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tv   Fast Money Halftime Report  CNBC  October 27, 2021 12:00pm-1:00pm EDT

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depreciating >> certainly, investors have had practice dealing with some of those custom metrics and not a bad opening trade and on an upsized deal that priced at 17 and the high end of the range and tonight we get to ebay before we move forward tomorrow night with amazon and apple. let's get to the judge and the half carl, thanks so much welcome to "the halftime report." i'm scott wapner front and center this hour, big earnings beats from microsoft and alphabet our investment committee debating the best mega-cap tech stock to own right now. we'll set you up for apple and amazon tomorrow, joining me is stephanie weiss, and joe terra nova we are still on s&p 500 watch and it's peeling back a little bit and what was a gain on the dow is now a loss of 130 points just shy of this nasdaq's the winner today, no big surprise given what microsoft and alphabet delivered and microsoft a new all-time
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high teranova, i'll start with you. i don't know, i run out of superlatives when i describe what microsoft continues to do what about you >> i do, as well, and i think you have to understand something with microsoft, with alphabet and a lot of these mega-cap technology stocks. where we are at this point in the calendar, if you are not long these names you're actually short. managing a portfolio especially if your strategy is not market cap weighted and inclusive these names you have a performance challenge as we move forward, but specifically toward microsoft, i've held this position now for the last couple of years we know the management team is phenomenal and the growth of the cloud has been nothing short of staggering and the regulatory concerns that have surrounded big technology, microsoft does not seem to have similar concerns that maybe some of the others have. so it's a source of capital
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inflows for a variety of reasons. think about chinese regulatory pressure what does that mean? that means capital inflows into u.s.-based technologies microsoft and it's utilized its bond proxy and i don't want see microsoft and a lot of these other names as facing the inflationary pressures that the perception of technology could be in the inflationary environment could be because they are an asset light business they are not long the duration and they are something that belongs in everyone's portfolio not just for today, but the next coming years. >> you've been talking about it for a long time. i remember having the funny conversation with you. it's got to be at least three years ago at this point about the pronunciation of azure, the cloud business, and i know you remember that, too, but jason, it's not a big position for you, as well. revenues grew 22% and that's the fastest since 2018 and here's what jim cramer said to his
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investment club audience, quote. we think microsoft remains one of the strongest secular growth on the planet and analysts take up numbers and for the stock to continue as the economy gets back online in digital infrastructure it's a big position for you, too. >> yeah. scott. absolutely you mentioned at the top at microsoft revenue growth is 22% growth year over year. azure business is up 50% year over year. the numbers were explosive as they've been over the last couple of quarters and joe makes a great point. tech, when i think about pricing power, tech is inherently deflationary, and supply chain issues and big mega-cap tech is virtually immune to these pieces we like the name and it's been another good print and one of many in quarters to come >> jenny and then there's jenny.
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jenny doesn't own microsoft and she prefers facebook on a valuation basis. i'll give you the fact that facebook's cheaper than microsoft right now, but is that the only thing that you look at when deciding between these two businesses >> no. not at all in fact you know the reason is much bigger than that. facebook, because of those five faangs, it had when we started investing there it had the largest, most sustainable earnings growth coupled with a really strong story that would suggest that that earnings growth would sustain and the right valuation for u s, and i always say the valuation in concert with the story, but because we always have an eye on free cash flow that's one of our u hurdles and i was looking to the left to figure on the exactly what facebook is up year to date, but i didn't get it.
