tariffs they could retaliate against, let's say, the american service i industry like apple, amazon or googlethis is also likely, but of course the eu wants to avoid that. sarah: alexandra, i want to talk about the mood in the u.s. we know american farmers and businesses are taking a hit from this harsh trade policy in the trump administration announced tuesday he will provide up to 12 ilya dollars in aid to farmers -- billion dollars in aid to pharmasset by these tariffs. -- alexandra: you're right that at the moment he is feeling a lot of pressure in criticism from manufacturers here, from farmers, as you said, and also within his own republican party. especially talking about farmers, they say they are already really suffering to the measures imposed by u.s. trade partners in response to u.s. tariffs. they say they have lost about 13 alien -- $13 billion u.s. so far. the trump administration has announced aid up to $12 billion in emergency help. however, many farmer organizations are complaining is not enough. deal not be enough to help the farmers to survive, to continue to run their busu

so whether it's amazon or google or apple or facebook or any of these tchaps sit as a layer on top ofernet, we have shown through our actions over the last 30 years, and continue to, with the usage of instagram and others, i love all the people protesting facebook on instagram. we prove as humans all the time how we think about privacy, which is we love to talk about it, but we don't fear it as much because the underlining issue is the amount of bad things that happen to the health and well-being of our family or having our money stolen is extremely far and few between. emily: what about the forces that may be bigger than us? the fact that russia tried to hack our elections, using facebook, that there's evidence that they're doing it again to sow discord? has facebook done enough to prevent itself from being weaponized? >> look, facebook, this network, fox, cnn, twitter, it's all the same game, where i think about it, from a mack row, which is, we -- macro, which, is we make decisions. facebook or the russians didn't make us pull for trump or hillary. so i think that the information t

: we can look at the scaling and you can see it as a defense measure, a prophylactic against amazon or googlee going to be enough to protect them from that? know. it is a combination. i think scale helps, but it has to be product. one of the things that could come out of this, or will come out of this comcast, disney, fox thing is one controlling shareholder of who's who. content you could put out could be interesting if they put all content onto lulu and mount that asset as a real offense against those things. that could be interesting. there are all kind of ways this could get interesting. ed: you have been very successful at identifying and growing businesses that have done well at warding off the big tech, facebook, amazon, google, etc.. the secret to that? had to you build businesses and not allow those huge companies to steal the march? joey: i think you have to focus on product and brand. if you have a big roddick and you build a brand trustworthy -- brand that is trustworthy, you will compete because your customers fight for you. once to herlatforms your business, your customers will

expect you'll see a lot more who knows when that will happen. >> we have not seen netflix or amazon or googlee serious acquisitions, will this be the year when the big companies make the pig purchase and what types of companies do they want to buy >> amazon is doing so well with the organic growth of subscribers. in amazon, it is prime subscribers. it is not clear they need to do much else. i would say that i am surprised that google hasn't been more ainquisiti ainquisitive you see the chinese companies being extremely inquisitive to increase their subscriber bases in other areas of business and i have kind of thought all along that google could get more inquisitive and am surprised we have not seen it today. >> and apple will put the cash to work? >> always hard to know with apple. historically, the company is very much we're going to build it here internally rarely makes big acquisitions. they did beats, but it doesn't really step forward and do that a lot. but google has in the past and they have been silent recently so i expect a little more from them. >> dick costolo, thank you appr >> t

. >> not to mention, that anti-trust argument you started to hear around facebook, amazon, or google,t amex decision by the supreme court a couple of weeks ago was important in terms of how it came down in two-sided markets. >> there's also no indication that that's what they're looking into >> no, not at all. but i just bring it up as another risk that has, at this point, abated a bit as a result of that decision >> s&p tech sector accounting for 102% of year-to-date gains for the s&p 500. crazy. >> all right we've got an opening bell about 5 1/2 minutes away don't go anywhere. 'rba rhtft ts.wee ckig aerhi alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. ♪ ♪ each day, brings new possibilities. that'

