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tv   Fast Money Halftime Report  CNBC  June 9, 2017 12:00pm-1:01pm EDT

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ing about the onerous regulations that washington has put in place. the permits it takes to build stuff in this country. complaining about that. say heg knows from the private sector having heard yet a lot about what he proposes to do about it in terms of fixing the infrastructure and how it's going get paid for. maybe he's going there next. >> keep our eye on that. this week, coming to a close, fed week next week. let's get to wapner and the half. >> thanks so much. we continue to keep our eyes on the president of the united states who is speaking at the department of transportation. john harwood has been listening in. a week that was billed to be about infrastructure finally gets to it. albeit on friday. what do you make of o the comments and where do you think the president's agenda goes now? >> these comments were familiar. they're complaints about the regulatory process that the president has made before. the president still has not laid out a proposal on
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infrastructure. so i can't be evaluated until they do that in general. his approach is to lay out $200 billion over ten years in public money as a lever to try to get private sector money investment through tax credits, also get state and local money and democrats are likely to resist that kind of a instructionture of a plan, which makes it propmatic a because a lot of republicans aren't that enthusiastic, they're looking to cut the debt, so this is something that's as you indicated, overshadowed all week by the attention on first terrorism and the lond attacon s and the fight with the mayor then. then the james comey temperaturtemperaturstimony, that's really blowing out of the water infrastructure week. >> thank you very much in the nation's capitol. one of the reasons we were so interest ed in hear frg the president today, wondering if he would make any public comments
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from the testimony yesterday. the president choosing at this point not soto do so, other thap in an early morning tweet in which he called him a leaker and his testimony resulted in complete vindication. so we'll continue to watch the president, to see if he makes comments. the markets mall veling in the fact they continue to go up. new highs almost every day. and yet again, new highs today for the three major averages. the vix had a 24-year low earlier in the session and at the left side of the screen is a really telling story along with the major averages. 958 is where the volatility index sits. that's a drop of some 6% today. the dow is up 95. s&p is up nine. that's one-third of 1%. we've got a whole gang here to talk about this. josh brown, steve weiss, jim levin that will, he is one of barren's top 100 financial advisers. kevin o'leary is here.
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and also with us today, another special guest, ed, the president of yardeny research. let's begin our conversation with the markets. josh, what do you make? i think it's the amazing resiliency this market continues to show. despite the noise on different fronts. geo political and here at home, new highs for the three major averages today. >> so, if you told me years ago the just fired director of the fbi was going to sit in front of congress and call the president a serial liar and the stock market would have hit a new high on that, i would have said you're absolutely crazy. if we don't pay attention to behavior and the types of buying we're seeing and we stick to a narrative that is maybe more comfort bable and has less cognitive disdense, we miss out on big move fls the mark. this narrative, it's five stocks driving everything, that's not
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the case and in the last two day, something new has begun to happen and if it continues, the bears are absolutely dead in the short-term. we have the s&p 500 up half a percent. in the last two days. the russell is up two and a half. when you rolook at even today, have new highs in the s&p, tech is flat. the xlk is flat. then you go sector by sector, you look at for example, big bank, xlf, up almost 3%. bio tech xpi outperforming thea caps. if we get participation from the russell, that narrative about the big five stocks doing all the work is out the window and then you have another problem if you're short this market. >> kevin, bears here? >> doesn't bother me that fang
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is ruling in market cap because these companies touch every sector of the economy. i don't care what you do in what sector you're in, what business you're in, you're using the services of one of these five if not all of them, so, to me, the diversification is the fact they touch the economy in such a big way. what alove about what i'm saying in just beware, i would invest these days, mid cap small cap is is blowing it out of the water. while fang is stalled, we've had almost a 3% move in small companies. it's about time. i'm thrilled. i use footsie for that. >> one of the most telling signs about where the rally is where really dead on to what josh said. we had noted a couple of strong days for the russell last week. transports had started to participate again and you've gotten follow through and despite the notes about frank where wall street is questioning whether they're too expensive or
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not, maybe that's the place investors should be looking for where this rally is going to go next. >> in my view, there's a lot of complacency out there. that is abetted be by what josh pointed. we have testimony yesterday. just an unending stream of events that in normal market, have put everybody in a syons in cash. safety treasuries. >> remember, the first whiff of these comey memos sent the dow down 400 points. >> agreed. so my view, ask me what i'm doing about the complacency, nothing. i headed to the port yoel owe. still got a decent amount of cash because there will be a pullback at some point and the mid cap small cap game shouldn't be a new game in my view, it's never buying indices. it's buying stocks. you buy stories, stick with them. got to be foolish to trade them. your head could have been spun
