Transcripts For CNBC Squawk Alley 20170515

Good morning morning. Welcome to squawk alley. Back at the desk on a monday morning. Governments and companies around the world working to contain the fallout from a global cyber attack that disrupted operations at factories, hospitals, and governments in 150 countries. C by the attack. Saying the attack should serve as a wakeup call for governments. Joining us this morning, aspen institutes isaacson. And now the chief Information Security officer at Cyber Security firm xtera. Good morning to you both. What was your first reaction upon hearing about this . It seemed like it was predictable. We saw in march with the publication of what were purported to be tools stolen from the nsa. It wasnt going to be long before cyber criminals took those tools. So were seeing something that is preventable but takes work to prevent. Its not enough to know about the threats that are out there. We have to do something about it. Did this have longer legs than you first expected . I didnt see that the impact would be this wide. And it shows the planning that went into this. This is an integrated multiphase attack. Its not just something someone threw out there. It was designed to maximize profits and impact. So were seeing something from a deliberate, organized, planning, strategic group. We have Health Inspectors for restaurants to make sure there are no rats crawling around. We knew this patch was out in march. Dop we need government regulators that check in at hospitals, Communications Providers and make sure theyve installed the patches that, say, microsoft has put out . I dont think thats workable. We have agencies already promulgating a number of burdensome rules that places need to follow. The problem is executing. Theres no way were going to have enough regulators to go around checking each of these systems. Its a matter of replace iing te strategies that we have now. In the past, we used to have Office Buildings with people inside and all of our infrastructure inside. It was easy to keep out the bad stuff. Now we have hybrid environments where we have data centers with part on premises. These infrastructures are harder to defend. We need a new way of thinking about it. There are some technologies out there that can be used. They need to be developed. They need to be deployed. And Enterprises Need to start thinking about a different approach like perimeter or some other approaches that we think are more effective. Were looking at some of the stock prices on the firms. Theyre soaring today. What stands out to you on this attack . What stands out to me is that were saying this over and over again week after week where there are hacks either by nonstate actors, criminal state actors. From sony to the russian hacks and the chinese hacks. And now this. What we have is a fundamentally insecure internet. And it didnt have to be that way and doesnt have to be that way. When the internet was created in the 1960s and then when tcpip protocols were created in the 70s, they were not designed to figure out where they were coming from. I think at a certain point when it gets to every week something thats undermining democracy costing huge sums of money, we need to find a way to say lets create a more secure base level architecture. People like jim clark who helped invent the first browsers created a secure socket layer. It tells the website what it is. If you could create and you could have a company that started creating more secure networks in a fundamental level, i think that would be the next big thing in huge stocks. Does that seem possible to you . Or is that the ultimate collection problem . Hes absolutely right. The fundamental flaws which authenticates after youve entered the network. There are technologies i mentioned Software Defined perimeter where you were authenticated. So we have the answers. Its a matter of deploying the answers to the enterprises. Its not easy to do, but it is possible. And its a matter of replacing some of the old architecture. If you think about it, the fire wall was introduced in 1994. Were in 2017. So trying to retool some of these old technologies to fit the new infrastructure is really the most expensive and difficult challenge out there. Some people are saying that this is an example of why government shouldnt stockpile these vulnerabilities because, you know, the nsa did it and then it got out. Maybe this is why we cant trust the federal government with ios source code which is one of the solutions the government was looking for to get into, say, a terrorist phone. Give us the source code to the iphone then we can figure out how to get into these things. What if that got out . Then everyone with an iphone would be vulnerable, right . Definitely. I think its very dangerous to have these source codes come out. But as youre saying, its a complex problem. We just watched on your network the north korean missile. Most of those have fizzled. Why . I suspect its because, you know, we were able to do Cyber Attacks on north korea. But youre right. I worry about the fact that the Government Holding the secret keys to everything, nothing stays secret this day and age. Good point. Right. So if this was stolen, leo, from the nsa which microsoft says it was, what else does the nsa have . How many types of