tv Fast Money Halftime Report CNBC July 29, 2021 12:00pm-1:00pm EDT
>> thanks so much for having me. >> keep our eye on the indications out of robinhood by the way, it's sort of got lost today but the market has been remarkably resilient backup dow around a 200 point gain. s&p 24 be 44 and vix at 15.5 tmo, skyworks. gilead let's get to the judge >> thanks so much. welcome to the "halftime report." i'm scott wapner front and center robinhood ipo frve blowout earnings and the count down to amazon numbers after the bell. our investment committee breaking down it all, debating all of it as well. with me for the hour today josh brown, steve weiss carrie firestone, jon najarian and good to see everybody. new records for the dow, s&p today. investors dieting those earnings reports as i said. we're getting to those in a moment but first the big ipo robinhood going to public. let's bring in leslie with the
latest as we wait for the first trade. we've seen a lot of activity where you are leslie are you getting close >> i don't think we're getting close per se, scott. i think it's going to take a bit more time for them to really match the trades to open the stock. as you can see behind me there are a lunch of robinhood employees learning about the process right now of matching the orders of buys and sells, trying to hone in on that price by which to open shares. now it's indicated at this point in time at $38 which was the offering price so right now looking at pretty much no pop on its debut it's been trending downward, the indications, started around 42, had been trending toward the $38 number ever since about 10:10 this morning so it will be interesting to see. we're expecting to see some activity within the next hour, maybe hour and a half or so with regard to an opening here. >> leslie, you stay with me. let's bring in the committee
i'm curious to figure how they are seeing it today. you know, josh brown, if we're spoeg speaking to a professional audience mixed with a heavy retail viewer, what do you they will them about the ipo >> i'm personally not interested in owning it but i'm fast nature by the story and everything that they've built. i think a lot of this really started out as regulatory arbitrage. the neat trick was getting big enough fast enough before anybody knew what was happening. and they just paid a big fine related to some of that regulatory arbitrage maybe they'll clean up their act. but in the end this is not an investing business this is online gambling. if i wanted to invest in that i'd be more interested in draft kings. i don't really see this as being vastly superior in any way to any of the other publicly traded broke ramblings. in fact, it's inferior in many ways, the median robinhood skper
has a $240 balance in the account. the average is $5,000 the you compare that with charles schwab and say i want to own schwab this is having an outrageous valuation because how fast gross. that's undeniable. you can't take that away but what are they really growing? if you take out payment for order flow, you say 75% of the company revenue is payment for order flow, which is basically allowing one group of investors to take advantage of another group of investors, if that's the whole business, i'm not sure that that's the kind of thing that i want to personally invest in i also would note that the they require a lot of people trading -- i can't say the word, alt coins but a lot of growth in revenue from the last year has come from dogecoin can you make the case that there is more of that in the future and that the margins for crypto trading stay high. i doubt it the investors in coinbase doubt it too is to i think probably coming off of the best year robinhood
will ever have, 2020, and early 2021 it's hard to imagine that that environment will ever be replicated >> why do you say it's online gambling that's your words isn't that a slight to the 22.5 million accounts and the users robinhood has? and why do you characterize it as online gambling >> the average user is 31 years old. which means a lot of their users are in their early and mid-20s when you're in the early and mid-20s it's okay to gamble. that's what my generation did. i was 22 years old during the.com bubble we weren't sowers investors. we were gambling too there is nothing inherently wrong with that. you can't tell me though this platform is built for investing. there is not one aspect of the user interface that encourages long-term investing. will they change that? maybe. but that's not great for revenue if they do because all of the money this company makes is based on
encouraging people to do frequent aggressive trading so that they can sell the orders to sit a dell and the other payment forms have and i i don't have a problem if it subsidizes commission-free trading but let's not pretend it's a investing platform. it's for frequent trading. if you want to engage in that, the robinhood app is amazing it's a lot of fun >> let's hear from our frequent traders. dr. j. looking at you, feel like you have something to say >> yeah, i completely disagree with almost everything josh just said i disagree because, number one, virtually every broker on the street takes payment for order flow if it hurts robinhood >> i just said that what else do you disagree >> i just said that >> yup -- can i speak, please. i also said that i don't like
the way you're categoryizing them as gamblers i think perhaps you were a gambler, josh in your 20s. but i don't think these folks are gambling i think they are getting used to investing in stocks, options, futures, cryptocurrencies. i think that's a good thing. i don't want to demean those people and say you're just like a gambler who goes to a horse track >> it's not demeaning >> yes it is demeaning becauses in real money -- >> look there is nothing wrong it >> we can go point counterpoint i'm fine with that that's what the back bone of this program but we can't go talk over talk other because nebraska gets anything out of anything jon finish your thought, please, then josh you can rebut whatever you want to >> all right right. i think that robinhood -- the reason i'm not as anxious to be on this one, scott, is i disagree with josh that this has become a great place for people
to trade actively. it is not. i mean, there are far many other platforms out there, including interactive brokers, platforms i have no involvement in whatsoever but those platforms that are much better for a frequent trade are than robinhood robinhood shut these people down and didn't let them trade only let them buy in february and march. does that sound like a place trying to attract really active traders. no >> it does sound like a place that has some growing pains. and that's been one of the issues >> yes. >> their investors have to deal with steve weiss you want no >> they had no choice. they had no choice but to shut trading down >> no, we know that. we know that >> i do want in >> that speaks in and of itself to some of the growing pains the company had to go through over the last many months we may not -- we wouldn't be talking about this ipo today had they not done that more than