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>> not as much as microsoft and i'll save you from trying to figure that out. >> no, it's not. it's 16% >> microsoft's up 43% year to date, just so we have all of the numbers in front of us >> here's the thing. i want to waugz peocaution peopt fomo you do not need microsoft to do really well. united rentals is up 54% year to date we've got all sorts of things. american express up almost 50% year to date there are great returns out there. you don't have to own microsoft to do well you don't have to own faangs or all five of them i think we need to move away from saying we need to own faangs on. >> let me ask you this -- >> yep >> forgive me for interrupting you. when you said you don't have to own microsoft and you mentioned these other names and you mentioned united rentals or american express do you bank on the performance of those companies over the next five years guaranteed? investors would say i can bank on microsoft over the next five
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years almost guaranteed. not a cyclically natured as some of the other businesses that you mentioned. that's what brings people into the big, mega-cap tech names it's almost guaranteed growth. >> i think that's a tricky statement to make. look at amazon this year amazon's done very little on the year look at apple. apple is up, what? about 12% year to date that's not great compared to a stock market that's up 22% so i don't think that you should bank on that maybe you have been in the past and maybe you could say that over the next ten years and they're companies that we've owned over the long term and they've delivered strong returns, too so you bring up a good point and if you put money under the mattress i would go so that microsoft is the great place to be will they outperform >> i'm not sure. i think there's a lot out there and we get myopic because the apples and the amazons and the face books are fun to talk
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about, but there are other ways to remember that, too given that we're in a dicey year last year. >> no question about that. maybe i overstated it a little bit, but you know the point, steve, that i'm trying to make the numbers are astounding, right? the way that david faber was talking about it earlier this morning on "squawk on the street," the amazement in the size of these businesses now the ability to grow revenues and the magnitude that they do and you think they will continue to do, where else do you find that? jenny's point is well taken. she's a different kind of investor than a lot of people and she's not afraid to not open the sexiest names in the market. i totally get that and i respect that, but where else do you find this sort of growth? >> well, the answer is you can find growth elsewhere.
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>> to this degree? to this degree companies that are growing their businesses and revenues to this magnitude? >> no. not on that revenue base and not with embedded growth in their business already so here's how i look at it, and don't jump down my throat with the first words i'm going to say. i look at these as slightly better than cash substance, not because of the performance because cash is depleting asset, but because i really don't have to pay attention to in my portfolio. i can spend my time doing other things >> exactly >> anybody can tell you that microsoft -- and that's your point. >> that microsoft or amazon or any of the faangs are analyzable is kidding themselves and kidding their investors. these are stocks that you own. they're forever stocks at some point they won't be able to grow 50% on top of that revenue base, but people have been calling the end of that for years already and guess what
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they've been wrong so they're the easiest stocks own for so many reasons and fortunately, i don't have hundreds of thousands of investors saying, hey, why do you own united rentals which i don't. no one questioned microsoft even if it underperforms, but guess what the companies, the bigger they get and the more business that comes to them. although not with microsoft. so, yeah i love them. i'll do well with them and if there's a year of underperformance with amazon, who cares? they'll catch up they innovate and that's the most important thing and when people ignore is they have subscription models. amazon has it. microsoft has it google's got it and that's what markets like and that's what gets a higher valuation. so, yeah, so i'm there and i'm happy with them. facebook is one that i'm looking for the exit door because they've got their own set of issues, frankly, and i don't think it's as a forever stock as
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these. so i would rather pay a higher multiple to have a more secure earnings and revenue profile than i have with facebook. >> and not like a crazy multiple by any stretch pete najarian joins us now and the co-founder of market rebellion. you've been the most vocal supporters of satya nadella and the stock for as long as i can remember it's one of the largest positions along with apple your reaction to what the company delivered today and your position in the stock as it stands right now >> yeah, so my reaction would be extraordinary once again and these guysall hid it so i don' keep hitting the same numbers, but when you look at it it's 50%, i think it was 48%, and then you look at other categories like linkedin which was a huge acquisition not that terribly long ago and that's a big part of what they're doing and their growth is 40-plus percent there and then you look
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at the securities solutions area and that's a growth of 50% there's growth in so many different areas and that's why, i think, february 2015, satya nadella was named the ceo. the stock was underneath 40 at the time it was a buy then. it's still a buy now because even looking forward from here, when you look at what we're talking about valuation wise, we're looking at a 30-plus call it p-e right now, but look at the growth we look at growth in other areas and they don't have anything close to this kind of a p-e. i think this is a company that continues to re-imagine themselves into the future and they continue to go into other areas and that's -- they were talking about subscription models and that's another one. i can tell you this, the options in there today are absolutely on fire, scott. as a matter of fact, it's one of the top traders of the day and 7,000 contracts have traded today and that's multiples of what they normally would trade they've already gone 26 million stock shares have traded today which is well above a full day