things are there, these malwares . Its an extraordinarily troublesome concept to think the weapons made by the nsa can make it into the wild and attack infrastructure. This is something the nsa has to look at internally to address the potential Insider Threat in its own networks. But it hasnt been proven. However, the thought of it needs attention. I think we need congress to really take a look at it. One last question for you, walter. You walk in on a monday, see all these cyber stocks higher. The etf having its best day of the year. Whats your impression when you see that . Too little too late . Definitely too little too late. One thing, i was at a graduation this weekend with robert gates the former cia and defense director. He said we need internationally a new geneva convention, something microsoft said as well. In which we know how to deal with the question of nuclear proliferation. Not only perfect at a it but we have a General International agreement. We do not have that in the cyber realm. Nor do we know how to react in the cyber realm. Well said, walter. Hopefully we can get there in some way. Its good to have you two gentlemen together. Thank you. Thank you. Do want to check in on the markets. The nasdaq and the s p are both hitting record highs this morning. In fact, the s p is half a percent higher. Thats more than it lost last week. Starting to see these moves getting a little bit bigger. Helping drive the nasdaq higher, cisco upgraded to overweight seeing its best day since february. In fact, its Goldman Sachs and j j. Shares of tesla under pressure. Downgraded to overweight citing growing competition from Companies Like apple. Also one of the most noted bulls on tesla. When we return, in the wake of the cyber attack over the weekend, how social lending giant is keeping data safe. And tracking amazon 20 years since becoming a publicly traded company. Where jeff bezos might take it next. And the battle of a. I. When squawk continues in a moment. Finding time to get things done isnt easy. But weve got the Digital Tools to help. Now with xfinitys my account, you can figure things out easily, so you wont even have to call us. Change your wifi password to something you can actually remember, instantly. Add that premium channel, and watch the show everyones talking about, tonight. And the bill you need to pay . Do it in seconds. Because we should fit into your life, not the other way around. Go to xfinity. Com myaccount well, this weekends massive cyber attack has companies focusing on how they protect user data. Joining us now is Joanne Bradford the coo of sofi. Welcome. Nice to see you. Thank you. Good morning. Good morning. So as a company that does lending and wealth management, you have a ton of peoples sensitive financial data. How do you protect that in an age where were seeing attacks like this one today and this weekend . Yeah, well, we do a couple of products. We have student loan refinancing, personal loans, mortgages, and investment accounts. So we have lots of information. We monitor all the time. We have in place measures, extra authentication for consumers. And have not had any issues to date. So we hope we can keep it that way Going Forward. Generally the whole industry is built around more online lending and online finance. Is it more or less vulnerable than traditional banking . Well, we think that were less vulnerable because we actually have just one control point. The only place you come to sofi. Com is one place. We dont have branches which make it less points of vulnerability. But really for the consumer its more about speed and ease of use and getting things done quickly on your mobile device, et cetera. So we feel good that we have a point of entry for the consumer. I think you guys at sofi made it clear you dont want to be a bank. But you recently acquired zen banks which will give you the capability to offer checking, savings, more credit cardlike services. Where is that headed beyond the type of service you already offer . Yeah. Our goal is to make everything easy for consumers. Our consumers care about a couple of things. Their careers with their relationships, and their money. Your money is something you want to use every single day. So we will get to a place where we can take deposits. Were pursuing a couple different avenues right now. But eventually we will be able to take deposits. You need somewhere to put your paycheck and get your money from. Well have that eventually. Well be the first unbank bank. Yeah. Im curious what youre seeing in the Mortgage Business which is a sort of new area for you. And who your target audience is for that. Mortgage is 10 down and you can do everything online. Our consumers really like that. They find its easier to do it, they call it Customer Service folks. As well as mort ganls. And mostly ease of use, competitive rates. Services and benefits we offer. We know that your career is the financial engine of everything that you do and your salary drives it. Youre talking about the record highs in the dow. I dont know if the people in those companies have record salaries now, but were going to start to help them this week think about asking for raises because most people dont. When you get a raise, you can buy a better house or when you refi a house, you can put money towards doing