sonal appliances, they will be hooked into the google's ecosystem or the amazon ecosystem or the apple ecosystem. whoever wins that market wins the war. that's where the money is going to be. host: before we get there, there are hurdles they need to overcome. you talk about a few of them. start with the privacy hurdle. we have all heard the horror stories of these devices recording conversations they were not supposed to be recording and sending them out to the contact list. how are they dealing with privacy concerns? judith: they do not actually want that to happen because they do not want you thinking about how much they are listening. the digital assistant has to be listening for an awake word. alexa has to have some here is out there in order to hear, alexa, which turns it on. it is not streaming that what it hearing to the cloud. it is staying on the device. once you start interacting with your device, it is streamed to the cloud. the big companies, more reputable companies, give you lots of ways to delete what is on the cloud. most people do not bother and it lives on the cloud for a long

amalie: it's all about the continued growth of the apple ecosystem.l be getting -- : it's all about the continued growth of the apple ecosystem. do you think we will be getting more growth? isit has to do with what related to an apple supplier. the smart phone market overall point.ing a saturation cirrus logic, in their most recent filing, 82% of the revenues come from apple. that is a big chunk of their revenues. that is the most i have seen for many supplier to be even dedicated to a single company. it is not great for their business and their shareholders, but that is indicative proof that this is an apple-related problem. emily: 80% of revenue from apple, that's reliance if we ever sought. thank you as always first -- if we ever saw it. thank you as always for stopping you buy. -- stopping by. popular question and answer discovereda said it users have the data compromised. this is due to the unauthorized axes by a malicious third-party. users may have had information compromised. quora made the discovery friday and has notified officials. wells fa

emily: it is all about continued growth of the apple ecosystem. ll be getting more supplier cuts? there are companies we have not heard from. mark: in the careful balance -- and the careful balance has to apple suppliern and what can be said about samsung's own issues selling phones, because the smart phone overall is reaching saturation and growth is slowing. with cirrus logic, in their most recent filing with the financial institutions, they say that 82% of the revenues come from apple. that is a big chunk of their revenues, the most i have seen from any supplier to be dedicated to a single company. that is indicative proof that this is an apple related problem. emily: we kept on apple with our , journalist turned investor who is now a partner at true ventures. we discussed the challenges ahead for the tech giant. >> feel that they are doing what they are supposed to do as a company. they are making new technologies, new products. they are pushing the envelope on their products, whereas they have new services business which is growing really fast

game, but they're very much the vehicle that will allow people to spend on that to come into the apple ecosystemat's a big positive, and again, because profitability is above corporate average, it's very important >> andy, whether you like the faang acronym or not, you cover most of these stocks what's your top pick of 2019 >> google. part of it is we think we're in an environment we should be looking for singles and doubles rather than home runs. and part of it because we continue to believe it is an exceptionally well positioned company and search can continue to grow well for a long time >> andy, jim, thank you guys good to see you both >>> social stocks, facebook, twitter, snap all over, off the heels of the senate report on russian social media influence julia boorstin is in l.a. with more of the details. >> that's right. two new reports analyzed millions of post provided by tech companies it finds the russian internet search agency sought to sew discord even after the election, not before it. twitter is off 2.5%, snap down 1.5% facebook and google down fractionally the authors of the repor

networking as well as the apple ecosystem.undamentally, we're 20% of the iphones in the window are coming from china so it's not just fox con from the supplies and demand perspective. the double whammy, which is why they have a bull's eye on their back >> it feels like 2018 was the tale of two years for tech stocks i mean, you had these record highs. faang was beloved for most of the year and we were having a $1 trillion competition liquidity fears and tightening concerns china trade, you name it so 2019, which of those is going to be in place >> well, look, you're right. it's been a tough tape for tech in the past couple of months we think the tech trade is still on this deal with china is the focus right now. the deadline for there is march 1st, so you've got a couple of months before we get any clarity into how this will evolve, but we think they get a deal done. it's like what happened with the deal of china, between the u.s. and canada and mexico. there's a lot of brings mks man ship right now, china is see iing th slowes

