>> pacific gas and electric. a little defensive play if we're all talking about corrections. >> liz? >> commodity etf that has 50% in treasuries, so you get both sides. >> jim snmplt >> nvidia is finally comfortable with prices above $925. >> that's going to do it for us. "the exchange" starts right now. ♪ ♪ thank you very much. welcome to "the exchange." i'm tyler mathisen in for kelly evans. here's what's ahead. not a bubble but bubbling. that's how one of our guests describes today's market. but that doesn't mean you can't still find sof bargains. he's looking for them. plus, shares of tesla down more than 30% this year. should you by the dip or steer clear as the ev winter continues? and elizabeth warren once again goes after the company. it's been a big week for the builder stocks, but our analyst brings a surprise name not in that sector he calls a stealth

housing play. we begin with today's markets and dom chu with the numbers. >> it's a little mixed but modestly so after coming off record days for all the indexes earlier this week, especially just yesterday in that surge we saw this the markets. the dow down about 182 points, off one half of 1%, relatively flat for the s&p 500. it's currently hitting at 5238, down about three points. at the highs, we we are only up about three points. so, again, a pullback from those record high levels. again, modestly so at this point. the nasdaq, the tech heavier index, 16,435. outperforming up 33 points. that's up about one quarter of 1%. the reason why we want to highlight that nasdaq trade is because it has been a stellar one. all three major indexes are up roughly 2.25% overall. the sectors leading the way higher are communication services and technology, that magnificent seven trade.

alongside stindustrials. the underperformer has been on the interest rate sensitive side. real estate down 1% over the last week. but the stock a lot of focus has been on has been a tale of two different narratives in just the last week. for apple, we started off on a fairly positive note. bloomberg said it would be teaming up with google to offer alphabet ai on future iphones. that gave a boost. and then the department of justice came out with their anti-trust suit against them, taking it down. remember, yesterday's session, when we were down big, shaved about $113 billion of market cap off of apple in one day. we like to give you perspective. $113 billion is like shaving roughly the entire market cap of boeing off of apple's market cap in just one day alone.

back over to you. >> gives you a sense of scale. with the major averages on a winning streak and dow 40,000 on the horizon, should investors pop the bubbly or worry about the market being too bubbly? my next guest says we will see dow 100,000, and he's been around for a few market milestones like this one. dow 10-k in march -- look at that youthful man there, he hasn't aged a day. let's bring in michael farr with michael cugino. a pair of michaels today. you say that the market is bubbly but not in a bubble. what's the distinction there? >> bubble is one of those runaway things, tyler, and if you forget the names of the guest today, you're in real trouble with the two michaels. so we've seen elevation, and

have we really gotten to the point where we are seeing a bubble form in ai? every time we have seen these bubbles, we have had a lot of leverage in the market. counter to the idea there's $7 trillion in money market right now. so we're looking for leverage. prices feel inflated, but they don't feel ridiculous. everybody is not on the sim side of the bullish boat. that's always another bad sign. so we're moving that way but not quite yet. a reason to be worried but not overly so. >> how do you see it, not ridiculous but fully priced, where are you on that spectrum? >> not only do we have the same name, but we probably have a similar viewpoint. certainly stocks are elevated, but not unnecessarily so, given the macro story. the fed is likely done, they just came out saying they're probably going to cut. corporate earnings have held up. there's a lot of liquidity on the sidelines, people are working on spending of the it's

hard to see a thenegative. it's almost a perfect storm for equities to bleed up right now. there are some headwinds out there, but the impact of those are being way overweighted by the positives at the moment. >> so michael, you say that we'll probably pierce 40,000 at some point, probably have a correction at some point, a pullback. and eventually, motor forward up to $100,000. i want you to give me the date and time we'll be at 100,000. >> i mean, it's in your in-box, tyler. just take a look for that. you know, when you take a look at where we are, this is -- the rule is 72 and compounding. if the market doubles every 10, 15 years from now, we ought to be at 100,000. that's it. that's just the math, if we do 7%, 7.5% return on the dow jones industrial average. so i think, you know, 40,000 is on the way here, clearly not -- it doesn't look like it's going

