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

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policy saying disagreements can lead to animosity. base camp said employees can engage with politics on social media and elsewhere, just not on workplace communication platforms. carl. >> yep corporate policies, everybody has to hammer them out individually depending on the culture. buckle up for tonight as we get ready for big tech earnings. we have a lot to chew on now to "the half." carl, thanks i'm scott wapner front and center this hour, what jim cramer calls the most important 72 hours of the year critical earnings from big tech. the fed meeting and more, all over the next few days, all of it impacting your money. we debate the markets' next move with the investment committee. joining me, stephanie link, jason knife, principle of odyssey advisors, pete najarian here, too. nice to see everybody. let's go to the wall it is a wait-and-see approach as we get set to enter what we
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said, jim cramer said is the gauntlet the most important 72 hours of the year, he says. get fired up or go home. josh brown, we are always fired up about this. we begin with alphabet we will talk microsoft in a moment alphabet is the best performing faang stock of the year. it is the one you said from the get-go to watch the most it has performed what are your expectations going into these reports >> scott, you are absolutely right to point that out. i am absolutely killing it anyway, alphabet, while it is an important report and it is a fast-growing mega cap stock at this point, there's really not that much variability in their earnings from quarter to quarter. you very rarely see huge misses and you very rarely see huge beats. i think it is just indicative of the way that this business has been run they tend to be very conservative with their guidance they manage to just beat it. if you look at the history of earnings disappointments or
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earnings excitement around alpha l alphabet it isn't there. i expect a good quarter. big highlights should come out of youtube very interesting if they talk about the self-driving business and whatever else they want to mention around recent, you know, lawsuits, legislation. like those are the swing factors for alphabet but i don't expect us to be shocked by what they have to say. >> steph, it has been a monster, this year up 32% year-to-date. it raises the bar. you have to believe a lot of news is already in and you say you are a little nervous. >> steph, don't worry. i'm here for you. >> i'm always a little nervous that's so nice to know, josh up 31% and the best faang year-to-date after lagging last year, right, and lagging the last couple of years i think the quarter is going to be fine.
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digital ad, we are seeing the recovery i think you will continue to see double digit growth there. youtube in search, absolutely continue to see a continuum. here is my worried, they crushed as a result in earnings. they benefited $2 billion from the absence of travel and entertainment, right, so they saved $2 billion last year which helped their margins by 40 basis points as we reopen, while i'm happy about travel surge and all of that, i worry about the operating leverage potential that being said, it is a great story. i'm not going to trade around the position it is one of my largest positions. 179 companies this week alone, 149 companies next week, by end of the next week we will have 85% of the s&p having reported earnings you are right, it is a huge, huge couple of weeks and it will be fun. >> josh, back to you for a moment you know, google is up 1.5% from the 52-week high
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is this the report tonight that sets the stock on the next leg higher, blows through the number and sets a new milestone >> it would be nice if that were the case i just don't feel that i have any edge in terms of, like, first of all how great or how immedia mediocre this report will be, but also how the stock will react. the way i have been historically with these faang stocks, if they get killed on an earning report i'm more likely to react and buy rather than sell it has been a while though again, just to remind everyone, it has been a while since tlaens been a lost of post earnings volatility in this name. it just isn't that type of stock. >> but they -- >> and i think the main reason why -- >> yeah? >> the main reason why is how reliable the advertising business is. >> sure. >> it is just not prone to shots. >> they can lay an egg though. they have in the past. >> it can happen. >> they've laid a big egg in the past, it is just now the environment feels like it is
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totally set up for the company jason snipe, you own it as well. it is a reopen place, but, again, stock is up 31% going into the print you have to believe the bar is especially high. >> without a doubt the bar is extremely high. i think digital ad revenue is in focus for sure i mean we had 80.5 trillion in market cap reporting this week between the faang names. i think it will be strong. i think it will be a solid quarter like the last couple of quarters we have seen. obviously they've been leveraged slightly to reopening trade, 10% to 20% of revenue to the dig stal spin, but i think it will be strong. >> pete, that brings me to you for a reason because i want to pivot to microsoft which i know you have liked for a long time another stock that has performed quite well this year, up 17% year-to-date it hey not be the best faang but it has been the most reliable
