MARINES.
THANKS SO MUCH.
>>> GUYS, I WANT YOU TO LISTEN
TO WHAT THIS SILICON VALLEY
LEADER SAID.
>> I THINK U.S. TECH COMPANIES
WHO SAY WE WILL NOT SUPPORT THE
U.S. MILITARY, WE WILL NOT WORK
ON ANY TECHNOLOGY THAT HELPS OUR
MILITARY, BUT YET GOES INTO
CHINA AND FACILITATES THE
CHINESE GOVERNMENT SURVEILLING
THEIR PEOPLE, IS PRETTY
SHOCKING.
I THINK IT'S VERY IMPORTANT THAT
U.S. TECHNOLOGY COMPANIES
SUPPORT OUR COUNTRY, OUR
GOVERNMENT.
LIZ: THAT'S A VERY RARE
INTERVIEW MARIA LANDED HERE.
ORACLE COFOUNDER LARRY ELLISON
THROWING JABS AT GOOGLE OVER ITS
CONTROVERSIAL DECISION TO PULL
OUT OF ITS CONTRACT RUNNING WITH
THE U.S. DEPARTMENT OF DEFENSE
WHILE AT THE SAME TIME,
EXPANDING BUSINESS IN CHINA.
NOW, THAT DECISION WAS MADE IN
SHARP CONTRAST WITH AMAZON'S
DECISION TO DO BUSINESS WITH THE
U.S. MILITARY.
BUT IT WAS JUST LAST WEEK THAT
WE HAD THIS MAN ON OUR SHOW.
SILICON VALLEY HEAVYWEIGHT T.J.
RODGERS.
THE COMPANY HE FOUNDED, CYPRESS
SEMICONDUCTOR, HAD MANY
CONTRACTS WITH THE U.S.
DEPARTMENT OF DEFENSE AND YET,
THE FIERCELY INDEPENDENT LEADER
SAID NEITHER COMPANY, GOOGLE OR
AMAZON, SHOULD BE A PARIAH.
>> THAT WAS OUR POSITION.
YOU WANT TO GO BACK TO BASIC
PRINCIPLES, I BELIEVE THERE
OUGHT TO BE A STRONG DIVISION
BETWEEN CORPORATE AMERICA AND
THE GOVERNMENT.
I DON'T THINK COMPANIES SHOULD
BE POLITICIZING WHAT THEY DO ONE
WAY OR THE OTHER.
INSTEAD OF PITTING THE TWO CEOs
AGAINST EACH OTHER, THEY HAVE
OFFERED US TWO MODELS, TWO
DIFFERENT STOCKS TO INVEST IN,
TWO VERY SUCCESSFUL COMPANIES,
AMERICA AND AMERICANS WILL BOTH
BE BETTER BECAUSE OF BOTH
COMPANIES.
AND I THINK THIS IS A CHOICE
THAT INDIVIDUAL INVESTORS SHOULD
BE MAKING FOR THEMSELVES.
LIZ: THAT, MY BRILLIANT FATHER
WOULD SAY, IS YOUR DOLLAR VOTE.
YOU CAN PICK ONE OR THE OTHER
AND VOTE WITH HOW YOU FEEL.
LET'S BRING IN INDEPENDENT TECH
EXPERT AND JOURNALIST LANCE
YULINOV ALONG WITH DANIEL FLAK.
DANIEL, TO YOU FIRST.
YOU PICK ANALOGS AND REJECT TECH
STOCKS EVERY MINUTE OF THE DAY.
HAVE YOU BEGUN TO SEE ANY IMPACT
ON GOOGLE OR AMAZON REGARDING
THIS DEPARTMENT OF DEFENSE ISSUE
OR THE PENTAGON CONTRACT?
>> SO FAR, WE HAVE NOT.
WE ARE WATCHING THESE COMPANIES
CLOSELY AND CERTAINLY NOT EVERY
DECISION THAT THE MANAGEMENT
TEAMS MAKE WILL NECESSARILY BE
THE CORRECT ONE, BUT STEPPING
BACK, WHEN WE LOOK AT THE LARGER
TRENDS AT WORK HERE, THE MOVE TO
MOBILE, TO CLOUD, REALLY THE
CREATION OF DIGITAL ASSETS, BOTH
AMAZON AND GOOGLE FOR DIFFERENT
REASONS ARE REALLY AT THE
FOREFRONT OF THESE TRENDS.
SO WHEN WE LOOK, FOR EXAMPLE, AT
AMAZON BUILDING UP AN E-COMMERCE
PLATFORM, THEIR AMAZON WEB
SERVICES BUSINESS, A GROWING
ADVERTISING BUSINESS, THERE'S A
LOT WE LIKE.
WHILE GOOGLE, SURE, THERE'S
GOING TO REMAIN CONTROVERSY IN
CERTAIN AREAS, AS THERE IS WITH
AMAZON AND ALL OF THESE GIANTS,
BUT WE LIKE WHAT WE'RE SEEING
WITH THE CORE SEARCH BUSINESS.
