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tv   The Exchange  CNBC  November 10, 2021 1:00pm-2:00pm EST

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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 action, the trade on
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beyond meat, disney and sofi first, as we await rivian. >> still waiting the indications as you saw on t "the halftime report." sentiment wise on wall street, not far off record highs but on a two-day losing tyreek. the dow is off one quarter of 1%, roughly 90 points. 36,230 the last trade there. 4,671 is the last trade on s&p, down about a quarter of a percent as well. we were down roughly 22 points at the lows of the session, so you can see it in context, we are down 14 right now. by the way let's get a check on rivian right now shares have just opened for trading we will get a look and see what is going on here but rivian shares about 106.75 is where it opened so not far from where we just saw it you see 107.20-ish, the last
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trade there, up 346% from the ipo price. rivian automotive after waiting so long finally opened shortly after 1:00 p.m. eastern time we will continue to keep an eye on this. much more on rivian coming up but the valuation is big, $105 a share, opening at 106.75 back to you, kelly >> wow all right. you nailed it, dom chu, with the open there this is a humongous offering, looking at shares of rivian priced about 10 million or 11 million shares before the official opening, but we are talking about maybe 130 million shares debuting in the offering. it is the biggest ipo of the year, raising $12 billion. let's look at how the market cap compares to other auto makes tesla is higher today. tesla is down about 13% since last thursday, sharing $200 billion off the value. at 106 a share rivian's market cap stands around $90 billion, bigger than gm, bigger than ford which owns a 12% stake in rivian
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so will participate in the upside phil lebeau is in chicago standing by with more details. phil, you thoughts on the open >> kelly, i want to see what this trades like let's say over the next hour. let's take the next hour i know that's just a small sample size. let's see if it hangs in the 105 area, now trading as high as 110, 111 earlier it was indicated at 125, early, early this morning, and ultimately it came back down into the 105 range again, trading at 111 right now. it has been a busy day for founder and ceo, rj skacaringe. he rang the opening bell virtually from the company's facility in illinois, surrounded by all of the rivian employees as you mentioned, kelly, they will be raising almost $12 billion. i had people say what are they going to do with that money. part of the money will go towards finding another assembly
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plant. they've been out scouting locations. they've not indicated exactly where they will build a second final assembly plant, but they will be building one in the next couple of years, in part because they think they will be at capacity in normal, illinois, if all goes as plans by the end of 2023 one of the primary vehicles that will be built at that plant, it is an electric delivery van for amazon amazon has ordered 100,000 i have been told that order is going to grow substantially over time as amazon looks for more electric delivery vans so they've got 100,000 of those ordered. the first ones being delivered this quarter and then they'll ramp up production over the next couple of years. one more time let's look at the market cap of gm, ford, riff y rivian and lucid as it is right now relative to gm and ford, and 90 billion is above gm and ford.
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lucid i think around 72 billion, 79, where you are seeing tesla, rivian and ford, then i said lucid is around $72 billion, $73 billion. you guys, kelly, i'm not surprised we are seeing as much excitement as we are surrounding rivian we are hearing from people on social media saying, look, they're only going to sell -- they've only sold 1,500 vehicles, these guys are not turning a profit, they will lose more than a billion dollars for a third quarter. it is a wacky valuation. i'm not going to comment on the valuation. way will say is within the auto industry, this is not considered as a johnny come lately, a company that will flame out. many believe it will be around now, whether or not it is as successful as tesla, no way of knowing. no knowing what it will be like in five years, but the feeling is that these guys are the real deal, at least when it comes to electric vehicles, and they will be around and will be a player in the future. >> and we should note -- well,
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the first point you made everyone should be aware of is these cars are already on the road yes, they're very small but not just a business play as we have seen with other ev makers. >> right >> the cars are out there. 106.75, barely above right now even on the screen it looks like a big pop. only the insiders on the ipo got the $78 price. watching that 106 level closely, phil, it was an interesting story in the journey over the weekend about the battle between ford and gm over a piece of rivian even though ford won, i don't want to say soured, it might be too strong a word, but rivian is disrupting ford now. even though they will financially benefit from the deal, perhaps there could have been bigger synergies there that it feels like aren't going to take place >> i think, kelly, the decision was made at ford, and it was made sometime ago that when it comes to electric vehicles they do not want to be a partner-only with an electric vehicle company. that was the idea originally when they bought into rivian in