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already and it gives you an idea for the appetite people have for this name. it got up to almost 325 earlier before a pullback. so everything that i heard on that call. everything satya has been doing, i think, as a ceo for this length of time has been absolutely done to perfect and i think that continues >> if i asked you this next question ten years ago you would have thrown a pie in my face or something comparable is microsoft right now the best mega-cap tech stock to own pete najarian? >> right now i would say absolutely yes, and i don't even have to question that. i look around at all of the different levers that they can pull, and i look at it and i say absolutely this is a multitrillion company that has growth areas that are close to or around 50% that's unheard of and then you start to look asthat p-e is probably actually a very appetizing and i look at it in the low 30s, and i think this stock can stand up against
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anybody you want to compare it to, scott. >> pete, thank you for coming on >> i'll let you bounce because i want to talk about a couple of other things like alphabet which is up 62% year to date oh, by the way. al fabbet a alphabet, and the highs of the day almost 6%. it took a little while to stab ramping up, but there you go with 6%. target to 35, oppenheimer, 34. raymond james, 3090 at key bank and that looks like a street high to me we have a lot of ownership on the desk jenny, you don't own it. joe, again, it's a top five position for you >> without question. there was a dramatic reversal in the capital allocation strategy for this company over the last three years. they recognized how the strategy of continually buying back
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shares was benefiting companies like apple there was a clear focus on generating that cash flow and returning it to the shareholders we talked about this three weeks ago. guess what q3 they bought it back well over $12 billion worth of stock this is a company, yes, i understand there was a little bit of frustration surrounding youtube and the cloud business those numbers did not meet estimates, but that's okay that's a moment in time, and the business is in the right direction, and i would urge investors to really focus on the capital allocation story because there is a much longer runway to come with that that's going to take this stock towards those price targets, and let's put that wall graphic back up guys, please when you talk about the youtube -- you say that's a disappointment nearly $7.5 billion in ad revenue for a piece of their business, gives you an idea what point i think i'm trying to
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make, jenny, when i talk to you about the level of growth that these companies continue to deliver on and it's just so hard to find it anywhere else, not to say that there aren't other stocks that you can own and have sizeable appreciation in the stock price. you say united rentals and the point's well taken, but these numbers are crazy. >> i think here's where i get a little bit cautious. steve said before they're innovative and here's the truism innovation is always competed away and we need to be really careful about keeping an eye out for that so, for example, about this time last year we were talking about zoom and how amazing zoom was and how great that was and there you see microsoft competing with teams and google competing with meets and there's so much competition and some of the big guys are starting to compete with each other and i think we need to be really careful presuming that they continue to grow in the same rates in the future that they've grown at in the past they are mega-great companies.
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i don't want argue with the quality of any of them i just ng fmanage money i can f equally good returns some i will, some i won't, but we need to remember that and the innovation is competed away. >> when i ask pete that microsoft is the best mega-cap stock to own right now i wonder if josh brown will take issue with that. he joins us on the phone given what he said yesterday in the alphabet print maybe it's alphabet, josh, and they give you no reason to think otherwise based on what they deliver. >> i've been listening to the whole conversation i agree with everything everyone said except for jenny. i don't think you have to choose google or microsoft. i don't think most people are. they compete and overlap in some areas, without a doubt i've chosen google and pete's chosen microsoft and we've both made a lot of money as a result, but they aren't big enough to
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the point where they have to murder each other, and i think the idea that steve was talking about, he didn't used word, but i think what he was trying to say is these are platform companies and the annually recurring revenue is a very important part of that story and just the way that google is so embedded in our daily lives and not just personally, but from a business standpoint, my whole company runson g suite both get the same thing accomplished for us and we cannot live without them and there were so many ways in which we can get into gmail and we can get into the google cloud which was a 45% quarter, by the way, and not too shabby and then you look at the consumer facing stuff. search jenny talks about these edges being competed away. let me know because search is essentially a monopoly and it's been dominant for 20 years now i don't know that anyone's
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coming any time soon to even attempt. so sometimes companies get so big that there is no way to compete. apple's a really great example of that, too so is amazon there are other companies in the space and they'll carve out niches for themselves, but the idea that some of these edges can be competed away i think has been repeatedly beaten up in this era, like, year after year and not only are these companies not facing any real competition, but they're getting bigger and you don't understand where the growth is coming from. it just keeps coming >> wnot to mention, josh, you can -- you can use growth at a reasonable price for a stock like this. it's at 30 times we're not talking about some stratospheric valuation for a name going to the magnitude that they are, as well and it's knocking on the door of 2 trillion mark at 30 times earnings
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>> so two more things, joe terranova talked about the capital allocation, and i think that's a really important part of the story, underappreciated they are somewhat behind where apple was when they got really serious, but they are serious. the hiring of luke from morgan stanley a few years back was a very important milestone in this company's history and i think what she's been able to do is take some of the criticisms that wall street has historically had about some of the big bets google is making and the lack of roi, et cetera, she's been able to compartmentalize it into its own bucket that nobody worries about. >> here's what's cool, though. shareholders are not penalizing the company for the fact that isn't a lot of other revenue coming into the bets, but some day i believe it will be, but i don't know where it will come from it could be waymo if it was a standalone company
