media. banning companies from banning anyone details straight ahead it's tuesday, may 25th, 2021 "squawk box" begins right now. ♪ good morning welcome to "squawk box." i'm becky quick along with joe kernen and andrew ross sorkin. the dow yesterday was up a half percent and the nasdaq was the big winner up by 1.4% what's wrong, joe? did i lose you it was up by 1.4%. you can see there are green arrows again dow futures indicated up 100

points nasdaq up by 80. s&p up 14. guys, if you thought last week was the panic, let me tell you how it turned around nasdaq is about 3.8% from the all all-time high. the s&p is less than 1% from the all-time high. for all that panic last week, you are still looking at the markets right near the all-time high treasury yields this morning the 10-year yield at 1.593%. just in the very tight range we have been watching for months at this point let's look at the "squawk stack. andrew, you complained about the price of gas >> yup >> aaa gasoline. average national price is up

$1.08. it is up 15 cents in the last month. that is in large part because of crude. crude is lower this morning. $65.62 it is on pace for its six-month up out of the last seven you see that inflation continues to creep in there. places where it is coming back is copper prices down. pop per is still up for the month. lumber is down 2.4% for the month. ethereum and bitcoin turning around yesterday ethereum up 31%. bitcoin up 17.5% each having their best day since all the way back to december in 2017 in the meantime, becky, we are watching the price of bit bitcoin. maybe that should be all we

watch. i don't know i don't know what we should do with crypto because we talk about it too much. are we talking about it too much it jumped after tesla ceo elon musk tweeting he was having active discussions about the sustainability spoke with north american bitcoin miners publish current usage and ask miners world wiwide to do so. within 15 minutes of the tweet, it has jumped and now fallen below the gains. michael followed up on the tweet and he hosted a meeting with musk which led to a council to promote sustainability of course, more than half, more than 60% of bitcoin mining takes place in china there is still lots of questions about sustainability there frankly, sustainability in the

united states. there was a story, guys, a coal mining plant put back up just to mine bitcoin it's a hard one to fix any time soon joe. >> using energy for a lot of stuff. grid gets powered by coal in a lot of places. we are not off it. we are not out of that situation and bitcoin is a small part of the global use of fossil fuel. amazon is nearing a deal to acquire mgm studios. also tv series as well as the home of james bond mgm is owned currently by a group of private equity.

it owns a number of reality shows including "shark tank" and "survivor" and "the voice. it zowns the studio behind scripted shows like "handmaid's tale" and "fargo >>talk about the scramble. mgm was one of the last men standing, you could say. if you were looking for a belle to take to the ball. you have apple with deep pockets that could be looking to spend cash and other media players thinking what next >> i don't know. if you listen to john malone did you read that piece? check it out

and comcast. maybe. comcast, warner media, discovery. i can't imagine it would pass regulatory muster. who knows what the world will look like? is that the name warner/discovery warner media discovery >> probably. >> that's who we said yesterday. >> is it warner/discovery or warner media discovery >> i think it is warner/discovery don't pohold me to it. >> what else could you do? discovery? >> no. that would not be great. in the meantime, ron de santis signing a law to give the state the power to penalize social media companies it escalates the fight with the

tech industry and the republicans. the law to deplatform is the first of the kind in the united states and may be a model for other states to follow although one argues the law is counter to the first amendment the law says that social media companies may not permanently delete or ban a candidate. 14-day suspensions are allowed over the law facebook, twitter, youtube and others blocked president trump after the january 6th attack on the u.s. capitol by his supporters they argued president trump violated the terms of service that barred the promotion of violence this is interesting to see how it plays out i don't know what those pl platforms will do. is this something where you block or don't delist the people in the state of florida? joe, you talk about your

gambling app knows if you are in new jersey or new york is that the future of these social media apps or do they say they will not play in these places like australia with the concern before when australia was moving to put laws on. we will not do it there? >> to sue, i don't know how common -- i guess people, you know, are public figures like president trump, you see it. i can't see the average person trying to sue. can you? go ahead and deplatform me sometimes you are doing me a fa favor. >> this is specifically for political candidates. >> the question i have about all of these things is if states decide to make up their own rules. this is like car emissions california with its laws relative to other states it make the whole thing more complicated rather than have a national program it is interesting to me,

particularly for the state of florida, because miami has tried to become the new mecca of technology they want to attract a lot of technology companies and social media companies and other things to the state it gets complicated pretty quickly. >> don't go too far down that road, andrew >> you see states go state by state. arizona, by the way -- what do you say? >> that's the way we do it with most things, thank god we don't want a national rule. >> focus for a national law because they want more guidelines to follow on this the argument for free speech is an interesting one you can't make us take these on. then i was thinking about it it is the same thing with broadcasters equal time for different

candidates if you put on one candidate and give them time for a broadcaster, you have to give another candidate equal time i don't know how that would play out. i can see all of a sudden the technology companies say yes, regulate us. come up with a national law so we don't have to do this state by state. >> if there was a national law, we could not be number one in new jersey for taxes >> yeah for us. >> andrew, you had the early call we begged you to join us you don't like the factories on the turnpike this is in the journal new jersey is number one across the board >> in terms of taxing. >> in terms of state taxes. >> yes in terms of how much you pay over your lifetime. >> say it ain't so, joe. >> it is nice. it is the garden state whoa i read that and it was -- you know what? i love it. i love it.

andrew, maybe you do want to move out there that's where you really will feel good about supporting the governments out here >> those numbers were based on states per states. i think new york city might win when you throw in new york city taxes on top of state taxes. >> maybe >> it's close. new york, new jersey, connecticut, california. maybe chicago, illinois. that's where they will get you. >> taxachussets. >> yeah. new jersey is number one. check this out shares of lordstown motors plunging this morning. the company slashed guidance for the year and said it would need to raise more capital. was that a surprise? the ceo said the company has a challenge as they prepare to begin the electric pickup truck in september it now expects to produce at best half the number of vehicles

it forecast. citing higher spending on parts and equipment and shipping costs and third-party engineering. that is basically everything the company receives additional funding and could step it up lordstown went public by spac. s.e.c. is looking into claims that lordstown used fake orders originally to raise capital. that stock is $8.09. below the original spac itself joe. >> are we going to update our beeple that is at the bottom of the hour andrew, are you the proud owner? >> i'm not the proud owner i tried to do this and actually could not figure it out. i was thinking i should send money directly to autism speaks. i had gone to the site twice to figure out how to get in and i

was not let in it looks like -- let's talk about it when we do it later i have more on that. >> i labeled it the heeple the haines beeple. it didn't work with wiscovery. it works with heeple thenasdaq indicated up 70 and s&p up 13. we'll dig into what's working in the markets next at 6:30, we reveal the d disrupter 50 only the best get in here. we'll show you which ones made the cut. "squawk box" coming right back >> announcer: this cnbc program is sponsored by ibm. the world is going hybrid with ibm. state-of-the-art but dependable.

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big tech among the -- ark quickly. up 3 to 108. the ark etf is a bellwether. the stocks leading the markets higher with technology for more on interest in tech and what is working in the markets is meghan at vertas and daniel

meghan, i can't wait to get to you. i want to talk about the risks dan, just reading this your analysis is simple here it is bottom's up. buy the best tech stocks around in terms of coming out of the pandemic and all of the things we talk about all the time you think that whole narrative is still in play with the big ones which ones >> joe, it is driven by innovation and execution on product cycles and delivering value to customers if we look at the longer-term trend around the cloud and mobile and build-up of the digital infrastructure, those remain healthy to take a company like amazon which is a pioneer of cloud services and ecommerce is strong apple is executing well on product cycles like iphone

we will see more how they are continuing to innovate next month at the conference. and maybe to mention a couple of others like cisco which is enabling the next generation network. the company is doing well in security and i'll round it off with intel which remains a strategic partner to its customers. i think the new ceo pat gelsinger will provide more product development and drive better excecuxecution a lot to like over the next couple of years. >> meghan, what is interesting in reading your thoughts -- i think you are uncomfortable with the valuable overall and the risk ahead with midcap and small cap is better. you think international exposure might make more sense. you are worried about policy mistakes which not everyone talks about right now.

