finally the ten-year note. show you quick trading at -- as we flip the board around there -- looking at ten-year note 1.3 of 1.9 melissa, thank you, again, for another day of hanging out >> my pleasure. >> three more to do. see you in the morning, and for now we should hand it over to the folks on "squawk on the street" and we will all watch mr. adam aron. "squawk on the street" begins right now. good morning, and welcome to "squawk on the street. i'm david faber. along with jim cramer and we are live from the new york stock exchange carl -- has the morning off. >> and joe is not on the voe. >> show. don't even have john toy do introductions. a lot for you this morning of course. futures, setting up for the open half hour from now by the way, amc, it's one of the

biggest pre-market gainers lots to talk about with chairman and ceo adam aron. yeah joining us from a few minutes. jim looking forward to that interview he promised to both of us and he is making good on that promise. >> i reached 0 ut to him when i realized, of course, the company was reporting and we're going to get into this. a considerable cohort of people who embraced the stock market. evident from this conference call, and undeniable and not necessarily something we should sneer at. >> no. >> because we want new investors, but i think jim chanos from the previous show raised good opinion about why the stock is so high. >> talking about all of those things before that, jim what caught your eye in terms where we stand in the markets, bond market? i don't know take it wherever you want. >> i know, david, it's more in

your baliwhip, but once again, do you think that something's worth -- a strong company comes along. it's not it's worth more. >> worth more to them, but still worth more to cm. >> i'm watching, like you are, saying -- i keep seeing those and let me tell you what else is rampant. >> by the way, i'm going into detail a very complex back and forth here jim is referring to the raised offer from canadian pacific to buy kansas city southern going against obviously what is still a higher offer from canadian national, but it gets complicated. we're going to break all that down a little bit for you. >> and down badly. it meant nothing to the market. >> you were-were you surprised by that? >> yes w while going up, great for the economy. goes down and nobody focuses on it what people aren't focusing on, david, all the little companies

that are easing, starting to get orders david, you and i are skeptic of the fisker morgan comes out, bull case. about a lightning emoters. a little company suddenly that a, deal with berkshire hathaway for zero emission trucks things going on of these stocks you and i said maybe some day something could happen, maybe something -- infrastructure is moving. >> you think the infrastructure -- even though it really doesn't have the climate component, obviously, many on the left hoped for >> we're hearing from many people that there's money for everything lightning emoters, simple. city transit buses based on, on electric david, everything electric is flying and echannels is trying to justify it. overall what it is, people feel the infrastructure bill is the beginning of us catching up to the rest of the world.

when you look at that. >> yeah. i mean, fisker the best outperformer of those names. any number are up this morning jim, listen, thrown a lot of money into kniss sector a lot of money proved into it you and i said many times there are going to be winners and losers still talking an sometimes unproven technology and talking about discounted cash flow models that talk about way out years when you're actually going to be producing significant amounts of cash flow, if everything goes right. >> and then again something like plug power andy marshall yesterday. stock from 25 to 29 with what he said because hydrogen is the bill and europe is ahead of us, asians ahead of us. almost have to look at like, joe biden saying, know what? let's stop being second rate let's get to the paris accords what do we need? you need green hydrogen to get to the paris accords he is thinking about the paris accords. now, that's something -- >> whoa.

they're meeting in glasgow seen to come up with new ones new targets. conceivably, according to the u.n. report from yesterday going to potentially need, stave off theish 1.5 degree celsius rise in sellious. >> celsius. >> this president is about taking leadership when it comes to emissions, and we have to start focusing on the companies. you know, pump power, david, means fortunes, but it could get fortunes that's the big difference. what's happening, suddenly a land grab for money from the knoll government haven't seen it in a long time. >> a lot of money available in markets even with the federal government funding business models that require a lot of money before they can, may get to profitability, jim. >> well, that brings us to adam aron and ability to fund things on the backs of shareholders. >> right. >> hundreds of thousands of them and i am proud to bring in adam

aron, amc's chairman and ceo, who joins us first, and i think maybe only on cnbc adam, always great to have you back how you been >> good morning, jim good morning, david. i'm great. as you know, we just reported a fabulous quarter way ahead of market expectations. we would really like to think, after this very long 16 months of covid that we can see recovery in sight ahead. >> well, let's go over that. right now in the conference call you talk about the idea that you've lattered the debt which is very good meaning there's no big payment due right now. obviously, you've lowered the cash burn. it's much better, but then in the call you said, look, i'd like to race capital others do, too, but you've obviously taken the pulse, because you're on twitter and speaking to a lot of

shareholders says let's not do that's pt previous guest james chone nose set cinema mark is cheaper, imax so much cheaper. why not say let's do convertible bonds? let's do something that raises capital given the fact that the stock's still very high? >> let's start and remind everyone how much capital we've raised in the last year. since april of 2020, amc has brought in between $5 billion and $6 billion's capital either from raising equity, raising debt or getting concessions from lenders and other, companies like our landlords and we ended the first quarter of 2021 with $1 billion of liquidity. that's cash and undriving revolver, compared to a company running out of task height of

the pandemic last winter that's where we were in march of 2021 that billion dollar quarter ending figure was the single highest quarter ending liquidity figure amc's ever had in its more than 100-year history that record set march 31 june 30, thanks to having raised another quarter billion of equity in may and june ended with another liquidity position end of second quarter. june 30, of $2 billion actually was $2 billion 23 or $2 billion 24 more than $2 billion we beat the 100-year record for amc by a full $1 billion it was double where we were in march, so, yes >> okay -- >> sure, i'd always like to amass the largest war chest i can get so that we can do things with it, but we do have the largest war chest amc has ever had. your question specifically about

convertible bonds. we sold over 400 million shares between april of -- actually between september of 2020 and june of 2021 we actually don't -- converting is not an option until such time agency shareholders authorize more shares. >> you did say you need to play offense. and then went over multiple ideas in the conference call that need more capital then you said would be very successful so i was confused. because obviously playing offense could mean raising more capital, or are you going to use your -- a stock that many feel is inflated to start buying more than you already have, and you've made some's great acquisitions >> well, look. we have $2 billion of liquidity. that gives us plenty of capital to go on offense with. and, for example, we said

yesterday that we're adding somewhere between five and ten very important theaters in the united states. we already announced specifically two in los angeles which were the second and fifth highest grossing theaters in los angeles a few years back these came to us through arclife pacific theaters who did not resume operations as a result of covid, and we said we think we've lined up with, between five and ten theaters within a few weeks from now an example of playing offense. another example of playing offense, we're going to get quite involved in the world of cryptocurrency we announced yesterday we're going to be accepting bitcoin as payment online for online purchases for amc admissions and concessions. there's much more that we can do with cryptocurrency. we got a big population, an avid population, of customers, of transactions, of consumers that's an example of playing offense. a whole lot more ideas we said we were going to go,

