♪ ♪ ♪ welcome to the power, longevity. alongside kelly evans, i'm tyler matheson. glad you can join us on this thursday. coming, up another downgrade for apple. stop down more than 5%. so far this year, and it's a really. concerns about iphone demand are growing. people talk to the analysts behind that latest fall. >> plus, eli lilly taking weight loss drugs directly to the consumer. they are setting up a new service to help people get tell health prescriptions. we will ask a doctor about the potential implications. first, let's get a check on these markets with the dow up 128 points, the s&p up three,

but the nasdaq cannot snapped its losing streak. it is only down 15 points but trying to snap its longest losing streak in several rios time having -- i believe since 2005. >> and shares of walgreens boots alliance getting crushed today after the company cut its dividend nearly in half. the stock is in the dow for the time being. since the dow is price weighted, this drop only costing the index about ten points. it's a 23 dollar share of stock. we begin today, however, with another apple downgrade. the second one this week. today is downgrade coming from piper sandler on worries of cooling demand for its products, particularly the iphone. shares dropping now to an eight-week low, as bringing the person behind today's -- senior research analyst with piper sandler, also with us is cnbc technology correspondent steve kovach. why don't you explain the reasoning behind your call today? >> first of all, thank you for having me on your show.

i think there are five things that bother me about apple at this point. first of, all we see handset sales challenging in the first half of this year. apple gets roughly 50% of its revenue from handset sales. it automatically becomes a big deal. we see units recovering a little bit in the second half, but it's going to be a lackluster year with mid single digit growth. we also anticipate that following a week christmas, there will be some inventory leftover into the march quarter, which could potentially spill into june. we also feel that it's been a long time since apple has done a form factor changes. the forms are all looking old -ish. they keep upgrading the camera, that people anticipated that. point number two is really interesting. they have a lot of legal headaches, all of a sudden. the watch is a problem right now, with the issues around the lawsuit. on the services side, you saw a google used epic, which can be a problem. it could come back to apple in

the form of a lawsuit. we also know the doj is questioning the browser and the payments apple gets from google. all this could be a sideshow distracting the motion. point number three is apple gets about 20% of its -- >> let me pause there and i will let you pick up on point number three in just a second. but i want to bring steve into the conversation because harsh has laid out to very key points here. number one is slowing handset sales and legal disputes that the company is facing. >> it's not just that legal disputes that apple is facing, legal disputes that google is facing as well because google makes part of that case doj is suing google, of overpayments google mixed apple, from 19 billion dollars a year or so ago, it could be about that again. that puts their services business, it's basically a free check that apple gets all the time. something harsh did not mention is the regulatory, part what's going on in the eu, which will

force apple to allow users to download apps from outside the app store. those are all missed sales as well. >> harsh, pick up where you left off, let's go to point over three, which i think is the chinese economy. and you don't know where and how strongly it will come back and where apple will fit in it. >> the issue here is that apple is about 10% of its revenues, or phone revenues from china. we just don't know how long it will take to recover, it could be six months, it could be a year, it can be a long time after that and the last two points are these evaluation running higher than the five-year average, 27, 28 pack, about 24 times. it's had a great run. i think it is time to take some tips off the table, quote unquote, and just wait for a little bit of a pullback. i think it could be constructive. >> harsh, what is this in some ways a reaction to barkley's making the same move? if you did it on monday, you could've had the whole market moving over as a result.

to put it differently, i wonder if we should expect more of your colleagues to follow suit now? >> i can't say for what my colleagues do, but we had a 30 something great report we were working on, we downgraded several names. as you saw, we went negative on the chip sector on a lot of scenarios on the chip sector. in fact, one of the few things we like is we like memory a lot and we like generative a.i. and computer logging. outside of, that we are sort of dour on everything else. the stocks have run up a lot in the fourth quarter, which is a cause for us to worry some more. so that's another thing that's happening. but yeah, it was a long report and it just happened to be a couple days for our competitor. >> that's interesting. you had really been working on this for sometime. does the chip -- tell us how these to relate. the weakness you see with apple, the weakness you see with chips. >> the two are little bit different. obviously, the handset sector affects things a lot for apple. again, 50% of revenues for apple comes from the handset

