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tv   Power Lunch  CNBC  November 17, 2021 2:00pm-3:00pm EST

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fast-food and qsr names are grab and go two different offerings. consumers tend to be gravitating towards the quicker experiences and better prices. >> just as we had ventured out to this one italian spot in town thinking it was so closed and we couldn't wait to come here all the time it closed a sign of the times. >> yeah. >> kate rogers on the restaurant beat today thats does it to have "the exchange," everybody but stay right there "power lunch" begins right now >> somebody remind me that i have to take kelly out for a fancy applebies type night anyway welcome to "power lunch," everyone soss ev stand for excessive valuations we will talk to one person who says yes we will also hear from the ceos of a company cashing in on the big ev craze, sowno group, a solar ev maker, going public today. and get this -- soaring 90%.
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we will also hear from the ceo of vir biotechnology making a billion dollar deal with the u.s. government for its antibody drug. is this another major step toward life as we know it -- back towards it? nvidia has been one of the best stocks in the market for years. it doubled in the past six months and is now the seventh biggest company in the s&p 500 it's reporting results after the bell expectations understandably are high can it measure up? we will hit on that and a lot more. >> dom, thank you. hi, everybody. applebies was the spot in high school do you know what i am saying here's the markets today the dow down 163 points or half a percent. its underperformer the s&p is only down five points right now and the nasdaq down 15 this could help explain things visa is taking a big hit after amazon said it is going to stop accepting visa in the uk because of high he confuses. other financials also lower
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today, gold medalman, jp morgan am exweighing on the dow if goldman's case a drop of 2.4% apple microsoft and force are up apple especially up more than 2% today. >> kelly, electric vehicle stocks have been absolutely on fire on a huge tear recently as investors try to get in on that next big thing what's the next tesla going to be but have the valuations begun to get stretched at this point? general motors and ford have had a good year, no doubt. but neois up almost big in terms of market cap as well. $64 billion. louis sid bigger than ford, by the way. and close to general motors at this point rivian, newly minted, bigger than all of them and it just went public last week and of course they are all trying to catch tesla with its $1.1 trillion valuation at this point. and taking a look at the stock prices this year, lucid is up
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400% tesla, practically the laggard, is up only 50% at this point, which brings us back to the original question. does ev now stand for excessive valuations joining us, a car columnist for the "wall street journal's" heard on the street. when you talk about a company that just goes public at a valuation that's greater than some of the biggest traditional automakers that we know in this world, what exactly does that ring in terms of your minds about what is happening in the entire auto industry >> that's a great question and thanks for havingmy on the show i think the key thing here with rivian is the most extreme example this trend, having, as you said, only gone public last wednesday, almost exactly a week today its price of shares has doubled since. its market share has doubled
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it says for one thing that people believe serious me in the challenge to detroit because that market value could only make sense if rivian takes quite a lot of market share from gm and ford. the interesting thing is we are not seeing the valuations of gm and ford come back so there is obviously a bit of a cognitive dissonance here. i mean i think this is best illustrated by the fact that two years ago the total valuation of the top ten automakers in the world, excluding china -- so the top ten global automakers was $680 billion and now it's over $2 trillion. it has tripled, the market value of the top ten has tripled and it's hard to see that the earnings potential of the very mature car industry has tripled. it is possible evs might be more profitable in future
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they are not very profitable for most people right now. you can see how there is a bit more, there is the story about software, self driving software that might add margin to selling a car which is a low margin business but to say the market share has tripled, that's a real stretch. >> the idea that we often compare many of these auto stocks, these ev stocks to other auto stocks, or to internet companies or to battery technology companies, what exactly then becomes the fair way to look at the comp, or the comparable for what these ev companies are going to be? >> well, i think -- i mean, that's the really difficult question and some investors, the bears prefer to look at tesla and say it's worth four times toyota
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that's crazy and the bulls say, no, if you look at its targeted 50% growth per year, that's at the upper end of tech company growth profiles, and therefore it's -- you know, it all sort of fits. i mean, i think ultimately tesla's valuation makes sense only if you think of its target of making 20 million vehicles a year in 2030, custom is something that elon musk said last year, and at pretty good margins. if you kind of think oh, 20 million vehicles at a 15% margin, which is what it made in the third quarter, roughly, operating margin then the $1.1 trillion valuation starts to make a bit of sense. but i think that the problem is the investors are already rushing ahead and forecasting a
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scenario which is -- i mean, it's possible, but it's subject to huge uncertainties. and obviously, the intense rivalry with gm and ford and all the rest of them. >> sure. >> and toyota. and so i think -- yeah, there is just a tremendous amount of uncertain around, which makes the tripling of valuation of the big automakers even more -- >> right. >> -- sort of hard to rationalize. >> sure. the price transparency discussion right now is only getting started i'm sure stephen willmott, thank you for joining us today we appreciate it. >> thank you. make sure to sign up for jim cramer's investing club. jim will be sending daily emails writing for this newsletter and appearing in videos on line all to give you his unique insights into the markets, including what is happening with these big moves in electric vehicles, the ev stocks. kelly, there are so many more questions these days. >> let's stick with the theme.
