Were in one of the environments where you enjoy, the sun is shining, we enjoy the lovely market and the u. S. Economy is stronger than the rest of the World Economy and most of the u. S. Stock market depends on growth globally so that the weakness in europe and asia are challenging Going Forward that the market right now is tie jesting comfortably but also getting a lot of help because central bankers around the world have been sprinting money and without Corporate Investment in new plant equipment which remains relatively light it just goes straight into stock price which is is great news if youre a stock investor but its not something im counting on for a long, long time to come. It strikes me that for tech this is one of the interesting moments where even though people are waiting for the sky to fall, the stocks have been, you know, throughout the year, moving all over the place, the strong names in tech still seem strong. Nobody is saying like they were back, i guess, in 2006, 2007 and who knows when Silicon Valley will have its hayday again. People are bullish on facebook and bullish on google but nobody is saying that they have lost all of their power. Perhaps some momentum. Doesnt that Say Something about where they are in this market. I do think it does. Tech looks by far the best of all the sectors in the economy and part of the reason it looks good from a stock market point of view is that the pe multiple is in line with the s p 500 even though the underlying Earnings Growth is significantly better so tech is an area of relative value and when the head winds come i dont think tech is going to be able to avoid whatever happens to the market. Whats cool about the situation that we have is among the Largest Companies you have facebook. You have google. You have amazon. All with significantly above average fundamental outlook and yet the pe multiples with the exemption of facebook are in line with the s p 500 and facebook is pretty cheap based on the growth youre getting because the growth has been faster. The earnings have been growing faster than the multiples going up. The case for tech has been in the medium term that every business and sector invest in their own technology and they all out performed their nasdaq. A lot of these guys have become parts of the large cap world. And kayla, the way i look at this is there is established tech which right now is the part were talking about. The part thats driving the market. I think the outlook in emerging tech is what it always is. Theres room for optimism and today we happen to be between cycles. And so in the Venture Capital stage and in the small tech stocks, things are not as interesting as they are in the largest gap. You mention facebook roger. Were watching shares of that today. Out over the weekend saying that the stock could jump more than 20 and the bottom line is profits have been growing and ad sales are strong. They argue estimates up. Pe for next year has come down a touch. And its too pricey at 23. What do you think . I think they were right. So the issues on facebook are really very, very easy to understand. The core business, the original facebook platform is approaching what i would characterize as peak monetization. The loads of ads on the page are close to saturation but the beautiful thing is they have gigantic properties on marijuinm and to me the outlook for facebook is very, very bright and the market will decide is that the rate is larger than a year ago and facebook cant sustain that forever but i do think that if we go back just a few years the estimates were 2 a share. Its been so much greater than anyone expected that the earnings are huge. Its interesting that you say that the core might be maxed out. I wonder if youre factoring in video, live video along with that. The magic of facebook is not only their ability to do m a and pick up these others like whats app and instagram but their ability for the core product. Facebook light on the one hand. Facebook messenger and they seem to be doing the same thing with video. Doesnt that still have legs . It may well. From where i sit as an investor theres so many legs already. Were dealing with a stock that has legs anywhere you go and i dont think you need anymore to justify being an owner. The trick here is that if the market does poorly, for whatever reason we get a set back in expectations or if rates go up and the market takes a bad reaction to that, facebook is not going to be able to do that. What i like is the fundamental story is so good. If you like the market facebook is an obvious name to hold and in the tech sector its the one you hold if youre only going to hold one for high growth. Tensions rising between uber and lift after the reports that lyft tried unsuccessfully to shop itself around at gm, google, amazon and even uber. He told investors he wouldnt pay more than 2 billion for lyft. They responded saying they quoted a classic example of uber using unsavory taxes and lyft is not for sale. So we know about the bad blood between these two for years now. But what do you think of the idea that theyre trying to unload themselves and cant . Lyft has the challenge as the Smaller Player in the merging market. Everyone faces the serious uphill climb because it has been a lot harder to produce Profit Margins in the ride sharing world than i think investors initially hoped and given the amount of investor money that they have all been forced to spend, especially uber, i do think the real reason to be concerned as an investor about the outlook. Uber was really smart to bailout in china. And an experiment that was otherwise that and until these guys show much higher levels of profitability in their court businesses you have to look at the outlook for skepticism for both of them. Realistically what uber says, who cares what they think. They have a relationship with general motors. Who knows if they need to sell out or