Rally about to hit a wall in 2020 joining us, jeff richards, and paul meeks good morning, guys good to see you. Paul, let me begin with you, ask you why . Is it because things are expensive on a relative basis . Thats right. I have been around a long time i remember with lashes on my back what happened when the internet bubble popped not falling for that scenario. I expect the u. S. To grow at a decent rate, fundamentals of most Tech Companies, not all, to be reasonably good, but the bulk, particularly of marquise tech names are trading at valuations getting me a little scared because i think much too much is priced into some of these names as we roll out of 19 into 20. Jeff, we hear that. On the other hand, you might counter with the fact some of the names got a haircut second half of the year episodes like wework, some argue, are healthy in the long run for staestablishing discipl. What do you think . I remember folks being concerned about tech stocks end of last year, had quite a run this year. Apple up 77 microsoft up 53 a whole class of companies on the smaller cap side did phenomenally well. Those are Companies People dont talk about, they focus on Small Business one thing we point to, Small Business economy in the u. S. Is really, really healthy did a survey of 500 Small Businesses earlier in september. 92 of them are bullish heading into 2020. While i agree with paul that valuations have gotten aggressive, we saw a pull back on high growth names in the fall, workday and others came down 20 and 30 we think those are prime to do well next year, and in the next three to five years. You name some companies you think do have decent up side from here. Amazon and sales force are among them talk a bit about sales force im looking back, october 2018 it was trading around where it is trading right now, i guess in a way thats an argument for the up side you see. Beyond that, where is it is there a particular trend or something going on in the Global Economy you think sales force in particular is going to benefit from i do. As we continue to digitize work flows, whether it be at the traditional crm product or some of the other verticals theyve either bought their way into or have come to those markets through r d, heres a stock thats a leader, will continue to be a leader, and despite the fact that theyve done large and disruptive mergers, including 16 billion tab low deal, heres a company that will still grow on an organic basis at least 15, it is a stock that underperformed, it is a leader, should have bounce back in 2020. Given what paul is saying, jeff, do you think in 2020 investors have to get chooseyer about where in tech they put their money . You look this year, semiconductors have done particularly well. You look across different groups of stock, apple has done really well do you expect it to be broad based or are investors going to have to get chooseyer . Did he sespite what we read,u look at google, facebook, apple as you mention, when i talk to folks looking for undiscovered gems, i point to the sass category as you mentioned earlier did have relatively high multiples this summer. These are company, if he likes sales force, he will love zoom, smart cheap. They have net dollar retention numbers north of 120, 40 . When they start into 2020, they know their organic base will grow 30 to 40 year on year, and add new bookings to consumers. We love those names and that category of high growth sass companies with strong net dollar retention. Also a metric Public Market investors are starting to look for, companies are increasingly disclosing jeff, whats your monk ee wrench scenario, overall positive what potentially happens that derails that thesis. Obviously we have an election coming up as you know, that has an effect on the market. Global trade had some impact this year, hasnt been negative on Companies Like apple that we thought it would be. One thing that changed our role in private tech markets, wework and some challenges there, you look at high growth, low margin companies, those not built around Pure Technology offering, were starting to see challenges there in private markets whether it plays out in Public Markets tbd, but the internet sector broadly thris was a recor year for ipos, most capital raised since 2014. Software up. Internet ipo, uber and lyft struggled, we look for that trend to continue while demand for Software Companies and high Market Companies continues to be really strong. Paul, love to get your thoughts on private money as well axios has a piece out saying even after wework and collapse and social media predictions, 23 new deals totalling 1. 