likely they would have gone out of business i think we know that steve weiss. >> yeah, look, whether or not the people on it or gamblers or formal investors doesn't matter. you check any online brokerage or any, you know, they're all online, you have your share of gamblers, so-called gamblers investors. put that aside the critical issue here in my view is that you could wake up one day and gensler decides that payment for order flow is is against the interest of investors. he has as much said so if that happens this company is out of business. >> let's be honest -- i know -- i note that's a good talking point, okay. i get it what is the likelihood, though of that happening? robinhood is not the only company doing payment for order flow so you'd be disrupting a large swath of the way that the buying and selling of stocks has been -- is being done now, the
way some broke ramblings operate. do you really think that's a possibility? i mean, really what is the likelihood >> without a doubt -- without a doubt it's a possibility just because everyone is doing it doesn't mean it won't be stopped. we used to -- reg fd came out because every company favored particular analysts with inside information. they went to material disclosure in reg fd. absolutely it's a real risk, as it should be and a in fact gensler singled out robinhood for poor execution at the expense of their investors in terms of rewarding that order flow to citadel and others yes i think it's a real possibility. but the point is you're not getting paid for it. you want to buy a brokerage -- this is not amazon in infancy or uber or any of that. this is an online brokerage company not making money, that as a matter of fact the more clients it they bring, more
accounts they bring on, the more money they lose. and yes, this is the peak for them maybe the peak goes another year but this is as good as it gets why would you buy a company -- why would you trade offer this platform i've traded on it. it took a week for my wire to clear. that shouldn't happen. it clears the same day or the next day it took a week to execute bitcoin trade. so go elsewhere >> wall street is weighing in today too by the way you don't get coverage publicly by a lot of people at this point. but atlantic equities initiated overweight $65 is the price target on robinhood. leslie picker you're still with me, i believe >> still here >> i'm assuming you heard the comments and how is the company dealing with some of the issues that steve weiss and josh brown have raised >> i think they are very common issues that they have been speaking with investors about on the road show, as one source put it to me, investors see this one as having some worth whether you can kind of overlook
the warts in order to invest in a company that has strong brand recognition and historical growth, the question is whether that continues that is what we will see today i think part of that calculus is why you saw pricing at the bottom of the range and why you see indications it will open where it priced at $38 a share now, this is a difficult deal. it's a difficult sell for all of those reasons that they outlined but stranger things have happened so we shall be hearing potentially in about a half hour or so -- that is we the shares -- at least we hear from folks at the nasdaq -- could begin trading. right here during "halftime report" >> you stay with me. because i may need to come back momentarily too. you know, carrie, i thought one of the best points i heard today on the network came from jason calacanus on "techcheck" a short time ago, suggesting the best thing that could happen for retail is the stock stays around
$38 for a long time, for many months to prove exactly the opposite of what josh brown's issues are, that investing is a long game, that it's not a casino, and that should be taken as such. if the stock sticks around $38 and the retail has to get arms around the fact that it isn't a pop and drop kind of environment. >> well, that's an interesting thought. i would say that investing relates a lot to the value inherent in the stocks that are publicly traded. and investors have to decide what it's worth. it's 14 or 15 times sale, they're not earning earning money for quite a while. it's a tough environment they're in when you have no commissions and you have to get your revenue from placing trades and trade flow, you know, i -- i think it makes that value proposition
more difficult if the stock trades at 38 and grows into some level of earnings over time, i think that's great i don't have a sort of black and white view of the stock. we don't own it. we own schwab, sells for 19 times next year's earnings, 16 times the following year earnings its average. as josh pointed out the average robinhood account is $4500 versus 25,000 on schwab. but there are some aspects to robinhood i think are attractive it has, you know, millions of participants and they're growing older and will earn more money i wouldn't consider it so much gambling as gaming and the gaming industry is enormous and there are elements to robinhood that platform that remind me of video games, not that -- i'm such a huge user but i played some and used robinhood. i think they're similar. i can imagine this company growing its earnings over time it's not ready for us at this
point to make an investment. and, you know, as for where the stock is going to trade and how long, i think investors will make that decision based on what they see as its future >> let's be clear too. and josh i'll come back to you anastasia coming to new a s.e.c. this company needs to grow up in a hurry. the gamification of some of the activities around what robinhood has been accused of in the past, not all of that's going to fly in the future a a publicly traded company the way that robinhood and its ceo vlad tenev communicate with investors changes overnight. i mean, it's a publicly traded company. the scrutiny is going to be on this company unlike anything that existed to this point in time that will cause them, josh, to perhaps grow up a little bit as well it may cause some of the investors that you think are gambling too much and not looking at investing as a long -- long game to do the