something you want to do in your life. Yeah. Wage growth obviously something we keep our eye on closely. Joanne, a lot of people believe loan growth in general at any kind of from any kind of Financial Institution is beginning to roll over. That were in this late cycle economic stage, savings rate is bumping up a bit. Is that born out in your data . Well, you know, we created this refi several years back. You know, Student Loan Debt and refiing it is a big business for us. Personal loans have many use cases. Home improvement, credit card consolidation, all those thunin. Weve doubled our business. We had our record quarter last quarter which was Pretty Amazing for us. And so our Mortgage Business is on a tear. And our Investment Business is growing quickly. We do it differently. You dont have to go into a brampbl. You can come right online and get to it. We offer different benefits. We dont see an impediment to growth for a long time. Well be happy to take your loans from all those folks that want to make you go in and stand in line. Any update on the ipo plans . We have no update at this point in time. There is one thing that you guys do differently also is you have these mixers in new york, l. A. , and san francisco. You dont have branches, but you help your members meet each other and date. What is the purpose beyond behind that and what kind of a cost is that going to be Going Forward . So tomorrow night well be holding an event in new york city where well have 400 people talking about how to get a raise meeting each other, having drinks. What people really care about are networking, meeting people that are like them that have the same kind of career ambition. And were really focused on doing those all over the country. Its a pretty low cost expense. And what we get from it are large referrals, great word of mouth, and a real understanding of our customer set. Well do raise week in eight cities this week and teach people how the to get raises. Give them tips because most people. Net ask. Its the financial engine to your career. And about your career, relationships, and money. It all goes together. I dont think any Financial Institution really approaches it that way. Joanne, thank you for joining us to talk about the moves youre making. Joanne bradford is the coo of sofi. Thank you so much. Have a good day. Dows up 85. Lets get to seema mody for a flash. Zcitron research has taken a short position. Exact sciences. New Research Report says the stock will be cut in half saying it is pushing a cancer test that is inferior but its own admission and loses money doing it. We reached out to the company for a comment. Andrew left will be a guest on Halftime Report at noon eastern. Crude hovering right around 50 a barrel. The impact of opecs latest move next. And then taking on alexa. Apples latest bet on Artificial Intelligence. Squawk alley is back after this. Nd just by playing air guitar. The babys room wont build itself. And her paw wont heal on its own. Were allng forward to something. Synchrony financial can help your customers make it happen sooner. So she can plug into her dreams. And theyll have a new addition for their new addition. Whatever youre working forward to, even if its chasing squirrels, Synchrony Financial can help you get there. Apple acquiring Artificial Intelligence lattice. Io. They use technology to turn dark data like raw text and imannals into usable information. Apple says they do not discuss the purpose or plans. A lot of people wanted to read into this. Hard to do on the small deals. Its hard to do because this is at the intersection of so much of where technology is right now. Trying to take raw info from the real world whether in a camera from your car or in a picture of a map that apple or google flew over a city and turn that into something searchable that you can ask alexa or siri about. I think it also speaks to the broader trend we talk about every day. Which is the fight is on. Amazon, microsoft, siri, versus watson versus alphabet to build up their a. I. Teams as big as they can be. Theres still this fight for the consumer product. Amazon seems to be ahead for now. Clearly theirs works more at each company. Intel is investing more to understand for driverless car data and those sorts of things. How to get this data in the real world to the computer in a way that we can do something with it. When we come back, much more on that massive cyber attack. Cyber stocks are surging this morning in reaction. Plus it has certainly been a wild ride. Amazon marking 20 years as a publicly traded company. Whats in store for bezos and company next . I love how usaa gives me the peace of mind and the security just like the marines did. At one point, i did change to a Different Company with car insurance, and i was not happy with the Customer Service. We have switched back over and we feel like were back home now. The process through usaa is so effortless, that you feel like youre a part of the family. I love that i can pass the membership to my children, and that they can be protected. Were the williams family, and were usaa members for life. Call usaa today to talk about your insurance needs. Good morning once again, everybody. Im sue herrera. Heres your cnbc news update at this hour. Venezuelas opposition is blocking the main streets of