haven't said anything, the lobbyist for startups, they are holding their tong periodic you are amazon, google or a corporation, you are hoping that he will have a pro business or for a corporation law.pretation of the emily: and as you said, he is still relatively young, and he could influence the court for decades. thank you so much garrett, for weighing in. coming up, microsoft is taking on apple's cheaper ipads with a new device coming in at just under $400. details, next. this is bloomberg. ♪ emily: microsoft is going under the low end of the market, coming up with a cheaper tablet that takes on apple's cheapest ipad. and goes for $399, half the price of the current surface for tablet. however, the price comes at a cost, it has about four hours less battery time. and, it is a happy anniversary for the apple app store. on this day in 2008, they opened and sincere then, there are over 2 million apps just for iphones. over 10 million apps were downloaded, and the app store is now the fastest growing part of their business. and that is it for this edition of "bloomberg technology." tomorrow, we

there is serious concerns talking to one industry in particular representing companies like google or amazon or apple it was the top five priority to get that legislation changed but their concern so you also have the little tech concerns that i alluded to earlier where you could drive away early seed investment it extends the review time from 30 up at 45 days with extensions and challenges could go longer with early-stage investment deals are done within a matter of days and if it can't be then they won't do it. there was one gentleman who has received money and said are we driving a bulldozer towards the rose garden? that is a concern that we have heard. i imagine we will continue to hear that. >> do those deals exist between passive investment or takeover access to information technical information the ability to influence management according to a senior treasury department official. >> yes. with a challenging issue who provide the seed money? obviously a fad chinese nationalist name to the board of directors it is clear they have an active role or if they are an executive they have a mo

focus is the question of what the tech giants do when you look at companies like apple, or amazon or even googleamazon especially investing more in preem upcontent. could see a company like amazon try to buy cbs could we see discovery get snapped up by a tech giants that wants more of a presence more of a stronghold in the original premium content space. we will see what the deep pocket tech giants do we have to note that soft bank is here. he has a massive fund we'll see if he wants to invest in any of the assets then also group on reportedly up for sale the chairman is here as is the ceo of ic who could be interesting in lets buying group on. >> looks beautiful out there thank you again. >>> still ahead will will the supreme court nominee be good or bad for business we take a closer look at that one next attention homeowners age sixty-two and older. one reverse mortgage has a great way for you to live a better retirement... it's called a reverse mortgage. call rfree information kityour with no obligation. it answers questions like... how a reverse mortgage works, how much you qualify for, the

they still were a big important company, but some of these other companies like facebook or google or maybe amazony. >> it is quarterly earnings season in corporate america. today amazon.com, the online book seller, reported that its earnings more than doubled in the last three months. >> the economy seems to be crashing all around us. what can the people who are now trying to fix what's broken learn from your experience at amazon? >> i would say think long term. >> i think the reason that these companies like amazon, apple and google survived was because they unlocked this whole new engine of innovation. >> one of the motivating factors for us is just creating something that we all want ourselves. >> technology and technology companies became the preeminent force in the business world. something that had started small really started to fulfill its destiny as a major disruptive change across many different industries. >> now with more than a billion searches performed every day plus google images, google maps, google books, google finance, gmail and youtube, the company share of the market is huge

amazon or microsoft? all you own and north of $800 billion. >> amazon's growing the most rapid of the three good question. hope google. that's my biggest position >> yeah. >> i don't know. it's a high quality problem either way >> i hear you. we'll step away real quick hang with us if you would. we'll take a quick break and come bk.ac much more with leon cooperman. >>> shares of walgreens have fallen nearly 9% this year options traders are betting on a rebound. doc, what are you seeing >> august calls being bought rather aggressively, judge stepping in and walgreens alliance today, they came in buying upside calls i believe at the 66.50 strike these were august calls. 66.50s bought about 4,000 that's about the equivalent of 400,000 shares i bought these probably hold these two to three weeks, judge got a second one for you glw. okay, so the whether it's gorilla glass or anything else, up 70 cents. 2.5% today year to date, down about six, they're coming in buying august calls in here. also in big numbers. so august 2950 calls, about 5,000 of those change hands rapid fire i bought those my intention is to sell a higher

that drives customer engagement like high-quality premium content and whether it's netflix, amazon, google, disney orcast, everybody is now pursuing the same thing. in an unusual move, stephenson was joined by all of the division heads including john thanky he said they want to invest in more original premium content for hbo. stephenson and stanky talked about how they can have global capability ands how those different investments will enable them to have a valuable, direct relationship with consumers. >> you take these three elements, premium content, 170 million direct to consumer relationships and great ad technology and then combine those with the high-speed networks and we think all of this is a game changer bringing these four elements together has changed the way we think about the value proposition. we spend our time now thinking how to combine these elements to create new customer experiences. >> as for cord cutting, the company says gains in digital streaming services are compensating for declines in the traditional video business saying their new $15 watch tv service is helping drawing in