not. What they need to do is produce profit. If they do that, then theyll be fine. Its clear that travis is approaching this as he always has but the comment about not pursuing an acquisition because of a potential antitrust investigation. Do you think these two Companies Getting together would merit that . Because normally antitrust officials havent deemed two money losing businesses a threat to anybody. Well, precisely. I look at this and i go, i think in his dreams they would come together because maybe that would take some of the pressure off of margins. But at the end of the day, the strat swri which is grabbing as much territory as possible and spending investor money to do that is not a longterm strategy so they do need to find a way to relax the level of Competitive Pressure to raise prices to do a much better job for their drivers but if they stop competing head to head. Thanks as always. Roger joining us from out west. We are getting breaking news on ryan lochte. We want to get to dominic over at hq. So what we have is speedo which is one of ryan lochtes sponsorship agreements they have announced a decision to end their sponsorship of ryan lochte. Theyre going to donate about 50,000 worth of his fee to a save the Children Charity partner for children in brazil and also said in a statement we cannot condone behavior that is counter to the values this brand has long stood for. We appreciate his many achievements and hope he moves forward and learns from this experience. He has other sponsorships as well. Also polo, ralph laurenful among those names being talked about now but this is the first initial action taken by one of his sponsors. Back to you. Thank you very much. When we come back, why theyre keeping the distance from donald trump and stopping by earlier this morning. What the former mvp says about investing and how he wants to be remembered. Squawk alley continues. Americans are buying more and more of everything online. And so many businesses rely on the United StatesPostal Service to get it there. Because when you ship with us, your business becomes our business. Thats why we make more ecommerce deliveries to homes than anyone else in the country. The United StatesPostal Service. Priority you bacteria can hide in food and make you ill. Wow announcer but you can keep bacteria from ruining your day with 4 simple steps clean, separate, cook, and chill. The roadchip to food safety starts at foodsafety. Gov. Tnchts democratic Vice President ial candidate posted in a fundraising event held by our next guest. Joining us is paul holland. General partner at foundation capital. Its good to have you back. Good morning. Good morning. Thanks for having me on. A lot of discussion about the fundraisers that Hillary Clinton is going to go to out west in the coming days but it flies under the radar, especially as it relates to the valley. What is that relationship . We kind of like that. Thats one of the reasons we raised our hand and volunteered to do it. We have nine cohosts. A terrific set of friends that helped out. We had hosted tim kaine in 2009 and we are impressed with him as a person and an unusual politician. A much warmer more genuine kind of person. They looked like they wanted to connect and he and i both have a virginia background. His house is about 30 miles from the house i grew up in and a lot of people in common so it worked very naturally. I wonder if tim kaine connects to Silicon Valley in a way that maybe even Hillary Clinton cant in that. He has experience at least being a new her cal minority in some of the kmuns where he operates similar to a lot of folks in Silicon Valley experienced with the diversity there. He had education and a moderate background when it came to financial matters. In the conversations that folks out there are having with him in your event how much did his values impact the enthusiasm you saw out of that crowd. I dont know if you can contrast that. Its a very, very different experience. We were fortunate enough to sponsor an obama event back in that election cycle and he is such an extraordinary personality on top of Everything Else and obviously a historical candidate and so forth. And i will say the difference between those two as candidates is that tim has a lot more experience. A big factor in the selection is the fact that he was the councilman for a media size city but he had a lot of experience and that holds him in good stead and that came through and when you look at our event one of the things that london did very well there and they have two big threads to it. And allow people to others and literally had dozens of educators there and probably had close to 250 people. I think youre right and it flew under the radar but really appealed to the sensibilities and its a terrific fit. Part of what appeals to the voter about tim kaine is the squeaky clean image as far as politics go but the candidate he is running along side has Big Questions over her own personal ethics and how much do you think kaines reputation can cancel that out. Thats a very insightful question. I dont know that youre going to see is going to cancel anything out. And i do think its notable what has been an absolutely vicious mud slinging campaign has chronicled very well. And hes a very good guy. He has lived a good guy and has good family values in materials of his parents and family that he grew up with in the midwest and then of course as you know, his fatherinlaw was the governor of virginia when i was a little kid. He is one of the guys that lead the desegregation of schools. He has all the experience and we chatted about that yesterday and this is within my lifetime. My schools were desegregated. Can all of that go far enough to drown out the course of people saying she needs to shutdown the Clinton Foundation and as a president ial candidate she should not have short circuited in an interview about ethi ethics . I