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around a thousand times. if you buy them at the right price and stick with them, it maybes great stories. gl at least today, you could show the intradays on the major averages, nasdaq taking the dip. people are getting out of some of these bigger tech stocks perhaps and putting it -- >> it's been going on all week frankly. >> i point out what's happening at this moment. >> it's picked up steam today and yesterday. no question about it. the financials are rallying. that's a great sign technically. it also as a subset of what i've seen for about nine days now, which is that value is sfatarti to outperform growth. what i'm pointing out is that this market can go higher on the legs of leadership from areas that have lagged thus far, so financials, you might see it in energy, but you're see iing the whole value structure, the russell 100 value nicely outperforming the russell 1000.
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i will tell you, i agree with what he's saying. financials and energy. i disagree, no surprise i disagree with steve. we talked about this earlier, i don't see investor complacency. i see invested skepticism, i see people looking for reasons not to be in the mark. >> what's the message of the vix where it is? if that's not a sign of complacency, what is it? >> it's a sign of term structure. >> i'm not asking rhetorical, eithe either. >> you look three months out, the cost of hedging is still high. you kind of look at the amount of cash on the sidelines waiting to come in. it shows you the bid that's under the market. it's no surprise to me. >> why do you say it's going to come in? maybe it never comes in. you've changeded. >> animal spirits will also come in. especially with fundamentals. >> it's different than euphoria. we're in complacency. >> animal spirits will come back as fundamentals overtake
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headlines, which they have been doing. unemployment at historic lows. debt services. balance sheets strong. earnings great. political risk starting to go away in the euro zone. there's an enormously positive fundamental story here and i think, i think what you're going to see is markets going higher on a rotation from growth to value and from u.s. to non u.s. it's going to happen. to me, that's the definition of complacency. only seeing everything president obamative, positive, positive and not seeing what could go wrong. >> i think it's acknowledging what the risks are, but terming what outweighs what's out there. >> the most important risk is that investors getz some bulk from the blue, whether that's impeachment, if anything could happen. >> that knocks us into another
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atmosphere. >> these risks you talk about every day on this show, the piano doesn't hit you in the face, itd hits you in the back of the head, so it's going to be to be something to get us off this fundamental base, which is really, really positive. >> is that from pennsylvania? is that like an old time -- >> hits you in the back of the head. that was a good one. how about growth doesn't get 2% by the end of the year. there's a lot of optimism that earnings are going to be picked up, rate hikes because they believe that quarter by quarter, gdp growth will finally get past the 2%. now, if you don't believe that, at some point, these expectations given how productivity is is about as good as it can get, are going to be missed and that could be what you're looking for from pennsylvania. >> i don't think that's what it is. >> i appreciate all of you
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wanting to get in, but i have denny here, too. >> thank you. this is a bull market, obviously. it has been for a long time and it's been a bull market that has been plagued by these recuring anxiety attacks. i kept a diary of these things since march 2009. there's been 56 anxiety attacks. some were just outright corrections of 10 to 20% and some were mini corrections. i include the brexit as a mini panic attack, only lasted two days. i started to detect after we didn't go off the fiscal cliff in 2013, my clients were getting aung hit fatigue, just getting tired of being squared we're going to fall into 2008 all over again and the fed wouldn't have any tools, so i think that's what we're seeing. time healing all wounds. >> you have suggested you thought maybe it was the last time you were on, that was many, many months ago, that you suggested we had entered the
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final stage of the bull market. how long does it draw out? >> i'll stick with that. i think we may be, the final stage, you get ewe fuphoria and >> is that it. >> are we at that point? >> well, i mean b, you look at multiples. you look at a ratio, you look at i mean, you know, i have a chart that i showed, fund flows into etfs on a 12 month basis. >> it's wonderful, ed, absolutely wonderful. >> ed, why, so, say people are reading your stuff and they agree with you and i do. that the u forarea, wriklike we went into 1999 overvalued, then doubled, so, if you know that's possible, okay, then why not just use trend and quit this game of guessing where the lightning bolts coming from, what's the pe level that day. >> the next session, the next bull market will happen, i think
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the market is coming around to it. i was in boston visiting. everyone seems to be coming around. this could be slow. could be 2% growth, but that might mean that inflation stays really low and this lasts a long, long time and that there's no boom, no bust. >> wouldn't youyou rather see a expansion opposed to close toye? >> yeah, if you don't have a boom, you don't get a bust. >> in 2018. if that's going to be the case, we'll start missing estimates. >> as you know, they come, they're derived on a global basis and i think one of the things that's happening is emerging markets have finally started to emerge. my key for that, this bull market globally has been aroubo the dog that didn't bark.
