Stock market today: Dow slides, Nasdaq closes at record to cap winning week
[Music] hello and welcome to Market domination I’m Julie hman that’s Josh lipon we are giving you the ultimate investing Playbook to help tune out the noise and make the Right Moves for your money and here’s your headline Blitz getting you up to speed 1 hour before the closing bell rings on Wall Street this go to the heart of Apple to the iPhone even if they’re successful in in mitigating some of these impacts it will by definition weak in Apple’s hold especially in the US iPhone Market Bitcoin seems to be the most free market asset that we have and so things like supply and demand just a pure if there’s that more demand and you’re going to cut the supply in half the price should go up much higher yes I believe this is a defining point to rebuild this industry for the future and I’m super happy that I and Intel have been play able to play a part in that transformation we’ve got 1 hour to go until the market close and we’re going to show you where we are and how we got here for the major averages so let’s start with the Dow here which is down by 190 points a pause from the recent rally that we have seen nonetheless the rally on the week is still untacked with 2.26% is the increase for the Dow let’s take a look at at the other major averages on that front as well the S&P just about flat on the day however on the week it’s still seeing a gain of 2.4% and then finally get into the NASDAQ here which is up nearly 3% on the week even as it’s only up about a quarter percent today very strong week for the major averages which is something that bears watching you know we’ve been talking all week as well about what’s going on with both the equal weight and small caps and there too we have seen strong performance although not an outperformance when it comes to how they’re looking versus the major averages also want to take a look at the sectors here uh for the S&P 500 we’ve got utilities actually doing the best say along with tech and communication services so a bit of a mixed bag not very thematic real estate financials and consumer discretionary on the downside what has driven the gains during this big rally that we have seen this week it’s been communication Services Industrials and consumer discretionary so it’s felt sort of more cyclically LED in terms of what’s gaining this week that is also borne out by the fact that real estate the worst performing group on the week down 8/10 of 1% now Josh you’re watching a particular stock here that’s right let’s talk for a minute here Julie about uh former president Donald Trump because he could be set here to make a windfall at least on paper investors approving a blank check deal that would bring his media startup public perhaps as soon as next week Trump media and Technology can now go public in a deal with digital world acquisition that merger would hand Trump billions worth of shares you can see Digital World shares they are down in today’s trade though remember that spack has surged huge about 130% this year before breaking out the champagne though Trump shares would be subject to a lock up uh for about roughly six months so that could stop him from monetizing that stock for a period of time but it does give Trump billions worth of stock as our former president does have a 60% stake in the company yes when all when the deal is all said and done Trump um posting on truth social today saying he has $500 million in cash to meet his various legal obligations including a bond that I believe is due on Monday here so he’s not going to even if the deal closes on Monday he’s not going to to your point he’s not going to have access to these funds for quite some time there is one potential out here and that’s if um the company agrees to expedite his share sales it very well could because these are allies of the former president however it could cause some chaos in terms of how the stock is Trading he’s dumping a bunch of shares and if that we know publicly that he’s gotten the go-ahead to do so so it’s a bit of a um you know a more complex situation here uh for Trump than you know just being able to sell the shares and get the money it’s a lot of a lot of drama a lot of puts and takes we have a great guest coming up later by the way to talk about this yeah looking forward talk about it in the 4 P p.m. hour let’s move on here time for calls of the day we’re going to start here with wed Bush lifting its Target price on Google’s parent company alphabet to 175 that’s up from 60 The Firm also adding the tech giant to its best ideas list so we’ve heard this it’s interesting we’ve heard this kind of skepticism about Google from some that they just aren’t moving fast enough and smart enough when it comes to Ai and you’ve seen it the stock kind of lag at least it’s it’s Mega cap peers this year but here comes the team at wed Bush that’s Scott devit and Dan IES specifically and they say alphabets a Buy in fact they move it to their best ideas list and bottom line I think here they sum it up in their note we believe the perceived structure ual risk to Google search are overstated and continue to view alphabet as a net beneficiary of genitor AI you know what was interesting about this note is yes the the sort of Market view does seem to be that there are risks but we talked to another smart guy this week Mark mahaney over at everi and he made very similar comments uh let’s play for you what he said just a couple days ago I think this is actually going to lead to a material increase in the overall number of searches people do with Google that’s a deeply conturing point of view now so that’s why I think there’s a little bit of an unnecessary overhang on Google and that’s one of the reasons why I made Google for the first time in maybe two or three years one of our top picks actually supplanted me yeah so interesting there he’s and it’s sort of a similar case although the folks over at wedbush Deon and IES did a sort of side by side search using AI gen AI assisted search and just regular search to see how many ads came up in each situation so they did this big case study and basically they said it was pretty similar so they don’t see a loss in ad Revenue as a result of layering on this gen ability yeah although as Tech develops you do wonder I mean to the extent that and even the only I would I would question these Bulls on as as kind of let’s say search gets disrupted and Google you know listen very smart group of Engineers they move with that even so you just kind of wonder what the economics of search looks like going ahead it is is it still going to be that sort of high margin business investors love you know yes exactly and so will that Apples to Apples comparison even make sense right you know 6 months from now we’ll see uh let’s also talk about Papa John’s which is being hit with a downgrade bti slashing its rating in the stock to neutral from bu and move comes after the departure of CEO Rob Lynch who was just hired away from Papa John’s to go to Shak Shack now this is not the only downgrade that has come for Papa John’s in the wake of this news um but the stock continues to fall after Lynch basically got poached to go over to Shake Shack yeah I mean uh a couple different ratings changed I look at the team at Steel by the we by the way they weighed in too Julie read read it a sell uh they didn’t like it before they don’t like it now either expect the co departure they told clients to be disruptive could impact franchises willingness to accelerate development says they are in a weak competitive position in a tough category yeah and they talk about the the um that is btig that is Peter CLE over there talking about the turnover that’s already been seen at Papa John’s now the CFO Robbie thala is the interim CEO um and Cel says you know he he’ll were confident in his leadership but he’s only been at Papa John’s for less than a year and was at Nike before so he doesn’t have restaurant operating experience specifically and there’s been other executive turnover there so that’s one of the reasons also that uh bti is getting less positive on the name yeah it has not been easy to be long Papa John’s deep in the red this year and over the past 12 months all right let’s broaden it back out right now because despite the mixed action on Wall Street today stocks are still on track for their best week thus far of the year the NASDAQ heading for another record the S&P 500 fighting for gains today we’ll see if it makes it there and of course there have been a series of catalyst from nvidia’s GTC event on Monday to the FED decision on Wednesday all of that helping to drive the optimism joining us now Amanda agatti PNC Asset Management Group CIO Amanda it’s great to see you it’s great to see you too thanks so much tring me so when we talk about the Catalyst that we have seen this week in Nvidia um the FED not you know sort of seen as dobish what now right we’ve seen it we see the markets today kind of going sideways and if we’re looking for sort of the next Catalyst out there what’s it going to be or do we even need one do we have sort of a a drift up that continues well it does seem like we have this bit of a drift up or melt up uh if you will in terms of this theme that’s really taking for this year but I think from our perspective you know this Market is effectively priced to Perfection here and so we are really looking for some kind of strong fundamental Catalyst to actually make the market move higher instead of just kind of like the trend line move from my perspective I think that fundamental Catalyst needs to be a broadening and earnings growth participation we have not seen that yet we thought Q4 earning season would be it but hopeful that maybe we’ll see it for q1 and so what do you you know earning season Amanda is just a few weeks away here what are you expecting then what’s sort of your your outlook for corporate profits well the challenge is that when you look at earnings growth for the S&P 500 with the Magnificent 7 it tells a very different story than when you back those seven stocks out so what’s happening with the bottom 493 we finished Q4 earnings season with a big distinction between winners and losers strong headline number of 4% earnings growth your over year but when you back the seven out it’s more like minus six and so the expectation for q1 is that even with those seven stocks out we might finally turn the corner to very Mo modest Positive Growth but it’s a very narrow window very narrow margin for error and so where are you looking right now Amanda or are you getting more defensive here kind of what how are you positioning well we’ve been running a bit of a defensive playbook really since last year and so the the story this year is not all that much different particularly given how much further valuations have moved this year but defense to us doesn’t mean raise a ton of cash and move to the sidelines it really just means stay fairly well Diversified stay focused on the long-term targets pick your spots very carefully and be very valuation conscious in this environment so I do think that there are pockets of opportunity actually think what’s more interesting is perhap what’s happening on the fixed income side of the equation I think there’s a bit more opportunity to allocate Capital there in the very short run again given this sort of valuation disconnect and itanda for fixed income investors who are listening right now where do you see opportunity well you got to go investment grade for sure for the better part of the 10 years leading up to the pandemic we