not much has changed up there, apparently it's friday, february 23rd, 2024 and "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm andrew ross sorkin along with joe kernen. becky is off today u.s. equity futures, before we go to the moon, they are not going to the moon yet. the dow is up six points nasdaq going down from the moon at 38 points s&p 500 is off 3 points after the nvidia party yesterday that was a remarkable ride let's show you where -- i don't know if we show you where nvidia is looking right now

the dow closing above 39,000 that happened after a more than 1% gain. the 13th record close of the year s&p adding 2%. the nasdaq near a record territory after 3% gain which is its best session in a year take a look at treasury yields at the same time ten-year note at 4.343%. the two-year note at 4.737%. to the moon and back we go you have no interest in going to the moon >> no, no. it's a rock next to the third rock smaller rock next to the third rock from the sun. i would like to know if there is water, i guess i would like to know if there is any cheese anywhere. >> you are not going for space tourism? >> i'm interested in that. i think we need to do that

eventually other people >> not you >> no. globally -- the dow and nvidia is not in the dow. i guess a.i. is really good. i think it might be g. i was going to ask these questions of stephanie. stephanie link it is good for the stocks around the globe. across the board every newspaper, andrew, talks about how global stocks rallied on nvidia. you don't see that every day it must be good for the economy. is it good for mankind can we say after yesterday that it will be good for mankind? >> were computers good for mankind? >> yes. >> then it's good for mankind. >> all right we just may have to revise that. there may be an addendum here and there. we will have a disclaimer or footnote or asterisks.

>> is it good for mankind? >> i need to think about that one. what do you think? you don't know either. >> overall, i would say good i think most of the advances is good >> how about good for our children >> good and bad for our children numbers. major round of fed speak all day and into the evening yesterday most of it drowned out by nvidia federal reserve members staying on message that message is don't expect rate cuts any time soon. governor christopher waller noting in his view there's no rush to reduce rates in light of the stronger and hotter

inflation reports we have quote even and hotter economic growth. lisa cook adding inflation has slowed, but officials need greater confidence that the easing prices and pressures will continue before they can cut we will speak to former vice chair roger ferguson and the path of rates at 6:30 a.m. eastern time i think it was a hot stock market the ten-year note at 4.35% you just mentioned that. almost 4.40% again rates have backed up over ten years. the ipo market is about to get a major charge reddit filing to go public they plan to list under the ticker rddt. the debut is picture expected t first ipo of the year.

it was founded a decade ago by al alexis ohanian in 2023, the company reported a net loss of $90.8 million. still in the money, if you will. the majority of revenue is through the ad business. reddit is allowing the third party business to partner with the data that means they will be training a.i. models using some of the reddit information it plans to offer users known as redditers to participate through a directed share program they will have three classes of stocks class a is one vote per share. class b is ten votes per share

and class c with not voting rates. there is one other finding getting attention. openai's sam altman is one of the three largest shareholders in the company he has invested $60 million in the company. he controls 9.2% of the voting power and might have something like $400 million in the company. >> it doesn't get him to $7 trillion >> half a billion is not bad not bad. >> he has to keep talking to the uae about the other $6.5 trillion >> i thought he said $7 trillion was not the report >> overhyped. at&t -- this would have been ann annoying restored service to thousands of users across the country after the company suffered an outage for most of the day.

can you imagine? that was on thursday you couldn't use your cell phone. >> could not i want to ask. tell the audience the story and i have a question for you. >> well, i need my phone nothing happens on it really when it is down for a while and i go back in and i'm panicked and i look at it and it's nothing really important according to service tracker down detector. the highest number of outages were in houston, chicago and dallas the outages began at 4:00 a.m. eastern time and peaked at 74,000 issues at 9:00 a.m. the company restored service to all customers after 3:00 p.m. eastern time it is unclear what caused the outage the fbi has been in contact with at&t the department of homeland security and fcc were also looking into the situation at&t apologized for the inconvenience. the stock fell about 2% on that

news this would be bad if someone did this. >> i think right now it appears it is unlikely it appears it was a dns error. is this regulatory question? we don't -- this country is reliant on three telephone companies. >> right. >> if the telephone companies go down, the whole country, effectively goes down. that is remarkable the same with gmail and email. electricity goes down, that is regional these are national networks. >> you are talking wireless. >> wireless. we don't regulate -- these companies are regulated by the fcc. they are not regulated in the way that a home inspector goes to your house to make sure the plumbing is installed properly nobody going around to say what's the back-up plan here

do you have enough the idea is incentive for this not to happen. for at&t not to have this happen is big the impact on at&t relative to the country would be minuscule if it really went down and what it meant to the customers yesterday. i asked this of somebody who doesn't love regulation and whether there are certain types of businesses which have become utilities that should be mo monitored in some wayand if th government has the technology and know how to send the inspector in to look at these things to make sure they have the systems in place >> obviously, we're not going to just not have any agencies that start with "f. how many are there you know, we need the faa. we need the fcc, the ftc they all stand for federal. >> they do

>> obviously, even the free evifreest free marketer libertarian will say we don't need the faa. are they inspecting the door plugs effectively? >> not very well or maybe they are. the faa has done a remarkable job. we have not had -- >> we get to one of your issues which is making sure all of the tax cheats pay their taxes so we can fund these agencies. >> bingo >> dear to your heart. >> it is dear to my heart. >> i don't have an answer. should i think of you as sort of my anti-joe in terms of regulation would you say you love more regulation >> no, i don't i was trying to figure out yesterday whether i thought there should be more regulation

or less regulation or incentives are in place? >> you would saly lina khan is there? for the first time and i pointed this out many times when i say it i remember for the first time in over 50 years, the u.s. spacecraft has landed on the moon. >> we can confirm without a doubt that our equipment is on the surface of the moon. we are transmitting. congratulations, team. we will see how much we can get from them. >> those are the two important things it could be on the moon and not transmitting it didn't slam into the moon everything is working. intuitive machines cargo lander

touching down on the lunar surface. the first time in 50 years the u.s. company pulled off a moon landing. government agencies carried out the previous missions. there was drama as the team was trying to reconnect communications with the spacecraft to confirm the landing. they they picked up a signal. intuitive machines blasted off after the landing. we are not paying somebody enough money to write this stuff. they came up with that so easily >> they're here all week. >> all week. the stock blasted off after the mission. did you do that? >> no. >> you appreciate it >> okay. coming up, nvidia's surge lifting many boats on thursday should have beenaround the world

and after sitting on the sideline, reddit is looking to enter the public market. is this the next meme stock? this is the home of gamestop i so many ways we will talk about that and more at 6:50 a.m. eastern time. do not go anywhere we will see if the reddit army is ready for this one. k "squawk box" is coming back after this

ameritrade is now part of schwab. bringing you an elevated experience, tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly. you know doug, ever since switching to workday you've been a real rock star. rock star?

what do you know about rock stars? billy idol? i mean where's the skin-tight leather? my shoes are leather. where's the unnecessary zippers? that thing! billy, rock star is just how doug feels when he uses workday. thanks, rory. i'll show you rock star! be a finance and hr rock star. workday. for a changing world. billy idol just stole your golf cart! so, you've got the power of xfinity at home. now take it outside with xfinity mobile. for a changing world.

like speed? it's the fastest mobile service around... and right now, you can get a free line of our most popular unlimited plan. all on the most reliable 5g network nationwide. ditch the other guys and you'll save hundreds. get a free line of unlimited intro for 1 year when you buy one unlimited line. and for a limited time, get the new samsung galaxy s24 on us. - after military service, you bring a lot back to civilian life. leadership skills. technical ability. and a drive to serve in new ways. syracuse university's d'aniello institute for veterans and military families has empowered more than 200,000 veterans to serve their communities and their careers. from professional certifications, to job training, to help navigating programs and services, we give veterans access to support from anywhere in the world.

the s&p and nasdaq composite posting the best day in over a year led by huge gains in nvidia after that better than expected and really out ssized early morning. we have stephanie link joining us from hightower. stephanie, i get a lot of papers most say the same thing. ignited the global stock market rally. nvidia one stock. in one day, its market cap increased by the size of qualcomm biggest ever it was very, you know, it was amazing what happened. what does it mean? is it animal spirits about a.i. or something globally?

how do you see it? i know you don't own it. you own a lot of other stuff that would benefit from a.i. how do you view that is it so good for mankind that the stock markets rally around the world? >> well, yeah. it is a really big deal. the hyper scalers told us the last quarter they will spend on cap ex a huge amount of money. $193 billion this year on a.i. the equivalent of a.i. and all of the importance that goes into a.i. it is great for nvidia, but it is great for so many other companies. that's why you saw the big rallies yesterday in every kind of connected name. software, semi, semi cap equipment. if you are going to see the hyper scalers spend 23% growth

this year, then that is going to have this affect across the board. that's why we rallied as we did. >> 800 now that's close to $2 trillion at this point the move to $1 trillion was quick. it became public in 1999 the move from one to two is a record i guess i'm just thinking big picture. it will be good for all of us. we will have the quicker drug discovery. it will allow us to diagnose things more quickly. it will coallate data. are we in a ubi world? any role for humans? >> we will be more fefficient. we will not take away from the human aspect we still need perspective and

gray hair in the world we still need people to have an opinions, but it will help us. i think that is probably a good thing. i think this is something we all new a.i. was a big addressable market the last couple quarters, nvidia has reinforced that. other companies have reinforced that as well a.i. is only as good as the data that you put into a.i., into the systems, and we're debgetting closer and closer and closer we have to see how this plays out. i do think it's a tool it's a really good, productive tool that is good for mankind you mentioned healthcare how about farming and precision aeg farming and what about building architectures and all kinds of various -- what about the retailers and restaurants? you are hearing companies

embracing all this this is why it is a big deal whether you want to chase nvidia, the stock itself up here i'm not sure you want to do that i wouldn't i do think it is real and the total addressable market is getting more confirmation that it is real, too. >> so is your way to play a.i. with broadcom and snowflake. that is the way of being here at this point. >> i think broadcom is more diversified. it has a.i. and data center cloud and networking and enterprise it has a lot of various ways you can win. it is the number one custom asic supplier they are the number two a.i. supplier that will give them $8 billion per year that has grown.

their a.i. business was 10% of total revenue last year, joe it will be 25% next year that's amazing growth for a company of this size they have grown revenues three times what the industry has grown. the stock is trading 27 times forward estimate maybe nvidia deserves to be 32 times. 27 times for a company that is delivering free cash flow growth and amazing gross margins and industry leading, i like that story. >> yeah. it better have good stuff. 27 times is still -- 27 times. we have to get used to the numbers. stephanie, thank you i had a thought. do you think we won't need the fed and we will use a.i. that would be so much easier we will talk to 15 people today. can we have rules based work they can all go home jay powell can relax

