Issue or the big opportunity we have seen is it turns out that janet yellen is as good at job boning the markets as greenspan ever was, without being quite as opaque. And to me, that, you know theres great comfort. Because we took away some of the speculative behavior in my world, particularly related to the unicorns and the Venture Capital side of the business. And as i look forward into the year, i still think theres a tremendous amount of uncertainty. So i expect a lot of chop. But theres no question that by deflating some of those crazy asset valuations that we saw in the private market, the tech sector, at least, looks better than it did when i left. Roger, you credit janet yellen with taking some of the air out of that system . Oh, definitely. I mean, the way i look at this, there are any number of reasons why people could have looked at what was going on in the tech world, particularly on the private side and said, hey, wait a minute, this is crazy. And i think when yellen said, look, were going to be raising rates, make the assumption three times this year. That just caused everybody to go, wait a minute. Thats fundamentally different in that environment, all asset prices are going to be different. But especially things with super long durations. And, you know, so to me, she does one move, and effectively got the benefit of the equivalent of three moves. And so the markets come back down. I think people are now more cautious. And thats really all the fed wanted. It just wanted people to be less complacent. And, you know, i dont think we get a bull market out of this yet, because i dont think the economy is strong enough. But i do think theres no reason to be, you know i dont think there was any reason to panic at the beginning of the year. I dont think theres any reason to panic now. I also dont think theres any reason to be diving into the markets headfirst, because theres a big bull market. I dont think thats the most likely outcome. Thats interesting. So how do you bide your time, and wait out however long period you think this is going to be without slowly losing your shirt . Well, carl, the problem here is there are times when there really is nothing to be done thats going to be dramatically successful. For me, i still own facebook, i still own some apple. I own facebook, because i believe that as were going to talk about in a moment, that they are the most wellpositioned Media Company out there. Theyre getting a disproportionate amount. Apple is a cheap stock. There are other cheap stocks in tech. I dont have big expectations for them this year. My basic view, i want to have some exposure to the market. But im still mostly very defensively postured, because i do think that once were through the election cycle, once we begin to get a better handle on the implications of news like the Panama Papers, on the end inversions and some other things, the market still has to figure out what all those things mean for earnings. And, you know, well figure that out over the next few quarters. You mentioned facebook, roger and the developer conference kicks off tomorrow. Live video and messenger expected to be two major theepgs, obviously. The Company Unveiling that mobile app last week. It could be the start of facebooks video play. There have been reports theyll make an announcement, a very large number in terms of their investment this week, roger. Well, you know, i think its already working huge. If you are an advertiser or a brand holder on facebook, you have been able to do live video for some time. And theres no question it works huge. I know for moon alice, our most successful promotional tool over the last 12 months. And whats going on now is were extending all of that to everyone on facebook. And i think one of the things were going to hear about at f 8 is the ability of brand holders start to take very highly produced video. Stuff thats not done live. And find ways to put that into the system, as well. I think thats where the really huge numbers are from an advertising point of view. Youre also, i think, going to hear a lot about a term that most people are not familiar with, called chat bot. Essentially whats going on, facebook is trying to promote messenger. And messenger is its texting application. And they want to give you the ability to do other things while youre in that app. So imagine putting little applettes so you can order an uber or send a yelp review without having to leave messenger. I think thats another big commercial opportunity for them. The term chat bot is nonsense. These are little applettes that sit inside texting, but they have a chance to be a really big deal. And not just for facebook. They could be broadly a big deal. Well, we have started to see some of the ways that facebook is trying to build out messenger. But roger, we always ask the question of what happens when facebook cannibalizes its own Business Model. Instagram is so rich and popular, people are spending more time on instagram, taking away from the time theyre spending on facebook. And what about messenger versus whatsapp . Are we getting to a point of as muchration for the Business Model . Of course we are. Of course we are, kayla. To me, the genius of Mark Zuckerberg and Sheryl Sandberg and their team is that they went out early and identified products that were likely to cannibalize facebook. And they acquired them. So at least theyre doing it to themselves. And i think that that is, you know that is a sign of a really astute management team. You know, ive been worried that things inside the u. S. Were so hostile around this election cycle that nobody was going to have any friends any more. But apparently thats not happening. And apparently, all this concern about lack of original content, people no longer posting their location or their selfies. Thats apparently overblown. Ive talked to people at facebook who have said