they all have facebook, amazon and google and one or two other names. i think it's great.nowing money does come out of these, i hope it's material and industrial names. >> i am with you. you explained at the top of the segment here. that is something. i didn't notice that trend going on. i have been watching the industrials very closely. so many of them are meeting top and bottom lines and they are raising guidance. and the newsth we got today out of the e.u. -- and the news we got today out of the e.u. is a very positive sign. >> millennials where doing some smart things. for four years in a row they said the number one investment was real estate. 24% have their money in cash. what is that all about? >> that is not right. you need your money invested in the market cash. you will be lucky if you are earning 2% on cash. and the bigger banks. you get better rates if you sign an online place to put your money. but the interesting thing is about homes. they are not as interested in investing in homes. that's part of having kids later. they are all living in cities now. charles

let's start with the obvious when you hear the such and such as amazon of china or the google of china, what can you say, you round them up and call it fang these four companies really don't do business in the people's republic either because they're ban order they're taking a stand on free speech or they don't want to take on local entrenched competitors but you know what? today we saw some unusual suspects join the list of winners. mastercard and visa. that's a one-two punch that may be an unbeatable combination they're not allowed to do business in china which makes them anti-china stocks, but get this they're also the best way for the chinese to show that they blinked. a simple call to bongo at mastercard or aj kelly at visa to tell them they are welcome to come in without a bogus joint venture might be enough to get president trump to call off the trade dogs of war that combination is why their stocks joined the all-time high list on a day like today what else? somehow salesforce.com has become the anti-china cloud stock with less than 10% of its entire business in asia. a lot of

amazon, microsoft, google all benefiting from include -- increased spending in the cloud space. gdpr is a way of ensuring everything is compliant by giving it to google orzon. nejra: alex webb, thank you so much. bloomberg opinion columnist. let's shift to asia and what's been happening in the markets. japan's benchmark bond yields climbing to the highest since february on report central-bank will discuss possible changes to its ultra-loose monetary policy. yields pared their it after the boj offered bond purchases at 0.11%. any change would be the first since 2016 and its introduction of yield curve control. fx, commodities, and rates at j.p. morgan private banks is still with us. looking to the boj, what are you expecting from the policy meeting? >> we still focus on the fact that the bank of japan is committed to yield curve control because inflation is still low. even though actions you saw today on the backs of market aeculation there will be change policy, the bank of japan committed to their yield curve control policy. even if they were to be thinking about change over the course of the next year, it is likely to be gradual. levels, itt these see

david: take a look at apple, the price of apple or the price of google or the price of amazon.is extraordinary these levels. i'm david asman. so glad you join us on "after the bell." more on big market movers. it's a busy day. here is what else we cover for you very busy hour. jam-packed day for president trump. he is

the old world technology giant but the new world growth technology company that rivals amazon or apple or even googleasic of microsoft that is why it is so important. what a turnaround, it just extraordinary to me, i am very glad that it happened. dagen: it is a nice warning about believing conventional wisdom because conventional wisdom was a dinosaur, you know going the way of ibm ibm existences not the way it once did that is not happening again -- acquisitions like linked in, the control of the cloud, pretty nfbl. >> i nevfbl. >> i added to it observer the years because seemed like going places, and as of today, it is. >> it is stuart i love it when you talk about stocks, make it sound -- so fascinateing with that accent. >> stop it, we will see you in 15 minutes, sir, "varney & company" every day, 9:00 a.m. three hours of stuart, monday through friday, shares of honeywell up this morning, after beating earnings estimates nicole petallides on the floor of the new york stock exchange with more. >> hey. good morning dagen going to continue that trend good earnings, all right not the likes of micros

david: take a look at apple, the price of apple or the price of google or the price of amazon. it is extraordinary these levels. i'm david asman. so glad you join us on "after the bell." more on big market movers. it's a busy day. here is what else we cover for you very busy hour. jam-packed day for president trump. he is overseas. it ain't over yet. began in brussels with remarkable impromptu press conference this morning. did you see it? he announced there his high-pressure campaign for nato allies to boost defense spending paid off. the president in the uk for more high-profile meetings. he is dining with the british prime minister at the home of winston how churchhill this hou. >>> meanwhile at home, fireworks on capitol hill as embattled fbi official peter strzok testifies for the first time in public, before a combative, sometimes out of control house panel, grilledded over the anti-trump texts, including one that he wouldn't let a trump presidency happen. we'll show you heated moments and his defense. >>> congressman jody hice is part of today's hearing. rebecca heinrich