1 billion what is the calculus behind that what is vc seeing . Well, theyll continue to pour money the problem with some vc funds, they raised a lot of money into the funds the last couple years, burning a hole in their pockets. Sometimes theyre forced to get invested to go after some stupid stuff. Wework was one of the examples i think what happens, youll continue to have some deal flow, hopefully more modest deal flow with reasonably priced companies. I also see opportunity how about some of the broken ipos of the last year, pinterest, for example, zoom, for example. You might be able to get some reasonable companies that are now going from loss making to revenue acceleration, and making some money i think those, when you talk about ipos and private to public, those might be our opportunities in 2020 to pick up some of the poor performing ipo deals of 2019. Paul, sounds like you think the 5g wireless ramp is getting too much hype. I wonder why you think that, especially since a lot of people expect a 5g iphone in 2020 are the networks in the u. S. And elsewhere going to build up and spend on networks ahead of that big salesman of a network, the iphone coming out . Thats a great question you asked the other contributor what do you see is the Monkey Wrench for 2020. This is my Monkey Wrench i think too much is expected in the ramp of 5g, and it is not a 2020 phenomenon but deep into 2021 phenomenon. I worry about stocks that are priced too soon on that transition from 4g to 5g why what convinces you theyre not going to build ahead of the marquise sales device of the network, the iphone, and that theyre going to wait until it comes out and potentially be behind the 8 ball, if indeed thats able to spark consumer demand for 5g. Theres a couple of factors here i dont disagree with you that there will not be infrastructure build. We have to have base stations, the networks you see some of the companies, apple included, with the iphone that are pricing in as far as their own hand sets goodies in 2020, which i think it is a 2021 phenomenon the other thing that happens, even with build out of the infrastructure, if we continue to have a battle between the chinese and the u. S. , it is going to delay things if we like it or not. That is a key factor to consider. Really quickly, last comment on the worries of a tech based cold war reemerging between the u. S. And china, how does that make stock picking more difficult next year . The other thing, we talk about the u. S. And china, we have to remember there are 7 billion people in the world, 1. 5 or 6 in china or the u. S the rest of the world, paul was talking 5g, you have southeast asia, india, latin america, africa, these are markets where consumers, billions of consumers are entering what we call the internet economy the first time, getting credit, access to bank services, access to apps on mobile devices so that landscape in addition to the u. S. And china is pretty exciting and we think is a big tail wind for a lot of Tech Companies i mentioned earlier, not just folks like facebook and google but apple and some emerging companies that run the infrastructure folks use to run mobile apps, benefitting from Global Expansion as are Companies Like shopify in ecommerce space. Plenty of fodder on both sides of the debate going into the new year thanks, guys see you soon thank you. When we come back, fedexed out, blocking the company from prime delivery contractors or employees, uber beating a ruling in california at least for now. Squawalys ckk le iba after this dont go away. On as a reliable phone company. But to businesses, were a reliable partner. We Keep Companies ready for whats next. man we weave security into their business. second man virtualize their operations. woman and build ai customer experiences. second woman we also keep them ready for the next big opportunity. Like 5g. Almost all of the fortune 500 partner with us. woman when it comes to digital transformation. Verizon keeps business ready. Some things are too important to do yourself. Get customized security with 24 7 monitoring from xfinity home. Awarded the best professionally installed system by cnet. Simple. Easy. Awesome. Call, click or visit a store today. Welcome back to squawk alley. A new turn in shipping ecommerce wars. Amazon wont let Third Party Sellers to use fedex ground for deliveries they say it only impacts a small number of shippers joining us, guys, good morning this is risky for amazon on one hand, they seem to be favoring their own shipping app, antitrust concerns looming on the other hand, they make a promise with prime, if they can show with data theyre not delivering according to promise, maybe theyre okay i think youre right. The other concern is Amazon Marketplace is theoretically a platform to build businesses on. Over time, you have to run that business, getting more and more constrained. Fulfilled by amazon, youre in their warehouse, abide by their rules, dont know if they show up in terms of pricing in the interface, you cant even pick the shipper selling through amazon theres enormous constraint that leads to significant concerns. Is this good Consumer Service, making sure stuff is delivered in time or anticompetitive behavior . It might be a little bit of both, depending who you ask. Look, the numbers show, studies show that amazon does have a slight advantage in their reliability, even one or two Percentage Points looking at the scale of amazon is a big difference if this turns into a long term decision, whether you completely block out fedex, thats probably a bit concerning from a regulatory perspective if it is a move to push fedex to get to a higher rate of reliability, then theyre in the right. Just for Third Party Shippers amazon will