caracas and other cities in protest against the government of president maduro. At least 38 people have been killed during the unrest. Frances newly announced Prime Minister Eduardo Philippe has moved into his new offices meeting with his previous occupant. Earlier marcone appointed to bring in new faces. A conservative candidate dropped out of irans president ial election to back a hardliner narrowing the field of those hoping to outseat rouhani. And we end on a sad note. Former chairman and ceo of viacoms Paramount Pictures brad grey died of cancer last night in his home in california. He was a top deputy and confidant of sumner redstone. He was 59 years old. Thats the news update this hour. Back downtown to squawk alley. Carl, back to you. All right. Sue, thank you very much. Cyber stocks as you probably know by now surging in the wake attack. New targets are being reported today in korea, japan, and taiwan. More than 200,000 computers already impacted across at least 150 countries. Big concern here has been that these numbers would only increase as people return to work today and new variance of this malware comes online. Take a look at fireeye, syman c symantec. Others include fedex and renault. Cyber Security Firm avas says the ransom note looks like this. Oops your important files are encrypted. You will not be able to access them anymore until decrypted. It used in old versions of microsoft as an offensive cyber weapon. Chief legal officer saying this attack provides yet another example of why the stockpiling of vulnerabilities by governments is such a problem. Russias Vladimir Putin also weighing in. Pinning the blame on the u. S. For this attack. Saying to the media in beijing, malware created by intelligence agencies can backfire on its creators. Guys, back to you. All right. Thank you, josh lipton. Joining us now for more, roger mcnamee. Welcome, rog ferroger. Good to be. But tough day, huh . It seems unlikely governments are going to stop stockpiling cyber tools, cyber weapons. It seems like the nuclear arms race. But what should we expect to happen from here . I mean, i think its kind of mind blowing that this got out there. Jon, i think thats exactly the point. Its not like this was a new kind of hat. People have been doing ransom ware hacks of this kind for ten years. The bitcoina agngle and the low ransom price allowed them to scale it globally to the thing were seeing right now. There are unintended consequences of technology we never used to experience that are now happening at huge scales. This is not the only kind of one were going to see. And the question is who is responsible when one of these things happens . And you look at this and theres blame to go around. And the thing that troubles me is that the industry in general has historically been so optimistic. Its said, hey, none of the consequences of what we do are going to be that big a deal. Well fix them and move on. The realities now are getting these places where theres huge Economic Cost and health cost to people if the hospitals. So i do think we need to have a conversation and not just about these kind of hack. Also joining us, former fbi agent in charge for cyber. Now head of the Cyber Defense practice for k2 intelligence. Welcome, austin. Who do you think has released these nsa tools into the wild and why . Do we get any sense from how this is spread and the impact . Its hard to say right now. I know Law Enforcement and Intelligence Community worldwide are looking hard to find out whos responsible. But i think the most important piece is to understand really why this has been so successful and so widespread. And it boils down to the fact that organizations are still not doing the basic security hygiene thats necessary to prevent the widespread of attacks. Is it that simple, roger . If you just brush your teeth, you wont get cavities . To be clear, the architecture of windows is at least a portion of the problem. Because windows came into the world where there was a huge base of applications for future generations of operating systems. In order to make that stuff work with it, they had to be open with other platforms. Apples operating system and ios are structuring in a way such the applications are more segregated. Its harder to do this kind of hack on an apple platform. There are other hacks you can do on apple. End of the day, i go, there are clearly things consumers must do to protect themselves. But i would like to have the conversation and not just here. I would like to see it also developing around google and facebook relative to the economy and all the costs, if you will, that come from getting people addicted to their smart phones and apps and doing that 24 by 7. Fireeye up 9 now. Also proof point up 9 . Is that what youre talking about . They need to buy more of these kind of deafens rain shower theyre not doing basic updebts when it comes to business . No, i think its still the layered approach. Technology is not the only answer. Were still seeing, you know, Health Care Organizations over in europe still using windows xp operating system. You know, microsoft had to do a kind of emergency patch to push out for these types of environments. Patching in Large Networks has always been a problem and timeliness of pushing out those patches. But were still looking at