of regulatory risk this tier over facebook and google. s headline risk. but ultimately, and ultimately for facebook and google, they're both up about 5% this year for further moves up we think it will have to be estimate revisions up because the regulatory risk for those companies could kind of cap their multiples. so, again, dovetailing back to amazon, a little less on regulatory scrutiny. >> i noticed we mentioned twitter as an underperform for you. it sounds like jon isn't all that thrilled with it either it's an election year, being lit up by oscar nominations. seems like that bug in the ad product is haunting them months later. >> absolutely. a couple things we've noted in the past is other election years, other olympics, we haven't seen that bump-up in users globally you'd expect to see from a company like twitter. around that ad product, it hasn't improved at the rate of which their peers, snap, facebook, and gook l, have improved theirs. what we look for is we look at their underperform rating and to increase that velocity of ship

the biggest were the ones like facebook, apple, amazon, netflix a little bit and googled most about. >> there's some overlap, facebook and google, apple mostly shunned advertising and third devices and technology, you uber you mentioned wasn't either but it's a whole different basis. besides the fact that we think of them as being tech, they all have one thing in common. >> that's a great question. right now they are off trying to separate each other as regulators work more tightly in the space. the things they do all have in common is the network effect. it something to talk about a lot in my book. as you get big, you get bigger. the business model of these companies and many unicorns in silicon valley, the giant firms is to bring in as much territory as quickly as possible. so you get an and in many cases, you get invite margin. a company like amazon and uber, to undercut the world taxi services and take over the entire industry and worry about profits labor. businesses simply haven't been able to do this at scale until now. that has a lot of ramifications. it cuts competitors out a

questions at something i've kind of grappled with was this idea of whether or not platforms like facebook or google should be labeled for what happens because i'm the one hand, yes you don't want facebook monetizing the massacre of people in new zealand, but you also don't necessarily want mark to be the minister of truth so that is the line i'm walking here but what' but let me pointe few things as folks think about this argument. these companies have a get out of jail free loophole that was written in the communications decency act of 96 and it allowed them as a nascent industry to not be liable in the way you or i as journalists but do. look at what these companies do, they put content online and sell advertising. that's what the media does. they want the town square but they want a business model that essentially eats the launch of traditional media and has created a post backed world which has led to all other kind of challenges so i think we really have to consider rethinking them. already you are seeing things carved into it. it. as a high-profile case a couple of years ago around the back p

>> again, i feel the order in which we like the mega caps, amazon, facebook and google, the regulatoryeach of these companies face, that is the order in which i feel that the companies would have sentiment weigh on them. amazon the least, facebook somewhere in the middle and google with the most. call it the next 12-24 months. that is why we rank order that way. taylor: also out with 2020 predictions was cfra vice president of equity research, john freeman. they include google cloud offerings, oracle undergoing a big reorganization, and facebook entering the cloud business. i caught up with freeman on monday. ohn: it is credit of -- crowded at theapplication layers, he has salesforce and all the other different software and other service companies. but in terms of infrastructure as a service, what amazon does, the aws, there are only three competitors in america. there is microsoft azure, amazon aws, and google cloud. google cloud being a relatively new entrant that went from zero and now it is an $8 billion run rate. what distinguishes these guys is they have done some pretty nnovativ

again, on the sales side, it is consensus, it is either amazon, facebook, or google in no particular oosing one of your best kids. i think it is amazon followed by facebook, followed at google. for amazon, the debate is twofold. one is they are investing a lot of money in same-day shipping. what will they return look like? i think we will see returns in the first half of this year with accelerating growth in some shape or form. maybe investors can give them a pass on margins. the second equally important debate is can amazon hold up its market share on the cloud versus microsoft or google? that is the biggest debate. i feel over the next call it 6, 12, 18 months, what amazon has been doing with the machine learning, hyper compute, mega workload that migrated the cloud, that is where amazon is doing a lot better as compared to microsoft and google. that is why i'm willing to bet that amazon can again step away from the crowd and continue to grow their market share. that is why i like amazon heading into 2020. taylor: taking the other two favorite children, facebook and google, i am sho

google and facebook are clearly number one and number two. e best two points to benefit from a constructive add send market? companiese the two that have a symmetric growth and asymmetric model share. both areand google multi-headed monsters. they have a lot of active eyeballs. it is hard to bet against them. if i had to separate from either of them, i feel that among social media names, i like snapchat. snapchat might be positioning itself as somebody who can take after theom twitter political advertising debates that are going on. >> do you shrug it off because fundamentals are strong? >> i feel that the order in which we like it, amazon, facebook and google, there are elements that each of these companies face. that is the order. with the least, facebook somewhere in the middle and google with the most. why we rank order that way. also out with 2020 predictions was john freeman. they include google cloud offerings, oracle going a big reorganization and facebook entering the cloud business. onaught up with freeman monday. >> it is crowded at

