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tv   Fast Money Halftime Report  CNBC  November 10, 2021 12:00pm-1:00pm EST

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>> you might want to influence future ceos to which we like to see the likes of mark zuckerberg >> the way people pronounce bezos. >> meanwhile, door dash, as we mentioned still up about 14.5%. >> and we are watching rivian. the latest indication that those shares would open at $115 a share. let's get to the halftime. ♪ thanks so much welcome to "the halftime report." i'm scott wapner the red hot inflation and what it means for the record rally with the fed and your money. we'll debate that with the committee. we'll have wharton school's jeremy segal joining me for the hour today, jenny harington, joe lebenthal, joe teranova and the founder of
12:01 pm everything else not moving off that much and we are, of course, waiting for that first trade in rivian, that is where we are going to begin phil lebeau, are we getting close? >> we are close, scott and we see the indication at $115 a share. this will close, the largest ipo of the year and some people might be saying, $115, wait a second, i thought this was going to be indicating at $72 to $74 oh, no the indication was raised last night to $78 a share they also upsized the number of shares that will be part of this ipo. that's 153 million shares and there's ceo r.j. scaringe virtually ringing the bell from their company's plant in northern, illinois they'll raise more than $11 billion with this ipo. a chunk of that, a good chunk of that will go towards expanding production in the future why? well, they already have a number of slots filled in terms of their production plans at their plant in central illinois
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building out three vehicles. one of them, the primary one is an electric delivery van that will go to amazon. 100,000 will go to amazon and they'll take a look at ones this quarter. >> that 100,000 order will be substantially in the future and that's one of three vehicles along with an electric pickup truck and an electric suv built at the plant ford and amazon as we wait for the beginning trade now indicating 116 ford and amazon both have substant substantial stakes in rivian ford owns 12%. it will be interesting to see what both those companies do with their stakes in the future although i've been told amazon will be expanding and doubling down in its commitment to rivian ford remains to be seen with exactly what will happen there, scott. >> we'll see if it's a take the
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money and run situation. i want you to stay with me, phil you mentioned the valuation, and we learned this morning from our very own josh brown who was on stage this morning with kathy wood of arc invest at a conference and rivian came up. josh tells us that kathy told him that the valuation was even too rich for her, that the return on the valuation and that was when the valuation was deemed to be almost 70 billion so now you're up around in the neighborhood of 100 billion. so that's an interesting nugget to find out how one of the most famous growth investors feels about the valuation at these levels pete, you got an allocation, correct? >> yes, sir. yes. >> why did you want a piece of this and i want you to react to what
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cathie wood said if it's too rich for cathie wood, what it does that say about where we are >> i don't understand cathie's thought process. she's made investments on things that are absolutely astronomical and i think she's an unbelievable investor and done an incredible job and she's been involved with tesla with what seems multiple years for sure and she's always been being looking at that time saying, we think it's going to this price rivian, when you look at this, scott. what excites me about this is okay, ford does have the investment i think it's interesting that they decided to just do the investment and not use the technology that's a little bit odd to me, and i still think they sure made a great decision in 2019 now i'm being looking at amazon and phil's been talking about this, but a 20% stake and they're one of the folks that is absolutely part of the whole flow of orders and the 100,000 of these delivery vans and it's a great backstop in my opinion
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that amazon has this investment. they've got 20%. i don't assume that amazon has any plan to do that. because of that, that's always going to be there and who knows how that will play out over the next multiple years and rivian is a very exciting company and yes, it is highly priced and we can't even put a p-e >> you would scoff -- you do scoff at things like this in the past and now you're trying to justify, it sounds to me -- >> i'm not justifying. >> you said you disagreed about how cathie wood is looking at this >> and here's the difference here's the difference. this is just getting out there for the public to trade, scott this isn't something that's been out there for the last six months and everybody's been looking at it and it trades eight no-p-e level this is something that people will be clamoring for it just take a look and it's a $78 print, right where are we at? 115, 116, whatever the level is that phil will tell us, but that
