Good Tuesday Morning welcome to squawk alley. Joining me at post flnine this morning, sarah eyeseyer eisen. Also joining us is roger mack in a my good morning to you. A lot to get to to dafrment first up, faang stocks several hedge funneled managers bearish on the stocks in the Second Quarter third point, aprpaloosa and soro are liquidating 18 stakes in those areas. They speak out on the companys streaming strategy versus fellow faang stock amazon you wrote an oped in investing in the stocks two days ago do you seenlt. Turning as were getting the filings to day i dont yet and, in fact, what i am really curious to know is where the money went that was taken out of the stocks if you look at by funneled, the sales werent in general huge. Most of them look more like trims than, you know, lots of dumping. And, in fact, the thing that i think everyone looks closely at tech recognizes is that the faang stocks are leadership stocks for a really good reason. Their market power has given them huge advantages, competitively. As a result, theyre fundamentals are a lot better than everyone else the issue now is that as good as the funneled ales fundamentals are, theyre rising more rapidly. So the expansion is particularly great in this group of stocks. And so to me, the market call is the one you have to make so if youre not if youre putting these into other stocks, i dont get it i think the fundamentals are better in faang than elsewhere but i can see people going to cash even though the market power that youre describing has obviously had cultural consequences, youre not happy about, others have pointed to the rising risk of antitrust group because of that market power. You dont think thats a turnoff if youre just in it for the investment , no im saying if youre just in it for the investment, none of those things is a real threat in the near term the reason i wrote my oped is because there is no appetite in our government for serious antimonopoly regulation we havent had weve been going away from antimonopoly regulations since 1981 and i see nothing right now there is talk. Lots of people i think in congress are open to the idea but not enough to actually get in legislation passed. I think the country just hasnt focused on it. There are other issues that worry people more. I dont think thats a super big threat i dont think theyre competitive threats to the faang stocks the onlyish sue what do you think of the market . And given how much of return has come from pe expansion this year, i think its completely reasonable to ask the question how long can this last and, you know, as long as the trend is in place, youre right. But one of these days well wake up and its not going to be in place anymore and youre going to wish you sold some stock. And on that day, i wonder if you have to distinguish between the faang stocks if we do a little more deeper stock picking dive into faang, should you be looking, for instance, at a netflix and tesla as vulnerable. Theyre the two that are burning cash of all the high growth cash generating fast growing machines you know, thats probably right in the sense that they will react more. So youll get hurt worse in those stocks theyre also the smallest theyre the least well entrenched in the economy. But i look at netflix and i go, i again, splitting hairs among the faang stocks is a useful exercise today. I look at netflix. I can see the arguments against it but the arguments in favor of it are really compelling. Relative to other people in video. Netflixs strategy is the one that is forcing everyone else to react. And they keep coming up with new angles that are tremendously inventive. You know, i dont own the stock. I never been clever enough to figure out a good entry point. But i will tell you, i have no end of admiration for what theyve done i would encourage everyone to read the interview the way he describes whats going on in that business is really thoughtful and you have to admire what theyre doing you know, whether the stock works from here, again, i think is a function of the market. If the market keeps going up, the faang stocks will continue to lead it roger, let me just ask by the way, i know your firm interviewed variety. We showed a cover image of that but there are high profile symbols of the ipo thaz people are scratching heads and saying why is Silicon Valley asigning a high valuation to snap and blue apron and the Public Markets arent seeing it the Public Market is really smart. I it this Public Market has this figured out. The problem in Silicon Valley is that the next generation that was supposed to slide in on the heels of the faang stocks has not actually crystallized in terms of economic power. That there was a lot of promotion of the unicorn phenomenon but the substance of that generation of companies has not been there and, you know, the one thats got the furthest from the revenue point of view, Companies Like like uber are plagued. I dont think they stand up to tight scrutiny you know, i was there at post 9 with you guys the day snap went public all of us around the table that day were scratching our heads because it was like we were weve been tell eported to 1999. Silicon valley is a very spoeshl community. There say good reason for that a lot of wonderful stuff has come out of here a lot of garbage has come out of here too there is nothing to replace the faang stocks in the portfolio. There is nothing equivalently large scale that has that kind of strength. And, you know, tesla is, you know, doesnt have a letter in the faang. But i can understand why people would include it in that same group. But once you look at this more recent group, it just doesnt stand up to scrutiny and i think, you know, i still look at snap and i dont think its as low as its going to go. How about tpang . There are a few of the acronyms roger, two more ceos resigning from the president S Manufacturing council. Under armour and they decided to exit