same >> you can only misunderstand this if you are deliberately trying to misunderstand this listen to me very carefully. there is no possible way you can make the case that robinhood is not trying to get as many people to place as many trades as frequently as possible that is how robinhood wins again, people free will, don't have to go along with the gamification not everybody has to do that but that is what they want to happen that is fundamentally at odds with what's in the best interests of most investors. the majority of investors are not going to be jon najarian and consistently profitably trade on a daily basis. it's just never going to happen. for people who have full-time jobs and flip open the phone on the lunch hour, they're not able to do it now if you tell me, so what, this is recreation, well i
agree. and i don't have a problem with it people can spend their time and money however they want. but, please, please, let's not call this an investing app and back to what carrie said about schwab, if you really want to invest in a brokerage company, robinhood has 60% as many customers as schwab, right they might even catch them in terms of the number of customers. but they're only bringing in 11% of schwab's revenue. why? schwab has a huge asset management business. schwab has 401(k). schwab is doing all the things robinhood is doing payment for order flow, stock loan for short sellers they have all those businesses but then businesses that are actually profitable and robinhood could get there. it's not that they can't get better or bring on more services it's just that you are paying a full valuation as though they've already done it. and we have no proof that doek it so from an investment standpoint forget about how i feel from an investing standpoint, it's a
huge bet at this valuation it could work. but it's not a great bet when there are other alternatives you can invest in in the markets already >> look, as often happens on this program, thankfully, jim cramer hears certain things and decides he needs to join the conversation which we're grateful for he literally wrote the book on making money carefully, right, jim >> yes >> why did you come out >> i think this is a big day and one of those seminole days where you have 22 million people paying attention that wouldn't otherwise. and you've got a company that did revolutionize and i believe democratize at the same time josh is right. i mean my morgan stanley morgan stepanly bought e-trade it's not expensive stock at all. if you are good at e-trade want to go up the food train chain more and more good dwiz. they have a good 401(k) business it doesn't make sense robinhood is valued at this price unless you believe they're going to
continue to add people the only reason i -- only reason i disagree with josh is that in the last two months they have been working furzly to do a lot more than just be an app and you know, josh, i got to tell you you have to agree with me that if they pull it off if they could be much more than an app, then they may just love this stock and take it places you and i think it doesn't belong >> it's totally possible and it's ---en a i would point out it's happened before where single-use apps especially in finance have moved up the ladder, added new services and they're users embraced them and a great example is square. it's not out of the realm of possibility. i'm not saying they won't do it. they can't do it shouldn't do it what i'm saying is the valgts that you're paying today is as though they have already done it >> you're right. i remember square was a at $12 >> they can accomplish niece >> sarah fire and said do you know what's in opera >> i know they had a bad
quarter. as far as i'm concerned mastercard and visa can squash you at any given time. and i listened to what she had to say, josh i said well look if you execute you could pull it off. but they executed next q next kwu and that's what we have. judge i have to tell you do i think vlad can do that he has to surround himself with more people. but i liked what he said that they are more about safety i don't think that's the case eight, nine months ago if you listen to josh, i think that you're going to make a considered investment. but if you listen to that narrative that we saw at square and you think about sarah fryer. it's entirely possible they pull it off i'm a believer in vlad tenev, in the 22 million strong. but i think that they need to see this stock go up or they're -- there may be people saying you know, maybe some of this is little bit too much like 2000 i'm worried about florida >> vlad is talking a good game
he has to do that this day he does it tonight when you press him on the day's events tonight on "mad money. but what about the idea of what jason calacanus put forward earlier, which i thought as good point. that the best thing is if the stock stays around 38, 39 for months because it will prove the point that this is not just something to play like a casino. investing is a long game and it's done best when played that way, for most people. and it will teach a lesson to more than novice investors who may have cut their teeth or just, you know, just getting into the game because of robinhood >> well, look, i think there is something i love jason, known him for 20 years i think there is something between that and let's say gamestop i think that if vlad goes from 22 million to say 25 million in the next two quarters we have to respect that and put a higher multiple to sales. when i looked at the actual
sales, and the -- you know the prospectus i said, well, this is only so good but there are a lot of people who were going to get into this business because of robinhood. when i meet younger people, they talk about robinhood with great referens they say check the app, check the app store. therm number one for weeks after gamestop they do have -- there is a love here but i really respect what josh said what happens when people the unemployed go back to work and they don't have the benefits will they be trading i don't think they're g going to be trade sneakers >> jim >> hold on, josh because we are getting closer we understand very close leslie picker, you tweeted about four minutes ago that we're ten minutes or so away >> that's what i'm hearing >> where are we now >> to do the math about six minutes. not hard and fast deadline
but i would say five more minutes until we see the stock open still indicated at about $38 a share. they have 11 million shares paired at this point in time we were told about five minutes ago that jp morgan, the disablization agent was giving a 10-minute warning where we got the figure so we will be watching to see what happens here. but so far this morning we've seen the indicative price tick down started at 42 down to 38 in the last two and a half hours or so. oh and we just heard there is a 2 minute warning now so like i said, the ten minutes a little squishy but 2-minute warning at this point in time >> let's do this if we could, lesp stand by. if we can take a split shot with, see the floor of the nasdaq so we get a real indication of when things open in realtime. thank you for that josh, as we look at that picture, you wanted to say before i had to cut you off.
