Patagonia, rei and north face. Theyre calling on advertisers to boycott facebook through july for allowing racist, violent and verifiably false content on its platforms. Facebook is taking steps reviewing the policies and commitmented to equality and Racial Justice will this boycott pose a major threat to facebooks futures we always said it doesnt matter unless advertisers start to pull out. Is this the beginning of the trickle becoming a more sizable flow. Its an interesting flow, unless your a part of the free hans solo crowd, some people know what im talking about, i find it fascinating those three Companies Made the list. With that said, i think it is a big deal because its not going to be the end. Its just the beginning. To your point. And weve said when advertisers start to pull away this is the existential risk they face market clearly doesnt clear valuation wise 25 times next years earnings, facebook isnt really that expensive, but this is a exist existential risk in my opinion. What do you think, given the way the stock is run. Another thing to keep in mind 98. 5 of their revenue is derived from ads and the political environment were in, in a election year, all of the headlines we have, i just dont understand why, you know, we wouldnt take the proper measures needed to make sure propaganda, hate speech, are eliminatied from th platform. All you would think is one fortune 500 company, i would think, to say were on board guy mentioned this is a very specific group of company. Right. But you get a starbucks on board and all of a sudden the dam breaks so, whats been happening, to that point, is that all during the course of this, as we see corporations react, weve seen just that. So weve seen little incremental changes, but then it sort of changes the tide so, if you wind up getting huge compani companies, this is going to leave more than just an incremental hit on facebook. If you look at this year, google, their at revenue is coming in this year. This is a year where facebook should actually be a bigger part. Theyre a digital their digital presence is bigger, theyre growing. They dont want any hiccups to upset it but theyre also trying to wade in the waters and do it as sort of a i dont know want to use the word politically correct, but for lack of another word, theyre trying to do this in a measured way where they dont want to be the judge and jury right so, right now i think that the stock is looking past it. I dont know to your point if this bill if its going to be a massive headwind but right now the stock is looking past it as a temporary change. One of the groups backing these proposed changes is the naacp one bright spot thats come out of all of the protests in the ults is the United States is that companies have donated a lot to organizations including naacp, half million Banana Republic 250,000 electronic arts. Amazon air bnb. All donating to the naacp. Do Companies Risk looking like hypocrites if they are donating money to the naacp but dont join in and say facebook review your policies do something about this. Brands are in a huge position to implement change, some of the brands, whether people who love the you overtime doors, going for a hike, and pitching a tent. This tends to be environmentally Conscious Group of people. These are brands with very, very loyal followings, brands with an opportunity to distinguish themselves not that these companies are being opportunistic, but it cements your place with your Loyal Customer the issue with facebook is it ha been the scale they have in the social media world theres nothing that even comes close to them so brands can architec so brands can act in the shortrun, see how it goes in the long run, and for facebook its hard to know what the conversation is going on but clearly theres been some sense to first not be the ashitor of truth and then to follow through, we will go with the prevailing players of social media and play in the same lane. Its clear facebook wants to be on some level and clear always the epicenter on social media and how some of the issues will play out in the shortrun, not surprising brands have always been first. Nikes has been first, starbucks you mentioned, part of their identity is are theed in the is rooted in the social fabric of the country its one month, well see how long it goes. So who could be the next big advertisers to pull out. Joining us founder and ceo of ad agency great speaking with you. In terms of what these Companies Stand for, the consumers, the brands appeal to, if you had to think of other companies that might share a similar Cross Section of people with the same views, who do you think of its interesting. Obviously you think of the top advertisers, nikes, proctor and gambles, the pepsi it is so strong for the outdoor brands the obvious core brands of the same category are the tip of the iceberg so if this really catches on, you could see a sitewide, biggest brands from top to bottom. Right in this period where companies are facing pressure to cut costs, could this be simply an opportunity also to reset their ad spend because everybodys saying this is only through july. Thats a very good point even if facebook faces a boycott through july its limited tiech. Could this be an opportunity for companies to say were going to right size our ad spend and add july and might go back in a reduced way. Yeah, i think more importantly, this is a great opportunity for facebook to really take a stance on compliance i was thinking of other industries around longer than social media, digital advertising, the outdoor industry, television, radio. And theres a lot more compliance that goes into when an ad is submitted thinking through the implications of that ad. So i think this is a great opportunity for the industry, for facebook, to really look at what compliance means in this new age of instant advertising where anyone can go on and create an ad and post it in seconds. I really think thats more of an opportunity to reset, if were going to reset anything, to reset spending. You dont think of