tv Fast Money Halftime Report CNBC September 10, 2014 12:00pm-1:01pm EDT
welcome to the halftime show, let's meet today's starting line-up here at post nine. john, pete, jerry are the cofounders, stevewise at short hills capitol. josh brown is ceo of the wealth management. our top story today, reactions still pouring into apple's big unveiling yesterday of a new iphone, watch, and payment's platform. the stock is on the move today as are many of the companies that supply the guts to apple products. the big question today, did tim cook and the company's design chief johnny ive deliver for investors? we ask the man who wrote the
book on the creative genius, welcome to the show, it's good to have you on. can you hear me? maybe he can't, guys, how are you -- >> feeling well today, judge, i thought that the real hourm yesterday was the -- hourm yesterday was the apple plus. the new iphone. i thought that was a knock it out of the park and getting into a new category, it wasn't the apple watch, it was indeed payments. those two things are why the stock's rallying today. i have issues with the watch. i can talk about those, but i thought overall, tim cook did a good job. >> we've got him patched now, welcome to the show, nice to speak with you today. >> thanks for having me. >> so how would you assess what happened yesterday? did johnny ive get it the right? >> oh yeah, yeah, i think so, definitely. yeah, the new iphones look amazing, they're going to sell like hot cakes and the apple
watch will take off in a big way too. >> you know people are assessing, you know, i guess most especially the watch today, and whether people, whether those, that product alone with a new phone really have enough new features, whether they really advanced the ball enough. what do you say to any skeptics out there today? >> well, you know, you have to look at the ipod and the iphone. any other of the previous products in history. they always play down the number of feeks, they want it to make it simple and easy to use. the watch is a plorp, the moment they're keeping it to health and finance, mobile payments alone is really compelling. it's so easy to pay for everything just with the flick of the wrist. people are going to be, i think that's a compelling feature set, but it's a communication device, it's a remote control, it does so many things it has massive huge potential, and two or tree generations down the line lab lot sleeker, many designs.
i think more options than you have now. and different ways to use it. i think it has massive, massive potential. >> i think the most impressive thing yesterday was about how they continue to solidify their place among, you know, people that use apple devices. now you can't use the watch unless you have the phone. but while we're waiting for the watch to develop, that's sort of like a luxury device now. aren't you concerned that they came in with a phone that doesn't really do much more, i get the pay, but in terms of the big screen, i mean we've had samsung out with a big screen for a few years now. that's nothing new. so where's the innovation in terms of the phones right now? >> well, i think a lot, the big screen, the phones, samsung and other device makers have always been compromised. they have a big screen, but the screen's not as good, high resolution as the one that apple is releasing or the camera's not as good. if you look at this, it's an astonishing piece of hardware,
it is an uncompromised product. great battery life, great screen, great operating system. you know, you can pay with it. i think it's going to sell like hot cakes. people say there's no innovation, turning these things out in the millions is a huge invasion. >> it's josh brown. some of the technology journalists were taken aback by the offhanded way in which tim mentioned, and by the way, you have to have an iphone in your pocket for this to work. maybe people thought it was a stand alone product and hence eligible for android users which quite frankly are a much bigger piece of the fuzzle -- puzzle, do you think the lack of having it as a stand alone is going to stunt the adoption of this? is it not something to worry about? what are your thoughts on that? >> i think it's like the first ipod. you had to have a mac to use it. people said the same thing, it's an expensive accessory.
the reason you have to have an iphone, the communication, the communication capabilities are enabled by the phone. i don't think it's a big barrier. i mean yeah, android users can't use it, but apple's in the business to halo affect. they want to bring people in and get them into the apple ecosystem. and so you know i don't think it's a barrier, it's not going to hurt them at all. >> just a quick pushback on that, the big difference between the ipod and of course the previous music, the walkmans and so forth was that it was digital music, it was a thousand tunes in your pocket. they have a ton of competition in the watch category already, that's only going to get bigger. and the fact that all products right now have to communicate with the watch in your pocket, otherwise can it can only measure your pulse and steps you take. yes, it'll be your payment device, but again, if you have the watch, or the phone in your pocket which is the reason you've got the watch in the
first place, you have to have both. so, my point is that until they actually do separate and have that watch be its own communication device without having to have the watch in the pocket, this is a minor upgrade for a very small number of americans and internationally as well. but you apparently disagree. >> yeah, no, i think you're looking at the beginning of something that's going to be very, very big. it's a wearable wristwatch computer. at the moment, they have to offload just as the same as some of the functionally in the ipod to the mac? >> why don't you wait? >> people will. this will be the early adopted for sure, then second or third generation, it'll expand out. they're laying the seeds for i think what will be a universal computing platform. the same way that everybody owns an iphone or an iphone clone now. they change cell phones forever. no one uses the old candy bar.