to happen today. next week would not be a surprise. it's not going to be that important in terms of the percentage changing your portfolio, but it's really important in that it is a great vindication and endorsement of the american economy of capitalism in general, that this is the place that is the shining city on the hill where capital formation can happen, where property laws and contract laws are regarded and respected, and the american dream happens here. every time we hit one of these levels, we all ought to put flags in front of our houses and celebrate. this is why you watch cnbc. you understand that really the heart of america and our economy and economic growth is what keeps the american dream alive. cnbc covers it every day. >> michael kagino, i remember as probably you do, when the dow was at 1,000, not anywhere near 40,000. that sounded like hysteria. are you smoking crack here? what do you say in terms of how i ought to position my

portfolio? i know you're a big believer in diversification and diversifying beyond merely stocks and bonds. >> yeah. i mean, i also remember dow 36,000 when it was somewhere in the teens. so we'll continue to trend up over the years, but who knows how long that takes? it's a psychological factor, too. amen with what michael is saying. but in terms of how you want to position a portfolio, there are other asset classes that people need to be considering in terms of a broader comprehensive definition of wealth. that would include bonds, u.s. and non-u.s. security stocks and bonds, it would include commodities, real estate, precious metals, et cetera. all of these things impact the economy at some level. a properly diversified investor need some offsets through a portfolio, at least for a portion of their capital. we would advocate, even if you feel very strongly about the

stock market, there likely will be corrections or pullbacks. there could be a period where it doesn't do much, or given your liquidity needs or age, you may need more balance or diversification, less volatility. but still getting a return. so we would advocate diversification, as well. >> let me finish with you, michael farr, if i might. you say that time and not timing is what generates wealth in the equity markets. i couldn't agree more. that's the lesson you were just pointing to there. but timing does matter, doesn't it? at least at the margins, because when you buy and when you sell, if you sell, is what determines your ultimate return? >> no question, tyler. so having a discipline is really, really important. remembering the other fundamental rule, which is by low, sell high. when markets are making new all-time highs, you have to be careful about your buying, and you have to be even more careful

about your owning. complacency is the greatest risk now. we haven't really had a bear market in quite a while. we did have a blip at the beginning of covid, but it was short-lived and people haven't pain in a while. people say oh, the risk is fine. ky have more risk exposure, this is going to wosh out. i can hold through. you haven't seen your portfolio down 20% in a long time. make sure you're following your discipline and trimming some of these equity positions that is getting too big where risk is creeping into your portfolio. don't be a victim of complacency, be a devotee of that long-term goal when you started to invest. stick with it. >> the two michaels, thank you very much. have a great weekend, gentlemen. appreciate it. >> thanks, tyler. now to another part of the market, reddit ipo, shares now at $47.83, hovering a little shy of $48. the stock closed up 48%,

climbing as high as 70% before blowing off some steam. cathy wood scooping up 20,000 shares of reddit, but there are challenges in store. julia was on the floor of the new york stock exchange for the opening of the ipo. what are the challenges for reddit? >> this company has yet to turn an annual profit last year, it recorded a loss of $90 million, but the ceo at reddit told us in the back half of the year, they showed profitability. he's outlining a plan to use ai to make their ads better targeted, more efficient for their ad buyers, and also to license their data to the likes of google to generate new licensing revenue, to train the google ai systems. so one big question here in terms of challenges is what the ftc does. they're investigating reddit's data licensing practices. reddit says this isn't a problem, but analysts are

watching this as a key area. they need to make sure that they really can indeed continue to license this data in order to create this new revenue. >> is the path to profitability really goes through the advertising business, right? it's an -- >> 95% of the revenue is from advertising, and they're competing when it comes to advertising with the likes of snap and pinterest and with meta. meta is so much larger. meta and google are the digital duopoly right now. reddit has this challenge of competing with much larger players. what they say is that they have a very much unduplicated user base, meaning advertisers can reach people on reddit that they can't find on snap, pinterest or facebook. so we'll see how that plays out. theyalso say a lot of people come to reddit with intent to buy. people might be asking questions about what kind of car should i by, what kind of electric toothbrush? it's a place to reach people when they're open to information

about purchases. that's going to be a key thing to watch here. and then as we watch revenue growth rates for all of these players, we'll be carefully waving the revenue growth rate for an indication of how much they're able to convert advertisers. >> i don't mean to catch you off guard, but who are some of the biggest shareholders that made money yesterday? i know that the founding family of konldy nass is one of them. are there others we would know? >> sam altman. >> really? >> he was very briefly the ceo of the company, and so he -- but through that process, he bought some shares. but advanced it has turned quite a profit, because they originally invested $10 million. >> and now $1.4 billion. interesting story in "the new york times" today about reddit and how it transformed itself from the inside out, not by

