pent-up demand, second half of this year, it could come to fruition, in a big way >> mona, thanks for joining us today. >> thank you. >> have a great weekend. we will talk to you soon. >> happy president's day, thanks, becky. >> that does it for us today and for this week. thanks, mona as joe mentioned we have a three-day weekend coming up so we will see you on the other side of that i'm off tuesday and wednesday and i will see you on thursday have a great weekend good friday morning. welcome to "squawk on the street." i'm carl quintanilla with david faber and jim cramer futures are steady as the s&p has had minimal movements for the past three sessions. disney earnings are in focus, nearly 80% of the s&p has now reported, and ten-year yield close to a two-week high the road map begins with disney surprise beat. disney subs, closing in on the

100 million mark and earnings blow out expectations. we will break down the results next. >> and what's a day without saying gamestop? or hot stocks or reddit? we'll talk about all of it and of course as the justice department investigates possible manipulation and later, morgan stanley's call on evs you're going to want to hear what adam jonas is saying about names such as fisker and quantum scape and all of those battery makers that we're trying to sort through. many more continue to go public, often times through spacs. >> indeed, guys. we'll focus on dis tney though start things off pretty nice round of target increases. jpm 220. credit suisse 218. it is pointed out that it took netflix nine years to get to 95 million subs and it has taken disney 14 months. >> it was a joyous call but they did not change the fiscal guidance and you do want to temper things a little after this gigantic run.

it is really very hard and david, i know you staten islanded this company for a very long time, it is very hard to find a company that can make so much money when most of it is closed >> yeah, i mean to your point, cruise ships, obviously, the theme parks, have not been open in many places, or sporadically, and not to capacity, and then their movies are not being seen in movie theaters so those are the three components of disney that have not really seeing significant -- >> cruising. >> yes >> i said that at the top. >> the moment on the call carl, that was most, it seemed to get the most resonance, when they were talking about maybe no masks, not having masks in 2022, that's the new normality and when you get to normality, people are saying you know what, i want to go somewhere and this is the most visible destination in the world, whether it be in paris, asia, in california, which will matter very much, and i know you know disney very, very well. better than anyone who is on our staff, but it is, the things that they describe, my kids are

now 29 and 26, and i feel like calling them carl and saying we're going to disneyland. >> it's funny you mention that because i remember they came on the air, i'm guessing april or may this year, we were asking about challenges for the park, when they were to reopen, and they were closed at that point, and he said masks. he said masks for the clientele, challenging, especially in orlando, in the summer, and of course, last night, on the call, he did talk about vaccines, mass vaccination, herd immunity, being a game changer, and maybe as soon as april, here's what he said >> we have no doubt, when we reopen up in parks that were closed, or increase the capacity, that we'll have some level of social distancing and mask wearing, you know, for the remainder of this year that is our expectation. but i believe that dr. fauci said earlier today that he hopes that there's vaccines for everyone who wants them by april

this year, and if that happens, that is a game changer and that could accelerate our expectations, and give people the confidence that they need to come back to the parks >> to your point, jim, i mean there's the streaming tail wind, and potentially the park tail wind. >> they're actually very conservative, when you get to the price to increase coming, and i want to call out someone and i've done this before a couple of times, sometimes you can't do it enough, there's the cfo there who is really the continuum of, bob irish, the bridge, and christie mccarthy, when she speaks, you listen and the reason why, is because they did a fundamental financial restructuring, during this period of covid. david, they probably did more to ensure that they are the fort knox of entertainment than any company at a time when it was very unclear why anyone would want to own the financials having to do with an in park and entertainment company in the midst of the worst pandemic

since 1918. >> it is a surprise to see the performance of the stock over the last year particularly as it hit the lows in the march, april period as everybody tried to understand the ramifications of the pandemic and certainly disney was thought to be one of the companies most at risk and then we can rewind when was it that we had the contentious, i will call it the contentious interview with bob iger, we talked a lot about espn and he said all you guys want to do is talk about espn, it was six, seven years ago, i can't remember, but when you think about the transformation that has taken place at the company, how they have basically exited the ecosystem that existed for all these year, although i shouldn't say, they haven't exited. >> no. >> they have transitioned, begun that transition from it. by the way, an incredibly profitable ecosystem and i'm talking about the one we're a part of, the cable networks ecosystem and you're getting paid by the people who don't actually watch you, that's a great business, but that transition that's taking place and that they have now been rewarded for having succeeded

that already, given direct to consumers now, the way this company is measured. plain and simple that's the way it's going to be measured more operating income than many had expected they would, from the quarter itself, and they added a lot of subs in enda, by the way. >> and that's been - >> 10 million subs. >> those are low arpus. >> yes and there is a concern to a certain extent, even though 95 million sub, way ahead of the time period under which netflix was able to achieve those kinds of numbers but it's here to stay. it's how it's going to be judged and that's how we're going to look at it whether it ever replaces in profit ability, truly the old ecosystem is very much unclear. >> well, if you remember, you go back to that rancorous time, espn, the super cycle, that was the top, an every since then, we focused on that, because the decline, as you would, go every quarter, it was rather radical i don't even care about it now i like espn.

adam shekt ser my friend and i you don't know -- and i enjoy watching their coverage. >> a lot of cash flow for the company. >> but espn plus has also been very successful. >> yes, it has and the hulu offering and the grouping by the way, also, guys, worth mentioning, a theme we've come to, a number of times, in terms of just many companies, horse betting, you've been following it of course closely, it comes up in the call, fox and their call, obviously, fox far smaller than disney but it came up a lot there in terms of what they're doing with fan duel, but here again, i mean when you start to see espn sort of we've got a relationship with draft kings and caesar's, sports betting leagues with both of those not branded disney or espn but branded through their own offerings, this is becoming an important component of many of these media companies when they have sports programming, their strategy >> i'm saying, yes, a program for them, very aggressive, very

portable looking company i think more should have been spent on what espn is doing with gambling because i don't think, i think they have much more room they do have a clubhouse thing but they should be doing clubhouse. they're not doing interactive enough gambling. that's what people really want carl, i think the gambling world is bigger and i think the cannabis world is smaller than this market realizes >> jim, i want to ask you, more broadly, about travel, and we do have some downgrades of some of the cruise lines this morning. berrenberg cuts carnival and norwegian, basically saying that enterprise value really hasn't dropped that much, despite some of the risks that they'll have when they start to operate again. and of course, expedia last night talked about how this return to travel on a global basis, jim, is going to be a little rocky here's what he said. >> the strtrends why generally good, the trends are generally good, although very bad overall going in the right direction, but i would caution everybody we

continue to expect it to be bumpy, as this is the story of a thousand different geographies, and a thousand different things around the vaccine and of course vaccine rollouts, et cetera. >> we will talk to him in the next hour, i believe, jim, coming up, peter kern from expedia. it sort of points to some of these near term, especially in europe, near term extensions of lockdowns, as the variant kind of remains a wildcard. >> it is, no doubt about it. i don't want to sugar coat it more than 3500 deaths yesterday. >> we have to keep these numbers in front of you. i have been dealing with a company with a therapeutic debut, and people under of dieing in the hospital of disease, and being the recipient of the double moderna, for me, i'm willing to go around the world in 80 days, from norwegian to a handoff to carnival and i might say you know what, put me on one of those incredibly special mediterranean cruises so

