degus. >> coresite. a data center real estate investment trust is a 4% dividend yield >> kerry >> o' reilly auto parts. we had more parts for cars >> okay. have a good weekend. steve, quick name. >> vuzix >> thanks. the exchange is now. thank, scott i'm john ford. here is what's ahead it's a tug of war on the street for the future of the tech trade. who will be left standing. we'll ask a five star fund manage who are is up more than 100% after the pandemic low. after the drama ending with the company pulling its ipo, wework is going public through a spac the sweet sound of sales defender ceo will talk about the massive boom in instruments.

we begin with today's market and the chart that looks like a ski slope. >> there's no snow left out here hopefully no more for the rest of the season. k snow flake shares are moving to the downside but up about 5% today. the dow, the s&p and nasdaq, they are over moall moving with some green on the screen it's out performance and defensive more economically insensitive name, if you will like real estate, like consumer staples. interesting move and then let's check out this big stock here. john, wework going public.

it's up 10% today. since it went public, its ipo price was $10 a share. again some sbregs moves here apple is down 16%. netflix and amazon about 10% more than doubled since the pandemic low last march. it's still up tremendously over

a period of time how do you decide? >> thanks, john. listen, we seen the pull backs many times over the years. everybody wants the market the tech market to go up into the right steadily it never happens that way. you go up. you plateau sometimes. have to look for opportunities the market is up a lot we're seeing plenty of stocks that offer 20% long term returns. people are probably thinking in weeks. what's long term >> we're not thinking of weeks at all i'm talking about four to five year returns >> how do you evaluate that kind of potential we were just showing the snow flake chart. it's back to levels where it

was. maybe even below after that -- it was a block pbuster ipo it was trading above the expected range we're focused on insflnovation d secular growth. we do price work using long term imme medium or average multiples. that's how we look for stock

>> the name is not zoom but i guess that's a good thing. >> when you see large markets like this, the shift from legacy equipment base communications to what they call digital unified communications the combination of voice, video and messaging you're not only going to have one winner, you'll have multiples we have seen how much value sale force has created. more importantly they have partners today that account for half of the world's 400 million legacy seats and these partners are selling exclusively to shift the customer bases over to the new digital communications

we see maybe 30% revenue growth and expanded free cash flow margins. >> how do you decide how to value companies in this space? you could do air bnb you have trip adviser. ha makes an individual platform or special in way that's going to give you good prospect. >> it's the world's largest travel platform. it has about 400 monthly users in are recovery plan on travel we have seen what subscriptions have done with amazon prime and online shopping.

saving hundreds of thousands even if you get a small percentage of that 450 million dollar base, say ten million yuszers adopting over time, you have significant growth. trip saying today that the annual cost is $99 many of the users will save much more than that on first vacation we think that's an exciting long term opportunity >> thank you >> thank you very much >> if you're looking for more tech names to buy, web bush analyst says it's the golden age

of chip stocks and picked five names to add to your portfolio retirement savers using 401(k) plans increased the amount of money they were saving kevin joins us now ceo and founder of guideline good to see you again. you've been through a lot since we first sat down years ago and you've been building this company. is your sense that maybe a sense of thrift set in for people who have the accounts and wanting to be ready for future?

>> i think it's a bit of everything happening in pandemic now. we have seen small businesses double down on real benefits so away from the office perks and more into meaningful benefits for the future of employees. we say a pull back in q1 and then acceleration savings in q2, q3, q4 it's been really encouraging i think a lot has to do with people working from home and saving money overall and having retail space bigger tax plbalans available. >> this is happening a t the same tame we have seen a boom in retail trading