site. outside of, that the rest of it doesn't really correlate. on the chip side, we are concerned about the high interest rates we've had for a long time now. and these high interest rates can skew the spending habits of consumers. it puts a lot of pressure on them. you have things like automotive and industrial, which are live segments of the sector and market that are finally starting to cool off. you have a bunch of analog companies come out and say there's inventory in the channel. how are you guys starting to sound the alarm? we mobilized this morning. we feel like things are starting to fall apart. it could be a quarter to two quarters before all the numbers are reset. and so, we don't like analog, we don't like handsets, we don't like consumer chip stocks. we love memory and we love generative a.i.. we love nvidia. >> i was going to ask, what do you like, harsh? he loves generative a.i.. steve, why don't you jump in with a comment? >> we've got to talk about computers. apple also makes computers.

the mac business has just been in free fall for the last few quarters here. a lot of pandemic buying, they put out their new chips in the max that were very successful. today we get this from acrosin of saying we will put this copilot button on keyboards and -- they are calling it the year of the a.i. pc. i don't know what that means exactly other than -- >> everything you're saying captures what we've been talking about this week, which is is there some kind of real problem with tech? or is microsoft and is a.i. the new apple, the new ecosystem? >> that's exactly it. >> they are the best idea right now to integrate into the computer's. >> that seems natural. let's go back to the 90s and early 2000s, internet pcs where the big thing, right? now they are trying to inject this a.i. into pcs and calling them a ipc's. i don't know what that means beyond just putting some good chips in there. as far as the capabilities, what can i do now with this a ipc that i couldn't do a year ago with a non-a.i. pc? they are not explaining that. microsoft actually has to do

some work here. fill that gap. the harvard manufacturers have the shell that needs to be made into whatever this magical -- >> it would be a button on my keyboard to launch copilot, which is their a.i.? >> that is good. beyond the copilot thing, what is in a ipc mean? you don't need one of these a.i. pcs to run the copilot? we. you can use the computer you have right now to run copilot. the real question, is what are they going to do on the softer end at microsoft that is so special, in this windows ecosystem that makes a.i. pcs on the big thing that they keep -- they've been hiding this year. >> i tell you, a button on my keyboard that would take me directly to a place is not a bad idea. whatever the places. >> and the computer you have right, now there is a windows key that takes you to the start, they do that about 30 years ago. that was a big change. this is a first. >> look at, that man. this is the next big change that they are making to the keyboard. it is interesting. i was eight years old the last time they made a big change to

this. no they are -- this is a signal of where they want to go with it. >> you changed my whole life. i had no idea. >> stephen i were so excited when it came out, like wow look at it. >> finally, finally. >> hard, thank you very. much happy new year, my friend. appreciate it. harsh kumar. >> thank you so much. >> we will see you soon. and steve kovach, thank you. >> speaking of apple, our next guest just increase its stake in it, even as everyone else has been backing away, and says he will keep buying it if the selling continues. let's talk to kate fitzgerald, fitzgerald group -- it's good to see you, welcome. >> thank you so much for having me back, it's a pleasure. >> unbridled enthusiasm for apple here. >> i think this is a golden opportunity. both of your former guests are obviously extremely intelligent guys. they know their stuff. i respect their opinions. i don't think we are living on the same planet here. we are looking at apple and we are seeing a golden opportunity. you've got 200 -- a sensor platform, you've got a billion paid subscribers. you've got a business that is

going 30, 40, 50%. and the services are censoring network, worldwide at this point. they are getting into finance, this is the year they will hear a.i. and apple in the same sentence. i frankly don't get it. i'm perfectly happy to buy more shares here. >> and when we talk about buying more shares, give us the case, keith, that this isn't the moment that we look back on and say, no, that was the year apple mature and its market cap never got back to where it was once. i keep the can buyback stop and it would do just fine. >> look at it this way, kelly. respectfully, let me push back. people have been arguing with me for years saying, these big tech companies can't get bigger, they can't possibly be getting more popular, can't be getting more valuable. that's exactly what they've done. throughout all the economic weakness, i haven't heard one person giving up their iphone because they feel inflation is getting too high or they are -- you cut back on the groceries, these other things. the company has an m.o. that is proven and proven unproven. they come in, they wait, they watch, everybody does their