i can, every one of those capitals, and show them i'm not fearful of what you have >> well, more and more people may start to feel like you do, jim, which is why it's interesting that expedia was not particularly positive. >> i didn't like that. he was very conservative but he was kind of a downer. >> yeah, he was. >> yeah. >> but maybe because he is just dealing with the reality. >> maybe he hasn't gotten the moderna. >> he very well may not have just like i haven't. and carl hasn't. >> age before whatever >> age before whatever >> i think we have to stay close, because i believe in the norwegian business model because they have the better balance sheet of the three, and is it the place to be? what are we doing, why respect we talking about southwest, united air, american airline not that good of a balance sheet and i thought it was airbnb, downgrade, up too much and i thought you could do it with boeing and someone on twitter saying i'm sick of you saying that you like boeing and i came back and i said i did faang for five years and no one ever said

they've sick of faang. >> jim, before we go to break, i do want to squeeze in a little bit of just a reflection of what an incredible week it's been for crypto, bank of new york mellon, tesla of course and mastercard and you talked to paypal last night, not just about companies that are having to decide whether to invest it in directly but adding to the venmo wallet take a listen. >> if you look at the way we went into crypto, we tried to do that in a very responsible way we tried to make it simple and easy for people to understand what they're doing when they get in there, we gave tutorials so that people would have education, and would understand what it means to buy, sell, and hold crypto, and then we put limits around some of it as well, so that people could, you know, ease their way into it, before we start to ease some of those limits, even more. and so we really approach everything from a customer

centric perspective. >> although, jim, like gm, and like uber, not necessarily adding it to their own balance sheet, at least for now. >> no, one of my absolute favorite cfos came on, we did a joint interview and he said not for us, they want to do growth, and that's fine. i do think though that dan schulman has tout me a lot about paypal, taught me a lot about crypto and taught me a lot about buy now and pay later, so many different ways, venmo, that makes it so that im a-i'm not at all chagrinned that there is a $330 billion market cap at paypal and i think they go much higher and i think the projections that they showed on my show last night were unbelievable and dominate. >> will they challenge visa. >> yes. >> visa is usually a half a trillion market cap. >> all right, steak dinner, 18 months. >> 18 months >> so i'm already taking the other side here? i didn't say that i want to be on the other side. >> sorry >> how about a chipotle

cauliflower bowl >> 450 billion for visa. so i should, you know -- >> catch me if you can. >> you know what you want to go out i'll buy >> we'll stand in a -- >> we can go somewhere and sit in a restaurant. i'll buy. >> cinco de mayo, my pace. i'm using the san diego standards how to open a restaurant safely. >> i'm looking forward to that as well. i'll even pay for my tequila. >> really? >> starting today, guys, starting today, you can do it in new york city. and we'll talk about indoor dining later on. we will get to the ev call that david mentioned at the top of the show morgan stanley out, jonas, quantumscape and fke bisr,oth overweight we'll get to that after a break. don't go anywar.

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as we said, morgan stanley's adam jonas deeper into the landscape of quantumscape, and fisker, initiated on an overweight and trying to separate some winners from losers, lordstown for example remains underweight. >> yes, listen, gm, the competition, with the concept, romeo, we're out there, that's a sell, romeo, but there are just some incredible praises here for fisker, not as much as i was hoping for, what they call the biotech, which is qs, quantumscape, the biotech of the

group. the $27 price target for fisker i think is well reasoned he's got a bear case, this is not unusual for him, remember, he has the bear case of 9. but what they're really talking about, carl, is the idea that this is the legit one, because of its relationship with magna which is such an amazing company. they make cars for daimler, benz, toyota, it's part of the mix. they have a bull case in terms of 550,000 units by 2030 that is rather amazing i became a believer in this one. bill mcdermott, a friend, outside of work for many, many years, joined the board september 29th and we know what he had done at sap and service now and he said jim, i'm a believer, and the ocean is a gorgeous car, and i think that fisker is, when we look at all of these different companies that we talk about that are just excitement, they're maybe some steak here with sizzle. >> there might be and the question is, where it's going, who is going to sizzle, and who's going to fizzle, boy do you like that

>> oh, my gosh. >> my clients got nothing on me. >> but it's good to get research like this. because we need more of it jonas is a pretty rigorous guy, right, jim >> i love this piece. >> and it's a long piece and as more and more of these companies come to the public markets as we've seen oftentimes with mergers with spacs, we need to try to understand the competitive relevance they have and what they're facing and he is doing this matrix for each of them, so he's calling a key consideration matrix, which may be helpful but not everybody has the most efficient battery. not everybody is going to be able to scale. not everybody is going to be number one and yet they all claim to be and that's what people are trying to figure out interesting. i don't think kathy wood had bought quantumscape even though interested in this area. >> i will check. >> i will check at 6:00 every night. >> everybody's got to check that email. >> yes >> or what they communicate in terms of their trades. >> you're absolutely right

she calls them out in draft kings, in snap, and virgin galactic. >> spacs from earlier this week. >> cmlf. >> yes >> the day that health care ai, genomics, she bought that. >> my point was on quantumscape, interesting point, it isn't there, i don't think. >> the ceo of quantumscape. >> what can move the needle, we need faster charging and lighter batteries and what elon musk said, never go away from him, he talked about it is easy, making a prototype is easy, scaling projection is very hard and the reason why fisker could be at the top is they're able to scale production >> hydrogen, the truck, earlier this week, came public through a spac, a truck battery. >> yes. >> but i'm trying to understand,

jim, this world that is becoming, the transformation that's going to take place over the next ten years in the electric power grid, in the number of stations you're going to need to be able to charge these vehicle, just everything that is going to have to occur for this ev revolution to really succeed is enormous. >> yes, because you're talking about a, carl, a very small number of cars that are ev fisker, i think they would be happy if they got a couple of percent. adam jones did that great people in morgan stanley. i think one of the things, carl, and i think david is right, there is a vast panoply of how things will change and much of it is uneconomic right now, and when you get the special breed hydrogen, it sun economic but it may move fast irthan we think -- faster than i think and i think the biggest companies most important are walmart and amazon and they are driving to get it so we have zero emissions, it's the customer that is pushing the truck, and mar why, mary barra

making the point, and they always come up with the caveat, in the 2030s, oil will still be here and when i look at the amount of money that is coming into this group and the funding and david mentioned it earlier, yesterday, the funding is so significant, i think it is entirely possible that they can pull this off faster than people realize. >> to your point about the legacy oil, s&p did dgrade some of the oil, downgrade some of the oil majors on credit, sweeping downgrade on both ends of this candle a quick break here eng lln less than ten minutes. back in a moment the holidays weren't exactly smooth sledding this year, eh santa? no, but we came through smelling of mistletoe. the now platform lets us identify problems before they became problems. if only it could identify where my ball went.

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cut to perform at some point, the valuation becomes to much and hard to justify and the current level is that point for us. arares already up 48% for the ye so far. "squawk on the street" is back in a minute.

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let's get to a mad dash, three minutes before we get started, for the final day here, don't forget, we have monday off as well. alphabet is a name you want to talk about. >> this morning, citi cools on it very rigorous analyst saying alphabet is no longer our top pick the street is being too aggressive stims estimates are too rosy focused on losses are expected to moderate but rapid growth, continue to invest, that's exactly the future thomas is remarkable, and i think that the cloud business is a must, there's so much to do, and look at azure, how they ramped that 18 billion a quarter, 18 billion a year, remember when he first said he

would do 18 billion a year and now it's 18 billion a quarter and now look what is going on with aws, and google has no chance to spend like mad and give them every resource they can to come back to a big three, and i think this piece is wrong and i think stock is cheap and i think travel is coming back and i think jason should say, it is my top >> to be fair, the stock is up more this year, i think already, than last year. >> it has been the worst of faang for ages. >> it was 1400 bucks for september and over 2,000 now. >> ruth had a great call she broke out everything and i think the time to cool on alphabet is when it gets considerably higher than where it is. >> okay. >> it's not an airbnb like situation. >> okay. >> and you don't think investors, they'll welcome any spending that comes for the cloud? >> cloud, money well spent. >> ibm i think feels the same way. arvin christian feels the same way.

