Protesting facebooks failure to address the vast proliferation of hate on its platform. Facebook responding saying it will change policies to prohibit hate speech. The fallout was felt far and wide across the tech sector. What is the impact, guy . These are hand full of companies but has the levee broken a little led zeppelin way to go with the zep reference right at the top the day trade, now its a lot bigger than that and i absolutely think its a big deal facebook is so far behind the curve. They are zigging when they need to be zagging. They need an emergency meeting because as we said three nights a ago, those Companies Might be the first and now last hershey, prok tits showing a l things going on. Facebook acted as a monopoly for a long time. They never had a focus on these things now when they have to focus on it, they are sort of dammed if they do and dammed if they dont. Advertisers had to accept whatever it was facebook put out there. I really commend verizon, hersheys coming in not just folks at first it seemed like it was a bizarre collection of companies, Great Companies but seemed you had to eat granola and the grateful dead to use facebook i think very interesting to see the conditionality of what these advertisers put out there and in fact, until a change so i believe they said not until the end of year and not just one month or a show of force or slap on the wrist thats critical. Facebook had to respond and i believe they responded to say they are adjusting policies and arent necessarily doing to let, i believe, unworthy news pass without a prompt this is something the market is wait and see mode but very important for the market, especially when you consider mega cap tech is a dominant thing but for facebook this does not end monday morning. The paradigm is facebook is in control, there is nowhere else to go and advertiseders will go whether they like it or not. Thats helped them and the stock rises. Has that all changed with this yeah, it does appear to be that way i mean you asked has the levee broken i think it has other companies have to go along and do it. I think this changes their Business Model drastically they have been a platform. They have not been a newspaper or journalist. They have been agnostic to what is on their platform and thats part of the Business Model thats how they can scale. Thats how they are able to grow so big but now they have to Pay Attention to that and remember, they dont have anybody necessarily inside the company thats probably equipped to do this i agree. This is not a oneday problem. This is a longer term problem where they have to revamp their business and secondarily, if we look at tech as the big picture, you know, nasdaq was up 10, 12 for the year and thats because there is growth there. If there is going to be if there is not going to be growth there anymore if your revenues are declining because adverti r advertisers are pulling out, that questions the nasdaq valuations were laughing not at you b. K. Because apparently the dogs were let out at guys home russell and flip and whatever other dog is there. Rocky. Not the first time dogs are barking at me. No, because they heard the great song off led zeppelin as our producing team is about to play thats all . There it is good stuff. For your pleasure on a friday evening. Nice. Its the great im sure gone paul jones just crushing it right there, mel. You know what else is crushing it market calls are about to be crushing it, tim. Well, definitely and its just great because we know jimmy paige and mr. Plant are big, big fans of fast money so nice we can do this on a friday night. Are they mr. Led and mr. Zeppelin just kickidding, moving on on this broke only a hand full of people acted. One of the disappointing parts about this with these advertisers that made announcements, how quick they were to say they would likely come back in august. What that means to me is they are making a statement they are showing some form of support around the topic but ultimately, they are going to embrace facebook as a platform. Gene is back. Hes changed his tune since then and a lot has happened why do you say the walls are now closing in on facebook mel, i think there are two waves coming at the company. The first is what were dealing with, some of the hate speech on the platform and im surprised how quickly facebook responded to boycotts. I think that they are working. The announcement today that zuckerberg made is hes had a lot of pressure to do something over the last three weeks, and now since advertisers moved, big advertisers have come in, hes making changes thats one piece to it i suspect some advertisers by these changes that have been made today, announced today will return to facebook and advertising on facebook again. I think others will want to see more i think of this as wave one. This is a small reoccurring wave that will be a head wind to their business and create anxiety for investors. There is a bigger wave, a much larger picture if you look back where facebook and twitter have come from, when they originally started, they were platforms that didnt have influence. Now they each have significant reach, global reach and because of that, they are reaching a different standard and ultimately, the second wave, the one that is more potent will be around what will happen with the regulation of facebook and twitter as publishers, and what i think about this, this is not a question about the left or right. Both parties are going to recognize these platforms are very different than they were ten years ago, and so i see this next wave as a wave that is going to create some uncertainty for investors on top of the first wave that were dealing with right now when you put all of this together, i think that it is a company that will struggle to regain its multiple. This is an advertising business. They need to enrich peoples lives and that unfortunately wont work they are doing incredible things around the future of work and Virtual Reality but this will be a challenge. Sounds like you think the best days for facebook in term of valuation