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sowno motors ticker sev going public and jumping 87% right now. the company is betting it can use solar energy to add range to vehicles they they are hoping to keep prices below $30,000 per car. they are also hoping to adapt trucks bus trains and even boats. is there other alternative fuel player joining us from germany in a first on cnbc interview, lauren haughn and jordan christians -- waving there, crow ceos of sowno motors >> thanks for having us we are thrilled today. >> you look it tell us how this differs from hydrogen fuel cells. >> the limiting factor for ev is range. we are trying to integrate solar
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into the outer body of the car that solves the major issue we have that's pretty interesting because for our 16,000 -- and future customers that means in most of their cases they don't have to recharge their electric vehicle again. >> jonas, this isn't necessarily a different kind of ev it is basically an addition. could there be a future in which all battery pored evst have panels on them >> exactly that's what we envision. we envision a world wherever vehicle out there has solar cells integrated we proved that with our first vehicle, we think that's the future and there is more to come. what we see is we plan to license the technology for other vehicles, for boats, for trucks, for trains, basically, every moving object out there can be integrated with our patented solar technology. >> lauren, it is dom here.
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one of the big issues when i think solar is what happens if it is a cloudy day what happens is it is at night that puts the onus on battery technology what exactly is your model with regard to taking that solar energy what types of batteries are you using? who is providing them? how exactly do you expect that battery technology to advance given what you are trying to do with solar energy? >> look, we have a 54 kilowatt hour battery integrated. you can of course take this car for a ride also at night or if it's raining but what we use is an lfp battery from buid. and with that, we have a very sophisticated technology in there. >> jonah, just to build on that, what do you expect in terms of your ability to actually stay under a $30,000 price point? even looking at tesla, the model 3 has gone from $39,000 starting
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to about $45,000 >> what we have is right now we plan to produce the car in 2023. so first half of 2023, we will start the production and the deliveries and right now we have a very strong partnership network and we build on top of that so we are very confident that we can also hold the price. >> lauren, what do you make of the production difficulties, whether it is supply chain concerns, rising prices? what are your plans for factories? you guys i'm sure have followed quite closely all the twists and turns that tesla's journey has taken. >> very good question, kelly we have this asset like business model. we do if i have five things which make us different. first, we don't own the factory. we do contract manufacturing in sweden, in the form form of -- second, we don't use a press shop we have an aluminum space -- --
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we have no paint shop. it is assault solar, wrapped into solar fi fourth we are all on line. and lastly, the solar tech following which makes this car efficient and unique. >> one of the interesting things about raising capital in the public markets is the amount of it you can do. what exactly is the number one on your shopping list, so to speak, for how you are going to deploy this new access to shareholder capital? where does it go, first and foremost, to help you attain all of these achievements that you are laying out >> yeah, sure. so the next milestone we have in front of us is the next generation of perot of types in mid 2022 this brings us a step closer to the start of production then the year after. >> that's lauren hands and jonah krechbs over at sowno.
