10 year, 4.43, even as kashkari has been on the tape this hour talking about the housing market and maybe the neutral rate of inflation. also saying the bar to raise rates may be high, but it's not infinite we'll see how that works out a three-year note auction on the way in about an hour let's get to the judge and "the half." carl, thanks so much welcome to "the halftime report." i'm scott wapner front and center this hour, the state of the growth trade as a committee member makes a big move in the space today and headliner, brad gerstner joins us with his outlook today as well joining me for the hour, josh brown, joe terranova, stephanie link, jason snipe. we do check the markets here green across the board we do have the s&p up three days in a row coming into today we're looking to build on that almost a 5200, yield, as carl said, 10 year is down, 4.43. we'll watch all that we're going to get into the growth trade i do want to get a trade, though, because we begin with a

"halftime" trade alert from bill baruch he does join us because he has bought crowdstrike why did you do that? good to have you on. tell us about this trade and why you decided now is the right time >> thanks for having me on we know crowdstrike had a big reaction after the earnings report earlier this year, and then it sold off pretty well we stayed away from traditional cyber security over the last year, and really missed a name like this in the bull market in 2023 not saying we have quite a bit of exposure in names like nvidia and others, but one of the reasons why i stayed away from traditional cyber security was a fear that the hyper scalers were going to roll out a really competitive edge in the securities space and useers that were already on their platforms would begin adopting such. anecdotally, i had a conversation with dan ives earlier this year in february and addsked him how he feels abu

it there's nobody better to ask his response to me was, i've been getting that question ever since tom brady was playing football in michigan i think that spoke a lot to me and really, at that moment, i realized i need to get exposure in a name like crowdstrike and look to doing it on a pullback so we have this broad market pullback, and getting into crowdstrike here gives it a month before the earnings and the market broadly has sold off. i think it's really well positioned and then you hear about warren buffett over the weekend talking about a.i. and how there's going to be -- there's a.i. increases the risk of scamming and i see this in a normal everyday life all the time, the risk there i think having exposure in the space is extremely important, and then we talk about crowdstrike more specifically, they have beat earnings -- eps and revenue -- oeight of the las

quarters i'm excited to be an owner of crowdstrike now. >> interesting you're joining the club, so to speak. josh brown, you've been in this name a long time what do you make of the move right here >> well, i obviously agree with it i've been long this name since the summer of 2020 it's up 400% it is the best performer of the larger cap security names. i believe that quality in the space matters. i don't think there are going to be ten relevant companies for very much longer, because if you're a fortune 500 company or you're a large governmental body or a municipal agency, if your reputation is on the line, ultimately you will end up choosing the highest quality provider so you don't go -- so you don't lose your job. you don't destroy your reputation as a professional so we've seen that in this space over the decades, this new generation of a.i.-enabled

machine learning enable d requires that you have a large concentration of users and crowdstrike has figured out that equation. they've done so for a long time. and i think that's why, ultimately, you're going to see a lot of concentration of customers at the larger companies. i think this is best in breed, and i think george kurtz is a genius i'm a longtime shareholder here. congratulations to new nvestor in the name. i hope it continues. >> joe, you're in it, too, along with palo alto this is the one you've been playing for a while, too >> holding on and letting your winners ride is exactly what's unfolded here with crowdstrike, and crowdstrike has had a very strong recovery. let's remember where we were on the cyber security trade in february palo alto that significant decline for palo alto. palo alto has not come back as strongly as crowdstrike has.

it was recently added to the joet etf i've owned it personally for quite some time, and i'm basically all in on the cyber security trade >> look, the dud of the group, so to speak, has been fortinet year to date, it's flat relative to crowd, up 23% stephanie link, you bought more of this name, right? fortinet when did you do this today? >> when they reported on thursday night, the stock was down 9%. i thought it was overdone. i think earnings season gives you opportunity. i had cash on the sidelines to put to work, and that's exactly what i'm doing this company, they beat total revenues by 120 basis points relative to consensus. but services, the migration to services, is so important for this story, because it helps on the margin side. and services grew 24%. margins 87.9%, up 200 basis points year over year in this segment. as this grows, you're going to see better margins as well free cash flow of margins of 45%