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faang perhaps in recent memory what now what happens with microsoft? >> i think they just continue to show us what they have in the past, scott, which is the growth that they've shown that is 50% last quarter, continuing to grow at an incredible pace, and they continue to grab some market share. i'm not necessarily saying where they're grabbing it from i don't believe it is coming from aws, but they are grabbing some of the cloud market share, and it is certainly something that's been very, very important. it is about, you know, 20% of the cloud. it is a very big portion then i look at the one stumble that i think we're wondering when google sooner or later will get more advanced percentage at least in terms of some of their cloud market share, but they're still down there in the single digits that's still not profitable. so at some point they go, i think. i think they will continue to work on that i think it will be something that google is definitely looking at as a great revenue source but i look at it for microsoft
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and i continue to see the upside there, and i think josh in the past has talked microsoft, about all of the various areas, including xbox they are killing it on every front. i expect it to be a strong quarter for microsoft. when i look at it, is it ahead of itself because of where it is trading on a pe? yeah, maybe, but they've been growing into that each and every quarter. i'm not concerned about the fact maybe they're trading around a 31 or 32 forward pe. i think it is a company with the growth they've shown us so far, they can continue to grow. there's a lot of different categories we can see that growth. >> you're not concerned too much is in this stock 17% year-to-date is a darn good move for a company like microsoft. >> yeah, when you consider the size of microsoft, yes, that has been impressive. i look at that name, i look at facebook, i look at some of the other names that have made a really nice push to the upside but when you see what microsoft has been able to accomplish, scott, it is right on.
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i mean it is pushing right up against the 52 week highs, all-time highs so it is really impressive what they've been able to do. satya nadella has had a plan, he stuck to the plan and they've been aggressive in what they've been doing it is why i like it so much. i think the leadership says it all and that's why i continue to hold it. i have added in the past but haven't recently. >> alphabet and microsoft get us started today. stephanie link, your only market weight on apple, and it has been the under performer of the mega cap stocks this year does tomorrow get the ball rolling again? >> i don't think so. we're heading into the third quarter which is their seasonally slow quarter. i don't think numbers are going to be higher look, the stock is up 95% in the past year, and it is up 95% in the past year because they were anticipating 5g and the new cycle. almost the work-from-home max
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and ipads. i don't think they're that sustainable at these levels. i think they will continue to be strong but i think they benefited from the stay-at-home situation. that's going to be a big question mark as well. guidance, kind of muted. then the sustainability of mac and ipad and we have to wait for the next iphone, which won't be a big deal it will be fine, but i'm saying there's not a lot of catalyst. i would rather buy an alphabet if it is weak. i might get back into microsoft, we'll have to see. but i think apple being at this point probably like kind of dead money for a couple of months, i think you have time. >> wow i'm kind of surprised, pete, to hear stephanie talk like that about the stock you love so much. >> yeah, that's okay. >> maybe expectations are that low. what do you think, pete? >> yep well, they could be low. you know, let's be honest, and steph pointed this out when you look at what the stock has done in the last year, it is
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pretty impressive. it is over the last couple of months, this year, year-to-date where we're not seeing the impressive move. but we did see the move at the second half of last year where we watched apple continue to move to the upside and now it is in the pause space i continue to like this stock. i continue to think it has great upside the reason i do is, steph was pointed out the phone and other aspects of it, what i am looking at, what i continue to look at which is what katy huberty points out, which is where is their margins. it is from services and from wearables, and those are the areas i am most focused and i think they're continuing to gain ground we will see how it comes out in the report, but i'm very confident. i look at the stock and i see how it has obviously paused so far year-to-date. >> it has done nothing to date. >> but i think there's plenty of upside. >> done nothing. >> but if there's anything in a pos positive way, this is a stock that could take off once again because people could say, you
