just a great, steady story >> joe snmplt >> intuit reported earnings this morning. i was listening to cramer this morning. he said it shouldn't be down look where it is right now approaching a new all-time high. swez'll see if the nasdaq can get that closing high. "the exchange" is now. ♪ ♪ hi, everybody. welcome to "the exchange." here is what's ahead tech stocks are treading water after a big run. the nasdaq is flat s&p tech sector flat the dow, the only major average that hasn't dipped into negative territory at some point in today's session. nvidia briefly touched $2 trillion this morning, so is the ai momentum finally starting to slow our trader says not just yet the names she's buying now, and the one to avoid a different story for live nation, however. shares higher following

yesterday's strong earnings. we'll talk to the company's ceo. tomorrow marks the two-year anniversary of russia's invasion of ukraine 500 new sanctions issued this morning. chuck schumer in ukraine to show solidarity as well as pressure republicans to pass the latest aid package. all this as russian troops move further west we'll talk to a panel of experts about what's next. we begin with today's market action with dominic chu. >> we have seen either side of the unchanged line, but we're in the green generally speaking, enough to not bury the lead here we did hit record intraday highs for the dow jones industrial average and the s&p 500. but we're off the session highs. to give you an idea where we are right now, the dow at 39,162, up one quarter of 1%. not much, but it's still something positive the s&p 500 approaching the 5100

mark up eight points. about 0.2 of 1%. at the highs we were up 24 points there and so we have seen either side of it, but tilting a little more towards the middle of this range. still good enough for a high for the s&p 500. >> the nasdaq, it's been a big week for the nasdaq. 16,044, just about flat on the session today. let's take you through the week that was it was a banner one for many parts of the market. every single sector in the s&p 500 is up. but the laggards, we don't often talk about those, the laggards have been the energy sector, the real estate sector, and the utility sector you can see about 1/3 of 1% gains for those. still gains, just not as good as elsewhere. as opposed to the outperformers, technology leads the way, given what we have seen in technology shares overall but the consumer staples trade,

one to keep a close eye on, some deep value buying, happening in consumer staples with the interest rate picture. and we have to end on this john. near $2 trillion market cap that we're at in nvidia, topping that $2 trillion mark at one point. it's about $800 a share, up another 2% at this point, nvidia, john, the stock of the day the stock of the week. the stock of the season, maybe the stock of the year at this point. back over to you >> it's only february. walmart had a big week, too. but yeah, even the nasdaq has to stop for a drink of water. optimism of fed rate cuts lit a fire in october, but the market's tightening expectations have taken quite the turn. steve liesman joins me with that story. >> before that, some quick headlines from the new york fed president. he says hiking rates is not his base case but wouldn't rethink that idea if the outlook changes

materially he says it's appropriate to cut rates likely later this year and the view of the economy, his view didn't change after the january data he says the economy is moving in the right direction. today, we marked a milestone this the outlook here -- or yesterday, when futures markets were fully priced out. all the exuberance of the fed lowering rates, which took place in november. powell acknowledged that the fed had discussed rate cuts at the the december meeting and seven cuts were priced in this year. that's the bottom of the chart but futures markets started taking back that easing with higher inflation data and stronger payroll numbers and that barrage of fed speak that

warned on bets of early cuts the stock market sold off when it looked like the fed would do less but stocks are in the middle of the chart. they started to go their separate ways around the middle of january and bracing better economic growth and most importantly, better earnings for now, it seems stocks can trade higher on earnings and on better economic growth and a forecast of a future but fewer cuts the question if the market and the economy are going to hold up while the fed gets comfortable enough to cut. >> that is a big question, steve. stay with us, as we explore it with our next guest who says that no matter what the fed does with rates, strong earnings, excitement over ai, they're going to keep the rally going. but with a small catch he says 2024 is going to be the show me the money year, as the ai hype for many companies will prove overblown, and only the true winners will continue higher joining me now is michael landsberg. well, michael, good to see you