apple has had more of a commitment to privacy to be fair for its own competitive advantage than google or facebook. it's not a data harvester in the way google or facebook is. those companies make 85-90 percent of its revenue on digital advertising. apple makes it on devices. wants to create that network and ecosystem and lube you into buying as many products and services as possible. i would point out a couple things. for starters, apple's commitment to privacy has varied depending on what company are talking about. apple will capitulate to privacy in china ways it would not dream of doing in the u.s. it's certainly subject to political pressure, differences in the way different countries regulate data and it won't stand up and fight beijing on these things. i will also say there are a couple of the problems with apple that overlap with problems i see with google and facebook. one of it - - who gets a big part of the innovation pie. they will say, this is a battle between regulation and innovation. we have to stay big to innovate. i would argue these companies and apple is foremost, are implement

list, we rank uber as having the most up side, 50% price target, followed by netflix at 19, google at 14, facebook12, and then 10% up side for amazon. but to answer your alphabet, google question specifically, you have a catalyst, a story sin dar becoming ceo of alphabet and google, we think that will take the pressure off the other investments and allow them to take more cash for buy back. expectation is they'll have 120 billion of net cash and they don't need that much we think for that name specifically you have a catalyst for 2020 >> mike santoli, apple market cap is a trillion dollars, plus a disney, enough change to throw in a workday how does an investor avoid that, not to say apple will do badly, but it is heavily weighted in the s&p, nasdaq 100. what are people saying about how you limit exposure to names like that >> i think implicitly what the market decided is not so much that it is the sum of the parts but that the massive profit base of apple, had been the most profitable company in the world is going to last longer than a year ago it is about the duration of it, not so much about he

google. and is more popular than facebook is here but that's not all. but i do smell service instead of google maps where you go instead of twitter and we charge instead of what's up. in china bill separate providers for almost every online service available in the west but they're far more than just copies in many fields like live streaming. and online payment chinese providers have become global leaders. stockman is a professor at the hattie school of governance in berlin and an expert on china's digital trends she says users play a big role in these developments one main difference between chinese users and european users is that chinese internet users a fast adopters so when there is a new platform they will immediately go and try it out. we chat alone has more than $1000000000.00 users a month. pay is the leading mobile payment service it works in supermarkets and at restaurants hardly anyone uses cash in china anymore users can even book doctor appointments. which is like a super app without it getting around in china isn't easy. social media platf

most of the world uses products from google apple facebook and amazon or god but not china they're 3 homegrown tech giants dominate the industry they're called by do alibaba and hanson also known as b. 80 in china but i do replace as google is for e-commerce and tencent is more popular than facebook is here but that's not all. but i do smell of service instead of google maps way because instead of twitter and we chat instead of what's . in china there's separate providers for almost every online service available in the west but far more than just copied. in many fields like live streaming. and online payment chinese providers have become global leaders don't you know stockman is a professor at the hattie school of governance in berlin and an expert on china's digital trends she says uses play a big role in these developments one main difference between chinese users and european users is that chinese. internet users a fast adopters so when there is a new platform they will immediately go and try it out. we chat alone has more than $1000000000.00 users a month. pay is the leading mobi

diplomatic incident, with britain committed, in april, to a 2% tax on the uk sales of the likes of facebook, google. here, the chancellor under pressure internationally, in particularfrom president trump's treasury secretary. can they get a trade deal with you if they insist on introducing a digital tax in april? well, we will be having some private conversations about that. i'm sure the president and boris will be speaking on it as well. you know, if people want to just arbitrarily put taxes on our digital companies, we will consider arbitrarily putting taxes on car companies. another trade power play from the us. the chancellor, for now, sticking to his guns. we plan to go ahead with our digital services tax in april. it will fall away once there is an international solution. brexit next week means freedom to do international trade deals. what we are seeing here is that freedom is constrained. it requires trade—offs and choices to get those deals. the americans, in particular, piling on the pressure for a u—turn on the digital sales tax. the united kingdom dropping hints that it will prioritise a

it is a sales tax and people will recall people like facebook, google, microsoft, amazon, who all playrole in our lives in the uk pay virtually nothing in the way of business taxes. they currently pay tax where they are or the account where there's no taxation. facebook and amazon paid tuppenny—ha'penny but the high street is falling apart and it is unfair. the prime minister and it is unfair. the prime minister and sajid javid, the chancellor, say this won't do and he knows the weight of the world is against him... there's an awful lot of what i call people out there who are looking to expose in situations. we had island when they had their economy dropped off the face of the world back in 2009, they said to people like google and microsoft and apple, "welcome, we will only charge 12.5%". hang on, the rest are between 19 and 25%. people are looking to capitalise, people who are mavericks, and this maverick behaviour with regards to taxation in the business world has to stop. platitudes like that are easy but implementing it is hard. that's the problem, unless there is a multinational