>> don't do that >> okay. >> i won't >> don't be mean. >> i'm not going to be mean. i just - >> thomas courier, i met thomas, had a meeting, and he's the one of the most impressive tech investors i've ever met and he has a plan and it is going to work. >> a pretty competitive area though not exactly somebody to mess with and the guys at azure, very significant competitor as well >> all i can tell you is that they've got the war chest. you know they've got the war chest. >> that's true no doubt. >> those who have war chests can win. >> that core business generates an awful lot of cash and the stock is up since they reported earnings. >> and cloud is still early on as i mentioned big mcdermott has said, and mark benny, and i don't have to tell you, look, they're never going to tell you. >> is chip shortage going to bleed into the cloud >> no not really, and we have to

talk to nvidia, and they're okay, a lot of it is customers remember, the commodity auto chip the commodity chip that is real lit shortage because the chinese triple ordered. >> the opening bell, guys, in the s&p the bottom of the screen and we'll see if we get any more movement, and the s&p has moved basically 20 basis points a day for the past three days. haven't really seen that since 2019 jim, you mentioned the chip shortage and it looks like we are going to get some kind of an executive order from the white house in the coming weeks, this letter from the industry, to the white house, signed by lisa su at intel and micron and qualcomm pointing out that the u.s. share of manufacturing in chips has gone from the high 30s to the teens, and in about 20 years, 20, 30 years. >> yeah, look, this is, you'll see, again, lam, kelly tencor, they're running because of this, lisa su, remarkable job,

recommend the stock, and when she told me that, i didn't know what she was talking about, and i love it when they're right and a lot of these companies are hostage and i like to point out skyworks, not hostage, and why because they felt they should be foundry heavy, not foundry light. and intel unit foundry heavy and they went to president trump last year and it was an ill-advised way to do it and they should have gone in a group and they have a manager, the commerce secretary, going along, and i don't know if you're going to hear this but the 50-year chip bond and i'm not talking about doritos. >> and again, i don't know if you will get your 50-year bond as much as you want it and maybe it will happen but i think more importantly, and there was press on this yesterday, as we're pointing out, on some sort of national strategy, for chip, yes, it will come back to you don't worry. we will -- >> it is always about me that's what my wife explains to me all the time. >> we will be thankful for you

when we have chips everywhere. i like doritos personally. but i'll take anything >> i have the new spicy ranch at my house. >> you can't have more than one. once you have one, you're done >> back to the actual chips we're talking about, this is really important and a lot of people are focused on intel, strangely enough and i know you're not a fan, even now, but even a beneficiary of what could be some sort of national strategy here, given it is still the leader by far in manufacturing chips in this country. >> right. >> and will it be money behind it from the u.s. government? >> that's why you need the bond because otherwise no by the way the semiconductor company, i want to make this really clear, carl, the semiconductor companies are saying good things, and they like to make things where things are cheaper and we are an expensive country to make things. >> they compete against each other. how do you bring them together in this cooperative bring it all here >> you build a gigantic complex of fabs, you do los alamos of

fabs and rent the space and bring all of this incredible intellectual property, from the lams of the world, tim archer. and the intel plants, i went on saturday morning. >> there's nobody in there. >> i was the only one there, other than the guy who ran intel, a great survivor of the holocaust, amazing man and with the fab, the problem with the fab is it doesn't create a lot of jobs at once. but the industry has to get behind this. and more than making it look like corporate greed that's not going to fly. >> interesting taiwan semi has the thing in arizona? >> and taiwan semi's clients are prc, you have to be carol, a fine line and the president's approach to look at what to do with taiwan, it muddled the

water, but i understand he is right and what has to happen, we have to make it that the chinese are not in charge of our semiconductor world and the chinese order, they do just in case, and they order all sorts of chips and we do just in time, and if you look at where gm is, and ford, the stocks would be appreciably higher if we didn't have the shortage. sonos talked about the shortage yesterday. and let's be clear, and for those who are trying to figure this out who are customers, it takes 18 to 24 months and this is not a short term problem. and if you want to get chips, i know where you can get them, you have to pay up and it will hurt your gross margins do what skyworks did >> as the president said yesterday, chinese are going to quote eat our lunch, if we don't get it together, and i know -- >> they've been eating our dinner for ages. you got the wrong meal >> how much higher is general cho ranked than colonel sanders? >> that's why he's a general.

>> the colonel versus a four star. >> jim, a lot of news on the retail, reddit, gme trade, it looks like we're going to get both griffin and huffman testifying in front of the house. i don't know if you saw, charles schwab announced their january new accounts up 200 year on year, in december, it was up 75 year on year, and we're looking at trading volumes now, jim, that are rivaling the peak of the covid crash last spring. >> it's incredible i think the real issue will be traced out and dan schulman, ceo of paypal, he said last night, at 20 minutes and 36 seconds, in the unbelievable half hour talk, he dropped the bomb and said investments are where he's going, he's going stocks so then the question is he going on stocks, and is he going to buy robinhood? is he going to create a robinhood that has trust because robinhood has violated the people's trust we know that and the hearing is going to be brutal and the justice department investigation, remember, justice

department, when they investigate financials, it is not idle but ever since - >> but during when tony west was running that investigation, for the d.o.j. - >> he is doing a great job by the way. with uber, cleaning uber up. >> yes >> he has been there for a while now. >> but david, the hearings, and it is the s.e.c., from san francisco, which is incredibly aggressive, people know them as an office that you don't trifrle with, so i know they have what, they do have some people at robinhood that are seasoned s.e.c. people, but i got to tell you, the clients there, versus the clients at paypal. >> yeah. >> no. >> don't have it >> and the hearings if they come up will be very interesting. i think potentially ken griffin -- >> show trial. >> show trial among the rich >> david >> i will be very curious to see the question, the line of questions, yes because it's not as though he did anything wrong >> no. >> but they were - >> he just didn't manage his portfolio very well. >> robinhood.

>> i was talking melvin. >> griffin >> melvin. >> plotken and the questions about citadel and where are they in all of this. >> the $3 billion capital call that turned out to be less and people are still throwing money. these venture capitalists, they can't resist it. robinhood has been the top apple. some people are still downloading it and i'm cheering for people who use robinhood. i want them to have unfettered ability to be able to do what they want. but the decisions to close certain, or restrict trading, is not something that people are going to forget. and the trust has been violated. and the to rebuild trust in the financial world is almost impossible which is why i say if paypal wants to own this business, they will own this business >> guys, speaking of robinhood, one of the things that those people on the platform like to buy is spacs 37 minute mark of the show, really haven't talked about it i wanted to quickly review the week for spacs i don't know if you guys have seen these numbers we tried our producer and i have tried to

get them together in the right numbers. going with spac analytics. i think we had 30, what was it 37, 37 issuances this week raising $12.7 billion. now, again, this is, you know, our friends there, it's hard to keep track, there are so many. michael kline, who is one of the kings of spacs, churchill, he did six and seven, forget just waiting, just let's do six and then we'll do search you know, harry sloan's going to have, remember the draft kings, he's going to have a new structure, i'm told as well. i got to check with him, where he will be able to do more than one deal from the spac shaquille's got a spac you can go on and on >> true. and michael kline, he will fight on the beaches, he's going to fight in the fields, he's going to fight in the street, he's going to fight in the hills, and he will never surrender until we get the -- >> he won't.