impressive why was the stock down billings fell 6% if you look at current billings, they were up it's a timing thing,my mind, and i think they have this price performance edge, and they are going to gain market share over time i totally agree to josh's point on vendor consolidation for the industry you have a million companies out there right now, and none of them are talking to each other, and that's why we have so many problems in cyber security you have even cyber security companies having cyber attacks on themselves. so i think you're going to see the big five, maybe seven players, get bigger and bigger over time. i like this total addressable market i think it's just as exciting, in a bad way, of course, but just as excitingas a.i >> good stuff. i'm glad we started that way bill, thank you. we'll see you soon, obviously. you have a lot of growthy names in the news today. palantir down a lot. that's after a weak guidance joe, you got that.

data dogs down a bunch you got that service now is in the news as well, reiterated at goldman sachs. these growthy names getting play today and what it means for the trade overall. >> in the case of palantir and data dog, you're talking about two companies that came into the quarter with very, very high expectations just in terms of the ownership we have in the joet etf with this palantir we purchased at $16 the end of january. data dog we purchased just at the end of april, so you know which one looks better than the other one. in the case of palantir, it's really you want to phone cuss on the growth in the commercial segment, a company that traditionally you think about the revenue growth coming from the exposure to government itself i think the problem with palantir, along with having high expectations, is the free cash flow generation declines significantly, down 50% here so you have to think about this stock similar to what you heard from meta. where they're telling you,

listen, we're going out, but we're spending on artificial intelligence platform. we have to make that spend on a.i. i think the position here, the right position, if you own it, say, you have to be patient in the case of palantir you can't expect much in the near term. you're a long-term shareholder, and i think that's what you're playing for. in the case daf aof data dog, te president is stepping down that's a little bit troublesome. i think when you look at the guidance, the guidance was a little bit soft here, and you have to call into question i would be less excited about going in and buying data dog. >> jason snipe, do you want to talk about it after the analyst day was earlier this week? >> service now is one of our favorite software plays. they had a really nice print, 44% eps growth, about 24% revenue growth now i think some of the price action has been somewhat soft because the guy was a little bit more modest than what the street had anticipated. the stock is relatively flat for

the year but is up 63% in a year it's down 10% the last three months they're spending a lot of money on r&d right now, and i think we will see followthrough >> snowflake is another name we'll keep our eye on. negative for the year, steph, that's yours gerstner has it. we'll talk to him in a little bit, too what do you make of this name? >> there were high expectations. there is for all of these names and they're not cheap. that's the problem but i still think the guidance with this one is product revenue growth of 22%. it does not include any new products in the last couple of weeks, the company has quietly introduced new products i think they are going to gain momentum you have the ceo change. i think the new ceo has amazing remarks from just about everybody on the technology front and the execution front, and i think under his leadership you're going to see product come to market faster than in the past, and that will be a

positive as well not cheap at all but down 32% from when it reported earnings >> cheaper >> it is cheaper we buy low and sell high i'm not going to apologize for that >> this guy over here -- >> works for me. we do have breaking news and i want to get to julia boorstin regarding news developing around tiktok what are we learning here? >> well, scott, tiktok has sued the u.s. government saying that the ban that the u.s. government is imposing violates the first amendment. they also say that invoking national security concerns is not a good enough reason to restrict this free speech for the 170 million americans they say are on the platform. i just want to mention two key things here from this lawsuit. they say that the protect americans from foreign adversary controlled act is unconstitutional and that banning tiktok is, quote, so obviously unconstitutional, in fact, that even the sponsors recognize the reality and have tried mightily to depict the law not as a ban but as a regulation of tiktok's ownership.