>> we may have a more efficient fed if we use a.i. for sure. >> just a the thought. you know, there for the grace of god go all of us replace the fed? i don't know if we will be here, andrew probably not all right. you remember max headroom. it wouldn't work >> that was in the '80s. >> they have gotten better. >> yeah. >> it wouldn't be all that i can't really do it i do it naturally. >> we got to go. coming up, a bipartisan group of house lawmakers paying a visit to taiwan and china is not happy about it we will have a live report from beijing next. grayscale ceo on the spot for the etf. we will see if he is making progress at 7:30 a.m we have so much going on here on "squawk. see you in a moment after this

the no >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. build and maintain financial strength and stability. deliver solutions that meet complex needs. do right by customers, clients, and policyholders, always. repeat daily for over one hundred and seventy years. massmutual. partnering with financial professionals, benefits brokers, and institutions. ♪

(grunting) at morgan stanley, old school hard work meets bold new thinking. ( ♪♪ ) partnering to unlock new ideas, to create new legacies, to transform a company, industry, economy, generation. because grit and vision working in lockstep puts you on the path to your full potential. old school grit. new world ideas. morgan stanley.

welcome back to "squawk box ob box. a group of house lawmakers are visiting taiwan and china is upset about the visit. let's get to china and eunice yoon with more on the story. eunice >> reporter: thanks, andrew. the bipartisan group was led by the house select committee chair on china and china hawk mike gallagher described the situation as rock solid. he, along with four others, met

with the current and outgoing president and president-elect who is inaugurated in may. not surprisingly, the chinese government which believes that taiwan is part of the china, was not pleased and critical of the trip the foreign ministry said it opposed the types of official exchange the defense ministry said the $75 million u.s. armed sales which coincided with the trip only emboldened taiwan independence arrogance the state media here today has been citing president xi's chief who was in a two-day meeting with taiwan who said to state media that beijing would aim to contain foreign interference on taiwan this year due to the 75th anniversary of the founding of

the people's republic of china there are signs that china is not keen to undermine easing tensions with washington and the san diego zoo which said china plans to send two pandas to the san diego zoo some time this summer maybe that's a sign that hopefully things won't be taken off course >> kind of treading gingerly on all of these things, eunice. more importantly, maybe, is the prospects for china on the global stage in terms of the economy and we saw the interest rate cut earlier this week we have hot inflation numbers still over here and that's with china not showing its historically strong economic numbers. taiwan, notwithstanding, i don't

know what the calculus is on that we talk about it every week at some point nothing really changes i don't know what president xi has in mind. you know, we continue to practice our strategic ambivalence. i'm not sure where we stand or what we would do or what the future looks like. >> reporter: i think that president xi from his perspective is very clear minded about the importance of taiwan again, in the two-day meeting, it was really about the importance of taiwan to china's national rejuvenation on the world stage. it is seen as a non-knegotiable >> eunice, thanks.

it's late there. early. late >> late. >> early here. >> early here. late there >> it's getting early. coming up, a heavy dose of fed speak for the markets to absorb, most of it got mumuffle by the nvidia bulls. we will speak to former vice fed chair roger ferguson as we head to break, here say lis a look at the s&p 500 winners and losers a car is a car... is a spa. an office. hi! hello! a cinema. so automated. yes, the definition of a car changes... but one thing stays the same.

it's a mercedes-benz. encore energy, america's clean energy company, now in production in south texas. energizing america with reliable and affordable uranium for nuclear energy fuel from our environmentally friendly extraction process. encore energy. (vo) what does it mean to be rich? maybe rich is less about reaching a magic number... and more about discovering magic. rich is being able to keep your loved ones close. and also send them away. rich is living life your way. and having someone who can help you get there. the key to being rich is knowing what counts.

stock markets hitting all-time highs despite more doubt about when the fed will cut rates. senior economics reporter steve liesman joins us now with the roller coaster of the markets. hey, steve >> reporter: good morning, joe we marked a milestone yesterday when futures markets fully priced out the fed easing that

launched the fede rally and the stock market held on to the gains. look at the fed coaster. the left part of the jscreen ana and waller said it will have to cut rates. powell then acknowledged the rate cuts at the meeting and that was held by the good december inflation data. it went the other way with the future markets took back the easing with the strong payroll and higher inflation data in january and then the barrage of fed speak warning against the bets on early cuts if you zoom in on the right side, you can see the taking back of the easing the stock market rally, the left part of the screen, along with the easing, sold off with the fed doing less then stocks started going the sp separate ways in january and embracing better economic growth

and better earnings. that's been a big part of what is going on right now. fourth quarter earnings at 4.7% in january and now expected up 10%. that is propelled by the nvidia blowout we had with other sectors. what is the lesson here? i think is is obvious that fed futures are volatile they don't do a great job of predicting more than what the market is thinking now the fed used to be careful of what they say. markets need to be careful how they listen. for now, the more important thing is with inflation under control and interest rates relatively stable and not seen rising further means stocks can trade on earnings and economic growth and wait for the fed cuts to come. appropriately with the whole story, fed governor waller urged a slow and cautious approach to rate kucuts andrew, saying no rush to cut. >> no rush to cut.

steve, thank you for that. we will continue the conversation about fed speak and no rush to cut or not with former federal reserve vice chairman roger ferguson. he has been the one more right than anyone on the broadcast the past two years over what the fed will do next he is former president of tiaa and now vice chairman of the business council and cnbc contributor. roger, good to see you no rush to cut for those playing the market and trying to figure out the fed's next move. are you of the view -- are you in the view this goes back to the jamie dimon comments earlier this year. maybe you were with him. i don't know if you were fully with him of the idea this could be the end any chance this is the end this year >> look, i think no rush to cut is certainly right i think a later start is seeping

into the market. three cuts and we'll see this is very much let's see what happens. this inflation dynamic has been unusual with supply chains and wars is not usually the story. they will be cautious and there's a real question of whether or not inflation is going to be hanging up i think they want to wait and see. i'm very much in the cautious no rush to cut and let's let the data speak for itself. >> how do you look at equities these days, roger, given we had the wild ride in the last two days on the back of the nvidia news i don't know if you want to argue the markets have held up better or worse i don't know >> i think what steve said is right. i think earnings are looking better and better because the economy, itself, is looking to most people more likely to achieve the famous soft landing.

i think vice chairman jefferson stated that yesterday and others implied it i would observe that interest sensitive sectors have continued to show more volatility as fed expectations change. i think it is a market that is driven by many forces depending which companies you are looking at here. the indices, overall, lean heavy toward tech and nvidia and other things driving the so-called market underneath it, there is more volatility depending where you look >> roger, the fed is not magic nobody is. we emphasized data dependency is something that the fed uses and is important would you say the fed got a little bit fooled by how well things were going and enabled the markets to get head of themselves and now maybe shifted back when the data came in

strong it is not all the markets fs fa. the fed felt comfortable >> i don't disagree, joe >> they never got out in front of this and had to take it back. >> most of what they have been doing is trying to calm down market expectations. they called the data as they see it i don't think they were, you know, feeding this frenzy. remember the last time the fed officially had something that might be called an outlook or forecast with the so-called dot plots, which said three cuts in 2024 and left the impression probably back ended. i think the fed has been pretty consistent on its outlook and it has reflected the movement on the data a little bit. i think more of this has been market enthusiasm than it has been fed feeding expectations

inappropriately. >> roger, i'm curious if you want to weigh in on this as somebody who thinks about productivity we have been having conversations endlessly about nvidia endlessly about a.i. and what it really means a lot of people are trying to figure out what's going to happen are you of the view in the economic camp that we're going to go through some massive productivity boom that's going to be fabulous or a boom that will take away what is supposed to happen here? >> if you look at the history of new technologies, i'll use the word all of the above. first thing is you have to adopt them i have been surprised with how quickly companies are adopting a.i. and changing the way they do things. secondly, there are going to be some jobs that are lost. that's always the case with new technology think about agriculture. a point when most people worked

in agriculture because of productivity improvements. you had 1% or 2% of society working in agriculture point three, we will become more productive as a society as we adopt the technologies >> is this since 1984 or 1996? what is this >> maybe none of the above i think we're going to see very industry specific moves toward increased productivity that will lead to layoffs for sure i think this one feels real, joe. i'm sorry, andrew. this is not all hype i've seen a number of companies that actually are using a.i. i'm hearing it from the ceos i serve and talk to. i'm cautiously optimistic this will lead to job cuts. we will see a more efficient economy. it will not be good for everybody. it will be good for the macro

economy and it will depend on new sets of skills that all of us will have to learn. >> roger ferguson, thank you, sir. have a great weekend >> thank you >> did you say 1984? was that a choice? >> it was. >> oh, it's 1984 it is. >> 1984? >> oh, yeah. you can't tell you can't see the deep state running things you can't tell how close we are to an orwellian distopia >> if you look at the charts. >> you are speaking my language. yes. we are very close to 1984. coming up, ceo jamie dimon selling some stock that story just ahead.

get the best of squawk pod in your daily pcaodst you can listen any time. we're coming right back. ense. with e*trade from morgan stanley, we're ready for whatever gets served up. dude, you gotta work on your trash talk. i'd rather work on saving for retirement. or college, since you like to get schooled. that's a pretty good burn, right? to build the electric vehicle of the future, you need partners. mining partners. technology partners. education. supply chain. energy. what if one partner could do it all? that partner is ontario, canada. with all the critical minerals to make electric vehicle batteries. 65,000 stem graduates per year. one of north america's largest i.t. clusters. a fully integrated supply chain. all powered by one of the cleanest grids in north america. ontario. your innovation partner. ( ♪♪ )

you know doug, ever since switching to workday you've been a real rock star. rock star? what do you know about rock stars? billy idol? i mean where's the skin-tight leather? my shoes are leather. where's the unnecessary zippers? that thing! billy, rock star is just how doug feels when he uses workday. thanks, rory. i'll show you rock star! be a finance and hr rock star. workday.

for a changing world. billy idol just stole your golf cart! (♪♪) access to opportunity isn't always equal. but at the massmutual foundation, we believe tha— you know, it doesn't really matter what we believe. what matters is what ruth, marcus and michelle believe. that kendall believes he has a say in his future. that these neighbors believe there's opportunity in their neighborhood. at the massmutual foundation, we don't believe. we know things get better when we invest in each other. (♪♪)

jpmorgan chase's ceo jamie dimon has sold $150 million of stock in the bank or 88800 shars in the banks b back in october, dimon and his family announced they were intending to sell 1 million of their 8.6 million shares in the bank a quick programming note dimon will appear on cnbc monday at 12:00 p.m. eastern time on "the halftime report." coming up, reddit becoming the first major ipo this year.