look at alternative programming. we just had our first two ufc fights that we showed at amc theaters attendance was very strong this month in august we're showing our first two concert movies in ages, with the artist chance the rapper and halsey so there are things we can do, $2 billion is a nice cash reward biggest we've ever had to play with, and as i said, we're the largest theater operator in the world and playing on offense >> all right, so -- >> it is true covid put us back but that's behind us now. >> now, you mentioned obviously the apes this cohort of investors that is very excited about amc stock and you also mentioned something they want very much. partnering with gamestop on a number of possible fronts. now, how are those talks going have you sat down or zoomed with ryan colin, the seer of gamestop

to get something going >> i think actually use of the word "apes," i look at these millions of individual investors as the, who really -- came on the scene just in the last six months they're the owners of my company. they don't work for me i work for them. they're my bosses. and just like all of the memes respond to shareholders of their companies, we're certainly interested in the suggestions that are flowing to us from the owners of our company. >> so you talked to ryan cohen then >> no. no. >> why not isn't he a neighbor of yours >> what i said yesterday on our earnings call when for the first time ever we took questions rather -- most of the questions on our earnings call dpram our individual shareholder owners rather than professional securities analyst, was that

we've gotten a lot of good ideas flowing into the company from our company's owners one of them was that we should partner with gamestop. i was asked if i was willing to do that. i said sounded like an interesting idea to me and that i would reach out to gamestop, however, i also said yesterday that there have been no communications between gamestop and amc as of yesterday afternoon. >> right adam, it's david i brought that up jokingly a couple months ago right here funny how it's become something that perhaps could actually become a reality i want to talk, though, more about reality itself adam, you've done a lot of things to navigate this company to calmer waters you need to be applauded for that, but today you're with this move up, the stock's worth about $19 billion. you don't believe it's in your interest to tell your shareholders that you're still an exhibitor of product, right of movies typically? perhaps other sporting events? is there any path you can

justify for having that kind of value given the financials on a fundamental basis as we at least try to weigh them that you're going to be able to produce even under the best of scenarios? >> so, guess what? i think all of us have been watching the financial markets for a very long time and we can't always explain how the financial markets act. a market is a market there are willing buyers, willing sellers. we've made it very clear, a clear disclosure a few months ago that our stock was trading away from historic fundamentals. and -- and we -- we've made no bones about that, but, you know, you at cnbc, i have great respect for all of you there, you focus on our share price every day. what i focus on is running the company. and what i focus on is the recovery of the company.

>> right. >> ours was the company that was the strongest player in our industry on the planet in february of 2020 the covid pandemic shut all 6 our theaters in, 1,000 of them in 15 countries in the span of a week, our revenues went from $450 million a month to $450,000 in a month our earnings -- wenten from reliably positive to non-existent and as you say, we had to pull a lot of rabbits out of the hat. >> and did you it, adam. you did it yeah and you're detailed a lot of that in the last ten minutes in terms what you're able to do, and it's worthy of praise, but i still wonder i mean, i'm looking at a loop capital markets, $1 price target credit suite, $1.55 despite a $2.1 equity raised over the last year remain concerned about leverage,

shrinking theater trickle window, number of screenings to long-term attendance trends. you know, nobody's words are going out of business, of course, and you've delayed all debt repayments and things of that nature, but, again, adam. to understand the long-term fundamental strength of this franchise i just -- it's being treated as though it's the greatest growth company of all-time and it's not. >> well, look, the same people who are down now writing with equal center ten months ago that we were going out of business then. they've been wrong. and -- who knows what will happen there's only one thing i'm certain of tomorrow our share price will go up it will stay the same or go down. >> right. >> and as you just said. wait, you just said. >> yeah. >> our focus is on building this company, taking it forward, improving its performance.

that's exactly what we've done some people think heroically over the past year, and the same team that has paid attention to driving this company through, improving its fortunes going forward is the same team that's going to take it forward from now on how the market reacts to all that, we're all going to find out together. >> i guess if i was in your position and hit the lottery ticket having it's reddit crowd gather around mere, believe in my future and spit my stock up, i'd be selling a lot of stock, adadam you've become an incredibly wealthy man over the last year, ho you do you view that and potential to monetize that wealth >> talking me personally as opposed to the company? >> yeah, and your two children. >> because the company -- did monetize very much so. >> they did. but what about you what about you >> hey, look, i've run this company five and a half years

and haven't sold a single share yet. i believe in its past and its present i believe in its future. i did say on the earnings call yesterday that i hit my 67th birthday in september. at some point in time this winter i suspect i need to diversify my assets a little bit and i intend to file a plan, but my focus isn't on my personal net worth. my focus is on restoring amc to health and prosperity. this is a 101-year-old company. >> you know what quickly, on that -- on that bake idea, basic idea, fundamentals itself. theatric's, signed with warner fairly important those believe things changed forever as a walt of the pandemic, result of direct to consumer and movie theaters will become a less and less important way for producers of that product to actually showcase

what they have and, therefore, you're not going to benefit as much as in the past? >> well, you're right. we signed a very important -- with warner brothers experimented starting in december going to the home simultaneously with theatrical release, and it was a six-month experiment and they've already abandoned that experiment. because -- when i talked to the executives across hollywood, they tell me that the proven way to build billion-dollar movie franchises is to take it to theaters first. >> but -- but, adam, i paid $30 for "black widow" and dynamite i watched it at home didn't have to pay the cost of that popcorn you charge a fortune for. been have to buy a diet coke, right in my kitchen. an opportunity, i have big screen, adam, i wish you had been with me we would have had a dynamite time. >> gone to an amc theater, we'd

have had more of a dynamite time tell you why one of the major studios who took a film to the home early did a survey and they found that people who watched that movie in the theater liked that movie twice as much as the people who watched that same movie at home. there are no concerns about piracy when movies are coming to our theaters as there are concerns when movies are taken to the home. and as for this notion of people staying in the house gee, i think if covid's caught us anything at all, it's people want to get out of the house. the -- everybody has a kitchen, but people go to restaurants to eat. not all the time, but they do. amc and movie theaters, we think competing against television sets for 75 years, we've been doing that people watch a lot of tv at

home, but they also go to movie theaters, and i think that's because it's an event. they want to go out. they want to get out of the house. they want to be with other people, and a horror movie, they want to scream at the same time. in a comedy, laugh at the same time in a rom com, romantic comedy, they want to cry at the same time there's, imagine us going a theater -- >> i don't want to get covid at the same time at these people with the delta you guys have done unbelievable. i prefer to sit at home, okay, with less risk of delta than go out and have a risk of delta and unvaccinated people. why not do what frank del rio does at norwegian, ask the federal court if the we've been vaccinated to feel safer going to the movies. >> start a couple plays. several important places you mentioned's number one, no bigger component of vaccination than amc i said on this network six months ago the most important demand in the movie business was the ceo of pfizer.