>> i think it can be different people but not necessarily i think there's a lot of capital in the market. a lot of people have excess income now with the stimulus in our eco system of those 20,000 small businesses, we have a lot of professional services we're much more concentrated in professional services. these people are getting more and more real benefits from their employers and they are using that and have that cash flow to invest in both 401(k) and retail brokerage like robinhood. that'sseeing. >> you're expanding beyond 401(k) what is the strategy and what, if anything, have you learned in particular over the past several months about whatnot just the businesses but those participants within the businesses that are your customers what they'll want and

need >> ease of use is the number of one driver to our platform people don't want to necessarily go through a lesson on,000 invest what they should be investing in, how much they should be deferring in their paycheck as we mature from a 401(k) company to a retiring platform, we will be adding sep ira. they want a metric know they are on track that's what we aim to provide in 2021 >> why aren't you going public by spac? >> i'm running away from spacs right now. >> i know your background being a military kid and building

businesses you're a little frugal chasing spacs isn't you thing? >> i'm definitely frugal i think there's lot of options for capital and funding now. i think the pressure of a young comp company, we're 200 people. do we need the pressure of being a public company right now, i don't think that's necessarily a good thing for guideline i think we can do a lot with the capital we have and the capital is is easily available to us >> all right like that long term focus, people need to do that kevin, thank you >> appreciate it coming up, the perfect storm. we'll look at the impact the suez canal blockage could have on prices you pay for your next outfit resell for sale. thread up going public with a big valuation but small profits. actually, no profit. we'll look at where you should consider getting in. machin

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. an attempt to refloat the ever given container failed.

it's still stuck in the canal. it will be felt everywhere and soon right now shipper have to reroute. it's bad for retailers who are seeing supply chain shortages and to make things worse stimulus check vs been hitting bank accounts. th they are expected to give the sector a boost but what will people buy it will create the worse case scenario in the u.s. that couch you ordered, you could be waiting three months. >> how long lasting is this effect going to be if they got it dislodged this weekend, is it still going to be bad? >> thanks for having me. even if they were able to get it

done and dislodged this weekend, which i don't think they will. i think it will still be another 7 to 10 days before they make any progress, the ripple effects are already starting to happen they are happening globally. we have already been going through marathon of e-commerce oe ordering for the past 9 to 12 months there's already heightened ocean freight rates. global slipping shipping is exn shortages are throughout the world. this is really a domino effect that is start dog have an impact in increasing delays for consumers in europe but this will impact the u.s. because these containers all have to go back do asia and those same containers are then used to import goods to the u.s. and to europe.

>> it's kind of good for others who can prioritize their highest margin items and the customers who are so big they have relationships, they can get their chip prioritized are there certain retailers, certain players in the global logistic market that will get their supply first and charge more for it. >> i think any importer, any retailer, any company that has options they will be the ones that will benefit the most.

>> we have to think about that air lifting a couch is a lot more expensive than an iphone. >> absolutely. we have clients running out of inventory. some of our clients are out of their top selling skews or expecting inventory be completed by may even before the canal, a lot of companies were preparing for back orders. this will make the situation worse. >> the pricing on air freight profitability, i don't know. is that going to be seeing a boom over the next maybe for the

rest of the year >> the e sitquations of en when switch from ocean to air are high because it's taken so long with the delays and this is before the suez canal issue the lead time had been extended for so long. that equation doesn't exist in a non-pandemic time but the numbers are constantly moving now. it's moving in favor of a lot of companies pivoting to air

fright. >> we're talk about fixture, appliances per new home construction i was talking to an importer they have been waiting for a cnc machine for months this is absolutely going to delay new home construction even more than it already has been. >> bryan, thank you. >> thanks for having me. coming up, a sweet sound the music instrument industry boomed as lockdowns forced people to stay home.

we'll speak with the ceo of fender about the trend and whether he sees it continuing. one stock went from being lo thangts&p performer from the wso vi i worst week ever that name is next. et and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity.

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those still on track for another weekly loss. materials, energy and technology are your leaders today utilities and communication services, the only two sectors in the red here are some of the movers this hour shares of viacom cbs lower stock down 40% this week on track for the worst weekly performance ever shares are lore. the ev maker suspending production at one of its factories for five days due to the global chip horshortage clie chinese tech stock vs been under pressure down today. ten cent seeing the biggest dec decline. now let's get to rahel for a cnbc news update >> the white house says that