i may have to do it again because the minute it opens we go back to leslie >> a question for jim, from march 30th last year to march 30th this year, 96% of all stocks in the market went up and the s&p 500 had a 75% return which is the best 12 months for the overall market going back to 1950 that is a once in a lifetime environment. do you honestly think that robinhood will ever have a better year than the year that we have just finished? aren't they coming public at the perfect time for them but maybe not the perfect time for somebody buying it today >> i looked at the pastiche of buyer and i saw how many option traders there are. i was thinking if you wanted to be a call buy are the last year you made a lot of money. but you know, what, josh you're right. >> easy. >> if they were buy and hold which is what i asked vlad
morning how many buy and hold i tried to get the point across. but if you bought calls you think, josh wsh you think there is a money tree. and you and i have been around did you ever see that money tree like johnny apple saeed for the money zblee still looking >> i think a lot of people >> jim >> weiss, let me also know note i may have to interrupt you keep any question you have brief if you could. we are really approaching game time here. you can see vlad tenev clapping his hands in the front >> here we go they're getting the first trade here indicated here still at the offer price of $38. going to have a valuation of $32 billion. we can talk valuation, comparison to some other companies within that range, whether you think it's justified or not but it's a big day in the history of robinhood, official momentarily we understand it will become a publicly traded company. jim, go ahead. but, again may have to jump in >> well, i'm just looking at the comps here i'm looking at the schwab comp, the morgan stanley comp.
and i'm thinking if you own one of those maybe you're saying are you kidding me i mean, everybody from robinhood has to go and who took that stock has to buy another ten shares they got ten you know, judge, i don't know, i think the people who -- there are a lot of people who got stock expected it to be at us talking about at 41, 43, 48 >> and jim it's official now robinhood is a public i hi traded company stock open for business $38 leslie picker? >> that's right, scott the trading around 37.50 you can see it's moving quite significantly at this point in time that ipo was priced at $38 a share indications before that. it would around $38. now in territory moving quickly here as the stock sets off and begins its trading. now with regard to ipo is about
75% trade higher this one -- at this point in time now closer to the $40 level, indicating some gains for those. say 20 to 25% of the deal was allocated to users of robinhood's platform which is a large amount relative to other deals, especially founder-led, buzzy, those with frenzy surrounding them but this one now trading somewhat above 38 not comfortably above that level as we see this kicked off and underway but certainly the debut -- the pichlt o that has shaken things up in terms of >> yeah, doing the best to deal with the elements of live tvrgs and ipo, the clapping right there. i hope our viewers heard leslie
better than i could. record high for the s&p, record high for the dow today steve weiss i apologized for having to cut you off earlier. what do you have to say? >> so a couple of things number one, they're not disrupters they're going into a business and they're offering prices which are free, which is many, many others are doing. i don't thinks they're a disrupter. number two they haven't democratized investing that's been democratized a long time ago they are talking out of two sides of the mouth they are owning 16% of the company by control 60% of the vote let's go where the intentions are which is not one shareholder one vote that's really poor governance. i don't think vlad -- he has done a great job to this point but thank god for the pandemic for them but us that fueled growth they were bumping along, growing. but you can't value this company as a disrupter when it's not you've got to value it comparing it to the others that offer a
much broader line of services. so, look, they've got a purpose for existing we're seeing what it is. we've got the little -- this may be a meme stock which will drive it but i disagree with jason. the best thing for this stock is not to sit at 38 because in retail investors are very impatient the best thing for this stock is to move high are and high are. thank god for them they've got two great ipo players supporting them which are jp morgan, goldman sachs. we'll see if they hold the syndicate bid or this drops down i've done hundreds of these deals literally. and my bet is this breaks deal price. and that won't be a good result >> let me me anastasia am rosa thank for being as patient as you have been >> of course >> the fact that a lot of big ipos and name brand ones have broken offer price, what does that tell you about the
environment? as this one trades fractionally blee the trade price what does that tell you >> this is a red hot environment for ipos i want to compensate on the stuff about valuations and i'll talk about the broader environment too. the valuations of this particular ipo is not that out of whack with kind of the reality that we see for some of the fintech names. i know they've been compared to schwab and other ones. but the reality is the growth trajectory of a name like this is far far greater than what we see for some of the other names. i'll give you an example the average ipo last year at the time of pricing was 2.5 times the price it had in the last prior round. 2.5 times. and this ipo was priced at 2.7 times, a little bit on the expensive side but not that expensive. and if you look at it in terms of the multiple of revenues on this particular company, it's about 25 times, which is once