happy friday nvidia certainly showed us the money this week. and to me, it seemed like a pivotal moment it came the day after palo alto networks, another high-flying name, disappointed on the guide. so what's the importance of that 24-hour period to the overall market, not just these two stocks between palo alto and nvidia >> i think a lot of people were holding their breath related to nvidia it's a bellwether in the space they've redefined what generative ai is, as people were looking at the ecosystem nvidia provides if they disappointed, the bubble pops it came out and blew away earnings again a lot of that rally has increased, and maybe the cybersecurity story still a good one. maybe not as good as the ai story. but we've seen a cybersecurity rally again, as well nvidia obviously drove it. i think we're seeing some other opportunities in the tech space to follow along. the earnings have been so strong

in tech. what is does this say for the overall market narrative for so much of the last, you know, seven weeks, 2024 and the market, we've been hearing about we need more breadth we can't just rely on the big tech stocks. it has to be more than just about the magnificent seven. now we're talking about nvidia again. is that healthy for the overall market >> it isn't. yesterday's return, i think four stocks were 46% returns yesterday. so it does need to broaden out what's been exciting is that the s&p, 90% of the stocks they reported this quarter, you know, earnings rose up 6% year over year last year we didn't have a lot of that growth nasdaq is up 32% year over year. so we're starting to see a broadening out we're getting some momentum in some other stocks. the russell 2,000 is not dead anymore. starting to show some signs of life that's a positive sign i'm hoping it broadens out nvidia has done a lot of the

heavy lifting as the other mag five have, as well >> poor tesla. steve liesman, is this the ideal scenario or close to it for the fed? because you get the sense they don't like to be the story, and right now, the market seems to be moving just fine, and at the same time, the fed's not having to threaten to hike rates, even as some of this overall economic data comes in hotter than many e expected >> i think the fed is happy to be on the sidelines and let stocks respond to what's going on with the economy and earnings it's a place i think the fed prefers to be. but it shouldn't be lulled into a complacency here what it does is going to matter. i think what michael is talking about, and you too john, may be something that is interestingly divorced from the economic cycle. this ai thing, i think, has a life of its own that, if you were in a recession, i think the ai thing would go on more and more, i think this ai

thing is linked to secular labor shortage problems, as well as problems in supply chains. all of this should enhance productivity that's going to be a big challenge for the fed if there's a step change in productivity. but i think the fed is going to have to act here when michael talks about the broadening of the rally, i think it's going to be mlinked to that there's this erosion underneath from companies that have to refinance, from the cre problem, from consumers having high interest rates that's a problem, and the fed is going to have to respond, because, in fact, rates are restriketive and they're going to get more restrictive as inflation falls on a real basis. >> we promised the people, michael, some opportunities beyond the mag seven so let's give it to them you like demcom and several others none of those are huge so why do you like them? >> dexcom has sold off in the

last year or so. they're in the glucose monitoring business. everyone has seen the rallies, and this is going to grow 20% a year really diabetes i type scenario. great management, double digit growth, and for us, i think it sold off becauseof the rationa fears that the gop was going to solve everyone zoetis is a name we like vet visits were down, but they've been double digit growth during that period of line it gets stronger as pets become more and more important. msci is the morgan stanley capital research data team huge margins in that business, not a lot of competition again, the stock hasn't moved that much.

first three stocks haven't moved that much. the last one that last, arista networks they have a phenomenal ceo they're in the switching business, which makes ai and some of these data center hyper scalers work faster. she's killed it in terms of a stock that's moved higher and higher but it's an $80 billion market cap stock. the biggest customers are the metas of the world, so it's a back door play of ai, but it's not up 300% like some of the other pure plays like nvidia >> we like to talk to her. arista. and i i don't know how my cat, o opel, can get any more important. sticking with tech, turning to the ipo market, the home page