they go on to say that there's no choice to divest tiktok they say the qualified divestiture demanded by the act to allow tiktok to continue operating in the united states is simply not possible, not commercially, not technically, not legally, and certainly not on the 270-day time line required by the act. so what they're saying here is that the option of divesting is not really an option this is, in effect, a ban, and that is the underlying argument here in this lawsuit against the u.s. government. back over to you >> julia, i appreciate that. tiktok says essentially, leave us alone by the way, in the new cnbc youth and money poll that we did, 70% -- 70% polled said the government should leave it alone. only 30% suggest they should ban it that's another story that we'll hit brad gerstner with in a moment we see meta on the trade is higher but it has been we are watching snap as well

we're talking about the growth type trades. adam parker today has an interesting note in which he says to technology investing is getting riskier as the performance of high quality growth has worked, there's no increase in risk the high quality growth stock is 40% higher than the growth stocks in other sectors. to the extent there's a market correction, these stocks are likely to materially underperform the market. jason snipe, i give you that josh, i want your take on this, too. jason snipe first. >> i think -- i mean, there's a couple ways i think about this question i think one is, you know, yes, i think fundamentally this could play a role with the algos and higher beta there could be tradeoff if i back up and think how mega cap tech stocks have been defined via the cycle since october of last year, i think right now as an example they're a safe haven i think you've seen some run-up.

may has been a strong month. i get what adam is saying here, but i think we have to pay more attention to the fundamentals for big tech given the cycle we're in now. >> josh, do you want to take a stab at this one, that investing in technology stocks and that part of the market is getting riskier, you have the concentration, you have high beta, and if there is an eventual market correction that's larger than the 5% one we just had, then this is going to be ground zero for that pullback >> adam parker speaks to institutions and hedge funds it's really important for me to point that out, because when he uses the term risk, it's being used in a way that's different from the typical person investing in a retirement portfolio. if you're an institutional investor, a professional asset manager, a fund manager, a hedge fund, the way you think about risk is beta so how much will these stocks deviate in one direction or the

other? how much more will they move versus the overall market? and so if you think of a high beta stock and you think of a correction in the s&p of 5% or 10%, if you have that high beta stock that is a 1.5 or 1.7, you're going to get a pronounced move to the down side during that correction. so adam is right the higher these stocks go, the more wild we'll see them behave when the market turns lower. i don't consider that to be actual risk in the context of investing for the long term in a retirement portfolio in the case of investors who are trying to buy stocks that they think over the next five years, ten years, will perform well, short-term volatility is not their risk their risk is running out of money over the longer term so it's not a black and white yes or no, does adam have a point, he absolutely has a point. the question is, who should be paying attention to things like

that now, if you're retail, a mom and pop, and you have a whole portfolio filled with high beta stocks and you don't have anything low beta to offset that, you're going to have a rockier ride than you need to. he raises an important point i think it should be reacted to differently depending on who is listening to what he's saying. >> good point. by the way, we as investors, continue to buy tech stocks, growth stocks. bofa buying streak continues in telecom. you've had buyers 26 of the last 27 weeks inflows in technology seven of the last nine weeks. they're buying nvidia again. that stock has gone from 750 to back above 900 in the span of, i don't know, kristina partsinevelos is here to take a quick look at that the stock traded down. now it's back. >> up 217% in the last year. it was trading at 239 a year ago. it's incredible now it's at 913. there's two reasons for the bump

the first is supply has improved the cfo, the ceo previously at events, them said the supply is improving for blackwell, for harper products. the second thing is the demand increases that are coming from hyper scalers that are promising to spend billions of dollars on their a.i. infrastructure which means they're going to have to buy gpus but you look at the share price today, what, down -- and these are just the latest price targets. everybody is lifting their estimates. goldman sachs $1,100 the issue today is this concern around apple's project ac/dc, their own custom silicon chip which is a server, so it's a cpu, central processing unit it doesn't directly compete with nvidia yes, they do both work on inferencing, the second participate of training, but long term this could be a problem. short term maybe this reaction is a little bit overdone right now because nvidia has a strong hold over the market, and apple said they've been working on it for years, and this could take longer, too.

>> that's good perspective we appreciate that thank you, kristina partsinevelos. jensen huang will be on "overtime" tomorrow, the nvidia ceo. stan druckenmiller today said he trimmed his stake in march said a.i. may be overhyped in the short term eric schmidt was also on "squawk box" and called a.i. underhyped. let's settle it and bring in brad gerstner, exclusively from altimeter, via the milken conference in l.a. welcome back it's great to catch up with you. what has become an annual tradition of ours. >> it's great to be here, scott. it's great to be with you. >> i'm sure a.i. is getting a bunch of the conversation out there, rightfully so why don't you weigh in on that for starters since i know nvidia is a large position of yours we talk a.i. so often when we're together druckenmiller trims it, says overhyped. schmidt says overall a.i. is underhyped what does brad gerstner think? >> right well, you know, let me comment

