With civil Rights Groups today to address the growing boycott the organizers of stop hate for profit calling the meeting a disappointment saying that Mark Zuckerberg and Cheryl Sandberg are not ready to address the hate on that platform and did not respond to demands of dozens of its largest advertisers the ncaa color of change, Antidefamation League and free press saying Mark Zuckerberg did not offer any tangible plans on how facebook will address the rampant discrimination and violent conspiracies on their platform the meeting that we just left was a disappointment facebook has had our demands in multiple ways and they showed up to the meeting expect an a for atte attending. Attending alone is not enough. Civil Rights Groups saying facebook did not address their list of demands, saying zuckerberg offered no automatic recourse for advertisers whose consent runs alongside hateful posts. They did not address why facebook recommends hateful groups and didnt address rampant disinformation and violent conspiracies we have reached out to facebook for comment. They say theyre working to get us a statement the company has said it does plan to release the results of its civil rights audit tomorrow morning. Melissa, thats something to watch. Julia, is there any sense from these groups that the boycott could be extended . It was for the month of july some advertisers have said through the end of the year. Are they going to formally call for an extended boycott in order to turn up the heat on facebook . I think its still too early to say on that they said they were disappointed in this meeting. Its interesting that some advertisers are saying that theyre suspending advertising indefinitely some are doing it through the end of the year. The original call was for a monthlong pause some people said july would not be as impact fulful. I think it will be interesting to see how facebook responds now especially after those choice words from the organizers, if that perhaps pushes facebook to take more action but i think it will hinge on the brands and how they feel they want to respond to facebooks moves now. Julia, thank you. Lets get to the trade on Facebook Karen finerman, you have been a shareholder in facebook. The boycotts have gotten a lot of followers in terms of advertisers joining in what are you doing with your position now this morning i sold some calls, but im definitely still long i think the stock opened strongly maybe a little bit on the tiktok story. I actually thought they would have a more productive meeting than that. Ive got to think that the most disappointed are maybe the advertisers who really want to use facebook and really need some cover from the company to address some of their constituents who dont want them to use facebook until facebook talks the talk and walks the walk im a little bit concerned i still dont think its crazy expensive, though. Its imperative for so many advertisers. I think they will try to find a way around it. I feel like youre visiting Cambridge Analytica 2. 0. It sounds terrible it is terrible for a while then it sort of fades. Maybe the crescendo is july 27th, well see zuckerberg on the hill again i dont know im a little concerned i took a little money off the table. It seems that as long as these groups walk away disappointed with facebooks lack of response that advertisers have no choice but to continue their boycott at this point for fear of looking hypocritical you cant donate money to these groups and say thats not my problem anymore. Lets put in ads in august right the operative word coming out of that meeting was disappointed. I cant believe if youre an advertiser you get a lot of confidence based on that one word alone its fascinating facebook, when this started it was rei, north face and patagonia, i think one other advertiser on a tuesday. The stock was trading around 240. We had a whole conversation about it saying those companies are the first and wont be the last by monday the 29th, the stock traded down to 207 and reversed. That day we said, say what you want about facebook, but the stock seems impervious here. Big reversal, probably trades higher and tests those levels of 240 again. Here we are. I would say you have to sell it into earnings on the 29th. Now theyre in a nowin situation in my opinion into that hearing and into earnings at the end of the month. Taking profits at these levels based on that one word disappointing to me makes a lot of sense. They would have a lot of wood to chop, so to speak, to come up with a solution, something that would satisfy these groups and allow advertisers to come back in i think you hit it on the head how can they satisfy thats the problem theyre trying to navigate right now they dont want to be the arbiter of truth how do they satisfy both sides the answer is they cant, so they pigeon hole themselves into doing nothing. But i think if the groups that want them to do something could come up with something very tangible and say, look, these are the posts that we want you to remove and its truly nonarguable for facebook to defend it, then i think you have to do something. But i dont think were there yet. To guys point, the stock is bulletproof. I think youve got to stay on board. Its like whackamole. A group can come up with five things they dont want to see in ads and there are going to be five other things that pop up too. This has to be a framework that facebook can implement and thats a tricky thing to figure out by the next earnings call. I play what cckamole very unsuccessfully in my yard in actual life. Karens pointed out facebook has been doing this for two years, maybe four years she also discussed the valuation. Not expensive. Look at 2021 consensus is anywhere from from 1050 a share. 250 a share, traded 247 intraday today. We always talked about for the last four or five sessions until today was the nasdaqs absurd run. Facebook was up 11. 