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know what? it has made the pause, found that consolidation andlet's go to the next level. that's where i'm putting myself now. >> jpmorgan, josh, on apple, expectations of a revenue beat of increase they say in recent weeks. they reiterate overweight. they have 150 as the price target 11% upside from here expectations on iphone on increasing services are likely to be resilient in growth. is there anything not to like in this story i'm wondering why the stock hasn't done anything granted, it has over time, but how do we see this stock it is a stock that's important to a lot of people. >> i just feel like -- and i know i do it a lot, but it is really, really important, especially for the 40 million new investors who have joined this business of investing over the last year. it is so important for me to point this out, judge. not taking anything away from your point, the stock is not up a lot this year and many of the other large tech companies are, but, come on, the stock went up 88% in 2019, another 80% in 2020
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during a recession so this year it is up year-to-date a little bit under 2% but big picture, over the last five years this stock has been compounding at an annualized rate of 40% a year, and it is doing that as the largest market cap in the world this is maybe the greatest business in the history of mankind. so could you have dead money for a couple of quarters yes. are you unable to live with that like, you know, look, if you have to scratch the itch, go buy and sell nfts while you wait because i think apple ultimately rewards long-term investors. it has been doing that since the early 1980s. i stay with my position. if they disappoint, somebody who has a time frame of 90 days, i really don't see that as an issue. i've been rewarded for that attitude for a long time now that's where i am with apple if you are really itching for a reason to sell it, let them
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disappoint, like they really haven't yet. let them make a mistake before you get bearish on it. >> i'm wondering, jason snipe, 125 or 150, what is most likely to be the next stop for apple? >> i mean i agree with josh here i mean, listen, apple is a tremendous company, you know, up 81% last year. yeah, they haven't participated in the rest of the faang names as we've already described in the commentary up until now, but for me i think it can push to 150. i think it might happen later on in the year, as steph mentioned. this is traditionally a soft part, you know, this part of the year, but it is a legacy name for us i think, you know, there will be continued upside going forward. >> you're only market weighted on apple, and facebook for that matter why that view on apple >> you know, for me it has just been portfolio management. the other names, you know, we were market weight there we are overweight, you know, on microsoft. we have been overweight on google obviously those names have run a
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lot, you know, but market weight for me i think with a legacy name like apple i think makes sense. you know, we're not underweight, so i think it still has, you know, opportunity to run and still grow from here for sure. >> not much love on the desk for facebook, pete what's up with that? i mean, you know -- >> i have no idea. >> it is always a controversial name, i haear you on that. reiterated a top pick by deutsche bank today, $385 is the price target, only a 27% upside from here, pete. >> hum i love it. i love this name it is okay not everybody loves the name but all you have to do is look at the performance they've put out there, scott shall and they continue to engage the interesting part is mark zucker probably as much as in, if not more than any ceo, has been up in front of somebody in washington, d.c. over the last couple of years and all the stock has done is going higher and higher
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they have growth internationally continuing to be there they have a sticky platform that continues to grow and they have all kinds of different verticals. so, you know, when you look at the company fundamentally, scott, when you look where they're trading on a pe level in the mid 20s, that seems reasonable when you look at the cash they're generating each and every quarter, it is absolutely extraordinary. then you look at the actual fundamentals of what is their debt versus cash position, and it checks every single box i think there continues to be areas of growth that will be very, very impressive, but i understand why a lot of people have stayed away, because it has been part of what has been a political concept at times. >> it has a lot of baggage, pete. >> it does, but just take a look at that stock, scott, and tell me this. it has got the baggage that it has got, and yet here we are about 10 bucks away from the all-time high of $315. here it is trading a little above $3 p00 or whatever it is this moment, but it is a stock
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that's basically gone past all of the hate, all of the whatever, and continued to the upside virtual reality will be somewhere in the future. if you are looking years out, i think it will be a big part of what happens there when you look at the international growth as well, when you look at india and see how many folks are a part of facebook there, you know, there are just so many different parts of the story that i think are not told well enough but that's okay all the stock does is continue to perform, and it has performed very well. >> all you have to say, josh, is advertising duopoly, right, between facebook and alphabet. it is just that you choose to own alphabet over facebook, why? >> it is not about politics. i think some of the stuff google is working on goes far beyond online advertising and i don't think that stuff is in the stock price. i don't think quantum computing is in the stock price, i don't think waymo and the self-driving car are not in there, at least not to the extent they should be if any of the other units within