because while i am quite optimistic about the future of amc, the future of theatrical exhibition, despite all concerns that you properly raised, we would be nowhere without vaccination. but the big difference between our country dealing with the delta variant and our country dealing with the covid virus last winter is that 57% of the u.s. population has been vaccinated already, and i'm hopeful that the delta variant will remind the unvaccinated how important it is that they get vaccinated that's the first thing >> okay. all right. >> the second thing is we spent a tremendous amount of effort working with clorox and faculty from harvard university's prestige school of public health on safe and clean protocols to make sure we operate our theaters safely and cleanly. we were so far ahead of the rest -- not just of the movie theaters but all of industry, on air purification and upping the filtration in our hv ac systems,

because we knew way back in may and june of last year that this virus was much more a respiratory spread last, not least, i have a cruiseline, irony, given your question, jim, and i -- my hat's off to frank del rio and others -- i know you ran norwegian. >> pardon me >> you aren't norwegian. why i thought ute go for that one? >> ard norwegian in 1993. >> that's why i thought it was a good question t. is a good question. >> give me this. so you're a showman. i've never, never afraid of being call add showman isn't bitcoin a bit of a showman? is that a great way -- if i came to a movie theater, i have to do it ahead of time and used ethereum i mean, why? i got it you want it? >> well, with keep on hearing suggestions that we should start accepting cryptocurrency and we

found out it's very easy for us to take cryptocurrency and in the process, involving third-party processing in the effort, taking the currency risk so if people want to pass bitcoin, pass in bitcoin having said that, as we learne more and more about cryptocurrency, cryptocurrency is quite, a trading option for companies who have millions of consumers and hundreds of millions of transactions, and that's amc so there's something quite unique here, and i also think after the cryptocurrency, maybe -- market valuation that david talked about earlier if i can say one thing and then wrap up. >> god to go ten seconds. make it quick. >> i understand why -- you base concerns about exhibition and i remind you, movie theaters have been central to the cultural

fabric of american life for 100 years, and we are going to remain central to the cultural fabric of nern life for the next 100 years. >> let me do this. congratulations. you've done a great job! and you know how i feel. privately and publicly i will say that, because your company would not have survived without your incredibly smart work and cooperation of the shareholders, who understand exactly what you're trying to do. win for them i am congratulating you. great job. >> thank you so much >> all right, david? >> thank you, jim. coming up, canadian pacific says a new take overis superior to a rival bid bring you the latest on this railroad bidding war a lot more "squawk on the street" for you. we're coming rightac bk.

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all right. time to get to jim's "mad dash." a minute before we get started with trading here at the nyc what are you focused on? >> one of my favorite companies since kevin came in.

kisfk krivg krifk -- cisco turned it around people will love this, david it says, restaurants are back. food delivery obviously way up now, we still don't have things back to where they were. >> right. >> some companies doing better than 2019. what i would tell you, though, is that you've got some, fourth quarter sales increased 82% versus the period last year. that may be enough this, now, will be viewed as one of the great reopening plays so if you think that the vaccination process picked up and things are better, this might be the one -- >> the way people want to play that. >> yes, yes. >> and a big holder there for a long time. >> yes, and mr. huracan close to them a couple big hits. i don't know if you saw -- >> on the board, not until the annual meeting quite a few months from now.

>> and very involved in that. >> and from the board p&g. >> good performance. >> very good versus -- outperformed. >> and restaurants -- >> you know what they're doing [ opening bell ] >> and cnbc, back at our headquarters the big board. women's water polo gold. celebrating hers and the team's olympic gold medal well done! at the nasdaq, technology merging corp. celebrating its recent ipo. olympians showing up here, very exciting. >> david, i think one of the things said, right to your wheelhouse. >> uh-oh. >> robinhood buy as company today that actually -- what happened, stock's down for now i predict up $3, $4 before the

day's over. why? enthusiastic, not since i've seen since the mid-90s enthusiastic embrace of stocks, get this, david, without any -- care of what they're worth. >> uh-huh. >> and jim chanos made an interesting term calls them realist investor meaning they believe in nothing. nothing being valuation. >> and underlying valuation of the businesses that they're buying. >> usually something you've cared a lot about. >> typically how our capital markets worked, more or less definitely sway outside of those bounds often but kind of come back. >> a question adam aron, selected stuff about whether -- >> sorry selected what questions? >> whether you would adopt an ape, gorilla mascot because of the ape -- i can't recall when a

group of investors, other than a proxy fight, have identified themselves, so together as apes. >> it is odd. >> i gave to their charity. >> he deferred nerve her a moscot and sure -- we obviously talked to adam about a lot of different things. your take away from what you heard? >> my ache takeaway this man usd capital the way they're supposed to raised $5 billion. they have $2 billion he emphasized most in 100 years. i don't know if you bought that. >> yes, s. >> i've known adam many, many years. he ran norwegian cruise, and del rio now. a lot of irony and excitement. in the end, adam aron embraced even things that some regard as fanciful like you saying, know what maybe they ought to hook up with

gamestop >> a joke i made a few months ago, to you, while you were sitting here. >> right but talked about the many ways they could do things together? >> i know. although haven't actually had conversations. >> that was eleshgtive. >> we will take it under suggestion works for his shareholders not longer silver wake or wanda they are -- >> his people. >> and diversified accept that, but he did not call ryan, which shocks me. after how much the shareholders want him to do that. >> right. >> he did say that he preferred to sell stock, but deferring to the share sholdors. >> yep. >> and he talked about how often he's followed on twitter he, david, in the end, is the great ceo showman. >> that's saying a lot. >> "new york times" said it. his friend jeffrey said it

the -- well -- babbington hi. >> all your philly buddies. >> powerhouses. >> including rosen. >> talk about the rails. an important story one we -- >> what? didn't with add an aron went off the rails? >> i didn't say he went off the rails at all no we'll do a faber report on the rails. >> sure. let me grabgrab-hopeing -- >> announcer: here is the host of "the faber report," david faber. >> johnny introduces the report. have that forever. >> we need matt on the show. winner last week and won again last night. >> madam moving up, winning ranks of "jeopardy" champions. >> i want him here's to help him with management. >> if and when his run ends i

think, matt, haven't asked him, but i think he would be happy to about guest with us. >> yes. >> and explain some of his strategy betting on "final jeopardy." talk about the rails, jim. you mentioned it earlier of course, this morning we did get a new bid from canadian pacific. $300 largely stock. 2.884 shares, at $90 in cash they're going to fund that, by the way, through $9.5 billion in new debt the important part already received approval of voting trust that they have to rule on and said, you can do it. take the money in and take on the risk werther you get the antitrust and regulatory approvals that you need to close the deal but shareholders can sell into you. that's where we are right now. they come back, remember, had been beaten by canadian national decided not to compete on price. only to come back now and compete again.