president biden is worried and reviewing options. that's after georgia's governor approved d new voting rules th restrict absentee voters the law will help restore trusted elections but critics counter the rules are designed to help republicans by making it harder for people of color to vote daylight revealing the extent of damage from severe storms that hit the southeast last night killing six people. that drone video is from alabama. on the news tonight live coverage as the threat of severe weather in the region continues. be sure to watch that. in the skies above the pacific nort northwest, a s.epectacular show larry mcmurtry is dead at age 84 cause of death has not been released back to you. thank you. coming up, has wework turned

into a big post-pandemic play. it thinks it has a leg up in the very well market and chinese consumer are putting pressure on number of retailers. it's time for today's show and tell we show the chart and tell the story. today's chart, infrastructure stocks seeing some nice gains >> we got to think big we got to have an investment that will support the next generation it's got to be transformative. i think the republicans and democrats alike see the need for that ♪♪ ♪♪

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time to catch you up on a few stories that should be on your radar first up, wework after a botched listing plan that kind of imploeded in 2029, wework is going public through a spac the company will merge in a deal valuing the company at $9 billion, including debt. that's far cry from its peak

valuation of 47 billion. investors were concerned about the business model, founder's management style bullish on the business now. robert, i remember we were talk about wework a couple of years ago. >> it was company that had billions in recurring revenue. it could be 50 company in the future it's leaping into a gigantic space which is market leader in tech space it's going to be trillions of dollars in terms of total available market wework is the leader in the space. it has an incredible build around the business. >> robert, we were talking about this a couple of years ago you were skeptical about wework and it turned tout be right. now it's different, maybe. 9 billion dollar the commercial real estate is looking way different. probably companies don't want to commit the way they used to. is this is a different situation

now? >> it is different. the issue is and i did a lot of reporting on this, back at the peak of the commercial market they took a lot of long term leases at ten-year periods at very lhigh prices. i'm sure they were able to renegotiate some of those during the pandemic but those are fixed costs that are not competitive in today's market and in place like new york city, which is one of their most important markets, you have 68 million square feet of empty commercial space. the most vacancies in 26 years you're looking at a company

that's got ten-year contracts at peak prices and a commercial reality market that's getting flooded with space i just don't know what their cost advantage is in that market >> doesn't sound like you think it's changed dramatically. i keep hearing from the upstarts that they are interested in physical locations maybe different from wework's market but still speaks to you how the landscape is shifting. >> it's so funny you bring that up i'm brought back to that lord and taylor deal with wework. how basically sold it to wework. look, i think the interest in real estate is going to be something that's going to be

pretty flexible and a moving target after the pandemic. whether it's retail or not yeah, of course, i think we'regoing do all look for new ways to work robert brought up the long term leases that wework had think about the long term leases that other businesses have even if they might want to take advantage of a flexible work space like wework, can they? think about the leases they are involved with for a period of time talk about the business model and the valuation. i know it's come down. >> tim, would you buy a wework what would it take >> it's a very smart group of investors and a different structure. it's a different capital stack i would push back on there being there incredible mote around the

business i'm not convinced that the work from home dynamic is such that you can't see people following through. the unbundling of the business is something else that they are arguing is a positive here and tactically what the market is giving them and it's good for them i'm not sure it is i think it's lower revenues per month. >> all right that gives me a lot to clue on let's turn to the big day due of the day. thread up is up. popping well above its ipo price of 14 bucks. the stock jumping over 28% boosting the kmaen'scompany's vo just oifr a business thredup has never made money

>> that was the very first question we had for the ceo. they had to list that in the risk factors of the s1 they might not be able to get there and they might not be able to map intain it. it's something to pay attention to the competition is fierce. we know that people are going after value. it's not the only seller in the resell game. you have posh mark and the real real and a number of others. the models are a little bit different but if i'm an investor, i want to go after someone that's profitable and i'm not, we're not allowed to be here i look at it a different way i know i'm a risk averse person. i wonder if tim thinks it's valuable or if we play game of

would you rather i'd be more than 3.2 times a month buyer there. i'm not loving 24% growth for this kind of multiple and it's a sales multiple it's not an ebitda multiple. this is the dynamic you've described that i'm most worried about. the growth isn't really there. the ipo baa nan sa and year over year numbers i don't think are relevant i think those dynamics -- until those change, there's more

