Were at post nine morgan and john have the morning off. Interesting setup here were approaching nasdaq 9 k very quickly tech, the best performing sector for the year hitting a fresh record high this morning joining us to day with his top picks in the sector for 2020 is our lead internet analyst. Mark, happy holidays good to see you. Good to see you, too. I want to get right to the large cap longs for next year. Uber is number one then you have two, three, four talk about it. Yeah. Im going to pitch it. Uber is the facebook its our facebook for 2020 it turned out of all the stocks, facebook is the best performer in 2019 because it whats so dislocated at the end of 2018. A lot of controversy around it i think thats exactly the setup or similar to the setup on uber now. We like it we think well see a clear path to profitability i think well see sustained growth in the ride sharing business and if they can fix that eats business, thats going to surge the outperformance and cause the outperformance in uber shares number two is google, number three, facebook and number four, spotify. Mark, i have to ask you about facebook this year we have done so many interviews about facebooks regulatory challenges. Facebook has shaken off so many of those concerns. But the company has warned that theyre going to go through this business transition next year and that they will see a slowdown in advertising growth why are they still on your long list well, i think we start off with valuation, julia. Its the cheapest large cap maybe tech stock on the growth adjusted basis you can buy this thing for 20 times gap earnings i think that gap Earnings Growth is more like 25 its rare you see a Company Trade at a high Quality Company like this trade at a discount to its growth rate like that. And then look this is going to be a banner year for advertising. You have olympics and elections. I think facebook and google will fully participate in that. So i dont buy the idea that theres going to be i know the company said it. I dont buy the idea that there is going to be a dramatic deceleration in the Revenue Growth the last thing is this is a major investment year. Dramatic increase in capex and opex youre starting to see a mellowing for next year. You have a positive Free Cash Flow inflection point. Thats why we like facebook. Mark, uber, you make the indica case it is unloved and friction in terms of the Business ModelFacebook Trading at a historic low. Alphabet broadly loved everybody embracing the story there. Now trading at a good premium. What is the case flight for new mine yeah. So michael, i think what could be the surprise, google comes on the expenses look, googles Revenue Growth has been extraordinarily consistent i think were 39 straight quarters of 20 Revenue Growth so thats not whats been the surprise up or down on the stock. Its really been the margins and the expenses two things im keeping track of. One, the Cloud Business is now at a point of scale 8 to 10 billion in revenue i dont think that is a drag on margins. The second thing is a hope with the recent Management Changes that well start to see rationalization and all that spend that they have in the other bets categories which is four billion a year in losses. You start rationalizing the assets in there, you can see overall margins improve for the first time in years. Earnings growth with match Revenue Growth at google and can you see a rerating in the stock. Thats the pitch. Mark, 5 g, internet of things, broken ipos, wearables, what is most misunderstood right now . In terms of the stocks, i just pointed at one of the ipo internet ipos dramatically underperformed this last year. Every single one of them, i think. There may have been one exception. Only one broke issue traded below the ipo price f you believe in reversion to the mean that, means there is something in there a good outperformer our bet here is pinterest is one of them. Uber will be at the top of the list 5 g rollout helps the companies. Theyll use faster services, more Stable Services to connect to the apps and the services they like the most things like the investments theyre making in a wearable device that, is a five to ten year trend these companies are starting to invest heavily in that space its a tbd space for us. Mark, the question about 5 g. We hear a lot. I also heard from a lot of folks that if you look beyond just the at t and ver eyes yo at t and verizons of the year, do you think well see consume bern fit as soon as next year . You make a good point you know this is we may be a little premature with this call. Maybe 5 g is really the 21 story. The other big risk is regulations and you brought that up earlier this is going to affect all of the companies. I just sort of feel like these stocks have been tested pretty aggressively i think were close to peak reg. Were going to save that bit of tape, i guarantee you in terms of areas where youre not long and strong as you tlik say, are you willing to talk about names you would definitely shy away from oh, yeah. In large cap internet, there is a couple of names that i think have got real issues so twitter is one. I think this company underinvested in their products and they had the big blowup. They need to invest the margins which were really super high ebay is showing no growth. They have drat mamatic problems there. You lost relatively good effective ceo. That is a stock we would steer clear of the last is trip adviser these companies in the space where decreasing presence by google and the bookings and expedias of the world becoming more impactful there very little room for that in the internet Going