WE LIKE WHAT WE'RE SEEING WITH
YOUTUBE.
THEY HAVE BEEN BUILDING A CLOUD
PLATFORM WHERE WE THINK THEY
WILL CONTINUE TO CREATE A LOT OF
VALUE.
AS A LONGER TERM INVESTOR, WE
CONTINUE TO LIKE BOTH OF THESE
COMPANIES.
LIZ: THIS IS INTERESTING, LANCE,
BECAUSE YOU HAVE DANIEL SAYING
LET'S GO ALL BUSINESS, LET'S
JUST LOOK AT WHO HAS THAT
BUSINESS ADVANTAGE.
HOWEVER, I WOULD ALSO SAY THAT
MAYBE THIS CONVERSATION ABOUT
PENTAGON CONTRACTS TAKES ON
ADDED SIGNIFICANCE IN LIGHT OF
THE FACT THAT CHINA AND RUSSIA
HAVE TRIED TO MEDDLE IN OUR
ELECTIONS.
THERE'S A LOT GOING ON.
THEY FOUND A TINY LITTLE
RICE-SIZED CHIP, SPY CHIPS, IN
THE SERVERS FOR SOME OF THESE
COMPANIES.
DOES THAT AFFECT ANY KIND OF,
WHAT YOU'RE HEARING FROM WALL
STREET OR MAIN STREET, ABOUT
WHETHER TO BUY ONE OR THE OTHER
STOCK?
>> NO, NOT NECESSARILY.
BUT I JUST WOULD SAY ABOUT THAT
RICE-SIZED CHIP, OBVIOUSLY
APPLE, AMAZON AND OTHERS HAVE
SAID BASICALLY IT'S A FALSE
STORY.
WE ARE STILL WAITING TO FIND OUT
THE TRUTH OF THAT.
BUT IT'S ABSOLUTELY TRUE THAT
THESE PEOPLE ARE TRYING TO
INFILTRATE OUR BUSINESS AND IT
IS A CONCERN, AND YOU HAVE TO
LOOK AT GOOGLE'S DECISION AND
AMAZON'S DECISION AND SAY WELL,
IF A COMPANY LIKE GOOGLE DECIDES
NOT TO SELL ANYTHING TO THE
DEFENSE DEPARTMENT, OR NOT TO
SELL ANYTHING TO THE GOVERNMENT,
THE GOVERNMENT'S GOING TO FIND
THAT TECHNOLOGY ELSEWHERE AND
APPARENTLY, IT'S GOING TO FIND
IT FROM AMAZON.
DOES THIS LIKE AFFECT THEIR
POSITION?
GOOGLE OR ALPHABET IS A MASSIVE
COMPANY WITH SO MANY DIFFERENT
BETS AND MAKING MONEY OBVIOUSLY
MOSTLY THROUGH ADVERTISING, AND
THROUGH OTHER AREAS SO I DON'T
THINK IT'S GOING TO HAVE A MAJOR
IMPACT ON IT AT ALL.
SAME THING FOR AMAZON.
I DON'T THINK IT'S A MAJOR PART
OF THEIR BUSINESS, BUT IT IS THE
KIND OF THING THAT EVERYBODY
LOOKS AT AND GOES WELL, WAIT A
MINUTE, WHO'S MAKING THE RIGHT
CHOICE.
LIZ: WELL, I WILL TELL YOU, WE
DO MARKET CHECK RIGHT HERE.
WE HAVE THE DOW JONES
INDUSTRIALS UP 485 POINTS.
AMAZON'S NOT YET, I SAY NOT YET,
A DOW COMPONENT BUT SOMETHING
TELLS ME THAT IT AS A RETAILER,
IT'S REALLY TAKING ON WALMART
WHICH IS A DOW COMPONENT, MIGHT
AT SOME POINT JOIN THE DOW.
WHAT DO I KNOW ABOUT THAT.
BUT LET ME DOVETAIL HERE BECAUSE
AMAZON IS COMING OUT WITH
EARNINGS, BUT SO IS INTEL.
SNAP IS COMING OUT.
WHO HAS THE POTENTIAL TO DAZZLE
AFTER THE BELL?
>> WE THINK THAT AMAZON IS GOING
TO HAVE STRONG RESULTS, COULD
SEE UPSIDE TO EXPECTATIONS.
WE ARE ALSO EXPECTING STRONG
RESULTS FROM ALPHABET.
I THINK WHEN WE LOOK ACROSS THE
CONTINUUM, WHAT WE ARE FOCUSED
ON IS TRYING TO UNDERSTAND WHAT
IS CHANGING OR PROGRESSING WITH
THE FUNDAMENTAL DRIVERS OF THESE
COMPANIES.
YOU MENTIONED INTEL.
THE COMPANY OBVIOUSLY HAS --
THEY HAVE HAD SOME COMPONENT
SHORTAGES WHICH MAY IMPACT A
LITTLE BIT OF THEIR LOWER END PC
NUMBERS.