did the social media company pick the right time to enter the market that is the question we will dig into the details yes, sam altman is a big owner of reddit. "squawk box" is coming back after this we often talk in the community about keeping it real. i, for one, want magic magic is what black history is all about. celebrating people who achieved magical feats. our ancestors did not focus on reality. they dared to dream and acted on the dreams during black history month, our community, particularly our young people, should commit to making magic

welcome back to "squawk box. reddit about to take the ipo plu plunge, planning to list on the stock exchange under rddt and will trade next month. joining us now, i know so many people, 4:00, 4:30, everybody yesterday sort of trying to go through all of that s1 what was the biggest highlight for you? >> just wasn't very impressive i mean, this company has been around for 19 years. it has 72 million daily active users, 410 million less than facebook had when it went public, and that was in 2012, 2013 when they filed so, you look at reddit and say, they don't have the user growth, they're losing money, and you start to say, where does this company actually have a chance in the eyes of investors maybe it is a.i., but i don't

think it is the traditional social network path, user growth and advertising. >> in terms of a.i., i thought one thing that was fascinating that happened yesterday is they're announcing this plan to have a bigger partnership with google which effectively means we're going to start selling more of our data to train on, i believe, for a.i. purposes for google's purposes. they're taking your information and selling it how do you feel about that >> if i'm going to wall street and that's the pitch completely, the deal is for around $203 million, that's 8% incremental revenue for reddit last year and they had 20% revenue growth. so you think about the ways they can make money, advertising very difficult on reddit because you have weight watchers, i was looking at the front page, they have to speak in reddit lingo and use reddit phases and put it in the reddit format, it is a pain for a small network, most advertisers don't want to do that we're entering this era where the data to train a.i. models is super important, make it

current, make it useful. if reddit can do a $203 million deal with just google, they can do other deals with other companies and then you go to wall street and say this is going to be our business, our growth business, give us a chance they won't get a lot of money otherwise, so this is their one opportunity. >> were you surprised how big a stake sam altman owns in this company? >> i was initially but he's been a long time user of reddit. he led a large round in 2014 he held on to the stock. so, i think that's another thing that they have going for them. they could basically tell wall street investors, take a ride together with us and sam altman, we're an important element in the a.i. economy moving forward and this is a good bet it is not a huge bet, but it is a good bet might as well put it in the portfolio. >> how you to think about reddit relative to twitter? is that the comp what is the comp for the company? >> smaller, more volatile

twitter. all the problems of twitter, and none of the size >> so they would say they don't have the problems of twitter they would say they actually moderated a lot of the content i don't know if moderation is good or bad. we talked about antiwoke, what not. >> remember it a 19-year company. just because they have been more stringent on moderation over the past few years doesn't mean -- put yourself in a position of a chief marketing officer, goes into the ceo office, and you say we have this one big brand campaign, we're going to put it on reddit. the ceo would laugh you out of the office this is two decades of brand hurt that they're trying to roll back it doesn't happen overnight. and, again, the comments are untraditional. they might have changed a little bit over time, but i don't think they're fully out of that bucket that twitter is -- >> last question reddit army, we'll call it the reddit army. they're prepared to sell special shares potentially to members of the reddit army, right these three classes of shares that potentially could be on offer to folks who live on reddit we talked about does this become

some kind of meme stock? we all lived through the gamestop phenomenon. is it possible that this is some kind of stock that people hold and love in a different way, almost like a holder would hold bitcoin because they just love it so much >> no. if you look at wall street bets today, which is where a lot of this meme stock auction happened, they noticed reddit listed them in the risk factor section of the prospectus. the chatter is let's short it. by the way, these are smart investors. they seeing some in a stock, they hold it if they don't seeing some in a stock, they don't hold it. i don't think there is enough in reddit right now that would merit them saying, let's go in force. robinhood, part of that whole meme stock, made some its shares available to its investors, down 60% from the ipo price i wouldn't count on this being a big part of the entire thing. >> alex kantrowitz, gloves off

this morning, thank you. ceo of booking holdings gives us an update on the state of the travel economy heading into spring. and gray exile's my mychal sonnenshein coming up "squawk box" is coming right back to help improve player performance. t-mobile's network helps aaa stay connected nationwide... to get their members back on the road. and las vegas grand prix chose t-mobile to help fuel operations for one of the world's largest racing events. now is the time to see what america's largest 5g network can do for your business. (grunting) at morgan stanley, old school hard work meets bold new thinking. (laughter) at 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities

and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley. wealth-changing question -- are you keeping as much of your investment gains as possible? high taxes can erode returns quickly, so you need a tax-optimized portfolio. at creative planning, our money managers and specialists work together to make sure your portfolio and wealth are managed in a tax-efficient manner. it's what you keep that really matters. why not give your wealth a second look? book your free meeting today at creativeplanning.com. creative planning -- a richer way to wealth.

good morning stock futures mixed this friday morning after the s&p 500 and nasdaq posting their best day since early 2023 plus, book holdings now under pressure this morning, not because of quarterly results ceo glen fogel will be with us live and a showdown in south carolina, can nikki haley win

her home state we'll have that debate and talk about the upcoming presidential election as the second hour of "squawk box" begins right now. good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square, i'm joe kernen with andrew ross sorkin. >> what is that, uh. >> just looking at us. >> your pretty face. >> we're together monday and tuesday. >> we're together every day. but mano a mano, i'm excited. >> plan to man i thought i could relax again, but, no. >> a-game here. >> bone up over the weekend,

going to spend time on reddit getting good stuff probably not here are the futures now, you can see up 46 points, big day yesterday across the board nasdaq, i think, on a percentage basis, you don't see gains like we saw yesterday from nvidia but all the averages did well. in fact, global averages did well it was very weird, makes me think maybe this is going to be good for all of us, a.i. i'm worried. i don't know >> your friend roger ferguson seems to think so. >> everybody seems to think so i just, you know, hunter, killers, see the beginning of terminator you've seen that. >> yeah. i remember you think that's coming? let's talk about yesterday's gains because they can be credited at least at the moment to one stock, nvidia, take a look at where it is, more than 16% gain for its best day since

may, adding $277 billion in market value it is the largest one-day market cap gain on record for any u.s. company. the one-day market gain is more than the entire market value of companies like, here's the list, bank of america, adobe, coca-cola or mcdonald's. one-day gain, you can buy all the companies. chip stocks around the world trading higher, arm holdings, which has been on a tear unto itself, amd, qualcomm, and this raises all sorts of questions, it could very well be, anytime someone is skeptical, you've been wrong to be skeptical it is the question of whether, you know, there is the buildout at some point and will it be overdone it will be overdone at some point, but maybe not yet. >> for the ipo market about to get a major charge, a little reddit filing to go public the company plans to list on the new york stock exchange under the ticker rddt. its market debut expected next

month, poised to be the first major tech listing of the year the social media firm founded nearly two decades ago by alexis ohanian and steve huffman has 73 million average daily active users, over 100,000 communities. last year it generated more than $800 million in revenue, up 20% from the prior year, but in 2023, the company reported a net loss of $90.8 million. so majority of reddit's revenue is through its ad business and says it is in the early stage of allowing third parties to license its data notably, the same day as yes 1 reddit announced an expansion of its partnership with google. reddit also plans to offer users what is known as redditers the ability to participate in the offering through a directed share program. i have three classes of stock as we have been talking about class a comes with one vote per share. class b, ten votes per share

class c, no voting rights at all. one other key finding in the s1, a.i.'s sam altman is one of -- >> i didn't know so much of his wealth was tied into this. >> willa lot of it -- >> this could be pocket change. >> the shareholders and reddit, he invested $60 million in the company, controls 9.2% of voting power, but i think it is kind of a little hobby at this point do you have a pen? >> right here. want me to take notes? >> let let's get a little specic here. >> you said it on pitch. >> of course it works you're not just, like, going to tell us you're friendly toward stocks, you like stocks, you're going to tell us how long you like stocks to the month, and

she's going to tell us why they're going to sell off into -- after that, and how much -- >> you're taking her steam by -- >> i want you to write this down you like stocks still where they are right now? >> we do. >> until when? >> we think the fed pivot that started two months ago with very favorable comments from the fed and jerome powell continues. the breadth of the markets looks very good at this point. you got more than 60% of stocks over their 200 day moving average. you don't see a lot of ebullience in the market you don't see cash coming off the sidelines and some of the risks have also dissipated just a month ago, the markets were pricing in 170 basis points of fed cuts. they're only pricing in about 90 basis points at this time. so some of the risks you had

which were getting feverish in the markets have backed down a bit, which makes us much more optimistic. >> what is this pivot point, when does it end >> we have seen this pattern >> i have a pen here >> i'm not that good. >> june. >> you got it. it is what you said, what you told our people, it ends in june. >> because of the election. >> this is what we have seen in previous election years, not all election years, but we can see this sort of happening again. >> it goes down 10%. >> let her answer the question >> go ahead. go ahead. >> you guys had too much coffee today. >> no i don't. i can't have caffeine. >> really? >> grrd. >> this is like you? >> yes did you not know that? >> yes >> i require coffee. continue on. >> five cups, he does. >> i don't need that many. >> i don't need five >> you would, if they kept bringing them. >> two or three. >> you do three. >> back on task, back on task. >> june, down 10%? >> this is what happens, we saw

this happen in t2000, in '04, in '16. a lot of times markets have a lot of good steam into the election and right around the markets don't pay much attention to it right now. haven't had super tuesday. yes, we're paying attention to kind of who the front-runners are, but it hasn't really come front and center to the market psyche and the market's attention. that usually starts to happen right at the end of primary season, right around june. and then markets start to wobble because they say, well, we're not sure who is going to be president. and generally during the summer months you'll get some agita, some type of peak to trough decline in equities that gets everybody nervous and then before the election it is generally decided there is going to be a winner, we'll have a new u.s. president and the market tends to find its -- >> so for the next couple of months -- >> bottom in mid-october. >> and make sure -- right, and make sure you're out for the summer >> no, look, don't forget, at

voya we're investing, i'm telling you what is likely to happen because you got a very big upcoming geopolitical event, which has tended to cause some weakness in equities we as long-term investors would invest through it. but i would say that you're likely to have a little bit of indigestion because elections generally don't go unnoticed by the market they tend to cause a pullback and tend to cause some nervousness. >> this election is a little bit different -- >> to say the least. >> than most >> so you're investing for someone retiring in 40 years this is almost customized for me >> yes, just about >> andrew? >> yeah. >> 40 years, i heard >> i caught it, i am listening >> that's very nice of you. >> i do work hard for you. >> it is really nice you're able to do that so, would you buy nvidia at this point? >> i cannot talk stocks. i'm not a bottom up stock

picker i would say one thing, i would say one thing i think is interesting, this is just a general statement about nvidia i know everyone is very welorke up about how high the multiple is going if it is backed up by earnings growth in general, nothing specific to a company, but when you see multiples going up and earnings growth behind it, you're generally less vulnerable there will be a blowoff phase. we're using a.i. on our team, we tend to be very helpful. it is a great productivity enhancer so, we see the benefits of it in our work >> so, we get bottom is in october and we come through this, we're going to have a president. >> this is first time in history that -- if it is going to be either joe biden or donald trump. >> it is, so -- >> that makes it a little different. >> this really peculiar combination. >> the market might not -- are you factoring in that?