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early 2019, late 2018. look, they were way behind when it came to electric vehicles at that time, and rivian was a smart investment they put a half billion dollars into the company, and originally the plan was, hey, rivian is going to be the platform for our electric vehicles. well, since then ford has made the decision, look, we can do it ourselves. we are going to build our own platform, and that's what we see with the mustang mach-e. you will see it with other vehicles coming out, the f-150 lightning. that was the decision ford made, we can do it ourselves >> right >> some people are playing this as, you know, ford is going to cash out and they don't really care for rivian. that's not the case. it is more a case of ford saying, we have the expertise, we believe in our plan, we're going to go forward with our plan. >> oh, and the market seems to be rewarding them for that, for heading in that direction, and they rewarded from the ipo as well thank you. we appreciate it phil lebeau reporting from chicago. >> you bet my next guest says rivian is
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entering the market at a similar moment as japanese makers did in the 1980s. joining me is a partner from bullpen capital. it is great to have you here, duncan what are your thoughts at this ipo which is at a very high valuation? >> first of all, you guys have done terrific reporting on rivian i have been listening to it. great job. my point about this is rivian is the mini me of tesla they follow the same playbook. they're going to do as well as tesla in their segment they've gone after trucks. why are trucks interesting they don't have the range anxiety you have in cars delivery vans, construction pickups drive local. you can make sure you use it all day long and not run out of any type of electricity. i think they picked a stunningly good segment your comments on ford, they're going right after the f-150. what a huge market for ford. these guys will go right and target it. so i love rivian
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>> let me ask you, let me push back on this a little bit. it feels to me like tesla has been the best gift ever for rivian because everybody who has watched it vault in valuation this year goes, all right, maybe i didn't get in on tesla early enough but now i can on rivian i look at the $100 billion at the opening and it reminds me more of uber >> well, here is the thing evs are going to go after the car industry, the legacy car industry, and the challenger usually wins we've seen this silicon valley story over and over again. we are seeing it right now don't underestimate the impact these people are going to have on the normal car market it is really hard for incumbents to -- like the ford f-150 lightning, it is going to be hard for ford to go after rivian it may sound strange to you but they have legacy to deal with. >> sure. >> you go to the dealer, should you buy a gas 150 or electric 150? it makes it challenging for ford
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to push its scale on the market whereas rivian has a really clear direction and they're doing direct selling like tesla. >> i totally - >> i think you are going to see evs win over the legacy car over the long run >> i agree with you 100% on that i mean obviously the legacy automakers will catch up because that will be the market. they have no choice in that sense. but when you look at the production that tesla is operating at and the amount of time it has taken them to get there, the manufacturing nightmares, still bringing austin and berlin online right now. the issue with evs is not demand, it is supply how can you make them quickly enough what are the sustainable profit margins going to be like rivian looks great, but at $100 billion valuation i'm curious how quickly you think they can reach production that justifies that valuation let alone a higher one >> well, first of all, if you look at how these things are priced, they're like 10 to 20 times sales. next year rivian is supposed to
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have around $8 billion of sales, so it means the pricing is not out of whack if they hit the production that's the achilles heel tesla had difficulty scaling up over the years and had much more time than rivian had to do it, but i think we're going to solve this problem pretty quickly. look at the whole car industry they're having a problem with production now anyway because of chips and other friction in the supply chain my real point though is what you made at the very beginning in the '70s we had gas price wars, we had gas problems, we had the opec, we had everything too expensive and complicated and there were shortages what is happening right now? down the street from me in california there is $6.50 gas premium. the cheap stations are over $5 we haven't seen anything like this since the '70s, and it doesn't look like it is going to clear up quickly because there's some hostility to the whole fossil fuel industry right now what does it mean? the evs have a moment where they're not going to sell save the planet they're going to sell cheap. >> yes >> they're going to say, do i