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in the past, they would have gotten killed. >> may 2013. >> we have the dollar. >> if you have inflation as low as it is, that's begotten by 2% gdp growth, you can have high multiples. that works. you can stay there. >> there's a name given to that, it's called goldilocks. >> don't jinks it by giving it name, but that's what we've had. >> you don't want to get hit with that piano, pal. >> that was one of the terms that banks on wall street have put out. whether we are about to enter a goldilocks economy or if we have one now. everybody stand by. pandora is a big story today, it is moving hire after a sirius xm
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invested $480 million in that company. let's bring in pandora activist investor, keith meister, he joins us on the phone. welcome back. good day or bad day in the big picture for pandora shareholders despite what the stock is doing today alone? >> i think today, big picture is a great day for shareholders. it's been a long process and there's a lot that can be talked about about the process, but a lot of that is undwater under t bridge now. the it's the beginning of pandora 2.0. today, you've got a $480 million investment from probably tmt ease most successful investor. greg malone, lib erty, through their 50% owned enter it, so a huge vote of kfsz from an investor, that if you have a habit of follow, it's worked quite well. that investor owns a stake in a large succeplayer in the music
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ecosystem in terms of sirius, so a prudent player is investing in pandora. plus, they have $200 million from selling tickets live, so $700 million of cash on a balance sheet of an internet company with a history of poor execution and undermonotized excuse, so that now gets realigned with an owner that's going to own 20% of the company. have three board seats, be the chair and i think there's a huge new opportunity for a new pandora 2.0 about execution and taking advantage and opportunity and if you just make things real simple for a second and if you have a habit of investing when liberty invests in things, whether it's charter, liberty global, sirius or formula one, i think these guys have a great nose for making money. so having them as a partner will help. as an existing shareholder. i think the structure was thoughtful f. we were able to sell 20% of the company that represents the opportunity over time, but we got a partner who can hadadd a
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of value and we've got an upside that will be worth a lot more by being part of the liberty family. >> how long does it take for these folks, sirius folk, john malone's group and others to turn this around? >> look, i don't know. time will tell. but you know, it's not going to be overnight. but i think having new owners and the capital to invest to accelerate growth, what has liberty done well over time is they've executed operation ll li and have been great capital allocators, those are two things that pan ddora has not done. the deal hasn't fully closed yet. board members have to get in place, develop new plans. i'm sure they have thoughts and all that, but i think it's great symmetry and optionalty because there's got to be a lot of fruit hanging quickly from having the benefits of their experience this judgment then over time, there's probably lots of other synergies and benefits that come from being part of their scale
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and you know, having the benefit of a larger ecosystem. >> not asking you to sort of fully put your whole hand on the table, but it sound to me like you're sticking around. >> our sense is pandora is worth a lot more today than yesterday because of this transaction. historically, i've been a big advocate of pandora selling itself because i thought it needed scale and needed to be part of a bigger system that had a lot of execution success and credibility. i think this transaction gives us a lot of benefits while continuing to have 80% of the upside. right now, there's asemitri for the future. >> of course, there are a couple of different views that i've read that the street is passing around today in the analyst community. one is and you know, i love your take on how much of this you think is in the stock today. certainly an improvement in
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sentiment. i can hear it in your voice, your tone. the flip side is how much of the fundamentals here about pandora's business are really improved through this infusion? well, look, i don't think just infusion improves the mu fundamentals. i think they'll get improved through t blocking this will allow. so, the fusion gives the company two things. the cash and resources to succeed as well as additional intellectual capital. so f you combine these thoez two thing, you have the two critical elements. now, is it guaranteed they succeed? of course not. but liberty is probably the most successful organization at investing companies taking board seetds and he willing good overseers of putting the ceapie in place to succeed. they're a great product. as shareholder, we were as i'm sure the management on the board of pandora was, very disappointed by the failed