to me, that was an issue six months ago. It was still an issue three months ago. But for the most part, its resolved and trends are more favorable again there. So i think from a facebook point of view, were going to get good news this week. And i think this is going to be a very good year on earnings. And what the market pays for that remains to be seen. But from where i sit, if the market gets bullish, thats going to be one of the first stocks they want to own. People might not be checking into airports or posting status updates, roger. But they are really tuning in to see 600plus rubber bands burst a watermelon. Hundreds of thousands of people watch this buzzfeed video on friday afternoon. And everyone was saying this is the future of tv, this is the future of content. But im curious how you see the future of Smart Content developing on some of these social networks that actually informs an electorate, for instance. I got to be honest with you, kayla. Watching this election cycle, i am terrified. I have no idea how thats going to turn out. And i think realistically facebook has a gigantic opportunity. And how they do this, i dont know. I think from from their perspective, theyre trying to remain in the middle and not you know, they want to be uncommitted, they want to be independent of everything. They want to support everybody who wants to communicate. But at the moment, theres no question that the level of quality news thats available to us, the level of fact available from News Services is way less than it once was. And facebook has a chance to fix that. How they do it, i have no idea. I just hope they do fix it. Finally, roger, we would love to get your temperature on this one. The owner of britains daily mail in a bid for yahoo . A spokesperson says the company has been in discussion of the number of potential bidders, but an early stage and no guarantee any transaction will take place. Fabers take on this, its sort of like the preshow. Nothing too serious to get all worked up about yet. You agree . Well, the way i look at this is, yahoo had five years at the beginning of its life when it was really one of the great darlings of the internet cycle. Then four or five years where it kind of rode that wave. And for the last ten years, its been just very slowly but very surely declining and going off the rails. It missed video completely. You know, it didnt just miss the netflix distribution model. It missed even with a mediacentric strategy, missed creating video the way netflix and amazon have done. Its simple. If youre a newspaper like daily mail or someone else, youre the titanic. Your business is sinking. So no matter how bad yahoo looks from a tech perspective, it surely looks better than that. So it doesnt surprise me that a lot of traditional media people look at the cash flow, look at the slow rate of decline and think, you know, i could probably do this better than theyre doing. And i dont know if thats true or not. But i can see people doing that. And it will surprise me if it we get to the end of the year and something has not happened to yahoo . What that is, remains to be seen. But i think something will happen. Roger, if youre a Media Company, daily mile, time, inc and bidding for yahoo are you interested in the roster of namebrand journalists or home page algorithm . No, i think youre interested in the cash flow, plain and is simple. I assume whoever buys this thing is going to sit simply give up on trying to be successful in the Silicon Valley side. And theyll simply look at a source of cash flow. On that basis, yahoo is a really attractive business. You know, they have a so many people come to the website. So many ads that they can successfully sell. That it would buy anybody a lot of time if they could buy it at a reasonable price. And given that the traditional investors in yahoo have pretty much given up on it, its not crazy to imagine that the stock at some point trades at a price that is compelling to a buyer. What a treat to have you back, roger. Good to see you again. Come back soon. Well see you in a couple weeks. Roger mac that me. Meanwhile, the markets off their highs of the session. The dow up as much as 154 points, now up 58. The s p up about 5. The nasdaq up by 19. All up for about a third of 1 . Tech and materials, the best performing sectors of the day. Sap, First Quarter results weaker than expected. And alphabet shares are barely in the green this morning. The stock was upgraded by pivotal research, which sees a Strong Quarter ahead for alphabet. And finally, under armour diving on a bearish note from Morgan Stanley, claiming the Company Might be losing market share for the first time in three years. The stock is down 5. 5 . And basically maintaining their price target, taking it from 64 to 32, although thats happening after the companys two for one stocks. When we come back, a lot more on internet stocks with facebooks conference on deck. And ken burns out with a new documentary on Jackie Robinson. Ken visits us to talk about content. And masters winner danny willed, fresh off his win. An amazing weekend of golf. Squawk alley continues in a moment. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Earnings season kicks off this week with al koa reporting tonight and analysts see the weakness continuing. But were in vancouver with the parts of the market that may actually hold up, despite that weakness. Dierdre, what did you find . Good morning, guys. What we found is that weak earnings dont always mean weak markets. Now, we know that the season isnt going to be pretty. But markets tend to think that its going to be a lot worse than it usually is. Over the last few years, earnings have been overly pessimistic. The companies have beat lowered expectations and the market follows. We crunched the numbers and looked back at the past eight quarters, where s p 500 actually earnings have beaten estimates every time but once. In the four weeks leading up to the start of the season, based on the date that alcoa reports, stocks often lose ground as they price in the worsening news. As earnings get under way and surprise on the up side, markets rise. The s p 500 has traded positive 75 of the time and returned more than 1. 