were very focused in below investment grade and credit oriented markets we were starved for yield right we’re picking up a lot of basis points of yield you thankfully don’t have to do that anymore and so we’re very focused on investment grade high grade poor fixed income we’re also putting cash that is sitting on the sidelines to work you know we’re on the eve of a Fed policy pivot here those money market yields look really attractive today but they are fleeting and so we’re encouraging our investors to make moves uh into longer duration fixed income Amanda just quickly here when you’re looking to the next um crop of inflation data what are you expecting uh well I think we’re expecting a little bit of inflationary fire not not problematic necessarily but we don’t think that the FED is going to be content with the data that comes in that we’re making a lot of progress toward the long-term Target we continue to believe that inflation data is going to be choppy here in the short run largely a function of what’s happening on the energy side of the equation and also what’s happening on the services side of the equation and so that last mile that last 100 bips to get to the long-term Target for the FED is going to continue to be a bit challenging so we don’t think we’re going to get a lot of comfort around the next couple of data points but that really means the time is on the side of the FED they have they can be patient before taking that first step to cut all right Amanda thanks a lot have a great weekend thank you you too thanks we’re just getting started here on Market domination coming up the newest edition of our series goodbye or goodbye we’ll get investor Insight on two stocks to help you make the best choices for your portfolio plus the first ever Bitcoin investor day is underway we’re going to hear from skybridge founder Anthony scucci later this hour stick around for more Market [Music] domination [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] now oil price is sinking again in today’s trade that’s after climbing earlier this week with more we’re now joined by Bob yogger executive director of Energy Futures at mizuo Americas Bob it’s good to have you here thank you for having me so um oil is inter to think about here just the push and pull Bob you know you think about geopolitical conflict but on the other hand you know stronger dollar to consider you know looking at oil just under 81 here where where do you think we’re headed Bob just in the near or to kind of intermediate term well it’s on top of the GE geopolitics involved there it’s also we’re two months away from driving season so right now the refineries in this country are going to start to ramp up they’re going to take a lot of crude oil through the refinery this is a seasonal thing that happens every year um we had a big pop in demand in the last two weeks in in the month of March which is very rare and we had uh gasoline outpaced crude oil to the upside that’s one of the things that sparked crude oil to the new high the new multi-month high that we put in this week uh earlier in the week and uh this last storage report though that demand it sagged a little bit but it’s a very good sign that that demand is is very strong it’s at 9 million barrels a day the alltime record is 10 million barrels a day and that’s was in the summertime in 19 in uh 2021 um I want to we’ll go back to oil but I do want to ask a little bit more about gasoline because so many drivers are paying so much attention to it there are political implications of where gasoline goes so do you think we will see continue to see that Trend higher more than it seasonally does in summer well I think that the refiner has learned his lesson and we came out of covid the perception was that the US driver want to drive all over the place and burn through gasoline like there was no tomorrow and uh the price at the pump got as high as $5 a gallon it killed the Golden Goose the the driver stopped driving and uh the the refiner was basically left holding the holding the the the uh the barrel uh prices fell accordingly very quickly and uh they I think they’ve learned a lesson from that they will probably try and feather the price in there somewhere around $ 350 at the most maybe $4 we’re B basically 325 right Nosh and uh they know what will happen if we get the $5 they’ll lose demand rather quickly so that’s good news then for people who are driving around it is and I think there’s some political pressure on not to get there also as a function of inflation also and Bob I want to get your take to um you look at China still kind of shaky over there how does that play your outlook for oil it’s not good at all that’s a big uh number right there their demand they were the reason why we were able to get to where we are now postco post negative prices when demand slid off the face of the Earth in uh at the beginning of covid and we went to negative prices two things happened sa’s cut production and China eventually emerged and was the big demand engine that rallied the market to the Moon um that’s not going to happen anymore it doesn’t look like that’s in the in the cards for any time time soon so they’re not going to it’s not going to be demand destruction but they’re going to stay at this level to maybe a couple barrels higher but they’re not going to take the market and run higher with it and that’s a dilemma for for the folks at OPEC they uh they need that demand they’re starting to increasingly look to India as maybe the future demand engine um so that’s a different situation how realistic is that Bob is a is a there’s 1.3 million people there that a lot of them don’t drive at all at this point and uh they’re going be buying old cars from the United States that we ship to India and the rest of the world will be shipping and uh those are gas guzzlers the largest refinery in the world is the 1 million Barrel per day Reliance uh Refinery that’s a monster and it’s that there it’s there for a reason um as we were talking uh before we came on air that I was in Houston at Sarah week this week which is the Big Oil and Gas uh conference annually and there has been sort of a renewed push back amongst the oil industry um about the energy transition right you had the Saudi aramco CEO calling the idea that we are moving away from oil and gas right now a fantasy and that we need to invest more where are you on the question of like Peak demand where we are on that Continuum well it’s it’s there’s two sides to this story basically first of all the uh the Eco clean energy index for starters uh it’s trading at multi-year lows so as a combined index with 7 names in it it’s getting killed it’s not working uh a lot of the names in that index are just not costeffective the Technologies cannot compete with fossil fuel at the end of the day and uh and the people involved has stepped back a little bit from that space as a result on the other hand um we’re going to have we’re going to be this we’re going we’re going to set the new demand number probably in 20 35ish so you still have 10 years we have to work through this Indian situation for starters also other emerging third world countries um they’re going to they’re not going to be driving new Teslas anytime soon and uh that’s going to put the peak oil story on the back burner for a while now there’s some there’s some uh clean energy companies that are doing really well on the other hand like like Constellation Energy so utility that’s is nuclear and has a lot of uh clean energy mixture also that’s the third best performing name in the S&P 500 this year so there’s a certain rotation away from the Magnificent 7 into the old school name and they seem to be the darling of the of the uh of that switch so um there’s other names like that G’s doing great they’re a provider of clean energy uh infrastructure to a lot of people that participate so there are two sides of that story but um fossil fuel is not going to go it’s not going to evaporate from the scene anytime soon right yeah Bob thanks so much for joining us today appreciate it thank you thank you for having me and coming up skybridge founder Anthony scaramucci talks about what’s to come for crypto from the first ever Bitcoin invester [Music] [Music] day [Music] [Music] [Music] a [Music] [Music] [Music] we’re back here live at Bitcoin investor day I’m here with Anthony scari the man who needs no introduction of course of skybridge capital Fame Anthony thanks so much for taking some time good to be here Brad thank you absolutely okay we’ve got a big day a lot of energy here what is and this is what a lot of people are trying to figure out here at this conference and even beyond what is the next inflection point for cryptocurrency and for Bitcoin that your try well F first thing I want to say is congratulations Anthony Pano for the conference because this is layered you have individual investors here big name institutional investors and I think what the pop is trying to do is make this accessible to everybody and so I really do believe that’s the next step we had a retail explosion in Bitcoin demand in the beginning it’s now flipped over where institutions are comfortable because they have an ETF that they can purchase and greenlighted by the SEC and you had the having coming up and so at some point late April call it around April 20th or the 22nd you’ll cut the supply of new Bitcoin entering into the market by half you’ll you’ll start spitting out 450 Bitcoin a day and if you have this pace of demand that should push the price up a lot but remember I would have never guessed that grayscale would have been cut in half two months into the Bitcoin ETF approval so what do you think behind that right now cuz that’s I think it’s a combination of things I think bankruptcy trustees at places like Celsius at places like FTX Genesis we could name them all are flooding the market with their gbtc and they’re just trying to get a price above 60 so they’re flooding the market is that what you’ve heard that FTX is I think is already out I think they sold a few weeks ago but these other guys are still selling and then think you have the garden variety person that’s been in gbtc who you know accepted the 2% fee because there was no other game in town and now they’re like wait a minute I can go to a 21 basis point fee so if it’s an IRA 100% they’re moving that day and then it’s just the question of how much taxes do you want to pay for taxable accounts so you know you could have another 15 days of selling before you see this thing calm down there was an interesting stat that Mike Nova Rats of Galaxy brought up during his fireside chat and it was about the great wealth transfer that we’re set to see yeah in the next few years here $84 trillion in wealth owned by us baby boomers and they largely invest through registered investment advisors and whatnot if we see a great wealth transfer what does that hold for Bitcoin in the near future from your perspective so I I’m going to give you an example from web one I was 30 when the Netscape browser came out in 1995 and my I was old okay we were late adapters to things like email web browsing purchasing things on the net and accessing news but somebody that was 10 or 15 was Gung hope that’s Bitcoins excuse me so somebody to a 45s a little bit of Bitcoin but somebody 25 a lot of Bitcoin so in the next 10 years I see it like a a big python where the bitcoin’s going to get absorbed into the python there’ll be a big bump up in Bitcoin demand and that’s coming inside of the next decade this is why people like Michael novogratz or Kathy Wood they