targeting individual redditors or contributors, but by targeting sub-reddit groups and kicking them out to make it a less toxic place to hang out. >> yes. you really want to have positive information, positive contempt. you don't want to have anything toxic or inappropriate. advertisers don't want to have their content near anything inappropriate. so reddit empowered their moderators, the unpaid people who are doing such important work on reddit to pull out stuff that's false or that's offensive or that's hate speech. so they really empower them with more tools to make sure they're keeping the content on reddit there. >> i look forward to next week. join me at 2:00. >> i'll be co-anchoring. >> nice to see you, julia. coming up, whether it's using ai and robots in stores or dragging workers back to the office, corporate america is looking for ways to drive productivity. up next, we'll look at the latest trends and whether they are heading us toward a productivity boom or bust.

speaking of tech, apple coming off its worst day since august after being targeted by the department of justice. we're going to look inside the regulation playbook for the mega caps and why microsoft may have just put on a master class for avoiding washington's eye. "the exchange" is back after this.

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bullish sentiment for the builder stocks this week. the itb construction etf is up more than 5% on the back of positive housing data. our next guest is turning to a different name and different sector for what he calls a potential stealth housing play. that is the electronics retailer best buy. also having a good week, helped by another bullish call from jpmorgan today. joining us is anthony jacumba from luke capital. what do you see in best buy, anthony? >> so really what it comes down to is that best buy is the largest television retail in the u.s. they have about a third of the domestic market share and the third largest appliance retailer in the u.s., behind home depot and lowe's. between appliances and

televisions, it probably accounts for up to 30% of their sales. so if existing home sales in particular continue to pick up, i think that will be really good for their appliances and for their television business. like i said, a lot of companies that are more sort of direct plays on the housing market, they're trading at huge multiples right now. best buy not so much. so that's why i identified best buy as a stealth housing market play. >> it's an interesting pick. let's look at some of those other companies that are maybe more directly associated with housing, like an rh, like a floor and decor, and so forth. do you see the upswing in the housing market benefiting them or not as much? because they have a higher price to begin with? >> right. yeah, so essentially that's my argument. it will certainly benefit them, and, you know, quite frankly, much more directly than best

buy. but that's already much more priced into those stocks. you know, just in the last few months, we downgraded both rh and william sonoma from buys to hold ratings, largely based on valuation. >> interesting. what do you see for the housing market this year? i mean, the numbers in february were quite favorable compared with january. interest rates, presumably are going to come down later in the year. that should be a bit of a help for housing. there's still a lot of issues with inventory. >> so, i'm incredibly bullish on the u.s. housing market right now. part of that is the fact that you are coming off of a very, very easy comparison, particularly for existing home sales. but part of it is just based on the data we have seen. so we have had sequential improvements in existing home sales in the last two months. the 4.3 million units in february were the highest levels

since february of 2022. and this is all before mortgage rates come down. so the 30-year fixed mortgage rate is almost 7%. so yeah, we think that as the fed starts to cut rates and mortgage rates come down in turn, that will lead to a significant acceleration in existing home sales, even from where we are right now. a and to your point about inventories, inventories are slowly but surely getting better. >> that is good news. you look at some of the fundamentals of the u.s. economy, they would favor housing, when you have wage growth coming in at plus 4% for many, many months, which has been the case. when you have things like jobless claims falling and the unemployment rate staying where it is. housing is highly related to income and jobs, correct? >> 100%, 100%. you nailed it, you nailed it right on the head. you hit the nail right on the head. you have unemployment less than 4%. we have now almost 2 1/2 years,

over 2 1/2 years of at least 4% year over year wage growth. the last ten months has been -- the wage growth has been higher than the rate of inflation. so consumer purchasing power is getting better right now. so yeah, i think there's a lot of tailwinds for better home sales in 2024. >> all right. anthony, thank you very much. great to see you. have a good weekend. artificial intelligence and work from home are two of the biggest factors for companies looking to drive productivity from their employees. today, we look at both and what kind of a boost they're giving america's workforce. courtney, let's begin with you and see how retailers are using ai. >> yeah, so automation ai, other machine learning has helped increase productivity for retailers in stores, which is often now being tasked with fulfilling online orders. tractor supply has several ai tools, designed to make employees more efficient in stores, like its headset system, which answers questions about