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problems of the huge potential of the business. it's a great product with great potential. you combine that with capital and no know and the future is better than the past. >> does it matter to you who ultimately runs this thing? >> look, i think that's a decision they make and it's a boundary list distinction, meaning the company's being run up through the ownership chain of sirius and liberty and i think of them as one voice and they're determine who the right three representatives are. but when you look through, you're going to have three of nine board members come frg the large shareholder who go up in a chain to john malone and it's a very strong and healthy chain. >> great to get your insights. thanks for calling. keith meister. big pandora shareholder. back to the conversation we were having on the market. we talked about the fang stocks. goldman has a note today questioning whether fang is mispriced and if many of you are
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correct, you get a drop in those names and a shift elsewhere. >> you might be surprised. some of the names are more expensive than others. for example, microsoft selling 31 times earnings, but with % growth. that's not cheap. facebook, 38 times. with 25 to 30 times revenue growth. that's pret it reasonable. >> i don't understand why people consider facebook b a tech company. it has nothing to do with text message. >> you could say is apple a
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consumer products hardware company? >> stay on facebook for a second. they have changed the way people spend money advertising. i have never seen efficiency like i see today in the 40 plus private businesses i have that deploy the facebook platform. unbelievable. >> it's not a billboard on the highway. >> the companies in tech that have patents, they have the least. >> no, kevin, the network is the proprietary part. they have 2 billion users. >> you have to look at the metrics of kadvertising cash flw to put a value on that company. >> are you dumping on facebook b here? >> it's not the same as a microsoft. it's driven by enterprise values. >> don't companies have to market just like they have to use technology? don't they have to use
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customers? i say why with we considering this. zpl google, 34 multiple on 22% annual revenue growth. >> another advertising platform. >> why? >>. >> forget the revenue growth, it's the earnings and if you look at next year's earnings, that's where it's going to come from. sfl zbl i'm giving you the stats now. 14.5 times next year's earnings, you compare that to something else. this is your point. something else in fang. like netflix at 86 times. >> netflix is absurd. >> my point is your point. they shouldn't be an acronym. they're not the same company. >> if the nasdaq need to blow off a little steam and some of these stocks need to come back
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down, to earth or whatever you want to say, even a little bit. if that money finds its way into another path into the market, that koolt r koot cool with you? leadership can change.behaved, reasonably democratic marketplace in the sense you have certain groups doing well for maybe six months, a few week, then suddenly, they look at the staples and utilities. as the bond yield came down out of the blue, they were performing on technology stocks. it can make your head spin. it's a bull market and staying fully invest ed for now makes sense. it could be a melt up scenario and watch out for a meltdown, but that doesn't necessarily
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have to lead to a recession, so it can main a bull mark! if if wha if the fed screws up? >> they'll only screw up if inflation makes a surprise iing comeback and so far, it has been surprisingly low. i think it's dead. >> would you come in on gold? >> gold is a commodity, a currency. a hedge against inflation. i think it's mostly a commodity. >> it's a winner this year, i'll tell that. >> it kind of defines the underlying trend in commodity prices and so, what gold has been telling us since the beginning of last year is that the commodity rs coming back b. that's what the -- it's a mistake. gold can be a scare trade, whatever you want. >> you never like gold. it's that i'm an intrinsic investor. i cannot find and analyze what
