A big move from stock, consumer launch from amazon big picture. This home in tech is about a new series of overlapping platform wars tiktok versus instagram. Sws versus aftezure julia, i would argue u. S. Versus china is shaping up to be a platform war platform war, jon, what youre saying is reciprocal trade. Were seeing this between china and the u. S. The question of whether it makes sense, safe for americans to have these chineseowned Companies Operating here in the u. S. Keeping in mind that u. S. Owned companies are not allowed to operate in china. Im talking about facebook i think its interesting to see how that dynamic plays out and this question of whether or not there should betiktok, mayb going to address that issue. Sand then apple, youre referring there, of course to this battle between epic and other companies that are participating in this new coalition. And apple in this battle over that platform. And those fees, right . Well, i am talking about that, and mike, im also talking about platforms in terms of values just basically, how technology works. How data flows thats such a Sticking Point in this tiktok deal theres a question of how much insider access is china and the Chinese Company going to have for the data of u. S. Citizens . Are there going to be rules . I mean, how much investor attention is turned to the question of are there going to be two separate internets . And what kind of constraint will that be on growth . Yeah, how much of this attention is on this, also related to the question of just exactly how much precedent is going to be set by what seems like kind of an ad hoc kind of arrangement setting up here, if we even get some kind of a deal. Have we not already had de facto, i mean, two internets i mean, with what has not been allowed to go into china i do think its fascinating, jon, the way you set this up, because the idea of platforms as being these kind of evergrowing kind of defensible organisms out there in technology is totally about what the multiyear faang boom has been about. So when theyre bumping up against each other, in the question of do they have too much money, can they talk to one another in a way that creates value i do think thats going to hang over the economy for a while. And the overlapping nature of these platform wars is something i havent seen in 20 years thats a good place to start jointing us is cofounder and partner at active vs good to see you. Hey, jon, how are you im good. Happy friday these platform wars, and again, with u. S. china is a platform war, both on the reciprocal trade line, as julia talked about and on the values line that i talked about. How do you think this resolves . Well, jon, i love the way you framed i think youre right theres definitely platform wars happening all over the tech landscape right now. I think on the tiktok deal its going to be tough its interesting to see, i have a lot of friends in china who think the Chinese Government is not going to approve the action. They have to find a facesaving way for them to approve it right now, the way its set up politically, i dont think its going to happen. In emergency room its of whats happening with facebook, in terms of whats happening with apple, theres a lot of things going on right now one of the things that big tech is going to be under regulatory pressure its interesting to see how it plays out in the platform wars that you talked about . What determines who wins . We used to be in a situation with u. S. china, where u. S. Is knocking on the door, so they had faith, that innovation, that free markets were going to crack open china eventually. And there was a sense that openness, whether youre looking at android versus ios, android was going to economically win because it was so open well,ology so many lines, this isnt panning out the way people thought. Now chinas knocking on the door over here. Theyve got intellectual property and apps that are doing well it turns out that a virtual integrated platform in ios can be more popular, even if its not more broadly popular exactly, took the wording out of my mouth. The interesting thing from a china perspective, and the reason why china still closed off many u. S. Tech companies, especially social Media Companies is that one of the biggest problems, one of the biggest areas of focus of the Chinese Government is social harmony. If you take a look at what platforms have done here in the u. S. , whether its facebook or instagram or others, its allowed a disharmony and theyre saying no way am i letting the platforms in because look whats happening in your country. Wow hany, for you as an investor, you say you want a flat Playing Field in china, what does that mean and what does that actually look like you know, its tough, one of the biggest transactions thats happened in the last few weeks that hasnt gotten a lot of attention, which was the acquisition of a. Rm. Its the hard ware company that hasnt gotten a lot of attention in the world today its one of the next technologies that enable the next generation platforms to happen those kinds of platforms will happen everywhere, not just u. S. And china but everywhere it will enable companies to take over the same way that microsoft and oracle have been left behind to find a new generation. I think thats going to happen in the next four or five years, youre going to see a new generation, based on the new hardware developed and being invented today with all of the factors at play, including the china u. S. Categories how is that going to affect it . Being a venture capitalist right now is one of the hardest and easiest jobs in the world. One of the things that got us exciteding acme, the focus on earlystage ventures. Youll not hear about that in the next five or ten years thats where a lot of the excitement is happening, in that early stage. In the later stage side, youre seeing a lot of ip sochlos and g Companies Public and wind at their sails. What im focused on is early stage, pioneer technology. You think about quantities item computing. Sensors everywhere some of