although on the conference call to confuse things even more a bit, think ceo said actually not getting into a bidding war even though it appears they are kind of in something of a bidding war. by the way, their bid is still below that of canadian national. that deal is worth about $322 or so yesterday largely cash with some stock worth that, been a significant spread the question, of course, continues to be, will and when will we hear from the stb in terms whether it will give approval to a voting trust for canadian national? again, a key here. now, we may hear any day there is a belief, perhaps, we will hear prior to at least the scheduled vote right now for kansas city southern shareholders that vote scheduled for 19b th august and possible we'll hear from the transportation board prior to that. by the way, might not get a simple yes or no maybe not quite here

here's what you need to do for us to approval votes trust we have to wait and see. it's also possibly we won't hear anything in the intervening nine days or so and then, jim, kansas city southern's going to have a decision to make this is where obviously that $300 bid becomes somewhat important in that do they put off the joet do they say we're going to adjourn because we're not able to get the shareholder vote approval we need, in part because shareholders now know there's enough bid out there at $300 by the way, had been at $275 now at $300. that's is canadian pacific with their bid. also a question as to whether or not you might want to approve it anyway because of this deal gets term'sated drop dead date, february of next year could match an scenario kansas city southern shareholders approve the canadian national deal even without know be what the sda will rule on the voting trust.

willing to wait until february knows if this deal dies, they can get out of it. creole will be there obviously will be. just came back after four months not being there. interesting to see the decision that they make haven't made a decision. stit waiting hoping it get to something in in the intervening call it a week or so before he put up their vote or get a clear idea whether they could actually get approval for the current deal overen without a ruling from the stb if we don't hear from them in a short amount of time competition of stb itself could change three republicans two democrats now. there is a democrat nominee, a democrat nominee in committee that could come out if this thing took more months conceivably you can see a change from three republicans to three democrats on the five-member pam. >> look at this from the point of view of economics. >> yes. >> incredible to me, a lot of people feel the share, no the

good >> from a rail perspective. >> look at -- things following steel, minerals. >> yep. >> gasoline. natural gas. parts for autos. what these two companies which have a great view of 2022 are willing to spend a fortune means they think, look out 2022's going to be an up year at wall street. out in a down year. >> it is. >> i think very encouraging. >> see it obviously both to, key strategic asset. >> it's a great asset. >> and that cp is back and funny he said on the conference call not getting into a bidding war meanwhile, they could have stayed at 275, if the deal doesn't get approval or gets, doesn't get what they need from the voting trust, by freb could h february, back to 275. accepted a deal to actually acquire this company until cn came along. quick the letter from canadian pacific to kansas city southern.

explains rationale why they say now's the right time for us to re-engage with kcs a proposed merger placed kcs shareholders having to vote on a proposal eliminate the ability to consider superior offers all the while no level of certainty with respect weng the service transportation board will approve use of the voting trust. i know it's complicated. an important deal, interesting one. >> very importance. >> and one we'll continue to follow and update people, jim, soon as we hear anything, if we do could be perhaps any day. >> it's interesting the rails themselves have stalled. not -- >> burlington quarter reported as a part of berk shshire looked good. >> cool going, pretty good, not doing well i feel like the whole group is just kind of -- i don't know on hold. csx being the best one, frankly.

csx had a previous good quarter. look at rails as "the" barometer of what this economy's about, and, remember, wall street is almost uniform that the big cyclical industrials, down year. >> interesting. >> yeah. >> down year 22 over 21. >> yes same with -- >> i know. >> look, a klargest steel company. david, sells five times earnings that usually means people think it's peaked. in other words, looks like a bargain. turns out earnings next year will be half sellin ing 20 times, well 10shg t10 times. i want to encourage people to be bold pe shrunk at every single turn a lot of people, by the way, are

just desperate to see boeing back in the--whankts would you look at jim, a tell to see whether in fact that consensus is incorrect things are not going to slow dramatically does it end up being covid cases? does it -- where do you look to try to figure that out or is it simply too early. >> no. you could look at major technology companies look, apple -- you want to know what the biggest -- this is going to be this year, how well the consumer's going to be apple and its derivatives. apple stock keeps moving, good doesn't, take a pause. in other words, i can look a fedex. u.p.s., they have their own set of problems. believe it or not, ones we have up now, amazon. >> those are all trillion or, trillion dollar companies. >> they're commerce and big cap stocks. >> big doesn't matter. mega, mega, mega so big. >> south weft, united airlines, american, delta. wee need cross-board. >> yeah. >> we have to open

the economies have to open or else fall back on domestic let's look at stock like nike. look at that once they cleared the china ravine. >> donahoe came on last week and spoke. spoke to sara eisen, talked about it. >> a great interview but i see -- yesterday, victoria's secret off the bostic's comments. goes up almost 25% we have stocks, david, in retail for, now walmart reports -- suddenly everyone's excited about walmart. was at 137 couldn't give it away it's falling to the consumer add an aron consumers' going oun. concerned about two things warrant to be vaccinated or have the freedom, the freedom, to be unvaccinated >> and speaking of that end on this name or this symbol. >> what? >> mrna. moderna. up slightly. >> and pfizer. >> know what creeping close to a $200 billion

market value let me put that in perspective roughly twice the size of glaxo. it is larger than bristol-myers, and creeping up on actually, above merck. moderna has a bigger market cap than merck. >> people, remember, all part of the excitement of individual investors. institutional investors paying up your butt but in september -- if the fda approved these drugs. >> official approval you mean? complete approval? >> everybody has who moderna will go get a booster. because of delta. >> get boosters? >> absolutely. >> are we both moderna >> dr. chopra's comment on twitter, unbelievably good, like dr. gottlieb. >> get a booster >> yeah. >> that's fine i want to get a booster. >> solidify things or people like the governor of florida who is really making a stand, making a stand saying that the people

who aren't vaccinated, deserve the protection of the united states, and the judge said it is not a protected class. not. >> and with that, gets over to bob pisani this morning. get more on the markets. bob? >> i got the moderna shot and get the booster you too. i'm with you, david. grinding higher. this is a very, very tough market to short. a lot of concerns about the extent the coronavirus variant might slow down the economic recovery, but it's not hurting the stock market that much look at the sectors now. banks have been great ever since the jobs report. down a little today. industrials sideways tech hit a new high yesterday. energy's a disappointment, of course oil down bouncingalities bit today. look what's moving the markets now. key story right now. grinding higher simply the way to do it described delta variant slowing not derailing the economy. primary narrative we've worked under the last couple of weeks now. fed, traders basically looking for tapering to begin in early