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the value of gold is because it's such an emotional curran issy. got nothing to do with commodities. >> as an investment strategy, i agree with you. trz the correlation have been the tipsy, the real interest rate is still extremely tight. so i'm not a big fan of gold. i think just because that's just not what i do. going to get a last word. >> gold is interest tog your point. it's a hunlg against unexpected outcomes and the problem bability of an unexpected outcome has gone up, so i think what you're seeing is gone performing unison. i don't love gold as an investment, but as a hedge, i think that's why it's doing well this year. i also think -- >> it's gotten so popular. it's a momentum trade. it's not going to work as
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advertised. >> never does. sx >> we're out. ed, thank you. good talking to you again. suze lee has a market flash on a stock on the move. >> that's right. draw your attention to rite aid which was halted for volatility. we're still down close to 12%, this is on the back of a report quote quoeting capital forum, who say that is the ftc is set to prepare advice to block the rite aid walgreens deal. this deal came in 2015 when walgreens offered to pay 9 tlrs a share. looked like they slashed their price this year. that's contingent on whether or not rite aid can divest some of their stores and capital forum saying the ftc is basically advising a blockage to this deal. back to you. >> thank you so much. we'll continue to follow that story m kobt to watch the markets hitting new highs yet again today. a lot more halftime is just ahead. coming up, andrew left
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doubling down against nvidia's big run. the stock is up 230% in a year. he's with us live on that and the big name tech stock he says you need to buy. before the break, top performing bank stocks after the kbe, the s&p bank index jumps 5% in a week. our data partners show great western bank and citizen's financial perscriptiformed best sold five sessions late. for more, go to the gang are back in two minutes. e new guy? they call him the whisperer. the whisperer? why do they call him the whisperer? he talks to planes. he talks to planes. watch this. hey watson, what's avionics telling you? maintenance records and performance data suggest replacing capacitor c4. not bad. what's with the coffee maker? sorry. we are not on speaking terms.
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we're back with an all time high today after bullish guidance. they raised the target calling for another 15% move from here. our call of the day. maybe the best performing stock we never talk b about. i don't know why because it's performance is up 41%. >> fe dush yars look at it and say if i want to have exposure, i can by amazon and get u.s. accounting, versus which, which not saying it's bad economy. >> you wouldn't be the first one to say that. >> i can't find anybody who owns 5% in this thing because they have a responsibility. they say if i want exposure, i'll take it with domestic
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accounting and the sec looking over my shoulder. it's a couple of things going on. hedge funds love it and some large asset managers because it's not in the s&p 500, but it's enormous. so you can take a big position that's meaningful and every dollar you make inia alibaba is 100% pure alpha. they have a big position and they're not going away and they make the point kevin make, who knows what's going on here. there's some validity, but the report, the it's nyse, just like every other company. there's not nonvalidity to that. the third thing i think is key here, is that the story is starting to catch on amongst retail investors. and it's this. it does what four of the top five u.s. technology giants do, but it's doing that in a market that's potentially five times the size.
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they have international ambitions like our tech giants, which is new for chinese meta caps. they're making acquisitions here today. >> this is a microcosm of the market. we know there are these issues. the governance issues. the lack of transparency, so we've got these litting nick, right, but so what. buy it because heit's a cheaper play than amazon. this has a valuation. i'm not depending it. i know there are issues there with the company. >> i regret not owning. tell you the truth, just can't get there. >> you're not suspicion that they have higher margins than amazon and amazon is a behemoth in every market they're participating in. does it not bother you? >> they operate in china.
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here, it's capitalistic site. >> that's the last time i'm investing in companies. >> stock has doubled in 14 months. in the meantime, it's going up. >> i have two business models. one has 30% higher margins. should i with be suspicious, maybe just a little. >> they are. >> do not miss that company's president, mike evans, on monday on squawk box. 8:00 a.m. ahead, andrew left is short on nvidia. and the one stock he says to buy right now. he's going to tell you where he thinks it will trade from here after its enormous run. halftime is back right after this.
