Information from dan is taking these new positions in the Second Quarter according to his quarterly letter in disney, amazon, alibaba. Well focus on disney first and foremost josh, i just got off phone with dan who told me the following about why they initiated this position he said theres no close second to disney when it comes to an entertainment company. He says they have slate of tent poll releases. We know the titles they have he said some of the commentary,s the narrative of how disney plus is being thought of in the context with netflix its not a winner take all environment. They have to take market he thinks is easily split between those two and some other players. He also, which was interesting as well likened disney to microsoft 7 or eight yea8 years. You have a time old business and youre able in some respects to reinvent yourself. Much as microsoft has done we know how well that stock has done lately. He seems a similar scenario for shares of disney josh, let me get your take on this and ill quote some more from the letter. Thats directly from my conversation with dan loeb a few moments ago. What do you think about the disney buy i agree with all of those comments if you were a seller of disney, youve had five months to say they never will recover. I want out the price has been stable. Disney has been trading at fairly tight range theres been ample time for people that thought the pandemic was going to present some challenge to the company to get out. Thaifr already done that who is left to sell if they are still in it . I think the disney Shareholder Base is made up of people who agree with everything that dan has had to say they have said im going to grit my teeth until the reopening happenings whether its q4 of this year, q1 of next year the park will come back. People will want to see new movies espn will have new sports to air in look at this fabulous asset that have built up direct to consumer does not require the Cable Companies carrying their channel and, yes, its world class it belongs on the same stage as netflix and it will be that size in time. Sort of gritting your teeth and having to wait a bit dan makes it clear in their letter the quarterly letter that they initiated their position when shares traded down on fears of closures of theme parks and movie theaters due to the coronavirus. He said a slew of analysts downgraded the stock he says we believe they failed to grasp that the pandemic also provided disney with an important opportunity, that being to sleraccelerate their p to bring their con tenttent to consumers. We saw what they did with hamilton we saw what they have said about mulan and what they are likely to say about other titles as well i think its so interest whing t he says about this Competitive Landscape of disney and netflix and how he views a company like disney relative to microsoft was close to a decade ago. I still think when i look at disney right now, ill say the same thing, under 110, thats where you want to buy it the stock got underneath 100 at one point. It got sold off for all of this quote, unquote right reasons but people were forgetting what happens on the other siefde of vaccine. Bob set up this company in an maizi amazing way. He provided the studios and the content that we talk about now and thats the trigger thats the one difference that i see is when i look back at microsoft, that was a company in disarray they didnt have a direction the stock was sitting there and languishing in the 30s the needle didnt seem to want to move. I think the reality is its a bit of a different story in terms of disney, looking at disney, theyve got so many different levers they can pull and with the stumbles, we know at some point in time weve been buying time. Weve been buying time through the fed. Weve been buying it through these different packages that congress is putting out there. All for the right reasons, by the way. Buying time. It makes a lot of sense. I think the stock is trading right around at the right level right now. I think youve got to have openings and youve got to have more flow for this stock to be 135 stock or 150 stock again what a Great Company that bob set up for bob chapman i think its outstanding brenda you own it, too. Speaking of the streaming, dan loeb calls it the biggest disney opportunity ever its a name we have owned for a long time. We think its a great long term holding. It creates an interesting revenue street or rekufring revenue streams. I think this company is setting itself up to be stronger when things start to improve and we get people back at the parks we think it will be pents up demand once the doors are open and we have a viable treatment of vaccine you get a both of both worlds. Youre getting this interesting opportunity for growth and direct to consumer business and you also have the optionalty where things open up in the market and the stock likely is to react positively to that. Its good to have you back. You used to own the stock. Id love your opinion on this news now in the context of everything that we spoken about, i know you focused on technology a bunch. Im sure you thought about netflix in the past. I dont remember if you owned netflix or not. We have been in and out of disney we become more constructive on the name the valuation has become more attractive we do really like the subscriber numbers they are putting up with disney plus. We think theres a tail wind there. Thats a positive for disney they are getting creative in terms of mulan coming o the streaming. For the longer term, we are in theconstructive camp on disney here. I dont want to just repeat what everybody said but ill agree with it. Ill add one point they have 23 billion of cash on the Balance Sheet they have a lot of debt too. I wonder what they will do with that cash because they can do some very interesting acquisitions what i was going to say, thank you for that were watching disney shares get a bit of a boost off of this news our interest would be peaked by the amazon side of this. Its such