the iphone was exactly the same, it was expensive, it had appeal to limited number of, you know, earlier adopters, but it became, you know, a ubiquitous thing. >> thanks so much for coming on today. appreciate it very much. >> sure. >> again, wrote the book, the genius behind apple's greatest products. guys, it remains to be seen as to whether this watch will become one of those products. >> because we can't see it. when are we going to see it, scott, they didn't deliver it yet, not next week. that's coming next year. so, if -- >> are you as skeptical as your brother sound? >> i am, because a it's at the timered, and b, this is not coming out now. everybody wanted something now. i think that was going to be the wow factor. >> if we don't mind though, apple has done this when its entered new categories. they announced the ipad on march 5th, it was rumored for a year,
everyone said, nobody's been able to sell a tablet before, never will, they announced them, didn't come out until the middle of april. six week waiting period. do you know what they? it served to allow apple to take in toon of preorders and really figure out how many they would sell. >> the at the timered idea. >> right. >> why not let everybody get the six first then buy the watch. you need the iphone anyway, upgrade to the phone. >> i'm not as negative on that. first, if you look at their wrist, they wear clocks. >> they're real watches. this is what people wear. >> i wouldn't expect them to go completely open architecture where they haven't done before, why would they put our a device that you use from other manufacturers? force them to buy a iphone. i give yesterday a b, b plus because it was as expected. nothing new. i like the fact that you have to wait for the watch as josh says,
that builds the expectation. i think it's cheap stock. sold most of my options before the meeting. the rest during the meeting. i may go back in because i think it's relatively cheap. >> at some point, do investors need to come to grips with the fact that the product pipeline is only going to go so far? how many different products can you make? >> it's not going further, but what verss have to be concerned with are margins going forward. >> but apple pay addresses that, if you listen to katie today, she was talking about higher margins, you look at apple pay. and they priced the phones right, judge, i mean you have to go back to this week earlier, amazon's fire phone. they mispriced that thing. they screwed up and because of that, they can't sell them. now they're 99 cents. but apple knows thousand price things and that was the key. >> apple's been known as a product company at some point and the payments put it into the stratosphere of now becoming more of a software deliverer with more exciting and
innovative software things rather than hardware products because as i said, at some point, unless a phone puts you on the moon, you're only going to have so many different versions of that, a watch and what else? >> the two home runs, slightly better grade than steven was the apple plus, the five and a half inch phone and the payments. not the watch. now the payments though, judge, even though its got the security of the thumbprint, and then it connect os to -- connects to make various payments. once that goes to the retailer though, it's still in the hand of target, it's still in the hands of home depot. they can still screw it up. i'm just saying, gives you security only until you hand it off. >> last point. >> very quickly. >> i doubt it. >> very quickly. there are 1.2 billion watches in the world right now. that's an actual figure. this could be very big. we don't know, it's early. for all we know, it could end up
in the smithsonian if it kicks off, or it could flop. >> it might be in there for a flop. >> some called it -- >> let's let it the digest. >> if apple's riskiest product launch ever being the watch because we don't know. but much more straight ahead on the show. along with the ceo of zillow launching a 25 tweet rant on investing in ipos. the two questions every investor needs to know before investing in alibaba, facebook, and many more ipos he says are not for the meek. plus is apple's new payment system a paypal killer and what does it mean for ebay investors? putting their mobile money on the line in a halftime debate. first, what to expect from president obama's speech tonight and the strategy to deal with is isis. and you can watch that live right here on our cnbc special report this evening. much more halftime straight ahead from post nine.
