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 theres nobody better to ask his response to me was, ive 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 its really well positioned and then you hear about Warren Buffett over the weekend talking about a. I. And how theres going to be theres 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 im excited to be an owner of crowdstrike now. Interesting youre joining the club, so to speak. Josh brown, youve been in this name a long time what do you make of the move right here well, i obviously agree with it ive been long this name since the summer of 2020 its up 400 it is the best performer of the larger cap security names. I believe that quality in the space matters. I dont think there are going to be ten Relevant Companies for very much longer, because if youre a fortune 500 company or youre 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 dont go so you dont lose your job. You dont destroy your reputation as a professional so weve 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. Theyve done so for a long time. And i think thats why, ultimately, youre 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 im a longtime shareholder here. Congratulations to new nvestor in the name. I hope it continues. Joe, youre in it, too, along with palo alto this is the one youve been playing for a while, too holding on and letting your winners ride is exactly whats unfolded here with crowdstrike, and crowdstrike has had a very strong recovery. Lets 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 ive owned it personally for quite some time, and im basically all in on the Cyber Security trade look, the dud of the group, so to speak, has been fortinet year to date, its 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 thats exactly what im 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, youre 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 its 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 joshs 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 thats why we have so many problems in Cyber Security you have even Cyber Security companies having Cyber Attacks on themselves. So i think youre going to see the big five, maybe seven players, get bigger and bigger over time. I like this total Addressable Market i think its just as exciting, in a bad way, of course, but just as excitingas a. I good stuff. Im glad we started that way bill, thank you. Well see you soon, obviously. You have a lot of growthy names in the news today. Palantir down a lot. Thats 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, youre 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, its 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 theyre telling you, listen, were going out, but were 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 cant expect much in the near term. Youre a longterm shareholder, and i think thats what youre playing for. In the case daf aof data dog, te president is stepping down thats 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 its down 10 the last three months theyre spending a lot of money on r d right now, and i think we will see followthrough snowflake is another name well keep our eye on. Negative for the year, steph, thats yours gerstner has it. Well 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 theyre not cheap. Thats 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 youre 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 im 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 tiktoks ownership. They go on to say that theres 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 270day time line required by the act. So what theyre 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 thats another story that well 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 were 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, theres no increase in risk the high quality growth stock is 40 higher than the Growth Stocks in other sectors. To the extent theres 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, theres 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 theyre a safe haven i think youve seen some runup. 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 were 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 thats 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 its really important for me to point that out, because when he uses the term risk, its being used in a way thats different from the typical person investing in a retirement portfolio. If youre 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, youre 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 well see them behave when the market turns lower. I dont 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, shortterm volatility is not their risk their risk is running out of money over the longer term so its 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 youre retail, a mom and pop, and you have a whole portfolio filled with high beta stocks and you dont have anything low beta to offset that, youre 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 hes saying. Good point. By the way, we as investors, continue to buy tech stocks, Growth Stocks. Bofa buying Streak Continues in telecom. Youve had buyers 26 of the last 27 weeks inflows in technology seven of the last nine weeks. Theyre buying nvidia again. That stock has gone from 750 to back above 900 in the span of, i dont know, Kristina Partsinevelos is here to take a quick look at that the stock traded down. Now its back. Up 217 in the last year. It was trading at 239 a year ago. Its incredible now its at 913. Theres 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 theyre 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 apples project ac dc, their own custom silicon chip which is a server, so its a cpu, central processing unit it doesnt 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 theyve been working on it for years, and this could take longer, too. Thats 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. Lets settle it and bring in Brad Gerstner, exclusively from altimeter, via the milken conference in l. A. Welcome back its great to catch up with you. What has become an annual tradition of ours. Its great to be here, scott. Its great to be with you. Im sure a. I. Is getting a bunch of the conversation out there, rightfully so why dont you weigh in on that for starters since i know nvidia is a large position of yours we talk a. I. So often when were 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 were 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 thats 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 im trimming my position im compounding cash at 5. 