a battleground name given wrp we are in pandemic just what do you make of the news and some of the other stocks were learning about here i think dan is one of these Hedge Fund Managers who have been lamenting over the last few years or so. It seems like in march it was an opportunity for him to get into Quality Companies or compoundsers these are companies with good free cash flow, predictable businesses but hes been pretty much avoiding these types of companies because the valuations have been in the stratostphere im looking at amazon commentary in the note he, like so many others over the years, have looked at amazon from a distance, if you will as an obvious admirer of the business itself, but couldnt necessarily get their arms as an investor around the valuation and then finally just stop looking at it and went and bought it. Ive had that instance with members of our own investment committee. He says historically amazon was company we admired that traded outside our valuation range. This is not a small position we initiated a 5 position and although shares were flat on the year, we believe they were significantly undervalued due to the acceleration of the adoption of the ecommerce and Cloud Computing during the pandemic. Put you inside the mindset of someone who has been an incredibly great investor over the last decade, at least. I think the amazon story is similar with all of his new positions. Its clear he really took a step back into february, early march. Looked at how this pandemic was reshaping the economy and said, what types of stocks can i be long that can really benefit from this complete transformation, this move toward digital. Amazon is a great example of that as he says in the letter, its benefitting both from the ecommerce side as well as the adoption toward the cloud a more people are working from home obviously, disney, he looked at that and said this is a great way for the company to really accelerate its direct to consumer offering and he said he really liked the idea of what they were doing with mulan he also took stakes in chinese Ecommerce Companies he said those stocks really took a pull back over jitters is you are surrounding chinas relationship with hong kong. Its clear hes really thinking a bt some of these macro issues. What will be interesting to see and its important for us to Pay Attention to is as we start to come to a resolution over the next few years, do these trends stay with us josh id love your take i dont know that it adds much to that conversation but alibaba and jd i cant remember you used to own jd, remind me. What do you think of this trade to begin with or the investment . We have exposure to chinese tech through a broader emerging markets sleeve which were overweight, the Global Market cap weighting of em. We have been bullish for a while. Broadly speaking, the rally in Asian Technology stocks is the only thing on earth that rallies the u. S. Technology stocks people dont realize its not just china softbank is up like 120 from the march lows softbank the company that six months ago looked like the worlds worst investor with the wework debacle. I think whats happening is global back to amazon and this idea of stop looking at the valuation. People get caught in these very myopic boxes where they say the p e ratio is too rich. The p e ratio on amazon was a thousands. If youre smart enough to realize thats not an applicable way to think about valuation and try to find another way to understand what was really going on with the company, you got involved with it us amazon holders cho hawho hav in stock for a well, have never concerned ourselves. The thing that drives stocks are net work effects and brand and consumer growth and market share and amazon checks every box outside of price to book i think its nice to see people start to recognize that even if its years later pete, you do own jd yeah, i own jd. That was name we talked about for unusual option activity. This is a stock thats hit multiple times its the chinese they have been reacting well weve seen more and more of this it seems like its picked up especially over the last month or so. Were seeing this a lot. It was over 65 earlier today it did pull back the markets have been a little bit waivering around for most of the day but i think the reality is, that a lot of these names just still have plenty room to the upside yeah. Lets broaden it out leslie thank you so much a great segue to what were talking about now to the overall market nasdaq is back over 11,000 its going for its first ever close above that level jethro, when you look at what tech has come to, its pretty remarkable powered by amazon and apple. Is it just going to keep going youre right. Its been quite the liquidity boom fueled by the stimulus that we have been getting in record amounts. Low Interest Rates which according to economics 101, valuation send to inflate asset prices at these levels, these are histor historical times the valuations are quite high. You got to be more selective we think well be facing increasing period of volatility due to seasonality factors as well as the political environment. Were increasingly more cautious at these levels. Jim, ive been dying to ask you about roku were looking at some of these stocks that have had earnings. Youre not in roku now the stock has pulled back. It had me thinking the natural question as to whether youre ready the buy it back. Here is the thing you got to decide whether youre going to trade roku or invest in it this is not from trading perspective isnt where we were in 019 and 2018 where the stoc triples over nine months yeah there was a little run recently but nothing like we seen in the past there isnt enough momentum for me to trade it, scott. On an investment point of view, you run into the obvious problem. Its got 18. 