trade negotiations or does it serve as a template for those that are calling for anti-trust regulation in the united states against big companies like a google or an apple or an amazonyou name it, because europe is so out front on some of these decisions >> it certainly does highlight the fact that there are differences in the way the antitrust laws are written here versus the laws in europe. one of the other things you asked her, well, in terms of competition, isn't this just a download away in terms of being able to get a competitor's app on the phone, she said only 1% of users download a competing search so that -- >> search specifically but what other searches do we use, i guess, is some of the thing? and she would say, well, that stifles innovation all the europeans are trying to get to bing. >> well, i think back in the days of microsoft's antitrust case when they bundled internet explorer with windows, you could download netscape navigator. this completely knocked out their business model at the time, but it was not so much that you couldn't download something else, it was, why would you? and the idea that as a dominant company, perhaps they have a different

facebooks, twitters of the world, they will struggle, if you make a widget or perform a service like amazon web services or google, they have web services too, they will do it differently. they will probably hang in there. we will run into a time where we have the halo, the shine coming off the halo for user based tech things. we need to see facebook stock going down to see the tech thing revive itself. it will not have to do with apple. it will be the real bad one. you can't have $120 billion come off market of widely-held stock without repercussions so we need the stock to stop going down. stuart: congratulations, scott, you moved the market. at 10:00 we were up roughly 95 points. then you brought us the news on china slowing down. we have leverage on trade. look at it now, we're up 122 points. scott, you should be on the show more often. >> all righty. see ya. stuart: president trump, is he going after billionaire conservatives charles and david koch on twitter. here we are. the globalist koch brothers who have become a total joke in real republican circles are against strong borders and powerful trade. i neve

amazon and only after that you have google and snp. amazon has been quite successful in responding into new our areas, or like cloud, but also areas likecies and drug delivery and has also been able to increase its affordability quite a bit, by example, it increasing prices at amazon prime. is interesting. -- it is. thank you for your thoughts, will we will check in with your little later. —— you a little later. stay with us on the briefing. still to come: it's like beatlemania all over again. sir paul mccartney makes a surprise appearance in his home town. the us space agency, nasa, has ordered an investigation after confirmation today that astronauts were cleared to fly while drunk. the last foot patrol in south armagh. once an everyday part of the soldier's lot — drudgery and danger — now no more after four decades. if one is on one's own in a private house, not doing harm to anyone, i don't really see why these people should wander in and say you are doing something wrong. six rare white lion cubs on the prowl at worcestershire park, and already they have been met with a roar they are lovely, yeah. really sweet. yeah, they were cut

big tech and government have been in bed together for a long time if you look at google cloud computing systems or amazon cloud computing systems. the pentagon is negotiating billion-dollar contracts with tech companies about improving their surveillance programs and the like. the real concern is to be nervous when a big tech ceo and says please regulate me, you should mistrust the impulse, he ran circles around a lot of the senators. i watched these hearings and there was speculation about what he actually know what he was talking about and all these things but at the end of the day, senators were fawning over him. it was astonishing to me that they weren't asking the hard- hitting questions and he came out looking pretty good. his stock prices bounced back from when they took a dive with the privacy scandal. the question of regulation is tough. free-market conservatives, i don't like the government regulating industries providing jobs or profits for people but we do have to decide if they are a utility or not which speaks to what jonathan was saying earlier. social media and the internet and cloud comp

right to that, a property right to that information, regardless of whether it is generated by google or amazon or by verizon, that that actually is a reflection of yourself and your being in this world, and you have a property right interest in that. i'd like to see legislation step up to help create the broader context within which the court can then move forward, both the dissent -- because i think this is a five-plus-one, just as we think of the shadow majority in jones as the five shadow majority, to me, this is a five-plus-one. i think we can move forward with that understanding in a way that more members of the court, and possibly five-plus. two could join even eventually. >> so i'm going to give you an answer that specifically looks at historical data that is less than seven days, what i would do about that. because i think -- my sense is -- at least it was then. maybe things have changed. but in large part, many of the concerns that law enforcement had were probably less about getting a warrant for long periods of data, like the 127 days, and at early stages of an investigation where t