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products. president obama addresses the nation this evening where he's expected to lay out his strang for dealing with the terrorist group isis. we're going to cover that in a special live at 9:00 p.m. eastern. joining us now is retired four star army general westerly carp. sounds, general, are you there? all right. we have them join,ing us on a mobile phone. what's interesting guys is you consider what the president is going to say tonight, from a market standpoint, we've been posing the question for a couple of weeks now as to whether investors are too bullish relative to what's going on in the rest of the world. steve, how would you assess or the psyche that's been able to put aside anything that's been out there. whether its been taking place in gaza or in iraq with isis or anywhere else. we do have the general now? general clark, are you there? >> i'm here. >> appreciate your patience in dealing with some of these
technical issues. it's nice to speak with you today, sir. i'm just wondering as we look ahead this evening to the president's speech and we start to get some of the details trickling out that if we are preparing for air strikes within syria, what your assessment of that strang -- strategy would be. >> i think that, i think that we can look forward to see air strikes within syria. and i think that that's part of a successful strategy. it's not going to do everything, but it's going to knock isis offbalance, take out some of their resources and force them to react as opposed to letting them have the initiative in the combat, but it's going to have to be followed up by ground troops frat regional partners and allies. >> and that's what i wanted to get to. you've got secretary kerry whose in the region right now trying to build support for such a thing, can we rely on folks on
the ground without an american flag on their chest or their sleeves to do the job that needs to be done? >> we have to rely on them. this is their fight. honestly, this is not despite the fact that two americans were beheaded, i hope america understands that that was a ploy by isis to just try to draw christian, judeo christian forces into the region to serve their purposes of acting as a recruiting magnet for isis. so we certainly don't to want put u.s. ground troops on there. people who are most threatened, in fact are the saudis because i.c.e.s is coming -- isis is coming after saudi arabia. they have the same philosophy and they don't live up to it. at least some members of saudi groups don't live up to it and therefore they're exposed to hypocrisy. >> general, we both know
articulating an approach is one thing, actually executing a strategy is what really counts. and therein lies the more difficult challenge for this president, no? >> well, i think it's, look, this is a coalition strategy, and the united states made a big mistake in invaded iraq the last time. we can't put our president under so much pressure to be a leader, he makes another mistake by putting u.s. troops on the ground. of course there's going to be problems in execution, this is not our country, their soldiers are not our soldiers. they're kurdish, there are iraqi forces, there are saudis who are saying they won't get involved, we don't want the war to spread to jordan. you've got syrian rebels in there, some of whom might be coordinated by the united states, all of that is just hodgepodge, and on top of that, we're going to use our special forces to put air strikes in on top of isis.
so yes, it's going to look, it's going to look like a cloj, but the american public has to understand, please don't demand perfection by putting u.s. troops on the ground. the last time we did it, we did not get perfection. our biggest problem is not isis, our biggest problem right now is vladimir putin and what he's doing in eastern ukraine and what that means for nato and for our economy and for the future of the west. so isis is a particular, localized right now threat, not a threat to the united states, yet, we have improved homeland security. we can track people. there's a lot of hysteria about isis, yes, they're brutal, but they're there right now. so i think the president's going to come up with an appropriate strategy using our regional allies and partners with u.s. combat multipliers, but don't ask for perfection, please don't
ask to put u.s. ground troops in. >> quickly before i let you go, as someone who ran for the presidency and seemingly understand the challenges that come with that position inside the oval office, if the president does in fact not ask congress for permission to act, and acts on his own, would that be the right move or not? >> well, he's going to probably not ask for permission because i don't think he wants to get this end of the politics. in this case it's strike and then get approval through the budget pros and some other ways. i think he has the legal authority to doed it, maybe it's somewhat gray area, but, but under pursuit certainly in what we're doing in iraq, we have every right to pursue isis and syria but international -- [ inaudible ]
>> all right. general, general, i appreciate you joining us, i mentioned we're on a mobile phone, so we have apologize for that there at the end, but the line's breaking up. we're going to let the general go. general wes clark, retired four star army general joining us on the line there. wrap it up so where we were when we were leading in, how much the market or when perhaps the market is going to start playing closer attention to what's taking place away from the stock exchange and elsewhere. >> yeah, i mean, if i had to make a guess, it's when these guys manage to pull something off outside of their immediate region. that'll probably get erin's attention -- everyone's attention, this is a religious civil war raging for several hundred years. the market cares, but it's not going away any assignment soon. what you're seeing on the screen every someday people going on with their lives and businesses. >> the market's being rational. what happens in gaza, what happens with isis doesn't affect the market, period. what happens in russia,
particularly if they put a squeeze on oil, sell all their capacity for example to china. that's a different story. >> remember you can watch the prime time address this evening right here on cnbc as part of our especially report. i'll see all of you then. coming up, our call of the day. upgrade for twitter. ubs saying it's time to buy it, not all traders agree. and rare advice from the c sweep sharing his ipo investment strategy and his surprisingly candid extents are turning heads on the street today. we're going to ask spencer why he let loose on twitter that much more straight ahead.