Forward. Do you think that twitter underinvestment is responsible for that bug in the ad platform last quarterer i think thats a reasonable interpretation, carl look, you have a bug i mean the development wasnt done right. And those margins were super high ive been struck for a while by the fact that in 2019, facebook is another social media company, you know, dramatically amped up the spend to protect, to improve the product and also to defend the platform and we didnt see that from twitter. And i was struck by the fact that they were doing this quarter end quarter out. I think we learned that they probably made a mistake. I think they realized that too i think well see margins come down i like twitter long term it ma i well work. Its a unique asset. I think that is absolutely true. But near term, if margins come down, stocks underperform. That is the setup on twitter right now. Mark, thats a great way to frame the coming year. Cant wait to go through the year with your help, of course, and see how those recommendations play out thanks, mark happy new year, carl. All right and now turning to netflix, the stock taking the top spot as stock of the decade. With us now, Foundation Capital paul Holland Foundation was an early venture backer of netflix. Paul, good to see you. Good to see you, carl this is mike. Lets sorry, mike im blind, i cant see the monitor. I got you if you talk about netflix this decade long window to look at is actually fascinating start of the decade. It was a dvd subscription business they had to convince the world that peoplewould pay for streaming either instead of or in addition to their paid tv bundle now the companys being cast as a bit of the incumbent as opposed to the innovator they have to play defense is that a fairway of thinking about it what is the next phase for the companys growth going to look like i think you characterize the history quite well my partner invested in netflix in 1998. At the time the concept was, you know, we would like to see large markets. We like to see innovative Business Models and we like to see fantastic Management Teams one of the top five as the business as a whole. Then i quibble with you about a little bit about the present yeah, the incumbent because they eshd t earned the top slot in that perspective f i look at the business today, i did a very Scientific Study yesterday and they came back and said, you know, dad, netflix is a subculture for us. Like we grew up with it from the very, very beginning its a dream brand from a segmentation perspective when you by this where they are in the position and they are in the marketplace, its a trillion dollar marketplace for media theyre number one and continuing to grow and so, yeah, they have become a giant. Theyre facing competition for subscribers and also for content, which of course, drives the cost of content up higher. And then internationally they seem to be focusing more, were seeing them charge less. So you sort of have the pressure there. Where do you think netflix has the big opportunity . Will they be able to grow the u. S. Subscriber base anymore or is the future really overseas . Well, i think you get to place where you become so large, you know, you good tote where youre a reflection of the population at some level and facebook got to that point for any of us that worked and lived overseas, you know, you have to adjust to what is happening in terms of local pricing in different places. You cant do one sties fits all. So its sort of logical they end up going down that path. Im not terribly concerned from that perspective you look back at netflix, it was an Innovative Company run by the best software vebodevelopers i ever known were going to continue to see innovation on the Business Model. Some of that you can look at and try to predict some you cant but this is a Disruptive Group that is built out this business. And theyre not going to rest at this point paum, tl, the cynics continu point out that Netflix Service is not there to subsidize some other area where Companies Make money, theme parks, wireless services, phones are they unique and disadvantaged . So i would actually turn that around i think there is something about focus. We look for this as venture capitalists in all of our businesses if i look at where they are, people talk about theyre new competitors that come out on subscription video on demand which is area that netflix pioneers but that is certainly true if you look at what happened, they really kind of swamp the field against their traditional competitors. I mean, i think about if you look at 20 years ago, if you look at utilities and cable which are effectively similar, cable is a utility for media wow, you just cant miss with this kind of thing you get my kids generation and their generation, theyre never going to be on cable theyre going to be new chetors and there is a really big pie there. But its really been the dekopgs of that existing competition if you look at utilities as a business, my utility, pg e has gone bankrupt. You know, we think that we see longer term from my perspective. There is every indication that netflix is going to stay very, very dominant within that domain paul, final question about netflixs impact on the Movie Theater business we just had the ceo complain that netflix maybe leaving money on the table or at least damaging their potential box office with irishman what do you think netflix is going to do Going Forward with the box office and with its Record Number of Theatrical Release this is year yeah. The way i look at their decision making, im not on the Management Team or board, of course, but they