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an amazing story we look forward to your updates coming in the future a big story for the future coming up, we will talk with the ceo of vir biotechnologies about the multibillion dollar deal with the u.s. government and what it means in the fight against coronavirus. and will the results live up to all the hype? >> look at the highs for the s&p 500. netflix, microsoft, home depot, lowe's, among those companies making record highs in trading today. check them out we'll be right back.
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welcome back vir biotechnology and glaxo smith klein announcing today they will sell $1 billion worth of their covid-19 antibody drug to the u.s. government vir stock is down nearly 40% in two months as merck and pfizer get ready to come out with their own anti-viral drugs to fight covid-19 so joining us now is george, the ceo of vir biotechnology along with our own meg tirrell meg, over to you. >> dom, thank. george, it is nice to see you. thank you for joining us today on news this billion dollars worth of contracts with the u.s. government dom mentioned the stock move over the last two months i think what a lot of investors are wondering about the antibody drugs now is as the anti-viral pills are working their way through the fda what role do
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your drugs play, the antibody drugs, when we have easier to take pills for covid >> that's a great question i think the important thing to remember is we had good data last week on an intramusk collar application. we did a clinical trial comparing a im single inject versus the iv administration of the antibodies patients will have a choice between getting a single treatment injection of an antibody or taking pills for some days. so the pills are a great addition, great for the world. i think pfizer did a wonderful thing allowing manufacturers to supply them to the developing world. but the antibodies are safe, they are highly effective. they are a one and done treatment. and they are not going away. i think they have an important role to play they are very effective. and they can treat patient
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populations that aren't addressable by the small molecules, professional lacksis and immunocompromised patients and other populations as well. the antibodies will going to have an important role to play in the control this disease pour the foreseeable future >> tell us what kind of demand you have been seeing over the past few months for your medicine, both here in the united states, and in europe, as we have been seeing these case numbers going up so significantly. >> look, we have had great demand for the antibody. billion dollar sales to the u.s. we have sold -- so far, we have hard orders for 750,000 doses, some -- that includes the u.s., but certainly not exclusive to the u.s. we have been selling in many other countries. that have bought our product and have used it are coming back to order more i think that speaks to the quite
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remarkable real-world efficacy that countries are seeing when they follow patients who have been treated with it it is a great antibody it covers all the variants and i think it is -- an important consideration is that it is not specific for covid it is certainly effective against covid, also against sars, also against many other coronaviruses. not only do we have an antibody that stands up well the all the variants we are seeing from covid but potentially can help in future coronavirus pandemics as well. >> right the ability to stand up against all those variants is obviously so important and one of the really powerful things about your drug. tell us about the kinds of surveillance that you are doing. what kinds of risks you see out there. is deatha just so contagious and so successful at spreading that it doesn't have any competitors in terms of variants that could come along what do you see in potential
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risks of a new variant on the horizon? >> i think what we have learned from this pandemic is we should never be complacent and say the currently circulating variant is the one we are going to see for a while. delta is here. it is more infectious than the strains it supplanted. it could be that future variants may be variants of the delta rather than come out of the blue but it is important to note covid can transfer from humans and animals. as long as it can go into animals, mutate and come back into humans we are never going to be out of the woods it is really important to have treatments, antibody, whatever, that can stand up to not only the current variants, but likely to variants that arise in the future we feel very good about our product. it certainly is standing up well to all the currently circulating
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variants every time there is a new one sequenced -- there are millions of sequences now, we test. so we have tested all the circulating variants of concern, variants of interest, we have seen activity against all of those as well as against other coronaviruses. that's a really important point and we think we have a real leg up there. >> all right george, we appreciate you coming on and joining us after this big billion dollar deal today for our drug we are looking forward to seeing what comes next in the future for vir. >> thank you, meg. >> thanks george and meg for the big news on vir biotechnology and glaxo smith klein. let's look at shares of visa and mastercard again lower on the day mastercard took a jump higher on reports that amazon is no longer
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going to work with visa in the uk it has affected the dow. visa is now down 7%. that sent the dow down more than 200 points, they are down 224 right now. still ahead, a metaverse match. nvidia seems to be on the forefront of the shift to the metaverse with its chips houring vr but how rostng is the competition from amd we are back in two what's strong with me? what's strong with me?