it might be google or microsoft or amazon, it might be facebook.ey all want to be the operating system of our lives. that's why they are gettin theye into virtual reality and self driving cars. they are taking up differences but amazon and google want to have those to manage everything that you think about and listen to everything you are doing. that is all part of the process and it has to be one company because there has to be some sort of a standardization for the data to work with set as the game, that's what we have to watch out for. as citizens, we should be very aggressive in forcing our leaders to try to assess the potential negative consequences and there may be positive consequences as well and i'm sure there are. it's going to be about trying to make healthy decisions as those opportunities arrive in our lives and not just rushing towards the shiny new thing because it is the shiny new thing. anyway, thank you so much. please come and hang around, get more to drink. thank everybody for letting us hang out here and let's thank julia again

. >> netflix or facebook or google and maybe getting amazon i may not be listing them in the correctrder, but the point is clear a small number of these big technology stocks have led to the overwhelming amount of growth in the market >> but scott, i thought about that a lot it's not the first time it's happened that's a little misleading because it gives you the impression that the others, almost 500 stocks of the s&p 500 haven't had gains. but it gives you an idea of the outperformance of big tech >> i think you have to look at the statemendpoint. question i have for you is why now. i think it's broader based data being one of them but why now? why is now different particularly when you have the rest of the world that's in a rough spot >> yeah i think we can all pontificate b about our views and fundamentals and all that stuff. and what the options market is is telling us and what we're seeing you know, i think the options market, you would probably agree is like reading the tea leaves because it's all b about probability distributions. >> you are looking at the probability of cert

targeting for example the services industry in the united states the big internet giants like google opposed or amazon but this is still far away and the european union hopes to avoid that because this would really hurt european consumers of course and really get in brussels alexandra found naaman in washington thank you oh you know swedish student has become the face of the fight against europe's deportation of asylum seekers their attempt to stop a man being deported to to war torn afghanistan has gone viral social media have said this show has been tracking the story for us but welcome let's start at the beginning that what happened. to fill it all started when alien air saw on the swedish student and heard that an afghan was going to be deported so she decided to get a plane ticket and get on the very same plane that this afghan was supposed to be on and when she got on board she staged her own kind of protest and she even filmed the whole thing and broadcast it live on facebook you can take a look at some of those clips. but imo saying is that i'm not going to sit down until this person is the pl

monetize all the data will be outsourcing decisions to the company and the company might be google or microsoft, amazont might be facebook. they all want to be operating system overlies. that is a long game. that's why they're getting more into virtual reality, more into artificial intelligence can more into self driving cars like google is, more into wearable, facebook has taken up a different route but amazon and google want to have those in help hell to manage everything that you think about and listen to everything you are doing. that's all part of the process to become the operative system of lies. it would has to be one company because there has to be some sort of standardization for the data to work for everything to work together. that's the long game. that's what we have to watch out for. as citizens we should be very aggressive in forcing our leaders to try to assess the potential negative consequences of such a system. and the maybe positive consequences as well and i'm sure there are. it's really going to be about going to make healthy decisions as though sources of opportunities arrive in

amazon wants to do more in the local merchant arena. to me, the companies that make the most since are a google or wouldok, companies that leverage those s with local merchants of groupon, then overlay or so incrementally more advertising to them, so i don't see amazon as the suitor groupon. emily: it is interesting to think about the history of groupon, a company that google almost bought for $6 billion. now the market cap is $2.6 billion. it was thought it could be a $25 billion company. >> their ceo now came out of amazon. it is interesting to think about the relationship between those two companies. he has put in place a lot of changes that make people interested now. for example, groupon plus allows customers to link their credit cards to the groupon accounts. they have a better app. the customers they have now are a lot stickier, visit more often , but that has not translated get into revenue growth for the company. emily: how important is it if the sale happens to maintain that local feel? >> that is the strength of the whole company. it is what makes them an attractive target. emily: tom, what do you think will happen? >> ultima

google or facebook. you've got smartphones in one hand and e-commerce with e amazon and cloud computing been a lot of different things happening. i do think tha does help to diversify that risk out from concentrating into the five or six namesng >> are you ahose who feel that eventually whenan the stocks you get leadership from other groups and the financials and the energy and t industrials and some of other usual srngs if you will? >> absolutely. so i think the key question here is what's the rest of the economy doing? sof we're -- if the economy is running a little hot right now we, that might slow down over the last year or so and if th economy is still running two-h percent, you can see the energy and financials and other areas and however, you're probably not going to see another grune of mega-cap companies doinge what fangs are doing and i can't think o any traditional blue chip and financial companies at's the upside that the fangs do. but you could have a company, for example, health care sort of boring staples and defensive health care. unit t health and it's second largest health care company in the