coming >> there's a lot of attention in online luxury during this period i wonder if you think certain companies have more of an advantage than others? >> i do. i think there's a huge opportunity for pre-owned luxury you look at rebag, stock exfor sneakers if you can buy a really expensive daytona and hermes bag and know you are resell it, that's great for the luxury brands and the secondary market. i think it's a little bit different and perhaps a bit more personal with clothes and maybe not successful i do see that broader second hand hard goods luxury market as a huge opportunity going forward. >> okay. now, western brands coming under fire in china. over the past week chinese

online p activists are joining call to avoid using cotton where the chinese government is waging a repressive campaign against the uyghur minority muslims there. they are digging up statements from months ago to fan the flames we see this upgrade in nike. do you think there's a sense this is temporary? china overall has an incentive to look like it's welcoming a foreign investments and brands >> i think there's been a lot of pressure this is another one for nike who grew 50%

the things you're most worried about are the valuation. this is north of 40 times trailing 60 times. the innovation there and i think the probable on digital sales, i like nike. i am worried about this in the short run. they were very conservative on their guide. >> robert, most interesting thing about this to me is that the play book in china seems to be to try to get the companies to pressure the u.s. government to change its stance on the issues it was supposed to work the other way around the u.s. was supposed to have these companies that were going to pressure clie that to change its system how critical is this >> it'll really critical what makes it critical is this whole revolution we're seeing

among consumers to buy what they value. they want to support companies that express and reflect their own values there's pressure from the western and american consumers of nike to take a stand against what they see as human rights abuses. nike could have chosen to not make a statement on this at all which would have been the easiest thing to do. they were probably pressured by consumers in the west to do that i think we'll see more and more of this. not just with nike but other companies. >> i'm still remembering the colin kaepernick stand they took it doesn't take a lot for them to take a stand. the athletic is reported in

merger talks with axios. wall street journal reporting the talks are part of plan to build a larger online publishing company that could go public through, what else, a spac blank check companies have become popular in the media industry and over others as path of market. buzzfeed, group 9 are two other firm exploring this option. i wonder if this means there's dangers over next couple of years. >> i mean, i don't know how there continue be dangers when something flourishes so fast, so quickly with a number of different companies and investor that are buying into the blank check companies. i'm risk averse. there's no way i would invest in company that's a blank check

company that i don't know what the strategy is going to be, what the company is going to be. i know in this house we have a subscription to athletic it's something that my husband really likes he doesn't go to espn.com anymore. he said if i can get axios on there ad-free too, that's great. there could be benefits as there always are to consumers when competition heats up when it comes to the spac part of the deal, i'm out >> have the economics of media changed enough that the companies have a shot? >> i think so. i do invest if spacs if you have great ideas and spac operators that have proven

success there, those are good for formulas the crossroads is where media has taken the big step in the last couple of years there's great examples of companies not only convert their content into a bigger platform they are in high demand and i think there will be a lot more of this. these are very distingctive and great content creators i do think it's a great story. >> far be it from me to bet against ambitious media. good luck. thank you robert frank, courtney, reagan and tim that was rapid fire. last of the week still up, it's no secret it's been a rough year for restaurants. as more americans get vaccinated an reemerge from their home, one part of the industry is emerging as a bright spot we'll dig into the names, next you can watch us on the go the exchange will be right back. machin

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. welcome back as the country began to open in the past few months, a lot of americans headed back to restaurants. some casual dining stocks got fat. brinker international jumped 30%. darden is up 24% the sector is far out pacing the pizza trade that dominated in 2020 have some of these stocks kind of shot up too far, too fast, put on too much weight let's turn to the technicals and dom. >> they put on too much weight just like i have during the pandemic and i'm sure a lot of other folks have too massive gains. even bigger than the ones we just showed you. 273% these both get cold stars. they both hit record highs in

trading today. the average price over that span darden restaurant s now roughly 43% higher than its 200-day average price. a big plooumove there same kind of story there even more impressive it's now trading roughly 73% higher than its 200-day average price. a big move red robin gourmet. it's now trading roughly 126% above its 200-day average price. the restaurant trades very strong, very quick to the upside the question is how much longer can it last. that kind of momentum cannot be sustained over the longer term back over to you >> heartburn, perhaps. we shall see demand for all things music

