LAUREN: ALL RIGHT.
LET'S SHOW YOU THE BIG BOARD.
THE DOW UP 921 POINTS.
IT WAS UP AT ONE POINT ALMOST
1,000 POINTS TODAY.
THAT IS A GAIN OF 4.25%.
AFTER FALLING INTO BEAR MARKET
TERRITORY BACK ON FRIDAY, WE'RE
LOOKING AT THE NASDAQ NOW AND
DROPPING ANOTHER 140 POINTS ON
CHRISTMAS EVE ALONE, THAT WAS ON
MONDAY, THE TECH SECTOR IS
LEADING TODAY'S MARKET RALLY.
THE NASDAQ IS CURRENTLY UP 5% TO
THE UPSIDE RIGHT NOW AT 6503.
MANY OF THE TECH TITANS THAT WE
LIKE TO WATCH EVERY DAY,
FACEBOOK, AMAZON, NETFLIX, THEY
ARE IN BEAR MARKET TERRITORY.
WHAT DOES THIS MEAN FOR THE
SECTOR IN 2019?
LET'S BRING IN COLIN GILLIS WITH
CHATHAM ROAD PARTNERS WITH HIS
OUTLOOK FOR THE NEW YEAR.
WHAT DO YOU THINK?
DO YOU HAVE HOPES FOR THE
POPULAR TECH STOCKS, FACEBOOK,
AMAZON, NETFLIX, ALPHABET?
>> ABSOLUTELY.
THE KEY TO REMEMBER IS FANG IS
NOT DOWN AND OUT.
THERE ARE STILL AMPLE
OPPORTUNITIES TO MAKE GOOD
INVESTING DECISIONS BUT WE WILL
GET VOLATILITY, 2019 WILL BE THE
YEAR WHERE YOU STILL HAVE A GOOD
ECONOMY, YOU STILL SEE GROWTH IN
BOTH REVENUE AND EARNINGS.
BUT STOCKS ARE GOING TO BEHAVE
VOLATILELY.
LAUREN: WHAT DO YOU MAKE OF
TODAY'S RALLY FOR STOCKS
OVERALL, PARTICULARLY THE
NASDAQ?
>> I LOVE IT.
ONCE AGAIN, YOU HAVE THE
AMERICAN CONSUMER SHOWING THAT
THERE'S A STRONG BACKBONE AND
DRIVING RESULTS FOR INVESTORS.
BIG CHUNK OF THIS RALLY IS BASED
ON THE AMAZON NEWS, SHOWING THAT
THE HOLIDAY COMMERCE RESULTS ARE
EXTREMELY HEALTHY.
WE ARE TALKING ONE BILLION ITEMS
SHIPPED VIA PRIME.
GREAT NEWS FROM AMAZON.
LAST NIGHT, MANY PEOPLE, A LOT
OF INVESTORS WERE WORRIED WHAT
TODAY WAS GOING TO BRING, WHAT
THIS MARKET WAS GOING TO BRING.
IT'S WELL-TIMED NEWS FROM AMAZON
TO HELP DELIVER AND LIFT UP
THESE NAMES THAT HAVE BEEN
BATTERED PARTICULARLY ON
CHRISTMAS EVE.
LAUREN: YOU LOOK AT THE BULL
MARKET WHICH IS NINE YEARS PLUS
IN THE RUNNING, THE NASDAQ IS
ACTUALLY UP LIKE ALMOST 400% IN
THAT TIME.
A LOT OF FOLKS ARE SAYING THIS
MAKES SENSE FOR THE MARKET TO
COOL OFF.
I WANT TO GO THROUGH SOME OF
THESE POPULAR TRADES, AND YOU
GIVE ME A HO, HO, HO OR NO.
START WITH APPLE.
>> UNFORTUNATELY, APPLE IS A
GREAT COMPANY BUT FROM AN
INVESTMENT ANGLE, I SAY NO.
YOU LOOK OUT, YOU SEE A COMPANY
THAT IS JUST DEPENDENT ON THEIR
HARDWARE SALES OF iPHONES AND
THERE'S A LOT OF ENTHUSIASM FOR
THEIR SOFTWARE AND SERVICES
REVENUE, BUT I DON'T BELIEVE
THAT THAT'S GOING TO MAKE UP AND
GROW FAST ENOUGH FOR ANY DECLINE
THAT'S HAPPENING ON THE HARDWARE
SIDE, PLUS THE CAPITAL RETURN
AND SHARE REPURCHASING, IT'S
NICE FOR NOW, BUT IT SHOWS THAT
THERE'S A LACK OF INVESTMENT
IDEAS.
SO NO TO APPLE.
LAUREN: THEY ALSO SPOOKED THE
MARKET WHEN THEY SAID THEY
WEREN'T GOING TO BREAK OUT THE
UNIT SALES ANYMORE.