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facebook were stand-alone companies, i believe the value would be significantly higher. when you look at facebook, i really think the whole thing is instagram, and that's where almost all of the growth, everything good that's happening for facebook is directly related to instagram, and zuckerberg knows it, which is why instagram stuff is not being broken out or separately reported to the extent it otherwise would be they're trying to ram all of this facebook stuff down into the users' throats to try to make the old platform as cool as the newer platform that's what is going on there and it is the opposite from my perspective. i do think facebook has more political risk than google, but google has plenty. for me it is not a reason for facebook to be lower, and i think facebook and google could work their way higher. what they have in common, and i think pete would agree with this, is that they're feasting on the carcass of legacy video
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and legacy advertising platforms. that will not change, it will not stop so as you continue to see traditional advertising revenue migrate from broadcast, over to the web and mobile and you see netflix and the top streaming service eat the rest of users' attention, these businesses will continue to be good businesses i think they will have that going for them for at least a decade. >> okay. >> i think you could be in either one. >> all right the goauntlet, thursday, amazon. it is another big report considering the stock is only up 5% year-to-date, up 5.5% over the past few months. one month it had a nice run of 12%, but it almost becomes a battle of like bank of america is talking about, you know, the reopening versus the stimulus checks people are getting money they are going to spend it they may spend it on places like amazon, but we have a reopening
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to think about they say that adds some uncertainty. then there's the stock split that gets whispered around over the last few days which we talked about like six months ago, wondering whether they were going to do that or not. what do you think about all of this >> i think a stock split would be very positive, that's not one. number two, you are spot on in terms of a muted stock option year-to-date, only up 5% i like that from a risk/reward basis. expectations seem to be really low. retailing commerce, whether we reopen or go into reclosure, it is not going away. these guys are keeping their market share at about 20%. so i really feel like the retail ecommerce part of the story is just fine. the aws part of it, 20% of workloads are in the cloud, right. so we still have such a tail wind and i don't think they will grow as fast as alphabet in terms of cloud or maybe even,, but 25%, 30% growth is really
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respectable. i like this name and i think jazzy is going to do a good job. at tableau he increased it and he knows this company very well, so i think it will be a smooth transition if this stock is weak, it is one i might take a look at add to. >> okay. pete, by thursday night, friday morning, are we going to know whether this market is ready to take its next leg higher or if we're going to have that correction people keep talking about is likely in the cards because of these reports and the gauntlet jim cramer has said are the 72 hours and the most important of the year? >> it is definitely 72 hours in the most important point of the quarter, because every quarter we look at this and say the same thing, right it is something that will be unbelievable and it will be a very active, obviously, week as people reposition and we have
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watched volatility come back in, scott, so we're in a different spot right now than we were a few months ago, a half year ago and all of the rest of it. i think everybody is trying to find themselves exactly how strong things are and the stay-at-home and the opening and reopening and all of the rest of it there's a lot of components going into this thing in terms of how you are breaking it down, and now we're looking at -- >> and it matters more than for any other stocks. >> i don't think it matters. >> why not >> am i the only one on the show that remembers the fact these stocks did nothing from essentially july/august into the end of last year and we had one of the greatest fourth quarters of all time for stock price? am i the only one away >> we're in a different place now though. >> the premise is -- >> everybody is talking about a correction, right? you are either going to get it or you are not, and maybe it is started by these. >> well, that will never change. everybody will be talking about a correction any time stocks go up and they