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news update. nancy pelosi says she has concerns about president trump's fitness for office. and says that he should start with getting more sleep. citing his pension of tweet ng the early mornings. >> take me all day to tell you what i think the president should be doing. start as i said on one of the shows this morning with a good night's sleep. the president's fitness for office is something being called into question. >> thousands of people joining u a huge party in the streets of tel aviv for the city's annual gay pride parade. the largest of its kind in the middle east. israeli police mating more than 1,000 people participated. vintage sneakers made by apple are going up for auction. the bids will start at $15,000 because they're prototypes in mint condition. the auction will take place on sunday. that's the news update at this hour. halftime report is back after f a quick break.
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welcome back to the halftime report. the u.s. dollar rallying today on pace for its best day in a month. this as the british pound fell
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on u.k. general election results. jeff killberg, you buying today's dollar move? >> it is nice to see the dollar strength, but look at the u.s. dollar index, up over most is major currencies, but we have t seen it laying on the map. is this heart attack restarted, it could be. seems like there's a lot more uncertainty to unravel subsequent to the election. has to get above that 97.50 level. >> jim, what do the technicals the tell snus. >> the level is about 97.90. the down trend is still in tact. as is the upmove in the euro. i think it could explore up to about 97.90, but realistically, this does not really change the story that existed before the u.k. election. real istically, the u.k. electin in the market, the pound just didn't like the surprise ending. realistically, it's a better, softer brexit sort of result. so, ik the dollar could head
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lower. >> for more, check out our live show when we return with it next tuesday, 1:00 p.m. eastern time. that's on futures now. halftime is is back after this. this is where i trade andrs. manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities- trade confirmed- and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit to see what adding futures can do for you. to be a nightmare! does nobody like the future? c'mon, the future. he obviously doesn't know intel is helping power autonomous cars and the 5g network they connect to. with this, won't happen in the future.
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thanks, jim. there's some napkins in the glovebox. okay, but why would i need a napkin? you could have just told me a bump was coming. we know the future. because we're building it.
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welcome back. another warning on nvidia. you can see the stock was up
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about 5%. it is now down by more than 4%. andrew left is joining us on the phone and jim cramer has made his way to the set as well. andrew, i've got jim sitting right here. what is this note today? why were you compelled to put something out on nvidia today. >> you call it negative. i call it truthful. i thought the market was a bit overreactive. i think invitd individunvidia i company. two years ago, i said, no, don't look loot amberillo, look at nvidia, but it get to a point when it adds the market cap of its competition, a and drk, in a matter of duodays and you see the way the stock is trading. it's no longer a stock. it's a casino. >> i've got jim cramer. >> yes. >> i go back and forth. andrew, how are you?
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>> great, thank you. >> okay, andrew has liked this company very much which is different than says it is a company that is a fraud. >> thes short though. >> i'm still as we speak. >> i would be, you know -- >> yeah. >> andrew's got much more -- great conviction. i would be afraid to be short this. i use that word on phrase not lightly because this has gre greater -- every time now that it goes up there's a guy who raises the price target but it's on the same thing over and over. i like the stock. after it cools off i will tell people to get right back in it. the reversal is telling. i was telling david faber i no longer want to be known as jim. i want to be known as nvidia. when you do that, that's my sar cass it particular way of saying, whoa, come on! it has gaming chips and it's switch. >> it's a great company. google is a great company.
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there are a lot of great companies out there but you have to understand these are companies who have stock prices attached to them. because of that when you add $12 billion because an upgrade from citi, the crazy part, as i wrote, the bear case on citi was $100. that's the bear case and that's where the stock was a month ago. so it's over optimism. it's discounting the competition. it's understanding -- not understanding the market factors. of course nvidia is not a fraud or a scam. it's a wonderful company. unfortunately, it got way ahead of itself. >> you're talking about two different things. you're saying the stock got ahead of itself. jim just gave you many of the reasons i'm sure he has more up his rolled up sleeves of the fundamentals of this company to justify the optimism behind it, maybe not at such elevated levels but you get the point. >> exactly. by the way, the stock is trading $130 that's still great optimism behind it.