this as potentially companies saying were not going to go back to facebook in the dollar size we were going, we were advertising before this boycott. I dont think any company is going to be able to avoid facebook you know, facebook is here they own instagram they own other companies and theyre consumers that are using these networks if the consumers went away from the networks then the advertisers would follow but i dont think that will happen any time soon, if ever. So i think the companies the advertisers are going to go where the consumers are. Especially with targeting they will be able to reach their consumer in a very niche, specific way, so its not just broadcast advertisering and they could shift more budget towards targeted ads but theyre definitely going do go back to facebook its only a matter of time frank, thanks appreciate it. Of five tier thats a good point. Its always chicken and egg argument, the consumers are there so the advertise ooh rs g there. Advertisers pull out then what its interesting to think of protests happening nationwide but snnothing happening online. Yeah and the saving grace for facebook is the stock is trading at an alltime high. It all falls under a cloud of doesnt matter because the stocks gone high er for now my sense is others will fall in line and theres been no alternative. I know steve talked about this for a long time and weve talked at it at length last month and half but snap chat was left for dead for a long time there was a 6 stock and facebook was about to put that company out and facebook got their own problems, i think they took their eye off the ball and now all of a sudden snapchat is a viable competitor, that stock has done really well so yes, theres no place else to go right now but there will be other places to go. Dont discount the fact i think at a certain point the dennisons of facebook may start leaving in droves as well. Lets talk more what this could mean on facebook shares and bring in fast money friend jean always great to speak with you. This is only through july, yes, but weve heard from companies, im thinking of expedia in regards to google but still, the point is there that the papadopoulos is offering the pandemic is offering the Company Opportunity to reset ad spending. Companies are going to boycott facebook for the move july could come out and say this is a good time to say maybe we dont go back in the size we were before. I think its unlikely ive learned a lot about facebook over the past year and half i predicted when theres a greater awareness how toxic facebook and social media was, that there would be a new awareness of people that would start to moderate time on social media. Apple came out with tools around screen time. At the time facebooks users, though the biggest user base monthly in the world growing at 5 has continued to grow at 5 over the last six quarters and my Lesson Learned is despite all of its shortcomings is people are largely addicted to the endless, mindless scroll when you talk about the chicken and the egg, ultimately, both those come down to the user base are the users there. It continues to grow i think one of the disappointing parts about this, with these advertisers that made announcements is how quick they were to say they were going to likely come back in august what that means to me is theyre making a statement, showing some form of support around the topic, ultimately theyre going to embrace facebook as a platform, because theres really no other place to go, and so, they are ultimately valuing their bottom line more than they are the cause that they report to be supporting hey, gene, its tim i know youre not a digital, ad marketing guy per se, youre talking about a world suddenly theres software advertisers the will see where their ads are going and context how theyre being consumed, the ads, doesnt it mean advertisers have a lot more control and can mon manipulate the outlets that much more theres hot companies that do just this. It feels like this is the right time for that. Definitely the right time the environment is there the need around traditional methods are continuing to be governed. If you look at apple announcements today about blocking some Traffic Monitoring going on, theres more opportunity around that. Ultimately it comes down to where the people are, the users and the time spent, thats been the piece thats unfortunately surprised me over the past year and half is that even though theres new tech out there is that i can not foresee anything really trying to get humanity back on a track and ultimately advertisers on a track im not trying to politicicize anything going on here, making a simple comment that when you look at great Tech Companies that are ultimately changing the world i think it needs to be to change the world for the better and i think that you can build an argument that facebook season hide on that topic facebook is behind on that topic. Very diplomatically put, gene on making the world a better place. Gene, always great to speak with you. Thank you. Thank you. Gene munster of luke ventures if you own a stock should this be a concern. Should this factor in . I think this is an interesting notion that facebook is behind on that effort to make the world a better does that matter if youre in the stock . The short answer, unfortunately, is no at the end of the day were all about margin, profitability and reach. As we have all said, facebook has that in droves what i will say is that the Political Climate does seem to be changing and weve seen it across the nation. And for what has gotten facebook to this point is being at the cutting edge of trend season setting and being able to take data and process it in nano seconds. They would be remiss not to take this into consideration in terms how its being perceived with the customer base. But the it short answer, no, i dont see it effecting the bottom line. I assume the companies decided to pull back ad spin in the interim represent only a small percentage of income and revenue streams. All right lets turn now