tend to ignore whats in place already. Its not about were thinking about it from the perspective of the existing infrastructure. They built out this completely different approach to it what they have is a focus on quality. Theyre trying to have the highest quality possible then if they do that, you know, if you build it, then they will come if you do it, you will have this generation of kids that are now coming into adult hood that will be on that platform for the next 70 or 80 years paying subscription. Like theres unbelievable value socialed with that its almost historic value. I think that is one thing that manufacture the traditional analysts underestimated over the last, you know, whatever it is youve had me on for seven or eight years talking about netflix. Now were number one for a decade the i think were going to continue to see that people are just missing the point at some level. This has moved into a new platform netflix is dominating that platform its a trillion dollar market. Totally makes sense. Up 4,000 in a decade the market is handicapping that growth, paul thanks a lot for your time today. No worries. Perfect. When we come back, its keeping Corporate Leaders up at night. Hacking. Well tell you how Top Companies are working to protect themselves and it may surprise you. Plus, its been the year of cracking down on big tech. Whats in store for next year . Scs. Patrickof is with us to dius most people think of verizon 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. Welcome back to squawk alley. Its a fear keeping consumers up at night, hacking. Data breach is increasing. Every ceos Worst Nightmare data breaches can take a major financial toll on companies. Silicon valley startups are using freelance hackers to try find potential loopholes before its too late. Goldman sachs capital one and the u. S. Military are paying hackers to break into their systems and find flaws before criminals do its called above bounty program. Most of the Big Tech Companies have these programs. Startup hacker one who connects a network of white hat hackers to Government Agencies the freelancers get paid an exchange for finding vulnerabilities. Were allies, right were not just sketchy people in their moms basement who are out there to cause damage. According to ibm, the average cost of a data breach in the u. S. Is 8. 2 million hackerone ceo says banks are especially at risk because of the big payoff of getting Financial Data neighborhood watch. They come to your house. We look for ways to break in and if we can break in, we tell you. The company is becoming a popular bet for investors. Its backed by microsoft, facebook, and mark beneof. It could be a lucrative gig for hackers. Six of the freelancers topped 1 million nerngs i spoke to one who says he is using it to pay for his Computer Science degree at stanford amazing im guessing the 8 million figure does not include lost business that they didnt get as a result of lost trust right that is per company. Then you have examples like capital one which is hundreds of millions thats a great example of a Bug Bounty Program they found out about that breach through a freelance hacker who submitted that vulnerability online they looked into it and it ended up being much bigger than they even knew. It seems Like Technology is changing so quickly. Both in terms of what the hackers are doing and then what the companies have to do to protect against the hackers. Do you think that theres going to be a sort of transformation of the industry over the next couple years or is this what you should be worrying about the technology is changing. And the way people are doing it. It used to be the i. T. Department is finding the vulnerabilities. Now it is the freelancers. You have this gig economy effect it is similar to an uber driver. I spoke to a Software Engineer and he says im going to log on and find vulnerabilities it is a video game type thing. I think that gig economy thing will continue. This is doing it on the up and up as opposed to going in and extorting a company and saying i found this vulnerability. That comes later. Right there is reformed criminals on this the top hacker is somebody that had been in court and said i promise ill stop doing this ill do it for a white hat hacker organization instead of obviously payoff is huge if youre doing it on sort of the criminal hacker. If you lock to hack, its a dream job to have permission to do so. The youngest hacker is 14 this video game vibe that people are saying okay, i get to sit home i good et to hack in sort of do this as solving a puzzle and i get to make thousands of dollars. People made a million dollars. One of the guys with he spoke to made half a million dollars, took a year off work to do this. Just the fact that there are that many vulnerabilities is scary. That is eye opening, kate when we come back, speaking of millennials, millennial migration, where the largest economy is losing a big part of it workforce amazon is leading the s p 500 after reporting the record holiday sales. Were watching that. Session highs, 3234. Squawk alley is back in a minute welcome back the nations largest economy is losing a generation of wage earners. Jane wells joins us from los angeles to explain where theyre going, jane. Hi, mike. Yeah, its not just Large Companies like Charles Schwab leaving california the census numbers do not lie. All kinds of young professionals, some of them making decent salaries, are leaving too. Take, for example, 30yearold sidney mulky, making about 58,000. Moved to portland, oregon, got the same job at 70,000, allowing her to buy a brand new condo, something