5 billion market cap. I dont know how to value that people are going to say, detective, somebody will take it over amazon will buy it maybe that happens but at what price. I think thats already priced in i cant invest in it and i dont see the momentum to trade it either im staying away for now s josh, how do you see square price target up to 210 price target to 180. This stock is going higher. The cash app is now an ecosystem onto itself. Its undeniable the ben fitss you get. Thats going to keep going it benefits along side so many other companies we talk about. It pertains to what were talking about about what happens when youre one of these high flying stocks whether its some of the names we mentioned now or a name on my list that you may remember frank mentioning last week when we spoke with him. A high flaying name that doesnt live up to the hype. Doesnt meet the expectations that are in the market you can pull up those shares ooip wondering if theres warning sign for some of those other names. When you look at this, the stocks up 300 over the past three months thats before today. Fastly is pulling back hard. You made the stock down 20 just about. You made a new buy in a name cloud flare which competes directly with this just this notion as the bar continues to get hire and higher, the more difficult it becomes for some of these companies to live up to that hype, if you will. That certainly is a risk. You got do think about taking some of the chips off the tables and some of the name that have done well. Its a very high growth company. I think you have to look at some of these names that are high growth that are geared to some pretty powerful themes but you have to have some patient and be prepared to nibble at these names as they come to more atrak attractive levels. Theres things written in terms of where we are with regard to the yields curve. The case of fastly its probably the sell off that was long over due. Look to be more constructive tell me about this new buy of cloud flare. Again, in terms of some of these names that are geared the some of these thing, we have been accumulating cloud flare. We were buying it in the 20s and 30s. It has high exposure to some of the secular tailwinds. Think about cloud security, internet content delivery. The company does report tonight. Theres going be some high volatility there Live Ramp Holdings is another new one on your list tell me about this sf its an enterprise company. It has a significant Addressable Market a company benefitted from this wave its a third part Customer Data provider and a lot of the customers data is anoun mouse th anonymous. You know, this brings me also, josh, i want to get through this before we take a break. How do you think about uber going into the print its the same situation as disney its obviously not as seasoned and now add powerful and doesnt have 26 billion in cash. Its not as big a market cap uber has this part of the business similar to disney plus which is the food Delivery Business that accelerated. Thats not coming back any time soon when you look at the share price, nobody expects it too if you were going to sell uber because you thought they might have an issue with ride hailing during the pandemic, youve had five months to do that the Shareholder Base clearly is in this for the recovery very similar to the situation with disney yes know its not Getting Better today. We know the Second Quarter is a disaster theres almost nothing uber can say that would make us think t more of a disaster that disney definitely fell off a cliff and the food Delivery Business got a huge assist and were all aware of it. Im looking at price action more than im listening to peoples opinions and price action tells me this stock probably bottomed in the Second Quarter and ive been added to it i dont know that tonights Earnings Report will be an upside catalyst but a year in now, two years from now, uber will be crushing it and the moves they made during the pandemic are setting up the foundation for that. I vestinvestors, not traders, w are in the stock have decided to grit their teeth through this weir period well see what happens with the print and the trade. Just recapping our top story its dan loebs third point, initiating new positions one of those being disney. We have seen the stock have a bit of a rise during our program as we discussed that disney shares are up by 1 well have much more on that throughout our program coming up next, jethro has a new short idea well get to the rest of the traders latest moves well do that in two mutn ines were back after this. We made usaa insurance for veterans like liz and mike. An army family who is always at the ready. So when they got a little surprise. Two . They didnt panic. They got a bigger car for their soontobebigger family. After shopping around for insurance, they called usaa who helped find the right coverage for them and even some muchneeded savings. That was the easy part. Usaa insurance is made the way liz and mike need it easy. Usimon pagenaud takese the lead at the indy 500 it coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. He scores stanley cup champions touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. Welcome back you saw stocks were mixed. The nasdaq is still above 11,000 lets go to sue who has the headlines for us hello heres whats happening at this hour new yorks attorney general has filed suit to put the National Rifle association out of business the suit alleges misuse of funds and corruption the attorney general of washington, d. C. Has filed a similar suit james alleges nra chief spent millions of travel consultants and personal trips a total of four, current and former nra executives are accused of wrong doing wayne lapierre, woody phillip, Joshua Powell and john phraser instituted a culture of selfdealing, mismanagement and negligent oversight at the nra that was illegal, oppressive and fraudulent the National Weather service says this years Hurricane Season will be one of the most active in its 22 years of making forecasts. Between 19 and 25 named storms are expected with between 3 and 6 of those turning into major hurricanes of course, they will because its 2020. The year that keeps on giving. Youre up to date, scott