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really want to have a gas truck which might have gas shortages and problems or should i go electric you will see people make a normal buying decision that they hadn't usually been making in this marketplace that's going to change everything once this happens, we're not going to look back >> i think that's very, very well said, and the timing isn't just tesla like i mentioned, it is really also as they become more economically competitive. duncan, good to have you on today. thank you so much. >> thank you >> duncan davidson with bullpen capital. meantime, the biggest inflation surge in more than three decades is pushing yields and the dollar higher and we just had a 30-year bond auction which didn't go over so well rick santelli is calling a monumental one let's bring him in from the cme. rick >> yes, a horrible capital "h" bond auction i have been watching 30-year bonds since 1979 a lot of auctions between then and now. this could be one of the worst i have seen. look at the intraday of 30s. you see the way yields jumped? let's go through the auction
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results. the one issue mark, it was trading 1.885. this price at 1.94%, almost a six basis point tail on this thing. huge every metric was not good. bid to cover at 2.20, worst since july of '21. 59% on indirects, the lowest since november of 2019 15.8 on direct, lowest since october of '20 finally, if we look at what is going on with regard to dealers, they took a jumbo amount of that buffet because investors didn't eat much 25.2%, the biggest since august of '20 and if you consider the fact that many investors saw the data this morning, let's look at it, cpi year over year caught my eye, 6.2%, the hottest since the early '90s five-year note yields just skyrocketing if you look at 6:00 a.m. you can clearly see at 8:30 eastern when they saw the inflation data they
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jumped and jumped again on the auction results. you can even see what it is doing to yield curves. remember, flattening yield curve means that they are selling short maturities or buying long maturities, a combination of those two factors. but what we're seeing here is selling across the entire curve, and finally the long end woke up, steepening all of these curves this is something to pay big-time attention to, kelly >> rick, can we talk about the dollar as well for a moment? because everyone seems to take it for granted it is strong here, but often inflation is supposed to be bad for the dollar you know, it sinks it. that's the whole point of investing in other kinds of assets, is that they rise because the dollar is falling in value. what do you make of the fact it is so strong right now >> it is like when a sick patient goes to see the doctor and he has his diagnosis and he knows what is wrong. he says, here is the medicine that will cure you the markets are basically telling the fed, we need some more medicine. the way the yield curve is moving, it really underscores
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that notion. the fact that the markets are being so bossy at this point in time has given the dollar index a bit of a jolt. >> got it. so you think the dollar is responding to markets pushing the fed to maybe raise rates more quickly >> yes, and if they're going to raise rates more quickly that means they have to taper more quickly. all of that sounds murky and difficult to me. >> all right rick, thank you very much. bossy bond market today. >> thank you >> rick santelli out at the cme. so as mentioned the consumer price index up 6.2% from a year ago, the hottest reading since 1990 let's dig into the reasons why fuel oil rising almost 60% on the year energy, up 30% used cars up 26% new cars, up 10% food, up 12% now housing is starting to rise as well, playing some catch-up to home price appreciation, up 4%, but rising quickly month on month. how can inflation protect your portfolio? joining me, portfolio manager at
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angel capital advisors welcome to both of you cheryl, let's begin with ou. how should people protect themselves >> yes, absolutely when we look at the data points around inflation, we are really more focused on staying shorter duration here, and particularly favorable on the financial sector, banks in particular, consumer finance, are all leveraged to outperform in an inflationary environment given a steeper yield curve, reacceleration, releveraging of the consumer and a benign competitive environment. >> chris, should you stick with inflation trades or do we jump ahead and say, well, like rick said, the fed could raise rates, maybe it brings bond yields down even though they've been on the rise, how far ahead of the story do we try to get here? >> at this point in the cycle you need some inflation protection in your portfolio, absolutely i wouldn't abandon trades you have in place to protect your
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portfolio. you will have some positions in some companies that do well throughout any environment you continue to need to have some companies that can do well in an inflationary environment, so companies with pricing power, companies that can benefit from rising energy prices we don't think it is too soon toes take those positions out of your portfolio >> cheryl, let's talk there positions you would recommend. american express, capital one, ally, sbp financials are these basically rising rate plays or is this more to the story? >> i think there's more to the story. when we think about consumer finance and the credit card companies in particular, i think it is a great opportunity for card acquisition we saw that in american express earnings where they added the highest number of new card accounts in over three years so it is not just higher rates playing in here, it is a willingness to borrow again and spend again, which will drive higher volumes, higher loan growth, and then the rates are added in to that in terms of margin expectations as well.