of course. eight, nine, ten exactly, right thank for the churchill quotes >> love it. >> the underground >> yes, everyone should go there, that is the actual one. >> when it comes to spacs, so by the way, hundreds more, hundreds more are planned and will come public most likely, and we heard yesterday, the flying car spac earlier this week, i like to call it flying car, it is not really, urban mobility transport. another one out there as well of those but he says it is not going to stop. >> yesterday carl on twitter, i asked why is david killing the spacs and we're not killing anyone and reminding people if you early on in the spac, you make money and later on as research shows it is not necessarily a great investment and it is ridiculous to think that all of these companies can find companies to buy that are worthwhile because if they were, we would have a lot more ipos a lot of company coming as ipos. >> listening to you talk about it with andrew was instructional

before the top of the show, it's funny, you know, on bumble yesterday, jim, we had that huge surge of interest on the new issue and some viewers said look, this is why we're interested in spacs, because we're tired paying up on day one for a classic ipo. >> i can understand. that and the ipo market seems broken compared to the spacs but i like the idea you have to be vetted by the s.e.c. versus projections which everybody feels 2030 is the greatest year. >> listen, i think you're right. >> whitney wolfe herd, and people were unhappy but i was happy about it, a triumph of capitalism. >> you made that point many times. 2026, we're going to be measured at two times ebitda, is where we're buying this thing. 2026, okay, if you want to accept that, you can but with the bumble, you have to make more specific projections or not make them at all. >> right. >> by the way, guys, let's keep an eye on those share, given the performance yesterday, and its debut, jim mentioned of course,

the ceo, and we've just talked in general about it, but one thing i didn't mention yesterday was the success that blackstone has on this. it was november '19, when they bought the parent, or a part of it through the growth fund and just back then, jim, and of course, they have benefitted enormously as a result of that, having taken bumble public out of that company, right >> we were struck on what would happened, and padue is a slower growth and look at the growth here. >> say that again. >> they have two divisions at bumble and bumble issage incredibly successful company >> and blackstone throughout this has been a terrific company. very good company. >> and as you might imagine, very happy with it and reflects well on the female leadership that has come to the fore at this company. >> very strong company i believe in it. i think the model is the best in the industry and i think it is a fantastic

young growth company for young investors of the merry men time because it will be with us for a very long time and you have to wait for the earnings, obviously, it's well behind match, maybe three years behind match when it comes to that. >> finally, guys on the m&a front, i did want to mention this because we don't see it too often, lasers, everyone wants in on the lasers. and i'm not talking space lasers here, guys i'm talking about other types. but you may have seen it remember earlier this week, we talked about coherent getting another offer. >> oh, yes. >> lumentum is in a deal to acquire coherent and now you have more cash on the deal and less call it worth, worth 260 roughly before the open and the stock is down and we will take a look where it is trading, maybe worth 250, you can see what it is made up of 130 cash, it has been a long time since i've been able to say three-way. >> 78 bucks a year ago

and now 257? and they didn't like it at 78? >> there's something going on here in lasers and i will leave it to you to figure it out it has to do with 5g it has to do with autonomous cars >> and wanting to talk. >> or die. >> because of that laser. >> oh, yes. >> i remember that >> yes >> and what was the operation that he knew about >> it was operation -- >> go ahead, carl. you know >> operation grand slam. >> grand slam. >> oh, yes >> we pull this one out every, i would say once a quarter at least, right. >> of course you have to because goldfinger is an iconic figure and the mustang was in there, and mustang-e, how are you doing over there and mustang would be the first real challenge to tesla and i'm a believer and the bronco, you can't get one, sold out, chip shortage david, chip shortage. >> jpm has a good piece on how

inflation might change as travel opens up and maybe vehicle prices ease a little bit they don't really see the opening of travel at least changing, the inflation picture. we'll take a quick break and get to the bond report on the way out of here. treasuries, ten-year did get to 1.18 the highest since february 8th a couple of weeks ago. and analysts pointing out more worries about inflation. consumer sentiment at the top of the hour over in europe, we will keep an eye on the german, french, italian, ten-year yields and of course, dollar index peak, before we go to break. more "squawk on the street," back in a moment ready to take your immune support to the next level? nature's bounty is here for you. the number one herbal supplement brand has everything you need to help keep your immune system strong. immune support comes naturally with nature's bounty.

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u.s. exporters are crying foul as the price of shipping containers spikes. our brian sullivan is in charleston, south carolina, this morning, with an explainer on this latest trade dispute. hey, brian. >> reporter: hey, carl, i will try to explain it you guys like to talk about global macro this is the most global macro of all of the stories and it involves these things behind me. due even think about them. but guess what

when you can't buy stuff at the store, retailers can't get stuff on their shelves and peloton can't get new bikes, you have to think about it in a basic way here's what is going on in a normal year, it would cost 1500 to 2500 to rent one of these things to ship goods from china, to long beach, or charleston, south carolina that's a normal year then the container goes inside america, picks up soybeans or bourbon or whatever it is, and it goes back to the ports and then it is exports to china, or other parts of world that's how it normally goes. here's what is happening now demand from china is so hot, we are buying so much stuff from china, that the container cost guys, are now four or five or $6,000 and it is so profitable, for the shipping companies, that they would rather send the containers back to china empty, to basically get back in line, like that taxi driver at laguardia, than to put that container on the interior of the united states. which means, guys, that if you

want to ship stuff around the world, you're going to either have trouble getting a container, or you're going to to have to pay a lot more and exporters are crying foul where they're asking the government for help, because they want to sell soybeans and bicycles and whatever around the world, and they can't get one of these things and meantime, the shipping companies are just printing money. it's one of these things that we never thought about, until we do, and by the way, almost everything coming into the ports, guys, is tariffed but china has never sold us more goods at any time in history, and it's really disrupting it. >> the trade deficit, we'll point to that. it is absolutely fascinating, brian. i guess actionable who are the winners and losers beyond the obvious maersk and manufacturers that don't export at all i guess. >> you named the biggest one,

maersk, they trade overseas markets and jim probably knows about some of these companies, i did not. tex-tainer, cai, triton, american companies, look at the stock charts, by the way, they have soared. you also have some other plays i would an atlas air world wood, aaww, guys not recommending them. saying they are winning because, a, shipping rates are up, container leasing costs are up and the air carriers are printing money because if you need something high value, you are going to charter a plane rather than wait months for some of these containers. so those are some of the winners. jefferies likes names like zim international, a few like that, guys names we normally don't talk about. peloton wants to fix this because they want to sell you more bikes here is the greatest anecdote of all. they have got christmas decorations still coming into port the lags are so great, yesterday a shipment of ornaments, i am not kidding, a shipment of

christmas ornaments that was supposed to be here in november just rolled in that's the kind of backlog we're talking about. >> brian, it's such a great explainer of a big mac row trend that really only you can do when you get on the ground. great stuff. hope to talk to you later today. brian sullivan in charleston we will take a break expedia's ceo joins us at the top of the hour to talk about the jaurz and outlook for global travel when "squawk on the street" continues.

