John fort is back from the mobile World Congress in barcelona. Tired but here. Its good to have you back. Great stuff this week. Along with kara swisher, executive editor at recode that joins us here today. First up apples annual Shareholder Meeting is set to start a little under an hour from now. Josh is there live. Hey, josh. Well, apple shareholders have been lining up all morning and coming in from all around the country i spoke to one guy that drove 8 hours from southern california. Another man that actually flew in from nashville. Of course the big issue here today is this fight between apple and the u. S. Government. When i asked the shareholders did they think the government should be able to force apple to write new software to bypass those security features, give the fbi access to this encrypted locked iphone they said no. It was pretty unanimous. Of course these are am shareholders and investors and believers but you heard them echo the same comments we heard from tim cook. They talked about what was the undo risk here. If you allow am to do this. Also they would say whats to stop the government from making apple take other action or other Tech Companies from doing this. Pretty unanimous. I did say are you concerned at all about what this could mean for stocks . Some of them did expression some caution but believed apple would right the ship. In terms of other proposals on the docket, shareholder propo l proposals on issues from diversity to the environment to human rights and the big topic will be the fight and tim cook will get questions from shareholders. Well be inside the briefing and bring you headlines as they come. Back to you. Thank you. It comes a day after apple filed that motion saying the governments request to unlock the iphone violates the First Amendment rights. Apple cited the interview saying as the president has recognized these issues are part of a public conversation that we should end up having. Heres the full quote from the president in the interview last year. This is a public conversation that we should end up having. I lean probably further in the direction of strong encryption than some do inside of Law Enforcement. But i am sympathetic to Law Enforcement because i know the kind of pressure theyre under to keep us safe. Wow. Kara, how this has gone from sort of the theoretical to the very very practical now. Absolutely. I was pressing him on that issue because this was going to become a more important issue as more and more people rely on their phones and Law Enforcement officials try to get ahold of these phones and they feel out of control over control of these devices. Kara, were starting to see more and more i think unqualified or at least specific support from other Tech Companies saying theyre going to file briefs in support of apple here. Among them, microsoft i believe google. I might leave a couple off. What impact do you expect that to have . Not just on the process but on the conversation were having about the merits of apples push back here. Its a larger front. If they come to apple theyll come to all of them. All of them have information that might have Law Enforcement. They want to make sure that theres legal methodologies. They dont want to be the place where Law Enforcement comes to grab things because it effects their consumers and apple is making the consumer case that this opens up consumers to more hacking and privacy issues and their information being taken ill l illegally. They all have enormous amounts of data about their customers. The deadlines for the companies to file the briefs is next thursday march 3rd. But twitter, amazon, said it looks to explore its own options. Do these companies have anything to lose by doing this . Or is it only things to gain. No, to lose is Public Perception that theyre not being cooperative, that they side with the terrorists. Thats one of the lines and the political things ive seen and the fbi director has been pretty straightforward about those claims. Theres been some very emotional claims that if it would benefit a son or daughter of one of the executives they would open the phones. It doesnt pertain here. But the issue is where are we going to fall in the privacy issue around these new devices and as they become more encrypted what should be the rules around them for Law Enforcement to gain access to them. This is a very complicated issue and again i have to say a agree with apple. Its not about one phone and that the government is saying that it seems disingenuous. What kind of grade would you give. Were not legal analysts but how would you grade their response and the language in their filing yesterday . This new notion of a government os . All of that. I think thats what it is. If you build this thing it will be huge. Theres no other way around that. And the consumers and the general population here. And its a complicated issue. And to me its ridiculous. Its an easy argument to make when you are helping terrorists and its hard to be nuisanced and apple is trying to be nuisanced here and i think its 100 what the president said when he interviewed, this is a complicated issue that deserves debate. Its as plainly as possible inla english. E fors tnotust. Have to spend all the time and the resources to create essentially a new operating system. They try and simplify the matter as much as they can and where they come from. Im wondering if they have this on their mind today. What more possibly could they hope to learn from a company and its directors including former Vice President al gore today . Theyre going to continue with those arguments. Its difficult to make. Its dangerous once we make es issn e future. And the general population cant really say some day when the government comes in gets this. So its a much easier argument to say youre helping the terrorists. So its a very hard issue to simplify it