of the internet gearing up to do public reddit filing yesterday, and revealing its perspective on a surprising major stake holder you might have seen this the headlines. deidre bosa has that story for today's "tech check. >> -- none other than the it guy of the tech world, sam altman. they go back more than a decade, and they were surprising he has more than 9% of voting power. he has invested at least $60 million, starting back in 2024, and he was even ceo for just eight days it got us thig, what else has he invested in? it turns out that his empire is quite large and sprawling. investments, some of the darlings of private tech, including humane, cruise, and

asana. but in toldal, 125 companies that he's invested in since 2010 so his empire is wide. and his investment vehicles. there's also apollo project. altman capital and let's not forget that openai's venture capital fund is still in his name. that was only supposed to be temporary, but it's still in his name, which raises a lot of corporate governance questions, but so do a lot of his investments in ai. it's interesting too, in light of some other recent names that reddit is going to open its content to an openai competitor. so sprawling, wide web here. and it all seems to lead back to sam altman >> to close the loop there on the animals in reddit, we know the memes are big over there when it comes to a reddit ipo,

the environment has shifted dramatically over the past year since we first started talking about this meta is up snap, you know, one of the main social media competitors, is down are the prospects for a public reddit the same that they were a year ago >> you could argue that. it's been waiting in the wings so long. this is a company that's nearly 20 years old it's hard out there for social media companies, if you're not meta you mentioned snap, but next door, they had a leadership change just this morning sarah friar is out the founder is going back in this is a company that ipo'd back in 2021 for more than $4 billion. it's now worth less than a billion dollars. so we'll have to see how reddit does it was valued at $20 billion in 2021 a lot has changed between now and then it's so unprofitable it will be a test for the ipo market to see how investors

respond to an unprofitable company. >> something tells me better than they did a year and a half ago when all of a sudden people thought that profits were it but not so much. deidre bosa, thank you coming up, live nation shares nearing a 52-week high as the company posted record highs in attendance, ticket sales and sponsorships we'll speak to the ceo about the quarter and the year ahead plus, this weekend marks two years since the start of the ukraine war. we're going to take a deep dive into the geopolitical landscape, including today's sanctions and the state of defense spending. "the exchange" is back after this ♪ ♪ every day, businesses everywhere are asking: is it possible? with comcast business... it is. is it possible to help keep our online platform

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welcome back to "the exchange." shares of live nation are a hot ticket after posting record revenue in 2023, thanks to a

surge in concert sales in the fourth quarter but will live music continue to be a draw this year, with consumers under pressure from higher costs well, cnbc's julia joins us now with an interview with michael rapinoe, ceo of live nation. >> michael, thank you for joining me here today at your live nation headquarters, on the heels oh of a much better than expected top line beat, over a billion dollars higher revenue than expected. you had a strong year the year before was last year peak concerts? can you keep up this momentum? >> that's the question coming out of covid we think we're on a new decade-long run on a global basis. we're seeing the global demand we never saw before. for every 18 or 60-year-old in the world who wants to see drake and taylor swift so we're at the start of a new revolution and a global surge on

live music >> your revenue did beat expectations by far, but your operating losses at the concert division were larger than expected, operating income missed expectations. what was behind that >> we stepped back out of the corridor we had an incredible year. these are the days you dream of, up 30%, aoi, free cash flow. take 2019 and take the two year of covid out there, our business in '23 was on fire but we're also making sure we investor the future. we're doubling down on our venue strategy so we're absolutely making sure we deliver, but also investing in what we think is a bright future for venues. >> you did say this year there will be more of a focus on a amphi amphitheaters, arenas, what does that mean in terms of your topline and bottom line?