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welcome back. let's look at crude oil which is falling hard after this morning's inventory report. jackie deangelis and the futures traders have more. >> good afternoon, what we did see in that report stocks were down slightly, refined products were up. couple that with the fact that opec is increasing its production according to its latest report and crude futures are down sharply today. at an eights month low. scott nations want to get your take on this, what is it going to take to put a floor into the crude price here? >> couple things, one would be if the problems in iraq spill into the southern half of the country. that would be horrible, and fortunately it's unlikely. much more likely is if the dollar turned around and weaken, weak dollar makes crudeless expensive for anybody whose not buying it in. >> jeff, if we continue to see prices fall, the concern is we may see a supply cuts. at what point does that happen? >> i don't think it happens any
time soon, jackie. look at opec dealing with, the isis situation. its been keeping a curve ball there. be mindful, this month in august, 30 and a half million barrels, that's a million barrels more than last year. but we did see saudi arabia reduce it by 408,000 barrels a day. it is slowly happening. >> all right. for more on the crude market, head to futuresnow.cnbc.com, back to you. >> thanks so much. coming up is apple pay a friend, enemy, or frenmy of paypal? and what about ebay investors? john and josh are lacing up far debate. go to cnbc.com/vote because you're going to help decide the winner. false you invested in this ipo back in 2011, you would have more than kwin it upled your money by now. that's good enough reason to stick around for what zillow's ceo has to say about investing. he has two key questions on a
handful of ipos, including alibaba, facebook, zin kbrks a and gopro, that's next. ♪ when the world moves, futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with paper money to test-drive the market. all on thinkorswim from td ameritrade. can you start tomorrow? yes sir. alright. let's share the news tomorrow.
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welcome back to post nine, twitter hitting a six month high today, the internet analyst over at ubs saying now is the time to buy twitter. buy rating for the first time ever. it's our call of the day. what do we think of this, guys? more people bullish on twitter, remember stephanie link, we just said the other day, she bought the stock. but the street seeps to be getting more bullish. >> for a lot of reasons, that spring put them in position now with the buy button and the engagement. everybody's talked about how do they have more engagement like facebook, reaching tout their customers, this is how they're doing it and not only the engagement part, they're going to get more of the critical data
they want to target the ads. this was a brilliant move, i think going forward will be a great move. >> still a buy? the stock's down, what, 17% year to date. making up ground. >> but its come from 30 to 52. >> big moon shot to 74 plus earlier in the year, judge, pulled back to 30, and 34 before it bounced here. to pete's point, yeah, if you were somebody who this is a stock that volatile stock, should be in your portfolio, then absolutely. a widow or or fan, i wouldn't. >> i'm sorry, i don't think people are looking at it as twitter, what they're looking at is a replay of facebook. came out, ipo popped, traded down, then look at it now. they're trying to catch the same wave. i would beth most don't -- bet most don't know. >> i think steve has a point, so much of the way these things trade is on optics and how the company is perceived this week or last week and wall street tend to get bullish on the way
up. the turning point, brought in anthony, he's an exgoldman analyst. >> ex-nfl guy. >> yeah. >> he sits down methodically one analyst team after another covering the space. he says look, here's what we can realistically get down, once they get massaged to the point where twitter can receive them, that's when you have that kind of lift off, and i think the institutional investors get it, that's why they're on board. i don't care that much about the technology. >> perfect segway to our next guest. not only often that a ceo of a publicly traded company gives investment advice, that's exactly what zillow chief did this week when he went on a twitter rant over the ipo market. he joins us live from seattle. welcome to the halftime show. great to have you on. >> thank you. thank you very much. >> we had this conversation as it relates to twitter and all the way back to the ipo relative to facebook. what was the point you were trying to make in what was a 25
tweet rant? we'll call it. >> well the proper social media term is a twitter storm, but not a rant. aside, the point i was making is that when ipos come out, they have road shows, there's so much information because it's the first time that investors can get a good look at the inside workings of the company. that usually there is just one or two questions at the ipo that end up being the critical determinant of how the stock performs a year or two or three years later. in the case of the twitter ipo. the question people were asking back then is can twitter explain to new users what the heck this service is and why they should use it? and i think twitter has done a great job of trying to address that problem, it's still probably the biggest question facing the company, and it was the biggest question at ipo time. and you can tick through the companies i mentioned on my twitter storm, but the fundamental question that ipo time ended up being the question that drove the stock over the next couple of years. >> do you think investors are asking the right questions when it comes to the number of ipo that is are coming to market and