>> the scenario is the economic growth will continue over the next couple years. it will be choppy here in the medium term after the covid aftermath. the areas we like in the market are ones that benefit from the global economic rebound over the next couple years. that really does tilt to the cyclical sectors over the expensive tech and growth sectors. international. we like that because it lagged for a significant amount of years. valuations are more attractive remember, not only do they stand to benefit more from global trade, but they are more cyclical in nature that is why we like the development international. you are right. the risk we are looking at is policy error everybody focuses on monetary policy error don't forget about government policy error we see that with the shortage in

the labor economy. they have done their job to bridge the gap now we are starting to get to normalcy and they need to get out of the way and let the economy function again >> and just to break that down and drill down on that, do you think you are worried about too much stimulus running hot right now or labor problems as people have no inducement, some people, to come back to work or are you talking longer term that we've just spent too much and there will be a day of reckoning longer term with inflation with the stimulus? near-term and longer-term problems >> the most immediate one is the near-term problem you mentioned. unemployment benefits that have been extended by the government have done wonderful for some people

at the same time, it has resulted in some businesses not being able to find employees the other avenue from the government side is that we need to get fully reopened. we have to get capacity restrictions lifted as well so that these small businesses, the ones that got hurt the most, can get back to fully reopen and then get back to their full employment they have prior to covid. >> you are not talking taxes or capital gains increases. none of that stuff is part of your front and center worries about the future you think all of that will be okay as well as the size of the programs >> right i think as i mentioned the immediate concern is the ongoing stimulus that i think we can start moving from. obviously, yes a longer-term taxes and how we deal with the debt is concerning as well. >> dan, your top five holdings you are not thinking about this stuff? you are thinking about these are great companies? >> joe, we incorporate the

dynamics around interest rates, obviously. a lot of the companies are facing cyclical headwinds. bottlenecks in the key supply chain gets incorporated in how we look at the companies and think which ones will deliver value to the customers and ultimately their shareholders. if we look at companies, for example, nvidia which is a leader in the field of artificial intelligence. what they are able to do in terms of helping their customers with drug discovery as an example is extraordinary while a company like nvidia may get impacted in a difficult economic environment, which we are in, we think as the economies begin to recover, that story will remain interesting. again, it will come down to innovation and another company like alphabet which is a leader

in building out digital infrastructure both in terms of serving consumers with search ago maps and the enter pprise wh the google cloud they are subject to the economic forces, but the innovation will drive their futures in my view >> all right dan flax and megan, thank you both becky. thanks, joe. when we come back, a new report says spend tech square is getting into the retail banking game the report based on a bit of detective sluething and we are minutes way from the big disrupter 50 list. don't go anywhere. "squawk box" will be right back. >> announcer: what's working is sponsored by comcast business.

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shares of square are higher in the pre-market after the jump of 5.5% of yesterday's session that move came after bloomberg reported that the company could offer savings and checking accounts a code in a recent app update revealed the plans square didn't comment on the report, but guys, this is a sa signal they are coming for the big banks. >> they are. let's bring in an update we mentioned it on the first

ever nft the call of the march of 2009 market bottom. it is up to $18,000. proceedss go to autism speaks an the council for education. you can bid now at mintable.app/cnbc. there are a number of tokens for sale for a set price it is a carbon neutral event all proceeds go to a good cause. it sounds like i have been priced out, guys i may have to just send money to autism speaks on my own. >> it didn't sound like that to me knowing you are a varied pursuit in moneymaking opportunities that come from tv, film, book and broadcasting >> you are a big supporter of

autism speaks. >> i am. i have a lot of interest in that for a lot of reasons just let us know how it plays out. i was trying to give you a compliment there i don't think you have been priced out i think you lay and wait wait for everybody else's bid the paltry sums and then boom. you have the nft >> i'm the ringer here i'm trying to talk down the price. strategy >> all right when we come back on the other side of this, the disruptor 50 list. which companies made the cut and which companies were left out. and don't miss this. brian chesky will be here to breakdown the latest changes to the platform as we head to break, the

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good morning let's check out the futures on this tuesday morning green arrows nasdaq was the big winner. up 1.4% thanks to big gains in stocks like apple and amazon and microsoft and google you can see right now, s&p 500 indicated up 10 points dow futures indicated up 70. nasdaq indicated up 53 points. andrew thanks, becky. time to reveal the ninth annual -- the ninth annual more than 1,500 nominations. 50 made the cut.

there are private companies at the epicenter of a changing world to fast growing businesses and changing the economy and how we live. the list is on our web site at cnbc.com here is is julia boorstin with e top five >> reporter: number five didi chuxing reportedly driving to the $100 billion u.s. ipo didi offers transportation and delivery services to more than 550 million users around the world. number four, sentinelone protecting the internet from cyber crime. >> deals with data and scale that is where we should leverage >> reporter: the company defended more than 4,000 customers from last year's

solarwinds hack. including at&t and jetblue number three discord. the platform captivated users through live social audio. it attracted sports fans and music groups and crypto traders. not to mention microsoft which explored a $10 billion acquisition earlier this year. number two, stripe the powering platform from amazon to shopify to uber. it has seen growth in the pandemic the biggest private company with the reported valuation of $95 billion. and number one is robinhood. on the mission to access to financial service in the stock market the no-fee trading platform made its mark on wall street and empowering a new generation of investors. robinhood trading was at the center of trading in january

drawing lawsuits from users and questions from congress. >> prices are day-to-day and hour to hour >> reporter: still, invest ors put in 3 $3 billion to keep robinhood in business. now headed to an ipo now fintech is the most companies on the list. there are 34 disruptors this year that are unicorns and 10 of the 50 are worth $10 million. nearly half of the companies are first timers including three fintech. cloud and brex and flutterwave and, andrew, we have discord and clubhouse on the list for the first time >> both talked a lot about this year with all of the new companies, what are the trends we're seeing on this year's list

as opposed to previous lists >> reporter: look, you know, fintech. that is a big trend. in discord and clubhouse, this is a new trend the trend of social audio. it has been years since we had a new social communication media trend take hold on the list. if you think about it. clubhouse just launched in the last year. discord was focused on the gaming community and now it is something bigger and broader you know, something that people use to talk to their neighbors and talk about tv shows they like i think we're going to hear more in that space. no pun intended. we had a lot in telemedicine space. technology taken hold in the past year as doctors and than engineers found ways to reach people at home and treat people at home with the technology. >> p jjulia, i remember when you

talked about this list nine years ago. i remember going to a meeting with you at hg allq. if you look at the list over the nine years create an etf. disruptor etf. what would it look like? how many companies would have shot the moon? >> andrew, we have the disruptor 50 index 61 companies we will add another three at the end of this quarter. these are the companies from the disruptor 50 list that graduated by going public. in the past year, this 50 index is up about double what the nasdaq is. it is up 78% it is up 78% over the past year. the nasdaq is up 45% over the past year. these disruptors have out performed the nasdaq in the past year this is an equal weighted index.

we added companies that have gone public at the end of each quarter. andrew, maybe ten years ago, we were in the meeting and i pitched this idea. i think it turned out to be a great way to identify the next generation of companies that is not only disrupting the status quo, but really companies to watch once they go public. these are the future, andrew >> i think you should become a venture capitalist you are doing a great job with this it seems that way. julia, thank you for bringing us the list and all of the work you have done on it overall this time we have the coo of disruptor paul davison of clubhouse. then discord ceo jason citron will happen at 11:00 a.m. this morning. joe. coming up, housing data on tap today.

we will tell you what to expect. today's "squawk planner" is next don't miss our interview with brian chesky to talk about the major updates coming to that platform you can always watch or listen to us live anytime on the cnbc app

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time for the "squawk planner. we get the case-shiller home price index. then the home sales at 10:00 a.m. and charlie evans has the speaking event this morning. and chair quarles will have scheduled events today and after the bell, nordstrom and toll brothers report that is the "squawk planner. i'm practicing for my read at the next break i have to redo that ready did, becky. >> i was listening i do believe it. >> do i need more energy or something? what do you think? i'm nervous about it i'm going to stumble >> more sincerity. >> more sincerity? that's a problem for me. >> you were reading it

you were just reading it emote it, joe. you can do it. >> okay. all right. >> emote it. all right. >> take two. when we come back, big changes coming to companies as employees prepare to return to the office. we've got leadership tips for the hybrid work model. how do you manage these people who are not in the office all the time we will have more on that straight ahahead. >> announcer: don't forget to subscribe to our podcast you get interviews and original content and behind the scenes access look for us on apple podcasts or your favorite podcast app. subscribe to quarter pod today

in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.

welcome back executives are changing the way they manage their employees as hybrid work models are more prevalent. the focus of the book "leading at a distance. the author jim citron is joining us now jim, thanks for being here. >> thank you >> obviously, some big changes have come to the workplace and will probably continue everybody is getting ready to come back to work. a lot of workers want more flexi flexibility. that obviously spells changes for management styles. you are somebody who is looking for ceos and top management people to put them in top positions and help be better managers what advice would you give them at this point? >> here we have been recruiting ceos for over 65 years

when wie went into the lockdown last march, the world went into shock. all of us, including you guys on the air and everybody shifted quickly to this remote work force and there were questions about what does it all mean? what we did with the book is interviewed over 100 ceos and studied over 600 virtual teams we really built a model for how to lead effectively in a remote work force what was clear is and we are coming to the point now that the world is going to a new normal and a distribution of how people would work