see a $1 million Bitcoin and by the way just remind everybody a$1 million Bitcoin is a21 trillion Marketplace gold is 1415 they’re suggesting that Bitcoin should trade to 150% of Gold’s overall market cap let’s say they’re wrong let’s say it trades to its market cap or half of what they’re saying uh that’s still inside of the ballpark of what I would consider digital gold now if somebody like safine alos is right you could end up in a situation of hyper fiat currency inflation where people start relying more on bitcoin because of the hard nature of the asset do you think then with that in mind and the the interest among younger potential wealth holders in the future you that Bitcoin finds itself in the throws of this election conversation in 2024 I think it already is I think you know we’re learning that Elizabeth Warren’s team is asking other Senators to put out statements on behalf of her because she’s afraid to be at the tip of the Spear of the anti- crypto movement anymore uh I think you’re learning that there’s probably 45ish million wallets in the United States uh and many of those people are eligible voters and many of those people will vote and so I think eventually you’re going to end up in a situation where both sides have to be pro coiners pro crypto pro- digital property otherwise it could cost him an election does that also mean then that we see more of a gravitation towards Central Bank digital currencies if there is a bipartisan effort that moves forward so it’s a good question so we looked at that you know that that happened on a Wednesday when I was in the White House the reason I know that I was only there for one Wednesday and we we we had a white paper come out in 2017 talking about Central Bank digital currency minuchin tabled it I think Janet Yellen will table it question is will the next Administration and you know I think it’ll likely be a Biden Administration will they table it uh and it really depends on what our competitors are doing the Chinese have a digital currency if there’s a Euro digital currency I think it’ll be impossible for the United States not to have a version of one or to really promote something like Circle which is not a central bank digital currency but is a stable point on the net why then wouldn’t we see a Consortium of central banks create their own cross functional digital currency it’s it’s a good question and so I know there’s Libertarians that are against it if you’re asking my opinion I’m not for it but that doesn’t mean it won’t happen I think there’s an inevitability to this it’s sort of like what Elon Musk says about AI he doesn’t like elements of it but there’s an inevitability and so I think it’ll eventually happen I just don’t know when and then just lastly while we have you you mentioned Elon Musk I mean you you track a range of different asset types and what we’re seeing in the equity market right now there’s a Fallout from some of the companies that were once in the Magnificent 7 there’s of course now a checking of even some of the AI plays that are out there how much more juice do you think this AI trade has left in it it’s a really good question and and obviously Nobody Knows the answer to that but here’s what I would say if the fet starts cutting rates they’re indicating that they’ll do three rate Cuts this year I think that gives a little bit of buoyancy to the market those stocks probably are overbought at this moment so they could have a 10 or 15% correction but what I tell clients so what hold these things for a 3 to 5e play hold them for seven years if you hold Bitcoin something like Bitcoin for four years there’s not one person in a rolling fouryear period of time that hasn’t made money if you just stayed in the asset and so I bought my first Bitcoin in 2020 October it went up a lot in 21 I looked like a genius it went down a lot in 22 I looked like a dummy and now I’m somewhere in the middle because it went up a lot again but if you just hold it you’ll be okay that’s my message of the AI people that’s my message of the Magnificent 7 uh they’re probably overbought you know I don’t like the concentration of those seven socks versus the other 493 in the S&P 500 that’s how happened before that usually spells a near-term correction for the overall Marcus when you got the FED cutting rates you got a very strong economy so I wouldn’t want to be left out just too hard to predict Anthony thanks so much for taking the time great to be on thank you absolutely the a things back to you [Music] guys it’s a big noisy Universe of stocks out there welcome to goodbye or goodbye our goal to help cut through that noise to navigate the best moves for your portfolio let’s bring in David Miller Catalyst sponge Chief investment officer and Senior portfolio manager and let’s get right to your buy here and just we’ll do a little tease your goodbye is one of those Magnificent Seven stocks that we just heard Anthony talk about but let’s get to your stock that you do like first of all and that is hims and hers Health now this is an interesting one it’s had a good you know year to date so far it came public back in 2019 as part of a back um right and so let’s get to your bull case here basically that it’s a grower is your first point absolutely 47% Revenue growth massive Revenue growth even when the stock was declining interestingly enough it was growing incredibly quickly and massive margins yeah and also the company is now profitable which is something it hadn’t been on a regular basis here so is this something that now it’s going to be more consistent in terms of its profitability absolutely so it’s one of the few specs that I really like and now that they’re profitable when you’re profitable and you have massive margins and you continue growing and that percentage of their costs that are marketing expenditures continue to decrease you’ll just see that net income continue to grow very rapidly as my anticipation now this company for those people who aren’t familiar with hims and hers they provide men’s and women’s health products um online right so they sell them online um we used to see um pre pandemic they had a lot of ads in the sub way here in New York city so that was one of the ways I first got exposed to them and what is the sort of what problem are they solving for for customers that you think is unique I’d say they’re solving three huge problems for customers first is when you wanted medication in the past you had to go into to a doctor’s office now if that were for an embarrassing problem like a Ed or balding or things of that nature or things where you just don’t want to go to the doctor’s office now you can do it on the computer two is you used to actually have to go to the pharmacy to then get that medication they ship it straight to your home in a couple days three is that these medications used to be either very expensive if you paid out of pocket or you’d have to buy it through insurance and a co-pay it’s actually cheaper to buy these directly than the cost of the insurance co-pay so it’s saving you money and it’s saving a lot of time and it’s making life dramatically easier why you’re which is why you’re seeing so much customer adoption right and that’s always when we talk about these though we got to talk about some of the risks to the potential upside so if we look in this case maybe there could be some changing regulation around te teleah health and there’s also competition from row which is another startup so let’s take the first of these first what could happen on the regulation front so there’s already been some changes in regulation around the pandemic and when they made it a lot easier to do teleah Health now that hasn’t affected him and hers yet because they’re generally uh medications that are easy to get very little in the way of side effects they’re not like uh significant anti-depressants or painkillers that are addictive uh there are things that pose little risk but that could always change uh second to the point with row row is a direct competitor they’re they’re both great Services potentially one will do better than the other but this is also a very big space and they’re both solving a huge problem in removing the need to go to the doctor’s office or the pharmacy or pay more money so when you can solve all three of those problems and make life easier for people there’s a good chance they can both do well interesting all right now let’s get to your goodbye and this one I’m I’m going to venture to say this is a little bit of a risky call perhaps cuz it’s a very popular stock we’re talking about Nvidia but there are people now who are talking about maybe it’s gone too far too fast so first of all you say that you know it’s already growing a lot and it’s getting ever bigger so is it going to be tougher for it to grow going forward at the same pace so there’s two different issues will it continue to grow will theet income grow rapidly yeah I think the company’s going to grow very rapidly both on the top line and the bottom line line the real risk here to people who decide to own Nvidia is they’re paying 25 times revenue for a company that has a $2 trillion valuation roughly there’s never been a company in history that’s Justified that type of valuation at that type of size you have to really think that Nvidia is going to be the largest company on Earth to justify that now will they be it’s certainly possible but are there less risky ways that you can get a better risk adjusted return I think so and this is an interesting point that you make as well back up real quick that semiconductors tend to be cyclical tends to be a commodity business now nvidia’s argument is that the complexity of the chips that they’re producing has decommodified it to some extent do you not buy that argument I do buy their argument it’s clearly true there’s enormous demand for their chips right now right now they have a game changer chip nobody in history uh before would pay a quar million dollars for a chip there’s no question uh that their company is doing incredibly well and they’re going to continue to do well in the near future the question is will that continue indefinitely historically you’ve always had boom and bus Cycles in semiconductors chip makers it’s getting priced now like that’s over there’s never going to be another company that’s going to compete directly with Nvidia and that remains to be seen yeah and then finally this kind of sums up what you alluded to a couple of times that it’s valued as though it’s going to be the biggest company as though it’s never going to see any competition Etc exactly that that’s the big question if they could maintain this lead that they have indefinitely sure they’re definitely going to be worth it but is there a reason to think 5 10 years from now uh other people can’t catch up and they’re going to have incredibly High unusual margins forever my thought is less likely gotcha and then the risk to the downside case here is that in particular that what they just announced that Blackwell chip that it is going to be tough to compete against yeah and it absolutely will be And to clarify I’m not saying Nvidia is a short I’m saying I’d avoid it uh it’s certainly possible that uh AI will be the biggest thing ever and it very likely will be huge the the question is is it worth $2 trillion dollar today right and maybe there’s other ways to play it as you mentioned just real quickly here are you long HS and hers yes I I am but you don’t have a position in don’t have a position one way the other okay gotcha so let’s sum up what you’re telling investors here basically you say you