. >> announcer: coming up, amazon's prime day isn't just about amazon anymore how others are cashing in on the company's big day. plus, one billionaire investor says google should be federally investigated why? and dozen his role on facebook's board have anything to do with his call >>> and coffee without the coffee beans this is "the exchange" on cnbc. . they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ . >>> welcome back to "the exchange," everybody that time of year again, amazon's prime day is in full swing. it is a 48-hour discount bonanza that promises a massive number of sales and new prime members for amazon but this year, competitors are throwing their hats in the rick we will explain that with lauren thomas who is cnbc.com's retail reporter and courtney reagan welcome to both of you what's different about prime this year and why is prime so prime to amazon? >> so prime this year is longer, longer th

sales are not actually amazon direct they are third-party retailers, in many cases using amazon's fulfillment. it's not just amazon's platform alone giving some argument that this isn't quite as cut and dry as the treasury secretary presented. take a look in shopify it has a $36 billion market cap. that has tripled in two years. and its business is really allowing businesses to compete without being on amazon necessarily, though as part of the latform, you can also operate on amazon. don't forget about etsy. they have an $8 billion market cap. that has quadrupled in two years. amazon was competing directly with etsy. and you know what, they are still doing just fine. one area that has popped out for amazon anti-trustwise is again that third party retailing platform there have been some complaints that amazon has a lot of data about what customer demand is for those third party goods. can then use that against its competition that might be an angle that the feds choose to pursue but we haven't even talked about cloud, kelly you know, amazon has not really tied the retail and cloud businesses c

but this is, amazon is going to deal with some of the same problems that established hundred-year-old retailers will deal with. >> as people learn more about it, will they not do business in pennsylvania how could they ever be responsible for every third party product sold on their platform this is a story to follow. >>> a major airline is making a strange request to passengers, to say don't fly check this out >> do you always have to meet face-to-face could you take the train instead? could you contribute by compensating your co2 emissions or packing light >> i mean, this is part of klm royal dutch airlines' fly responsibly campaign they're trying to cut down on carbon emissions flights only account for 3% of global co2 emissions >> only? >> it's like liquor companies saying drink responsibly >> i thought they were going to say, use smaller shampoo bottles, lose weight >> eat less, stop breathing. >> it's so european, isn't it? >> this is all marketing >> it's green-washing. >> if they were being serious about it, they would make the carbon offsetting compulsory they would say, we're

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>> it's through amazon, through the turnkey portal itself. we did a story last year about lennar, one of the biggest homebuilders in the nation they were putting amazon products in lennar homes in their show rooms as part of this show and sell strategy amazon really trying to get into that home services and that home technology business with the builders and now with the real estate agents. >> and jason, if their goal -- and look, we talk about this a lot, how the the next battle is the battle for your living room, to be the smart home platform. guess who else wants to do that as far as i can tell, apple, google, what moves are they going to have to make in response if amazon's going aggressively into partnering with real estate services? >> amazon already has something like two-thirds market share when it comes to the voice assistant in your home, so they have a big, big lead, you know it's still early days, but with these partnerships coupled with just the consumer demand that they run through their website for all these other products, it

the amazon effect. the on-demand economy means it's more useful to have supplies closer to the economy where you can deliver quickly. one-day delivery will become a two-hour delivery and ultimately a report in the special report amazon is thinking, how can we get to 15-minute delivery. >> you can't do that from china. >> you can't but i guess that fine line vijay is the gap between what people are willing to pay for convenience and what they are simply willing to pay. >> this is the tension you put your finger right on it. as we move from an old model of globalization that was make it incredibly cheap, sell it at walmart for a few bucks. that was an efficient model. cut costs 1 or 2%. we're now entering a messier world of slow-balization but smarter, shorter, faster supply chains and that's going to create a lot of possibilities for companies that want to do, let's say, rapid turn around more innovation. innovation loops get faster when you're closer to the customer. >> so you look at india, for example

amazon hits the right note and american eagle jumps on the cbd bandwagon. that's all ahead in rapid fire advanced safety technology on a full line of vehicles. now, at the lexus golden opportunity sales event. lease the 2019 es 350 for $379 a month, for 36 months, and we'll make your first month's payment. experience amazing. - my degree from snhu has helped me tremendously. (gentle music) the flexible class schedules allow me to go to work full-time, run my catering business and be a mom and parent. when i reached this accomplishment, it was like, it's here, it's happening, it's now. souwe, atern new hampshire university, are the ones who succeed. we are the ones who break through. >>> welcome back let's catch you up on a few stories that should be on your radar today. it's rapid fire. here with their takes are leslie picker bill, you're supposed to be in that chair today >> that chair? >> youwant to switch >> no, i'm -- no, no, wait i'm hooked up to the chair can't do that. >> i was going to say. i know our director can handle it alan can handle anything