the council yesterday morning. There is what intels chief said in june when he defended his decision to stay on the council at the time. Heres my belief. Just like exiting the paris accord and just walking away is not a good thing, walking away from the administration, it is the administration of our country. We need to engage. And what ill do is spend time in there talking about what are we going to do how do we get back in . Roger, ceos in an interesting spot to make political decisions. What do you think they should do well, wim brian on this one i think that whatever hope you had at the beginning of the year of a constructive relationship between the Business Community and the administration, you know, there was a legitimate reason for optimism at the beginning if you were a ceo of a major company. I think if you look at it to day, the one thing can you be absolutely certain of is that reviving america iS Manufacturing economy is not going to be something that this administration has the bandwidth to do over coming years. Theyre going to be completely consumed with, you know, one legal defenses and then secondly, this agenda of social and essentially the way i describe it is this administration has one gear and its reverse you know, theyre just trying to take us backward theyre undoing regulations. Theyre undoing safety theyre undoing the, you know, the safety net that people depend on. And in that environment, even if you had the notion of something constructive that they could do around manufacturing, it just doesnt seem to be high enough priority and i think that candid lit other things are so destructive of both consumer demand and the basic economy itself that hang around there is just an inherently bad thing for ceos to be doing i think they can do more value by protest today than they can by positive interaction. You may say its going in reverse. But its rolling back some of the regs that people believe will actually tlelead to more j. I know people there is infrastructure and Environmental Review i believe that people i accept that people believe that deregulation will help i would like to offer an alt ea alternative hypothesis since 1991 we will two tools of Economic Policy that we allowed in this country, tax cuts and deregulation weve done essentially the same thing for more than 30 years 36 years and i would like to suggest that theres real evidenceit was enormously helpful for the first ten years. It was helpful but with definishing return for the second ten years and for the 16 years since then, i would challenge anybody to show how the country benefited from it. I can see how the top 1 , how people like myself benefit from it but realistically, you have not seen it in the economic numbers. I just think that this is become a religious thing for a lot of people and its been so long since weve done anything else that people have forgotten that there are other Economic Strategies can you employ to boost the economy. I think anything you can do today that increases jobs and increases family income, those are the things i would focus on and i dont think deregulation helps that at all. Well thats a whole separate conversation i mean so many of the it is sox t many of the ceos have a duty to the shareholders so maybe more Infrastructure Spending to he spending to help the businesses grow i hear that point let me push back on that point i think they would benefit a lot more from consumers having more stability in their lives and more money in their pockets that i think increasing demand right now would be a lot more valuable than cutting taxes again, if you look at a corporations have huge amounts of cash on their Balance Sheet i just dont think that Corporate Tax thing is at the margin the right thing to do either for the companies or the country. Thats a classic supplyside economics argument which well leave to economists. We go to the councils with that without even trying thats why im here, right . Yes roger, stay with us. We want to touch briefly on uber the in fighting continues with the genbenchmark today. Theyre xblang the lawsuit against kalanick were watching that story. We have the latest good morning, carl more news this morning the ftc announcing that uber settled allegations over deceptive privacy and Data Security claims, something that happened during uber 1. 0 which is when the company was led by travis kalanick. And uber spokesperson telling us the complaint involved practice thats date as far back as 2014. We significantly strengthened our privacy and Data Security practices since then benchmark believing that the best way for uber to move forward is to push out kalanick completely n that letter that vc firm send yesterday, the lawsuit was motivated by a deep desire to do what is best for uber. But maybe more complicated sources tell me that behind the scenes benchmark may not actually be acting in the companys best interests they say the vc firm threatened to block any potential investment deal unless the board is tapped at eight people which would eliminate the three board seats that kalanick controls and that move could come at the expense of the duty. The average Holding Duration for vc invest ment is seven years. Now as the New York Times reported, ubers board has been approached by three potential inve investment proposals and two will let them maintain the valuation. The valuation in the secondary market has fallen by billions. It all begs the question who in the world is going to come in and take over as the next ceo . It is not that hard to see how all of this infighting and now benchmarks lawsuit could drive away existing or future candidates what an amazing story thank you for. That roger, just trying to put this in Historical Context do you see this along the lines of hp and yahoo in terms of board dysfunction . I am not sure i would characterize this as board dysfunctio dysfunction in that sense at all. The problem you have