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just shows you the excitement level that is in this stock right now and i think that's something that can persist for a while. once we get into active trading and we're into the stock for a while and we have options and everything else, you will find out that i will be shifting around my positions and for right now i want the stock position that i'll be allocated. >> phil, we're far from profitability from rivian. we're talking about an extraordinarily small amount of revenues at this point to justify this as tronomical valuation. >> you're right and no one will argue about that i will not comment on the valuation and what i will say is as i've covered the auto industry over the last 20 years you'll talk with other executives at other companies and you bring up companies and you say what do you think about those guys the reaction i get to rivian is similar to the reaction i got when i brought up tesla to executives away from the public bravado. elon musk doesn't know what he's
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doing. i'm talking about four, five years ago. that's interesting i hear the same thing and i have for some time. i've had executives at other auto makers say they're the real deal it didn't mean they'll be as profitable and they have staying power at least for the foreseeable future the question is how quickly does the ev market grow how quickly can they grow it and their business but they have a nice order with 100,000 electric delivery vans from amazon and yes, the order book on the pickup truck and the electric suv of 55,000 yes, that is small relative to other automakers, but it's not like these guys are out there saying hey, we'll start cranking up production and we're not really sure what we have the feeling is they do have a base to grow off of. >> they're coming public at the right time, too. in terms of market environment, where we currently are you're in the midst of a momentum-based rally
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i can only imagine maybe what the environment would look like, i don't know, a few months ago only that you have time on your side jim lebenthal, you want a piece of this action from someone who is an investor in general motors and i know how much you like that stock, but what about a rivian >> yeah. i do want a piece. thanks, scott. i'm not purposely provocative or edgy, but let me tell you i think rivian will pop today and it will quickly fizzle this isn't anything about the valuation of rivian. it's take a look at the overall automotive industry including cars like trucks and suvs. take a look at it now. the total market cap of all of the companies and the original oems and teslas like nicola, and i don't have the figures right at my fingertips, but conservatively, worth two times the market cap today than two years ago.
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my question for everyone, do we think the market for light truck, suvs and cars has gone up in the last two years? i really don't think so. this is electric viehicles verss combustion engine and what is the overall demand for it. i'm telling you, i look at rivian i see a case of wearing no clothes and the emperor in this case being the automotive industry at large. within that landscape i will happily take general motors at eight times earnings with the autonomous vehicle, that has microsoft as an investor walmart as an investor and oh, by the way, has a competing van in bright drop that has orders from fedex in this now huge space with a lot of competitors. i will take general mores over rivian any day of the month. >> this is a couple of days only after the infrastructure bill passes. >> sure. >> when you had all of the momentum post that vote and the
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money flowing into ev-related stocks >> you literally couldn't have timed this any better. >> fantastic timing and i don't know if you have the ability, scott, and there is a wall that we have created that shows the projected sales of electric vehicles in the united states. this gets to jim's comments about how much demand is out there. it is accelerating and it was expected originally by most that we would see 1 million in annual ev sales by 2025 take a look at the data now. the expectation is that we will hit 1 million in annual sales by 2023 2 million by 2025. so it is accelerating. that does not mean that rivian will be unable to meet demand that is out there. jim's got a point. they're going to have to meet expectations in terms of ramping up demand with the r1t and the rms. those are vehicles that you and i would drive, scott
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don't forget about the commercial industry. there's a lot of money there with the electric delivery van that they'll be delivering to amazon and they'll use that to leverage sales with other commercial vehicles and electric vehicles and that's the big growth area with electric vehicles over the next couple of years. >> the real question is is this going to be tesla 2.0 and i don't mean as simply an automaker, and i mean more from the cult following that that stock continues to have. you take it over a trillion dollars in market cap. it gives you an idea of the kind of momentum and love and belief that is behind a tesla, even in the face of production challenges and so many other issues that have existed and swarmed around tesla for the last many years. it hasn't mattered one bit to the stock in the bigger picture. sure, there are peaks and valleys, but look where it is today. now bank of america raises their targets today on a whole host of ev stocks including tesla.