would buy him and hers given its growth it costs the Tipping Point into profitability and it creates amazing value for customers on the other side you say avoid Nvidia given that maybe it’s priced for Perfection here and will not live up to the very very lofty expectations being priced in really appreciate it David thank you and thank you for watching goodbye or goodbye we’re going to be bringing you new episodes three times a week at 3:30 p.m. eastern time now for some of the days trending tickers as we’re nearing the end of the trading day let’s take a look at the canab stocks they are surging in today’s trade the news here was that a group Commissioned I mean actually a couple different storylines but let’s start off with a group that commissioned by the federal government of Canada Julie did recommend reviewing taxes charged to pot producers it sounds like so the group basically said listen the excise tax is a problem and it was put in place when the average price of cannabis was a lot higher than it is today and so um they told they said in this statement we see an opportunity to update the tax policy to reflect the current reality the group said so what happens next it sounds like Pro reports there’s going to be a recommendation made to the federal government there um doesn’t sound like we have an exact timeline yet but that was one piece of news that clearly investors like today yeah and the other piece of news is that Germany is now decriminalizing cannabis as of April 1st um possession and home cultivation will be decriminalized for adults they’ll be able to own um to possess limited amounts here I mean the context for all of this there’s a couple of things to mention cannabis stocks have been decimated so there’s that right they’ve been very out of favor but they’ve been rallying not just today but all week a couple of things have gone on last Friday um vice president kamla Harris hosted an event on reform of uh marijuana regulation and so that kind of gave a bit of a catalyst to the group and all this week we’ve seen this rally yeah you’re also seeing investors kind of pick out which names it looks like kind of have exposure to the German Market by the way so reading through reports it looks like canaby growth is one till Ray is another right exactly all right let’s also take a look at Tesla which is also trending today they are show those Shares are taking a hit the EV maker reportedly reducing production of electric vehicles at its China plant and what you and I both key in on Josh is it’s reducing production by reducing the workload for they’re not changing the the shifts the length of the shifts at the plant but they are reducing the operations to 5 days from 6 and a half days so they’re still clearly demand they’re just pairing it back a little bit yeah I think it just still played into these kind of broader concerns we we of course talked a lot about with Tesla which is just the backdrop of slowing EV demand still growing it’s just not growing like it used to and and then also just in China we’ve talked a lot to Julie about the competition that Elon Musk hovers there from the home team byd yeah and remember in the in January and February uh the company’s deliveries from those Chinese factories dropped 6% from the like period the year earlier and only about half of those Vehicles went to the local market we know that Tesla has been cutting prices there just as it had been in other areas around the globe so but there’s also a lot of homegrown competition within China you also had by the way other piece of news that Senator Elizabeth Warren wants the SEC to investigate t Tesla it sounds like kind of over board Independence um saying new evidence has emerged in recent months that deepen my concerns that Tesla’s board lacks independence from Mr musk who uses his control over the board for his personal benefits um said that in a letter to to Chairman Gary Gensler at the SEC not not really anything particularly new here or shocking we’ve heard this arguments before from the senator by the way that musk went right back at her on X No Love U loss between these two no and the shares are now down more than 30% year alone coming up which companies are worth a buy for those looking to play the athleisure space in their portfolio we’re going to hear from analysts in our investor Playbook that’s [Music] next [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] n [Music] [Music] now in a postco world a Leisure is having a moment the trend soaring into a full-blown industry with roughly 200 new brands hitting the market since Co so which names are best for your portfolio we’re looking at how to navigate the big picture with the Yahoo finance Playbook we’re joined Now by Zack Warren CF analyst and Sharon Zakia head of the consumer sector equity research group at William Blair welcome both of you to the show and Zach maybe I’ll I’ll start with you and we can start just kind of big picture Zack you know this sector very well you know the names I’m I’m just interested kind of broadly Zack what are you seeing how healthy and and resilient does this sector look what do kind of the underlying demand Trends look like to you yeah thanks for having me so you know in the US you’re starting to see a little bit of weakening um and that’s kind of been happening over the last 12 months uh you know as the US consumer kind of deals with a lot of different you know uh headwinds so um in the US you’re seeing a little bit of a weakening but nothing scary it’s not you know the apocalypse you know the world’s not ending but um you’re seeing a softening there and then internationally um it’s kind of company by company some companies are pretty much able to grow at will While others have kind of struggled so you know you’ve seen that with Lululemon and Nike after hours yesterday Lululemon was able to grow 78% in China uh which is pretty incredible and then Nike only had 6% growth so um you know Europe was a little weak for Nike uh but you know Canada or Lulu Limon doesn’t really talk much about um other markets outside of China other than just their International Market but um yeah I mean we think it’s kind of a winner loser Market um Sharon let’s get your take on this too kind of where we are in the consumer spending spectrum and and how willing in particular I think us consumers are to spend on athleisure right now yeah I mean I think in the broader context we continue to see consumer shift to spending on more experiences versus Goods athleisure is not immune to that but if you look at athleisure in the context of the broader apparel category the trends look very good um relative to the broader space so we’re seeing resiliency within a Leisure that I think is different than what we see in broader apparel and Zach let’s dig into some specific names here talk Lululemon um they reported obviously Zach investors were were disappointed but you go from buy to strong Buy on on the ratings Z how come walk walk us through that yeah so in the last you know five years or so you’ve only had a couple of opportunities to buy Lululemon at under 30 times you know forward earnings uh and right now they’re trading roughly at 28 times uh and so you know we see that opportunity for a great company you know Lulu’s operating margins continue to Trend higher obviously they’ve got growth in China and internationally you know they’re seeing a little bit of softening in the US and you know that kind of I think is where shares slid last night was once you know CEO came on and said that they were seeing weakness here um but you know we think this is a a great buying opportunity um and you know we love the company we think the company is one of those the guide really conservative usually um and then they raise throughout the year so you know we think this is a starting point we think they’ll continue to raise guidance our estimates for next year are much higher than what they have well and Sharon um I know you’re positive on lemon as well do you agree with Zach that this is sort of the typical Lulu Playbook where they’re just being overly conservative or or should investors be concerned about the slowing that Calvin McDonald referred to yeah and I think just to you know level set Lululemon’s Trends in the US were very healthy through January so we’re talking about six weeks of a slightly slower Trend uh February is usually not the tail that Wags the Tog and broader retail sales and there are some inventory dynamics that they alluded to you know having better depth in smaller sizes having more color these are things they can fix so it’s not all macro and I do agree I mean this is a company that’s has a very long history of exceeding its initial guide we think you know inventory adjustments and the marketing activations that they’re doing of which there will be three major ones this quarter are probably not fully contemplated as positive wild cards in this guidance so we think there is room for this guidance to prove beatable all right two Believers there in Lululemon Zach I want to turn to another name that did report did disappoint that’d be Nike it’s down about 7% in today’s trade you went to a hold on that name Zack why why a hold what kept you from going to a buy yeah so you know we had Nike as a cell we’ve kind of been back and forth uh sell and hold on Nike over the past two or three years uh and we just think you know we’re we’re just concerned on where they’re going to get their next level of growth obviously we love the brand uh we know that it’s a world worldwide Global brand one of the largest in apparel and Footwear and you know we we love the balance sheet that’s never been the issue they buy back a lot of shares we just have we’re having a trouble you know figuring out where they’re going to get their next level of growth uh they saturated the US market um they saw a pop there during inflation so obviously as they they raised prices um they saw a boost in revenues in the us but we just you know the US is saturated there’s some areas of growth in Europe that they can kind of head towards and you know soccer and and some other sports but you know outside of that and then China’s really been disappointing too so you know we’re just going to wait and see here we think there’s going to be a better opportunity to buy Nike and we’d rather wait and see you know be patient and and hold here just because we’re not sure where they’re going to get growth from and and Sharon you don’t cover um Nike but you do cover under arour um and we just got recently got bombshell news about the departure of um you know CEO Stephanie lard who hasn’t been there very long and Kevin blank coming back I believe you’re still positive on the name you still think investors should buy it why I mean I think Stephanie architect did a big change in leadership over the last year and do two-thirds of the this the leadership is new uh Kevin was involved to our understanding in those uh Acquisitions of talent and we think you know basically the goal here is to sear the ship towards growth in the US they have not had that sustainably for quite a while in terms of re Revenue but also Harvest more margin and so we thought of this year as a margin harvesting year as the new creative team and new leadership has the opportunity to um really lay the foundation for better Revenue growth in 2025 I think that all stays intact but uh obviously we’ll have to hear what Kevin has to say on on the next call but you know he has been there he’s been chair and and brand Chief so presumably he has been involved in much of the strategy as well Sharon