2022 $15 billion a month. it that changed, does somebody suddenly say do $30 billion in november that's a different narrative and that would affect things that's not what anybody believes now. i know everybody's excited about finally getting to the end of this first phase of the infrastructure bill. all priced into the market has been for a while show new a minute. key story, growth stocks holding up a great quarter. not new highs today but alphabet, apple, facebook, the quarter grinding higher. essentially. see what the market does ton a daily basis, mow meant up, mtum hit historic high yesterday a sign traders in the market, yes, momentum important part of this market still a lot of confidence in here volume's very strong recently. not just tech. a little bit of tesla, a little paypal, a lot of banks in this momentum sector like bank of america. jpmorgan walt disney a top five holding in momentum. don't think momentum is tech

anymore. follows what's hot recently and not just that. a good sign for the overall market that you have mtum hitting historic highs instra structure bill. first tase prized in folks, priced in back in may see the big names here u.s. concrete, cleveland clips, make all the cranes, eagle all the concrete around the united states these guys ramped up january, february, march, april and may essentially topped out then. holding up very well not falling apart. doing great. just not advancing, not hitting new highs because everyone had a play as part of the first quarter playbook you want to look at the pave etf. an etf for that, of course pave holding most stocks in the infrastructure space and moved up early part of the year, 25% up so far this year. and even up 25%, $4.1 million

verse the first part of the year up 25% more than 400% in asset under management in other words, people poured money into the infrastructure space in january, february and march of this year and essentially the play is already been set good news. pay attention to that. 11:00 a.m. this morning, see if there's progress on that but the market already has his story a long, long time ago. back to you. >> thank you, bob pisani. still to come, ceo of viking river cruises. discuss how his company is handling the pandemic and the wake, of course, of the delta variant spread. first, give awe quick bond report take a look now at how treasuries are faring this morning. yes. yields how are they a little higher. see it there 132, straight up in that 30-year bond still below 2% we'll be right back.

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i think all of us in washington for a veer long time and we can't always explain how the financial markets act. a market is a market there are lone buyers and lone stellars we made it very clear a month ago that our stock is trading away and we made no bones about that >> that was amc chairman, earlier when he joined jim and myself for an interview. nice to have him mark dticiding he's worth about $18.5 billion. doesn't include what's about 5 billion in data. >> there are people going to say how about i max? and he would say we raised all

this money they don't have any short-term debt there's rental payments. and they want to pay those they paid a lot of them. what i thought was so exciting in the conference call was that he has a stock and he can use that stock >> imax got anywhere near the multiple, delphan would never stop laughing. >> he goes on tv and says -- >> yes, he does. why wasn't it me that could have been me. >> norwegian cruise. >> so, he finally found something that what? >> ran a lot of things

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good tuesday morning and welcome to another hour of 'squawk on the street. carl has the day off we're live from new york stock exchange s&p hitting a new record high. 4440 is the level of the dow, nasdaq as well senators getting ready to vote on infrastructure, possible fed

talk and more earnings from the so-called meme stocks, including amc. >> and we'll get to amc with just a moment. but first 30 minutes into the trading session. planet fitness, missing on earnings but topping earnings as gym memberships increased and the stock is down 1% right now the reel real getting crushed after reporting a loss greater than expected. they did say gross margin was up compared to a year ago but shares down 14.5%. and well end with the online education company raising its full-year outlook and we'll discuss dan rosensweig later >> let's go to amc it was less than expected loss and the stock's up about 6.5%.

hooz been up more than that the premarket. seems to be decoupled from fundamentals market cap over $18 billion. i did ask him about the company's long-term fundamental strength and treatmentads to what seems to be what they expect to be a great growth company. take a listen. the same people who are putting us down now were running with equal certainty 10 months ago that we were going out of business then. they've been wrong and who knows what will happen there's only one thing i'm certain of the share price will go up, stay the same or go down. >> yeah, that is a true statement there he made. listen, he says i got a new shareholder base and i'm catering to them because they own the company. >> and the predictions 10 months

ago did not come true because they were able to raise that money. the stock has become disconnected from what's going on in the bds. it's almost no material aspect of this outlook that is within amc's control. you can buy other companies, roll things up and add events. how many peep want to go to movies do the studios give them content they want with exclusivity right now, i think it's too hard to make the consensuses. it's not heavily followed. so, smaller loss than expected but burned half of the cash in six months >> the call was over an hour long and majority of the questions was from retail investors. i think all there was only one question from one of the analysts you can argue elon musk can use the play book and how he has handled tesla.

but it is a playbook that i think that other ceos that are getting the retail investor enthusiasm are beginning to implement. i also thought the deal with warner around movie releases is pretty key as well, david, given the fact that there has been the whole streaming verses theaters and what that's going to look like as we come out of a pandemic >> reaching a formal agreement with warner brothers to show all of their movies in calendar year 2022 and that would include a exclusive the atrical window before releaseing it on their own platform hbomax becoming a big part of that at some point it will be discovery hbo -- i get confused on that. i think there are a number of

people who watched this earlier this year and many who thought well, at some point the stock will return to the way we typically look at a company like this, which has diminishing prospects unless it were to forge a new path that is unknown to us. but it's august and these things have massive market values >> they do now amc down half, down 50% from the absolute peek trading price. and they've settled at these levels that do really assign much more market cap to them than before the phenomenon started. amc, for example, revenues tracking about half their peek level, less than half their peek level and the market cap is three or four times their peek level. it over shoots directions all the time it's crazy to say $18 billion is not an enormous company right now.