. >> facebook and google remain the place that all these online ad dollars are funneling to. everyone is out there complaining how much they hate facebook and google, they're mostly complaining about her on facebook are using one of the google products and they gain users. they can grow the top line at 20%. we have never seen companies this big row this fast. jack: so your two bulls here telling something about amazon? [laughter] >> relative to this year's earnings, yes it looks expensive but the free cash flow is ramping up quickly. i think at this point you pick a couple years ahead and you said this company is going to grow into its valuation. >> what are not sure about is i am worried about people in direct competition with amazon. jack: okay bid package in the business of sports. we take a deep dive into gambling. >> sell online sports betting, we're talking drop kings for the two pure plays. this is a massive business and legalization comes in more states for you look at new jersey they say about 25% of their business is new yorkers taking the train and gambling on thei

diplomatic incident, with britain committed in april to a 2% tax on the uk's sales of the likes of facebook, googlezon. here, the chancellor under pressure internationally, in particularfrom president trump's treasury secretary. and they get a trade deal with you if they insist on introducing a digital tax in april? we will be having some private conversations about that. i'm sure the president and boris will be speaking on it as well. if people wa nt speaking on it as well. if people want tojust speaking on it as well. if people want to just arbitrarily put taxes on our digital companies, we will consider arbitrarily putting taxes on car companies. another trade power play from the us, the chancellor for now sticking to his guns. we plan to go ahead with our digital services tax in april. it will fall away once there is an international solution. brexit next week means freedom to do international trade deals. what seeing here is that freedom is constrained. it requires trade—offs and choices to get those deals, the americans in particular piling on the pressure for a u—turn on the digital sales ta

the transmitted to people about, cures that don't exist the same kinds of things we've seen on facebook, googlee host of other health topics. in the minds of regulators and experts who track this sort of thing, it is the latest indication that these companies need to do more to stop the spread of viral misinformation that the stakes are much higher than politics. it is actually something that could affect the decisions people make about health care. >> that's right. and the concerns pointed out, these platforms largely exist by saying, we're not responsible for what's on our platforms. it is the people that are the problem. they're caught between a rock and a hard place >> well, look. facebook, youtube, twitter, all these platforms have said they are taking steps to prevent the spread of misinformation and they do seem to have a different standard in terms of being able to take action when it comes to public health crises and they've tried to down rank, or make the misinformation with vaccines less prevalent in people's news feeds. what sit really interested is these platforms say if there is a

most of the world uses products from google apple facebook and amazon or god but not china there are 3 homegrown tech guy.

facebook, google and we can afford it. likei did that it was heresy.could not believe ceo would support a tax. some ceos of other companies got really upset with me. very upset with me. it became a nightmare for me were all of a sudden i got on the front page of the new york times. i'm like this is a small amount of money and we are making billions. $130 billion and we can take a tiny amount and clean up our city. this is what we are doing in business. we could have a great shareholder return and stakeholder return. we can do both. david: you recently said that facebook is cigarettes. what did you mean by that? >> facebook is the new cigarettes. it is bad for you, addictive, they run advertising that is not true. they should be regulated very aggressively. david: have you heard from mark zuckerberg? >> i've talked to him and his team and what i say as trust has to be your highest priority. if trust is not your highest priority, and you are not thinking about your stakeholders, you are only focused on money, what kind of business are you building? they

apple, facebook, google, and the trillion dollar tech companies paying zero or near zero taxes back into economy. we are getting depleted. we are getting sucked dry and the biggest winners are laughing all the way to the bank. our leaders in d.c. just look at it and say, i guess that is the way it is. isse fault is it that amazon paying zero in taxes? is it their fault? whose fault is that? it is our fault. it is the governments fault. we have to be pretty far behind the curve to say, amazon pays less in taxes than everyone here in this room today. that's fine. if your government is that backwards, you have to say, it is our governments fault. amazon's job is to pay as little taxes as possible. it is our governments job to make sure that that does not happen. that is what you will have to use your power for and 4.5 weeks, to rewrite the rules so that we get our fair share of every amazon sale, every google search, every facebook ad and then we put it into your hands. build this trickle up economy because after this money goes into your hands and your community, how are you going to spend