on this by maybe telescoping out a little bit, scott, and reflecting on what josh also just shared. year to date, nvidia is up about 75%. meta is up about 35% google and amazon about 20 or 25%. microsoft, 10% think about the backdrop everybody knows that a.i. is driving these essential use cases in enterprises, but we also know that we started the year expecting six rate cuts now we're down to maybe zero rate cuts and larry summers just a couple weeks ago saying the next move may be up. we have the 10 year that's gone from 3.9 to 4.7. we have an election coming up and the potential that the corporate tax rate cuts from 2017 will expire, not the potential, they, in fact, will expire at the end of 2025 unless extended and those represent a meaningful part of the growth in the s&p 500. and then we have warren buffett over the weekend saying i'm trimming my position i'm compounding cash at 5.4%

because i'm worried about that backdrop so, you know, when we talk about risk or we talk about technology, it's important to say we have to look at the hands that we're dealt all of these stocks are up a lot to start this year, and the backdrop has gotten a little worse. so i agree with josh that if you want to take a little bit off the table today, you know, just reflecting on the fact you've achieved a year's worth of returns in the first few months of the year, i think that makes sense. with that backdrop clearly nvidia is the market leader, the reason the stock is at 900 isn't because we're in a bubble. it started the year trading in the low 20s. today it's trading closer to 30 times earnings that's because every hyper scaler in the world has increased their capex on nvidia whether it's tesla, amazon, microsoft, meta. every company is investing more and, remember, jensen himself said there's going to be $2 trillion of data center

replacement over the next four to five years. this is not a one-year phenomenon this is not a one quarter phenomenon and despite all of the talk about custom out of amazon, meta or apple, today and in 2025, the most sought after silicon in the world to power all of a.i., training and inference, is nvidia >> you've been incredibly transparent with us about your positioning at the very time we have these conversations which we do every few months or so given what you just said, how does it look right now for you when your largest holdings are the metas, the nvidias, the microsofts, the amazons, snowflakes, et cetera? how do you look right now? >> well, we've taken down our own exposure by 1,000 to 2,000 basis points in our hedge fund and long only fund, right, and done that by adding shorts, custom basket shorts we're worried about some things in the world as well as reducing

some of the overall position sizes. again, this isn't about all or none this isn't about 100% net long or zero percent. this is going from 80% net long to start the year to something closer to 60% net long today, and, to be honest, it's the exact same thing warren buffett told us over the weekend and i think when folks come on the show oftentimes, they'll talk about a stock, and people think they're always 100% invested that's not the case. when the market is up this much to start the year, when the backdrop is this volatile, i think it makes sense to trim a little that's what we've done across our portfolios >> these stocks have done so incredibly well, the ones we're talking about, but there was the pullback in april that had us re-assessing the trajectory or at least the flight path of those stocks in the near term. but here we are rallying back yet again. i'm wondering whether you think the worst in the growth

pullback, the mega cap pullback, is behind us, or are you still concerned that we have some ahead of us? i go back to what adam parker was sending to his institutional clients, speaking to people like yourself about if there's a market correction, these high quality growth tech stocks are likely to materially underperform >> i think it's a stock picker's market, scott. you have nvidia up 75% and you have tesla down 27% on the year. so i don't think this is a market that's going to treat all companies equally. you just spent a bunch of time talking about software, whether it's data dog or crowd strike or snowflake, et cetera the software index is trading 15% to 20% below its ten-year average multiple, right? so this has been a market that's been driven in technology by the re-acceleration caused by a.i. so if we just look at the hyper scalers in the quarter, they added $7 billion in aggregate of net new revenue. apply a 10x multiple to that,