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okay that's the automated driving if quantum computing becomes the next big thing from other bets and generated revenue, talk to 99% of investors and understand they don't even know what quantum computing is and let alone why it might be important and it could be paradigm shifting in the way that the iphone was in 2007 nobody's assigning any value to the valuation of google for that at all so there are a lot of levers still to be pulled on the capital allocation side. they are want doing buybacks to the extent that they could they're generating so much cash they don't even know what to do with it and there are huge opportunities there, and the other bet segment which you're beth no benefit from as a shareholder that can literally change the world depending on what comes out and there's a lot still to live and you're not paying 50 times earnings and you're paying 25 net of earnings and the innovation here is obvious. the growth is obvious, no, it's
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not going to go on forever, but it doesn't have to stop any time soon. >> i think a point that we were trying to make in the conversation earlier with jenny is that you are still getting unbelievable growth even if you don't get to the degree that you have now josh, i appreciate it. i know you have to bounce. that's josh brown. steve weiss, wrap this up and then i'm moving on alphabet, because you own it, as well. >> i own it. i own microsoft and to me, if i had to pick one going ahead i would pick google. thankfully, i don't have to. a lot of what josh cite side that cited is that while there's new product requirements turning up great to windows, google really doesn't have any of that so there's no way it will compete with them on search. microsoft's tried it, failed at it, so it would be google. >> highs of the day again, we're pushing the door on $2 trillion in market cap. it's an all-time high.
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that high today, 2982. so it's just a little bit shy of the session and we'll keep our eye on that if it does hit that milestone, we'll be sure to let you know and it may happen at some point during this day let's talk about boeing and general motors and we'll get apple and amazon tomorrow so we'll wait until tomorrow to walk you up to that and find out what the committee thinks. i want to talk about boeing and bring in our farmer. steve weiss hates boeing, as you know, but what's your read what's your read on this year to date the stock's down 3.5% one month down 7% and somehow you will come on and tell me everything is just great i'm not going to tell you everything's great and there is a serious management problem here and you can see it when the call starts and when he talks about the vaccine mandates. >> he is dave calhoun, right he is dave cal hurhoun, the ceo,
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right? >> yeah. serious credibility here, what the investing community wants to hear is when is the 787 going to start getting delivered again. there's no update on that and it's been several months and that's a serious credibility issue. he says that the 737 max is going to be approved in china by the end of the year. that's a milestone that's two months away. okay i'll give him his two months because that's worth waiting for if it comes through this stock will take off. if it comes through they'll start delivering 737 maxes in the first quarter, absent that, i'm not going to tell you everything is rosy if you'll ask me why stay in the stock? >> that's my next question. >> there's one very good reason. the airline industry is back in growth mode. plane orders are being placed including at boeing and if you want to grow your airline, as many airlines across the world do, you want to go to boeing and
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airbus has groewn over the past two years and i wi don't want t talk about the duopoly bet betweenburg, and it's stupid and silly. >> it's not stupid and silly we've seen orders go from airbus to boeing. >> it's not. it's factually false >> it's not factually false, jim. >> they both have positive flows because it is a duopoly. i've told you repeatedly and i've tried to help you and you don't want that type of aid to make money he presided as chairman of the board over all of the safety issues and the problems the company's having and the issue is boeing can't get a new ceo because they've got to continue to deal with the faa and foreign regulators so they're stuck with terrible management so the stock will go up in spite of itself over time, but it will
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really go higher, i believe, if they get new management in there. so, look, to hold on to the china order, that's great and it may not happen you point out that management has a credibility issue and you're willing to bet on what he said i saw the interview with phil lebeau great interview, you brought him here, and it confirmed everything that i thought about calhoun and the stock. i would go and make money elsewhere if i were you, it's taking up space in your portfolio and i hate to see such a good friend aggravated day to day to day am i right, scott? >> you can respond to that, but it is striking to me that you suggest they have a management credibility issue and you turn right around in the second half of the sentence and say "but." >> but i explained it and il'll explain it again airlines are growing their fleet and you can't go to airbus and that's not certified even if you
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trust their certification process. you have to go to boeing and it's a captive market and the reason to own it as steve said the stock will go up and it will go up when the ceo changes which the ceo will change i think the faa actually wants that, but probably the next catalyst is when boeing sells planes to fedex to get operations back on order and back on track and maybe fedex will be used to create moderna vaccines >> steve, the craziest thing is you can insert somebody else talking about facebook instead of jim defending boeing. in all respects it's a duopoly in terms of the market it's got a lot of flees on the story and for all intents and purposes, it's been a teflon stock. facebook is 15% or so off of its highs and we know where boeing is off of its high, but at the end of the day jim lays out the fundamentals for boeing in the same way a bull on facebook would lay it out and say that's why i want to own the stock.