layered approaches. Meaning the proper technology, the building the proper wall around your organization. But educating your employees. Making sure theyre not clicking on spear fishing emails and making sure theres proper segmentation and control of privileges inside the organization. Its a layered approach. Right. Austin, i just i wonder short of government regulation, how do you force people to be better at that sort of thing . Any idea quickly . I dont think we should have to force organizations. Heres a perfect example. You wake up in the morning, come into your system on monday morning. And youre completely locked out. Its financial. Right. You shouldnt, but then when you want to go to the hospital and the hospital is infected, if you have to, i dont know. Austin, thanks for joining us. My pleasure. Also today roger while weve got you, amazon is celebrating 20 years as a publicly traded company. Now the fourth most valuable u. S. Company. What a long, strange trip it has been. What is most remarkable to you about this. It was about books when they started out. Then they seem to take othver a of retail. Now its cloud. Whats the lesson . I was part of Kleiner Perkins when jeff bezos made the first pitch. It was all books. And you just think about how far theyve come. I look at Amazon Web Services as the single most compelling, if you will, startup thats been going on in tech over the last ten years. And the notion that a company that began as a retailer, the most important infrastructure player for the industry as a whole is astonishing. I think amazon has a lot of good days to look forward to. Eventually they get to repeat the strategy microsoft did with windows where it went from operating systems into applications. Amazon is hosting all the best applications. How long would it take them to go from zero to number one in email, for example . Or how long would it take them if they decided to make security a really, really, really important element of what theyre doing . I think they could replace microsoft in a lot of these applications. So this isnt the end for them. You think they could destroy rivals at will . Absolutely. Theres no constraints today. No trust. Theres absolutely nothing to stop them. A lot of people are talking about the dominance in amazon right now and some of its business. Tremendous market share its captured whether its shopping or cloud. But as a stock, it hasnt always been so beloved. This is a company that did not prioritize making profits and still has started making profits but not so much so. Given analysts a lot to be confused about. How did they convince investors . If you look at the thing youre talking about, theyve got to be convinced right now. The fourth largest character. A in the world. But there are times when its i dont confusing. Even though ive been there from the beginning, ive been totally confused. But you look at it today and the simple explanations are the ones. They are changing the way retail works globally. And they are changing the way the cloud works globally. Those are two great places to be. Theyre counterintuitive in a dangerous way. Back 15 years ago, conventional wisdom was microsoft beat apple because they were light and they were all software. Around the same reason. If might it not be a big stumble. That is clearly what the fall yur mode is which sprites me, jon, is that eventually theyre going to be such a large prk of it the only guy on the other side is going to be amazon. And in that things, the one who is all of the demand side has power. If youre wondering what the limit function is on googles model, its to be able to say i like that price but im going to put two zeros in before the integer fall and well cut the price by 99 . And they will have that power eventually. What could go wrong . If they stumble, who knows. But if they dont. What could go wrong . Clearly if something happened inside the web services, that would be it for the stocks. If the customer suddenly had a lot of failures, people hacking in there and that would be a disaster. And i think that their Business Model can be under all the because i think eventually well have more regulation relative to employees. They have a lot of employees. Right . Like anybody with lots and lots of employees. That makes them heavier with most tech businesses. Because i think those are the things. I dont think they have any issues relative to retail per se other than regulation. And in aws they have all the issues other big guys have in that space. So far theyve weathered them with very few bumps. So we dont see thas the set. See you soon. Europes going to have a decent close here. Lets get to seema mody. Thats right. Take a look at the picture behind me. Markets making historic moves in europe with the german dax and london ftse hitting alltime highs. Take a look at the minors getting a lift after xi jingping over the weekend there will be more than 100 billion in financing to support chinas infrastructure mother agreed to back that extension of a Production Cut into the First Quarter of 2018. All seeing gains of 1 or so. Later today in berlin, german chancell chancellor. Macrons selection offers the opportunity to bring dinetism to the development. The meeting comes one day after the party that Regional Election victories in germany wont