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don't feel like they own enough of them, they root for the punishment of other people who are long we will put that aside we have just been through a length ooh market period during which faang stocks were not even in the conversation, and the overall market did just fine so do i think these reports are important? yes. do i think they're make-or-break for the market we just learned that they aren't could they lead a correction yes, but do we really think that investors, for example, in the homebuilders -- homebuilder index year-to-date is up 38% this year. do we think that the investors who are in those stocks, heavily in those stocks and crushing it are waiting with bated breath to hear what alphabet has to say. >> i would object to the premise. >> i forgot. so the homebuilders are going to take the market on its next leg higher >> they just did. >> that's where it is going to come from now. >> they just did. >> i don't care what just happened. >> they just did. >> i don't care what just happened i am talking about what is going
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to happen from here forward. it is not about the homebuilders. >> why isn't it? >> it is really about what you think is going to happen with growth it is really going to be about what you think happens to inflation, and does that start to keep higher, and if interest rates continue to go higher. i think that they will because of all of the stimulus we've talked about endlessly for the last several quarters. >> forgive me for interrupting hold your thought. >> cyclicals actually outperformed. >> hold your thought i need to go to meg tirrell with news from the cdc. meg. >> scott, some news from the cdc on guidance for wearing masks out side they now say fully vaccinated people can unmask for certain activities including walking, running or hiking or biking outdoors alone or with members of your household, a tending a small outdoor gathering with fully vaccinated family and friends or outdoor gathering with a mixture of vaccinated and
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non-vaccinated family and friends. they're still saying for people fully vaccinated, you should wear a mask particularly in public places that could be crowded, like if you are attending an outdoor event like a live performance, parade or sporting event if you are going to a hair salon or movie theater, so they're not lifting mask mandates for fully vaccinated people, but what they're saying, scott, which a lot of us have already been doing, if you are fully vaccinated in some of the low-risk outdoor conditions you doubt need to wear a mask. but reminding folks conditions are different around the country so judgment should be used, of course this coming from the cdc scott, back over to you. >> meg, we appreciate that thank you. meg tirrell. stephanie link, forgive me for having to interrupt you but it was important news we wanted to get to if you could finish your thought, please. >> no, thank you that's terrific news i'm excited to hear it i think the reason why the faangs lagged the market is because you had a rotation in the market we have talked about this, like
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i said, for the last couple of quarters i was buying cyclicals last summer if you look at energy up 27% year-to-date and materials up 25% year-to-date and industrials up 15%, so on and so forth, even financials joined the party, they've absolutely crushed it relative to many parts of faang, many parts of technology the parts in technology that have worked and they continue to work, i believe, are really more of the cyclically sensitive names, semis, and semi cap equipment. that's my thinking on why faang lagged versus other parts of the market and those other pieces can be the leaders. >> let me get quickly to a couple of things you sold. unrelated to tech but more related to cyclical stock, some industrials. raytheon he sold next era energy, nee can you tell me why you sold these in about a minute. >> yes next is trading on 30 times.
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it is more of a green company. raytheon i made 15%. i prefer boeing here, i prefer emerson, so i nibbled a bit on those names. but i felt like i wanted to take my gains in raytheon and put it elsewhere, where some of the stocks i mentioned, boeing and emerson, they've actually lagged. >> i think jim lebenthal is still in raytheon. you have a big new bias uy as wl we are going to hold out on that one. jason snipe, give me your new buy, united health it is a stephanie link name and now yours too. >> absolutely. health care has not participated like the rest of the sector, up 9% year-to-date. but, you know, united for me as i look at preventive care, elected surgeries, trading at 22 times earnings unh has benefited from the upward trends. it depends on how you feel about where we are in the recovery, you know, and looking at health care as defensive structure. but i think unh is an opportunity here and that's why
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we hopped. >> we will take a quick break. check out this mystery chart. a stock up 35% in one month. it is rallying again today and it is josh brown's latest buy. the reveal is coming up next and a reminder, you can always watch or listen to us live on the go on the bccn app we're back in just two minutes instead of burning our past for power, we can harness the energy of the tiny electron. we can create new ways to connect. rethinking how we communicate to be more inclusive than ever. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change. faster. vmware. welcome change.