has cranked up to 11 during the pandemic ceos of fender will join us to discuss record growth, up next as we head to break, it's women's history month. we're spotlighting some of our cnbc reporters here is leslie josephs on the best advice she's received >> one of the best pieces of advice i got was to be per sis tent and if somebody doesn't call you back, call them again if you're applying for a job, e-mail that person be proactive you're interested in a job, network before there's a position open. don't take anything personally if somebody doesn't call you back

with a bang, energy and change came to every part of our universe. seismic or small, it continues. change is all around us. shaped by technology and human ingenuity, we can make it work for you and your business.

pandemic put concerts and live music events on hold but people spent teem in lockdown locking to be rock stars in their own right. for more on how that's helping the industry, i'm joined by andy mooney and chuck cirak good to see you. chuck, let me take a step back

first because i could have sworn just a few months ago guitar center filed before bankruptcy but looks like in 2020 you guys did quite well so talk about strategy and tech and prerp ration and this distribution center that you had set up even before the lockdown. >> yeah. thank you. it is nice to meet you we are fortunate to have a great year we had just built a brand new 600,000-square-foot distribution center and had product in stock and while many of the other manufacturers or retailers and amazon shut down for a while we stayed open and ship a lot of boxes and i don't wish ill will on guitar center but the model is different than there was a period they were shut down and definitely hard times and we were able to keep shipping products to customers. >> andy, you were working on a

tech strategy with introducing people to instruments and deeper into that and you kind of put your foot on the accelerator in the pandemic offering some of that for free. what is the long-term impact of that >> we brought about a million incremental players into the industry and many of nose, in fact, almost all of those brought gear across the network. which was fundamentally good i think for everyone in the industry and already starting to see many of those players start to upgrade and commit to the instrument for life which is what that was always an objective for fender play in the first place. >> andy, i was under the impression, perhaps mistaken, today's youth have a different sense of music maybe not acoustic but digital stuff. is that wrong? >> yeah.

it's wrong the industry, the fretted instrument industry had been growing high single digit, low double digit for the decade prior to covid what's happening post-covid is that growth rate rapidly accelerated and as chuck is well aware the buying process migrated to online what we have seen post-pandemic is a really accelerated growth trajectory and we had a record year last year but we are going to grow something like 35% again this year but the big challenge for the industry is finding capacity to keep pace with demand. >> that's good news because as we talked about years ago i play acoustic guitar. i would like to play it even more than i get a chance to. chuck, what is the purpose for which people are buying this gear do you have a sense on whether it's more live performance

versus digital poierformance versus being on youtube? has that affected what people are buying >> it is all about that. we had 800,000 new customers last year from people wanting to learn to play instrument, guitar or keyboards, they had time to do it and got stimulus checks which helped do it and we were selling equipment fur people to broadcast to facebook or youtube. lots of churches and schools wanting to produce services or school online and we just saw a demand from everywhere but it was not for live everybody stayed home last year but as andy said the business is still really strong, even third month of the year now and up 40%. we have seen -- expected 200,000 customers to come back in the first year we are already at 100,000 and we are 2 1/2 months in. >> are you seeing the stimulus effect over the past few days,

couple weeks >> absolutely. we can break the markets down into two segments. one to encourage committed players to buy new gear. and we saw that in spades recently with the launch of our american jazz master. >> wow. >> the other big initiative to push is to bring new players in generally to the front end of the market. >> well, yeah. >> that's increasingly the big move. >> beautiful music coming out of the pandemic is a good thing andy, chuck, thank you. that will do it for "the exchange." all day long. so when something happens that could affect your portfolio, you can act quickly. that's decision tech, only from fidelity.

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which saved investors over $1.5 billion last year. that's decision tech. only from fidelity. good afternoon, everyone welcome to "power lunch. along with rahel, i'm tyler. rahel will be with us in just a moment here is the 2:00 takeout for the record on this friday. we're going to start right now with no more takeout after a year of eating in, people are ready to dine out again. restaurant stocks are moving up. they're soaring. and travel is, as well we are tracking the reopening trade in the economy