necessarily translate into merkel winning a fourth term in the fall. So stay tuned. Yeah. More european elections to put on the calendar. Thank you. Coming up, shares of trivago taking off. Well talk to the companys ceo. But first rick santelli, what are you watching today . You know, im watching how the markets continue to deal with ongoing crisis issues. I had bill isaacs on, former fdic chair today talking about governmentsponsored enterprises. They might be stabilized, but a whole new promise has arisen. Thats what were going to talk about after the break. Coming up today on the Halftime Report what now. Are the stocks just getting too expensive to buy . And one of teslas most followed wall street analysts makes a big move today. He downgraded the stock. And citrons andrew left is with us. That stock tanking this hour. Carl, well see you in a bit. All right, scott. Thanks. Lets get to the Santelli Exchange with rick. Hey, rick. Hi, carl. You know, as i look at the markets, the obvious story for 2017 is theres a lot of things to look at that arent right. But one thing we can look at that doesnt make sense to everybody that seems all right are the markets. The markets are rangish, but theyre Holding Gains at least in terms of equities, rates . Theyre not at the highest of the year. But they were higher than they were five or six months ago. And theyre significantly higher than we were about a year ago. So what exactly is going on . Many call whats going on in government both domestic and global this kind of gridlock. But it isnt gridlock. Its kind of 3d gridlock. Yes, there are plenty of problems that need addressing. Very fewi getting solved. But the notion those in power wont get much work with what they end up on their plate seems to be a condition or a set of conditions that the market can live with. So lets look at crisis management. You know, stabilizing versus actually solving problems. As we talked about this morning, when we had the crisis, the first thing that needed to be addressed was the factory that processed many of the ingredients that baked the crisis cake. The governmentsponsored enterprises. Freddie, fannie in particular. Now, the crisis occurred. They were stabilized. Then they were neglected. Then a whole new landscape popped up. And then a new set of problems arose. And put an asterisk and the old problems never went away. Now, if you think about the gses thats the way bill isaac talked about it. In 2008 there was a conservatorship. 2010, a whole new set of rules came about. A new landscape. With that new landscape came a lot of problems. Money that was generated by the governmentsponsored enterprises in conservatorship. Remember, never really restructured. They were stable iessed. Then the bounce occurred. Part two, the new landscape. There was money. It was grabbed. The new landscape is now they need money, the treasury spent the money, and not necessarily on anything that had to do with housing. Now we have two sets of problems. But whether its government sponsored enterprises, cyber threats, Cyber Attacks, espionage, isnt it the same . The original problem is the russians seem to be breaking in and hacking into various forms of our government especially in election year. Yeah. Now the whole new landscape makes it all about politics and president s. Do people in areas of our government feel safer . Problem not solved. That problem exists and the new landscape comes with it. I dont know how this ends up but whether its deficits and entitlement reform, seems like everything we elect officials to do falls into this category. Back to you. Tied a lot of threats together there, rick. Thank you. Still to come, the ceo of trivago. The stock getting a big boost. More than 13 this morning. Overall markets s p and nasdaq in record territory. Dow up 72 points. Well be right back. Finding time to get things done isnt easy. But weve got the Digital Tools to help. Now with xfinitys my account, you can figure things out easily, so you wont even have to call us. Change your wifi password to something you can actually remember, instantly. Add that premium channel, and watch the show everyones talking about, tonight. And the bill you need to pay . Do it in seconds. Because we should fit into your life, not the other way around. Go to xfinity. Com myaccount stocks coming off their highs of the session. Dows up 70, but youre looking at one of the best, in fact, the best gain of the month so far. S p and nasdaq hit a record high. Talk more about that and what it might mean for this afternoon in a moment. H us when a fire destroyed the living room. We were able to replace everything in it. Liberty did what . Liberty mutual paid to replace all of our property that was damaged. And we didnt have to touch our savings. Yeah, our insurance wont do that. Well, there goes my boat. You can leave worry behind when liberty stands with you™. Liberty stands with you™ Liberty Mutual insurance zblinchts the stock seeing a boost b on the heefls a strong First Quarter report. If ceo joins us this morning from dus l dofr. Ever since the ipo, seems like consu consumers wlingness to pay for travel has gotten stronger. The fe now is long that lasts. So, see, i believe that theres a strong trend for traveling any way. That might be disrupted, maybe in between, but in the