dollars in those areas, marginal profitability is extraordinarily high they join the apple infrastructure, ecosystemdon't leave. apple locks them in. their services once you have the machines are unparalleled versus microsoft. they collect huge rents on service contracts. recurring revenue is growing, and i look at the company versus procter & gamble and it is no contest. it is not terribly expensive and free cash flow components are absolutely enormous. i can live with the hardware slowdown what i couldn't live with is if the company ran into trouble on the app store issue as i said before, and apple basically has to succeed in china. that's another area there can be reasonable doubts about the future but so far so good on china. i'm encouraged i especially like the idea that yesterday the mccow stocks performed well and they're 100% tied to china the decision makers there think the red light has stopped flashing for the time being. >> you sound very cautious we are coming to end of the years. how should investors be positioned more broadly? >> we think santa came early and the santa rally likely a

it is, refrigerators, stoves, per will bepliances, they hooked into the google's ecosystem or apple ecosystemwins that market wins the war. that's where the money is going to be. host: before we get there, there are hurdles they need to overcome. start with the privacy hurdle. the stories of these devices recording conversations they were not supposed to be recording and sending them out to contact. how are they dealing with privacy? guest: they do not actually want that to happen because they do not want you thinking about how much they are listening. alexa has to have some year is out there to hear, alexa, which turns it on. it is not streaming that what it here is to the cloud, it is staying on the device. once you start interacting with your device, it is streamed to the cloud. reputabled more companies give you ways to delete what is on the cloud. most people do not bother and it lives on the cloud for a long time. we do notanies say, sell that information to third parties. they do not need to, they are really big and can monetize it themselves. less reparable companies may start selling

apple makes the finest consumer products in history. the devices are all part of a fabulous ecosystem, and thanks to that system, apple is a huge revenue stream i know i pay for it. you probably do too. they have an installed pa eed bf maybe 1.3 billion users. and those people will keep buying apps. right now the stock sells at a dramatic discount to the averages that are in the s&p, the s&p 500. let's call it 12 times, okay let's call it 12 times forward earnings, much lower than the average stock. and they slashed their price targets. it's hard to have conviction when this is so much noiegativi. i'll give you one. the upcoming federal reserve on tuesday and wednesday of next week if you have conviction, i think you may end up getting faked out. consider all the permanentations here since then housing has continued to fall off a cliff thanks to rising mortgage rates, auto sales continue to slow electricity use has come down. commercial real estate, cooled loan losses at regional bank began to climb and the stock market has shed trillions of dollars powell walk back his comments. why

ecosystem. what i would like to ask apple if i see them is what else can you put through with the ecosystem.hat's how you will get the gap that's solved. there was a time when proctor bought gillette and i could not figure it out. then it turns out there is going to be a huge number of razors. that became incredibly popular it was not that bad this quarter. i mean if you have a number of blades provided they are not behind the iron curtain that all the drugstores have. it is good business. >> so blazer-razor business. >> how do you do it? >> what did you say about the president? >> what term did they use? >> i don't remember the term >> it was untruth full >> i think that's a fair statement. >> i challenge people to challenge that statement >> david, i will give you a little heads up. when you think that, you say ill-advise or it raises eye brows. these are the things that you say because then when you come out when you listen to it, that's ill advised >> keep in mind. >> i appreciate the advice >> when we come back, i will explain it to you. we'll watch it >> sometimes i can't tell if we ar

places that are not china, they want sort of two separate tech ecosystems, both vying for business in europe >> only thing that will trigger applesupply chains is if the next roind kxt round of tar put in place so as long as there is enough progress, whether it be buying sorghum or soybeans or what not to put off the move from 10% to 25% in the next round, that's it >> we're back to where we were on autos although the european autos are now 10% cheaper on tariffs yes, commendable that we're fighting complete theft in national security issues on technology i get it but we're not going it change this and i do think that we'll pay the piper. but both parties right now are showing that they want to at least have headlines and that's what the market needs. >> and jimmy, given now that china is detaining these canadians for what they say is some kind of spying behavior or whatever, do you think that is why the market is behaving as it is today we started out with okay, china is giving in, only to realize wait a minute, they may be playing hardball with these people now >> yeah, given how sort of nebulous this original agreement is, th