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>> except there's one difference here boeing is till makinstill makins way out of the deep, deep holes with the max we don't know what the concessions are that the company will be giving the airline companies on a continuing basis. they may sell a lot of airplanes, but my bet is they sell them for a lot lower margins, if any margins are what they have to give to the company as recompense in addition to the money they've paid them on the issues they've had >> let's do this let's take a quick break and come right back and i want to talk about general moranots d steve wants to weigh in and i don't want to miss that. so we'll be right back
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we have jim lebenthal with us and i'll put you on the defensive again, i suppose gm's down 5% what gives i know the chip shortage and everything will getting if you ared ofigured out and once that does, is that the story? >> scott, scott, scott i can hear it in my head >> your perspective and you and i love to tease each other and the perspective is the stock is up 30% on the year and you can see the stock moving around and any time they talk about the positive top line which is that volume is increasing in production and why does the stock go down and continue to go down and it's
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because of the semiconductor shortage when you put those two together they're very clear that their margins are going higher and this is a clear case where you can look at the near-term issues with raw material prices and shortages and realize that the demand is not just there it's huge. >> you say that all the time, but why isn't the market looking through it if it's so obvious? the stock is down 5% i say it all of the time and i'm right. the stock is up 30% on the year. it's a bad day and i'm not going to get all twisted around on it and the stock will go higher from here and they'll print money in the fourth quarter of this year and next year when the margin goes up and the volumes go up. it's a bad day, if you want to roast me on it, that's fine. >> i don't want to roast you on it, i just want an honest answer >> i'm giving you an honest answer >> over the last three months and everybody knows that the chip shortage exists and if it was that obvious the stock would be down 5% and it started moving on those comments.
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>> scott, we know that the market sometimes gets it wrong and none of us would be on the show and all of the stocks would be on fair value and the market is getting it wrong today and if anybody wants to sell into this news you're doing the wrong thing and for those of you that don't own it this is your opportunity to buy it. this is the market getting it wrong. >> jimmy, i'm going to make that the last word. >> okay, brother >> i'll see you soon that's jim lebenthal shares of royal dutch/shell. i think jimmy used to own that, too. sparking on a new activist mode. jenny is following that for us another interesting letter from there loeb >> very interesting. basically what's going on here and this is according to a letter that we obtained that they sent out to shareholders. they're pushing and kind of pressuring shell to do something here while stopping short of any kind of proxy fight. they're not looking for an overhaul of the board and they're not looking for any management refreshment or anything to that matter yet. >> yet >> exactly let's put that caveat in there.
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>> at this stage it's very early days in that position and they built up a stake in the second and third quarters and i am told that the stake size is anywhere from 500 million to $1 billion and so far they've pretty much taken their position and they're not looking to add it unless it's opportunistic at this point in time, but basically what they're saying here and i'm going to quote directly from the letter, they say that shell has too many competing stakeholders pushing it in too many different directions in strategies attempting to appease multiple interests, but satisfying none basically, what they're saying and this is based on a person familiar with the matter and this is a company that could be better off with the constituency, separating into four separate businesses or up to four separate businesses in order to appease them because they say that in order to appease all of these
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various constituency, shell has ended up with quote, unhappy shareholders who have been starved of returned and an unhappy society that wants to see shell do more to decarbonize and they know it's one of the cheapest caps in the world trading at 2022 ebitda the idea here is that you have the esg investors on one hand who want them to decarbonize faster you have the regulators who want to decarbonize faster and then the shareholder base with inexpensive oil and gas and the ability to allow that to continue prospering in the meantime as they make that transition so they're saying, do this as separate businesses and not under one roof >> i know you were focused on the shell new position that he documents in the letter, and i'm looking at the letter, as well and i don't want to throw you off by throwing another thing at you, but what do you make of this comment early in the letter where he says we've increased the number of single-name shorts
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in our portfolio with the quality and compound equities. it's just an interesting position that dan loeb has taken. >> especially when you think of the long/short e quit managers who avoided shorts in the last years dealing with pain in the short position and that's still the case and you do hear this increasing drumbeat from hedge fund managers who feel more comfortable getting into short positions because there's more disparity among stocks than they've seen in recent years and a lot of people will point to this idea of a rising interest rate environment and one in which inflation pressures create winners and losers as being an ideal time to get into the short book >> it's one thing to increase your short positions and another to tell someone they are, and for obvious reasons gamestop and the fallout related to that. leslie, thanks now to kayla taushche.
