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sitting right about that two trillion. and that's bringing up an old problem for the, market how -- it >> are the markets to concentrate in just a small handful of stocks? -- joins me now, to tell us just how concerned we should be. bob? >> maybe not so much, john. how much should we really worry about this concentration risk? the top ten stocks in the s&p 500, which include the magnificent 7 -- it's now 33% of the value of the s&p 500. that is high, but it is not unprecedented. during the 1950s and 1960s, it was not unusual for the top ten stocks to make up 30% or more of the market cap of the s&p. in the 1970s, when the nifty 50 stocks, companies like ibm, polarized, xerox, american express were in vogue, the top ten holders jumped to more than 40% of the s&p 500. it jumped towards 30% again, at the end of the 19 90s, during the -- in -- france, and

germany have far higher concentrations in the top ten names then the u.s.. typically 40 to 50% or more in those countries. bottom line is this, the concentration is a characteristic of market cap weighted indexes, like the s&p 500. these indexes reward the winners, and they penalize the losers, by definition. so this concentration has been a boon to index investors, and to u.s. investors in general. for example, investors who own the s&p 500 in their top indexes, they don't have to pay the winners, they are just going along for the ride. and nvidia and microsoft have been winners second, u.s. stocks are global market leaders, and when a small group like the magnificent 7 become the market leaders, it almost always means the u.s. stock market outperforms the world. and that is exactly what has happened. the u.s. stock market was 40% of the global market -- a year, a year and a half ago, it is now over 50% of glow but mark -- u.s. investors john have

benefited from the a.i. bloom, and the innovation of u.s. technology companies. and i know john everyone says, what happens if they correct. nvidia corrected it was down 60% at one point, in 2022. who knows if it could get corrected again but this is a characteristic of these stocks. and you saw those numbers john, they were truly not mind boggling, those earnings. numbers >> oh yes, we sought up close in overtime for sure. bob -- thank you. so right now it seems only two things matter to the markets, maybe big tech and the fed. our next guest says while market reforms are concentrate on a handful of tech names, the focus should be on the competitive edge of a company, and it's sustainable. joining us now is karl farmer portfolio manager of -- trust carl happy friday. i hear you, at the same time i worry about, i remember when bond investors were caught upside when the feds started hiking so fast. everyone was surprised, where did this come from? couldn't the same thing happen inequities here? >> it's possible.

hey john, thanks for having me on today. certainly, the previous guest had mentioned -- this amazing corner and shows improving margins, strong demand, backlogs, stocks up over 60% here today. and -- market performance, all were concentrated in some of the tech names, responsible for over half of the year tier returns. there is some broadening out though, which is certainly helpful, in terms of health care and financials, up over 7% so far. so, there may be some worry. but i think the focus needs to be on, what is the company's competitive edge? and is it sustainable. certainly, nvidia had a wonderful print yesterday, and this all the top of the. to >> talk more about health care and financials. because normally, 7% would be wow, i pocket -- in a regular year for. equities but up against what we are seeing happening in tech, with nvidia driven by a.i., it looks small. so -- earlier this week i believe the, was they reported earnings, the diabetes business turning around. some of the gop one anxiety from last summer, easing.

of what is the potential, particularly in health care? >> no certainly. when you mentioned -- i think a lot of the medical -- are particularly coming out of the pandemic, where the voluntary and elective procedures were at a decline, because certainly you couldn't see anyone. when you had more of a rebound in an area, all the sudden you need to get supply and demand, and we are back in. len and you are starting to see some better things from health care moving forward. and you should see -- that and you have certainly see it on the farmer side is. well >> can we finally stop worrying about the health of the consumer. we just had the live nation ceo on last hour, talking about just how strong the appetite for concerts, and going out continues to be. it's not just about taylor swift and beyond, say it's about a lot more than that. but at the same time, prices remain stubbornly high. and there is a concern out there about how long this continues. should we stop worrying? >> i don't know if we should stop worrying, i think it is always a concern. you mentioned the fed just a