4 because im worried about that backdrop so, you know, when we talk about risk or we talk about technology, its important to say we have to look at the hands that were 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 youve achieved a years 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 isnt because were in a bubble. It started the year trading in the low 20s. Today its trading closer to 30 times earnings thats because every hyper scaler in the world has increased their capex on nvidia whether its tesla, amazon, microsoft, meta. Every company is investing more and, remember, jensen himself said theres going to be 2 trillion of data Center Replacement over the next four to five years. This is not a oneyear 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 youve 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, weve 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 were worried about some things in the world as well as reducing some of the overall position sizes. Again, this isnt about all or none this isnt 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, its the exact same thing Warren Buffett told us over the weekend and i think when folks come on the show oftentimes, theyll talk about a stock, and people think theyre always 100 invested thats 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 thats what weve done across our portfolios these stocks have done so incredibly well, the ones were talking about, but there was the pullback in april that had us reassessing the trajectory or at least the flight path of those stocks in the near term. But here we are rallying back yet again. Im 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 theres a Market Correction, these high quality growth tech stocks are likely to materially underperform i think its a stock pickers market, scott. You have nvidia up 75 and you have tesla down 27 on the year. So i dont think this is a market thats going to treat all companies equally. You just spent a bunch of time talking about software, whether its data dog or crowd strike or snowflake, et cetera the Software Index is trading 15 to 20 below its tenyear average multiple, right . So this has been a market thats been driven in technology by the reacceleration 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, thats 70 billion in aggregate market cap because of the revenue added in the quarter to those companies. But if youre not beating your numbers, if youre not raising your guidance, given the elevated multiples of some stocks, they will be sold off. All im 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, thats our general perspective. We want to be in the names like nvidia that are reaccelerating, in names like amazon and google and microsoft and snowflake that we believe are reaccelerating its only with that reacceleration, 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 . Its 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 theyll do 55 billion in net income. Its the single greatest beneficiary of the a. I. Boom because a. I. Powers all of their engagement whether its videos theyre showing you on instagram or facebook or the monetization, the targeting theyre providing to their advertisers and then what did we learn in the quarter . Meta launched lama three, the most performative on the planet. Its done what chatgpt does but with 90 less cost and a smaller footprint so its working faster for inference for a lot of companies. Both in terms of what they already have and what theyre 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 theyre going to spend it. They will double down on a. I. , triple down on a. I. Because its working. We know the payback thats coming from a. I. And so itweeted about it and i said as a longterm 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 theyre 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 were going to take a quick break, pay some bills. Well 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, tailormade for trader minds. Go deeper with thinkorswim our awardwining trading platforms. Unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. 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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 im assuming you still hold it correct me if thats 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 geminis 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 worldclass capabilities in a. I. For over a decade created an attractive entry point for a longterm 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 its done incredibly well yeah, ive been consistent, scott, on your show to say its 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 were going to make structural changes and sundar said theyre going to make structural changes, and, in fact, thats what we heard on the call we think there are more to come. Theyre still in a great position theres 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 theyre moving to a. I. Enhanced searching but the monetization of those searches coming in at basically the same monetization as theyre seeing in core search theyre going to be a dog in this hunt. Remember what i say, scott, its not that google cant compete. Its simply theyve enjoyed a 99 monopoly on search and search monetization over the course of the last decade, and now theyre 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 reaccelerated in the quarter. And so im going to continue to push on i had dinner with dan the other night. Im a huge fan of dan, and i think his analysis is spot on. Were going to continue, you know, to suggest that the company has more they can do ill leave that to dan, but, yeah, we think theyve 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 youre 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 were 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 were complacent about it. I know inmy instance ive been x complacent about it. Could it restrict the growth in the same way that it happened with microsoft in the 9804 experience thats something we ought to be very, very concerned about from a regulatory perspective, but im 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 its 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 im 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 its 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 theyre taking a balanced approach to regulation. I think theyre 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 im at the milken conference i think attendance is up 25 year over year its an unbelievable number of ubers rolling around this place. Theyre 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. Well 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 selfdriving relative to all the other manufacturers in the world is deeply under appreciated. A chatgpt moment for selfdriving 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 dont think its 