>>> WE HAVE THE
COMMANDER-IN-CHIEF BLOWING UP
BIG TECH ON HIS FAVORITE SOCIAL
MEDIA APP, EARLIER THIS MORNING,
STARTING WITH GOOGLE.
PRESIDENT TRUMP ECHOING
BILLIONAIRE TECH ADVISOR
NATIONAL SECURITY CONCERNS TWEET
ING, "THERE MAY OR MAY NOT
BE NATIONAL SECURITY CONCERNS
WITH REGARD TO GOOGLE AND THE
RELATIONSHIP WITH CHINA."
NOW IF THERE IS A PROBLEM WE
WILL FIND OUT ABOUT IT, AND I
SINCERELY HOPE THERE IS NOT, BUT
IT DIDN'T STOP THERE.
THE PRESIDENT WENT ON TO BLAST
APPLE, TWEET LING, "APPLE WILL
NOT BE GIVEN TARIFF WAIVER OR
RELIEF FOR MAX PRO PARTS THAT
ARE MADE IN CHINA.
MAKE THEM IN THE USA, NO TARIFFS
MAKE THEM IN THE USA, NO TARIFF"
SO HERE FOR REACTION WE HAVE
MOBILE NATION'S MANAGING EDITOR
DERRICK KESSLER, ALONG WITH WALL
STREET JOURNAL REPORTER, DAN.
LET'S START WITH GOOGLE BECAUSE
THERE'S MORE NEWS GIVEN THAT WE
HAD THE TRUMP TWEET ALSO PRETTY
GOOD EARNINGS AND A $25 BILLION
BUYBACK IN SHARES AS WELL, SO
GOOGLE, I MEAN, IT DOESN'T SEEM
LIKE THE STOCK IS TRADING ANY OF
THESE CONCERNS ABOUT A POSSIBLE
BREAKUP IN ANTI-TRUST REVIEW.
>> NO, I MEAN, GOOGLE IS IN A
REALLY GOOD POSITION AND THEY'VE
HAD A LOT OF WORK THEY'VE PUT
INTO SORT OF INSULATE THEMSELVES
AS MUCH AS THEY CAN ON THE
ANTI-TRUST SIDE, ALTHOUGH THERE
ARE STILL CONCERNS THERE,
BECAUSE THEY ARE VERY POWERFUL
WHEN IT COMES TO THEIR PRESENCE
ON THE WEB.
THEY ARE SYNONYMOUS WITH SEARCH
NOW DAYS AND THEIR BUSINESS IS
ENTIRELY DRIVEN BY ADVERTISING.
THERE ARE THOSE ANTI-TRUST
CONCERNS THEY SHOULD HAVE BUT
THEY AREN'T PRICED INTO THE
STOCK BECAUSE WHAT ARE YOU GOING
TO DO IF YOU TRY TO BREAK UP ANY
ONE PART OF THE BUSINESS
THAT DOESN'T WORK ANY MORE.
>> SO YOU DON'T THINK A BREAKUP
IS IN THE CARDS FROM
GOOGLE IS WHAT I'M HEARING FROM
YOU?
>> NO, IT SEEMS UNLIKELY TO ME.
LET'S TALK ABOUT APPLE BECAUSE
THE WALL STREET JOURNAL IS THE
ONE THAT FIRST REPORTED THEY
WILL SHIFT PRODUCTION OF THE MAC
BOOK PRO OVER TO CHINA AND
NOW APPLE I'VE BEEN IN CONTACT
WITH THEM.
THEY HAVEN'T ACTUALLY CONFIRMED
THIS NEWS BUT THIS IS NOT A BIG
REVENUE DRIVER FOR APPLE, SO
WHAT IF THIS SPECIALIZED LAPTOP
GOES TO CHINA.
IT DOESN'T MEAN THAT MANY JOBS
ESPECIALLY WHEN THEY BRING BACK
BILLIONS OF DOLLARS HERE.
>> THAT'S EXACTLY RIGHT, AND
THIS IS ALSO NOT A NEW CRITICISM
FROM THE PRESIDENT TOWARDS APPLE
ABOUT THE PRODUCTION THAT THEY
HAVE OFFSHORE, MOST OF THEIR
PRODUCTS ARE CREATED OFFSHORE,
AND THIS IS AN ENORMOUS SUPPLY
CHAIN, WE'RE TALKING ABOUT
HUNDREDS OF FACTORIES FOR NOT
ONLY ASSEMBLY OF THE PRODUCTS
BUT MAKING COMPONENTS.
ALL THAT COULDN'T MOVE TO THE
U.S. IN ANY KIND OF SHORT-TERM
OR EVEN MEDIUM TERM EVEN IF
APPLE WANTED TO DO THAT SO I
DON'T SEE THAT REALLY HAPPENING
AND THE MAC BOOK ITSELF IF IT
GETS TARIFF, YOU IF THE PRICE
GOES UP WITH TARIFFS PROBABLY
THAT'S AN AUDIENCE THAT'S LITTLE
LESS PRICE SENSITIVE.
WHAT IS A MORE INTERESTING
QUESTION TO ME IS THAT WHAT IF
THE NEXT, THE UPCOMING IPHONE
THIS YEAR, IF THOSE PRICES GO UP
DUE TO TARIFFS IT'S ALREADY
EXPECTED TO BE A WEAK YEAR FOR
IPHONE SALES DOES APPLE PASS
THAT PRICE THROUGH TO CUSTOMERS
OR NOT.
WE DON'T KNOW THE ANSWER TO THAT
YET BUT THAT'LL BE A MORE
IMPACTFUL QUESTION.