again, it's a little bit high. but given how much interest there is in fintech names, it doesn't surprise me. what i'll tell you, scott, is that the market participants right now are paying remarkable multiples and have rk remarkable interest in leading fintech companies and i think this is one of them that coming to the market today so there is a scarcity issue that's at play here. only 3% of the fintech companies are actually publicly traded and the fact that this one is yet another one to join that very small group, i think that's providing some of the investor support. but obviously all the other issues that have been raised with the committee are valid and need to be part of the equation. but the bottom line is i think this -- this ipo strength that we have seen in the market is just going to continue because the markets generally the public markets are rewarding the private companies with rich multiples. >> jim cramer, as we watch the stock trade below 37, you know,
i'm wondering too about the back lash that may exist again against the company as you hear some of the hate vitriol from members. josh brown or steve weiss hating on robinhood on what is a momentous occasion foreign the company >> i'm not hating on it at all >> no, you just dogged the company totally out, steve i want to hear from craniume >> this is factual i'm giving you the facts everything i said was a fact not emotional >> you called -- you said therapy not at disrupter, i mean, come on >> they're not a disrupter what are they disrupting >> i -- >> i met them six years ago, seven years ago when i was out doing tours out west and they had about 500,000 clients. and vlad tenev said i'm on going
to disrupt the industry. people are going to want to get involved one day i might have 12 million people and that's going to up end everything i was like what is he talking. long haired guy stanford this stanford that >> they're not his clients they're not his clients. 22 million -- 22 million use iris are the product not his clients. >> that's fair you're absolutely right. it's the app but i meant that in terms of he had a vision and you got to hand it to him. i thought he was crazy that the app could be that good but it is -- josh it's a sivrp fied app maybe everybody else -- i thought the paypal could kill him >> jim have you traded on the app >> jim have you traded on the app? >> my -- my stepson does i can't see what he does because of my relationship >> i traded on it. jim i traded on the app >> i'm not allowed to trade. it's not like i can trade.
i can't trade. i don't have a broker. >> i'm telling you i'll tell you my experience with it, okay >> yeah >> i went to buy bitcoin on there because no commissions for buying bitcoin paypal like 5% all the others the same i wired money. okay i wired money call it wednesday. morning. the wire didn't get there allegedly until a week later any other constitution you wire to it's either that day if you get the early window or definitely next day. i put an order in for bitcoin. it got executed a week later >> wow >> great that it did bottas i bought a lower price >> terrible >> i don't see anything magical about this it's not a better app than any other financial app out arthro >> there are controls. i think we all know they've had problems they have to grow into that look i'm not going to defend a lot of the things. there is a controversies page in the atlantic equities piece that's just -- it's devastating if you read it you would never own the stock. judge, i guess what i'm saying is that he -- we may not think
the app disrupted things but there are a lot of people in this industry who wish they had the 22 million >> for sure. what about the issue, jim of the payment -- since we're talking about risks, the payment oh for order flow do you think it's a legitimate ily real risk that gary gensler could decide one day that this is not a good practice and he will do his best to curb it? and when you're a company getting 80% of revenues from that payment for order flow then it becomes a real issue >> perhaps you should. perhaps you shouldn't but the s.e.c. mandate is to shine the light. sunlight is the greatest disinfectionant database as long as there is disclosure the s.e.c. is happy with the practices. i think he may demand more disclosure or more thorough disclosure but i don't know -- gary is a really smart guy we all want best price but he says he may or may not have best price not getting the best price if you bought
robinhood at 38. just saying >> i don't think the risk is losing payment for order flow. i think the risk here is that the markets aren't as exciting going forward. and usage drops off. payment for order flow has been around 200 years you called it different names. but there is always an element of market makers but the -- weiss makes the best point. weiss says this is not really a disrupter. and i think that's true because if you think about what were broke wraj commissions two years ago? you could trade on schwab where fidelity, any platform, e-trade for $49.95 the idea that going to zero is some innovative thing, it reminds me of something about mary where the guy said you ever heard of 8-minute abs here is my business idea. 7-minute abs it's an evolution. chuck schwab wrote a book in 1990 predicting $0 commissions
he didn't know it would be subsidized by hedge funds making markets. he can see it copping. i don't sees it a a disrupter >> dr. j. is this as josh suggestion a moment in time stock capitalized on a phenomenon swept the country through a pandemic when sports weren't being played introduce add whole new generation to the stock market is it simply a moment in time and this too shall pass? >> josh is 100% right about that it is the -- that people did gravitate towards this because they had stimulus checks, scott, because they were stuck at home. because the app made it easy to trade on mobiles as well as desk top. all of that's true and the fact that it's free is another big thing. but when you look at someplace like schwab or t.d. ameritrade or interactive brokers they make significant money. forget about payment for order
