Welcome to squawk alley. John fort has the morning life watching carefully as both apple, tesla, and the thatnasdae dipping into the red lets go to alex sherman tiktok is suing the u. S. Government over effectively banning the app come september 15th tiktok released a blog post right now explaining the rationality behind the lawsuit against the u. S. Government. There are two administrative actions that the Trump Administration has taken the fist would effectively ban the app by september 15th. That is the one that tiktok is challenging saying it has been preventing due process it has worked with the government for almost a year trying toics plane that it is not, in fact, a National Security threat. Their parent is bite dance that is what this has all been about over the past several months the order demands that bitedance die vest tiktok by october that means the sale talks with microsoft and oracle will continue tiktok has at least challenged the effective ban that takes place next month alex here it is interesting to look at this blog post they say they have been doing everything that they can to express their range of concerns. How do you think it will impact the talks from micro soe microsn others i think die vevesting may bee ultimate solution. There are two concerns here. Tiktok doesnt want to be wiped out and then it is not operating in this country. All of its influencers are fleeing toward other apps. The employees, are they continued to be paid tiktok preparing for the instance of a ban. That needs to be priority number one. They dont apt loss of want a loss of the sale they want to make sure it isnt banned for your point, they never articulated any reason why tick took security measures were inadequate for any National Security concerns. Is your argument that theyre not trying to dismiss a band it is a little confusing, their saying were not a nation n National Problem theyre saying okay, look, if youre going to force us to do something, we would rather sell than get banned. I think that is hair argument at this point unless we see further action that challenges that lawsuit. But were not seeing that at this point and talks, im told, are continuing with microsoft and the oracle group that cnbc has reported on in the last couple weeks. Meantime, apple shares hitting another all time high. So, julie, each apple share hold tlg will be three additional shares, so why do this it doesnt change anything the whole point here is that a lower stock price can u adjust the stock prices we wanted to make sure that it was accessible it is at the price where it is today, and we bring it down to a level that is more affordable to a lot of people that have an interest in owning it. The First Publicly Traded Company to reach a cap of 2 trillion since then 150 billion in cap. Some of its products, we know, benefitting here from that work from home, too and now investors looking to launch products, analysts debating what the demand will look like when the new handsets hit the selfhelves, back to you. Mark, always good to have you, good morning. Good morning. Every sector had more deliners than investors. That included tech that has not really happened but for a few times in the last 20 years, does that give you pause or not i think were not seeing all boats float, right fundamentals do matter i looked closely at the internet space. And were seeing this space and were seeing a i ddivergence in stock performance. How do you differentiate between the two schools. Companies like google and twitter, they had challenging results. Google not really growing top line and then you have company thats are performing very well it tells you a lot as we look at a dynamics here, a handful of o market companies, theyre safe from innovations. They continue to earn, and then you have a rush of newer companies, e emergencies, seeing some kind of chances to get out here how do those stay true at the same time, do you think . We cant under estimate the impact of the trading here it is true that we are seeing fundamentals and valuations and movements, but if you step back a little bit you have active trading that is really representing a pretty something portion of the market. And i think that part of what youre seeing is, in the out performance of the few, is also driven by these programs and etfs i do think that one of the things youre calling out, im seeing it every day, and e commerce is an example a few years ago very few companies knew, and they were struggling now look at the skeuccess of vertical Ecommerce Companies. And the little guy, if you will, is doing well now. And even in advertising. You know youre starting to see some growth in smaller social Networks Like visco and others so there are, fundamentally when you look under the cover, the little guy is doing well sometimes the performance is driven by active versus passive management, i think. Mark, i want to return to something you just said about the possibility for the ecommerce players to compete with amazon. What do you think has the most opportunity and do you think there is a risk of exposure to a decline in Consumer Spending should the consumer take a leg lower this fall. Certain verticals do lend themselves more. Some that require a lot of capital, you take the auto vertical this is an area where you require unique type of distribution channel, right . You need to have refurbishment centers. There is a whole different back end that is specialized to that vertical with wayfair and the Home Furnishings space, it is a different channel, it is dropships straight from supplier and inhouse distribution as well these are Specialized Logistics and Distribution Channels that dont fit within the cookie cutter type model. So that is one theme that i see, and im sorry, jewelulie your o question was just in terms of exposure for Consumer Spending. Do you think consumers are moving so much