minute ago. when we first started the year, i think the thought was that the feds potential -- of only cutting three times might be a little bit conservative. they might cut us about six times, to give us more than 4%. i think now, there is the belief that given the inflation -- like you say, costs aren't coming down maybe as quickly as thought a couple of months ago, kind of staying between three and 4%. and consumers have been very resilient. i think the feds are less likely to try to cut, until maybe you start seeing a little bit more weakness. i think with the pause where they, are until you see data saying otherwise. >> okay, like alphabet, pepsi, index tara, we had a guest just a few minutes ago making the case for alphabet. so i want to leave that one out. tell me about pepsi and next step. >> no, absolutely. so as far as pepsi goes, again, a non tech name. -- like snack loops, you mentioned the consumer, very resilient. pepsi is basically trading in a market multiple, it's a less cyclical business. and it's actually growing faster overseas. it's over 40% -- for investors

-- we certainly still like snack foods and soda. >> and dexterity? >> well decks tara, so this is -- a name people haven't heard from as much, it's one of the largest power fruit. -- it's kind of -- a third of the revenues are renewable resources. and the sell-off has provided a very attractive evaluation for investors to get in. and also right, now they are trading around 3.6% dividend yield. and they have committed to raising that 10%, year over the next couple of years. and we kind of like that as a utility, but also planning the future. >> all right, some interesting ideas. carl, thank you. carl former, -- trust. and now, let's tackle the big week for tech. the nasdaq, slipping lower today, but still positive for the week. the huge gains from -- and it's. cousins but how much longer can it's a.i. -- are next guest thinks the a.i. space is going to continue to grow, but questions whether nvidia will continue to grow at

the rate it has so far. daniel newman, ceo of -- the dan, good to see you? so first of all, why questioning nvidia? >> hey john. well in 2020, i said this will be the next trillion dollar market company. and in -- when the stock was trading around 170, i was on cnbc and said this is the time to get behind. i always worry when you get too much momentum, when you have the entire bandwagon just, everyone running to pylon. that's the more you have to start to say, can this continue? and this week in tech john, there were some inflections that took place. we heard pat gals anger and -- at an intel event -- joined him, talking about making networking trips, because they want to reduce the reliance on nvidia. you are seeing all of its major partners in ecosystem -- cloud providers, google, microsoft, amazon, oracle -- with. they are all looking to make their own chips. and so, nvidia has had this no

headwind run, and it's done incredibly well. but for the first time, competition is coming. and i didn't even mention amd, but at least -- pointed out. two >> yeah, well meanwhile there is a lot of money continuing to flow into this space. and as an example of what's driving a i demand, a bridge is a start-up that is doing a.i. for clinical documentation. so doctors can focus on conversations with patients. and if the ad can be no taking, follow up in the back. i spoke to doctor shovel, whose founder and ceo of a bridge. about 100 and $50 million series see, he is announcing today. and three places that money is going. >> one is proprietary data sets, that we can use to train -- but then compute, that's the other piece of this. and then finally, it's about world class people. and so, those are the three major important puzzle pieces that we are putting together with this new fund raising. >> one of those pieces is compute. and the others are getting ready to have products to sell. nvidia is selling the right,

now and not just one start up with, i'm not saying they are spending all of that hundred 50 million right now. but a big chunk of it is going towards. compute >> with yeah, the case is very strong for. nvidia and i guess when i say there is a bit of a risk or contrarian view, it's the speed at which it's grown, and the lack of competition, and how much that's driven this price up. i feel like there is a desire across the ecosystem to see more competition. i think microsoft and -- making big bets on -- silicon, are just a couple of the four instances. but, it's the pylon that concerns me. like i said in 22 when it was at one 70, people were like oh, this could go to what, below 100? and i was like no, absolutely not. a.i. is going to be a massive tailwind, and this whole industry is going to grow. but people, john, they want this huge growth right. you are talking 265% plus in revenue growth, 400% plus in a p.s. growth. that's eye watering. and, so when that number slows, i have a comparison for a few