if you look at google or amazon or other platforms, there are showing us that they have significantlyarly cloud computing which really came through for google lately. facebook is dependent on its ability to expose a large number inputs, to all sorts of and conduct this really large-scale psychological experiment and sell the information to advertisers. that is what is really coming under pressure, and facebook does not have a lot of options people invested at your fund, which at that time was absolutely revolutionary camera was -- let us not by tobacco, that is not why this or by that. what has changed in social investment now? you used to be odd, no you are the norm. int is your day like explaining to institutional money how to do social investment best? john: that is exactly right. i think what a strange today, is the amount of information we have to work with to understand both what to buy, as well as what you mentioned, not to buy. today, it is really about understanding what is financially material in terms of environmental performance, social impact, societal impact to companies

or like apple like alphabet? like amazon? all ofe's nuances within these religion type stories. if you look at facebook and amazon, facebook in particular, googleave these -- awarded high growth positions there. certainly those positions sort of came into question back in march and april. seems to haveor faded pretty far from the landscape. if you look at a tesla religion have theey don't demonstrated high margin, high earnings growth status. an exciting company product.citing a very large's difference there. it may look at the surface same sort of cultish fervour which supports those stocks. the defense of facebook's a fortress that .ill be hard to untangle emily: michael purves with company.d thank you. when we come back, what prompted all-star analyst penning open elon musk for bad behavior? . emily: in an open letter to elon musk well known wall street tesla ceo shaking investor confidence with concerning behavior over the last six months. he said, your behavior is unhealthy perception of your leadership. he join us on the phone now. back to the show. this letter?rite from investorsme who we talk to about the tesla that and they felt import

information you have and you have a right to that information regardless of whether it is generated by google or amazon or by verizon. that is a reflection of yourself and your being in this world and you have a property right interest in that. i would like to see legislation step up to create the broader context within which the court can then move forward, both the dissent, because i think of this i thinke plus one, and we can move forward with that understanding in a way that more members of the court and possibly five plus two could join eventually. >> i will give you an answer that looks at historical data and what i would do about that. is, at least it was then, maybe things have changed, in large part, many of the concerns that law enforcement has were probably less about getting a warrant for long periods of data like the hundred days and theke 127 early stages of an investigation where they might not be able to meet the probable cause standard. what i would like, and i wrote a law review article about this shortly after i left the house judiciary committee, and what we compromise,hat as a we w

or six stocks. if one of those stocks fall that is interesting. amazon and google are performing pretty well.ology stocks. if they disappoint, as facebook did last night, the market will punish them. expectations were really high for netflix and that disappointed. are they browse putting these companies on a pedestal? they are driven by these five stocks. also, facebook said they were not affected by the cambridge analytica scandal. clearly, pregnancy —— pregnancy has affected them. they are seeing less visitors. it looks like facebook are running to try to catch up with the expectation of their customer base. and the expectations of regulators and governments in the world. they have performed fabulously in the last five to ten years. they have done very well. expectations from here are very high. the market has been pretty punishing. richard, you are staying with us. thank you. still to come, what working women want — a fashion brand that caters to modern office environments and offers a splash of inspiration to go with it. we'll find out more in a few minutes. you're with business live from

we're at this point now. 92% share of search, one company, google, amazon, loses or gains the marketap of federal express in a day. can take tens of billions of dollars out of a sector by announcing acquisition of 100 million-dollar company as we saw yesterday with pill pack. time to oxygenate. they haven't done something anything wrong we haven't been doing that. elected officials hold scrutiny with other companies did. neil: be careful when you wish for, go after amazon, aggressive moves it made to acquire companies, just doing so can wipes tens of billions of dollars out of those respective businesses, the question becomes how you break it up, and what you do. you mentioned the at&t example but it might not apply here because, these are such tangled webs, what do you think? >> i don't think it is that hard. most of these companies, the road map is to look back. why does facebook, intragram, whatsapp, messenger, four of five apps in the world, all set their guns in uniform attack on number five, snap, putting snap out of business as we speak, why wouldn't we spin intragram? why wou