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>> i hope everybody caught what you were saying there, cheryl, because there's huge macro implications we would love to see loan demand rising but you start to wonder about the velocity of money which has been so low, and what if it starts to pick up again. chris, i think one estimate i recently saw is if velocity of money went back to what it was precrisis, nominal gdp would jump about 125%. inflation would be part of that and the market is pricing that in >> you're right. velocity of money has been the key for post-global financial crisis and to an extent post-covid crisis. m2 has been large. we have had huge amounts of money but the volelocity stayed low. we are looking for companies with pricing power that can raise prices as their costs go up, as transportation costs go up, as energy goes up, in costs in terms of the supply change. things like apple and google, companies that can raise prices and customers will pay those
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increased prices >> chris, is it also possible people don't have to overthink it because owning the market broadly speaking has been a great way to defend against inflation right now. it is almost literally the flip side of what we've been witnessing there seems to be a general idea the stock market itself has enough pricing power to protect your portfolio >> it really depends within the s&p 500, clearly it is a market-capped weighted index so you are seeing more higher quality, better brand companies that are taking up a larger part of the index, to some extent owning an index can help you in an inflation environment. even with the s&p 500 there will be winners and losers and you s see a big difference between the companies that can preserve their profit margins or move higher and they will see the margins compress once the investors see margins compressing you will see a run for the exits in those companies. that's something you want to
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avoid and not own the index in that case. >> i should mention the s&p is down half a percent right now. it is not flying after the cpi data thank you for your time today on how to inflation protect your portfolios still ahead as the cop26 climate summit continues in scotland, we are looking at what it will take for u.s. companies to cut emissions and meet president biden's climate goals. spoiler alert, they have a long way to go. we are back in a moment. > iss hexcnge" on cnbc
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comcast business. powering possibilities. welcome back to "the exchange." as markets hit session lows right now, down 182 for the dow. it was the so-called low water market down half a percent. the s&p down six-tenths of a percent. look at the nasdaq most investors in the market have been telling us if bond yields are going up the nasdaq could be under threat. a version of this is kind of playing out in the market today, the nasdaq down 1.25%. let's get a check on rivian as well which opened for trading about 20 minutes ago, the biggest ipo of the year, raising $12 billion. i like to focus on not the $7$ $78 ipo price. we are above the level right now at 112 right now here are the other movers this
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hour open door, the stock is on pace for the fourth straight day of losses and worst week since august this comes after rival zillow announced it is shuttering its home flipping business this year zillow reached a deal to off load about 2,000 homes. it is wreaking havoc in real estate markets across the country. shares are down 36% this month and it seems to be weighing on open door. we will see if they change things tonight check out shares of krispy kreme moving higher after reporting a beat on top line results the ceo taughted the pricing power. there you go, inflation protection they have more flexibility because there's a dozens business maybe baker's dozen and customers are willing to pay up to 50% more for specialty doughnuts. they hiked prices in september they plan to raise them further into year-end. while the shares are down 35% from the all-time high of 21, on the ipo day four months ago and on pace for the tenth week of losses in the past 11, they're adding 5.5% today. still ahead, talking media,
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welcome back, everybody. let's get to the biggest ipo of the year, rivian opening for trade on the nasdaq at the top of the hour, raising nearly $12 billion for the largest haul for an ipo in the u.s. since 2014. it is one of the largest since 1995 in fact it is valued right now around $96 billion. let's bring in mike santoli for thoughts here. mike, i suggested it reminds me a little bit of uber what would you say >> something like that, although i guess you would argue that uber was in a sense the kind of