are behind it does that input to valuation discounts for the other social media platforms . They face many of the same issues, if not all of the same issues i think it will impact all of both twitter and facebook specifically i think less so google but i do think this other factor around recognizing these are massive platforms and they need to be recognized as publishers and regulated, i think that will ultimately weigh on facebooks multiple i was encouraged at the end of zuckerbergs post he mentioned he wants facebook to be a force of good in the world. I believe that i believe he truly wants to make facebook a force of good unfortunately, facebook is a pit bull and a pit bull, it is difficult to convert to a lap dog. I think that ultimately, investors will discount facebooks multiple because of that. Gene, always great to speak with you thank you. Thank you. Gene of luke ventures tim, you had quite a reaction to what gene said. Yeah, look, im not its not at gene. Im not adding gene. This is ultimately i heard this from facebook before and i think gene pointed out the pit bull is a good term. Facebook has not led business interest get in the way of po policie policies they are doing it now. It a bold move by verizon. Prok t proker and gamble are making a stand and adds value to what theyre doing. This is addition by subtraction. I think there is many digital platforms from which to invest behind content in this world and i know weve talked about the strangle hold that facebook has but really, i mean, think of every Major Company unleashing a digital platform think of the sites think of the new kind of media sites and the twitches of the world. So i dont think people are beholding to facebook. Yes, its the biggest platform when the biggest advertisers in the world and brand influencerss make the statement, its about time. They said well donate this money to these causes like the naacp and if day dont boycott when the naacp says we want to boycott facebook, they risk looking like big hypocrites. Its not walking the walk. There is that issue. In terms of advertisers, guy, on top of the waves gene is talking about, there is a current wave that hes dealing with, a cut back in advertising. Big advertisers may simply use this opportunity as saying i want to reset what we spend on social media platforms times are not great for us right now and we want to turn that spending back and now is the time to do it and small and mediumsized businesses feeling so much pain, they wont be there in such force, either. 100 . Could not agree with you more. If you strap a lie detector on a lot of these Big Companies they mentioned, they were advertisin through facebook because they had to not necessarily because they wanted to. They had to because facebook was the only game in town. They are no longer the only game in town and now they have problems and again, i commend these companies absolutely the fact earlier this week we heard the first three Companies Say it was for the month of july verizon open ended it. Youre talking about hershey, its going to continue over the weekend. It not going to stop facebook has a risk. What we said for quite sometime is i dont like the platform there is nothing really remarkable that i enjoy about facebook but advertisers have nowhere to go and people arent leaving the site well, advertisers are leaving and the next shoe may be people saying i dont need facebook in my life anymore. Thats a problem. Lets turn to story number two. The reopening roll back. America at a cross roads as coronavirus cases sore texas is slowing reopening plans and investors are noticing stocks plunging on fears a bigger shutdown could crush hopes of a full economic recoverykelly, rally off the boo is what we worked on what does that mean . Its a big concern. Ive been a bit surprised how quickly america has reopened you know, certainly being in the tristate area during this pandemic, you have kind of sense that everything is going to stay closed for awhile, but when you get outside of the tristate area, all of a sudden people are getting on planes. Look at American Airlines today. They are seeing demand that surprised me a bit, that being said, with this new outbreak that were seeing, kind of in the south and southwest, youre already seeing behavior change a bit so you look at some of the tom tom data from houston. Youre seeing traffic data slowly starting to go down you look at open table data from houston, dallas, austin, phoenix, youre seeing over the last week open table seated diners data year over year change going down again. So they have already been closing again. So if im going to pull something positive out of this, if people change their behavior, then you should start to see some of the infections go down, and that may be a positive thing. But in the meantime, the market is going to price in kind of the worstcase scenario. We close down again and we dont know what were going to reopen until we get a vaccine. Yeah, tim well, i think, you know, the Magic Kingdom this week was really important and i would point to in terms of things we should be watching when disney says its going to be really time to open and theyre comfortable to do it and an ability to keep people safe and i think disney is one of the most conservative companies in the world, one of the most brand Conscious Companies in the world and cares about kups mecustomer workers, therefore thats critical when we saw disney rollback the first time, its part of the delu deluge jobless claims were not terribly good i realize that the growth or the decrease really in the additional joblessness is something to be somewhat encouraged by so its a glass full on the glass half empty but this is not a good reminder. 