i think the market is fine you have this loyal shareholder base, willing to play these imagine short squeezes and options tactics and things like that and it can go for a while. >> and how do you handle a ceo who's -- all these new ideas to reinvent or grow the concept of going to a theater >> but in the context of -- one distinction with musket, he could plauzably say we're creating the future. >> absolutely. absolutely a growing number of people inside and outside the fed are calling for the central bank to dial back its aid sooner ragger than later here's more on that. hey, steve >> hey, mike, good morning and a growing chorus asking for

faster actions in reducing stimulus rosengrant telling the asoigsiated press by the september meeting we would, in my view, reach the further progress criteria and that would imply for starting to pay for some time this fall. and that's the general consensus that it won't begin until december or january 2023 now, forecasts and more to come amid rising inflation concerns at least three other fed officials joining a faster paper. they include the fed governor, chris wallace. well, they represent -- it's important to remember they have not typically been hawks, having supported most of the fed's

actions during the pandemic. and suggesting the view on the fed might be more widely held. up until now fed chair, powell, kept his committee pretty cohesive now, he has to find a way towards the hawks or steer them back towards the more gradual course he is appeared to favor and we're talking to dallas fed president, robert kaplan we'll get his views on rates and a lot more >> what does this say with the 10-year climbing back up above 3% and staying there >> we had the balance. a lot of it was a result of the jobs report. kind of tells you the treasury market can move in response to economic data. look, what happens with the taper relative to race is a big gap though the idea that waller expressed

was hey, we need get the taper done or get the purchases out of the way so that we have flexibility to change rates. the rate story is a different story. it does clear the way but doesn't necessarily mean a faster rate on the fed >> the conversation around the taper has often gone to we don't really need, do we, the same amount of help we were getting at the heights of the pandemic and the fetd's stance always seems to be look, that's the policy setting we arrived at when the economy needed it and until we meet our threshold standards, we don't want to move off of that. so t creates ocwrtdness of what is it doing right now? if you say the taper is a nonevent, then what was the effectiveness of it while it was underway >> i want to correct what you're saying

because now what you said is 100% true except now we're hearing fed officials voice skepticism in fact, he said he didn't know what prices were doing, except raising prices said it's not helping with jobs. your comments are embraced by other people on the fedple and that's a a reason why the comments right now are significant. >> steve, thank you. as we take a look at the 10-year yield at 133 wanted to get to -- well, they're not done yet and i'm talking about canadian pacific and the decision to mount yet another bid to acquire kansas city sithern. of course, it's in a deal to be acquired for a price that still exceeds that being offered right now by canadian pacific, which came to pay $300 bid this morning plus $90 cash.

it will fund that through cash on hand and new data work. and most importantly, it would say they've already received approve. that's why they would say theirs is above because they've been approved by the fed so, shareholders don't have to take on that risk. there's a line from their press release that kind of explains why now. they had competed for the asset, a deal at 275, they got topped by canadian national and the ceo said they're not going to engage in a bidding war. although it's unclear what this is, if it isn't a bidding war. they think now is the right time to reengage because the regulatory uncertainty of the proposed merger has placesed kansas city southern stock holdards in the unfortunate

position of having to vote on the merger and as a consequence, eliminate their ability to look at other offers that vote is scheduled for the 19th of this months. so, about a week or so away. and any number of people around the transaction, there's a lot of mystery as to when they're going to hear. and that's going to be a key we may not get a clear yes or no it may be if you do this, you can say yes to a voting trust. but here's where we sit and the prospect is they could move off of the shareholder vote as cp would like them to do, it would seem, as to why they timed their current bid at this particular moment >> it's like the song "love

train. "except it's "love triangle train. there's a reason both companies are going after kansas city southern a, it's growing fast, smallest of the class ones and as a takeover target, it is a name. what this creates is, regardless who takes over the railroad, if either one of them end up taking over the railroad, because there's the regulatory risk in general, especially after president biden issued the executive order last month that really targeted the sector around competition and consolitation. so, with that question mark, it would create a rail network that stretches from canada to mexico at a time when, a, we're seeing reshoring of manufacturing, and in the midst of the pandemic and tariffs and everything else over the lasts several years.

and we're seeing economic recovery that's manifesting in the railroads. look no further than the what helped power the berkshire hathaway earnings over the weekend. and they're pitching this idea of deal surtdenty or as close to deal certainty as you get. because when they were originally taking over kansas city southern, before cn swooped in, they had essentially indicated they would approve that trust structure that's the pitch of canadian pacific. it is interesting to see that, through yesterday's close, here's kansas city southern and this is after the eo from biden last month they had been trading down about 60% from the offer, from canadian national. which, according to analystsality city, for example, indicated that, at least from an investor standpoint, there was a

lot of skepticism about whether canadian national deal with hathaway so, who knows. >> there also was -- >> there was a lot, wasn't it? >> a lot of investers have been getting hot. and as far as antitrust regulation here and in china as well still a question about cp's strategy they could hang around till february, when this could drop dead on the cn side. so, we're not done yet we'll keep trying to explain it all to you as you see cp shares down 1.3%. not bad. >> not a cp friendly story but there you have it. here's a look at the road map for the rest of the hour including a interstru with head of viking cruises.

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chegg posting a beat on the top and bottom lines, as this online education company has strong international growth. as you see the shares up 5.5%. joining us is chegg's ceo. i remember the days too small to talk about now you have a $3.5 million market value let's talk about guidance because you did raise it, as i said you talk about your subscription business you said it's a large part of the revenue. it comes from subscribers and they're very predictable so, why are they so predictable? >> look, we know when the school year ends. we go it starts end of august, go through january, then midmay. we've been in the business a long time and what's amazing is we're 1l00% larger than we

were and our growth rate remains well over 30%. we're seeing an incredible growth on top of a higher base and that's because we can predict it because we know students love us, need us, and value us and we know when they're in school it's easier to predict a subscription-based business than an ad business >> and when it comes to the guidance, how much of the growth rate is due to your coming into new markets. you've got early renewal rates similar to what you've seen domestically utilization is similar as well and how much have you already availed yourself of? >> there's a lot here, david interesting enough and exciting for us is we're seeing growth everywhere which means domestically we're see n seeing incredible growth

we're seeing new vectors in the u.s. but outside the u.s., you're right. we said last november we thought we'd hit a million subscribers earlier this year. we said on this call we're comfortable we're going to exceed this number they will be ultimately much larger than the u.s. market because the u.s. is only 318 million people, 50% of the population is below the age of 30 and everybody's going to need online academic support. we expect international, in years to come, to be larger than u.s. business. and u.s. business continues to grow pretty significantly. we're having a great year for our business and weect pect that growth to continue the thing i think analysts are most surprised about is how high our margins are. we're accelerating growth, margins and the opportunity is just getting bigger. it's an exciting time. >> i'm curious