companies rely on two very different things or variety of things, but we know they are part of those stocks, so we have got facebook, amazon, netflix and googletors null viewing all these different companies as a group because they do tend to be lumped together? yeah, they lumped together because it is quite a good industry. —— now. i think the overall health of the us tech sector, there are several buried companies with the same eye balls at buried companies with the same eyeballs at there. they are selling things very much to the same group of consumers. i think as time goes on, we are going to see a slight separation of those companies because some of them obviously a performing extremely well, netflix in particular, but others are doing different kinds of business now that is not so good. —— are performing. i think we might see that change in the near future. meanwhile, starbucks has lowered its full—year earnings forecasts. growth in the us rose in the second quarter but the less robust china market slipped with this competition and stricter regulation and delivery services. disney will decide mickey mouse and ba rt disney will decide mi

those are the 20% correction stocks amazon and google are with very solid prints are 4 or 5% off all-timehs the market at least is acting rationally in terms of which ones it wants to punish more than others. the most interesting setup across this group is facebook. we are going out on a limb at 170 bucks, you look at this stock at 18 times earnings which is a multiple over many years. i don't think fundamentals changed to the extent of 20% i think they still have new mondayitization opportunities with facebook messenger and what's app the stories transition is way overblown. this is probably the best opportunity to go long facebook in at least a year it is our top pick. >> do you not believe the gravity of what they said on the call regarding expenses in the next year or so? >> yes and no. what i like is the fact this company will aggressively invest in things like they have to invest insecurity. if they don't get the security and safety of the platform corrected going through the midterm elections, there's a real problem they're investing in the right why have, defensive investments. of

or bust. now it's a new kind of boom. microsoft, google, twitter, expedia and amazon are the big dogs in town. a flood of them. male, derisively referred to as "tech boys" or "tech bros" are rapidly changing the dna of the city. rewiring it to satisfy their own newly empowered nerdly appetites. meet our new apple martini drinking overlords. ♪ tech boys tech boys ♪ ♪ tech boys tech boys ♪ ♪ tech boys tech boys ♪ ♪ tech boys tech boys ♪ ♪ with your mustache and your paycheck ♪ ♪ and your blue badge and your limp dick ♪ ♪ with your mouth full of the party line ♪ ♪ and your weekends working overtime ♪ ♪ overtime overtime ♪ >> anthony: fish and chips is a thing, right? >> dustin: that's a thing. >> astra: yeah. >> astra elaine and dustin patterson are members of the local band "the gods themselves." they wrote a song about the new kids in town. pacific inn pub is a holdout, a place that has so far managed to resist the temptation to appease the invaders. for lunch, fish and chips. ♪ tech boys >> anthony: you know, bitter old -- like me are of course going to complain any time we hear about, you know, a lot of high-f

information you have and you have a right to that information regardless of whether it is generated by google or amazonor by verizon. that is a reflection of yourself and your being in this world and you have a property right interest in that. i would like to see legislation step up to create the broader context within which the court can then move forward, both the dissent, because i think of this is a five plus one, and i think we can move forward with that understanding in a way that more members of the court and possibly five plus two could join eventually. >> i will give you an answer that specifically looks at is lessal data that than seven days and what i would do about that. my sense is, at least it was then, maybe things have changed, in large part, many of the concerns that law enforcement had were probably less about getting a warrant for long periods of data like 127 days and the early stages of an investigation where they might not be able to meet the probable cause standard. what i would like, and i wrote a law review article about this shortly after i left the house judiciary committee,

google and amazon. you are not buying today's earnings or last quarter earnings as great as they're going to be. both of these companies have invested in long-term and things like the future a.i. robotics, the cloud. that is why i love these companies. cheryl: you are less sold on facebook and i was going to ask you how so, why. >> located the two sides. i've been wrong about facebook since the beginning. i will go up to that for the simple reason i still view facebook like a lot of retailers. it is a fad like abercrombie and fitch. my issue with facebook even though it has over a billion users is that it seems like the kind of platform that can be replaced by something else. it reminds me of the netscape browser until it was replaced by something else. amazon and google not as easy to replace. gerri: mark zuckerberg will disagree. >> uses alien air, so they get to say you're wrong. >> oi talk about another topic entirely. the impact of tariffs on these companies. i see two things possibly happening about their possible losses, but it could also provide cover for companies that might not be doin