that never would have happened in california i was work three jobs at one point and just really tired. So that was kind of the last straw. Small Business Owners moved from l. A. To nashville because they couldnt afford to save for retirement or their kids College Funds even though scott was working 80 hours a week at his own business in l. A. , lookat this they owne a 3100 squarehouse on a small lot n tennessee, they own a larger house on seven acres with the building to run their business out of, no state income taxes, property taxes a third of what they were in california, Health Insurance costs cut in half weve been here six months and in that six months, weve already had six friends of ours, six couples relocate to the same area also. People have this image of all the old people who are frustrated leaving but actually the ones leaving are family age people. People 30 to 54. That group thats the group that is leaving. And that is a man from Chapman University while millennials are leaving california, fewer are moving in. He says that could really eventually impact californias sort of entrenched culture of innovation and dreamers. And that could hurt the nation besides the fact that were all moving to your state and maybe driving up your prices well, its easy for people to leave, guys, this may sound geosen trick, it is really difficult to recreate that culture somewhere else from scratch. Back to you. All right i think people know what you mean by that, jane hang with us for a moment. We want to mention that nasdaq has hit 9,000 for the First Time Ever comes after hitting 8,000 in august of 2019 and, of course, now the countdown can continue to nasdaq 10 k. Exactly if you remember, nasdaq dam 5,000 was the landmark in the year 2000. So its not quite double that. The s p 500 has in fact well over doubled its previous all time high. So this shows you where recently the strength has been in the market but its been a long come back apple, 10 of the nasdaq. Microsoft, too. Heavy weights in the true sense of the word. And so many of those companies, though, that have really transformed are in california yes, theyre in california. Jane, you talked about the culture. The question is, you know, will we see more Tech Startups and more Tech Companies leaving california or will we still see the young people who want to work in hollywood or want to work in tech feel like california is the place they have to be youre going to see the startups here people in other states will start thinking i do want to move there . How much money am i going to make if youre a tech millionaire, thats one thing f youre making 100,000 to 200,000, thats when you start to wonder, do i want to do that . Also, julia, we have a lot of migration within the state east, east, the eastern part of the state. The jobs are not moving there as well so people have these tremendous commutes to get to the coast where the high paying jobs r if they can even get them yeah, its fascinating, jane. Also, i guess the question is sort of, you know, we have folks like steve case talk about the rise of the rest and talk about how there is innovation communities, startup communities emerging in other places such as in portland, oregon a lot of folks from california move seattle, obviously, a growing destination. But then will those big cities, you know, like seattle, start to have the prices good et so expensive that its not work moving there anymore seattle is already seeing that happen. Of course, seattle has always had microsoft and amazon but when you start looking at austin or nashville or columbus, ohio, another hot place, you are starting to see the prices come up people are changing california license plates before they move there. But the real question that you get at is are you going to recreate Silicon Valley in columbus, ohio i dont want to sound like were so great in california that is a lot harder to do than it sounds like yeah. I did notice k. K. R. On monday got into the seattle Real Estate Market a market we believe has attractive long term growth driven by highly educated employee base. Things youre looking for that a step between l. A. , san francisco, and columbus, ohio. Yeah. I do remember the early 90s there was a big exodus, the same price arbitrage, people leaving california and going to texas and nevada it didnt sink california. Its not as if its always a zero sum gain. Thank you, jane well see you soon our jane wells. Lets get a news update heres whats happening at this hour. A strong typhoon that struck the central philippines killed at least 20 people and forced thousands to flea homes. It stranded many people at sea and at airports at the peak of the Holiday Travel season. It knocked out power to thousands of folks out there. A search operation was launched after an avalanche swept across a ski town in a swiss town there are fears that more skiers may still be buried under that thick snow a group of protesters blacked a highway in baghdad they demanded improving Living Conditions and get this, russian president putin played a hockey match in red square alongside the countrys defense minister and legendary hockey players on christmas night. The Hockey League was founded at putins initiative in 2011 and aims to promote thatsport in russia stop me if you heard this one, guys, putin scored five goals to lead his team to a 1410 victory. That is your cnbc news update for this hour. Lets get back to the folks at squawk alley. The goalie had an off day he always does. Thanks, dom usually this time we bring you the european close european markets are closed in observance of boxing day its a nearly 2 