>> there will be some place of hybrid or plblended work companies and individuals and leaders that don't adapt to the reality will be at risk. >> jim, what we have seen from a lot of leaders and what we heard anecdotally is managers think people who aren't in the office aren't as productive as those who are in the office. therefore, they are likely to give raises to people in the office is that true and is there any risk for managers who do things that way >> it is a hugely important point. i appreciate you pointing that out. surveys show and our analysis shows over two-thirds of managers around the world believe worker whos who are in e office are higher performers let me repeat that managers believe workers in the

office are higher performers they are more likely to give them raises and promotions data shows the opposite is actually true. full-time remote workers are equally or some cases higher performers there are two issues with that if you are a manager and you believe that people who are not there and out of sight and out of mind, they are less likely to get promotions and pay who are the people who are most remote and the slowest coming back to the work force it will be working moms and under represented minorities there's a risk that inadvertently and incorrectly the equity and inclusion in diversity objectives that companies are pursuing are exacerbated. the point is this that you really have to create an even playing field with the in-office workers and remote workers and find processes to make it equal

and better >> jim, i think this is a long-term problem with management in general. it sounds very much like the working mom syndrome moms asking for flexibility and to work at home or work part-time. i feel they always have taken advantage of by the system they work full-time and get part-time pay. do you think this resonates with managers at this point >> two things are different this time the world has finally, by definition and with no choice, had to figure out how to do the work remotely. i think now culturally it is acceptable and it has been co co commonplace the last 16 months now people figured out you can be equally or more productive in the remote setting if you talk to sheryl sandberg, they have done studies to show

working moms are spending 20 more hours per week than men in their work and caring for kids or caring for elderly or elderly parents. it is much higher toll on working moms than it is for men. managers and individuals need to pay attention. there is an exodus in work force of working moms. that's a real important source of talent that companies cannot ignore >> jim, i'm curious and maybe they're clients. what do you tell some of the big wall street firms and i'm thinking of jamie dimon? in new york, some of them are derisively described as office monsters forcing people to get back to the office they don't believe that you can work from home and do it effectively.

>> it is a really important point and tricky organizations like jpmorgan chase where they have an apprenticeship culture and they are in a competitive business. there is history and culture to working together in the office and teams and conference rooms and pitching for business on the road and in person there's a strong believe that a competitive beforelief if you a going out to see the client and that team and person will win the business there is a strong bias to doing whatever it takes to win that's part of it. two, apprenticeship culture. david has done heroic job at goldman trying to listen to and make changes more inclusive and appropriate for young people having the right experience and coming up through the ranks. it is a balancing act they are

trying to walk >> so, jim, ultimately, what do you tell these executives and how will they have to manage differently? it is a different management style when you have to be working with people who are not in the office? how often do you need to check in with them do you need to do more zoom meetings or more one-on-one meteorm meetings i have to say when we brought this up yesterday and had this discussion on air, people on twitter said they are more productive at home because they don't have as many meetings and they can get the work done instead of the dumb work sdl >> there is a big part of that we believe, my partner has a ph.d. on this topic. she is studying virtual teams and team settings for 15 years

we have also studied how leadership is changing at spencer stuart we had five years ago the stake holder management, not just leadership in the last 16 months, there is a huge acceleration in importance and power of purpose. when we are all working re remotely, employees are voting discretionarily with their effort more mobile than ever before right now with the strong economy, there is a lot of alternatives for talented workers. leaders have to be more human and authentic and actually you can do it through zoom sometimes you have to do it more frequently with shorter touch points and more video calls and check-ins without agendas to see how you are doing. there are processes that managers will need to do to make

sure that performance management and objective setting and strategic line has to happen you are right. there's a really strong belief that giving great employees discretion and autonomy and flexibility is really good if that is coupled with authentic leadership and caring for the person and really having the balance of relationships, purpose on the one hand and process, but not overdo it on the other hand. >> jim, thanks for your time >> pleasure. thanks, everybody. okay ne have two pigbig hours ahead. a w activist we have details on that and more after the break. thank you for calling the anderson group hannah speaking. when you're in a meeting, ashley can take a message. she's not available, but i'd be happy to take a message. and if you're stuck in court, lisa will let your clients know. thank you, mr. decker will call you back as soon as he's available. when you switch to posh,

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stocks poised to rise again. what you need to watch in today's trading session. gentleman amazon could be looking to double down on the studio business. the deal for mgm studios ready to be announced this week. we'll speak to mark mahaney and some picks in the sector plus, we'll drop in with the ceo

of clubhouse we'll talk about the booming audio only business during the pandemic and much more the second hour of "squawk box" begins right now. good morning and welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with becky quick and joe kernen. take a look at u.s. equity futures. show you where things stand. dow up 80 points right now the s&p 500 looking to open up a little over 10 points. nasdaq up about 44 points. here's what's making headlines at this hour amazon very close to buy mgm studios for $9 billion a deal could be announced as soon as this week. could be their biggest

acquisition since they bought whole foods. mgm has been on the block fo several years. apple had been in negotiations to buy that company. ended up passing most people in hollywood thought the company was worth about 5, maybe $6 billion lots of questions about the rights over some of the films, specifically the bond films and what that means long term for the value of the company we're looking for that deal across the tape perhaps this morning. meantime, the trial pitting apple against fortnite creator epic games it could be months before we get a decision epic wants apple to open the iphone to competing app stores and prevent it from requiring a use of apple's in app payment system vimeo making its debut it's being spun off from iac $10 billion in trade on nasdaq

under the ticker vmeo. lordstown motors shares are under pressure after the electric vehicle startup said it needed to raise capital to fund operations they're at 500% at prior projections at best. i wanted to -- i was just going to mention it. did we look at the 10 year did you see it >> yeah, it was below 1.6%. >> below 1.6 it's a good article. one of the zero head pieces, guys pick your poison pick your fed poison either tank the markets by tapering or you -- or fade on inflation. tank the markets or fade on inflation. it is a tough -- it's sort of a paradox for which way they go. why are we at 1.59 again i don't understand

maybe it's because we're not tapering. >> because the fed is the major purchaser of treasuries. >> right maybe that's why we're right in the middle of something we've never tried before it seems like we're in new territory. florida governor ron desantis signed a new law that gives the state the chance to ban social media it may be a model for other states to follow even though one tech business group says the law runs counter to the first amendment. social media may not delete orban a candidate. violating services can be deleted. they blocked former president trump shortly after the january 6th attack on the u.s. capitol

they argue president trump violated the terms of service that barred the promotion of violence a brand-new active vice is targeting oil giant exxon mobil and it's turning into the largest proxy fight of the year. leslie picker is here. leslie. >> reporter: becksy, that's right. it's an historic proxy fight exxon's carbon footprint, engine number one is a brand-new hedge fund that put just $40 million into the $250 billion market cap into the company it's the dissident pushing for change it's looking to add four new directors to the board they've gotten the support of major pension funds. they urged investors to vote for some of the nominees as well exxon has outperformed its peers since engine number one first revealed the stake in december but proxy advisory firm iss

attributes exxon's recent gains not solely to the prospects of the activist fight per se but largely the company's recent announcements, although those are partially a way of defending themselves cost reductions as well as capitol allocation exxon also announced the addition of two new board members in march with support from hedge fund d.e. shaw. >> blackrock and fidelity. they are held by retail funders. we'll find out which way the vote swings at that annual meeting. >> leslie, this has been so interesting to follow and to see where things are headed with this because d.e. shaw was behind the original board members that they put on this. they don't seem to be behind

this or to be supporting this. management has been pretty outspoken about how they feel with the board, particularly with the two newadditions is really up to the task. like you said, it's hard to figure this out how the retail investor is going to be swayed what are your thoughts if you had to place a guess one way or the other? >> it's clear based on the conversations we're seeing on both sides that both sides believe this will be close you don't normally see two days before the vote the company come out and promise to add two new directors if they don't think it's going to be a close vote tomorrow of course, having 50% of shares held by retail investors, it's hard to understand those votes because they're not one big voting block as you would try to understand the way vanguard is going to vote or the way a big hedge fund is going to vote. that creates a lot of uncertainty here as well we've seen proxy fights in the past that have had huge retail components

adp if you remember. procter & gamble p&g. that was a very, very, very close vote and it did come down to retail. however, adp went the other way. again, it's really difficult to tell at this stage which way it will go. it's clear that both sides are nervous as it gets down to the wire >> leslie, thanks. it's good to see you we'll continue to keep an eye on this coming up, where's the box office rebound many areas of the economy have bounced back, the theater business has lagged. we'll speak with imax ceo after the break. sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh] [ding] never settle with power e*trade.