flow on about a balancing lending, margin money and so forth. robinhood makes the same claim and certainly does that. and the fact that they've grown to 22 million versus schwab at 30 million and have been around for decades and decades, means that you don't want to just dismiss the company. i'm not saying today's valuation was fair, scott. i'm saying that these guys are not just going away. this is going to be a beehemoth in the financial industry. and the speculation is whether gensler does something against them that hurts the others as well or whether he let's status quo continue >> guys. hang on one second just for a second. is leslie still with us can you hear me >> the question is can you hear me, scott >> can you give us some color of what's just taking place after the company went public >> i just wanted to show everybody the chart which you've been showing as you can see the stock declined dramatically since
opening, down about 9% now why is this important? we do tend to see about 25% of deals break the issue price over the last few years but what's notable with this deal in particular as it is the fact that 25 say give or take about a quarter of this deal maybe a little less was allocated to robinhood users so robinhood users who decided to purchase in stock at $38 a share at least currently they're sitting on potentially paper losses maybe some of them sold of about 9% on day one robinhood as part of the policy part of the so-called access platform does require that if users want to participate in future ipos over the next two months that they do hold on to any ipos they buy for at least 30 days. that is all very notable because it has an impact on the happiness and loyalty of the users and the ipo access product
as something they are seeing as a potential growth mechanism for the company. >> good points leslie, thank you. i'm going to say goodbye for now. >> goodbye >> thank you for rolling with it thank you for rolling with us. i know we'll see you soon. leslie picker doing great work covering the ipo of robinhood. jim cramer give me a last word before i said goodbye >> the syndicate should step up say the flippers are gone. leslie has done this amazing reporting when you hear what she said about the stick is versus the carrot i don't think these people care if they don't get more shares. robinhood doesn't get big allocation it's a free for all. got the get the flippers out and the syndicate has to come in and jam it up. but the clock is ticking on the jam up, judge >> we'll watch it >> and the green shoe, jim >> i hope these options people are taking the stuff, jon you do with your brother they need the education or what's going to
happen is what josh said when the market goes down they'll be blown out. we have to root for the people trying to be in our markets >> for sure. can't thank you enough for coming out >> thank you guys. >> adding voice to the conversation today we look forward to the interview with vlad >> thank you >> that's jim cramer guys we'll take a quick break. anastasia, stay with me. i feel you get short changed >> for the remainder of the program get your thoughts on the market, tech, et cetera. 'lbeig bk.t.u can do tha wel rhtac someone once told me, that i should get used to people staring. so i did. it's okay, you can stare. when you're a two-time gold medalist, it comes with the territory. ♪ ♪
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all right we are back. facebook it's down today about 4% offer a blowout quarter i don't know where you can really quibble with the numbers. anastasia, i want a comment from you. if we look at microsoft and apple and alphabet and now facebook and amazon after the bell tonight, where are you on where you think mega cap tech goes from here >> yeah, you know, the question about mega cap tech has been, well has it just been a pandemic trade that's really accelerated all things digital, e-commerce, digital advertising. that's not my take after the blockbuster purngs we have seen. i think what's remarkable about the companies, the growth engines they have, generating 20% plus revenue growth quarter after quarter. i don't think that slows down. if you look at projections for what e-commerce does the next
few years, still accelerating. if you look at the cloud spending this year, it's likelying to up 18% spending on public cloud if you look at digital advertising 20% growth rate this year i think as big as the companies are, the trajectory for their markets for addressable markets is still significant if you look at the valuations, solve some of the companies, they are going to be growing the next two years, the average earnings growth rates of more than 20% and so on a price to earnings to growth ratio some of them are actually trading cheaper than the s&p 500. so i know that the market reaction to big cap tech has been somewhat mixed. but i would look through that, pick a few spots within big tech to buy and what i'll also say that earnings growth rate i talked about, i still think it's being underappreciated because what a lot of the companies have been doing behind the scenes, future proofing themselves, investing in ai, investing in autonomous
mobility, investing in health care they've been making -- actually making investments of the big tech companies are near record highs. they are investing in the future and i think that's what could also surprise to the upside, some of the newer ventures scaling up for the big text. i stick with them, investing and alongside them as well >> carrie, you own facebook. how do you see it from here? stock's declining. is that something you say, absolutely because -- we just showed the revenue growth numbers on the screen for all the companies. i mean, blow you out of the water astounding 56% year over year revenue growth i could go through the other numbers from the other companies. we've done that so many times because it's been so astounding. do you use this dip to buy more stock in you're already in the name >> well, i think that facebook's up 33% this year even with the decline. it's had an outstanding year