>> i will say somebody will be re-elected in -- somebody will be at the inauguration in january of '25. >> you might be right about somebody being re-elected. those two individuals. because of the re-election in either case. >> yes it a re-election in either case, which is really interesting. >> really strange. >> that throws a whole other set of concerns into it. >> i'm starting to think, you know our friend don peebles. >> yeah. >> yesterday he said, you know he's very close to, he's always been very close to president ob obama. what does that tell you? >> you've been pushing this narrative for -- >> no, it means michelle and secretary of state barack. >> i see first gentleman barack, back in the white house barack barbara, thank you what do you think of that? pretty good, right >> very good. >> what do you think of that >> what do you think about that? >> scared the absolute daylights

out of me. >> really? >> yes >> as much as you're scared from the other situation, that one scares me even more. >> that's scarier to you. >> oh, my god, yes. >> you know what's scary to me, 7.2 million people coming in here in the last year. >> yeah, but so -- if obamas were in the white house, that scares you >> yes >> more than former president trump? >> really? >> yes >> so that means you're with -- >> i'm not going to talk about this. >> you're not going to talk about this >> no, no. >> okay. >> thank you >> we're out of time. >> we still have two more hours to go. coming up, booking holdings topping expectations, but mmtsrom ceo glenn fogel has the stock moving lower in the premarket. we're talking about what's going on he's joining us right after the break. op with robust charting and analysis tools, including over 400 technical studies. tailor the platforms to your unique needs with nearly endless customization.

and track market trends with up-to-the-minute news and insights. trade brilliantly with schwab. power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis, help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley. with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech.

uh, how long are you... i'm done. i'm okay.

whoa, how did you defeat them? with a little kung fu strength and by connecting my devices to the most powerful force of all. skadoosh. hah, huh? cool right? amazing. harness the power of xfinity internet and stay connected to the things you love. ah, they'll be like this for hours. hello dad, hello dad, hello da. uh-oh. good bunnies. ahh!

welcome back to "squawk box. warner bros. discovery out with quarterly results, worse than the 7 cent loss the street had been expecting its own revenue of $10.28 billion, which also we should mention is below estimates advertising revenue at network segments declined 12% to 1.95 billion. warner bros. discovery had 97.7 million global streaming customers at the end of that quarter. the stock holding up on the back of that news for now we'll see where things stand as we move along. we're going to dig into that report media follower and columnist jim stewart will join us in the next hour to talk about these results and the streaming wars as well shares of booking holdings sliding this morning, despite better than expected earnings and revenue. on the call last night, ceo glenn fogel said the conflict in the middle east hurt reservations during a holiday season he joins us live with his

outlook for the coming year. like that, glenn, where i'm introing you and i say last night the ceo glenn fogel said something. are your ears a little bit hot now and burning? did you really say that? would you say it for us live, glenn, so i don't have to cite something you said last night? say it again >> well, thank you, i'll start off, thank you, joe, for having me look, we thought last night we saw some great numbers, really good numbers your point about the middle east, we did point out that october, when the most tragic thing happened in the beginning and we hit a little bit there. we talk our numbers are softer than they would have been otherwise. but you think about the year, over a billion room nights, that's just fantastic. when you think about the revenue that we produced, just gross bookings, total amount of travel that goes through us, over 150 billion, $151 billion go on through the system, it was great. and then to be able to return $10 billion back to shareholders

and share repurchases, and announcing a dividend, i thought it was just a great thing to be able to report last night. >> it was an all time high, where you close yesterday too, wasn't it? wasn't it, glenn >> yeah, it absolutely was we got a little bit of an nvidia boost yesterday, a bit of volatility in there. i think it is an important thing. the whole idea of a.i. just so fantastic, things we're doing on it right now, we see some real benefit coming down the road >> was the number, though, the -- i guess the bookings? was that a bit of -- were you surprised that -- were you at 21% for travel bookings and then you said year over year 16%. so was that -- that was because of the middle east, but that's pretty big miss. >> well, here's -- no, first of all, we didn't miss anything we exceeded our expectations from what we announced >> not the street's expectations. >> or our expectations we did better than we expected, albeit there is always aproble

when there is uncertainty and there is tragedy going on around the world. travel can be impacted but we were pleased, absolutely pleased with what we did over the quarter and we're also very pleased where we're going forward. coming out with -- talking about our first quarter, coming out saying, midpoint of a range for ebitda, we're coming out around 19%, that's a good number. and it is benefiting from easter to march, but we're very pleased with how travel is doing and we're absolutely pleased about where we think the year is going to go for 2024. >> the pandemic, the post pandemic fomo, we have been talking about that, that's over, that's finished? even for international >> well, look, we talked about international. we're back to where we were in 2019, prepandemic, in terms of mix between international and domestic certainly there was a surge of travel back, and now we're getting to more normalized travel situation but here's the thing we love

about our industry you're getting the benefit, travel is always going to grow a little bit faster than gdp so we get that benefit then there is still a tremendous number of people who are still buying travel offline. those people will come on to online and will get that tailwind too the new types of products, new services that we're doing, i talked about our flight business, 58% up year over year for the full year, that was a really good number and as we continue to develop these new things are connected trip, plus all the a.i. things we're doing, whether it be booking.com, a.i. trip planner or our priceline people with their penny product, with all a.i. driven, these are all positive tailwinds, that's why i'm just so positive about the future for us and travel in general. >> do you, at this point, in a macro, from a macro, like, 30,000 feet, glenn, what would you -- are you surprised that we

maintained this type of economic activity given of the interest rate going up 500 basis points this is odd. as a ceo, how do you account for that what is going on >> okay, so, a couple of things on this, first of all, you're speaking mostly domestic, u.s. and it has been wonderful to see there was no recession, to see how we do seem to be doing well. you look around the world, different parts of the world are doing differently. europe, things are flat there. people are a little concerned. overall travel is still very strong there we look in terms of asia, things coming back up there so all different parts of the world. here's the thing, i've been at this now almost 24 years a quarter of a century i've seen the ups and downs and the ins and outs, economies go up, economies go down, in the long run, people always want to travel and they're always going to want to travel from wherever they are in the world as more people are able to afford travel, they want to travel too.

these are positive for us. there can be recessions, election year in the u.s., you don't usually see recessions usually. usually the administration tries to do whatever they can to keep the economy going. but all and all i look long-term and long-term for us is positive >> even with the geopolitical situation, what area of the world is most important and worries you the most at this point on the other hand? you can't -- probably wouldn't sleep at all if that was -- if that's what you were doing you got to just -- you manage through anything hope for the best, but prepare for the worst. >> yeah. well, that's definitely true but even more so, we're very fortunate to be an incredibly global company we're the largest travel company in the world and we do play throughout the world one area of the world could end up in some sort of a situation that is going to be very negative for the people who live there and, of course, the businesses that operate there. we have seen that throughout the world.

look, when i look back, 24 years, i think of it, 9/11, i think of sars 1, i think about what happened, the dotcom implosion, i think about the financial crisis in 2008, i think about things like travel in europe, we go on and on, the tragedy of what is happening in all parts of the world, in terms of violence, these things are horrible things that are here, but travel continues we have to look at this on the long run one thing i always worry is people look too near term, short-term, what is going to happen tomorrow, next week i really emphasize to everybody, think long-term, and we'll be better off that way. >> you're going to be better off when a.i. takes over the world, glenn, or are you ready for that >> well, i'm not too concerned about a.i. taking over the world, but i do believe that there are some things we have to be -- we have to think about and come up with the right regulations. right now, though, i absolutely believe on the side that a.i. is

going to be an opening for society, for people in general, like all types of technology, technology can be used in the wrong way. and can be used for bad purposes we do need to have governments to be looking very carefully, to make sure that technology is used for the good, and not the evil and i think in the long run there too, we're going to benefit fantasticby all of these new types of technologies. >> you're well positioned with -- if it gets more and more powerful, if it gets exponentially more powerful in two or three years >> yeah, exactly that's one thing i love about us is having the scale that we have, the people who know a.i., we have the number of tec technologists working on this, we're at a great advantage to our competitors because of the knowledge and the data we have one of the most important things is having the data to work with, to create all the different things using the technologies, we're in a better position if it was an indy 500 race, we're in the pole position. >> right very good, glenn

thanks big move today pretty lofty levels, maybe not totally surprising from where the stock has come from. appreciate it. thanks >> thank you, joe. >> thank you, glenn. before we go, an astute viewer wants you to know that technically michelle obama could never appoint the former president to be the secretary of state. they have what is called antinepotism laws in this country. >> that's a bummer what about jared kushner >> well, and you weren't complaining about that, if you remember but, but -- >> he did a pretty good job, you got to admit. >> he was put into a senior advisory role. cannot be a cabinet member >> no. do you remember from -- do you remember co-counsels that's what we would have. if you're ready for that, you want another -- that would be 16 years of -- that would be 16 years. >> i can't have this

conversation >> 16 years. >> we're coming right back >> announcer: time now for today's aflac trivia question. in 1860, businesan jessmam spratt created what item that is now found in more than 65 million homes across america the answer when "squawk box" returns. - hip-hop! - limping! mmhmm! medical bills! uh-huh! - pancakes! - cash! who pays you cash when you have medical bills? grrr! no idea. [tapping] gap! the gap left by health insurance? who pays cash to help close that gap? aflac! oh, aflac! get help with expenses health insurance doesn't cover at aflac.com pictionary?! (vo) what does it mean to be rich?

maybe rich is less about reaching a magic number... and more about discovering magic. rich is being able to keep your loved ones close. and also send them away. rich is living life your way. and having someone who can help you get there. the key to being rich is knowing what counts. you know doug, ever since switching to workday you've been a real rock star. rock star? what do you know about rock stars? billy idol? i mean where's the skin-tight leather? my shoes are leather. where's the unnecessary zippers? that thing! billy, rock star is just how doug feels when he uses workday. thanks, rory. i'll show you rock star! be a finance and hr rock star. workday. for a changing world. billy idol just stole your golf cart!

>> announcer: now the answer to today's aflac trivia question. in 1860, businessman james spratt created what item that is now found in more than 65 million homes across america the answer, the dog biscuit. essential dog expenses, includininclude ing biscuits, cost an average of $1500 annually and welcome back to "squawk box. i'm frank holland with your morning movers we start off with shares of block. they're moving higher right now after the company reported a surprise fourth quarter profit revenue topping forecasts, boosted by 24% increase in subscriptions and services block also expects profit growth of just about 15% this year. shares are up 15%, almost 16% in the premarket. big turn around story here, carvana, surging more than 20%,

now more than 30% after reporting a smaller fourth quarter loss than expected ho however, revenue came in below estimates. the online used car retailer says it is on track for growth this year, despite economic conditions carvana reporting its first ever annual profit. that is largely due to a deal made with bond holders last year to restructure debt and boost its liquidity. you can see here, over the last year, these shares are up over 580% quite the chart here last but not least, intuitive machines surging in the premarket, up 42%, after making history as the first private company to land on the moon the mission marks the first moon landing since 1972 this is the second mission under nasa's commercial initiative, that lunar lander launched on a spacex rocket. you see shares are up almost 43% right now in the premarket joe, back over to you. >> all right, frank, thanks. coming up, coinbase calling

on the s.e.c. to approve grayscale's ethereum etf and media follower and columnist jim stewart joins us to talk warner bros. discovery company just reported. and all things media we'll be right back. partnering to unlock new ideas, to create new legacies, to transform a company, industry, economy, generation. because grit and vision working in lockstep puts you on the path to your full potential. old school grit. new world ideas. morgan stanley. that first time you take a step back. i made that. with your very own online store. i sold that. and you can manage it all in one place. i built this. and it was easy, with a partner that puts you first. godaddy.