make whatever amazon contracted it will make with fedex. I think the real question fundamentally is if you are building your business on amazon, amazon is offering this platform to you as a merchant, then they constrain your choices in favor of their own products, is that anticompetitive i think the connection between better Consumer Service and little anticompetitive is clear to every business at this scale. Apple is a little anticompetitive sounds like an app store. You agree you get something in return for joining the platform, right . Thats consistently amazons argument but if you talk to merchants and how they perceive amazon, we wrote a story that merchants that feel wronged hire outside counsel to write a bezos letter where they specifically apologize to jeff bezos in order to get some relief they dont feel like theyre in a relationship with amazon, they feel often quite taken advantage of. Since we are talking logistics, get to frank holland, i joins us with a look inside amazons free one day delivery hey, frank reporter good morning. Amazon projected to deliver 2 billion ecommerce deliveries in 2020, 50 more than fedex. And the blue amazon vans are driving companies ability to offer one day shipping theyve seen the fleet grow 150 since starting a program called Delivery Service partners in june of 2018, when they started with 20,000 vans independent owners operate the vans, theyre important for logistics, innovation, branding. They are an important First Impression on the last Mile Delivery for amazon. After moving to one day, we have seen acceleration in revenue and unit growth. We saw exclusively how amazon vans play a role in one day shipping they built 40 delivery stations in 2019, thats what youre looking at 36 increase over 2018 part of the estimated 3 billion spent on free one day. Former army captain says it is a dream to have his own company with 60 full time drivers. He says amazon works with his company to make free one day possible amazon provides the routes for us, depends on the volume and who is ordering what, then they give us the route for that day. The system keeps our drivers in the same area, same route. Not the exact same, but really close, so the drivers know the area and can be efficient for that reporter amazon vans making the majority of free one day deliveries, seen as a growth driver u. S. Prime usage is expected to increase 5 by 2021. Crossing more than 50 of u. S. Population over to you. Frank holland with a great look inside. I am reading through what frank is describing and showing us in the logistics to cloud we talked about the New York Times story yesterday, they have so much control what happens within the cloud, how transactions happen, third party delivery, same thing is this just amazon spending so much money up front to then get to call the shots on how, whether it is digital or physical, how things are delivered . Yeah. I mean, absolutely theyve got, theyre dominant in one sector, in retail, incredibly dominant, using that to leverage their power in other sectors. We have seen that from them repeatedly theres a lot of antitrust talk and breaking them up, but for the moment theyre kind of going at full speed and they are continuing the same practices, and they can using contractors in this case to do it. Theyre not the only ones using contractors. Lets talk about uber. A u. S. District judge monday declining to order uber to convert drivers in california from contractors to employees. This one kind of hits you squarely at fox media. You guys have had issues with freelancers where this is concerned. What does this signal about how this debate over employees versus contractors is likely to go, and who benefits or loses. I defer those comments to the ceo. I think the thing were seeing here is this regulation passed, people are very excited about it, but it is not going to lead to instant change. The judge saying uber has some flexibility complying. It doesnt say they immediately become employees, if you issue rules, control how they work, theyre employees, same as any other employment classification lawsuit. The way regulations play out, it is not as cut and dry as enthusiasm suggested in the beginning. Companies need some amount of flexibility, may not pick employees all the way. They might find other ways to do it were looking at the amazon story. Thats another company that only has one consumer, amazon there are ways to set up corporate structures to comply with the law that may not be exactly what you want. When you look at how uber is trying to fight this arrangement, is it possible that the contractors, people driving end up losing out . Whats the mood and talk around the valley around whether it is the big company or the smaller contractors that end up losing here and by the way, i want to point out, should include lyft in this. Theyre seen as the good guys. Theyre two different companies. Both companies are fighting this so yeah, it is interesting every time i get in a lyft or uber i ask, i realize it is not a scientific sample, i ask the driver how they feel about this regulation it is very mixed i think you see that across the board. Uber and lyft tried to make the