2 during that time. Facebook, no history of changing their policies for business relationships. Facebook clearly really no history of being necessarily brand friendly facebook was very early in terms of their ability to deliver ad targeting and the ability to really best position and give analytics on the ad portfolio that we know is the biggest in social media right now its very difficult. If anything, my tone last week was id be wary. I still would be wary, but its very clear facebook has a Business Model, has four Different Properties that are undermonetized. I think theres still a lot of value there. Gene, great to have you with us the last time we spoke about facebook it was on the heels of a lot of big brands joining in on this ad boycott now theres groups walking away from this meeting with zuckerberg disappointed. Is this problem much worse, in your view . It is i think it underscores the context of these three waves coming at the country and maybe even taking a step back. Why the meeting was a disappointment today is a good place to start facebook was well aware of the topics going into the meeting. The reason it did not peruroduce any substance, if it did, it would lure them into being a publisher and that brings with it regulation. Theres a second way this company is going to be hit the first wave is the boycott. I mentioned the second wave around potential regulation. The third is potentially antitrust, how it bundles its products for example, instagram would not be instagram if it wasnt for facebook when i think about the context of the news today what to me is most significant is reading between the lines. Facebook understands the amount of pressure on this company is hard to put adjectives around it but yet they dont make any moves. The reason is they understand the chess match that is being played here and what the long game is. They ultimately need to successfully navigate that so i think when you put all this together, its currently a 650 billion market cap its near its alltime high. It is a business that has one platform thats over half of its revenue, facebook, that is arguably toxic the second, instagram, which you could build businesses on top of it theres some good that comes along with that. When you put all those together its hard for me to envision a scenario where the stock continues to outperform. Gene, let me give you the fourth wave, potentially the fourth wave. Obviously esg investing really crippled a lot of these Energy Companies clearly at the wrong time in their history. Is there a chance that facebook with 220 etfs, 170 of which have facebook as one of their top 15 holdings if esg comes into the equation, how potentially damaging could that be to the stock it would be as damaging as being removed from the s p 500 so i think that it is material i think that risk is in fact a fourth wave and one that has rarely been enumerated in all these conversations, but is something that will become a bigger topic i can share this much, that internally as we think about our research and we think about the future and think about where facebook and social plays into it, that topic in terms of socially proper investing in particularly facebook and twitter has been an internal topic for us im sure that it is quietly going to emerge at that fourth wave gene, its karen. Let me ask you something given your hesitation and concerns about facebook, where do you think the stock should be trading . Im somewhat reluctant to put an actual target on it part of the reason is that its up to investors. Its not a convenient answer im an industry analyst, industry observer, longtime tech person, but i think that its hard for me to envision that with all these headwinds that the multiple continues to be where its at so, karen, unfortunately the best answer i can give you is at where it is today or lower in the future. Gene, great to speak with you. Thank you. Thank you i think thats a Fair Assessment from gene who is an observer from the industry and a longtime analyst in the space we are in an environment where big cap tech is in favor we just had an analyst note on tesla from barclays that said that the stock is fundamentally overvalued but he cant think of any reason why the shares wouldnt move higher from here were in that kind of market when it comes to some of these tech stocks. Im wondering if you think that facebook gets the benefit of that in terms of protecting the multiple it has right now. Yeah. Well, its clearly gotten the benefit of that until it doesnt. Thats not meant to be glib. This has nothing to do with apple the company. You go back three or four months ago when apple was trading at an alltime high of 323 it was announced on our show apple came out and said theyre having problems in china, which should have been a huge announcement that should have knocked the stock down 810 over the few days after. That monday the stock opened down i think 3. 54 . By tuesday of that week it was making a new alltime high my comment there was this passive investing looks past all those headlines. Thats any comment now this esg thing is going to catch on im glad gene spoke about it facebook really has to be concerned. To go back to my earlier point we had a huge bounce off of 207 right back to 240. I think you have to be taking money off the table. If you look at esg, it would get two dings. Its got a deal clash share structure and now on the social front it may not be perceived positively ever. The share structure is definitely not changing any time soon you hit upon it earlier. They have to come up with a construct that takes them out of the loop in some ways that can allow the parties, the boycotters to say, all right, theyre addressing it in a way that is acceptable to us now, thats a very difficult needle to thread but i think thats the way out for them. They knew what was going to happen in this meeting im surprised they didnt have something already they would have believed would have appeased the group that was disappointing. Right stocks tumbling today with all the major averages closing near their lows of the session, s p and nasdaq snapping a fiveday winning streak. First of all, banks