and make people imagine what a Government Armed with those millions of phones is about. It may or may not happen. So i think apple will continue to push on the First Amendment issues. All of these issues around privacy and the idea that the government will get a Natural Power over phones. And thats the argument that theyre making and that theyll continue to make. Apple is making the Jurassic Park argument. You cant make us craft mutant dinosaurs and say its just for this one theme park. It will be fine. It never works that way. That ended badly. Yeah. That ended badly for everybody. Kara, very interesting and were going to see where it goes. There was some discussion last week when we had john why tech wasnt coming around with these guys. I wonder why the delay. Why was bill gates run of press interviews interpreted so badly. Watch it. We dont know what hes saying here. I think microsoft is different than bill gates. He is on the board of microsoft. But i think hes just complicated. They have to figure out the Public Perception issues. They have to discuss and debate it so it would be nice if they jumped immediately on apples side but they didnt. They have to figure it out. Theyre going to back apple. I think were going to move on to Mark Zuckerberg of book holding a town hall in berlin. Streamed on book this morning. This question was probably the highlight. Take a listen. I dont think we have the sound ready. Well talk about it. I can read briefly from what he said. Have you guys heard this . If you were the ceo of twitter, what would you do right now . Theres no right way for me to answer this question. Long pause. I have no idea what to say to that without getting myself in a whole lot of trouble. Kara. Yeah and then he spoke and then he talked about instagram. He did answer it in a lot of ways. He was talking about the success of instagram and what they did and made a comparison to twitter. It was comparable and how they made easy tools for celebrities especially to broadcast on that platform and then also how easy it was for the users to get access to those celebrities. He was saying that twitter botched that or that we have done it so well and that made us successful. Twitter can look at what weve done. I think that was the message. When i talked to javier in barcelona, bofacebooks head of growth. We werent talking about twitter specifically but the context was clear. He talked about the importance of retention. He said you cant basically fill a leaky bucket. You have to make sure that that experience is sticky enough and good enough for the first period of time that they stick around. Otherwise it doesnt matter how many new users you pour in, its not going to work for you. One way that facebook is trying to retain their users is something we havent talked that much this week is the changing reactions. Have you loved something yet . Im not a big emoji fan. I like the hand. I still like the hand. But theyre fine. The more interesting is the video stuff that theyre rolling out all over the world. Book s i got to tell you, what a juggernaut it is is. It shas them and book is deploying this product really well and the emojis are the same thing. Everybody is doing them and facebook took a long time and theyre pretty good. Theyre fine but i havent used a lot of them. Someone was posting a chart of weekly close on facebook for the last few years. Its defying gravity in so many ways. Good weekend. Good to see you again. Thanks so much. Meanwhile the markets have given back some of their gains as the gains in oil have been given back as well. Wti and brent still in positive territory. The markets are too because we did get that better than expected q4 second read on gdp better than expected Consumer Sentiment and personal income data as well. Broke through their 50 day moving average. Dow at 16,736. Shares of baidu rallying. The company did post the quarterly growth in more than seven years. They also layed out guidance worst than analyst expected but you can see that revenue number did surprise the street. When we come back this morning, tech stocks having a rough start to 16. But there could be buying opportunities. Mark is going to pick up a few names. Hilton confirming plans to spin off its hotel. The ceo will join us in a rare exclusive interview ahead of the oscars on sunday. A look at hollywoods fight against the streaming competition. That story live when squawk alley continues. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Lead internet analyst and Rbc Capital Markets and mark what are some of the better opportunities that you see based on the beaten down names that have suffered thus far through 2016. So john, youre right. The internet sector has largely traded off. But theres a couple of names that are interesting here. Amazon at the top of the list. Q4 excess demand cost issue that we think they can solve. That one has traded off. That comes to the top of the list. Number two is google or alphabet. That was number one on our list. Opportunities a little more attractive with amazon and then a little bit of a surprise. Taking price line and making it our favorite long in the space. We think we can see a shift of the Online Travel agency dollars. Thats our number three pick. What about smaller names . I recall you were impressed with go daddy consistency. Its not a name that people talk about as much as the bigger titans . Yeah and the small cap space we also shuffled our list there too. Lending tree which had a blowout quarter yesterday is our number two pick and Rubicon Project and tech names at number three pick. Its not for sale. We like it. Its smaller if you will. Its one of the best Business Models in the small cap internet space. 