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, youre going to have a very hard time catching tesla in full selfdriving i dont 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 selfdriving 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 cant think of the company as an auto company you have to think it have as a Technology Company today we think that its fully valued its 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 were 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 youre 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, im sure youve 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. Im 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 cant prove their case, they ought to lose their case. And so, you know, listen, were going to allow this to play out, because were the United States of america, were the most vibrant system of capitalism in the world because we dont 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 well 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 theres 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 theyre going to get their day in court i think its 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 theyll more narrowly taylor the law. And the final thing i want to say on this, a lot of my friends at milken says its great, we will get rid of tiktok because my kids are addicted to tiktok i have a 15yearold and a 12yearold boy as well, and i will tell you this just because you get rid of tiktok doesnt mean that social media is solved. I asked my 15yearold, what are you going to do . No big deal. Ill 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 thats a separate matter that needs to be addressed. Thats not going to be addressed by simply banning tiktok before i let you run, and i mentioned mr. Mnuchins name, you happen to be on a panel with him along with john hope ryan tomorrow about your invest america idea youve 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 dont think thats by accident, and im sure you had conversations about this topic with law makers in d. C fill us in well, its 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, its 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. Ive 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 were going to take that 1,000 and were going to grow it at the age of 30 it will be over 250,000 at the age of 50, 1 million well 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 capitalgains tax to these accounts when you go to sell the accounts, whether youre 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 well look forward to that interview as well. Appreciate the time, as always, brad thank you so much. Its 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 antisemitism 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 Trumps 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 wasnt 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 114year 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. Were back after this. We see you. Athletes. Investment bankers. Doctors. Business leaders. We see your ambition. Your desire to succeed. Which is why we are investing in your future. Empowering the next generation to reach the csuite and elevating womens golf. Because you may not always see yourself in the world, but we see you. Committee stocks on the move Goldman Sachs, mr. Snipe, has hit another alltime high, up 15 year to date its 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 its nice to see some followthrough. I think the big thing for me is they have exited and thats why were seeing the price action weve 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. Theyre 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 thats too wide of a gap and, in addition, theyre making major strides with inventory reductions, lower markdowns and higher private label so that, too, should help margins. Doing all of this while were waiting for revenues to start to see an improvement all right. Well 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 appreciate it so much. Thank you. Doors are new beginnings. Surprise surprise your dedicated fidelity advisor can help you open those doors. For you, mama. Through personalized Money Management that can evolve with new chapters. And they can proactively view your entire portfolio. With an eye on taxes and the impact of risk. So you can enjoy moments together. Because doors were meant to be opened. what took you so long . Im sorry, there was a long line at the thai place. You get the sauce i like . Of course youre the man i wish. The future isnt scary. Not investing in it is. Nasdaq100 innovators. One etf. Before investing, carefully read and consider Fund Investment objectives, risks, charges, expenses and more in prospectus at invesco. Com 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 theyll 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. Well 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 didnt even think about that between now and 2050 were going to spend 4 trillion on this effort in terms of upgrading the grid, power, clean, green, the whole thing. Thats 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. Hes obviously talking about vistra and this ai arms race. You cant ignore the outperformance of unites quarter to date. Its up 5 relative to other sectors. Im looking at southern company. This afternoon ill 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 timetested fixed income suite, backed by over 145 years of risk experience, helps investors meet their goals. Pgim investments. Shaping tomorrow today. Maria and julio thought their life would never slow down. Then one day, it finally did. You were made to find inner peace. We were made to track flight prices to paradise. Trading at schwab is now powered by ameritrade, unlocking the power of thinkorswim, the awardwinning trading platforms. Bring your trades into focus on thinkorswim desktop with robust charting and analysis tools, including over 400 technical studies. Tailor the platforms to your unique needs with nearly endless customization. And track Market Trends with uptotheminute news and insights. Trade brilliantly with schwab. This is our future, ma. Godaddy airo. Creates a logo, website, even social posts. In minutes how . A. I. impressed ay i like it who wants to come see the future . get your Business Online in minutes with godaddy airo cant 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 theres more room to go. Stephanie. Avalon bay. Garmin. Interesting name steph says its golf related. It is i have two. Does it work if your golf ball is in the trees [ laughter ] well discuss and see how we finish out today ill see you at 3 00 we will see you then, scott. Thank you so much. Im back im kelly evans. Heres 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