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let's get to jim and "stop trading." >> people got to wrong they sold planters, people felt they got 3.3 billion hormel, had them on last night up initially when they reported the acquisition. it's come down hormel may be the best performer in the consumer package good group. and it's going to take this asset, which is now the largest and ramp it. you will be eating planters everywhere congratulations for a fantastic deal >> all right

people talking about spam-flavored planters we will see what happens. >> i have the pumpkin spam i don't know >> you're a spam connoisseur, we know this. >> yes, i am i like it on a chip. >> what's tonight? >> okay. so i have decxcom, glucose monitoring it's conservative, a look at an opportunity. >> jirmm a minute or two before break. >> cannabis. >> we got almost, yeah, cannabis, we did not get to. i was going to say earnings 80% of the s&p is in theth 9% run rate and 19% upside surprise rate. >> it keeps happening. we know that dr. gottlieb, look at that number meg had them on today. they beat 953 million. people looking for 900

we are seeing over and over again gigantic beats and the beats are so large that you just think, wow, it must be a boom. remember we are in a strange time a lot of companies did very well because the great -- yesterday zillow was an extraordinary story to watch >> disney shares are down. not down sharply, but disney is down i note again viacom and discovery, those names that have had incredible performances up sharply yet again to the tune of well over 50% now, gains 55% gains for this year. but disney shares are down let's not forget when they were asked about reaching for direct to consumer drjts paypal is doing well i just want to warn everybody, you are going to hate me on twitter, beware of pump and dump schemes on cannabis stocks beware of them they are happening everywhere right now. there are legitimate cannabis companies and i really like

them look, i really think that irwin is doing a great job i like what canopy is doing. some of these companies are real please do not be taken in by the pump and dumps and they are happening right now. >> jim, good long weekend. >> thank you. >> see you on tuesday. jim cramer, "mad money" tonight at 6:00 p.m. another hour of "squawk on the street" is coming up after the break.

♪ good friday morning. welcome to "squawk on the street." i'm carl quintanilla with david faber and morgan brennan market continues to sort of march in place a bit the s&p around 3912 after a series of record highs for various indices during the course of the week obviously, the story remains earnings with disney and airline ceos meeting with the president. our roadmap begins with the disney earnings. big beat, 95 million disney+ subscribers. we watch the stock higher and settle back. >> pot investors come down from their highs. reddit fueled gains losing momentum. >> and new york city is

reop reopening indoor dining. the owner of cats's deli is going to join us later this hour breaking into disney quarter from last night, talk about the disney+ subs and then the parks, too, faring better than expected julia has more on it. >> yeah, carl, that's right. taking a look at the parks here, despite the fact that disneyland remained closed for the full quarter and other parks operated at limited capacity, the parks division performed better than analysts anticipated its revenue dropping 53% from the year earlier quarter now, disney estimated a $2.6 billion hit to operating income due to covid, bringing its total loss to covid to $10 billion over the past four quarters but ceos said that consumer demand is strong and that average daily attendance at disney world grew last quarter >> we have ample demand for our

parks despite everything that is happening with the pandemic. i think we have made a pretty big impression on our consumer base and pro pspective guests in terms of the safety measures that we have undertaken at our parks to give assurances to people that they should come in and bring their families, and we are very, very pleased with what we are seeing in terms of future bookings >> atlanta equities with an overweight weighting on disney raising the price target saying we believe the parks business is on track por it a materially better profitability as it emerges from this downturn we continue to believe the parks can see a strong rebound in 2022 and currently forecast $6.9 billion in operating income that year versus $6.8 billion in 2019 so cha peck referenced dr. fauci hoping there is vaccines for

everyone by april, saying that would be a game changer and would accelerate disney's expectations for the parks, guys. >> yeah, interesting my family just booked a trip for disney world as well i was kind of surprised to see, even though you can't pay for some of the extras, the tickets are still expensive for disney world right now. given the fact historically it is a profitable unit, when you look at the streaming business and the billions of dollars that going to be invested in that content pipeline, how key it is to the streaming story to see the parks come back and come back as quickly as possible. >> look, i think what's interesting, morgan, is there are a lot of families like yours and i think that's what cha peck was referring to disney is investing in these divisions. there was a lot of talk on the call about how they are taking this as an opportunity to continue building out some of the features at their parks such as the "star wars"-themed hotel,

other different things tat the parks around the world they are really investing in the parks right now and really investing in disney+ right now they will have over 100 new titles at disney+ this career. this is an area where they are not pulling back just because they do have the weekendness at the park for disney it's really full steam ahead in these divisions and just hoping that the parks can open up sooner rather than later. >> julia, when you hit your streaming target for 2024 three years early, what does that do to your targets for the next three years? do they try to raise that target in the future or not >> well, look, they did update their targets in december at that analyst day when they showcased literally four hours of content that is going to be coming to their streaming networks i think what's going to be really interesting, carl, is they are doing -- they are completing the international rollout of disney+ in the next

couple of weeks. at the end of february they will be rolling out to many other countries around the world, and once they have that exposure, once they are really in all these different markets, it's going to be interesting to see what the uptake is do they see a sharp surge in demand just from the sort of low hanging fruit, people who are disney fans, or can they really use some of these other assets they've that are not just the core disney brands to make sure that this streaming service has to be a staple just like netflix is around the world. so they have increased the streaming targets, but a lot hinges on what happens with the international rollout. >> yeah, i realize a lot hinges on the rollout i wonder the fact that they have 95 million subscribers just for disney+, plus hulu and espn, what that could mean in terms of pricing power or the possibility of ads i realize that the landscape is very competitive very quickly, but it seems like they are going

to have a very sticky base and it has grown faster than everybody expected >> a very sticky base. it's interesting they are not concerned about churn. a lot of people, including my family, subscribe for a year at a time you get a better deal if you do it a year at a time. but they also say that they think they have a little price elasticity there, they think they will be able to increase prices without impacting churn they, remember, have had great success people getting a free service through verizon to sign up and pay for it. so not really concerned about pricing there. and i think in terms of advertising, because hulu has advertising, disney+ does not, the more people that watch the more advertising revenue they will generate. so real economies of scale there. >> yeah, and yet still trying to get black window into theaters is going to be interesting to see if they can make that happen as well. thanks for helping us on the disney quarter

julia knows more -- forgotten more than i know about disney. regarding travel, shares of expedia down this morning after reporting a weaker than expected quarter fueled by the resurgence of cases and lockdowns seema mody with the company's ceo. >> thank you peter, good morning. welcome back to cnbc. >> good morning. thanks for having me. >> on the call you talked about how this travel recovery is going to be bumpy and not linear, but you pointed to an improvement in january bookings. as you look out to spring and summer are you seeing an uptick in bookings or are travelers holding off because of the slower than expected vaccine roult? >> we are seeing a lot of same movement you would expect right now, which is people are starting to book further out people are starting to book for the summer it's very use case dependent so the things we have seen be strong, like alternative accommodations in vrbo continue to be very strong and very strong for those windows,

domestic travel clearly seems to be the focus, and of course, as you would expect, with international being unknown still in terms of how people will be able to travel, what the rules will be. we are still seeing very muted bookings there, although there is plenty of interest. it's just customers are not sure what they will be able to do so we are seeing pretty much what you would expect, what all of you probably are experiencing in your own lives. we all want to travel. people are looking a lot, booking things they feel confident they can do, but in terms of broader travel, open, you know, truly open internationally, it's still pretty limited. >> on vrbo, it's been a consistent bright spot for expedia, but i am curious what else you are doing to grow the vacation rental platform and drive direct traffic and make it more of a household name i think anecdotally speaking, when people of home rentals they still think airbnb. >> yeah, obviously, it's market dependent. vrbo is not a global brand in fact, even in our strongest

what we would call our strongest vrbo markets we don't always use vrbo as the brand. what we are doing is investing heavily behind the brand in brand marketing. we would call upfunnel to attract direct customers it's been working extremely well we gained share in our strongest vrbo markets and we think people are just experiencing the use case to much more often that they are going to know what it's like to stay in a home, what it's like to bring their families, their large families, et cetera, and that's going to have continued benefits for us but we are pushing into it we are pushing the vrbo brand and other local brands where it makes sense. as i mentioned yesterday on our earnings call, we continue to work hard on making sure we can get our vrbo supply into all our brands so that over time we can expand our reach of our alternative accommodation offerings. >> you are investing more in vrbo brand yesterday you said that you are going to rely less will on google going forward