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pioneer and incumbent in that area whereas rivian comes to the market and is being given a tremendous amount of credit up front for basically eventually being successful as being a huge-scale player in evs, but it has this valuation umbrella in tesla. to me it says the market so craves a multiplicity of bets in this massive opportunity of evs it is willing to just pay up for the next name that seems like it has a shot you know, also if you are using tesla as your easy comp, and there's no reason you really should except they're in the same business, i mean tesla is making a million cars next year, it is still there. if you were concentrated in that one name, you thought it was the only game in town to play as a pure play, you are willing to pay more for rivian. so rivian 10% of tesla's market cap, around $100 billion a few months ago it was a $700 billion market cap of tesla. so 10% was 70. that's where people thought rivian would come out here it is funny math and kind of how
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many to gets are worth a pig or do you want to buy livestock in general, that's often the question >> i guess i am thinking about it more from the -- sort of the way uber has traded since hitting the markets. you know, it basically hasn't budged in two years. >> that's right. >> i don't know if it was exactly $100 billion at the ipo but looking at other $100 billion ipo, which was airbnb, up 20% since that time, coinbase, down 30% it is a rich valuation to come to market. i wonder if you can think of any exemptions from what seems to me to be a rule that when you come to a market that top heavy it is really hard to make all of your -- i don't know how big amazon wasn't, but certainly not $100 billion >> that's a great way to frame it, kelly. i agree with that. look, facebook famously insisted on the $100 billion out of the gate in meiay of 2012 that's when $100 billion was really $100 billion. and the stock was cut in half over the next months it wasn't because it was too
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aggressive on the market, but it shows even if it was a massive win from then to now along the way you had a huge give back even airbnb traded lower in ensuing months as has doordash even though it is now up from its ipo. so i think there's a cost to the public investor, to the secondary market investor when a company basically debuts at this level. it pulls forward a lot of the potential economics and obviously, you know, what there was to be reaped out of this company. >> absolutely. well said. we'll see in this case i mean obviously the ev market is very different right now, maybe much larger potential. mike, we appreciate it we'll let you go for now mike santoli at the nysc let's get to rahel solomon for an update. hi, kelly. good afternoon fireworks at the trial of kyle rittenhouse. after sending the jury out of the room the judge berated the prosecutor for questioning rittenhouse about whether it was appropriate to use deadly force to protect property. earlier the judge said he was likely to prohibit that line of
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questioning. >> hours ago i said i had heard nothing in this trial to change any of my rulings. >> that was -- >> pardon me >> that was before the testimony. >> don't get brazen with me. you knew very well, you know very well that an attorney can't go into these types of areas when the judge has already ruled. >> and tonight on the news with shep smith at 7:00 eastern, the rittenhouse defense team gets a surprise, a witness they expected would support their case admitted he lied about a threat to rittenhouse the night of the protest that's tonight in the last half hour a joint statement from the u.s. and china at the glasgow climate summit the two countries say they're firmly committed to working together and with others to strengthen the paris agreement to cut back on green house gases. the u.s. has been critical of china's leader for not coming to the summit the nuflt u.n. says secretary general antonio gutierrez is concerned about the migrant crisis on the border
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between belarus and poland. nato is slamming belarus, saying that the country's use of migrants to put pressure on poland is inhumane, illegal and unacceptable back to you. >> thank you very much up next, it is all about plus and parks for disney. there's 28% interest in beyond meat does it make it a target for short sell the key metrics to watch and how to position after the bell reports, coming up next in earnings exchange. you have to deal with higher expectations and you have to lower wait times. with ibm, you can do both. your business can unify apps and data across your clouds. so you can address supply chain issues in real time, before they impact your bottom line. predicting and managing operational issues that's why so many businesses work with ibm.
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♪ welcome back, everybody. it is time for another edition of earnings exchange where we will give you the action, the story and the trade on three key reports on deck. today's line-up, disney, beyond meat and sofi. let's kick things off with disney the media juggernaut expected to report earnings of 51 cents a share on nearly $19 billion in revenue. despite strong brands like picks after, star wars and marvel, disney warns disney plus would come in weaker than expected shares down 3% on the year and down 15% from the all-time high in march let's bring in julia boorstin for the story.