thing, and then they come in with more crash, more cash, and a better consumer offering. i think, again, a pullback like this, if you're talking about the next three, four, five weeks, fine. but over the next three, four, five years i think you shoot yourself in the foot. >> what about some of the longer term issues that harsh raised in his sort of essay on the company? one is the not knowing about china and the competitive position in china for apple where they get 10% of the revenue, that's number one. number, to the criticism that the company has not broken through with a new sort of form factor or breakthrough other than incremental improvements to the existing product, incremental improvements to the camera on their flagship, the iphone. >> i think those are both very valid concerns. let's tackle the second one first. form factor, right? do you hear consumers complaining about their iphone? i don't. i'm perfectly happy, for example, personally to carry

mine. it's about the right size, about the right weight. it does what i needed to do. so i'm not begging to have a foldable phone or rolling phone or any kind of thing like that. i simply don't hear consumers talking about that. to me, that's a false flag argument. the second one, talking about your criticism of the company, where it's going from here, those are very valid concerns, but again this is a company that has a long distinguished history of watching competitors fight it out to be first in the space. learning from that experience, and then coming in and changing consumer behavior the way they do every single time they release a new product. i think we will see that again. >> you also bought microsoft, i remember you talking about video last year. where else? >> those are at the top of the leaderboard for sure. i was fortunate enough to get that right, this is a super tough business. i'm not giving up on these companies. i think they are within the context of what we've been discussing with apple i think they are absolutely viable must have companies that people for, five, ten years from now will kick themselves if they don't start accumulating on the

buybacks. -- the pull backs. >> maybe are the perfect person to talk about, this is the evaluation, nvidia, microsoft, is not that crazy. we are talking about, i don't, know around 30 times. but they've also been on historic runs, they are well loved, everyone owns them and so on and so forth. i don't think you could just address that and the broader stumble we've had here to start the year, especially the nasdaq, if that worries you or it sounds like it's just a buying opportunity. >> again, it's a buying opportunity, but i don't take these -- i'm not cavalier about this. we do our homework. i have a tremendous background in nonlinear science and i was king of the propeller edge when i was growing. up this is an interesting point you race. is it really expensive? accounting regulations are set up to value manufacturing and hard goods. they don't recognize or capitalized digital expenditure and investment appropriately. what you're seeing today is a shift in the way the world looks at these things. i would submit that accounting valuations, p e ratios, any of the classic metrics, no longer apply because you cannot advertise or your expense in

the digital expenditures because they don't come into the balance sheet or the penal for several years into the future. that is very different than making a widget, making a peloton, bike making an oil rig. to me, this is an opportunity, i'm less concerned with valuations then with growth. >> all right. keith, good to see. we appreciate it today. >> thank. you >> keep fitzgerald. >> coming, up lilies launchpad to consumers, a drugmaker going direct to consumer on weight loss drugs. what investors like you need to. no further ahead, a power player insole. the ceo of sun run will join us live from the goldman sachs energy conference. the company shares trading at a fraction of where they were in 2021, under pressure from norton short seller carson block. all that and more when power lunch comes back. in the u.s. we see millions of cyber threats each year. that rate is increasing as more and more businesses move to the cloud. - so, the question is... - cyber attack!

as cyber criminals expand their toolkit, we must expand as well. we need to rethink... next level moments, need the next level network. [speaker continues in the background] the network with 24/7 built-in security. chip? at&t business. ♪ ♪ ♪

welcome back to power lunch. shares of eli lilly are up today after they announced their popular weight loss drug can now be order directly from the lily website. recently, weight loss drugs have become wildly popular with companies talking about shortages, warning a fake version, and -- my next guest says lilies service could improve access and lower drug costs for consumers. joining us now is a practicing physician trained in primary, carried public health, and integrative medicine. doctor, welcome to the show.