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the stock was $100, what, a month ago. is $139 optimism? the stock has to go up every single day in order for it to be a good company? >> that is the issue. it shot up after that quarter. >> most importantly you look at the volume and a pullback is good. if you want to be an investor in the name, you want the stock to go to $130. if you want to be a trader, i think yesterday was 20 million shares. today it's 30 million shares. it's no longer a stock. it's symbols that got carried away. people are discounting the rollout of data centers, the rollout of artificial intelligence, the possible price competition. i see all of a sudden people are discounting -- google put out their tpus and people are just look iing at this -- it's not ao risk trade go higher and at the same time it's not -- and then i understand people say what about a it tesla? it's not that.
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it's not some dream stock that has future wrapped around it and that's it. it's a real company with real earnings that will do real things in the future. it just did not deserve to be at the price it was trading at. >> the andrew, people are now talking -- i don't like this either -- people are talking how it could be the next intel. 1987 was a dollar. in march of 2000 it went to 66. that's a 6,500% return that would put nvidia at 10,500. i heard this today. you see, when you hear this stuff, what you say is, whoa, do you mind if i let it cool off. do you agree with that? >> i'm looking at a chart of intel right now and i'm just watching a slow ramp-up that went along with the business, so i have no problem with them growing into the business and having it, but intel is getting credit for their current business before they even had it. >> so it goes to $130. you cover and then you go long? >> i would reconsider. i would like to see the next quarter before you make the
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conviction to go long. it's still the gaming business. there's a lot more factors involved. i thought $130 was more realistic of a target that i saw $180 and $200, no doubt. >> i would say between andrew and jim this is the best discussion about nvidia i've heard in a long time. what we're all doing is acknowledging you have to set aside the difference between what's going on with the company and the markets with a publicly traded security, and they are not always linked at the hip. and right now i totally agree probably 80% of the trading volume from one day to the next is being carried out by people who have no idea about the company's chip architecture and the ideas behind what it's going to be used for, et cetera. they just see a security that trades at 1.5, 50% more volatile. that's what's attracting trading volume. it has turned into a casino. i think that's temporary and like jim i would like to see the
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stock come in. look, i'm long from the 50s last summer. i haven't sold a share but i can acknowledge the fact maybe it doesn't have to go up every single day in order for it to be a good company. you have to have room in your brain, but i want to address the intel comparison. it may be that's a very apt comparison. you don't need the stock to go up 6,500%. if you look at 1995, the launch of windows 95, pent yum chiium . if that's the case and we're looking at 2016 as nvidia's breakout moment, if it turns out that way, we have a lot of time ahead of us to play out. b, it's only up 450% since then which is a third of what intel -- >> there are so many different platforms. >> no, there aren't. you're wrong. >> i don't agree at all. if that's the analogy --
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>> chip platforms, what else? >> that model, the relationship between the sale of its operating system onto a platform with chips is not what we have. we have a cloud-based business. >> let me ask you a question. you're in a self-driving car -- >> we have to wrap this up. >> do you want to chip in the car that know when is to stop or the car to be talking to a cloud? >> i love that except it's no near buying a unit. that's what was going on then. >> this is exactly like qualcomm was in 1999 and 2000. >> this is the only real platform. people think lamb research, because i believe in the humanization of pets and i believe in protecting animals but it's a semiconductor equipment company. >> andrew, thank you so much for calling in. jim, thank you. >> great day, everyone. >> i'm with you. >> final trades next. to anticipate is lexus.
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consternation there. >> the rest of the refine remembers are breaking out right now. this is the final euphoric push, another 10%. >> josh brown? >> just following up on nvidia. i agree with everything said. >> thanks to you for being here. have a great weekend. thanks, scott. here is what's on the menu, why this is a bill murray "meatballs" it just doesn't matter market no matter what you throw at it. trump, comey, the uk elections, even north korea. stocks just keep heading higher. the real reason. bad news is still bad news, retail. we'll take the wraps off a new report. name names on a list of stores that might be in big trouble. and light fedex and domino's, we deliver. you've sent us your stock questions.


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