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welcome to you both. julia, disney has become almost a punch line, disney plus with this issue about its offerings >> well, look, disney plus had been growing so quickly and bob chapek warned growth in this quarter, the fiscal fourth quarter, would be in the low single digit millions. analysts are anticipating it will be like the addition of 9 million disney plus subs so we have to see how it shakes out. that will be in focus. other areas to watch include the theme park division, how fast that division is rebounding and what the sense is of how much the rebound is going to continue into next year and then also, of course, sports disney has spent so much on sports, are they going to be investing more and what is their plan in terms of espn moving more of the rights on to espn plus, kelly. >> delano, what is the trade here >> i think the trade is to hold. as jewel yu mentioned, the big things investors are looking at is theme parks and experiences
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growth to offset the slowdown in growth in direct to consumer that's what i'm looking at you saw them stating they're seeing stronger demand, so it might be an area where investors can hold their hat on. if the numbers start to increase as we are getting away from the covid, i think that's the biggest play here. you want to hold and see if the times of 2019 can come back into the stock. >> all right we will leave it there and move along. julia, we appreciate it and we'll see what they say on subs this evening next up is beyond meat where analysts are calling for a loss of 39 cents a share on $139 million in sales for q3. last month it warned of challenges including headwinds from the delta variant, a decrease in retail orders lasted longer than expected and water issues at a pennsylvania plant the shares are down 22% this year kate rogers with more on the story. is it earnings, kate what is the most important metric for them? >> the ref new number will be the company's original range, so we will be listening for how
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delta impacted the quarter more broadly in both retail sales in food stores and in restaurants, two lines of business. beyond said there had been decreased orders for longer than anticipated, kelly, and incremental orders didn't materialize as one of the large customers changed distributors labor played a factor in revenue guidance so it is something to watch. beyond had big name partnerships to keep an eye on. it also has partnerships with young brands and pepsi, so updates on that. one more thing, chicken, how the chicken expansion is going in stores and its tenders which are revamped and selling in food stores i would love to hear updates on all of those >> the shares are down another 2% delano, you said when it fell below 100 it was a key level what would you be doing with the stock here >> i'm not in the stock, but i think investors that are in, you know, you have to look at long-term perspective here it is a new industry and i think one of the areas on the upside for the stock is you are seeing stronger demand internationally
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and it could be a place for the company to hold its hat on as kate mentioned there's a great things when you are looking at the trial with mcdonald's there's a lot of plant-based snacks which has been successful the big thing to focus on is how they're investing the money. 7% is going into r & d and i think that will be the biggest thing to commercialize their plant-based foods to the broader market i'm still out of the stock but i think it could be a hold >> kate, i wonder how much of the stock will be fundamentals driven on tonight's numbers and the headlines they're being added to someone's menu, taken off of t, is that the bigger driver >> i think it is anyone's guess, kelly. it certainly moves on both of those things, right. the fundamentals, of course, matter but the upcoming partnerships, as mentioned the mcdonald's one is a huge deal. but it is a company hit on both ends of the pandemic pantry loading boosted business and then it went away but th restaurant business didn't come back as quickly as i thought a lot of people were anticipating, right, because of delta. so really key on what they say
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on both of those metrics tonight. >> kate, we appreciate it. kate rogers. finally, sofi technologies reporting third quarter results today. only the second report since its spac debut in june the street is expecting another loss, 14 cents a share on $251 million in sales they've seen a 30% rally in their shares over the past month, but they still only gained about 5% since going public people say it is anticipation of its potential bank charter approval investors will be watching member numbers, average revenue per user kate rooney, a lot of different things going on here >> a lot of different metrics. members is one big thing, how many people are using the platform they've ramped up advertising so the question is will that pay off. then products per user are people signing up for more than just one or two things, like a loan, are they using the debit card, are they using things like stock trading. galileo is another area to watch, a billion dollar deal in 2020 people are looking at the growth there. it is a banking infrastructure company. so that's another line item to watch. and then the bank charter is