that's 70 billion in aggregate market cap because of the revenue added in the quarter to those companies. but if you're not beating your numbers, if you're not raising your guidance, given the elevated multiples of some stocks, they will be sold off. all i'm suggesting is, you know, this is not a market where everything is going to be treated equally. and, frankly, things outside of technology, i think one ought to be worried about as well we see, again, the higher interest rates weighing on the low end of the consumer spectrum, whether those are restaurant stocks or other stocks that cater to the low end of the economy those stocks are coming under pressure so, you know, that's our general perspective. we want to be in the names like nvidia that are re-accelerating, in names like amazon and google and microsoft and snowflake that we believe are re-accelerating it's only with that re-acceleration, only if the numbers are going up for those companies that the stocks are going to work. >> what about meta

what did you make of the post earnings pullback? it's had a recovery obviously, but april was the worst month since october of '22 >> if we reflect when i sat in this chair, you know, in 2022, scott that company did $22 billion in net income in 2022, two years ago. this year they'll do $55 billion in net income. it's the single greatest beneficiary of the a.i. boom because a.i. powers all of their engagement whether it's videos they're showing you on instagram or facebook or the monetization, the targeting they're providing to their advertisers and then what did we learn in the quarter? meta launched lama three, the most performative on the planet. it's done what chatgpt does but with 90% less cost and a smaller footprint so it's working faster for inference for a lot of

companies. both in terms of what they already have and what they're putting into the market, and then they launched a.i. search across platforms whatsapp, they touched 3 billion customers. they came out in the quarter and said, you know, they grew 27%. their guidance was maybe a little bit softer than people expected but still ahead of sell side consensus and then they said they would spend $3 billion more on capex i think $38 billion in capex they told us where they're going to spend it. they will double down on a.i., triple down on a.i. because it's working. we know the payback that's coming from a.i. and so itweeted about it and i said as a long-term share hold they are is radically different than 2022. the company is the most fit and efficient company of the big cap in tech today. remember, they went from 85,000 employees to 69,000 employees in this quarter, and so the fact they're investing more in the things driving all the growth in the company is exactly what they should do and exactly whyyou

want a founder like mark zuckerberg leading the company >> we're going to take a quick break, pay some bills. we'll come back and continue our conversation he lot to get to yet. brad gerstner joining us again in two minutes ameritrade is now part of schwab. bringing you an elevated experience, tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly. we put our heart into celebrating moms. we are local farmers, bakers, florists and makers who

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in los angeles so let's pick up our conversation on alphabet, because i do find this so interesting. how our conversations and how your own thinking has evolved, i think, is the best way to put that negative for a while, you sold your position, critical of the ceo and their road ahead in a.i. and then the dislocation in the stock. you bought it back i'm assuming you still hold it correct me if that's different and i bring it up in the context of the most recent letter from dan loeb who said, by the way, they used that dislocation in the stock, also, to build a position in alphabet in which he says in early march gemini's initial blunders further contributed to the narrative that alphabet will end up an a.i. loser assigning privacy to a small operational misstep while demoting the fact the company has been building world-class capabilities in a.i. for over a decade created an attractive entry point for a long-term investor can you just opine on sort of

where your own thinking on alphabet is? clearly the market thought that that pullback was well overdone and over the last 12 months it's done incredibly well >> yeah, i've been consistent, scott, on your show to say it's an extraordinary business that needed to get fit and focused. it was slow to do that the fact of the matter is, we did buy it back around $130 a share because they came out after those gemini blunders and said we're going to make structural changes and sundar said they're going to make structural changes, and, in fact, that's what we heard on the call we think there are more to come. they're still in a great position there's still a lot they can do to trim and get fit over at google and get the fly wheel going. we are impressed by the agi searches they discussed in the quarter. both the rate at which they're moving to a.i.-enhanced searching but the monetization

of those searches coming in at basically the same monetization as they're seeing in core search they're going to be a dog in this hunt. remember what i say, scott, it's not that google can't compete. it's simply they've enjoyed a 99% monopoly on search and search monetization over the course of the last decade, and now they're going to have competition -- competition from apple and meta and chatgpt, et cetera i just think we ought to be eyes wide open to that fact, but, listen, google is moving in the right direction. google cloud re-accelerated in the quarter. and so i'm going to continue to push on -- i had dinner with dan the other night. i'm a huge fan of dan, and i think his analysis is spot on. we're going to continue, you know, to suggest that the company has more they can do i'll leave that to dan, but, yeah, we think they've come a long way >> all right you have a knack at lighting a fire under these companies at the right time you can put this on the list,