here is different than hp is what im particularly familiar with because there there was a massive conflict over decision to acquire compact and the fight there was, you know, about a basic question of the companys strategy in this particular case, youre dealing with a company that was an extension of Travis Kalanicks personality i mean, he was uber in so many ways and pulling him out of the Company Creates at least some question as to what does the company do afterwards . Because if you look at it, the problem is isnt just that he would say and do bad things when he was out in public its that the company did mislead regulators and had software that played games and that deceived drivers. There were a lot of its been accused of a million Different Things all of which look just like kalanick so it made them one level very successful bear with me for a second. It made them appear to be incredibly successful. Now it appears that wait a minute, all of that was at least not acceptable and some of it may have actually been really, really bad and when youre in that position, you have to ask the question of, wait a minute, ive got this things that going from nothing to 70 billion my responsibility is to try to protect that investment, protect the employees and all of that. I look at this battle. I dont know whats going on inside what i know is that i understand the benchmark position and i think that they know kalanick better than a lot of the other Board Members do if they feel he ought to be completely gone from the company, i can understand why. What i would tell you is the notion theyre going to finance this thing at 70 billion i find laughable. Somebody may give them a proposal that looks like a 70 billion valuation built i will bet you anything that when the dust settles, you know, when you unwrap all the layers, its worth way, way, way less than that this company is not worth anything like that price you know, it is worth 10 billion . 20 billion . 30 billion . I have no idea the market will make that decision but not 70. Okay. 10 billion for uber no. Im saying there is something the market will pick a price time will tell but this dcompany is in deep trouble. Unlike hp and yahoo, there is threat that this company goes away because they, you know, they built this whole thing up on a philosophy that turns out to be unacceptable and so they have to change the philosophy and whether thn they do that, ie emperor going to be wearing any clothes or not well digest that later on. Good stuff today thank you for your time as always roger mcnamee. When we return, Silicon Valley versus a neonazi website following the tragic events in charlottesville over the weekend. Were back in a moment where to get in. Where to get out. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. For years, centurylink has been promising fast internet to Small Businesses. But for many businesses, its out of reach. Why promise something you cant deliver . Comcast business is different. We deliver superfast internet with speeds of 250 megabits per second across our entire network, to more companies, in more locations, than centurylink. We do business where you do business. Daily stormer has 24 hours to most domain to another provider they vie latd our terms of service. Joining us to discussion that decision and more is blake irving, the ceo of godaddy who has seen the stock jump 20 so far this year. We want to talk about both stories. Welcome back to the show thanks, sarah so take us through this decision weve been talking a lot about the risk calculations for ceos around these kinds of issues today. And yesterday. What happened saturday behind the scenes at godaddy that led you to pull this site and make this announcement sunday evening . Yeah. Thats a good question so, look, we always have to ride the fence on top of making sure that we are protecting a free and open internet and regardless of whether, you know, speech is hateful, bigoted, racist, ignore anlt, tasteless, in many cases well still keep that content up we dont want to be a censor and certainly First Amendment rights matter not just in speech but on the internet as well but when the line gets crossed and that speech starts to insight violence, then we have a responsibility to take that down and clearly with the events that happened in charlottesville, we felt the daily stormer went too far, crossed the line and we had conversations amongst our self and executive team about what we should do. We decided were going to take this down. We dont think it has any business being on the internet so we gave 24 hours notice to the daily stormer to move their site somewhere else. I mean with all due respect, thats when you decided that it could promote violent behavior why host a site to begin with that promotes antisemitism, neonaziism and White Nationalism . You know, i understand that i understand that position still First Amendment rights protect peoples ability to represent their beliefs. As ignore anlt and tasteless as those beliefs are, they have the right to do those things and i think when they step over the line and become, you know, i think targeting individuals with violence which clearly i think on the heels again of charlottesville was there, we thought we had a responsibility to do it frankly, we have looked at daily stormer because folks have reported it to us. We have a teechl people that continue to monitor sites when theyre reported to us and over the last decade we have had folks that take content, content reports, review the sights sites and decide what what were going to do with them. Its a fine line being making sure were not a censor and making sure were acting in a responsible manner and think a group of people or individual is being targeted with violence and thats what we did blake, just to help viewers understand, how big a deal is this how often do you do Something Like this . Where you actually pull something off . Carl, we