some big names with alibaba in front of us and. >> i think they usually are. the problem is the right question is buried along side 20 other questions. if you think some other examples that i give. i don't know, in case of zin kbrks a. the fundamental question was is this a hit driven company where they have to keep producing new titles or not? that was one they were asking. also 100 other questions. and sometimes the signal got lost in the noise. >> spencer, it's josh brown, i think you're great on twitter and only second to andrison to the tweet storm this week. one of your colleagues at netflix reid got himself into trouble posting on facebook, he was talking about his own company, you're talking about other people's companies, does your board of directors have a heart attack when you go out there and talk about other recent ipos, evaluations, and public companies, shareholders worry? >> some by the way, before you answer, in stocks that you own personally. >> yeah, and i do and readily
tweet about the stocks that i own and make clear my conflicts. this is the way zillow is run. and this is what it's all about. it's about information transparency, we try to shine a bright light about the real estate market. it's the way you run the company internally and externally. our embrace of social media, mine and the company's is the way the we run the company. we were the first company to take questions on twitter during our earnings call, we're the foirs put our twitter handle on the cover of an fcc filing. we've been at the forefront of social media and that is who they are and our board is comfortable with it. >> spencer, i agree on the questions you have to ask, my view, and i al lo cat hundreds of deals is not of that matters. all that matters on the first day of trading is how much the books turning over because it's only the institutions and the higher institutions that are getting stock. so it's a question of how well
the company tells a story, how big the marketing push is in terms of what happens in the first week or two. the company's aren't facebook and you tweet about this, dint change the mobile strang, but people got on to it at a lower price. >> you're absolutely right. it depends on your time frame. i should have preferenced that i'm -- prefrsed i'm talking about a multiyear horizon. stocks on supply and demand. they don't really trade on fundamentals as this show readily points out. over the long-term stocks tend trade on fundamentals, you're right, how alibaba will trade after the ipo is foot in based on the issues that i address, like corporate governess or evaluation, it's going to be around supply and demand, how much bankers and management push price going into the pricing of the offering. and you know, very she were things. over the long-term, these core questions really matter though.
>> spencer, just quick, gopro, one of the things you cited there was market size. and you encolluded three or four -- included three or four others in that rant. what are you talking about as far as gopro? too much credit or not enough? >> well, the question with gopro, and they talked about this is can they transition from a hardware to a consumer media brand? something that goes far beyond simply one product which is a wearable camera. and that's the question on gopro. they can still be a very valuable company if they just are there, but are they something bigger? are they espn? are they disney? that stands for a particular type of activity. that's the bigger question for gopro. >> i wonder, part of this conversation is about trying to give investors the smartest tools in assessing ipos as to maybe the best strategy of all is to just wait.
is to not buy any of these companies in the early days, and you just really look at even what happened with your own company, the stock has a big pop, then the stock goes down, it takes almost a couple of years to get back to that price. maybe, and we seen that with many other cases as well. that maybe the best strategy of all is to let all of the noise, all of the dust settle, which sometimes can take a couple of years before making the case to buy. >> well, i think having a short term time horizon with an ipo is very, very risky. all of wall street is a, you know, is an insiders game in some sense. and no case more so than ipos. so it's very difficult far retail investor, a fewer -- viewer to benefit because the stock's trade so quickly. the allocations are so scarce and it's very, very difficult. if off short term time horizon as i tweeted, ipo is not for the meek. if off long time horizon, if i
could buy alibaba around it, i probably would because if i have a five year type horizon. this thing is amazon plus facebook plus google plus snapchat, plus ebay, in china. five years from now, worth more? absolutely. is it going to be crazy volatile, definitely. >> that is my question about alibaba. how do you stand? is the transparency enough there for everybody to be able to analyze this company. >> it is for me. you know, if you're somebody that's religious about corporate governess and financial transparency, there's plenty not to like about the deal. there were accounts questions as recently as a month ago. you're not really buying alibaba, you're buying shares in another company. the management team has a stated strategy of prioritizing consumers, customers, then employees, then shareholders and for investors, there are investors for whom those are deal stoppers. for me, i'm not one of them. i'm comfortable with those types
of issues, but there are others that will walk away from a deal like that for those reasons. >> spencer, your storm certainly generated a lot of chatter. and we think a really good conversation right now on this topic, thanks so much for coming on today. appreciate it very much. interesting stuff. >> smart guy. >> he took on so many different companies. you know, yelp, groupon, linked did in, i urge people to go to twitter and check this out. it gives you an interesting perspective on how to view them as they're coming to market. >> i want to hear him tweet about what he does think about gopro, he left us hanging. >> i don't know if he'll go there. >> i want to see in three years when icon is involved in zillow, i want to see that twitter storm. >> something going on. >> that'll be another kind of storm. >> that'll be fun. all right. coming up the wearable tech trade, is there a better way to get in on the trend?