Zach thank you both so much for joining us today have a great weekend thank you thanks that’s it for Market domination stay tuned for the closing bell and Market domination overtime it’s coming up after the [Music] break [Music] [Music] [Music] [Music] [Music] w [Music] up [Music] m [Music] [Music] [Music] now there’s the closing bell on Wall Street and now it is Market domination overtime Josh and I joined by Jared blicker to get you up to speed on the action from today’s session so let’s start with where the major averages ended and they ended lower and in fact even at the lows of the session if you look at the Dow Jones down more than 300 points on the day taking a little bit of a leg down there but even at the end down 7/10 of 1% the S&P 500 off about a tenth of 1% although it had a more sort of volatile session in a relatively narrow range and the NASDAQ Composite finishing higher but again off the highs of the session the NASDAQ the only of the three major averages to close at a record today because it had any gain now even that said with the sort of volatility that we saw today all three major averages did have a very positive up week and in particular the NASDAQ Rising about 3% on the week something else I just quickly wanted to check on for the week before we take it over to Jared is what we saw yields do on on the week after we heard from Jay Powell on Wednesday in a press conference that was broadly viewed as doish with the FED reiterating three interest rate Cuts this year we continue to say yields moved down now it wasn’t a big move over the past week but enough to kind of fuel that gain that we saw for stocks now Jared’s got a closer look at today’s sector action hey Jared hey Julie and thank you for that and that wonderful explanation of the bond market very important yields dropping that is a Tailwind if nothing else for a lot of these big stocks especially tech stocks that we look at here communication Services is the big winner of the day followed by utilities and Tech but let me take a look at the 5-day action by by the way financials down over 1% that was the biggest loser and uh no finan financials are not reaching a record high today but we do have some others really interesting to see xlc communication Services up over 3% that is a leader for the week followed by Industrials and then consumer discretionary so an interesting mix of some Mega some Industrials and when I say xlc that’s really alphabet and meta those are the two biggest contributors here and you can see alphabet up almost 7% meta up almost five or over 5% and then Nvidia you want a record high Nvidia uh closing its investor week with a record closing High I think that’ll be good for it yes it will right there so quite the eventful week not only for AI but for the rest of the markets as well really interesting to see The Biggest Loser among my leaders this week was crypto gbtc that’s my Bitcoin proxy that’s down 7% had some negativity in China but for the most part it was up up in away homebuilders and cannabis really leading this week Jared I’ll take it from there another name we want to talk take a look at here is Reddit which is in the red here it is paing gains of course you know soared yesterday when it made its trading debut on the NY Reddit is such an interesting asset Julie big user base healthy Topline growth but still posting losses uh despite the fact that has been around a long time I think fans would probably cter that losses are shrinking which is fair part of reddit’s pitch though now of course is that it’s also an AI play allowing third parties to license uh access data on the platform to train AI models more broadly few different um IPOs this week so there was Reddit and of course there’s also a stero Labs which we talked about on the show also sword Julie yeah um on the point about you know the the proposition that Reddit is going to make money from sort of selling the rights to train AI on its platform our ham shoban wrote a really interesting piece in the morning brief newsletter today where he said you know that is something that the company is selling but at the same time it’s also putting itself forth as showing the value of human generated content so those things are sort of at the at odds with one another because it’s showing the value of human generated content but teaching AI to better mimic human human gener ated content which you would think would be counter to its own interest so I just thought that was an interesting point that he brought up and also licensing data has has piqu the interest of regulators too right which is another thing to keep in mind yes and that’s a risk for across a number of different platforms um a couple of things to note about Reddit specifically Arc has nibbled at the shares and a couple Arc investment management and a couple of its different funds and also options are going to begin trading already on Monday because the period now between IPO and when options can trade has shortened from four sessions to two sessions so that could cause a little bit more activity both to the up and downside in those shares and here with the top takeaways of the trading week let’s get to Yahoo finance senior reporter Alexander Canal hey Ali hey so as we talked about it it was a Fed week and so that has to do with how how you viewing the week as well yes there was a lot of anticipation heading into this meeting particularly when it came to those dot plots right where are we going to see the FED U maintain its projection of three Cuts this year and I thought it was interesting because Josh you and I were talking in front of the show Michael Antonelli earlier this week and he basically came with the notion it doesn’t matter if the FED Cuts once twice or maybe even not at all because the economy is so strong and I think what we got from the summary of economic projections really highlights that fact fed officials are penciling in that higher economic growth they upwardly revised their revisions for GDP to 2.1% that’s up from the 1.4% the Fed officials expected back in their December projections they also said that unemployment was going to fall to 4% that’s down from 4.1% in their projection so it seemed like the FED is increasingly confident that we’re going to achieve this soft Landing narrative and it might not matter so much when it comes to when they cut if they cut because the economy has just remained so incredibly resilient you can even look at something like existing home sales for example that shut up 9.5% in February over for the prior month homes they’re very interest rate sensitive area of the market but they’re doing well the Market’s still tight inventory’s up possible sign that maybe we’ve reached the low point there so I think the story here is that the economy is performing well and stocks are at record highs we’re still at pretty high interest rates despite all of that so as long as the economy remains resilient that might lead us into that soft Landing Camp yeah it was interesting because we were just talking to strategy today and you know the fundamentals she was saying I think she agreed you know economy strong and that should drive corporate profits question is how much you willing to pay for that and I think she was kind of skeptical about the multiple yes definitely well and speaking about skeptical of multiples you know we were talking about the mag s the subject of the negative side of goodby or goodby today was interestingly Nvidia so clearly people are looking at some of these multiples but in particular in the mag 7 Apple had a tough one this week no good very bad week is what I’m calling Apple that dojj antitrust lawsuit I mean wiped off billions of dollars off of the market cap the stock closed down more than 4% on Thursday we have bounced back off of those lows with the stock up about a half a percentage point today but I think this underscores the potential cracks in the mag 7 that we’ve been discussing and talking about this broadening of the rally Apple’s not the only one in that camp Tesla as well we have heard from analysts that Tech is a pretty crowded space and there could be room for a potential pullback this year that’s probably uh a point that you were discussing in your good buy or good buy play and and I think the fact that Microsoft has now surpassed Apple in market cap and that mag 7 the fact that apple is going to continue to face these challenges and and as we head deeper into this antitrust competitive lawsuit I do think that we could see further pullback in some of these Tech names and these tech stocks that being said though I do think Tech continues to show some resiliency I mean it was the only major index to close in the green today and if you take a look at the sector action communication Services Tech and utilities are was at a record again today there’s one group that did not do well today and just briefly at leisure which we talked a little bit about under some pressure yeah and and this all has to come from guidance and Outlook and what’s interesting about lul lemon it’s a very high-end consumer but the CEO on the earnings call said that they’re seeing the shift in consumer Behavior which potentially signals some fatigue when it comes to demand there and then on the Nike side they have increased competition so I just wonder if this could be the end of athleisure boom that we’ve been seeing since Co now we’re a few years removed uh but these results certainly are disappointing yep thanks Al thank you Al moving on former president Donald Trump’s truth social could be a publicly traded company as early as next week after shareholders finally approved the merger with digital world acquisition stock tumbling more than 133% on the day joining us now is axio business editor Dan primac Dan it is great to have you on the show maybe start Dan walk our viewers through what this could all mean for former president Donald Trump because it does sound like Dan this could mean a potential incredible windfall for yeah it’s pretty remarkable you’re talking about billions of dollars for a company that is making single digigit millions of dollars in Revenue yeah so Trump if this thing and when this thing goes public on paper uh when it when merger passed today Trump would have been up almost 3.5 billion dollar now that’s paper value that is stock value uh it dropped as you saw on the chart went were down about 14% today so that brings him to about 2.9 billion but that’s again $2.9 billion now it’s a little bit tricky he can’t just that’s not cash in the bank that is paper stock value he is locked up for six months he can’t sell shares for six months he could get an exception from the board and the board includes his son and former members of his administration but it’s a little bit of a a dance there because if he was to do a major stock sale that in theory would tank the value of the rest of his shares so he would have to be careful about it and there are questions would there be enough market liquidity for a massive block sale yeah and there’s also the question of whether he can sort of borrow against his shares right but even that he would need some sort of waiver right uh he would and it would be a remarkable thing for someone to loan against what is really a meme stock right now uh again there’s not much of an underlying business there at the moment and even if even if you take the the asset itself aside post spack companies this is going public via spa or blank check company they’ve done really poorly as a as a group over the last couple of years so for anyone who’d be lending against this it