argument if drivers are classified as employees and receive those benefits that they lose the flexibility that most of them say they love about the job. Thats not necessarily theyre not mutually exclusive, this is what companies are saying totally agree, this is just the start. This will take years and years, and heres a thought by the time we figure out how they organize unions and what the employee classifications really mean, what the companies have and dont have to do, maybe Autonomous Vehicles will be going full speed at that point and it will be a moot point. Then everybody will be mad. One thing thats true, state by state regulation here is actually a good thing. Every Company Wants to complain, they want one set of equal federal rules, make business easy, but we have a great experiment how the big economy should work, it will filter other places and well see. Minimum page awage and cannaa push for local regions to decide. They pushed toward one big federal law, expand as fast as they can i think a check on that growth, a little thoughtfulness over how the relationships are structured is good for them. One more topic in Pete Buttigieg getting big backing for his president ial bid. The netflix Ceo Reed Hastings hosting a fundraiser for mayor pete in palo alto last night on the heels of an event in napa. Buttigieg got donations from 39 billionaires in the first 11 months of 2019 is buttigieg Silicon Valleys democratic candidate now first of all, i was not invited. I am in palo alto, didnt get to go youre a journalist, not going to pony up the money. No, sorry i wouldnt read that much into it it is an interesting time for any democratic candidate in Silicon ValleyElizabeth Warren and Bernie Sanders obviously have their antibillionaire thing going, and in this area you spit and hit a billionaire, thats tough to muster here i think that the kind of more central candidates like buttigieg and cory booker and a couple others have definitely come to events here, taken money from local billionaires. Julian castro spoke at stanford. I think Silicon Valley is spreading the love around, waiting to see what happens. Antibillionaire thing going to work . I dont think Elizabeth Warren could go to Silicon Valley, get this kind of a party. She would get the employees, i dont know that she would get the executives right kind of look at it in terms of finding a market, right if youre Silicon Valley billionaire, Reed Hastings or whoever, great report by the way, trump is an unacceptable candidate, cant publicly support, youll be torched for it Elizabeth Warren wants to break you up, bernie hates you who you got left pete is running into that lane to say i have concerns about competitiveness, i am an acceptable, smart, liberal candidate, employees, customers like me. But i am not breaking you up. Thats what they said about harris until she left the race, also had big support in california. Pete is doing beret cross the board, polling strong. He is finding his audience and market it is a rationale decisi way are you taking money from billionaires, his answer was no. That worked, didnt go much further than that. Good point on kamala harris. Should have been the underhanded pitch. Thanks when we come back. What is the biggest risk to tech going into the new year . We talk about that get a quick check of the major avag ei has unbelievably gone green. Back in a moment sure, the contents easy. But then you have to connect, download, edit, reformat, output, save, send, upload. Still uploading. And maybe eventually post. This isnt working. Introducing samsung business video solutions. With the galaxy note10, you can shoot, edit and post thumbstopping videos, all from one device. Samsung business solutions. Seema mody has todays action stocks in europe near fresh 20 year highs for european markets led by Energy Stocks you have the italian market up a half percent, but the big story is fallout of boeings decision to halt production of the 737 max, hitting shares of european suppliers first, francis safran, shares down about 1. 5 and then Engineering Firm senior, down 10 meggitt, another supplier, down 7 and boeing is a competitor to airbus that stock up in todays trade keep in mind, a number of european carriers ordered the 737 max, are trading lower british airways, norwegian, ryan air all lower. Speaks to how global and internationally connected the story is lastly, jab holdings saying theyre looking to combine some coffee brands, that it is exploring an ipo in europe to raise reportedly 3 billion youre owes sometime next year its portfolio includes petes coffee, stump town the objective for pure coffee and tea powerhouse to better compete with nestle and starbucks. Jon, back to you thank you. Good time for a news update. Lets get to rahel solomon with that hi, jon heres whats happening at this hour Democratic National committee announcing the democratic president ial debate for thursday will proceed, after all seven candidates in the debate threatened to boycott over a labor dispute. The dnc chairman tom perez brokered a deal between the Workers Union at the debate site in los angeles and Management ServicesCompany Chinese president xi attending