THERE'S OBVIOUSLY A SEARCH FOR A
NEW CEO THERE.
WHEN WE LOOK AT SOME OF THE
MEDIA PROPERTIES, SOCIAL MEDIA
PROPERTIES LIKE SNAPCHAT, THEY
ARE REALLY TRYING TO REFOCUS
THEIR BUSINESS IN SOME RESPECT
AND TRY TO FIGURE OUT HOW BEST
TO ENGAGE WITH THEIR USERS AND
THEY ALSO HAVE SOME EXECUTION
CHALLENGES WHICH THEY ARE
WORKING ON IN TERMS OF THEIR
USER INTERFACE AND THE APP.
LIZ: THAT BRINGS ME TO YOU,
LANCE.
IS SNAPCHAT THE TWITTER OF
TODAY?
TWITTER HAS FOUND ITS FOOTING,
OKAY?
THEY HAVE SWUNG TO
PROFITABILITY.
THEY WERE ABLE TO SHOW BETTER AD
SALES.
THEY ARE LOOKING A LOT STRONGER.
SNAP IS STILL REALLY KIND OF
MUDDLING ALONG.
IT IS YOUNG IN ITS LIFE, LET'S
GIVE IT THAT, BUT WHAT DO YOU
THINK ABOUT SNAPCHAT?
>> I THINK IT'S FACING
SIGNIFICANT CHALLENGES.
IT HAS A TREMENDOUS COMPETITOR
IN FACEBOOK WHICH BASICALLY
CREATED INSTAGRAM STORIES, WHICH
REPLICATES WHAT SNAPCHAT DID.
SNAP IS TRYING TO DO THINGS LIKE
GROUP VIDEO AND ADDING MORE A.R.
FEATURES BUT THEY STRUGGLED
BECAUSE THEIR CORE USER BASE ARE
TEENS AND TEENS ARE NOT BUYERS.
THEY ARE NOT THE PEOPLE WHO
SPEND MONEY ON THINGS THAT
ADVERTISERS TRY AND SELL PEOPLE
ON.
AND THEY STRUGGLE TO ATTRACT THE
ADULTS THAT DO SPEND THE MONEY.
WORSE YET, THE LAST TIME THEY
HAD EARNINGS, THEY SHOWED THAT
THEIR USER NUMBERS HAD GONE
DOWN.
THAT IS A VERY CONCERNING TREND
AND IF YOU SEE THAT HAPPEN
AGAIN, THAT IS, I THINK, A BIG
PROBLEM FOR SNAP.
LIZ: DOES ANYBODY SEE A PROBLEM
FOR INTEL?
INTEL COMES OUT AFTER THE BELL.
IT IS HAVING A NICE MOVE OF MORE
THAN 5% TODAY, $44 AND CHANGE
FOR THE STOCK.
LEADERSHIP ISSUES.
DANIEL, I KNOW YOU LOOK AT THESE
THINGS, BUT YOU HAVE BRIAN
LEAVING IN A SCANDAL.
HE WAS FORCED OUT, BREAKING
RULES FROM THE COMPANY, THEN NOW
EVERYBODY IS WONDERING WHAT
REALLY HAPPENS HERE, BECAUSE IF
YOU LOOK AT A COMP CHART BETWEEN
INTEL AND ADVANCED MICRODEVICES,
AMD, I USED TO COVER THIS STOCK
15 YEARS AGO, IT WAS NOT DOING
WELL, IT IS KILLING IT.
WHAT DO YOU THINK?
IF YOU HAD TO PICK BETWEEN INTEL
AND AMD?
>> ACTUALLY, LIZ, WE SEE BETTER
OPPORTUNITY IN OTHER NAMES IN
THE CHIP SECTOR.
LIZ: WHICH ONE?
>> WE LIKE TEXAS INSTRUMENTS.
I KNOW THE MARKET'S DISAPPOINTED
WITH SOME OF THEIR OUTLOOK, BUT
THEY HAVE GOOD EXPOSURE TO KEY
AREAS WITHIN INDUSTRIAL AND
AUTOMOTIVE AND SO WHEN YOU THINK
ABOUT WHAT'S GOING ON IN THOSE
INDUSTRIES, YOU HAVE MORE
INTELLIGENCE, MORE SENSORS THAT
ARE FINDING THEIR WAY.
THERE'S THE SO-CALLED INTERNET
OF THINGS AND WE LOOK AT A
COMPANY LIKE TEXAS INSTRUMENTS,
DESPITE SOME OF THE MACRO
CONCERNS IT'S BEING VERY WELL
POSITIONED.
ANOTHER NAME WE LIKE IS ANALOG
DEVICES WHICH HAS KEY EXPOSURE
TO INDUSTRIAL, TO AUTOMOTIVE, TO
TELECOMMUNICATION, AND THEY TOO
ARE HELPING TO PROVIDE A LOT OF
THE BRAINS BEHIND THE BUILDOUT
OF NEXT GENERATION
INFRASTRUCTURE.
SO WE SEE OPPORTUNITIES WITHIN