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price target goes to 1200 there. that's from $1,000 at bank of america. the rating remains neutral lucid target to 60 from 30 fisker target to 24 from 18. so you're getting massive bumps across the board joe, what about you? rivian, any interest growth momentum i don't know, you have an et that likes growth and quality. what about this? >> i sure do, well, i think first of all, listen if you're in pete's position and you're staring at a 49% gain here in the next few minutes when this opens, your decision process is a lot easier do you reach for it here and buy it i'm not necessarily sure that you do that. looking forward, this company has two challenges to think about and i think the entire auto industry shares those challenges first of all, we've got supply chain disruptions which has dramatically acting as an impediment towards production.
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secondarily, scott, if you think about it for the better part of the last 18 years, they've been blessed to have private sector borrowing cost at incredibly low levels i would expect that rates will continue to rise and we'll talk about that further and we'll dampen some of the demand and ability for consumers to go out and purchase these cars. so i think the right way to play this and pete mentioned this before is just continue to have exposure towards ford and amazon because i think ford and amazon are the traditional approach to having access to rivian here they're obviously breaking out, incredibly strong momentum in each of the stocks in the last couple of weeks in anticipation of rivian, and if rivian is going to carry forward a lot of the strong pricing that we're seeing here from the ipo, ford and amazon are going to benefit. i would say ford and -- >> ford could be gone. phil's trying to make that point that amazon's going double down. i think those are the exact words that phil, you used, but
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ford could be gone tomorrow, so to speak you can take the money and drive off into the sunset and say oh, my gosh, i can't believe this was as good as it was. it's awfully difficult to make a long-term bet on ford because of what we're watching in rivian, phil. >> i do not believe that ford is going to hang around for a long time and it doesn't mean they'll turn around and flip their shares in the next day, but i don't get a sense that ford -- >> well, look, if you're ford you're not using them for your electric vehicle platform and aside from saying, yeah, we thought they would stay hot and they would stay with that investment and they don't have a seat on the rivian board of directors. they gave that up and they also have opportunities after the initial investment of a half billion in early 2019. i think there was another round of fund-raising that they contributed to, maybe two, but then they stopped. they didn't continue, and i think it's pretty clear they're not down on rivian i think they realized we've
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gotten a great pay day i wouldn't be surprised if they cash out at some point >> that's all we're saying it wouldn't be an indictment of the outlook that ford has towards rivian it would simply be, like, okay we went to vegas and hit the thing. let's take the money and run so the indication right now is that 111 remember, it was priced at 78, and the indication spread if you will, has been interesting to watch. it's 111 now because i was marking this earlier at 10:20 this morning it was at 110. it got all of the way up to 125 at about ten minutes prior to 11:00 so you got over a $100 billion market cap and it's probably sitting around $100 billion or whatever. phil said it's coming up, and he's staying with us jenny harrington, i go back to the cathie wood thing. if it's too rich for cathie wood, i know you're not touching this thing and i know you're not reading too much into this, and
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it was on stage where josh brown had the conversation and she said it's just too rich for me on this valuation, the return to this level does not seem to be great. i know you're not touching it, but what are your thoughts on the overall story itself >> well, look, the technology is clearly there. it's clearly brilliant, but i've been trying to think of how to analogize it in my head and how to wrap my own arms around it, and i thought where you could make a pfizer and moderna analogy. brilliant scientists and brilliant things and pfizer went out in this because they had a hundred years of knowledge and history on how to manufacture and operate and how to get products to market, and i think it's also going to be challenging. when you are rivian, you will need to continue to grovel from the capital markets. when you are a ford, gm or toyota you are generating cash flow on your own my money is with the big guys. we own toyota.