products, inventory, and helps employees with their hr related questions. and badger technologies, marty the robot works in grocery stores and hardware stores to scan inventories and alert employees of hazards in aisles. >> it's a great brand that you can have, and that as you start -- as a team member starts using it and they become more confident and more reliant on it, it creates a kind of award for talent opportunity for -- or a win for us because they might be hesitant to leave to go to another job where they don't have such a tool. >> they improved their accuracy over 90% by freeing up over 40 hours a month with the pricing coordinators have to do to check their pricing. >> home depot's app prioritizes highest value tasks more efficiently for the store associates. it's improved productivity by

increasing availability and customer service scores. sam's club using autonomous inventory scanning. and walmart is expanding its use of drone delivery for faster delivery of these smaller items. now over to kate rogers. >> productivity really depends on what type of job you have, and what type of self-discipline that you possession. but on the whole, a research paper from stanford on the evolution of work from home found that working fully remote is associated with a 10% lower rate of productivity than fully in-person work. hybrid work appears to have no impact on productivity, but it's popular because it improves recruitment and retention. now, separate data from jobless found that younger workers are seeking in-office experiences these days, and higher rates than other generations, a rate of 57% versus a third in all other generations.

i spoke with two gen z workers who say they prefer working in office for career growth opportunities, socialization, and of course, even productivity. >> i think as someone who is pretty recently out of college, it's helped me transition into the workplace life more, and just adulthood more, being with other adults. >> i think being able to collaborate with your team is a benefit of being able to go into the office. in my experience, collaboration was a lot more difficult when working remote. you know, you don't have that in-person ability to walk up to a desk and ask the questions. >> as for the industries where people are most working from home these days, it's information, finance, insurance, and professional. and business services, not tv shows, guys. >> what do we know, kate, about the ultimate productivity of people who work from home, are they more productive, less productive? >> around 10% lower if you're

fully remote. hybrid really has no bearing in productivity. it's break even, but we know it's great for attracting, recruiting, retaining people, because people do enjoy that flexibility, and it can, if it's done properly, be a cost savings to some companies that they could reinvest back into the work workforce. >> certainly helps people that might find it difficult to come back into the office every day to hold a job and be productive. >> what's interesting is that the stanford research people found the people most likely who want to work from home, millennials, they want the flexibility. >> so court, where does this ai revolution take us in terms of workers and the demand for workers? >> that's such a good question. i asked the ceo of badger technologies, which is the one that runs these robots that do these inventory scans and help for hazards in the aisle. he says of the retailers he's worked with, no one has laid off employees as a result of it. they just shifted their tasks,

especially because retail has gotten so much more complex, and workers are being asked, especially in stores, to do so much more. help customers in person, but maybe fulfill an online order. if they can take away tedious tasks like writing down how many bottles of tide are in an aisle or cleaning up a bottle of tide when it falls over, they can serve the customers more. that helps them like their jobs more and retain people. tractor supply was talking about how their talent retention has increased since they introduced a lot of these ai tools to make their jobs easier. >> we had an interesting conversation with aaron levie box, and he had this hypothesis about how ai will affect worker -- the workplace head count. he said, in the early stain, it may reduce it. but in the longer run as ai increases productivity and companies grow faster and make more profit, that will mean that

they will invest back in their business and expand, and ultimately, probably hire more people. >> yeah. i think that is really fascinating. i think a lot of times in retail, we're talking about automation, a lot of focus is this the warehouse or distribution centers. this those cases, some of that automation can replace workers. but i think what i focused on was the automation going on in stores. and that is really helping the workers. but i understand aaron's point. >> i would just add to restaurants, another service sector type of job, same thing, chipotle is using the oauto avocado prepper. workers don't enjoy that like they would interfacing with consumers. so what does that do for retaining people down the line remains to be seen. but it's interesting and they're testing it out. >> avocados, you can't really react with them. >> i try to talk to them.