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welcome back i'm rahel solomon. here's your cnbc news update at this hour. one of the men accused of murdersing ahmaud arbery is on the stand. travis mcmichael garnered the shotgun that killed arbery he started his testimony with questions about his training with guns and also talked about his concern about crime in the neighborhood despite the increased presence of police. >> it was concerning that nothing was done, that -- you know, they had to continue to be in the neighborhood. i was glad to see them in the neighborhood but concerning that you have to have that constant
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presence. two hours after beginning their second day of deliberations the jury in the trial of kill rittenhouse asked to again see video evidence shown in court the defense doesn't want them to see drone video showing rittenhouse pointing his gun at protesters before the shootings. the prosecution says the jury should be able to watch any video as many times as i once. 50 years after the assassination of al come x two of the three men convicted of killing him are set to be cleared. they will go to court to vacate the convictions. an investigation prompted by a netflix documentary found evidence supporting their claims of innocence you are now up to date. it is now time for today's power movers first is up target those shares are sinking after their earnings they topped estimates but investors were upset as the company holds off on raising
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prices target is down almost 5% snoon ainvestor roku, sinking 1 % after a downgrade saying estimates are too high roku is down 11.5% finally shares of cassava science is down 22%. >> a huge move for cassav a right now. aide fuelling the fight. in response the surging gasoline prices president biden telling the ftc to investigate big oil companies for quote, unquote, illegal practices. plus, despite inflation and other maskt risks should investors remain confident in the consumer we will discuss when "power lunch" returns after this.
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90 minutes left in the trading derek everybody. we want to get you caught up on all the markets, stocks, bonds, kmom tees and a consumer that won't back down. let's begin with the markets bob pisani is at the nyse. another leg down. >> visa and goldman are 80% of
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the decline of the 228 points we are seeing automotive stocks weekday here, they have been strong recently but morgan stanley had negative thing to say about the franchise auto saler as tells la and other vehicle makers take market share. retailers also weak. target's gross margins came in weaker than expected operating margins matter the good news is that we see earnings strong, we see revenue growth particularly strong, we see comp store stales growth strong, across the board we'll see, we got macy's and kohl's visa keeps dropping. one of the reasons the dow is underperforming. today amazon comes out and says shoppers in the united kingdom won't be able to use visa credit cards come mid january citing high costs. this is the lowest level since february for visa. it's about 20% off of the highs it hit way back in july.
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>> incredible now down 9% year to date. bob, thank you very much. let's get over to the bond market rick santelli is tracking that action the 20 year auction in the past hour didn't go so well >> no, it didn't but there were market forces some asterisks let's go to the beginning. the 5th of november for the 20 year, what i want you to pay attention to is how yields shot up they are up 20 basis points from 18 a to basically 205. that figures in because today was a day of rest. yields falling down on the intraday and that impacted the auction. the more yields fell the more the bids in the market became separated from where the market was trade asking caused it to trail and price differently than the one issue market that made it a messy auction one of the reasons the long end is taking a breather today is because last week on the 10th we
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had a 0-year bond auction that was horrible you can see on this chart what happened finally, that impacted the dollar index the some. the strong yields have been pushing it up towards fresh 16 month high closes over the last days also taking a bit of a rest today. remember, it's not far off from unchanged. the dollar hanging on to the bulk of its recent gains. >> certainly is. thank you, rick. also watching oil which is closing as the biden administration places pressure on the industry. >> while the wous teas next move remains in focus prices are tumbling thanks to growing calls that the market will shift to one of oversupply. both the international energy agency and opec warning that barrels are returning to the market brent crude is down 2.7% at 80.15. wti is at $78.14 for a loss of
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three.75%. the contract dipped to its lowest level in six weeks and also fell below it is 50-day moving average for the first time since the middle of september. the declines come each after a surprise draw in u.s. inventory. stockpiles fell by 2.1 million barrels last week while the street was expecting a build of 1.4 billion barrels. refinery uptake could slow it is only wednesday but oil is now on track for a fourth straight week of losses. >> working in the administration's favor. our next guest says inspite of supply chain bottle necks we are in for a super cycle for the american consumer. here to plain is michael vogel, cio of cap trust which has $60 million in assets under management consumer super cycles, have we had one of those >> that may be overstating it a touch, kelly i think the issue is really that the american balance sheet is