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big. they applied for national bank charter. it could improve the economics on the lending side, so any color on the qualitative side, what can we expect will sofi become an fdic insured bank >> on that note, delano, there was a great speech in the past couple of weeks where he outlines his concerns, but how much bank-like activity moved to nonbanks effectively so you have to look to see if they reel it in and crackdown a little bit what would you do with the stock? >> it could be a near-term issue. as mentioned the stock and the company is widening its service. you are seeing 214% growth in products, so it is a big thing to look at uses to have sofi invest, sofi money, so people are coming to do more than what was originally lending and refining, a big part of the business. that's a big thing for the stock. i think generally there's a lot of momentum in the business. you are looking at a company lending out, getting to the cryptocurrency side of things, so more in the ecosystem they
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can use for their users. they're over 2.5 million users, i think it lends to a lot of things we could look at the national bank charter, and that might be an area where investors has seen more momentum by the business as well >> am i right you are saying they're still trading 30 times revenue? i think it is an elevated number i think it is an area to watch if they end up able to offer ipos directly, you know, access to ipos directly to users of the platform it feels like an obvious area that fintech could offer a service a lot of the public has been missing out >> 100%. that's why i've been on the stock. i'm looking for it coming back into my area if there is more traction around that as we realize a lot of platforms are going after younger retail investors, it might be an area where they can see growth as far as diversification of their business, kelly. >> all right delano, thanks always good to have you with us,
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dela dela delano saporo. bob chapek joining us at 5:30 eastern we'll explain what it means for president biden's climate goals right after this any other business, one day, you're gonna take a hit you didn't see coming. do you stay down? or do you get up? [announcer] and this fight is a long way from over, leonard is coming back. ♪♪ ♪♪
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climate change is top of mind for world leaders and esg investors. less than a fifth of 500 companies have a missions target in place that actually consulted with experts to determine their feasibility. joining me now with details, pippa. >> a lot of targets and initiatives announced at cop26, but the reality is the majority of companies remain sharply misaligned with net zero goals we have seen an uptick in climate targets within the s&p 500. 66% of companies now have some
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sort of emissions target according to data from refinitiv. that is up from 42% in 2015, and 36% ten years ago. the utilities and staples sectors are leading the way with more than 90% of companies in each group establishing a target financials and health care are at the bottom with about 50% all told, emissions from s&p companies are down 12% over the last decade based on data that's been reported, but that gets to one of the issues. at the moment climate data is based on what companies choose to disclose. there's no regulation around what has to be reported, which means a lack of uniformity and accountability across companies and industries additionally, just 16% of s&p 500 companies that have a target have a pledge verified by the science-based targets initiative this makes sure companies aren't relying on offsets to cut emissions and requires both short and long-term goals among
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other things sbti founder telling me a target is a first step. a company needs a transition plan in place, and currently there's no way for targets to be enforced although the sec is examining it in the meantime shareholders are one way to hold companies accountable. >> i wonder if -- especially in europe where you have the hague literally telling shell they have to cut emissions by 45% maybe there you could see it more in force, but even here as people wisen up to this i have to imagine there will be higher and higher standards >> exactly a lot of people are looking into this right now, but it is really difficult. you know, is it just scope one, scope two? what about scope three and scope three is really hard with global supply chains that are complex. it is not only just reporting this but how we're going to report it and what makes sense for companies across all of these different industries >> again just so people know, scope three is kind of the indirect emissions your company might generate, not necessarily purely from your own activities
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but everything involved in creating those activities. at a time when there's more focus on that than ever, are we going to see a raft of accounting standard verified, you know what i'm saying almost like you need an entire regulatory set who can agree on what the standards should be >> absolutely. for scope three, let's say you a retailer with operations in china, it is that factory relying on coal and shipping it across the world and transporting it to the end point. these are incredibly complex, and you have to have a lot of parties that are on board with how we're going to report them, and companies reporting the same types of data. that's what is so hard because companies don't want to do that. it is a higher cost. on the flip side, if it is imposed by regulators then they have to comply >> rye >> so there is some advantage to self-reporting all of this information. >> and the retail industry is a great example because most assume it is largely an oil and gas industry issue, but it is not. it will pull in people who previously had not had to put a cost to those exposures and now do pippa stevens, we appreciate it so much. it is back at record highs
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but trading volumes are opng the evolution coming up.