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domestic travel to levels getting closer phil lebeau joins us now kind of an oxymoron. >> reporter: a little bit, joe we've come a long way. what you're noticing there is a

steady trend higher. a little hard to read there on the left that says 1.8 million. we passed that it's down anywhere from 10 to 15, 20% depending on the day you're comparing it to in 2019 the passenger levels need to be the most recent reading. as of sunday, 1.86 million people were screened on sunday that was the highest since before the pandemic. all of last week down 32%. you can see it getting much better usually down 50, 60% compared to the same week. now just 32% you're talking about carriers that tend to get a little bit more business on the leisure sydow mess stickically southwest, jetblue, spirit all of them noticing a decrease in closed end booking. two weeks from now i want to

particular a trip. let's book that ticket as for the legacy carriers, america, delta, united, the focus, corporate travel which is going to be slowly coming back unclear how long it will take to get back to prepandemic lems and the encouraging news is you are starting to see parts of europe reopen. they're all going to say the same thing cities in europe, a gradual rebuild there. nowhere close to where they were pre-pandemic hello? >> i'm there trying to think of all of the different ramifications. if you're a domestic airline, it's great if it's mostly travel and leisure you're talking about,

it's great all of the other that we need to think about. >> it's going to take some time, joe. that's the bottom line it is going to take some time. we'll have a guest on saying you're never going to see business travel return that's a bold statement. never? may take a year, year and a half, two years but most believe we will get back to the pre-pandemic levels. it's just going to take some time in terms of business travel >> phil, thank you great to see you. similar story. while travel is coming back, the movie business is still struggling to some extent. been watching this and so far this year gross domestic box office revenue is about $526 million. that compares to $1.8 billion for the same period last time -- over the same period last year and $4.2 billion the year before joining us right now to talk about whether we're on the verge of a box office rebound is

richard gelfant, the ceo of i max. good to see you. >> good to see you as well, becky. >> these numbers we're seeing are incredibly anemic compared to what we were used to before the pandemic when due o you think we'll staro see numbers before covid >> i think we're starting to see it now in a small way. i don't think we should look at this as a light switch now it's going to open, you know, slowly and then all of a sudden it's going to open in a much bigger way. the closest parallel is the international numbers, which is going to come back in a strong way. godzilla versus kong did extremely well both domestically and internationally. just this past weekend a film from your parent company, universal, f9 opened in asia and

it did about $165 million in the opening weekend. that was the biggest weekend in the last -- over the last year since the pandemic started for imax all kinds of international records. we did about 9% of the chinese box office and the china yuan did $135 million in box office we did about 14 million for the weekend, which is our biggest weekend. so where it's safe to go and where people -- there are good movies, people want to go back i think we're going to start to see that memorial day weekend in the u.s. this coming weekend >> you're a publicly traded company. how confidently can you say that that these numbers will be back? a year from now we'll be back to the pre-pandemic numbers >> again, it's the movie business a lot depends on content

this is where the comps are perfect. but if you look at this year, what's coming up so f9 opens in the u.s. at the end of june. you have cruella and you have a quiet place for memorial day in the u.s. coming up, you have a bond sequel you have black widow coming out. you have suicide squad lots of movies dune there's a slate coming for the back end of the year once you get to the fall and look at comps, they will look very good. for imax, for example, if you look at chinese new year it was pretty flat in 2019 which is a record year in china so i think a similar kind of progression towards the third and fourth quarter i think it's going to be close to normal.

>> hey, rich the consumer seems to have changed. who knows. that's what everybody is trying to figure out, whether they come back to travel the same way, whether they come back to dining out the same way all kinds of things that we used to before. you're right, the content is one thing but maybe more importantly is what the consumer wants to do the content companies have kind of done as a result which is say they're going to do a lot of opens. with a very shortened window is that going back to the same or are these shortened windows for the release on streaming, is that the new normal and that's here to stay >> becky, i think you have to divide it into two periods, one, the pandemic period and two, the post pandemic period during the pandemic a lot of people did what they had to to survive. if you were disney, the theme parks were closed, movie theaters were closed.

i imax, there isn't a studio i think we're not just throwing a dart in the dark, we have the benefit of the international numbers. people are coming back in big numbers when they feel safe. there was a study released by nrg that showed 73% of the people said they were ready to go back to the movies. nrg said they expect it to be 80% in the next couple of weeks. that's up 25 points from earlier in the year. i feel really good

other places are coming back in the united states. >> you hear about the combination of some of the studios, mgm being bought by amazon potentially what just happened with discovery and time warner. what does fewer content companies mean for you >> you know, it's not fewer content companies from a studio point of view. warner's always been one of our best partners. discovery is just going to team with warner. discovery is unscripted content that doesn't go to the movies. warner content did and i think under david zaslav's leadership, they'll take a look at this and understand the importance of theatrical to the overall value chain. creating value and creating events mgm, my own view is if this goes through, i think amazon is mostly buying it for the tv end

of it like handmade's teal bond, which we are doing at mgm, shot with imax cameras is 50% owned by the brockway family the descendents of the person who owned the books. they're not letting that go to an all streaming movie i'm sure amazon is too smart to let that happen anyway i don't think you can look at that as the loss of a studio more like a tv studio, not really a movie studio. i'm sure their big movies, the kind imax does is going to go theatrical. >> richard, to that point though, let's talk about the amazon/mgm transaction you mentioned the family which is a key component and has been one of the hurdles for a lot of potential buyers for this company in part because there is a view that the family will make

these studios release their films in theaters like yours, good for you, but maybe less good if you're an amazon i think it's one of the reasons that an apple pass, harder to produce tv spinoffs of it. unclear whether they would allow that in terms of the valuation, you know this business better than anybody. there was a view that this was a company that was only worth about $5 billion and even at 5 there were a number of big companies that passed. why does it make sense for amazon to be the owner at 9? >> the valuation i scratch my head a little bit at, andrew they're theatrical and hollywood strategy is tied to amazon prime. i don't know how they've calculated and monetized it. the rumors said apple was very interested, as you know, at 5 and mgm walked away from that. it looks like a pretty good decision on their part now given what they're getting

i can't piece together the model but i can tell you in a post pandemic world i don't think blockbuster movies are going to be released on streaming services and i -- you know, i'd be surprised if that was their motivation they're too smart. as i said, i think it's more, you know, general television content that they put on the streaming service. i can't make the numbers cancel out but congratulations to mgm >> rich, great to see you. thanks for your time today. >> thank you, becky. take care. coming up when we return, a check on big tech with analyst mark mahaney and check out bitcoin and ethereum elon musk beating. he was having active discussions with bitcoin miners. right now though bitcoin and ethereum are trading lower this morning. tcn 37,000. we'll be right back after this

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two years ago cnbc lost mark haines since its launch in 1990 since the day that he passed he's remembered for a lot of things but certainly one of which is the haines bottom when he called the low in the s&p 500 on march 10th, 2009 in honor of mark we're auctioning an nft of that famous call we're also calling a set amount of tokens for anyone who doesn't want to participate in the auction. it's all online now at mintable.app/cnbc. it's live now. it ends at 10:30 a.m. tomorrow morning. all proceeds go to autism speaks, a favorite charity of mark's and council on economic education. go to minuteable.app/cnbc. still to come on "squawk box," the ceo of cnbc disruptor number 33, paul davison of

clubhouse. he'll join us to talk about the audible audio only growth during a pandemic and ceo of airbnb brian chesky will be here to talk travel. first as we head to break, as part of asian-american and pacific islander heritage month, we're spotlighting cnbc contributors, business leaders and our own on air reporters here's steve jang. they say immigrants get the job done when i took my parents to see that play i saw them smile and nod. in entrepreneurship i learned immigrant work ethic from my parents and i appreciate them for that work ethic and drive is something that is part of america, not outside of america.

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welcome back to "squawk box. i'm dominic dchu with your markt minute the outperformance of certain types of the market.

value oriented sectors, those that pay dividends, those more defensive in nature. those that are just trying to figure out whether or not they're not large cap or megacap technology or growth value versus etf, iwd versus iwf. you can see the outperformance for value. it didn't start off that way in the beginning part of the year it was fairly neck in neck starting from february, march on it kind of widened out quite a bit here at this point it did narrow a little bit over the course of the last few weeks. the dow you can see widening out there. value versus growth, something to keep an eye on. certain key parts of the market, megacap and communication services are underperforming on a relative basis that's what they've done over the last 12 to 24 months one other place to watch is on the sector perspective real estate and health care in particular both of these sectors actually closed at record highs in trading yesterday. keep an eye on health care and real estate. they have been generally maybe

some underperforming type sectors over the last 12 to 24 months then the stock of the morning, gets in the zone, auto zon, azo. you see 29% over the last year it's been a ramp up over the last couple of months. this has been a play on the market you can't find used cars computer chips weighing in on that keep an eye on autozone up 1/10 of 1% on earnings. back over to you. >> you're doing a free zone for autozone get in the zone. >> get in the zone. >> good to see you. >> likewise. >> thanks so much. we'll talk to you. coming up, big tech on a rebound. we'll get names you should consider with analyst mark mahaney. check out iac interactive shares higher ahead of today's spinoff of vimeo given trading on the nasdaq.

valued at roughly $10 billion. "squawk" returns right after this music) ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