we appreciate it. >> thank you very much. >> okay, have we ever seen something like this before, by the way? >> i don't think we have. i think it is interesting, the strategic plan here behind this move by eli lilly especially when you think about the potential impact it could have on the pharmacy benefit managers and a system of distribution and access to pharmaceuticals. i think in that sense it may be a really interesting testing case for them and for the market to see how people react to it. they've cut cost, increased access and they've kind of provided this direct to consumer outlet which post covid era we've seen that to be a really important thing, provided with tele-health services could be potentially impactful and in terms of changing the landscape on how these things are done. >> is this a threat to the pbms? when i do something, why hasn't

everyone sold drugs this way? are they elbowing that pbms to the sideline as we see a lot of pressure, regulatory and innovative and cost less and otherwise, coming to that space? >> i definitely think it puts the pbms on notice. with things like this starting to happen, these are disruptions that occur in the system. with the medical industrialized complex being the way it is and how we saw things pre-covid before we really push to the envelope in terms of what was possible from a tele-health perspective and access perspective. i think this whole idea of bureaucracy in health care, as high of a percentage of gdp that we spent on health care, more than any other nation in the world, it really begs the question, where pbms and other entities that are middle managers really serve a role in the future as we are trying to increase access and efficiency in terms of getting medications to those who need it most in a quick and cost-effective manner. i think this definitely is

something that is beginning to question the current status quo of this. i think we should question it, because that's how improvement and change happens. >> how would this work with respect to these weight reducing drugs? in other words, what i, the consumer, receive a prescription for my doctor and then uploaded to lilies website and they then sent me a kit, i have to inject myself, i guess? i don't know. how it work? >> they have created a platform where ostensibly they are still leaving the decision about this to the physician who will be prescribing it and they are going to either connect with a tele-health partner, it will do a video consultation, much like we are doing this interview right now, or connecting with a local doctor as part of a network that they've tapped into. and then from there, they should be managing the care. i think that is a really good point you bring up. with these medications in these gop ones, just like any other

medication they don't -- you can just have episodic care and counter where they will just get a medication prescription and then you are off and running and i will see you in six months. there are side effects and you need to manage that. there needs to be that continuity and if you don't have that continuity you are not getting good care and you need to be objective in determining who gets this based on medical criteria. i think all that is critical and then also getting the patient with the education as to how to administer the drug, all the things you would get standard if you went to your doctor's office. but this kind of cuts out that whole process of getting that initial appointment, which is very difficult to get both for a city management and because of our chronic shortage of primary care physicians, which is a big problem with the american health care system. >> kelly pointed out an hour ago on our program that eli lilly is up something like 1100 percent since 2013 and it's been seven aerate years in a row of positive returns.

let's get to the question of how big this drug, zepbound, could possibly be, or it's core in the medical auditorium. how big can they be? i was talking to a physician a couple days ago who said the benefits of these drugs go well beyond weight loss, per se. they go to questions of inflammation, cardiovascular health, even cancer treatment. >> absolutely. i think there's this new era with these glp-1s, and i think that there are many different implications for a lot of the chronic diseases. you mentioned cardiovascular disease, cancer, diabetes, obesity. they really do provide relief for the 34% of americans who are obese, the 11% of americans who are diabetic, and cardiovascular disease is the number one killer. i think it is a game-changer in terms of what these provide, but i also would just add the cautionary note that we need to

concomitantly n prescribed food and lifestyle prescriptions alongside these prescriptions. if you don't make these changes, which are really underlying components of these chronic diseases, you are not going to get lasting positive effects. i think we need to go hand in hand. when lilly does platforms like this, it's great to get the medication but it's also great to get a dietitian consult, a health coach, and someone to help people make those lifestyle changes. this could be a bridge to make those changes, which reduces inflammation and improves health outcomes across the board. >> clearly. what i hear you saying is zepbound maybe great, but that doesn't mean you can go eat a bag of chips every day. and during sodas. thank you very much, doctor, university of arizona. >> my pleasure. >> we will have you back soon. as we head to break, let's get a quick power check on the positive sides. software engineering firm a pam, wolfe research include

including the stock to outperform on the negative side. apa corp lower after striking a 4.5 billion dollar all stock deal to acquire callan petroleum. that's your power check. more power lunch right ahead. ♪♪ ♪♪ ♪♪ what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at walmart and drinkcirkul.com.