would have to be at a hell of a rate because it would be a really surprising thing to lend against this collateral and Danel I’m just seeing Bloomberg noting here Trump media lost 49 million in the nine months through September generated only about uh 3 million in Revenue do we have any kind of line of sight into what exactly the business strategy is here going forward we really don’t and we also don’t have Q4 numbers from last year let alone obviously not q1 numbers of this year uh right now it is purely an ad business and I will tell you I was on uh the app last night and I was kind of scrolling through the only ads I was getting fed I think there might have been one for rumble but other than that the only ads I was being fed were either for the Trump campaign and it’s unclear if truth social is even being paid for those or if it’s in kind and then there were ads for today’s shareholder vote coming from dwac the the spa there was nothing else on there yeah I mean it’s interesting too the the momentum with signups has actually SL slowed down and pretty sharply from some of the um information that I was seeing cited around today according to similar web the average monthly number of global visitors has fallen or fell I guess last year um and obviously I mean it is this thing a real business I guess is kind of the question here Dan at the moment it’s not really again you know for the first nine months of last year and and remember it launched in early 22 so it’s not it’s not brand new last year for the first nine months as Josh just said it made less than $3.5 million top line that is Tiny money there are people I think with substacks who made more than that in in the first nine months of last year it is not much money particularly given that last year is also the year that Donald Trump you know launched his campaign and is always in the news he never went over to X or Twitter when he was given the opportunity by Elon Musk uh so right now there’s not much of a business but what there is is a very big fan base uh not just of trump but also of this stock kind of as a meme stock I watched the shareholder vote today on a live Rumble um uh live stream that somebody was was kind of uh programming the guy was dressed up in a in a in a pirate suit he called himself Captain dwac which is the name of the stock and there was a couple thousand people watching the thing Captain dwac Captain thanks a lot Dan that gave me a good laugh going into the weekend you have a good one appreciate your time you too thanks on the other side of the break we’re going to hear from a Reddit moderator on what the company’s IPO means for users we’ve got more Market domination overtime coming [Music] [Music] [Music] up [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] Reddit shares sliding in second day of trading giving up some of the gains seen in public debut company L customers particip participated tried to say in the IPO alongside institutional investors looking ahead Reddit execs are eyeing the next phase for the company with more Ai and advertising for a pulse on user sentiment after the platform’s market debut we have Reddit user nor Al head moderator of Wall Street bets nor it is good to see you maybe uh start by explaining to the audience nor what does what does a moderator exactly do what are kind of the roles and responsibilities there and how long have you been doing it nor sure yeah I’ve been a moderator for Wall Street bets for about nine years now and really the responsibilities are about as varied as it gets whether you’re building Bots to help maintain the sub or just browsing the subreddit as a regular user and uh uploading things you like or don’t like and removing comments and posts that break the rules it’s quite the mixed bag but all in day work of driving community and culture and so nor obviously you are a fan of Reddit because you’ve been on it for a while um did you do you think that it is a good investment as an o and did you get any shares in the IPO I wish I got shares in the IPO I am Canadian so wasn’t eligible for the DSP but a lot of fellow moderators did and congrats to them it’s up 30% since their entry um I think this is a great thing for Reddit and for Wall Street bets I think the platform is going to become a lot more vibrant and really looking forward to seeing where this goes well why do you say that nor why why are you confident that it’s going to become even more vibrant as you put it because I mean this is a company that’s been hamstrung by having to operate on a shoestring budget for basically its entire life with 750 million more in the bank who knows how many more staff they’re going to add um what kind of new Fe features they’re going to build out um I think the sky’s the limit Norris so what’s on your wish list right as a moderator as a user what are some of the changes just purely like again to your point kind of if money’s No Object How would you make Reddit a better place I think actually um Reddit has empowered us to build a lot of the stuff that we want to see and so we’ve built within Wall Street bets a whole lot of games and interactions for our community um such as band bets or um uh having sticky posts by users these are all things that Reddit has given us the ability to run off and go do and now reddit’s come out with something really cool that no one’s really talking about which is the developer platform which allows users to actually build apps within Reddit I think this is going to be the next big evolution in Reddit and again no one’s really been talking about it’s in private beta and uh it’s gonna completely change how Reddit operates I think and nor part of the excitement I think for Reddit was you know the way it’s kind of pitching itself as an AI play nor this this idea that allow third parties to to license access to data on the platform as a moderator nor what do you make of that strategy you a fan of it I I think it’s great because it incentivizes Reddit to ensure that the content on its platform is actually human it’s actually authentic because as soon as that data becomes poisoned with other autogenerated content the the the value of the whole data set goes down so this is aligning reddits incentives with the incentives of the user and keeping Reddit authentic do you think though that it sort of is teaching geni how to replace it in the longer term and sure yeah there’s no problem with that I think the ultimate goal of Reddit or Google or any of these um information categorization um systems is to present the most pertinent in information to the user um and I think there’s definitely a place where you want to talk to a human and get their perspective and then there’s times where you want to summarize the perspective of all humans and so I think it’s actually the perfect balance were you surprised nor when you when I’m just curious you know been a moderator there for a while were you surprised when you saw the company’s financials in any way you know the company’s been around so long but still was was posting a net loss around 90 million in 2023 did that surprise you nor when you saw that no not at all I think we all knew that Reddit had been losing money uh year after year for so long and I think it’s actually been reflected in the fact that ads on the platform uh really haven’t been that invasive and weren’t that invasive for a very long time they only recently within two three years um shifted from programmatic ads to direct deals which is a huge jump in um Revenue per user so they’re definitely all the way um shifting in the right way the one thing that did surprise me was or two things actually one was how little Revenue they made from Reddit premium only 2% of their revenue came from Reddit premium and two how they were actually profitable for the first time in Q4 of last year so for the first time in their 20-year lifespan they’ve had a profitable quarter nor I also want to ask you you know you’re on Wall Street bets which obviously we we in the financial media started paying a lot more attention to a couple of years ago with the sort of meme stock boom like what’s the vibe there these days what’s the hot trade give us some uh Wall Street bets Insight absolutely we’ve all been about Ai and t uh Ai and Nvidia lately um we got on the bandwagon quite early and so we’ve had a lot of people within our community realize tremendous gains on Nvidia um right now because of Reddit blowing up um and this being the IPO week we’re seeing a lot of traction around that um but at any given point we’re always highlighting the top tickers in our community that are being discussed and so today we were looking at uh dwac Nvidia and Reddit uh these were the top three and uh I think that that represents the average redditor on Wall Street bets quite accurately it represents us pretty well too nor because that’s what we’ve been talking about today also thank you so much really appreciate it have a great weekend thanks you all cheers take care time now for what to watch next week which will be a holiday shorten week with markets closed on Friday for Good Friday starting out with the FED we’re going to be getting new fed commentary throughout the week from fed Governors Lisa Cook and Christopher Waller fed chare drum Powell will cap off the week on Friday after the latest pce numbers come in plus Chicago fed president Austin gouby is speaking with Yahoo finance’s very own Jenifer sha bger that is live this Monday at 9:00 a.m. eastern on the morning brief you won’t want to miss it taking a look at economic data the latest pce reading coming out on Friday the fed’s preferred inflation gauge giving us more insight on the health of the economy an economist forecast pce will tick up slightly month over month but core pce should go down and moving over to the earnings front McCormack and Company GameStop Carnival Rumble Len and Walgreens all reporting next week Carnival will share its first quarterly results on Wednesday American Cruise Line having a slow start to the year down about 8% but closing higher today and that does it for today’s market domination overtime make sure to stream Yahoo finance this weekend on Sunday we’re going to be airing highlights from the makers conference which brought together women and allies for an unforgettable 3-day Leadership Summit you don’t want to miss that we’ve got more yaho Finance on the other side keep it right [Music] [Music] here [Music] [Music] [Music] [Music] [Music] [Music] [Music] now [Music] [Music] consumers may feel a pinch in their wallet as gas prices rise here with what’s driveing the move higher is Yahoo finances and Es foray here with with the details is yeah Josh and usually at this time of year as we’re approaching the spring or in the spring you will see oil gasoline prices I should say rather go higher and part of that has to do with that uh summer blend that is more expensive part of that is demand driven as you have more drivers that are hitting the road but what we’re seeing right now is that o gasoline prices are higher than they were at the same time last year so there’s been a bit of an acceleration when it comes to gas prices you’re looking at the national average that’s at $353 that’s almost 10 cents higher than what this was a year ago and this is despite that eia just came out with data this week showing that last week you saw gasoline demand falling so what gives well higher oil prices that is what has been driving this um accelerated Pace if you will of gasoline prices going higher and of course the higher oil prices is because of everything that has to do with the OPEC