this morning here's how much that $1 is worth today, $80.02. before you call me dumb, folks out there, yes, i might be dumb, but not for this rveneason, i decided no the to speculate in bitcoin for the same reason that we don't buy individual stocks if i put a bunch of money in that, it might influence the way i cover the thing. but, wow, adx right there since five years ago >> jon, you had your integrity but imagine you had put $1,000,

a few thousand dollars in at that time? i have to say, i also, you know, i had $50, of course, like you said, we're not supposed to, we're not allowed to buy huge amounts of shares because kit influence the way we talk about it but just to see what happened with it, i had $50 i think i bought it at the last peak around $18,000. so out of just broken even over the last few months. but it is pretty incredible to see. i mean, we saw the bitcoin winter and it has been incredible ka kate rooney reporting about the institutional interest this time around you have to wonder when you can actually start using it, jon, in your every day interactions. but it's so hard to get your head around let's say a cup of coffee costing 0.00021 or whatever bitcoin perhaps a split in the future at some point to help it go mainstream or maybe we'll see another winter i don't know i don't know how to judge these things, jon. i'm lost.

>> yeah. and who knows what the smart money is, right? institution is supposed to be the smart money. maybe not this time. >> yep, time will tell meantime, take a look at shares of amazon. they are up more than 70% year to date. it is also our next guest's best idea for 2021. john blackledge joins us now john, thank you for being with us aside from the bitcoin talk, make the case for us amazon up 70%. i no he that it's firing on many, many cylinders how much room does it have to run? >> it has a good amount of room. it's our top large cap pick for the sixth gleyear in a row. we think it will continue into next year. we raised our price target to $43.50 a share that implies about 35% upside from here. the two key catalysts, strong revenue growth and margin

expansion. we think amazon will see further e-commerce market share gains as the focus on grocery in recent years really paid off during the pandemic then our survey data suggests $77 million u.s. prime subs in november that will drive revenue growth and strength in advertising and aws. then on profitability next year, we're 30% above the street on income en that is driven by the high margin and advertising businesses they're also lapping over $10 billion in covid-19 costs and lapping the 50% expansion in the fulfillment network. a lot of levers here a lot of things working. that's why amazon is our top pick >> right you mentioned groceries. how do you discern this is a home run for amazon already. there is some questions about this strategy. what advertise doing with whole foods that perhaps it hasn't seen the same kind of gains as other grocers this year. i is also another area that it's

going into, health care. in my view, neither of these are home runs yet. and it's not like everything amazon does is successful in so what you are looking at in terms of those two businesses? >> grocery and consumables are huge areas it's a $1.3 trillion retail market from the data that we have, that we're tracking, online grocery users doubled this year with the pandemic and we think it will be a huge driver for e- commerce growth in the coming years amazon was really the key beneficiary. we think they'll invest further in grocery and then on the pharmacy side, like i said, 77 million prime subs our data suggests 60% would try the am doesn't pharmacy. so we'll be tracking that. i agree with you it is early on the pharmacy side but that prime fly wheel enables

the company really to be able to enter different retail and other verticals and pharmacy one is of them it's a huge market over $500 billion market >> john, congratulations on the streak with amazon picking that as your best idea six years in a row. it's been a great idea all those years. i have to ask, what's been your second best idea over that span and has it performed as well >> you know, we're fortunate, john, we cover a lot -- the internet companies, a lot of great companies. we had buys on faang stocks the last, you know, five years, five, six years. so i don't -- we had a lot of winners. the one stock that i kind of like also going into next year is alphabet. you know, it's been a lagger relative to facebook and amazon last five years, last three years. but they're breaking out of the cloud business and they're going to have the

easy travel comparisons as we get into the second quarter. so they have more levers going into 2021 than they have had in the past and, you know, regulatory is certainly a risk as it is for facebook but alphabet is one that we also like going int like going into next year. >> john, quick one at the same time we talked about the supply wheel logistics being such an important part of this yet unionization in the united states is a growing threat for amazon i'm wondering if you're factoring that into your equation >> that's a good question. one thing i would say is going into this year, i think amazon was thinking it's all about prime one day. they already had plans to build that fulfillment network as we emerge to some kind of new normal, whatever that is, the growth in the fulfillment network, they're adding 140

million square feet to this, that's the same size as 2017 so the growth will drive speed of delivery and one day that will be a huge driver for the e-commerce business. on the union issue, we'll have to see how that plays out. we'll be following it. >> absolutely. and i see it perhaps as an underappreciated risk when you talk about underappreciated things in the amazon ecosystem john, thanks so much for being with us. >> thank you thanks a lot >> coming up, why sony is pulling distribution of one of its ggbiest names, cyber punk. stay with us to simulate stock portfolios. they're able to buy and sell stocks in real time. thanks to nasdaq's cloud data solution.

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in case you missed it, sony has pulled the intense i marketed game cyber punk 2077 from the play station store after backlash from players over the quality and multitude of bugs it's just glitchy. sony said it will offer players full refunds for digital copies of the game if they ask for them shares of the developer, cd project, are getting slammed today down 13% after already losing nearly $7 billion of market value since the game's release last thursday. head to the trending section on

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a big moment coming for tesla after the bell today bob pisani breaks it down for us. >> there's a lot of unpredi unpredictability here, too, isn't there? >> yeah, that's the problem. tesla is just huge it's going to go into the s&p as the seventh biggest stock. that's app awful lot to stick in here in a few minutes of trading at the close today the pe ratio is going to go up because of that to 22.6, which is already pretty rich you have a strange confluence of events today first you have the tesla enters the s&p 500. then you throw in the rest of the s&p rebalance, which normally happens four times a year on this day as well and then you have the quadruple

witching day, we may have the biggest trading day in history people are concerned at the end of the day all of this piles in, it's a lot of money sloshing around, we could get some price displacement obviously everybody is gearing up for that. here's what's really important this highlights how important all this passive investment business has become. it's about a $31 trillion market cap. that's almost 80% of the value of the whole u.s. market and about 10 trillion is now linked to the s&p, about a third of the money is passive investing. that means people have to mechanically, when tesla goes in, everybody has to buy and tesla, we don't know how many people really index the s&p 500. this is potential for chaos going on here, but it highlights the fact that we are buying low, selling high price is up 600%, folks. they're buying tesla at stew

spe - stu spe s stupendously high prices keep an eye on that at the close. >> thank you, bob pisani as we head to noon all the major indices are fractionally in the red. with that we'll head to the half "i'm scott wapner," big bet on tech as money continues to pour into that space. we'll discuss that and debate it joining me for the hour today, steve weiss, pete najarian, shannon, fred talkington and aastacia let's check the wall we did hit record highs an