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amazing and incredibly strong. the amount of savings relative to gdp is at an all-time high. we are at about five times consumers are using their homes and their use houses as the atm. we have seen that before in the past it's very powerful cycle money still remains free you know, really interesting data point yesterday from home depot. their big-ticket items, those at $1,000 or more, were up 18%. that was on top of a comp from last year of 23% you start compounding that, you are starting to see the strength of the consumer in the big-ticket items everybody is redoing their kitchens, their living rooms, making the house a better place to work from home for example. the point is they have the income and the balance sheet to support it the question is -- i know the stocks have moved quite a bit. the question is, you know, how much -- how long do we have there? what's the duration of that? whether it is home depot or
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lowe's or williams sonoma. you name night michael -- it'sdom. if you look at that spectrum when we talk about strength of the consumer it can be all parts of the spectrum or specific ones we could be talking bargain stores like family dollar or dollar free, mid scale retailers like kohl's or luxury like louis vuitton. which companies are the ones that stand to benefit the most if those consumer trends you are talking about are the ones that actually play out? >> i think you stick with the mainstream stuff obviously high end luxury items have done really well. were a portfolio goes from $30 million to $35 million isn't going to matter much in the marginal consumer spending i think the great unwashed middle is the place to play it i think we are in the middle of this entire working from home reorientation as well. i know folks are thinking seriously about if i am going to be staying home, if i am going
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to be working, i am i am going to be doing my screen time at home i want to make sure that i have it set up the right way i need to. i still think that's under way that's furniture, appliances wethink the automobile cycle may be pretty strong and more powerful than we thought originally again, we understand prices are up i wouldn't be out there buying today. we have got -- you see some of the -- just a minute ago you talked about the retail prices softeing a little bit today. very clearly sort of overbought positions. but as we think about what the next six months could bring it could be that the market is overestimating some of the strength here. >> your best ideas, lowe's, williams sonoma, ford, any others you want to add to this list when people say i want a name that's going object em emblematic of consumer strength here >> there is lots of little names. some of the furniture makers have come off quite a bit. ethan allen or somebody like that you know, even camping world, right, has come off.
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it's an interesting name for that kind of a -- to sort of be in that segment. i think -- the names aren't as important, frankly, as the issue. i think the real issue right now -- one of the things we are discussing in our investment committee is this idea that are couplers -- we know we have a backlog. we know we have a slow down in getting your furniture and refrigerator we also know we have inflation people are overestimating inflation frankly by the way folks think inflation is coming. they say look we are going to order the fridge now we know it is going to take us six months to get it but two, it will be probably be more expensive in six months any way. that's the behavior the federal reserve is worried about there is no prove in this but i think it is a reasonable sub sigs to say, at least ask the question, are consumers beginning to get ahead of the inflation curve which of course
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brings for lodgistical bottle necks and more inflation we have been on the cyclical inflation side of the equation for quite a while. the question becoming if federal reserve and fiscal policy makers in washington put too much foul on this fire we could have a longer bout of inflation than we expect. >> do you feel also that the fed and policy makers are putting too much fuel on this fire is fed approximately see due for a ching the take some of that money out of the system? >> i don't sit on the federal reserve board. i wouldn't be opposed to it personally they look at, you know, frankly a lot more stuff than we do. but i think we are in a period where people have to be -- particularly the policy makers have to be exceptionally careful. if for example, i think the jay powell versus lael brainard decision is an important one if investors and consumers begin
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the see the federal reserve as becoming more dovish than they are now, which i think it is hard to argue they are not they are pretty dovish already, if we are going to push further into the dovish territory i think you might get a reaction in the bond market i think we are in the territory where damage could be done and it could take us a long time to get out of it if we are seeing consumer behavior that's being impacted by potential inflation. >> the key to the american economy, the american consumer michael vogel thank you. >> thanks dom. coming up on the show. black friday is just around the corner our trading nation team says some of the non-retailers could pull in some serious gains this holiday. those names are coming up next i'll shoot you an estimate as soon as i get back to the office. hey, i can help you do that right now. high thryv! thryv? yep. i'm the all-in-one management software built for small business. high thryv!