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almost sounds like the mgm lion, doesn't it that roar. amazon is closer to a deal to buy mgm studios for $9 billion according to a person familiar with the matter who spoke to cnbc the deal could be announced as soon as this week. meanwhile, megacap tech stocks rose yesterday leading the nasdaq to start in the green. the index is less than 4% off its record high. joining us with his tech squawk picks, mark mahaney, senior managing director head of e evercore isi i want you to weigh in on whether you've thought about this it's a question we asked a lot that i never really get a decent answer to. when it looks like the 10 year is headed higher, when we see the nasdaq immediately take it on the chin, is that purely a

knee-jerk reaction to valuations being affected by higher rates or do these tech stocks, is the underlying businesses that they are in, is it threatened by interest rates going up? >> okay, joe with that setup, i hope i give you a satisfying answer. i think it's the first rather than the latter particularly for what i call ps stocks versus pe stocks priced on price to sales are going 10, 15, 20 times sales the math discounts that -- those terminal values, those cash flows in the out years more aggressively and therefore it's much harder to sustain the stock prices then you have the pe stock, their legacy but your strongest technology assets like your amazons, facebooks, googles. those stocks usually fare better in the rising rate environment

does that help >> yes if you show which ones are affected, which ones aren't because technology seems -- you know, it always gets hit a little bit harder but you can connect the dots with the entire stock market based on global growth rates, everything it's just not as conducive to anything from multiples to growth to business prospects, borrowing money, capital, to all the things we're talking about it's better in a low interest rate environment i think it's purely just knee jerk with these. what are your big picks? uber we wanted 100 billion or more so you're cheating on uber but it used to be 100 billion. >> okay. so real quickly. amazon is our topic, facebook is our third pick the other point that's big is growth stocks, tech stocks are worth more in a low growth

environment and negative growth environment. if caterpillar is growing 30% it's growing the same as amazon. that's going to change we go into '22, we go into '23 amazon will change that's when you start looking out to '22 and '23 the best ones that is, the highest quality ones, they'll get that back again. top three picks, amazon, uber and facebook >> all right let's talk about it. so does it matter what the price is for mgm to someone like amazon do you think that's a good match? >> i don't know, joe i'll step back and put it this way, which is we're seeing consolidation, we're seeing this coming down to about 5 major players in global streaming. i'm a big bull on global streaming. the series of companies believe that discovery time warner merger was based on the belief in part

streaming was going to be big. look at the massive pivot at disney amazon spending 9 billion to beef up the market i don't know how media analysts get around that. i think it's a very hard thing to value, but the strategic direction to me, amazon's been spending 10 billion a year anyway historically on streaming. this isn't out of the ballpark in terms of the amount of cash commitment required to build out a streaming business. >> gives them some scale and some size. uber, ride sharing is still a major recovery play? >> yeah. oh, absolutely it's still way off and uber also gives you global exposure to ride sharing there are markets around the world that are still unfortunately extremely weak or shutting down. even in the u.s. we're still 50% off where we were in 2019. but that's the bad news. the good news is it is progressively getting better

not going to be smooth at all. as a way to play that -- the ride sharing recovery, uber and lyft are two great plays i have a preference for uber because it's a global play in the second half of this year they are going to be turning profitable on an ebitda basis. that's your catalyst the stock's dislocated dhq dislocated high quality stock. i like uber. >> hey, mark, when it comes to uber and lyft there is a new california mandate that was passed that says 90% of all miles logged will have to be in electric vehicles by the year 2030 how big of a hurdle is that? how do they handle that? >> well, becky, i'm actually not sure how they're going to handle this i think since they don't own the fleet what they're going to do is require if you are a driver for uber that you require the state regulations. i don't know whether they become national or international.

it's not their fleet the problem will be that they have supply challenges from time to time and my guess is those kind of requirements make it harder for them have adequate number of drivers. they may actually mean that their profitability over the next couple of years is trimmed. they're going to have to give out more driver incentives to give people the correct vehicles, the ones that are regulatory, passable get them on the road and pick up passengers. >> finish with facebook. we have about a minute facebook, you point out, it's the only covid winner that's at a discount to pre-covid ev to sales. >> yeah. yeah >> we know what that's all about. it's just all the regulatory overhang, pr issues or whatever the hell you want to call it so make your case. >> yeah, joe let's do this simply there's a small number of assets that are stronger post covid than they were precovid. amazon is in that bucket, so is google and facebook. if you can find one of those

that's strengthened that hasn't rerated, the stock is turning slightly lower level, that's your value play. so you can buy facebook which is essentially 18 times e for what i think is one of the strongest franchises out there generates enormous amount of cash buying that stock using cash to buy some of the stock back and it's probably got sustained 25% revenue and earnings growth at scale. there are very few assets like that and it's trading at a discount it's a clear winner. you should be buying facebook. >> you made the case why you told us why higher rates are not good why do you think rates haven't gone up? now i'm really asking you to get out of your comfort zone y. is the 10-year 1.59 today, mahaney? >> my only responsible answer as a tech analyst is to point out something that sometimes gets lost tech has been fundamentally deflationary for a decade, two decades. it just has. it's allowed people to discover

prices and i think that's missed about where interest rates are it's a large part of the economy that's driven by companies that are fundamentally deflationary that reduces long term some of the inflation risk we're seeing today. >> you should welcome these out of the box questions for you you're too pigeonholed that's exactly right and that's a good point to bring out, mark mahaney. thank you. >> thanks, joe. >> see you later becky. when we come back, cnbc's disruptor list is out. we'll be hearing from the ceo of clubhouse which is number 33 on the list this year he'll join us after this break to talk about the social media company's growth throughout the pandemic. later, former disruptor airbnb giving disruptors an update on the state of the o ianess cebrn chesky will join us. "squawk box" will be right back.

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i think it's surprising seeing people want to get into audio. we think it's a durable media. it makes sense people would want to build features there. there's a network protects there's a network for video. i think there's going to be one for audio, too we try not to focus on competition. we try to stay laser focused on our product, community and play the long game. when you do that, good things

tend to happen >> hold off on talking about the competition for a moment talk to us about the growth story. we were watching app downloads on apple growing like crazy. in april it was down to 900,000 on one site. now meantime of course you're launching on android which will give you another growth trajectory how do you see that? to the extent there are critics or skeptics, this was a pandemic play people were excited to be on audio. they couldn't go to dinner and see their friends. now that they're back in real life it's changed the dynamic. has it >> when rohan and i started the company in march of last year we said to ourselves, you always want to take a measured approach to growth. when you grow communities too quickly things can break earlier this year we started growing faster than we had ever

expected that caused problems with our servers. we had the servers going down, notifications not going out. discovery became an issue. we had to focus on company domain and building out the right infrastructure and team to build a long-term, durable company. i think it's been a good investment we launched android a couple of weeks ago. opened up to most of the world on thursday. got over 1 million people joined since then millions more people on the wait list and we hope to be ready to let people in soon it goes back to what i was saying before. i think that markets will come and go competitors will come and go but if you really play a long-term game you focus on your community. you have updates every week. you have the opportunity to build a durable company. >> you've been adding a number of features to help members effectively monetize or creators

monetize what they're doing. you're not taking a slice of that right now the question i'd ask you in terms of longer term, how you think about monetizing the business i know you recently had a partnership with the nfl, for example. >> yeah. you know, we're very excited to build a different type of social network where we are only growing when members of our communities, amazing creators on the platform are growing so i look at people like darreus and leah and eric and andrew and the early morning crew, all of these people out there hosting these incredible conversations every day. we want to help make them successful we want to build a business model based on things like ticketed events, room tipping, charging for subscriptions, allowing these amazing people who are smart and funny and have domain expertise and are just great at bringing people together to get paid directly by happy listeners who want to thank them for the experiences

they're creating we want to make sure our business grows when they grow. as you pointed out, we rolled out our first payments feature we take nothing from those transactions because we want to help the create orgs make money and as we grow we're going to introduce new forms of payments, new forms of subscriptions, tipping, other things to help creators monetize and we'll take a cut of some of those to help fund the business. >> i know you're laser focused on your own business, but there is a lot of competition. i'm hoping you can speak to it a little bit obviously twitter, which in part i would argue clubhouse has used twitter as a platform to oftentimes promote clubhouse conversations is now in the business itself with twitter spaces and now they're doing their own version of ticketing so there's a revenue component we're hearing that spotify is getting in the business. we're hearing that facebook and instagram may be getting in this business who knows whether linked-in will

ultimately do something. in the enterprise space you hear slack is trying to have a social audio component. so how do you differentiate what you're doing relative to those others >> well, i think that the -- what it really comes down to is the people clubhouse is nothing without people it is everything with the people we have tried to create a space where people can come together and talk and have conversations. i mean, voice, we always say it's the oldest medium we've been gathering with people in small groups and talking since the beginning of civilization if you look at what's happening on clubhouse today, it's just unbelievable we have a room going on for the past week called meet palestinians and israelis where something like 450,000 people have come in and they're meeting people who are on the ground, and these aren't political pundits that they're talking with, they're talking with mothers and teachers and shop

keepers and people that have grown up there oftentimes these are people in small town america, in japan, nigeria, who have never had a chance to talk with someone in these regions and they're just connecting with them as humans to us there's something so powerful about dialogue and about community. so the only thing that we try and focus on is supporting and building the best and most amazing community of people that want to come together and talk and there will be other flavors. there will be people that approach this from a professional perspective, from this perspective or that perspective, but at the end of the day i think social platforms, there are benefits to community and to having the best community out there. >> paul, real quick. it's fabulous to watch your success.