would parse those out as follows. The only thing tim kaine can be responsible for in that discussion is his selection as the Vice President. In the sense that youre judging Hillary Clinton on what sort of Decision Making does she have around these type of things, i think she is going to get an a plus for selecting tim kaine as a candidate and the indication of the direction that she wanted to be able to take things from that perspective. She is very strong in her own right and tim kaine has another set of strengths he brings to the campaign but he raises the quality and the level of the dialogue when it comes to talking about that ticket. How do you keep those supporters appearing to think that its over. I think thats a very good point. Im reading a lot more on politics and things like that around that and i think you guys are covering it. I think that theres just such a negative reaction to trump as a candidate. And its almost an indication that she is trickling down and the elements of people and thats Strong Enough motivation to get people out and focused in terms of looking at it. If i were running one of those campaigns which thankfully im not id be very focused on candidate, electoral turn out in the swing states and if theres a long turn out on the blue side theres going to be a tough run for the trump team. Were going to watch it until then. Good to see you. Thanks. Joining frus the foundation capital. Still to come five years in, how apple has changed under the leadership of ceo tim cook and how the next five years could be very different. Then talk about a big budge bust. How long were you a slave . 30 years. What is your name . Why the Box Office Bomb is perhaps another troubling sign for hollywoods summer slow down. Squawk alley will be right back. We asked him over the next 20 years whether he wants his legacy to be about basketball or investing. Take a listen. Investing. Playing basketball, you know, the focus is always on winning. Winning championships, winning championships, winning championships. Now championships come and go. Theres another team that wins another championship and another player that wins another mvp award put if you want to create something that lasts generations you have to help inspire the next generation, right . And then create something great and that generation will inspire the one behind them and thats when you create something incredible and thats the most beautiful. One thing about kobe bryant is investing is not new to him. He has been doing this for awhile. The point now is to formalize it and have impact on companies in which they see some promise. It will be very interesting to see what he does. His poise off the court. He is trilingual also speaking italian and spanish so he can go all over the world. We have to compare the portfoli portfolios. Magic johnson has done quite well in business as well. Larry bird. Theres a few success stories. My feel as good that kobe will be trying to outpace all of those that came before him. Shaq. He has to catch shaq. Our viewers will send us more we have forgotten here. Another Hollywood Box Office bust over the weekend. Julia joins us now from l. A. With that, julia. Hey, kayla. The 11 million u. S. Box office gross was even worse than the already low expectations. Another nail in the coffin for sequels and remakes. The bomb spent 100 million to produce also pushes viacoms paramount further into the loser category. The analyst is calling their problems truly shocking saying in a report that viacom studio may lose 350 million this year. A year with the biggest gap in studio leaders we have seen this century. And thats compared to 27 and while the Summer Box Office is tracking down, its actually up 5 year to date. So what is going on here . First blockbuster performance is less concentrated in the summer than it used to be with star wars the force awakens and Warner Brothers releasing batman have felt superman in march. Theres sequel and remake fatigue with 17 this summer compared to 11 last year and 13 the year before. Its higher than ever to get consumers to get the trip to theaters with growing competition from seemingly limitless original content and thanks to social media word spreads faster than ever if the film disappoints. So negative reviews like the 28 Rotten Tomatoes ratings can really sting, guys. Thanks. Suicide squad still hanging in there. Well see how it turns out. How apple has changed in five years under tim cooks leadership and what the next five years could bring. And then another edition of speak easy with john harang gwod gary johnson. Dont miss that. Youre here to buy a car. Former french president declaring he will run for president in a 2017 election. He lost the election in 2012 to a sky mark airlines jet making an Emergency Landing in japan this morning after a passengers phone charging battery filled the plane with smoke. Two flight attendants suffering minor burns while extinguishing it. And louisiana is getting ready for put obamas visit to the flood tajhed areas where at least 13 people have died. The states demeanor cattic governor defending the decision to delay his trip until tomorrow. President obama that was on a Summer Vacation had been waiting until the Recovery Efforts began to visit baton rouge. Thats the news update this hour. Back downtown to squawk alley. Carl, back to you. Thank you. Were counting down to the european close a couple of minutes ago. Seema is at hq with that. European stocks starting the week off in the red. Some of the indices clawing back here. An active discussion around the direction of the price of oil after the over 20 gain sibs august. Were looking at wti crude trading on 47 in todays trade and no surprise some of the biggest losers are in the energy space. Take a look at stat oil and rio tinto all trading in negative territory. Down 2. 7 . One bright spot is syngenta. They cleared the take over of the