walk us through what is driving that decision-making, the shift away from google is that potential risk of not getting more demand as you try to build this portfolio? >> i don't think it's a big risk for us we have been in the google meta product for vacation rentals for a while. we concluded that right now it wasn't adding a lot of incremental benefit to us, we would be better off investing that capital into direct relationships. so we pulled out it's not google per se it's that the product we felt zbnt really provide tons of value for the customers, didn't provide tons of value for us as a user so we put the capital in other places and we will continue to do that across vrbo and the other brands, put the money in the most productive place to drive customer relationships. for now that didn't make sense for us. >> peter, it's morgan. with the airlines ceos meeting at the white house today to talk about a number of travel-related

issues where covid is concerned, you got the discussion around testing requirements, possibility of vaccine passports. what would some of these policies, the implementation of some of these policies do to travel >> yeah, well, i think it's great that they are talking about it i think it's going to take cooperation between not just industry and government, but multiple governments we are going to have to settle on rules and ways of trans acting this. our focus is making sure we help our consumers do it as seamlessly as possible if there are rules, if and when international travel comes back, which is hopefully soon, what will the rules be for going into a new country, what will you have to prove, what kinds of health passports will be acceptable or will there be a universal approach over time i stpt, like all things, this will pass and there will no longer be a need for this but i think in the interim period, as we try to restart

trfler travel and have uniform policies around the globe that will certainly help oil the machinery to get travel going again. >> yeah. i wonder about that as well, specifically international what are your expectations in terms of the borders actually being opened i know it's very difficult to estimate at this point, but how important will that, ultimately, be to your business and your ability to actually start to see some visibility into the forward months >> yeah, i think we have, you know, we have a broad-based business so we can do a lot of domestic business in many countries around the world international remains a challenging space, and i think -- so i think travel can and will continue to open even without international and we will see travel numbers improve as consumers feel more confident, americans will travel around america, european citizens will travel around the eu probably. in terms of broad long-haul

international travel, it's hard to say the vaccine rollout will not be answerly handed out, i suspect, around the globe we will have issues with people coming from certain countries. so i think we will get past this i don't know how many months it's going to take to a point where everybody who wants to be vaccinated has been vaccinated and everybody can make their own assessments of their health. but i think in the interim it's going to be bumpy and there may be channels between countries, there may be certain regions that can travel within a region, but i think it's going to be messy for a little while until the governments and industry figure out some policies that work. >> i just wonder as well, what about -- a lot of people have been sitting home thinking about traveling, maybe sitting at their computer looking at airlines do you run any risk of being disintermediated with people becoming familiar with how to book directly with an airline and compare on their own >> i think the reasons for

people like us are strong as ever typically, coming out of downturns of various kinds, consumers are looking to compare even more, look for the best options, and when they want to compare, we are definitionally the best place to go it. you can go go to 12 different sites to compare airline, hotel, vacation rentals, et cetera. during covid there has been the use case where you visit grandma in whatever town grandma lives in, you know the hotel near her house and you book that hotel because it's simple. that's different than deciding you are going to mexico or paris or deciding you are going to new york and saying where do i want to stay, where do i want to fly. so i think we see probably the opposite, that in the short term people will be coming to us even more, and certainly the industry, our relationships with the hotels and airlines have been strong and i think they fully recognize that consumers will be coming to us to find their solutions.

>> but, peter, i was curious with airbnb's market cap at $127 billion, around six times that of expedia, does that reflect to you this expectation that consumer shift from hotels to home is permanent, or do you expect customers to return back to hotels, which are primarily located in urban cities we know wh with the situation right now in cities >> i am a strong believer that consumer behavior awill rebound considerably that doesn't mean a lot of people haven't tried the whole home solution and be pleased with it and keep it in their set of options more readily than perhaps they had before. but i think consumers will be rushing back you just had a discussion about disney they will be going to disney world and staying at disney hotels, going to new york and staying in hotels. i think the hotel industry will come roaring back. alternatives have been on a great tear, airbnb has been an

important part of what's going on there, and we respect, obviously, what they have achieved but i don't think this is a grand consumer shift of how we all want to travel many of us don't want to go to the spa or go to the hotel pool or whatever it is that brought us to a hotel. or be in a central city. i think cities will come roaring back, that the notion that people are going to avoid cities for some reason makes no sense to me so i think we will see hotels come roaring back. and i think alternatives will be a big and important and growing part of the category, and certainly will be good for us with vrbo, but it's certainly not going to be a shift in the industry in my opinion. >> under stad. waiting for the big recovery peter, a pleasure to have you on peter kern, ceo of expedia. >> thanks very much. coming up, pot stocks continue to evolve weak after being lit up, oh boy, by reddit traders. those names, same names snuffed out falling for a second

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it has been a volatile week for cannabis stocks. best day ever for the mj etf on tuesday. worst ever on thursday it to talk about the dynamics in the industry, former senate majority leader tom daschle an advisory board member for clever leafs. and the ceo, kyle detwiler

gentlemen, happy friday. >> good to be with us. >> happy friday. >> leader, i hope you don't mind if i begin with you because i got to say, we cover the space pretty closely, and i would argue that the opinions about whether or not true senate reform is likely this year is really split where are you right now? >> i am very optimistic, frankly. i think that given the democratic majority in the house and senate, given leader schumer's comments earlier this week, i don't think there is any question that a number of pieces of legislation have a greater opportunity for passage that we have seen in any time in the past >> can you give us a better sense on timing and sort of what gives, i guess, not just the vote the momentum, but the realization that it's time to have a vote at all where does this stack in the list of priorities, because there are a lot of other things the senate is consumed with.

>> two or three things that give me cause for optimism the house has acted a couple times already on this important legislation. and so they have set the precedent. you see wider and wider interest in the states. a number of states have passed meaningful changes in their legislation and the laws that exist within the states. and then i think there is also an increasing realize skblags that also an can economic opportunity here given all of that, given the fact that a lot of this legislation has been the subject of hearings and greater bipartisan support, my feeling is that while it may not be soon, may not be in the immediate few weeks, sometime during this legislative session you are going to see action on two or three important cannabis bills. >> in light of that, kyle, i mean, when we see, if and when we see decriminalization federally in the u.s., you see actual legalization take root as

well, how quickly could coyou rp operations state side? >> depends how the regulations unfold in some degree, we could unveil products immediately we are one of the largest producers of cannabis outside the united states, 2 million square feet, right up with some of the other producers like tilray and aphria. i think we can launch immediately. if the regulation comes out in a more contorted manner with restrictions on imports, we might have to adjust i think we could be in the united states very fast. this week we announced our first commercial import of cbd into the united states. in some senses it's almost already beginning. >> yeah, i wonder what you think the regulations should look like i ask because you operate in places like canada we have seen challenges, perhaps unexpected regulatory-driven pitfalls in the canadian market right now. so what are the lessons that could be learned >> well, i think clever leaves exists for a simple reason that is to bring

cannabinoid-based therapies to as many patients and customers as possible. i think that the governments of the united states and canada should encourage project innovation as possible we are one of the few certified cannabis producers in the planet there is only about three others, by the way, who have the same capabilities and they are all in canada. if we can bring that expertise, high-quality production systems, i think the consumers and patients will benefit. so i am much -- i am in favor of a system that allows as much innovation as much competition as possible, and doesn't try to restrict cannabis and say, hey, you know, cannabis grown in california, that shouldn't be able to be shipped to massachusetts and, similarly, high-quality cannabis pharmaceutical ingredients from kilomete colombia could be sold at drug stores in the united states as well. >> leader, your own home state

had an interesting discussion about cannabis at the state level with the vote initiative and then some pushback from the judiciary. i wonder whether or not you think the courts are going to start to try to rein what ballot initiatives have tried to do. >> there may be that effort, but there is an overwhelming sentiment expressed by the voters in south dakota on recreational as well as medical marijuana. and so i don't think there is any question that over time these issues are going to be resolved favorably just as they have been in so many other states >> finally, kyle, as far as the price action goes on the stock, it's gone from basically eight to almost 20 in the course of maybe five or six weeks. i guess your reaction to the squeeze, what is your relationship with those who might feel it's a short or reddit long at this point? >> sure.