too, after meta, and we all know how that story is turning out. now joe terranova is sitting next to me is in alphabet and other stocks, of course, you have in your own book. i want to bring him into the conversation joe? >> brad, so clearly in the near term you're seeing an improvement in terms of sentiment and positioning as it relates to alphabet. i think positioning coming into the year was the one mag seven stock where the hedge fund and speculative community maybe was slightly underweight now we're rebuilding that, up 13%. it looks good. but i have to ask you this question, i wrote a phenomenal note at goldman sachs over the weekend citing his regulatory concern surrounding the doj and the ftc filing five lawsuits basically against these mega cap companies, the apples, the googles, the amazon. his fear was maybe we're complacent about it. i know inmy instance i've been x complacent about it. could it restrict the growth in

the same way that it happened with microsoft in the '98-'04 experience >> that's something we ought to be very, very concerned about from a regulatory perspective, but i'm not so sure that we need to be any more concerned about it from an nvestor perspective here is why i say that these companies are trading at 18 to 21 times fully taxed earnings it's already priced into the stocks if they were to be broken up, a lot of the value probably would be higher in terms of the sum of the parts. but i'm more concerned because i think regulatory interference with these companies who are the leaders in a.i. are giving us national strategic advantage, and i think hindering that progress to the detriment of consumers and of the country and so i think it's important that washington does not play a heavy hand in terms of trying to break up these companies i, frankly, have seen washington go the other direction i was just there last wednesday

with a lot of leaders from silicon valley i think they're taking a balanced approach to regulation. i think they're taking a balanced approach to a.i., but we have to continue to make our voices heard, and i think the regulatory establishment and certainly the national security establishment in washington understands the advantage and the importance of the united states leading in a.i., and they know these companies are the headquarters of that innovation. >> talk about, i guess, regulatory issues. another stock in your book that just killed it and we have ownership in our committee, as i know that you know, uber their earnings will be tomorrow morning. what are your expectations for this one now >> look at uber year over year going to go from 165 billion in revenue to 190 billion in revenue, growing high teens, margins expanding. they are driving more and more efficiency into the business, more and more nickels and dimes out of the billions of rides

they provide every quarter i'm at the milken conference i think attendance is up 25% year over year it's an unbelievable number of ubers rolling around this place. they're the global dominant player in mobility and increasingly in food delivery, i think they had an announcement out about a deal with instacart on ubereats, another manifestation of that market leadership i said on our podcast recently that i expected that uber would, in fact, some day be allowing you to book tesla autonomous rides on uber. we'll see whether or not that transpires market leadership is paying off. their efficiency drive is paying off. we expect to see continued good numbers both top line and bottom line tomorrow. >> you have a small position, speaking of driving autonomous driving and the like in tesla, which you revealed on our program the last time we spoke what takes it from a, quote,

unquote, small position to something larger what do you need to see from elon and that company from here? >> well, first, let me say i think elon has done an extraordinary job, and i think his advantage in a.i. and full self-driving relative to all the other manufacturers in the world is deeply under appreciated. a chatgpt moment for self-driving after ten years of marginal improvements, we had a profound breakthrough around the imitation learning i think that will be an incredible asset to the company. i don't think it's an asset that can be replicated by other oems. they lack the data this is data in, pixels in and control playing out. unless you have the data, you're going to have a very hard time catching tesla in full self-driving i don't think byd will be able to play in that game either. i thought it was fascinating at the moment that the united states is banning tiktok that the chinese government is

providing permission to tesla to do full self-driving in china. it shows the resilience and the strength of the relationships that elon musk has in china, that tesla has in china, and their own push toward a.i. i think you can't think of the company as an auto company you have to think it have as a technology company today we think that it's fully valued it's been a volatile ride. but we think this may be one of the companies that can break through on energy, can break through on a.i. and fsd, and so we're paying very close attention. if we start to see the adoption and conversion we think is possible, this will be a story like apple and services where services becomes an increasingly important part of their profit makeup >> you're an investor in bytedance. we had news with julia boorstin of this lawsuit by tiktok against the u.s. government. i read you the results of our youth poll here which suggests