long run, theres a strong travel. Because if youre looking at what people pay for it right now, for what that do they spend their match up, you see a lot of products, actually, that will get cheaper over time. So i think people will not spend so much of their money for pruktds anymore. And they will spend it for experiences. So i see the trends to travel unbroken and it will go on for the next you know, decades. One of the things people mentioned first about now is the amount of money spent on marketing. The return on the saad spend. How long does that last . Do you have to be more aggressive if thats possible . See, you know, for us, its all a data game. We want to learn peopto get peo into the ideal hotel. Whatever is necessary for that, we will try to get that. So, its not only about you know, more revenue in the short run. Its also gamather ingathering and being able to get everyone into their ideal hotel. So thats why its important for us to stay aggressive frk. We said we want to be profit a e profitable. If theres any company that i would think could make a case to do social advertising, search advertising, it would be you gois. Its travel, yob line and yet, i see your commercials on tv all the time not that im complaining. What is it that you get over tv still that you cant get thro h digital . See, i think tv is just a enormous channel, right, with an enormous reach. Still, within enormous reach. I think that people still have not figured out how to use it and what weve done different is that we do it like we do performance marketing, tv markets and i think thats what we do different. We try to do it continuously and we do tv markets like others do performance marketing. I think thats what it makes a difference for us and we see lots of potential to grow into tv, build up our brand to see this long lasting effects. We are able in the last couple of year to build up our brand, a very strong brand, nearly without any additional investment. So we have not taken up any money in the last eight years or so. We may to the work as the performance channel. Its youre not the only one advertising on tv. Its such a competitive industry. Expedia, which is a big shareholder, has a number of brands. Price line, these companies are getting bigger. How are you posting 68 Revenue Growth in that competitive environment . What kind of data are you get something. See, this environment was competitive even in ten years ago, so when we went in ten years ago and had very small, you know, growing on a very small base, people were saying hey, how can you grow, this is a super competitive market. I dont think its super competitive. Its more in the performance channels, but on tv, i think not so many people really approach it the way we approach it and i think that will change. But we will keep on learning, keep on improving. And so you know, i think we will, we might be able to keep our you know, our position for a couple of more years and i dont see so many tapping into the same ideas that we have there. And if youre looking at travel by sector, in other words, airline, hotel, cruise, how would you put those on a ladder, on some spectrum . Where is the growth the strongest right now . So, i think when youre looking at like the Offline Online conversion, then there is still enough head room for hotels. So, right now, and i think thats something we cant imagine because we dont use this way, but only onethird of all Hotel Bookings is right now happening online. So theres thirds still not happening online, so thats an Enormous Growth potential for the hotel market, so i would think there is the highest growth possibility, because monmost is coming from offline versus online conversion. You dont have that so strong in like sports for in rental cars and i think thats really good for us because we are focusing so much on hotels and we just want to create an amazing product just in hotels. And maybe we were lucky, had a good foresight couple of years ago. Paying off. Thats for sure. Appreciate your time. Thank you for squhojoining us o quarter. The ce of of trivago. Good looking stock. Another story today, the selfdriving car unit has signed a deal with lyft. Calling for the two companies to Work Together to advance technology. Interesting timing. Especially as waymo has sued ub ber for stealing trade secrets. And guy, perhaps thats the big take away here. This is just a blow and slap in the face to uber from both of its big competitors and adversaries. And google, as investor in uber, lots of shifting loyalties and unclear when the selfdriving thing becomes a real revenue and profit general rart. This gives you a window to the fact theyre thinking of using it for these ride sharing companies. You wonder how its going to transform. All u 11 sectors are hire. Cisco, we get earnings later in the week along with other names in the retail space. Back to the judge at hq. Welcome to the Halftime Report. Im scott wapner. Our top strtrade this hour, up, and rayway way, why tech keeps rallying to new record highs. With us today, joe, josh, steve, pete. Begin with the nasdaq rallying today. Serm names hitting new highs today. Pete, apple, amazon, netflix, adobe, sales force, all hitting new highs today. Weve been talking about how the Technology Space as well as some of the other sector,