my question to you is it sounds like you may have turned down an offer to be sold prior to twitter and others you want to remain independent long term if we're having this conversation five years from now, do you imagine that clubhouse will be an independent company or is there a price at which you would say, you know what, this makes sense to merge with another company that has a social grab and you layer together and one plus one equals three? >> we generally don't comment on rumors like that, but i think voice is a really durable medium and i think there's a very important product and company to be built here. it's the most exciting thing that we've ever been a part of and we just want to stay focused on building that and on the product and on the community in the long term. >> paul, thank you it is exciting to see your success and we do look forward to following all of your progress i'll see you on clubhouse. meantime, a quick programming note we have more disruptors on the

way this morning starting with discord ceo on tech check. "squawk" continues with a big hour ahead

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good morning cryptocurrencies on the move again, this time to the down side bitcoin's best day in years. in a few moments we'll speak with senator cynthia lummis. and florida bans deplatforming governor of the sunshine state signs a bill that lets it penalize tech giants when they ban political candidates. america prepares for an expected summer travel surge with millions making plans we're going to ask airbnb ceo brian chesky if his company is ready for the post pandemic rush final hour of "squawk box" begins right now good morning and welcome

back to "squawk box" here on cnbc i'm joe kernen along with becky quick and andrew ross sorkin we're up triple digits for now we're watching still the s&p indicates up i knew it. that's 14 points or so the nasdaq indicated up 72 pretty solid session yesterday the 10-year trading under 1.6% this morning it was at 1.59 and change. 1.593 as you can see at this point. interesting interview coming up here, becky. probably the friendliest person in congress, either senate or the house on digital currencies. let's get this other news first. we've got some breaking news

from covid vaccine maker moderna. meg tirrell has more on that front. meg? >> reporter: good morning, becky. moderna saying it has enough data to file for emergency use authorization for kids ages 12 to 17. remember we saw initial data when they reported earnings a couple of weeks ago. it came in at 96%. in this trial of 3700 participants they saw vaccine efficacy of 93 to 100% based on how you're measuring after the first or second dose pretty protective and comparable to what you see in adults. stefan bancel saying it's particularly exciting to see the moderna covid-19 vaccine can prevent sars cov 2 there is less severe disease in teenagers. preventing the spread is incredibly important the pfizer vaccine out there for this age group to learn that in the first week out there for ages 12 to 15 they

vaccinated more than 600,000 kids in that age group we'll see how that continues to proceed in terms of pace but, guys, getting more data on these vaccines in younger and younger age groups becky? >> hey, meg. i think this is probably incredibly good news when you consider that these trials were run while those other strains were out there strains that we had been questioning whether the vaccines would be as effective because when those original studies were done, maybe not as many different strains were out there. incredible news to hear that it's up to 100% effectiveness after the second dose, perhaps i think the big question has to be when does this come for kids younger than age 12. that's what parents everywhere are wondering. >> reporter: yeah. pfizer actually laid out a time line when it reported earnings earlier this month we're looking at september potentially for getting data in kids down to age 2 for pfizer's vaccine.

moderna might be around the same time line. we'll have to see. then pfizer will submit for emergency use authorization if those data are positive. and then later in the year for kids down to age 6 months. so that will be a little different because for the kids over age 12 it's the same doses for adults for younger kids they are trying out lower and lower doses and we need to do more work to figure out what the right dose is for younger kids. >> what do they say for kids who have been getting the vaccine for ages 12 to 15.

and usually they go away on their own but there are myriad cases of my owe car diet discaused by different viruses once again, pick your poison

do you want to get the side effects from the vaccine or do you want to get covid? >> yeah. i mean, we're expecting to hear more about this investigation the cdc is doing many say it's good to show the cdc is taking this very seriously. >> cryptocurrency. >> they're publishing current plans. they're doing that members of the senate.

the chair. cynthia. bitcoin. that's as rare as a frugal central banker, senator. you don't find many of either. are you bitcoin friendly do you think that actually does represent a store of value like gold >> i do think it represents a store of value like gold it is going to be something that will allow people of all means, age groups and individuals to save and have something that will store value for the long term unlike the u.s. dollar, which we're spending so massively as you pointed out that we're debasing the value of the u.s. dollar. so it's important that congress

begins to focus on bitcoin and other cryptocurrencies in a way that will allow us to give people options for saving in the future >> and the dollar compared to pick your currency around the world where, you know, you've got inflation rates, pick a number where you see it in some parts of the world and citizens there could use bitcoin to protect against the currency that's going down 50% in a month i mean, the dollar you do point out we've got our own problems that's why globally this could really help people that are trying to preserve the value of their hard-earned currency that they make. you've got a lot of work to do when you go around the senate, how many of your fellow senators do you think have a good grasp of what we're talking about here and maybe this will help >> very few have a good grasp which is why we're forming this

caucus i've teemed up with senator kyrstin cinema and work with people at the various regulatory agencies as well as the innovators in the industry to understand what the appropriate base of regulation and legislation is the innovators can continue to innovate the regulators don't get in their way but we've got 9 ability to let them innovate in the space. >> you point out the u.s. needs a digital currency of its own to compete with a digital yuan. what does it mean for the future of existing digital assets like bitcoin and at this point you see what china might be able to do with mining or regulation of

bitcoin. how do you look at that in terms of whether it really will be viable long term when a country as big as china, as powerful as china can come in and pull the rug out from it or at least attempt to do that do you think that's impossible to do? >> this is a very freedom friendly type of currency, if you will it allows people to move their assets around without being under the structures of a fiat currency and that's one of the great freedom factors that is associated with bitcoin and other cryptocurrencies so i think this provides great opportunity around the world for people whose governments get oppressive or allow inflation to run out of control this is something that's going to be much more stable and it's important that we have a digital dollar to go with a digital yuan and other currency issued by fiat because we need

to keep the dollar, the world reserve currency and china is trying to threaten us in this world financial sector so it is very important that we be current, that we be ahead of the game and provide opportunity for the u.s. dollar to remain strong and the digital currency of the world. >> senator, can you speak to this we saw the colonial pipeline get effectively hacked and ransom, if you will, and what was it ransomed for cryptocurrencies, right? >> right. >> we keep hearing week after week about various cryptocurrencies which are used in these ransom wear attacks across the country and across the globe where we are seeing cryptocurrency used for illicit purposes the question is whether bitcoin, for example, its very structure can exist if it's regulated. what's your take on that

>> well, that's why it's important that we have a financial innovation caucus before we start legislating about things we don't know about. consumer protection and to detect fraud in the system is one of the important things that we need to address as congress and federal regulators grapple with the newness of digital currencies and bitcoin specifically so it is not used for illicit purposes we know that up until now fiat currencies, the dollar has been used every bit as much for nefarious purposes as bitcoin has. what we need to do is make sure that we're addressing consumer protection at the same time as we're providing this regulatory sand box. >> senator, i have to push back on that, not because you're wrong. u.s. dollars, cash, has always been used in illicit ways and clearly bitcoin is being used in

illicit ways but the efficiency with which bitcoin can be used in illicit ways relative to u.s. dollars is like night and day. it's not even comparable because i could send you an enormous amount of money via bitcoin that i can't -- i can't carry enough briefcases of cash and so i don't understand why we keep making that comparison >> well, because as you point out factually, that is true. there are ways to detect fraud within the digital asset space right now. and so there are allegations when there are episodes like continental pipeline episode where a digital currency is used to make the transfer the people think that that is a prevalent use but quite frankly it's not a prevalent use that doesn't mean that we don't have to be very careful as we're legislating, regulating in the space to protect consumers and

to protect the integrity of nonfiat currency nobody's in a better position to do that than the united states that's why i want to innovate in the space and work with other members in congress and regulators to innovate in the space, so we can ferret out those allegations and those opportunities around the world but still keep it free enough to innovate and be a great store of value for everyday people all over the world >> senator, while we have you here from -- i don't know if you've been on before i hope to have you on a lot, but being from the great state of wyoming, kind of a red state, you point out -- and i hear it said all the time, infrastructure is bipartisan infrastructure -- i hear that all the time but you're disappointed and on the record saying that you're disappointed that the biden administration has made it such a partisan issue. what do you mean by that >> well, the committee that i'm on, the environment public works

committee, put out a $35 billion bill, bipartisan and unanimous out of our committee, to pay for water and sewer. this week we'll probably put out a bipartisan probably unanimous bill on highways at $311 billion over five years. that's how you legislate that's how you spend money that's the appropriate way you don't pick big numbers, gee, let's spend $2 trillion, who wants what what shall we spend it on? we're supposed to be -- that's exactly the opposite of what we're supposed to be doing we're supposed to be finding what infrastructure needs do we have, how much is it going to cost to pay for them and how can we put it out in a way that is predictable and find certainty that is not what the obama administration is doing and that's why their effort is going to fail. >> senator, we appreciate you

coming on and you'rethe first woman from wyoming to be in the senate, i think. congrats on that, too. and it's -- we hope this is, like we say, the beginning of a long relationship. love to have you come back on, especially -- you must stick out like a sore thumb. do people avoid you as you're walking around there and kind of go, whew >> well, it is kind of a new area of expertise. >> we get it around here i get it around here anyway, we appreciate it thanks for your time >> thank you, joe. >> andrew. coming up when we return, ev startup lordstown motors saying it needs help and money. we're going to bring you an update with shares under big time pressure this morning later, we'll be speaking with airbnb ceo brian chesky a few of this morning's top headlines. united airlines seeing demand improving faster than expected

in an sec feek this morning. consolidated ticketing this month have hit levels similar to 2019 with the domestic leisure category above 2019 levels meanwhile, source telling cnbc that amazon is going to announce a deal by mgm studios this week. projected price up to $9 billion. it will make the purchase amazon's biggest since it bought whole foods. a federal judge questioning lawyers for apple and epic games as the high profile antitrust trial wrapped up the judge will now wade through 4500 pages of testimony in a decision process that's expected to take several months stay tuned we're watching sawonnbquk cc. n this is us talking tax-smart investing, managing risk, and all the ways schwab can help me invest. this is andy reminding me how i can keep my investing costs low and that there's no fee to work with him. here's me learning about schwab's satisfaction guarantee.