up twice the s&p 500 we're owners of it, overweight, i believe no one believes 56% growth is sustainable. they'll be over next quarter 24th the quarter 20% plus next year the stock sells 19 times year out earnings it's a reasonably priced stock and i don't think that this is an opportunity certainly to -- to buy lots of it. but we own a lot of it i mean, i think it's a very attractive stock relative to the market i'd like to, scott, just briefly put up the table that vinnie put together, showing what these companies, these enormous digital players, amazon, apple, google and facebook. you look at their sales. these companies didn't exist, right, 30 plus years ago look at the sales of those companies and look at the sales
of a few industries. restaurants, airlines, what else did i use? trucking and medical devices apple, $347 billion in sales over the last 12 months, more than the entire medical device industry way more than the other three combined and you are talking about big companies in health care like abbott, med tropic, thermo-fisher apple is bigger than all of the industry together they need to have market capitalization that reflect what they are producing on the top line and their net income is enormous yeah, we like facebook, google is the largest position. the market recognized how well it's done this year up 50 plus percent. as anastasia you have to be in the players if you want to be in the market >> it's the numbers like the chart and revenue numbers, why people are looking past or look through the growth numbers out
of maus and daus appear look at the bigger picture weiss, it sounds to me, you seem you're in such a great mood today you are looking to sell facebook positions >> he is always. >> yeah, well not today. look the quarter was phenomenal. there is no other way to categorize it. but their warnings were real this can be has been guiding conservatively since the stock was 35 and continuously met the challenges very well and exceeded them. however, in conversation doing some due diligence and talking with advertising agency people, their clients are looking more towards tiktok in fact facebook is sloughsing share on instagram to tiktok and also to youtube. but, facebook also pointed out that the apple privacy, you know, governors they put on it is huring their ability to put in -- to track users, which is
also hurting their revenues. the big bet is on oculus at this point. i think they will challenge. i've got a large position i put on a while ago waiting for it to break out. i'm not doing anything if anything i'd buy a little here because it recovers. but i'm sitting on my hands. at a certain level i will peel it back. but i don't think i'll exit. it's extraordinarily cheap even if you cut down the growth rate. look at how fast it grows. grows at 20% i'd pay 19 times in a heartbeat >> josh brown, i wanted to get your take looking ahead to amazon but what i want to do first because we are running out of time probably have to make up some commercial breaks too i want to talk quickly about the new buy. m.t.t.r, matter port we never discussed this name on the program. why should we today? >> so i want people to be careful buying this thing. i think there is time.
i don't think it's about to run away it's a long-term investment for me it's not a trade i bought about a third of the position size that i multiply want to end up with. and i'm going to allow this company to report the first quarter as a public company before i add to it again i want to kind of take it slow here but i'm more excited about this company's product service technology than really anything i've been excited about long time. basically what they are doing is creating a digital twin or a dollhouse of every piece of real estate in the world. there are 4 billion buildings on the earth's surface, and 20 billion spaces what they are doing is creating a digital version using cameras of these places and then turning that unstructured data into structured data for use by companies. they've got 300,000 subscribers. everything from insurance companies to real estate to industrial companies, but they are mapping out people's
physical space, converting it to digital data and license software as a service to those subscribers. it's a great arr business. we love those. growth was explosive last year the breakthrough innovation here, scott, in order to do this up until recently, you needed very high quality digital camera with an engineer behind it they created an iphone app and as the iphone camera improves and lidar gets added to it, that's going to be the thing that could make matterport into a household name imagine every homeowner mapping out their home imagine every retail business mapping out their stores or restaurants and doing so for the purposes of maintenance, heating and cooling, construction, selling it real estate tours. it's just an incredible situation. so i'm long. i hope to add. i don't mind buying higher, if i have to. i want to take it slow why i
build my position and i'm really excited about where this company could ultimately go. >> you want to buy more you'll have to buy it higher because your own words have pushed the stock up by 13% today near the highs of the day -- at the highs of the day, clearly, for that one. let's do this. we'll take a quick break, come back and get a few words butter cup ice cream hillt with real cocoa. well, that's the way the sandcastle crumbles. you can't beat turkey hill memories. (sound of people returning to the workplace) (sound of a busy office) (phones ringing, people talking, meeting) the company we've trusted to keep us working remotely, is the same company we'll trust to bring us back together. safely. securely. and responsibly. so now, between all apart and all together, there's a bridge. cisco. the bridge to possible.