Cuts with the Russian refineries that have been interrupted because of the Ukrainian drone attacks you also have falling inventory that has increased prices look there you’re looking at West Texas intermediate above $80 a barrel and you’re also watching Brent crude that’s been trading above $85 a barrel so this has driven these prices higher there is some good news news and that is that that BP Refinery the largest in the midwest in Indiana that has been restored fully I mean you were looking at Illinois prices that in one week went up by 20 cents so you may see a sort of deceleration a little bit in those price hikes at the pump and uh so and and these prices have gone higher rather quickly so there’s some analysts that are also saying look oil is supposed to pull back a little bit from these elevated prices that we we’ve seen them M guys iness thanks a lot yeah a changing of leadership at kg Dr Pepper company’s current CEO planning to step down in the second quarter we hear from the outgoing and incoming Executives it’s on the other side of the [Music] break [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] yeah it is the end of an era curri Dr Pepper CEO Robert gamgort will be stepping aside in the second quarter and ushering in a new era with current COO Tim kofer I have them both with me right now in the Yahoo Finance New York City Studio good to see you both of you guys I appreciate you making the time I know it’s busy days for you both good to be here Bob let me let me start with you I’m generally fascinated by corporate hang um just handovers the passing of the Baton yeah how did you select Tim well we founded the company about five years ago around the insight of a pure play beverage company that could deliver a beverage anytime any place uh and the success has been tremendous our track record has been one where we’ve outperformed our peers and we’ve live delivered shareholder performance it’s way above uh what our peer set was but that’s about the past the future is really bright and at some point you need to have a transition so it’s a nice Foundation but that Foundation needs to be built upon and activated and so we needed to find somebody who understood consumers who had run companies at scale who had experience across uh dozens of categories and had the right cultural fit and we couldn’t be happier then to uh have Tim Tak over CEO for the past few months how does this work I mean do you pick his brain give me all the secrets to this company so I can execute out of the block I mean what I mean you’re an experienced executive this isn’t your first rodeo yeah I mean no doubt I mean first of all it’s obviously a privilege to join this great company it’s young it’s Dynamic uh best days still ahead um so I’m looking forward to partner ING with Bob and and learning from Bob and and our board and and all of our colleagues but you know for me as you said it’s only been a couple of quarters that I’ve been at KDP but I do bring you know over three decades of experience in broader cpg mostly in food and beverage and I can tell you two things one is I think beverage is a great space as we were talking about earlier I mean this is a huge Market 300 billion high growth and really Dynamic right it’s always changing consumer preferences so there’s always opportunities for growth and and dis ruption and the other is Bob and the team done a great job we have built an advantaged platform here at KDP the capabilities the route to market the brand portfolio got a lot going for us and I’m excited about leading the next chapter of growth what’s the biggest opportunity that you want to unlock in the second half of the year you take over in what in the second quarter second half of this year in early 2025 what are your biggest initiatives yeah well first of all you know we’ve got both a leading uh refreshment beverage business as well as on coffee business and we’ve got a great Innovation slate on both both sides on coffee we’ve actually recently announced some pretty exciting news and and I’m pumped about that you know you think about curig Kurig was really the innovator the pioneer of single served coffee 30 years ago and since then Bob and and our curig team has really listened to Consumers to understand how do we continue to innovate and disrupt that leads us to some exciting Innovation that we just uh released uh last week in terms of news one of them is an all new system that allows a consumer to make a great cup of coffee coffee shop experience whether they want an espresso cappuccino or a cold coffee I want all of them Tim yeah that’s what I’ve heard you’re a big coffee drinker true and uh and and that system is going to do it and what’s really cool about it it also delivers on a sustainability benefit that’s really important so this new system will do it plastic free and aluminum free our new Calta and KRS the other big news real quickly on the coffee side is we’re launching a a k brew and chill that’s going to allow a consumer to satisfy that cold brew experience that I know is big for you in ice coffee is that one of the things Bob holding back this coffee business it’s been under pressure the past year and a half with Millennial people drinking coffee iced coffee out of a straw they don’t want to stain their teeth drip coffee’s dead like I mean what’s what’s what’s the issue here well Co coffee is still very vibrant if you look at the the the recent consumption of coffee it’s hit a 50-year high in terms of the number of people who drink coffee but like many categories it sore during the pandemic and then we’ve had a bit of a recovery issue since then and it’s interesting because it’s a global coffee category issue um in pretty much every developed markets but we don’t sit still we still deliver all of our financial performance and commitments despite those challenges and as you’re hearing from Tim on the Innovation side we will continue to make coffee interesting and make those coffee shop experiences like cold or specialty available to everyone in their home is the coffee business back to growth this year the coffee business in total on an occasions BAS basis and aggregate is starting to recover post pandemic um and we continue to see sequential Improvement every single period and it can only help when we put Innovation like the ones that we’re talking about there in the marketplace to continue to get people excited about coffee at home Tim when did these new Brewers start hitting and how many do you expect to ship this year yeah so that that K brew and chill that’s going to give that chilled experience at home those launched this fall and then uh we have a number of other ideas coming out uh early next year like the smallest ever footprint Brewer you know that’s going to fit in any space and any budget that comes out early next year and then that new Ulta system and that plastic free and aluminum free we’re going to start beta testing that with consumers later this year to really perfect it get the continued consumer feedback and then launch it as soon as we’re ready and and sure we can do it with Excellence is there go yeah I was going to add one thing to to Brian which is also when you talk about cold coffee we’ve expanded our position and ready to drink coffee which is a growing segment so we had the partnership that we announced with an investment in lalom which is now turned into an investment in chabani and bringing that to Market that draft latte they produce is another way to attract younger consumers what Bob maybe this one’s for you why do your stock Trad a discount to some of your other beverage peers I hear what you’re doing you have a giant position in coffee you have the energy drink opportunity you’re growing internationally what ultimately unlocks the valuation on your company yeah a couple things so one is right now if you look at coffee around the globe people are a bit um concerned because of the the the post consumer the post covid Rebound with consumers I’m not the least bit worried about that given all of the bullish metrics on coffee interestingly we’ve had a journey from being a private company to a closely held company to a widely held company um we talked about this in our investor day 900 million shares over the past 5 years have been put in the market in terms of monetization of a company in public markets that’s second only in history to the US government’s monetization of AIG that’s a big number that’s a big number and we did our one of our investors had to do a block trade recently that was the largest block trade ever done so there’s no question on supply and demand there’s been a lot of supply and stock the good news is that that investor uh who was who the company who took curing private is said we’re holding on our current position which is about a 20% ownership position and to tell you how uh attractive we think the current valuation is the company has purchased over a billion dollars worth of shares so you’ll stay aggressive buying back absolutely we see this kind of value we’re opportunistic not formulaic and also more importantly I think for Mo most people is the two of us plus our CFO have bought a substantial number of shares just recently because we we just see it as an attractive entry price and it’s not because of the fundamentals of company that have we’ve outperformed our peers there’s just been a lot of supply and of stock into the market because we’ve gone from private to public uh Tim a last one to you uh there’s been so much consolidation in the space over the past five years uh during Partnerships entire companies covered I we were talking off camera about Campbell Soup buying soos’s Brands I know you know C Marla well part of your job do you think it will be to make that next key acquisition for the company and what sectors interest you yeah I mean the the last few years again Bob and the team have done a great job as you think about a buy build and partner strategy what’s so cool about uh beverages is again it’s a very Dynamic space there’ll always be new opportunities it might be in energy it might be in sports hydration ready to drink coffee I think we got a really good track record really positioned ourselves to be a preferred partner in the industry sometimes it makes sense for us to do a straightup acquisition um we’ve done that in the past we can do it again other times it makes better sense to partner get that exposure but keep that entrepreneur with the skin in the game Real Alignment to drive the business and then that still gives us allows us to do it in a more let’s say Capital responsible way still give us optionality down the road examples of that would be C4 energy recently done that we got a 34% stake in that high growth business’ got a great partnership with electr sports hydration number one in Mexico will be the ones to bring the distribution here to the US so those are great examples I think of a partnership strategy that can continue to round out a high growth portfolio Bob how are you going to handle this retirement stuff I’m you don’t strike me as a retirement type of guy so I think first of all I’m going to remain as chair of of KDP so we get the partner together for the Long Haul and um there’s a lot of interesting stuff out there all right well uh thank you for giving all a lot of time to ya Finance we appreciate appreciate Bob gam gamard uh Tim kofer good to see you and good luck in the new position appreciate it thanks thanks Brian all right much more ahead on Yahoo [Music] finance [Music] [Music] [Music] [Music] up [Music] [Music] oh [Music] [Music] when your sister run