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welcome back i'm rahel solomon. here is your cnbc update at this hour attorneys for andrew brown jr. say a new autopsy shows that brown was shot five times including once in the back of the head. family members are questioning why so many shots were fired body cam footage of the killing has not been made public president biden is set to sign an executive order to increase the minimum wage to $15 an hour for federal contractors. the move will raise pay for hundreds of thousands of workers. jpmorgan chase says it will have all u.s. employees back in the office by early july workers will rotate between in and out of offices offices will stick to current occupancy caps of 50%. the deadline to get a real id has been pushed back again. the department of homeland security is expected to delay the requirement by another 19 months to may 3 of 2023.
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they cite difficulty in renewing driver's licenses during the pandemic under the requirement real ids will be needed for domestic air travel you are up to date back to you. >> thank you, rahel solomon. before the break we teased josh brown has a new buy tell us what it is, josh >> so i made an initial purchase in leslie's, which is a 57-year-old chain, and i guess huge service offering for the swimming pool industry, pools and spas so it is a housing play, sort of, but i think it is even better leslie's thinks that the amount of people putting in new pools between 2020 and 2021 could be 200,000 new swimming pools demand is just absolutely off the charts 32% year over year growth in permits for pools, and we're talking about a massive tam, and
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leslie's is a dominant player in that business. so it is a recently public tom it is only a $5 billion market cap. i would caution people, do not just pile into it and then send me an e-mail in two weeks and ask me why it is down two points like be patient with the name and accumulate it slowly, which is the way i do at it. i'm looking atal a competitor, pool court, p-o-o-l. it reported a monster earnings beat, going up 100 a share there's only wone other in the space, hayward every time somebody puts in a new pool, forget about the money they spend initially it is a guaranteed almost annuity-like stream of revenue for service providers. you can't install one and get bored of it in two years and let it go. you are constantly buying chemicals, cleaning products, toys, et cetera, et cetera it is a very, very reliable, almost recession-proof business.
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leslie's says they've never had a year of down revenue in 60-something years so i really like the name. i will be in it for years. i don't know if it trades to 22 before it gets to 32 i don't really care about that, but i will add to it on weakness. >> i was going to ask you, you know, okay, this is maybe one of those stories where you figure, well, you know, a lot is known, right? a lot of people are putting in pools and they have to service them but then you said, which really caught my ear, is that pool corp. move after earnings suggesting stock like this even with the story i just said could have a sizable gain going forward. >> it can. goldman sachs brought this thing public like in november and nobody paid attention to it. so this was not an ipo that, like, tripled. you know, it went up from its offering price and people understand that swimming pools are on fire. everyone conceptually understands that, but i think what i don't understand, it is not just about building more pools forever. i understand that 2020 is a very
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unique situation, but i do think there is a secular deurbanization trend that will be a tail wind for these companies because people are increasingly going to have the ability to live further away from major cities and they'll choose to, and when they do that, if they're working in industries where they're highly paid, they will have pools or spas so we are talking about 14 million bodies of water existing either at hotel properties, condo properties or people's individual homes, whether it is a hot tub or a giant swimming pool. >> yeah, i mean i -- >> and they're servicing the professional market. >> i hear you. i hear you. >> so i just feel like the story is unknown because it has been public less than a year. >> i'm just thinking about -- >> and for me that's where potential upside could come from. >> i'm thinking about what rahel was telling us about in the news report, about all of mojpmorgans employees returning to the
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office and is it going to last >> rotating. did you hear that part >> i hear you on your story. i appreciate that. >> i'm thinking i'm going to be appearing on this show from my pool like a month from now, so. >> yeah, hopefully not, for a variety of reasons. >> no, definitely i will. >> for a variety of reasons. >> oh. >> we're going to take a quick break. i mentioned that stephanie link has that new buy, a stock up 10% in the past two months plus, this is financial literacy month, april is, and cnbc is committed to sharing messages from business leaders about the importance of presidential financial education. here is president and ceo of the national urban league, marx morial take to your children and grandchildren about money, about the financial system, about the difference between purchasing niceties and necessities, about the difference between an appreciating asset and a
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all right. it is time for our call of the day, and it is verizon the stock is down about 1.25%. why? because of a brewing price war between verizon and at&t that is why it has been downgraded today by moffett nation josh, you own it and it is all about at&t they say the call comes on the heels of last week's better-than-expected earnings report from at&t that promotion should allow at&t to continue with the pricing stance, dinging competeitors. you own verizon. what do you do >> i would argue this idea that all of a sudden it is more competitive. it is one of the most competitive businesses since day one. wireless, the amount of money they spent on advertising, the price cuts, the promotions it is always going to be that way.