welcome back to "squawk box. coinbase calling on the s.e.c. to approve grayscale's application to launch a spot ethereum etf the lawyer saying, quote, ether's proof of stake has demonstrably strong governance that exhibits robust characteristics across ownership concentration, consensusly wid ty and governance mitigating risks of fraud and manipulation. it is not that often when one of your competitors says go help these folks. >> well, we do have an application on file. grayscale sponsors the ticker, the largest fund in the world, and spot ethereum etf is a matter of when, not a matter of if >> you say that because with such confidence. >> i say that with confidence

because my team has been doing the tough work to move this industry forward, work constructively with regulators, focus on disclosure, investor protections and that's been true for bitcoin, proud of the work we did with gbtc. >> it took a lawsuit to get gary gensler to back down on this, right? and we just had gary here recently and you saw the interview, i would love to get your reaction to it, but left to his own devices, this is not the outcome he would have preferred. i think that's -- at least in between the lines that's what i think he has said. >> he actually wrote a pretty strong dissenting letter around this and focused on the grayscale lawsuit. >> which begs the question on the ethereum front if that is to move forum in a meaningful way, does that require another suit >> it early to say too early to say i think we have a similar dynamic in the market where the

s.e.c. has allowed for and approved ethereum futures etfs to come to market. the data suggests in a very similar way to bitcoin that spot bitcoin and bitcoin futures have a tie, the markets have a 99.9% correlation, same is true around ethereum we have a very similar dynamic here. >> give us a little bit of a behind the scenes over the last month and a half since this has now happened, there have been outflows from your firm, a lot of inflows apparently, to blackrock and some of the others, i nhave seen your ads o subways and other places how has the business changed >> i think it is about audience, right? i think that gbtc is uplisting, having come to the new york stock exchange, paved the way for all the other issuers to come to market as well has really opened the opportunity for a much larger audience of investors to participate in this asset class for the first time the products are functioning very, very well, tight spreads,

closely tracking the underlying bitcoin. it has been a major success. >> but strategically for you, is your goal to get more inflows or frankly just to prevent outflows, given that you were the leader in this space to begin with >> well, i think it is actually the question we're actually getting mostly from investors now is where else should they be investing? a lot of investors were able to benefit from being in bitcoin as early as they were because we were in bitcoin as early as we were they're looking across the rest of the grayscale product family at other assets and other areas of the market and where they can get involved in diversifying their crypto exposure. >> what does that look like then to you >> we're seeing investors actually taking note of ethereum, right, but grayscale has well over a dozen products in the market and we're seeing robust trading volumes there, investors looking to deploy capital in other areas of the market some of them taking a sector-based approach to their crypto investing. >> do you think your company, given where you are in this

space, is an independent firm two years from now a i ask because we have a dozen companies that are effectively trying to be in your space, blackrock, of course, sort of rolling in at a very aggressive speed. >> sure. >> you do have enormous amount of money under management, if you will, but part of strategically you have to sort of deal with is this idea that they can go elsewhere, you have fees that are higher than most of the others. would it make sense for you to be with somebody else? >> it could. i would be lying if i didn't say that those types of conversations and those opportunities over time have started to present themselves at grayscale. i think the investment community as a whole really took note of the grayscale lawsuit. and the victory that we had in that lawsuit and, you know, our eyes and ears are open and sometimes people are approaching us about strategically working together, but nothing to announce. >> on the bitcoin front, is your

sense, we haven't gotten to a place where all the advisers were all approved yet to be offering this as a product six months from now, they may. how does that change the balance of all of this when are we going to see -- we're seeing meaningful trading, but maybe we see lots and lots of trading, just is this still a huge community and what does that mean long-term in terms of pricing. >> i think the advise market is very important for bitcoin and crypto in general. about $40 trillion worth of advise wealth here in the u.s. over the next couple of months, i do think you will see these products begin to get aprproved on advisory platforms. my team was holding a seminar in dallas with investment professionals. and it is clear that there is still a knowledge gap amongst those professionals as to how to approach the conversations with their clients. for us, it is a reminder we have to educate advisers because

they're either scared, they know how to approach this, it is so different from everything else they invest in, or they're getting added pressure from their clients seeing the returns, seeing what having this exposure and those portfolios can do, and we have to bridge that gap for them. >> when you describe it to folks, what are you -- what is your description i got in trouble the other day, joe, you probably saw this on twitter, you and i were having a debate about whether this was a store value or whatever, i made a relatively inane comment i will admit, it was not a great comment, i said, look, it is not a store value if it goes down. it is a store value if it goes up i said it would be nice if it could hang around in one place. >> you said that after it had been the best performing asset on a five-year, ten-year and 15-year so what is the -- >> taking it on the chin. >> what is the store value then? if it is the best -- so nothing else is a store value then >> and that's why this becomes a very interesting --

>> our beloved comcast, beloved, love it, was a $64 stock it is now at $41 bitcoin was a $64,000 -- it is now at 52. are you saying that comcast is not a store value? >> what i argued over time -- >> you want it to stay right where it is. >> what i argued over time is one is a most speculative asset than the other because one has cash flows that you can look at, and you can say, okay, netflix or comcast -- >> plenty of things. >> name your business. >> plenty of things do vent -- >> they go up and down there is some basis underneath it >> what is the cash flow of chinese ceramic pottery? what is the cash flow of a -- who's that guy that draws the line across a canvas, rothco what is the -- >> i'll help settle this there are multiple truths here around bitcoin and it is a multidimensional asset.

it means different things to different people and that's okay. if andrew looks at it as a store value -- >> he doesn't. >> he doesn't? i'm sorry. >> to me, it is like gold or a baseball card. >> gold hasn't been at -- >> and many investors have adopted it as a digital gold in their portfolio. >> gold was $100 an ounce. >> i think of that as a speculative asset. >> gold? >> gold is somewhat of a speculative asset, you don't think? >> some people think the dollar is a much more speculative asset than gold. used to be on the gold standard. >> michael, you want to -- what do you think >> when we talk to -- >> no, no, no, listen, it is a healthy debate there is a solidified narrative around bitcoin being a digital gold, digital store value, a lot of the same properties of gold, but better than gold in the sense that it is more portable, more visible. >> i get that. >> no insurance.

no transporting it across -- >> sure. >> for other investors, they may be more excited about bitcoin as a technology, right, and all the use cases that are being built on top of it they look at it in their portfolio more akin to an early stage tech investment or vc. >> i'm more in the first stage than the second stage, i think. >> okay. >> ethereum, different, by the way. >> more excited about that as an early stage technology. >> okay. because of what's being built on ethereum. >> bingo. >> okay. and that's fair. multiple truths, right it can mean different things to different people and serve different roles in different portfolios >> we have different goals we have to get to a commercial. >> i don't get to see all the nasty stuff you're getting about that comment will you send it to me >> it is -- >> will you forward it to me. >> the bitcoin bulls think i'm a moron. >> i would enjoy that. >> i'm sure i would. michael sonnenshein, thank you, sir. "squawk box" coming back right after this get an expanding library filled with new online videos,

webcasts, articles, courses, and more - all crafted just for traders. and with guided learning paths stacked with content curated to fit your unique goals, you can spend less time searching and more time learning. trade brilliantly with schwab. 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

you always got your mind on the green. not you. you! your business bank account with quickbooks money now earns 5% apy.

(♪♪) that's how you business differently. intuit quickbooks. > . coming up, nikki haley will try to upset former president

donald trump in her home state you'll hear from former white house chief of staff mick mulvaney john hope brian as we head to a break. emkewinners and losers in the s&p 500. we're coming right back. er legs! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com. so this is pickleball? it's basically tennis for babies, but for adults. it should be called wiffle tennis. pickle! yeah, aw! whoo! ♪♪ these guys are intense. we got nothing to worry about. with e*trade from morgan stanley, we're ready for whatever gets served up. dude, you gotta work on your trash talk. i'd rather work on saving for retirement.

or college, since you like to get schooled. that's a pretty good burn, right? got him. good game. thanks for coming to our clinic, first one's free.

box. 256 very long days left until the 2024 presidential election south carolina trying to hold its primary. a recent poll finding one in five americans trust neither president biden or former president trump as a steward on the economy. joining us to discuss the election and economy is former white house chief of staff and now active strategic advisor co-chair mick mulvaney is here and on the set, operation co-founder chairman and ceo now cnbc contributor as well good morning to you both i want to start, if i could, for half a minute, if we could, on biden, and what your view is,

because it seems to be -- we talked about it -- over the past couple of weeks, shifting even within the democratic party about whether he is up for the job and i'm looking at john stewart, lo s, other editorials folks saying not biden, therefore, you are for trump others saying, well, no. not for biden you're for somebody else trying to get in there. curious how you think about that. >> i think that it's not even a fair comparison. i think, you know, among the nation not just a financial auditor or a financial, a money manager. it's the leader of the spirit of a country that's not a country as an idea what are our ideas rude, obnoxious, cut ourselves into three parts we need somebody to figure out how we're better together. that person may be older than you like, not the greatest

marketer in the world. fundamentals are pretty strong jobs report dang on incredible market is up inflation going down things are heading in the right direction. maybe people don't want excitement and wonder right now. maybe they want stability. get back to -- maybe smart and sexy and normal is cool? i just think you you have an option, andrew the other option tears us asunder. >> the latest msnbc poll, 22% more people wanted trump to run the economy than biden. 22%. >> how about raise your children >> no. talking about that poll, who can manage the economy better were you all the things said -- >> look, this is a ridiculous conversation we have -- >> why go on. >> well what are you going to say and then go back. >> no. i just think that -- look, we have never -- not never -- i guess after president

lincoln was assassinated we have not had a more complicated choice of a non-choice ever. i think that, what we need is somebody who has, you know, a democratic heart and republican head. you need a radical movement of common sense somebody who can figure out when we're better together, because there are countries, four of them, that want to take our place in this world and they want us to divide. the person who's not dividing us wins in the large economy in the planet i think i've answered your question without naming names. look, the president's not the greatest marker in the world fundamentals are strong m. >> mick, you think fnunds are strong >> i do their they're very, very strong it's not translating into support for president biden. that is rare ordinarily, bill clinton add mow

nation "it's the economy stupid" is right but not seeing a correlation between economic numbers and joe biden's approval, which either tells me there's another issue. could be the border bish, by thy very instructive tom ran on closing the border and won as a democrat so could be the border is driving the politics right now or it could be the age issue absolutely -- i don't think it's a meaningless conversation to talk about everything that was said right i just don't know if the average voter looks at it the same way he does. >> mick, people just -- i don't even think they're back to their buying power from before biden took office. if you -- to leave out inflation and what you see at the grocery store, a person, real wages didn't start rising until last may, and he's been president since 2020 so if you got less buying power and can't even, live as well as you did in 2019, that's -- you don't need a better marketer to tell you, oh, you are -- eating

hamburger helper without hamburger but you're better off? that's like, let them eat cake. >> give you what your argument can be, mick a year to make a compelling side from that side of things, and you said things are great. people just don't know how great it is? >> i don't think i seaid that, joe. numbers are good. >> i'll help you take it away, joe. just say it. >> go ahead. >> the gdp numbers are good, joe. my point stuff people read about in the news is right. what they're experiencing in their own lives is not we talked about this before. if you already own your home if you've already started to save for retirement things are pretty good in the middle to bottom of the economic scale going paycheck to paycheck, things are not better for you. if it is the economy, stupid, biden will probably lose the election we're not disagreeing. there's a disconnect i think what folks at the top of the scale see and folks at middle

and bottom of the scale see economically. >> that's not withstanding the age issue. john, you dance around that. he's there, that, a good character, that. he'll be president four, five years from now. >> you know had you a president in a wheelchair before right? >> i mean, i have no idea what that even means. >> you've had people less than 100% on -- >> not mentally! >> i don't think -- i wouldn't suggest age is mentally -- >> not saying age, either, but watching the mental -- you have to say that. >> and secretary of the treasury, back to the point what mick just said about the economy. >> people do not think, 85%, that he's all there. 86%. >> hundreds of people think that former president has some character issues let's get back to what actually matters. which is what joe and andrew mentioned. i think, joe, you and andrew would agree with this.