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i think jim made an absolutely perfect, beautiful, and the whole situation and the total market cap and how many are down on the ground and i don't know if these collective market caps can possibly be justified given that ultimately they're selling cars and those are ultimately a commodity. so i would never argue with the technology it sounds fantastic, but like you said, scott, if it's too rich for cathie, it's way too rich for me. >> joe teranova, i want to apologize for earlier. i heard you want to get back in? >> sorry i disagree i think absolutely, ford is going to stay. there's been indications that the lincoln will be built in the rivian skateboard platform ceo farley has talked about this not being a transaction, and i think it would look very poorly upon ford if this transaction were to be closed out so close to the ipo what does that say overall about
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their belief and where the ev business is going? >> so i completely disagree with the premise. yes, it is their right at some point for ford to ring the register, and just because they haven't indicated that they're not going to, i don't suspect that they'll be doing it any time soon. i think there's more of a partnership there than we're giving credit to >> well, nobody would know this better than phil, you know farley is not on the show right now. he also didn't -- phil, i'm sorry. you didn't suggest that they would flip the stock today or tomorrow or the next day or the day after and it doesn't mean it's a long-term deal. >> jim farley has said it's not transactional. i could be wrong three years from now, they could be holding arm in arm at the rivian plant and they can say these guys will be doing the next lincoln ev. is that possible
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absolutely, that's possible and i'm just telling you based on what i hear from people within the auto industry who are familiar with the relationship between ford and rivian. i would be surprised if it lasts a really long time i'll leave it at that. >> all right i just want to keep everybody up-to-date that we are still waiting for the very first trade of what will be either the or close to the largest ipo of the year $110 is the indicated price right now. so we've round tripped from where we were a little past 10:00 a.m. on the east coast when it was $110 it went up to $125 and as they continue to pare shares off, it continues to drop a bit. do we have the professor now let's bring in jeremy segal now of the wharton school. professor, i'd love to get your thoughts before we get into the cpi which i know you're about to jump out of your chair on about the environment that we find ourselves in right now where you have a company with
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extraordinarily low revenues relative to the extraordinarily high valuation that this stock is going to command right off the open today >> we've had that -- we've had that for a while, a number of stocks the only good part is that if you -- it's $100 billion and it's a lot, but if you take the market value of all of those and compare it to over 30, $40 trillion in the market it's still a small fraction we were way more overvalued in 2000 in that bubble which affected 30, 50% of the market than we are now. basically like old technologies is, in my opinion, pretty reasonably striked right now so i don't see general market overpricing. i'm not going comment on rivian or tesla i know the market values are high and i know there's a lot of
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excitement about record cars so they'll get margins that were not available for the old automakers and internal combustions that we had two or three years ago, but i -- i have no particular opinion on the ev industry >> so but you look at this and you say it's not a sign, and by the way, throw tesla in there with a trillion dollar market cap, as well >> that's what it is along with the -- it's one that's very, very big, and one of the five and six biggest stocks, but if you go along around the horn on any of the others, you know, and add them up, i mean, i think the s&p, and the old faang stocks are selling at 19, 20 forward earnings in an environment like this where interest rates are zero and negative inflation, to me that does not seem expensive,
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but going back, this was a troublesome report we got today and i think -- listen, stocks love inflation until the fed gets serious about it and they have not been serious about it, we will see. they'll get one more inflation report in december for november before their december 15th meeting, if it is anywhere like said today, i think the pressure on powell will just be enormous to come down stronger than he has. >> i have a couple of things for you as we do talk about tesla and the expected first trade of rivian, what we think is going to be imminent you're saying two stocks don't frothy make. you're saying that, okay, maybe some stocks are a little bit frothy, but relative where greats are you dovsht look at the overall market and say okay,
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we have the red sirens going awe of the massive warning signs in other areas. >> that's correct. in 2000 the s&p 500 tech sector was selling around 60 to 70 times earnings, that's s&p particular sector and an interest rate environment where the ten-year chips was over 4% positive have you taken a look that we hit a a new all-time low today less than minus 1.2% so, i mean, you know, there is no alternative is operative in the stock market x the faang stocks and tesla, 19 to 20 times earnings is not unreasonable however, that being said, when
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the fed gets serious, and i think they will at this december meeting, we're going to see some tremors if that does happen, but in the meantime, i do not think there's general overvaluation of the market >> you know that the market discounts things in advance, and as bad as the cpi read on the headline is, theup is is down a quarter of a percent >> right >> the dow's down 58 points. does that speak to, okay, you still have a lot of liquidity and you'll say, tina, seasonality is on the bull side and all of that at least for the moment trumps inflation? >> it trumps inflation until a pollee companies, it isn't temporary. it's more serious and then we