the first time you connected your godaddy website and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com --

once again popping above 4%, this time on a strong adp number, raising hopes for tomorrow's job report. rick santelli is in chicago with. more high, rick. >> hi, tyler. indeed, 164,000, not too bad for the best numbers since august. and we did see initial continuing claims also well behaved. but it was the holidays over the calendar last counter weeks, and sometimes it has a depressing it effect on claims. tyler is referring to the today chart. we touched 4% yesterday. today, almost an identical range. and if you open the chart of a bit, you can see it certainly looks like it is turning many traders that i deal with and sources say it certainly looks as if that 380 is the bottom, at least temporarily, on ten year yields. the dollar yen, look at this over three days, the earthquake

on january 1st has affected potentially and the pace of boj's strategy. in other words, many were thinking they were going to have to get rid of negative interest rates rather than later. this might postpone that. we see the dollar doing better. if you open the chart up to a two month chart, you can see how it has popped. that is the dollar. at this point in time, remember, the dollar index, its biggest percentage is the euro at 57.6%. the yen is second at 13.6%. don't expect to see a huge impact on the dollar index. tyler, the. >> all right, rick. thank you very much. and now to a market crash on mobile eye, which is tanking today. in bringing chip stocks down with. it christina is in the house with details. hi, kristina. >> quite the start for the auto chip sector at mobileye's massive guy down. the autonomous driving systems company expects a 15% drop in revenue for the first quarter this year because of excessive customer and mentor issues. keep in mind about 30% of

mobileye's business is exposed to china and expect from the company, a set to expect sales to be relatively flat for the rest of the year. and that's why mobileye it's having its worst days since going public in october 2022. its fifth straight day of losses, stock is down about 25, 26%. and a dire warning weighing on intel, since intel bought mobileye back in 2017 and is still the majority shareholder. it's not that bad right now, it's not that bad at a half percent. but the news also weighing on auto semis. svm down 4% in x b three and a half, on semi, three to half percent, and the competitor, which makes chips for ev cars, typically for the videos, fell about 6% on an analyst downgrade and continues to fall today, which leaves only three names positive in the s mh etf. overall, we use for the chip sector. this is also the first negative announcement from a chip company in 2024 and could be isolated to mobileye or set the tone for auto exposed names like on semi and expedia as they meet with investors at the

consumer electronics show in vegas next week. >> they will definitely have more to answer to. christina, thanks very much. kristina partsinevelos. let's go over to julia boorstin for the cnbc news update. julia? >> hi, kelly. now there is evidence russia is using north korean weapons in its war with ukraine. national security spokesperson john kirby said the administration is raising the declassified intelligence with the united nations security council. and he called the arms transfer a concerning escalation. kirby also warned washington thinks russia is trying to purchase missile systems from iran. several southern capital buildings on high alert again as they face a second consecutive day of bomb threats. the fresh wave comes one day after at least a capital complexes evacuated following similar threats. so far today, multiple bomb threats have been reported in mississippi, arkansas, and florida. and a child started the fire at miami dolphins star tyreek hill's mansion yesterday. that is the word from fire

officials who say the kid sparked the flames while playing with a lighter and a bedroom at the house. hill's agent says crews contained the fire to one room, but there was extensive water and smoke damage to the home. officials say everyone in the home made it out safely. kelly, back over to you. >> so scary. we have those candle lighters i'm always worried about, i don't no. someone gets in the drier. and julia, thanks very. much julia boorstin. still to come, solar stocks in the political hot seat. but sunrun down 15% in just a week. down 28% in the past year. we will hear directly from the ceo, next. the report is brought to you by pimco, a global leader in fixed income.

the first time you made a sale online with godaddy

was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com here's why you should switch fo to duckduckgo on all your devie duckduckgo comes with a built-n engine like google, but it's pi and doesn't spy on your searchs and duckduckgo lets you browse like chrome, but it blocks cooi and creepy ads that follow youa from google and other companie. and there's no catch. it's fre. we make money from ads, but they don't follow you aroud join the millions of people taking back their privacy by downloading duckduckgo on all your devices today. welcome back to power lunch,

everybody. solar stocks having a rough start to the year and getting hit hard today. following a pair of downgrades of sunrun and anaphase energy by key bank on valuation concerns. sunrun, one of the biggest losers in this race, down 6% today, but the stock has rallied in the past months on some optimism about the fed cutting rates this year.