as opposed to offering a one-time toaster >> if we're now analogizing if that's a word. >> it is >> amazon prime, costco gold, and spotify to a toaster what, does that tell us about those businesses >> or our consumption. you open a bank account and you fall asleep. you never leave. >> unless they charge me a fee >> even if they charge you a fee, when was the last time you changed banks? >> the reason why is because i've always found the situation that i paid the least amount of fees on or zero fees no matter how much i have to transfer. >> do you bank-hop that much >> i don't bank-hop. i always find a product within my banking organization that allows me to have a fee-free situation. >> i had to change upon marriage and let me tell you, it took a lot of in-person long, drawn out. good luck. >> i hoped he was worth it [ laughter ] >> my wife and i both have separate >> so do we. >> separate banks. >>> topic for you. here's a new school. bitcoin has rebounded big time this year. and a new study shows just how energy intensive the crypto currency can be. cambridge researchers shows us that t

amazon a little smaller of a business but it's expected to grow faster because it's not as mature >> julia, what jumped out to you about facebook last night which, again, put up -- just showed the business continues to execute despite all the headwinds it's facing >> facebook growing as revenue faster than expected what i thought was so interesting, kelly, was during the earnings call last night there was a moment where the stock turned around. it had been higher and reversed and went into the red. that's when the cfo warned that they expect revenue to have a pronounced deceleration in the fourth quarter and going into 2020 and he said that's because of uncertainties around ad targeting. i do think facebook is not entirely out of the woods yet, and they don't entirely know how some of these changes in terms of a regulatory standpoint and in terms of consumer behavior around privacy are going to impact their ad business >> which raises the larger question, is their efficacy driven by the very practices that regulators are trying to crack down on? >> it's going to be a huge impact on t

amazon posting a rare miss on eps. netflix trying to recover from its disappointment last week and microsoft regaining the crown as the world's biggest company. for more i'm joined by paul, the lead portfolio manager of the wireless fund. paul, what's the takeaway message for you here >> the way i look at this, kelly, is that as i thought it would be this quarterly earnings season has been decidedly mixed. now one of the things that we have to absorb when we take a look at companies like amazon is some companies are delivering and guiding to revenues better than expectations, which is great. but they miss on earnings per share, and i think it's mostly because of a self-inflicted wound, which is the realities of most of these internet companies. they are going to have to spend more to meet these regulations for privacy. >> in amazon - >> so fizz a company still growing its top line but missing eps for reason of a self-inflicted wound, i think that's okay. >> so in amazon's case it's investing in one-day shipping. i'm su

with facebook about this coin >>> next up, lady gaga is launching a new beauty line exclusively for amazon she gives retailers some serious star power as they are making a bigger move into cosmetics she said they're the right partner because it embraced self-acceptance. it will be available in september in nearly a dozen countries. >> so, it's a delicate thing all these luxury companies and even retail brands are going into partnering up with stars and saying this will sell. rihanna is partnering lmh, all going after these stars. and it's a new audience. these influencers are big with generation z if the price points are right and the product is right, fine but rihanna is now selling $200 t-shirts, $1,500 jackets that's not her audience. makeup - >> it's aspirational, though to be so rich to own that. but your parents have credit cards or kids' parents have credit cards >> i think this is good because her audience, makeup, amazon, that's a good thing. >> you know who else has credit for this is oddly kylie jenner she came out first on the scene with these kits. we talked about it making he

amazon's bonanza kicks off at 3:00 a.m. monday this year it's over two days it's expected to generate nearly $6 billion in sales for amazon interestingly enough, big names like walmart, target, and best buy now offering up their own deals. this is turning into the new black friday >> it is and the question is will people actually turn to the competitors or will they just go where they think they can get these deals in what's known for just having the lowest prices? i will say, though, stretching it out to 48 hours does give consumers more of an opportunity to do some price discovery by looking at other sites. so we'll see how that translates into sales >> i've been a long-time prime member i am overwhelmed and it's not even prime day yet i am overwhelmed in the lead-up to prime day i've got the coupon that says they're going to give me 10% off prime if i shop at whole foods i'm about ready to say no to cyber shopping all together because i'm so overwhelmed >> wow >> i mean, am i a leading indicator? maybe. >> on the cutting