online that the ecommerce plays will be more immune than any negative trends that we have seen in the physical retail space . The folk thats we speak to, the longer we thought it would stay elevated for a couple of months in the heat of the pandemic and then start to fall off. That has not been the case a lot of Ecommerce Companies have continued to see strong top line growth in their ecommerce sales. Im talking about the competitors and the private world. The longer that has happened, the longer that we are expecting this to be a disturble change. And this is kind of a change in behavior that we think will be durable. It is hard to know because the pandemic is lasting a little longer than we expected. But it, i think the longer we go along and we see the cohorts behavior like a cohort of before it is showing as it is a durable growth speaking of cohorts, i seewsee w wayfair. Is it a trend . That is not where most clients are looking to put their dollar the m a market is robust we saw a pause for a couple of months but our activity is really starting to pick up, starting in the june time frame. That is really where were seeing firms sitting on a lot of cash the changes in tax policy. And there is a lot of Robust Interest on the private equity side the strategics are not slowing down at all. Were looking first and foremost to put their money there i think it has always been a buy back mark, that was good always great to have you, thank you for kicking off the hour well see you later. Thanks. Up next, gyms getting the green light to reopen across the state of new york. Csst. Discuss what the new ceo stay with us traded goods. Tools, cattle, grain, even shells represented value. Then currency came along. They made it out of copper, gold, silver, wampum. Soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. Thats why its time for Digital Currency and your investment in the grayscale funds. Go digital. Go grayscale. You say that customers make thelets talk data. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept 5g, everybodys talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item corner offices for everyone. Just have to make more corners in this building. Chad. Your wireless. Your rules. Only with Xfinity Mobile. Now thats simple, easy, awesome. Switch and save up to 400 a year on your wireless bill. Plus, get 400 off when you buy the new Samsung Galaxy note20 ultra 5g. Gyms reopening in new york state this morning joining us now to discuss this is the cross fit ceo great to see you i see you at one of your gyms right now. Walk us through the experience and how things will operate under some of these restrictions for example, new york state, and things like that are you so far seeing your customers wanting to get back into the gym we of course are, it depends on peoples own physical suggestio situations we are not encouraging people with underlying conditions so the key, i think, will be Small Group Classes where people can see there is tape on the floor. People can find their own space and their own equipment. They keep things down. What were seeing in the past several months, of course, with many gyms closed is the market get very excited about stay at home fitness were looking at shares of peloton. Clearly a bet that this is an enduring trend. What is it looking like . Interestingly of the millions of cross fit practitioners, a big chunk of them have always worked at at home for the garage gyms the other is a sense of community. There is an Amazing Community when youre part of a Group Getting fit together and you kind of miss that at home. Julia here. I used to take a lot of Group Classes and they were always very crowded now youre limited to 33 capacity what kind of capacity do you need to operate at to be profitable it is good from a safety perspective, but maybe not from a profitability one. We did a class with 11 or 12 folks in the class today precovid we might be up to 15 to 20 where as to your point we might have a capacity of 50 in here. In cross fit the most majority of classes are under 20 people and a big chunk of them tend to be about 10 or less. The key again is smaller classes with really big rewell ventilat areas. Anyone that has ever taken cross fit knows that oxygen is a must you got to breathe youre going to be huffing and puffing. What is your best advice to customers who come in and have to want a good workout through a mask how hard is that it is definitely making things harder. It takes some getting used to. We will have folks run outside of the gym and decide outside if they want to wear a mask or not. But in the gym we require a mask, and it takes some adjustments. But we always like a challenge it is just a new challenge and when we finally get through covid everything will feel really easy at that point, right . Reading between the lines, it seems like you would think that cross fit might be a net gain. Is there any evidence you have for that so far. I would say for us, a transformation, changing lives, over 50 of people who do it regularly say it has changed their lives. It is higher than any other product or service that i have ever seen in my life it was a big deal for me so rather than taking in poundage and numbers thats why if we can only train with three or four people, but when we have 20 in here were going to try to get maximum impact thank you for sharing your thoughts absolutely, pleasure to be with you still to come, kara swisher on Mark Zuckerbergs warning to washington dc about tiktok and other chinese firms. What the president is doing is not really about tiktok, it is about tiktok, we chat, and other Chinese Software companies that are able to collect data on american citizens, ship it over to servers, and share it with the communist party and the Peoples Liberation party. So im always amazed how some of these stories pop up but that one, for me, has zero credibility. I