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for robinhood. hood the ticker. down more than 7% at this moment we do continue to look ahead to amazon unusual activity, doc. what do you have give me unusual first and then i'd love your comment on amazon. >> sure. i'll make them quick, scott. rio. rio tinto. anything in the mining sector is ripping today. these guys are no exception. we're seeing a lot of january calls, 10,000 of the january it's a strange strike. 9657 is the strike price, i know, but they bought those calls, 10,000 of them with the stock at 89. second one, workhorse. it's down 35%. just in the last month or so earnings are going to be august 9th. they are an ev-maker i showed the aug 14 calls. and that's after a big sell-off. so maybe they do see a little
bit of a pop here, scott, over the next couple of weeks >> doc, you have shares and calls in amazon. what are you expecting and does the way the other big mega cap techs have traded after their numbers give you any pause about what you think could happen on the other side >> i guess a little bit, scott, but right now, i am short the 3700, 3750 and 3800 calls. against long calls and long stock. why have i done that because i don't know if we see more than $100 pop if we, do i'll give up that upside beyond that, but i'm taking in a lot of big, fat premium on those short calls >> okay. we'll see where that goes. steve weiss, what about you? >> in terms of amazon? >> yeah, amazon. you own the shares, right? you own it >> yeah, i do. look, i tried to hedge out the calls are too expensive. put too expensive. i'm staying with this.
expectations are very high the stock is likely to sell off. but you know what? it's going to continue to be the gift that keeps on giving. >> carrie, what about you? >> yeah, amazon sells for 37 times the year out earnings. that's the first time it's ever been a reasonable multiple and it only started to outperform about a month and a half ago after underperforming for almost nine months so even if it comes off because of high expectations, we're owners of the stock and we would buy it if it dipped more >> anastasia, fintech starts to falter a little bit in terms of stock performance, right, and maybe this is the beginning of that post earnings what does it mean for the overall rally? >> i don't think it means much, really, because i think the overall rally is a bit of a holding pattern. we've had a stellar first half of the year and i think the second half of the year we may see an upside of 3% to 5%. it's not much more than that the reality is, there's no
reason to sell the stocks right now but there's also no reason to buy into them aggressively because we are just not seeing the pullbacks. this is going to be a market that's going to be buying a hold it's not going to fall off the cliff. the fed may taper but rates are still at zero. think about the fiscal accommodation that's gone into this market but what has been the shortest recession on record this is going to be a bit of a holding pattern and we'll have to be a little more careful and nuanced about finding our spots. one thing i'll say about finding our spots, there's so much talk about inflation being transitory the fed talks about it inflation is not going back to prepandemic levels any time soon we're not going down below 2 we'll be 2%, 3% probably for the next 12 to 18 months so i think that's the part of the portfolio that i want to beef up and make sure i have some of those inflation hedges >> anastasia, great having you on the program today thanks for your patience at the
top. that's anastasia amroso joining us today let's do final trades. karen, what do you have? >> itgr, integer, beginning to see the resurgence of procedures done in hospitals. >> steve weiss >> volkswagen. they put a stellar quarter beat and raise seven times earnings what will be the top ev manufacturer going forward skyworks reports tonight it's going to be a great quarter based upon apple and qualcomm. >> dr. j >> freeport, scott i talked about miners, including gold gold gold is up 1.25% we're seeing speculation in the miners and in cleveland cliffs i still call it that as well as fcx, freeport. josh brown, last but not least >> all-time record high for uir,
u.s. reits sector up 25% year to date if you were worried about inflation, this was the way to hedge itself >> new high for the s&p today. new high for the dow industrial average. throw up robinhood robinhood officially -- there it is it's down about 5% $36. that's a couple of bucks below the open price that does it for us. "the exchange" is now. thank you, scott hi, everybody. welcome to "the exchange." we begin with robinhood's highly anticipate public debut on the nasdaq today the stock down 6% right now. it was down more than 10% just a couple of moments ago. also briefly positive by 3% or so so it's been swinging around. it priced at $38 for this ipo. a lot of those shares were going to retail investors who use the app. so at the open today, other than when it briefly turned positive they'd be under water on those trades right now