i'll send it over to brian sullivan, who has an exclusive with the ceo of sunrun, to kick off our coverage of the goldman sachs energy and clean tech conference in miami. brian? >> thank you very much. we are joined by mary powell, the ceo of sunrun, also a former utility executive. she comes at it from both sides. mary, we chatted here last year. it's good to see you again. >> great to see you too. >> we came in on the interview, i want to talk about solar stars, but you came in on the interview talking about big moves in stocks. how frustrating is it for the ceo of a company just trying to build off solar storage capacity, et cetera, when every five basis point move in a ten year yield sends your stock up or down 10%? why is that? >> you know, brian, we are up over 60% over the last three months. the fact that the fed has indicated and that likely the rate hikes are over and in fact we could be looking at some decreases in this coming year

it is actually a significant tailwind for us. we >> lower rates are a tailwind. >> yeah, for sure. lower cost of capital. we look at a future, we look at the cost of capital, we structured it around the higher cost of capital. we are actually doing much better already just in the last few months with what has happened with rates and with the outlook for 2024. >> you understand my point? the ten year yield goes down a quarter percent and your stock goes up 50%. there's a lot of things that are happening that are not based, i'm assuming, on the pure fundamentals of sunrun's business. >> 100%. what we stay focused on at sunrun are the pure fundamentals of sunrun's business and that's why we've been very clear with our investors that we are about generating cash. that's what we are going to be doing in 2024. we've already guided to generating 200 to $500 million in cash generation, as we exit 24. we are feeling really good going into 24. we also have hardware costs

coming down, you have the itc actors flowing, in the inflation reduction act. the adder's, and the incentives for low and moderate households across america, those are starting to flow into the economy in 2024. we see a lot of great things happening. most important, brian, when we spoke a year ago, i said we were going to make 2023 the year of storage. and guess what? we did. we did, we actually had over 100 percent growth in our storage megawatt hours over the next year. i am very excited about our position. >> 100% growth? >> yes. >> in storage? because people, i'm sure a lot of people think of you primarily as a residential storage company, a residential solar company. we will put solar panels on a roof. the conversion ward to battery storage as well as distributing energy. almost a power wall type of -- him dropping tesla, i want to

be clear. but almost that type of shifting in that direction, in fact one of your programs is called shift. >> exactly. you, did you did. in fact, that's what we talked about. there was a policy shift in california last year that we really -- >> that's how we let our interview last, year it was not a good thing for you. >> exactly. but really, what we did was we used the year, we used the change that was happening to build a much stronger platform for growing as a storage company. so we called it the year of storage. we let a storage first strategy. at the beginning of the, year your typical sun run customer was attaching storage at about 15%. so 15% of the customers were also buying storage. at our last earnings call, i said we are already up to 33% and we were selling at a 40%. which is so significant. because not only is it more value for the customer, it provides a much more valuable energy experience. but it's way more valuable for our investors and for the

company and the context of our bottom line. >> my colleague chile in chile's frigid angle woods cliff new jersey -- i'm not going to lie, guys, it is 70 something degrees down here. it's not terrible. kelly? >> we are chilly in more ways than one. mary, the company has been accused by short seller carson block of overstating your subscriber numbers by 20% based on what you tell investors versus the eia. can you explain that discrepancy? answer this claim as well that you are over claiming tax credits as a result. >> yeah, so, we have always welcomed healthy debate, questions. we've responded to every single inquiry with detailed responses. what i can tell you is that we work actively with the eia. we go over in-depth how we report. we've had them confirm that we are doing things the right way. that, again muddy waters has it wrong. we responded in detail. we always welcome any and all

questions. we've been in that situation ever since we started sunroom, where you will always have people asking and wondering what is going on, why you are doing things the way you do. again, we responded. they have it wrong. eia has confirmed the way we are doing it. >> his latest sort of analysis was after you were asked about it in the earnings call in the fall. he said the reasons given by the company didn't hold up to his scrutiny. he says you could solve the matter by releasing in each quarter the number of subscribers that generate gab revenue for the quarter versus the number four what you claim are effectively sold tax credits. with this be something investors could maybe expect, any more transparency on in the numbers ahead? >> we've been very transparent. as i said, we responded with detailed responses to every single request. and we feel very comfortable in how we are reporting data. you know, what our investors have told us is they feel the same. >> from the macro side, as i