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welcome back to "the exchange." we know the holiday travel
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season could be a tough one. it doesn't look like it is going to be better this year the american airlines pilots union rejected as much as double pay for working trips around the holidays they are trying to avoid more mass cancellations they say they want more permanent changes to scheduling. some airlines have struggled to meet rising demand as they trimmed staff during the pandemic southwest and spirit faced similar issues as united that cost them between 50 and $75 million. shares of coinbase are sliding today on disappointing results. revenue and user numbers also came in below expectations when will the coinbase traders return check out shares of riskian. $6 below where they hit the restet riskian clinging onto the triple
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digit mark we are back in a moment. rl. carl, say hi to nina, our schwab financial consultant. hm... i know how difficult these calls can be. not with schwab. nina made it easier to set up our financial plan. we can check in on it anytime. it changes when our goals change. planning can't be that easy. actually, it can be, carl. look forward to planning with schwab. schwab! ♪♪ what the world needs now...
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city welcome back, everybody riskian shares just broke below $100 they opened at 106.75. you can see there the downward momentum more on that in just a moment. still well above the $78 ipo price. coinbase abued at over 1-billion. its shares down 7% after they missed estimates it is not all bad news, coinbase, bitcoin and ethereum all up 50% since the 1st a lot of that was the inflation data as it continues to come in hotter than expected and big names like jack dorsey and paul tudor jones tout crypto as a hedge. joining me, owen lao of
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oppenheimer. is crypto as an asset class bad news for trait trading platforms? >> thank you for having me the platform is not that bad if you look at the revenue itself, even though it missed analysts estimates, it's still up 300% overrear for me, as far as the volatility of the crypto, it's here the platform can still do quite well. >> how important are nfts? do you think they will move a significant amount of that activity over. >> from what i have heard it is complex and convoluted to buy an nft right now? >> from a coinbase perspective, i think it will be a good add to coinbase take openen c, they have 360,000 monthly users. coinbase hasn't launched nft yet. but based on the sign-up they
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have, they have 275 million signed up so far which is like 10x the current user of open c based on our estimates, if these pace continues it can add about 7% earnings to coinbase's bottom line in 2023 so it can be material. >> do you get any sense from the company whether they have calm things down with the s.e.c.? >> i think one key point -- i think it is also somehow underreported. coinbase's ceo mentioned that he had a meeting with the s.e.c. chair gary gensler last week after this twitter storm, coinbase published the asset policy proposal. for me it is hard to predict the reg to outcome but this is a signal that the
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relationship has been improving. at the end of the day i see the path to get there. >> with the shares down 7% today. with the p/e high, but not insane, what do you think the valuation should be? >> i look at these on a revenue basis not on the p/e bases they trade at times revenue, trading a of the a discount compared the other fintech companies at 14 or 15 times revenue. i believe coinbase is still an a good investment for invest snoors what are the favorite names that you currently have in your coverage space? >> our favorite names are s&p global, nasdaq msci, and also coyne coinbase right now, i think it is a good buy. >> any comment on tnasdaq open f this mark? >> i think the mark has been volatile because of the inflation, because of supply chain constraints.
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but i am optimistic on the long term investment on nasdaq, and even s&p >> owen, we will leave it there. thank you for your time today. we appreciate night thank you. >> that does it for "the exchange," every a very busy hour about to get busier, with "power lunch. huk huk. all right, thanks, kelly, we will see you in just a moment here welcome to "power lunch," i'm dominic chu in for tyler mathisen this afternoon. here's what's ahead on this show 30-year highs. we are witnessing the biggest inflation surge in three decades. it could be a game changer for your investments we will have your game plan coming up. fully charged. riskian shares are soaring in the biggest ipo of the year. we will look at its high octane valuation and whether it pose as real threat to traditional transportation. and, taking a swing. callaway golf has a birdie's eye view, if you will, of the goble supply chain and inflation as


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