20 Million People continue to file for unemployment. I dont see how that gets better in the short to medium term. Much of the country is rolling back what they never did in the first place. This may still be phase one of the disease for a lot of people. So i think it was an important week for that. Were learning the hard way and said before this virus doesnt care if you want to go to see disneyworld or get on a plane and go out there to colorado where b. K. Spends a lot of his time. No interest. It doesnt care if your bullish or bearish in the stock market it is what it is we rushed this back. I understand the reasons behind it its problematic and you have to ask yourself, where do you get back into stocks disney spent a lot of time around 102, which is about 7 from where we are now. Thats a place i would begin to look there is no compelling reason in my opinion to believe that somehow magically were going to reopen to where we were in january, and thats something weve been saying for quite sometime. That was going to be my next question you know, in terms of getting in on better levels, how much better is this level going to get, brian kelly in other words, would we retest march 23rd or is march 23rd a different ball game because we were nowhere near a vaccine and now we can see a finish line sometime in the beginning of next year. Yeah, i think there is an argument to be made. We had this tugofwar in the market between can you pump enough money into the economy via fiscal and monetary stimulus to get us through the valley and to the point where we get to a vaccine . So from march 23rd to now, were several months closer to it. There has been some progress on that i think the market is going to be looking and saying there is going to be some kind of floor under this at some point with fiscal stimulus, the election coming up as i mentioned before. I think this election will be about which politician and which party can put the most money in peoples Bank Accounts viewed in that light, maybe march 23rd isnt in the picture anymore. That being said, if we if people just completely close down in the entire country closed down again and again, europe today saying u. S. Citizens may not be able to go there, all those things actually would have a an effect on the economy. I dont care how much you print. Its not going to help one bit. So it may be and there may be more if im talking about the fed and yet, theyre the one that got us out of march i dont think were going back there. As long as the fed is where they are and pretty much said well do what it takes, there is a lot of it this week. Ive had a fair amount i dont love what were doing but youre asking about the market and levels. One of the reasons we got to the middle of march in those levels, pick your bottoms somewhere on 2090 one sunday night was because of where we kacame from. Seven or eight days ago back up near those highs, we got to a place that was over done but we werent as over done and i think the context of the market in with a disease where there is at least much more education, much more awareness about a timeline and how to control the impact of the disease and Federal Reserve says i dont think we get anywhere near march lows that may be a difficult thing to say with a bad week behind us but we stay there. The longer reclosing and a rollback of the reopenings, the more it could become a solvent issue as ocho ed pposed to liqu. It fed cannot help with what it does, guy. I dont want to throw red meat into a bear den because i feel like thats what im doing tossing it to you. That seems like it could be a problem at some point. They can only do so much and weav weve talked about the fed being at the point of diminishing returns. You bring up a very interesting point and something discussed without question they can control a lot of things thats one thing they cant control. Great job. Thats your education number one and b. K. What i do, thank you. And a wonderful word because as you know, melissa. Five sill sylabols. Can you spell it . No, ill use it in a tweet in the break. Were just Getting Started on fast money five. Were tackling other stories including a possible fumble for lle football the special edition of fast money will be back right after this vo at audi, we design cars that exhilarate with versatility, whether on the track, or the everyday drive. Today, that philosophy extends to how we connect with you. We call it, audi at your door. Whether a remote test drive, shopping, tradein, or even service pickup, audi at your door can do this and more at participating dealers. The premium audi dealership experience, on your terms. Audi at your door. Yeah yyeah yeah hey, hey can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Welcome back to this special edition of fast money. Three down, two to go. Got to take a fast break gap is teaming up with kanye west this got us thinking, what other struggling companies could benefit from serious star power . Guy, what do you think i have a great idea, mel. I know youre a huge nba fan. Huge. Vince carter retired after 2 the 2 ye2 years in the nba you may recall in the 2000 olympics he dunked over frederick weiss. He was the 15th pick in the 1999 draft by the New York Knicks never played a minute but he was posterized by vince carter why do i bring it up and because air france should hire vince carter and the ad should be air france dominating our air space for 20 years and vince carder is your guy brilliant. Thats a long story to get to that. Deep end of pool, guy deep end of the pool. I dont know how you follow that, b. K. Go ahead i felt like i was on a flight to paris. Groggy stay in the usa and listen, shaquille oneal, probably one of the best secelebrity Business People we have in this country and a struggling brand out there Harley Davidson. Theyre having a tough time because baby boomers bought their harleys or hogs. Shaq goes into Harley Davidson you see it shaquille, harley, thats the pla play. I do love the hog i love shaquille peloton still could get a shot in the arm and a lot of competition coming down and they get it they get it from Lance Armstrong. What . The guy Everybody Loves to hate put on those spandex that youre biking to beat Lance Armstrong this es manpn documentary on les doesnt make you love him more i dont let my kids use that word around the use. Lance armstrong takes peloton to a new level. Go get your Lance Armstrong race on and crush him