noted, mary, you are also a former utility executive. there's been this weird dichotomy. i heard some high-level people in d.c., by the way, hopefully they are watching this right now, i've got some angry tweets or texts today, which is, we see natural gas -- i will ask you to take your sunrun head off for a second. natural gas and coal prices have come down year over year. but in a lot of places electricity rates are still on the rise. people getting notices about 14, 21%. as a former utility executive, explain the lag. why are utilities slow to respond and why are rates still going, up which is probably good for your business, by the way, while commodity costs are falling? >> so there's a number of factors that drive what is happening with utility rates and what customers pay. it's also different depending if you are in a fully regulated state versus a deregulated state where you have different components coming on your bill. but simply put, i mean, one of

the reasons i fell in love with and distributed generation and the kind of work that i'm doing now in solar and storage as a utility executive was because i saw it as a way to control the cost of the grid. and one of the things that i love about where we are at, particularly with the amount of storage we've been selling, is we now have over a gigawatt of stored clean energy capacity that we can use and help and put back. >> you can get your customers to push back -- >> 100%. >> i think it's probably fair to say that is a small nuclear plant of energy. >> exactly. when you think about the pace at which we are scaling, and that gets very powerful. but back to utility rates. there are so many pressures, just climatic events alone are putting so much pressure on transmission costs, distribution costs. yes, colin natural gas can fluctuate, but the base inputs to what is driving up rates, i see no end to it. as far as the eye can see, i see those costs pressures happening.

>> there you go. i hate to end on that note, which is very inflationary. mary powell of sunrun, shifting more to storage, appreciate you joining us. thank you, have a successful conference. >> thank you so much. always a pleasure. >> there you go, tyler, you just heard it, i think your electricity rates are going up and i will keep going up. >> thank you very much. brian sullivan and mary powell, we appreciate your time today. quick programming note, folks. don't miss a special last call tonight life from where brian is now, miami beach. he's going to speak with the ceos of chevron, royal caribbean, and many, many more. that starts at seven pm eastern time tonight. a special addition of last call live from miami. >> still ahead, model behavior. struggling ev maker figure is asking dealerships to its business structure to help boost sluggish sales. we have the key details when power run returns.

hi, i'm kevin, and i've lost 152 pounds on golo. i had just left a checkup with my doctor, and i'd weighed in at 345 pounds.

my doctor prescribed a weight loss drug, but as soon as i stopped taking the drug, i gained all the weight back and then some. that's when i decided to give golo a try. taking the release supplement, i noticed a change within the first week, and each month the weight just kept coming off. with golo, you can keep the weight off. welcome back to power lunch. a lot brewing on the auto front. today let's get right to it with their philippe bowen who runs through several topics. starting with our story, and welcome to you. tesla's market share slipping in the u.s. and china's byd passing it in worldwide sales. but also, we are hearing

reports about some short selling against byd. that is increasing lately as well. >> yeah. we will keep the byd short selling, there's a lot of factors going into this. i want to focus first off on the ev sales here in the u.s.. yes, tesla's market share has slipped. it's down to 55%. but keep in mind, two of their models, the model three and model y are more than half, more than half of all ev sales here in the united states. they dominate that category. as you look at shares of tesla, keep in mind that we will hear from the company coming up in three weeks, that's when they will report the fourth quarter results and we will hear from elon musk. perhaps we will get an update on the refresh of the model y. >> let's move on to topic number, two and that is forward sales out this morning. last year it sold more trucks than cars, more hybrids than evs. what say you, phil? >> look, in the fourth quarter, you can look at this and say, their overall sales were up

only 0.8% and their ice vehicles, internal combustion models, we're down 4%. look at the growth and evs, look at the growth in hybrids. 55%. when you look at forward, remember, the f-150 is still the strongest's -- most profitable vehicle, it is the most popular vehicle in north america. and so for ford, this is an interesting thing that is happening here in terms of evs and hybrids increasingly i hear from dealer saying when people come in, they look first ad and f-150 hybrid, if they are looking at an f-150 gas model, then the light. >> interesting, interesting. >> i suppose on that note, we should move along to this news that fisker, phil, with a surprise announcement that they are going the dealership route instead of direct to consumer for their sales. what do we make of this? >> they will still do direct consumer. they are not giving that up completely, but they also realized they've got to get their product out there as much as possible. and in an increasingly private

