Responsibili responsibility we see it every day now with every data breach, every privacy violation. Every blind eye turned to hate speech fake news poisoning our National Conversation the faults miracles in exchange for a single drop of your blood. Joining us to discuss this morning, ricos editor at large, cnbc contributor, kara swisher, fresh off of code con last week great to have you back im glad to be here we were discussing offcamera how the evolution of cooks rhetoric began in an interview you did with him a long time ago. We were doing an interview for nbc and i asked him what he would do if he was Mark Zuckerberg and he would say, i wouldnt be in this situation, and went on from there, talking about privacy. Which is a good thing for apple to talk about. Its good on lots of levels, a marketing thing, its what theyre like theyve made commercials about it since and this is him continuing to talk about that topic. Hes been ratcheting up over time, which has been irritating a lot of people in Silicon Valley, largely because they have no, i dont know what they dont have any defense, and yet theyre aggrieved that hes mentioning these things. And im sure theyre furious today. This seems like a big jump for him. A couple of turns of phrase especially jumped out to me. This industry. Hes not pointing to just social media. He says, this industry and then he says, every day, theres a headline right, right. These are the things that people who are accused of being antitech are saying and now its tim cook saying it. Tim cook is the most antitech tech executive, right . I think theyre its both a good thing for apple to talk about this, and at the same time i think he genuinely cares about it this is an issue i hate to say adults care about, but whats interesting is, you know ive been on this for a while. Its the same thing, the chaos, the amplification, the weaponization. And i think anybody who has any sense of like, theres a problem here, has to Say Something and i think hes one of those people i think whats happened is a lot of tech people on the other hand, let me just say, if you think they care, youre wrong. They still are not getting the message. They still dont care. A lot of the major executives in Silicon Valley, including people on boards, are just like, why you bothering us this is ridiculous this is pc this is its just they exhaust me with their lack of ability to take responsibility because they care about what instead . Money, i guess. I dont know i dont think its money, because theyre so rich. Inu i use that expression, youre so poor, all you care about is money. And they say, well do things until its not legal and thats very different from this is probably bad and probably problematic rather than, well do it until you pass a law. Even the code, the instagram guys and facebook guys were sort of arguing, well, this apple thing that youre doing to sign in with apple, i dont know if developers are going to want it. It was more of a question of, are developers going to want it than, was it the right thing for the users. And apple is forcing developers to take it if youre signing in with anything else, like google or facebook. This is an ethically challenged kind of thing that they dont want tyke responsibility for the benefits. They would like to point to the benefits that we get, but we get great benefits from tech its that they have to start thinking harder about these things and they find it more of a, are you going to lecture us again, tara, or, tim is such a scold. Ive heard that said about tim cook and hes not saying anything like any normal adult wouldnt say, you cant eat all the sugar and not end up an insane position i know they can be, in talks about humanity, what solution is he providing other than buy apple. And apple has done a lot of things that they have problems with and to be fair, they have tried to correct some of the stuff that theyve done. But nobody who is a Corporate Citizen is free from their own issues and so thats what makes it hard so who is someone thats going to fix this, if not the people within and at the same time, some of the people within, they all have different quandaries that they have and i would agree with you, its in their best interests to push this but this year, for the first time, i feel like apple is not just adding privacy features, as sort of like a nice to have on the back end differentiated privacy. Im using the wrong term differentiated i forget how tim cook and fred rici put it. But theyre upping the an te an daring the industry to care. Thats the question, do users care and should user s have to care your water, you assume, is clear, unless you live in flynt, michigan you assume a lot of things you shouldnt have to go out and do for yourself with lots of things the question is, is the government going to step in . Thats who really is responsible for this kind of stuff so i think he is like a lot of people are saying, this needs to be regulated and by the way, these people need to think twice about what theyre doing. But i think thats a lost cause. When i listen to some of them after all of this, theyre still astonishingly whiney and victimized i just literally have never seen the worlds richest people feel like victims they obviously do it in private. No ones saying that in public i get texts and emails they dont like any of it. Like, oh, youre such a bummer if i hear the word bummer about myself one more time dont your kids say that to you . No, my kids are more adult than some of these people. Theyll be like, i dont want to thats different meantime, several Companies Hit narcotic last week including cloud strike and fiver and chewie beyond meat is still getting a lot of attention that stock is up 500 . The wave continues with slacks direct listing and David Solomon was at code last week and talked about how hes valuing some of these growth names take a listen. I dont