OKAY.
I KNOW YOU'RE POSITIVE ON
AMAZON.
YOU WERE TALKING ABOUT SERVICES
WITH APPLE.
ALEXA IS EXPECTED TO BE A
TREMENDOUS PART OF AMAZON'S
FUTURE AND THEIR OVERALL
REVENUE.
HOW BULLISH ON AMAZON ARE YOU?
>> AMAZON IS UP THERE IN MY TOP
TWO PICKS.
IF YOU WANT TO HAVE A COMPANY
THAT'S GOING TO BE AROUND FOR
THE NEXT 30 OR 40 YEARS, YOU
REALLY CAN'T DO ANY BETTER THAN
AMAZON.
LAUREN: NETFLIX?
>> NETFLIX, YOU KNOW, I'M
CONCERNED ABOUT NETFLIX.
I'M GOING TO GIVE IT A NO.
I KNOW IT'S HAVING A STRONG DAY
TODAY BUT THEY ARE PUMPING IN
MONEY IN THEIR OWN CONTENT AND
WHEN YOU GET IN THE CONTENT
GAME, YOU ARE ALWAYS DEPENDENT
ON YOUR NEXT HIT.
LAUREN: IT'S BILLIONS AND
BILLIONS OF DOLLARS OF EXPENSES.
WHAT ABOUT ALPHABET?
MANY OF THE TECH COMPANIES,
THERE'S A LOT OF PRIVACY ISSUES
AND PERCEIVED BIAS,
ANTI-CONSERVATIVE BIAS.
WHAT ARE YOUR THOUGHTS ON
GOOGLE?
>> YOU KNOW, I LOOK AT ALPHABET,
I THINK ABOUT GOOGLE AND SAY TO
MYSELF IS THERE ANY OTHER
COMPANY POSSIBLY OUTSIDE OF
AMAZON THAT HAS THE HUMAN
INTELLECTUAL CAPITAL THAT GOOGLE
HAS BEEN ABLE TO AMASS AND HAS
THE CURRENT REVENUE STREAMS AND
FUTURE REVENUE STREAMS, AND I
SAY NO.
THIS IS A COMPANY THAT HAS EIGHT
PRODUCTS WITH OVER A BILLION
USERS EACH.
YOU SEE NEAR TERM REVENUE
STREAMS FROM THEIR CURRENT
PRODUCT STREAM, YOU SEE FUTURE
REVENUE STREAMS FROM THEIR AI,
FROM THEIR DRIVERLESS CARS, FROM
YOUTUBE TV, A WHOLE SUITE OF
PRODUCTS.
THEY ARE INCREDIBLE AT PRODUCING
SOFTWARE THAT ADDS VALUE TO OUR
LIVES.
HO, HO, HO.
LAUREN: WE HAVE REGULATION,
PERHAPS, COMING DOWN THE
PIPELINE.
YOU GOT DIGITAL TAXES.
THESE ARE CERTAINLY HEADWINDS
FOR GOOGLE.
>> THEY ARE.
THEY ARE.
GOOGLE DOES A MUCH BETTER JOB
ABOUT BEING TRANSPARENT ABOUT
WHAT IT DOES.
YOU GET THESE PRODUCTS QUOTE
UNQUOTE FOR FREE, BUT THERE IS A
VALUE EXCHANGE THAT'S BEING
DONE.
YOU ARE THE TARGET OF
ADVERTISING AND THAT'S
ALPHABET'S BUSINESS MODEL.
I THINK THEY DO A BETTER JOB OF
TRANSPARENCY THAN, FOR INSTANCE,
FACEBOOK.
THAT HAS BEEN DISAPPOINTING
CONSUMERS.
LAUREN: MICROSOFT HAS BEEN THE
WINNER THIS YEAR.
IT'S ONE OF THE ONLY STOCKS THAT
WE WERE JUST TALKING ABOUT TO
NOT FALL INTO THAT BEAR MARKET
TERRITORY.
WHAT IS MICROSOFT DOING SO
RIGHT?
>> YOU KNOW, MICROSOFT IS
FOCUSING IN ON ITS CORE
AUDIENCE.
IT'S NOT CHASING DOWN AFTER THE
CONSUMER MARKET, WHICH IT DID
VERY MUCH SO UNDER THE FORMER
CEO, STEVE BALLMER.
IT'S TRYING TO PLAY TO ITS
STRENGTHS, THE CORPORATE
MARKETPLACE.
IT'S BEEN MORE STRATEGIC WITH
ITS ACQUISITIONS.
HISTORICALLY, THEY HAVE GOT A
LOT OF BLUNDERS LINKEDIN HAS
ABSORBED WELL AND IT FITS IN
WITH THAT CULTURE.