years ago with zoom. now -- it will grow faster and it is more sustainable. but you have the biggest companies in the, world and i didn't even mention apple. they are all entering this space in different capacities. and they are going to see, there is going to be a catch-up trait. and there is going to be some other companies that have to grow, it can't all go to one company, it is just not good for the innovation or for the competitive landscape. >> they are expecting that in the next wave of front is gonna come from pplication companies, and your sales forces, microsoft still fits in that arena. the service now is one that has been pushing pretty hard, adobe, t cetera. who do you like in that setting? >> yeah, you actually named a few of the ones i really like. i'm a big fan of service now, i think what they are doing for productivity and efficiency is going to be really important. you know, microsoft across the applications landscaping, the business is just so well diversified. and of course salesforce on -- the you didn't mention one that i think has done really well, which is oracle.

and oracle is really, really sticky. and it has made big investments in a.i.. and it is not something that companies can turn over. i mean, s.a.p. has some of those similar characteristics. all of those companies are looking at net revenue span, by making a part of their story. and by the way, a lot of it will be built on nvidia. but is going to be built on other architectures as well. these companies are going to be looking to get involved in the profitability. nvidia is taking 80, 85% of the -- right now on most of these a.i. projects. and these bigger companies will have to find a way to make money, and that is part of the reason i like some of these other companies getting involved in the chips as. well >> i'm also curious about some of these smaller industry specific a.i. driven plays, like your sense of, like you're -- dual. we will talk more about all of that dan, on the other side of this break. -- after the break, read it is going public, with some investors. as well as some well known -- behind it, so how big a moment

is this for wall street? plus, it's a troubling time for the media space. -- companies are fighting for every bit of ground, content, consumers, partnership. some are doingetr btethan others. -- a bullfight, further ahead. -- we will be right back. we just got an order from dinosaur, cado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com (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.

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a rent revolution might be hitting wall street. but it won't be like last. time the social platform that served as the backdrop of market rebellion is now going public. -- has the details. >> it well john, read it's fs1 revealing that it's looking to list the new york stock exchange under the ticker r d d t. it had 804 -- annual sales for 2023, that is up 20% from the 667 million it reported the prior year. the company's net loss of last year was 91 million, that is smaller than the hundred and 59

million dollar net loss in 2022. though read its average revenue per user decline over the past year to $3.42, but the company announced it has 73 million daily active unique users, and 267 and a half million weekly active. so now, the company is working to involve its community in its ipo, it's reserved approximately 1.3 million shares of class a common stock, to find what they are calling community related programs. and it's not employed moderators, they are called writers, will be able to participate in the ipo, through the companies directed share program. you know in the s one, the company explains the value in its primary revenue stream, which is advertising. saying that its users see reddit as a trustworthy place to inform their purchase decisions. the company also saying it has an emerging business and data licensing, and a future business around the user economy, including some e- commerce. now in terms of red it's ownership, a i, open a.i.

ceo sam altman owns a 0.7% of the company, making him the third largest shareholder behind the new house families advance, which owns a third of the company, and chinese tech giant tencent, which owns 11% of reddit. now among its risk factors, reddit warns that it's high brand recognition with retail investors, and its own subreddit, wall street bets, which drove up gamestop, could actually cost what it's calling extreme volatility, for reasons unrelated to its underlying business. so, one of its own subreddits is part of the risk there, john. >> yeah, the call is coming from inside the house perhaps. julia, stick around. for more on reddit's rise, and the companies, future let's bring -- back ceo -- . here's what i don't get about reddit, right. it seems to be doing fine. but in a world where meta has surged again, we're snap has been having its difficulties, and power seems to be accruing

to those already big, is there a case that red it is going to somehow embed itself in either the commerce or advertising fabric of the internet, the way meta did, the way alphabet did? or is it just going to stay a fine little business? because that is going to matter to a kind of hope will be put on this? >> yeah john, i am actually a little bit puzzled about this whole deal. you have a company that is losing money. now, this is maybe indicative that we are pivoting from the era where we were really turned companies focus on operating on profitability back to growth. but we also have a company that does have some very in-depth data. and the depth of the data, the commitment of its engaged community, it could be really invaluable in the era of large language models and a.i.. and do we have these kind of very light transactional interactions that take place and other social interactions. you are talking here rich insights, and you are talking a lot about wall street. that's the amount of time that these folks spent learning in