billion industry and its all about the likes. Instagram toying with getting rid of that feature. Well tell what you it could mean to the big brands behind the innunsers. And nasdaq hits 9,000 for the First Time Ever. Squawk alley is back aer isft tech stocks outperformed this year. The nasdaq hit 9 k a few moments ago for the First Time Ever. Tech companies have come under increasing fire from regulators. So what should investors expect in 2020 . Heres our reporter. Big tech was a big target on both sides of the political aisle this year. And the scrutiny will only grow as the 2020 elections get closer democrats still want the top tech ceos to testify and a source tells me theyre working on new legislation to ban mergers. Over in the senate, republicans are trying to build support for a federal privacy law. And both parties are raising red flags over chinese Companies Like tiktok. Relateors are taking aim at the federal trade commission and the Justice Department will try to focus antitrust investigations into facebook and google texas and new york are leaving states and build aring their own cases against the companies and californias strict new privacy law goes into effect but the most heated rhetoric could come from the campaign trail where big tech faces an Election Year test after the fallout from 2016. Facebook in particular is feeling the heat over political ads. But all the platforms are under pressure to prove safe from misinformation and from hacking. They need to show they learned a lesson from the last election. All right talk more about this how do you see this shaping up from the first part of next year we do expect to see some final report from the committee and house investigating some of the companies. So expect that to come out along with the potential legislation as well. And the department of justice also said it expects to wrap up the broad antitrust investigation into tech sometime next year whether that is before or after the election remains to be seen. So we expect some of these things tostart to come to fruition, the seeds of which were planted in 2019 but there is still a long headache ahead for big tech. A lot of the issues span the political spectrum republicans and democrats unhappy with these companies and probably big tech wont be able to wait them out with the passing of november when the white house turns over and when Congress Turns over. You know, its interesting. We have the california privacy law going into effect. Theoretically in january may take another six months before anyone actually has to dpli i wonder what kind of pressure you think that California Law is going to put on capitol hill to pass on the federal legislation and what kind of conversation you expect there yeah, we did see a sort of last minute flurry of discussion on capitol hill over a federal privacy law. They put out a discussion draft of Bipartisan Legislation they thought could address the major issues around what are the consumers rights . They should have an ability to access information, to delete information, to debate information if they feel is incorrect. They want to get this legislation across the finish line really interesting. Thank you for that talking about Regulatory Risk for tech next year joining tuesday at the table, managing director Alan Patricof is here. Nice to see you. The piece makes you wonder what tech stocks might have done there have been no Regulatory Risk it took ten or 12 years for ibm to be resolved and how many years for at t this is a long process im very supportive of it. Do you think that all of these regulatory conversations, whether its the antitrust threat or the privacy regulation or the question who have is liable for the content that is being served on the flat forms, do you think that will impact how investors in the private or Public Markets approach this i mean for you as a vc investor, are you more weary of a startup that could be really damaged by regulation in this area . Honestly, i dont think were going to worry thach about t mut it as a specific issue we as consumers and people that are participating, were 90 of our lives depend on google should be concerned about the fact that, you know, we are addicted to these services it was a utility and still a utility. Certainly going sl a utility and they slu some regulations. I personally believe and i think they now broken up bifurcated the issues, i believe. I think congress is now going after google and apple and the ftc is taking on amazon and facebook i wish i could be optimistic and say it would happen before the election i think its going to go on. I guess its an early stage private investors, you hope that your Companies Get big enough to become a target of some kind of an antitrust measure just because it means that theyre economically important and have lots of control over consumers. Are there opportunities based on what might ultimately come out of this regulatory phase in other words, newer companies that are going to do Something Different or compete with that absolutely. When you have so much of the advertising business controlled by facebook and google, its going to be Google Companies have had no choice but to base themselves on those platforms. No one likes to be vulnerable to a platform and im sure you heard the legendary of how overnight theyll change the algorithm and then the traffic goes down in half you spend another two months, three months reconfiguring and then it happens over again its a constant threat the crazy thing is ail our antitrust laws are about prices being raised and unfortunately, the result of a lot of these is prices