tech hardware tech has worked all last year and into the new year. >> all right i think we have mark mahaneyd running again. mark, going to welcome you back to "squawk alley." happy new year thanks for joining us. >> happy new year, morgan. >> all right so the top ten internet surprises in 2020. you've got some that are certainly i think stoking some debate right now, uber and lyft, achieving profitability in 2020. how did you get there? >> that's probably our biggest surprise look, what we're trying to do is come up with thought provoking ideas, try to get a sense where the debates are on the street, maybe provide entertainment value, too uber and lyft both surprised the street, one, with magnitude of losses this last year, in 2019, and projections for this year, they also surprised the street by saying they would pri up profitability to 2021. we think it is not a probability but possibility they achieve it this year. uber has an advantage, they have more levers to pull, selling indy eats asset which is generating a couple hundred million in ebitda losses and getting leverage against insura

joining us, mark mahaney's back with us, analyst at rbc capital markets.ou sort of see a mixed bag here, don't you, for next week >> well, i think we're going to get at least some of the consumer internet names -- facebook and amazon -- we should get two reads. one is that the online advertising market is very robust and it's probably going to get stronger, by the way, going into 2020 because of the elections, olympics. it's a big year for advertising. so we should hear that from facebook that should be the good news we should also hear good news from amazon about the holiday season it looks like the consumer's pretty strong in terms of retail sales, at least online amazon should have fully participated in that, so we should get that kind of good news the one thing we've been warning investors and clients about at rbc is the operating income estimates for amazon going forwards this company is known for aggressive investment cycles i've tracked them for 20 years they never waste an opportunity to invest aggressively i think a few areas that they're looking

>> amazon's profitability plummets in 2020, according to mark mahaney it had a decent year and underformed dramatically the gdp. >> 2019 was the kind of heavy investment year for amazon maybe it would transition back toward harvesting. >> that call says not really the question is whether the market would be okay with that because historically, the conventional wisdom is you actually buy the capex cycles. the other thing he did say, he expects the internet sector to get another dividend >> i was looking at that. >> it doesn't say which stock. you can easily see alphabet deciding to pay the dividend the question is how investors would interpret that that often has been one of these signals, okay, hyper growth phase is over now we're into a boring business it happened with microsoft its super growth phase in the '90s was coming to an end. >> i don't know, just what we saw in terms of multiple expansion and apple last year could be turning that narrative on its head. >> yes, apple did not conform to that idea that once you start to be a dividend payer, you slow down >> that is very true

on facebook is mark mahaney lead analyst. just had this conversation about facebook what did you think of the numbers yesterday? are you actually concerned about the increasing expenses or were things better than you thought >> let's see, i thought at the margin things were a little disappointing. we were expecting deceleration we got slightly deceleration than expected. the expense items were largely in line. there was a one-time legal expense that negatively surprised people, but other than that, we had -- we did bring down numbers a little bit, near-term little less constructive i still like facebook as a play as we go through 2020. they should be a major derivative off of the surge, the increased acceleration we'll see in global advertising because of the u.s. elections, because of the olympics we still think they have these very large growth catalysts out there in terms of whatsapp monetization and commerce activity on instagram. we like the asset. yeah, near-term we were disappoint and brought numbers down, still shows m