think were looking at equity market valuations for tech that look like what we saw in 1999, 2000, 2001. I do think, because of the massive amount of Monetary Policy around the world and the fact that basically Interest Rates are zero, or the riskfree rate is zero, less than zero in some places, people have been looking aggressively or moving out the risk curve and looking for risk assets. And people have been willing to pay a lot for growth and in that context, i think there are a number of technology companies, were talking about that in the context of being here at the code conference, where people are really paying a lot for the future prospects some of of the these businesses. You think about this . What these ipos would look like if the world werent being challenged in a lot of different ways i think thats what happened, a lot of these Companies Went to the moon now the company is looking at the bottom line of a lot of these things so at slack, its a great company, but a very small amount of people account for a lot of its revenue, problematic theyve got losses theyve got challenges and so i think people are, you know, putting just putting a lot more scrutiny on these companies. A couple of these ipos left me sclaratching my head for a particular reason. Zoom has just gone to the moon and i was talking to the founder and ceo, he was a little nervous about how much how highly it had been valued, even where it priced i mean, he must be, you know he must be changing his underwear often now. And then chewey back on friday, here this company is, that was bought by a brick and mortar retailer and is now worth more than the private company that owns it. The street is ascribing valuations to some of these things the fake meat. Is that what yeah, beyond meat, too. Where it prices versus where it trades, something seems to be yeah, i think a lot of people are liking these Silicon Valley companies as a group and in this case, slack doesnt have to go on a road show to discuss it so im sure Stewart Butterfield loves that but i think people will be looking at this and judging some of these companies quite fairly. Like, whats the risk here whats the risktoreward ratio. I always thought slack would get boug bought i still do do you think this week or after its publicly traded i dont know, like, it belongs with microsoft and belongs with google, i guess you know, theres a bunch of companies it could belong with with after Google Looker and salesforce tableau, do you sense that m ,a spirits are starting t really boil . I do. I do it depends how this goes out i may also be the people who run slack. Stewart may want to run the company. Its a challenging environment for him to move to the next level. The standoff theyuff theyve d amazing. That was another company that was dead and i love slack. Its a great product but its a lot of things ubers a great product, but theres economic issues. I was surprised, maybe not surprised, struck at code how few times snap and snapchat got mentioned. I think it maybe got one mention by mary meeker and otherwise it was like it never existed. Well, thank you, facebook i dont know what to say i think theyre doing pretty well theyre sort of getting their stride a little bit more they have a big presence in cannes he usually does go to yeah, he has this very creative, theyre doing with alex israel, an artist, you know, i dont knock them out ef. Like, twitter and they are doing okay building their businesses but i think its a very kraft product and my kids use it continually still. Has do mine have not shifted. And the stocks up 150 i feel like hes a creative guy who makes great stuff. Hes got to get the business in line and has executives and no reason that cant do fine. I like seeing you every few days can we do that do you miss me . And the traders love you here, too. Ill be in london, next week. No, ill be in paris all right zbl ill have a croissant thank you coming up, Companies Pushing back the Trump Administration is saying its perfect ll lly happy slapping further tariffs on china if no deal is reached. Well go down to d. C. Where hundreds of companies both large and small are weighing in. Squawk alley will be right back how much more can we possibly absorb . And i think the general rule is, its going to have to be shared. Its going to have to be shared either through some of the manufacturers and our suppliers in china its going to have to be shared amongst all of us that have all of these small Family Businesses and some of it is going to have to be passed on. Moving is hard. No kidding. But moving your internet and tv . Thats easy. Easy . easy . Easy. Because now xfinity lets you transfer your Service Online in just about a minute with a few simple steps. Really . Really. That was easy. Yup. Plus, with twohour appointment windows, its all on your schedule. Awesome. Now all you have to do is move. That thing. [ sigh ] introducing an easier way to move with xfinity. Its just another way were working to make your life simple, easy, awesome. Go to xfinity. Com moving to get started. The United States trade Representative Holding public hearings on the proposed 300 billion in china tariffs our Kayla Tausche joins us with a look at whats ahead kayla . Reporter hey, john, executives from best buy, roku, and the Semiconductor Industry will be among the hundreds of witnesses in seven days of hearings, more than 50 hours of testimony, describing what the new 25 tariffs on the remaining 300 billion in chinese imports would do for their businesses. The lions share of those businesses are expected to argue against these tariffs or for their products to be exempted if these tariffs go forward this last round of tariffs is expected to his businesss bottom lines and main street much harder than the previous rounds last month, Steven Mnuchin told ko congress, quote, the way the tariffs were designed, the last tranche was