ev market, a dealer who can also sell your product can do nothing but help you. if you are fisker, they would like to have about 100 dealerships between north america and europe. the first ones will be announced later on this quarter. how much it moves the needle remains to be seen, guys. but if you are fisker, you've got to do whatever you can short of advertising in order to get people exposed to your product. >> let's go back to tesla and zero in on two things. you pointed out their market share, i believe, in the u.s. has fallen, fallen to 55%. has it done that possibly because there is a problem with tesla or because the competitors have gotten more attraction? >> more traction from competitors, more offerings from other competitors, more evs are in the market. it's only natural you are not going to be able to hold 67, 75% market share, which they've had over the last couple years. tesla sales are actually growing. this is not a case where teslas

marketer is slipping. it's a case where there are more offerings out there and as a result you will not have as much of the pie. >> question number two is the chinese manufacture byd, is it byd? i'm sorry. byd, you said it has started now to outsell tesla >> but for all of 2023, let's be clear. tesla is still number one worldwide by about a quarter million vehicles. they still have a lead there. now, what happens over the next several quarters remains to be seen. the uid has momentum. >> are most byd sales in china? >> they are in china but they are expanding. all of the chinese automakers are expanding. why?

because they have capacity that needs to be used. if your market is slowing down because the economy has slowed down, what do you do? you ship to europe. ship to latin america. ship to central america. ship to southeast asia. and that is where you are increasingly seeing the chinese automakers expand their presence. >> meeting stuff. coming up, losing taste with investors. packaging giant conagra lower after slowing sales. >> we'll be right back.

power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills,

you can stay on top of the market from wherever you are. e*trade from morgan stanley power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley - it's payback time. all these years you've worked hard, you fixed it, you looked after it. maybe, it's time for your home to start taking care of you. - [narrator] if you're 62 or older and own your home, a reverse mortgage can put more money in your pocket by eliminating your monthly mortgage payments, paying off higher-interest credit cards, and covering medical costs.

- you paid down the mortgage, invested in your home. i guess you could say your home owes you. - just eliminating the mortgage payment, freed up a lot of cash for us. - the fact that we're still in this home means so much. - i get to go and do what i want when i want. - our customer's homes are taking care of them. maybe your home could do the same for you. - [narrator] call aag and get your free info kit. call the number on your screen.

welcome back. time for today's three stock lunch. looking for some movers of the day. victoria greene, founding partner and chief executive officer at g square, also a cnbc contributor. let's talk about american express. i just paid a big bill. at slightly higher today. jpmorgan upgrading a safe haven from deteriorating household balance sheets like mine. your trade, victoria?

>> thank you so much for supporting the stock, we all appreciate it. yes, delinquencies are rising, you are seeing headlines arouse it. but their charge-off rate is like 1.3%, still under 2019 levels. i think they are very well- positioned and expecting dps growth in the mid-teens and revenue growth around 10%, and that is the runway they have been on the last two quarters. >> and let's see about walgreens, very different story here. the share down more than 6% after they cut the orderly dividend nearly in half. it has already been a laggard. what you doing this on? >> they actually beat on revenue.

they did not raise their guidance, and the new ceo came in in october, tim entworth, and he came from healthcare so he knows what he's doing. but he says cutting the dividend was important and necessary. i don't know what they're going to do. i think just take this one out. he is pivoting the company whatever direction he wants to take it. there are rumors that he is spinning boots back off, the booth has better operating margin in the u.s. >> you could not be clearer on that one. finally, conagra brands. stock is down 2% after amid lagging demand. your trade here on conagra? >> still sell for me. everyone is waiting on this valuation, and we thought it was coming. now it is pushed out and he does not look like we're getting top line recovery until 2025. they will likely have to continue to sacrifice margins in 2024 by doing more advertising to face sales. they are continuing to decline in value and revenue. i don't see a trough here, i

don't see a buy yet. i think they have to figure out how to use some of these flagging brands and that is going to cost money. >> thank you very much for being with us today, happy new year. we will see you many times in 2024, i am sure. >> watch the nasdaq which is been in shallow negative territory. >> thanks for watching power lunch, everybody. >> closing bell starts right now. >> thanks, welcome to closing bell. here the new york stock exchange, in this make or break our beginning with the still unsettled market and new questions about where stocks are going from here. we will ask our experts over this final stretch. in the meantime, your scorecard with 60 minutes to go in regulation, it has really been tough to get much going for the major averages today. a bit of buying in financials and industrial and healthcare, but not much else where. there the majors right now, one of the green, two in the red.