that 70% of those say the government should leave tiktok alone. how do you see this playing out? and, i mean, i'm sure you've run into steve mnuchin over at milken, too, by the way, on the network a short time ago, who has an interest in the future of this company as well >> i mean, let me start by saying this. i'm an american, an american patriot first. if i thought tiktok was sending data back to the chinese government to coerce u.s. behavior, then it should be banned but i also believe what makes the united states different than china is due process we have a rule of law in this country, and so i, for one, am happy we have companies like bytedance that can appeal to the u.s. courts and have their day in court if they can't prove their case, they ought to lose their case. and so, you know, listen, we're going to allow this to play out, because we're the united states

of america, we're the most vibrant system of capitalism in the world because we don't just throw companies out of the country. we allow them to have their day in court with all of that said, my expectation is increasing that we'll have some negotiated settlement to the situation with bytedance. remember, i think the chinese government ownership is less than 30% in order to get full ownership of tiktok into u.s. hands, i think there's a bun of potential buyers for that piece of the business over 50% is outside investors, many of them u.s. investors, i think 40% u.s. ownership and certainly the incredible founder of the company who is based in singapore, owns about 20% of the business and so the bite, if you will, in order to take out chinese ownership and u.s. tiktok, is not that significant and hopefully they can get that done i think they're going to get their day in court i think it's a flip of a coin

whether or not that is successful even if it is, scott, it will just go back to the u.s. congress and they'll more narrowly taylor the law. and the final thing i want to say on this, a lot of my friends at milken says it's great, we will get rid of tiktok because my kids are addicted to tiktok i have a 15-year-old and a 12-year-old boy as well, and i will tell you this just because you get rid of tiktok doesn't mean that social media is solved. i asked my 15-year-old, what are you going to do? no big deal. i'll watch it on reels the same content exists on reels, it exists on youtube shorts, and if we, as a society, want to regulate social media for kids under the age of 14, we want to require that 30% of the content is educational like they do in china, then that's a separate matter that needs to be addressed. that's not going to be addressed by simply banning tiktok >> before i let you run, and i mentioned mr. mnuchin's name, you happen to be on a panel with

him along with john hope ryan tomorrow about your invest america idea you've expressed on numerous occasions here on this program. can you give us an update on where that stands? you alluded to the fact were you in d.c. last week. i don't think that's by accident, and i'm sure you had conversations about this topic with law makers in d.c fill us in >> well, it's incredible momentum at a moment in time where less than hatch of people under the age of 40 believe in free enterprise and free market capitalism, but because 70% of people do not enjoy the upside of compounding, it's no surprise to me you look at college campuses today, and we see people who are misaligned with the greatness of free enterprise and free market capitalism we have a simple plan, as you know, scott. i've talked about it on air. 3.7 million children born a year, they give us a social security number. they ought to get a private

account that acts as a 401(k) from birth you just showed michael doe, lee a su, they say they will contribute to the accounts of the kids of their employees. so we're going to take that $1,000 and we're going to grow it at the age of 30 it will be over $250,000 at the age of 50, $1 million we'll talk about the societal consequences, higher graduation rates from high school and college. higher savings rate, and when you look at the cost to the federal government, if you assume we apply a capital-gains tax to these accounts when you go to sell the accounts, whether you're selling 20% to pay for college or buy a home or start a business, that tax will more than offset the nominal contribution by the federal

government so we have two incredible economic researchers, kevin hassett under trump, rob shapiro, a major economic adviser to president clinton, have come together with milken and invest america to draft the research that supports the case. this is as close to a free lunch as the federal government gets it can have a transformative effect in unifying the country, and it will cost the federal government next to nothing to implement. >> appreciate the update very much by the way, john hope ryan will be on "last call" tonight as well from out there. so we'll look forward to that interview as well. appreciate the time, as always, brad thank you so much. >> it's great to be with you, guys great to see you >> the headlines now with bert yeah coombs and more trades on the other side of that president biden delivered

the keynote adrets at the holocaust remembrance about anti-semitism in the u.s. and abroad the president said too many people denied or rationalized the horrors of the holocaust, adding that some are also forgetting the atrocities by hamas on october 7th adult film star stormy daniels continues her testimony in donald trump's criminal hush money trial describing the alleged sexual encounter with the former president that led to the hush money payment daniels also testified that while she wasn't threatened by trump, she felt there was a power imbalance twbetween the t. and the boy scouts of america is changing its name for the first time in its 114-year history. the organization announced today that it will become scouting america, in an effort to be more inclusive. it comes as the organization tries to emerge from bankruptcy after compensating more than 80,000 victims of sexual abuse

scott, back over to you. coming up, a handful of committee stocks on the move today, which means we have a lot of trades still ahead. we're back after this. we see you. athletes. investment bankers. doctors.