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expected that we'll have to speed up the taper and speed up the rise of interest rates until he says those words, you know, the market says, you know, what me, worry? i mean with all of the money flooding into the market they can raise -- all of these costs going up they're pushing up the prices and getting grumbling, but very little resistance, margins are still extremely high it's only when the fed gets serious that i think this market is going to take a correction. >> it's not indifferent, farmer jim to your thoughts, as well. you are the so-called mr. all in and you continue to say even after the inflation read today that you ride the rally. keep riding the rally. tom lee basically says keep riding the rally >> and let me be very clear, the most important force in the markets is the u.s. federal reserve, and that is based on decades of my own personal
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experience the professor, i think, is right. i think the fed will have to get serious, but what does that mean the thing you have to look out for is when do they raise rates and we're months away from it, probably two quarters and history says after the fed starts raising rates you usually get two years of rally after that so i'm wnot really worried the finish line is through this year end, and i think when you get to late january that you will find some volatility much like you did in early 2018 after a great 2017 because what happens when you are up 25% as you are this year in the s&p 500, nobody wants to sell and anybody who has been bearish in the portfolio management space has to chase this rally. that will propel us into january, but then you can look for me to take money off in late january. you heard it here first. >> i just want to introduce one more thought on the rivian thing before we take a break
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mary barra, jim, the general motors ceo was speaking to andrew ross sorkin at his amazing deal event and what we are seeing with the rivian ipo proves gm is under valued. so everybody in the traditional auto space, if you want to characterize it as that, looks at a valuation like this and says wow do we feel undervalued or what >> and you know where i'd go with that? remember four or six weeks ago when engine one took a board seat at gm, they're no dummies they see exactly what you're talking about and what i've said, as well and if gm's intrinsic value doesn't get unlocked and i would expect engine one and other activists who say spin out crews and spin out the electric vehicle division so just stay tuned on that i think we're still months, if not quarters away from any moment of truth on that, but that is something to look
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forward to >> professor, if you look at the s&p today at 4672 as i'm asking you this question. in your mind, before you think the party ends and however it may and whenever it might given what the fed may do in the not too distant future what kind of number of s&p do you have in your mind to have one of the more bullish strategists come on the program and say early part of next year, easy, 5051 what do you think? >> make the trend your friend and momentum is powerful, but momentum eventually drives prices too far, so you've got to be careful everyone thinks they can ride the wave and get off at the crest. some very few people are actually able to do that i'm still in for the long run. i think the long run stock market looks absolutely fine i don't think the bumps come
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until the fed changes direction and says, you know what? you've got to be much more serious. maybe it will be at the december meeting, maybe it will be a little bit later and then in the meantime, sure, it could be up another 5% or 10%, of course, but projecting the short run on the market is very, very hass douse. >> yeah. >> professor, i always like to have you especially on days like this when we can talk multiple topics and the stock market itself, but some of the anecdotal issues that make us think. that's jeremy segal at the wharton school >> guys, can we throw up the snowflake chart. jenny, as i think about ruffian and this unbelievable valuation that is going to come out at i remember snowflake opened for its first trade, i believe, on
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this show and we were talking about, okay, this is a company that from the ipo guys until now, not the intraday. we were talking 200 times sales and we're sitting there marveling at that ipo at that time and investors who bought on that the opening day found themselves burned at some point during the early run of the year as a publicly traded company you can see the big sort of crest there and now it's been working its way back, but jenny, therein lies kind of the disclaimer for investors, certainly the more novice ones who are watching our program and get caught up in the hype of a rivian and say maybe i want a piece of this action and then you get stuck as the professor said, wiping out at the top of the wave when it crests. >> rate. so this is where i have flashbacks to my late 1990 days when i was at the trading desk at goldman and participating
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with some of those ipos and i back then thought that they were all going to the moon, and i thought that everything was hot and i feel there are so many flashbacks, sorry, not as many, but there are flashbacks to this time now and i'm looking at rivian opening around 110 off of a $75 pricing. both of those numbers are extraordinary given the smallness of the revenues in the future, given the tremendous competition that's ahead i think people just need to be really, really cautious and it's funny, scott, that you brought up snowflake because i actually thought you were going reference doordash we were going to talk about that, too. it is up nicely today and it's the same math and logic that went into that on the ipo price where it's just a lot of enthusiasm people like he's, but we need to be very careful about not letting the emotion totally override the fundamentals and long-term prospects of the company to generate income. >> it obviously is an exciting day. what may end up being the largest ipo of the year.