these are smaller venues, but how does that play out >> what we're proud about, we think we're going to deliver double digit aoi growth. calling that this early in the year is rare for us, but we wanted to make sure we stood strong given where we're coming off this base. in '24, we have 10, 12 stadium tours out there right now. more to add. but more arena tours, usher, justin timberlake. >> aoi is adjusted operating income, just to translate that for viewers. to put this in context, you have seen strong spending and obviously concert ticket sales are up by a meaningful percentage in the first six weeks of the year. are you at all concerned that consumer spending is going to tap out at some point? at one point are you going to see consumers facing economic pressures from other things or

even just the impact of inflation we have had in the past year, start to impact how much people are willing to spend? >> that's the question we have seen nothing yet i was in columbus, ohio two nights ago for a drake show. he's doing a college tour. it is sold out we did two nights in columbus, middle of america. all the merchandise was selling out. everyone was having a great time at the bar so we have seen no pullback. again, we remind people, the concert is still a very affordable experience compared to going on a travel trip or disney land or other expensive propositions it's an incredible escape. most tickets are still under $100 and the one indicator that shows the demand is still double what primary pricing is so the demand is still strong as ever we think it's the best place that a consumer can go for that value. >> so the other question is the department of justice. i understand that you can't comment on a doj anti-trust probe, but if the doj takes

action against live nation or ticketmaster, how could that impact your business, and how big of a potential risk is that for investors? >> yeah. we don't have a lot of comment, because they're really running the show we're cooperating fully. whenever they come out in the end, whatever they think that we have to look at, we don't think it's a big risk in the long run to our business. this is a very healthy company in many pieces >> just a final question on your capital investments. you've been talking about that on the earnings call when you talk about investing in the infrastructure, and investing in these different venues, what is that going to do for your business over the long-term? how could that change either margins or even through the consumer experience? >> our business is ultimately the more vertical we are on a global basis, the better for the margin so we -- kind of like netflix, make sure you're in all the shows, but the ones you own,

you're going to have a longer lifestyle of margin. so we think there's a huge international opportunity, not a lot of great arenas. so we think over the next ten years, you're going to see us accelerate international venue business will help our margin and drive our aoi to new heights >> certainly a lot to watch, as you head into another year of big concerts michael, thank you very much for talking with us today. >> thank you >> john, back to you >> thank you, julia, as well on deck, nvidia's recent rally pushing it past amazon to become the third most valuable company this the s&p we'll trade the chipmaker and some other ai names ahead in "three buys and a bail." we'll be right back.

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welcome back to "the exchange." this weekend marks two years since the start of the ukraine war. here are some stats to put things in perspective. 18% of ukrainian territory remains under russian control today, as a result of the ongoing war and the recent death of russian opposition leader alexei navalny, the biden administration is imposing more than 500 new sanctions against russia at the same time, $61 billion in american aid to ukraine is stalled in congress. joining us now to cover those angles are a former spokesperson for the traeeasury and the u.s. mission to the u.n and roman shizer is the defense analyst. eomon also joins me. it feels like things, over the past whhave been playing into

russian plans, it's been continuing to sell energy, putin has been killing off dissidents. how is this affecting the geopolitical decision from here? >> you have it right, but look at it from two angles. when you see russia crack down this way, you have had a number of -- you have alexei navalny's killing and the arrest of the u.s. russian resident who was in russia, who was arrested fo forgiving a donation to a ukrainian charity. there was a russian defector killed mysteriously in spain this points to a crackdown that is meant to instill fear in the russian citizens but is reflective of putin's insecurity on how he feels on his grip on power. at the same time, you have what's happening on the ground in ukraine, which is worrisome putin is watching the fact that you have this ukraine aid bill stuck in the house, because speaker johnson won't bring it to a vote on the house floor, even though a majority of

democrats and nearly half of republicans support it but when he's seeing that, he feels empowered. we already saw the effects of that play out when ukraine withdrew from the city of adifka last week. russia took control, and that portends concerns for how strong ukraine is on the ground >> we saw the administration saying a couple things today the president was talking about this one of the things is these sanctions are lowering russia's resources and increasing resistance of putin's ability to fight a war. but we're seeing them say, we're still going to do more this is not the end of what we can do and you wonder where the outer limit is for all this. it doesn't seem to stop putin's ability to wage war in ukraine, as you just laid out what about the ideas of going after russian sovereign funds that are frozen outside of russia now, confiscating those, giving those to the ukrainians