operation hope, feeling that when the inflation, when interest rates went up had an immediate hit to their pockets, and as we're having a soft landing everybody's talking about having a slower rebound which is now, joe, agreeing with you. but in the larger issue, their consumer debt. credit cards a trillion dollars now, but no different than we're doing with the employees, coaching work, literacy work bringing them back into alignment, debt down, credit score up, hope returning. get a small decrease in interest ratesmidyear i think you'll se the average consumer rebound in their confidence it does not have to be significant. has to be a signal that their gas costs and their food costs are going to start reducing their living costs. >> right >> over time mick, thank you for being a good sport. >> you're right. it's unfair. it's unfair what -- on remote,

it's unfair. >> i love you, joe. >> okay. i love you, too. coming up, columnist jim "sawbo wl t. quk x"ilbe right back. billy idol? i mean where's the skin-tight leather? my shoes are leather. where's the unnecessary zippers? that thing! billy, rock star is just how doug feels when he uses workday. thanks, rory. i'll show you rock star! be a finance and hr rock star. workday. for a changing world. billy idol just stole your golf cart!

at morgan stanley, old school hard work meets bold new thinking. to help you see untapped possibilities and relentlessly work with you to make them real. 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.

only at vanguard you're more than just an investor you're an owner. that means your priorities are ours too. our retirement tools and advice can help you leave a legacy for the ones you love. that's the value of ownership.

stock futures mixed. ahead of a friday opening bell coming off the best day for the s&p and nasdaq in more than a year. the main reason, nvidia. the a.i. leader rocketing higher on fourth quarter results. we'll ask tech investor dan if he thinks there's more room to run on this name and others. and an ipo for the home of the ama. reddit files to go public on the new york stock exchange. full details straight ahead, and final hour of "squawk box" begins right now. good friday morning. welcome back to "squawk box" right here on cnbc live at nasdaq market site in times square i'm andrew ross sorkin along with joe kernen.

becky is off today, but as you can tell, we've been -- well, could use her, a little bit of a -- u.s. equity futures this hour nasdaq off about 17 points s&p 500 up about a point after a ride almost to the moon the past couple days. look at ten year note. 4.315 up two year silting at 4.705. talk about other big stories of the morning. reddit finally going public on the new york stock exchange under ticker symbol rddt. trading expected to begin next month. the first major tech ipo of the year and first social ipo since interest in 2019 and finally reddit reporting, good news, up 20% from the year before. the bad news, they lost about $91 million in net losses. this company is 19 years old perhaps one of the biggest

surprises in that filing, the fact that sam altman of openai is a major, major shareholder of that company owns shares, depending where this things trades at, valued close to half a billion dollars. meantime, at&t selling cell phone service restored to thousands. the company say be cyber attack not responsible. rather saying a glitch, as it worked to expand its network sources telling cnbc -- i should say, by the way, somebody saying still problems some individuals having problems i don't know meantime, sources telling cnbc capital one's takeover proposal for discover financial includes a roughly $1.4 billion breakup feep if discover decides to go with another buyer sources say no fee if u.s. regulators kill the deal talked a lot about the regulatory hurdles they face talk more about the story in a couple minutes with the "new

york times'" jim stewart. frank holland joins us with a look at this morning's top pre-market movers. >> earnings mover carvana. shares surging more than 28% reporting a smaller forth quarter loss than expected revenue came in below estimates. on track for growth this year despite economic conditions. carvana reporting first-ever annual profit. that slarg lyargely due to a deh bond holders restructuring debt and boost liquidity. mention here, you see the chart. huge move to the upside for carvana. shares up more than 560% over the last year. stick with the auto theme. rivian shares lower this morning on a barclays downgrade after falling more than 25% yid. not quite working. 25% yesterday on earnings and a softer than expected vehicle production forecast. back to the downgrade. analysts say ev maker has great product and tech but still impacted by what they called ev

winner new rate ingsratings, kuwait we about a 40% upside from where it's trading now down 1.75% live nation shares moving higher after earnings with a concert revenue jump 44% year over year. helped by tourist from taylor swift, and involved with a totowur the most, don't think involved in beyonce's biggest year ever for ticket sales and attendance live nation shares up almost 5.5% joe, back over to you. >> involves a strong word. yeah. >> trying to give you credit, joe. >> well, nobody gave me credit including her. >> that's okay >> the people that were involved no exactly what happened anyway, thank you, frank. nvidia 16% spike yesterday added more than $250 billion to the company's market cap it was the biggest session gain

for a stock ever, in a single set. joining us for-the-take on nvidia, tech sector and market at large, options play director of education and -- and product. that's saying something for it to be biggest market cap gain in history on, in a single session. i know a lot of large numbers, but it's hard not to just be impressed. >> absolutely. this chart certainly mirrors that and i really think it's interesting what the options market said yesterday. so nvidia is clearly in a bullish trading cycle and we're looking at something with an astronomical projection. something called an extension act, support and resistance overname 161.8 extension line from previous trend which was 747, which means next resistance level 200% line. that's about $900.

a lot of upward momentum day of expiration, pre-earnings can still use the same methodology on day of exp expiration, today. so much bullish options yed for every one put 1.6 calmls, buying 2% move today. another 5% next week but the call volume was stras n astronomical yed incredible concentration on calls. 115,000 traded highest concentration, flip side hig highest concentration, 40,000. con detect how much put in by options for nvidia. >> who's on the other side of that call trade? would that be people that own the stock selling the calls? would anyone sell those calls

ma maked na naked, i'd be so surprised. >> coulding individual investor. market maker keep the portfolio. probably why we see it close around the 800 mark and up 2% probably. >> do a long spread i guess. right? buy out with a higher strike price. i guess you can sell puts and calls i guess, and, because volatility on both sides was probably, probably pretty rich premiums right? >> yeah. puts, neutral take away from bullish. selling point, capitalize on high hvolatility capital sensitive. >> what you see now, does it give a look into what to expect over the next six weeks for nvidia >> it has been overcoming resistance that it is 900, which is still really, really high, but now i think the market's going to shift

we saw that a.i. narrative it's that pool, demand pool we wanted to see translating because of the narrow rally. check thoed that box. we need to see broadening out. i want to look at other indices to see that moral support, holding up the whole team. i want to see others do work, too. >> in terms of sentiment, put calls, things like that, what's the overall market telling you what about technology? magnificent seven, et cetera >> yeah. technology, still catch the nasdaq 100 actually showing trends weathering, a little concerning. when i'm looking at a charting perspective i look to like at 13, 26 and 40 moving week averages over a two year minimum or three-year period 9 reason, indicative of one, two and three quarters worth of prices look at the market quarterly always talking about earnings. i want to see prices increase,

which security, technical way to look at the fundamental perspective. a bullish trend. that is great. i want to see it moving upwards. however, you pull two standard deviations for nasdaq 100, we're war waning away. last time it happened actually july 2023 of last year when we had that big fall, if you recall july 31st. i will not forget that date. there's confirmation required. by mac d, underlying makes higher high i want to see that make a higher high as well look at peaks and troughs. it has hpeaks. on watch now confirmation look at the s&p 500, looks better. >> can you follow the interest rate complex and -- obviously options there as well. are we going back to 5% on the ten year or going back down

>> i don't think that's going to happen definitely an area of key resistance so absolutely. we have to look at the treasury market especially everything to function on supply and demand. the way we look at technicals. participation and options something i'm looking for, but key resistance around 5% level and work inversely if we do not, or do, overcome resistance, could be very, very bad for the market but good there is certainly a level there. >> okay. all right. jessica, thank you important data i don't know whether -- is this a tail weighing the dog? sometime tail wag the dog? we can learn a lot i don't know which informs the other. it's useful information. appreciate having you on. >> thank you. coming up, much more on the long-awaited ipo up next, metrics the company disclosed and whether knew is a good time to take the big market

plunge jim stewart will join us for that inside this morning's warner brother's-discovery results and maybe a little antitrust stuff as well. do not go anywhere "squawbo rli o aer this. ngn,ft 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

world. reddit filing public on the new york stock exchange. julia boorstin spends 22, 24 hours a day on reddit and in all the chat rooms probably not true. is it, julia >> probably not true, but i do really enjoy reading an f1 and got the f1 from reddit last night. fascinating to look under the hood of this company lists on the new york stock exchange under the ticker rddt reddit revealing $804 million annual sales for 2022. up 20% from $667 billion previous year. the company report agnes loss of

$91 million last year down from a net loss of $159 million the year prior reddit's average revenue per user was $3.42 that was a 2% year over year decline from 349, prior year the company's underwriters in ipo including morgan stanley, jpmorgan and citi group, users and 67.5 million children weekly active user. now the company is working to engage its community in this operating. saying they reserved about 1.3 million shares of class a common stock to fund community-realitied programs and say they're non employees moderators, reddit-ers able to participate through its directive share program. reddit explains value of its current primary revenue, joe, which is advertising user see reddit as a trustworthy

place to inform purchased decisions and emerging business in data licensing as well as a future business around user economy including ecommerce. in terms of major shareholders, ico sam altman owns 8.7 of the company's stock. third largest shareholder behind advance, own as third and chinese giant tenconse cent own. risk factors, given its high brand recognition and its own subreddit wall street bets, robo game stock, you recall, along with other retail investor awareness that can cause extreme volatility for reasons unrelated to its underlying business kind of a meta risk factor embedded in its own company. joe? >> in fact, that is. we talked about it earlier

interesting. what does the company say about its growth potential, market opportunity? profitability? some day >> profitability some day. do say won't issue a dividend anytime soon but talk about using a.i. to make their ad business more effective and also about potential in search. this idea that they are going to be improving their search capabilities to treat that reddit volume of data, all of those conversations and comments as to really open that up to the search market. then really end of the day it's about the advertising opportunity, and they say here that they believe that the search business can be a trillion dollar business down the road, but i have to point out meta's revenue is $135 billion last year. sorry. overall advertising market, see directable market at a trillion dollars. what piece of market share will they get of that $1 trillion