Noodle Company hits grocery shelves Nationwide when I was a kid and I was like always trying to like hide my lunch or you know just didn’t want people to come over when my mom was making something particularly aromatic fast forward to today where I get a chance to you know proudly put this in front of the the country the types of aromatic dishes Vanessa fam once tried to hide from the world are now on full display in vibrant packaging on the shelves of major retailers the Brand’s colorful journey is also on full display across the internet thanks to fam now tell the world’s attitude every time I go into the grocery store I always got to take the phone out and do like the selfie video it always feels surreal amsam is a sauce and noodle startup partnering with prominent Asian Chefs to offer premium authentic flavors this isn’t your usual microwavable instant noodles you might think of a huge step Vanessa and her sister Kim say is part of their personal mission to shake up ethnic Isles at grocery stores and bring these dishes to the mainstream but the recipe to get here well it wasn’t a simple one a global pandemic Silicon Valley Banks collapse and the challenges any 24-year-old would face leading a brand new startup all stood in the way of her vision and mission of spreading her values and culture through the love of [Music] food tell us what amsam means I mean that in itself just symbolizes so much of the mission amsam is actually based on a Vietnamese word umom and in Vietnamese it means Rowdy rambunctious rius it’s actually a negative term it’s what our parents would use when they were trying to scold us and Kim and I were really inspired by that energy what if we kind of turn that on its head and celebrate that aspect of who we are um and amsom is all about being proud and loud especially when the stereotype of asian-americans in America is kind of like submissive or docile is is our true kind of energy and Ethos and spirit while hiking in Bolivia in 2018 with her more free-spirited sister the once risk averse fam decided to lean into what she felt was her true ethos and leave her steady Consulting career behind we instantly circled around the mission and the industry and the mission is to educate on multitudes within Asian America um honor and celebrate Asian Cuisines and flavors and the industry just just had to be food because for us it was a love language it was how we first like really learned to engage with our culture as Vietnamese Americans and Daughters of refugees with nothing more than what the Two Sisters had in the bank they set out on their mission to create something unique embracing their Roots was a catalyst to create amsom as they saw an opportunity to tap into the ethnic food market which is set to reach 84.7 billion by 2034 and investors saw the opportunity too as a number of them including the co-founder of the luggage company away Jen Rubio founder of the online wedding platform Zola shanin Ma and former Whole Foods executive turned VC founder Ellie trale of new Fair Partners helped fund the fam sister’s vision for fam embracing her personality well that that was how she learned to lead the brand yeah exactly do you see yourself as more of a risk forer uh leader now do you feel like you’re tapping in to that mission I would say that the person who I was when we were first building onom is very different than the person I am today I think my proud and loud has actually been embracing who I am which is very sensitive very empathetic lots of feelings um and learning to see that that’s a huge strength as a leader if I don’t make myself wrong for that or suppress that you also founded the company at such young age I think you were what 24 I was 24 a baby a baby how did you push through that noise and say I may be young but I’m making a difference yeah I would say the loudest noise was actually my own self-doubt at the time and so so much of this journey has been actually working with my kind of inner narratives and dialogue and now I think I’m kind of my own hype woman so a hype woman with a core team who have helped her create not just food products but an environment fueled by the Brand’s identity and fam’s own energetic Outlook something she has embedded in the culture everybody here is incredibly talented incredibly driven and I think enlivened by the mission of omsa and I absolutely lean on the team I think you know a strong leader AB must and should trust and empower those that work with them I learn from the team every single [Music] day fam’s journey in starting amsom has definitely been a learning experience as they sought out the right manufacturing partner which they found in Chicago back in Brooklyn another huge lesson came their way how to launch a specialty food business in the middle of a global Pand pmic when we started out building omsom we were just widey we didn’t know what could come and before we even launched the first Big Challenge came do we launch in the midst of this pandemic at the start of it or do we pause and wait it out and what we realize is that folks during this time are going to be at home they’re going to be wanting to feel a sense of connection and home and we felt like you that’s what amon’s all about I think we did make the right decision just some folks warning us uh that it could be a difficult time who were those folks were those investors those people who backed you how did you push over that one of my philosophies as as a leader is you know you’ve got this whole kind of network of folks whether they’re investors or you know other folks and I believe it’s so important to you know take in their input their advice and their experience like a sponge but at the end of the day coming together with you know your your team centering your value and finding the best path forward for the company is really you know that power is yours we decided this was the time that we wanted to bring this company to the world just 3 years after launching during Co fam faced another major obstacle Regulators shut down Silicon Valley Bank the FDIC has taken control of the bank deposits so what’s the Fallout the Ripple effects leaving the startup without access to their Capital right before the brand was scheduled to launch their second product line Saucy noodle nothing can really prepare you for that type of you know uncertainty I immediately had to figure out what our options were and at the same time Kim and I started working together on how we wanted to communicate what was going on to our community we wanted to Center our values around transparency um and around bringing them in fam her sister were transparent with their community in a way that you might expect from The Young Founders on social media we did not know what would happen in the coming days and so we put our heads together that Saturday morning and wrote something from the heart running a proud and loud business doesn’t always mean being celebratory so let’s talk about how svb’s collapse poses a major existential threat to many small businesses including omsom I think while we were still very scared and nervous we felt deeply heartened by the people that showed up for us talk about what values you hold closest to you as a leader one of the values that I’ve really centered in my journey as a leader is being heart forward which is something that I don’t think was necessarily historically celebrated in leadership you know it was about being you know decisive being kind of just like leading with certainty and confidence sometimes at the expense of your humanity and I I feel like at the early stages of my journey I tried that on and I was always making mistakes when I was in that you know head space of being something that I wasn’t and so the last couple of years I’ve started to accept more of who I am in my leadership if I’m you know working on something in my own journey I I’m open to sharing that and I hope that that kind of invites people to feel confident and accepted in who they are at omom 2 when your team thinks of you as a leader what do you hope is the message that you’re getting across I really hope that every everybody at omsom feels valued for who they are and what they bring to the table and that they feel they have room to learn to sometimes make mistakes it’s about celebrating your truth and exactly what makes you you I want amsom to be the type of place where people are learning and expanding but also feeling great pride in their kind of natural strengths Famer team are determined to fill white space think Cava and how it’s setting out to fill the white space for fast casual Mediterranean food or what Chipotle has done for fast casual Mexican Cuisine and now amsom aims to fill the void for premium authentic Asian flavors in the packaged food market that market is expected to grow around 50% globally by 2030 and while amsam doesn’t disclose its finances publicly the suggested retail price for its Saucy noodles and its cooking sauces range from nearly $4 to5 since launch the brand has sold 4 million products and expanded its presence to over 2,000 stores without losing sight of its roots fam isn’t satisfied yet though far from it she wants in her own words proud and loud Asian flavers to be mainstream I want to see amsom become a cultural force a household name that continues to honor Asian-American communities and flavors and culture every single day I want us to be in homes across the country but still hold that ethos and that heart that we do today an ethos in heart that famine or sister inherited from their parents who as refugees weren’t able to take the same kinds of risks your parents must be so proud of you what do you think they think about all that you have done they tell us all the time which I really appreciate they tell us that we are honoring our family history by the work that we do and because they’re refugees and they’ve you know built the life we have today I it is my you know biggest life stream to honor them and do right by them if there was one moment that really felt like wow I made it we did it what would that moment be it’s when we’ve shown the people who helped get us here what we’ve done and so it’s really my grandparents we were featured in a spread in L Vietnam and it’s written in Vietnamese so I cannot wait to bring it to them because they can read it and really understand that and that’ll be the moment I think when it really hits me you know what’s what we’ve [Music] accomplished [Music] [Music] [Music] [Music] [Music] m [Music] [Music]
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US stocks closed mixed on Friday with the the tech-heavy Nasdaq Composite (^IXIC) logging a fresh record high as the prospect of a reversal from interest rate hikes buoyed investors’ spirits.
The Nasdaq, which opened the day in the red, flipped into positive territory by mid-afternoon to close up about 0.2%. The Dow Jones Industrial Average (^DJI), which is eyeing the key 40,000 mark, fell about 0.7% while the benchmark S&P 500 (^GSPC) slipped 0.1%.
The gauges secured solid weekly gains, having racked up all-time closing highs after the Federal Reserve soothed worries it might scale back its forecast for rate cuts this year. Optimism that borrowing costs have peaked is also riding high on signs other big central banks are ready to pivot.
Among corporates, FedEx (FDX) shares jumped about 7% after operating margins at the parcel giant’s largest unit improved amid a profit beat. But Nike (NKE) shares slid about 7% as the market absorbed disappointing sales guidance in its mixed results.
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