beinglowered. Well get a message in our ear im looking at trip adviser and expedia. Those are two companies affected by the algo. How influential are they in prodding regulators to get to work i dont know who is responsible. I think its a bipartisan issue too. I think i dont know how a candidate can avoid at some point being asked this more than once how they stand on those issues i think its something that has to be dealt w the privacy issue, what happens to our data and one of the strange things is all of us, including me, gets something from one of these sites and i agree. You just check it off. You dont read what is there but what you agree to is giving away a lot of your life and information about yourself and youre not getting paid for it except by getting free advertising. I know looking at the nasdaq, hitting 9,000, and sort of what that signifies in terms of those tech stocks on the nasdaq, i wonder what the outlook is for ipos next year so many of the ipos this past year fell far short of expectations what do you expect for next year we had a phenomenon this year that a lot of the companies that had been through one, two, three, four, five, six rounds selling shareholders had gone very far along and they came public at somewhat exalted prices before the economic model actually had been perfected and they got the bo the tom line profit and i think whats happened is a lot of Institutional Investors and the Retail Investors behind them have said wear the emperors clothes and said how are they going to make non wheres the beef if you remember that Famous Commercial i think thats a constructive healthy warning. I think that has made the underwriters and made listen, the most important investors are institutions theyre more cautious in saying show me how youre going to make money. I think the long answer to your question is i think the ipo market is going to be fine this year for those companies that actually have proven models and it makes sense the market is always based on windows. The window opens and the window closes the i think the window has been close ford closed for a while because of peloton. I think peloton stock is over the issue price now. Theyre still hanging on the problem of uber and lyft being down i think windows are going to be open for the right companies if you have a good model like zoom did, the multiple in that stock is very attractive for who bought the stock. No doubt about that alan, look forward to talking to you soon thanks for coming in in. Happy new year. Good time. Alan patricof. When we come back, meaningless box office what the ceo of the worlds second largest scinema group is saying about netflix mike, i look up at record highs in the stock indices, strong u. S. Economy 2019 f the fed didnt ease three times woshgs the grinch have stolen the u. S. Economy that or something instead . Well talk about that after e brk. Ea th upbeat music [narrator] at Southern New Hampshire university were committed to making college more accessible by making it more affordable. Thats why were keeping our tuition the same for all online and campus programs through the year 2021. [woman] i knew snhu was the place for me when i saw how affordable it was. I ran to my husband with my computer and i said, look we can do this [narrator] take advantage of some of the lowest online tuition rates in the nation. Find your degree at snhu. Edu. A new mark milestone, the nasdaq hitting 9,000 moms aents ago. Our desk will dig deep into this amazing rally. Plus, zeroing in on Retail Stocks in the Options Market hell give us the latest moves and the oil trade seems reenergized, thank you Investment Committee is unveiling their ideas if oil and gas. Thats coming up at 12 00 noon lets get over to the cme and chicago. Rick santelli has the Santelli Exchange hi, rick thanks again, mike. You know, we have lot of smart guests all our guests are smart on cnbc there is a chorus of late. As we close a really nice strong 2019, it isnt only the fact that we have the stock markets, all three indices just on fire, and we maybe are over our skis a bit with respect to where equities are relative to the u. S. Economy but there is no doubt the u. S. Economy is solid we can argue if it was more solid in 2018 and im sure various sectors were but there is a lot of uncertainty issues that provoked some of that in 2019 and many of those may start to diminish as we move forward. But at the end of the day, is it fed led . When i Say Something instead, i dont mean to be harsh lets almost Say Something misread. I think what we misread constantly is the the u. S. Econy but this is an important thing to drill in on, because in order to make money in the future, you have to understand why we are here trading the levels we are in the present and one in the past helped trigger it ultimately it all goes back to the great recession. The credit crisis and banks. The fed stepped in the central bank pretty much work with banks and they save banks. And history will always move in the direction that they save the world. I would not agree with that, but counter factuals are difficult but the issue is this. What occurred then that crisis, that credibly liquidity crunch that emanated like giant waves throughout the globe really changed where all Central Banks and where economies were kalg calibrated it permanently changed the neutral rate and the fed was really late after 2011 and 12 to start to normalize rates. So fast forward, three eases, everybody says that is why i say it was the path of policy change, we were all expecting more tightening, ath path of tightenings. And that never happened. It isnt only