their communities, and putting knowledge back into the communities. could this be somehow bundled and monetized? that's what i'm really wondering. and then the other part is the api. they have the connection with google, it's how do you take the api off all of the state, and then make unusable across these other llms? and of course sam altman's involvement, where he helped take this thing? >> yeah and julia, at the same time with all of that data on wall street bets and other places, a lot of runners made some really dumb trades. >> you know us as a lot of data, governments, and they are not necessarily nimble or worth a lot of money in the public market. so, is there an argument out there that you've heard, about why reddit is going to be the next google? that investors should know about? >> well, i would say the main comparison to google is that reddit says that it has this huge untapped opportunity when it comes to search. but i don't think that reddit is saying it is going to be the next google. i mean, date they did say that the addressable market for advertising is right now about a trillion dollars. but the question about who is going to be able to take a

meaningful share of that. i mean right, now there is a digital duopoly in advertising, the digital advertising market, that is google and meta. the third player, amazon, is growing incredibly decree, -- quickly -- i think that this business has a potential to be able to use that data on the platform, to better target ads, and be able to use a.i. to better target ads. they talk a lot about the opportunity in search. and to really leverage that there. but i don't think this is talking about becoming the next. google this is talking about becoming something a lot more personalized and intimate. with perhaps a lot of opportunity even around e- commerce. but not at the scale of a. google >> so maybe the next pinterest, today on? >> yeah i think they have to go down that route, john. i can't see a situation in which they are going to get the growth and the scale. they are coming on a slow, mid double digit growth rate, which is okay. but again, they are sub one billion in revenue. and then of course they are coming in with losses on the bottom. line the market turning, yes. the high quality data,

definitely interesting for advertisers. but the growth, i just don't know who is going to be there, besides its own community. and we have seen how that's worked out with robinhood and others, it doesn't always work out well. i just don't like it that. much >> juliette, maybe a heck of an opportunity for a pivot? i mean it is a well-known brand, they have a decent amount of revenue. a.i. is the future, i imagine there are some things out there that they could buy. i mean i'm trying to put a smiley face on this, after my skeptical line of questioning. >> look, i think there is a huge opportunity here, because they are community is so very much engaged. and so the question is, is that opportunity around e-commerce, which is something they say is a potential down the? line or is it what they say the more near term opportunity, which is in selling and licensing their data to these large language models? so i think that a.i. is going to be a big piece of it. whether it is using a.i. to improve the app business, or leveraging their data to

improve other companies a.i. models. but there is no denying that this is a very committed, perhaps even addicted community to these subreddits. >> well you know, maybe they can use their stock as a currency and by gamestop, or anc? >> julia, dan, thank you. further ahead, equity and opportunity in health care. the push to make expensive -- drugs more accessible. when we come back. 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. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000

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welcome back to. -- major industries are taking a breather after yesterday's rally. but bond, years -- they are higher once -- again our from the training floor in chicago. rick? >> you know john, it's been a wild week. nvidia, the whole tech rally, magnificent 7, the great eight. however you want to look at the world, look at stocks, look at the dow, look at the snp. for two weeks, it's a rocketship. everybody's portfolio should look that good. and what if twos intends done? well yesterday, it's their highest yield close of the year. as a matter the fact, two and a half months for twos, three months for tens. now, we see that tenure yields are -- down to yields are up, curves most inverted since the end of december.