and what about vladamir putin's personal assets. we seem to be reluctant to go there. when is the time the united states will say, we have to do this >> let's go backwards. the first about vladamir putin putin himself was sanctioned by the united states individually on february 25th, 2022, the day after russia invaded ukraine any assets he has with the u.s. jurisdiction would be frozen, and u.s. persons, businesses and individuals are prohibited from doing business with him that unleashes market forces around the world. so banks and businesses around the world that are on the side of ukraine and the west in general, are not going to want to do business with him for that reason so you have that part. but the part that you're talking about, the $300 million in reserves at the federal reserve that are frozen, russia's reserves, this is a controversial move that theu.s is currently debating and congress is debating they're debating whether to seize those assets, and give them to ukraine for rebuilding

efforts and repatriation it's controversial, it's unprecedented, and it's controversial because it's never been done before, but also because it could risk country's faith of buying the u.s. dollar. that's a big source of strength for our currency, and if that strengthens our currency, that in turn strengthens our sanctions, as well so it's a controversial move i'm not sure where they will go with that, but i expect that decision making to go on for a while. and one final point, sanctions are meant to work over a long period of time every time you sanction a target, it's like a game of whack-a-mole they've sanctioned these enablelers in china and the uae that have helped russia receive technology and other goods to support their war machine in ukraine. to refurbish equipment and tanks

and things oh of that kind and so at the beginning, this was working. last year, because of u.s. and western sanctions, russia had lost 9,000 pieces of equipment but they did a work around they started receiving ammunition from iran and north korea. so this is meant to get at that, as well. >> thank you let's turn now to the latest round of sanctions announced by the biden administration today morgan brennan spoke with the commerce secretary earlier about their effectiveness. >> just today, we announced we're putting another 94 companies on the entity list, because we have found that they are still selling spare parts and technology to russia, so putin can conduct this unjust criminal war so is it working i would say yes. we have hundreds of companies that we at the commerce department have put on the list. we blocked them from selling technology and semiconductors

and spare parts to the russian military but it's -- this war must end. he must end this war, and until he does, we are going to wake up again tomorrow and ask ourselves what more can we do? >> you can catch the full interview today at 4:00 p.m. eastern time on my favorite show, "overtime. ted is back with us. i'm not convinced. i mean, putin just gave a car to north korea's kim jong-un, and something tells me that it's because he's happy with the way things are going in that relationship he seems to be working around sanctions pretty effectively, no >> yeah. i mean, the sanction evasion challenge is what we're facing so the sanctions highlight the names added to the list. the eu did 200 this week the names are from increasingly not just the russian population. so 26 entities outside of russia, anyone facilitating or

engaging in support. six chinese firms listed one in particular, dbecause they were shipping microelectronics from china to a sanctioned russian company. so the new ask on the banks and corporates are the ones at the front lines is not just to think about breaching and you've got to be thinking about are you inadvertently facilitating an invasion network that means looking at ownership structures, shell companies, that's been a big red flag we built some proprietary science to help people dig deeper into shell companies because of the risks of dealing with front companies potentially our link to sanctioned entities. there's a big, new dynamic, which is how you can protect against that risk and do due diligence. >> ted, i did a story this week

about apple's new vision pro products which is not available for sale outside the united states, but we discovered it is available for sale at apple resellers in moscow right now. and that's despite the fact that apple said it was pulling its sales out of rush ai to protest the ukraine invasion so these supply chains have a way of reinvigorating themselves, even if the company doesn't want them to i wonder your take how effective these sanctions are, and how symbolic they are. one of the team sanctioned today was the warden of the jail where alexei navalny was killed. how much of this is symbolic, and how much of this is actually effective? >> to your first question, i think that the multitier supply chain, the distribution challenge is a really real one it's very difficult to get deep dive information in realtime