really the consumer issue. We are monitoring the situation carefully and there will be some exceptions, end quote. Lisa trofe says if tariffs goes forward on babies products, it would not only hurt price, but hurt quality we believe that Baby Products are integral to the safety of raising healthy American Families and these tariffs are taxes on American Families and american businesses. And we believe that the businesses and families should not be subject to a trade war. Reporter after the hearings conclude, the Administration Must allow at least seven days for followup comments before putting these tariffs in place that means july 2nd is the earliest that President Trump could act by law, even though he says theres no deadline john kayla, thank you. Now, for more on the impact of tariffs on big tech, we are joined by evercore tech analyst, kevin rippey thanks for having me. Good to see you huawei is quantifying the impact its seeing to some of these moves, 30 billion in seefrvera years. Is the street factoring in the downstream effects of that because thats some billions of dollars, of course, worth of components that theyre not going to be buying if theyre not making those sales i think the huawei question is interesting as far as the Big Internet Companies go, the facebooks, the googles of the world, i think thats probably less of a concern. What were really talking about is consumer internet, right . And whether the handset manufacturers face some incremental headwinds, thats an open question. But for the facebooks, googles, amazons of the world, they should be relatively insulated from those kinds of issues lets talk about alphabet i believe a couple of weeks ago, you cut your price target on alphabet, googles parent from 1250 to 1200 on antitrust that still suggests a 9 roughly upside from here thats really all the cut you want not so big a deal . Its a good question. You know, i think one of the key points to keep in mind is if were thinking about google, alphabet on a sum of total parts basis, you have search in excess of 70 to perhaps 75 of the value. If we think through where we think alphabets most exposed to antitrust, we actually think search should be okay. And we think through the 2011 to 2013 ftc investigation, which largely gave them a clean bill of health. Where we think there could be exposure in actually the Android Play Store a smaller business, but one thats fairly visible o, you know, certainly consumers. So from that standpoint, we think, you know, that could see compression. You know, the app store take rates. Thats about 5 of the value of alphabet so i think investors should be, you know, wary of that but not overly concerned and i think that informed the 1250 to 1200 price cut. In apparel, were seeing hard evidence of supply chain migration into countries outside of china intoation but ive seen conflicting evidence when it comes to chips. Some argue that were not seeing the capacity editions in other countries that would suggest theyre getting ready to absorb exchina manufacturing is that your view . Well, i think there will be all sorts of dynamics that play out as it relates to the migration of labor what i would be primarily focused on with respect to the u. S. Internet companies however is, are we going to be able to maintain the same smartphone ecosystem. And the answer there seems very clearly yes. When youre looking at the trends that are determining the ability of some of these Internet Companies and Consumer Companies to continue momentum, what are you looking at . Say, amazon wise, and google wise, facebook wise, throughout this year, is it just general traffic trends, the health of the consumer yeah, the health of the consumer is really number one, two, and three, right . If we think through amazon skan ecommerce, largely entirely consumer driven. And by way of that, online advertising. So the consumer and the broader trends there are what were really focused on. A lot of the bigpicture shifts, those have already occurred. We need to see real organic growth in Consumer Spending and those sorts of things. When are you going to see the first hints of danger or lack thereof for netflix, as were looking for a number of Premium Content Services to launch at the back end of this year. Apples got appletv plus, disney, of course, has disney plus is it going to be early next year before we see those effects . Or are there earlier signs i think the markets doing a pretty good job pricing that in, actually, right now. We put out some data checks last week that pointed to perhaps actually some Slower Growth for netflix subscribers here in the 2q and i think, you know, as investors worry a little bit about the disney plus rollout, that will be something that gets priced into the stock. We take the view, unfortunately, is that those really arent very close substitutes. The netflix content and the disney content dont overlap in such a way where we think investors should be overly concerned that one is going to cannibalize the other. But netflix has traded largely sideways over the better part of a year, year and a half. And we think some of those anxieties are well reflected in the current stock price. Just got to wonder if it ever comes down to people having to budget their streaming dollars, whats going to be the must have perhaps, eventually, we will see. Kevin, thanks for being with us. Of course thank when we come back, the big busy behind baby shark. Were going to break down the numbers from that obviously catchy tune, as we go to break, take a look at shares. Trimming their forecast for iphone shipments today back above 194 dow is up 68 session highs. Back in a munn b man stand up if you are a First Generation College student. Stand up if youre a mother. If you are actively deployed, a veteran, or youre in a military family, please stand. The world in which we live equally distributes talent. But i