how do we interpret all of? that while i know how we could interpret, it become over here and talk touchi■ shea, how is it going? >> good, how about yourself? >> all right, it's been a wild week. it looks like the nasdaq is slipping just a little bit. s&p, tao, jones on pace for another all-time record high close. how could all of the speed going on, after only inflation day last week? >> you certainly got that right rick. i think what investors here we're looking for, they found yesterday, invidious earnings. so that they are looking to see if companies could remain successful, and through this business climate. >> now, there's -- recession. you look at the papers, when i used to say there may be a recession, or think there will be, and there wasn't, that was called a mistake. nowadays, the big communities and dealers are really evaluating. they see the recession much lower probability. but they still see the fed tightening. excuse me, easy, not happening in the first in march maybe, all the way back into. your thoughts -- >> what we saw last week in the cpi -- was a little bit higher than expected. so they pushed that great count

back from march to mid year. and i think what they are going to see is that it's going to depend on the next two weeks, where data comes, and how the fed reacts to that data. as far as i know, they -- s&p 500. >> and you bring up a great point, they should be watching the s&p 500 with the dow jones industrial average. but we all know a must have some type of an effect on them, especially after the resurgence of last week's inflation. do you think those numbers for january -- were a one-off? >> i don't know if they were a one-off. but we have seen options in marketplaces, there's a renewed interest in upside versus downside protection. so we are waiting to see in the next couple of weeks, to see if that was a one-off, or if it was a sign of something to come. >> icy. and of course, we all know in the beginning of march, not that far away, we got our first major employment report. then we have been whispering that claims might be lower, because certain states have been getting estimated readings. is there any talk that some of these numbers that we all put so much credence in, might not be as a representative of

strength as we think they? are >> you might be right, rick. i'm not sure about that, but we are waiting to see how -- it all says on march 6th. so where wait to see what he has to, say and talk about -- new data coming. all >> right, and that of course is the week of the jobs report. i want to thank you for joining me today. >> thanks for having me rick, i appreciate it. >> john forbes, back to you, and have a great weekend. >> all right rick, interesting move to upside protection. we will watch that. now, let's get -- to for cnbc news update. >> john, university of georgia officials say a person of interest is facing questioning, after a nursing student was found dead thursday on campus. police discovered the young woman's body, after a friend called in, concerned she had not come back yet from a run. you j.a. cancel classes today, as authorities investigate. police say they suspect foul play. more than a dozen people are still missing today, after a large fire broke out at an apartment block in the spanish city of valencia. it killed at least ten people. the cause of the fire is not clear, but some experts say

it's likely spread quickly from a combination of strong winds, and the plastic materials used in the building inside. and the nfl announced a record breaking salary cap today for 2024. it now stands at 200 and $55 million per team. more than 30 million dollar jump in the last year. the league says the unprecedented increase is partially from the big jump in media revenue for the season. no war, -- and whether it's going to be enough to help the philadelphia eagles next. >> [laughter] my cousin ed will be worried about that. thank you. >> you bet. >> we are reporting big -- warning of cash flow headwinds in the year ahead. after the break. it's odd how in an instant

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hello dad, hello dad, hello da. uh-oh. good bunnies. ahh! it has been a tough few years for media stocks. -- cutting costs, to tech competition. shares at disney are down nearly 40% since 2020. one while shares -- of warner bros. discovery, are down nearly 80, percent including a 10% -- drop

today. so, which falling knife you want to? catch in which one do you want -- our next guest disagree, which means it's time for a bullfight. -- has a -- disney that says it's too early to get into warner brothers. while -- doug -- says opportunity n wbtv, but was more cautious on disney. laura, perhaps my fall in life joke wasn't fair to disney. it is up 19% year to date, but -- why do you like it here? >> i really, we just recently upgraded the wall disney company, after five years -- we went to buy recently, right on the earnings. actually i really like what bob iger is due. now i like that the espn joint venture a lot, i like the fact he keeps having cost cutting more and more and more so, he is going to succeed his seven point million cost cutting. we have a new chief financial officer there, from amazon. that empire really comes in pre- cash flow growth as a primary metric, so think we are going to get over delivery of profitability and pre-cash flow

growth. and you've got the parks. so whereas warner bros. a sort of pure play, the melting ice cube of -- in disney, half of their revenue comes from parks. so you are sort of hedged, one can be working in one canopy. you don't have all your eggs in one basket. okay so, doug give me the best case scenario and wbtv? >> yeah so, i can give you a -- one a and one b, in terms of how to address content libraries the best. content creation engines. warner has -- been but, disney's two x -- and i think even if you were to say part of the businesses worth the -- i think disney's content is still selling at a premium to warner. 's warner has said that they're gonna get their -- billion dollars next year, they are the only major company to put out tc earnings target of more to break even. and i think that speaks to the