well, i don't think clever leaf has had a significant short interest at all. i don't think what happened is at all related to other short squeezes i think this is an example where there are fundamental barriers to institutional investors entering the cannabis space and at those barriers, as they are coming down or as retail investors realize the opportunity ahead of time, that's created an opportunity. clever leafs has only been public two months. some of other peers, aphria and tilray have been public for years. so they have built up a shareholder following, but clever leafs is relatively new i think that the price action in clever leafs reflects that our business is undervalued. no other company traded on the new york stock exchange or the nasdaq has an operating cost structure which is 90% lower than the other peers i mentioned. this is really more a market recognition of the value of the clever leaf's business model as opposed to some sort of blitz on the screen

>> well, certainly federal action would definitely ratify the move we have seen in some of the shares kyle, leader daschle, always good to chat with you. please come back. >> will do. >> i mean, fascinating when you think about institutional money on the sidelines it reminds me of the cryptocurrency conversation we are having, too. time for our "etf spotlight. taking a look at prime mobile payments etf up over 30% this year as the pandemic has shifted consumers and the purchases timeline up fractionally right now. getting a boost from the top holding paypal ceo dan shulman saying at the company's virtual investor day yesterday that the fintech giant is aiming to double its user base by 2025 and reach 750 ocs 2n customers. stk'up%. we are back in two

timeline we are back in two

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pandemic bliss why taking a break is more important than ever. the facts, the truth, "the news with shepard smith" 7 eastern cnbc ♪ ♪

i'm courtney reagan here is your cnbc covid update at this hour an investigation by "the associated press" found more than 9,000 recovering covid-19 patients were sent to nursing homes in new york state. that's 40% more people than reported by state health officials. the "new york post" reports an aide to new york governor cuomo said figures on the death toll and nursing homes were withheld. nbc news has not been able to verify the report. a cuomo spokesman says the state cooperated with federal covid-19 data gathering efforts. and nevada has laid out plans for easing covid-19 safety restrictions starting monday indoor capacity limits will be raised to 35% for casinos, restaurants and indoor businesses if covid trends continue to improve, limits will be eased again on march 15th.

and japan has received its first doses of coronavirus vaccine, enough for 185,000 people however, shortages of specialized needles means thousands of those doses may end up getting wasted. david, that kind of breaks my heart. back to you. >> yeah, not a good thing when that happens thank you. digital health company share care announcing a deal to go public via alan ma futuren's spac it values the overall company at $4 billion it's one of our spac focuses of the day. joining us is jeff arnold, the founder, chairman and ceo of share care a founder of webmd not a changer to cnbc's air. good to have you this morning. for those investors out there who are trying to wade through all of the different potential digital health offerings that are out there, how do you define

this company and across the board in terms of whether it's for the enterprise, the provider or for solutions to the consumer >> yeah, that's a great question i have been in digital health for a long time, since webmd in the late '90s. what's different here with share care is we have the technology to not just provide trusted information to people, but to be able to connect them to their doctor, to their health plan, and to their employer right to the palm of their person's hand. health care as you know is really fragmented. there is a sea of apps out there. what share care has created over the last eight years is build that one integrated platform where the data is interoperable, easy to understand and affordable for all. >> who is the core constituency here or are you dealing with all three. >> we call it b to b to p, with the p being the person how do we service the person on the platform as an employee, as

the health plan member, as a patient and as a consume earp. our go to market has been strong we have amazing clients in enterprise where we sell to health plans, like blblue dcrose shield plans we have 6,000 health system clients. you can also download us for free as a consumer. >> you are talking about fairly aggressive growth rate of 24% for the revenue, 27% for your gross profit over the next, let's call it two to three years. you get to 629 million according to your slide deck here and revenues in 2023 what's going to drive that >> i think if there has been a silver lining in the pandemic, which is, i know, hard to see, is digital health. this has become a must-buy for employers, being able to create a culture of accountability and give people confidence to come back to work that it's safe and to give them tools to build

resiliency for doctors, they are moving to value-based care so they need platforms like share care to manage risk. if you are a large health plan, imagine piecing together these point solutions for telemedicine or diabetes or for these various tools and share care, we become that one-stop shop we are 95% booked for 2021 so as we sit here inearly february, we have had a very, very strong january, and it's given you shus -- we are already selling into 2022 and have great confidence in the numbers based on the demand and diversified compliant base we present. >> they see an opportunity in, i guess, health security and digital therapeutics explain what health security is and why it would be important. >> yeah. well, you know, health security is the new cybersecurity so think of cybersecurity as protecting infrastructure against a virus. health security here forever

forward to make sure that we have the best practices in place to parole effect people against the virus. we create a platform, standard operating procedures we have deployed it in over 50 countries. that work has led us to start to deploy with states like the state of florida where share care is a vaccine assistant where you go to my vaccine .fl.gov and register through share care for your vaccine. we send you a text you fill out the information and we give you a qr code to show when you are getting inyour sho. the clinician uses portal to upload your digital card back into your share care application. we think it's amazing because it's making the process more efficient and it's given us connectivity with the person to give him zplilsy over time helping lower people's risk. >> talk about the process itself could you have gone public through a traditional route? you have been a company now almost ten years or something

along those lines. did you look at a number of different spacs? why go public in this way and why specifically with falcon >> we had a board meeting in q4. we had made the decision to go public many companies have gone public in digital health recently and got approached by a few different spacs. i started learning about spacs i didn't know a lot about it at the time i saul some really good benefits one is health care is really complicated. to have time to tell our story to investors i thought was important. we had a really successful road show 2 x oversubscribed the pipe. more importantly, we found the right spac sponsors. we had multiple offers and ended up going with alan nmuchin falcon because a couple of reasons. ala alan has amazing experience in capital markets. their success in draftkings and skills, you know, gave us the confidence that they could help

guide us through the process, get us public a little bit faster to hit the dance floor and be able to educate people or the power of share care. >> are you disappointed the spac isn't really moving at all this morning? >> i saw there were rumors a couple of weeks ago and it's gone up a little bit i don't know if that plays into it regardless, i mean, we have anthem to invest in this round as you know, represents 42 millions in the u.s. and the blues represent one in three outside of these great institutional investors we have digital alpha and we are going to pioneer this model of outcomes-based financing of how do we go from my health to our health as communities around the world are recognizing that they are going to have to invest a lot in share care type solutions to improve well being, increase resilience we are playing for the long term. >> as you should be. appreciate your time. >> thank you so much take care. ever the break, we will take

you down to sunny florida where we find, who else, our own jane wells. hey, jane. >> oh, hey, carl wow, it's beautiful out here the beach is wide open florida is losing billions because canadians aren't coming and the snowbirds who do come are being shamed back home and face new expensive restrictions. we will have that whene me ck wco comfortable homes. emerson's energy star™ certified sensi™ smart thermostat uses geofencing to simplify how homeowners manage comfort and costs. emerson. consider it solved. ♪♪ how homeowners manage comfort and costs. ♪♪ ♪♪