the commissioning of the second aircraft carrier, the first domestically built north Korean Leader kim jongun visiting the palace of the sun to mark the 8th anniversary of the death of his father state media show him walking into the palace. And back in the states, widespread damage in parts of western alabama after an apparent tornado touched down last night more than a dozen homes badly damaged. A swarm of tornadoes hit the southeast killed three people, injured a dozen more youre up to date. Thats the cnbc news update this hour lets get back to squawk alley. As we go to break, shares on netflix are up asia pacific growing at its fastest pace in three years. On the other hand, shares of roku down. Announcing the cfo is stepping ar d shesown 2 squawk alley is back after this welcome back to squawk alley. As we head into 2020, finding tech workers isnt getting any easier thats a big take away from cnbcs Quarterly Survey of Technology Executive council a qualitative sense of whats on the minds of Technology Leaders across industries. Companies like master card, j. Crew, mcdonalds, really across industries finding qualified employees to fill open tech jobs, biggest concern outside of Cyber Security whats the solution . There is a push to look at nontraditional candidates, people that can do the work, may not have a degree from that set of schools theyre used to hiring from. But doing that can mean overruling software that screens job candidates in a lot of cases. At this stage, those algorithms tend to get you more of what you have already so the same types of candidates with the same types of qualifications how do you beat that bias . Many say if you start with a more diverse work force, that helps. Get a third party to Audit Software i guess get people to watch the software thats watching the people. Especially now where a lot of programs dont wait for you to speak, it is a picture of your face, what they can gloean abou you from self expression. So many studies being done how software doesnt always get it right saw the dust up over the apple card, a husband and wife in the same household getting approved for very different amounts as far as credit limit. Somebody has to watch the software some of the practices people had in the past that fed the algorithms, theres bias more discussion of Facebook Content yesterday. Log nation shares are higher after dropping 8 since friday, news that doj is scrutinizing the company. Julia bo Julia Boorstin has the latest. They could take action the next several days on charges that live nation violated a Consent Decree the latest, my source says the concert and Ticket Company countered department of justice proposed remedies for violations of the 2010 commitment to not pressure venues to work with ticketmaster next few days, department of justice could file a motion that it has come to agreement on changes the doj seeks, or if talks breakdown, the doj could start taking live nation to court. Congress is also investigating live nation. The house energy and Commerce Committee said they would investigate the ticket business as a whole jeffries has a buy rating. Live nation has consistently indicated it has been kplienlt, and the range of outcomes is wide, likely scenario is one time settlement and expiration of the decree that would be positive for the stock no comment from live nation or department of justice. It is part of broader push by dell ra him to toughen Consent Decree enforcement last year, they lowered the evidentiary standard proving a defendant has violated terms this is the latest in the string of moves in the entertainment space. Last month, began the process of ending paramount Consent Decrees that limit Movie Theater ownership. Back to you. Julia, thank you. When we come back, live in montana for a look how pea farmers are being hurt by tariffs, and what might help them out. First, lets check in with rick santelli. What have you got your eye on today . You know, a lot of solid housing data the last couple days, markets are multidimensional were doing a big experiment after the break. Im going to do 3d tv. Tune in. I am scott wapner. Heres whats coming up top of the hour what the rallys next leg could look like, sectors set to outperform we discuss that with the investment committee. Talk of the executive leaving roku, what it means for the stock price in the months ahead. And stephanie link revealing new buys in the portfolio. That and more at noon. Jon, little more than 15 away. See you shortly. All right well see you soon thanks, scott. For now, lets head to the cme. Rick santelli is there with the santelli exchange. Rick good morning, jon weve had some great housing data the last couple days, havent we National Association of Home Builders index yesterday at 76, 20 year high today, nice bumps in Housing Starts and permits second best number in starts in 12 years permits, the best number in 12 years, going back to 2007, granlt granted, prior to that, higher numbers on permits and starts, but truly improvement. Steve liesman brought up earlier theres a lag, whether it is Interest Rates in the marketplace or Interest Rates controlled by central banks, specifically the federal reserve, we know that theyre down, we know were at 2. 