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shares of lordstown motors slashing the production plans and says it needs more capital phil lebeau back with us now >> as you take a look at shares of lordstown, it's being hit by three things in terms of its outlook. they blame the supply chain, the fact that covid-19 has driven up costs of raw materials and other things that's one issue the other is that in 2021, remember, they're supposed to start production after the third quarter. they say they are going to be bringing it down by at least 50%. that will be more like 1100. they do need capital they have said that this vehicle

right here, the endurance pickup is costlier than planned they're looking at two things, one, either capital or capital and a strategic investor here's the ceo steve burns. >> a lot of people are in this business that can help us in some capacity, and so when we say strategic, we're not thinking -- it's not kind of tan againstal, it's a big thing in terms of help and money. >> this is why shares of lordstown are under pressure the company has said it needs two things it needs capital they're not saying exactly how much do they do it in some sort of asset-backed loan or do they turn to a strategic investor and that brings up the question, who would want to be a strategic investor certain automakers would not want to touch lordstown. they have their own ev plans do others take an interest,

maybe buy a stake in exchange for a couple billion dollars all of this is going to be playing out over the next couple of months for lordstown motors they plan to get into production on the endurance pickup truck by the endof the third quarter. but at this point, they expect to have this 50 to $75 millions by the end of the year unless they get into a huge amount of capital. >> that's a lot to partner and bring your expertise phil, thank you. we'll check in with you soon >> you bet when we come back, we are live with airbnb ceo brian chesky they announced platform upgrades to help with travel surges ay tedstun, you're watching "squawk box" and this is cnbc. ♪♪

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let's get a check on the faang stocks joining us to talk about the sector, what happened yesterday and what he sees happening in the next several months in the markets is barry knapp he's at iron side's macro economics. barry, yesterday it was the tech stocks that really propped things up. nasdaq was up by about 1.4%. it was the biggest of the major averages gainers what's happening with

technology why these rapid swings have you lost faith in tech? do you think it's going to come back in a big way? >> i've got a nuanced view on tech since roundabout august when i took it from -- after being over weight for about 10 years to a market weight my longer-term view through the cycle was the benefits of building out the cloud and digitization start to accrue to the consumers of that technology consumer companies and health care companies and the like. i thought the way mark mahaney characterized pe versus price to sales stocks this morning captured this general rate dynamic pretty well. there is clearly going to be a recovery in capital spending this year from both the trade war, which the press business had and the pandemic that's going to boost software sales. it's going to boost the semi story not coming away any time soon. cyclical companies within

technology like very much and think that you should at least be marketweight if not somewha over weight but the high flyers are going to be impacted by rates. i think we're close to another leg higher in the back end of the treasury curve when the bipartisan talks about infrastructure collapse and then schumer and pelosi file for reconciliation and are determined to spend another 1 to $2 trillion in deficit spending. that's the incremental factor that drove rates higher and i think we'll get back to that in the near term. that will put pressure on the super high priced to sell stocks as mahaney described them. the core cyclical parts of tech, i think, there's going to be a really strong fundamental story there. numbers are going to go up >> barry, i love how you follow along. you were watching mahaney this morning. heard what he had to say you made a lot of assumptions in a very short period of time there. you think that these -- the

bipartisan talks are going to fall apart, one. that, two, the democrats are going to move for reconciliation i think that's a jump in itself. they have to have the votes to be able to do reconciliation i'm not sure that they have them at this point. how do you think they get to reconciliation what do they have to do to convince their caucus to even go along with them? >> even the process of filing for reconciliation doesn't require the votes for them to actually push it through is another story altogether but my broader point here is we've been very focused on the fed and when the fed starts to withdraw liquidity, which still would take at least two really strong payroll to get there. it could get pushed back further than that. in the meantime we are going to have another round of fiscal spending and i think it's highly unprobable in my contacts consistent with this that we would actually get a bipartisan deal done.

even if we did do a bipartisan deal though, it would not involve tax hikes on corporations and capital gains tax hikes in the same way that the original democrat plans would so that would still be probably on balance more stimulative just because of the nature of how they'll try and raise the revenues to offset the spending than would be a deal the way it's likely to ultimately get done, which will be tax hikes that will never collect the revenue they expect them to collect and a fair bit of spending, much of which will be more near term rather than longer term. that'near term rather than longer term that's the path we're headed down net 2 or net 1 trillion, i would expect that's where we'll be within a month or. so and again the incremental spending is what really shocked the long end of the bond market higher from january 5th. and you could see this if you look at long-term yields which

had not moved from late august through january. they were still about negative 40 basis points. they gapped 60 basis points higher by the time we signed the american recovery plan and now settled back in. that is the thing to watch and that will translate to some of the more speculative assets like bitcoin and most leverage reflation targets. >> you think the things will be back on as we get later into the summer we got to run. >> -- couple of weeks. >> how soon? >> well. >> all right -- >> -- talks -- >> right right. thank you. great talking to you coming up, brand new data on americans upcoming travel plans

as u.s. covid infections continue to fall we'll bring you the numbers and speak with airbnb ceo brian chesky and tomorrow, cybersecurity livestream all the latest cyber and hacking developments with key government leaders, including the current threats facing corporations and the country. register at cnbc events.com ay tedevolve cyber stun you are watching "squawk box" on cnbc i really hope that this vaccine can get me one step closer to him. to a huge wedding. to give high fives to our patients. to hug my students. with every vaccine, cvs is working to bring you one step closer to a better tomorrow.

we've got an update now on cnbc's first ever in fact. t nft. the auction for the token is now up to about 7 ether, or close to $18,000. you can bid right now at mintable dot app/cnbc. the proceeds go to us aism speaks and the counsel for economic education it ends tomorrow at 10:30 a.m. eastern. and if you don't want to participate in the auction there is a limited number of tokens for sale at a set price.

by the way this is a carbon neutral event. >> big on its season of reopening and what it likely means for travelers and investors. teo brian chesky joins live afr the break. stay tuned we're back after this.

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seema mody joins i now with more good morning. >> good morning joe. that's right we're not only seeing a surge in travel miles per hours are now willing to spend more on vacation according to a new survey conducted by deloitte. nearly two-thirds of americans trips for budgets are back do before 2019 levels 33% plan to spend more than a thousand and 20% are budgeting more than $1500. including hotels, airfare. strongest markets are the florida key, maui and miami. researchers found middle to high income households are reprioritizing experiences and feeling more comfortable with groupactivities as vaccination gather pace. the most popular activity booked by travelers on trip advisor include indoor sky diving in virginia st. thomas and wining in lisbon.

and -- putting some of those pto days to work andrew. >> seema thank you just in time for exexpected surge in travel, airbnb has announce ad major late of updates. new search options with focus on flexibility and knew features that make it easier to become a host and plans to expand customer service team. airbnb brian chesky. airbnb is a forearm member of the cnbc disrupter fifty list which we introduced this year's version today. great to see you brian i follow you on instagram and see you already noted you are so much of a morning person so i appreciate you getting up early. >> thank you for having me here. love it. >> did you go to sleep or did you never go to sleep that's the question. >> a few hours i was debating if it is less than three hours you may as well stay up but i took a little bit of a nap to get up for this time

so yeah. >> we appreciate the nap in between. help us with what's happening here you have made a new refresh, upgrade on the platform. ahead of what has been remarkably astonishing reopening of the country here. and potentially parts of the globe. how are you seeing it play out right now? >> yeah, i would say two things, andrew number 1, are it is almost unimaginable to see where we are today with travel. because a year ago people thought it would take years for travel to recover. what we're seeing now is a biggest rebound in travel probably in nearly a century we're already back to 2019 levels and this is before borders have completely reopened before people have really is started traveling again to cities. we think this is going to be a travel rebound unlike any other. but the second thing is i think travel is going to be different than before. there is a lot less business travel happening i think the bar to get on a plane to go to a meeting is lower. but i also think the more we're

stuck in a home the more we want to travel and be with people we care about people are getting in cars and planes they are not just going to city, they are not just going to big destinations the key thing is they are going everywhere they are going everywhere really all the time and staying longer. these are the biggest trends and traveling is starting to blur with living 24% of business is really now monthly stays. allowing people to live on airbnb as well this is really just a whole new way to travel, where you can stay longer as well. >> talk about some of the platform upgrades it looks like one of the main points you are trying to bring forward is the idea of actually directing people to places that have hosts that are available. because by the way, availability has become frankly a big challenge. i'm also curious how price sensitive you see people today it appears there is a little bit of a yolo situation happen where

people are spending more than they used to. >> in most of the upgrades we did we sense the ipo we could have take an breather we said no this is going to be the biggest rebound. so we made a bunch of upgrades the most important one is the new feature called "i'm flexible". if you don't have a fixed date or fixed vacation where you want to go which is most people we can now point you to where we have the very best airbnbs so go to the calendar. instead of saying i want to travel june 20-25th. ugh you can press a button that says i'm flexible. do you want to go a week, weekend, o month and time this summer and we can point a man to where we have supply this is a huge game changer for really balancing supply and demand as far as your second question, prices it is really all over the map.