the things that are happening, infrastructure technologies, thats the most exciting in venture. Thats where its fund and, frankly, easy. Lets talk about what you were mentioned, the ipo boom and valuations weve got another big debut coming next were. The journal reports palantir is going debut at 22 billion when it debut thats a third of a snowflake. Should we be excited about that . Should we be worried about that . Look, i think palantir is a great company. The team, theyve built a fantastic franchise. When i started in this business, Enterprise Software companies, three or five times forward revenues right now, youre looking theie 25 frankly, thats expensive to me. There are highflyers trading well above the high revenue. Obviously, thats a lot of growth and market with excess liquidity. Looking for growth, and, frankly, technology is one of the few places you can find it so theres a little inflation value. Inflation. And also at the same time, some of these companies are going to be big bepeoplhemoth, amazon, microsoft. Think about the one that becomes the new york stock exchanxt 10. But are they also rich, with all of the Mega Companies that might be soaking up the profit potential . Right along those lines i was docked to david limp, Senior Vice President of amazon conservative business as they were having their launch one thing they announced was luna, a new streaming gaming service. But theyre not launching it on the app store on ios i asked him about the barrier of the app store, and whether thats a problem for him heres what he said. We chose on ios, which i think is what youre asking about, on mac, we have a native application. And on ios, we chose to use the Safari Browser as a way to get customers access to these great games. Im not saying that down the road we might not find need to try to do it, a native application on ios, we have obviously, lots of those on amazon but at this time, based on sort of the constraints across a lot of different places, it just didnt make sense. So we went to that in the browser. That conversation was live on linkedin, on ft. Knox, my program. Given those constraints if amazon cant even crack through, isnt that going to provide somewhat of a ceiling to some of these startups that so many of these investors are hoping are just going to grow and grow and grow well, i think the epic lawsuit is an interesting one for me to watch. Its going to impact many of my Portfolio Companies that deal directly with the app stores the distribution model, the discovery model, frankly doesnt work and its painful for a lot of startups. Its an interesting lawsuit to watch between epic and apple but fundamentally, these big behemoths, amazon and facebook, these are customers for oil companies. Some of the things theyre doing on the skunks work side. If you take a look at technology companies, many of them are benefitting because of the platforms that need better gathering, need better analyt analytics. And thats helping us with oil companies. Theyre cushions to many oil companies. Hany, talking about the boom with the ipos and valuation. You mentioned maybe its a public venture approach where youre one, kind of a shopify or one might become adobe is going to pay for a lot of the dudes. But i wonder if its like a biotech situation where maybe youre going to catch lightning in a bottle with your main product. If not, you could get bought by somebody bigger. Im trying to figure out the inner play of these upstarts and Massive Companies whose valuations imply theyre impenetrable yeah, 93 ipos are trading higher, 65 higher, depending on the day you look thats an unprecedented number when i first started in this business, if you had half your ipos up that was a stellar year. Now, theres definitely appetite for ipos not to happening that spacs that are happening. Trying to take them public i think whats happening, Companies Went public with 200, 200, 300 million in revenue thats stopped up to a year ago. Now, were seeing the spacs take the private Companies Public, youre getting a venture opportunity, instead of growing it 25 , 30 , when you go public. Companies are still growing, 60 , 100 year over year, and thats whats pushing this Lottery Ticket trifecta, if you will hany, speaking of Lottery Tickets, we have to ask you about draftkings i have to doublecheck the numbers, the stock up 394 year to date. This Online Gambling space has obviously been exploding how much more room is there left to run in this stock and are there other opportunities in the gambling space that youre looking at so, look, i think sports and Sports Entertainment is a gigantic business. And i think whats happening is, states are realizing we need to figure out how to generate more revenue from taxes and other sources. And Sports Gaming is one huge opportunity for that i think youre seeing the entire sector very early on only a third of the states, maybe 25 of the states have legalized it as more states come on, its a bigger opportunity for all of the players in the sector. All right well, thats a good way to give us something to think about into the weekend. Hana nada cofounder of acme capital. Good to see you. Thanks. Coming up, amazons flying recurity cameras, drones wak havoc with the companys all new products is after the break. Stay with us speaking of platforms, lets talk back to amazon, it unveiled its Holiday Season lineup yesterday, announcing a bunch of new products including a drone with a camera that patrols inside your house. I caught up with amazons devices and services, david limp, on the origin of the idea. Idea was borne from the fact that people indicator a lot about indoor security. Theres no question about it, and the ability to look at things in the house. Sometimes, just to look in on a pet. Other times thinking of things that are untoward, but in some cases, neighbors have told us, listen, for various reasons, they cant put cameras in every room of their house. That may be, they dont have power, or they dont want to think about replacing batteries or a room they dont want a