into the kind of multitier distribution and end point that is something that everyone is looking for help with, and continuing to push forward that is a real challenge and we've seen the distribution that the designations today reflecting those distribution networks that the authorities in the u.s. and the eu are trying to crack down on the so-called si ed s ed sir cou hubs i think, yeah, as part of the sanctions regime, there will always be high profile designations, names that need to be on the list but i'm seeing more relevant names of those types of companies and networks that we need to be -- that needs to be tightened. so it is good in a direction that we're seeing those names being listed >> what's left in the bag after this round of sanctions, what

more can be done >> yeah, i think there's more names. what the u.s. is also doing with this sanctions regime is putting pressure on institutions to look more deeply into their current processes. the designations this week, the executive orders, they talked about having a new round of controls on those banks, not just the banks, but any secondary sanction, any company that wants to deal with the u.s. financial markets, thinking about the risk assessments, getting deeper into understanding their end of the trade finance flow again, it's very tricky to know who the good is, to asking all banks to reassess their risks. in the last couple of years, in the enforcement, cracking down on those ipo addresses, the digital foot print of your customer, you have to think about that in realtime

it's new frontier of sanctions >> hard to do. ted, thank you finally, the $61 billion aid package for ukraine stalled in congress let's turn now to roman shweisser. wars that seem endless tend to be good for the defense industry, no >> yeah, unfortunately that's the sad reality, and that's been the case for both u.s. and european companies as demand for munitions and missiles and vehicles have been really off the charts not just for ukraine, though also for related to asia and the middle east. so the brewing global conflicts have really increased a surge in demand that's been the challenge for the u.s. investor.

>> roman, i wobnder what the implication is a fascinating article in the new york tiles detailing how the war is giving details to the u.s. military the military has canceled two drone programs that were probably expensive, because those drones would not survive in the ukraine theater as it is now. so much of this ad hoc inventtiveness going on shows that you can do things that are more effective with drones and other devices than we have been doing with our enormously expensive, you know, person defense contractors. i wonder if there is a threat to american defense contractors from some of the innovation that we have seen going on, on the ukrainian side of the battlefield and some of the lessons learned about distributed warfare opposed to consolidated warfare on the battlefield. >> sure. obviously that's absolutely right. there's threat and both opportunity for sort of a

revolution across all sort of domains of warfare we're seeing that, but ukraine is being fought almost with 20th century tactics and 21st century technology but ultimately, a lot of this has come down to, you know, sort of trench lines and 155 millimeter ammunition, enabled by star link communications and first-person drones. so it a really a blend, and i don't think there's really going back but one thing i would caution is that there's a lot of lessons for learned, and a lot are going to be wrong and not apply to the next fight i think what eod and militaries around the world are trying to say, this is unique to the european theater and it may not apply to an endo pacific scenario regarding china and taiwan or perhaps what you see in the red sea with the houthis in yemen. so this is based on a unique set

of circumstance. clearly, there are macro l lessons. >> roman, some public companies, call them out that have skin in this game. boeing, we've been talking about it from a passenger plane perspective, but it also has some military contract issues that have been challenging for them on this cutting edge technology front and then there's other names in the drone space that have growth potential. what can you tell investors how they're fairing? >> yeah. so the one thing that's been unique over the group broadly over the last two years is you've seen an immense backlog certainly spending and refill related to ukraine u.s. foreign military sales are at a record pace so it's, again, a rising tide, as you mentioned unfortunately, this is a circumstance that benefits the industry but almost every company within the sector has a unique contract

or supply chain issue that has maybe hit profitability or performance on some of the bigger programs. so i really think investors right now are being super selective and discrete and maybe not some of the traditional defense heavy names like a lockheed and some of the more blended names like companies that have broader portfolios, like a boeing or general dynamics and then you have companies that play in the government services market and perhaps are providing ai solutions so really across the industry, i think people are sort of being more discrete as they look at individual issues. >> all right thank you, roman and thanks for riding shotgun with me. >> thanks, john. >> pun intended. coming up, with the nasdaq e reerforming today, we'll have ththe ai names to buy now. "the exchange" will be right back