addressing the market? saying it's only going to grow and they want a bigger piece of it, of course. >> thank you, julia. turning now to continue this conversation also talk about reddit this morning. ipo landscape and a little streaming as well. warner brothers discovery out with worst than expected results in some ways in terms of the revenue profit line. free cash flow, what they are trying to do there use that free cash flow to pay down debt the question is can you pay it down fast enough jim stewart is here a columnist and cnbc contributor jim, great to see you this morning. >> nice to see you. >> first, talk a little warner brothers-discovery >> start with reddit since we just heard that excellent analysis from julia. i think it's an -- i like the business model here. one of those highly sought-after network effect

you want to be in a community like that, you want to go to the place and has the most participants and that seems to be reddit at this point. i know some competition with facebook and other competitors there, but that's the, a little like an auction site you want to go to the one with the most views that's going for it. impressive number of users i think the problem is a little like twitter it is a fully, almost fully ad-supported operation and talking about search revenue, addressable market that's hugely, that's huge but absurd they'll get a major piece of that. advertisers are very sensitive to what goes on, on these platforms, and reddit for a long time had this kind of wild west reputation, part of its appeal you could go on and say, pretty much anything, or find like-minded people to discuss things nobody in society wants to talk about. but that's not what advertisers want i hear they've been really kind

of cracking down on that, trying to crack down on that. next time you get a blowup of some, you know, hate speech going on on reddit, advertisers are going to run >> let me toss to critiques. curious what you think one is, company is 19 years old. still has $90 million in losses. one piece of it. it's not like a facebook or something else where, infancy still. this is, argue, a mature company. how are you supposed to think about that the other piece goes to the challenges you referred to have reddit, challenges at twitter. goes to how big the market is for these businesses, because of the tech space even though you and i are in the writing business most find writing, i find it tough, by the way. one of the things that made an instagram or tiktok work so well is video video for better or worse is a lot easier to create and, therefore, a lot more people who are just doing it all the time

coming up with interesting things to say with your fingers for better or worse seems to be more complicated for most people. >> certainly interesting to know what the demographics are of their users. i bet it tilts older i don't think that you know, that coveted team, early 20s market for the very reasons you point out, are -- well, some of them certainly we saw in the gamestop some are pretty young. i'm not saying they don't use it but not sure that's their main demographic audience for the very reason that you were saying. whether they could somehow work in, you know, a video component, i haven't heard them talk about that. >> right. >> is that feasible in the future maybe. i don't know that's way out there i agree. the fact there's a $90 million loss after 20 years of operations tried to go public a couple years ago. that didn't work out.

how much progress have they mid since then it's, you know -- significant. they have grown, but you know, like you said they're not making money. >> tend to get to a profit anytime soon and can they do that by way of these partnerships with google and others where they're selling effectively their content to train and be used inferences for a.i., for example? >> they're touting the possibility of a.i. for their business, and, you know, everybody's slapping a.i. on now, on to everything. hoping to get nvidia halo, but honestly i don't quite see it. i'm, i don't purport to be an expert in that, but how a.i. would dramatic improve their targeted search function or -- isn't self-evident to me. >> i wonder whether a.i. can help you be a better writer for folks trying to bring out ideas, put ideas on reddit.

pivot to warner brothers discovery news stock down on back of the news down 5%. we mentioned, estimate to revenue and profit but did boost free cash flow and the ceo of that company trying to get that free cash flow number as high as humanly possible so that he can pay down debt still about $44 billion of it. what do you make of these numbers? >> one important thing to recognize asterisk because of the strikes. last quarter you'll see benefit from the fact they couldn't spend. if you look at those numbers, a lot of the improvement came from a decline in costs that is not sustainable. netflix is spending again. putting the pedal on the accelerator. you have to create new content it's expensive and they're not going to benefit from that much longer something i think people are probably factoring in and should the other i think worrisome thing is continuing melt it in the tribble linear cable

channels still a big chunk of the warner business you know out -- you're absolutely right that the rate is how fast can they reduce the debt at the same time that this ad revenue and -- subscriber, you know, numbers on the linear channel is melting away a good number. >> the question i would ask you is, got two issues trying to solve at the same time one is got to, got to get down the debt number. at some point try to show this is a growing business to capture some kind of better multiple the question is, which do you have to do first. >> right. >> sounds like right now, saying the first and most important thing is being incense vised economically to do it, to get that debt number down, and hope that there's a churn -- shouldn't say a churn, c-h-u-r-n, a turn in the business do you think that? or does it require a deal?

>> the only growth in there is streaming. to their credit, they claim they have a pro forma profit in streaming. a market, impressive as i said, asterisk didn't have to spend much on content thanks to the strikes i thought that's realistic growth in the streaming subscribers is, you know, it's -- it's levelling out it's not, not continuing to surge. whether people are going to look -- i mean, it's considered a beat if you can eke out teeny, teeny profit in streaming now. a far cry from thinking streaming is a new pot of gold end of the rainbow i think you know -- investors expectations for streaming sector which is the growth area to them, have come way down. >> that stock, you know, you know how much money he's made because of what he's able to do with discovery's stock

remember, over the years, jim? >> oh, yeah. >> he's not used to things that look like that i'm wondering whether that's a commentary on media in general or the amount of debt? or how big it is maybe it's, you know, different than just running discovery? do you think this finally -- think he finally turns this around or just streaming too intractablintract a able what to do you think >> i don't think it's -- he's doing a pretty good job here with a very difficult -- he sterp stepped into what at&t handed over to him, oh, my god. a challenge and got surprises. most believe that warner discovery is subscale in the streaming world, and that is the fundamental problem that they're up against you know, netflix is a very profitable business, and doing very well and spending a lot on new content and how do you compete with that when you don't, you have only a fraction

of their subscribers and your average revenue is so much lower. >> are you home, jim is that your -- >> no. >> looking at that piece behind you looks like -- you're a renaissance man. i know that. >> a painting, yeah. >> is that real? >> it is a real painting but -- nobody cares about -- american paintings. everyone wants modern. if i was investing in something, this would be the equivalent of a value stock. nobody wants these anymore. >> someone asked me to ask you about it an interest in that type of stuff. she's impressed with that. i know you're a renaissance -- just -- i didn't think you did it, though. >> no, no, no, no, no. i'm not a painter. i just like looking at it. >> but i like that value stock you know, everybody wants -- the beat >> legendary jim stewart, thank you for joining us this morning.

should have talked sports with him. >> triple play. >> maybe next up >> yeah. had that suggested maybe had -- next time. next, telling us what to do, ready to talk about anything his take on all of today's stories, reddit ipo, regulatory challenges. i don't know he worked with trump probably wants to talk about that. >> no, no. i'm over that. >> are you >> okay. >> got you excited with the return of the obamas plus later in the hour, tech stock guru dan niles helping maim sense of nvidia's rise and still room to run for the magnificent seven members. stay tuned you're watching "squawk box" on cnbc. is a spa. an office. hi! hello!

a cinema. so automated. yes, the definition of a car changes... but one thing stays the same. it's a mercedes-benz. power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis, help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley. with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley. (clock ringing) go. and go and go and go. (tense music) but what if you. (tense music)

stop! you work hard. it's time for a bank that'll work hard for you. everbank performance savings is built to put your money to work with some of the highest rates in the country. going, that's what got you where you want to be. we're the partners for your next move. everbank. advantage, you. fresh, warm hot dogs! when i'm not selling hot dogs, i invest in a fund that advances innovations like robotics. fresh, warm hot dogs, straight out of my torso! one for you, one for you. oh, you're a messy one. cool, right? so cool. anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. hot dogs! fresh, warm hot dogs! before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com. (ella) fashion moves fast. fund investment objectives, setting trends is our business. we need to scale with customer demand... in real time. (jen) so we partner with verizon. their solution for us? a private 5g network.

(ella) we now get more control of production, efficiencies, and greater agility. (marquis) with a custom private 5g network. our customers get what they want, when they want it. (jen) now we're even smarter and ready for what's next. (vo) achieve enterprise intelligence. it's your vision, it's your verizon.

coming up, learning more about capital one's proposed takeover of discover after s.e.c. chairman jay clayton shares his thoughts on that deal reddit ipo politics and so much more we're coming right back. our therapists give their all each day, by helping those who need it most. we take great pride not just in the job our team does, but in them as people. our people. and while we're in the business of taking care of others... it's important our therapists know that with benefits from principal, they're taken care of too. (♪♪) that first time you take a step back. i made that. with your very own online store. i sold that. and you can manage it all in one place. i built this. and it was easy, with a partner that puts you first.

godaddy.

jay clayton joining us on set to talk about the big stories of the day jay is former chairman of the s.e.c. and cnbc contributor. talking about reddit think it's resting, because andrew keeps pointing out, it's been around a long time and losing a fair amount of money every year i don't know would you want to get in on this ipo? a business model that's going to payoff >> look, it's -- it's a network. it's a network play. right? the idea that you have broadest network and that the broader your network gets the more valuable you are to the next participant. and we've seen a lot of, that's amazon right? didn't make money for a long time, until the broader the network they got the more value to deliver to the next participant. i think that's the play ere.

i'm not -- the world's greatest investor, but that's what we're seeing. >> you know about disclosures. interesting to see we have a bunch of wackos on our reddit and that's an actual risk to the company. i don't know >> it is a risk to the company right? >> wall street says -- what was his name crazy kitty or something >> roaring kitty made a movie. >> i know. andrew starred in it. >> actually a pretty good movie. >> really? >> yeah, yeah. a good movie about in the staple bhe stable the guy. >> time in our markets, talked about the fact you can't regulate euphoria. >> can we, talking about regulations, to your thoughts on discover capital one whether you think a deal like that will be allowed in this environment? >> well -- >> yeah.