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welcome back canadians being shamed out of their yearly trips down south. jane wells joins us live from hollywood, florida, with, let's be honest, the best assignment of the day, jane >> reporter: oh, my god, i can't believe i am getting paid. here is the deal, morgan 3.5 million canadians come down here every year and spend $6 million since covid hit that's down 99%. those bold enough to come are being travel shamed back home by

fellow canadians how crowded would this broadwalk be on a normal february day? >> jam packed. >> reporter: stephen cline is with the local marriott. now, the border with can ada ha been closed for months canadians can still fly here, but few are. what is the difference in occupancy from last year to this year >> anywhere down from 30 to 50% occupancy. >> we are supposed to be at least 300 people we are 12 or maybe 13. >> i have pretty much gone every january, february or march at least once and sometimes twice for probably the last 20 years. >> reporter: now, jim buyers is a travel editor in toronto, skipping his beloved florida this year. he says most canadians, most trust their government whether it says don't travel >> well, to a lot of canadians going to florida, it's almost our god-given right. when that is taken away, it

really seems unfair and maybe a little bit depressing for a lot of people. >> reporter: now, for those who do come down here, they are now upset because they just learned with they return the government is going to make them pay to stay in government quarantine hotels for three days until they get a negative covid test. guys, they have to go back eventually or they lose their canadian health care back to you. >> it's such a quandary. i mean, it's interesting this idea of a god-given right, right? but it's my understanding also that some of the canadian folks that have migrated down there in the midst of this covid stuff don't necessarily -- that the restrictions on their travel visas have been loosened so they can stay a little bit longer if that is the case, i would imagine that is an incentive, no >> reporter: they are asking their provincial governments if they can extend so they can still keep their health care usually defends where you, 180, 210 days if you are out of the country longer than that, you lose your

ren din-d -- residency and healh care and that's a deal breaker. >> it's just not fair, jane. i don't know maybe we should -- new yorkers replace canadians, just come downthere. save us -- save a sip for me, jane >> cheers, my friend. >> chaers. jane wells as we go to break, morgan stanley expanding coverage of ev this morning quantumscape and fisker overweight look at what that is doing to those stock prices lordstown and romeo power underweight. you can see the stock prices reflecting that important call it's a 100-page report, worth read fg you are interested in the sector we'll be right back. i fg you arn the sector we'll be right back. n fg you arn the sector we'll be right back. g fg you arn the sector we'll be right back. i you are i the sector we'll be right back. f you are ii the sector we'll be right back.

the only sector town on the year may offer opportunities see what the pros are saying adgniocn.cumer staples on trinatn.bcom more "squawk on the street" coming up.

shares of affirm have been all over the map this month. about a $40 range since the beginning of february. down today following the first results as a public company. a loss of 45 cents, smaller than expected, but sales volume caused by the pandemic was a concern for online shopping. we are going to talk to max levchin on "squawk on the street" in the next hour, so stay with us

that welcome back to "squawk on the street." new york city reopening indoor dining today at 25 indoor dining at 25% capacity. a new york city institution and according to this foodie right here the maker of the best pastrami reuben. thank you for being with us. >> thanks for having me on >> you're reopening. what can customers expect to see when they come in this weekend are you still as you have been in the past a cash only restaurant >> we do take cards but it will look a little bit different. we're a little spaced out, 25% only about 17, 18 tables but still lucky compared to other restaurants in the city that

have much smaller footprints and can only fit one or two tables at a time. we had 25% back in the fall, so we know how that works, temperature checks and screening at the door, order at the counter. you can see we have some customers in here. but, yeah, come on in. >> i'm curious, would you ever consider taking bitcoin? >> absolutely not. we're a 133-year-old deli. we're not that modern. >> fair enough so at 25% capacity how sustainable is that? how long can you go with that at that level >> like i said, we're lucky compared to others given the size of our footprint. we have a large dining room. i think, though, we are the exception to the rule. i think 25% is an industry wide killer and i understand there are health and safety risks and i

don't think any restaurant owner wants to put our staff or our customers in any sort of health risk, but from a purely business standpoint it is certainly challenging if not a death sentence for many businesses >> trying to find some silver lines here in this horrible period, certainly as well for the restaurant industry in new york, is there anything you've had to do over the last 11 months that you will continue to do that's opened up a new revenue stream that maybe will end up being a positive when we're past that? >> yeah, absolutely. that's a great question. one thing that we focus on really hard was our website and focusing on bringing the customer experience to your door the true katz experience you can't make it to the lower east side, so how do we bring it to you whether it's local delivery, which you see behind me, pickups through our website, or shipping -- nationwide shipping -- all across the

country. it's something we've done since world war ii people in the army, like a true new yorker we know how to ship food we've always done that now we just pivoted really hard at the start of the pandemic, bus boys, dishwashers, and when you don't have indoor dining there's no need to wash dishes instead teaching them how to pack mustards and pickles and put that into a form that can be shipped across the country and that has grown tremendously. and we really hope that continues once all is back to normal >> yeah, well, i'm curious about that you have been there for so long. when you walk around your neighborhood, what's the carnage like when it comes to restaurants? what are your expectations about who will make it and who is already gone >> i think a kind of common refrain you hear a lot now is the pandemic sort of exposed certain things that were already

there. and i think with some restaurants that's perhaps no difference for some restaurants that may have always failed this just sort of expedited the timetable. but for others this was a real shot in the gut. this was horrible. it's not an easy time. it's not easy for the entire industry, hospitality industry it's not easy for any industry unless you're amazon, you're losing money this year it's tough we're all hanging on for dear life and hope to make it to 2022 >> jake, i want to go back to the delivery infrastructure for a minute investors have been really hot on some of those third-party delivery operators the fact you decided to do it in house, break down the economics for me and why you did it that way. >> any of those third party companies take cuts that are -- well, everyone has their own opinion on it. from the opinion of a restaurant operator it's egregious and it's offensive. so we don't want to give those

fees for something we're already doing ourselves, that we can do ourselves. and i understand why you would need that capital potentially but we're lucky our volume was high enough, our customer base is loyal enough and we're, yeah, built the bullet and built a giant factory a couple years ago and it's paid off. we've been lucky we haven't actually laid anyone off during this pandemic and i'm pretty grateful for that. >> that's amazing. i'm also curious not just what you've been able to do but what you've been willing to do. there must be a reason why even in the depths when this kind of looked -- when we were very thin on hope, that you didn't decide to just roll up the model and do something else instead what led you to commit to not just the city but to what you've built over all these years >> listen, you have to because you have to. you put your head down and you

go forward you take it one decision at a time when the pandemic started, we immediately started giving out soups to the neighborhood, to low income and senior citizen buildings in the enabled we gave -- we would serve something like 30,000 meals to all five boroughs and different hospitals, to workers, frontline workers, and it's something that was not a question, something we were going to do because we had to because a family business or any business i truly believe that you have to take care of the community. the community takes care of you. you have to take care of them when they're in need so we just put our head down and we do it and when there's shipping and it's a pandemic, look, this is our second pandemic technically for katz's. my first make it up as we go, i guess,

make the best decision we can in the moment without losing touch with the nostalgia and the tradition that's truly at the core >> yeah. of course the first pandemic you're referencing between the 1918 spanish flu jake, good luck this weekend we're glad you're reopening indoor dining and thanks for being with us. >> thank you for having me on. i really appreciate it >> that was great. before we go, take a look at shares of bumble up more than 11% today. the dating app closed up 63% yesterday on its public debut. we'll talk more about that on "squawk alley" in a moment as the s&p goes green this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market.

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