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ubs cutting its price target to $8 ubs saying rivian's current profitability strategy is now quite onerous. also downgrading shares to underweight saying the guidance means no growth this year for the ev maker.quite onerous. jp morgan also -- to saying the disappointing guidance essentially means no growth this year for the -- maker. and coming up, a.i. stocks fueling -- the but our trade souring on the name, despite in your 25% rise in the past month. we are going to reveal it, next. ! 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. personalized financial advice from ameriprise can do more

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welcome back to the exchange. artificial intelligence has dominated the recent cycle, as investors are looking for ways to get involved. my next guest has three bias, one bail. join me now is gina sanchez, she is the chief market strategist at -- and. and a cnbc contributor. first up nvidia, the company surpassed two trillion dollars in market cap earlier today, sitting right about at that level now. shares climbing 10% this week, on the back of blowout earnings wednesday. but -- you say there's still room to run, why? >> oh, this is the stop that reignite the rally, and a lot of people think well, it's gone so far, how could it possibly keep going? but if you look at it's forward earnings right now, given the intensely strong demand they have seen, and they believe that they are going to be able to benefit from over the next

12 to 24 months, it's actually looking pretty cheap, compared to its competitors. you know, it's trading in the neighborhood of 30, 31 times broader needs. that's actually a feel for what it is offering, even compared to another name we really like, which is amd, gave weaker guidance. they are trading more like 50 times forward earnings. so, this semiconductor microchip -- is super important to the artificial intelligence machine learning efforts. because computational speed capacity is very important, and the smaller these chips, get the faster they get, the more computers will be able to learn. >> all right, let's move to a name that leads -- also in the mac seven, alphabet chairs up nearly 60% over the past year. google launching gemini business enterprise this, week in a move to raise a i revenues. but it would have to pause its a.i. image yesterday, after some issues with, let's call them

historically inaccuracies. so, did -- google catch up, in the a.i. race? is it too early even to call it behind? >> no, i think it's actually fair. there's still, there's still a strong competitor. if you look at the phase of data that they are sitting on, with their competitors, they will be able to learn more faster. look at what google has done for maps, what google has done just for the ability, i mean as far as natural language processing experts, this is an organization that has the core of their business. so, i do think that they will recover from this point well. and the fact that they are responsible enough to retrain their algorithms says something about the company, and its commitment to what it is trying to do. but we are actually not focused on its a.i. play, we are actually focused on the transmission play. when you look at artificial intelligence, it's not just about being able to compute, but it's about being able to reach vast sums of information that are elsewhere. so you can transmit. and most people think names like verizon and at&t. but in fact, google, along with other cloud providers, but

particularly google, is making big inroads into the 5g play. and that is also going to be a part of the google story. >> okay, the last buy is not in the max seven. ibm, one of the first large companies to develop a i, with its watson and deep blue developments, but that didn't hit at the time. gina, you say the stick with ibm here, despite it not participating in recent immoralities? >> well, ibm is a really traditional company, that is no more for its consulting, which is considered a low margin business. but if you look at its dna, watson was created at ibm, deep blue was created at ibm. and they had made a pivot in the company, to move into this cloud offering. and that service is going to push revenues. and if you look at the entry point of ibm relative to the rest of the cloud place, -- it is really attractive. >> okay. well finally, that brings us to

our bail. apparently in february, it's too cold for a lemonade stand. that was our mystery chart, boasting a.i. underwriting in the insurance onboarding process. but the company has seen some challenges on its path to profitability. gina, why are you bailing on lemonade? >> well, it's a couple of reasons. one you just mentioned, their path to profitability puts them at profitable, sometime in mid 2026. which is a lot of times you have to continue to take on debt, and to sort of manage its -- pricing, in what could be a potentially turbulent environment that we are heading into. we have so many tail risks that are out there, that unprofitable companies just simply don't have a lot to go, and they have an intense shortage risk against them. 30% of their free flow is right now in short interest. and that is a challenge. >> it is, even though insurance has been doing well. gina sanchez, thank you. and that's going to do it for the exchange. but i will see you on the other side of this quick break,. nurtec odt may help.

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