are there is a sales tax on the likes of google, facebook and amazon. the virtual business giants of the tech world have a very physical presence on the streets of davos at the world economic forum, where they need to keep the world's powerbrokers on side. taxing them has been tricky and is now a global diplomatic incident, with britain committed, in april, to a 2% tax on the uk sales of the likes of facebook, google and amazon. as we leave... here, the chancellor under pressure internationally, in particularfrom president trump's treasury secretary. can they get a trade deal with you if they insist on introducing a digital tax in april? well, we will be having some private conversations about that. i'm sure the president and boris will be speaking on it as well. you know, if people want to just arbitrarily put taxes on our digital companies, we will consider arbitrarily putting taxes on car companies. another trade power play from the us. the chancellor, for now, sticking to his guns. we plan to go ahead with our digital services tax in april. it will

and amazon. sales of the likes of facebook, google and amazon.eave... here, the chancellor under pressure internationally, in particularfrom president trump's treasury secretary. can they get a trade deal with you if they insist on introducing a digital tax in april? well, we will be having some private conversations about that. i'm sure the president and boris will be speaking on it as well. you know, if people want to just arbitrarily put taxes on our digital companies, we will consider arbitrarily putting taxes on car companies. another trade power play from the us. the chancellor, for now, sticking to his guns. we plan to go ahead with our digital services tax in april. it will fall away once there is an international solution. brexit next week means freedom to do international trade deals. what we are seeing here is that freedom is constrained. it requires trade—offs and choices to get those deals. the americans, in particular, piling on the pressure for a u—turn on the digital sales tax. the united kingdom dropping hints that it will priori

it's facebook, google, amazon, microsoft, the folks who are the surveillance capitalists who are invadingry aspect of our lives. so that is a debate i've spent three years to try to make us have i'm glad to see doj engaging in it but you know my position. >> i'm not sure they are engaging in a debate somehow the government seems to consistently position themselves against encryption for everybody except the government itself i think there are a number of people out there, security researchers, bruce schneider who i followed far long time, who would argue, especially in the 5g era, encryption is the only answer you have to assume a dirty network. you have to assume lots of people try to get acses to their data, so there have to be ways to protect it. i question if the government is going in the right direction, villainizing encryption that they can't break >> jon, you're absolutely right. bruce is the guy, he's my guru on this topic, and this is only going to make it a bigger issue. >> roger, good stuff we'll talk soon. >> my pleasure >> getting some data out of the nrf on holiday retail s

apple, facebook, google, and the trillion dollar tech companies that are paying near true -- near zeron taxes. we are getting depleted. we are getting sucked dry. the biggest winners of today's economies are laughing all the way to the bank. our leaders in washington dc just say that's the way it is. whose fault is it that amazon is paying zero in taxes? is it their fault? whose fault is that? it's our fault. it's our government's fault. we have to be pretty far behind the curve to look up and say amazon pays lesson taxes than anyone in this room. government is that backwards, then you have to say, it's our governments fall. amazon's job is to pay as little in taxes as possible. if the government's fault to make sure that does not happen. to use what you all have your power for in just 4.5 short weeks. it's to rewrite the rules so that we get our fair share of every amazon share, every google search, every facebook ad, then we put it into your hands. build this trickle up economy. after this money goes into your hands and your community, how are you going to spend it? wisely. i like th

amazon, facebook, google, apple and the trillion dollar tech companies that are paying nothing or next to nothing back into our country. see how this game works? know the feeling you had that things are going on and you're getting depleted, it's true. you are. in this context, it's actually perfectly responsible for us to go up and get some of this value that's leaving your community, tiny slice of every amazon sale, every google search and bring it back to you in the form of this dividend of $1,000 a month. when you have this money, where would it go? how much would stay here in iowa? most of it. you might get your own netflix password but most would go to car repairs you've been putting off and day care expenses and little league sign ups, religious organizations. this is the trickle up economy. this would work. we know it would work. we know the money would get pumped back through our local economy over and over again. i had reps say this is the only thing that would work to give rule towns a path forward. raise your hand if you're a parent like me and evelyn? if you're a parent, yo

giving the right to tell big tech companies like facebook, google, instagram and others to delete their personal data. once again, the rules governing the process is still being written and actual enforcement were not taken until midyear. >> the reality is they did the law without explaining to the company's how to actually make it happen. so, the actual rules of what companies have to do are being drafted now. >> reporter: californians will be required to have health insurance in 2020. it was a federal requirement, along with the affordable care act. but that was nixed by congress. ignore this one at your own risk, cal californians without health insurance will get hit with fines for text time in 2020. state lawmakers passed an education reform bill that prevent schools from suspending students for disruptive or willfully defined behavior in class. >> we would have rather have them learn from their mistakes, stay on campus, continue their education instead of sending them home. >> reporter: number five, amid the affordable housing crisis lawmakers passed a rent control bill that caps t