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welcome back to "power lunch. i'm seema mody one of the year's biggest holiday shopping seasons is right around the corner. how do you trade beyond the obvious plays.
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it is expected to be another record breaking holiday season let's talk black friday beyond retail with today's trading nation team. ava, it isnot just retailers that will profit, right? >> that is true. what we are seeing is that because its expected to be a very strong holiday season and we have limited availability, consumers have an incentive to buy as much as they can now. but what do they do if they don't have a credit card like two thirds of the millennials or if they don't have sufficient cash that's where buy now pay later comes. we have two stocks in this area that we like affirm and square. we like affirm because of its exclusive relationship with amazon which we believe is going to catapult its growth in fact, amazon announced today they are going to end their relationship with visa in the uk and possibly in the u.s., too. that's big news. let's also remember that amazon
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has warned in affirm which suggests they have incentive to do so. it will help them feign market share from the offline market as well >> yes. >> the second -- >> i hear you there, affirm and square winning trades in recent weeks. bill, you have a chart for us. what are you watching? >> everybody is talking about inflagsz i think there is another way to look at it out there the fact that retail sales yesterday was a hot number better than everybody expected but this is a value based number it doesn't mean people are buying more. they are just spending more. i think this is a sign that the consumer could be wearing out. now this isn't the time to be chasing retail names i hear retail names in the news. we own lulu, kohl's, target, we have exposure there, but i wouldn't be'd aing exposure at
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these levels look at the relative strength of the xly, the consumer discretionary etf against the spy. really the time to be buying retail stocks was in through the august weakness. it has led the s&p higher. now it hags outperformed the last four or five weeks and hit a peak again i think it is up near a lot of resistance i don't see the retail space, consumer discretionary outperforming the s&p 500 the next few weeks or months. >> got it. good perspective for more trading nation head to our website or follow us on twitter. nvidia is lower ahead of results after the bell it has more than doubled this year what could move shares even higher why analysts are looking past reality and into the metaverse stay with us. now the latest from trading nation.cnbc.com and a word from our sponsor.
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it is quite possibly the stock story of the year. nvidia shares soaring 1340% this year, year a move that has propelled nvidia to be the seventh largest company in the market company in the entire s&p 500 but with a forward price to earnings ratio near 70, and a 35% run-up in just the last month. has this stock now gotten ahead of itself into its quarterly earnings report? joining me now is bernstein's. $230 price target. stacey, always great to get your thoughts on this industry group. nvidia, what are you watching for after the closing bell today? >> it's going to be a really interesting evening tonight. i fully expect the numbers to be great. i'll be honest, i don't know
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what the stock's going to do it's had a massive month and a massive year i almost feel like you could hand me the endings report and i'm not sure i could tell you which way the stock's going to go they've had some monster quarters for the last year i fully expect that to happen. i do think going forward, you know, you mentioned the metaverse in the prior segment the metaverse, and frankly the broader software strategy that they have, i think, is becoming part of the narrative on the stock. i think at these levels, if you want to see things move higher, you probably need to start underwriting some of that narrative. but to their credit they're giving you a lot of reasons that you could conceivably underwrite we'll see what it does tonight but at a minimum i do expect good numbers, good results i do expect numbers overall to be moving up from here >> what are you going to do with your price target?