>> she's a plant lady, so she probably does. >> they don't talk back. >> they don't laugh at my jokes. >> enjoyed having you here. good to have you here this week, kate. court, thanks. all righty. still ahead, senator warren calling on the s.e.c. to investigate tesla, the board of directors and ceo elon musk over governance issues. we'll tell you what she's worried about and whether investors should be concerned. obviously, elon musk doesn't seem to be with that big grin. as we head to break, take a look at shares of lululemon, plunging after posting weaker than expected guidance as demand slows in north america. shares having their worst day since the start of the pandemic, down 70 a share. "the exchange" is back after this. the age to scr een was now 45? [both] because i said cologuard®! -hey there! -where did he come from? -yup, with me you can screen at home. just talk to your provider. [both] we'll screen with cologuard

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blinken made with israeli prime minister benjamin netanyahu in israel today, where we discussed options for israel's ground operation in rafah and reiterated the urgent need for aid in gaza. he departed israel, he said it would jeopardize the country's standing and long-term security. it was the last stop of his sixth trip to the region since the start of the war between israel and hamas. after yesterday's surprise defeat of number three kentucky and several other high-seeded teams in march madness, less than 1% of all brackets are still alive. but if you're an atlanta fall con, his entry was only one of a few left with the chance of a perfect bracket. >> i did pretty well yesterday. a couple are in the 70% area and one is a little higher. so i'm feeling proud of myself right now. pippa, thank you

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welcome back, everybody. the department of justice's massive new suit against apple, just the later regulatory battle facing big tech. there's also the ftc facing off with amazon and meta, and the doj against alphabet. but one mega cap that seems to have dodged scrutiny so far is microsoft. not that they haven't been in the target hairs before. deidre bosa has that story in today's "tech check." >> and that is key that they have some experience here, but fast forward to today, two key pieces of the ai arms race, technology and talent. very interconnected, and microsoft is collecting on both fronts. all while dodging regulators. and it turns out that could be their edge. just look at this week, apple hit by that giant anti-trust lawsuit. microsoft poached inflection's top talent, while appeasing investors with a large licensing fee. as you mentioned, google, meta, amazon, they're under scrutiny

by the doj or ftc. why does microsoft seem to be avoiding regulators better today? well, it may have something to do with that past experience. the president of microsoft was there during the anti-trust lawsuits of the late '90s and early 2000s. so he has experience, and he may now be structured current deals, like its $13 billion invest in o openai. google wants ruth porat to play that role at the company, but after announcing she would become president and communicate more with washington, they're still searching for her cfo replacement. you touched on it at the top, it's about that experience, and microsoft is proving to be very adept at playing the regulators while accumulating all of this talent and technology from the ai darlings. >> it's kind of interesting to

see, dee, that as i think back on the history of microsoft's brush with anti-trust, more than a brush, that understates by a factor of about a million. but it really had to do as much as anything with -- correct me if i'm wrong here -- sort of a similar thesis as to what the doj is bringing, or that the anti-trust regular fors are bringing against apple. the idea that microsoft was trying to create a closed ecosystem, where everything was tied into windows. you got windows, then you got theibrowser, you got their email, and they were creating this walled garden, which is kind of what the anti-trust regulators are accusing apple of. >> so, yes. the walled garden is a common theme. however, as many people will point out, especially here in san francisco, the numbers are very, very different. microsoft had a different kind of monopoly, a different kind of

market share at that time. apple has less than 60% of the smartphone market, so android is a reasonable competitor here. but it is about that ecosystem, you're right. let's look at the implication, though. what happened when microsoft was dealing with those lawsuits back this the late '90s, early 2000s? essentially a lost decade. that's the fear here, whether or not this lawsuit is right or wrong, it will amount to a distraction for apple at this important time when it's trying to convince investors and use es it has an ai strategy and proposition. so this is the most important platform shift, does apple risk falling further behind? >> it will be interesting to see what happens with those suits, and certainly if there's a change in administrations what happens with those anti-trust lawsuits. dee, thank you very much. shares of tesla under pressure after massachusetts senator elizabeth warren once again asked the s.e.c. to

investigate the company, elon musk, and the company's board over governance issues. this as tesla trims production in china as sales grow stalled. here to discuss is dan leavy with our own phil lebeau. start off, phil. what do you make of senator warren's letter first to the s.e.c.? >> not new arguments. similar to what we have heard from her in the past when it comes to tesla, elon musk, and the governance of tesla, the board of directors. she says there's a financial conflict of interest. there's a lack of oversight, a lack of disclosure, and as a result, shareholders are hurt because of that relationship. not surprisingly, elon musk, and he's heard this efore, he tweeted out today, you know, it seems like senator karen, and that's what he refers to senator warren as, senator karen is getting her cues from sbf's dad, being sam bankman freed.