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a controversial proposal for reporting to the irs for accounts with under the$10,000 officially been removed from the spending package the removal comes from west virginia moderate joe manchin where he suggested that uncle sam not be in bank accounts and suggesting that joe biden share his view on the matter the white house had previously defended that proposal as a way to essentially monitor the bank accounts of the wealthy and crack down on potential tax evasion and negotiators said that proposal could have $100 million. unclooer what could be put in place to raise that figure of money and it certainly comes after the financial industry has been really, really fighting against this despite the white house saying that it's needed, but officially, scott, according to three sources familiar to the matter, this controversial bank reporting proposal is out of this package
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scott? >> kayla, thank you. >> that's kayla usitache. the investment committee making moves as usual we'll tell you what they are next ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat.
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♪ ♪ ♪ good afternoon, everyone i'm tyler mathisen and here is your cnbc news update at this hour holiday spending may hit a new record this year the national retail federation expects american consumers will shell out as much as $859 billion. the industry group expects retailers will hire between 500 and 665,000 seasonal workers to handle the added demand. in london the u.s. launching a new effort to make wikileaks founder julian assange face american justice dozens of assange supporters gathering outside the courtroom where british judges are hearing the u.s. request the u.s. government is seeking to overturn a lower court's refusal to allow assange to be extradited >> streets are nearly empty in
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the capital of sudan today many banks and businesses closed for a third day in a row residents have erected barricades in opposition to the military coup this week and overnight security forces detained three prominent prdecro-moacy activists. "halftime" will be right back after this this may look like a regular movie night. but if you're a kid with diabetes, it's more. it's the simple act of enjoying time with friends, knowing you understand your glucose levels. ♪♪
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let's talk about some moves. jenny, new york community bank you are buying it on the dip, is that right >> that's right. so they reported earnings this morning, and they had two little speed bumps. they have a loan that is not current and it should be current by year end and that should be current on the wall and they have a merger with the bank being pushed off a little bit longer than expected and these are hurdles that took people a little while to get over them and it hasn't changed our investment thesis and we added it for accounts that aren't new, so we're feeling good about that i would have liked a rosier commentary and i like the opportunity to get in again. >> 12 month, the stock is up 55%. three months it's up 17. so here's a hiccup today, obviously, of a decline of about 8% i'll come back to you in a second because we have some chip business to discuss with you
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joe. amd, all-time high today following earnings, and i know it's a big position for you and i guess it keeps showing why it continues to eat intel's lunch [ laughter ] >> all right i'm want going to take that bait, but what i will say -- >> bait? >> what's important for the viewers to understand is it's -- it's very easy i bought this stock in may at below $80. i have a 60% gain in the stock and very easy to come on the show and say okay, i'm going to ring the register, but this is exactly why you stay in the stock because the fundamental positive momentum for this company continues to build it's a beaten race and the gross margin expansion is real and it's up 48% now. that gross margin expansion is going to continue through 2022 well above 50% and now when i said take the bait, i'm going to go back to your point. the server cpu market share that amd is slowly acquiring is
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staggering they're now at 13.7% where they were just a couple of years ago was well below 4%. this is six consecutive quarters of growth and collectively, these are all the reasons why you stay with a stock like this even being at an all-time high and you can expect it will exceed that and push towards 150. >> the most important thing you said to me was six consecutive quarters of growth, if, if fact, i heard you and wrote that down correctly. >> market share, server cpu growth they are taking market share. >> right >> from what someone, scott. i don't know who that is >> i don't want either >> i'll leave you to figure it out. >> jenny knows i'm going to go to jenny for the answer jenny? >> so, you know, i love this is like the beat the crap out of jenny day and having a great
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time >> that's not the intention. that's not the intensition, and did not report amd's earnings. it is what it is. >> here's the thing. fair enough. absolutely true, but intel earned $22 billion last year guess what that's three times more than nvidia earned and now we can go on both sides of the fence and i can go back to exactly what i was right about that josh tried to argue about which is that innovation was competed away and intel was the market leader for a long time. that innovation, that is being eroded away by competition that being said, they still have a lot of really great stuff going for them which is $22 billion in earnings and by the way, did you know that their revenues have grown by 7% over the past five years? their earnings have grown by 8% and no one has paid attention to this because it's overshadowed and i've been early which we all