68 and ten year note yield, end of last year has come down theres so much more to housing than Interest Rates. However, like all issues that effected the markets when we were negotiating with china on trade prior to the agreement on phase one, uncertainty has a cost associated with it. When it comes to housing, theres a lot of issues outside of just rates, whether it is the cost long term expansion, jobs play into it as well. I told you about 3d. That was d number one. 3d data, dollar debt on the dollar side, big story today, dedollarization, weaponizing the doll arear Mark Chandler on foreign exchange, we heard it before, decade after decade, stability and viability of dollar as a reserve currency always comes under the microscope this time it is different. Not saying it is going to succeed, but it is nice that the u. S. Tries to steer things its direction, what it believes is the right direction, not through violence or less wars in the future, more towards tariffs, more towards sanctions, and that of course works well from the u. S. Side because we are the biggest economy in the reserve currency that will make it so others may not want to see us in that position, hence pulling away from the dollar. Finally on debt, look at a chart of ten year notes since july i can chart on futures, but i like to watch the cash charts best 190s, you see, thats a stopper almost every time. Everyone is putting out Research Like citi, thinking theyll retest under 1. 5 . Be careful, were in a giant channel. Well eventually pop through 1. 90 carl, back to you. Thanks for that, rick santelli. Grabbing a piece of the gaming pie the ceo of atari is with us. Lets get to jane wells in montana with a look at whats coming up as well. Jane reporter carl, were talking world peas welcome to big sky country montana is a cattle state, also top grower of a key ingredient to replace beef. Beyond meat cant get enough of this stuff why arent pea farmers making any money . We have that story after the break. This is totally customizable, so you focus only on what you want. Okay, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. Now this is what im talking about. Yeah, itll free up more time for your. Uh, true crime shows . British baking competitions. Hm. Didnt peg you for a crumpet guy. Focus on what matters to you with thinkorswim. Looking around here i see tablets, laptops, printers, smartphones. Theyre all connected to the internet. Theyre all connected. Can your network handle all those devices . Sometimes. Comcast business runs on the nations largest gigspeed network. So you can get the bandwidth you need to power all of your devices at peak performance. If all of my devices could have that kind of speed, i would be dancing get started with secure 35megabit internet and one voice line for just 64. 90 per month. Call today. Comcast business. Beyond fast. Welcome back to squawk alley. Americas pea farmers are losing money. Jane wells is in montana with more on what might save them reporter hi, carl. Peas are cheap, high in protein, not very profitable. Tariffs from americas two largest consumers, india and china, caused exports to plummet. Most of the market is export market domestic demand may help at least one farmer. These are yellow peas that have been treated. Reporter paul is a fourth generation farmer, air force veteran, he is taking a risk, buying new, more expensive seed from purist foods which is trying to beef up pea protein supplies for Companies Like beyond meat. Cargill invested 100 million into purist to win farmers over. Did i mention this was montana cattle country theres this kind of friction between beef growers and pea growers on things like beyond meat i guess my approach on that is it is not really for the farmer or rancher to decide what the consumer wants theyre going to go whatever direction they go. Im not trying to put neighbors out of business growing beef there will always be demand for beef but there are a lot of people out there that want Something Different or want to change it up a little bit. Occasionally i had comments about why you trying to put me out of business. Im not. Im just looking for new opportunity. Trying to get in for new opportunity, trying to get in on the ground floor and well see if it grows. The market is growing, just this year alone over 300 new pea Protein Products launched in the u. S. , new products compared to only 11 a decade ago guys, not enough yet to make up for china and india. Back to you. Wow jane, it seems inconceivable in a way with all this boom in the fake meats that havent driven it higher. China and india. They account for 40 of the market, experts account for 60 of the market. Get this, canada doesnt have the same tariffs canada stocks on hand, peas left over 10 the u. S. , they have about 50 still waiting for a market. Jane, we talk about these supply chain issues sort of in theory we talk about stocks no one helps us understand the way its changing for those who have to live on the ground better than you. Thanks, jane squawk alley back session highs, 3194. Welcome back to squawk alley. Holiday season in full swing and