strength of their product. they are also in the middle of leveraging. and as they do you leverage the balance sheet, the value increases very frequently. >> okay laura. so, what if i tried to make this a bear fight, in a way? because sometimes the answer is neither. there is a reason why nelson -- is on bob iger's case right now. and in a way, disney has got to compete with some deep, deep pockets in apple, amazon, alphabet distribution, that it didn't have to compete with before. what's going to be the first clear sign that this -- turnaround is going to be working? >> so, the key word, because i agree 100% with you, it is very hard to compete with apple and amazon and alphabet. but they are distribution. and what you have here at disney's world class ip, and world class storytelling. so, that's what you have to see. and both of these companies, they are core business is making content. my opinion is, warner brothers

is unproven under current management. because a lot of people left from the traditional under at&t ownership. but at disney, you sort of have the same crew, although we saw tiger's back. and he really is a content guy. so if you had to bet on one guy making great content over the next two years, with ten billion dollars spent on content, excluding sports, i think you would bet on the walt disney company, with its marvel and star wars franchises, and you wouldn't really bet as much on warner until the discovery guys can prove they can do the big budget films. so far, they are really hit and miss. >> well, i might personally bet on comcast. but that's because i work for cnbc, which is owned by comcast. i will throw that in there. doug, tell me about why you think this management team at warner brothers is up to this task? how much depends on how much they're willing to spend on direct to consumer, which might just be lighting money on fire? >> well, the lighting money on fire happened under at&t. and -- put it stop to that

pretty quickly. you know, they are still willing to take big swings on big project. they've got do -- coming out next weekend. it's got a 90% positive on rotten tomatoes. and clearly hit the mark on quality. there you know, laura alluded to the fact that uygur is a proven commodity. but he's also going to be out of there into, years if they stick to their plan. >> what do you think they'll stick to their plan on i gore leaving, doug? >> well, they've been trying to replace him for ten, years haven't found the right person yet. so, it is a pretty big question. mark >> -- hired james gun, and peter -- to run warner, to run the d.c.. that's an asset that had a massively under and -- compared to what it's been able to do with. marble and i think that was a bit of an inspired higher, james gun really knows the, content loves the content, and himself is a very prudent producer. so i do think that the d.c. part of the business, which really underperformed in 2023, is going to get a lot better starting in 25.

>> all, right i know this is a bullfight on these two stocks. but laura, i'm going to put you on the spot. what's your other bullet, pick if not disney? >> if not disney, so i cover, i cover all of the big caps. so right now, i'm very high -- on as nvidia is proven to us. so i really like amazon this year. i really like alphabet this year, because the data is the future. oh and in media. in media, so sorry. yes, so we have a bye on paramount, because we think it is going to get taken over. but that is the only reason -- . and specifically, he got asked today -- >> on the warner brothers call, are you looking at acquisitions? and of course, they were referring to paramount. he said look, we are talking to everybody, but we have a really high. barr it's my opinion that paramount is cheap enough, and -- at warner bros. needs cbs, which is a broadcaster, in order to maximize his negotiating leverage with comcast and charter. so i think he needs to buy paramount, i think it hits those hurdles. he can't move until after

april, without, otherwise he risked his task -- so after april, i think it is going to get ladder. >> doug, i want to ask you to, but we ran out of time, you can give it to us in one word, if you have a secondary pick. >> sorry. >> sony, suddenly it is. well -- doug crew, thank you. still ahead, equity and opportunity in health care, the new sickle cell drugs could cure a lot of patients impacted by the debilitating disease. but getting the cost down is going to be the biggest hurdle. -- it's going to give us the details, when it returns. businesses go further with 5g solutions. that's why they choose t-mobile for business. pga of america and t-mobile are partnering on 5g-powered analytics to help improve player performance. t-mobile's network helps aaa stay connected nationwide... to get their members back on the road.