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it is not a great reason to get out of people complain there's no cheap stocks, i missed it, the fed is taking away all of the earnings here you go. 11 times earnings, more than double what you are getting in a ten-year treasury. i would not be a seller of verizon if you own it for the right reason. >> i have to own it for ten years to make money? because this thing has been a dud by ever metric three months, down 2 1/2%. year to day down 4%. six months, down 1.5%. 9% below its 52-week high. we have to wait ten years! >> judge, it is a utility. it is not a growth stock you own it for total return, which is the dividend plus any capital appreciation you get on the stock. it is one of the cheapest stocks in the s&p 500, and i would not be selling it because all of a
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sudden there will be promotional activity there will always be, there has always been. grow up, moffett nathanson. >> just saying, love you guys. >> stephanie link says talk to the hand on that because she just bought at&t stephanie. >> yeah. well, yeah, and back to selling xterra at ten times, but to josh's point these are cheap stocks this yield 6.8%, which is what caught my eye. i thought the ceo did an amazing job on cnbc last week talking about the strategy it was a clean beat, first time they had one in forever. they beat on subscribers hbo max, worth two times the amount of expectations in terms of growth. so that's a good thing they've got a ways to go in that part of the business month services margins were up 100 basis points and ad revenue
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growth, they're starting to see that in warner media i think it is more diversified than verizon, it is cheaper, has a better yield and, yeah, it is a utility. are we going to make a ton on this thing no, but i don't have a lot of these kinds of names in my portfolio and i like to be diversified but the yield is what attracted me. >> let me ask you about one more because it is one maybe you don't mind waiting ten years for because you might have to. you know where i'm going with this one what am i talking about? you know i know you know. >> i know. >> ge maybe? >> ge, yeah. look, the stock is up 20% year-to-date it was a monster last year the ceo is doing a great job turning the story around and, yeah, turnarounds take a long time this quarter today wasn't the reason you own ge. you own it because aviation is troughing and they did a very good job on margins in aviation. i think that's the highlight so when you do get top line to actually improve as we see the cycle, long cycle stories and
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industrials do better, you will see a lot of operating leverage. health care was a gem, it remains a gem. it was really power -- the power business in renewables that were really disappointing i think, again, that too is on the trough side of things but we're structuring to take a long time you know that. >> i know. >> i have a few in my portfolio. i remain committed. >> i know i joke around with you, but if i was to say is it a three-year story, a five-year story, a ten-year story, what is it >> it is not a ten-year story. i think the stock will be higher in a year from now i think you are going to make money. i made a lot of money last year because i was buying at $6, $7, $8 a year. >> i know. >> so i think it is a slow recovery story. >> a lot has happened in the last year, steph. >> i know. i believe aviation is bottoming, so that's a good thing i think i think aviation as we reopen, you will see an improvement in these kinds of company. >> all right. >> again, operating leverage is
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underappreciated and i think something people will get excited about once they start to deliver on the top line. >> good stuff. glad we hit that. >> it is not going to be ten years though, judge. i promise you that. >> all right, all right. hopefully we will be back in another ten and check it out pete, unusual activity get ready and get your pens and papers ready we're back on "the half" after this need a financial plan that fits the way you want to live in retirement. a plan that can help grow and protect your money. now or in the future. with an annuity in your plan to help cover essential expenses, you can live the retirement you want. the right financial professional can show you how. this is what an annuity can do. ♪ ♪ ♪ ♪ this is what an annuity can do. i had the nightmare again maxine. the world was out of wonka bars... relax. you just need digital workflows. they help keep everyone