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$110, the indicated price, could be a momentarily that we do get the first trade. let's step away and take a quick break. phil, i'll come back to you when we do get the trade. i appreciate you being with us we need to talk coin base and it's falling after reporting lower than expected revenues what will you do about that? we'll talk to an investment committee member when told you to wait until after earnings if ocu're interested in buying the bryn talkington joins us and she'll tell you if today is the day. we'll be back right after this we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones
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welcome back to the halftime report i'm rahel solomon. here is our cnbc news update at this hour. kyle riddenhouse, theaking the stand in his own defense today rittenhouse claims he was acting in self-defense and broke down at times >> i was cornered from -- in front of me with mr. zaminsky and -- there were people right there, and i started to run. >> full coverage of the kenosha murder trial tonight on the news nasa is delaying its initiative to put astronauts back on the
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moon on 2025 at the earlier. congress didn't provide enough money to develop a landing system or capsule for its moon program. and prince harry sharply attacking social media companies for failing to challenge hate speech online. he reveals that he warned twitter ceo jack dorsey via e-mail before the january 6th capitol riots that the media site was being used to stage political unrest twitter has declined to comment on the prince's remarks. i'll send it back to you >> rahel, solomon. check rivian, of course, as we wait for the opening trade and the indication has been around 110 and now 106. so that's the lowest indicated price that we've seen in at least a couple of hours. of course, priced at 78, and much above that. we'll get you right above that phil lebeau will have you, pete najarian, got an allocation of it and we'll talk to him about that, too. let's talk about coinbase.
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the crypt on trading platform reported a revenue miss with the trading volume from the second quarter and let's bring in bryn talkington who was with us the other day and she bought it high you bought it back in april. you bought more and urged our viewers to wait until after earnings if they were interested in the stock is today the day to buy it if you like it? >> well, i think it's important on the show as traders that we inject some of our guidelines on trading and so i urged everyone last week if you didn't have a position in it to wait until earnings because i don't ever buy a new position right before earnings because just look what happened last night the stock was trading down at, what? 311 and i think that's been pretty interesting is i bought it last week at 340, and i think i saw the last print at 341, so i would be a buyer here if i didn't own it and i think you have to understand these are still the early days of
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cryptocurrency and for the viewers that don't know, brian armstrong which i talked about before and i'm a big fan, and he was one of the first engineers to build the airbnb platform and he left in 2012 airbnb to start what today is coinbase aside first winklevoss brothers i feel he's been in bitcoin, in the crypto market since day one and i think this company will continue on innovate some quick financials. the market didn't find it missed revenues and it came in net revenues of $1.2 billion and this myopic obsession over quarterly earnings is a good example here when you take a step back and look year over year, their revenues are up threefold year over year and as you all are talking about rivian with no revenues, much less income, their net america which i think came in at 400 million in this quarter is up fivefold year over year i think the best days are ahead
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of it and it's a very volatile stock just because you can capture a lot of premium, and i think it's a really good sign that it hit 311 and it's over 340 today and i think there's a lot of people coming in here and going long brian armstrong >> i just want to bring everybody up-to-date and the indicated price now down to 105 for rivian as we to await the first trade. i want to get your reaction, bryn, if i could, to something cramer said in his investment club he took these guys out to the wood shed, really. coinbase the arrogance of these guys, says cramer, half dozen references to what a great quarter it was, when it was a huge miss. they must think we all fell off of a turnip truck. their arrogance is shocking and frankly, ill-advised i know you reference the company and the leadership what do you make of those comments from jim cramer