apparently was able to access a web application in the cloud service provider used by capital one, amazon, and steal this information and take it to social media and many different social media accounts brag about what she had found she was arrested earlier this week >> and the breach apparently took place in march of this year why are we only finding out about it now >> it apparently started in march and went through july. so there's still some things that are a little unclear, but it looks like he only recently was able to get into the information she had stolen and started bragging about on social media. that's where the law enforcement authorities caught her >> was the vulnerability in the cloud at the cloud provider, in other words, amazon web services, or was the vulnerability solely at capital one? >> capital one builds its web applications on an amazon cloud server so the vulnerability was in a firewall that was owned by capital one and managed by them. but that sat on an application on the cloud server. >> was this perpetrator working with anybody was she selling the data to russ

they're trying to turn their offices into an amazon warehouse in order to get the tech valuation. i don't buy it >> so all of this is happening as they get ready for what reportedly could be a september ipo. this is probably one of the companies with the most hide-profile criticisms of its business model even uber and lyft did not necessarily have the heat on them like wework their valuation has continued to go up, but what's interesting about this is something we hear with wework or we company is the amount of capital that the founders have allegedly taken off the table, in secondary sales, with every one of these rounds, the founder will take a few chips off the table. this happened when snap went public we're talking about an order of magnitude more that has already gone in the possibilities of the founders, which is over $500 million. that's a lot of money that they are effectively holding on to risk free, because they sold it on the ride up. >> do we know if we're looking at -- so you want the last they were valued's juan $47 billion are we expecting them to do much more than

>> i get apple stuff 33% off that never happens >> first world problems. >> however, that's amazon's response to. a spokesperson actually said we want to make everybody happy, but there's just such volume of orders that we don't have the capacity for delivery. so because everybody's so focused on getting the deal, they're not going to be that focused on the delivery. >> you sure are quiet over there. >> i hate cyber monday i won't buy anything on cyber monday amazon prime day is the new cyber monday >> you don't have to look buy, i you look at the deals, you'd be surprised. >> but they put you in the market with the deal, would you buy? >> an ipad i don't even need one. we have five already at the house. >> see i refuse to be sucked into the vortex of prime day. >> holier than thou. >>> tim hortons is expanding its menu to provide burgers for the first time ever. but there's a catch. these aren't real burgers. they're made from beyond meat. we need an expert to talk to us about that and we turn to our very own kate rogers >> now it's prime day. >> sully is going to be very angry. >>

top brass from apple, amazon, google, facebook, all grilled on the hill we examine the real risks facing the companies and their shareholders >> and solid demand and low interest rates home builders should be ecstatic, right? maybe not. we'll show you what's worrying them about the american housing market as "power lunch" begins right now.

multiple aggregators in streams of video games microsoft has talked about with google and we'll see amazon get into the space as well there's multiple different ways to play it as we move from physical to full game downloads, partway through as of now to eventually streaming. >> manufacturers adderall, people talk about drugs in sports, drugs in e sports, adderall is a big big deal right now. >> absolutely. and these are kids, little kids. so you want to make sure they're very careful, no one's getting any extra edge or advantage. it could get really bad. >> we want to thank you both of you guys michael, russell, thank you. >>> a lot more on the exchange, the faa didn't understand the automated system at the root of that 737 max crash and that's just one of the revelations in a new "new york times" article the author of that piece is going to join us live. taking a swing at boeing on its earnings call. >>> and new presidential debates kicking off tomorrow with health care front and center. taking it on thehi cn. which candidate does big pharma actually want? >>> welcome back to the exchang

they include the tech behemoths, facebook, alphabet, and amazon we'll tell you what's at stake >> plus, in less than an hour, some of the biggest tech executives head to the white house to talk about how to take on huawei as the u.s. ban of that chinese tech giant remains in place >> and disney, as they were just talking, the king of the box office the lion king of the box office. live action lion king movie dominating the weekend and it

earnings do in fact disappoint now, the tech rally has been highly concentrated fueled by facebook, apple, amazon, microso microsoft, all up more than 30% this year. remember, microsoft alone contributed to 15% of the s&p's gains last quarter it's worth noting that growth-oriented stocks as a whole continue to outperform value-driven stocks. that can certainly change if the outlook for tech earnings deteriorates due to factors like tariffs, a stronger dollar and a china slowdown kelly, back to you. >> thank you seema mody stocks soared in the first half of this year with the dow, the nasdaq, the s&p all posting double-digit gains can that be sustained? especially if buybacks dropped a little bit and the threat of a wider trade war with europe. let's bring in the chief investment officer henry and wall wash. markets famously climbed the wall of worry. the longer the list the better they typically can do, but we are coming off a strong first half. >> the strongest first half in over 20 years following the strongest january in over 30 years. the question then becomes the longest economic expansion o