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all right, pete. what have you got for us >> yeah, i'm going to start with agriculture. so mosaic, that's the first one, scott. we have a huge buyer out in june and september, but the june is the really monster 32,000 of the june 40 calls in mosaic were being bought 27,000 in a single print for $1.20. pretty aggressive. i like what we're seeing there somebody expecting to see that stock move to the upside next i have blackberry we don't talk about this one very often last week they were buying the 8 1/2 calls, this week they're buying the 9 1/2 calls that expire on friday so pretty aggressive buying there as well. they were paying 10 to 25 cents for those calls. i'm expecting to see something very soon in blackberry, needs to happen fast, but i have mosaic going in time out to june. >> i hear you bought amd calls as well ahead of that print.
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look -- >> yeah. >> -- that stock has been fabulous over a longer period of time, more recently though it hasn't done push. >> you're right. it has pulled back significantly from where it was. it was on this big run to the upside and then it suddenly hit the pause button but it is interesting, scott over the last three trading sessions we've seen buyers of upside stock started at 82, now has moved up a bit we've seen buyers, buyers, buyers, large buyers, clearly short term so expecting something good out of it. >> lea su, first on cnbc, don't miss that. kramer and the game looking forward to that interview as we are. "ask halftime" is next e-mail us, we are back after this
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[triumphantly yells] [ding] don't get mad. get e*trade and take charge of your finances today. she wants to sdmoe know, sales force or microsoft >> it's a good one, scott. i would say i like microsoft better here. i do like the acquisition. that will con sue mate this year i think microsoft is the better bet here >> jason in phoenix.
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wells fargo has approved 600 plus million share of buybacks >> it's up 48% year to date. it's a little crowded. that's very attractive one of the cheapest banks in the names that i own but they did have a really solid quarter. this is a restructuring. it's a turn around again i do like the ceo and the initiatives they are putting in place, so i like it. >> josh brown. store capital, buy, sell, hold basic it a few months ago at $33. a lot of people follow you guys into the trades. what do you tell william right now? >> hi, william this is not really a trade for me it's an investment i've been in this stock for more
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than four years. i'm reinvesting dividends. they did a secondary to raise capital and berkshire upped their stake proportion to stay a 9%, which i think is a good sign people are screaming that inflation these days if that's what you're worried about, this is the answer for that i like store i'm in it for the long term. >> thanks for the questions. we got to bounce and we'll do final trades
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it is time for final trades. jason will start us off. >> i like sky rworks here i really like the acquisition silicone labs. that will be a major catalyst going forward. >> okay. the linkster >> nxpi. it was a really great quarter. places you want to be within semiconductors >> all right pete >> i'm beginning to give you virgin galactic. it was well over 50 and now in the low 20s. i think it's ready to start moving to the upside >> okay. josh brown >> hold onto your lattes because
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starbucks reports tonight. i'll be watching for their loyalty rewards program. >> you've been a big fan of this one for quite some time and now reopening play very much so. >> thanks for watching the exchange is now. thank you, scott here is what's ahead at this hour the cdc just making huge changes to indoor and outdoor mask wearing recommendations. we expect to hear from president biden on covid-19 any moment and we'll bring it to you when it happens. inflation or reflation as prices continue to rise one strategist says yes. consumers will happily pay up. he joins us to explain the investment implications of that. half million new business sz american ingenuity took over and entrepreneurship has


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