he said he advised senator warren's staff in the past, and she's taking her cues from him. so we've heard these concerns from senator warren in the past regarding elon musk. i'm not sure that the s.e.c. is going to do something specifically because of this letter. but we have heard this from her in the past. >> yeah, no fan clearly of elon musk and that's reciprocated. let's talk more about the business of tesla right now. how is it going, and what are their -- what are their plans to overcome this slowdown, which is not just in the u.s., by more mobily in ev sales in china? >> hi, tyler. thank you very much for having me. look, we are in the midst of what we call -- or what many have called an ev winter. we're looking at an ev sales that have certainly slowed. there is still growth, but it's certainly a reset on the growth expectations.

when you look at it regionally, china is still humming along, but in a place like europe, we just revised our forecast to basically flat. year over year growth or slightly above that. and when you look at tesla, tesla is at the front. so they're going to be reporting q1 deliveries in a week plus. we think you'll see some of those impacts as sort of an ev winter. a slowdown in china, impact from the roloff of subsidies in europe, and this is certainly questioning the pace of growth for them going forward. we're looking for something in the $420 to $425 range. some of the data points out of china imply some downside to that. >> so 420,000 to 425,000 units in the first quarter. the consensus is 468,000, so a modest sort of cut there. phil, why are -- why are

electric vehicles losing their popularity? >> it depends on the market. look, they're still growing in terms of sales, tyler. >> but not as fast. >> let's talk -- well, let's talk about the united states. you have two major headwinds going on right now. one is pricing, and yes, tesla fans like to say, well, look, you can buy the model three, and with the government incentive, you can get it down in the $30,000 to $35,000 range. but the fact of the matter is, the average transaction price for teslas and all evs is higher than that. there's just not a lot of options across the board for the entire industry when it comes to e evs moderately priced. and one of the other headwinds is the back of a public infrastructure when it comes to charging. a reliable one. yes, you have the tesla super charging network. but separate from that, tyler, you don't have enough chargers, and they don't charge fast enough.

i think a lot of people are increasingly saying if i'm going to charge up a vehicle, i do not have hours on end to spend here. this idea of, have a snack and wait for it to be charging, that's not going to fly for people when they look at buying an ev. >> i agree with you on that. as people may or may not know, i have an ev. i happen to have a tesla. their supercharging network is good. it's pretty fast. but other chargers are way less fast, and even the home charger that i use takes a couple of hours overnight. dan, how would you answer the question i just asked phil, how do you explain the idea that while they're still growing, evs are, that growth has slowed, why is that? phil nailed it? >> i agree with phil. i think that it is an affordability issue. prices are on a like-to-like basis at a premium. i think what phil is talking

about, this issue with harging, this is part of a broader issue of transitioning from the early adopters to the early majority. so you are seeing some questions on the use case. i think you see a very different story regionally. china evs are dominating, so that was a clear source of upside. we've seen in the last few months, as high as almost 40% ev penetration. when you look at europe last year, europe was basically flattish on ev penetration. this the u.s., it's still roughly 10%. i'll just point out one other aspect here. just remember, especially in the u.s., so much of the ev story is tesla. part of tesla's issue is that it's a very concentrated lineup. there's five pink colors, really two dominant models. so there's only so much option. the other automakers putting out other models, they can't keep one the cost. the cost is just too much. so when tesla cuts prices, the

others can't. this is why you have some challenges from the other automakers on ev penetration. >> fascinating stuff. we'll be talking about this one for another decade and a half, long after i'm out of here. thank you both very much. all righty, folks. coming up, it was a big win for ipos with asterial labs and reddit. we'll be right back. rylee! from rylee's realty! hi! this listing sounds incredible. let's check it out. says here it gets plenty of light. and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it. says here...“inviting pool”. come on over! too inviting. only at&t gives businesses our best deals on any iphone. get iphone 15 pro on us. (♪♪) wall street forecasts over 100 billion in sales