between a company like netflix or amazon whose stock prices have grown by leaps and trading at valuation multiples that are not normal, and in a company like facebook or googleple, which are trading it relatively modest valuation multiples for companies of their size and growth rates and profits. that's a little bit of the difficulty of making broadbrush arguments about big tech, that there's a pretty big distinction between the unsustainable valuations of companies like netflix and amazon and the valuations of companies like alphabet and apple. what's interesting is the cover e.u. privacy laws have so far seemed to help rather than hurt google and they've hurt smaller players that it had trouble becoming gdp are compliant. i asked the olivet ceo about this in a phone call before the conference call, and she said it's too early to tell what the impact will be, but from the outside, what does it appear -- how does it appear the new regulations will actually impact these companies one way or another? it seems to be the effect e.u. did not realize it was going to have, when it major that key companies, when they do theyfic advertising that get an agreement that

or break. amazon and google. >> it's clearly very important week for s&p 500 profits i think it comes at a particularly key juncture. over the past couple of weeks you have begun to see confidence indisease take a hit and the trade rhetoric begin to weigh on the data this comes at an interesting time where the tug of war between fundamentals and what's happening in the political sphere has been escalating watch and wait it's going to be a pretty good one. obviously tax reform is helping. but the trend of that 85% of companies continuing to -- looks set to be maintained over the course of the coming days. >> at the same time, katie, where do you see the markets the next test is the january highs? right now we're 2.5% off record highs. we've seen a pull back in small caps a great week in transports last week. >> we did. the market has cooperated from a technical standpoint the momentum is there. short-term, long-term. s&p 500 managed to clear it march high that contends with final resistance from january. surmountable from a momentum perspective. i don't see any major signs of exhaustion and the small ca

amazon and facebook and google, will be pretty aggressively bought. emily: there's still a question whether netflix's subscribe is a blip or a speed bump or is it part ofrm trend? >> the interesting thing was it wasn't just the weakness in the second quarter. netflix was forecasting a decline in third quarter subscriber numbers. and subscriber additions. maybe the company is being conservative with its forecast seeing what happened with its second quarter falling shy of its own guidance. it's interesting that we were talking about sort of two soft quarters in a row for netflix. which makes a little bit harder to argue the blip scenario. emily: now, michael, we had an analyst at bernstein saying crowded trades are priced for perfection. stocks don't react much to incremental positive news. negative news has much more pronounced effect. yet, we've seen stocks run up and up and up, even in the midst of volatility around facebook and controversy around the cambridge analytica. even facebook has bounced back. what should investors be skeptical about? >> there's a fair amount of caution that's been coming with this rally since the facebook scandal erupted ba

should be allowed to do it i don't believe that amazon is a monopoly in any way, shape or form yes, they have roughly 50% market share online commerce googlet 80% market share of search facebook has 80% market share of social as percent of overall retail, amazon is maybe 10%, if that >> yeah. ebay had gsi commerce would have positioned them well, a business set up to provide e-commerce support to smaller businesses but they sold that off, not thinking long term enough. goes to show private equity comes after you, activists, investors, they're not always right. >> or cable tv, investors, yeah. >> thanks, guys. talk to you soon >>> and coming up, a facebook co-founder joins us as his new streaming service gets set to launch on amazon fire tv and apple tv his take on media disruption and fallout over facebook when we return more "squawk alley" next with tripadvisor, finding your perfect hotel at the lowest price... is as easy as dates, deals, done! simply enter your destination and dates... and see all the hotels for your stay! tripadvisor searches over 200 booking sites... to show you the lowest prices... so you can get the best deal on the

company like netflix or amazon whose stock prices have grown by leaps and bounds, are trading at valuation multiples that are not normal, and then a company like facebook or googleple, which are trading at relatively modest valuation multiples for companies of their size and growth rates and profits. that's a little bit of the difficulty of making broadbrush arguments about big tech, that there's a pretty big distinction between the unsustainable valuations of companies like netflix and amazon and the valuations of companies like alphabet and apple. caroline, what is interesting is the tougher e.u. privacy laws have so far seemed to help rather than hurt google and they hurt smaller players that have had trouble becoming gdpr compliant. i asked the olivet ceo about this in a phone call before the conference call, and she said it's too early to tell what the impact will be, but from the outside, from your approach, how does it appear these new regulations will actually impact these companies one way or another? >> it seems to be the effect the e.u. did not realize it was going to have, when it major -- it made sure that key companies, when they do specific advert

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