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your outperform has them at 230. >> don't get too hung up on that i always say on the sell side, the worst thing to happen is have a call blow up. the second worst thing to happen is have a call work. it's just moved quite rapidly. so, i mean, let's see what they say tonight, and we can make adjustments if and where needed. >> if you're taking a look at your coverage universe, this thing has blown through a target price. you still have an outperform rating is this a time where an analyst such as yourself would say, hey, maybe it's time to look at some other opportunities. are there places elsewhere in semis that look more attractive given a run-up like that in nvidia >> so let's talk about nvidia, and then let's talk about other opportunities. nvidia is absolutely expensive although we can have an argument about what those earnings actually should be when i launched on it four years ago it was -- i don't even
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remember, it'd be like 50 bucks on today's basis and as it turns out it was actually incredibly cheap. but valuation all by itself was never a reason to sell something. you need a catalyst one way or the other. and i don't actually expect to hear anything that makes the narrative on nvidia weaker tonight. if anything, i think the narrative probably gets stronger it'll always be volatile around these levels of the but valuation all by itself, especially if your horizon is longer, is usually not a reason to sell without a catalyst >> stacey -- >> there are other things in the space. there's a broad debate in semiconductors this whole kind of peak cycle versus stronger for longer kind of debate. i am a little more broadly on the peak cycle i actually like broad com is sort of more of a margin of safety, more control over their semi business. software business with support massive amounts of cash generation and cash return it's actually very inexpensive cheapest thing on my coverage
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except for intel and qualcomm yesterday killed it numbers i think are looking materially higher. they took apple out of the long-term. and if you're looking for metaverse plays, why isn't qualcomm a metaverse almost every device that's out there would use a device to access with a qualcomm chip. and qualcomm is not trading at 70 times earnings. >> if i could put it this way, you're more bearish on the future of semis that others because you don't believe in the permanently higher plateau thing, per se. would you buy it to over 300 >> be careful about bearish. [ laughter ] i think the idea people talk about having a trillion-dollar semi suktor market within ten years. i think it's entirely plausible. that doesn't mean that we don't overshoot. semis are sickical, and you overshoot in both directions i know we're hearing lots of
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talk about shortages and they're absolutely going on. i think there's also, however, evidence of overshipment and inventory building and this is typically how these near to medium-term cycles tend to build long term i'm quite bullish in the space. >> stacey, as always, thank you so much for joining us today still ahead, the white house feeling pressure from rising gasoline prices. so president biden is taking aim ate' oil wh hs up to, next. me? what's strong with me? what's strong with me? what's strong with me? me? with me!
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president biden today asking the ftc to investigate possible anti-consumer behavior by oil and gas companies. let's go to kayla tausche in washington for more. kayla? >> reporter: this request from the president to the ftc to investigate possible illegal conduct by energy companies comes as energy prices remain high in. a letter today, president biden writes, that in the last month, the price of unfinished gasoline is down more than 5% while gas prices at the pump are up 3% in that same period this unexplained large gap, the president calls out, he slams the industry for outsized profits and returns to shareholders even as consumer costs are rising but there is a lot of components that go into gasoline prices over the last ten years, crude oil comprised about half of the retail gasoline price. the rest came from refining, marketing and distribution costs. plus, federal, state, and local
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taxes. president biden has been under immense political pressure to take action to stem soaring prices, especially ahead of the holiday travel season. a white house official says this doesn't preclude other future actions from being taken but certainly the president is trying to show that he's focused on this and he's trying to do what he can in the meantime. >> it's interesting, kayla, because we were looking at these statistics about the last time oil prices were this high. gasoline prices were not that high back then and a lot of people -- i don't think kayla can hear me. >> i can hear you. >> california, according to the tax foundation, california has around a 67% gallon tax on fuel. so a lot of the different -- >> new jersey raised ours this year >> to 51 cents i'm seeing according to the tax foundation. so if it's the taxes that are the marginal difference -- or i shouldn't say that - >> they're the structural difference >> exactly is it really the fuel demand or
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supply constraints that are to blame? >> the hope is they've already fallen for three or four weeks most people think that maybe gets you five bucks a barrel, a couple cents a gallon. they're going to explore everything >> gasoline prices are hopefully going to fall. >> buy your ev, dom. thanks for watching prop"power lunch. welcome to the "closing bell," everyone. major averages pulling back after the s&p 500 came up just shy of a record close yesterday. the dow and the russell seeing the most pressure. >> and i'm leslie picker in for sara eisen let's look at what's driving the action today retail earnings remain in focus with strong results today from lowe's, target, and tjx. though target pulling back today on margin concerns oil prices falling to a six-week low amid oversupply fears. and president biden calls on the ftc to look into so-called

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