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committee stocks on the move goldman sachs, mr. snipe, has hit another all-time high, up 15% year to date it's up 35% over the last 12 months i tell you things you already know undoubtedly the price target today to $504 at wells fargo >> listen, goldman has really seen sequential growth in equity and debt business. obviously i.b. is coming back in play i think we saw a couple false starts in 2023 it's nice to see some followthrough. i think the big thing for me is they have exited and that's why we're seeing the price action we've seen the last couple of months >> steph, target got upgraded a buy from neutral the price target stays at 180.

you have to be, i think, discerning within that space in the here and now, do you not >> absolutely but this is all about the margin recovery story. they're guiding to 5.7% and eby the margin for the year, they did 6% in 2019, so precovid. i think they can get back to 6%. i think as a result the earnings power, something like $10 to $11 a share, the stock trades at 16 times. walmart trades at 25 times i just think that's too wide of a gap and, in addition, they're making major strides with inventory reductions, lower markdowns and higher private label so that, too, should help margins. doing all of this while we're waiting for revenues to start to see an improvement all right. we'll take a quick break, come back and talk about powering your portfolio how the committee is playing the next big wave of a.i. opportunits. 'ldonet xtie

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we have a news alert out of washington. >> president biden will be meeting this afternoon with group of eight ceos at the white house. the white house says they'll be talking about the u.s. and the global economy and the president will be discussing his strategy of investing in america and rebuilding we have eight ceos in manufacturing, banking scott kirby from united airlines and others at the white house this afternoon discussing the global economy and the president's economic policies. we'll bring more details when we have them. vistra energy fuels strong demand for electricity we talked about this yesterday

i referenced that new dan lobe letter vistra was a new position for them as well a lot of people are talking about this as maybe these traditional ai plays are tapped out. time to look around for something else. >> it is very powerful in the industrial industry. >> pardon the pun? >> i didn't even think about that between now and 2050 we're going to spend $4 trillion on this effort in terms of upgrading the grid, power, clean, green, the whole thing. that's a lot of tailwinds behind these companies. when i listen to conference calls from earnings, the ceos were even surprised at the

demand in terms of all the need for power for data center. of course, their backlogs were up double digit, asame thing wit eaton, talking about electrification being very important. aviation also seeing a big demand lift. they also talked about power loads steepening in terms of demand i think all three of them on any day you see some weakness, vernova is appreciated i like all three >> joe, i mentioned lobe in his letter talks about electricity demand poised for significant growth for the first time in decades. he's obviously talking about vistra and this ai arms race. >> you can't ignore the outperformance of unites quarter

to date. it's up 5% relative to other sectors. i'm looking at southern company. this afternoon i'll be meeting with our uvenitilities man and t his vie w on it. >> final trades are next at pgim, finding opportunity in fixed income today, helps secure tomorrow. our time-tested fixed income suite, backed by over 145 years of risk experience, helps investors meet their goals. pgim investments. shaping tomorrow today.

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with godaddy airo can't wait to see you at 3:00 eastern time closing well josh brown, final trade? >> amazon wants 200. >> okay. jason. >> google, 46% increase in operating income there's more room to go. >> stephanie. >> avalon bay. >> garmin.

interesting name steph says it's golf related. >> it is i have two. >> does it work if your golf ball is in the trees [ laughter ] >> we'll discuss and see how we finish out today i'll see you at 3:00 ♪ we will see you then, scott. thank you so much. i'm back i'm kelly evans. here's "the exchange." while i went from four kids to phi five, the fed went from seven to maybe zero rate cuts this year one of our guests still sees as many as three and maybe as soon as july. we are going to debate it. disney nearly turned a profit on streaming, but