at a time we're seeing record job openings stateside, there's a lot of question about skills mismatch the role of education could play a big part in that especially make its way through congress as well right now what kind of opportunity said are there for your company >> you hit on it, morgan, which is there's the academic support part of chegg, which continues to grow on top of a huge base and, as david pointed out, is growing internationally pretty well then there's the skills part of the business, which is how do we take those going through the academic system and empower them with job skills? on top of that there, are people who graduated who need a refresher or need to learn the more modern skills because unfortunately it's not kept up with modern day work skills like it should be we believe that will ultimately

be bigger than the business we're doing today. more students will need help and more than we're going to end up pieing by themselves that's the role that chegg plays. so, we're seeing the benefits of all the work we've put in. >> i know you made a point on the earnings call that you're in question whether students are in person, remote, as long as they're plugging in and having access to services but the way the stock is behaving, obviously down a bit from when a lot of the perseevled stay-at-home shutdowns were peeking

what chance do you have to not be cast in the role of a pull forward of demand through the pandemic type of company >> you're right. somehow we got lumped into a pandemic stock just to be clear, chegg is agnostic because, as long as the student is taking a class and needs academic support, we are relevant and necessary for them. so, whether they do it in person or do it hybrid or do it remot now, this last semester, schools did all of those things and subscribers behaved exactly the same in everyone of the circumstances. you can't really pull forward academic support it's not like people who were going to subscribe to netflix two months from now, decide to do it now. you're either in school, taking classes or you're not. if you're taking classes, chegg is relevant. we focussed a lot on accounts

sharing. they weren't able to account share as much as before. we've built technology that blocks it. so, they still can't sh share that's a huge benefit to the shareholders when students around the world are sent home, they found chegg. now that they found us, they're staying with us. that was the real benefit of the pandemic for us. it's not like i was going to go to college next semester and instead i went this semester you're taking classes or you're not. it's a misclassification and understanding. and i think they need to see inresults. and you see we're going faster than we expected to grow in 2019, our margins are accelerating national growth is accelerating. eventually analysts will understand what students know,

which is chegg is a valuable asset for them where they get overwhelming value and they love >> we know you'll be back soon esnf and it's appreciated. >> thank you great to see you all again let's check out our etf spotlight. ticker xlp, top earnings include coca cola and pepsi. shares rising after an earnings feed quote, no signs of delta variant impacting demand stock up more than 25% from a year ago obviously a play on restaurant volume folks the world's first fully autonomous vehicle is almost at the finish line today we're going to fine tune the dynamic braking system whoo, what a ride!

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just getting a quick check on the markets the nasdaq is under pressure so, trading around a flat line it's time for a news update. >> so, miami officials right now are evacuating residents of the

condominiums and they determined repair work on some columns was, quote, unadequate. it was already on an unsafe structure list in greece, residents threatened by a wildfire refuse to leave, despite an evacuation order. they're trying to protect their praurlts from the flames that surround the village and soccer star, lionel messi will sign with paris he arrived on his private jet from barcelona where his former team decided they couldn't afford him and they're teaming up to make a version of mountain dew with alcohol they're trying to satsify the changing taste of adult drinkers college more accessible by making it more affordable. that's why we're keeping our tuition the same for all online and campus programs through the year 2022.

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over the weekend, norwegian cruise line announcing they could ask for vaccine proof before traveling and viking chairman joins us now. great to have you back on the show and just since we -- the fact we do have a cruise set to set sail come florida, do want to get your reaction the legal fight we're seeing play out in florida. >> i think we're delighted that an operator vaccinated cruises we, already operate our ocean-going vessels and we have a clear requirement. all our guests have to be vaccinated it's essential i'm glad for that ruling and as i said, we have all six ships back in operation. after 18 terrible months but

it's a good feeling. go ahead >> as you mentioned, anyone who climbs aboard has to be vaccinated how are you handling those on your ships currently >> we're a bit different we were the first cruise line to stop operation altogether and since then, we spent a lot of time studying the virus and finding out what someone can do. we have a procedure and policies that were designed to stop the virus on board, even in the absence of a vaccine so, we have gone to the taf staff to have pull pcr labs on board and we do test every staff member every day so, if there is a breakthrough, through the vaccine, which there can be, then we'll identify that

and with a pcr test, we can then stop any spreaden the ship so, we're very solid and i think very safe on board >> so, the conversation we're having, the fact that, in key economies around the world, we're seeing an uptick in covid cases tied to the delta variant. i do wonder how bookings have been for your cruises. especially as more ships get added to your fleet and come online next year >> well, i'm delighted to say that bookings right now, for 2022, are up over 40% higher than they were for 2019 at the same time. so, bookings have been very good and as a matter of fact, we found that -- it's a presidential election year in

the u.s. so, we didn't take delivery of any ships that year. but next year we have two ocean ships and two expedition ships coming on screen and i think that's all being reflected in our bookings. i think people do trust us and we've had our ships in operation in europe. of course, it's been difficult to operate in the u.s. it started in england, may 17th, and they've been around bermuda. i don't know whether that's in europe or not. around bermuda, iceland and i dare say that the satisfaction among our guests have been phenomenal everybody's came to get traveling again but of course, one has to feel safe and i dare say our guests feel very safe at viking with the testing we do and the small ships we have.

so, it's looking quite promising. and we're moving on. >> you mentioned the strong bookings for 2022 and saying that passengers trust you. so, is that suggesting you're essentially getting mark shares from others that aren't operating or maybe don't have the same screening and testing standards? what do you attribute that to, unless it's pent-up demand >> well, we have advantage of a company. we're private company. so, we're taking great care to relate to our guests we have our own tv channel called viking tv and may have difficulty sending the money.

we spend as much time on testing as we do fuel for the new ships. as chairman, i would be relictent to have any other policy and we're fortunate because we have a chief medical officer, retired vice admiral from the u.s. navy, who has been leading this effort. i think we're very, very fortunate. and the guests do trust us they do come on board and they do read books while on board and take the next cruise the darkness that we've been through, we are now doing well >> great all right. thanks for joining us today. >> thank you buh-bye. let's get another check on amc as we head to break. actually losing altitude here.

the stock up less than 2%. pretty much austin's to close. been at these levels as little as a week ago. we'll be right back. stay with us you can act quickly. that's decision tech, only from fidelity. ♪ - [announcer] introducing the grubhub guarantee,

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but it's more about the outlook for the balance of this year and into 2022. so, the bottom line is margins have been restored the operating leverage is significant across so many different sectors. margins are back 12% those are the highest record highs. more than 100 basis points than they were prepandemic. and we look into 2022, margins are likely to stay very robust the risk from an earnings point of view is the tax reform and how much that may diminish the growth rate. bottom line is earnings are pretty robust. albeit, with a risk of a more modest stroke and that leads us to s&p 500 target of around 4,700. that's around a return from now until the owned of the year. and modest growth is 2022.