know that he had nothing to do with anything that happened here in the white house youre slouching again, ted. Expired, expired. Expired. Thanks, aunt bonnie. Its a lot of house. I hope you can keep it clean. At least geico makes bundling our home and Car Insurance easy. Which helps us save a lot of money oh, teddy. Did you get my friend request . Uh, ill have to check. doorbell ringing aunt jonis here for bundling made easy, go to geico. Com. Hello . And then found the home of my dreams. But my home of my dreams needed some work sofi was the first lender that even offered a personal loan. I didnt even know that was an option. The personal loan let us renovate our Single Family house into a multiunit home. And i get to live in this Beautiful House with this beautiful kitchen and its all thanks to sofi. Welcome back, everyone, im sue herera a russian dissident shows signs of poisoning doctors say they found traces of a chemical used in nerve gas and pesticides he remains in intensive care in an induced coma. Zoom outages are affecting people on the east coast and around other parts of the world. Zoom says they restores service to some customers. In wisconsin, tensions remain high after police there shot a black man in the back while trying to apprehend him. It sparked protests with a vehicle set on fire. Were carvana, the company who invented car vending machines and buying a car 100 online. Now weve created a brand new way for you to sell your car. Whether its a year old or a few years old, we want to buy your car. So go to carvana and enter your license plate, answer a few questions, and our technowizardry calculates your cars value and gives you a real offer in seconds. When youre ready, well come to you, pay you on the spot, and pick up your car. Thats it. So ditch the old way of selling your car, and say hello to the new way at carvana. Tiktok challenging the effort to ban them how are you doing, kara . Im not bad how are you . Im good, is zuckerberg saying in private meetings what he was saying in georgetown . Of course two years ago he talked about the threat of china, and that was a first big talking point. He said facebook needs to be as big as it is because of the threat of china. As to the lawsuit, of course theyll do that. This is unprecedented what theyre doing. There is a lot of shareholders and employees. I think they want to bring this to the courses it cant be done by fiat it has some scrutiny by others other than President Trump but you dont think they harbor any solutions about what will likely happen i dont who knows . We have talked about a pivot live, that the chinese might just wait everybody out nap is a tendency they have they have enough time, were in the middle of an election. Do you dont quite know what the Biden Administration will do, to drag it out is probably the best of all and they are certainly in that time fra ti timeframe, right trump will be in always until january even if he loses he will have pressure in general, and the Biden Administration can turn back whatever he does if he wins he can deal with them after that it seems to me that going to court is the smartest thing. To air these issues makes sense to me. And kara, how do you see the lawsuit impacting the talks and which potential buyer do you think is most likely to make a deal at this point microsoft completely, oracle has no business in this deal this is a forced bid lets just keep it in mind whatever issues we have with china, this is problematic at lots of levels there will be a lot of lawsuits for lots of people there are not really any other buyers, oracle might be a stocking horse here. They certainly have a platform, but theyre businesses dont skew with this one at all. So i would assume it is micro soft, but at the same time i think it is a problematic ser. Search well see where that goes from there from is big legal issues and i think the courts are the right place to deal with that. Back to mark zuckerberg, he is advocating for a crack down on tiktok. How does that play into the way that facebook is preseerceived washington anyone paying taengs to facebook is not surprised. They have never competed as much on innovation as much as buying things or trying to mess up a market for someone this is their style and of course they would push because it has a welcome it is welcomed by the Trump Administration and a lot more people than that so they would use it for that. They would say oh no, even though theyre competing with us, from an innovative point of view, and they are, were going to push on the chinese part. That is what you would do if you were facebook. The way that we talk about tt tiktok is that it is a juggernaut is there any under current of doubt. What are they looking to value this at and how do you think it plays . I think it is pretty innovative i dont know how much you use it, its wonderful and its a pleasure to use. That is one of the things that people are worried about facebook has never been able to provide in a with any products it doesnt mean it will take down facebook. Facebook does 50 more things than tiktok does, but it shows a glimmer of competition that is significant, just like snap ccht did. And facebook came down on them giants crush people, that is their name that will play out in some degree we talked about the airbnb ipo, now we have doordash where is this headed a lot of companies that want to move into the market. There is investors that want to invest in something, right wall street is sort of not at the same place as main street is there is a lot of money looking for places to put it i think it will be one of the biggest ipos going first it will be interesting to see their numbers and then how they will do in the market i think this is a great time to go public. A lot of Big Companies moved forward in times of stress it is always a very good time to do it. They will go into a