14 million paying subscribers in global reach. Margins are expanding. The market largely agrees with us on this. We continue to like it. We think there is more upside in the other three names. A couple of weeks ago we all sat here and rung our hands about linkedin and the enterprise and now we get sales force so where are expectations versus where we were. Those stocks also traded off and we had a week or two of really sharp negative price actions on just about any print. That does happen. We also had quarters and periods where stocks shoot up on prints so we have these unnatural swings from time to time. A very interesting macro read. You have very large read in the consumer demand globally. U. S. And outside of the u. S. And it was benign from this group. Revenue growth rates stayed the same or accelerated and you had Companies Like expedia and price line both benefitting from Falling Oil Prices because air fair is coming down and consumers are traveling more. So surprising given how the stocks have traded year to date. The read through is benign. I felt like being over in spain theres a Big International opportunity. I remember the past couple of years i was there catching a cab is just a pain. Now have the halo app. The experience is a couple of years behind what we have in the u. S. With the ride for Hire Services but its coming over there. Theres potentially big demand. How do you play the International Angle . Especially in todays market where people are feeling shaky about international in general . So, you know, this large cap tech generally has pretty substantial international exposure. They have very material exposure to europe. Much less so in asia and china but most of them offer that. Thats why the last 18 months you had what was essentially a major tax on this business. Consumers that were using the amazon products from overseas. Were paying 20 or 25 more than they had 12 months earlier. It was a drag on growth rates and cross border trade companies. If they start to stabilize, the euro has. The pound hasnt. But youll see demand snap back and thats what really happened with the Online Travel agencies. It snapped back in a matter of weeks and thats become what was a head wind last year can become a tail wind this year. Thanks as always for your insight. Have a good weekend. Lead internet analyst at rbc. When we come back, marco rubio and ted cruz going hard after donald trump in last nights gop debate. Is it enough to move the needle ahead of super tuesday . Well have more on that when we come back. Hi, kayla. Whenever we heard the word contagion its always about bad things. That makes sense. Its like the old days. Then we had to wait years before regulators said theyre not good things. Sometimes it is all about a name of any color and any aroma. But when it comes to contagion i look at policy contagion. Look at the following charts. Its referred to its relative value trade. You can argue about who leads but it doesnt really matter because theyre trading the dynamics of policy in the ecb in many respects because its a post qe world in the states for the most part. So their policy is our policy. I had the congressman on. Hes the chairman of the committee that asked janet yellen on the 11th is it legal to do negative rates . Why do i bring that up . Because it almost becomes a moot point when you think that the bad policy of negative rates is altering the relationship of the market. So were dragged in just like the god father and this is porn because no matter what happens its a sealed system water balloon. They kweez, we pop out. This is something to think about. The other thing, used to be apple and oranges but in my mind its apples and emails. The on going issue between the fbi director and tim cook is fascinating. Whats even more fascinating is how its gotten record speed. You read about this not that long ago. Now everybody thinks its headed to the supreme court. Things are moving fast. As fbi director i want you to ponder this. Hes also in charge of looking at the issues regarding hilarys emails. How long has this been going on . Seems like forever. I dont care what your answer or thoughts are about either issue. Heres what i want you the viewer and listener to think about. Whatever your thought is about hilarys email, think about fbi director james comey in charge of the investigation. Does that relationship on what he has done or hasnt done yet give you confidence that hes trustworthy with average citizens on their devices. Think about it that way. Im done. I hope everybody has a good weekend. John fort back to you. You too rick as always. Rick just mentioned apple. Up next a former fbi agent is going to tell us why he thinks apple creating a back door not a major Security Threat. Hes going to join us to explain in just a moment. The td ameritre trader group, they work all the time. Sup jj, working hard . Working 24 7 on mobile trader, rated 1 trading app on the app store. It lets you trade stocks, options, futures. Even advanced orders. And it offers more charts than a lot of other competitors do on desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivatives pricing model, honey . Td ameritrade. Good morning, everyone. Here is your cnbc news update this hour. He cast his ballot in irans first elections since last Years Nuclear deal with western powers. The elections pit the moderate president against conservatives that are opposed to the western powers. Two suicide bombers attacked am a mosque in baghdad killing 15 people and wounding 50 others. The second blew himself up when Security Forces gathered at the site of the initial blast. Crews are willing to move into the migrant camp. A french court gave the green light to dismantle the cap. Instagram founder and ceo meeting with pope francis at the vatican to discuss the power of images. Its the latest move by instagram to assert itself as the dominant platform for visual communication. He brought a book of ten instagram images. Pope francis has his own instagram account. Inte