and more apple fallout today, is the paypal in the cross hearsay and do they have a strategy to compete? john and josh gearing up for a big debate next on the half. my motheit's delicious. toffee in the world. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. i never really thought i would make money doing what i love. we created legalzoom to help people start their business
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microsoft reportedly now in talks to buy the developer of the mine craft game, it's worth billions. why is mind craft's founder talking trash on microsoft? will he change his tune? and disney shares up more than 200% since robert iger has been the ceo. we have an exclusive now with one of the leading contenders to take over the top spot when he eventually steps down. now back to the scott and the fast money halftime report. >> all right, thanks so much. see you in about 15. meantime ebay is in the red after getting downgraded, competition in the mobile payment space from apple's new payment system. so should you place a bid on this name or is ebay past its prime? let's debate it now. you're going decide the winner in realtime. dr. jcht is the bull, josh is the bear, make the case, you're up. >> this one got clocked hard over the past two sessions,
judge, and that's why i like it down here. i love that it broke 52. now i am buying some, today, on this dip. the reason is that i don't think payments are done for ebay, and i think that apple, kudos to them, that's one of their hourms, but there's not just going to be one winner in the payment space. paypal is out there, it's doing a great job. it'll continue. i think this also might force ebay to spin it off faster. so as much as piper said hey this is going to put pressure on them, i agree, i think it's going to put pressure on the board to perhaps agree with carl icon and spin it off, and that's the other one. carl icon is your canary in the coal mine, if he's getting out, you need to get out. the stock takes a 4 hit over a two day period. >> john, i think you're right, eventually they will spin or sell paypal. unfortunately they're going to have to go more pain before pushed to do that. i think if this was an icon six biggest position, it would
already have a three or four handle. company's been able to grow the top line by 15%, and yet its been trapped in this 7 point range going back to the november of 2012. almost two years, 50 to 5 # $1 -- 50 to $51 is sport. it's laying down like a dead dog. >> 52 while we're talking. >> i think it's going to break below the support level. >> do people use their iphones with a paypal app to swipe it at -- >> i wasn't aware of that in my half of the debate was interactive. did we switch the format? >> you know, stocks are lower. >> listen, voted with the bear. >> i don't think paypal is dead, however, you can't argue that this is going to be really rough for them, and that's 47% of ebay's business. no spin off, and there's going to be more pain before they do it. >> is this competition judged? >> yes. >> what are people using paypal for? >> holding it under scanners. >> buying things with paypal?
>> do it with apple and 500 million people can who have credit carded on file, with a.m., why would they also get the paypal app? >> they probably wouldn't, but my point is it's not taking the business they have away. it's creating a great new opportunity for apple. i don't think it's taking paypal business. >> two-thirds of the peep at this point go with the bear. that's where we end it. bear case wins, 6-32. >> good job. >> still friend all the way around. >> of course. >> i'm kicking him under the table. if you're looking for a trade on wearable technology beyond apple, you might be interested in this product that's outperforming the s&p when we come back. ok, if you're up there, i could use some help. smart sarah. seeking guidance. just like with your investments. that sets you apart. it does? it does. you're type e*. and seeking another perspective is what type e*s do.