sd discover not discovery. >> people confuse. >> i'm not working on the deal let me say that up front people waiting for competition between visa and mastercard for decades. it would shock me if you weren't allowed to add heft to a potential competitor, visa and mastercard >> i made that argument the day it came out. said, this would be a good thing because people think that visa and mastercard are like a tax on the entire economy if you could have another competitor actually valuable but there's this other argument to be made that, in terms of banking, you don't want more consolidation, and making capital one a stronger, becomes a, first of all, number one credit card company in the country over jpmorgan and citigroup, and whether you think there's too much consolidation and treasury would somehow try to -- >> i'm not saying i watch every

minute of this show all the time, but you have the stellantis ceo on. his thing on home car companies? >> five or six. >> five. still way over banked. >> way over banked >> way over banked. >> and employees not watching us, what do you mean you don't watch -- you don't want to cop to that? that you watch the show -- >> i try to diversify a little bit. >> hold on >> not -- >> when we -- >> silicon valley bank. >> yep. >> some made the argument we were over banked and people thought that was sac relrilegio. 4,000 banks in the country. >> yeah. >> cuckoo for cocoa puffs rel l ative to other countries in the world. >> who will serve small and medium sized

a real issue are we going to have banks of a size that do that? there's no doubt we're over banked and no doubt inability of banks to consolidate over the last four years has been a negative >> you want me to look into the sun? i'll do it i'm going to do it >> go for it. >> sunglasses on. >> ten days ago came in said joe biden won't be the nominee and now you say we're coming to that conclusion >> put me on the spot and asked -- >> no. i didn't it was him . >> i think you looked right into the sun. >> the part i'm looking into the sun. you said something very compelling that -- at least to me, i would open up to this and that is wes moore. i've seen it written seen the article written that this -- sort of panic move to just prop up biden at all costs by democrats, democrats are missing the opportunity to sort

of pick the next -- alluded to as the next young, rising, unbelievably incredible czar and you're not doing it, because you've got all your eggs in this one basket you immediately said wes moore not the guy presiding over the california, dropping into the sea. that's not going to be the guy is it? >> okay. let's just -- what do the american -- >> look into the sun. >> what do the american people want they want somebody center left or center right. what the american people want. >> yeah. >> do they >> yeah. >> as we say look where we aring a you'd argue the opposite. >> well, you know -- we have a party system. >> right. >> i'll be a little philosophical here george w. bush, bill clinton and donald trump, what do they have in common? >> all presidents. >> all born in the same year. >> oh, right yeah i remember. >> we've had the same cohort of

people running this country for a very long time, and when you have the same cohort of people doing that, people will gravitate towards extremes because that's what you do when you have the same people it's like -- worry about the same thing in a board room worry about the same thing -- >> and can -- george w. bush and. >> biden born before all of them >> biden born before all of them yes. >> that is a cohort, though -- >> we know front of the show friend of ours, we know him. his resume is almost too good. >> look -- >> probably wouldn't want to be president. >> and -- >> i think too early >> hasn't been -- >> john hope, you know, is right. the american people want a stable economy. you know our economy is our great strength and donald trump delivered a good economy so you have to deal with that. >> but john also said that -- fdr disability similar to joe

biden. >> and richard fischer tell you had an a-plus economy. >> joe brought the most important point pap good top-line economy do you have a good real-wage economy today? we don't a basket of goods that was -- >> i don't disagree. >> well, then -- >> it's not relative, making less money than you were when he took office. >> i understand that. >> less buying power. >> this is clike comparing, end of george bush's reign and think about trump and covid. >> all right get you to, go to 7.2 million people that walk across the border over the last year. >> not telling you there's not issues in the country. >> do you want to have a re-election economy talk about the pre-covid economy and talk about the one today. saying normalized basis's in those two areas -- >> the middle class -- >> middle-class consumer is worse off. that's going to happen anytime

you go through a roller coaster ride, but middle class consumer is worse off today than they were pre-covid. >> think about the setup think about the setup to the trump economy. think about the setup to the trump economy. >> uh-huh. >> i mean -- barack obama for eight years. i argue the last two, three years of the obama admini administration. >> wait a second telling me obama had a growth economy? not one pro-growth policy! econn a position -- byd then you call pro-growth policies in place. >> andrew, added debt to the economy. >> and to be clear as a percentage of gdp. >> as a percentage of gdp i agree, but that kind of cycle did not -- >> we had greatest receipts, tax receipts, during the trump years as percentage -- >> and 14 million jobs that he

says he created, 12 of them were getting back from what we lost in the economy in the first place, of the, reducing the deficit cutting it in half, that's because we were spending $4 trillion on -- all the stuff -- >> let me try to turn this -- >> a little bit -- >> i think every candidate should be, every candidate should be asked the following -- we've used up fiscal spending. we can't push anymore. >> 100% agree. >> gdp either raising or cutting taxes is going to be difficult what are the things you're going to do as president to drive the economy forward if you can't do those two? that's a very good question. >> i think secondary -- it's secondary question might be a first order question, though, about character, about all sorts of things about dividing the country and -- >> i really believe -- >> dementia offsets character. okay i -- buy, sell or hold

i disagree >> dimension -- over character. >> you don't think those two cancel each other? you don't think -- you'd rather have someone in three or four years is not -- i mean -- >> genuinely thereare people i the country who believe, and i -- fairly, that democracy is -- >> because they won't enforce laws at the border, andrew that's why democracy is ending. >> jay clayton thank you. on a friday morning! great to have you here >> have we solved anything >> we did. buy, sell or hold. coming up on the other side of this, a fascinating story talk to dan niles joining us to talk about some of the biggest tech stocks. nvidia, blowout earnings also talk about amazon getting ret to join the dow and so much mo watching "squawk box" on a friday morning do not go anywhere.

you know doug, ever since switching to workday you've been a real rock star. rock star? what do you know about rock stars? billy idol? i mean where's the skin-tight leather? my shoes are leather. where's the unnecessary zippers? that thing! billy, rock star is just how doug feels when he uses workday. thanks, rory.

i'll show you rock star! be a finance and hr rock star. workday. for a changing world. billy idol just stole your golf cart! hi, i'm greg. i live in bloomington, illinois. i'm not an actor. i'm just a regular person. some people say, "why should i take prevagen? i don't have a problem with my memory." memory loss is, is not something that occurs overnight. i started noticing subtle lapses in memory. i want people to know that prevagen has worked for me. it's helped my memory. it's helped my cognitive qualities. give it a try. i want it to help you just like it has helped me. prevagen. at stores everywhere without a prescription.

up next, tech investors dan niles joins us live for a conversation. you don't want to miss stay tuned "squawk box" will be right back. . bringing you an elevated experience, tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading.

and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly. icy hot. ice works fast. ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot. ♪♪ ♪♪ ♪♪ ♪♪ ♪♪

welcome back b back to "squawk box," our next guest saying the magnificent seven should be rebranded the fantastic four on that list, meta, amazon, microsoft, and nvidia. that stock, pointing more gains in the premarket this morning after a 16-point spike yesterday, juicing markets all around the world joining us right now, dan niles, founder and senior portfolio manager. i was going with the fancy four. fancy four >> i look the word, fancy.

>> i'm a super bowhero fan, soia to go fantastic four >> i hear you. why don't you just explain why you're taking three off the list that, i'm curious about, actually >> well, i think if you look at the last two years, really, stock prices were driven by the fed, so you go back to 2022, the fantastic or the magnificent seven as they called them were down 46% during that period of time and that was because we had the fastest rate hikes in history, had very little to do with earnings go back to last year, the magnificent seven were up 111% over that same period of time. again, not really earnings-driven. every stock went up because fed was on hold, people were, at one point, expecting up to seven rate cuts, and so multiples expanded across the board, and stocks ripped. right now, where you are is earnings seem to be driving a differentiation among these names, so apple, after they

reported their december quarter, estimates went down again from march. for tesla, similar situation and if you look at google in that group, they did well in their a.i.-related business, google cloud, but their big business, which is search, which is what they're known for, and youtube, both of those categories missed. meanwhile, you had meta blowing out numbers. if you look at those three that i dropped off the list, that's what they all have in common the earnings are struggling. they're having issues with competition. and i think you're seeing that in the stock prices where apple, tesla are both down this year. google is underperforming the market, and then the fantastic four are absolutely doing great because the numbers for three of the four went up a ton, and microsoft, obviously, chatgpt, they own 49% of openai massive benefit for them so, that's why we've dropped

those three off the list it's competition issues. >> of the fantastic or fancy four as we're going to call them here on "squawk," which one do you like the most? you're only allowed to own one >> if i had to own one, just from a risk-reward basis, i'd probably go with meta. it was my top pick, one of my top five picks last year the stock, you know, obviously, tripled last year. almost tripled and if you look at it this year, it's also doing well, and the reason why i like it is they're using a.i. to help drive content recommendations so people are more engaged with the platform they're using it to drive better ad monitoretization. this election is going to be the most hotly contested election we've ever seen with tons of advertising and that's going to benefit meta during that period of time as well, and it's growing high teens, but you can buy it at a 24 pe. the entire market -- the s&p is

trading at 21 times, so it's got this great combination of low valuation, fast growth, and a presidential election that's a nice kicker towards the end of the year and so, that's why that's probably my top pick >> what do you think of nvidia some people think -- it's got so much more room to run, and others say it has run too far. >> well, there's a time element and a multiple element to this, so if you go back to the tech bubble, which we all lived through, cisco, at the time, was the most valuable company in the world. nvidia's now third most valuable company. but during the peak of that bubble, cisco was growing revenues close to 60%, but it had a pe of 138 times. nvidia grew revenues at just over 100% last year, forecasted to grow 90% this year. cisco peaked at 138 times. nvidia's at 35 times there's a whole group of

semiconductor companies that actually have higher pe ratios than nvidia does, believe it or not. so -- and nvidia's enabling the a.i. revolution, and don't forget, we never even heard of chatgpt until november of 2022 that tech bubble, you could argue, started in 1995 when this new thing called the internet, what's that, showed up, and it took five years for you to actually build to that peak. so, this is a year and a quarter or so since chatgpt showed up. i think you have a long way to go before you kind of get to that peak level of euphoria, if you want to call it that, because we're nowhere near that yet. >> what about google >> google's the one that i want to get long. we're short it right now, because i look at google, and i go, everybody's sort of written them off in this a.i. race, but they have more data than anyone. the problem is they have this cash cow called search that they're trying to defend the problem is things like

chatgpt are growing incredibly rapidly, and a lot of people are using that for conversational results instead of tapping through ten blue links to try to find what you want you can interact with an a.i., and then that will tell you what hotel you want by talking to you and asking you, do you like a gym? do you want a four-star restaurant then it will tell you, this is what you should pick so, i think that's the issue google has right now is -- and on the youtube front, things like amazon launching ads on prime, that's taking a lot of ad revenue that would have gone to youtube or ads on netflix, ads on disney, but they also are going to benefit from a presidential election. so, that's the one, trading at a market multiple that if they can kind of decide, all right, we're going to go all in on a.i., and, you know, we'll deal with the fact it may kill off some of our search revenues, that's when it gets really exciting, because

that's the one -- a market multiple that has a huge amount of training data to train a.i. models we'll see what happens there >> okay. dan, it is always good to see you. we appreciate your perspective thanks for hanging out on a friday morning meantime, we got some other news for you this, not so great news. digital media outlet vice planning to lay off hundreds of employees and cease publishing on vice.com. that's according to a memo put out by the company's ceo, which said that employees are to be laid off and would be notified next week. back in 2017, if you remember this one, vice was valued at $5.7 billion every media company wanted to be vice, like a lot of other digital media start-ups. it has seen its fortunes change in recent years. vice filed for bankruptcy last year it was sold afterwards for $350 million to a consortium led by fortress investment group >> yeah. so, what's good, old media or new media? no media >> tech. >> tech media. >> tech media. social media >> what's good streaming or analog?

nothing's good >> feels that way, doesn't it? except for "squawk." >> "squawk box" is good. you're okay. unhinged "squawk box" okay with you? let's do it on monday. >> make sure you join us on monday for another version of unhinged "squawk box." "squawk on the street" begins right now. have a great weekend, everybody. ♪ good friday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer at post nine of the new york stock exchange david faber has the morning off. we put this barn burner of a week to bed today, coming off the s&p's best day in more than a year, post-nvidia. yields are a bit elevated as jpmorgan and goldman make hawkish adjustments to their rate forecasts our road map begins with nvidia versus the fed fed officials yesterday signal no rush to cut rates block shares are surging ahead of the open. company reports a surprise profit