ecosystem feeding the services that are the fwroegt future for the company. what do yothink about that? >> i think he is absolutely right. i thin what apple wants to be is the operating system for everything you do digitally, whether smartphone certainly as eir lead product but also as the computer, tablet, watch,tu evly your car, perhaps automated car, thermostat and smoke detector. even ifphone sales slow it's not because people are buying a differt phone or using a different operating system. they are staying in the ecosphere. creating long-term opportunities for apple products and services. >> what do you do with the stock? we just said hsbc downgraded the stock today, it took a hit. if there is this global growth with india, china, with other parts of the globe, do you add to a position here if you're a long-term in>>stor? ertainly if you are a long-term investor., you kn sales of almost every product can be cyclical. as long as this isn't a secular change in the way people interact with technology then tough take it a at cyclical weakness. and in a year and a half we are having widespread 5 g service forcing everybody to upgrade the

. >> the rumors of apple having a short fall -- there is not going to be short fall in the ecosystem.y are taking the longview. the longview when it was at 93 is when you had -- there will be a day when everybody cut the price target that you can buy the stock. even morgan stanley may have to cut the price target. what do farmers do when they have money they buy tractors. >> it's really cool. >> that's fair. >> there is a man who comes to play every day. >> i put a chipper shredder at sears once. >> here is the bad news. we are down big. we had a ten to one advance in the open. often that is associated with short term market bottoms. let's take a look at where we are. the trade-related stuff is getting hit the most. you have semi conductors down. metals and mining get hit on trade issues. industrial names get hit. all the defense names are sitting. morgan stanley, all the regionals, comerica, sun trust. they are all sitting at 52-week lows. same with oil, not quite as large a group percentage wise. all of the oil service names, this has been every day for ages now. you want to watch t

apple. they will continue to own those devices. they are loyal to the ecosystemand that is not going anywhere but let's focus on fundamentals. it is trading at 13 times earnings plus they have a boat load of cash they are also still up for 4% to 5% for the year. but let's look at the earnings growth rate. they are scheduled to grow 12% next year and 11% the following year there may be a rotation going out of so many devices being sold but their services business is growing at 25% and that is a $40 billion number that will grow at 25% in the future we think it is very overdone and remember, in these markets when you buy, that creates outperformance so we're going long. >> all right yeah, once again, people can talk about apple being a lot cheaper. thanks, appreciate your time >>> also getting cheaper today, retail stocks. courtn courtney ragan here with a look at some of the damage. >> and we were done about 4.2% or so, came back a little bit. but the spdr is down more than 3% not really a jolly feeling and the tariff truce relief really didn't last for retail. ev

ecosystem. >> gene munster very bullish sees another trillion dollars coming thank you very much. >> thank you. >>> cut kwen off so he can't respond. what do you think? can apple double in the next few years. >> absolutely why i'm buying now because i think people are short sighted in the short term can it go lower i'm not calling a bottom for apple where do you want to see the growth and gross margins that are the highest you want them in areas like we see in fs ises when you look at 330 million subscribers to the services side of it that's up 50% year over year i mean this is a company that shows incredible growth. but 2022, 2023 services will be about $100 billion business. right now look at wearable 4 billion per quarter. that's going to grow when you look at growth drivers, the hardware side everybody is focused on the wrong thing it reminds me of microsoft people are looking at the wrong thing. they are not looking at growth. >> if you look at the chart can it could go to 1459. i don't need it to go to 350 we you will always say are you trader or investor in you want to be comfortable to invest it's one with $150 billion in free cash enclose and trading

ecosystem and the u.s. is trying to have a larger play in 5g. even as we move forward. 5g, it is going to save time, isn't it? you even have appleo have their next load of five g phones ready. they have been vindicated in decisions like that when they had updated networks. what is your view on that and you think 5g is further away than people reckon it is projected to start up? >> i think different countries are at a different maturity stage right now and if you look at countries -- like last week, south korea, three telcos launched the first commercial 5g network simultaneously, so 5g is pretty much here. we have been talking about finding use cases and have the is furtheractually along in segments of the life. , they arek at china right now conducting nationwide with across major cities commercial launch slated for 2019. so, it is fair to say that 5g is here. yvonne: appreciate your insight here. about two minutes into the session, have a look at these early moves. we are about 40% back from the bottom. we are about 40% back up, as i mentioned here. and spot between the 50 200-day moving averages. let's get more meat on the bo