plus, now you get up to a $100 prepaid card when you purchase any new verizon wireless smartphone or tablet from comcast. visit comcast.com/wireless to learn more welcome back. as we mentioned, lots of conversation about apple me day after. so if you want to invest in the wearable technology trend, everything from the gopro to the apple watch, there is a new way. the wearable tech motif. joining us now is hardeep wally. it was only a matter of time before you'd have a wearable tech motif, right? >> we had to wait for apple to announce they're in it. but we've had it for about a year now. >> you're going to have to have some additions soon i'd think. >> you can play to the device
companies directly. but more important this is about playing the arms dealers to the industry so you can get exposure to some of the companies that aren't public yet. >> the performance is y wha? >> it's beating the s&p by ten points. it includes companies like system and chip companies like arm holdings, st microtln microelectronics. >> you're going with the suppliers into these wearables. not just the companies that are making the devices. >> exactly. it is is google, apple, gopro. the sensor companies, touch screen companies. we have invensense in there. the low powered bluetooth. companies like broad com and sky works. up 100% or more the last year. and of course the display companies. qualcomm, lg display, corning. >> perfect.
>> hardeep, just one quick question. why did you leave off what's in the apple watch now. >> so when we build a motif, we have a 20 to 30 stock sample that tracks a bigger index. they're on our actual add on list. we have a set that pick the right set of stocks to track the behavior of the bigger index. it's actually in there. >> i didn't see it on the list. >> maybe investors wish it wasn't. considering it's getting hammered today. >> 20 some-odd percent in two days. >> josh? >> i guess i'd be curious having lived through the past tech cycle where everyone was enamored with the fiberoptic companies to networking. you know, suppliers seem to be at the end of the train and when there's a crash up ahead, they're the last to see it coming. isn't that the danger of buying derivatives of the iphone or any other hot tech that the
suppliers will never see it coming until it's too late? >> i think the suppliers cover many different industries. so if you look at our tablet takeover motif, it's up this year. so even when people call on the decline of tablets, you know, they're still doing well. because tablets become phablets. there are lots of ways to play with these components. and when you look at these, it's all about the capture. device captures 15%. cpu companies capture about 40%. so you're seeing a lot of plays on values. it's not just where are the trends doing. it's about where it's going. and a lot of that is their worry about apple encroaching more and more. they're doing more of their sensors. >> they're making their own chips. >> exactly. when before they used to outsource. you've got everything in here and direct exposure to the device. that's what makes picking an individual stock winner, that's
why we throw out indexes. it's easier to get the trend. >> hardeep, thank you. pete, you know, as we talk about some of these companies and the suppliers that are on the move today, it can relate to wearables or anything else. do you have a stock on your radar that you're particularly watching? >> i think to hardeep's point, you look at the stocks as not just wearables but all the different industries they feed. i'm looking at intel because we all know they recently came out with a watch. more jewelry involved than just technology. you look at a name like that or the other on the list of wearables, it's not just about them being wearables. it's they're such diverse companies. you look at the valuations, i think a lot of those are deep still. >> doc, you must love intel as well still. >> both are in my playoff playbook. i like sky works. i think all those as part of the wearables and part of the iphone
ecosystem are big winners going forward. >> unrelated somewhat but i want to talk to you about mobile eye. a stock for those of you who don't know, a stock that's gone crazy especially over the last week, two weeks, even last couple of days. yesterday had a missive move up. give us your take here. >> the stock doesn't need a defense. it's up 20% in ten days. any time a chart -- and this chart doesn't show it, but any time you see a chart go parabolic, look like the empire state building, probably not a great entry point. for new longs, they should shoot for downgrades and hope the damage is more severe than what we saw today. i'm long this name from 40. i changed my tune on it. didn't like it in the high 30s. then i realized this is going to be a big company. the question is now how much of that have they pulled forward? >> highly volatile for certain.
let's go around the horn and do final trades. pete najarian, what is yours? >> i'll start with zion's bank. this one is a little bit further down the chain. >> steve weiss? >> i think there's room in yahoo! to play the alibaba trade. >> potash. >> sell ebay. >> all right. that's it for us. "power" starts now. kid: hey dad, who was that man? dad: he's our broker. he helps looks after all our money. kid: do you pay him? dad: of course. kid: how much? dad: i don't know exactly. kid: what if you're not happy? does he have to pay you back? dad: nope. kid: why not? dad: it doesn't work that way. kid: why not? vo: are you asking enough questions about the way your wealth is managed? wealth management at charles schwab
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good afternoon, everybody. new evidence today of a possible slowdown. we will have details on that economic turn in just 30 seconds. the people seem happy about apple's new product lines. but does wall street like it? the stock right now basically becalmed. but it is up about 2%. 2.5%. it has been wobbling back and forth. shares of disney up 41% in a year. and today look at that.