>> HOW MUCH MORE CAN THEY BOOST
THE PRICES, IT'S ALREADY AT FOUR
DIGITS MY GOODNESS SO DEREK
LET'S GET BACK TO YOU BECAUSE I
WANT TO TALK ABOUT AMAZON AS
WELL AND ADMINISTRATIONS BROKE
THEIR STREAK OF RECORD PROFITS
AND ARE WE BACK TO THOSE YEARS
WHEN AMAZON IS REINVESTING BACK
INTO ITS BUSINESS AND DOES THAT
MAKE THE STOCK A $2,000
VALUATION?
>> THAT, YOU ARE RIGHT THAT
THEY ARE GOING BACK INTO INVEST
ING IN THEIR BUSINESS.
THEY JUST ANNOUNCED THEY'RE
INVESTING $800 MILLION INTO
IMPROVING THEIR DELIVERY
INFRASTRUCTURE BECAUSE IT TURNS
OUT THAT THE TWO-DAY PRIME
DELIVERY THEY HAD ISN'T MUCH OF
A DIFFERENTIATOR ANY MORE.
ALL OF THE LARGER COMPETITORS
ARE OFFERING THAT NOW SO THEY
NEED TO AMP IT UP AND THAT MEANS
ONE-DAY DELIVERY WHICH MEANS
MASSIVE NEW INFRASTRUCTURE
INVESTMENT IN THE FORM OF NEW
WAREHOUSES AND TECHNOLOGY AND
THE DELIVERY INFRASTRUCTURE TO
HANDLE ALL OF THAT, AND THAT'S
GOING TO COST THEM A LOT OF
MONEY IN THE SHORT-TERM AND IN
THE LONG TERM.
THE QUESTION IS WHETHER THAT
TRANSLATES INTO MORE SALES AND
MORE PRIME CUSTOMERS, BECAUSE
THAT'S A VERY LARGE REVENUE
DRIVER FOR THEM.
AS FOR THE STOCK PRICE, I MEAN,
IT'S ALL A QUESTION OF WHAT THE
SHAREHOLDERS THINK IT'S WORTH.
>> RIGHT WELL THE SHAREHOLDERS
THINK IT'S WORTH A LOT AND SO DO
THE ANALYSTS.
DAN LET'S JUST QUICKLY THINK
ABOUT FACEBOOK BECAUSE WE JUST
GOT THIS TWEET FROM PRESIDENT
TRUMP ABOUT MATCHING THE FRANCE
DIGITAL TAX WHICH NOTABLY BY THE
WAY EFFECTS FACEBOOK, I THINK
THAT IT'S RETROACTIVE AND IS AT
2% OF THEIR REVENUES THAT THEY
HAVE MADE IN THE COUNTRY AND
DESPITE THE FACT THAT FACEBOOK
HAS PAID A $5 BILLION FTC FINE,
LOOK AT THE STOCK THIS WEEK.
I MEAN, EARNINGS WERE STELLAR.
THE STOCK IS GOING NOWHERE BUT
UP, IT SEEMS.
>> YEAH, I THINK FACEBOOK
INVESTORS HAVE BEEN PRETTY
RESILIENT TO ALL OF THE NEGATIVE
HEADLINES THAT HAVE GONE ON.
THIS HAS BEEN MORE THAN A YEAR
WHERE YOU'VE HAD HARDLY A WEEK
GOES BY WITHOUT SOME CRITICAL
STORY, OR PROMISING A HEARING OR
SOMETHING, AND SO I THINK FOR
FACEBOOK INVESTORS THEY TEND TO
LOOK AT HOW DOES THIS BUSINESS
ACTUALLY PERFORM AND ITS BEEN
VERY RESILIENT.
THE ADVERTISED REVENUES KEEP
GOING UP USERS KEEP COMING IN.
I DON'T THINK THE BUSINESS IS
FOOL PROOF IN THIS RESPECT.
THEY HAVE TO SPEND A LOT MORE IN
COST, I THINK, REFLECT THE
REALITIES OF RUNNING THE
BUSINESS WITH A LOT MORE
SCRUTINY, BUT IT'S STILL VERY
PROFITABLE BUSINESS AND I THINK
INVESTORS TEND TO KEY TOWARDS
THAT MORE THAN THESE HARD-TO-
VALUE TYPES OF RISKS OF
POTENTIAL LAWS THAT MAY OR MAY
NOT COME AROUND.
>> ONE MORE QUESTION DERRICK
LET'S TALK ABOUT TWITTER BECAUSE
I WAS SO SURPRISED BY THE NUMBER
OF USERS FIRST OF ALL THAT ARE
STICKING WITH TWITTER.
IN FACT I THINK WE SAW A RECORD
NUMBER DAILY ACTIVES WENT UP,
AND WHAT DID YOU SAY, DERRICK,
THAT SOMEONE SAID THE PRESIDENT,
PRESIDENT TRUMP HIMSELF HAS
SAVED THE SOCIAL MEDIA SITE
SINGLE HANDEDLY.
>> I WOULDN'T BE SURPRISED IF
WE COULD ATTRIBUTE A LARGE
PORTION OF TWITTER'S RECENT
SUCCESS TO HIS PRESENCE ON THERE
AND A LOT OF CELEBRITIES AND
POLITICIANS . ITS BEEN
ESSENTIALLY THEIR OWN PERSONAL P
R OUTLETS.
THEY CAN GO ON AND TWEET
WHATEVER THEY WANT AND THEY
DON'T HAVE TO GO THROUGH ANY
SORT OF OFFICIAL CHANNELS OR GET
PRESS RELEASES, THEY CAN JUST
PUT IT OUT ON TWITTER AND GET
DIRECTLY INTO PEOPLE WHO ARE
INTERESTED IN FOLLOWING THEM,
AND THEN EVENTUALLY IT GETS
PICKED UP ON THE NEWS BY ALL OF