all those are big advertising events there are two companies i look at, facebook and google, that aree plays off that fundamentally we think they're set up for the year and for the quarter. >> areas where people are still a little skeptical, looking at trip for obvious reasons and pins would you touch the five-foot pole or ten-foot pole? >> yeah. so pinterest is for us a nice, good speculative long. there's two or three name wes ear very caution on, trip adviser and ebay would be another and probably twitter too. that's kind of a year-out perspective. they need to bring down margins and reinvest more aggressively in their business. the greatest skepticism is across these consumer internet space is our favorite long for the year, uber the stocks recently rallied but this stock is deep in the doghouse for a variety of reasons. lots of losses, a broken ipo but if they prove they can dramatically reduce costs, this stock can rerate materially. it could almost double in a 12 to 18-month period >> we should mention the dow touching an all-time high while we're having this conversation i hav

actually drove online retail sales, and those ads were on digital platforms, primarily facebook, instagram, googler and snapchat. but facebook is one of the imary beneficiaries. so those three put together i think suggest facebook had a very solid fourth quarter. taylor: i wanted to get your thoughts on instagram, because you've mentioned that a few times. we were getting other reports that instagram stories alone make up 10% of all ad revenue for facebook. i wonder, though, what is that -- downsideail side tail risk if growth in instagram starts to slow? victor: stories really took off instantly on instagram, not so much on the core facebook platform, but i think that changes in 2020. the core newsfeed is still driving the bulk of the growth. it is a combination of stories on instagram, the combination of the newsfeed, advertisers have really gravitated to stories, that is the feedback i getting. am but it is a long runway for stories on instagram, so i am not too concerned about the fact that it is a large percentage of the mix today. taylor: i want to get your thoughts on a pure valuation stand

borisjohnson wants to hit various us firms like facebook, and google with a so—called tech tax and asn't want to be in the iranian nuclear deal and on top of that, he wants huawei involved in 56 provision in a limited point around the uk. the us does not agree on any of these and is threatened all sorts of reaction. the least controversial ironically is iran because borisjohnson has managed to almost sued the white house by suggesting the deal would be rebranded the trump deal. in the white house is tweeted saying, excellent. with davos, threats by contrast that they won't co—operate on intelligence sharing if they let huawei in, fears of chinese intervention and international security infrastructure. meanwhile, the us treasury secretary. steve mnuchin, says they might come back with tariffs on the us car ——uk car industry. in this post brexit era, the uk doesn't really want to be cheesy of the united states. at a time when the chancellor is saying there won't be such a close relationship with the eu are putting out the stories all the time saying there is not going to be much alignme

united states france has decided to delay a law placing a digital tax on big tech companies like facebook google and amazon the law which was passed in france places a 3 percent tax on the total annual revenue generated by providing services to french users now french president emmanuel micron's said that he and president trump has agreed to work together on a good agreement to avoid escalation and in the meantime france has agreed to postpone the tax until the end of 2020 while the us has agreed to postpone tabs on wine and cheese. c.e.o. brad garlinghouse has just dropped a bomb on the crypto market revealing his intentions to take the pub money public now let's think about that for a 2nd when a company i.p.o. is itself its shares to raise money but up until now the company has been selling coins x r p to raise funds in fact since $26000.00 the block research estimate that was sold a total of $1220000000.00 worth of x r p so if it now decides the sell shares and go public x.x. he could potentially be worthless obsolete needless to say x r p holders are not happy with this so with more let's go

amazon, facebook, google, trillion dollar tech companies pay next to nothing.o you see how this game works, nevada? the feeling that you are getting depleted? it is true, you are. in this context, it is reasonable for us to get some of this value leaving your search from any sale and bring it back to you in this dividend of $1000 a month. when you have this money, where will it go? how much of it would stay here in iowa? most all of it. not all of it. you might get your own netflix password. but most of it would go to car repairs you have been putting off and day care expenses and local nonprofits, religious organizations. this is a trickle up economy. unlike anything anyone else is talking about, this would work. we know this money in our hands would get pumped back to the local economy over again. when i said this to legislators in des moines, they said this is the only thing that would work to give rural towns a path forward. this is how we balance the economy between rural areas and big cities. raise your hand if you are a parent like me. if you are a paren