to some ad efforts over at amazon that company seeing Charm Offensive after months of blowback in working conditions and much more. Now with that story. De amazon decided if you cant fight them charm them. Theres a video of jeff bezos getting a Temperature Check and social distancing and masked and another work houseworkers talking about the opportunities amazon has afforded him. The company has even agreed to make bezos available to host antitrust investigation something they resisted at first as amazon faces pressure from employees activists and lawmakers and regulators on a number of fronts treatment is in in europe concerns it could use data to unfairly compete another issue thats been ramping up over the last few months is amazons treatment of warehouse employees a mid the can pandemic. Some saying the company hasnt enough to protect them and signs blue color workers reaching corporate employees. It along with facebook led Tech Companies in lobbying spent in the First Quarter of the year. And of course this is election year. Welltimed amazon, right yeah, i mean, amazon has really turned into an etf unto itself they seem to navigate the waters pretty well. Every time i look at year to date performance on amazon i have to scratch my head to make sure im seeing the right number its a tech spot its a retail play its cloud play. Its everything under the sun. They always seem to navigate it just right stocks up 46 . I think being able to buy fractional shares, you can get a different retail client to it. I havent bought it here i was long at 190. Sold at 650. Went in and out, to 1,000. So practice what i preach. I havent bought it here but i see why people would want to own this conglomerate of amazon the way it is now. Guy, you think amazon needs to spend this on these ads, they air on cnbc, full disclosure, theyre riveting, they really tell a good story. Charm offensive i mean, i just, i love the sound of it. Do they need to spepd spend it why not. They prove they can spent money on anything and the stock is impervio impervio impervious seems he bought that telescope to star gaze thats wonderful interesting. We had mark cuban on the show prior to amazons earnings and asked him point blank, are you staying with the stock, he said absolutely categorically yes wound up everybody was right, if you recall it made alltime high in the number and traded to 2240 in a week or so. Its another name you can game it a little bit. If you just want to own it and come back five years from now and have a conversation i can understand why people would do that as well. Quick last comment, tim i think antitrust around amazon has been a theme for two or three years ecommerce is going to be 35 by 2025 and they are 30 of that market now its only 19 now. Its amazons world and we live in it. Coming up, shares of American Airlines hitting turbulence. Tell you what got the company so nervous. And why one of the most popular stocks of be robinhood could be the winner of in the Sports Betting market fast money back in two with exceptional offers. Get zero percent financing and make no payments for up to 90 days on all 2020 lexus models. Experience amazing at your lexus dealer. Experience amazing i geh. Common bird. E. Ooh look over here something much better. There it is. Peacock, included with xfinity x1. Remarkable. Fascinating. Very. It streams tons of your favorite shows and movies, plus the latest in sports news and. Huh run the newest streaming app has landed on xfinity x1. Now thats. Simple. Easy. Awesome. Xfinity x1 just got even better with peacock premium included at no additional cost. No strings attached. Just say peacock into your voice remote to start watching today. Welcome back to fast money, we have headlines out of the Airline Industry lets get details. The most prominent is American Airlines, down more than 7 , late yesterday the airline announced it is going to try to raise 3 3. 5 billion, doin if in four moves, heres the break down 1. 5 in secured notes 750 million in convertibles 750 million in common Stock Offering and 500 Million Term Loan facility keep in mind 3. 5 billion is separate from the 4. 75 billion that the airline is discussing in terms of a loan with the treasury department. So that could be even more capital that they potentially could line up by the end of the month or shortly into July Raymond James estimated, okay, this is how much cash on hand, how many months airlines can survive with the cash on hand, american at 8. 3 months for a point of reference, united at 17. 5 months and then you have southwest, which even if things go terrible from here on out they have enough cash to last for the next 25 months. More than two years. All of this coming at a time, guys, when people are looking, and airlines are looking at ways to raise more capital. Alaska out today raising 674 million. As a look at the Airline Index keep in mind that yes we are seeing more people flying. The high yesterday was 590,000 people but its still down 78 compared to the same day last year. So expect more of these capital race moves to happen with other airlines in months to come. Do you know what the base Case Scenario in terms of capacity what do they assume is terrible and how they get to those numbers of months. Well theyre basing that on the cash burn rate that the airlines have right now and the expectation that that cash burn rate is going to be coming down. Obviously ive watched the notes over the last couple months, its been modified as the airlines came out and said look were at 100 million a day and brought it down to 50 or 60 million and same time have raised a certain amount of capital so they have more cash on hand so it is pay sliding scale that adjusts over time. All right, phil, thanks what jumped out at me was American Airlines, eight plus months of capital. Thats not a long time , yeah no, its not a long time and think its largely in the price of their debt. If you look at delta and southwest, their Balance Sheets are better the transactions that united did friday was 5 billion of k