camera in. That was the genesis of thinking how do you solve that problem for those customers. Hence, the ring cam was born what do you think, mike, are you going to get one of these . I keep wondering if this is something legitimately that amazon thinks the world is asking for and amazon brand, part of it is, were constantly pushing the limit, were going to move that edge out there and say, gee whiz, look what we can do for anybody willing to take it thats my own take on this also, by the way, the last 100foot drone delivery step we saw those videos for how many years. Its not core to what theyre doing, is it i dont think it is mike. But i think we should bring in the wall street journals joanna stern with us now joanna, you chronicle this stuff. You test this stuff. The product itself doesnt scare me but there has never been a Consumer Electronics part that im more afraid of getting hacked you know, the reaction i had to this, i think, is probably how most people are feeling. On one hand, technically, im like, holy crap look at this thing. We can have a drone that autonomously flies around our house, and can look at things when were not there seems creepy, but technically, kind of amazing. 2020 not the best year, but by 2020, weve got an autonomous drone in our house. On the other side, youre sort of like, hell, no, im not going to put this product from a Major Tech Company in my house with the risk of it getting hacked. That amazon itself has access to this footage there are so many security and privacy questions in that second bucket, that its, i think, really hard to figure out which one to focus on first. Joanna, though, its interesting that it does have that reflex response i think we all probably have that but materially, is it much different than having a fixed camera in your home . In other words, what happens to that data . Do you think theres sort of a line that separates those things . I mean, yes if youve been a person who has installed a fixed camera in your house or multiple cameras in your house, you may not think this is all that different except for the fact its autonomous and can go to different spots. I also spoke to david limp about yesterdays event, how that works, you program it, this is not something you that manually control. So, i think its not too dissimilar but, of course, the idea that this thing could have a mind of its own and go into areas, you know that gets into some tricky territory. Of course, fixed cameras have a mind of their own, too, they can pan around the room as well. Yeah, no doubt about it i mean, whats your, maybe, toptine takeaways from the array of new product introductions here are we talking about incremental updates, or do you think theres some gamechangers in there . I mean, i think i have the same reaction that the game changer is this drone. Both from a technical perspective and pushing the limit what are consumers okay with thats the big question i have, what is the percentage of the market that people think amazon is doing something really innovative and different here, versus this is super creepy. The tweet i had yesterday, i saw a lot of people excited. Say lot of people worried about their cats, that cats are going to defeat this thing instantly and the dystopian people saying, privacy, absolutely, no way. Amazon probably has a good idea of the sense of that market. Joanna, i think either my cats or my children would figure out how to use this as a toy and likely break it pretty quickly a question for you about where this fits into the whole ecosystem, because here you have amazon arguing for the innovation of ecosystem and buy we should all outfit our houses with alexas and make hour houses amazon houses. And google showcasing its devices coming up and then apple. So if you look at these ecosystems, why is the primary argument for why amazon is the one that a consumer can go with . Is it one piece of technology . Is it everything together, and how are they doing in this competition . Yeah, its a good point i think well hear a lot next week, too, at google where theyre talking about similar competing products at home, tv, speakers im not sure google is ready to put the flying camera in our house. Amazon wants to dominate the smart home that might have been the vision, but it might have been the vision once they realized alexa say hit. And that opened up other categories you see the acquisition of ring, a Home Security camera company, now moving into cars, moving around the home. Ero, a wifi home company. As apple builds up its ecosystem, they stand to be up against that you got me looking forward to the cat videos that are going to be made from this thing. The cat tipping it over. The drone flies in to look for it and the cat absolutely destroys the drone. Dont ruin my review video. Youll start recruiting the cat. Im ready. Im ready. The cat needs no convincing, im sure maybe we need a Google Camera to watch the amazon drone and make sure its behaving itself. Like, whos going to do security on the security device yeah, i think i would really pick google for that one yeah, maybe facebook maybe facebook is the one we want for that one. Its like the enemy of my enemy thing. You know, you dont have to trust them you just have to trust them to not trust each other and to have all the different eyes in different places that really is what were talking about living in 2020, i mean, its basically 1984. Yep, 1984 is here in ways even when we dont want to think about it, right. Joanna, thank you very much. Appreciate you playing along with us. Ill be back with the cats. I dont even like cats joanna, i volunteer my cats for that video still to come, facebooks most vocal critics coming together and starting their own independent Oversight Board. Well speak with the groups founder. Thats next. Stay with us welcome back, everybody. Im sue herera heres your cnbc news update for this hour. Virginia Governor Ralph Northam and his wife pam have boatested positive for coronavirus Kyle Wittenhouse is fitting extradition to wisconsin days after jacob pol