5 in the average four weeks after alcoa reports. The start before and after, the start of season, the earnings season are tech and industrials. Let me tell you about tech. The biggest winner has traded positive nearly 90 of the time and returned more than 2. 5 on average in those four weeks after alcoa reports. Now put simply, guys, companies and analysts consistently under promise and over deliver, and the markets fall for it. This pattern has become more consistent since the financial crisis as the estimates versus earnings gap has grown. As always, guys, past performance is no guarantee of future performance, and keep in mind, the market has run up more than 1 in the last month, but if you think that the earnings estimates are overly petitiossic and it is a particularly bad one, there could be room to gain on the other side. Back to you guys. We will get some data points very shortly, dierdre. Thank you for running through that. When we come back, more on internet stocks, the bot economy, and whether saying could come roaring back, and ken burns joins us at post 9 as we await his newest documentary on Jackie Robinson. Squawk alley will be right back. Danny willett, masters champion, having never before won on u. S. Soil. What an amazing weekend of golf. Were going to talk to danny on his big masters win in a few moments. Looking forward to talking to him. Meanwhile, what is a bot . We have been talking about them, but facebook, google, microsoft all betting youre going to get more comfortable with that question. Julia boorstin has more in l. A. Kayla, if youve ever dealt with Customer Service online, youve interacted with a bot and youre surely talking to more of them. A bot or chat bot is a program that uses Artificial Intelligence that processes language to simulate conversation with users and perform simple tasks. They can live within messaging apps so companies can reach consumers where they are. A next generation 1800 number. Users can get help or information without having to crowd their home screen with more apps. Facebook is already integrating a number of companies chat box into messenger. You can order an uber or check on a flight or check on an order from zoo zulily of the facebook is expected to announce a bot store, creating apps within its platform for the 900 million messenger users. Kick, which has 275 million users worldwide launched a bot shop with h m, the Weather Channel and vine. Bots arent without risk. Microsoft drew negative headlines when it debuted its bot on twitter and users manipulated it to say offensive, racist and sexist comments. Microsoft pulling it offline. If companies can make Artificial Intelligence work, there are opportunities. Advertising, commerce with the platforms taking a cut. Now the platforms need to make sure theyre useful enough that people will want to use them. Kayla . Very interesting. Thank you, Julia Boorstin out west. For more on facebook and the f8 developer conference, lets talk to Colin Sebastian an analyst, ken senna. Ken, i know youve written a lot on bots. And we have seen how we have had to interact with them on the Customer Service side. Where will they play into the social narrative . I think its important. Because when we look at the ads, were already seeing how ads can become much more transactional, and with all the structured data starting to be embedded into them. But they can also become much more communicationenabled. And thinking through whether there is a friction point in wanting to buy something or an issue you could have post that transaction. A bot can actually handle quite a bit of that. So i think as were starting to see advances in natural language programming, its an opportunity for platforms like facebook to scale that capability for businesses. And i think to the point earlier from julia, to potentially replace the 1800 number to a large extent. An opportunity too, colin, for the developers going to f8 trying to build products to fit into facebooks existing product suite. Look at the schedule for f8, it looks like a laundry list that facebook could yet monetize. Messenger, free basics, video streaming. The list goes on and on. Where is the value in the near term for facebook here . Well, keep in mind that facebook is a company that is one of the most innovative and disrupturive Technology Platforms and i think the focus and what well see this week at f8, obviously messenger with the bots rolling out is a focus, as well as video and facebook potentially taking a much larger bite out of Television Ad budgets. Thats a huge opportunity for them. But the background story here, of course, is Machine Learning and Artificial Intelligence. And facebook really creating more gap between themselves and other competitors. And i think well see that on display this week. Ken, theres been some on the sell side who say q1 is light for facebook, calling for a reset with the caveat a lot of their misses tend to be bought longerterm. How much risk is in the quarter, do you think . I think its relative to what. Theres always a certainty that or theres audiologists the potential that expectations can get ahead of ourselves. But i think when youre looking at when youre talking to the buyers right now, theyre Getting Better theyre getting the reach and the frequency they need from facebook. Better and better performance. And i think as you start to look at what facebook is offering them relative to other channels, it is still the place to go. So we still feel good about the quarter. Video obviously a big part of the conversation. Fac