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your skin is ever-changing, take care of it with gold bond's age renew formulations of 7 moisturizers and 3 vitamins. for all your skins, gold bond. we've got a news alert now on apple and steve covak has it. >> we have a report about another research and development project being cut at apple, this is coming from bloomberg. apple is cutting their apple watch display unit. so this is a unit that was researching how to make in-house displays for the apple watch instead of relying on suppliers like samsung and others. we've seen apple do this with multiple products, most notably ditching intel to use their own

chips and making their own modems instead of qualcomm's modems. here it sounds like there are going to be some layoffs, but a much smaller group. but apple shares coming up, shopping on social media ramps up. drugstore skin care is all the rage and the poke-feature is back. among teens and tweens and the companies that are capitalizing on them. that is next. your goals. -you can make this work. -we can make this work. it can help you reach them with confidence. no wonder more than 9 out of 10 of our clients are likely to recommend us. ameriprise financial. they're waiting for you. hey, do you have a second? they're all expecting more. more efficiency.

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welcome back. the tiktok bill now on its way to the senate has far-reaching implications for users, influencers, and brands, and maybe even for president biden, but it would also impact sales particularly for direct to consumer companies using tiktok's shop feature which launched just last september, but emarketer estimated there were more than 33 million social buyers on theapp last year. if you think that's a lot, facebook had nearly 66 million

while instagram came in second with 43 million. social shopping is only getting more popular, particularly among gen z. so could tiktok's pain translate into yet another gain for facebook? joining us now to discuss is casey lewis, author of the newsletter "after school." thank you for being here. >> thank you so much for having me here. >> walk us through -- i'm aware of facebook marketplace and of shopping on instagram. why are they working so well for facebook? >> yeah. the marketplace has emerged as kind of gen z's craigslist which is very interesting to see, and i think it's two reasons. gen z is obsessed with value. they don't have a lot of money to spend. they want to get a good deal and two, they appreciate sustainability. they love secondhand, so marketplace fits in there, and i think the ux is good. >> it's interesting. certainly i look at what teens and tweens do in my town, and they -- a lot of them go

shopping at thrift shops. a lot of them. >> yeah. yeah. i think, you know, they are obsessed with nostalgia too. they like old stuff, but yeah. i think it comes down to, look. the babysitting money only goes so far. >> that's exactly true, but what has happened to craigslist by contrast? they aren't suffering i wouldn't think. is there an erosion? >> i think they're going to suffer. i think unless they do -- and the thing is i don't know if you have been on craigslist lately, but the interface is how it was 10, 15 years ago, which has its own nostalgic appeal. maybe gen z will discover craigslist, and maybe that tengsds to websites too. >> let's move onto another trend that gen z are doing, and that is ditching standard linear television programs in favor of streaming services. tell me something i didn't know. i knew that, but the other thing

is they're using live -- watching live content, stuff on facebook, stuff on instagram, stuff on tiktok, stuff on youtube, and they're much more entertained by that than investing the time in longer programming. >> yeah. this survey found that 60% of gen z-ers would prefer ugc, user generated content to anything on a streaming service or even going to the movies. bad news for netflix, bad news for amc, and it's scaleable. it's plentiful, and it's also cheap. it comes back to, like, gen z's growth. >> let's talk about cosmetics and you say it is young people, literally quite young people who are driving the purchase of cos cosmetic skin care, facial stuff at places like cvs, walgreens, and others. >> yeah. it seems the sort of exception to the rule of young people being broke are tweens, gen

alpha who have their parents' pocketbooks because they're driving 49% of drugstore skin care's growth. skin care. we're nottalking lipstick. we're talking about serums. i didn't even know what a serum was when i was 12. >> i don't know what a serum is either. another report is that 30% of gen z-ers say they would rather look great today with a tan even if it means looking worse later in life. let me tell you having had multiple surgeries, you don't want to do that. casey lewis, thanks, my friend. >> thank you so much for having me. >> appreciate it. all that teenage year spent on the beach in ocean city, maryland. not a good idea. we're getting ready forp "power lunch." i'll join her on the other side of this break. we'll be right back. ♪(orchestra del teatro alla scala, milano)♪ ♪♪ hey, i'm at gate 6 wearing a gray shirt.

i'll pick you up in 2 minutes. ♪("everybody get down")♪ ♪♪ ♪♪

welcome to "power lunch," everybody. alongside contessa brewer, i'm tyle ty tyler mathisen. we're going to break down a single stock with three different schools of thought. more on that later. >> slice and dice it up. that's what we'll do. the olympic ceremonies are hitting the big screen. i'm talking a really big screen. i imax is going to show the opening ceremonies. only the recent exampl