that's the forecast. >> i mean, it's pretty incredible after what we saw in the first quarter and all the fears around inflation to see the interest rate, at least for now, poised to be lower for longer i wonder how you factor that in, why you think there's been such a shift in the treasury market and how that carries over into 2022 >> the 10-year treasury yield declined by the end of this year we're asumping that rate understand crease modestly and as a result, the valuation of equity still remains reasonably atralktive. there's a whole money story proponent to think about but the alternative for investors is cash that's basically yielding zero and unlikely to raise rates until the second half of 2023.

that's two more years of basically no return on cash. bond yields rising slightly. that does not have a particularly attractive environment for a fix undercome. so, they become the asset class of choice. and there are two real sources of demand for shares right now the first is from corporate. corporate buyback has been at reflective levels now and households on more than a trillion more than before the pandemic that's like 5.5 trillion verses 4.5 trillion that's why is helping drive equity prices higher and that's the outlook now until next year. that's money flow and the valuation. even if rates go higher, equity prices are relatively attractive in the interest rate environment. you would have to have 10-year

treasury yields move towards 10% to be a head wind, in my opinion, from a valuation perspective for stocks not our forecast 10-year treasuries rise to about 1.6% and some clients have the view because of the delta variant and things slowdown. again, that would suggest equity prices could go a lot higher, if you think about it at the index level. >> we're at the point, based on your projections, obviously, next year earnings growth going to massively decelerate and we're talking about incremental measuring. that suggests midcycle-type environment. what does that mean, in terms of equities, what you would like to style? >> if you think all of it from a investment vat strategy, there's a reopening trade, that those

stocks have come down quite sharply. tactically there's attractiveness that's in the retailers, some of the beneficiaries, hotels of -- thesis are restarting the economy. but they're in a temporary hiatus for some sectors. fundamentally it's more in the technology state the revenue growth and the margins are so extraordinary and that's not to come here and say -- but that fundamental aspect is the margin in the tech sector are 25% 25%. for the rest of the markets, it's 12. so, you get the robust revenue growth and you had significant margins, is what's helping drive the overall -- the market higher but that would be an area to be in think of it as a bar bell strategy

some sickliccals rally and the economy is decelerating, as you pointed out. so, where are there industries where there's top-line sales growth despite a decelerating economy? and that is primarily where you see technology i want to emphasize, when you think of broadly investing in the market, 40% of the equity market is comprised of technology and communication services so, the evolution of the index is very significant. and that introduces risks to the market and it's almost 200 days since we've had a 5% pullback. typically, it'sn inside of a hyundais but that's a risk and i think the other big risk would be tax reform, potential head wind for earnings and if you think of what's

expected, most of the portfolio managers and analysts, have not fully incorporated what is significantly higher corporate tax rates. that's a risk. bottom line is cyclicles and technology >> finally, on that front, you've talked about technology companies. what threatens them? over time, does regulation threaten the margins you mentioned potential tax increases. what is the biggest threat, in your opinion >> in my opinion, would be the impact, if you will. we know from experience, back in history, ibm and at&t, microsoft 20 years ago and the federal trade commission some of the lawsuit, the antitrust initiatives, it took time for those to play through the system but ultimately, there were two common results and that is the

revenue growth decelerated revenue growth slowed and valuations compressed. that is the less on of the previous major antitrust nishtives. so, that is a risk and that's out there. but sometimes those legislative process in america is significant and can take a long time for that to play through. it's sort of a known known and that would be in contrast to say what happened in the stocks duee the change in the -- makes the share prices affected immediately. i think in the case of u.s. it takes a longer period. i think that would be the biggest risk. >> all right, david kostin, thank you for joining us today. >> thank you as we head to break, look at shares of fisker up almost 18%, this after morgan stanley resumed coverage of that company or its stock with an overweight rating thanks in part to expectations for a one time

launch of its ocean model and manufacturing strategy lomo aadorou stay with us

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welcome back to "squawk on the street." it is a relatively quiet morning so far for the stock markets overall, the dow and the s&p managed to notch fresh record highs in today's session now from a sector perspective, energy is rebounding after a lackluster session yesterday every stock in that sector is higher right now, led by names like marathon, also apa corp. and devin energy as well those moves come alongside a rebound in oil prices which have been under pressure recently amid concerns over the spread of the delta variant and its potential impact on fuel demand. those oil prices down relatively -- about 11% since the highs last month keep it here, "squawk on the streetwi be ghba a" llrit ckfter this break don't go anywhere.

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out to frank holland live in detroit with a closer look at one online retailer getting set to go public >> good morning from detroit stock x was the stock market for sneakers like these jordans. it expanded its offerings to include collectibles like these as part of the transition to the marketplace of the current culture.

and as its valuation was growth $3.8 billion one thing is consistent, the important of the authentication center here in detroit, as those offerings expanded from footwear to collectibles, gaming systems and even designer handbags we have an exclusive look at that authentication center where they tell the real from the fake and that includes, yes, an actual smell test. consumer confidence in this process has been a catalyst for growth as the company has gone public this year, the marketplace model has become increasingly popular with shoppers, but received mixed reaction from investors. sites like posh mark and reel reel underperforming and ebay outperforming to date. the biggest differentiator is this authentication center that they say is up to 99% 5% accurate >> we awe thennot only are you g access to product you can't find anywhere else, you get access to authentic product, and that

model of authentication in marketplace has never really been done in a public market or anywhere else at scale on per unit economics that work, and so that's been the great benefit of our model, to provide a differentiated service to consumers in a marketplace model. >> so footwear is the core business for stock x but they're expanding beyond jordans birkenstock saying, crocs ubiquitous, over 400% growth k is eyeing growth opportunities as they look to go public that might be through m&a, other ways as far as expanding categories, but growth is the key he believes going public is the key to growing as an infusion of capital and also a chance potentially for some people to trade sneakers on here and look at sneakers as an investment to eye stock x the stock has an investment back over to you

>> frank, thank you. a key story, especially on a day where a potential comparable reel reel is under pressure after those earnings after the bell yesterday that's going do it for us here at "squawk on the street." with the dow and the s&p both hovering near record highs "techcheck" starts now happy tuesday. welcome to "techcheck. today amc is in a tech story or just a recovery play a breakdown of the quarter that has shares in the green despite huge losses. then a check on crypto as the senate will begin voting on the final infrastructure bill without any broker clarification. we expect that vote this hour. and finally could working from home cost you part