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know also means wrong on intel, but the long term thesis is still intact and we did a deep dive, revisit of this to say is our thesis still intact? do we still believe this and we do and the reason is since pat gel singer took over there have been no production issues and they have new products coming out and we think they might be back to $6 in earnings by 2024 if you do that and put a 15 times multiple on it which is a fraction of their competitors which takes market share and intel is still growing in spite of that, and i don't think that's being too crazy and i'm sticking with it for the long run in the same way that joe is on amd, but just with a totally different metric behind it by the way, it's one position that we've held for a year and a half it's not the wholeportfolio. >> i totally get it. we'll check back with it in five years and we'll see where it is. >> thank you >> two stocks you need to watch headed into earnings after the bell
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jason snipe owns both of them. we're back right after this. do you stay down? or do you get up? [announcer] and this fight is a long way from over, leonard is coming back. ♪♪ ♪♪
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let's look ahead to two other names reporting after the bell jason snipe, you own both of those. which one are you most excited for? >> i want to take servicenow here servicenow is a great covid winner, just the ability to track work flows, you know, in a hybrid environment, obviously covid accelerated their growth
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they're up about 21% year-to-date it is an expensive stock, right, but i love the fundamental story and i think there's continued growth from here twilio is a little different story. they've had really strong revenue growth, only up about 2% year-to-date, but the street just hasn't given them credit this year for the revenue growth another expensive stock. part of the story with twilio, moving early february and going out throughout the year and i like them both and we continue to own them. >> joe, didn't you own twilio at one point? >> i sure did. i got into twilio back in 2018 at really appealing level. jason is spot on with his assessment of twilio it has been in a down trend since february at 4.57 i tell you what though, if they're able to deliver a strong quarter here and kind of reignite some of the positive sentiment, i would actually go with that. i would consider myself purchasing it and i think the viewer should as well. i think that reversal of
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sentiment will result in higher pricing over the coming quarters >> okay. you let us know. >> they have to show you -- yes, they have to show you a good quarter tonight. they have to have a really strong quarter >> you give us a heads up if you do anything here we will step away for two minutes and come back with "final trades" next. are you our retirement plan with voya, keeps us moving forward. hey, kevin! hey, guys! they have customized solutions to help our family's l needs... giving us confidence in our future... ...and in kevin's. voya. well planned. well invested. well protected.
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jenny harrington you go first. >> okay. lumen, another one where last week we did a really deep dive and reassessed our investment thesis, and we agree with what we initially thought which is that the fiber assets are hugely valuable and under appreciated management is at an inflection point where they're trying to unlock those we think it is trading at 50% of the private market value equivalent would be. 8% yield >> all right thank you. jason snipe. >> nike, i really like their product pipeline, ecommerce and dtc business continues to improve. just do it stay long. nike >> you think this stock has something finally in it, because it has been kind of a disappointment >> it has. i think there's continuing -- i think there's some value there so let's see how it moves into the fourth quarter >> steve weiss >> volkswagen. they report in the morning before we get in, and they had cautioned that the second half is when they will feel the semi
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shortage they didn't feel it the first half i think there's a very small chance they announce they will spin off porsche there have been articles in the paper about that in europe that will be monstrous i don't know if i would buy from the earnings but definitely buy tomorrow either way. >> joe >> st. louis-based $12 billion company bunge, renewable diesel vegetable oil. strong demand. >> thanks, guys. good to see everybody. "the exchange" is now. ♪ thank you, scott hi, everybody. i'm kelly evans. here is what is coming up on "the exchange" markets are hovering near record highs and one strategist says he has been buying some of the recently beaten down names including boeing and facebook. what has him looking past negative headlines and seeing 100% upside in both. jet blue posting better than expected results but issuing weaker guidance for next quarter citing pressure from fuel prices and labor costs. an exclusive interview with the ceo moments ago


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