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constant contact delivers all the tools you need to help your business grow. get started today at constantcontact.com constant contact. helping the small stand tall. welcome back to power line. let's not take a look at it is ease that in this country, disproportionately affects african americans, sickle cell anemia. new treatments offer hope -- looks at the challenge of providing access at high cost. >> for michael goodwin, crippling painfully sickle cell disease makes life unpredictable. >> i could be in the hospital,

a few days of the month, sometimes. which hurts me, because i have a son now. >> still, he is leery of new gene therapies, which required months of intensive -- and then there is the cost. vertex -- lists for over 2 million. bluebird bio -- 's for over 3 million. >> i do have insurance, but those, i mean i already have medical bills. >> good wins hesitancy doesn't surprise dr. julie kanter, director of the adult sickle cell center at the university of alabama and birmingham. >> my guess is that even if we opened the gates today to everyone getting its -- . at most, only 10% of those individuals affected by sickle cell would want this therapy. and, even that will be too much for us to manage right the second. >> more than 100,000 americans have sickle cell disease, according to the cdc, with 50 to 60% of them covered by medicaid. doctor kanter says it will take time to wrap up capacity to

treat patients at scale. in the meantime, states are grappling with how to ramp up access, for those on medicaid. >> the immediate consideration is the cost. it is very high, and state budgets simply cannot manage that on their own. >> the biden administration is launching negotiations with -- and vertex for medicate planned discounts with payments tied to health outcomes. for michael goodwin, the outcome is key. >> if they could guarantee me the outcome that i wouldn't have sickle cell, i would do it in a heartbeat. >> michael goodwin's back in the hospital today, dealing with his disease. and researchers hesitate to call this treatment a cure, but during vertex's recent earnings, call the coo said they have already signed outcome based agreements with individual medicaid plans, and they are working on with commercial players. and they are confident, because so few people, he says failed to respond. both vertex and bluebird anticipate starting treatments for their very first patients

in the coming weeks, john. >> so is a matter of if it works, then it's worth it? >> it's, it's really a matter of paying it all at once. researchers at the university of washington say if you look at the cost, it under $2 million, which is part probably would be under negotiations. if you look at the long term. costs in the lifetime costs, it balances out and it's worth it. but you pay that over a few, years so hundred thousand dollars a year. and at this point, no one's talking about a netflix model. but, that is one of the things that people are starting to look at longer term for these breakthrough gene therapies. and a lot of them are coming down the pike. >> yeah -- thank you for that important reporting. coming up, putting the gas on car, -- shares of the online -- are up to 41%, after the company reported's first ever annual profit on -- lunch traders, to tell us how he is planning that move -- and a few others, next. and during february, we are

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and creepy ads that follow youa from google and other companie. and there's no catch. it's fre. we make money from ads, but they don't follow you aroud join the millions of people taking back their privacy by downloading duckduckgo on all your devices today. time for today's three stock lunch. today we are looking at three stocks with huge gains over the last 52 weeks. here with our trades is bayern battling, president of mjp wealth advisors. up first his carvana. shares there are up nearly seven x in the past. year stocks soaring about 33% today after posting its first ever annual profit. brian, this stop was $360.02 and a half years ago. can you buy here? >> well, john, i think with the

pop we are seeing today it is a stock that i would say you might want to consider selling on the news, just because the and through the awesome for the stock because it posted its first annual profit but when we think about carvana, like he said the volatility in the price, it is because it's so tied to the cyclical nature of what is going on in the economy. considering we are still in a high interest rate environment, there are some questions about the consumer moving forward, i think this is one we will traditionally sell on the news here. >> okay. up next, speaking of volatility, super micro. shares of this up more than nine x in the last year. as part of the a.i. chip excitement driven by nvidia. brian, what do you trade on super micro? >> super micro, look, from the long term point of view this a.i. trend is gonna play out over 5 to 7 years, i think. super micro is unique. it fits in the space where it is hiring those i and servers, focusing on that a.i.