have their hands tied with buybacks and dividends. Think about what this week is. Its a vacation week we had russell, we had rebalancing, we had options x. So when you look at the market as a whole, the market needs a little bit of a breather im looking at a chart of the s p. The 200day moving average is 3025 that would be a nice check back. If we check back to the 200day moving average, i think that would give the bears a little bit of solace. But i dont think were out of momentum just yet. I think you have to stay the path of the bull. This is a very small pullback of whats felt like a euphoric run. The nasdaq is still outperforming the s p. Put those numbers closer or above 22 outperformance year to date none of this is a major surprise we should have taken a breath. We have earnings next week First Quarter earnings, lets count how Many Companies pulled their guidance, lets count how Many Companies start to look to 2022 for normalized earnings its really the score sheet were going to put on companies now. I think investors are ready to be a little more aggressive and a little less forgiving. But we need to get through earnings again the top down has been dominated by fed and covid fax meets fatality, hospitalizations and where theres some improvement thats the story if you look at todays price action, it was very consistent with where weve been. Youve had technology and those names that are at least somehow linked to enterprise stay at home that are outperforming industrial bank, anything that resembles value has been underperforming. Youve seen wicked rotations during this postcovid or this current covid dynamic and i think we will again. But i think investors at this point, you know, lets look to next week. Were going to begin hearing from banks were going to begin hearing about loan provisions. Thats really important relative to the overall tone of how healthy the markets are. Our next guest is telling investors to price for a potentially cruel summer steve, great to have you with us thank you. What sort of pullback are you anticipating well, what im looking for is as you guys started to address, i think were looking at a lot of hurdles in july the problem that you have is Certain Industries are so far ahead of their trend lines even that theres a lot to overcome youre going to have pressure on cash flows next week as people pay their taxes. People had a very good 2019. They have to pay taxes on that now. That coincides with earnings week and expiration week theres a lot for the market to digest i think what were looking at here, when you look at indices like the nasdaq which are about 20 above their longer term moving averages, theres a lot of room for disappointment disappointment that youre forecasting is pretty steep. Youre saying 1520 decline on the nasdaq, a 15 pullback in the s p 500. This is all in your view within the summer well, its all possible this summer im talking about this as a risk of a pullback, not necessarily something thats going to happen imminently right now the momentum is so strong, its very hard to bet against that what i would be looking for is the potential that something could trigger this youve got taxes you have covid risk coming on. You have a fiscal cliff at the end of the month you have a fed that despite all the rhetoric about how accommodative they are, the fed Balance Sheet actually shrunk over the last three weeks. The fed have taken their foot off the accelerator. They havent put it on the brakes but this is all the stuff the market has to overcome we actually find out for the first time in a long time how these companies are doing. The reversal in the nasdaq today, i understand its one day. Weve seen these before. They turn out to be pretty much nothing. Anything in the reversal in the nasdaq today sort of stand out to you amazon was pretty interesting for me theres a lot in there, guy i mean, i think the fact that facebook outperformed through all this while tesla just remains immune from everything, thats got some risk in and of itself the problem that you have is a bigger sense of how relentless the flows are. Momentum, when it turns, its your friend on the way up but its nasty on the way down i dont necessarily know what that trigger is. Ive laid out the potential triggers any one could be the trigger what stands out to me was that nasdaq yououtperformed on the w down i think until and unless you start to see that pattern break, you could argue that the momentum play is still in effect. Thank you for joining us, steve. Thank you Steve Sosnick of interactive brokers. I would imagine were going to get no guidance again. Were not going to get guidance again the companies that can actually give you some visibility, they dont have to give you the numbers but they have to tell you whats going on with reopening. I think the markets are going to respond to that. Think about some of the macro factors. Weve had better industrial numbers, slightly Better Services numbers, the dollar is weaker and volatility is down. So weve got it backed up here where the fed, is anything, was out there reiterating support today in my view until that changes, its very difficult to see equities having a major correction but were at one of these periods that we were at two weeks ago and weve had multiple, these one or twoday selloffs in the midst of what is a liquidity flood or have been opportunities to reload. If anything, sentiment right now especially in the Retail Community is more geared toward the bearish side 3200 on the s p, lots of resistance, lots of new ground to break, we dont have to do it next week and earnings are going to be a more difficult road. Turbulence in the friendly skies of united. Warning tens of thousands of workers that layoffs are coming. Walmart is rolling back prices and possibly launching a prime competitor later, youve got questions, weve got answers. Tweet us your burning stock questions at cnbc fast money now is the time to support the places you love. 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