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>> well, broadwian armstrong ha never been shy in the first place. i think what jim is saying is very spot on as a ceo you have to have humility, but i think though, if you're saying what do the analysts expect versus what happened, as i just said the revenues were up threefold year over year. that's incredible and i think brian's taken a much longer perspective and i think jim gives really good advice i hope brian is listening to him in terms of have some fume ility and i also think that for brian, also, i hope he takes the sec conversations off of twitter and doesn't try to do an elon musk and really works with the regulators because they have the opportunity to have a space in the highly regulated space that's coming in cryptocurrency. we would hope brian has some humility at the same time i do think that the analysts are myopic on these quarterly revenue numbers that i just think that people at the end of the day will shake them
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off and i think you already see them in the price today and how much it's rebounded since last night. >> i appreciate you coming on and that's bryn talkington and she'll be back on the show in the days ahead still waiting on the first trade from rivian. the indication now $105. the first trade is imminent. we will be on top of that plus disney reports after the bell tonight. got some ownership there, too. we'll get positions on it. we'll be right back. this month mondelez aligning its long-term esmissions with th paris climate agreement. the plan, design 100% of its packaging to be recycle ready by 2025 and invest in electric and hydrogen trucks and reduce warehouse emissions by concerting to renewable energy sources. shares of mondalez have
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106.12 is the indication right now. we are also looking ahead to disney after the bell, the report earnings, jenny and jim own it farmer jim, what do you think on disney you know, when you go through an earnings season, there are some reports that are just not that interesting to you disney is a long-term hold for me i think it's a fabulous company, but this particular earnings report has been derisked if you will by bob chapix's comments being choppy during the quarter and i expect very little from the quarter itself i think the price of disney right now is a price that if you don't own it, this is a good spot at which to own it and buy it, but i want to begigger poin that while i don't think earnings are a catalyst and i believe it's tomorrow, maybe friday, last year that was a huge catalyst. a huge catalyst for the company. that might be a catalyst this year, but i don't think it will be as much as it was last year, but bottom line is this, if you
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don't own disney, you should this is a good price to own it, but don't expect fir works in the quarter. it's already been derisked >> it's flat and let's call it over the last three months at a time when re-open and entertainment-related stocks have done well whether it's endeavor group, it's live nation, booking holdings, expedia just to name a few and i tried to look at a smattering of names in the sphere and you own disney, as well. do you have higher expectations than jim jim keeps saying everything so perfectly to say that i don't have much left to say afterwards so what we've seen over the last couple of months there's been this push, pull over and are foreign tourists going to be there? disney plus, will subscribers be backing off and that's what's kept the share price flat and for us, we bought it last year and with the idea that they would get to $10 of earnings
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we are still totally onboard with that. >> oh, that happens from time to time i should tell you that we'll hear directly from disney ceo bop chapek and he'll be on "fast money" around 5:30 eastern time and he'll tell you more context around the quarter and obviously the outlook for the month ahead. let's take another quick break and 'lcowel me back and give you rivian's first trade along with pete's unusual activity and all of that coming up next and you could fearlessly face the unknown. (kids playing) you still can. ♪ ♪ (blowing dust) when you have a rock you can depend on for life, you'll be unstoppable. that's why over 5,500 companies rely on prudential's retirement and workplace benefits. who's your rock?