structure. with the run we have seen on the stock, knowing the demand for those gpu servers could come at a question over the bounds of the year, sorry to disappoint, john, i think a method to throughout a cell on this one, as well. i just like to get a little bit more information about super micro and where it is positioned moving forward. especially considered it is trying to add in a cooling system to those servers which still hasn't taken hold in the numbers. >> yeah, the move looks crazy but look at the market cap. still under 50 billion, right? we >> know, i agree. look, it is a perspective evaluation, john. thinking about those growth potential moving forward. i'm not discounting that there is not going to be growth in the technology space coming from a.i., in a company like super micro. the company that you've been talking about with some of your guests and even on some of your other commentary, competition could be heating up of the bounds of the year. if that demand waves, that could affect the stock. what i'm trying to say is short

term, take some profits. longer term, keep an eye out. there might be an opportunity to buy on the dip. >> all right from a.i. to a. shares of abercrombie & fitch of nearly 320% in the last year thanks to re-branding efforts. brian, what is your trade on abercrombie? >> well, abercrombie is one of those stocks, outside of the magnificent 7, which is actually a performing compared to nvidia, believe it or not. this is a company that has actually provided some durability in what they've been doing in running their business. yes, they are in the retail space insensitive to consumer demand but when you think about some of the announcement that they made earlier in the year, earnings are upcoming, they have been really focused on controlling their inventory, improving profits, and their cash flows. for those reasons in a place where their product seemed to be in demand for their consumers, this is one i think it is worth taking a flyer on and a buy as we head into earnings early next month. >> one of the three get the

nod. brian vendig, thank you. >> thank you, john. >> still ahead, what the big tech and energy having common? well, not a whole lot but there is one factor that the two sector share. our pip evens is gonna tell us what it is next. you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! 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.

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when you look at returns relative to market cap big energy actually tops big tech. exons distribution stands at 7.9% of its market cap whichever on a 9%. that compares to elbow and alphabet's 3.5%. now across the s&p 500 the energy sector has the highest overall yield followed by utilities and real estate and within the energy sector itself upstream payers are the largest pairs with marathon il and glutaric coming out on top. while we are talking about market cap, get. this microsoft, apple, nvidia, amazon, and alphabet are all each individually logical than the entire s&p energy sector. that is an astounding stat. >> it is. and you bring up the issue that you said. dividend yields, right? it has become complicated, has an? it energy stocks as you've had interest rates overall rise it's not as if investors have to go to dividend payers in order to get that yield. they can go to treasury.

>> exactly. especially when there is so much excitement in other areas of the market. if you look at the energy sector it is much less of a growth profile. it is not attracting that same level of interest. one thing we have heard from companies this round of earnings as they are really committed to shareholder returns. it is no longer drill, baby, drill. they are solid but looking forward if you do want income. >> i do wonder if at some point though these begin to converge? in part because of the relationship i kind of jokingly a knowledge of the top. big tech consumes a lot of energy. this a.i. revolution we've been talking about, especially there is so much data being crunched, the a.i. chips run so hot, at least in the near term there is going to be a lot of energy consumption trying to figure how to make that more efficient. >> i mean i was joking when i said they only have one thing in common. in reality, these energy companies harness so much data. as you said, think about even their subsurface knowledge. they are constantly looking at all of these different data points and harnessing a lot of

intelligence easing the fastest in newest ecology. there is more than meets the eye where they overlap. >> that is very interesting. we should explore. that energy exploration is often one of the top uses for big data. at the same time, you need the energy to feed these models. food for thought. thank you, pippa. thank you for watching power lunch. i will see you in about an hour. first it's scott walker and closing bell. all right john, thanks. i'm scott walker here at the new york stock exchange. this make a break hour begins with a run on the stocks. why tom lee says there is a lot of gas left in the tank for this rally. he is going to join us in just a few to make that case for you. in the meantime, your scorecard with 60 minutes to go in regulation looks like this. we are watching the nasdaq over this final stretch. it is trying, today, to make a new closing high. a little work to do. as you have seen with the nasdaq, things can happen in a hurry! 16,057 and change is the magic number there. seems like there is a new high for nvidia every d