the easing the fed helped make this mess, we shouldnt thank them for knowing where the broom is even though that they are doing a good job cleaning up at the end of the day, the u. S. Economy always bounces back be julia, back to you rick, thanks. When we can back, it is every influencers worth nightmare, getting rid of lice. Well break down how big brands are appearing for the change and as nasdaq hits 9 k, a look at the Top Performing stocks of the decade netflix up 3820 squausk squawk alley back after this with every attempt to free itself, it only becomes more entangled. Unaware that an exhilarating escape is just within reach. Defy the laws of human nature. At the season of audi sales event. Johnsbut were also a cancer fighting, hiv controlling, joint replacing, and depression relieving company. From the day youre born we never stop taking care of you. Facebook looking to expand collaborations with influencers. It offers a brand manager tool as part of the strategy to remove user facing likes from its instagram platform and help brands market and more effectively Work Together to reach consumers. But critics say it is another move to monopolize the industry. Rob perry is joining us now. His Company Works with dove, ocean spray among others you represent influencers and blif that facebook is trying to do your job for you. Well, that is the general sentiment of many experts in the influencer industry as well as most influencers but so explain how the changes that facebook has just made could impact influencers and their ability to monetize their fan base well, as Influencer Marketing has exploded in this decade, you know, it started back in 2010, i saw the opportunity when i founded my company, but it really around 2014, 2015, it really took off. And more and more it has been all about the data and the primary data metric that everyone cares about is engagement, 9 percentathe perce consumers that like or comment on your post and so facebook is experimenting with removing likes, maybe just showing that the users, just people posting how many people like their posts but not necessarily making that public thing tell me what your clients, your influencer clients and the your brand clients are saying about the changes that facebook is making so Facebook First brought up the hidden like issue. I want to say roughly nine months ago they started testing it in the National Markets and more recently, they started testing it domestically. And i think generally most of the influencer industry i know of myself, i defer to the Mental Health experts and so if they he say it is an you this of issue for the youth, then were behind facebook hiding likes and i think that most influencers feel that way as well but at the same time, parallel to that, there has been a heavy skepticism within the industry and a lot coming from the influencers that facebooks real play is to monopolize the data so if likes are hidden and only they can see the likes and only they can provide this critical roi metric, this Critical Data metric, then it will be a mon y monopoly of data and everybody will have to come to them. And then facebook announces a new iteration of their brand collaboration tool which looks like an attempt to grab a huge chunk of the influencer Market Industry and i wonder what categories are most reliant on that data. Is it apparel, beauty . That would be a natural i guess, but maybe media, maybe it involves the consumer electronics. Is there one that really depends on it the most no. Honestly, it is across the board. Engagement has been critical and it is across every industry. Automotive, fashion, beauty, gaming rob, thank you so much for joining us and we should note that cnbc has reached out to facebook for comment on some of robs thoughts here and the idea that instagram is looking to man on that lmonopolize that day that we have not heard back. Nasdaq has been the story of the morning. Frank holland is taking a look at some of the names that have gotten us there. Historic day obviously. Crossing the 9,000 mark a year and three months almost to the date after it crossed the 8,000 mark back in august of 2018. Were always talking about the faang stocks, but it has been chips and also consumer facing stocks that have pushed the tech heavy index from 8,000 to 9,000. And that includes amd, up 85 since the nasdaq crossed 8,000 lululemon, up 67 . And you are also seeing starbucks right there, up 67 since the nasdaq crossed the 8,000 mark today it is faang pushing it higher amazon up more than 3 , facebook excuse me, apple up more than a percent and a half but over this last year and three months, it has been again the tech stocks, chip stocks and consumer facing stocks that have pushed us past this benchmark. And we are on pace for a tenth consecutive record close well keep an eye on it. Back over to you yeah, apple 288, i mean i remember when 280 was the street high felt like it was just the other day. And it doubled this year since that low in early january. It is now a double so just seems to be obviously there is a year end upward drift in general and it is accruing to the benefit of apple for sure. And sbx magic numb is 3249 and change, that would give you the best annual return going back to 97. July i can julia, been great having you lets get to the half. Thank you very much. And welcome, even, to the halftime report. Im brian systnan sullivan in ft and the nasdaq in for its 10th record close and this is the halftime report. Stocks hitting new highs. Your next money move is straight ahead. Plus our traders are on the hunt for value. The names they are watching are coming up. Wel