consumers spending on Technology Remains large. Ataker, t atari looking to take advantage of current climate and grab a piece of 43 billion joining us chairman and ceo, fred, good to have you here. Thanks for being me. Its been quite a struggle for atari. You guys went through a bankruptcy five or six years ago, in the middle of a turnarou turnaround give us a status. Its true six years ago the company went through bankruptcy sa back at the time, took us three years to survive and three years to put the business back on some ground today, you know, we see ahead of us a market fundamentally growing for reasons, more platforms, female play, an audience growing a lot of people, 40, 45, we still dont play we have a market growing for very simple reasons. Youre trying to crowd fund the atari console that originally was supposed to ship this month, now next spring. Next year youve got new consoles from microsoft and sony coming out how do you thread that needle and still get the volumes you need. First the console was slated for march 2020 and it is still i think you have a lot of different options today. You can go for high end consoles not benefactor end of next year. At the same time we believe theres room for a Simple Machine in the living room that will let you serve the web and have also a lot of applications in your living room. So very, very different market. Are you saying that gaming doesnt depend on highend resolution, highend graphics. We can be looking at simple things but familiar things, right, like that i think today you have so many players, so many different situations you can play on any platform you can have retro gaming, which is what we believe in, which is a very simple game play, very, very short session on the other end you can play for three hours, four hours, so you have just like golf i think the analogy of golf, you have highend players, tiger woods, in tennis federer at the same time you can still have a game of golf, a game of tennis and you can enjoy it. So you have a lot of options im saying everyone should be able to take what it wants depending on the situation i play for 30 seconds, i can play for 30 minutes as well. The raspberry pie an inspiration to you at all . Seems like among my generation now, on these mixed based platforms, a trend toward playing old favorites like techno bowl, mike tysons punch out you can get loaded to a gadget you plug into the tv. Is that what youre trying to take advantage of . Exactly the picture is you have an audience fun for 30 seconds, one minute, two minutes, three minutes. Thats a market. You will see a lot of sports coming into this category as well again, think about sport, other forms of entertainment you look at movies, you somewhere short series, tv series, five minutes, fiveminute segments enjoy it why . At the same time today people are trying to multitask and exec. The legacy games atari came up with in the day, what are the most popular today you have pong, everyone remembers, a groundbreaking game i personally like breakout thats one of my favorites at the same time you have mission command, asteroid. Centipede. Were taking it one by one. Do you have to choose a walled strategy nintendo had so long or license strategy with this library of name people know the demand is questionable in an era where people are playing fortnite. Were flexible. I deal with the reality. I look at what we have regarding licensing, if you take a game like asteroid you can have it on your mobile at the same time with partners weve launched a new home machines, medium size. You can have it to play with kids and the family. I think broadly speaking the video Game Industry today is getting mainstream i dont want to make any comparison to the movie industry or Music Industry but what i can tell you definitely part of the dermot picture in the granld scheme of things. How much do tariffs potentially hit you . Excuse me how much do tariffs potentially hurt you right now on games theres no hurt i think we look forward with confidence so i dont think its going to hurt us. All right fred, great to have you here, Fred Chesnais from ataker. I have a soft spot from atari. Negative Customer Trends in north america and internationally, thats one name were watching you cant not mention boeing at this point because despite all news, production halted, max, cramer said if it trades up, there is no kryptonite, as jim said up 1 , 330, not by much. Thats helping the dow stay in the green up 81. Other story, stocks continue to move, netflix up 3 and peloton. Peloton up 4 so take that, commercial critics. Finally fedex, tonight after the bell we will be looking for some clarity regarding their relationship, their withering relationship with amazon lets get to the judge in the half. Scott wapner front and center, final stretch. Where will your money work best. 12 00 noon and this the halftime report. More historic buys. Where to put new money to work in this record breaking rally. Netflix revealing numbers behind its Global Growth story for the First Time Ever and the stock is rallying is momentum back in this name . Boeing, a major drag on the dow. Stock in danger of first negative year since 2014