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get started with a great offer and ask how you can add comcast business securityedge. plus for a limited time, ask how to get a $500 prepaid card when you upgrade. call today. >> well, first i'm going to start off with zynga this is a name that gave really great numbers as they reported earnings recently. user growth is absolutely off the charts, whether it is daily or monthly really incredible. they're still in here buying matter of fact, stock underneath $8 a share and buying the eight strike calls expiring friday they bought 39,000 of the calls today, so aggressively coming in here, looking for the stock to continue to make a move to the upside it made a decent move from the last couple of days. secondly, another one for you. proctor & gamble we've been seeing more and more activity in names we normally don't see. proctor & gamble is one of those
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names. 11,500 of the november 261, 150 calls bought today last thing i will point out. we've averaged 39 million contracts per day in the options world. this past week we've averaged close to about 49,000. so -- or 49 million. it gives you a little perspective. volumes are absolutely outrageous and continue since the start of november. >> good stuff. i appreciate that. stay with us we will take a break we will come back and talk about the investment committee making some new moves i've got jenny with a new buy. i have jenny with a sell i have joe with a couple of new up onahe bought as well, a colef mes he dumped. we will talk about that next
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all right. welcome back let's talk about some of the moves. joe, you bought abbvie you used to own it you bought it back why was now the right time to do that >> well, on october 29th it was added to joe t. below 115. the quarter that was reported recently was a very strong one margins, eps, increasing, and the dividend was raised from $1.30 to $1.42 so i took a position personally in abbvie. docusign was sold out. that's the way i funded abbvie i told you i would not allow docusign to become a losing trade. i had purchased it about a month ago around the 260 area, so basically scratched out of that one. >> what went wrong, let's say, in docusign, right because if you only bought it a month ago, you certainly didn't expect to only hold it for that
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period of time >> scott, it didn't go anywhere and it is a classic long-duration asset. jenny knows exactly like that. the cash flow is not going to be generated in the present and in an environment where rates are rising and we are questioning long-duration assets that's the type of equity name that will come under pressure in this environment >> eqt you sold as well, a gas play >> yes, that's domestic natural gas. i have owned it for quite sometime i wanted to get exposure to international gas. you do it through lng. i bought that personally cqp on october 29th was added to joe t. that is giving you the exposure to an international gas supply shortage >> okay. so you bought abbvie back. you sold docusign. you sold eqt and you bought shineer. that's how it played out >> correct >> there's a lot of stuff in there. i want to maybe sure i'm clear
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yeah >> yes >> good stuff. we will take a break and come back and do final trades next. personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit ♪
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all right. final trades jenny, why don't you start us off. >> kinder morgan, collect your 6.5% dividend yield and don't look the gift horse in the mouth. >> appreciate it pete najarian. let me ask you this -- >> yeah. >> try to give our viewers a little more clarity, timing, how long you hold this trade we are still waiting for rivian. can we get the screen back up,
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please, to see where we're indicated now. we are waiting for the first trade. see where the indication is. >> sure. >> 106.25. pete, is it in your in and out, you could be out before tomorrow's show kind of thing? >> no, absolutely not. no, i plan to hold this one for a while, scott i don't know how long that's going to be, but i will tell you this as soon as options are available on this stock i will probably be using options against the stock position that i get. so i'm just waiting for that i have a little bit of time. >> okay. give me your final trade then, pete thank you. >> sure. i'm going to give you coty, this is beauty supply it is a great company that continues to power higher and i see more buying coming in. >> okay. mr. all in, farmer jim >> yes wynn resorts, scott. they reported last night very good quarter. way to look at this stock is forget the macau operations. it is a zero premium call option embedded in the stock. it is all on the strengthof th u.s. operations, las vegas, boston as well as the
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interactive business which is still growing and is very young. buy wynn resorts >> okay. j joe. >> guess what is at the high for the year the u.s. dollar. keep an eye on it. i think it will continue to go higher >> waiting important the very first trade on what could be the biggest ipo of the year, rivian, the first trade we think imminent "the exchange" picks it up right now. ♪ thank you very much, scott hi, everybody. i'm kelly evans. ahead this hour, prices are jumping, inflation expectations are surging, and the administration is playing defense. what does it all mean for stocks we have your inflation nation plays. plus, trading rivian the ev truck makers debut is the biggest ipo of the year, raising nearly $12 billion that's actually the largest haul in a u.s. exchange since 2014. can the capital help it reach scale? mickey, meat and money we have the


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