again, we have millions and millions of people coming to book airbnbs we've got everything from 50 dollar night rooms to 5,000 dollar a night villas. what we're really seeing is people want something unique and special. we're seeing a huge surge in bookings for tree houses or castles or boats or really interesting architectural wonders. people really want to book homes that are the destination something unique that is what we're starting to see. >> how much of this is being driven by, and how do you think about the regulations that are happening in some of the major metropolitan cities, not just in the united states but across the globe when it comes to airbnb style hosting? and what that is going to do to the business and how much to actually try to focus on locations outside of those major cities with less regulation? >> it is absolutely true the less densely populated areas

typically are going to have much more open regulatory environments and what covid was for airbnb was a bit of a reset button for us with cities because now a lot of cities who have -- who had too much tourism before thought they did. >> now have undertourism and they are reaching out to us. we had a hundred destinations and marketing organizations reach out to us asking for help to drive demand towards them but the big shift in travel, if people aren't just going to new york, they aren't just going to orlando or vegas they are really going everywhere this is a major shift. travel redistribution. so that is a pretty big game changer. >> brian, customers may be very happy about the investment you are making in customer service i think investors want to know how expensive it is you wouldn't matly going to be and what it means to your path to profitability. >> i think we've gained a lot of efficiency and i think people will see we were actually more profitable in the midst of a

pandemic because of some of the structural changes we've made than the year prior. we've reduce ad huge amount of marketing. with have the same amount of traffic as two years before the pandemic with half the marketing services getting significantly more efficient. and one way is reducing the number of defects or issues that make you call customer service in the first place we're making metronomic improvements and you are going to see that up and down. >> becky >> brian, real quick advertising, i know that is something you cut immediately during the pandemic as you were looking for ways to cut costs and save up on things. >> yeah. >> are you spending? what's your budget now and do you even need to advertise? are people just finding you. >> to be super clear we don't need to advertise. we could shut down advertising and be fine. we didn't have to do any we did decide to do advertising

this year. to give you a step we have the same traffic right now of slightly more than this time in 2019 with half the advertising budget so you could think about getting twice as efficient we don't have to do advertising but we wanted to make an investment in the brand and so we did this really big campaign "made possible by host." because i think market is a education. and i wanted to make sure as we saw a once in a century travel rebound we want to tell the story what makes airbnb different. unlike other websites you get a host a host who can make sure you have a great stay. we get a lot of direct traffic more than 90% of our traffic sun paid or direct >> another question. you talked about people living potentially in places for weeks if not months. in part a function of what we might describe as the new hybrid work life that people are talking about. i'm curious what you folks are doing in terms of hybrid versus

inperson, versus working from home and also how you think about some of the company, including the big financial companies in new york that are actually pushing people back to the office and frankly how long this hybrid life may or may not last. >> we are, i guess you could call us hybrid we're allowing people -- we told people in our company you don't have to come back to the office until next september i wanted to allow people to go another school year before feel like they had to uproot families we think the future is a combination of, hey number 1 we're benefitting from people living on airbnb i want to model what we're benefitting from but i also think we're a critically led company, collaboration happens in person. we're going find some balance. we're going spend the next year designing it i would just say this. i think it is hard to design a postpandemic world in a pandemic i think all the companies that are saying here is our system, three days a or week or you have

to dom back. i think all offous are going to be forced to adapt and any company forcing people to come back the real test is two years from now are they able to retape all those employees? i this think market is going to determine how we work, not the corporations because we're going to all compete for the very best people. >> i got a final potentially hard question. which is your sponsor of the olympics that is supposed to be coming up in less than two months in tokyo. the cdc recently said that u.s. travelers should not travel to tokyo given the rapid rise of covid. there is headlines every day about the number of people in hospitals in the lack of ventilators and the like masa san was on our show and recently came out and said the olympics should not happen he fears for japan what do you think should happen? >> i don't think it is probably best for me to wade in on that you know we are going to sponsor the olympics but our sponsorship

is quite different sponsor of athletes and supporting athletes over the course of nine years i'm very supportive whatever the country of japan and ioc decides. we'll be ready and we'll welcome travelers around the world >> thank you for waking up early or never going to sleep or napping or whatever has happened and we look forward to seeing you. maybe we'll come out next time and see you in person on your coast. >> love to see you >> we'll stay up late next time. >> exactly appreciate it. thank you. >> talk to you soon. we've also got an important note that which is in a little while. "tech check" is going to be digging into the airbnb's news with its updates platform with a streaming show on cnbc.com including linkedin and twitter wherever you watch video 10:00 a.m. eastern time. don't miss that conversation this morning.

>> number two, they can close down all the exchanges in china, and they can't do anything to the peer to peer decentralized exchanges. makes it hard for china to do anything even if they want to. >> i totally agree

i think the chinese are completely befuddled about what to do. they like to control everything and so have their own currency and say you got to play ball but the whole notion is that it is hidden. the and there are many shady outfits involved lots of different coins. but young people, if you ask them what they care about, it will be crypto, then crypto, then crypto. and then maybe ge because it is low price stuff. honestly we have to start realizing that this is the world that younger people are in. and we've got to do everything we can to shine a light on it. right now i think it is about as unregulate as anything i've ever seen in my career and it is incumbent to make not so it is regulated but at least we know what is going on. >> i don't know how you do it. couple of great pieces in the journal today. there is not even central servers for decentralized exchange and you can't -- you couldn't find it, i don't think at least on the exchanges. you can find, trace it down who

the bad acts are i don't know if you can actually do it. i don't know if you read but showed on one deal where there was a ransom paid. they did it in ether and they actually totally laundered it because you can't even use regular currency on these exchanges. it is only crypto on the decentralized ones it is crypto for crypto. so you can't trace it. >> incredible. nft, lot of places you have to buy etherium if you buy etherium there is different ways to be able to buy and it different places you want to buy it. if you buy ethereum and keep it you can get 5% while you own the ethereum loaning out to others. >> if market makers. >> yeah. that's how you make the must be. but this is wild west. but it is -- you know i talked the young people all the time and they just are interested in there. >> you are a -- pomp fan pomping very controversial you've -- i deal with them

someone, when comes on the show and stuff. at this point you -- you know, he's either -- it is like passive aggressive people love'em or hate'em. >> bitcoin was at 12,000 i had about a 45 minute talk with him on web cast and i committed to immediately buying a huge amount of the talks i thought he was so compelling and that is what i purchased the farm with. i just purchased a farm. jokes about it but it is a nice. 120 acres and i got it from listening to pomp. people may think pomp a fraud. me, i got a farm because of pomp i like farms it's real. >> -- is it? >> yeah. thank you, pomp. >> all right jim. thank you. is and you think micron's important too. >> always -- >> -- see you in a couple of o minutes. up next, top stocks. might want to watch.

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just over a half hour to go before the opening bell on wall

street dom choo is here >> we're taking a look at the analyst calls right now. first of all, chairs of coinbase which are moving this session. the crypto exchange has a j.p. morgan overweight rating with $371 price target. set the leadership position in crypto trading for the u.s meanwhile -- lowering target price siting falling bitcoin prices lower trading volumes virgin galactic shares down after a massive day yesterday on heavy volume analysts are cutting the target place from 25-30 they site risks around potential for delays in first anticipated commercial flight. conservative there 4% declines.

and ending on shake shack, getting multiple calls from the street shares up 50% right now. goldman upgrades the chain to buy. both looking at the recent pull back in shake shack stock a as a way to get in on the value side of things. >> did well with the shake shack -- we've tried it. we actually made up a little diddy i think. do you remember what it was becky? order a shake at the -- no >> she sells shake shacks by the seashore. >> she shells shake shack by the seashore. >> she sells seashell bs i the -yes.

>> 1.59% maybe it is how great technology is for deflation see you. join us tomorrow "squawk on the street" is next ♪ good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber futures steady s&p within one percent of a record close bond yields are helping. the 10 year did fall below 159 the lowest since may 11. and 13.2 jump compared to march year ago market muted melt up led by technology and reopening plays today.